Will English Empower?

Sam Pitroda has made some startling suggestions in National Knowledge commission report to the Prime Minister. One important one is regarding teaching of English as a compulsory subject along with regional language / mother tongue from Class I across the country. “The NKC believes the time has come for our people, to teach English as a language in schools. And we are convinced that action in this sphere, starting now, would help us build an inclusive society, and transform India into a knowledge society. In just 12 years, it would provide our school-leavers with far more equal access to higher education and 3-5 years thereafter, much more equal access to employment opportunities.”

I find almost all English newspapers welcoming the move. As one editorial of a national newspaper recommends, “Government must implement it right away if India is to realise its potential as a knowledge economy.” I personally may differ, but I like the way Sam Pitroda has put forward the recommendations and it will perhaps click. However, I don’t understand my country’s political clans. Let us see how they react. As I guess they won’t object to it, as almost all their wards must be going in the English medium schools. They all have gone affluent enough to get that done for their descendents.

Let me tell you the different side of the story. I feel some English medium educated decision makers give a little too much importance to the fluency of English in communication as a main criteria for selection of a candidate in almost every interview even when the domain knowledge of the candidate may be of low level. Let us understand that for a call center where one is to do a good bit of talking with customers of English language, the fluency and pronunciation becomes critical. But in technical job, the spoken English may be good enough to communicate the subject under discussion. No doubt, as one goes up the ladder, the communication skill becomes more critical. If you have heard Shri Shashi Taroor and Mr. Moon, the later is poorer in English, but it hardly matters when he is General Secretary of UNO.

I was last year in USA. I came to know of many young men from different nationals from countries such as Vietnam, China, and Russia working in software industry of San Jose. I found their English very poor rather miserable though they had done their Masters from US universities. I enquired if they faced any difficulty in their day-to-day working or in promotion etc. To my surprise, their replies were firm ‘No’.

I myself dealt for a long time with Japanese technocrats of at least a dozen of companies. The English of Japanese used to be miserable, and I did not know any other word but ‘gojaimasta’. I never found any difficulty in communicating the technical aspects of manufacturing technology and management that I was dealing with. I think based on my experience that many a times we Indians are obsessed about English because of our inferiority complex.

Perhaps, the main problem is somewhere else. In Indian school and colleges even up to graduate level, English is taught as literature and not as means to have proficiency in communication and a good standard of presentation for the concerned group. Even in engineering college, English is taught in its first year. I wish attention were paid to improve the presentation aspects and fluency in speaking.

English will certainly assist the candidates in higher education, particularly in science, technology, and management where English is, almost exclusively, the medium of instruction. and more so, in workplace, where English is the sole language of transaction. Sam Pitroda claims, ‘school- leavers who are not adequately trained in English as language are always a handicap in the world of higher education. This advantage is further accentuated in the workplace.”

Seeing the way the competition is to be fought, in graduate courses one more foreign language other than English, may be Mandarin or Spanish must be made compulsory to improve the prospect of expanded employability in different global assignments. “Even today, so far English is concerned, no more than 1% of our people use it as a second language, let alone a first language.” Chinese are already on a way to universal English education to compete with India. India must try to go by the recommendation of NKC to let all the students going for formal education know English as language to remain ahead in global marketplace.

But most importantly, the recommendation if implemented will remove the disparity between the students of different schools and different states. Indians are basically very good in picking up different languages. As part of education policy, English will get universal acceptance and help integrity.

India is becoming a major source of scientific innovation
A linguistic strategy for an economic edge

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What A Shame!

When the cabinet ministers of Tamil Nadu belonging to all political parties are busy in bringing in all sorts of projects to their states, the great ministers in UPA government at the centre from Bihar are fighting with the Chief Minister some childish letter wars through the assistance of media.

Let them not overlook how Dayanidhi Maran is bringing in all manufacturing units such as Nokia, Flextronics, and Motorola in telecom in Chennai. Balu is not leaving any stone unturned to start the Sethusamudram project connecting Arabian sea to Bay of Bengal. Why can Raghubans Prasad, Lalu Prasad, Meira Kumar, and the great Ram Vilash Paswan get the projects of their own ministry being undertaken in Bihar completed?

Raghubans Prasad is heading Bharat Nirman projects. He can get all the villages of Bihar connected by all weather roads and electrified bringing the electricity to all the houses. In stead he has written some 60 odd letters to the CM, Bihar saying where he is failing. Any one from Bihar feels ashamed after hearing these episodes. I wish Raghubans ji and all the RJD MPs, at least, get the Bharat Nirman targets of their own constituencies completed before they go for the next election.

Lalu Prasad ji can help Bihar perhaps the maximum. With the laurels of the most efficient minister of UPA and with so huge a clout with the Congress bosses including the PM and the Congress Chief, Laluji can get Nabinagar power plant going fast. Laluji can also activate the railway workshops of Jamalpur, can get the rail-wheel plant in Chhapara established and running, and can get some important stations refurbished to world-class standard. He may also get some of the railway sponsored malls and hotels in Bihar. All that will in boosting up the state’s economy.

I got really excited when I read a report that Laluji has called a meeting to review the progress of the “Rashtriya Sam Vikas Yojana”, the “construction and upgradation of National Highways” and even “schemes taken up under the 12th Finance Commission” in Bihar. I wish he could show all the management tricks that he has learnt in operations of railways, to get the Bihar projects under the center getting implemented on fast track basis.

Centre hits out at Bihar govt for `poor` show in NREGA
Nitish Tells Bihar Ministers to Mind Their Own Business

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China Presents New Opportunity for Indian Manufacturing Sector

The Economist recently published a report, The problem with Made in China‘, that details why the manufactures are switching over to a strategy of ‘China plus’ in Asia. India may be candidate of that China plus destination. But it will have to work hard to remove some of the hurdles fast.

China has rapidly become a global economic force, doubling its share of global manufacturing output for both domestic as well as export market.

The perception is that every factory closing in America or Europe is destined to reopen in China. And a majority of the export from China is in real term is an American or European company’s export. However, as reported, the western entrepreneurs who made China’s manufacturing a unique story of success with their investment are gradually becoming skeptical about their future business in China.

Some of the concerns are genuine too. The most important concern is about the internal problems because of inequity. Even the official figures record 87,000 incidences of rioting and social disturbance in 2005. Civil unrest may come a speed breaker in China economy.

Many grumble about the urgent need of reform in the banking sector, the capital market, and the financial-reporting standards. Many are concerned that the Chinese economy may be overheating. Many predict yuan’s revaluation making Chinese manufacturing loose the present advantages. The value of the Chinese currency, as per some assessment, may continue to rise by around 5% in the year ahead that will certainly affect the export-based manufacturing adversely. China also has earned bad publicity about the lack of protection for intellectual property rights.

But perhaps the most significant of all are rocketing wages and the shortage of the managers, versed in international production techniques such as “six sigma” and “lean manufacturing”. Poaching is rampant. “China is definitely not the cheapest place to produce any more, Average wages for a factory worker, combined with social security costs, came to almost $350 a month in Shanghai in 2005 and almost $250 a month in Shenzhen. By comparison, monthly wages were less than $200 in Manila, around $150 in Bangkok and just over $100 in Batam in Indonesia. No doubt, the productivity of Chinese workers is better and rising. But it is not keeping pace with wages. To overcome the higher wages, the Chinese government has been inducing companies to move inland since 2000, but the entrepreneurs are neither convinced nor ready. Many firms are reluctant to put any more of their eggs in the same basket.

A research report of the Japan External Trade Organisation concluded: “Due to the country’s increasing business risks and rising labour costs…Japanese firms employing a ‘China-plus-one’ strategy-in which they invest in China and another country, namely in ASEAN-should consider placing more emphasis on the ‘plus one’ country.” Managers from other countries now share such nervousness.

Starting early 2006 Intel, the American chipmaker had committed as much money to Vietnam as it had to China in the previous ten years. Another global firm, Flextronics, has fired up the production lines of a new M$400m ($110m) factory to make computer printers for another American firm, Hewlett-Packard in Malaysia. One of the largest contract electronics manufacturers, Flextronics with vast facilities in China has chosen Malaysia as the site for its latest investment.

India has 1.1 billion people, an emerging middle class of its own and will grow at around 8% this year. To date, foreign investment in manufacturing has been limited-total investment inflows in 2005 amounted to a meagre $7 billion, compared with more than $70 billion for China Even with hugely inadequate infrastructure and infamously corrupt and lethargic bureaucracy, more foreign companies are starting to open factories in India.

Indian technicians could re-engineer some of the West’s highly automated car-production lines to make them more labour-intensive for the Indian market. Firms making specialty chemicals are keen to combine technical expertise with low costs and a growing market. Even low-technology industries are interested: Yue Yuen is close to building its first shoe factory in India.

Most observers reckon India’s manufacturing evolution is ten years behind China’s, but progress is unlikely to be as swift or as smooth. A country that puts a higher value than China does on democracy and the rights of the individual will inevitably find it harder to push through infrastructure projects and reform to sensitive areas such as the rigid labour market.

Why can’t Indian manufacturing sector take advantage of the opportunity? Why can’t the team of the National Investment Commission and National Manufacturing Competitiveness Commission take up the task to contact all the manufacturers with ‘China plus’ strategy and allure them to India?

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Recent Alliances with Global Automobile Majors

For all practical purposes, Tata Motors and Mahindra & Mahindra are the only two Indian companies in automobile manufacturing, particularly in passenger cars and SUVs. And if the two enterprises, wish to remain the major players in domestic market or have dreams to go global ultimately, perhaps the only way will be some reliable alliances with some automobile majors of the day. Both are on the right track.

Last year, Carlos Ghosn, CEO of both Renault and Nissan and Anand Mahindra, M&M’s vice-chairman and managing director, signed an alliance in Paris. The two decided to set up a plant that would make half a million cars a year in India within the next five years, Many expect an investment of over $1 billion in the project, may be the largest investment announced by any auto company in India. Both Renault and M&M vehicles and, possibly, Nissan’s too, will be manufactured in this plant. Ghosn puts a lot of importance on this deal. Both Nissan as well as Renault wish a presence in India with a strong Indian partner and use India to manufacture models for some export market too. So under a previous agreement, Maruti Udyog will also manufacture 50,000 Nissan cars for export.

Under a separate alliance, Mahindra International, a 51:49 joint venture (JV) between M&M and the $9.6-billion US-based International Truck and Engine Corporation, will develop and market commercial vehicles in India, Asia, the Middle-East, Africa and central Europe. It will also develop low-cost products for the American continent. The duo will invest $80 million in the project. It appears, M&M has a strong global ambition for automotive sector from engineering service outsourcing to contract manufacturing.

Tata Group chairman Ratan Tata and Fiat Group CEO Sergio Marchionne have also gone for another grand alliance that was announced in September 2005. Tata Motors will distribute Fiat vehicles in India. Later on in late 2005, Fiat announced plans to build Tata Motors’ vehicles (probably one-tonne pick-up trucks) at its plant in Cordoba, Argentina. And last month, the duo announced a Rs 4,000-crore investment to set up a plant in Ranjangaon, Maharashtra with a capacity of over 100,000 cars and 200,000 engines. The manufacturing facility will produce both Tata and Fiat cars.

The two groups are now closely studying each other’s platforms that are under development, including the Tatas’ Rs 1-lakh car. Ravi Kant, managing director, Tata Motors said, “Up to this point we have done this (development of the Rs 1-lakh car) on our own. In future, if a partnership is required, we will look at it.” Alfredo Altavilla, CEO of Fiat PowerTrain Technologies and senior vice-president (business development), has been a little more forthcoming: “We are fully available to cooperate on any platform that Tata requires. Fiat’s considerable expertise in small cars has been made available to Tata.” The next generation of Indica will have Fiat’s diesel engines. And a lot of the design and development of new Fiat models could be done by the Tatas to cut down the development cost.

Tata Motors also has alliances with Spanish truck and bus maker Hispano Carrocera (with a 21 per cent equity holding) and with Thailand-based Thonburi Automotive Assembly Plant (70 per cent) to make pick-up trucks. Tata Motors are also on look out for an acquisition that further expands its presence in passenger car business.

Why is India important now? One, India’s automobile sector today is considerably big rushing fast to the two million a year with a growth rate in double digits. India now forms a vital part of the global automotive industry’s cost-cutting plans.

In the automotive industry, millions of dollars are pumped in R&D and manufacturing for each new model. These costs used to be recouped from the vehicle sales that would go on for many years. Now, with the product life cycle significantly reduced based on customers’ expectations, the manufacturers have fewer vehicles to spread these costs on. As a result, if the global biggies don’t cut the development costs, the losses can’t be avoided.

Indian automobile manufacturers have proved its cost effectiveness in product development. As reported, M&M’s Scorpio was put on the road at a cost of only $120 million ($30 million in development; $50 million in dyes, tools, etc.; and $40 million on manufacturing facilities). In the developed world, a comparable product would cost over $600 million. Tata Motors also came out with its product development with similar lower figures. So is the advantage in manufacturing too. As reported, Indica costs about 40% less than what a comparable developed in the West would have cost.

Indian companies might not have a lot of technology to offer in basic design, but can be a good and cheaper source for engineering tasks related to new platform development. Both Tata Motors and M&M are having a pool of engineers engaged in product development. As reported, over 200 M&M engineers based in Pune are working on global product development for International Truck.

Indian firms ensure that break-even is achieved in about two years instead of the usual five years from a new manufacturing facility. And that makes a big difference.

The alliances have two things in common for the foreign partners. One, they have set ambitious growth targets for the next 4-5 years. Two, none of them has a strong presence in India. So it a win-win situation for all the partners, while for Indian partner, it is the easier way to go global.

The 5 Ss of Japanese efficiency
by Surinder Kapur

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Makara Sakaranti

Makara Sakaranti falls on Sunday this year. The date is always January 14, as it is September 17 for Viswa Karma Puja. We have been celebrating the day in a particular manner for many years. After taking bath early in the morning, we touch by our fingers a bowl of rice, sesame seeds and some amount of pulses of gram that is given as a charity to some deserving person. During lunch, we take flattened rice with milk and curd. We also take sweet of different types- gajjak, tilkoot, rewari, all prepared with sesame seeds as constituent especially on this day. In dinner we take ‘khichari’-rice cooked with pulses and now with many vegetables and spices too to make it real tasty. This is the practice that we have been following for years.

This is the day when many Hindus go to take bath in river Ganga. And one famous place for this day’s bath is Ganga Sagar in West Bengal. We have been there many years ago. Sagar is an island at the mouth of river Hooghly (Ganga) in Bay of Bengal. There is a temple there that is dedicated to Kapilmuni. As the story goes, the 60,000 sons of King Sagara got burnt into ashes because of a curse from the hermit, Kapilmuni. Their souls didn’t get salvation. Muni had said that it would be possible only if some one can bring Ganga to immerse their bones and ashes. Many of the descendents of Sagar tried that, but it was Bhagirath whose penance induced the Ganga to descend from heaven. Ganga on descending on earth through the hair lock of Lord Shiva followed Bhagirath up to the Sagar Island and washed the bones and ashes of the ancestors. They got salvation. As per Hindu beliefs the descendants are responsible to clear the sins of all their ancestors too. I don’t know if Ganga’s water has retained its virtue to clear the sins after the greed and laziness of the Indians have totally polluted it. For the first time, the Hindu saints have come out to protest against its pollution. I wish they also tell publicly that their disciples must not pollute it by throwing all the wastes and remnants from rituals in the rivers.

On the day the sun goes from Kumbha (Aquarius) to Makara (Pisces). The earth, farthest from the sun at this time, starts its journey ‘north’ (Uttarayana) towards the sun, ending the coldest month, Paush, kicking off the merry month of Magh. The auspicious period of Uttarayan is from January 14 to July 14. According to Gita Shri Krishna manifests himself in his full splendour during this period. Bhishma, the grandsire of Mahabharat chose to die at this time. Falling to Arjuna’s arrows at Kurukshetra, he didn’t die, as his father had blessed him with the power to choose the time of his death. He waited for this auspicious time to come to die. At the deathbed he revealed the ‘Vishnu Sahasranaamam‘ to Yudhishtra. The recitation of ‘Vishnu Sahasranaamam’ can provide salvation to even ordinary person.

Makar Sanskranti is supposed to be a very important day in Hindu cultural tradition. Unfortunately, the social leaders of our region have not been able to make it as colourful and enjoyable as ‘lohdi’ of Punjab.

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Bihar Global Meet

Patna, the state capital of Bihar, must be busy in the arrangement of the global meet (Barat, as friend of mine told me on when I referred to the show) being held in Patna between January 19 and 21. It’s really the Chief Minister Nitish Kumar’s show, though Institute of Human Development and a Patna-based news portal, bihartimes.com, in collaboration with the state government, are organizing it.

The President will inaugurate and the Mauritius Prime Minister, Navin Ramgopal may likely be the guest-of-honour at the meet. As expected, some 500 delegates, mostly eminent NRIs and experts from different fields will participate in the three-day meet. I wish I could have been in Patna at this time. However, I have some views and I hope Bihartimes.com will put my ideas to the concerned forum where that fits right.

Like every one else, I wish and pray that the show satisfies and yields the expected results for all the stakeholders.

Mauritius-the ‘Crown jewel’ built by Bihari immigrants

Let me start with Mauritius. Bihar and Mauritius has a special relation. I still remember my Presidency College days. Sometime in 1956, I had met some students in Calcutta Medical College who were from Mauritius. Their ancestors went from a place near my maternal village Kwath, near Dawath in Rohtas to Mauritius. I still remember the warmth of the meeting.

I find Mauritius tops the FDI in India. I don’t know what it is, but if it is true why can’t it come to Bihar? Bihar is trying to make sugar sector as its main industry. Is there something that Bihar can get from Mauritius in technology related to sugar cane cultivation and sugar-based industries? Few months back, someone from Mauritius contacted me to find out the village of her ancestors. Can’t a website be set up by a government agency to help such people?

However, keeping in mind the history of immigration to Mauritius, I suggest there must a Pravashi Bhawan (Complex) in Patna with facilities such as guesthouse, library, convention hall, and a cultural museum. On the same line, at Port Luis, a Bihar Bhawan should be established.

USA- the Destination of new generation immigrants

I am sure, maximum number of immigrants participating in the NRB (Non Resident Bihari) show will be from USA. And when it comes to how can they help Bihar, I think they must start from their own village, town, or district headquarters. It will give a permanency to their link. And many of the NRIs from US will be in position to adopt and support a school or health center and making them the model with the latest technological input. Every school in Bihar must double as skill building center too. Every child of Bihar must have training in one or the other skill such as electrician, plumber, carpenter, nursing, tailoring, knitting, or as artisan besides his conventional schooling. Bihar must export only skilled labour force and not only illiterate menial workers that are more vulnerable to be exploited.

Can the entrepreneurs among NRBs devise a model for rural enterprises for apparel, handicraft, food-processing enterprises that can employ the rural men and women from all households to bring them above poverty line? Can’t Madhubani printed artifacts and Bhagalpur’s silk be expanded to provide more employment? The main task is to create jobs in rural Bihar, and all must think of it.

Can someone in Patna start an on-line service facility to help NRBs on line of ‘your man in India’?

And those from USA can also get into an outsourcing business related to e-tution, legal, and medical professions where Bihar seems to be having a lot of underutilized manpower and setup enterprises in Patna or other cities that can provide a lot of employment to educated class and bring Bihar on BPO map.

And lastly, I shall like to sell a dream project that has been talked about by our President, Prime Minister, and many celebrities- Nalanda International University. Let it not remain just a dream. Let all who associate with Bihar in any way make it realized.

Can NRBs be made to imagine of an 8-lane Super Expressway connecting Vaishalli with Boddha Gaya with Patliputra, Nalanda, and Rajgrih on its route and creating a corridor of excellence studded with 100 educational institutes of higher learning of different specialized subjects gifted by 100 countries of the world?

For the organizers and the government

I wish, the organizers and the host Bihar government-

1. To take NRBs (at least those who are interested) to Nalanda and Boddha Gaya for an outing and also to find out what can be done to develop both the places as world-class tourist destinations

2. To arrange a short trip to some typical villages nearby so that they can assess for themselves what the rural Bihar expects from them

3. To handover a roadmap of Bihar 2020 with the listing of the projects, agencies responsible, and estimated time frame for the completion

4. To come out with an advisory council of interested and reputed NRBs to generate ideas, and action plans on the development of Bihar

5. To create a website that can provide the performance and progress of Bihar’s critical projects and other information as well as to provide interactions between the stakeholders

6. To request government agencies and administration in Bihar to respond to queries and suggestions from the well wishers of Bihar

7. To keep the speech making by the ministers and bureaucrats to minimum and to allow the participants guests to come out with their ideas at the meet

Let God make the global meet a grand success.

PS: Any one can contact me at irsharma@gmail.com for explanation of any of my suggestions.

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Automobile Sector And India- biased Design Changes

Since the early days of Indian automobile industry, the local design engineers had been making the desired changes in the product of the foreign collaborators. One very obvious desired change used to be the clearance from the road to take care of the potholed road conditions. However, today the Indian automobile industry has traveled miles and miles ahead. Many are making its real original designs that are getting accepted globally.

Here are some unique designs incorporated in car designs that will be of use in India.

There had been one aspect that radars on the automobiles could not detect – cows. However, as reported, Daimler has equipped its cars with technology that detects any metal objects such as truck or cars on the autobahns and activates safety features such as automatic slowing. However, as cows aren’t made of metal, this is one of the numerous challenges Bharat Balsubramanian, vice president (VP), group research & advanced engineering (electrical & electronics, IT & processes), is currently working on.

Alcoholic driver causes many disastrous accidents causing loss of life and property too. Toyota Motor Corp. is developing a fail-safe system for cars that detects drunken drivers and automatically shuts the vehicle down if sensors pick up signs of excessive alcohol consumption. Cars fitted with the detection system will not start if sweat sensors in the driving wheel detect high levels of alcohol in the driver’s bloodstream, according to a report carried by the mass-circulation daily, Asahi Shimbun. The system could also kick in if the sensors detect abnormal steering, or if a special camera shows that the driver’s pupils are not in focus. The car is then slowed to a halt.

Indian engineers at DaimlerChrysler’s research and development lab are working on “intelligent night view,” a next-generation application that will let the driver catch up on his sleep while the car negotiates the night traffic. This feature builds on `night view’, where the car is fitted with infrared headlights, and an infrared camera feeds high resolution images to a TV screen fitted on the dashboard, so the driver can easily steer with his newfound `night vision’. When coupled with the ongoing work on contour mapping algorithms, which will let the car identify moving objects such as pedestrians and cyclists, this application will result in accurate and accident-free drive.

How do you like these developments? If India is to make difference with Chinese, it will have to distinctly excel and be far superior in designing of the cars and other vehicles. It can just live in glory of the designs of Indica/Indigo or Rs 1-lakh minicar or ACE mini-trucks of Tata Motors and Scorpio of M&M. Both the Indian automobile manufacturers are lucky to have a strong subsidiary of IT too that together can incorporate many high tech cutting edge features in the car design that can be a differentiator with the competition. And they must go for it to make their products robust physically as well as aesthetically for the customer satisfaction.

Muscle cars hogged the spotlight in 2006
The diesel dimension

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India Matters Today

Recent media overtures about India as an important economic power have become a daily affair. Every day some exciting news or report keeps on appearing somewhere or the other in media that confirms the inference such as India has arrived or India matters. Recent news about the two acquisition deals has made India’s presence known globally. And both these deals are big and being fought well too.

Tata Steel had already grabbed Corus, but Brazil’s CSN suddenly appeared on the scene as villain with higher bid and Tata had to improve on its bid value. The battle is still on and the whole business world is watching the final result. In Arcelor acquisition by Mittal Steel, as reported India’s Prime Minister and Commerce Minister had tried to help Mittal morally by talking in media. However, I have not come across any lobbying by the government for Tata-Corus deal. Reason is not known.

Another story is equally interesting and significant that is making splashes in business circle in India. It relates Hutchinson Essar, India’s fourth-largest mobile operator. Hutchison Telecom, which Li Ka-shing, Hong Kong’s richest tycoon and a fabled dealmaker controls, has put up for sale its 67% stake in Hutchison Essar. It is another big deal under bidding game that is being played by the biggies including Vodafone. Vodafone, Reliance Comm, Ruias, and even Hindujas are in fray. And as per some speculations, the deal may go over $20 billion.

Vodafone CEO Arun Sarin, the master strategist has visited Delhi meeting government ministers as well as discussing with prospective partners. Sarin is open for Ruias as well as Anil Ambani as partner.

Chairman Anil Ambani of Reliance Communications, India’s second largest mobile phone company is also busy doing all needed to grab the deal including lobbying with government officials and ministers. The ambitions of Anil Ambani are known to the competition. He will do everything to win.

Vodafone appears to be the front-runner. Vodafone last week reportedly valued all of Hutchison Essar Ltd at between US$17 billion (euro13 billion) and US$18 billion (euro13 billion), which would make it the biggest-ever corporate takeover in Indian history.

The final outcome of both the deals will be quite significant. As known, if Tata Steel wins Corus ultimately, it will become the fifth largest steel company f the world. And with a win, Reliance Communications will become the biggest mobile operator of India.

Could any one think of a deal of this value in India’s telecom sector happening ten years ago?

And I am completing this writeup; I read the possibilities of two more acquisitions by the two India big business houses.

1.Reliance Industries is likely to bid for General Electric’s plastics business that is expected to be put on the block. The deal may be priced at nearly $10 billion.

2.The Aditya Birla group is seen in race for a unit of Canada-based aluminium major Alcan. The proposed bid would be part of the company’s ambitious plans to become one of the top 10 aluminium producers globally over five to six years. It is estimated that it would carry a price tag of over $8 billion.

Has not India become a happening place?

Latest >Tata Far From Folding in Corus Bid
Hutch, Anyone?</

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Companies That Can Light India

Power can single-handedly black out ‘India Shining’. However, the two public sector companies in power generation business along with BHEL, the third one manufacturing the power equipment are keeping the hope, that one day very soon India can very well leave behind the problem, alive.

National Thermal Power Corporation (NTPC) is the largest thermal power generating company in India. Further, based on 1998 data, UK industry research body, Datamonitor, placed NTPC as the 6th largest in terms of thermal power generation and second most efficient in capacity utilisation worldwide.

NTPC has built a generating capacity of 26,404 MW from 14 coal-based (21,395 MW), seven gas-fired (3,955 MW) and four joint venture projects (1,054 MW). NTPC accounts for 19.51% of India’s generation capacity and contributed 27.68%of total power generated during 2005-06. By 2017, NTPC will have a capacity of over 66,000 MW.

Besides, generating its own capacity, NTPC is also nursing 15 power plants to attain their capacity as part of Centre’s ‘Partnership in Excellence’ programme. Be it UP’s Unchahar, Delhi’s Badarpur, Orissa’s Talcher, UP’s Tanda, Jharkhand’s Tenughat and Tamil Nadu’s Ennore, NTPC is helping to bring the back to working to respected PLF. For example, PLF (plant load factor, or capacity utilisation) in Tenughat was raised from 40% to 75% without any investment. Bihar has sought help for Muzaffarpur power unit and Kanti, steelmaker SAIL has handed over its captive plants and Railways has tasked NTPC with setting a new 1,000 MW plant at Nabinagar in Bihar. NTPC is going global too with orders from Sri Lanka, Nigeria and Saudi Arabia. The order book lists 384 domestic and international clients.

NTPC has ventured into hydel projects and is setting up three projects in Himachal Pradesh totaling more than 2,000 MW. And very soon with US-India’s Nuclear Deal in place, NTPC will go in nuclear power too. NTPC is also in coal mining and oil/gas exploration to secure future fuel supplies. Very few people may know that this year, NTPC is poised to become the country’s second biggest coalminer from its captive blocks after flagship Coal India Ltd.

National Hydro Power Corporation (NHPC) will expand its capacity to 10,000MW by 2012. In last 30 years it could build less than 4,000 MW of capacity, averaging only 130 MW a year. NHPC aims to add on average over 1,200 MW a year for the next five year. And further, it is already talking of over 20,000 MW by 2017.

Hydro is capital-intensive as it requires investment of about Rs 5 crore per MW compared with Rs 3-4 crore for a thermal plant. It is time-intensive too, and takes almost five years to complete against three-four years for thermal plants. However, hydropower is environment-friendly (unlike coal and gas based ones) and tariffs reduce, as the plant grows older, touching almost zero after a few years.

With 150,000 MW hydro potential of which only about 20 per cent has been realised so far in the country, why should the government and so its company not think big? NHPC will require an investment estimated at Rs 30,000 crore by 2012 even to meet its present plan. Many other private companies can help in building the hydro plants. And the government must open. However, all projects must work strictly under a timeframe and must attract heavy penalty for not meeting the target.

Can these two companies meet the total requirements? ‘Certainly not’ can be the only sane answer. State monopolies must end in power sector. It is the reason of the shortfall of about one-third of the target of capacity addition target of 41,000 MW during the Tenth Five Year Plan. India can’t afford any slippage from the target any more The two mega-projects of 4,000 MW have recently gone to private companies, and that gives the hope that India will soon light up. Let there be at least 10 companies to compete in power generation and evacuation.

The hardest nut to crack is going to be the problem of power pilferage. For every 100 units produced, the consumers pay for only about 60. The rest is lost in transit, of which more than half relate to plain theft. And that requires a lot of political will and consensus for that.

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Visions for India And NRIs

Management guru C K Prahalad’s vision for India of 2025 is one with

 100 per cent literacy
 200 million graduates and 400 million trained technicians
 25 Indian firms in Fortune 500
 10 per cent of the top universities of the world
 At least 10 Nobel laureates in science and arts

The professor of business administration from the University of Michigan’s Business School is one of the most conservative thinkers, particularly when he thinks or talks about India.

And our great President dreams of India are no different. “By 2020, I see a near zero per cent people living below the poverty line, a near 100 per literacy with every Indian having an university degree, a transparent governance system, electricity in all villages, no shortage of water, et al.”

Who don’t know Satyanarayan Gangaram aka Sam Pitroda, the man who initiated the telecom boom for India, and is now Chairman of National Knowledge Commission. He is a technocrat and keeps views India’s future with lot of apprehensions like many. As reported, when one asks him if India is fast developing as a global power, and “Nah” comes the grimace. “I don’t understand how someone can make such an irresponsible statement. Look at the garbage piled up on the roads, visit Indian towns and villages and just take a look at the sanitation problems. Do you know more than 60 per cent of the villages cannot provide safe drinking water to their population?”

I don’t think, Sam thinks ill of India or he is not confident of the potentials of India and Indians. But he is more down to earth when he expressed his opinion. He is perhaps pained with the progress made in last sixty years.

And then some said, ‘Indians are more successful than India.‘ Indians are achieving stunning success not at home, but abroad”. “Indians are faring better in countries ruled by whites than in their own.” Do you agree with these statements? Do you really think this is true? You only have to look at the success of NRIs, and the relative ‘failure’ of India, and you will be inclined to nod your head in agreement. But think again. Do Indians do better than India? Do Indians succeed abroad but not at home?

And then some project hyperbolically now the people of Indian origin living overseas sometimes as the fifth column of a force advancing Brand India. Even the Prime Minister agreed about their stellar role in recent US-India Nuclear Deal and thanked them.

The aim must be to touch the sense of ‘Indianness’ in people of Indian origin living abroad. If that sense can encourage an Indian-origin doctor, scientist or software engineer to link up his or her laboratory or research work in India, it is all to our benefit. India no longer needs only sympathy and remittances from its wealthy expatriates, but their brains as well.” And so the vice-chairman of Planning Commission invites them to come out with their ideas on the Eleventh Five Year Plan in making.

All these views were expressed in the Bharatiya Pravasi Divas 2007 going on in New Delhi.

And I am sure many NRIs after seeing the fast changing India during their visit to attend PBD 2007 will go in dilemma: To return or not to return!

However, I keep on thinking if the government of India could provide some tangible facilities. Can it organize a package of religious tours for senior NRIs? Many NRIs may be interested in visiting Gaya or Varanasi, or Charo Dham. Can it organize cheaper chartered non-stop flights in summer months when a lot of senior citizens, the parents of those working in US, fly to different destinations in US? Can it have some service like ‘your man in India’ for the NRIs?

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