Monday, September 29, 2008

The black future

Despite an increase in enrollment of students, the scheme has failed to either ensure attendance, or drastically reduce dropouts, especially by girl children. By VIKASH KUMAR

Providing education to all children in the age group of 6-14 years, bridging the gender gap at the primary stage by 2007, and universal retention by 2010 were the chief goals of Sarva Shiksha Abhiyan (SSA). Now, consider the reality. The number of children out of school on 1 April, 2001, was 34 million, and after four years of implementation of the scheme and an expenditure of Rs.11,133.57 crore by the Centre and state governments, 13.6 million students were still out of the ambit of the scheme. This raises a few questions – either the targets were over-ambitious or there are inadequacies in the scheme.

Seema Kumari, a class V student in Jamtara Primary School, has a fervent desire to study. But she despises the idea of going to school. The reason: there is no separate toilet for girls. Expressing her dissatisfaction over infrastructure in the school, she says, “It is embarrassing. How can I go in the toilets used be a boy?” Government-run schools suffer from other issues such as lack of running water, electricity, and proper shades. Janeshwar Prasad, a retired school teacher in Aurangabad district of Bihar, says, “In the rainy season, it is a Herculean task to reach schools due to the condition of connecting roads. This is why teaching is seriously affected.”

The union ministry has found that there is a gap of 10 lakh classrooms, 4 lakh toilets and 78,000 drinking water facilities in schools. But it had only sanctioned for 5 lakh classrooms, 59,000 drinking water facilities, and 57,327 toilets in 2006-07. Jai Shree Oza, director, CEMD, says, “Quality of teachers and curriculum is also important to meet the desired goals.” Many schools in the remote areas suffer from paucity of teachers. An official who does not wish to be quoted, says, “Teachers are reluctant to go to remote villages. They want postings in towns.”

Ideally, the teacher-student ratio should be 1:40. But field realities show huge variations. The villages in the vicinity of towns have a better ratio, but in the interiors, the ratio is as high as 1:150. A survey conducted by an NGO, PRIA, in Harayana during 2004-06, found that the ratio in some villages was 1:100, and remained unchanged during the period. According to a recent CAG report, 75,884 schools in 15 states/union territories operated with only one teacher, and 6,647 schools in 7 states were without any teacher at all.

There is under-utilisation of funds. In Haryana, in 2004-05, the first installment of the central share of Rs.50 crore was released on August 13, 2004. The problem is that both the centre and states don’t release funds as per annual plans and budgets. M.A.A. Fatmi, the union minister of state for HRD, says, “States like Bihar are not able to utilise the allocated funds.” According to a 2006 CAG report, Rs.47.88 lakh was released in Jharkand in 2002-03 to non-existent schools.

At a more macro level, the scheme is saddled with lower-than-projected allocation of funds. The budgetary support to the programme in the initial years was too less. In the first three years of the programme, the budgetary funding was just a third of the projected requirement, and there was a shortfall of Rs.11,699 crore. This was the main reason that targets could not be achieved in the initial years, and the deadlines were pushed further. It was during the UPA regime that the scheme gathered the much-desired momentum. The funding of SSA is done through the educational cess of 2%.

Initially, the funding pattern between the Centre and states for the programme was 75:25 during the 10th Plan period. In the 11th Plan, this has been changed to a 65:35 ratio for the first two years, 60:40 in the third year, 55:45 in fourth year, and 50:50 in the last year of the plan. The total outlay for the entire scheme during the 11th Plan is Rs.71,000,000 crore, but the changed ratio puts more burden on the various states.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
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Tuesday, September 23, 2008

No one ever dares to bell the cat. Do you?

The Société Générale case invites comparisons with the Kidder, Peabody imbroglio & the Virginia Tech incident
Que: What do you make of Jerome Kerviel, the trader who just lost $7 billion for Société Générale with his secret dealings? (Jorge Gonzalez Henrichsen, Mexico City) Ans: We think his dealings probably weren’t so secret. In fact, we are ready to wager that ever since the details of Jerome Kerviel’s trickery started being exposed, more than a few of his coworkers have been cringing. “I knew something was wrong with that guy,” they’re confessing at home or whispering to each other. “He always gave me a strange feeling.” Some are recalling the times they almost spoke to a manager about their concerns, but stopped themselves. “I didn’t have any real proof,” they might tell you by means of rationale.

Or: “It’s always better to keep your head down.” Or: “No one would have listened.” It’s hard to argue with these explanations. Kerviel was astonishingly adept at covering his tracks, slipping though several of the bank’s security firewalls as he moved on.

And it’s true that organizations – especially hierarchical, bureaucratic ones – can develop cultures in which the rank and file don’t feel exactly enthusiastic about reporting bad news upward, especially if it’s just a hunch. They sense their managers don’t want to hear it, and their managers, busy with competitive pressures, don’t do much to persuade them otherwise either. We don’t want to jump on the standard blame-the-company bandwagon. Sure, some companies could make it easier for employees to come forward with concerns.

But from our experience, even when companies provide convenient, confidential ways for that to happen, few employees use them. Suggestion boxes remain empty. Ombudsmen wait for the phone to ring.

Even in organizations where managers make it abundantly clear that risk management is everyone’s job and where those who speak up are celebrated as role models, there just seems to be a human disinclination to squeal. People would rather wait, in hopes that the miscreant in their midst fades away before doing some real damage or gets caught. And so, time and again, you get cases like Kerviel’s – rogues who raise hackles but not alarm bells. In 1994, after Kidder, Peabody lost hundreds of millions at the hands of a trader named Joe Jett, several of his colleagues had admitted that they had long suspected he was up to something illegal.

“Someone trading such mundane products could never have been making those kind of profits,” they generally said. “We figured someone upstairs would eventually get that.”

This all-too-human dynamic brings to mind the tragedy at Virginia Tech (though of course there is no comparison between the magnitude of the incidents), where 32 people were murdered in 2007 by a student. After the tragedy, dozens of people who had previously been in contact with the killer said they had been worried for months that exactly such an incident would come to pass.

Some had spoken up, but many more, silently hoping he would go away or get noticed, had kept quiet. Soon after the shootings, Virginia Tech instituted numerous safety measures designed to make another such incident impossible. That’s what exactly happened at Kidder, Peabody as well.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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Monday, September 22, 2008

From subprime to ‘near prime’

Financial viruses spreads to the EU
After the US, it’s Europe, & in Europe, after Société Générale, it’s UBS, the largest Swiss bank is latest victim of the most dreaded & infamous 21st century financial shark, commonly identified as the ‘subprime’. UBS has recently announced writing-off $4 billion worth of securities as part of its plans to absorb subprime losses. Earlier in October, the bank had written down $3.6 billion in value of its mortgage-backed securities, & then, in December, it further wrote-off $10 billion. Now the problem will spread because of “near prime mortgages,” said Simon Adamson, Senior Analyst, CreditSights, a London based independent credit research firm, to B&E, adding, “UBS’ main trouble is with Monoline (bond insurance), ALT-A mortgages, Fico & CDO (Collateralised Debt Obligation). This is not end of the story, as banks are not coming clear about their exposure to such instruments; it’s difficult to forecast nature & amount of the crises.”

Both Swiss Federal Banking Commission & US Securities & Exchange Commission intend to ascertain if the UBS had booked inflated prices for mortgage bonds despite knowing their values had dipped. UBS, on its part, disapproves any special audit of itself. UBS AG has appealed its shareholders to vote its proposal for a 13 billion Swiss franc ($11.94 billion) capital increase through the sale of a convertible bond.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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Saturday, September 20, 2008

Global steel industry

The steel industry today is much less cyclical than it has been in the past. This is due to a number of key fundamental changes that have taken place in the past years. Firstly, we have seen a move towards a more consolidated steel industry and this has had real benefits in creating a better supply-demand balance. Secondly, we have seen increased demand for steel from fast-growing emerging regions such as China, India and South America. When combined, these dynamics have helped to create a more sustainable steel industry capable of providing value to its stakeholders throughout the cycle. Of course, the industry will always be cyclical to some extent, but I believe that we have entered a new paradigm where these cycles are longer and flatter. In terms of the current cycles, the year 2007 was an excellent one for the steel industry. ArcelorMittal is expected to announce record full-year earnings in the region of US$19.2-19.4 billion. We still believe that the long-term outlook for the global steel sector is good with the steel demand continuing to grow at between 3-5% per annum.

What are your growth plans for India and China? In fact, you seem to be following different strategies in the two nations – organic growth in India, and inorganic one in China. Do you think that these strategies will yield results? Why & how?

Both China and India are very key markets for us. We believe that they are the two powerhouses of global growth in the next decade. We are not really following two different strategies. It is just one strategy, which entails expansion in key markets. It is all about the opportunities that present themselves to us. In India, it is currently about setting up greenfield projects in the states of Jharkhand & Orissa. We are very committed to our projects in India and believe that we can add considerable value to the steel industry in this country. In China, we already had a stake in Hunan Valin and we have recently built on that with our stake and offer for China Oriental. We are pursuing the opportunities that present themselves to us whilst always focusing on our goal of increasing our involvement in these key countries.

Where do you see ArcelorMittal, and the Mittal Group itself, five years from now? Now that you are the largest in the steel sector, what’s the next milestone for the Group?

Yes, we are the largest, but, even with more than 110 mt capacity, we only have a small share of the global market. We are committed to further growth for the company and its stakeholders. I hope that in five years’ time, we will still be the global leader in steel but we don’t take it for granted. We’ll continue to expand into new countries and new product areas when appropriate and to increase our own raw material resources, as well, of course, as continuing to provide our customers with world class steel solutions. Our strategy is not driven by tonnage. It is designed to continue to add value for our various stakeholders and enable us to deliver on our brand promise of transforming tomorrow.

What do you think of Ratan Tata as an entrepreneur and what degree of impact would his latest car launch Nano have on global corporate mindsets?

I have great admiration for Mr. Tata. He is an entrepreneur with great vision. The Nano is a fantastic example of vision being transformed into a reality. It is also a great achievement for India and illustrates India’s ability for innovation and entrepreneurship on a global scale. It is a very exciting time for India right now, whether it is in business, politics or science. I am proud to be a part it.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
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The Hindu : Education Plus : Honour for IIPM
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Deccan Herald - IIPM ranked as top B-School in India
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IIPM Delhi - Indian Institute of Planning and Management New Delhi ...domain-b.com : IIPM ranked ahead of IIMs

Tuesday, September 02, 2008

Towers of power

With Reliance Power IPO, Anil takes a step towards restructuring Reliance Energy It was a relaxed Sunday afternoon for many. But, for Anil Ambani, Chairman, ADAG it wasn’t the same. The man seemed quite fervent as he formally kicked off India’s biggest-ever initial public offer (IPO) to mop up Rs.117 billon (leaving behind DLF’s float of Rs.91.87 billion) by Reliance Power Ltd. (RPL). And why not? As RPL (a 51% subsidiary of Reliance Energy) lists on the bourses in February, Anil has a fair chance to topple brother Mukesh to become the richest Indian (his 44% holding in RPL valued at $11 billion could spurt his wealth to $54 billion) and ADAG, the second largest group in India in terms of market cap.

Well, Anil has all reasons for his gusto, but what about investors going gung ho over the IPO? Isn’t that too optimistic on their part for a company with no operating history in power generation? Moreover, with the first of its 13 projects to go on stream by December 2009, is it worth waiting that long? Further, its reliance on RNRL (currently in litigation with RIL for gas supply) & other group affiliates, for the supply of fuel as well as ancillary support services makes the business proposition riskier. So, will this not impact performance of those nine projects that are either fired by coal or gas?

S. Mukherjee, CEO and MD, ICICI Securities (consultants to RIL on the IPO) disagrees, “The issue is not of owning reserves but of the availability of reserves, which are there in plenty. So, I don’t see much of a problem on the issue.” Moreover, with cash flowing in, the company is now also looking at acquiring coal mines in Indonesia, Australia and South Africa to overcome domestic problems. In fact, several other industry experts see big value in RPL. According to UBS, cost of capital for RPL would be 20% less than the state-run giant NTPC – which implies cheaper power too. And a whopping $28 billion investment in 13 medium & large sized power projects with total capacity of 28,200 MW makes it the largest development pipeline in India so far.

Having said that, it’s an uncertain bet for shareholders right now, with only the Reliance track record inspiring some confidence. Anil’s words appear ominous when he says, “No one is born an industrialist... even my father’s abilities were doubted when he went about setting the Jamnagar refinery.” Well, one thing is for sure, if it was about relying on a precedent, he couldn’t have come up with a better one!
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
IIPM to come up at Rajarhat
IIPM awards four Bengali novelists
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India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...domain-b.com : IIPM ranked ahead of IIMs