BJP’s Self-damaging Opposition to Education Reform

Posted on June 27, 2009 by indra

BJP has started with a wrong step. Why should BJP president depute Murli Manohar for reacting to the 100 day plan of Sibal, the education minister? Does he not know that Murli Manohar was hated in academic circle? Why can’t Rajnath call some eminent educationists with some soft corner for BJP along with core group of the party and take their opinion before letting the views of the party on such important issue? BJP must master the system of collective governance. Let an individual not be allowed to present his own ideas as party’s view.

The opposition of education reform for just opposition shake will be self damaging for BJP and perhaps disenchant its middle class well-wishers who were at one time their important vote banks too. It will be as fatal as its opposition to Indo-US Nuclear Treaty.

Former human resource development minister Murli Manohar Joshi dubbed ‘the UPA’s 100-day education agenda a rushed recipe for disaster and pro-rich. Let BJP not get transformed into the leftist mindset. I am also sure that whatever Murli Manohar stated is not the views of all the leaders of BJP. Otherwise how could Gujarat come out in favour of Sibal’s views within so short a time?

Sibal’s proposals are worth positive considerations and must get all the best inputs from all who can contribute to refine for universal acceptability.

BJP must point to the weaknesses in primary and secondary education in rural India-its infrastructure, its teachers, and its management. It would have come out with the ideas and ways to improve the effective enrolment to 100%, dropouts till class XII to zero, enhanced accountability and involvement of the teachers. It is only in rural India that are having maximum of the schools that are only primary, middle or secondary. Very few have all classes from nursery to class XII as it is in most of the schools in metros. Most of the students in rural India will have to sit for the board examination even after class X. The rural school will hardly have the benefits of accreditation as with single school there will hardly be choice, unless many small entrepreneurs or self employed young persons come for teaching at affordable cost.

BJP as opposition and media must doubt over Sibal’s promise to connect every rural school with broadband, and to effectively use it for providing the quality education to the children and if the school infrastructure with single teacher, and poor building with no electricity can make it happen. Can Man Mohan Singh find another Nandan Nilekani for making this happen?

I wrote once to CM, Bihar to abolish the state boards and let every school switch over to CBSE courses. Most of the state boards remain out of date about the changes required for keeping the standard competitive. Simultaneously, the boards and its employees are only extra financial burden on the state’s finance, besides making state education corrupt and transforming the teachers as union leaders or ghosts. How can the teaching requirement of a region be different to maintain its identity? Why should even the books and teaching curricula of science subjects and English be different?

Will BJP oppose the bill on the right of free education to every child, entry of private schools in villages, or accreditation of the schools? Why doesn’t it demand additionally for compulsory and intensive training and refreshment courses for every teacher in rural India and government schools? Will BJP oppose the law to prevent and punish malpractices such as donation or capitation fees too?

Will BJP block the entry of foreign universities too in India and allow the outflow of students for no good reasons? Instead why should it not press for allowing only globally highly ranked universities from all over the world?

I wish BJP to come out with positive gestures at least on education reforms with a clear thinking arrived at with its brain pool on education rather than allowing the old physicist to talk his notions on education. Let BJP know the nation what it wants, as the people of the country will like to know BJP’s course of action on education reforms.

Let BJP be more prudent in approach as responsible opposition.

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Bihar: Politically Deprived State

Posted on June 26, 2009 by indra

Perhaps very few people may remember that the first IIT got shifted to Kharagpur in West Bengal from the proposed location in Bihar because Dr. BC Roy wished so. Dr. Roy got it as he was nearer to Nehru than Shribabu of Bihar,

A news report reminded me of the above historical fact. The news is shocking for Bihar. Many in Bihar might have political animosity and differences with Lalu. However, Lalu as railway minister in last UPA government got two huge railway projects with investments of around Rs 30,000 crore- a diesel locomotive factory at Chhapra and an electric locomotive factory at Madhepura. It would have brought prosperity for the common people in the region. Siemens AG and US-based conglomerate General Electric Co. (GE) were expected to execute the two projects. If properly executed, the projects could have resulted in number of manufacturing clusters for various categories of components.

According to many reports in media, the new railway ministry, under a new head is considering to shift the projects to West Bengal. Mamata with eye on the next assembly election may do that without going for any rationale or ethics that are always the causalities in political decisions.

But should the projects be shifted with change in the government and ministers? Should not Man Mohan Singh or Sonia Gandhi stop Mamata from doing this injustice to the people of Bihar? And naturally, the next question is to be answered by the representatives and, if necessary the people of Bihar? Will they allow it to happen? Would not Nitish Kumar protest forcefully?

It is unfortunate that in last 62 years that have seen a large contingent of eminent persons from Bihar holding the charge of various ministries in central cabinet ministers, but hardly any, be it Dr. Rajendra Prasad, Jagjivan Ram or her daughter Meira, LN Misra, or even Nitish could bring in some projects of significance for the Bihar. Were they afraid of getting bad name for showing regional interest or too busy in their own selfish interests? Did they lack the missionary zeal or right knowledge to take the state ahead in competition? Did not the state and its people suffer for their ineffectiveness and inefficiencies?

And finally in an appeal to Lalu, I request him to have his street protests in Delhi or Kolkata to get the transfer of the projects stopped.

If not the politicians, the people and student community of Bihar must take up this issue united and forcefully, and prove that they can launch some useful movements too.

PS: If any one has something to add or even wishes to disagree, please write to me. If I am wrong anywhere, I wish to be corrected.

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Tata Motors’ Nano and Apple’s iPhone

Posted on June 25, 2009 by indra

Nano has been a benchmark of India’s innovative strength. Some called it as ‘triumph of Indian ingenuity’. The launch made waves across the automobile crazy population worldwide to a certain extent similar to what Apple’s product announcements make. As reported, Apple sold over one million iPhone 3GS models through June 21, the third day after its launch. I compared Nano with Apple’s iPhone as both were very innovative products with a good number of new patents going in it. Both are priced low for all pockets and both are contemporary too.

I think Nano had a potential to sell a million, if production strategies would have been sound along with a confidence about its quality level and robustness of design. Tata Motors missed the chance. I don’t say it would have been easy but I am sure with managerial excellence that Tatas can afford to possess, it could be certainly possible.

As reported in media, the wait for Tata Motors’ Nano will end soon. Tata Motors has decided on its 1.50,000 customers who are the luckiest to get the delivery starting July at the price promised. Interestingly, the company is not only intimating the perspectives buyers through personal mails, but it has also put their names on its website. But Tata Motors will take a year and half to meet this commitment. Why should Tata Motors take so long to meet the demand of the waiting customers?

Many a times I fail to understand why Tata Motors can’t scale up the production if the product designs and component development are really freezed. Mamata certainly created the mess, but there again Tata Motors had failed as it would have kept the backup plan ready. But let us forget that.

Once Tata Motors decided to assemble Nano at Rudrapur plant, it could have got over the constraints faster. Perhaps one of the reasons in the failure to scaling up was Tata Motors’ getting into a number of products- popular ACE, global truck, and competitive SUV simultaneously.

One sure way is to cut the learning time and run all seven days and all three shifts. May be, its vendors are equally vulnerable in raising the production volume. But my other and rather biggest apprehension is about the quality of Nano and the confidence level of the engineers and manufacturers associated with that in Tata Motors. Let Tata Motors come out publicly on that and let the people know its constraint. May be, the users can provide the solutions to its constraints.

But keeping the customers waiting can never be a good management practice. And now I feel like concluding that as a traditional Indian practice, Tata Motors was never ambitious enough plans for Nano that could see it selling a million Nanos in a year. Every now and then media keep Nano in news. One related to making it more fuel efficient with micro-hybrid technology. Insiders say Tata has already started asking his senior executives, ‘What is the next Nano?’

But I keep on thinking why Nano couldn’t reach a million customers.

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Noida: My City

Posted on June 24, 2009 by indra

Images Noida

According a survey based on some forty measures published in the latest issue of ‘Business Today’, Noida ranks sixth among the best cities of India and above the coveted Bangalore and Pune.

On the criteria for ‘Life at work’ Noida ranks number 2 with per capita income at Rs 85,519 per annum (9th rank) and employment growth rate of 14%. However, based on the parameters deciding ‘Life after work’, Noida ranked 22. About 95% of the Noidites live in their own houses (4Th highest).

On education front, Noida is pretty ahead. Educational institutes, public schools for upto class 12 and some with ‘International’ as part of the name are many. Hospitals calling themselves research institutes are also many. The highest number of seats for MBA and Engineering per capita are in Noida. Greater Noida is an education hub besides many in Ghaziabad and all along NH-24. Noida is pretty religious with temples or shrines of all sects and communities.

Surprisingly, Noida also has one of the worst literacy rates. Neither NGOs nor the corporate houses in Noida have done anything to see that all the children of temporary and migratory workers attend schools. With one of the most affluent population in Noida, I expected some formal or even informal education programmes for the illiterates elderly people.

According to the survey, power situation is pathetic. Nealy 50% of residents polled mentioned power cuts lasting 2-4 hours. Not a day goes without a power cut. I don’t know why the rich Noida Authority can’t build its own power plant or go aggressively for propagating clean energy such as solar among its residents.

Noida also has the reputation of being the crime capital of India with high profile murders, be it kidnapping of Adobe’s MD’s kid, Arushi murder case, or Nithari cold blood murders, kidnappings, and carjacking. None can be better to tell about that but us with three burgalry at our residence. Police is ineffective, and according to some it is one of the reasons for the high crime rates.

Noida has all potential to improve upon its rank. And some responsibilities lie with residents and Sectors’ Welfare Associations that elected. It requires only the change of mindsets at all levels. Almost all RWAs are run by people of vested interests mostly local builders.

Noida Authority (NA, the administrative body for Noida) naturally remains the main players. Unfortunately, the poll did put corruption in administration among the measures of poll. Many of my friends feel that NA might top on the measure of corruption. NA outsources most of the services of the residents to contractors of suspect characters. Naturally, it hardly bothers about the efficiency of such projects or the benefits from the projects to the residents. Perhaps the people of the country have lost the sensitivity for corruption as it has become so rampant.

However, I wish NA must engage some senior officer to look after the housekeeping and maintaining a good ambience all around. I don’t think it requires any further investment.

Can Noidites take pride in the rank of their city and contribute their own for attaining a better ranking?

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A Letter for Pranab Babu

Posted on June 23, 2009 by indra

You for one can appreciate the pains of the middle class Indians, particularly the salaried employees. It is unfortunate that this class toils hard to take the country ahead, but gets so little in return. It keeps on giving the tax right before it takes its earning home. But at the old age, the government hardly cares of them.

>>Will you come out with some scheme for the old men of the private sector, who had paid significant amount of tax during their life time deducted right at the source by the employers? Can’t a certain percentage of the tax paid be put in some health care insurance scheme that takes care of the costly medical expenses of hospitalization and medicines at the old age? Unfortunately, either the insurance companies hardly have products covering the people above 70 years for healthcare or medication or the cost are exorbitant for the limited returns that they get on savings.

>>Develop a relation between the prices paid for the essential items for good healthy living, be it vegetables, fruits or groceries by the common people and the price paid to the farmers or the actual producers. How can the end-users keep on paying Rs 15- 20 per kg of potato and onion and for that matter for all other items of daily consumption? Why can’t the number of middlemen that are, as per information, about seven of them, be reduced? And will you disagree if I say that these middlemen get the best share of the returns and get into affluent class soon where as the producers particularly the farmers can hardly dream of that.

>>Will you please get the bank interest rate reduced by half for the aam aadami who buys small little things for improving the quality of life? Why can’t the banks cut down their operating expenditure? What is the logic of announcing huge profits and dividends by charging so high interests? If the banks in the developed countries can have so low an interest rate, why can’t the Indian banks do that when the labour cost here is so low compared to that in those countries? Why should these banks try to keep the salaries and perks for its top executive so high when the majority gets so low?

>>The argument above can also be extended to the big oil companies. Why can’t the prices of the diesel or gasoline or cooking gas be reduced even if it means reduced profits or dividend that only goes to the government? Even with all the incentive provided unfortunately, none of these companies have become the world class.

I have few more queries about the country’s finances that I find difficult to understand and assimilate:

>>Why the government keep on crying about the lack of financial resources, when the solutions are universally known. Why don’t you at least attempt to discuss and, if agreed, go by the advices of the reputed persons?

>>Why can’t you remove all tax exemptions for exports for companies and for SEZ companies that have reached a PBT (profit before tax) level of Rs 20 crores as suggested by NR Narayana Murthy of Infosys? You can certainly use his services to convince the top twenty companies in a meeting with all the CEOs? Where is he wrong when he says, ‘it is sad that even after almost 20 years of such tax exemptions for the software industry, our businessmen heading companies that make huge profits continue to lobby for continuation of such tax exemptions’. Following his suggestion further, ‘why can’t you levy income tax on dividend income earned by individuals beyond Rs 1 lakh? How can you justify businessmen receiving tens of crores of dividend income and not paying taxes while professionals and salaried people earning Rs 3 lakhs a year pay taxes in a country where 80% of the people earn less than Rs 50,000 a year?’

>>And what stops your government to disinvest that even the former disinvestment secretary Pradip Baijal suggested? According to Mr. Baijal, a successful bureaucrat of integrity, ‘sale of less than 5% equity has garnered more than Rs 50,000 crore. A privatizing of the entire public sector in areas where private invest is allowed now can provide the recoveries of Rs 10lakh crore. At 15,000 level, the recoveries should be of the order of Rs 50 lakh crore and even a part sale could cover more than the fiscal deficit.’

And then why can’t you cut the flab from all the government departments through rightsizing what Air India is doing to survive? The idling government employees are just eyesores and burden for the nation.

>>Finally I request you to bring a material change in the way contents of the budget are presented and make it simple enough to be understood by the aam aadami. Along with the amount allocated in Rupee term, please also mention the actual outcome such as kms of roads, MWs of power, number of schools, and number of villages, electrified. Can one day we ensure all children of the country that the lack of finance will never be the constraints for their education?

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Can India and U.S Move Together?

Posted on June 19, 2009 by indra

Obama discourages American companies to outsource to India, and moves towards a stringent policy of granting H-1B visas. American companies are still hesitant to collaborate on high tech products with its counterparts in India. USA keeps on hurting the Indians with the aid and support to Pakistan for buying warfare equipment to be used against India. All these raise question in the minds of Indians at large-Why can’t the most powerful democracy cooperate more visibly with the most populous democracy of the world? And there are many studies inferring that India and Indians are now helping US pretty significantly.

During the period 2004-07, the Indian industry had contributed $105 billion to the US economy and created 300,000 jobs.

The Federation of Indian Chambers of Commerce and Industry (FICCI) and Ernst and Young have released a report titled ‘India Contributes to Employment, Capital Growth and Tax Revenues in the US: Direct Investments by Indian Companies in 2007-09’.

According to the report, in the financial years 2007-08 and 2008-09, Indian companies made 143 acquisitions across various sectors in the US. On the basis of public records and according to the values of the deals that were disclosed, India Inc has had deals worth $5,392 million during the financial years 2007-08 and 2008-09.

Indian steel producers – JSW Steel and Essar Steel – plan to ramp up production at mills in North America, which have been running at less than half the capacity.

American auto component giant Visteon’s investment bankers have approached Delhi-based auto parts major Amtek Auto for the sale of its plants and businesses. The $9.5-billion Visteon filed for Chapter 11 in May, a month after its UK units independently filed for bankruptcy after continued production cutbacks by its customers eroded the company’s financial stability. Visteon makes a whole range of components for vehicle makers, including light systems, air-conditioning systems, electronics equipment, power train control equipment and interior components.

Unfortunately, American companies didn’t take initiative to come in India in big way and preferred China because of the inefficient bureaucracies and its red tape. However when some like GE and Texas instruments took the initiatives, American industries realized what India can provide in return. However, I consider the government of the time was equally responsible.

If India grows at a rate anything above 8%, Indian market with a huge mass of consumers will force American companies to get attracted to India. I wish American politicians and bureaucrats appreciate the role that India can play on global issues. I do also wish if US could help India in checking China in the neghbourhood of India.

Will India-US relationship move to “3.0” as desired by the secretary of state?

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India Inc Pushes Ahead With Green Technologies

Posted on June 15, 2009 by indra

I was extremely shore after the ministry formation for two reasons. Manmohan Singh couldn’t pick up some efficient young hardworking ministers for power as well as alternate energy. Both are complementary today and critical if the country dreams for becoming a great power. Shinde had failed to make any impression of innovative approaches to solve the serious most problem of power generation during his last inning. Shinde failed to speed up the setting up of power plants. The data on the power ministry website itself are enough to speak for his poor performance.

Power ministry has become more critical as the country must adapt the latest clean technologies discarding the traditional coal based thermal power plants. It requires integration for carbon capture and storage, CCS, for the coal based power plants.

As reported, “CCS applied to a modern conventional power plant could reduce CO2 emissions to the atmosphere by approximately 80-90% compared to a plant without CCS. However, capturing and compressing CO2 requires much energy and would increase the fuel needs of a coal-fired plant with CCS by about 25%. And it increases the cost of energy from a new power plant with CCS by 21-91%.” A bold minister can only take the right decision in the interest of the nation. It’s necessary as the government remains the main player in power generation.

Integrated Gasification Combined Cycle (IGCC) is rapidly emerging as one of the most promising technologies in power generation that utilizes low-quality solid and liquid fuels and is able to meet the most stringent emissions requirements.

Alternate energy ministry has been given to the most flamboyant personality of Indian politics. It requires a lot of new ideas to meet the global pressure through new and emerging technologies. India doesn’t lack resources such as sun, wind, biomass, and ocean waves or water from rivers for clean power generation. It requires the government to take proactive policy decisions to facilitate and incentivize the entrepreneurs.

Many companies in private sectors are taking initiatives for clean technologies and have plans to compete globally. Suzlon has already become a global name in wind energy business, both equipment manufacturing as well as turnkey project executions.

Tata BPSolar offers simple solar lanterns for rural households as well as complex solar photovoltaic modules for industrial applications. Moser Baer has ambition to become one of the major players in solar photovoltaic.

Tata AutoComp through a joint venture with a Japanese company GS Yuasa International manufactures green batteries using a unique composition of calcium-calcium technology replacing traditionally used hazardous antimony with calcium alloy. The technology minimizes water loss and also reduces the battery water evaporation improving thereby the battery life as well as reducing the hazardous fumes and gases.

CII is taking the lead to make the companies realize the consequences of failing to be with world communities with clean technologies. It has started Godrej Green Business Centre to help the smaller companies.

But the researches at the engineering institutes of excellence such as IITs, IISc, and the national research laboratories of CSIR, and DRDO must also participate in debugging the technologies related to alternate energy and in cutting its cost. It requires focused facilitation and encouragement from the government.

Interestingly, Mahindra and Mahindra is working hard to develop electric, hybrid and biofuel vehicles. It has already commercialized the micro-hybrid technology for lowering fuel consumption. The technology enables the engine to switch off automatically at a traffic light when idle and in neutral gear. The engine starts seamlessly once the driver presses the clutch for going ahead. M&M with IIT, Kanpur and R&D centre of IOL and Lubrizol for making its vehicle compatible with bio-diesel.

Most of the Indian companies have taken up the tsk of getting energy efficient. An interesting name is of B. Pathak. Pathak’s Sulabh is credited with developing low cost toilet technology to produce energy out of human waste.

Interestingly, the first bio-diesel shipment from Cleancities Bio-diesel India Ltd, the biggest bio-diesel plant in the country located in the Visakhapatnam special economic zone at Duvvada, was flagged off at the Vizag Port. The consignment, 9,300 tonnes of bio-diesel, was bound for Spain.

India Inc and the community of technocrats and scientists must take up the challenge and advantage of rapidly growing global market of clean and cool technologies. As estimated, $20 trillion will be invested in energy by China and India by 2030 in low carbon projects. Further, the country could expect to earn billions from selling carbon credits. That could be another source of revenue for cleantech R&D – and another source of opportunity for Indian business.

—-
A Green Revolution

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A PM for Power Ministry

Posted on June 14, 2009 by indra

Power situation in India has been grim for decades. I remember how in late 60s- 80s the dismal power situation at Hindustan Motors made our life miserable. Our task at the factory was to keep on closing and starting machines in different sections to match the supply under quota. For months, we had to switch to third shift operation that was inhuman and highly inefficient. As a mad young man, I used to get in and come out of the plant many times in a day working almost 20 hours a day. In mid-80s when we got opportunity, we preferred to import huge diesel generating sets for around 20 MW. In 1997, I retired and came to Noida in Harig Crankshafts, and the power situation was equally bad if not worse. It remains the same today all over the country, be it Bangalore or Mumbai, Delhi or Chennai. The story of power outages is an example how the government and its bureaucracy have failed to provide the very basic infrastructure to tap the growth potential to its optimum level. How can the country’s GDP grow at 8-9% as the Prime Minister promises without availability of power?

As reported, power disruption in India’s offshoring capital Bangalore takes over 70 minutes for power to be restored if and when the disruption occurs. And it is all due to failure of the government after government that has ruled the state. NR Narayan Murthy in his book ‘A Better India, A better world’ has referred to the power project dedicated for Bangalore that still awaits government’s sanction after twenty years. Why can’t all the Metros and satellite townships have its own captive plant as proposed in SEZs? It can’t be for any other reason but the politics that rules the day.

According to a report of Manufacturers’ Association for Information Technology and Emerson Network Power, power disruption or outage costs India Inc Rs 43,205 crore. And this is situation when the captive power plants set up by individual companies in India generate 55,000 MW beside 148,000MW generated by power plants.

While on one hand the work in the companies in India gets disrupted because of power outages, 27% of the total power from the plants is lost in transmission and distribution and theft.

The record of power generation capacity addition has been poor. The new cabinet that retains the same minister hardly gives hope. Perhaps the only way out may be a PM for power ministry. It is not undoable, if the project management is efficient and the promises are met. Here is some good news that may enthrall optimistic like me:

The Power Ministry of the new UPA government promises to deliver new power capacity of 5,653 megawatts (MW) to the nation by the end of August. The President address promises to add 13,000 MW a year. But the use of words such as ‘strive’ or the ‘promise to announce’ additional coal-based ultra mega power projects (UMPP) of 4,000 MW each at Tamil Nadu, Gujarat and Orissa in the next 100 days’ makes the intention doubtful.

As reported, a bevy of private power promoters are waiting in the wings with firm proposals to set up more than 30 greenfield power projects with a collective generating capacity of well over 25,000 MW across the country.

The Clinton Foundation has firmed up its plans to set up the world’s largest solar park in Gujarat with a capacity of 3,000-5,000 Mw.

If PM couldn’t get a better power minister, will he use one of the best youngsters from among new MPs or an efficient IAS to get the power projects monitored for him?

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Green Technologies: Design for Recycling

Posted on June 12, 2009 by indra

“From 2010, the European Union has made it mandatory for all automakers to produce cars that can be recycled up to 80% so that the pressure on the natural resources is lower. Auto compnenets maanufacturers are abandoning the use of carcinogenic products in favour of biodegradable materials.”

Manufacturing management talked in 80s and 90s about two target considerations for designing any new products- design for manufacturability, DFM and design for assembly, DFA. The idea was to tell designers that they can’t work in isolation creating the drawings and detail specifications including tolerances of the product and all its components without ensuring its feasibility to manufacture and assemble without excessive cost and inconvenience. Later on the design for serviceability got introduced. It must be easy to repair and service the product too.

And with the concern of the global warming and pollution of the environment that is becoming critical today, the engineers must design products also with recyclability or recycling, DFR as one of main considerations for easy disposal without causing much damage to the environment.

“The automobile industry still remains the pioneer in this field. The bodies of most end-of-life vehicles have been recovered by specialized processes. But this is no longer enough, as cars are not made solely of metal. Polymers are extensively in use along with various grades of coated and uncoated steels. Designers must therefore try to recycle all the components going in the latest cars. This is the real challenge, because it requires the establishment of economically viable recycling chains, organized by major categories of materials.

“All the major automakers have decided to incorporate the demands of recycling into the design of its vehicles.

Design for Recycling encourages manufacturers to take voluntary action without waiting for the government imposed intervention or making it mandatory. Its goal is to encourage pre-production planning for safe and efficient recycling by eliminating hazardous and non-recyclable materials from the production process. Manufacturers and their technocrats are taking up the challenge keeping the global need in mind.

There are many tough technical problems that require R&D. for example, plastic gas tanks, becoming very common in new vehicles, cause several problems for recyclers. First, there is potential danger to the environment and worker safety because the plastic tanks absorb volatile organic vapours from gasoline. Furthermore, the current multi-layer/multi-polymer design cannot be easily or economically recycled.

All the R&D institutions will have to take special interest to work for green technologies. Will India and its innovators take lead to remain globally competitive?

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Growing ‘Made in India’

Posted on June 8, 2009 by indra

India’s big domestic market is reason enough for growing interest of MNCs to set up its manufacturing plants in India. Many companies of developed countries are entering in India’s manufacturing sector.

Most of the globally known auto companies including commercial vehicle manufacturers are having its facilities in India.

Toyota Motors’ first coming in India for commercial vehicle didn’t get ahead significantly in 80s. At later date, Toyota Motors set up a plant near Bangalore in India for manufacturing its utility vehicles and compact passenger cars, presently manufacturing Innova and Corrola respectively. It has another manufacturing facility that produces gearboxes that are exported too. Toyota Kirloskar, as part of its expansion plans now to set up another small and compact car manufacturing unit with an investment of about Rs 3,200 crore, creating 2,000 jobs.

GM might have filed bankruptcy in US; GM India is planning another minicar in India that will be priced below ‘Spark’. Other foreign auto manufacturers including Honda and Nissan are setting up or expanding their manufacturing facilities in India to get its own share of Indian market. Interestingly, exports of passenger cars from the country soared 41.64 per cent in May, although domestic sales increased by a meager 2.48 per cent.

Hyundai Motor India is studying the feasibility of setting up a diesel engine plant close to its existing car manufacturing plant near Chennai. Hyundai Motor already has a petrol engine plant which makes Kappa engine at its Sriperumbudur plant near Chennai. The Kappa engine, which is fitted into the i10 car of Hyundai, was developed at a cost of over $400 million. The company expects to sell about 5.8 lakh cars during this calendar year, which is an increase of slightly over 18 per cent over the previous year. Out of 5.8 lakh cars, about 3 lakh cars will be exported including to some European countries.

Being in Noida and seeing Delhi Metro getting into this NCR by August end, I can realize the speed at which Metro is expanding. Its contribution to the improvement of the quality of the life of the city has made other cities to go for Metros in number of cities. And this is the way the related manufacturing gets a boost. Bombardier Transportation set up a manufacturing facility in Gujarat to produce metro train. The first Bombardier Movia train has wheeled out of the Savli facility in a record 18 months. The coaches are cheaper in price than the imported ones. Its design is improved one and incorporates many improved features. It is about 35-40% indigenous. It will supply a total of 81 train sets comprising 424 broad gauge coaches to Delhii Metro Rail Corporation (DMRC) by October 2010 at a cost of about Rs 3,000 crore. I am sure that the plant will soon become the company’s hub even for export market.

The defence production facilities can further enhance the manufacturing sector if it scales its production and also get into export business more commercially. Latest in the news is the Indian Army’s acceptance of DRDO designed and locally built main battle tanks, Arjun. The first armoured regiment with 45 Arjun tanks has taken shape. MBT Arjun has excellent mobility, superior fire power and protection, and is comparable to contemporary world tanks. Some of the significant locally built technologies include Kanchan armour, hydro-pneumatic suspension, armament system, integrated fire detection and suppression system, system engineering and system integration of complex weapon platforms. The tank has been designed and developed by Combat Vehicles Research and Development Establishment India (CVRDE) along with other defence research and development organisations (DRDO) and industrial partners.And the government must take a prudent decision to keep on scaling up and innovating it. It must market and export it to all the countries against global competition. It will mean a lot of outsourcing to many manufacturing vendors.

The government must facilitate Indian PSUs such as HAL, BHEL and BMEL to expand and to become one of the top 10 companies of the world. Automatically, this thrust will give Indian manufacturing a big boost.

But the real employment generation can come only through manufacturing of low tech high volume domestically required commodities in big way in all corners of the country. India will have to compete with other Asian countries, particularly China. How can India get into this mode of manufacturing? India must find a cost effective model and induce the thousands of the new entrepreneurs for this sector.

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