Thursday, 1 August 2013

Offering a Strategic Edge

Aircraft carriers, despite their great cost, have always been seen as strategically important by the Indian Navy due to what must be a misplaced sense of grandeur. Today, they are seen as vital for India to establish a naval presence as a world power.



The fading away of the old British aircraft carrier and the commissioning of Russian made 44,570 tonne INS Vikramaditya (R33), and the likely induction of indigenously built 37,000- tonne INS Vikrant by 2018 represent a symbolic coming of age for the Indian Navy. The twin carriers are expected to serve the navy for the next 40 years. The fleet may see a probable addition of a nother 65,000-tonne indigenous vessel after a gap of 10 years or so. Despite the impressive numbers, one remains sceptical about the strategic thought behind the Indian Navy's perspective planning. The only visible novelty in Indian naval thought is the use of postmodern symbolism to sell its modernisation plans to the public at large. Till a few years ago, the navigation track of a warship at sea was a highly guarded secret. In the age of transparency, the full electronic track of R33, from Russia to India, is now available on social media for the military-machine enthusiasts to speculate on all the minor and bold alterations of courses ordered by the command. However, what is more crucial is that despite the decline in universal appeal of aircraft carriers, they continue to be the “queen ship” of the Indian Navy. Over the past half a century, besides laying the foundation of the Indian naval air arm, the two ex-British carriers have given India no tactical or strategic advantage in the Indian Ocean. In fact, the history of the aircraft carrier purchases by India clearly suggests that they were bought for considerations other than the strategic.
Misplaced Ambitions In 1956, when India decided to buy the redundant British light fl eet carrier HMS Hercules, there was neither any justification nor any reason for a nine-year-old infant nation to catapult itself to great power status by spending precious foreign exchange in times of extreme food shortages in the country.3 The cost of the old English carrier was close to one instalment (£50 million or Rs 65 crore) of what the British had promised to pay the Indians under the Indo-British sterling agreement. Interestingly, the Indian Navy's aircraft carrier dreams were drawing funds from the Second Five- Year Plan that had envisaged a foreign exchange shortfall of Rs 11,000 million and was looking at raising Rs 1,000 million through new private foreign investment.
The mid-1950s was the time when India was demanding the delinking of the rupee from the plummeting sterling and converting the £542 million Indian sterling reserves into dollars. Fearing damage to the international role of the sterling, the Bank of England and the Chancellor of the Exchequer pleaded with India to refrain from taking any drastic step. It is in this period of financial stress that both India and Britain initiated the Gnat fighter and aircraft carrier deals.
Perhaps the only solace was that India was not the only third world nation on which an old aircraft carrier was being dumped. Debt-ridden nations – Argentina, Brazil and Thailand were the other gullible buyers in late 1950s and early 1960s. India's second aircraft carrier INS Viraat came along with British Sea Harrier aircraft. The deal for Harriers for the Indian Navy had started as early as 1970s. In 1972, the British aerospace industry as well as their government pitched for the sale of 100 Sea Harriers to the Chinese. The Chinese who had a more urgent strategic requirement of getting Margaret Thatcher to sign an agreement for return of Hong Kong indulged the British till 1979 and finally refused to buy the Harriers. India had no substantial aim vis-à-vis Britain, yet, misplaced ambitions of grandeur led New Delhi to inadvertently pay for Thatcher's extravagance in 1982 Falklands war through the purchase of Hermes and Harriers.
The third Indian carrier, INS Vikramaditya, was built by the Soviets towards the fag end of the Cold War. The issolution of Soviet Union and the declining Russian stature in international politics in the Boris Yeltsin era made the Russian distaste for aircraft carriers even more pronounced. The Russians offered the raw platform to the Indians free of cost. The deal was signed with the Russians in 2004. The Indian naval planners' dogmatic allegiance to aircraft carriers has led to the refurbishment of Vikramaditya at a cost of $2.33 billion. Such spending is being justified in terms of India's growing economic reach and the global gaze shifting to the Asia-Pacific region. According to Kaplan, of late, a greater interest is being evinced in the Indian Ocean Region (IOR). The European interest in IOR is being fuelled “as a result of what is perceived to be a growing mixture of shiny gunboats, new naval stations and geopolitical intrigue among countries of the IOR such as India, China,the United States and Iran”. Admiral (retd) Arun Prakash posits, “The surge of interest in the Indian IOR, of which India is a major geographical constituent, is a new phenomenon.” Some Chinese scholars see “a progressively assertive India, setting the pace of the impending maritime rivalries among the great powers”. Contradicting the Chinese, former naval chief, admiral Sureesh Mehta feels that India “lacks strategic thinking in terms of maritime affairs, and also paucity of planning to counter Chinese moves in the IOR”. This growing mismatch between the Indian and Chinese perceptions of maritime security in the IOR is being aided and exploited by the America's “Asia pivot” and their resolve to maintain their predominance in the region.
The current debates based on booming Indian economic might and intensification of competition with China are indicative of a fresh urge among the maritime strategists to resurrect Mahanian concepts of sea power and naval strategy. What is discernible in these trends is that there is a growing salience of strategic theories that are pushing India to look beyond their borders, and move into a global arena using their sea power. As a former naval officer says, The advocates of a Realist foreign p olicy see Indian Navy's proactive operations in IOR and South China Sea as an instrument to achieve great power status for India. The key tenets of Realist thought on Indian maritime security are: (1) maritime security is intrinsically linked to trade and commerce; (2) the impact of national sea power is best felt beyond the exclusive economic zone (EEZ); the Indian Navy should be the net security provider in the IOR; (4) naval bases on foreign territory are a must to exercise sea power; and (5) the Indian Navy is the foremost instrument of Indian military diplomacy. This seeming theoretical clarity is largely based on western scholarship on maritime affairs. Behind such formulations is a belief that the next stage of capitalist development in India and China will lead to imperialism – a competition for colonies. And since historically, force at sea has been a quintessential ingredient for any imperial powers, therefore, India must be a sea power to be a great power.
Such delusions of grandeur lie behind the borrowed strategic themes as “out of area operations”, cooperative security at sea and the support they render to the concept of aircraft carrier as the bulwark of Indian naval strategy. Subsidising the Imperium However, what is normally overlooked is that theories which are applicable for truly great sea powers like the US may not fi t the medium power requirements.
The reach and range of American maritime assets places it in an absolutely different league. Despite this common knowledge, naval planners continue to insist on making Indian Navy a miniaturised version of the US navy. Fifty years ago, India paid to bail out England, and now, once again, India is digging deep into its pockets to sustain the dwindling fortunes of the falling American Empire. In the next couple of decades, India is not likely to reach a stage where it would be able to exercise any maritime adventure on its own steam – position its CBG to launch its fi ghters for fi ring missiles on enemy land from the sea. Operating any aircraft carrier in close proximity to e nemy territory enhances its vulnerability manifold. Establishing sea control even for a limited time of period is a diffi cult proposition in the age of sophisticated submarines and nano-technology. Therefore, the only o ption for the Indian Navy to use its costly carrier and its organic air is to operate under guidance and cover of the US military diplomacy, a proposition that would not only curtail strategic a utonomy, but create conditions for the Indian fl eet to be constantly in tow of the US fleet.
It is now well established that the US navy is shrinking under the burden of budget cuts. To obviate this difficulty, the US wants to broaden its military alliance base beyond the Atlantic. The game plan as enunciated by US military strategist Thomas Barnet is “We want to administer the global security system, not rule it. Like those 'system administrators' that keep the Internet up and running, America needs to play system administrator to the global security network. We need to keep globalisation up and running – to be, in effect, its bodyguard.” Rekindling the imperial desires of France, Japan and the Indian elite is part of the global security structure envisaged by the US.
The Indian strategy disregards facts and relies on theories that make it don an oversized jacket designed to fi t an imperial power. Strategies for medium powers need not always rely on marrying military means with political objectives. The problem arises because conventional strategists are preoccupied with “use of force” and its calibration to achieve national objectives. This assumes that the state's monopoly over means of violence is absolute and the only restraining factor is the adversary's military strength. Therefore, adroit management of limited wars or threat of use of force is considered to be the lynchpin of strategy. It is such thinking that makes costly platforms like aircraft carriers look attractive national weapons and disregard all military lessons that a medium power like India must learn from the experience of invaded nations. What prevented the sophisticated, modern military machines in Iraq and Libya from offering resistance against their invaders is a question that needs to be studied in greater detail. Spending money on techniques to penetrate no-fly zones created by a big power and jamming the incoming missiles of an invading airpower should be the strategic imperative rather than splurging money on gaining a false sense of prestige.


Strengthening Party Organisation is a big challenge for me

Nirmal Khatri, President, UPCC, says thats the initiatives by the present Chief Minister are not enough and has not come upto the expectations of people. Acknowledging that the Congress party in state is in bad shape, he says that there is still a need to revamp the oganisation to gear up the party morale. Excerpts:



TE: How do you assess the present Samajwadi Party Government in UP?
Nirmal: The SP Government has not come up to the expectations of the people. The law and order situation has worsened and many cases of communal violence registered in their period. They are not able to meet up the promises which they made before the elections. I don't see them successful from any side.
TE: Your views on UP CM's initiatives on development?
Nirmal: Hon'ble CM of UP has made several announcements regarding development and it would be very good if they get implemented in the future. The credit of whatever good has happened in the state during this period equally goes to the Central Congress government. Central Government has extended its full support to the development initiatives of the UP Government. 
TE: As President of UPCC, What are your plans to put congress back on tracks in the upcoming elections?
Nirmal: My first priority is to boost up the morale of the party workers which suffered a setback after the last Assembly elections, so that they would be positive about the future development and the party plans. To restore party's energy is a challenge for me. My second priority is to re-strengthen the party organization in the state.
TE: What has been your contribution in mobilizing masses and organizing workers as a team? No one had really heard your name as a state level leader before?
Nirmal:  There was a gap in the past but my contribution to the party has been many. I was the president of UP Youth Congress from 1982-1986 and then I was nominated the Member of Parliament  thereafter I worked as Vice President in organization. There was a phase when I was in the state office under Sri Prakash Jaiswal and handled all the work. But for the last few years I had limited myself only to my constituency and now I have been made the President of UPCC.
TE: What are the reasons for dividing UP and setting up a new Zonal Structure?
Nirmal: UP is a very vast state and in this very huge area a single person won't be able to reconstitute the party because of which the Congress High Commission has setup Zonal Structure. It will help in revamping the organization and gearing up the party morale. 
TE: Do you think it will help in re-boosting the party in the state?
Nirmal: I am very much hopeful about its success in the state. It will help in mobilizing party's strength in UP. 
TE: Rita Bahuguna, the past state president promised more and delivered less and had to resign. Who's failure it was?
Nirmal: I don't think Rita Bahuguna was responsible for the poor show in the state. She must have realized her responsibility and resigned, it would be better to ask the question from her, she would be in better position to reply.


Tuesday, 1 January 2013

Seducing shoppers

India's small towns are the next frontier


 


The economy expanded by  5.3% in the year to the  January-March quarter, the slowest for seven years. Shoppers are scrimping. Sales of consumer durables fell by 10-15% in the year to March 2012, executives say. Indian factories cranked out 30% fewer air conditioners and 15% fewer colour televisions, official data show.
Yet there is a bright spot: small-town shoppers are starting to splurge. The sales in towns of less than 100,000 people rose by 19%, and in villages by over 40%. Sales of motorbikes and mopeds have decelerated more gently than cars, an urban luxury.“As far as I am concerned, the slowdown is not having an effect,” beams Gaurav Vasistha, as he plies customers with fizzy drinks in his home-appliances shop in Pant Nagar. Two years ago he would sell a dozen washing machines a month at most in this dusty town of 64,000 people in North India. He now sells that many a week. Fridges, food processors and fans are also shifting more quickly. A bride's parents often buy a whole set of white goods as a dowry.
Government subsidies, high land prices and a low reliance on credit have thus far sheltered these consumers. Rudrapur shoppers are mostly farmers who benefit from government-fixed floor prices for crops. Some have also made big sums by selling fields to developers. Poorer shoppers from nearby villages make money from a government scheme that guarantees 100 days of work a year. Such subsidies and schemes pushed up rural incomes by 12% last year. Rural incomes have grown more rapidly than urban ones since 2008.
Indian firms sense a fortune to be made by selling rustic folk their first fridges. Nirmal Singh, the head of Electrical appliances co., the wing of the conglomerate that sells home appliances, wants to start reaching rural buyers directly and cutting out costly middlemen. Last year he launched a chain, mostly for rural areas. It now has 20 stores, one in a town of just 20,000 people. He hopes to have 70 by next spring. “We never looked at these markets…[but] a couple of years ago we started looking at this because we need to continue to grow,” he says.
The other companies are pushing even deeper into the hinterland, trying to reach villages with as few as 5,000 people. It is also designing washing machines with manual motors and tiny fridges for homes with unreliable electricity. Foreign firms such as Samsung and Panasonic are following suit. Bhupesh Gupta, who heads home-appliances division in India, hopes to increase the firm's presence in rural shops by a fifth in time for November's Diwali festival, a big shopping season. Foreign firms typically have skimpier distribution networks than their local rivals, but their products are more popular where they are available. A foreign brand is often a status symbol.
As India gets richer, rural folk are becoming more entwined with the national economy. Ramesh Iyer, the managing director of Mahindra & Mahindra Financial Services, a rural lender, now has 2m customers, twice as many as he had in 2008. “As they move up the chain, the demand for credit will only get higher.” Rudrapur's shopkeepers are upbeat. A motorcycle vendor says families are buying one bike per adult, rather than one for everyone to share, as they did a few years ago. However, rural shoppers cannot always be relied on to splurge. Their wealth often depends on handouts rather than increased productivity. A poor monsoon curbs spending for a whole year—light rains in June are causing jitters, though the forecast for the whole year is still good. Life in small-town India may be better, for now, but it is precarious.


Pharma companies fear Generic Will erode Margins

Manufacturers of branded drugs say their revenues will be severely hit if the government promotes generic medicines and low-cost brands in its drive to make medicines more accessible to the country's poor.


 


The health ministry plans to start providing free essential medicines at all government clin
 ics by October, a move that could spell more trouble for the domestic pharma industry where an imminent drug pricing policy is likely to target high-priced brands."If the government successfully implements its programmes, sales of drug makers will be significantly hit," a senior executive at Cipla said, adding that companies will have to rethink their strategy depending on the level of success of these government initiatives.
"The past track record of the government does not give that confidence (to accomplish the objective)," the Ranbaxy executive said, hinting at the lacklusture implementation of the pharmaceutical department's generic pharmacy programme, which was launched in 2008. The ministry, which has the Planning Commission's approval to spend 100 crore this fiscal on the healthcare programme, is targeting an expenditure of 28,560 crore over the 12th Five-year Plan period. Adding to the woes of the domestic pharma industry is the National Pharmaceutical Pricing Authority plan to roll out a text message service that will offer patients cheaper alternatives for prescribed drugs.
According to a analysts, the drug price controller's SMS service is likely to wean consumers off premium brands, which in turn will increase costs for drug makers as they will have to invest more in marketing. Manufacturers will also have to incentivise chemists to stock their brands, as retailers usually keep only limited brands, he added. Indian and foreign drug makers have already suffered heavy revenue loss due to changes in drug pricing or procurement policies in countries such as Germany.
A member of a leading pharma industry body said the government's healthcare policies were a "matter of concern" for drug makers and companies need to rethink their strategy. "If a drug costs 10-15 times more than a similar medicine sold by a competitor, you cannot justify that pricing. "They may have to reposition their brands, increase volume or scale up operations," he said. However, some experts say the impact will not be as severe as feared.
Amit Backliwal, managing director of IMS Health India, said he did not expect any major impact on the industry. He, however, said that the government's initiative could hurt small manufacturers who have a large presence in rural areas or those that do not have differentiated (niche) products. Pfizer India's managing director Kewal Handa said that companies could benefit by participating in the procurement process to offset potential revenue loss. He, however, cautioned that targeting cost alone could be fraught with risks. "The government should ensure that medicines are procured from quality drug makers and should not compromise patient safety at the cost of cheap drugs." 


Buying Health Insurance

Have you ever bothered to know the cost of different medical treatments/procedures before deciding the size of your health cover?



Will you buy a Rs 3 lakh family floater health cover without knowing the cost of a by pass coronary surgery or a liver transplant or any other critical illness, which can afflict any one in your family? If it is so, it is like buying a pair of small-size jeans without knowing the size of your over-stretched waist.
HEALTH COST: That medical inflation far outpaces overall inflation is known. The oft-quoted figure for healthcare inflation in India is 15 per cent a year compared to overall inflation of 6-7 per cent in the past few years. We sift through official and unofficial data to find out how medical costs have been increasing in India. A health insurance report published by the Insurance Regulatory and Development Authority (Irda) of India published in 2011 says the average claim in case of major diseases was Rs 1,34,550 in 2009-10 compared to Rs 98,101 in 2007-08, a compounded annual growth rate of 17 per cent. Notably, the average claim paid in 2009-10 was just Rs 23,000.
The report considered cases where the amount claimed was more than Rs 40,000 as small claims for diagnostics tests and medicines without major treatment, etc, could have distorted the overall data disproportionately.The report suggests a 57 per cent rise in average claimed amount for circulatory diseases (heart attack, high and low blood pressure etc) from Rs 1.53 lakh in 2007-08 to Rs 3.56 lakh in 2009-10. The average claims made in nervous system-related diseases (multiple sclerosis, paralysis etc) increased 14 per cent from Rs 1.10 lakh in 2007-08 to 1.28 lakh in 2009-10. The average claims made in case of blood-related diseases increased 11 per cent from Rs 96,000 in 2007-08 to Rs 1.07 lakh in 2009-10.
While the rates discussed earlier were indirectly arrived at from the 'amount claimed' data, to know the current costs, we asked third-party administrators, or TPAs, insurance brokers, hospitals and insurance companies. However, not all of them were 'keen' on sharing the prevailing rates. What we received from a TPA, an agency hired by insurance companies to service health insurance claims, is the tariff list approved by the General Insurers' Public Sector Association (GIPSA). Medimanage, an insurance broking company, also provided a list of rates for some common medical treatments/procedures, which it says is the average cost across the country and hospitals.
The two lists show wide disparity in rates. Raju M V, vice-president, technical, TTK Healthcare, says GIPSA-approved rates are lower than the actual medical costs. The average cost of coronary artery bypass surgery as per GIPSA was Rs 1.4-1.8 lakh in 2011-12 compared to the average 'actual' cost of Rs 2.5 lakh. The cost of angioplasty (widening of blocked blood vessels) was Rs 1.5 lakh according to GIPSA rates while the 'actual' cost was around Rs 2.5 lakh. General Insurance Public Sector Association (GIPSA) is a body of four public sector general insurers-New India Assurance, United India Insurance, National Insurance and Oriental Insurance Company. To contain losses due to 'inflated' medical bills charged from the insured, these insurers decided to standarise rates for 42 medical procedures across categories of hospitals for settling cashless claims.
The network of hospitals that agreed on the rates stipulated by GIPSA forms the preferred provider network or PPN. There are 928 hospitals in the PPN across eight cities in the country-Delhi (188), Mumbai (165), Bengaluru (122), Chennai (125), Ahmedabad (91), Hyderabad (87), Chandigarh including Jalandhar, Ambala and Mohali (87) and Kolkata (63).
MEDICAL INFLATION: DEMAND-SUPPLY GAP?: Why are healthcare costs increasing at a double-digit rate despite use of technology? Shouldn't the spread of technology bring the medical costs down? Shortage of good doctors and surgeons is also a reason. Sudhir Sarnobat, co-founder and chief executive officer, Medimanage Insurance Broking, says there is a clear demand-supply gap of good doctors in India. "You can count on your finger the number of good surgeons and doctors in any particular field," he says.
According to Ministry of Health data, India had one doctor per 2,000 people as of 31 July 2011. Another reason could be private sector dominance in the healthcare industry in India. A World Health Organisation report in 2011 said the private sector accounted for 68 per cent healthcare spending in India. Popularity of cashless facility offered by insurance companies is also one of the reason for higher treatment costs.
According to an Irda report, the 'cashless' basis of settlement is costing more for all types of diseases. In 2009-10, charges for arthopathies (disease of joints) and mental disorders were more than double those under the reimbursement facility. For 11 diseases, the charges were more than 50 per cent compared to those under the reimbursement facility.
KEEPING PACE: Do you think your cover is enough given the double-digit health inflation? If you feel it's not, you can buy a separate policy or increase the cover by opting for a top-up insurance plan. The latter is cheaper and more viable. If you have a Rs 5 lakh cover and want to increase it to Rs 10 lakh, you can buy a separate health policy, which will cost around Rs 6,000 a year, or opt for a top-up plan, which will cost just Rs 2,000 a year. Prospective buyers must check the costs of different medical procedures and treatments to get a sense of how much cover they may need for any possible medical emergency in the future.They can also check the GIPSA rates, which are easier to access, if TPAs, insurers or hospitals are not willing to share the details.


Rising Cost of Healthcare

A lot of talk surrounds the rising cost of healthcare in India. Multiple tests, hospital charges, expensive medicines causes more deaths than actual illness.



While India's healthcare  costs look affordable to  medical tourists, they are costly, almost prohibitive, to the average Indian citizen. The average amount of money spent on healthcare by a middle class family in India is Rs2000 a month. For a poor family the monthly healthcare expenditure is Rs 500 – may seem like a measly amount, but it is 50 per cent of their monthly income. One medical procedure can cost lakhs of rupees, sending the family of a patient into debt.  
Reasons of rising healthcare costs: Healthcare costs in India have risen because of the introduction of the latest in sophisticated technology and equipment. Two-three decades ago, in the absence of the latest equipment all the doctor had to do was examine a patient and prescribe medicines. Tests were done only if the patient's illness was serious and the tests were very simple. Now doctors advise a battery of complex tests to ensure correct diagnosis.
After medical negligence cases have been brought under the purview of consumer courts, doctors have no alternative but to ask for the test reports before prescribing the preferable line of treatment. This has also lead to the over-recommendation of diagnostic services. “In 45 per cent of the cases observed, major reasons for rise in the premium was advent of sophisticated medical technologies and malpractices like over-recommendation of services”. 
The opening up of the private sector in providing healthcare has also contributed to the rise in costs. Apart from higher diagnostic charges patients pay more for hospital stay, doctor fees, nursing charges, and planned diet while seeking treatment from private hospitals.  
Another factor responsible for pushing up the cost of healthcare is the advancement in management and cure of diseases over the years with the help of modern technology, which is reflected in the improved life expectancy of the citizens. Life expectancy at birth in India was slightly below 60 years in 1990, 60-61 years in 2000, and 64.7 years in 2007. Inventions of new vaccines and medical equipment have helped in the cure for diseases and made managing diseases easier. Higher life expectancy and lower infant mortality rates are indicators of the fact that more people are seeking healthcare putting a demand on its availability and hence pushing the cost upwards.
The impact of rise in healthcare costs: The same WHO study mentioned earlier has reported that 40 per cent of Indian families end up in debt due to high medical expenditure. 20 per cent of the families slip below the poverty line in order to save a member of the family. Many poor people do not have access to costly medical treatment and precious lives are lost as a result. Leading cardiologist and health expert Dr Prashotam Lal is of the view that ayurvedic treatment should be included in modern medicine to reduce healthcare costs. Ayurveda reduces the need for intensive medical intervention and hence keeps the health costs down. 
Along with ayurveda, unani and homeopathy have been recognised by the Indian government as alternative forms of treatment. Though they may not be helpful in medical emergencies, they can prevent diseases. They can cure many minor diseases and lifestyle related serious ailments. These alternative forms of medicine come very cheap and should be considered as an option in health problems that don't require emergency or critical care.  Cost of healthcare in India should be brought under control. Otherwise a majority of the Indian population will be deprived of a fundamental right – right to health.


Punjab gears up to attract Rs 1 lakh crore investment: Badal

The Punjab government has finalised the contours of the policy frame work to attract minimum investment of Rs one lakh crore in the next 5 years. Punjab Deputy Chief Minister Sukhbir Singh Badal today held a meeting with the representatives of industrial houses and all other concerned departments to finalise the contours of the policy frame work to attract Rs 1 lakh crore investment, an official release said.
Accompanied by Industry Minister Anil Joshi and Labour Minister Surjit Kumar Jiyani, Badal had a detailed deliberation with the representatives of industrial houses from all over the country to understand their expectations to streamline the policy issues infringing the industrial growth in the state, it said. Addressing the industrialists, the Deputy Chief Minister said that Punjab is the only state in the country that is having three international airports besides World Class Road connectivity with all major cities linked with 4/6 laned roads.
He said that Punjab would be the first state in the country that would be power surplus by 2013-14, assuring 24 hours quality power supply to industry in the state. He said that power tariff in Punjab was one of the lowest in the country for the industry and with the commissioning of 3 thermal plants at Talwandi Sabo, Goindwal Sahib and Rajpura, the power tariff is also to come substantially down in the state. Offering conducive environment for the industrial growth, Badal said Punjab is the only state in the country where labour relations were totally smooth during last 40 years. He said Punjab had chain of engineering polytechnics and ITIs that provide human resource backup for the upcoming industry.
Badal said steps are being taken to create a 200 acre industrial park near Bathinda refinery to facilitate industry. Asking Secretary Industry and other government officers to retune their policy framework to provide single window service to upcoming industry, Badal sought immediate completion of portal of industry department so as to enable new industry to apply on portal. Badal also reviewed the progress of ongoing construction of thermal plants in the state and expressed satisfaction over thermal plants sticking to their schedule of construction.


Investment picks up in India: Survey

Business investment is picking up especially in emerging market economies including India, notwithstanding a bleak economic outlook, says a survey by Grant Thornton. According to the Grant Thornton International Business Report (IBR), 45 per cent of businesses in the BRIC countries (Brazil, Russia, India and China) plan to increase investment in research and development over the next year, compared to just 18 per cent in the G7.
Similarly, 47 per cent of BRIC businesses plan to increase investment in plant and machinery over the next 12 months, compared to 37 per cent in the G7. "The results indicate an interesting trend, while businesses in developed economies are sitting on their cash, their emerging market counterparts are investing in their future," Grant Thornton India LLP Partner Munesh Khanna said. This focus is apparent in some of the fastest growing markets globally: Compared to three months ago, 15 per cent more businesses in China are now looking to increase investment in research and development.
In Mexico, 14 per cent more businesses are planning to boost investment in new plant & machinery, and in Turkey the proportion of businesses planning to increase investment in new buildings is up 12 per cent. If this investment trend continues, developed economies could find their competitiveness eroding as against emerging economies, Khanna believes. Overall the proportion of businesses looking to increase investment in new buildings has risen from 15 per cent to 21 per cent over the past 18 months, and in plant & machinery from 35 per cent to 38 per cent.
Moreover, businesses are also investing more in their employees - 68 per cent plan to offer pay rises over the next 12 months, compared with 51 per cent in 2010. "Global economic uncertainty is weighing on short-term business growth prospects. However, it is encouraging to see dynamic businesses willing to adopt bolder, long-term growth plans," Khanna added. This strategy is not about immediate returns in terms of revenues and profits, but rather investing in their long-term growth and competitiveness. "Even in tough times, businesses need to be forward thinking, keep pace with their competitors and invest in the future of their companies," Khanna said.


India’s forex reserves rise by $589 billion

India's foreign exchange (forex) reserves grew by $589 billion to $287.34 billion for the week ended July 20, central bank data showed. Foreign currency assets, the biggest component of the forex reserves kitty, increased by $565.5 billion to $255.10 billion for the week under review, according to weekly statistical supplement released by the Reserve Bank of India (RBI). 
The RBI did not provide any reasons for the growth. It said the assets in US dollar terms included the effect of appreciation or depreciation of non-US currencies such as the pound sterling, euro and yen held in reserve.  The country's forex reserves had declined by $872.7 million in the previous week under review. The value of special drawing rights (SDRs) grew by $15.8 million to $4.34 billion during the week ended July 20, while India's reserves with the International Monetary Fund (IMF) rose by $7.7 million to $2.13 billion. 


Indian Overseas Bank seeks Rs 1,500 cr capital

Indian Overseas Bank (IOB) said it would require around Rs 1,500 crore recapitalisation support from the government in the current fiscal. "We find a gap of around Rs 1,500 crore apart from ploughing back of profits for the current year and we expect the government will continue support like the previous year," IOB Chairman and Managing Director M Narendra said here today on the sidelines of banking conclave 2012 organised by FICCI. 
He added that there is no concrete plan on alternate methods of raising capital in case the government did not fulfil the Rs 1,500 crore demand. The bank has taken shareholders approval to raise a little over Rs 401 crore. It has various options, including Qualified Institutional Placement ( QIP), to raise the money. Speaking about the proposed $500 million issue of MTN, Narendra said, "We will do it shortly and will initiate it after State Bank does in it August." MTN are medium term notes or loans in foreign currency deployed to Indian firms for overseas investment activities. The bank is aiming at Rs 4,00,000 crore business with growth target of 18-20 per cent in advances and deposits. IOB would continue to pursue overseas expansion and is planning presence in Vietnam along with Bank of India.


Sterlite Industries Q1 net dips 27% to Rs 1,202 cr

Sterlite Industries (India) today reported nearly 27% dip in consolidated net profit at Rs 1,202 crore for the first quarter ended June 30, due to losses from forex, associate firm and higher interest outgo. SIL had clocked Rs 1,640 crore net profit in April-June quarter of the last fiscal."During Q1, profits were impacted by mark to market loss of Rs 217 crore on foreign currency loans and higher interest costs of Rs 78 crore," SIL said in a statement. It has lost Rs 167 crore incurred by an associate company during the quarter. It has lost Rs 167 crore incurred by an associate company during the quarter.
Net sales of the company during the reporting quarter were up by eight% at Rs 10,591 crore, primarily due to rise in volume of lead, silver and zinc in India, commercial power and copper as compared to Rs 9,863 crore in the year- ago period. However, its EBITDA was down by 15% to Rs 2,337 crore, due to lower metal prices, lower sales at Balco and higher production cost. Total expenses of the company, including the cost of raw material consumed, was higher at Rs 9,076 crore compared to Rs 7,532 crore a year ago.


Rahul to set for more important role


It may be a while before Rahul Gandhi moves in as the general, but his troops are already been moved to take charge. Four Youth Congress members, all known to be Rahul's wards, have been elevated to the party's state units, and are in line for important posts. The graduation from youth members to leadership positions in the big league coincides with Rahul's impending move as the de facto Congress numero uno. 
Sources said Baptu Chakraborty, Amarendra Singh Raja, Paresh Dhanani and Jothimani — general secretaries in the Youth Congress — are set to branch out to mainstream state units. Chakraborty, Raja and Dhanani will be general secretaries in Tripura, Punjab and Gujarat, respectively. Jothimani will be the new president of Mahila Congress in Tamil Nadu. 
This is the first instance of Rahul Gandhi's charges taking responsibility in the main Congress and comes at a time when the demand for him to take the party reins is gathering momentum. Congress circles see the elevation of the young leaders as a precursor to what might unspool later, with Rahul's proteges taking charge of crucial stations in the party, perhaps at the old guard's expense. To observers, this is seen as absorption of apprentices from the "training school". The process could become institutionalized in future once Rahul calls the shots in the AICC. 
Rahul has a legion of such workers, whom he groomed after taking charge of the youth outfit as AICC general secretary. They caught his eye as he tried to reinvent the jaded frontal bodies. The shift to the mother outfit marks the mainstreaming of Youth Congress which remained walled off under Rahul, because of the belief that attempts to reinvent the outfits could be hampered by the influence of the older guard resistant to change. "It means empowerment of youth. It also shows that youth politics is not an end in itself but part of the larger Congress programme," a senior leader said. Youth Congress's attempt to acquire an independent profile had made the party elite jittery. The election of its office-bearers gave a halo to the winners, and it raised fear among senior leaders that the youngsters could replace them soon.


SP disowns Shahid Siddiqui


The Samajwadi Party has distanced itself from Shahid Siddiqui, saying he is no longer a part of the party two days after his interview with Gujarat Chief Minister Narendra Modi made waves. "The party wants to clarify that Siddiqui had left SP long back and joined BSP on whose ticket he contested Lok Sabha election from Bijnor," party's national general secretary and spokesman Ram Gopal Yadav said in a statement issued here.
He said that later Siddiqui joined the Rashtriya Lok Dal. "Siddiqui is not a SP member and has nothing to do with the party," Yadav said, asking the media not to project him as SP leader. Yadav said terming Siddiqui as a SP leader was "outrightly wrong" and he is even not a member of Samajwadi Party. Siddiqui, who has a large clout among the people of Muslim community has been termed as unknown figure for the party.
Siddiqui, who is the editor of Urdu weekly Nai Duniya, had recently interview Modi in which the Gujarat Chief Minister had refused to apologise for the post-Godhra riots and instead said he would prefer to be hanged if found guilty.
In an image makeover exercise, Modi had said in the interview, "If my government had done this (post-Godhra riots), I should be hanged in public in such a way that it remains a lesson for the next 100 years so that nobody dares to do it (such a crime)". Siddqiqui was a SP MP before he joined the RLD only to rejoin the Samajwadi Party in January this year.


Nokia appoints P Balaji as the new managing director

Handset maker, Nokia India has hired P Balaji managing director of Sony Mobile Communications India as the new MD. After losing the top slot in the Indian market during last two years, Nokia is working on a major comeback by launching new models with some attractive offers. The company had seen erosion in its market share from about 75% a few years ago to about 39% now, according to some estimates. The company is investing in high-decibel advertising such as Kolkata Knight Riders to Channel V's Nokia India fest, and social media campaign . It is also betting on operating systems-the Windows phone, officials said. The Finnish handset giant Nokia announced its global turnaround strategy last year that included exploiting the rapidly shifting market in smartphones, to profit from its new partnership with Microsoft and to develop services based on its own assets. 


Rajeev Tewari appointed director Canon India

Printing and imaging solutions provider Canon India announced the appointment of Rajeev Tewari as Director of its CSP group. The Canon System Products (CSP) group comprises of inkjet product division, laser product division and system integrators division. 
He replaces VP Sajeevan, who led the CSP group for over five years. Prior to the new role, Tewari headed the wide format imaging division. "Rajeev's decade long association with Canon has been that of exceptional understanding of technology and customers. We are confident that under his leadership, the CSP group will benefit greatly," Canon India Senior Vice President Alok Bharadwaj said.


Ambit appoints Premal Doshi to head markets division

The Ambit group said it has strengthened its corporate finance team by inducting Premal Doshi as the head of its equity markets team. Premal will report into Ambit chief executive Sanjay Sakhuja, the company said in a release. Premal, a chartered accountant and a cost accountant by qualification, has over 20 years of experience, and joins Ambit from Antique Capital Markets. Prior to Antique he was with Motilal Oswal, Anand Rathi Securities, Lazard and JP Morgan. 


SSebi appoints Murlidhar Rao as Executive Director

Market regulator Sebi has appointed S V Murlidhar Rao as its new Executive Director to fill a vacancy created by the recent exit of Usha Narayanan. Rao was a Chief General Manager in Sebi's Markets Regulations Department till recently, but his portfolio as an Executive Director could not be immediately ascertained. 
A post of Executive Director fell vacant at Securities and Exchange Board of India (Sebi) after the recent exit of Usha Narayanan, who was heading the regulatory authority's corporation finance department. Narayanan left Sebi late last month, prior to which she has held various senior positions in a number of departments including those dealing with FIIs, investigations, primary markets and intermediaries.


Anand Trivedi appointed as Director of MMTC


State-owned trading company MMTC said Anand Trivedi has been appointed as Director, Marketing. He took charge on July 3, after the incumbent H S Mann retired in July last year. "Anand Trivedi, ex-Chief General Manager, in MMTC has assumed the charge of Director (Marketing), w.e.f. July 3, 2012," the company said in a BSE filing. In July last year, Additional Secretary in the Commerce Ministry Vijay Laxmi Joshi had taken over as CMD of the company, replacing Mann. She assumed the new responsibility as an additional charge till a regular CMD is appointed or until further orders, whichever is earlier. 


Bhattacharya appointed as director, UBI

The government has appointed A Bhattacharya as the Director of the Union Bank of India with immediate effect. "Union Bank of India has informed BSE that the central government...has nominated A Bhattacharya, joint secretary, Department of Financial Services, as Director of Union Bank of India in place of Rajesh Khullar, with immediate effect and until further order," the bank said in a BSE filing.


Nagendra Murthy appointed MD of TMB

TMB has promoted one of its general managers as managing director and CEO effective July 3, the first time in many years that the 90-year-old private sector bank has elevated an existing employee to the top post.  Nagendra Murthy, GM (Credit) of the bank, has been named the new MD. The vacancy was left open after AK Jagannathan quit in February, ending a one-and-a-half-year stint. Three outsiders were in race for the post. Murthy started his career as a probationary officer in Indian Bank, Mumbai, in 1973. The bank, headquartered in Tamil Nadu's coastal town of Tuticorin, is a stronghold of the Nadar community who have a fierce sense of ownership of the bank. It has been in the news often for a longstanding ownership tussle. 


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Saturday, 1 December 2012

Looking beyond hydel Power

With the scope of establishing more hydel projects in the state turning remote and  the power needs soaring day by day, the State Government is finally looking towards other avenues, which remained hitherto undertapped. On top of it is a proposal to generate 1000 MW of wind power, from 17 potential locations identified through data from Wind Monitoring Stations.
Power Minister Aryadan Mohammed told the Assembly that the government was adopting a comprehensive policy to address the power needs of the state from a futuristic perspective, inclusive of promoting private entrepreneurs in the non-conventional energy field. Elaborate studies have been conducted with the help of Centre for Wind Energy Technology (C-WET), functioning under Union Non-Conventional Energy Ministry. Based on the analysis of data collected for three years from the Wind Monitoring Stations, it has been found that there is immense scope for tapping wind power, especially in Idukki and eastern Palakkad. Stations functioning at Kanjikode in Palakkad and Vandiperiyar in Idukki are collecting data from a height of 80 metres, he said and added that plans to establish more stations at various locations were under consideration.
Aryadan said that the government had inked an MoU last year with the NTPC for starting wind power-based projects aimed at generating 200 MW power, out of which, 80 MW will come from windmills in the Ramakkalmedu belt in Idukki. For a start, a project for 10 MW generation is nearing completion. To enlist private participation in the initiative, detailed guidelines have been issued, he said. The Minister also said that tapping solar power was also important for a state like Kerala against the backdrop of proven results that solar panels with a one kilowatt installed capacity can deliver five units of electricity.
Setting a replicable model for the state, solar panelling will be taken up in the state Secretariat and Legislative Assembly complex. In the second phase, important district-level offices will also be brought under solar power, he said. The government is also pursuing LNG-based thermal power plants, which have been mooted. A proposal is also there for a coal-based thermal power plant, with expected allocation of coal from Bytharani coal fields in Odisha. Accepting the pointer raised by his predecessor A K Balan that a vicious campaign had been unleashed by some quarters against GAIL's proposed 1,250 kilometre-long Kochi-Koottanadu-Bangalore LNG line, Aryadan said that the stance might cripple the development hopes of Kerala as a whole.
"'3,500 cr has been set apart for the project by the Centre. With the adverse campaign, the future of the state will turn bleak,'' Aryadan feared. The Minister reminded that the state had been able to generate only 100 MW of power during the whole of 11th Five year Plan period, when the country generated 55,000 MW of energy from various sources during that period.


Politics: The National Game

The country needs fresh faces at the top of government if it is to run its economy better.


CHEERS! Pranab Mukherjee is appointed  as the India's new president. As finance minister until recently, the veteran leader of the Congress party presided over a wretched deterioration in the country's economic prospects. Now there is a chance that those left behind may redirect a government that has badly lost its way.
Poll victories have become rare indeed for the increasingly unpopular ruling party. Yet an electoral college of nearly 5,000 national and state legislators was all but certain, on July 19th, to give Mr Mukherjee a five-year presidency that is largely ceremonial. That was thanks, in part, to mercenary motives: leaders of two crucial, populous, swing states, Uttar Pradesh and Bihar, fell behind Mr Mukherjee as the central government promised aid worth some $12 billion.Congress has been beset by scandal, is led by oldies and has grown generally clumsy of late. But for this election at least, it showed a flash of its once-deft self. 
By contrast, twinkly-eyed and veterian Mr Mukherjee, who has spent four decades at the summit of Indian politics, has influence that extends, across Delhi and beyond. On rare occasions, the presidency has moments of great power. A hung parliament is almost certain after the next general election in 2014, when the president may pick which party tries first to form a coalition. Those tentacles could prove handy for a diminished Congress.
More important, with Mr Mukherjee booted upstairs Congress could try getting government to function again. The 76-year-old's three-year spell as finance minister was ignominious. He oversaw GDP growth that fell to 5.3% in the first three months of this year, from over 8% just over a year before; high inflation; a collapsing rupee; surging deficits and a fiscal mess. Plans for vague and retrospective taxes dismayed investors, foreign and local. Worse, he bungled urgent reforms, notably over opening foreign investment in the retailing industry, and failing to push through a goods and services tax and to cut costly subsidies.
It was not all his fault, however. A cabinet minister, Salman Kurshid, bravely admitted the obvious this month, calling the government directionless. He did not need to spell out that Manmohan Singh, the elderly prime minister, cannot impose his will, nor that populists like West Bengal's Ms Banerjee block reform. Meanwhile there is administrative paralysis in the face of corruption scandals.
With Mr Mukherjee's ascent, a reshuffle will follow. Mr Singh, as a stand-in finance minister, has made welcome noises about getting the economy's “animal spirit” moving again. He could next bring back P. Chidambaram, the 66-year-old home minister, who presided over finance for most of Congress's first term (2004-09), when the economy roared. Or he could call on Montek Singh Ahluwalia, the brainy head of planning.
Either would be an improvement. Less likely, but more daring, would be to skip a generation and let younger leaders take bigger jobs—elevating Jairam Ramesh who languishes at rural affairs, Anand Sharma at trade, or possibly a real youngster, such as Sachin Pilot or RPN Singh. A dream political change would signal that new leaders, less tainted by graft, would try to restore public finances, push through reform and promote growth.
India's mood is waiting to be lifted. Local firms wallow in cash, hungry for a chance to invest, but they need predictability about policy and decision-making. The 100 biggest by market share are hesitating, having doubled their cash holdings since 2009 to some 104 billion rupees (around $1.8 billion). Foreign firms, even in infrastructure and consumer goods, also hold back, unsure of the politics.
Yet expecting decisive change from Congress's behemoth is probably a fantasy. The instincts of Sonia Gandhi, the party's president, are to seek votes from villagers (who still make up two-thirds of the population), with promises of welfare, make-work schemes and food rations. It would take skilful manoeuvring to do that and also promote bold, liberalising reforms, such as cutting fuel subsidies. More troubling, sycophancy to the Gandhi dynasty dictates that no young figure can outshine the bashful 42-year-old heir apparent, Rahul Gandhi, who had largely been absent from high-profile politics since a thumping defeat in important state polls in Uttar Pradesh in March.
Some in Congress say he will be back to take a big political role. On July 19th, after casting his vote in the presidential election, he confirmed this, saying he is ready to play a “more active role in party and government.” That is striking, given an earlier refusal to join Mr Singh's administration. It will immediately raise expectations that he is preparing to lead Congress for the vote in 2014. 


Tuesday, 11 September 2012

Sanofi India Q2 net dips 18.51% to Rs 40.5 cr

Total income of the company, however, rose to Rs 383 cr from 322 cr in the same period last yearDrug firm Sanofi India today said its net profit dipped by 18.51% to Rs 40.5 crore for the quarter ended June 30, 2012 mainly on account of amortisation costs. The company had posted a net profit of Rs 49.7 crore for the same period previous fiscal, Sanofi India said in a filing to BSE.Total income of the company, however, rose to Rs 392.6 crore for the reported quarter from Rs 322.3 crore for the same period year ago.
"The profit for the quarter and half year ended June 30, 2012 has been impacted due to the amortization costs relating to brands and the technical know-how required in 2011 from Universal Medicare Private Ltd and lower interest income as a result of the above investment," the company said. In another filing to BSE, the company said its board of directors has declared an interim dividend of Rs 4 per equity share of Rs 10 for the financial year ending December 31, 2012. The interim dividend will be paid on August 16, 2012.


Nokia appoints P Balaji as the new managing director

Handset maker, Nokia India has hired P Balaji managing director of Sony Mobile Communications India as the new MD. After losing the top slot in the Indian market during last two years, Nokia is working on a major comeback by launching new models with some attractive offers. The company had seen erosion in its market share from about 75% a few years ago to about 39% now, according to some estimates. The company is investing in high-decibel advertising such as Kolkata Knight Riders to Channel V's Nokia India fest, and social media campaign . It is also betting on operating systems-the Windows phone, officials said. The Finnish handset giant Nokia announced its global turnaround strategy last year that included exploiting the rapidly shifting market in smartphones, to profit from its new partnership with Microsoft and to develop services based on its own assets. 


Saturday, 1 September 2012

Bajaj Electricals Q1 net up 8% at Rs 12 cr

Bajaj Electricals today reported 8.32% increase in net profit for the quarter ended June 30 at Rs 11.98 crore. The company had posted net profit of Rs 11.06 crore in the corresponding period last year, Bajaj Electricals said in a filing to the BSE.The net income during the first quarter of the fiscal also went up by 22.38% to Rs 666.19 crore from Rs 544.36 crore in the year-ago period, it added.


Jyothy Laboratories Q1 net up 26% at Rs 18 cr

FMCG firm Jyothy Laboratories said its net profit rose by 25.67% to Rs 17.62 crore for the first quarter ended June 30, 2012. The company had posted a net profit of Rs 14.02 crore during the same period of previous fiscal, Jyothy Laboratories Ltd (JLL) said in a statement.Net sales of the company rose by 70.63% to Rs 209.86 crore for the first quarter as compared to Rs 122.99 crore reported in the corresponding period of last fiscal.
Commenting on the results, JLL Chairman and Managing Director M P Ramachandran said: "We are on the right path of growth and the merger of Henkel India Limited with Jyothy is one such step. The integration of Henkel with Jyothy is being completed". Jyothy Laboratories markets various brands, including Ujala, Maxo, Exo and Henko.


Tata Tele Maharashtra's Q1 net loss widens at Rs 163 cr

Tata Teleservices (Maharashtra) said its net loss has widened at Rs 162.66 crore for the first quarter ended June 30, 2012. The company had reported net loss of Rs 119.32 crore for in the year-ago period."The Company has considered Rs 154.86 crore, being the LF (Licence Fee) on profit on sale of investment and bad debts written off during the earlier year, as contingent liability and has also made payment of the same to Department of Telecommunications under protest," TTML said in a statement.
However, revenue of the company rose by 11.78% at Rs 659.48 crore during the quarter compared to Rs 584.98 crore it reported in the corresponding period last year fiscal. "The company maintained a strong focus on wireless broadband services. Its VAS (value added services) and data revenues accounted for 35% of total wireless revenues in Q1 FY13," the statement said.


Sterlite Industries Q1 net dips 27% to Rs 1,202 cr

Sterlite Industries (India) today reported nearly 27% dip in consolidated net profit at Rs 1,202 crore for the first quarter ended June 30, due to losses from forex, associate firm and higher interest outgo. SIL had clocked Rs 1,640 crore net profit in April-June quarter of the last fiscal."During Q1, profits were impacted by mark to market loss of Rs 217 crore on foreign currency loans and higher interest costs of Rs 78 crore," SIL said in a statement. It has lost Rs 167 crore incurred by an associate company during the quarter. It has lost Rs 167 crore incurred by an associate company during the quarter.
Net sales of the company during the reporting quarter were up by eight% at Rs 10,591 crore, primarily due to rise in volume of lead, silver and zinc in India, commercial power and copper as compared to Rs 9,863 crore in the year- ago period. However, its EBITDA was down by 15% to Rs 2,337 crore, due to lower metal prices, lower sales at Balco and higher production cost. Total expenses of the company, including the cost of raw material consumed, was higher at Rs 9,076 crore compared to Rs 7,532 crore a year ago.


Mobile banking deals increases to Rs 286 cr in May

Banking transactions through mobile phones have more than trebled to Rs 286 crore during May on account of a higher number of users with hand-held devices. The value of such transactions stood at Rs 91 crore in May 2011, according to the Reserve Bank.The number of bank transactions through mobiles also grew over two-and-half times to 3.34 million in May, 2012 from 1.28 million in May, 2011.
As number of mobile phone subscribers are growing rapidly, banks in collaboration with telecom companies are seeking to develop an alternate channel for the delivery of banking services as a part of the financial inclusion programme. As on May 31, 2012, the RBI has permitted 69 banks to provide mobile banking services to their customers.
However, the central bank feels the growth rate is low when compared with the number of bank accounts and the number of mobile subscribers. "Even though the value and volume are increasing on month on month basis, the growth rate is low when compared with the number of bank accounts and the vast mobile subscriber base of more than 900 million," said Harun R Khan, Deputy Governor, RBI in a speech on Financial Inclusion recently. 
This indicates that banks are yet to fully exploit this technology even for their existing customers, he said adding that RBI has provided policy framework for a collaborative relationship between banks and mobile network operators. Banks allow fund transfers both for personal remittances and purchase of goods and services without any ceiling as per mobile banking guidelines of the RBI. The rapid growth in users and wider coverage of mobile phone networks have made this channel an important platform for extending banking services to customers.
Banks also offer information based services like balance enquiry, stop payment instructions of cheques, transactions enquiry, location of the nearest ATM and branch through mobile banking. Some banks offer services like acceptance of transfer of funds instruction for credit to beneficiaries of same or another bank in favour of pre-registered beneficiaries. However, there are technology and security related challenges to deliver financial services through information and communication technology (ICT) based models.


Lupin looks to acquire brands in the US

Drug major Lupin is looking to acquire brands and technology firms to increase reach in the US market as the company aims to grow sales by over 20 per cent in the world's most lucrative drug market over the next two years. "We are looking to acquire brands in the US market and and also eyeing companies that are based on technology platform," Lupin Ltd Managing Director Kamal K Sharma told Press Trust of India.
He said the company would grow over 20 per cent in the US aided by enhancement of speciality business, including oral contraceptives portfolio. "We should grow at 20 per cent year-on-year for the next two years. We are following a three pronged strategy which includes addition of more value added products, increasing reach and acquisitions," Sharma said.
He, however, did not share details on the brands or companies which the company plans to acquire in the US market. Lupin's US formulations revenue grew 22 per cent to Rs 2,530.3 crore during FY2012 as compared to Rs 2,079.8 crore in FY2011.
During 2011-2012 fiscal, the company also entered the US oral contraceptives space and has already launched three products in the segment. The company, which seeks to evolve into a speciality pharma company has gone beyond generics and has started filing for approvals for niche speciality segments like high-end dermatological products.
The company is also looking to target the anti-asthama and chronic obstructive pulmonary disease (COPD) therapy segments. On the Latin American and north American market, Kamal k. Sharma said: "We are trying to get deeper into the continent." Lupin had entered Latin American market over a year ago by setting up a subsidiary, Lupin Mexico SA de CV, which has started filing products for the market. The company would be addressing the branded and the generic pharmaceutical space within the Mexican market, the company had said earlier.


49 hydro electric projects to generate 13,000 MW of power

There are 49 hydro-electric power projects under execution or at a planning stage in the country with a capacity of 13,000 MW costing about Rs 80,000 crore, Hydro Project Monitoring Division of Ministry of Power has said. Replying to the queries raised by an RTI, the Ministry said that there was only one project planned in Maharashtra that of Koyna Left Bank which would be taken up in the 13th five year plan to generate 80 MW of power and would cost Rs 245 crore. The ministry informed that there were 16 projects underway in the Central sector that would generate 7,773 MW of power and would cost Rs 47,770 crore and another 16 projects in the State sector which would generate 1,688 MW of power and would cost Rs 11,295 crore. In the private sector, a total of 17 projects are under way and they would generate 3570 MW of power and would cost Rs 21,201 crore, according to the ministry. Of the total planned projects, the lion share has gone to Himachal Pradesh with 12 plants which are expected to generate 3,282 MW of power and cost Rs 20,123 crore followed by Sikkim with 10 plants to generate 2421 mws of power and cost Rs 13802 crore. 


Indian Overseas Bank seeks Rs 1,500 cr capital

Indian Overseas Bank (IOB) said it would require around Rs 1,500 crore recapitalisation support from the government in the current fiscal. "We find a gap of around Rs 1,500 crore apart from ploughing back of profits for the current year and we expect the government will continue support like the previous year," IOB Chairman and Managing Director M Narendra said here today on the sidelines of banking conclave 2012 organised by FICCI. 
He added that there is no concrete plan on alternate methods of raising capital in case the government did not fulfil the Rs 1,500 crore demand. The bank has taken shareholders approval to raise a little over Rs 401 crore. It has various options, including Qualified Institutional Placement ( QIP), to raise the money. Speaking about the proposed $500 million issue of MTN, Narendra said, "We will do it shortly and will initiate it after State Bank does in it August." MTN are medium term notes or loans in foreign currency deployed to Indian firms for overseas investment activities. The bank is aiming at Rs 4,00,000 crore business with growth target of 18-20 per cent in advances and deposits. IOB would continue to pursue overseas expansion and is planning presence in Vietnam along with Bank of India.


Jaideep Bhattacharya appointed as MD Baroda Pioneer Asset Management Company

Jaideep Bhattacharya has been appointed as MD Baroda Pioneer Asset Management Company. Jaideep was formerly group president and chief marketing officer at UTI Mutual Fund.He was part of the core management team,driving the overall sales and marketing strategy for the fund house.Prior to UTI, he was with ICICI Bank as country head,products,channels & marketing of the SME group. "BPAMC continues to see its assets grow - over the last quarter the business saw a 31.5% increase in AUM, moving up its overall ranking from 25th place to 20th place. With Jaideep now on board, we are confident that the BPAMC business which has great potential, is ideally placed to become one of the top players in the market," said M D Mallya, Chairman & Managing Director, Bank of Baroda in a press statement.


Shyamal Bhattacharya takes over as the Director (Operations), at ONGC Videsh

Shyamal Bhattacharya has taken over as the Director (Operations), at ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC). Bhattacharya, a geoscientist, has held various key positions during his postings at different locations across the country in ONGC, the company said in a statement. "A graduate in Petroleum Engineering from Indian School of Mines, Dhanbad, Bhattacharya has more than three decades of diversified experience in reservoir engineering, reservoir simulation, water flooding, increased oil recovery (IOR) & enhanced oil recovery (EOR) techniques and reservoir operations," it said.  In his previous role as the Head of Institute of Reservoir Studies, Ahmedabad he was instrumental in leading a team of around 250 geoscientists, facilitating formulation of development schemes of oil and gas fields of ONGC across the country. 


Ambit appoints Premal Doshi to head markets division

The Ambit group said it has strengthened its corporate finance team by inducting Premal Doshi as the head of its equity markets team. Premal will report into Ambit chief executive Sanjay Sakhuja, the company said in a release. Premal, a chartered accountant and a cost accountant by qualification, has over 20 years of experience, and joins Ambit from Antique Capital Markets. Prior to Antique he was with Motilal Oswal, Anand Rathi Securities, Lazard and JP Morgan. 


Rajeev Tewari appointed director Canon India

Printing and imaging solutions provider Canon India announced the appointment of Rajeev Tewari as Director of its CSP group. The Canon System Products (CSP) group comprises of inkjet product division, laser product division and system integrators division. 
He replaces VP Sajeevan, who led the CSP group for over five years. Prior to the new role, Tewari headed the wide format imaging division. "Rajeev's decade long association with Canon has been that of exceptional understanding of technology and customers. We are confident that under his leadership, the CSP group will benefit greatly," Canon India Senior Vice President Alok Bharadwaj said.


Sebi appoints Murlidhar Rao as Executive Director

Market regulator Sebi has appointed S V Murlidhar Rao as its new Executive Director to fill a vacancy created by the recent exit of Usha Narayanan. Rao was a Chief General Manager in Sebi's Markets Regulations Department till recently, but his portfolio as an Executive Director could not be immediately ascertained. 
A post of Executive Director fell vacant at Securities and Exchange Board of India (Sebi) after the recent exit of Usha Narayanan, who was heading the regulatory authority's corporation finance department. Narayanan left Sebi late last month, prior to which she has held various senior positions in a number of departments including those dealing with FIIs, investigations, primary markets and intermediaries.


Anand Trivedi appointed as Director of MMTC

State-owned trading company MMTC said Anand Trivedi has been appointed as Director, Marketing. He took charge on July 3, after the incumbent H S Mann retired in July last year. "Anand Trivedi, ex-Chief General Manager, in MMTC has assumed the charge of Director (Marketing), w.e.f. July 3, 2012," the company said in a BSE filing. In July last year, Additional Secretary in the Commerce Ministry Vijay Laxmi Joshi had taken over as CMD of the company, replacing Mann. She assumed the new responsibility as an additional charge till a regular CMD is appointed or until further orders, whichever is earlier. 


Bhattacharya appointed as director, UBI

The government has appointed A Bhattacharya as the Director of the Union Bank of India with immediate effect. "Union Bank of India has informed BSE that the central government...has nominated A Bhattacharya, joint secretary, Department of Financial Services, as Director of Union Bank of India in place of Rajesh Khullar, with immediate effect and until further order," the bank said in a BSE filing.


Nagendra Murthy appointed MD of TMB

TMB has promoted one of its general managers as managing director and CEO effective July 3, the first time in many years that the 90-year-old private sector bank has elevated an existing employee to the top post.  Nagendra Murthy, GM (Credit) of the bank, has been named the new MD. The vacancy was left open after AK Jagannathan quit in February, ending a one-and-a-half-year stint. Three outsiders were in race for the post. Murthy started his career as a probationary officer in Indian Bank, Mumbai, in 1973. The bank, headquartered in Tamil Nadu's coastal town of Tuticorin, is a stronghold of the Nadar community who have a fierce sense of ownership of the bank. It has been in the news often for a longstanding ownership tussle. 


K N Srivastava TO BE APPOINTED NEW SECRETARY CIVIL AVIATION

Senior IAS officer K N Srivastava will be the new secretary in the Ministry of Civil Aviation after incumbent S N A Zaidi retires this month-end.  Srivastava, a 1978 batch officer of Karnataka cadre, is currently Special Secretary and Financial Adviser in the Ministry of External Affairs. The Appointments Committee of the Cabinet (ACC) has also approved the appointment of Arvind Mayaram, a 1978 batch IAS officer of Rajasthan cadre, presently Special Secretary, and Financial Adviser, Department of Rural Development, Ministry of Rural Development as Secretary, Department of Economic Affairs, Ministry of Finance. 


Dr. Arvind Lal, CMD, Dr. Lal Pathlab


TE: Tell us something about your business: 
DR. ARVIND LAL: This pathology laboratory was started by my late father, Dr. (Major) S. K. Lal in 1949. I took over the lab after he died in 1977, till then I was a Lecturer in Pathology & Microbiology, Armed Forces Medical College, Pune. At that time we were testing about 30 patients every day. Now the number of patients has risen to 22,000 per day! This has been made possible due to the fact that we are running about 100 laboratories and about 1,000 collection centres all over India. We have also recently operationalised Asia's biggest lab at Rohini, New Delhi. We employ about 2,500 people including 110 pathologists. This rapid advancement in our testing facilities has been made possible due to the fact that modern medicine is absolutely evidence based and that lab tests are responsible for 70% of all medical decisions. 
TE: Being a successful entrepreneur, what does the term achievement mean to you?
DR. ARVIND LAL: Achievement means that hard work begets success. At the same time it means that there is a lot more to be achieved given the fact that majority of our countrymen do not have access to quality clinical testing facilities. As 'Life Style' diseases like Diabetes, High Blood Pressure, Heart Disease, Obesity, Cancer, Kidney and Liver diseases are going to be rampant and will account for majority of deaths in the future, my work has just begun. I consider it my divine duty to save as many lives as possible by carrying out preventive health testing. Any abnormality detected at our level has a very high degree of possibility of complete reversal. In other words, timely testing and altering of bad life styles will make a much healthier and of course, prosperous India. 
TE: Who has been your inspiration in reaching such heights in your career? Do you have a role model? 
DR. ARVIND LAL: I have greatly been influenced by my late Guru  Baba Hairakhan also known as the Mahavatar Baba or the Immortal Baba. He taught me that the fastest path to godliness in Kalayuga was by practicing 'Karmayoga and Japayoga'. This means doing one's duty and constantly chanting the gods' name. My role model would be late Sardar Vallabhbhai Patel who reunited India after the departure of the British. 
TE: What is your special message for the youth of today who wish to be successful entrepreneurs like you?
DR. ARVIND LAL: My special message to the youth would be to dream high and aim higher. Also, to have a laser focus on your goals and to use only the highest ethics and morality in achieving your goals. 
TE: Your marketing strategy and intended goal?
DR. ARVIND LAL: My marketing strategy would be to give the patient best possible service in addition to giving him the most accurate report possible. He should always have a pleasant experience whenever he visits any of our labs or collection centres. 
TE: They say that success is a combination of inspiration, perspiration and an element of luck. What is your take on that? 
DR. ARVIND LAL: It is 99% perspiration and 1% inspiration and luck. To learn from your mistakes. 
TE: How do you see yourself two years down the line?
DR. ARVIND LAL: I see myself slightly older, hopefully wiser and a better human being!


ON PERSONAL FRONT:


What do you do for relaxation from your hectic schedule?
Half and hour of morning prayers followed by one hour of brisk walking in the Deer Park, Hauz Khaz with my wife, Dr. Vandana Lal.
Tell us about your hobbies/interest and how you manage your time to pursue them.
My interest is in security matters that confront our country. I am fairly knowledgeable about strategic matters and have a good knowledge of modern weapons systems. I can tell about the missiles and nuclear warheads that will be used in case of the World War III. Also, I am an ardent photographer and love to shoot people and landscapes. I can shoot pictures and read whenever I go on holiday.
Which city would you choose to visit for a leisure trip?
I am most happy when I visit Ranikhet! It is so close to snow clad mountains and is 'Dev Bhumi'  a natural place to meditate. 
One thing that you wish to do for the betterment of the society.
Banishing illness and making a healthier and a happier society. 
Do you think that every citizen needs to show his concern for the country in whichever way he/she can? Do small contributions like this go a long way?
Yes, I do believe that a contribution, however small, can make a significant change in the outcome of events. A case in point would be the movement led by Anna Hazare. If all the people of India said NO to corruption, then India would truly get rid of corruption one day. 


We regard employees as the most important asset

Mr. S.P. SINGH, DIRECTOR (HUMAN RESOURCE) of NTPC  has performed a very vital role in the success of the company as a true leader. His HR policies has been always conducive to the growth of employees as well as the Company. In an interview with Today's Economics, he says HRM is a relevant term for NTPC, as it has helped the company to conduct business and achieve the organizational goals by adopting better HR practices. Excerpts from an interview:-



TE: How important is an employee to your organization?
NTPC: An employee to our organization is the most important asset. We value both our employees and their family,  and strive to keep them happy by catering to their professional and personal needs.
TE: What is your HR strategy to integrate HR practices with organization's vision and synchronize its efforts with organisational goals?
NTPC: Our HR policies have always aimed at facilitating the vision and goals of the organization. HR today is moving from the role of a facilitator to a Strategic Business Partner. 
Our HR policies and practices have a sharp focus on productivity improvement. At the beginning of our journey we operated with PLF of about 80% and now we have graduated to above 90% at all locations. This has been possible through various innovative skill development practices in Operation and maintenance. From a Man-megawatt ratio of above 1 we have brought it down to less than 0.71 and in the coming years we are looking at meeting the international benchmark of less than 0.3 Man-megawatt Ratio. Such development is a result of the policies and practices that evolved with the changing market scenario and the integration of our HR  policies with the vision of the company to be the world's best and the largest power producer.
TE: Retention and Attrition both now a days has become a crucial part of HR management. What are your policies to retain employees?
NTPC: Although the rate of Attrition at NTPC is less than 1% which may not be taken as alarming. However, we are putting best efforts to make are locations more attractive as a place of posting by providing urban facilities at such location. We have been taking regular feedback from our employees through the system of annual surveys on various policies and practices of the company to closely monitor the employee satisfaction with the same. Recently our CMD has also announced introduction of certain urban facilities such as wifi, DTH and e-book readers  at projects to make them more attractive as a place of posting . The requirement for this urban facility addition was also collected through survey of the employees who have joined NTPC in the last 4-5 years to cater to the requirement of Gen Y! 
Through initiatives such as QC, PC and NOCET we have involved employees in decision making process for further improvement in productivity and planning the future course of the company. Through different participative forums we have built a culture of participative management. Our welfare measures and other HR policies are the best ranked amongst PSUs and it is the result of this that we have been able to continuously attract the right kind of talent to meet our Human Resource requirement. We provide ample opportunities to our employees to learn and grow in the organization through our Sponsorship programmes for M. Tech and MBA, facility for study leave and Financial Incentive for higher education. Our compensation structure is best in class while the Medical Facility both while in service and the Post Retirement Medical Scheme(PRMS) has proved to be our USP.
TE: How does better HR policies helps in achieving efficiency and better results?        
We have an exhaustive Reward and Recognition Policy to identify and suitably reward the exemplary performance of employees on various occasions by the Business Unit  Heads. Even at the time of training of fresh recruits the Executive Trainees are rewarded for their outstanding performance in the training period. 
Employees who are awarded at national level forums such as Prime Minister's Shram Awards are felicitated personally by the CMD and the same is telecast live through cable TV and circulated through our electronic house journal e-varta at all projects giving their achievements wider recognition.  At projects the BUH felicitate the achievers and exceptional performers on occasions such as Republic Day and Independence Day celebration applauding their achievements in public.
Our compensation package is amongst the best in industry . We have the practice of completing at least 7 mandays of training  per employee per year as per his TNA( Training Need Analysis). Platforms such as HRD Meets, QC, PC and NOCET are provided to employees for sharing of best practices in various areas, both within and outside the company. Our Policy on transfer and job-rotation also aims at placing the right man at the right time on the right job by mutually looking at both the company's requirement and the employee's interests and career growth plans. All these policies and practices significantly motivate our employees to raise their efficiency and put in more than 100% effort in the interest of the company.
TE: What are the general HR policies of NTPC?
In the last three decades and a half we have formulated policies for every aspect of Human Resource management, from compensation to welfare and from Employee relation to Employee Development. We have a comprehensive performance appraisal system on the ERP platform that also takes care of the timely communication of score and performance. 
Our welfare policies aim at gainfully engaging not only the employee but also their children and spouses. We have a well developed Communication matrix to ensure timely communication both from Top- to- bottom and Bottom- to- top. Through our participative foras we try to involve the employees in the decision making process which also inculcates in them a feeling of belongingness to the organization. We have policies to engage our employees in creative and innovative thinking through programmes like NOCET, Business Minds, Suggestion Scheme, Professional Circles and Quality Circles.The reward and recognition system of NTPC is designed to identify and suitably reward special achievements and extraordinary efforts.
TE: What is your company's approach towards people's Management?
NTPC: As I said earlier, employees are our most important assets and their needs & interests are a matter of top priority for us. Our approach from the very beginning has been that of “People before PLF”.
TE: You have wide experience as head (HR) of Government company (NTPC). What is your experience?
NTPC: As Head of the HR function in an organization of the stature of NTPC, where the company has a diversified portfolio and ambitious expansion plans, one has to handle issues in the most sensitive manner. There are over 2500 employees spread across the country coming from varied background and it is a huge responsibility to cater to their needs and aspirations.
TE: How much do HR policies enhances the employee's confidence?
The attrition rate of less than 1% speaks volumes about our employees' confidence in the company and HR policies have a vital role in maintaining that position of the company in the employee's mind.  As a fresher what one perceives of a company is mostly due to what he has heard of the company in the market and through interactions he may have had  with the various stakeholders at various occasions; what holds him back and motivates him to plan his career growth within the company is the policy of the company. 
HR policies play a vital role in keeping the employee engaged and motivate. Our HR policies and practices aim at making the employee feel valued, cared for and recognized for their efforts and initiatives. All this tremendously enhance the employees' confidence in the organization.. 
TE: What are the challenges of HR Management in the era of globalization and how do you plan to face them?
With the kind of changes taking place in the areas of Fuel costs and logistics, introduction of Tariff bidding in the power sector the aspirations of our stakeholders have also increased. Our challenge today is to keep our remote location projects as Attractive as any urban city and prepare leaders for the future. We are in the constant process of succession planning to build a strong and continuous leadership pipeline.  We have also put in a lot of effort to increase the welfare activities both for the employees and their families. We are looking at avenues to gainfully engage the spouses of the employees in our welfare activities. Sports and cultural meets to involve the wards of the employees are being undertaken. Social Security Benefits are being improved by charting out our own Pension scheme. The health of  our employees is also of utmost important for us and providing best medical facilities near our project location is also an issue that has attracted our attention time and again. We are in various stages of talks with consulting agencies to bring up super specialty medical facilities in alliance with the experts in healthcare. The road ahead is indeed challenging but let me assure you that my HR team is well prepared to face these challenges.


Banking sector works best in stable economic environment

Our share in International Finance is negligible and hybrid instruments that lead the Financial Crisis in Developed World never entered our Banking Sector. However, recession in Developed Countries may impact Banking Sector through reversals in capital inflows and adverse market expectations causing sharp correction in asset prices and exchange rate pressures, says, Field General Manager (Northern Zone), D.S. Tripathi in an interview with Tarun Bhardwaj



TE: What is your assessment of the current situation?
There are increasing concerns about the recovery in the advanced economies losing momentum, High energy and commodity prices appears to be feeding into a negative cycle of persistent unemployment and depressed housing prices in US, while the prospect of sovereign default and its real and financial consequences dominates the European policy discussion. The situation can be identified with lack of decisiveness on the part of the Developed World and dearth of initiatives from Emerging Economies to play a larger role in world Economy.
It may also be observed that in the rapidly globalizing world, decoupling is not working. Hence, Emerging Markets can not remain Unscathed from the downturn in Developed world because of better macroeconomic policies, robust foreign exchange reserves and resilient financial flows. Therefore, it is necessary that global imbalances are redressed through global coordination for the sake of Global stability.
TE:  Is the Developed World staring at a lost decade?
The last decade about rise of Chindia or more widely emerging markets in the world of Trade & Finance. It was a period of great convergence between Developed and Emerging Economies. The  IMF forecast that Emerging Economies will continue to expand and growth will be four percentage points more than Developed World in next two years. The economic power is moving from West and rich world has to share their privileges with us. I believe that re-balancing of World Economy in natural course of event is a win-win for everyone.
TE:  Has the crisis arisen because we did not deal with the 2008 crisis well?
I feel that except the liquidity bottlenecks for short duration, India remain insulated from 2008 financial crisis. The 2008 crisis started from the rich world Financial Sector, which was protected by Public Sector through huge debt adversely affecting the country's own repayment capacity by 2011. The volatility and recessionary momentum in Developed countries is creating negativity in the ability of the Emerging Economies to sustain growth momentum, which is affecting one and all. However, Reserve Bank is doing excellent work of managing the Indian Financial Sector to lessen the pains of Global Slowdown.
TE: Did the quick rebound in the financial market led to this complacency with regards to reforms?
The financial market rebound was on high investor and business confidence based on the strength of Indian Economy. The fundamentals of the economy are still good but rising prices of commodities and energy along with inflationary pressures has evoked some concerns about sustainability of growth. RBI through pro- active management is introducing fresh reforms in Indian Financial Market at regular interval. One  among many reforms initiated by RBI includes introduction of Bank Holding Company Structure, Convergence of Indian Accounting Standards with International Financial Reporting Standards, Licensing of New Banks in the Private Sector, Presence of Foreign Banks in India, Financial Inclusion etc.
TE: What could be the impact of this crisis on emerging economies like India?
Banking Sector is concerned about the macroeconomic, price and financial stability of Indian Market being jeopardized by the Global Crisis. With growth stalled in the advanced economies, external demand is slowing and affecting the exports of country. The crisis is permeating to our country through risk aversion and volatility in capital stoking inflationary pressures in the country and complicating macroeconomic management in the face of slowing growth. The area  of concern for banks is increase in credit risks due to deterioration in asset quality and resultant impairment of capital. 
TE:  What are the areas that India needs to act upon to bolster growth?
Any policy and strategy for sustainable growth have to be welfare-oriented placing the well-being of quality of life of the key stakeholders - individuals of households at the centre of strategic thinking. For sustainable growth, we have to improve quality and affordability of education along with inculcation of ethics in our human capital, improve agriculture productivity, storage and distribution network to have self sufficiency in food, remove bottlenecks in infrastructure development and support Financial Sector for all-inclusive intermediation. Further, we need the developed world, the emerging markets along with multilateral institutions to make all- out efforts to do what it takes to pull back the Global Economy from the brink of collapse and set it on the path of recovery.


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