IIPM ARTICLE BROADCAST

Lessons not learnt

noreply@blogger.com (IIPM) — Thu, 06 Jun 2013 06:04:00 +0000

A 2010 high-level army assessment had predicted Chinese designs on Daulet Beg Oldi but India’s civilian rulers could not care less. Mayank Singh has the details.

The country may have woken up to the surprising and unexpected news of China entering and tenting in Depsang area, 30 kilometers south of Daulet Beg Oldi, in the Ladakh district of Jammu and Kashmir. But not the Indian Army.

According to a high-level Indian Army report submitted in 2010, this latest transgression by the Chinese army was pretty much on the cards. The report which was prepared under the command of a Lieutenant General was, “intended to be a guidance document for commanders and staff in evolving, reviewing and refining of operational plans with full knowledge and appreciation of the overall strategic context under which Sino-Indian military confrontation may occur and with deep insight into PLA’s military doctrinal content, its military capability, availability and types of forces for application in each sector and forms in which the threat may manifest.”

The high-level report had noted - quite correctly as it turned out on April 15 - that the Chinese strategy is not to grab territory but to send a message and to make political gains. It had predicted that China will avoid the Chusul sector but will try grabbing territory on the Daulet Beg Oldi side

The report speaks of the rise of both India and China but warns against lowering our guards. “While seeking and expecting a benign Sino-Indian cooperative and collaborative Asian geopolitical order, it would be imprudent to ignore China’s politico-military capabilities, its Asian and global ambitions and its track record, mindset and strategic culture. There is no alternative other than to intimately monitor PLA’s military capabilities and striving to institute appropriate deterrent military responses, operational concepts, operational plans and force postures.’’

The report says that China has a proven record of single-minded pursuit of long term goals and objectives which will lead to an environment of conflict of interests with India. Like in the late 1950s and early 1960s before it culminated in a full-fledged border war, the tactics as far as the Chinese is concerned are tried and tested. Whether by accident or design, Chinese troops are more than ever before, crossing into Indian territory. The Chinese deny the charges and whenever solid evidence is presented, they attribute it to “The inexperience of the post commanders.’’

The military establishment is letting it be known that the latest tactical transgression is aimed at showing to the world that India – which has the third largest standing army in the world – can capitulate because of its own lack of foresight and proper appreciation of security situation in a strategic and sensitive arena.

But the critical question is this: if we continue to ignore threat perceptions issued by the army under the guise of misplaced liberalism, then what happens to the intelligence which is being laid out on a platter? The Chinese are not known for making halfhearted efforts and their focused work in Tibet has significantly added to the threat perception and war waging capabilities against India. In Tibet, China has added 20,000 km of railway tracks over the last two decades, compared to a measly 860 km by India in the same period. Here again, it is question of overlooking sensitive developments. While the Border Roads Organisation (BRO) continues to bicker over its inability to carry loads at high altitude because they do not have helicopters, a decision on it has been conveniently kept on the back burner.

Ever alert to the Chinese threat, the high committee report has systematically collated and presented relevant facts and assessments on aspects which would govern China’s geopolitical and military behaviour in the immediate foreseeable future, especially with regards to India. According to the army, the report is an appreciation of the ground situation and an attempt to put things in perspective – the developments in Ladakh have proved to be uncannily precise.

The report says that in the backdrop of key tenets of PLA’s military doctrine of Active Defence, War Zone Campaign (WZC) and recently-evolved Unrestricted Warfare - keeping in view its sectoral military aims - describes and analyses three plausible operation level scenarios which may emerge in a timeline of 2012-17. The scenarios are analysed for costs-risks-gains to China as well their military and geopolitical impact.

Critical to the Chinese plans is their War Zone Campaign (WZC) Doctrine. According to the report, the Peoples’ Liberation Army (PLA) has formulated military doctrine for fighting war at the operational level which it refers to a war zone. The strategic doctrine dictates that military campaign in a war zone is a series of related battles fought under a unified command to seek political capitulation of the adversary.

The report says that it involves a phased rapid yet calibrated rising of conflict threshold and force application while offering an opportunity to the adversary to capitulate and seek negotiations prior to transcending to next phase in the escalatory ladder. Military destruction and annihilation is only a means; political capitulation of the adversary remains the main objective.

The success of this doctrine is based upon preliminary lulling of the adversary into state of complacency while the PLA upgrades its readiness levels. This preliminary phase, to be executed during peace time and over prolonged periods is referred as “External Calm & Internal Intensity (ECII)”. Once PLA’s desired readiness levels are achieved and geopolitical situation is considered appropriate, the actual military campaign under a unified HQ (WZC HQ) would commence under the WZC Doctrine under three phases.

Phase 1 includes actions by ‘Elite Forces and Sharp Arms (EFSA)’ or Jingbing Liqi. In this phase, special operation forces (SOF) are deployed to gain first hand information of the battle, disrupt the enemy’s build up and make a political statement asking the adversary to back off. The aim is political victory, not territorial gain. If the adversary backs off, the WZC is considered successful.

In Phase 2, if the adversary does not capitulate through EFSA measures, the next phase is to ‘Gain Initiative by Striking First' (GISF) or Xianji Zhidi. The purpose is to prosecute ‘deep non-contact battle’ through long range precision strikes at adversary’s strategic locations and major military infrastructures. These are to be conducted in synergy with intense cyber war and other elements of asymmetric threats. The main objective is to cause decision paralysis and convince the enemy of the inevitability of military annihilation unless they capitulate and seek negotiations. This is often referred to as `winning victory with one strike.’

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

BBA Management Education

Back to square one

noreply@blogger.com (IIPM) — Tue, 04 Jun 2013 06:15:00 +0000

Will Musharraf's return change Pak's political scenario?

"Where are the people who said I will never return home. I have been receiving death threats and some people have been trying to scare me but I have returned home for the sake of my country and people," was Pervez Musharraf’s riposte to the skeptics who discounted his chance of return owning to the charges hanging against him. It is noteworthy that Musharraf's safe homecoming was tolerated by Asif Ali Zardari, the man who was put behind bars and later forced into exile by Musharraf himself as Pakistan’s president way back in 1999 and 2004 respectively. It is debatable whether it’s a gesture of magnanimity or a lame submission to General Kayani’s dictate, with whom Musharraf enjoys an arm’s length relationship. Despite being one of the weakest presidents of Pakistan, Zardari knows that Musharraf doesn’t present a realistic challenge for him in the upcoming general election to be held in May this year. Not because Musharraf doesn’t hold any charisma but he is endowed with too little time to establish a foothold in the heartland of Pakistan. Further, and most importantly, Zardari was helpless as a multi-participant’s deal was struck involving the army, the government of Saudi Arabia, Nawaz Sharif and Musharraf.

Musharraf’s impact on the impending polls and in Pakistan’s public life doesn’t seem too potent as the contest will be a tripartite dead-heat race among Zardari, Imran Khan and Sharif. However, the Muttahida Qaumi Movement, the leadership of Indian immigrants in Pakistan, has immediately warmed up to Musharraf with open arms much to his delight in an otherwise hostile environment prevailing.

Musharraf had been a mixed bag for India – on the one hand he orchestrated the Kargil war as military general while on the other he had been instrumental in cooling Kashmir’s simmering pot as the country’s president.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face

BBA Institute

A 20,000 tonne dilemma

noreply@blogger.com (IIPM) — Mon, 03 Jun 2013 04:20:00 +0000

It is important to increase the supply of gold to the market and reduce import levels.

The government has recently announced an increase in the import duty on gold with a view to strengthen the external sector of the economy and shore up the value of the Indian currency. While the duty on refined gold used for jewelry has been hiked from four to six percent, that on gold dore used for industrial requirements, particularly in the refinery sector, has been raised from two to five percent. The government has taken this decision because our economy suffers from the highest current account deficit at 5.4 percent of GDP.

The problem with this policy is that it focuses solely on the demand rather than supply side economics. To that extent, such a policy change is unlikely to lower the demand for gold across the country, owing to the people’s psyche and ills of economic governance.

The traditional role of gold in Indian society is embedded as a culture of savings to meet family requirements like weddings or religious ceremonies. Besides, trading communities traditionally tend to invest in gold as a form of contingency fund to bail them out in case of potential business losses in the future. Also Hindu temples like Tirupati and Padmanabaswamy in Tiruvanthapuram are known to hold huge gold reserves. Similarly, other religious bodies also possess gold reserves. All this in a sense, suggests the centrality of gold to Indian life. Gold remains a primary investment across all socio-economic segments because of tradition, security and hedge against inflation drive demand. Acquisition of gold at this juncture, characterized by an uncertain economy, offers the investor capital appreciation unlike any other form of investment. Therefore, an enhanced demand for gold occurs when investments in real estate, stocks and shares, debt securities, besides mutual funds are unable to offset high inflation rates. Thus, gold continues to remain the most attractive form of investment.

The government’s inability to effectively curb the high inflation rate, besides other problems like low growth rate, unhealthy level of deficit finance and an alarming current account deficit has shattered people’s credibility in economic governance. Also the fact that internationally renowned credit rating agencies are contemplating to further lower the country’s investment grade, only reinforces such a line of thinking.

The country consumes 800-1000 tonnes of gold annually, which amounts to $38 billion or 20 percent of the global demand. The new measure is expected to decrease demand for gold by 10 percent. India imports gold worth over $35 billion largely from South Africa and the US for domestic consumption. Today, gold comprises 10-15 percent of India’s imports. This policy aims to reduce the widening trade and current account deficit to eventually strengthen the rupee. Today, the external value of the Indian rupee has declined in relation to the dollar, which is also India’s trading currency.

Whether adoption of such a policy would address the problem or not is improbable as this approach only tackles the symptom but not the cause. It is important to note that the price of gold in India, even before the proposed hike in import duty was seven percent higher than the international price. This proves that when demand gallops ahead of supply, higher prices are bound to prevail. Gold has a low elasticity to price and therefore, higher duties have less effect on consumption and imports.

The number of artisans employed in the gold jewelry industry across the country is estimated to be nearly two million people. If gold’s demand drops by 10 percent, there will be a direct bearing on the unemployment levels, which in turn has the potential to create social problems like crime and suicide.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

BBA Management Education

Movie Review: I, Me Aur Main

noreply@blogger.com (IIPM) — Sat, 01 Jun 2013 05:07:00 +0000

Oh boy, what a pain!

I am the best, the protagonist of I, Me Aur Main, intones every time he is assailed by self-doubt. He does this standing before a mirror, his fists clenched like a pugilist poised to deliver the knockout punch. You expect the guy to be a man of action. Turns out he’s not. The punch never materializes. And a KO is out of the question.

When neither the plot premise nor the treatment has anything to write home about, expecting John Abraham to come up with a deadly coup de grace on behalf of this middling romantic comedy is really the height of optimism.

As the title suggests, this is about a man who cannot see beyond his nose. But he is a lucky bloke – he gets away with being a pain in the neck.

Neither this guy nor his story is particularly interesting. The narrative is crammed with predictable devices, and the women in the protagonist’s life do not seem to possess a life of their own.

Which woman worth her salt would fight to cling on to a man who lives with her for three years, refuses to pay the milkman’s bill because he drinks black coffee, and dithers endlessly when it comes to the question of solemnizing the relationship?
About the only surprise the film springs is that it does not end in a gaudy shaadi shamiana swarming with smarmy guests belting out a raucous celebratory song. Instead, the climax unfolds in a maternity ward where a baby girl is born and all is forgiven.

Directed by debutant Kapil Sharma, I, Me Aur Main revolves around a music producer (John Abraham) out of tune with the times. His live-in partner (Chitrangda Singh) tries in vain to make him take her home to mom (Zarina Wahab). When all efforts fail, she dumps him. The hero finds another woman, a fashion stylist (Prachi Desai), who is the exact opposite – bubbly and full of beans. And life goes on…

The film never springs to life, twisting through a sub-plot about the hero’s boss (Raima Sen) who, in her own words, has been hired by the music company to put him in his place. The male protagonist decides to get his own back by launching a new singer who has been rejected by the boss. He gets too many shots at redemption – by the time he gets it right, the audience has ceased to care.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
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IIPM : The B-School with a Human Face

BBA Institute

More research same results

noreply@blogger.com (IIPM) — Fri, 31 May 2013 11:05:00 +0000

Everybody knows which is the rape capital of India; a survey nails it again

The brutal gang-rape of a girl in Delhi in December 2012 again justified Delhi's title ignominious title as ‘the rape capital of India.’ The growing number of crimes against women has proved the city’s inability to provide safety to this vulnerable section of society.

According to a recent TripAdvisor survey, "Delhi is voted to be the most unsafe city while Mumbai is ranked as the safest city." Bangalore and Ahmedabad are rated as second most safe cities of India. Around 94 per cent foreign female respondents expressed their fear of visiting India alone, but not when they travel to other international destinations. This fear can be gauged by browsing the records of National Crime Records Bureau. According to NCRB, 24,206 incidents of rape and molestation were recorded in India in 2012, which is a rise of 9 per cent over the last year. Delhi alone recorded over 4,000 rape cases in 2011. More than half of the reported cases had victims between the age group of 18 and 30. A 2009 government crime report said that about 24 percent of total rape cases and above 40 per cent of cases of kidnapping and abduction of women took place in Delhi. In another survey jointly conducted by a women's rights group Jagori and the UN, it waas revealed that two of every three women in Delhi have been sexually harassed at least twice and at the maximum five times in the last one year. Shockingly, 40 per cent of harassment and molestation incidents took place in broad daylight. What is worse, 45 per cent women surveyed felt no cooperation from the police if they approached. Unfortunately, 70 per cent of men interviewed said that they would not intervene and rather be mute spectators.

Delhi Police has earned the reputation of being untrustworthy by local civilians. They have failed to set the environment of 'zero tolerance’ against rape. The conviction rates too are in a complete mess with below average forensic capabilities and very hollow anti-rape laws, despite the recent changes.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face

BBA Institute

Much ado about nothing

noreply@blogger.com (IIPM) — Thu, 30 May 2013 07:35:00 +0000

By trivialising and politicising the War Crime Trial, the Awami League regime blew the historic opportunity to punish the 1971 War Criminals through an internationally accepted procedure, says Saurabh Kumar Shahi

After the sentencing of a senior Jamaat e Islami (JI) leader to life in prison last week for crimes against humanity during the 1971 war, Bangladesh is witnessing probably the biggest political turmoil since the 80s and 90s. Abdul Quader Molla, one of the top rung leaders of the JI, is the first political figure to be sentenced by the International Crimes Tribunal, following the verdict against a runaway televangelist who was awarded death penalty in absentia.

The verdict was followed by protests by the mass of urban liberal Bangladeshis who gathered at the Shahbagh More locality demanding more stringent punishment for the war criminals. The latter only intensified their protest after one of the bloggers and organisers of the protest was brutally killed outside his home. On the other hand, sensing the government's mood of altogether banning them, strengthened by the adoption of the required amendment by the parliament, the JI and its student union has stated a nationwide protest that will make or break its future.

The issue of war crimes is a complex one and it was but natural that the trials would evoke dramatically opposite reactions. However, the way the process has been politicised has taken the lustre out of it.

It can be historically substantiated that JI and its Razakars helped the Pakistani army suppress the revolt in 1971, leading to horrendous crimes. It can also be proved without a reasonable doubt that many of its leaders were aligning against the popular national mood. However, the regime in power as well as other supporters of the trial have singularly failed to parade enough eye witnesses to testify against them. Also, the tribunal will have to ascertain whether these Razakars and JI leaders committed crimes against humanity by organising genocides of the unarmed population or merely targeting armed Bengali freedom fighters.

Sheikh Hasina's Awami League came to power last time promising a tribunal that would try the war criminals of 1971. However, following her accent, she kept dithering before it became impossible for her, because of persistent pressure from civil rights groups, to further delay the tribunal. Hasina understands that if the tribunal completes its duty and gets international recognition, it will effectively rob her of her most dependable election plank. The fact that her party came to power several times following independence and yet failed to try the war criminals, speaks volume about her commitment.
Naturally, her government flouted several norms while constituting the tribunal, attracting damning criticism from world bodies. The United Nations through its Special Rapporteur on extrajudicial, summary or arbitrary executions, Christof Heyns, expressed dismay at the trial and maintained: “Capital punishment may be imposed only following proceedings that give all possible safeguards to ensure a fair trial and due process, at least equal to those stipulated in the International Covenant on Civil and Political Rights, to which Bangladesh is a State party.”

Says, Mohammad Nakibur Rahman, a Bangladesh expert based with Tulane University, “Indeed The Economist recently uncovered collusion between the government-prosecution side of the trial and the judiciary. In addition, the unrelenting media campaign has meant that Shahbag protesters have made up their minds regarding the guilt of those in the dock, regardless of the evidence of a doctored trial.”

Others including the US Ambassador-at-Large for War Crimes, Stephen J Rapp, and Human Rights Watch expressed concerned over “glaring violations of fair trial standards”. The criticism has not only emboldened the accused, all of whom are members of either JI or the opposition Bangladesh National Party (BNP); but has also given them an excuse to say that they were victims of a political vendetta.

Even longtime supporters of the cause, for example journalist David Bergman, have criticised the entire process. “The government has unjustifiably prevented their international lawyers from coming to Bangladesh and assisting them in the court room. Also, even though the substantive matters of guilt and innocence are currently before for the tribunal, some of the most influential printed media continue to talk about the men as though they were guilty and their convictions a foregone conclusion. Moreover, on the other side of the coin, the possibilities of journalists here in Bangladesh being able to write critical commentary about the tribunal are decreasing. The attacks on Al Jazeera and myself are tantamount to that,” he maintained.

Experts also believe that Hasina's gambit might not find traction in the coming elections. Banning JI, although desirable, will only send the signal to the poor rural masses – where JI has its hold – that only family run parties like AL and BNP have a place in the democracy. Also, even if the party is banned, its members can always constitute a new party or merge with BNP.

Read more.....

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face

BBA Institute

Book Review : On Warne

noreply@blogger.com (IIPM) — Wed, 29 May 2013 05:08:00 +0000

Of googlies and flippers

His wasn’t a mere cricket career. It was a full-fledged saga, a non-stop media event, as exasperating as it was exhilarating. Shane Keith Warne has been the subject of many books already – at least 15 at last count. His spectacular achievements as a leg-spinner and spate of misdemeanours as a trouble-prone celebrity are well documented. Yet the two dramatic decades that he spent peddling his incredible wares on the world stage were far too heavily laden with both triumphs and controversies to be fully deconstructed in a single tome.

Veteran journalist Gideon Haigh gives it another shot and makes a fair fist of it. Looking at the life and times of the greatest spinner, if not bowler, of all times through a set of different prisms, On Warne comes up with a well-rounded portrait of a natural born champ who made the headlines around the cricketing world with his exploits both on the field and off it.

Based on interviews with Warne and his mentors and teammates conducted over the years and his own recollections of the bowler in action, Haigh provides perhaps the most illuminating account yet of a man bedevilled by contradictions and still completely taken up by the magic of his craft.

The web that Warne spun around batsmen sprang from simple methods. But the results they achieved were anything but. As he has claimed, cricket found him, and not the other way around. “He was taken in by the game,” Haigh writes, “as he floated through it because of a unique set of circumstances; and that embrace was an outcome not of success but of compound failure, in sport in general, and cricket in particular.”

From the making of the legend to the many follies of a life lived under constant scrutiny, replete with brushes with women, diet pills, career-threatening injuries, run-ins with Australian cricket bosses and even a bookmaker, the book tracks the entire Shane Warne story without pulling any punches. The result is a dossier that is as riveting as the master leggie’s magnificent accomplishments.

Warne’s career witnessed many highs and lows, but the unalloyed joy that he brought to the complex art of leg spin bowling remains unparalleled. He was a feared opponent, and not merely for the bag of tricks that he had up his sleeves, but also for the sheer swagger, born from a sense of superiority, that he brought to the contest.

“The essence of spin bowling is to tease and to goad, to incite batsmen to misjudge, overstep, overreach. Warne took it just a little further,” the author writes in the section ‘The Art of Warne’. “He presented the opponent with a narrative. I am better than you, he said; everybody knows this, but circumstances decree we go through the motions of proving the obvious.”

But there was nothing that was obvious in what Sri Lankan batsman Aravinda de Silva called Warne’s “honeytrap”. Haigh refers to Peter Roebuck once likening “young Australians playing English spin in the 1980s to schoolchildren accustomed to calculations suddenly being bombarded with mental arithmetic”. The author stretches that: “English batsmen trying to puzzle Warne out in the 1990s looked like children tackling calculus using their fingers.”

Haigh identifies four distinct stages in Warne’s evolution as a leg-spinner. In the time of Warne 1.0, the bowler “did not so much seem to get batsmen out as defeat them entirely”. He thrived on the novelty factor. This, Haigh writes, “was the ‘leg spin’ about which our elders told us these many years, and damn if it wasn’t just as perplexing as they’d always said”.

While there can be no end to fascinating analysis of the sheer impact of Warne’s bowling on befuddled batsmen, perhaps the most readable part of this book pertains to his relationship with four other ‘pivotal personalities of his era’ McGrath, MacGill, Waugh and Buchanan”.

Haigh devotes several pages to Warne’s fruitful partnership with McGrath. “For a decade, they were something like an incantation. Other countries had great elisions: Ambrozanwalsh, Donaldanpollock, Wasimanwaqar. But Warnanmagrah were the great conversation stopper. You looked up and down Australia and its opponent on any given day, and there often seemed not much to choose between them on paper. Then you came to Warnanmagrah. They played for Australia, and they were matchless.”

Read more......

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

BBA Management Education

'More cities should play in the league'

noreply@blogger.com (IIPM) — Tue, 28 May 2013 06:09:00 +0000

How much is HIL going to benefit Indian hockey in the long run?
It is one of the best things to have happened for Indian hockey. Never before have so many Indian players got the opportunity to play in so many matches for so long. So it is not only benefiting Indian hockey, it is also helping the players. I have seen all the matches. Almost all the matches were of high intensity and high voltage. So I feel it will boost the morale of the players, especially the youngsters.

Can you name youngsters who are doing well in HIL?
Though he is already playing for India, I am really impressed with the performance of Akash Deep. Among the older players, Gurbaj Singh and SV Sunil are playing well. I think there is a good mixture of young and older players in this league.

How do you assess the response of the fans?
The fans are coming to watch the matches. They are appreciating the close contests as well. I think this is just a beginning. In the future there will be huge change in the standard of this league. And that will provide a boost to the potential of the players as well.

Will the improvement impact India's showing in international tournaments?
As I have already said, we can see the change happening because Indian players have never played for such a long stretch with and against top foreign players like Jamie Dawyer, Moritz Fuertse, etc.
Can you tell us what the speciality of Delhi team is. They have done really well in the league?
For me the USP of the Delhi Waveriders is they gel together very well. Almost all the players, whether they are from India or abroad, are equally good. They are all virtually of the same standard. There shouldn't be a huge gap in the experience of two players. For example, in the Punjab team, a few of the players are not as experienced as Jamie Dawyer is, so how can you expect them to keep pace and perform well?

Would you like to see any changes being introduced in future editions of HIL?
I would like to see more teams based in different cities playing in the league. This would allow more hockey fans to see the matches in their own cities and that will generate more opportunity for the players as well.

Would you like to see WSH players being roped in for HIL?
Yes, there were so many good players in World Series Hockey. There were so many big names who played in WSH. They should be given an opportunity to play in this league as well. Every player nurtures the desire to perform well in his chosen sport and if there are quality players who turned out in WSH, why should they be barred from playing in HIL?

Read more.....

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face

BBA Institute

Movie review: Midnight's Children

noreply@blogger.com (IIPM) — Tue, 28 May 2013 05:06:00 +0000

A tryst with destiny

Pruning a 600 page book into a 130 page script is a challenging task in itself. Salman Rushdie took upon himself the task of betrothing his darling to the big screen and the results are all “acts of love.”

Deepa Mehta guides the film delicately through a path which initially moves majestically and later descends into a whirlwind of colours, crackers, characters and composites, showing India and her chosen children in a light which retains Rushdie’s elegant prose.

Beginning on the idyllic Dal lake in Kashmir, Saleem Sinai narrates how India and the lives of those like him, who were born on the stroke of midnight, on the eve of India’s independence were entangled and challenged. At the end of the film Saleem’s voice (narrated by Salman Rushdie himself) concedes that even though the promise was grander than the reality, they both survived and whatever they did were all acts of love.

What really draws your attention though is the sheer breadth of everything happening on the screen. Hopping from pre-independent India to post-independence Pakistan to the newly formed Bangladesh and back to India, twisting and turning through marriages, labour pains, childbirths, disownments, adoptions, magic, gritty reality, snakes, baskets, spices, sarees, colonial buildings, slums, politics, power and love; all tied by Rushdie’s steady narration, you will come out of the theatre feeling refreshed and bittersweet.

Read more....

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

BBA Management Education

Cannibalism in N Korea

noreply@blogger.com (IIPM) — Mon, 27 May 2013 06:47:00 +0000

Addressing starvation should be priority, not nuclear mission

In recent times, North Korea has been the most discussed topic among the newsmakers, more because of their new premier and its nuclear ambitions than improved economic status of its citizens. What has got swept under the carpet in the hype of nuclear testing and America's vindictive reprisal has been the shamefully pathetic state of Korea's social safety net. If the emergence of new leadership of Kim Jong-Un in 2012 and his prospect of economic liberalisation brought hope to the country, it has not translated into any visible inclusive growth measures. Shockingly, while Kim is seemingly busy with his lavish lifestyle and brinkmanship over nuclear tests, citizens are in the grasp of killing starvation because of severe food shortages.

Despite facing famines in past, the country has still not paid heed to social inclusion and social safety programs. The country had gone through an infamous famine (titled Arduous March) during 1994 to 1998 that reportedly took close to 3.5 million lives, but no potent policies were ever drafted to prevent its reoccurrence. The nation continued to ignore warnings from several global organisations. As per the FAO and the World Food Program, the country does not produce enough food to feed its 24 million people. A 2011 Crop Assessment Report highlighted that “3 million people would need outside food help in 2012.” Consequently, the World Food Program made a global appeal for $218 million in emergency food in 2011 but somehow it received only $85 million. Perhaps nothing could be as worrying as the latest reports of cannibalism. The Telegraph reported in May 2011 that defectors had given accounts of "executions of people who had either eaten or sold human flesh." Undercover reporters of Asia Press revealed in a report this week how in Chongdan county, a man "boiled his own child, ate his flesh and was arrested.” Another dug up his grandchild's corpse and ate it. News reports also confirm this week that another man was summarily executed after killing and eating his two children.

Surprisingly, the country has completely ignored (intentionally?) the issues of cannibalism and starvation and has termed these reports to be fabricated. North Korea has been overly vocal about US sanctions over its nuclear missile tests and Kim has vowed to take “substantial and high profile important state measures” to strike back against those sanctions. But not even an iota of that enthusiasm has been displayed for removing poverty and hunger!

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM Global Exposure
IIPM Best B School India
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Jealously green?

noreply@blogger.com (IIPM) — Mon, 27 May 2013 05:45:00 +0000

Is going green the need of the hour in the real estate industry? mona mehta reviews the plans of top builders and how technology is being leveraged by them

The commercial and residential sectors constitute the major markets for the real estate industry in India. These sectors also consume a lot of energy and contribute significantly to greenhouse gas emissions. As per an official draft (Modern Building Bylaws for Construction of Green Buildings) by the Town and Country Planning Organisation, Government of India, "In a typical residential building in India, approximately 60 per cent of the total electricity is consumed for lights, 32 per cent for air conditioning and 8 per cent for refrigeration." Considering this, it's a no-brainer that if investment were not an issue then there's no reason that any building should shy away from the green option.
Infrastructure investors like Kruti Jain, Director, Kumar Builders, whom we talk to, tell us that the concept of green buildings is yet to take off in a big way in India. The awareness of green buildings in India is largely found in the metro cities. Rural areas are yet to wake up to the green building concept. Compared to other Asian countries such as China, Singapore and Japan or Western countries such as the US and Canada, India probably stands at the bottom rung of the ladder. Having said that, the awareness about going green is slowly but steadily increasing.

Indian Green Building Council (IGBC) is one such institution attempting to support the growth of the green building philosophy. IGBC claims that there are 307 buildings in India "certified" as being true to that philosophy. It's quite clear that the numbers we're talking about are extremely miniscule, if not close to being non-existent when one considers the cumulative number of buildings in India. Yet, it's also clear that the glass could be seen as being half full, and the potential for Indian buildings going green be perceived as huge.

So how does one go, so to say, green? Rajat Malhotra, COO, Integrated Facilities Management (West Asia), Jones Lang LaSalle India, opines, “One obvious factor is awareness. The second most important factor is aligning Corporate Sustainability Goals with real estate selection. Green spaces not only allow for 14 to 16 per cent increase in productivity but also reduce the operational cost of the building, consume less energy, water and other resources, leading to offices which are more environmentally responsible and have a lower carbon footprint."

As far as the technological challenges for setting up green buildings go, Jackbastian K Nazareth, Group CEO, Puravankara Projects Ltd agrees that the initial investment is marginally higher (5-15 per cent) than a conventional building, but that differential is apparently diminishing – what used to be a 15 per cent in 2004/05, decreased to 8 per cent in 2010 and is now around 5 per cent. So cost is not really a huge concern. “What we need is greater awareness and adoption of green building practices in construction design,” he states.

The unique features of any green building project include solid waste management, rain water harvesting, irrigation technologies, waste segregation systems, and of course, solar energy. Also, many green building projects fail to factor in many intangible green building benefits (like improved indoor environment quality, improved productivity). These should be accounted for while formulating the cost and benefit analysis.

Will the Indian government over the next few years bring in any regulation that requires mandatory green certification of all buildings in India – something like they've done with products like air conditioners, refrigerators and others? Some believe that such a regulation is just around the corner. Not many know that through an Act passed by the Indian Parliament in 2001, the Bureau of Energy Efficiency, Government of India, was authorised to develop the Energy Conservation Building Code (ECBC). The code was subsequently developed and is functional under BEE, although it is in use only on a voluntary basis. There is no doubt that the future intentions of the government would be to make it mandatory for all buildings, as the 2001 Act was originally passed with the mandatory clause (and changed subsequently).

Notwithstanding the ECBC, there are certain top builders who believe that the process of constructing green buildings commences at the site selection and the design level itself. Reasons Boman Irani, Chairman and Managing Director, Rustomjee Developers, “The windows and the doors must be placed in the manner that they cut direct sunlight to reduce heat gain, while letting the rooms get enough air flow through cross ventilation. The site’s closeness to the public transport system too is reckoned, which helps in reducing the dependence on private vehicles that contribute to the carbon emission.” Apparently, post designing, construction material must be procured within the vicinity and must be compliant to the principles of re-use. Instead of bricks, fly-ash concrete blocks for building purposes should be used.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

BBA Management Education

Revolutionary slokas

noreply@blogger.com (IIPM) — Sat, 25 May 2013 05:48:00 +0000

Maoists in Bihar are mixing Leftist politics with social engagement to increase their mass base, reports Sanjay Upadhyay

On the freezing wintry night of December 27, 2012, a group of nearly 100 men, buried under swathes of quilt and thick winter-wear, gather at the diara or riverine area next to the swirling Baghmati in north Bihar.

In the dark expanse and quiet, save the noise of the river, Giddha in Sitamarhi district is not the kind of place you are likely to see anyone or anything except a congregation like this – a meeting of some of the top ranking Maoist radical leaders from north Bihar.

This place, considered a positive security hazard for most except this motley crowd present, can hardly be more suitably located, adjacent as it is to the Indo-Nepal border. To be sure, there is more than a hint of fraternal links across the invisible line between the two countries.

Welcome to the Shahid Mela or Martyr's Fair. This meeting is no cold-blooded plan of the radical Reds to rid the society of its class enemies through wanton violence, neither a Naxalite kangaroo court which delivers primordial justice to the land holder for his perceived excesses, all under the cover of darkness.

Instead it is a popular village fair which proposes to turn Mao Zedong on his head, a new paradigm as it were: power does not flow from the barrel of gun, as the great helmsman had once famously wrote, but through social reform, dialogue and raising issues in the most bourgeoisie democratic fashion possible.

It is by no means a lone view. Of the Maoists gathered here, there is an increasing consensus that non-violence will fetch them better results than all the blood shed in the world. This theme dominates their conversation and talks continue through the night until the first rays of sun break through.

Then, the scene is markedly different. In the sparkling sun, with pakoras and jalebis fresh out of the wok, the chattering of children and the queue for piping hot tea, it looks an unlikely place for nearly 50,000 odd revolutionaries to assemble for a political cause.

But then such are the persuasive powers of the influential Nari Mukti Morcha, the largest umbrella organisation of Maoists in north Bihar and the main organiser of the Martyr’s Fair.

At the fair itself – a much-publicised meeting for those who cared to know – arms and ammunition are the last thing on anyones’mind. Keeping social sensitivities in mind, it is what you would see at any village get together. There is the Meena Bazaar, which is enough to get the women folk chattering: bangles, colourful clothes, sindur and make up. The pattern follows itself; the nights dominated by classic left polemics and the day by the gaily coloured village stalls.

As a symbolic gesture towards changing a degenerate social order, a model marriage is solemnised between Amit, a resident of East Champaran and Sangeena. In what could be considered an extraordinary first, the slokas are recited hand in hand with revolutionary Maoist ballads. A cultural team from the Benaras Hindu University (BHU) is at hand to provide the musical score and it looks like the original fun place.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM Global Exposure
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The simmering danger

noreply@blogger.com (IIPM) — Fri, 24 May 2013 05:12:00 +0000

The year 2012 saw an outbreak of something that was unimaginable even a few years ago. Mayank Singh examines how frequent and violent conflicts between jawans and officers is a danger signal.

jawan killedThree proud units –16 Cavalry, 226 Field Artillery and 45 Cavalry – have seen openly violent conflicts between soldiers or Jawans and officers in recent times. The incidents predictably sent shock waves in the upper echelons of Army. Lieutenant General Vijay General Oberoi says, "Three incidents of collective indiscipline by jawans in the last few months reflect a breakdown in the traditionally close officer-man relationship and is a growing cause for concern... especially as all three incidents are related to combat units."

The rot runs deeper. Defence Minister A K Antony recently told Parliament that as many as 1,018 soldiers had committed suicide since 2003, with the yearly toll regularly climbing over 100. What adds to this problem is that incidents of fragging (to kill or wound a fellow soldier) have also become a regular phenomenon in the 1.13-million strong Indian Army.
Operating in a hostile counter-insurgency environment against a faceless enemy does lead to certain stress, but that is only one of the factors contributing to the growing disillusionment and disenchantment among jawans. Add to it the problems back home – land disputes, tensions within the family – rising aspirations, desire for better pay and allowances, falling standards of supervision from some officers, and a fatal concoction is ready. Stress levels are bound to zoom northwards. Company commanders who lead field units in counter-insurgency situations also believe that tensions at home become more immediate thanks to instant mobile communications.

Gen vk singhOne more common thread among soldiers from Rajasthan to UP, from Tamil Nadu to Haryana was how little respect they seem to command today in a society which devalues their work. Soldiers these days are better educated and consequently better aware of their rights. This, coupled with falling standards of supervision and control among some of the undeserving officers who have risen to command units, is becoming a major cause for worry. A report by the Defence Institute of Psychological Research had earlier held that "perceived humiliation and harassment at the hands of their superiors" – over and above occupational and familial causes – often serves as the final "trigger" for jawans in stress-related cases in the armed forces.

jawan According to Antony, more than 25,000 soldiers have opted for voluntary retirement in the past three years (10,315 in 2011, 7,249 in 2010 and 7,499 in 2009). He added that during the same period, more than 1,600 officers have either sought voluntary retirement or have resigned (this when the army is already reeling under a massive shortage of close to 12,000 officers). Besides, more than 1,000 jawans have committed suicide since 2003.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

BBA Management Education

PROF. JAMES L. HESKETT: HARVARD BUSINESS SCHOOL

noreply@blogger.com (IIPM) — Sat, 11 May 2013 04:47:00 +0000

“To T. S. Eliot’s prescient words ‘Where is the wisdom we have lost in knowledge? Where is the knowledge we have lost in information?’ we might now add, ‘Where is the information we have lost in data?’”
That’s Paul Nicholas’ (Director, Soul-Chaplain Consultancy) reaction after reading most of the responses to this month’s column. It’s not a bad “sense of the meeting,” in which many contributors offered suggestions to managers wishing to get the most out of so-called big data and avoid paying the price of paralysis in the process. The challenges Big Data pose for managers include “identifying which data are relevant” (Subrata Chakraborty, a retired professor of management) and “seeing through the woods to know what to use and what not” (Pieter J. de Beer, Senior Partner, De Beer & Keulder Legal Practitioners). Scott Waller (VP, M/A/R/C Research) expressed the fear that “the age of Big Data seems to be arriving at the time of death for the Big Thinker.” Gerald Nanninga (Founder, Planninga from Nanninga) cautioned us that “the big risk is that it gives executives a false sense of comfort.” Clifford Francis Baker (Chair, Neffel Corporation) added, “My concern is primarily focused on the possibility of complacency…data derived from data analytics must…be handled with care.” Mok Tuck Sung (Owner, Profit Tools) commented that “technology and knowledge advancement have again developed faster than the managers’ and business owners’ capabilities to leverage its usefulness in their decision making process.” Philippe Gouamba (Vice President – Human Resources, Skyline Windows, LLC) reminded us that “perfection is but an illusion… A successful outcome is almost never the result of perfect information.”

Among the suggestions for managers were these: 1. Help “data analysers consume and translate the data” (Scott Kemme, Senior Business Analyst, ClickFox, who also suggested an alternative title for the column, which I instead used above);
2. Know “what not to look at” (Phillip Clark of Clark & Associates);
3. Work to reduce turnover among business analysts who “tend to be lower level employees and have a high turnover,” creating a “losing battle” through the loss of “institutional data knowledge” (Kim Kraemer, Data Architect, USG Corporation);
4. Avoid the belief that “whatever is new will solve their problems,” concentrating on the appropriate application of Big Data (Seena Sharp, Executive Director, Sharp Market Intelligence);
5. Avoid allowing Big Data to remain the “purview of the select few” only for use for one-off and one-time decisions” (Jonathan Spier, Entrepreneur in Residence, Altos Ventures);
6. Maintain the attitude that “fast is better than perfect” (Mike Flanagan a Purchasing Manager by profession);
7. Avoid the temptation of harvesting just the “’low hanging fruit’ rather than waiting for the analysts to gain understanding (presumably of the decisions to be made)” (Sean O’Riordain of Trinity College, Dublin);
8. Rather than concentrating on the data, focus on “being able to formulate the right questions to ask at precisely the right moment” (Edward Hare, Retired Director – Strategy and Planning, Fortune 250 Manufacturer).
Tom Dolembo (Founder, New North Institute) drew a picture of direct process control in which decisions have to be made “in the flow” in situations where there isn’t time for conventional analysis (at least by humans). Is this a glimpse into the future of decision-making (without analysis paralysis) based on big data for a widening range of decisions or is it confined to a special set of conditions? Will access to Big Data further enable fact-based decision making or analysis paralysis?

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
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IIPM : The B-School with a Human Face

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Infosys My Experiment with entrepreneurship

noreply@blogger.com (IIPM) — Thu, 09 May 2013 05:29:00 +0000

There is nothing wrong in wanting to get richer. But there are many ways to get richer, and entrepreneurs must be able to choose the right one

For most people who are looking to take the entrepreneurial plunge, one of the greatest inhibitions is the loss of security that a job provides. Even in my personal case, it was not how I had planned things initially. I grew up in a middle class Kannada Madhava Brahman family, and the most critical learning that I imbibed from my family and environment was the uncompromising focus on education and respect; a learning that I have retained throughout my life.

My journey into entrepreneurship started out very differently, and a couple of defining moments come to mind. The first defining moment was a meeting with a famous American computer scientist when I was a graduate in Control Theory at IIT. He talked to me at length on the future of computer science; and his conviction and subject knowledge were so profound that I was hooked to the field for life. The second defining moment happened during my trip to Europe. It happened in the Sofia Express, in which I was travelling on my way to India. My co-passengers were a girl and a boy. I started a discussion with the young girl in French, who talked about the perils of life in an iron curtain country. To our astonishment, a few policemen came and arrested both of us, which, I believe, was because the young man had complained that we were perhaps criticising Bulgaria’s Communist government. They confiscated my belongings and dragged me along the platform into a small 8x8 foot room with a cold stone floor and a hole in a corner as a toilet. I was made to stay there without food and water for 72 hours. Even after I was taken out, I was taken to Istanbul on a departing freight train, again without food and water, before finally being released; because I was “from a friendly country called India”, as per one of the guards. During the entire journey to Istanbul, I seriously rethought my views on communism. While I was quite a bit of a Leftist in my thought process earlier in life, my experiences in Europe started convincing me otherwise. Subsequently, over the coming years, I became more and more convinced that rather than communism, it was capitalism – and in essence the entrepreneurial spirit – that was the best way for countries like India to get rid of poverty. You can say that Infosys, in essence, was an experiment for me in entrepreneurship.

My first venture was Softronics, which only lasted for a year and a half (after which I joined Patni). I realised a few key lessons. Firstly, when you become an entrepreneur, the market has to be ready for your idea. The Indian market was certainly not ready, which is why with Infosys, I decided that we will explore the global market. Secondly, I learnt that it is important to have a team that has a common and enduring value system and the strengths of team members must be complementary and mutually exclusive. Again, these lessons came in handy when I set up Infosys. The idea of starting another software company started brewing in my mind when I was working as a lead engineer in Patni Computer Systems. I wanted to, as my upbringing had taught me, build a company that would earn the highest level of respect.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

BBA Management Education

Affordable housing – a myth or reality?

noreply@blogger.com (IIPM) — Wed, 08 May 2013 05:25:00 +0000

While the concept of affordable housing is expected to be the real rescuer of Indian real estate sector in 2013 and beyond, its execution still remains a big challenge due to unclear policy framework. Is there a way out?

The year 2011 proved to be a relatively difficult year for Indian real estate market with both developers and potential buyers reeling under adverse macro-economic conditions. Industry suffered at the hands of stubborn inflation, falling demand and precariously rising interest rates. However, the silver lining was the increased private equity (PE) activity in Indian real estate during the year even as banks looked to limit their exposure to the sector. The cash crunch in the sector saw PE players make a beeline for realty companies, and investments by PE funds grew by a huge 69% during the year, according to research firm Venture Intelligence. In a manner, Indian real estate was rescued from a complete washout year thanks to hefty arrivals of PE players in a depressed market.

But as the Indian real estate industry entered 2012, it had already seen PE exits worth $3.2 billion (cumulative figure for three years ending December 31, 2011) and was expecting PE exits of about $1 billion during the year. Thus, the slowdown of PE activity in the sector, which was already reeling under high debts, had left real estate developers with even lesser reasons to smile (B&E’s cover story on ‘The Dark Side of PE in India’s real estate’ for the issue dated April 24, 2011 had highlighted this very fact; that PE with its focus on short term gains was actually a poison for the realty sector in India). Now, the question was: How will the sector retain its momentum, however slow, in 2012 and beyond? For industry experts and realty pundits the solution to this problem lied in the “affordable housing” segment, which they said, would define the real growth paradigm for Indian realty going forward.

After all, whatever the definition of affordable housing, no one disputes that there is a huge shortage in this segment. According to Ministry of Housing and Urban Poverty Alleviation (MHUPA), the shortage of urban housing in India at the end of the 10th Five-Year Plan (2002-2007) was around 27.1 million dwellings to serve 66.3 million households. 88% of this shortage was estimated to be in the economically weaker section - households with monthly per capita expenditure of up to Rs.3,300. The income group with monthly per capita expenditure of Rs.3,301 to Rs.7,300 accounted for 11% of the shortage. Even during the 11th Five-Year Plan, MHUPA estimated that the total housing requirement in Indian cities, including backlog, by end-2012 will be to the tune of 26.53 million dwelling units to serve 75.01 million households. If the current increase in backlog of housing is maintained, a minimum of 30 million additional houses will be required by 2020. If this is the size of demand at this price point, what’s holding back affordable housing in India?

30 million units is surely a big number and as such every real estate developer wanted a piece of it. Come today and the sheen seems to be wearing off. A case in point is DLF, the country’s biggest real estate developer. In 2009, DLF announced that it would build 100,000 flats in the under Rs.20 lakh per unit category across major cities. However, in a recent interview with a business daily, Rajeev Talwar, Executive Director, DLF, said that “In 2009, there was a downturn in global economy… but now prices have gone up and it does not make business sense to launch such projects. Such projects can be done in tier-III and tier-IV towns, but they are not viable anymore.”

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM Global Exposure
IIPM Best B School India
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IIPM : The B-School with a Human Face

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INTERNATIONAL FINANCE

noreply@blogger.com (IIPM) — Tue, 07 May 2013 11:06:00 +0000

With President Obama’s re-election, the countdown begins for lawmakers to address the 2013 fiscal cliff and the Treasury’s statutory debt limit. But unless the President and House Republicans agree to change the current law, these crises cannot be resolved.

The other option is that Obama could decide to avoid the fiscal cliff altogether and extend current policy so that there will be no changes to taxes and spending in 2013. The US economy would improve next year as a result, but there would be no progress toward fiscal sustainability. This would force credit ratings agencies to downgrade US Treasury debt, the way Standard & Poor’s (S&P’s) downgraded the government’s credit rating on long-term securities one notch from the highest level of AAA to AA+ in 2011 (It was the first ever downgrade of US government debt). No doubt, S&P’s downgrade of the nation’s credit rating last summer had little material effect on financial markets, but that would not be the case if all the ratings agencies acted together. Further, the move would help the economy in 2013 but would significantly weaken both the fiscal and economic outlooks over the longer term. Running this scenario through the Moody’s Analytics model shows real GDP expanding 3.8% in 2013, but growing about half a percentage point lower per year over the subsequent decade.

Adding to the economic threat posed by the fiscal cliff is the approaching Treasury debt ceiling. The law currently caps federal debt at $16.394 trillion. Based on recent government expenditures and receipts, the Treasury will near that limit late this year and be forced to use extraordinary accounting techniques to avoid crossing it. However, the Treasury can only do this for so long, and by early March the Obama administration will be forced to make some difficult decisions.

While, in the short term, Obama will have to make the required adjustment in the debt ceiling, but, in the long run, the drive to fiscal sustainability needs to be powered by spending cuts rather than balanced between cuts and tax increases. In addition to freezing discretionary spending, the focus should be on putting Social Security on solid financial ground, forever. “This can be accomplished by indexing the retirement age to longevity, reducing benefits for very high income households and increasing future benefits on a more accurate measure of inflation,” says Mark Zandi, the US based Chief Economist at Moody’s Analytics. As far as taxes are concerned, the focus should be on reducing exclusions, exemptions, deductions and credits that riddle the tax code and are costing the Fed more than $1 trillion each year.

One move that perhaps can also solve the problem is the implementation of a nationwide value-added tax (VAT). In fact, B&E has suggested this option at several occasions, most recent being in March 2011 (Read: Can He Read The Writing on The Wall? Published in B&E issue dated March 31, 2011), just a few weeks before the US federal debt limit was raised to $16.394 trillion. As VAT has a broad base, it could generate enough revenue to deflate the ballooning deficit while simplifying the tax code. Considering that US consumer spending totals some $10 trillion annually, or about 70% of GDP, VAT has the potential to generate big bucks for Uncle Sam. In fact, a Congressional Research Service report suggests that each 1% of VAT has the potential to generate $50 billion. Thus, even if it’s started at a low level, say 5-10%, it can generate big money.

While all of this is doable, it won’t be easy. Not until the President and House Republicans agree to change the current law. And without an agreement on federal fiscal policy, the economy will be in recession by spring. Agreed that threat is expected to spur lawmakers to act, but not before some economic damage is done, we would say!

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM Global Exposure
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Same old land issue. same old dilemma.

noreply@blogger.com (IIPM) — Mon, 06 May 2013 05:04:00 +0000

Even after much delay over a controversial bill on land acquisitions, the same questions over the extent of required consent and the scope for resettlement and rehabilitation continue to obstruct the creation of a sound law

The latest intervention of Congress President Sonia Gandhi in the long-pending legislation on land acquisitions has made things uncomfortable for Jairam Ramesh, the Union Minister of Rural Development. A land acquisition bill (rechristened as The Right to Fair Compensation, Resettlement, Rehabilitation and Transparency in Land Acquisition Bill), was recently approved by the Union Cabinet after several rounds of discussions by a Group of Ministers (GoM). The bill has been touted as UPA’s key answer to address investor sentiment and simultaneously address the ongoing conflicts over land across the nation. However, Sonia Gandhi’s reservations and the concerns raised by activists over certain provisions in the bill could cause more delay in the new law being passed.

Earlier this month, Ramesh had managed to avert what could have resulted in a major problem for the government. On October 2, thousands of landless farmers began a foot march from Gwalior to New Delhi demanding land for the landless and shelter for the homeless. The march under the aegis of Ekta Parishad, an NGO, that undertook a first of its kind movement in recent times, was set to culminate in New Delhi by the end of October. However, ten days into the march, Ramesh managed to disperse the movement after he signed a 10-point agreement with the leader of the movement P. V. Rajagopal.

Addressing a gathering of around 20,000 people at Agra’s COD grounds, Ramesh said that a task force in consultation with the state governments and the civil society will try to draft a policy that would ensure agricultural land and homestead rights for the landless and the homeless respectively. “The Centre cannot run away from the political responsibility of bringing about land reforms, but you should continue to put pressure on the state governments,” he said, claiming the Constitution of India has given the responsibility of deciding on land-related matters to state governments.

With the Cabinet having given its nod to the bill, the government is set to introduce it in the Parliament in the coming session.

On October 16, 2012, the GoM headed by Sharad Pawar finalised the draft, that laid down the condition that even if 2/3rd landowners gave their consent to sell their land, the government could acquire it for private projects and public-private-partnership (PPP) initiatives. Interestingly, two days after the draft details were made public, the Congress President made headlines for recommending to the PMO that the number should be necessarily raised to 80%. Only in case of acquisition for PPP projects could the threshold be diluted to 67%, if the ownership of the land remained with the government. The earlier draft of the bill did have this provision, but was later tweaked after certain ministries expressed dissent over it. Sources from the government tell B&E that the land bill is now expected to undergo some changes on the percentage of landowners’ consent, at the insistence of the UPA Chairperson.

The Land Acquisition and Rehabilitation and Resettlement Bill (LARR Bill), 2011 was tabled in the Parliament in September last year. It was referred to a Parliamentary Standing Committee which submitted its recommendations eight months later (May 2012). But due to differences within the government, PM Manmohan Singh constituted a GoM a month ago to decide on the final draft.

Read more....

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face

BBA Institute

Why The Numbers Are Stacked Against The Congress in 2014

noreply@blogger.com (IIPM) — Sat, 04 May 2013 04:50:00 +0000

It’s an old cliché no doubt, but elections often are about numbers, mathematics and cold calculations. Yes, charisma, ideology, policies and campaigning strategy do matter. But at the end of the day, it really boils down to numbers. That is the reason why the Republican challenger Mitt Romney looks all set to lose badly to Barack Obama on November 6 when Americans vote for a new President. He is losing despite the terrible economic situation in the United States since Obama took over in January 2009. Obama should have lost, but it is numbers that are working for him. Republican ideology, particularly the hard line attitude of the faithful, has alienated huge chunks of voters. Women, students, blacks and Hispanics are overwhelmingly against Republicans and will vote for Obama. The number of these groups of voters will surely outnumber the angry white voters who will vote for Romney.

Of course India is vastly different from US. And of course, elections are still – at least officially – far away in 2014. But even at this early a stage, it is easy to see why the numbers appear stacked against the Congress in 2014. And that is the reason why Sonia Gandhi and her advisors and strategists are a worried lot. I am not talking just about the impact of the serial scams like Commonwealth Games, 2G, airport privatisation, Coalgate and the latest irrigation scam in Maharashtra. I am not talking just about the venomous bite of inflation that is destroying household budgets. I am not talking just about the manner in which Prime Minister Dr. Manmohan Singh has become the butt of jokes and cruel humour despite the recent and futile efforts of some sections of the media to portray him as a decisive leader. I am not talking just about the damage that reluctant allies like Mulayam Yadav, Mayawati, Sharad Pawar and Karunanidhi will inflict during the run up to 2014 even as they prop up the tottering UPA regime. All these things will have an impact on Congress’ fortunes in 2014. No doubt about that. But it is the curse of cold, hard numbers that could have a more dangerous impact.

Before we get into the analysis of the cold, hard numbers, let us first take a cold, hard look at the factors that led to the triumph of the Congress and the UPA in 2009. Everybody talks about how the jholawallah advisors of Sonia Gandhi who comprise the National Advisory Council crafted the Congress victory of 2009 by coming up with schemes like NREGA. Then there was the Rs.600 billion farm loan waiver announced in 2009. If you believe these played a decisive role in 2009, you are misinformed and wrong. Overwhelmingly rural states – where you would expect to find grateful beneficiaries of NREGA and farm loan amnesties – like Odisha, Chattisgarh, Bihar, Jharkhand and Madhya Pradesh did not give a lot of seats to the Congress. Including Uttar Pradesh, the Congress managed just 46 out of 195 seats from these states in 2009. In fact, the Congress and the UPA did amazingly well in urban constituencies in 2009. It won 13 out of the 13 Lok Sabha seats on offer in Delhi and Mumbai. That performance was last seen perhaps in 1984 when Rajiv Gandhi swept India in the aftermath of the assassination of Indira Gandhi. So fact number one is that Congress did fabulously in urban centers.

Fact number two is the massive vote against the Left in West Bengal and Kerala that gave Congress and the UPA 39 out of 62 seats in 2009 in these two states. Fact number three is the strong alliances that gave a lot of seats to the UPA in 2009. In West Bengal, Tamil Nadu, Kerala and Maharashtra, the Congress and the UPA managed to win a massive 98 out of 159 seats in 2009. And who can forget fact number four – YSR Reddy who, along with the Majlis-e-Ittehadul Muslimeen (MIM), gave the Congress a spectacular 34 out of 42 seats in Andhra. In 2009, YSR was clearly the incumbent hero who simply swept aside all opposition despite loud whispers of numerous scams and instances of crony capitalism. The last factor is the suicidal behaviour of the BJP that gave the Congress 20 out of 25 seats in Rajasthan in 2009.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

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“Increased costs will be passed on to consumers”

noreply@blogger.com (IIPM) — Fri, 03 May 2013 05:14:00 +0000

Rajan Mathews, Director General, COAI, laments that the recent slew of policy decisions is extremely debilitating for an already struggling industry.

B&E: It is being put forward that the incumbents already have enough spectrum and may not bid at all. Won’t this encourage monopoly in the hands of a single operator?
Rajan Matthews (RM): It is not true. In fact, the scarcity of spectrum is affecting roll-out obligations and the Quality of Service of the operators. Being the 2nd largest telecom market in the world, it is actually ironic that average spectrum availability with Indian operators is significantly lower than in other leading markets in the world. Most operators who have been in the market for some time now have a fairly large subscriber base, which needs to be catered to with appropriate Quality of Service and outreach. Lack of spectrum leads to dearth in capacity for serving subscribers and further roll-outs into rural, semi-urban and urban areas; and leads to a substantial rise on the OPEX. In fact, if the operators did not require more spectrum, there would not have been so many representations made by them to the government regarding the high reserve price being set for the auction. The only reason for operators to shy away from the auction would be the exorbitantly high reserve prices that threaten sustainability.

B&E: What are your thoughts on refarming of spectrum against the high prices that have been set?
RM: The entire restructuring of an efficient network, by ripping off the existing infrastructure, disconnecting the connected and then deploying an infrastructure, which is more demanding both in terms of capital as well as space and construction, does not bring any sense of benefit to our minds, whether to the industry, or the consumers.

As per an independent study conducted by Analysis Mason, operators with 900 MHz band will need to replace 286,590 base stations and install an additional 171,954 base stations to provide equivalent coverage on 1800 MHz; which will lead to an incremental capex of Rs.54,739 crores, and incremental annual opex of Rs.11,762 crores. Also, operators will have to write-off existing 900MHz assets at an estimated cost of Rs.22,310 crores. At an industry level, additional capex of about INR 26,653 crores will be needed to deploy new towers to support incremental base stations.

In the scenario that operators with 900MHz spectrum are unable to provide equivalent coverage due to business case and operational feasibility, there is a risk of reduction in geographic coverage by as much as 40%. This is estimated to directly affect connectivity to about 70 million subscribers, and consumers trying to reach them. Also, the business case for a new operator acquiring 900MHz spectrum at the proposed prices will not allow for expansion to rural markets. If incremental investment in refarming and the costs of spectrum are passed on to consumers in the form of higher retail voice tariffs, overall tariffs will go up by as much as 64 paise/minute, with much higher impact in non-metro circles.

B&E: What’s the expected impact on the already high D/E ratio?
RM: It is extremely unfortunate that a slew of policy decisions such as auction of spectrum, one-time fee, refarming etc. are being imposed on the industry when it was already grappling with business viability and sustainability. Such decisions have further increased the financial burden on operators, leaving no scope to absorb the increased costs. It has been brought to the notice of the Government and the ministry that India has one of the lowest EBITDA margins of 29% among emerging Asian economies (36% on an average). Several operators report negative PATs and will not be able to cash break-even in next 5-7 years. Similarly, most operators report a negative or low return on capital employed. Hence, these increased costs will eventually be borne by consumers in the form of higher tariffs for the services.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

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Zuck, buy-back your shares!

noreply@blogger.com (IIPM) — Wed, 01 May 2013 11:16:00 +0000

Facebook shares are trading at less than 50% of their IPO value, and the street seems to have just about given up on the IPO. While Zuckerberg made some money by selling his stock initially, he can make a bigger killing by buying back Facebook’s shares from the market at the current dismally low prices

Facebook is still a success story, but the gross underperformance of its shares post the much hyped IPO has certainly raised some eyebrows. Investor concerns seem to override their enthusiasm for the world’s most popular social network. Facebook, which was initially valued at $100 billion commands a far humbler m-cap of $41.03 billion as on August 27. The share stood at $19.15 on this day compared to the launch price of $41.

Investors are worried about the sustainability of social networking companies. The revenue tap is still not in the best of health with brands unsure about how to leverage these sites. A recent research by O&M and Ipsos covering 153 executives across A-PAC highlights that 66% of executives polled considered social networking sites to be great for buzz building (just 20% in India). However, only 2.6% considered them great for brand building. Facebook, which reported a loss of $743 million for Q2, 2012, has to really look for ways to change perceptions on that front. Co-founder Dustin Moskovitz sold 450,000 Class A shares in three days. Three top executives – Director of Platform Partnerships Ethan Beard, Director of Platform Marketing, Katie Mitic and Mobile Platform Marketing Manager Jonathan Matus have announced their resignations; indicating a major crisis of confidence across the board.

Although, Mark has made a lot of money with the IPO (he sold 30.2 million shares at $37.58 per share in May 2012), his wealth has shrunk drastically. Considering he owns around 503.6 million shares as per estimates (including stock options), his net worth as on September 4, 2012 stands at ‘just’ $9.64 billion. But he also has a great chance to make more money by buying back shares at the current prices, especially if he is certain of the company returning to its promised aura. This will also enable him to retain his vice-like grip over Facebook. To top it all, by betting on Facebook again, he could lead from the front and demonstrate his confidence in the company he founded.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

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Professor Arindam Chaudhuri – A Man For The Society….
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Reflections on a changing China

noreply@blogger.com (IIPM) — Tue, 30 Apr 2013 07:34:00 +0000

Arthur C. Wheaton, Director, Western NY Labor & Environmental Programs and Faculty of Industrial Relations at Cornell University’s School of Industrial & Labour Relations, after spending more than two weeks in cities across China, writes on the country’s evolving economic and social environment

In June, I boarded an Air Canada flight from Toronto (Canada) to Beijing International Airport with my Chinese-born wife and our nine year-old daughter. Designed to help teach our daughter about Chinese culture and to improve her Mandarin language skills, the trip was our first to mainland China in eight years.

We were fortunate to be able to visit some of the same families and places that were part of our first trip. The contrast between then and now in lifestyle and other trends was astonishing. On both trips, I filtered much of what I saw through my lens as an automotive industry specialist for Cornell University’s ILR School. Cars are a reflection of what has shifted in many elements of Chinese life and I will report here on some of the changes.

First, it is impossible to summarise China’s economic and social conditions. With more than 1.3 billion people living in China, there are too many perspectives to consider for a short answer. Statistics and data on China’s economy are available from sources. What is unclear is how accurately those numbers reflect the reality of the people living there. The statistics and economic data tend to focus only on the highly developed regions of China and might not apply to all of China.

According to Helen Wang, author of The Chinese Dream: The Rise of the World’s Largest Middle Class..., there are more than 300 million Chinese who are considered middle class. That is nearly the population of the entire United States. The middle class has a growing discretionary income and a growing force in the Chinese economy. A lot of Chinese, especially young women consumers, are smitten with luxury brands. They associate Western luxury brands with quality of life and sophistication. They want restaurant meals, health club memberships and travel. They want to see the world. The restaurant business and malls are therefore doing very well in the country.

I can confirm from my own experiences that the love of quality and luxury goods described by Helen Wang is accurate. Thanks to insights from friends on this trip, I hope to provide to B&E’s readers a few glimpses of the economic and social conditions of China today. Our friends either live or work in Beijing, Xi’an, Shenyang, Shanghai, Shenzhen, Lanzhou or Zhengzhou. Their are into banking, retail, stock trading, financial management, teaching or are military officers and government officials in China.

The changes in the economic and social statuses of the families in the eight years since my first visit are marked. All the families could be described as middle class to upper middle class. When I met these families in 2004, only one owned a car. The rest relied on public transportation, bicycles, taxis and friends. Today, all of them do.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

Death to the life giver?

noreply@blogger.com (IIPM) — Sat, 27 Apr 2013 10:33:00 +0000

The unregulated surrogacy industry is leading to the exploitation of several poor women

Sample this: An industry worth $500 million in 2002 stands as a $2.3 billion industry in 2012. An industry serving its clients with only 350 odd centres in 2002 has grown and crossed the mark of 1000 plus centres. And in spite of this impressive trend, this particular industry still remains highly unorganised and unregulated, and its growth has actually led us towards serious social issues. Welcome to the surrogacy industry of India!

Surrogacy generally refers to the carrying and delivering of another couple’s child by a woman. It’s a solution for couples where the female partner is not able to carry the child for whatever reason. India has become one of the most preferred fertility tourism destinations across the globe, and has become a ‘baby factory’ of sorts with respect to IVF and surrogate births due to long waiting times in other developed nations owing to various reasons, including shortage of eggs and sperm, lack of donor anonymity, overregulation, high costs and poor experiences of treatment.

Surrogacy hasn’t enjoyed legal sanction in a number of countries. Several developed countries such as Japan, France, Italy and UK have even banned or restricted, in one form or the other, commercial surrogacy, where the carrying woman gets paid for being the surrogate mother. Surrogacy is illegal in several states of America too. The legal issues coupled with the high prices of commercial surrogacy have made it quite expensive (with rates as high as $30,000) around the world, while Indian clinics, which are often running without government regulation (which helps them to also avoid heavy taxation) offer their services for one tenth of the costs internationally.

A decade back, the Indian government’s earnest efforts to promote medical tourism provided an unprecedented boost to surrogacy. Ironically, India made commercial surrogacy legal back then, but there are no laws yet that protect the rights of surrogate mothers. The recent death of surrogate Premila Vaghela, who was eight months pregnant, has brought to light the paucities in the guidelines governing the industry in India.

Not surprisingly, the growth has also led to exploitation of many poor women who were willing to lend their wombs to feed their families. The Indian Council for Medical research (ICMR) has tried to regulate commercial surrogacy since 2005, but guidelines issued by ICMR are not legally binding and are ambiguous on various issues like the surrogate’s rights, issues of informed consent and adoption requirements. The Assisted Reproductive Technologies Regulation Bill 2010, which is an updated and improved version of the ICMR guidelines, is still pending with the government and has not yet been even presented to the Parliament.

Although several doctors and clinics have claimed that they strictly follow the guidelines provided by ICMR and properly compensate surrogate mothers, the reality is starkly different. In some studies, it has been shown that there have been cases of even minor girls taking up this option due to the lure of quick money!

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

“A lot of our key people have come back from Bolivia”

noreply@blogger.com (IIPM) — Thu, 25 Apr 2013 11:23:00 +0000

Sushil Maroo, Group CFO, Jindal Steel and Power Ltd. discusses raw material prices as well as the situation with the Bolivia project

B&E: You have a planned capex of around Rs.80 billion for FY ‘13. How are you planning to spend this money?
SM: We are planning to divide this money almost equally for our steel and power businesses. We have major expansion plans going on in both businesses. We are setting up a DRI-based plant in Orissa, which will have an annual capacity of 2.5 million tonnes. Our pellet mill is about to be commissioned. We are also setting up six power plants of 135 megawatts each. Two of them are already commissioned and work is going on in the remaining four. Apart from this, we are also working on a 2400 MW power plant for Jindal Power Ltd. in Raigarh. We have already acquired land for these projects. Therefore, expenditure on land is all for future purposes. So, all the expenses that I have just talked about are basically towards acquiring the necessary equipment and infrastructure.

B&E: International prices of coking coal have gone down significantly in the last 2-3 quarters. Do you think that the industry is set to gain from this in the long term?
SM: The Chinese steel industry is growing at an aggressive pace. Since they are consuming a lot of coking coal, there is a sustainable demand for it. Coking coal prices were down for a while. But from $145, they are again touching a level of $200. There are only two major consumers of coking coal – India and China. Production is not rising rapidly in India. So, it depends on the pace of production in China. If they continue to go this way, coking coal prices will not remain down in the long run. To add to the worries of Indian producers, the rupee has depreciated significantly. So, we are also incurring a notional foreign exchange loss. For JSPL, 100% requirement of coking coal is fulfilled through imports. Our current requirement for coking coal is about 1.3 million tonnes, which is further increasing as we are undertaking expansion plans.

B&E: You have been trying to tap one of the largest iron ore resources in the world in Bolivia. There have been a lot of issues there. What do you think are the most important lessons from this experience, which you or any other steel company can keep note of when negotiating with a foreign government?
SM: We were looking at Bolivia because there was iron ore as well as natural gas promised to us by the Bolivian government, when the MoU was signed back in 2007. But till date, the government has not been able to provide us with the gas as the contract is yet to be signed. We are not sure about what is going to happen there. The detailed contract should have been finalized by now. We cannot wait till eternity for the Bolivian government to come out with a solution. The situation led to a dispute and encashment of two bank guarantees by the government. The lesson is that when you are negotiating with foreign authorities, you must be commercially and contractually very clear. Whatever you want from the government, you should try to get it upfront on the table, otherwise the situation can get very tough. The gas supply contract, which was not signed in 2007, became a problem in 2012. The second lesson is that you must have enough space for the arbitration clauses if you are going for signing an international contract so that your rights are not affected if there is any sudden change in the circumstances.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

20 years of change after Rajiv Gandhi

noreply@blogger.com (IIPM) — Wed, 24 Apr 2013 10:47:00 +0000

Known as one of the brightest stars in Indian politics, Rajiv Gandhi’s assassination shook up the foundation of the Congress party. A documentation of how his death reversed fortunes of the party, and dramatically altered the Indian political scenario...

Twenty one years ago on May 21, 1991, a bomb explosion killed Rajiv Gandhi, while he was campaigning for the Congress party in Sriperumbudur, about 40 km from Chennai, on the second day of the 10th Lok Sabha elections. [Rajiv who had served as the PM of India between 1984-89 (at the age of 40 – he was the youngest ever PM of India) is till this day regarded as perhaps the most charismatic figure that ever took the stage of Indian politics.] The sudden, premature demise of Rajiv not only shocked the world, it also marked an end of an era that saw India being led by the Nehru-Gandhi dynasty for all but five years since independence.

Though nobody took immediate responsibility, the attack was blamed on Rajiv’s arch enemies, the LTTE, that was fighting for a separate homeland for the Tamils in Lanka. Rajiv could not contain the political problems afflicting India, and found refuge in international entanglements and commitments. He committed the so-called Indian Peace Keeping Force (IPKF) to Lanka in July 1987 in an endeavour to help the government there to eradicate militants agitating for a separate Tamil homeland. [The IPKF had to be withdrawn in 32 months.] His period in office was marred by scandals and allegations of corruption on so huge a scale that he undoubtedly lost the election of 1989 partly on account of public perception. The Congress suffered an electoral defeat. His successor, V. P. Singh, could not hold office for long, and Rajiv started campaigning in earnest in 1991. But then, his assassination put an end to his half-finished political career.

Most people remember Rajiv as a visionary who encouraged foreign investment, a freer economy and rejuvenated his own party. “People had sympathy for Rajiv. He was not aware of the problems of the people at the grassroots level. However, he was a very dynamic person,” recalls Mohan Dharia, a former Union Minister who had served in the Indira Gandhi cabinet, but resigned on his differences with her ideologies. He remembers Rajiv as someone who wanted to modernise India.

When US denied to give India the technology of supercomputing, it was Rajiv who encouraged the creation of the indigenous Param Super Computers. Agrees Dr. M. P. Narayanan, former Chairman of Coal India (1988-91), who says that with the demise of Rajiv, India not only lost a visionary, but a receptive and encouraging human being. “His leadership style was such that would even allow mid-level officers to walk up to him and he would listen to their ideas. I wonder if subsequent PMs have ever found time for that,” he says.

Rajiv’s vision for India was that of a modern nation that takes full advantage of technology. We’re living his vision today. Says political observer Suvrokamal Dutta, “Many people believe that it was Narasimha Rao that initiated the globalisation process. However, it was Rajiv who created the ground for that process. He was also working on various missile treaties with Western countries.” Rajiv’s other revolutionary move was to lower the voting age to 18 from 21 years in India. Having said thus, it is important to note that Rajiv’s political career also became mired with allegations and scandals. The Bofors scandal is an unsettled blot on his otherwise glorious career. It cost him three-quarters of his MPs.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles