Sensitivity of Indian Affluent

Posted on July 1, 2010 by indra

After Pratul wrote so much on the issue-‘Indian Billionaires and their Sensitivity’ in comments on face book, I started thinking again and here are some stray thoughts:

There are many unique aspects in the game of charity or more in its sophisticated nomenclature, philanthropy.
It is unfortunate but true that most of the Indians, even the needy ones, wish to get a direct dole without doing anything to deserve it.

Once after the demise of my parents, I wanted to donate my house and the landed property at Bodarhi, my maternal place in Bihar for some benevolent work. I wished some institutions to take over and open a school or a primary health-care centre in the village. I wanted it that way, as I could have pulled on even without the inputs from that property that was inherited. I failed in every attempt that I made through many known people.

My own near and dear ones from my paternal side and from the in-law side wished that I directly handover the whole lot to them free. The nearest ones in Bodarhi thought that they would grab it without any trouble after my mother dies. And then with a heavy heart I decided to sell the property and even the house that I got built to please my mother. I succeeded to sell that without moving out from Hind Motor. I might have got a little less in value, but what could have I done if there was no one to assist me?

On every Thursday, I see a crowd of a number of handicapped poor persons on all sorts of wheeled chairs or tricycles and aged women outside the Sai temple in Sector 40. With the clothes on them, they appear to be the real destitute class. Can’t the Sai Temple with rich Noida donors do something to rehabilitate them instead of giving few coins to them that they may be using for satisfying their bad habits such as smoking and drinking?

The task of rehabilitation of those handicapped persons is difficult and it requires painful and focused work to establish the infrastructure and organization. A normal person fails to endeavour. But the temple organization can certainly do that. And the affluent donors of Noida can certainly contribute more generously for the cause.

I wish these temples change their way of helping the society through praying the god through aarati, prasaad and langars and switch over to some work that make us all proud with a society without any beggars.

And look at the donors. They want to go to heaven by giving all their black money in charity and so they mostly pay in cash. They want to give it to the institutions that allow tax exemptions on the donations.

But then there are some real ones too among those. They have compassion for the needy. Otherwise, why does a beggar give away his accumulated little to the needy?

Khimjibhai Prajapati, a beggar in tatters and on crutches, hobbled into a school for the deaf in Mehsana in Gujarat the other day and donated clothes to 11 poor girls. He used to be a tea-stall owner in Rajkot but his business failed. From what he gets outside a local temple, he sends money home for his ailing wife and shares the rest with other poor. Whether rich or poor, we should try to help the needy, he says. A trustee of the school says he has never seen such philanthropy in 35 years.

The government always keeps on crying about the shortage of funds as the reason behind the lack of some basic facilities for the common people related to education and healthcare. If that be so, why does it again bark against the black money going to education sector? Why can’t it officially launch a national fund for education and healthcare in which any one can donate any amount in cash and kind? Why can’t it make mandatory for the temples to donate all the money coming through the hoondies for the purpose of investing in these essential services?

I wish the trade associations such as CII and Assocham and its state branches take a lead and focus on one or two services, particularly rural education and healthcare that are still not attractive enough for making profit.

Posted in social issues | Leave a comment

Are Indian Billionaires Insensitive?

Posted on June 22, 2010 by indra

As reported, Buffett, Gates and his wife, Melinda are driving to get the super-rich, starting with the Forbes list of the 400 wealthiest Americans, to pledge — literally pledge — at least 50% of their net worth to charity during their lifetimes or at death.

Indian billionaires whose numbers are increasing exponentially with the GDP growth of this democratic India, would have certainly gone through the report. I do neither know nor can imagine their response. However, I wish some few take some lessons.

Unfortunately but traditionally, Indians accumulate wealth and pass on to their kids. And they enjoy with the wealth or waste it mostly. I wish with other changes, the Indian mindsets undergo some change.

It’s hardly happening. Mohan Murty on May 31 wrote in ‘Is nation in a coma?‘ how some intellectuals in far Europe are worried about the extreme inequitable situation in India.

“Europeans believe that Indian leaders are too blinded by new wealth and deceit to comprehend that the day will come when the have-nots will hit the streets.”

And the media reports of the Indian wealthy class are fueling the discontent of millions of Indians who don’t have even minimal to feel their bellies before retiring to sleep.

Has any sociologist researched how these people react to the news of Sajjan Jindal flying 700 family members of his friends and relatives to Italy for three days to participate in the family marriage of Tanvi Jindal and Krishna Shete? And Jindal is not the lone Indian business tycoon.

Can someone talk with the have-nots or the Maoists about the mansion of the richest industrialist of the country that is being built at a cost of Rs 1600 crore for his family of four or five. Time and again, the media reports about the highly expensive personal tastes of the wealthy people of India.

I still remember Late BM Birla’s well reported statement in press of his wishes to become a Naxalite when the Naxalite movement had just started in West Bengal. And what are all these icons of the incredible India teaching to the rest of Indians through their stories? There was a time when the intellectuals and even some rich persons used to present the example of austerity to the society with very simple inexpensive living style, marriages, travelling in third class of railways or economy class of railways. Some still practise it. As reported, Narayana Murthy still lives in a small apartment. Premji travels economy class. Are they fools?

Majority worth name in his/her profession in India, be it politicians, administrators, executives of private or public sectors, doctors, and even professors and teachers has only one mission and that is to accumulate wealth at all cost. And none is ready to part with that substantially, even though all the off springs or clan members are well-off and affluent. I don’t know why. The act of philanthropy is only for photographs or mention of it for publicity and in turn for making more and more of wealth.

Should not the 500 richest Indians meet and discuss the Buffet and Gates proposal?

Why can’t the top 500 richest Indians set up 500 universities, as India needs 700 of them in next few years?

Why can’t CII members take up a project of setting up 10,000 polytechnics or trade schools, perhaps one or more in each block of the country?

Why can’t the Medical Council of India and its member doctors take a vow to build 100000 rural hospitals?

If the American educational institutes can thrive on the endowments from wealthy individuals, why can’t that happen in India?

I don’t say Indian business men have not done that, but there are just few.

Can the people of this poor country see the Indian counterparts of Buffett, Gates and his wife, Melinda?

Posted in industry | Leave a comment

एक मक्खी और एक छिपकिली – एक युद्ध

Posted on June 21, 2010 by indra

यह एक सच्ची कहानी है | मैं कल अपने घर के दरवाजे पर अपनी प्रिय जगह बैठा हुआ था| दरवाजा बंद था और दरवाजे की जाली पर मैंने एक मक्खी और एक छोटी सी छिपकिली की लड़ाई पहली बार देखी| मक्खी जहाँ जा बैठती, छिपकिली उधर हीं मुहं घुमा चल देती, और मक्खी पर झपाटा लगाती थी | मक्खी उड़ जाती और दूर जा बैठती| पर फिर कुछ समय बाद मक्खी उड़ कर छिपकिली के आसपास आ बैठती| पहले लगा था छिपकिली ब्यर्थ प्रयास कर रही है | कैसे छिपकिली मक्खी को पकड़ सकती है, वह उड़ तो नहीं सकती| यह प्रश्न भी मन में आया, क्यों मक्खी बार बार छिपकिली के पास आ जाती है, क्यों नहीं उससे डरती | वह उड़ कर दूर जा दीवाल पर बैठ सकती थी|

फिर वही हुआ जो मैं कभी सोच नहीं पाया था | मक्खी एक बार फिर छिपकिली के पास आ बैठी| छिपकिली आगे बढी और इस बार मक्खी उसकी पकड़ के दायरे में आ गई| और मक्खी छिपकिली के पेट में चली गई| उड़ने की शक्ति के वावजूद मक्खी अपने को एक मंद गति के दुश्मन से नहीं बचा सकी |

क्या यह कहानी कोई सीख देती है? अपनी तरफ से मैं इतना जरूर कह सकता हूँ कि मैं कथाकार नहीं हूँ और यह बनाई हुई कहानी नहीं हैं|

यह एक सत्य घटना है जिसे मैंने और मेरी पत्नी ने देखा है |

आप अपनी राय बताएं| क्या मक्खी की गलती थी? क्या मक्खी की बुद्धिशक्ति छिपकिली से कम होती है? क्या कभी कभी हम मनुष्य भी ऐसी ही गलती अनजाने करते है और पीछे बचे लोग इसकी बर्षों तक चर्चा करते रहते हैं|

Posted in tidbits | Leave a comment

Arrogant or Overconfident Nitish

Posted on June 20, 2010 by indra

I am sure, neither many from Bihar love Modi, nor all even those belonging to Nitish’s clan hate him. But it will be interesting to know how many of those from Bihar will agree with the way Nitish Kumar is behaving very lately with the BJP and particularly with a chief minister of a state. Is it in line with the Bihar’s culture? Will Nitish himself and all Bihari over there like, if Nitish happens to visit Gujarat and Modi behaves with him in the same way, calls for a dinner and then cancels it?

It is unfortunate that Nitish Kumar has not stopped there.

As reported, Bihar Chief Minister Nitish Kumar returned the Rs.5 crore that had been given for the purpose. Bihar Chief Minister Nitish Kumar Saturday returned the Rs.5 crore that had been given for the purpose. I don’t consider it as an example of his ‘biharipan’, that he wants to propagate.

Even Ahmad Patel, Sonia’s confidant denounced Nitish’s action, as Rs 5 crore of Gujarat was not of Modi but of and from the people of Gujarat. It is an insult of a donor, however small he may be. Is Nitish not harming the interest of large number of persons of Bihar origin working in Gujarat?

Unfortunately, Nitish over these four years has become more arrogant and autocrat almost following the footstep of Lalu. Some very favourable reportings in media might have brought the damage. Does it mean the beginning of the end of the rise that many like me expected?

One thing is but sure that his latest behavior is not of the same maturity that he showed in his utterances and action earlier. He might be in control of JD-U today. But in Bihar it doesn’t take much time to go down the hill.

Nitish is neither even democratic in his action. He hardly consults the cabinet or his party. The way he decided to support the women’s reservation bill against the wishes of his party president and then supported caste census was the example of his inconsistency. Should not he consult his cabinet before taking the decision of returning the Gujarat donation? Did he do that?

It is unfortunate that Congress doesn’t have good leaders left in Bihar and BJP leaders of the state are neither united nor ready to take the challenge.

Can Nitish stop Lalu and BJP going together in election, if Lalu thinks Muslims will vote for Nitish?

However, I still wish Nitish to succeed in the next election to see a developed Bihar sooner and in my life, but to keep his humility in tact. Neither arrogance nor overconfidence pays back as much as humility, and ultimately, Bihar will suffer for individual’s ego. Will Nitish playing a two-in-one role of Chandragupta Maurya and Chanakya succeed in his smart rather shrewd plans?

Posted in bihar | Tagged | Leave a comment

In The Wonderful Land Called India

Posted on June 18, 2010 by indra

Posco had inked a MoU with the state government of Orissa on June 22, 2005, to set up a huge a steel plant. It is five years now. As reported, the company has been allowed to survey the sight. Normally, any other company would have run away. But Posco remained committed to the project. Is there so much of business advantage or a special love for India? It is unfortunate that for the central government of Man Mohan Singh, the solution to the pernennial problem related to land acquisition is still not in priority list. And there are many projects as Posco still waiting.

Many dream projects of the central or state governments or of private sectors get lost. For example, no one knows the fate of Anil Ambani’s world largest thermal power plant at Dadri (in vicinity of Noida), the picturesque railway lines to Kashmir valley or many AIMS hospital promised.

India is becoming a hub of a new business. I don’t know if Indians should pride or get ashamed. According to Hillary Brenhouse’s article ‘India’s Rent-a-Womb Industry Faces New Restrictions’ in Time magazine dated June 5 “India has become the world capital of outsourced pregnancies, whereby surrogates are implanted with foreign embryos and paid to carry the resultant babies to term. In 2002 the country legalised commercial surrogacy in an effort to promote medical tourism; a sector the Confederation of Indian Industry predicts will generate $2.3 billion annually by 2012. Indian surrogate mothers are readily available and cheap.” It costs around $23,000 — less than one-fifth the expenditure in the US — of which the surrogate mother receives $7,500.

I was shocked to see a report from an ex-CII officer in one of the OP Khanna’s regular mails- ‘Is the nation in a coma?’

In a popular prime-time television discussion in Germany, the panellist, a member of the German Parliament quoting a blog said: “If all the scams of the last five years are added up, they are likely to rival and exceed the British colonial loot of India of about a trillion dollars.”

One German business daily which wrote an editorial on India said: “India is becoming a Banana Republic instead of being an economic superpower. To get the cut motion designated out, assurances are made to political allays. Special treatment is promised at the expense of the people. So, Ms Mayawati who is Chief Minister of the most densely inhabited state, is calmed when an intelligence agency probe is scrapped. The multi-million dollars fodder scam by another former chief minister wielding enormous power is put in cold storage. Prime Minister Manmohan Singh chairs over this kind of unparalleled loot.”

And today morning, Mr. JS Arora passed on another mail that was for him:

Swiss Government has officially written to Indian Government that they are willing to inform the details of holders of 70 lakh crore rupees in their Banks, if Indian Government officially asks them.

As Aesop said, “We hang the petty thieves and appoint the great ones to high office.”

Can any one doubt about the greatness of this wonderland called INDIA? Can everything be excused under the garb of democracy and the freedom of expression?

Posted in governance, industry, management | Tagged | Leave a comment

Bhopal Tragedy: Warren Anderson Hanging or Urgent Actions

Posted on June 15, 2010 by indra

While most of the Indian activists want the blood of 90 plus Warren Anderson, I wish to remind our friends few things.

Was it not a great courage and laudable act of Warren Anderson that he visited Bhopal even after knowing that a major catastrophe has happened because of the negligence of design or maintenance of the plant that came under his control? I am sure he would have been advised not to come to Bhopal under that condition. As a good manager, he dared as he wanted to see himself the loss caused.

How many of the Indian company executives would dare to do that under similar condition? In Indian film, some of the factory owners might visit the affected premises where an industrial accident would have caused so many deaths and miseries, and the anger of the people there are at the maximum but in real situation hardly someone will dare.

Even with all the assurances from the Indian government many things causing physical harm to Anderson would have happened.

I wish the present protest would have been directed to some more useful issues.

Why couldn’t the site be cleaned in last two decades or more? Why couldn’t the people affected were rehabilitated? Why can’t the government save its citizens first and then charge the expenses to the party responsible, in this case Dow Chemical that took over the assets of Union carbide after a buyout? Why didn’t the government of India take up the issue at the highest level with the Presidents of US with whom Mr. Man Mohan Singh has a lot of love? Why couldn’t Dow Chemicals be persuaded to clean up the place, as it had the expertise?

A law ministry note in 2008 clearly said that Dow Chemicals is liable for cleaning up the toxic Bhopal site. Despite this, Dow Chemicals claimed that the Indian government gave it an assurance that it is not liable for the clean-up.

What was done to ensure the effective use of the fund sanctioned and provided for the rehabilitation work? How did the centre or state perform? What has been done by NGOs so that the help reaches to those affected and not to unscrupulous ones?

Barkha Dutt’s ‘We, The People’ on NDTV on June 13 was pretty revealing and shocking too. The media, the ruling party and opposition are engaging the people of the country about fixing the responsibility of allowing Warren Anderson to slip away to US.
However, I could come to know of some information that I did not know. And I am sure India and Indians could have done better to mitigate the miseries of thousands of the people.

The site of the major chemical disaster is still not cleaned. And the place is still dangerous for the people living around it. Dow chemical that have acquisitioned Union Carbide is not ready to do the clean up. Why couldn’t the site be closed and cleaned? Why should it wait for Dow chemicals to clean? Why should the offer of Ratan Tata be not taken seriously where he asked India Inc to come forward and clean up the site?

Quite a good number of families, perhaps in thousands, are still living in the area surrounding it that is dangerous for habitation. Why couldn’t they be moved to safer places? Why can’t it be done today?

The underground water being used by the inhabitants there are poisonous and causing many harmful deceases and illness among the people. Why couldn’t the government provide a speedy and assured medical help? Why didn’t the big companies participated in it? Why can’t the MCI appeal their members to help in the task? Why couldn’t the system provide even safe drinking water with all the technologies and resources available in the country?

And those affected by the Bhopal gas leak have hardly got good enough compensation. If the government agencies agree to it, why can’t it provide sufficient compensation to those who are really affected? i again suggest the government to create a ten billion dollar fund for disaster mitigation.

Instead, the country’s prime minister Man Mohan is happy by appointing a GoM and then after certain media pressure he asks GoM to give report in 10 days. Why did he fail to do anything substantial in last six years when he held the top most position of the country?

This is what appears in an article in Outlook:

“Bhopals will happen, but the country has to progress.” Hard to believe, and enraging too. According to Sathyu Sarangi, a member of the Bhopal Group for Information & Action, a voluntary body, this is what Prime Minister Manmohan Singh told him and six of his colleagues when they met him on April 17, 2006, to press for action against Union Carbide Corporation (UCC), a wholly owned subsidiary of the American firm Dow Chemical Company since 2001. “Yes, I remember that clearly. This is what the prime minister said,” Sarangi tells Outlook.

And a senior cabinet minister such as Pranab Mukherji is satisfied by providing protection to Arjun Singh’s action and mollifying the public sentiment by promising to try for Anderson extradition.
—-
PS: Deepak Parekh, Chairman HDFC Bank, who is on the board of several companies and known for his frank and no-nonsense attitude towards most issues pertaining to governance and the corporate sector, has views worth appreciating by all those who talk about the Bhopal Tragedy.

Posted in governance, industry, management | Leave a comment

Nitish! Very Poor of You

Posted on June 14, 2010 by indra

I had adored Nitish Kumar till date. I still think he is the best bet for Bihar. But somehow I didn’t like the way he expressed himself on Modi issue. Is it due to some personal frustration? Is he losing his hold of Bihar, and wish to be in power by following all the appeasement prescriptions that some of his caste-biased friends follow?

Was it ethical for him to remain in alliance with BJP, if he so strongly felt about Modi? Should he not behave with Modi as a chief minister of a much more developed state? Is it the way a host state chief behaves with the chief minister of a state that employs large number of Bihar’s immigrants? What happens if the people of Gujarat take it as humiliation for its chief minister and react? How can Nitish deny that the photograph showing “Narendra Modi joining hands with Nitish Kumar in a Ludhiana rally” is really just a reprint? I myself had watched that to happen.

Modi has won election after election in Gujarat and remains chief minster because of his development work and popularity and not only because he is a BJP man. Most of the biggest industrialists adore him for his efficient way of working. Every Indian has seen how fast Tata Motors moved to Sanand in Gujarat after the Mamta’s Singur fiasco. At that time, even Nitish had invited Ratan Tata. Why could Nitish not attract any of the industrialists for any project worth a mention in the whole of his term?

Nitish Kumar cancelled a dinner he was hosting at his official residence for visiting BJP leaders including Modi. I wish Nitish wouldn’t have done that. It’s not a way a mature leader behaves. Rather Nitish would have invited Modi for dinner on one to one basis, as Modi was the visiting chief minister of a state of India.

Nitish’s statement on the Gujarat’s contribution for Kosi flood victims was also in bad taste.

If Muslims of Bihar decides the party to be voted on basis of the hatred shown against Modi, I pity Nitish even if he wins. Nitish must get them in his folds by his own work towards their welfare.

There is something beyond politics too and that is the way one behaves with friends and foes. Perhaps Nitish has gone under the influence of some sycophants in his closer circle.

As it appears Sharad Yadav is trying to save the situation but it will still be prudent if Nitish talks to Modi.

Will Nitish like a similar behavior from Modi when he goes to Gujarat? And Nitish must make a point to visit the state to see how his own men have found shelter there. I wish he learns something from Modi too. Look what Modi said while addressing the people of Bihar in Patna:”People of Bihar have contributed to Gujarat’s progress. I have come here to salute the people of Bihar.”

However, I still think the people of Bihar must re-elect Nitish and wish Nitish to avoid speaking a little too much.

Posted in bihar | Leave a comment

आज के ही दिन

Posted on June 14, 2010 by indra

पचपन में मैं
पंद्रह का था |
आज के ही दिन
५५ साल पहले
मैं दूल्हा था
एक गाँव में |
और गाँव के बाल बृद्ध
और महिलाएं
समझ नहीं पा रहीं थी
कौन है दूल्हा |
क्योंकि
साधारण बारातियों की तरह थी भेसभुषा
सादी थी धोती और सादा था कुर्ता|
कर्मकांड हुए सजे मांडो में
कोहबर में
और मैं थक कर था सोया
शायद ही समझता था
बिबाह का अर्थ या इसका अनर्थ |
पर समय की गति से
सम्बन्ध फलता रहा
फूलता रहा
और एक ब्यक्ति से
एक परिवार बनता रहा |
नहीं कोई चित्र उसका
पर मधूर यादें हैं
बहूत मधूर बातें हैं
और है उसका आनंद |
और हे परमपिता
सब तुम्हारी है माया और जाल
और आशीर्बाद |



From Album
Posted in personal | Leave a comment

Bhopal Tragedy and Politics

Posted on June 13, 2010 by indra

On Dec 2-3, 1984, poisonous methyl-iso-cyanate gas leaked from the Union Carbide plant in Bhopal in the night, killing thousands immediately and many more over the years and maiming several others. I am sure the Bhopal tragedy was a major industrial accident. No company or its senior most executive will plan it to happen like the politically planned mishaps in which hundreds and thousands of people are killed, be it 1984 Delhi or Gujarat communal riots.

I don’t understand the mess getting created by media about Bhopal tragedy and its purpose. Is it being done to provide the sufficient compensation to the victim families or pinpoint the responsibilities of the accident? Should it not be for creating act and laws and conditions so that such mishaps don’t occur? And even if it occurs in extremely unpredictable cases, how can the human sufferings are reduced with prompt medical care and later on with sufficient compensation for those who survive?

Something must be built into the system to find out if the mishaps are because of lack of robust design and production processes with insufficient quality checks for the plant machinery used or because of not following the preventive maintenance to ensure the health of the industrial equipment and system.

It can certainly be a fault of an individual or group if the set practices are bypassed because of some personal unethical gains.

I personally don’t fix the blame on Warren Anderson just because he happened to be the chief executive of Union carbide at that time or on Keshab Mahindra. However, they would have done their best to mitigate the after-affects. They can be guilty of ignoring the basic human responsibility.

However, the funniest media battle on Bhopal tragedy after the recent judgment of the apex court is nothing but political for interparty and intraparty gains as well as scuffling of the buck between the government, administration, and judiciary too.

Union Law Minister has come out strongly against former Supreme Court Chief Justice who, according to him, reduced the Bhopal gas tragedy into a truck accident. The Minister is also shore about the then principal secretary to Rajiv Gandhi, for hinting that the prime minister might have taken the decision to release the former chairman of Union Carbide Corp Warren Anderson in consultation with Arjun Singh, the then Madhya Pradesh Chief Minister.

Naturally none of the loyal Congress men such as RK Dhawan will like the name of Rajiv Gandhi dragged in the issue and that too when the country is ruled by all powerful Sonia Gandhi, his wife and to certain Rahul Gandhi, his son.

Some of the Congress men such as one former chief minister of MP want to remain in news by making comments in favour or against the case of fleeing operation of Anderson from Bhopal to US. The officers in Administrative services such as the then district collector, the Bhopal police chief or CIB officers are also trying to gain importance by making statements and revelations.

According to the police chief, Warren Anderson was aware of the lacunae in the UCIL plant in Bhopal and knew about the possibility of a disaster like the one which struck on December 2-3, 1984. I wonder why he didn’t come out and presented the evidences in the court.

I fail to understand one thing. Why could not the government and the system ensure a good compensation to the victim that as per report is only $500 per family?

The tragedy must provide an important lesson for the government. The country must have a large enough disaster fund and all the companies must contribute to it in generous manner. Even with all the developments in technologies and its management, there will be some disasters as it happens with in aviation or railways sector.

Along with waiving of lakh of crores of farmers loans, the government can create a fund of Rs 1 lakh crore or more for facing disasters. If a certain portion of the money that oils the hands of politicians and officers in India in getting a clearance of a company to start business is placed in the disaster fund, the after math situation can be more manageable.

Posted in indian politics, industry, management | Leave a comment

Powering India and Equipment Manufacturing

Posted on June 10, 2010 by indra

Let me start with good news first. If I go by media, a large number of private entrepreneurs and the big cooperates are rushing into adding power generation capacity in the country. Besides Anil Ambani’s Reliance Power and Tata Power, Hindujas, Birla, Baba Kalyani, GMR, Essar, Adani and many others are lining up huge investment in power plants. Even as reported Mukesh Ambani’s RIL may join the power league. I wonder why private companies took so many years to enter the power sector in big way, when the demand was so high that persists even today. It was because of certain flaws in government policies and the fear of not getting sufficient returns on the huge capital investments that the companies would have made, because of politically backed power large scale theft.

Even today, the country is far behind in creating the additional power capacity required to meet the actual demands. Most of the rural India still lacks light and power. And that has kept the areas backward. The rural entrepreneurs can’t think of starting any manufacturing enterprise that creates employment, as in today’s world nothing works without electricity.

I was stunned when I heard my grocery shop owner Singh complaining that if he would have power available in his home village, he could have started a business there instead of running his shop in Noida so far away from his native village.

However, there is another controversy that is getting a lot of media attention these days. It is about the lack of capacity of the power equipment sector causing undesired delays of the power projects. The Chinese are invading the market and taking away the orders from the sole state owned company BHEL. Both BHEL and L&T are trying to draw the government’s attention against the Chinese and are requesting to place certain restrictions on the Chinese import, because of its suspect quality and unfair trade practices.

All these years I have been questioning the reasons why BHEL couldn’t produce more and meet the requirements of the power sector. What are its constraints to increase the capacity? Why are the other players hesitant to enter?

As most of the power generating companies is in public sector, the system is corrupt. Those with authority to order equipment and contract expect a lot of bribe. BHEL being a government company itself can’t offer any bribes to the executives and officers with power to order. Naturally, the ordering companies create problems adopting different technical specifications, making it difficult for BHEL to deliver in time. One of the tricks is by demanding equipment of varying capacities that are to be custom-designed and manufactured for no reason. Why can’t the companies standardize on the equipment size for 125, 250, 500 MW, and 1000MW instead of asking for odd sizes such as 210 or 600 MW? BHEL or for that matter, any equipment manufacturer can manufacture the standard sizes with ease and faster too.

I came across a report today of a state company. One can see how many sizes are there in its planning of power stations.

I wish the big power generation companies could standardize every bit of its work at the plant site, and can also work with few standard sizes of equipment to build up the plant capacity with the equipment manufacturers that helps in improving the productivity of manufacturing and reduce the cost too.

Fortunately, many equipment manufacturing companies, both domestic as well as foreign, are setting up the shop in the country. South Korean company Doosan Heavy Industries and Construction Co Ltd is planning to set up a power equipment manufacturing facility in India. With Government mulling a safeguard duty on imported equipment, more and more foreign power equipment companies are planning to set up manufacturing facilities in India. Some of them have already tied-up with Indian companies. Mitsubishi of Japan has tied up with L&T, Toshiba with JSW, and Italy’s Ansaldo with GB Engineering, and Alstom with Bharat Forge.

The companies will ultimately taste the advantages of having the manufacturing facilities and then R&D centres in India. Let the Chinese also come and manufacture the equipment in India.

The competition between the private and state owned power generation companies as well as the same in equipment manufacturing will end the various red tapes, corruption and usher a brightly lit future for India pretty soon, when India will be surplus in power.

Posted in industry, management, manufacturing | Leave a comment