Showing posts with label IIPM BEST MBA. Show all posts
Showing posts with label IIPM BEST MBA. Show all posts

Saturday, September 08, 2012

For the win!

This one, to the mother of all Blah-Blah forums: Twitter! The microblogging service that reminded us of brevity being the soul of wit, with its 140-character limit on messages, is where you get to witness ‘change’, in real time. Recently Twitter got itself a new CEO, Dick Costolo, and even primped up its interface to make for a richer media experience. #CheckItOut!


Source : IIPM Editorial, 2012.
For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face

Friday, August 31, 2012

IT IS NOW FOOLISH TO COMPARE INDIA TO CHINA. RATHER, IT WOULD BE MORE SENSIBLE TO LEARN A LESSON OR TWO FROM THE CHINESE!

 Recently, in terms of Gross Domestic Product (GDP), China toppled Japan to secure the second position globally, after US. In fact, China was very close to achieving this feat the last year itself, but fell short at the last moment. As per reports, if China keeps growing at its current pace, then by 2025, it should topple the US to become the largest economy of the world. Who could have imagined that an economy, which was languishing till about three decades back, has put itself in such formidable position? What is even more amazing is the fact that at a point in time when the world economy is still recovering from the global recession, China kept on growing. The growth has been such that in 2005, it first overtook Britain and France; then in 2007, it surpassed Germany to secure the position of the third largest economy of the world. It is not that the growth did not bring in iniquitous distribution of wealth; but then, at the same time, China has managed to pull out a staggering 600 million people out of poverty – a record which no other country has achieved so far.

Going by media reports, it doesn’t seem that many experts are appreciative of the Chinese growth. In fact even now, most in the developed world still cannot fathom the fact that China can be a serious contender in the new economic order. Much of this is owing to the fact that irrespective of its number 2 position, China still remains a developing country, as its current per capita is still 10 times lesser of that of Japan. But then, what most miss out on is the fact that China is in no hurry to prove itself. China has moved step by step in terms of consolidating its position. They have never bothered about the criticisms that they faced on humanitarian issues, or the kind of global cynicism that they faced by keeping their currency purposefully undervalued. Their objective has been very clear – which gets reflected in the manner in which they have planned every step. From the very beginning, China has been extremely scientific and systematic in its approach. And more than that, the growth has come out of great sacrifice collectively made by the Chinese citizens. China has systematically moved people into manufacturing and today China manufactures almost half of the global produce. Thus today, a Walmart retains the topmost position in the Fortune list by selling goods that are being made in China. And all this has not come in a day. It has been an outcome of years of planning. China today boasts of an investment which is a mind numbing 40% of GDP! Even at its peak, the US managed around 18%. Even countries like ours are managing 18%. Additionally, the Chinese investment mobilization has been far more prudent than any other country’s efforts. They have systematically invested in infrastructure, which not only created jobs, but also helped in creating a world class environment for trade. But then, their biggest credit has been in terms of the investments that they made in education. As per reports in 1998, around 3 million students were undertaking Chinese higher education; this increased to around 8 million in a matter of just 4 years. And investments have just not been in higher education – starting from English training, to vocational training to the investments that they made in science and technology. Such has been the outcome that their investments in education alone add up to almost 6% to their growth; and this would be sustained over a period of time. Today, China produces patents, the number of which is only second to the US! Not just this, they received severe criticism from all quarters when they pro-actively went ahead with their engagement with Iran. They did so not just with Iran to but with Sudan as well, for they knew that energy security is key to their dominance in global trade.

In order to have a better understanding of what the Chinese have achieved in the last two decades, one needs to compare it with India. The Indian economy, which used to be almost 80% of that of Chinese economy as recent as two decades back, now remains a menial 25%! While the Chinese feel underachieved at a staggering $4 trillion plus economy, we celebrated our $1 trillion mark! While sometime back there, China created history by hosting the greatest sporting spectacle, Olympics, we all know what we are doing to the Commonwealth games! Increasingly, any comparison between India and China is getting banal! It is not that we do not have our own advantages, but the Chinese have gone far ahead and are increasingly going farther. If reports are to be believed, we too would reach the number 2 position economically by 2040; but that too, if we keep growing between 8 to 9% year on year, which in itself is a huge challenge.


Wednesday, August 29, 2012

Water is my right!

The UN declares water a basic human right. You mean it wasn’t one till now?!

In a far-flung village in Africa, women wake-up every morning and walk for more than a kilometre to fetch the basic necessity of life – water. On some days they even get lucky and find clean water. Such is life for not only the people in Africa but about three billion people in the world, who have no access to running water within a kilometre of their homes. Alarmed by the scarcity of safe and clean water, which is responsible for claiming upto two million lives every year, the General Assembly of United Nations held a summit on the human right to water for the first time and declared that access to clean water is now a human right.

In the recent past, various attempts have been made to spread awareness of saving water and electricity, but with growing population and expansion of industries, it is estimated that by 2030 the gap between supply and demand of water will increase to more than 40% (according to a World Bank report). Let us take into consideration the Indian scenario. More than half of the population resides in rural areas, where let alone running water, even access to clean water is a luxury, and people dying of water-borne diseases is a common occurrence. The fluoride and arsenic content in groundwater endangers the life of more than 70 million people and 10 million people respectively. The so-called sacred water of the Ganges has now been contaminated to an extent that contact with it may lead to skin eczema, digestive and respiratory disorders. “In the last few years, I have seen that cases of water-borne diseases have risen to a great extent. And more people in the rural areas are being affected because they don’t have access to clean drinking water. We doctors are also helpless because we cannot provide them with this basic amenity,” laments Dr. Singhal, a medical practitioner in Delhi.


Tuesday, August 21, 2012

generation X thought ‘family is foremost'

If generation X thought ‘family is foremost’, for generation Y, are parents a pest?
 
People all over the world look up to India’s culture, especially because of our strong family bonds, and it’s a sad sight when tiny tiffs lead one to an impulsive decision of walking out of home. Opines Dr. Sanjay Chugh, “Living on your own makes you learn new things about life and your own self. It makes you more independent, self-reliant and responsible, if the freedom is rightly used. All these are desirable qualities, that’s why, if there is opportunity along with resources, rarely would anyone like to ignore it.” But the days ahead might not turn out to be all rosy. “Separating is an important decision and so, the family’s mental preparedness is crucial. If both the parents and the child are mentally and emotionally ready, then the whole shift could be far more peaceful and stress free. If not, the chances of emotional breakdowns are high”, said Sanjay.

To avoid reaching a crossroad of heartaches, both parents and children need to realise that where there’s love and understanding, a little adjustment can definitely be accommodated.


Tuesday, August 14, 2012

Dependants of jawans killed by Maoists struggle to stay afloat. A report from Orissa by B&E’s Dhrutikam Mohanty

A few days after the surgery, not only did her department pester her to report back to duty, she also received a phone call claiming that she had taken a loan of Rs . 40,000 from the PWF and that the amount would be recovered from her. She was totally stunned. Pratima alleges that an additional Rs. 20,000 was withdrawn by the SP, Cuttack against her name. Says Pratima, “While the government has promised to bear the complete cost of my medical treatment, it is painful that people from the department are fraudulently withdrawing money in our name and then trying to recover it from us.”

When the doctor treating her learnt that the police department wasn’t going to bear her expenses anymore, he stopped taking proper care of her. He discharged her even though she had not recovered fully. She continued to receive notices from her department to join back.

At her tether’s end, Pratima met the then Director General of Orissa Police, Gopal Nanda, as a last resort. He not only waived off her loan but also ordered that she be assigned an office job. She could now see light at the end of the tunnel. But Pratima is still nursing the wound in her leg. It hasn’t healed because of the unseemly haste with which the doctor discharged her from hospital. We ask her how much she has got by way of compensation. She replies, “What compensation are you talking about? I haven’t received a single penny.”

Pratima points out that it has taken the government two years to set up a board to prepare a detailed report on those who were injured in that Maoist strike. She adds, “As for my own case, one of the two board members who examined me was the same doctor who discharged me untreated. I, therefore, don’t have must expectations from this board.”

Now meet Jayakrishna Bardhan, a superannuated government employee who resides in the outskirts of Bhubaneswar. Though he retired in 2004, he still does the rounds of government offices. Sometimes he is in the provident fund section of the police headquarters requesting the dealing assistant to push his file. At others, he is seen in the pension section inquiring about the release of his family pension. It isn’t his own retirement benefits he is chasing. Jayakrishna’s policeman-son was killed in a Maoist attack and all he is asking for is the legitimate compensation for an irreparable loss.

Bardhan and his family reside in a single-storey building in Gadakana area of Bhubaneswar. It has neither a boundary wall nor a proper approach road. The entrance has no door bell. So we knock on the grille. The family’s pet dog, Blackie, barks in response. Jayakrishna is soon at the door to usher us in.

His elder son, Ajit Bardhan, was an Orissa police sub-inspector posted in the Maoist-infested Sundargarh district. While on patrol duty, Ajit was overpowered by a group of Maoists and abducted. The very next morning – the date was July 16, 2009 – his body was found near Jharbeda. Darkness descended on the slain cop’s family. Unable to withstand the shock, Jayakrishna suffered a heart attack. Ajit’s widow, Rosalin, who was expecting her first baby on August 7, experienced acute labour pain even as arrangements were being made to take her husband’s body to Puri.

The Orissa chief minister, Naveen Patnaik, came down to Ajit’s residence to express his condolences to the bereaved family. When he learnt about the condition of the cop’s father and widow, he immediately instructed senior officers to make all arrangements for them.

But nothing moved after that. Say Jayakrishna, “I am still wandering from one office to another for the release of my son’s provident fund amount and family pension. They haven’t even paid a small amount of Rs. 17,000, which I spent on my treatment after the heart attack. The CM had declared the government would bear all the expenditure. I have been to the Rourkela SP’s Office and the IG Operation’s office on several occasions, but nothing has been done. It is humiliating. It is as if they are going to do us a favour. Did my son lay down his life in vain?”

Ajit Bardhan, in a letter to his wife Rosalin, had once written that it would be the happiest moment of his life if he were to die serving the nation. If only he knew what would be in store for his family after his death, he might have changed his view. Rosalin, who recently got a police job under the rehabilitation scheme, is still waiting to get her other dues. She says, “My father-in-law has taken much pain to get my husband’s legitimate dues and I couldn’t help him because of my job and daughter Arushi.” Arushi is only eight months old.


Friday, August 10, 2012

The Budget can do is set a time frame

The least the Budget can do is set a time frame and an action mechanism to address the issues pertaining to its legitimate growth as an Industry of the future

Some of the measures that would be welcome by retailers would include the painting on the canvas of a long term vision by the government; the setting up of an existing or a new ministry to explicitly handle the requirements of the retail sector; the evaluation of various licensing laws, both central and state, that govern the retail trade by default than by design (as the laws are clearly not meant for large players who are much more reliable); the rationalisation of acts like Weights and Measures, Shop & Establishment. Besides these, reatilers would appreciate revising Labour Laws, 24x7 work hours, work timings for women etc. from the purview of the involvement of malls & reputed retailers; the abolition of service tax on rentals that is adding huge burden to the already stretched economics of retail; and many allied matters.

The least that the budget can do is set a time frame and an action mechanism to address the issues pertaining to its legitimate growth as an industry of the future. The retailers are hoping that this year’s budget would be the watershed year for its future in India. Fingers and toes crossed!




Monday, July 30, 2012

Coal abundant or dependent?

Amidst tight global supplies and price rise, it’s imperative to reassess the management of our coal resources and its impact on our energy security

Amongst the major energy sources, coal is the most rapidly growing fuel by consumption on a global basis. Coal plays an important role in electricity generation and steel and cement manufacturing worldwide. Currently, 39% of global electricity produced depends on coal feedstock. The Indian coal industry is the fourth largest in terms of coal reserves and third largest in terms of coal production in the world. But despite its huge resource base, India has not been able to minimise its coal deficit. The country continues to produce a majority of the coal that it consumes, but coal imports are rising at a fast pace, already contributing to over 10% of our coal consumption. And domestic coal production is unlikely to meet the expected demand growth over the next five years. According to a Credit Suisse report, the coal deficit in India is currently pegged at 142 million tonnes and is likely to increase to 400 million tonnes by FY 2017.

The Geological Survey of India estimates proven reserves of coal in India to be 114 billion tonnes, or 40% of the total reserves. The latest proven reserves represent a 3.6% increase over the previous year’s 110 billion tonnes. At current levels of production of about 550 million tonnes, the coal reserves will last for more than 100 years, Coal Minister Sriprakash Jaiswal recently told the upper house of the parliament (Rajya Sabha) in a written reply. Coal demand is anticipated to grow at a CAGR of over 10% during 2011-12 and 2013-14 with the demand for thermal coal and coking coal by the power and steel sectors expected to show maximum growth in the near future.

According to data available from the Ministry of Power, coal-based power generation capacity (86GW) is 53% of the total installed capacity (162GW) in the country and it contributes 66% of the generation (in kWh). There are 105 thermal-generation plants currently in operation throughout India, and another 59, which are expect ed to come into production over the next three years. The Ministry of Power expects coal imports for the power sector to increase from 16 million tonnes in FY ‘09 to 68 million tonnes in FY ‘12. Similarly, total coal requirement for India’s steel sector work out to 68.5 million tonnes/year by FY ‘12. That translates to incremental demand of 33.5 million tonnes of coal by FY ‘12. The cement sector is another important consumer of coal. As per Plan documents, annual cement production during the 11th Plan period should increase 61%, from 156 million tonnes during FY ‘07 to 251 million tonnes during FY12. This, despite the fact that average specific consumption of coal in cement plants has been decreasing in recent years, driven by substantial technological improvements. Nevertheless, coal requirement for incremental cement production is estimated to be at 11.9 million tonnes by FY ‘ 12.

Clearly, a large part of the coal requirement would have to be met through imports as PSU companies, who account for four-fifths of the country’s coal production, are finding it difficult to accelerate production growth. Coal India Limited (CIL), India’s largest coal producer and also the world’s biggest producer of coal has scaled down its production targets for 2011-12 to 452 million tonnes from 460.5 million tonnes. Last year, against the target of 460.5 million tonnes, it produced 431.32 million tonnes. The coal ministry blamed the shortfall on delays in getting environmental clearances, laws and litigation delays, and seasonal rainfalls that disrupt mining activities. The coal sector has been traditionally dominated by government-owned companies and with limited participation from the private sector. But there is no denying that private sector participation is a must for augmenting coal production.


Saturday, July 28, 2012

When Banks become Robbers

No doubt the High Court of Allahabad – and even the Supreme Court a few weeks ago – has delivered justice for farmers in what is euphemistically called Noida Extension. Very briefly, the government had invoked a law dating back to the colonial era to de facto grab land belonging to farmers at throwaway prices in 'public interest'. Farmers were paid about Rs.800 per square meter for land; in turn, the Greater Noida Industrial Development Authority sold the land acquired for 'industrial units' to real estate developers at a minimum of Rs.10,000 per square meter. In turn, builders sold flats to middle class investors in search of a dream house at prices starting at Rs.25,000 per square meter. So the price paid by a middle-class home buyer was at least 30 times more than what the farmer was given. Clearly, this was bizarre and in defiance of common sense, apart from basic principles of justice. By declaring such land acquisition null and void, the courts have hopefully halted a nationwide trend where governments grabbed land from farmers to enrich builders and industrialists. Hopefully, this series of judgements will set a precedent and governments might be forced to stop indulging in the very worst kind of crony capitalism. This series of verdicts has already triggered another debate about the colonial era policy of land acquisition in India. A Bill to change the Land Acquisition Policy is waiting to be debated in the Parliament and the controversy will attract many comments and columns.

But I want to focus on the plight of the hapless middle-class investors and Shylock-like behaviour of commercial banks. The media is replete with callous statements from heads of banks saying that people who have taken loans to invest in these houses in Noida Extension have no choice but to keep paying the EMIs – even if they have no hope whatsoever of getting their dream houses. Some investors might be lucky to get a refund from builders because the Supreme Court has so directed (Can you imagine builders voluntarily refunding money?). But even they will have to forfeit the huge amounts of interest they have already paid to the banks. Quite simply, the banks are behaving like highway robbers and taking refuge under perverse agreements and fine prints. The fact is: the banks must have been aware that the projects were controversial and that there was litigation involved in the housing schemes. Knowing the risks, they merrily lent money to home buyers at exorbitant rates of interest. And now that the courts have stopped one part of the robbery, the banks continue to persist with their brand of loot.

Anyone saddled with credit card debt knows how banks in India behave as badly as evil moneylenders from old Bollywood movies. Everyone knows how banks send goons and thugs to people's houses and offices if there is a default on consumer loans. Everyone knows how banks behave in the most unethical manner by using glib salesmen to sell dubious financial products and hoodwink investors. All of us know that.


Thursday, July 26, 2012

Jnnsm : Time to Prepare for Phase II

Shubhranshu Patnaik, Senior Director, Deloitte Touche Tohmatsu India Private Ltd.

The Jawaharlal Nehru National Solar Mission (JNNSM) was launched last year with the objective of achieving 20 GW MW of grid-connected (and 2 GW MW of off-grid) solar capacity in India by 2022 and to provide an environment for innovation, efficiency improvement and scale in the country to accelerate solar energy’s march towards grid-parity by 2022.

Over Phase I of JNNSM, 1 GW of solar power is targeted by 2013. As a significant first step towards achieving this, the Government of India, through a tariff-based reverse auction process, successfully selected 37 developers offering 620 MW (450 MW of solar thermal and 150 MW of solar PV projects) to sign Power Purchase Agreements with NNNV. Further, about 100 MW of projects, were allowed to migrate under the JNNSM at feed-in tariffs specified by the CERC (Rs 17.91/kWh for PV and Rs 15.31/kWh for solar thermal).

The auction settled the debate on the viability of CERC’s feed-in tariffs as qualified bidders bid substantive discounts over CERC tariffs up to Rs.5.75/kWh for solar PV and Rs.4.82/kWh for solar thermal. Despite unavoidable criticisms of the reverse auction process, caps on capacities, etc., investor participation was overwhelming and the government and NVVN deserve credit in having conducted the process in a time-bound manner and conveying the seriousness of the program to the global community. Phase I is at best a proof of concepts, the test of which is not just the successful award or even commissioning of projects but in its scalability, given the 20 GW target set out under the mission by 2022. It is time therefore to ascertain the progress under Phase I and prepare for Phase II of the mission.

Of particular interest is the realisation of the solar thermal potential in India, which is central to achievement of the ambitious targets under JNNSM. Solar thermal technologies are emerging in nature and there are only a few operating plants around the world, although several are in the planning / development stage.

Solar thermal plant designs ideally require accurate local irradiation data and extensive engineering inputs in calibration and design of solar fields. Relying simply on the satellite-derived data can lead to faulty conclusions, as some players are finding out with ground-measuring instruments. The above uncertainties combined with the lack of solar development experience amongst bidders and the fact that very few solar thermal bidders actually aligned with solar technology providers at the bidding stage, has increased the risk-perception amongst lenders and made it extremely hard for these projects to get non-recourse financing. Over three-fourths of all projects under JNNSM face challenges in achieving financial closure. This remains an important area to be addressed by the government and multilateral financial institutions (MFIs).


Wednesday, July 25, 2012

The Real National Shame: Food

In a recent column, the respected agriculture economist M. S. Swaminathan has described the bumper crop of wheat in Punjab and Haryana as a moment of both ecstasy and agony. Ecstasy because the 85 million tons of wheat output reveal how our intrepid farmers battle against all odds do their bit for food security in the country; agony because most of their efforts go down the drain because of a hopelessly incompetent and criminally callous Government, particularly the Food and Agriculture Ministry headed by our cricket Czar Sharad Pawar.

At the moment, India is sitting on about 45 million tonnes of food grains, quaintly known as buffer stocks. As procurement gathers momentum each day, it will not be surprising if the stockpile of food grains crosses the 50 million ton mark very soon. In fact, so acute is the crisis of ‘surplus’ that state and central procurement agencies now claim they simply have no space left to store any more food. There will be the usual tales of corrupt and venal procurement officials harassing poor farmers with demand for bribes. Worse, most of the food procured will simply rot as the government has not managed even the childishly simple task of building adequate and safe storage godowns despite more than 20 years of persistent surpluses. What can you say about the priorities of our system when spanking new stadiums for the recently concluded Cricket World Cup can be built almost overnight under the benign supervision of Mr. Sharad Pawar while we fail to erect simple concrete structures to store food in a dispensation run by the same man?

The most commonsense and obvious solution is to allow Indian farmers to export food so that they can reap the benefits of globalisation, just as our IT, Telecom, Automobile, Petrochemical and Infrastructure tycoons have been doing. But mention the word 'exports' and you will encounter storms of protest from both do-gooders and government types who say allowing exports of food will once again uncork the genie of food inflation. They will say how each kilo of food will now be crucial since the Right to Food is now a constitutional requirement and that the buffer stocks will be needed to distribute free food to the poor. They also talk about how onion exports and one bad harvest led to onion prices going through the roof last year.

Frankly, such arguments are nonsense and reflect the defeatist mindset our policymakers acquired during the dark era of socialist inspired shortages of everything. First, be assured that almost all the ‘free’ food that will be doled out to the poor will be so rotten due to poor storage that it will be virtually unfit for consumption. Second, and more important, such arguments ignore the fact that foodgrain productivity in India is still half that of China. Quite simply, we have the potential and the ability to almost double our foodgrain output to close to 500 million tonnes a year. That one national endeavour will enrich tens of millions of farmer families who can export food even as the poor get enough free food.



Monday, June 13, 2011

India Govt. gives green signal to biggest-ever defence deal with US

India has formally cleared the biggest-ever Indo-US Defence deal , the $4.1 billion contract for 10 C-17 Globemaster-III giant strategic airlift aircraft. All decks for the almost Rs 19,000-crore deal, which will support over 22,000 jobs in the US as Barack Obama himself put it, were cleared last month, as was first reported by TOI. On Monday, the Cabinet Committee on Security chaired by PM Manmohan Singh gave the final go-ahead for the contract, under which the 10 Globemasters are to be delivered to IAF between 2013 and 2015.

Capable of carrying a maximum payload of 77.5 tonnes, which can include combat vehicles, artillery guns and battle-ready troops, the Boeing-manufactured Globemasters will seriously boost India's swift power projection capabilities in its "primary area of geo-strategic interest'' stretching from Persian Gulf to Malacca Strait.

The Globemaster from "Block 19'', which India will get, after all has a maximum range of 9,200 km. "They can carry twice the load of our present IL-76 `Gajraj' aircraft (IAF has around a dozen of these Russian-origin aircraft). Importantly, they can also operate from short airstrips,'' said ACM Naik. The Globemaster deal, which some have termed "exorbitant'', will assuage the US, which is still to reconcile with its F/A-18 `Super Hornet' and F-16 `Falcon' fighters losing out to European fighters in the India's $10.4 billion project to acquire 126 jets.

Arms deals in the bag

* 2002: $190 million for 12 AN/TPQ-37 firefinder weapon-locating radars

* 2005: Rs 937 crore for three VVIP Boeing Business Jets

* 2006: $92.5 million for amphibious vessel USS Trenton, with 6 UH-3H helicopters

* 2007: $1.2 billion for 6 C-130J `Super Hercules' aircraft

* 2009: $2.1 billion for 8 P-8I Poseidon maritime patrol aircraft

* 2010: $170 million for 24 Harpoon Block-II missiles to arm Jaguar fighters

* 2010: $822 million for 99 GE F-414 engines for Tejas Light Combat aircraft

* 2010: $257 million for 512 CBU-105 sensor-fuzed weapons

* 2011: $4.1 billion for 10 C-17 Globemaster-III strategic airlift aircraft
In pipeline

* Four more P-8Is for almost $1 billion

* Six more C-130Js for over $1 billion

* 145 M-777 ultra-light howitzers for $647 million

* Multi-million dollar deal for Javelin anti-tank guided missiles

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School
Arindam Chaudhuri
Rajita Chaudhuri
Planman Consulting

IIPM in the league of best management institutes of India.....

IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management