Wealth Year Ender: 10 financial resolutions for 2009

By M H Ahssan

It’s time to pause and retrospect on the year gone by, review mistakes and resolve not to make them in the coming year.

While you may have already made your New Year resolution, here are some must-haves on the list – at least money wise.

I will prepare a budget for 2009
A budget is not something you must wait for the finance minister to announce on the February 28 every year. A budget is a blueprint of your own financial plans. And in these difficult times, only a budget will help you keep your financed in control. Chalk out a budget for the next year. Certified Financial Planner Gaurav Mashruwala advices, “This is good time to start even if you have not done in past.”

Estimate your income from various sources – your salaries, rental income, dividends, interest and so on. Plot the estimated expenses. This will help you make prudent investments. For example, if there are any major expenses in the family, for example, child’s higher education, marriage, you will need to liquidate some of your equity holdings and park funds in floating rate fund till event takes place.

I will rebalance my portfolio
2008 has seen the equity markets correct and how! In that background, Calculate your debt equity ratio. If your equity component has fallen, its a good time to liquidate debt and buy more equity.

It’s a good time to shop for equities because corrections have ensured better valuations.

I will resist the temptation to make quick profits
Investors will have to be very selective, more patient and also tone down their return-expectations in 2009. Opportunities of making quick money are fewer, but that’s also a good thing because trying to time the stock markets or real estate market was never a good thing.

I will invest in equities systematically
Certified Financial Planner, Anil Rego has these tips: If you are a short term trader, capitalize on bear market rallies that can be as large as 30-60%. For long term investors, this is probably the best time for picking up equities, with a 3-5 year time frame. But spread out your investments over the next 12 months instead of investing lumpsums.

I will repay high cost loans
If you’ve piled up too much loan on depreciable assets like your car, your consumer durables or simply run up a huge credit card bill, its time to clean up your act. Interest costs on these loans are high and only a healthy equity market can earn you more than the interest you pay.

Mashruwala has a simple solution, “If you have borrowed funds for any of the depreciating assets than repay those loans from equity profits.”

I will review my insurance
There’s no better time to review your insurance needs. If there’s been an addition to your family or if you have taken more loans, you need to protect your family. Look at how much insurance cover you have and how much more you need. Fill in the gaps.

I will not wait till the last moment to make tax saving investments
Given that you have time till March to make those tax saving investments. But there’s no reason to wait that long. Start making investments in your provident funds, post office savings, ELSS, insurance and so on. For the year ending March 2009, make your investments now while for the year after, start setting aside funds for investing when the year starts in April.

I will prepare my retirement plan
Do we hear you say it’s too early? It’s never too early for retirement planning. You cannot depend on your provident fund money to pay for your retirement. Chances are that it’s just not going to be enough. With interest rates lying low and inflation running high, you will need a big corpus so that you can maintain your current lifestyle post retirement.

Don’t wait for the pension reforms to set in. Review your retirement plan and get started in that direction on your own.

I will read the fine print before I sign on any dotted line
Enough has been written about the devil being in the fine print. Its time for some action now. All banks, financial institutions, mutual funds and insurance companies are there to make money. And they will most likely do it through the fine print. Its one thing to demand responsible selling of financial products and another to be a responsible buyer. Keep your eyes open for any catches in the clauses, be they on your floating rate loan, your unit-linked insurance expenses, your mutual fund IPOs or new fund offers or your credit cards bills. Make informed decisions.

I will follow the above 9 resolutions
Now that your resolutions have been made for you, all you need to do is execute them. Get cracking and we hope the New Year rings in the sound of cash registers for you.

Satyam in Play: Missed Calls from Indian Biggies

By M H Ahssan

Cognizant’s Top3 Ambition May Make It Dial Satyam

Satyam Computers is available at a bargain. A controlling 26% stake in the company can be had for $520-million given that the company’s market cap is around $2-billion. Then, of course, the cherry on the cake: $1.2-billion in cash.

Attractive though the company looks the three top Indian IT services companies are unlikely to bite. According to market sourcea, the Big 3: TCS, Infosys and Wipro are most definitely not going to make a bid for Satyam. The reasons are simple. The foremost being acquiring Satyam would be “more of the same.” Same suite of businesses, technologies and clients. Market participants also believe that for the cash one would have to fork out the only thing assured are 53,000 employees. The big 3 don’t necessarily want those number of additional people at the moment.

As an industry source pointed out, “If all the acquisitions made by entire Indian IT industry is put together, I don’t think it adds upto 50,000 people brought on board.” Hence, one big bang acquisition with 50,000 people looks remote, especially in the current environment.

As for the business that Satyam would bring to the table, industry observers believe that Satyam has fought the leaders mainly on price. “Quality of revenues,” is an issue, they said. Satyam is thought to have bagged business by quoting 10-12 per cent lower rates than its competitors at the top. Hence, “these
businesses can be squeezed very easily.” As for the client list, the feeling again is that Satyam’s clients are very cost conscious; Clients who might flee if there are signs of upward price revision. ‘ Jittery’ clients who might bail out even otherwise given the current fracas.

While there has been market speculation that IBM or Accenture might emerge as strategic buyers, the general perception within the industry seem to be that they might also stay out. Both the companies have hugely grown their local operations and today have 74000 (IBM) and 37000 (Accenture) employees in India. Adding more people through acquisition might not be a priority while they can be grown organically especially in the current environment where quality people are available at reasonable prices

Satyam is a company that has been in play for years now. In the early 2000s merchant bankers were hawking the company to the big Indian players. EDS, then the world’s second largest IT services company after IBM was said to have been an interested party until it got caught in its own internal owes and deferred an India acquisition to a later date. Satyam has consistently denied over the years that it was ever an acquisition target. In 2002, Ramalinga Raju, his family and friends owned a 22.4% stake in the company. The stake has gradually diluted to stand at the current uncertain 8.6%.

Cognizant’s eying Satyam?
As speculation mounts on who could be a potential ‘buyer’ of Satyam Computer Services, the one name repeatedly touted as a very interested party is Cognizant Technologies. The Teaneck, New Jersey-based, Nasdaq-listed company with a huge India back-end has not hid its ambitions of wanting to be in the big league. The company that has clocked very aggressive top line growth in the last few years grew 50% in 2007 with revenues at $2.13 billion. (Cognizant has December 31 as year ending).

If it were to buy Satyam which had revenues of $2.14-billion last fiscal, then Cognizant with has 59,000 employees would easily pip Wipro to emerge as the third largest IT services company. Wipro’s IT services business closed last fiscal with a topline of $3.41-billion. Cognizant and Satyam with combined revenues in excess of $4-billion would easily move Wipro to the fourth slot among the top Indian IT service providers. When contacted Cognizant Technologies’ spokesperson R Ramkumar, said, “ As a policy, we do not comment on market speculation.”

Cognizant’s market capitalisation at $5 billion is more than double that of Satyam’s at $2.16 billion. In Q3 2008, Cognizant had cash/cash equivalents of $595-million.

Satyam in Play: Missed Calls from Indian Biggies

By M H Ahssan

Cognizant’s Top3 Ambition May Make It Dial Satyam

Satyam Computers is available at a bargain. A controlling 26% stake in the company can be had for $520-million given that the company’s market cap is around $2-billion. Then, of course, the cherry on the cake: $1.2-billion in cash.

Attractive though the company looks the three top Indian IT services companies are unlikely to bite. According to market sourcea, the Big 3: TCS, Infosys and Wipro are most definitely not going to make a bid for Satyam. The reasons are simple. The foremost being acquiring Satyam would be “more of the same.” Same suite of businesses, technologies and clients. Market participants also believe that for the cash one would have to fork out the only thing assured are 53,000 employees. The big 3 don’t necessarily want those number of additional people at the moment.

As an industry source pointed out, “If all the acquisitions made by entire Indian IT industry is put together, I don’t think it adds upto 50,000 people brought on board.” Hence, one big bang acquisition with 50,000 people looks remote, especially in the current environment.

As for the business that Satyam would bring to the table, industry observers believe that Satyam has fought the leaders mainly on price. “Quality of revenues,” is an issue, they said. Satyam is thought to have bagged business by quoting 10-12 per cent lower rates than its competitors at the top. Hence, “these
businesses can be squeezed very easily.” As for the client list, the feeling again is that Satyam’s clients are very cost conscious; Clients who might flee if there are signs of upward price revision. ‘ Jittery’ clients who might bail out even otherwise given the current fracas.

While there has been market speculation that IBM or Accenture might emerge as strategic buyers, the general perception within the industry seem to be that they might also stay out. Both the companies have hugely grown their local operations and today have 74000 (IBM) and 37000 (Accenture) employees in India. Adding more people through acquisition might not be a priority while they can be grown organically especially in the current environment where quality people are available at reasonable prices

Satyam is a company that has been in play for years now. In the early 2000s merchant bankers were hawking the company to the big Indian players. EDS, then the world’s second largest IT services company after IBM was said to have been an interested party until it got caught in its own internal owes and deferred an India acquisition to a later date. Satyam has consistently denied over the years that it was ever an acquisition target. In 2002, Ramalinga Raju, his family and friends owned a 22.4% stake in the company. The stake has gradually diluted to stand at the current uncertain 8.6%.

Cognizant’s eying Satyam?
As speculation mounts on who could be a potential ‘buyer’ of Satyam Computer Services, the one name repeatedly touted as a very interested party is Cognizant Technologies. The Teaneck, New Jersey-based, Nasdaq-listed company with a huge India back-end has not hid its ambitions of wanting to be in the big league. The company that has clocked very aggressive top line growth in the last few years grew 50% in 2007 with revenues at $2.13 billion. (Cognizant has December 31 as year ending).

If it were to buy Satyam which had revenues of $2.14-billion last fiscal, then Cognizant with has 59,000 employees would easily pip Wipro to emerge as the third largest IT services company. Wipro’s IT services business closed last fiscal with a topline of $3.41-billion. Cognizant and Satyam with combined revenues in excess of $4-billion would easily move Wipro to the fourth slot among the top Indian IT service providers. When contacted Cognizant Technologies’ spokesperson R Ramkumar, said, “ As a policy, we do not comment on market speculation.”

Cognizant’s market capitalisation at $5 billion is more than double that of Satyam’s at $2.16 billion. In Q3 2008, Cognizant had cash/cash equivalents of $595-million.

Too Many Cooks Spoil the Food

By M H Ahssan

Creating new security agencies is not the answer to our problems

The government has at last — after the country and its people have paid a heavy price — come up with a proposal to constitute a National Investigation Agency (NIA) and given more teeth to anti-terror laws. The NIA is “to investigate and prosecute offences affecting the sovereignty, security and integrity of India, security of state, friendly relations with foreign states and offences under Acts enacted to implement international treaties, agreements, conventions and resolutions of the United Nations.”

The NIA is to be entrusted with the investigation and prosecution of offences falling under the Anti-Hijacking Act, Suppression of Unlawful Acts Against the Safety of Civil Aviation Act, the SAARC Convention on Suppression of Terrorism Act, Weapons of Mass Destruction Act, Atomic Energy Act, Unlawful Activities (Prevention) Act and offences against the state mentioned in Chapter VI of the Indian Penal Code.

The concept is excellent. That such an agency was urgently required goes without saying. But the framers of the Bill, passed by Parliament and awaiting presidential assent, have made two cardinal mistakes. They have created a new agency, adding to the plethora of law enforcement agencies. Besides, they forgot that any new institution takes a couple of years to grow and become operational. The country is on fire. Terrorist incidents are happening with distressing frequency. We need the institution to become operational within the shortest possible time — a few weeks, if possible. And it is possible.

The Central Bureau of Investigation (CBI) already has a Special Crimes Division and an Economic Offences Wing. It has been taking up complex cases having interstate linkages or even international ramifications so far. The infrastructure is there. All the government had to do was to enlarge its mandate and give it additional manpower. The Delhi Special Police Establishment Act had to be replaced by a new law. However, for inexplicable reasons, the government decided to create a new body, which would take time to grow and acquire cutting-edge capabilities. Till then, the country will have to suffer turf wars among the different law enforcement agencies and the police of different states working at cross purposes or at least without adequate coordination.

The National Investigation Agency Bill, 2008, is a classic case of good intentions being defeated by unimaginative and bureaucratic thinking. All the optimism generated by the creation of the body would evaporate before long.

The Supreme Court of India had, in its judgment in writ petition (civil) No. 310 of 1996, observed that the suggestion to entrust the CBI with the investigation of cases “emanating from international terrorism or organised
crimes like drug trafficking, money laundering, smuggling of weapons from across the borders, counterfeiting of currency or the activities of mafia groups with transnational links” appeared “quite useful”.

However, before issuing any directions on the subject, it sought the views of the National Human Rights Commission (NHRC), the Sorabjee committee and the Bureau of Police Research & Development. Interestingly, all three bodies endorsed the suggestion. The NHRC clearly said that the CBI should be “entrusted with the responsibility of investigating federal crimes”. It is strange that the government chose to ignore the observations of the Supreme Court and the considered views of three expert bodies.

The US administration found that the responsibilities for homeland security were dispersed among more than 100 different government organisations. It was felt that “America needs a single, unified, homeland security structure that will improve protection against today’s threats and be flexible enough to help meet the unknown threats of the future”. Accordingly, the Department of Homeland Security was created and the various security organisations were amalgamated under four divisions: Border and Transportation Security, Emergency Preparedness and Response, Chemical, Biological, Radiological and Nuclear Countermeasures, and Information Analysis and Infrastructure Protection. The emphasis was on unification. In India, on the other hand, we are pursuing diversification.

On the legislative front, the government has chosen the easier option of strengthening the provisions of the Unlawful Activities (Prevention) Act, 1967 (UAPA). It would have been better if a new anti-terror law had been enacted. However, considering its political compulsions, the additional clauses incorporated in the UAPA are quite satisfactory. An accused could now be kept in police custody for 30 days, the time limit for framing the chargesheet has been extended to 180 days, a foreigner involved in terrorism-related crime is not to be granted bail, and the government could attach, freeze or seize the financial assets of a person involved in terrorism.

The Bill also states that if a person is found in possession of arms or explosives and there is reason to believe that such arms or explosives were used in the commission of a terrorist crime, the court shall presume, unless the contrary is proved, that the accused committed the offence. The one significant provision, which was there in the Prevention of Terrorism Act but has not found place in the UAPA, concerns the admissibility of confession before a police officer as evidence. Perhaps the politicians would agree to incorporate that clause as well in due course of time, after some more terrorist incidents. Terrorists must already be preparing to hit their next target in India. Are we ready? A few halting steps in the right direction have been taken. But the government has to cover much more ground.

In 2008, India says ‘Jai Jawan’

By M H Ahssan

Slain ATS Chief Karkare Finishes Close Second In Indian Of The Year HNN Survey Across 8 Cities

There were only two real contenders. The Indian soldier and Hemant Karkare, former chief of the Maharashtra ATS who died during the Mumbai terror attacks, were consistently way above anybody else in almost every city covered in an eight-city survey to find out the Indian of the Year, but which of them was first or second was something the cities differed quite significantly on.

In Delhi and Pune, Karkare was clearly the top choice. In the southern cities of Bangalore and Hyderabad the Indian soldier had pride of place. In Mumbai and Kolkata there was no clear favourite, Karkare being a couple of percentage points ahead in Mumbai but just a tad behind in the other two.

The only cities where anybody else figured in the top two were Chennai and Ahmedabad. In Chennai, the Chandrayaan team got 27% of the votes, well behind the 36% voting for the Indian soldier, but well ahead of the 20% who chose Karkare. In Ahmedabad, Gujarat chief minister Narendra Modi got the top slot with 26% of the votes, followed not too far behind by the soldier and the slain ATS chief.

There was also a clear gender pattern to the voting. Women were significantly more inclined to pick the Indian soldier or Karkare as the Indian of the Year than men. Thus, while 59% of women chose one of these two, a considerably lower 45% of men did so. This pattern, however, did not hold in the three southern cities, where the proportion of men picking Karkare in each case exceeded the share of women doing so.

One reason for the overall difference across gender in the support for the top contenders was that more men tended to pick sportspersons like cricket stars M S Dhoni or Sachin Tendulkar, businessmen like Ratan Tata or politicians like prime minister Manmohan Singh, Modi and home minister P Chidambaram.

There was, however, an interesting exception to the rule – the sensitive and docile looking Abhinav Bindra, the shooter who brought India its first individual gold medal in any Olympics, was the choice of 6.2% of women against 4.6% of men. Among the politicians too, there was an interesting exception. Support for Manmohan, Modi and Delhi chief minister Sheila Dikshit was clearly higher among the older age group, 35-55 years, than among those aged 18 to 34 years. In the case of Chidambaram, however, the situation was reversed with his support among the younger lot twice as much as in the slightly older crowd.

That Kolkata remains a city which passionately embraces sports and sportsmen is evident from the survey. A considerable chunk of all respondents, 36% to be precise, backed one or the other of the four sports stars in the top of the list — Dhoni, Tendulkar, Bindra or world chess champion Vishwanathan Anand, in that order.

Despite Indian writers capturing the imagination of the English-reading world, the phenomenon does not seem to have had much of an impact at a mass level even in the country’s biggest cities. Aravind Adiga, who won the Booker Prize this year, thus found nobody willing to choose him as the Indian of the Year except in Bangalore and in Delhi. To put that in perspective, however, we might as well point out that Bollywood’s most successful star of 2008, Akshay Kumar, gathered barely one-fourth of a percentage point of support across all cities among respondents in the 35-55 age group.

City Cops Just an SMS Away

By Swati Reddy

Come 2009, police will just be an SMS away. Citizens can send a short message service (SMS) to 9010100100 to beckon the men in khaki in case of an emergency.
Briefing the media, Hyderabad police commissioner B Prasada Rao said: “People are finding it difficult to access ‘100’. Though the caller hears the ring when he/she dials the number, the call was not landing at the control room, possibly due to technical problems,” Prasada Rao said.

“To avoid that, the SMS facility will be introduced. The moment the message is sent, operators at the control room will alert the concerned police station,” he added.

To a query on techie Mohammed Talha of Nadeem Colony, who was picked up by Maharashtra’s Anti-Terrorist Squad (ATS), Prasada Rao said the case was investigated by the Maharastra police and they do not share investigation details.

“We only gave the requested assistance to ATS. Hyderabad police too questioned some people, but since Talha was working at Hi-Tec City, we transferred the investigation to Cyberabad police,” Prasada Rao said. He also said there was not much headway in the sensational Vikar Ahmed case. Ahmed fired on police personnel near a phone booth at IS Sadan and fled from the place. “We are still investigating the matter,” he added.

Though they could not nab a terror suspect, the Hyderabad police chief claimed the city police was capable of thwarting a Mumbai-style terrorist attack.

“A Greyhound team is already in the city and procurement of sophisticated weapons is also not a problem. Weapons will be procured under Megapolis,” Prasada Rao said.

He also reeled out achievements of the police force in 2008. Fatal accidents came down in 2008 when compared to previous year. According to him, 453 fatal accidents were recorded compared to 533 in the previous year. Similarly, 22 history-sheeters, 68 robbers and decoits were nabbed.

However, there was a consistent decrease in property recoveries.
In 2008, of Rs 21,64,44,137 property lost, they could recover property worth Rs 3,49,76,151 (16.15%). In 2007, property lost was Rs 13,93,97,961, recovered was Rs 4,57,50,080 (32.81%), while in 2006, the property lost was Rs 23,96,84,192 and recovery was Rs 11,70,92,995 (48.85%).

He said 99 surveillance cameras had been installed at various locations.

Where’s the Party Tonight?

By Prabhakar Rao

Spirits are high this December 31 with liquor sales in the city shooting by a neat 25 to 30 per cent over the last three days. Retailers, buoyed by the impressive demand even for high-end liquor, expect the sales to improve drastically today. Fuelling the demand for spirits at retail outlets is the ‘recession’ special new year party venue— homes. Its home, sweet home for a number of revellers who have ditched their high-end pubs to welcome 2009 in the cosy confines of their flats. Steep cover charges, security apprehensions and recessionary pressures have convinced people to revisit the idea of house parties.

“We have decided to have a house party for two reasons. One, due to the present scenario people are a little apprehensive of crowded places and feel it is better to celebrate a quieter new year with people you are close to. Also a number of my friends have gathered together after a long time and everyone wanted a place to go and a house party seemed to be logical,’’ says Ranodeep Sen, a young HR professional who is arranging a close-knit gathering of about 15 to 20 people.

These ‘domestic’ party planners are now stacking their small bars with a range of alcohol choices — from white spirits such as vodka and white rum to the real drinker’s delight such as scotch and whiskey. Beer would flow like water, they promise.

With people stacking premium brands, according to retailers, these ‘big heart’ parties may appear extravagant but they actually make economic sense. “Even if my booze budget touches Rs 5,000 and another Rs 2,000 for food, I can still manage to throw a decent bash for a group of 20. But going for events would mean a couple shelling out a minimum of Rs 2,000,’’ says Rajat Parashar, who is holding a party for his friends at his place in Marredpally.

Some house parties have also roped in caterers as against ordering food from a restaurant. With a per plate estimate of Rs 155, the in-house party does seem like a sane bet.

“Besides, in house parties it is only your friends with whom you party so one doesn’t need to bother about pesky crowds,’’ says Pradeep Chowdary, a college student adding that house parties have the benefits of fewer restrictions and go on for a longer time. Another crucial factor driving people home to celebrate is the traffic police crack down on drunken driving on December 31.

Liquor retailers are already calculating their profit. Rohit Ahuja, proprietor Rajshell Wines has calculated a 25 to 30 per cent spurt in sales over the last three days. “So far the sales have been very good and we expect it to pick up on Wednesday,’’ he says. Vikram Mansingh owner of the oldest wine shop in the city confirms that people have been buying large quantities of premium brand liquor over the last few days. “People hosting parties and entertaining friends buy alcohol in bulk with a minimum being six bottles,’’ points out another dealer, who notes that white spirits and wines are doing exceptionally well this year.

However, D Venkateshwar Rao, general secretary, AP State Wine Dealers Association believes that the sales could have been better and are so far only average this year. “Sales should pick up on December 31,’’ he says.

Where’s the Party Tonight?

By Prabhakar Rao

Spirits are high this December 31 with liquor sales in the city shooting by a neat 25 to 30 per cent over the last three days. Retailers, buoyed by the impressive demand even for high-end liquor, expect the sales to improve drastically today. Fuelling the demand for spirits at retail outlets is the ‘recession’ special new year party venue— homes. Its home, sweet home for a number of revellers who have ditched their high-end pubs to welcome 2009 in the cosy confines of their flats. Steep cover charges, security apprehensions and recessionary pressures have convinced people to revisit the idea of house parties.

“We have decided to have a house party for two reasons. One, due to the present scenario people are a little apprehensive of crowded places and feel it is better to celebrate a quieter new year with people you are close to. Also a number of my friends have gathered together after a long time and everyone wanted a place to go and a house party seemed to be logical,’’ says Ranodeep Sen, a young HR professional who is arranging a close-knit gathering of about 15 to 20 people.

These ‘domestic’ party planners are now stacking their small bars with a range of alcohol choices — from white spirits such as vodka and white rum to the real drinker’s delight such as scotch and whiskey. Beer would flow like water, they promise.

With people stacking premium brands, according to retailers, these ‘big heart’ parties may appear extravagant but they actually make economic sense. “Even if my booze budget touches Rs 5,000 and another Rs 2,000 for food, I can still manage to throw a decent bash for a group of 20. But going for events would mean a couple shelling out a minimum of Rs 2,000,’’ says Rajat Parashar, who is holding a party for his friends at his place in Marredpally.

Some house parties have also roped in caterers as against ordering food from a restaurant. With a per plate estimate of Rs 155, the in-house party does seem like a sane bet.

“Besides, in house parties it is only your friends with whom you party so one doesn’t need to bother about pesky crowds,’’ says Pradeep Chowdary, a college student adding that house parties have the benefits of fewer restrictions and go on for a longer time. Another crucial factor driving people home to celebrate is the traffic police crack down on drunken driving on December 31.

Liquor retailers are already calculating their profit. Rohit Ahuja, proprietor Rajshell Wines has calculated a 25 to 30 per cent spurt in sales over the last three days. “So far the sales have been very good and we expect it to pick up on Wednesday,’’ he says. Vikram Mansingh owner of the oldest wine shop in the city confirms that people have been buying large quantities of premium brand liquor over the last few days. “People hosting parties and entertaining friends buy alcohol in bulk with a minimum being six bottles,’’ points out another dealer, who notes that white spirits and wines are doing exceptionally well this year.

However, D Venkateshwar Rao, general secretary, AP State Wine Dealers Association believes that the sales could have been better and are so far only average this year. “Sales should pick up on December 31,’’ he says.

NEW BEGINNINGS FOR THE NEW YEAR 2009

By M H Ahssan

The city could be hosting a trillion New Year bashes but Hyderabadis have opted for novel ways to ring in the new year. From attending meditation sessions at the stroke of midnight for a “peaceful’’ 2009, to hosting parties at home to beat the recession, denizens have no regrets giving high profile dos a miss this year. HNN reports

At the stroke of midnight on December 31, various pockets in the city would wake up to the lilting notes of not some Bollywood chartbusters but those of bhajans as many in the city are choosing to usher in the New Year on a sombre spiritual note. And, hold your breath, most of the participants are the young and the restless finding peace in a session of meditation for a “mental bath’’ they say they so badly need.

Madhavi is one of them. This Hyderabadi who swore by her rocking night life and the uber-cool new year bashes has turned a new leaf. Until last year, she went pub-hopping across the city, drowned herself in alcohol and danced to deafening music till she dropped. This year, she is giving it a miss. Not that she now sits on a moral high ground, but says she has chosen a more peaceful way of ringing in the new year. This year, she is accompanying her mother for a quiet midnight satsang and meditation session, being organised by a spiritual centre Dhayanapeetham.

Madhavi says she is aware that bhajans would replace hip-hop and a modest cake would greet its members instead of a toast at the New Year celebrations but she doesn’t mind. She is looking forward to this party like never before.

Tried of waking up with a hangover on the first day of every year, several youngsters like Madhavi are now opting for such forms of celebration that they feel will help them begin their year with a fresh mind and positive energy.”It does not feel great to start the year on a drowsy note. You feel drained and even more stressful. Meditation not only makes you feel more energetic but also decreases your level of stress,’’ says

Anil Gowra a young businessman who has also decided to be meditating at midnight while his friends treat themselves to wine and shake a leg at a New Year bash.
Deepika Bhogadhi, an engineer, too believes that starting the first day of the year rejuvenated after a meditation session makes much more sense than on a tired note.
Call it a case of a new form of adventure that the young wish to try out this December 31 or a real need for ‘man ki shanti’, but these collective chants of ‘hari oms’ would indeed give the December 31 night a different feel altogether.

While some feel that such midnight workshops would help them cope with their stressful lives, there are others who decided to enroll for these sessions post the Mumbai terror strikes. With 2008 ending on a not so happy note, they feel that spending the last few minutes of the year calling for peace and harmony would perhaps help in assuring better times in 2009.

“With so much disturbance around me, I do not feel like partying this year. Also, I wish to begin my year with a calm and relaxed mind,’’ says first year student Monica Sethi, who plans to attend the Art of Living workshop on New Year’s eve where members would chant shlokas, sing bhajans and meditate before they greet each other at the stroke of midnight.

Like Art of Living, several other organisations in the city are conducting such meditation programmes to usher in the New Year. While Dhyanahita has a prayer meeting followed by a “healing’’ session lined up for its members, Anand Aishwarya, another spiritual centre, plans to conduct a satsang wherein people would chant mantras and sing bhajans apart from meditating for peace of mind.

Apart from the urge of beginning the year on a more sober note, people also cite health reasons and new year resolutions to stay away from booze and “polluting’’ thoughts to opt for such courses over cocktails. But the hope that ‘asanas’ bring peace, seems to have drawn most people. “The whole idea of such sessions is to spread peace and harmony. People are fed up with the violence around and, therefore, are doing what they can to spread this message,’’ says Santosh Rao of Art of Living. “There is a bliss layer within everybody and once you touch it, you wish to reconnect with it all the time since it provides a deep degree of peace and happiness. This is what that drives these young people to such sessions,’’ says Vijaya Reddy, coordinator of Dhyanapeetham.

That the idea of ushering the New Year on a more spiritual note, post 26/11, is catching up is also evident from the multi-faith prayer meeting that is being organised by Apollo Hospital for the first time this year. Chaitanya and Awakening will be held between 11 pm and 12 midnight at Apollo hospitals for the staff and even outsiders. The sessions will include singing of hymns and bhajans, followed by an aarti and reading from various religious books. “We decided to usher in the new year differently this time,’’ says Dr Hari Prasad, CEO, Apollo Hospitals, clearly reflecting the mood of a large number of people in the city.

NEW BEGINNINGS FOR THE NEW YEAR 2009

By M H Ahssan

The city could be hosting a trillion New Year bashes but Hyderabadis have opted for novel ways to ring in the new year. From attending meditation sessions at the stroke of midnight for a “peaceful’’ 2009, to hosting parties at home to beat the recession, denizens have no regrets giving high profile dos a miss this year. HNN reports

At the stroke of midnight on December 31, various pockets in the city would wake up to the lilting notes of not some Bollywood chartbusters but those of bhajans as many in the city are choosing to usher in the New Year on a sombre spiritual note. And, hold your breath, most of the participants are the young and the restless finding peace in a session of meditation for a “mental bath’’ they say they so badly need.

Madhavi is one of them. This Hyderabadi who swore by her rocking night life and the uber-cool new year bashes has turned a new leaf. Until last year, she went pub-hopping across the city, drowned herself in alcohol and danced to deafening music till she dropped. This year, she is giving it a miss. Not that she now sits on a moral high ground, but says she has chosen a more peaceful way of ringing in the new year. This year, she is accompanying her mother for a quiet midnight satsang and meditation session, being organised by a spiritual centre Dhayanapeetham.

Madhavi says she is aware that bhajans would replace hip-hop and a modest cake would greet its members instead of a toast at the New Year celebrations but she doesn’t mind. She is looking forward to this party like never before.

Tried of waking up with a hangover on the first day of every year, several youngsters like Madhavi are now opting for such forms of celebration that they feel will help them begin their year with a fresh mind and positive energy.”It does not feel great to start the year on a drowsy note. You feel drained and even more stressful. Meditation not only makes you feel more energetic but also decreases your level of stress,’’ says

Anil Gowra a young businessman who has also decided to be meditating at midnight while his friends treat themselves to wine and shake a leg at a New Year bash.
Deepika Bhogadhi, an engineer, too believes that starting the first day of the year rejuvenated after a meditation session makes much more sense than on a tired note.
Call it a case of a new form of adventure that the young wish to try out this December 31 or a real need for ‘man ki shanti’, but these collective chants of ‘hari oms’ would indeed give the December 31 night a different feel altogether.

While some feel that such midnight workshops would help them cope with their stressful lives, there are others who decided to enroll for these sessions post the Mumbai terror strikes. With 2008 ending on a not so happy note, they feel that spending the last few minutes of the year calling for peace and harmony would perhaps help in assuring better times in 2009.

“With so much disturbance around me, I do not feel like partying this year. Also, I wish to begin my year with a calm and relaxed mind,’’ says first year student Monica Sethi, who plans to attend the Art of Living workshop on New Year’s eve where members would chant shlokas, sing bhajans and meditate before they greet each other at the stroke of midnight.

Like Art of Living, several other organisations in the city are conducting such meditation programmes to usher in the New Year. While Dhyanahita has a prayer meeting followed by a “healing’’ session lined up for its members, Anand Aishwarya, another spiritual centre, plans to conduct a satsang wherein people would chant mantras and sing bhajans apart from meditating for peace of mind.

Apart from the urge of beginning the year on a more sober note, people also cite health reasons and new year resolutions to stay away from booze and “polluting’’ thoughts to opt for such courses over cocktails. But the hope that ‘asanas’ bring peace, seems to have drawn most people. “The whole idea of such sessions is to spread peace and harmony. People are fed up with the violence around and, therefore, are doing what they can to spread this message,’’ says Santosh Rao of Art of Living. “There is a bliss layer within everybody and once you touch it, you wish to reconnect with it all the time since it provides a deep degree of peace and happiness. This is what that drives these young people to such sessions,’’ says Vijaya Reddy, coordinator of Dhyanapeetham.

That the idea of ushering the New Year on a more spiritual note, post 26/11, is catching up is also evident from the multi-faith prayer meeting that is being organised by Apollo Hospital for the first time this year. Chaitanya and Awakening will be held between 11 pm and 12 midnight at Apollo hospitals for the staff and even outsiders. The sessions will include singing of hymns and bhajans, followed by an aarti and reading from various religious books. “We decided to usher in the new year differently this time,’’ says Dr Hari Prasad, CEO, Apollo Hospitals, clearly reflecting the mood of a large number of people in the city.

No Arrest for Offences with 7 yrs or Less Jail

By M H Ahssan

Ever since he flung his shoes at George Bush on December 14, Iraqi journalist Muntader al-Zaidi has been in custody. But if something like that were to happen here with the Indian president, the assailant might not even be arrested. For, assaulting President is among a wide range of offences that are no more covered by the existing arrest regime thanks to amendments passed in the just concluded session of Parliament.

The eight Bills passed by Lok Sabha on December 23 without a debate in 17 minutes flat included a radically revamped Criminal Procedure Code, which divests the police of the usual arrest powers in all cases where the maximum possible sentence is seven years or less. Since the CrPC amendment Bill had been cleared earlier by Rajya Sabha on December 18, it is all set to pass into law once President Pratibha Patil gives her assent.

Instead of arresting the accused, the police will now be obliged to issue him a “notice of appearance” for any offence punishable with imprisonment up to seven years, which — as it happens — is the maximum penalty prescribed under Section 124 of Indian Penal Code for assaulting a President. Seven years or less is also the maximum penalty for a host of other offences, including attempt to commit culpable homicide (Section 308) or robbery (Section 393), voluntarily causing grievous hurt (Section 325), cheating (Section 420), outraging a woman’s modesty (Section 354) and death caused by negligence (Section 304A).

The notice of appearance casts a duty on the accused person to appear before the police and “cooperate” with their investigation. It is only when he fails to comply with the terms of the notice will the question of arresting him arise. If they are still particular about arresting somebody in the first instance, then the police will specially have to give reasons for that in writing in court.

The introduction of notice of appearance is part of a larger attempt to raise the bar for arrest. In the case of offences punishable with imprisonment exceeding seven years, the police can arrest merely on “credible information” or “reasonable suspicion”.

But in the case of offences punishable with imprisonment up to seven years, the police will also have the burden of recording the reasons for being satisfied that such arrest is “necessary.”

A Wish for New Year 2009

By M H Ahssan

On December 31, the year 2008 will fade into history. Though January 1, 2009 will not be materially different, but the year 2009 can be, and I hope will be a harbinger of better tomorrows. Many will take stock of their hopes and desires for the future, but some will find refuge in this season of festivities and let desires negate hope and trump reality. The poor and dispossessed of the world will go on toiling towards dashed hopes and early deaths. The challenge is to bring changes to these lives and usher in a new millennium of peace and cooperation that is still waiting for the last eight years of the chronological millennium.

The year 2008 has been one of the most miserable years in more than half a century. Not only do the wars still rage in Iraq and Afghanistan, but no less devastating regional civil wars in Sri Lanka, Darfur, Congo and many other places go on unabated; Mr. Mugabe, in resource-rich Zimbabwe has led its citizens to unbelievable destitution, while the world can awkwardly condemns as a bystander. The terrorism of state and non-state actors in many regions is on the rise.

Dictators and oppressors persist and terrorist attacks come with the regularity of tides. We have only limited attention span, and are overwhelmed by so many crises. The crisis of the past month fades, replaced by a new crisis of the month or even the week. The Junta in Burma (Myanmar) perseveres in its horrible record of oppression. The world focused on it for a few weeks, then moved on.

All the crises have been dwarfed by the economic meltdown of 2008, which started with the subprime mortgage crisis in the United States. This was only the proverbial straw. If not this, some other unraveling of the economic pyramid scheme would have burst the bubble of unregulated greed of unscrupulous funds managers on Wall Street, who ran amok under a blind eye of a government that willfully dismantled the instruments of governmental regulatory responsibilities.

To dispel all doubts that we are living in a global economy, the US economic crisis has reverberated through the world economies, including the very poor countries that are dependent on the aid and charity of the wealthier nations. The governments of all major economies, including the United States, have come to realize that they can not manage it alone and have been forced to coordinate their efforts to dig themselves out of this self-made morass.

But the year 2008 has also been a watershed year. The situation became so bad that it may have woken us from a long slumber of complacent inattention.

In America, in the wake of the shock of 9/11 in 2001, fear took hold. Loud voices of the prophets of fear and greed found a fertile ground. Americans opted for erosion of their constitutional freedoms in exchange for a feeling of safety.

After eight years of utter mismanagement, Americans realized that their pocket-books are dwindling and even the substandard employment of eight years is about to turn in to unemployment and their future as a great nation has been jeopardized.

Against all odds, in contradiction of the conventional wisdom, Americans rose above their prejudices and voted Barack Obama as the president-elect of the United States. No one could have even ventured to predict that a black American could win the election in 2008.

This is of even greater significance because Mr. Obama avoided the mean and negative campaigning that has been the hall-mark of the past successful elections. A majority of Americans rejected the petty politics of fear and rose to vote for a future of hope and equity. Americans voted for Mr. Obama even though he did not take the bait of demonizing those who disagreed with American policies and offered dialogue to reach a better and equitable understanding instead of hubris.

The American Revolution was one of the most important engines for the flowering of democracies in the world. This change in American attitudes and government is a harbinger of a better tomorrow of dialogue and understanding among the peoples of the world. In this interconnected world of fast communications and global economy, no place is too far, or too insulated to escape the consequences of oppression of supposedly distant people. It is time to think of others empathetically to develop common platforms and aspirations.

Industrial revolution has conclusively proven that prosperity is not a zero-sum proposition. For some to be rich, many do not have to be poor. Human ingenuity can help produce more with less effort and invent new techniques and materials of comfort, for the betterment of all.

This is not a new idea; European prosperity rose from the ashes of the conflagration of two world wars on this concept. Leaders reflect our collective will and hopes. No leader, including Mr. Obama by himself can bring about the millennium of peace and cooperation, but with the help of all those who choose a better tomorrow, not only for themselves, but for all, this may be a time for that momentous change. Let us make the year 2009 the start.

A Wish for New Year 2009

By M H Ahssan

On December 31, the year 2008 will fade into history. Though January 1, 2009 will not be materially different, but the year 2009 can be, and I hope will be a harbinger of better tomorrows. Many will take stock of their hopes and desires for the future, but some will find refuge in this season of festivities and let desires negate hope and trump reality. The poor and dispossessed of the world will go on toiling towards dashed hopes and early deaths. The challenge is to bring changes to these lives and usher in a new millennium of peace and cooperation that is still waiting for the last eight years of the chronological millennium.

The year 2008 has been one of the most miserable years in more than half a century. Not only do the wars still rage in Iraq and Afghanistan, but no less devastating regional civil wars in Sri Lanka, Darfur, Congo and many other places go on unabated; Mr. Mugabe, in resource-rich Zimbabwe has led its citizens to unbelievable destitution, while the world can awkwardly condemns as a bystander. The terrorism of state and non-state actors in many regions is on the rise.

Dictators and oppressors persist and terrorist attacks come with the regularity of tides. We have only limited attention span, and are overwhelmed by so many crises. The crisis of the past month fades, replaced by a new crisis of the month or even the week. The Junta in Burma (Myanmar) perseveres in its horrible record of oppression. The world focused on it for a few weeks, then moved on.

All the crises have been dwarfed by the economic meltdown of 2008, which started with the subprime mortgage crisis in the United States. This was only the proverbial straw. If not this, some other unraveling of the economic pyramid scheme would have burst the bubble of unregulated greed of unscrupulous funds managers on Wall Street, who ran amok under a blind eye of a government that willfully dismantled the instruments of governmental regulatory responsibilities.

To dispel all doubts that we are living in a global economy, the US economic crisis has reverberated through the world economies, including the very poor countries that are dependent on the aid and charity of the wealthier nations. The governments of all major economies, including the United States, have come to realize that they can not manage it alone and have been forced to coordinate their efforts to dig themselves out of this self-made morass.

But the year 2008 has also been a watershed year. The situation became so bad that it may have woken us from a long slumber of complacent inattention.

In America, in the wake of the shock of 9/11 in 2001, fear took hold. Loud voices of the prophets of fear and greed found a fertile ground. Americans opted for erosion of their constitutional freedoms in exchange for a feeling of safety.

After eight years of utter mismanagement, Americans realized that their pocket-books are dwindling and even the substandard employment of eight years is about to turn in to unemployment and their future as a great nation has been jeopardized.

Against all odds, in contradiction of the conventional wisdom, Americans rose above their prejudices and voted Barack Obama as the president-elect of the United States. No one could have even ventured to predict that a black American could win the election in 2008.

This is of even greater significance because Mr. Obama avoided the mean and negative campaigning that has been the hall-mark of the past successful elections. A majority of Americans rejected the petty politics of fear and rose to vote for a future of hope and equity. Americans voted for Mr. Obama even though he did not take the bait of demonizing those who disagreed with American policies and offered dialogue to reach a better and equitable understanding instead of hubris.

The American Revolution was one of the most important engines for the flowering of democracies in the world. This change in American attitudes and government is a harbinger of a better tomorrow of dialogue and understanding among the peoples of the world. In this interconnected world of fast communications and global economy, no place is too far, or too insulated to escape the consequences of oppression of supposedly distant people. It is time to think of others empathetically to develop common platforms and aspirations.

Industrial revolution has conclusively proven that prosperity is not a zero-sum proposition. For some to be rich, many do not have to be poor. Human ingenuity can help produce more with less effort and invent new techniques and materials of comfort, for the betterment of all.

This is not a new idea; European prosperity rose from the ashes of the conflagration of two world wars on this concept. Leaders reflect our collective will and hopes. No leader, including Mr. Obama by himself can bring about the millennium of peace and cooperation, but with the help of all those who choose a better tomorrow, not only for themselves, but for all, this may be a time for that momentous change. Let us make the year 2009 the start.

Newsmakers 2008

By M H Ahssan

PRIMED POLITICIAN—MANMOHAN SINGH
It was a year of revelation. India discovered the politician in the prime minister, and Manmohan Singh his inner voice to exercise the power of the Prime Minister’s Office. When anointed, Manmohan was to be the CEO who would run the Government and Sonia Gandhi, as UPA chairperson, was to manage the allies, the minority shareholders.

The Left was to provide political ballast and independent scrutiny. As India hurtles towards elections, the rear view mirror shows the distance between intent and reality. For 48 months, the prime minister was hostage to the antics of his Cabinet whom he could not choose and to the ideological intransigence of the Left. Policy decisions were held to ransom at 175 GoMs by vested interest groups. His frequent exhortations of “the Government must…” almost vindicated his status as an outsider in politics.

The economy was too shallow and needed reforms to spur demand to sustain growth. National security called for urgent attention. Yet, political procrastination was the preferred option and national interest was mortgaged to ensure political survival. As a tired people cried for redemption, the reluctant ruler unexpectedly exercised his authority.

Echoing the battle cry of Guru Gobind Singh, he forced the coalition to dump the Left and save the Indo-US nuclear deal. The flash of authority was what the middle class expected of the prime minister. But destiny left little room for him to savour the ‘Singh is King’ chorus.

As the global meltdown threatens jobs and terrorists defy the state, Manmohan faces both a challenge and an opportunity. While India awaits redemption, he has taken charge of the war room for economic resurgence and patriotic pride. How he converts the toxic challenge will determine if his will be a lasting or subprime legacy.

NAMASTE GOODBYE—SHIVRAJ PATIL
Shivraj Patil must have had implicit faith in Murphy’s law which states that “whatever can go wrong will go wrong”. As Union home minister when the country suffered the worst terror attacks in living memory, his conduct became a symbol of all that was wrong with the UPA Government. Since Patil took charge at North Block, there have been over 6,000 terrorist attacks in India, big and small, resulting in nearly 2,000 deaths.

Each time innocents fell victims to terrorists’ bullets and bombs, Patil had a ready fig leaf: there are less deaths now than during the previous BJP-led NDA government. Had he been as obsessed with his job as he was with his looks—he was often called the Serial Dresser for changing his attire three to four times a day—the toll perhaps would have been even less.

a handful, few have any insight about how the UPA works. Yet, it is often said that had Patil won the Lok Sabha election in 2004, the loyalist in him was the Family’s first choice for prime minister. For averting that disaster, the voters of Latur deserve the country’s gratitude.

ROLLER COASTER RIDER—RATAN TATA
For the very private person that he is, 2008 has been a very public roller coaster ride. Beginning with the rock star applause at the Nano rollout in January, Tata has created news and been chased by headlines. Post Corus, lesser entrepreneurs would have been daunted but globalisation is a matter of conviction not convenience for Tata.

Even as he was wrapped up in the acquisition of Jaguar and Land Rover, the shy titan was drawn into an ugly public battle in Singur. Refusing to be blackmailed, he pulled out to relocate in Gujarat. The respite from headlines though was typically brief as terrorists struck Mumbai and almost destroyed the 103-year-old Taj Hotel. While reopening the hotel last week, he said “We can be hurt but we cannot be knocked out.” To many it is enough to do things right. For Tata, leadership means doing the right things. So what if the ride is a roller coaster.

KING OF THE RING—AKSHAY KUMAR
Log bole mujhe Bollywood star, naam mera Akshay Kumar. That’s the actor singing in the soon-to-be-released Chandni Chowk to China. But really, 2008 ensured that the actor never again has to introduce himself to any gathering. Singh is Kinng, a piping hot jalebi cooked in desi ghee, gave Kumar a permanent perch at the very top of Bollywood’s food chain, spawning fashion fads and buzzwords.

A much-hyped Tashan bombed but Kumar made news for all sorts of reasons—from a reported one film fee of Rs 71 crore to a reality show Khatron Ke Khiladi, which kicked off a new channel, from statements taking on the reigning badshah of Bollywood to being ambassador for IPL’s Delhi Daredevils.

A combination of great comedic timing and ever-new action skills, Kumar proved to be a reliable star in a difficult year. He also embodies the virtues that India’s adventurous Punjabi community pride themselves on: sheer simplicity and unadulterated hard work. Most of all, his transformation, from a one-trick virtual stuntman to an all-round entertainer, showed the power of the possible.

OVER THE MOON—G. MADHAVAN NAIR
He promised India the moon, and gave it. When G. Madhavan Nair took over as chairman of Indian Space Research Organisation (ISRO) five years ago, among his tasks was to create a whole new vision for one of the country’s most successful public sector institutions.

ISRO had already demonstrated that it could indigenously design state-of-the-art satellites and build sophisticated rocketry to launch them into desired orbits. Nair decided to take ISRO to where no Indian institution or individual had gone before—first the moon, then possibly Mars and even beyond.

As India watched with bated breath, on November 14, 2008, at 8.31 p.m., the lunar impact probe from the orbiting Chandrayaan 1 struck the moon’s surface, putting India among a handful of nations in the world to achieve the feat.

The successful mission was only one in a long list of ISRO’s achievements that sent the country’s spirit soaring even as terror strikes and an economic downturn threatened to ground India’s ambitions. Under Nair’s meticulous stewardship, India joined the big boys in space in 2008.

ART OF THE DEAL—AMAR SINGH
There is a bit of Amar Singh in every political milestone of the year—from the the nuclear deal to the Batla House encounter to the cash-for-votes scandal.

The flamboyant thakur began the year as a persona non grata, thrashed in Uttar Pradesh and ignored in Delhi. Even then the haughty Singh never behaved like a cringing relative, walking in late for dinners at the prime minister’s house.

And when he got the chance, he glided in and struck the deal of the year. When the Left tried to topple the Government, it was Singh who played saviour with his out-sourced nuclear expertise and the Samajwadi Party MPs.

Now when Singh visits Batla House, it changes the political debate of the day. When he goes for an appointment with the prime minister, the media begins to speculate of a cabinet reshuffle.

His charitable donations make international headlines. Ask the Congress what it finally gained from the nuclear deal and the answer is: Amar Singh.

NOBODY’S PAWN—V. ANAND
For eight years, the powerful Russian chess bloc kept moving the goalposts but each time they found Viswanathan Anand standing in front of them. India’s grandest master was made to win the world chess championship title three times on three continents to be given his just due—but this year he could be denied no more.

After a world championship win via knockout in Tehran in 2000, he defeated the world’s top seven players in a double round robin in Mexico City in 2007 for the first ‘unified’ world chess title. But again, the skeptics sniffed saying neither format was ‘classical’ enough.

So finally, when confronted by the Eastern block’s poster boy, Vladimir Kramnik in a ‘pure’ match-play contest over 11 games in Bonn this year, Anand hunched over the table, contemplated his options and played the most decisive move of his career. Kramnik was knocked over like a petulant pawn and the Indian was the undisputed world chess champion. Game over, argument over.

DOWN AND UNDER—SENSEX
For sheer unpredictability, nothing can vie with the Sensex. It rose spectacularly from 4,505 points in May 2004 to 21,000 at the beginning of the year only to plumb new depths. Having lost over 50 per cent of its gains, the Sensex is languishing around the 10,000-point mark. The pundits, who espoused the decoupling thesis which said that the emerging markets could prosper despite a slowdown in the developed world, have retreated into their burrows.

As the subprime crisis and the subsequent credit crunch devoured large parts of the world, the Great India Story started turning sour as foreign institutional investors (FIIs) stated pulling out their India investments— $13 billion (Rs 62,120 crore), to be exact. The ripple effects of the equity market crisis spilled over into the money markets; the rupee slid from a high of Rs 39 per dollar in January to Rs 48.50 now.

By and large, equity meltdown is the villain behind the rupee’s fall. Equity investors face a tug of war between deteriorating earnings prospects and increasingly attractive valuations. The next year promises to be no easier. Global growth is slowing and a number of countries are likely to go into recession. Markets are likely to remain extremely volatile as investors weigh up bad news on the economy against an unprecedented array of government stimuli.

GOLD STANDARD—ABHINAV BINDRA
When Abhinav Bindra lined up his last shot in the Olympic 10m air rifle final, he would have seen his target and nothing else. A billion swearing Indians saw the bull’s eye for it really was: the shackles of their unfortunate Olympic history.

So when this laconic 25-year-old, with a ferocious appetite for work, fired his final bullet, he shattered the shackles and set Indian sport free. Never again would it be said that India and Olympic gold did not, could not, go together. Bindra’s winning shot carried with it an echo that will forever resonate in the hearts and minds of every Indian athlete who puts on an Olympic uniform from this day on.

Because of him, they will stand at their marks on the world’s biggest stage in sport and will be able to say to themselves, “Yes, I can. Yes, it is possible”. On his return from Beijing, Bindra was a little baffled by his country’s joy, but he has used his position to speak frankly about not just his sport but all of Indian sport, and become the most forceful and legitimate of spokesmen for that most under-represented class: the Indian athlete.

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2009 will be the Year of Affordable Housing?

By M H Ahssan

A combination of fall in house prices and interest rate cut could put the house in order for the realty sector

National Housing Bank (NHB) — a subsidiary of the Reserve Bank of India (RBI) — was created two decades ago to regulate and promote housing finance institutions in India. Given the current economic environment, home finance has gained centrestage, with housing construction being the largest employment generator with linkages to 250 ancillary industries. As the apex housing finance institution, NHB has taken several initiatives to promote affordable housing. In an interview with HNN, NHB chairman and managing director S Sridharspeaks on why he expects 2009 to be the year of affordable housing.

House prices have crashed in the West. There is an expectation among buyers that prices will decline in India as well. How do you see the situation?
The situation in India is quite different from that of the West. In India, the conduct of the monetary policy and regulation over banks and housing finance companies ensured that the housing bubble did not develop. Further, the actual equity component in housing is much higher than in the West. Thus, housing prices in India have fallen a bit and may fall further, but unlikely to get into a free-fall situation.

What needs to be done to reduce housing shortage?
I expect 2009 to be the ‘year of affordable houses’, when affordable houses will be available to the middle and lower income groups in sufficient volumes. This will happen mainly through a combination of fall in house prices and reduction in home loan interest rates. The latter has happened. I hope developers reduce prices to stimulate demand and public housing agencies will take up affordable housing in a big scale. Additional hygiene factors are reduction in transaction cost in home purchases through reduction in stamp duty and registration charges and the availability of risk mitigants such as mortgage guarantee, title insurance, credit guarantee for lower income houses.

Where do you see interest rates on home loans? Is the NHB refinance rate likely to come down further?
Interest rates are headed southward. Public sector banks (PSU banks) have set the pace. Others, including housing finance companies, are following suit. NHB’s refinance rates have also come down to single digit. Refinance for rural housing at concessional rate of 8% per annum for seven years has also been provided. Our PLR has been reduced to 10.75% per annum.

NHB has announced a package for the housing sector. At what interest rate will you lend to HFCs?
The refinance facility of Rs 4,000 crore extended by RBI to NHB will be on-lent by NHB to housing finance companies with the following major conditions. It will be available at an interest rate of 8%, and will be available only for loans below Rs 20 lakh. The facility is available up to March 31, 2010.

You have launched an index of home prices. How is the index doing?
NHB’s RESIDEX, which is India’s first official property index, was launched in July 2007 for five cities — Bengaluru, Bhopal, Delhi, Kolkata and Mumbai — covering the period 2001-2005. It has since been updated to December 2007. The property index has been well received. It is being expanded to cover 15 cities and up to December 2008 which will be ready by March 2009. In another year, it will cover all cities with population above 10 lakh.

What are the trends in housing finance. Do you expect the market to shift to banks?
Housing finance growth rate in 2007-08 was lower at about 19% compared with the previous year. During the first half of the current year, the growth rate was marginally lower reflecting the lower growth in the housing sector. I am confident with the measures announced by the government to stimulate the economy in general and housing in particular, housing finance growth rate will revive. I expect the market share of banks and housing finance companies to remain broadly at the existing level.

NHB has been in the market to raise funds. What are your fund-raising plans and how do you plan to deploy the funds?
NHB has already raised Rs 7,800 crore in the first half of current year July 2008 onwards against Rs 12,100 crore in 2007-08 and Rs 13,200 crore in 2006-07. We expect to raise another Rs 3,000 crore, excluding the Rs 4,000-crore refinance facility from RBI.

How do you plan to tie up life insurance with reverse mortgage?
We have been in discussions with insurance companies for over a year to develop a Reverse Mortgage Lifetime Annuity Product, which enables senior citizens to a monthly annuity for life unlike the present product which is available for 20 years. LIC particularly has shown keen interest and a lot of product development work has been done.

NHB was planning to float a mortgage guarantee. What is the status of the company and how will it help the mortgage business?
Mortgage guarantee or insurance is a key component of a well functioning mortgage finance system and is available practically in all developed and middle income country. Mortgage guarantee provides market-based default risk protection to lenders and could thus enhance the flow of housing finance, particularly to lower income groups. NHB will be introducing the product in the country through a separate joint venture company. The preparation work is on.

Do you see a rise in bad loans in housing finance because of the slowdown?
No. So far, we have not seen any significant deterioration in asset quality of housing finance companies. Interestingly, the asset quality of loans of lower value i.e. less than Rs 5 lakh is better than the portfolio as a whole.

Patience is Key for 2009

By M H Ahssan

Although markets will likely spend much of the coming year wallowing in a broad trading range, a few macro themes will still dictate underlying trends.

As the New Year approaches, investors across the world are feeling like locusts in a dessert. After getting used to picking off a feast, there are currently no asset classes that offer any obvious appeal.

In many parts of the marketplace valuations and sentiment do seem quite depressed. But that largely pertains to risky assets and with the global economy entering its worst growth spell since the Great Depression, it’s hard to make a universal case for being long risk. On the flip side, government bonds and companies with a relatively steady earnings stream — mainly in the consumer staples and healthcare sectors — offer greater safety but valuations in this space have been stretched to the extent that there’s talk of ‘risk averse’ assets falling victim to the next bubble.

Not surprisingly, then, markets are stuck in a tight trading range. And this tug of war between deteriorating economic fundamentals on the one side and oversold markets with low valuations and hyperactive policy action on the other will likely continue for much of 2009. Patience is the key in such an environment as there could be many false dawns and misleading breakdowns.

A major takeaway from the 1930s’ experience is that there is nothing wrong in husbanding cash in a deflationary world. In a piece of telling research, Birinyi Associates estimates that a dollar invested in the US stock market in 1966 would be worth only $1.11 today if you missed the best five trading days during the entire period. But if you avoided the worst five days, the dollar would be worth $2,696 — emphasising the point that the first rule of investing is not to lose money. Still, even in a broadly sideways market, it’s important to have a fix on the few themes that will prove to be enduring and serve as the fundamental backdrop for making investment decisions in the year ahead:

Japan in the 1990s is currently the playbook for the US: Policymakers in the US will probably succeed in preventing a Great Depression redux, but they cannot engineer a new growth cycle. There is a certain inevitability about what follows a debt binge: total credit as a share of the US economy is at a record 350%, similar to the levels in the Japanese economy preceding the end of its boom in 1990. After having borrowed growth from the future, the US economy will now have to sacrifice growth for a long time to come.

Much the same as Japan over the past two decades, US economic growth is likely to average a meagre 1% for the foreseeable future. That implies some sort of a growth recovery in the US as policy action will arrest the current sharp pace of economic contraction. The Japanese economy has witnessed several mini-growth cycles within an era of stagnation and those recoveries have led to sharp market rallies. At some point in 2009, the US economy too will start to turn around providing the stimulus for a more meaningful rally in the stock market. Typically, the market bottoms 3-6 months ahead of the low in an economic cycle.

However, any rally will be capped by the feebleness of the economic recovery given the underlying economic problems related to over-indebtedness. A very firm long-term top for the benchmark S&P 500 index is most likely 1200 — the level that prevailed just before the world changed in mid-September when Lehman Brothers went bankrupt. The episode marked the definitive end of the 2003-07 credit bubble and the hard reality is that the world is not going back to the pre-Lehman days. In technical terms too, support levels from a bull-market era often end up being resistance points in the ensuing bear market regime.

Emerging markets are still the place to be on a relative basis: The acceleration in the growth of developing countries from an average 3.6% prior to 2003 to more than 7% over the following five years was an aberration largely rooted in the global credit bubble. However, emerging markets are nowhere near as leveraged as the US and most other developed countries and should, therefore, be able to expand at their 1980-2002 average economic growth rate of 3.5-4.0%. That is not too bad an outcome at a time when the US and much of the developed world face an extended period of sub-par growth.

The sluggishness in the west will increase the relative appeal of investing in emerging markets. This is in contrast to the 1980s and ’90s when the US was growing at a robust 3% — nearly as fast as the developing world — and looked much less risky. Furthermore, emerging markets are currently trading at a 25% discount to the developed world on most valuation metrics. While it will be hard for emerging markets to completely free themselves of the US market’s ball-and-chain, this asset class should over time deliver higher returns as has been the case over the past five to 10 years despite the high daily and weekly correlations.

A secular bear market in commodities: It’s amazing to see how many financial analysts are still consumed by the myth that commodity prices are in a secular uptrend due to the continued industrialisation of emerging market economies such as China and India. They are forgetting lessons from history. Commodity prices decline over the long-term as the cost of production falls with better technology, increased automation and greater economies of scale. Although they oscillate wildly around their long-term trend line, the broad direction is unmistakably down.

After overshooting in the late 1970s, commodity prices steadily fell through the 1980s and ‘90s even though global growth remained robust through those two decades. As the 2003-07 credit bubble artificially inflated growth across the world to well above trend levels, commodity prices surged but are now quickly reverting to their longterm mean. They have no justification for trading above their marginal cost of production and in times of distress, the prices fall well below the cash cost of production. All of this suggests that prices of commodities from oil to copper are going back to levels that prevailed prior to the 2003-07 boom. One clear implication is that the price of oil over the next couple of years is more likely to average closer to $30 a barrel rather than the consensus price of $60/bbl factored into estimated future earnings for oil-related companies.

A mix of value and quality at a reasonable price should outperform: The dispersion in valuations — defined as the gap between the highest- and lowest-priced stocks — is currently at near record levels. Ordinarily that would suggest it is time to blindly buy the lowly valued equities and sell the relatively richly priced stocks, typically in the defensive stocks. But the problem is that the cheap stuff is mostly in troubled sectors such as financials. It’s hard to see such stocks outperforming unless the bear market regime comes to an end.

But the valuation gap is too extreme to ignore. Therefore, it’s time to overweight that part of the equity universe where valuations are cheap even after normalising earnings and stripping away the abnormal profits of the past few years. However, a premium still needs to be paid for companies with high management quality as survival of the fittest is still an issue and when corporate governance standards are on the decline.

The dollar is most likely confined to a trading range: It’s intellectually easy and fashionable to be bearish on the dollar. But as has been the case for so many years now, reports of the dollar’s demise are greatly exaggerated. To be sure, the dollar is currently on a declining trend and with US adopting a quantitative easing approach to monetary policy, the image of too many dollars flooding the market readily springs to mind.

However, there will be a limit to the dollar’s decline. The deflation of the credit bubble is a global phenomenon and almost all countries around the world are in an aggressive easing mode. It’s just that the US is ahead of the curve. But expect other central banks to soon enough engage in a similar accommodative policy framework as the US, which in turn should limit any downside for the dollar. The dollar is unlikely to make fresh record lows against major currencies in 2009.

Patience is Key for 2009

By M H Ahssan

Although markets will likely spend much of the coming year wallowing in a broad trading range, a few macro themes will still dictate underlying trends.

As the New Year approaches, investors across the world are feeling like locusts in a dessert. After getting used to picking off a feast, there are currently no asset classes that offer any obvious appeal.

In many parts of the marketplace valuations and sentiment do seem quite depressed. But that largely pertains to risky assets and with the global economy entering its worst growth spell since the Great Depression, it’s hard to make a universal case for being long risk. On the flip side, government bonds and companies with a relatively steady earnings stream — mainly in the consumer staples and healthcare sectors — offer greater safety but valuations in this space have been stretched to the extent that there’s talk of ‘risk averse’ assets falling victim to the next bubble.

Not surprisingly, then, markets are stuck in a tight trading range. And this tug of war between deteriorating economic fundamentals on the one side and oversold markets with low valuations and hyperactive policy action on the other will likely continue for much of 2009. Patience is the key in such an environment as there could be many false dawns and misleading breakdowns.

A major takeaway from the 1930s’ experience is that there is nothing wrong in husbanding cash in a deflationary world. In a piece of telling research, Birinyi Associates estimates that a dollar invested in the US stock market in 1966 would be worth only $1.11 today if you missed the best five trading days during the entire period. But if you avoided the worst five days, the dollar would be worth $2,696 — emphasising the point that the first rule of investing is not to lose money. Still, even in a broadly sideways market, it’s important to have a fix on the few themes that will prove to be enduring and serve as the fundamental backdrop for making investment decisions in the year ahead:

Japan in the 1990s is currently the playbook for the US: Policymakers in the US will probably succeed in preventing a Great Depression redux, but they cannot engineer a new growth cycle. There is a certain inevitability about what follows a debt binge: total credit as a share of the US economy is at a record 350%, similar to the levels in the Japanese economy preceding the end of its boom in 1990. After having borrowed growth from the future, the US economy will now have to sacrifice growth for a long time to come.

Much the same as Japan over the past two decades, US economic growth is likely to average a meagre 1% for the foreseeable future. That implies some sort of a growth recovery in the US as policy action will arrest the current sharp pace of economic contraction. The Japanese economy has witnessed several mini-growth cycles within an era of stagnation and those recoveries have led to sharp market rallies. At some point in 2009, the US economy too will start to turn around providing the stimulus for a more meaningful rally in the stock market. Typically, the market bottoms 3-6 months ahead of the low in an economic cycle.

However, any rally will be capped by the feebleness of the economic recovery given the underlying economic problems related to over-indebtedness. A very firm long-term top for the benchmark S&P 500 index is most likely 1200 — the level that prevailed just before the world changed in mid-September when Lehman Brothers went bankrupt. The episode marked the definitive end of the 2003-07 credit bubble and the hard reality is that the world is not going back to the pre-Lehman days. In technical terms too, support levels from a bull-market era often end up being resistance points in the ensuing bear market regime.

Emerging markets are still the place to be on a relative basis: The acceleration in the growth of developing countries from an average 3.6% prior to 2003 to more than 7% over the following five years was an aberration largely rooted in the global credit bubble. However, emerging markets are nowhere near as leveraged as the US and most other developed countries and should, therefore, be able to expand at their 1980-2002 average economic growth rate of 3.5-4.0%. That is not too bad an outcome at a time when the US and much of the developed world face an extended period of sub-par growth.

The sluggishness in the west will increase the relative appeal of investing in emerging markets. This is in contrast to the 1980s and ’90s when the US was growing at a robust 3% — nearly as fast as the developing world — and looked much less risky. Furthermore, emerging markets are currently trading at a 25% discount to the developed world on most valuation metrics. While it will be hard for emerging markets to completely free themselves of the US market’s ball-and-chain, this asset class should over time deliver higher returns as has been the case over the past five to 10 years despite the high daily and weekly correlations.

A secular bear market in commodities: It’s amazing to see how many financial analysts are still consumed by the myth that commodity prices are in a secular uptrend due to the continued industrialisation of emerging market economies such as China and India. They are forgetting lessons from history. Commodity prices decline over the long-term as the cost of production falls with better technology, increased automation and greater economies of scale. Although they oscillate wildly around their long-term trend line, the broad direction is unmistakably down.

After overshooting in the late 1970s, commodity prices steadily fell through the 1980s and ‘90s even though global growth remained robust through those two decades. As the 2003-07 credit bubble artificially inflated growth across the world to well above trend levels, commodity prices surged but are now quickly reverting to their longterm mean. They have no justification for trading above their marginal cost of production and in times of distress, the prices fall well below the cash cost of production. All of this suggests that prices of commodities from oil to copper are going back to levels that prevailed prior to the 2003-07 boom. One clear implication is that the price of oil over the next couple of years is more likely to average closer to $30 a barrel rather than the consensus price of $60/bbl factored into estimated future earnings for oil-related companies.

A mix of value and quality at a reasonable price should outperform: The dispersion in valuations — defined as the gap between the highest- and lowest-priced stocks — is currently at near record levels. Ordinarily that would suggest it is time to blindly buy the lowly valued equities and sell the relatively richly priced stocks, typically in the defensive stocks. But the problem is that the cheap stuff is mostly in troubled sectors such as financials. It’s hard to see such stocks outperforming unless the bear market regime comes to an end.

But the valuation gap is too extreme to ignore. Therefore, it’s time to overweight that part of the equity universe where valuations are cheap even after normalising earnings and stripping away the abnormal profits of the past few years. However, a premium still needs to be paid for companies with high management quality as survival of the fittest is still an issue and when corporate governance standards are on the decline.

The dollar is most likely confined to a trading range: It’s intellectually easy and fashionable to be bearish on the dollar. But as has been the case for so many years now, reports of the dollar’s demise are greatly exaggerated. To be sure, the dollar is currently on a declining trend and with US adopting a quantitative easing approach to monetary policy, the image of too many dollars flooding the market readily springs to mind.

However, there will be a limit to the dollar’s decline. The deflation of the credit bubble is a global phenomenon and almost all countries around the world are in an aggressive easing mode. It’s just that the US is ahead of the curve. But expect other central banks to soon enough engage in a similar accommodative policy framework as the US, which in turn should limit any downside for the dollar. The dollar is unlikely to make fresh record lows against major currencies in 2009.

Tackling E-Waste

By Sheena Shafia

With drastic changes in weather patterns across continents, rise in sea level, melting of polar icecaps and ever-increasing levels of all forms of pollution; conservation of environment is a major concern for nations. Initially disbanded as the task of the ‘green brigade’, the corporate world has woken up from its deep slumber. Embedded as an important postulate of social responsibility among most organisations across sectors, adherence to environmental sustainability has emerged as a major consideration for them.

Expansive IT infrastructure is a cardinal component of most business processes and has improved productivity exponentially. But it is one of the major reasons for consumption of energy, water, emission of greenhouse gases and generation of electronic or e-waste. Hence, the transition towards the idea of ‘green IT’ has caught up. Tangible and visible efforts like data centre energy cost reduction, virtualization leading to server consolidation, remote management leading to CO 2 footprint reduction, reducing software footprint of applications by consolidation form the backbone of Green IT culture.

However the scale of the problem is simply immense. About 3.3 lakh tonnes of e-waste generated last year was dumped into the rivers, land fills and sewage drains. While the chemicals used to corrode e-waste seep into the ground, e-waste junk like refrigerator bodies, compressors from air conditioners and waste plastic used to make phones just keep on piling up. Only 19,000 tonnes of the annual e-waste is recycled. This is due to high refurbishing and reuse of electronics products in the country and also due to poor recycling infrastructure.

E-waste is of concern largely due to the toxicity and carcinogenicity of some of the substances. Toxic substances may include lead, mercury and cadmium. Carcinogenic substances in electronic goods include polychlorinated biphenyls (PCBs). A typical computer monitor may contain more than 6% lead by weight, much of which is in the lead glass of the CRT. Capacitors, transformers, PVC insulated wires, PVC coated components often contain dangerous amounts of polychlorinated biphenyls. “E-waste is going to be one the major problems facing the world after climate change and poverty,” says Nokia India managing director D Shivakumar.

According to a report by hardware body Manufacturers Association of Information Technology (MAIT), e-waste from discarded computers, TVs and mobile phones is projected to grow to more than 800,000 tonnes by 2012 with a growth rate of 15% in the country. “If the situation is not controlled, we may see large land fills of junk e-waste around our cities 10 years down the line,” says MAIT executive director Vinnie Mehta.

“For Green IT initiatives to achieve a sustainable impact, firms have to transform their approach from obligation to opportunity. As IT adoption increases in India, we also need to ensure that incorporation of green IT infrastructure is inculcated right from the beginning,” says Nasscom vice-president Rajdeep Sahrawat.

Wipro, HCL, Cisco and IBM have ensured green data centres within their organisations and provide consultancy services to set them up for clients. “We have been helping companies actively in developing a complete road map on green IT including the non-IT elements like infrastructure design, hardware used, et all. The effective management of IT infrastructure helps in reducing of carbon footprint of an organisation. We all need to contribute,” said vice-president of professional services division in Wipro Infotech Deepak Jain.

British Telecommunication (BT) has designed a carbon impact assessment mechanism that enables organisations to accurately calculate the amount of CO 2 emissions produced with the use of networked IT services. It allows a number of business scenarios to be tested and an assessment made of the associated energy and carbon reductions.

“The link between sustainability and commercial success is, without doubt, becoming clearer all the time. India is rapidly becoming a global centre for information and communications technology development and its economic growth rate is high. It is vital that this commercial success is matched by a commitment towards social responsibility,” says BT India chairman Arun Seth.

Many companies are trying to adopt a more macro-level approach by constructing green buildings. According to Indian Green Building Council, green buildings use less energy, water and natural resources and create less e-waste. So it’s healthier for the people living inside compared to a standard building.

Eventually, the government has to define roles of each stakeholder including the vendors, the users, the recyclers and regulator for environment friendly recycling. Also, companies must realise that going green actually results in money saved and hence focus their efforts on eco-friendly products that reduce carbon and other harmful emissions. Products sold must be backed by efficient disposal strategies to effectively tackle the problem of e-waste.

Gold’s Still the Favourite Choice of Investors

By M H Ahssan

Agri Commodities Like Sugar, Soyabean & Rubber Are Expected To Generate Heat In 2009

While gold could outperform other commodities in 2009, things might start looking up for metals and crude as well by the middle of next year, according to analysts. In agri commodities, sugar, soyabean and rubber along with a few spices could generate interest.

The yellow metal has performed well in comparison to commodities like base metals and crude oil as well as other asset classes like equities, debt, realty and bank fixed deposit scheme.

The precious metal made history in March when prices touched an all-time high of $1,032 an ounce on the back of softer dollar, surging crude prices and good investment flows. However, prices fell to $681 level in October but have recovered to current level at $885.

“Gold will continue to remain as a favourite commodity with investors,” says Naveen Mathur of Angel Commodities. He sees the metal getting support at $650 with a potential to exceed its record high of $1,030 per ounce.

Other analysts too are bullish on gold with Kishore Narne, research head, Anand Rathi commodities, predicting $1,200 levels by mid-2009. “With liquidity infusion across the globe, paper currency will see an erosion in value and gold will be a better vehicle for investment,” says Mr Narne.

In 2008, most of the commodities were on a rollercoaster ride. Crude oil, copper, soyabean and crude palm oil hit all-time highs. Prices, however, could not sustain at those levels and there was a fall in investment flows into commodities following the US subprime mortgage crisis and the global financial turmoil in its aftermath. Also, after July, the dollar recovered and demand destruction with the onset of a global recession and inventory build-up led to a sharp fall in crude oil and base metal prices.

In the case of edible oil complex (oilseed &oil) lower stock holding and rally in crude oil supported the prices during period January to June. Thereafter edible oil saw a correction in prices due to good production estimates and fall in crude oil prices. But now when most of the governments are announcing stimulus packages and banks slashing down the interest rates to ease money supply things might improve even for commodities like base metals and crude oil.

Jayant Manglik of Religare Commodities said that following gold, the Year 2009 will also see a good demand for base metals and crude oil with establishment of demand and supply equilibrium.

Strong growth recorded by China, a major base metals consumer, led to sharp rise in metals until mid-2008 following stocking and a rise in industrial activity. Copper hit an all-time high of $8,930 per tonne in first week of July due to rise in construction activity, but prices thereafter fell to $,2800 level. Even crude oil touched an all-time high of $147 per barrel and thereafter fell by 75% to $40.

But Atul Shah of Emkay Commodities is not bullish on all metals. He bets on zinc, nickel apart from crude oil. “Prices of these commodities will consolidate in first two quarters of the coming year and thereafter will show a good bounce,” said Mr Shah.

Sugar is one commodity which will attract investor interest in 2009 due to tight supply and good demand. In Indian market, according to an Angel Commodity report, prices will remain weak in January due to supply pressure from ongoing crushing. Prices might touch a low of 1,650 per quintal and thereafter recover to touch the Rs 2,050 per quintal level.

Even Ashok Mittal, vice-president Karvy Comtrade is bullish on sugar and is targeting Rs 1,900-Rs 1,950 per quintal levels as demand is expected to increase between 6% and 8%. “Also, since the global and domestic production are expected to fall by 25% prices could increase between 25% and 30% in the coming year,” he adds.

Other commodities like rubber and jeera might also show upside due to demand improving in these commodities. “Indian jeera is in good demand globally, which will support this commodity. Rise in crude oil will increase the price of synthetic rubber and generate demand for natural rubber as the substitute,” said Vibhuratan Dhara of Bonanza Commodity.

Gold’s Still the Favourite Choice of Investors

By M H Ahssan

Agri Commodities Like Sugar, Soyabean & Rubber Are Expected To Generate Heat In 2009

While gold could outperform other commodities in 2009, things might start looking up for metals and crude as well by the middle of next year, according to analysts. In agri commodities, sugar, soyabean and rubber along with a few spices could generate interest.

The yellow metal has performed well in comparison to commodities like base metals and crude oil as well as other asset classes like equities, debt, realty and bank fixed deposit scheme.

The precious metal made history in March when prices touched an all-time high of $1,032 an ounce on the back of softer dollar, surging crude prices and good investment flows. However, prices fell to $681 level in October but have recovered to current level at $885.

“Gold will continue to remain as a favourite commodity with investors,” says Naveen Mathur of Angel Commodities. He sees the metal getting support at $650 with a potential to exceed its record high of $1,030 per ounce.

Other analysts too are bullish on gold with Kishore Narne, research head, Anand Rathi commodities, predicting $1,200 levels by mid-2009. “With liquidity infusion across the globe, paper currency will see an erosion in value and gold will be a better vehicle for investment,” says Mr Narne.

In 2008, most of the commodities were on a rollercoaster ride. Crude oil, copper, soyabean and crude palm oil hit all-time highs. Prices, however, could not sustain at those levels and there was a fall in investment flows into commodities following the US subprime mortgage crisis and the global financial turmoil in its aftermath. Also, after July, the dollar recovered and demand destruction with the onset of a global recession and inventory build-up led to a sharp fall in crude oil and base metal prices.

In the case of edible oil complex (oilseed &oil) lower stock holding and rally in crude oil supported the prices during period January to June. Thereafter edible oil saw a correction in prices due to good production estimates and fall in crude oil prices. But now when most of the governments are announcing stimulus packages and banks slashing down the interest rates to ease money supply things might improve even for commodities like base metals and crude oil.

Jayant Manglik of Religare Commodities said that following gold, the Year 2009 will also see a good demand for base metals and crude oil with establishment of demand and supply equilibrium.

Strong growth recorded by China, a major base metals consumer, led to sharp rise in metals until mid-2008 following stocking and a rise in industrial activity. Copper hit an all-time high of $8,930 per tonne in first week of July due to rise in construction activity, but prices thereafter fell to $,2800 level. Even crude oil touched an all-time high of $147 per barrel and thereafter fell by 75% to $40.

But Atul Shah of Emkay Commodities is not bullish on all metals. He bets on zinc, nickel apart from crude oil. “Prices of these commodities will consolidate in first two quarters of the coming year and thereafter will show a good bounce,” said Mr Shah.

Sugar is one commodity which will attract investor interest in 2009 due to tight supply and good demand. In Indian market, according to an Angel Commodity report, prices will remain weak in January due to supply pressure from ongoing crushing. Prices might touch a low of 1,650 per quintal and thereafter recover to touch the Rs 2,050 per quintal level.

Even Ashok Mittal, vice-president Karvy Comtrade is bullish on sugar and is targeting Rs 1,900-Rs 1,950 per quintal levels as demand is expected to increase between 6% and 8%. “Also, since the global and domestic production are expected to fall by 25% prices could increase between 25% and 30% in the coming year,” he adds.

Other commodities like rubber and jeera might also show upside due to demand improving in these commodities. “Indian jeera is in good demand globally, which will support this commodity. Rise in crude oil will increase the price of synthetic rubber and generate demand for natural rubber as the substitute,” said Vibhuratan Dhara of Bonanza Commodity.

STARTING SMALL, GOING BIG

By M H Ahssan

The rise of micro-finance institutions (MFIs) in India has opened a new door of opportunities for prospective entrepreneurs. HNN speaks to them to find out how, in the near future, this sector is destined to witness growth

Though, India, today is a force to reckon with in the global arena, there are certain sections of our Indian society that continue to be economically backward. But with the renewed focus on social entrepreneurship and “economic equality”, micro-finance ventures are seen to be the tools to drive this change. This has also given the economically backward a ray of hope as several micro-finance ventures are providing monetary help to this pool of budding entrepreneurs who are talented and ambitious but don’t have the financial support system to translate their ideas into real-time business application. Here’s a look at how MFIs are playing a crucial role by providing entrepreneurs a lot of opportunities.

THE GROWTH TRAJECTORY
History is evident of the fact that “informal” micro-finance ventures have existed since 1700. But these were usually in the form of moneylenders who were infamously popular for cheating people. Vineet Rai, Founder, Aaviskrar explains, “While we were under the British rule for over 300 years, micro-credit was never the administration’s priority at that time. And while there were cooperatives, lending was designed to capture the creamier pie; i.e. the traditional retail and corporate customers who were more concentrated and highly populated, back then. And it was only after independence that micro-credit, as a concept came into existence and gained immense popularity. The introduction of the ‘Self Help Groups (SHG)’ format and the nationalised banks’ lending system helped accentuate the importance of the same.”

Kalpana Sankar, CEO, Handin-Hand adds to this and explains further, “The growth trajectory of the Indian microfinance system can be traced way back to the mid-eighties and early nineties. Incorporating lessons from the micro-finance movement in Bangladesh and participatory group lending approaches in India, helped push this sector forward. And as that market reached its saturation point and the realisation of these initiatives not having the desired impact dawned on people, the search for new models and customers began, which led to the institutionalisation of MFIs.”

LAND OF THE RISING SUN
It does not take a genius to realise this but there has always been a need for micro-finance ventures. However, this concept gained some significance after Dr. Mohammed Yunus started his venture in the remote areas of Bangladesh. In India, however, the pace has been rather slow. Reports say that there are 700 million people living in rural areas and the recent World Bank studies confirm an increase in the percentage of poor people in India. Further, these are the same people who do not have access to timely credit from banking channels. This has led to poverty in various parts and several basic demands of this segment of the population are still unmet.

However, with the changing times, there has been a shift in the mindset of people. Though it has taken its time, many MFIs have been initiated, thanks to the modern approach of several entrepreneurs and social enterprises. Like Vishal Mehta, MD, Lok Capital adds, “The rise of MFIs started two years ago. The consistent and the gradual change lead to this rise. Also, with the changing mindset, demand for these ventures is only increasing.” Rai adds to this and says that because of the increasing number of entrepreneurs, companies are waking up to this exciting business model that is not only commercially attractive but also socially meaningful. In terms of success, Sankar says that lending to the poor has proven to be a successful and strategic move and MFIs will be able to break even within two-five years, depending on their approach.

“The risk is dispersed and banks/MFIs view this as a successful commercial proposition. Foreign investors are able to invest in equity and debt and they are able to obtain quick returns too. Hence, there is huge competition among the financing institutions and also, non banking finance companies are expanding rapidly to keep pace with the government/private banks, as scale and outreach are crucial factors for proper sustainability of a MFI,” explains Sankar.

NEED FOR MORE
While there are many reports saying that these MF ventures are doing more than their bit to help people, experts say that this may just not be enough. With the increasing population and meagre wage rates, people need more than just a chance to grow. “There have been promoters and NGOs that have been doing their bit. But now is the time for major players, also, to step in and contribute,” says Mehta. “Also, there is no exploitation of the people. The rate of interest is low and people below the poverty line are given equal treatment. This makes it all the more important for India to have more MFIs.”

Sankar adds, “It has helped people in diversifying their livelihoods and has significantly, contributed towards raising the incomes of poor families. It has allowed the poor to accumulate assets and has helped strengthen their security system. Finally, it also has a very significant social impact. In areas with sound micro-finance programmes, the quality of life of the poor has improved considerably as they have started investing in health, nutrition and sanitation and education of children, due to an increase in income.”

For a society to fully realise its potential, it is imperative that all sections contribute to and partake in the development process. And several demonstration projects in micro-finance in India have shown and proven that the economically backward, in India are a bankable lot. How far this sector continues to grow is for us to wait and watch!

STARTING SMALL, GOING BIG

By M H Ahssan

The rise of micro-finance institutions (MFIs) in India has opened a new door of opportunities for prospective entrepreneurs. HNN speaks to them to find out how, in the near future, this sector is destined to witness growth

Though, India, today is a force to reckon with in the global arena, there are certain sections of our Indian society that continue to be economically backward. But with the renewed focus on social entrepreneurship and “economic equality”, micro-finance ventures are seen to be the tools to drive this change. This has also given the economically backward a ray of hope as several micro-finance ventures are providing monetary help to this pool of budding entrepreneurs who are talented and ambitious but don’t have the financial support system to translate their ideas into real-time business application. Here’s a look at how MFIs are playing a crucial role by providing entrepreneurs a lot of opportunities.

THE GROWTH TRAJECTORY
History is evident of the fact that “informal” micro-finance ventures have existed since 1700. But these were usually in the form of moneylenders who were infamously popular for cheating people. Vineet Rai, Founder, Aaviskrar explains, “While we were under the British rule for over 300 years, micro-credit was never the administration’s priority at that time. And while there were cooperatives, lending was designed to capture the creamier pie; i.e. the traditional retail and corporate customers who were more concentrated and highly populated, back then. And it was only after independence that micro-credit, as a concept came into existence and gained immense popularity. The introduction of the ‘Self Help Groups (SHG)’ format and the nationalised banks’ lending system helped accentuate the importance of the same.”

Kalpana Sankar, CEO, Handin-Hand adds to this and explains further, “The growth trajectory of the Indian microfinance system can be traced way back to the mid-eighties and early nineties. Incorporating lessons from the micro-finance movement in Bangladesh and participatory group lending approaches in India, helped push this sector forward. And as that market reached its saturation point and the realisation of these initiatives not having the desired impact dawned on people, the search for new models and customers began, which led to the institutionalisation of MFIs.”

LAND OF THE RISING SUN
It does not take a genius to realise this but there has always been a need for micro-finance ventures. However, this concept gained some significance after Dr. Mohammed Yunus started his venture in the remote areas of Bangladesh. In India, however, the pace has been rather slow. Reports say that there are 700 million people living in rural areas and the recent World Bank studies confirm an increase in the percentage of poor people in India. Further, these are the same people who do not have access to timely credit from banking channels. This has led to poverty in various parts and several basic demands of this segment of the population are still unmet.

However, with the changing times, there has been a shift in the mindset of people. Though it has taken its time, many MFIs have been initiated, thanks to the modern approach of several entrepreneurs and social enterprises. Like Vishal Mehta, MD, Lok Capital adds, “The rise of MFIs started two years ago. The consistent and the gradual change lead to this rise. Also, with the changing mindset, demand for these ventures is only increasing.” Rai adds to this and says that because of the increasing number of entrepreneurs, companies are waking up to this exciting business model that is not only commercially attractive but also socially meaningful. In terms of success, Sankar says that lending to the poor has proven to be a successful and strategic move and MFIs will be able to break even within two-five years, depending on their approach.

“The risk is dispersed and banks/MFIs view this as a successful commercial proposition. Foreign investors are able to invest in equity and debt and they are able to obtain quick returns too. Hence, there is huge competition among the financing institutions and also, non banking finance companies are expanding rapidly to keep pace with the government/private banks, as scale and outreach are crucial factors for proper sustainability of a MFI,” explains Sankar.

NEED FOR MORE
While there are many reports saying that these MF ventures are doing more than their bit to help people, experts say that this may just not be enough. With the increasing population and meagre wage rates, people need more than just a chance to grow. “There have been promoters and NGOs that have been doing their bit. But now is the time for major players, also, to step in and contribute,” says Mehta. “Also, there is no exploitation of the people. The rate of interest is low and people below the poverty line are given equal treatment. This makes it all the more important for India to have more MFIs.”

Sankar adds, “It has helped people in diversifying their livelihoods and has significantly, contributed towards raising the incomes of poor families. It has allowed the poor to accumulate assets and has helped strengthen their security system. Finally, it also has a very significant social impact. In areas with sound micro-finance programmes, the quality of life of the poor has improved considerably as they have started investing in health, nutrition and sanitation and education of children, due to an increase in income.”

For a society to fully realise its potential, it is imperative that all sections contribute to and partake in the development process. And several demonstration projects in micro-finance in India have shown and proven that the economically backward, in India are a bankable lot. How far this sector continues to grow is for us to wait and watch!

Finally, Gift a Will to Your Dependents

By M H Ahssan

Making a will is the simplest way to secure their future and avoid family disputes

When life insurance companies keep reminding breadwinners of their responsibility towards their family in any eventuality, there are some prudential measures that nobody reminds individuals. These measures are as important as buying an insurance cover or investing for the future and yet do not require much efforts. Here are some of the measures that ensure your dependents get their due without any paperworks or expenditure:

Making nominations
This is the simplest method of ensuring that one’s assets — savings accounts, insurance policies, provident fund and other investments — are transferred to dependents’ at no extra cost. While making nominations, it is equally important to periodically review the nominations as relationships, dependencies and situations can change over a period of time and you might no longer feel the need to transfer your possessions to the nominee chosen earlier. “And, while making/changing a nomination, you need to remember that if a nominee is a minor, he/she should have a suitable guardian assigned. Also, any change in the nomination necessitates a witness,” says financial planner Prerana Salaskar-Apte, partner, The Tipping Point. However, a nomination holds good only in the absence of a valid contrary claim by another person. If it is challenged by a will that disposes the assets in a contrary manner, the nomination will be rendered ineffective. Moreover, if the individual dies intestate, the laws relating to succession will supersede the nomination.

Act on your will
The limitation of the nomination process underlines the need for a Will, which can reduce the chances of disputes among family members after the testator’s death. One of the common misconceptions about a Will is that it is meant only for the affluent class, but experts disagree. “In today’s uncertain times, it is prudent for individuals who are of sound mental disposition and abilities to consider making a Will of their movable and immovable assets,” says Amit Seth, attorney-at-law and partner, Seth Associates.

A will can be drawn up by anyone even on a plain sheet of paper. The language should be clear and the contents should be unambiguous so as to leave no doubt about the testator’s intention. It should list the complete details of the testator’s properties as also about the legal heirs, who may or may not be related to him/her. Clearly stating the testator’s intention for bequeathing his/her assets to legal heirs is also critical. “If the testator wants to leave out a specific legal heir from becoming a beneficiary, he should specifically say so in the Will,” suggests Mr Seth.

The will should disclose the date and place of its execution, and should have at least two witnesses (who are not the beneficiaries). Though registration is not mandatory for affirming a will’s legal sanctity, it lends credence to its validity.

The time taken and costs involved in executing a Will could vary depending upon several factors. Says Dhruv Agarwala, cofounder, iTrust.in: “A lawyer could take up to four weeks to draft a Will. The process of registering a will at the district court could entail another 2-4 weeks. The total cost will be close to Rs 10,000-12,000 plus service tax, including registration of the Will and the associated fees.”

Seek professional advice
Another method of distributing your property amongst your heirs could be estate planning. Financial planners and wealth managers help you in valuing your estate and completing other formalities. “It involves amassing and disposing of the assets to ensure that the end goals of the owner are met after his/her death. Advice is given on the basis of valuation of assets for the purpose of division amongst multiple heirs. The applicable laws of the land (and religion of the individual) with respect to succession are also taken into account,” says Ms Salaskar-Apte. It encompasses tax planning as well, so as to ensure minimum tax outgo at the time of transfer to beneficiary.

“Drafting of a Will is an integral part of the entire process. One can also choose to form a trust in case the beneficiaries are minor children or charitable organisations. The difference here is that while the Will can be implemented only after following the requisite legal procedures, the trust can transfer the property to the beneficiary immediately after the testator’s death,” says financial planner Kartik Jhaveri.

Turn to Traditional Strategies for a Financially Sound 2009

By M H Ahssan

The year 2008 has been quite turbulent for investors. From an all-time peak of 21,206 in January, the BSE Sensex plummeted by 63% to 7,697 levels in October. Networth of equity investors has halved. The global slowdown has also had its impact on the job sector, which has added to investors’ woes.

Let’s take the example of a cloth merchant. He bought a stock when it was just priced at Rs 3. Subsequently, the scrip rose to Rs 120 when his financial advisor asked him to sell the stock as it had no intrinsic value. The artificial rise in the price, however, made him stick to the stock. Now, it’s trading at Rs 12. The biggest lesson the businessman learnt was every asset has a real value.

Kartik Jhaveri, a certified financial planner, says, “Whether it is real estate or stocks, there is a fair value. Some exuberance would have propped up the value of a stock worth Rs 100 to Rs 400 but that doesn’t mean the stock will touch Rs 800 for you to book profits in the future. Similarly, real estate prices move in line with inflation. If you have booked a flat worth Rs 10 lakh, you can expect an appreciation of 8% in a year. Anything in excess would be artificial, which would eventually crash.”

The year also taught you that things that look rosy can actually turn ugly in a short span. “If you have a steady income, ensure you at least save 30% at all times. If the times are good, you can easily save up to 50% of your disposable income, which can be of help during a contingency,” Mr Jhaveri adds. Another lesson learnt is to avoid over leveraging. This simply means if you can afford only a 2 BHK, stick to it. Till 2004-05, some banks were willing to finance 90% of the property value. Now, it’s the borrowers’ headache to foot that expensive EMI at such turbulent times when their investments are underperforming. At any point in time, a borrower should not borrow in excess of 70% of the house value. If you are planning to buy a house now, the loan-to-value ratio should be still lower at 60:40. That will give you additional flexibility to deal with your finances.

Also, it’s a bad idea to borrow for investing in stocks. “Restrict your stock exposure to the personal funds you can use as no asset class can appreciate forever. Investors particularly borrowed to invest in IPOs. But investing in IPOs turned out to be the biggest joke in 2008,” says Amar Pandit, a certified financial planner.

Finally, remember what suits your best pal isn’t exactly what you need. If he entered the market around 10,000 and exited near the 15,000 mark after booking profits, you don’t have to adopt the same strategy. You can build up your reserves now and capitalise on many more bull runs to come. However, the underlying assumption here is that you should stay invested up to at least 5 years to withstand the highs and lows. Moreover, at such times, you should lock your money in instruments that have the least exit penalty. This flexibility is essential to encash for upcoming lucrative opportunities.

Do a Realty Check Before Investing

By Sohaib Razdan

Falling Interest Rates & Attractive Schemes Are Set To Change The Property Scene In ’09

Is this the right time to buy a house? Besides ones personal situation, the external factors that influence this decision are real estate prices and interest rates.

On the interest rate front, market signals are positive. Most public sector banks have cut their benchmark prime lending rates by 0.75% to 12.5% effective January 1, 2009. The country’s largest mortgage finance company HDFC has also cut its lending rates by 0.5%. Even lending rate for loans below Rs 20 lakh for both from stateowned banks and HDFC are cheaper. However, there is still an uncertainty over the real estate prices. Builders are doling out freebies such as free registration, stamp duty waiver, free parking area or even a flat in another locality. But the rack rates have not come down.

“If there is indeed a genuine need for a home and the current market changes have resulted in the required affordability, one should go ahead and buy now. If the interest is more investment oriented, waiting till March 2009 might bring some better deals — however, this is a risk, since many add-on offers may no longer exist by then.” says Anuj Puri, chairman & country head, Jones Lang Lasalle Meghraj. A couple of years ago buyers were scrambling to buy a house as prices rose every month. Now, the tide has turned. Buyers are waiting in the sidelines expecting the real estate prices to fall. “Prices will fall further in historically over-priced pockets until demand picks up. The rationalisation process should reach a peak towards mid-2009.” Mr Puri says.

So either the same house will be cheaper tomorrow or you can step up your budget so as to afford a bigger house. For those buying a house on borrowed money, it would be difficult to reconcile to a fall in real estate prices.

“For example, if the property value drops to Rs 75,00,000 from Rs 1 crore (at the time of purchase) then you have to pay a difference in the home equity to the bank. Otherwise the bank has a right to take the possession of your house,” says Swapnil Pawar a financial advisor and director Park Financial Advisors.

At the same time, lenders are now demanding that home buyers come up with a higher margin if they want a loan. “Property prices have been overpriced in the recent times. So there is scope for significant correction. Similarly, even the pay cuts and the prevailing uncertainty over jobs and pay hikes have necessitated extreme prudence in the lending business,” says a private sector banker.

Taking a speculative wait-andwatch stance should be a game of experts, who are also willing to risk a loss if they time their move wrongly. Genuine buyers should buy as soon as prices are affordable. After a particular phase in a career, the growth in income stabilises at 10-15%. That’s the best time to gauge the borrower’s affordability to buy a house. At times, couples often miscalculate their affordability.

Do a Realty Check Before Investing

By Sohaib Razdan

Falling Interest Rates & Attractive Schemes Are Set To Change The Property Scene In ’09

Is this the right time to buy a house? Besides ones personal situation, the external factors that influence this decision are real estate prices and interest rates.

On the interest rate front, market signals are positive. Most public sector banks have cut their benchmark prime lending rates by 0.75% to 12.5% effective January 1, 2009. The country’s largest mortgage finance company HDFC has also cut its lending rates by 0.5%. Even lending rate for loans below Rs 20 lakh for both from stateowned banks and HDFC are cheaper. However, there is still an uncertainty over the real estate prices. Builders are doling out freebies such as free registration, stamp duty waiver, free parking area or even a flat in another locality. But the rack rates have not come down.

“If there is indeed a genuine need for a home and the current market changes have resulted in the required affordability, one should go ahead and buy now. If the interest is more investment oriented, waiting till March 2009 might bring some better deals — however, this is a risk, since many add-on offers may no longer exist by then.” says Anuj Puri, chairman & country head, Jones Lang Lasalle Meghraj. A couple of years ago buyers were scrambling to buy a house as prices rose every month. Now, the tide has turned. Buyers are waiting in the sidelines expecting the real estate prices to fall. “Prices will fall further in historically over-priced pockets until demand picks up. The rationalisation process should reach a peak towards mid-2009.” Mr Puri says.

So either the same house will be cheaper tomorrow or you can step up your budget so as to afford a bigger house. For those buying a house on borrowed money, it would be difficult to reconcile to a fall in real estate prices.

“For example, if the property value drops to Rs 75,00,000 from Rs 1 crore (at the time of purchase) then you have to pay a difference in the home equity to the bank. Otherwise the bank has a right to take the possession of your house,” says Swapnil Pawar a financial advisor and director Park Financial Advisors.

At the same time, lenders are now demanding that home buyers come up with a higher margin if they want a loan. “Property prices have been overpriced in the recent times. So there is scope for significant correction. Similarly, even the pay cuts and the prevailing uncertainty over jobs and pay hikes have necessitated extreme prudence in the lending business,” says a private sector banker.

Taking a speculative wait-andwatch stance should be a game of experts, who are also willing to risk a loss if they time their move wrongly. Genuine buyers should buy as soon as prices are affordable. After a particular phase in a career, the growth in income stabilises at 10-15%. That’s the best time to gauge the borrower’s affordability to buy a house. At times, couples often miscalculate their affordability.

‘We will make social audit compulsory for NREGA scheme’

By M H Ahssan & Kajol Singh

The amendments to the Land Acquisition Act, 1894, along with the new Rehabilitation and Resettlement Bill, 2008 (R&R Bill) was supposed to rid state governments of the role of acquiring land for private industrial projects and come up with a non-exploitative resettlement policy. That was not to be, as the amendment and bills got referred to a Group of Ministers (GoM) for the second time. Minister for rural development Raghuvansh Prasad Singh speaks to HNN the way forward.

The amendments to the Land Acquisition Act, 1894 and the R&R Bill have been extensively examined by a GoM and the standing committee of Parliament, but now the whole issue has been referred to another GoM. What exactly is the reason for this?
Well, the standing committee report and the bills and amendments proposed by the ministry differed on very significant points. We agreed on several points but we also disagreed on many. For example, we proposed that when a private company proposes an industrial project, it would acquire 70% of the land required on its own before asking for the state’s help in the remaining acquisition and that too if issues of contiguity are involved.

The standing committee, on the other hand, felt that the state governments should have the discretion to acquire all the land required, if they feel the project merits it. All these differences were weighed and the Cabinet in its wisdom felt that the bills should be revisited.

The Parliament session concluded last week was in fact the penultimate session of the 14th Lok Sabha. Don’t you think the Bills will now never make it as legislation, at least in the life of this government?
Of course not, I have every hope that the bills will be cleared. We are yet to constitute a GoM but I feel that it will take no more than a couple of meetings for it to arrive at a conclusion on the Bills. We have already held the widest possible consultation for this and I have personally met Medha Patkar twice over the bills. All this is not in vain. We will take time, but will come up with a set of policies that will have the widest consensus. After all it took two years to bring the NREGA to Parliament.

Talking of the NREGA, one has seen that a charge that has been levelled against the Act is that there has been hardly any creation of permanent assets. As a dole programme, do you think this is incidental to the Act?
Only the anti-rural, anti-poor people can level such charges against a truly welfare oriented programme. Almost 50% of the programme is oriented towards water conservation. Do you know that we have figures to prove that water tables across the countryside have risen significantly? In the urban areas this may not appear to be important. But there is all-round benefit because migration to urban areas has also come down significantly.

In Assam, for example, nearly 50 villages were saved from floods because the NREGA helped build a series of dams for a bargain basement price of Rs 9.5 lakh. As there are two and a half lakh panchayats across the country, how can each one’s performance be the same? There will always be some smart people and also some not-so-smart ones. One should note that even agricultural minimum wages have increased across the board in states, thanks to NREGA.

Since the increase in agricultural wages seems to have angered the powerful farmers lobby, do you expect a political backlash against the UPA government?
The NREGA is only for providing work in the lean season of agriculture. Therefore the farmers cannot blame NREGA for luring workers away from agricultural work. There is also a clause in the NREGA, referring to the state minimum wages Act of 1943 that the wages for NREGA have to be the same as the states minimum wages.

What has happened is what happens when there is a wider variety of employment available—that is, workers have a choice. Farmers should also look at the flipside, they may have to pay more but migration has been slowed because of NREGA and therefore there is agricultural labour available in the countryside.

The CAG report was quite scathing over the implementation of NREGA. Are you taking any steps to counter that impression?
We are making social audits compulsory, and have almost finalised procedures to ensure that gram sabha meetings be videographed. What this will do is ensure that there is a working gram sabha in place, and the NREGA fund is spent after adequate debate and preparation.

‘We will make social audit compulsory for NREGA scheme’

By M H Ahssan & Kajol Singh

The amendments to the Land Acquisition Act, 1894, along with the new Rehabilitation and Resettlement Bill, 2008 (R&R Bill) was supposed to rid state governments of the role of acquiring land for private industrial projects and come up with a non-exploitative resettlement policy. That was not to be, as the amendment and bills got referred to a Group of Ministers (GoM) for the second time. Minister for rural development Raghuvansh Prasad Singh speaks to HNN the way forward.

The amendments to the Land Acquisition Act, 1894 and the R&R Bill have been extensively examined by a GoM and the standing committee of Parliament, but now the whole issue has been referred to another GoM. What exactly is the reason for this?
Well, the standing committee report and the bills and amendments proposed by the ministry differed on very significant points. We agreed on several points but we also disagreed on many. For example, we proposed that when a private company proposes an industrial project, it would acquire 70% of the land required on its own before asking for the state’s help in the remaining acquisition and that too if issues of contiguity are involved.

The standing committee, on the other hand, felt that the state governments should have the discretion to acquire all the land required, if they feel the project merits it. All these differences were weighed and the Cabinet in its wisdom felt that the bills should be revisited.

The Parliament session concluded last week was in fact the penultimate session of the 14th Lok Sabha. Don’t you think the Bills will now never make it as legislation, at least in the life of this government?
Of course not, I have every hope that the bills will be cleared. We are yet to constitute a GoM but I feel that it will take no more than a couple of meetings for it to arrive at a conclusion on the Bills. We have already held the widest possible consultation for this and I have personally met Medha Patkar twice over the bills. All this is not in vain. We will take time, but will come up with a set of policies that will have the widest consensus. After all it took two years to bring the NREGA to Parliament.

Talking of the NREGA, one has seen that a charge that has been levelled against the Act is that there has been hardly any creation of permanent assets. As a dole programme, do you think this is incidental to the Act?
Only the anti-rural, anti-poor people can level such charges against a truly welfare oriented programme. Almost 50% of the programme is oriented towards water conservation. Do you know that we have figures to prove that water tables across the countryside have risen significantly? In the urban areas this may not appear to be important. But there is all-round benefit because migration to urban areas has also come down significantly.

In Assam, for example, nearly 50 villages were saved from floods because the NREGA helped build a series of dams for a bargain basement price of Rs 9.5 lakh. As there are two and a half lakh panchayats across the country, how can each one’s performance be the same? There will always be some smart people and also some not-so-smart ones. One should note that even agricultural minimum wages have increased across the board in states, thanks to NREGA.

Since the increase in agricultural wages seems to have angered the powerful farmers lobby, do you expect a political backlash against the UPA government?
The NREGA is only for providing work in the lean season of agriculture. Therefore the farmers cannot blame NREGA for luring workers away from agricultural work. There is also a clause in the NREGA, referring to the state minimum wages Act of 1943 that the wages for NREGA have to be the same as the states minimum wages.

What has happened is what happens when there is a wider variety of employment available—that is, workers have a choice. Farmers should also look at the flipside, they may have to pay more but migration has been slowed because of NREGA and therefore there is agricultural labour available in the countryside.

The CAG report was quite scathing over the implementation of NREGA. Are you taking any steps to counter that impression?
We are making social audits compulsory, and have almost finalised procedures to ensure that gram sabha meetings be videographed. What this will do is ensure that there is a working gram sabha in place, and the NREGA fund is spent after adequate debate and preparation.

USOF: A Resource for What?

Govt should use the Universal Service Obligation Fund for providing free broadband services or should simply scrap the levy, says Joji Thomas Philip

Two years ago, the communications ministry had said it would try and make available free-broadband facility for a sizeable section of Indian people by 2009. That was not to be. Shortly after the grand plan was formulated, the then communications and IT minister, Dayanidhi Maran, was forced to relinquish office as he lost the patronage of his party chief, M Karunanidhi. The free-broadband plan has not been high on the agenda of Mr Maran’s successor, A Raja. And so, even as 2009 is nigh, that plan looks like a pipe dream.

Mr Maran’s plan could have been funded out of the Universal Service Obligation Fund (USOF), which anyway is looking for a telecom-specific use, despite that the stated purpose of the fast-growing fund is to promote rural telephony. Increasingly, it seems the government is looking at USOF as a high-potential non-tax revenue source, rather than utilise it for the stated purpose. From 2002, all telecom operators have been paying 5% of their annual revenues towards the USOF. As of 2007-08, its size was Rs 20,500 crore and it is now estimated to have crossed Rs 25,000 crore. But, as of September 09, just 27% of the amount has been utilised, according to Trai.

Studies have revealed that it won’t cost more than Rs 12,000 crore to set up infrastructure for mobile services in all rural areas of the country. Since every consumer, who makes a phone call (mobile and landline), contributes towards the USOF, it is the citizen’s right to demand faster utilisation of this fund. Or else, scrap the levy!

Little wonder that the regulator, which has repeatedly been suggesting new ways to utilise this resource, has now called for more autonomy for the USOF administrator and also proposed that the fund be separated from that of DoT.

Free broadband would require augmentation of the optic fibre cable (OFC) network. It has been two years since the DoT prepared a road map to bolster the country’s fibre network. The first step, as per the road map, is to use the USOF to augment the network between the block HQs and the district HQs for creation of general infrastructure. Trai has said that while the DoT has entrusted state-owned TCIL with the work of compiling the details of existing network set up by operators and also to identify where the OFC network is to be set up in rural areas, there has been little action.

The government had earlier said the USOF would be used to provide wire line broadband to 25,000 Common Service Centres by December 2008 and wireless broadband to an equal number of CSCs by March 2009. It also said that 2 lakh villages in 5,000 blocks would be given broadband by 2009 and all the remaining villages, by 2012, in a phased manner. “No physical progress has been reported (on this),” the Trai report added.

It is in national interest that the communications ministry headed by Mr Raja revive the free broadband proposal. The ministry should be open to Trai’s suggestion that the USOF work “separately and identify few agencies for laying fibre between the rural towers and the block headquarters” and this “fibre be given free of cost for next 5 years to any operator who desires to provide the services in the villages”. While Trai’s proposal was for providing mobile services, the scope can be extended to use this for providing heavily subsidised broadband. Besides, state-owned BSNL and private telcos can also be permitted to utilise the USOF to expand their fibre networks on the condition that they open their infrastructure to other players for a minimal fee.

The Internet would become meaningful to local population only if the content is relevant to their lives. Trai has recognised this and advised the government that content application providers be given support from the USOF. Internet, broadband in particular, can produce huge economy-wide benefits as an income booster. The huge USOF corpus can be used to provide free or heavily subsidised broadband.

Access to information and communication technologies will also bring about social cohesion and enhance opportunities for weaker sections.

USOF: A Resource for What?

Govt should use the Universal Service Obligation Fund for providing free broadband services or should simply scrap the levy, says Joji Thomas Philip

Two years ago, the communications ministry had said it would try and make available free-broadband facility for a sizeable section of Indian people by 2009. That was not to be. Shortly after the grand plan was formulated, the then communications and IT minister, Dayanidhi Maran, was forced to relinquish office as he lost the patronage of his party chief, M Karunanidhi. The free-broadband plan has not been high on the agenda of Mr Maran’s successor, A Raja. And so, even as 2009 is nigh, that plan looks like a pipe dream.

Mr Maran’s plan could have been funded out of the Universal Service Obligation Fund (USOF), which anyway is looking for a telecom-specific use, despite that the stated purpose of the fast-growing fund is to promote rural telephony. Increasingly, it seems the government is looking at USOF as a high-potential non-tax revenue source, rather than utilise it for the stated purpose. From 2002, all telecom operators have been paying 5% of their annual revenues towards the USOF. As of 2007-08, its size was Rs 20,500 crore and it is now estimated to have crossed Rs 25,000 crore. But, as of September 09, just 27% of the amount has been utilised, according to Trai.

Studies have revealed that it won’t cost more than Rs 12,000 crore to set up infrastructure for mobile services in all rural areas of the country. Since every consumer, who makes a phone call (mobile and landline), contributes towards the USOF, it is the citizen’s right to demand faster utilisation of this fund. Or else, scrap the levy!

Little wonder that the regulator, which has repeatedly been suggesting new ways to utilise this resource, has now called for more autonomy for the USOF administrator and also proposed that the fund be separated from that of DoT.

Free broadband would require augmentation of the optic fibre cable (OFC) network. It has been two years since the DoT prepared a road map to bolster the country’s fibre network. The first step, as per the road map, is to use the USOF to augment the network between the block HQs and the district HQs for creation of general infrastructure. Trai has said that while the DoT has entrusted state-owned TCIL with the work of compiling the details of existing network set up by operators and also to identify where the OFC network is to be set up in rural areas, there has been little action.

The government had earlier said the USOF would be used to provide wire line broadband to 25,000 Common Service Centres by December 2008 and wireless broadband to an equal number of CSCs by March 2009. It also said that 2 lakh villages in 5,000 blocks would be given broadband by 2009 and all the remaining villages, by 2012, in a phased manner. “No physical progress has been reported (on this),” the Trai report added.

It is in national interest that the communications ministry headed by Mr Raja revive the free broadband proposal. The ministry should be open to Trai’s suggestion that the USOF work “separately and identify few agencies for laying fibre between the rural towers and the block headquarters” and this “fibre be given free of cost for next 5 years to any operator who desires to provide the services in the villages”. While Trai’s proposal was for providing mobile services, the scope can be extended to use this for providing heavily subsidised broadband. Besides, state-owned BSNL and private telcos can also be permitted to utilise the USOF to expand their fibre networks on the condition that they open their infrastructure to other players for a minimal fee.

The Internet would become meaningful to local population only if the content is relevant to their lives. Trai has recognised this and advised the government that content application providers be given support from the USOF. Internet, broadband in particular, can produce huge economy-wide benefits as an income booster. The huge USOF corpus can be used to provide free or heavily subsidised broadband.

Access to information and communication technologies will also bring about social cohesion and enhance opportunities for weaker sections.

Searching for a Silver Lining

The current global slowdown will have a silver lining for India if this opportunity to enhance competitiveness is fully utilised by the industry and exportable products and export markets are diversified, says Abhijit Das

Riding on the back of brisk growth in the global economy since 2002, India’s exports have witnessed a phenomenal three-fold rise during the period 2002-03 and 2007-08. This powerful dynamo for employment generation is now threatened by the liquidity crunch and declining global demand. India needs to properly manage the fallout from the current global slowdown on its export sector in order to limit adverse consequences for the employment situation.

A quick analysis by Unctad-India shows that a 10% decline in overall exports of goods from the 2006-07 level would result in a direct and indirect loss in employment of 2.2 million man-years. Sectors which are likely to witness job losses include traditional export sectors such textiles and clothing, metal and metal products and miscellaneous manufacturing.

Two additional noteworthy points emerge from this analysis. First, the agriculture sector would not remain unaffected. In particular, the food crops sector is likely to see sharp loss in employment as it has a high employment multiplier and provides crucial inputs to exports of the processed food industry, which has emerged as a dynamic sector. Second, employment in certain sectors such as minerals may take a severe hit — although these sectors may not contribute directly to India’s export share. The lesson is clear — sectors which provide inputs to the exporting sectors and have high employment multipliers would also be adversely affected.

In order to sustain the export momentum and contain job losses, the central government has finalised an economic stimulus package comprising measures aimed at easing the liquidity crunch and providing enhanced incentives to exporters. While these measures may provide some relief to the exporters, the present crisis should be used as an opportunity to address more deep-seated problems by adopting suitable mitigation strategies for sustaining the export growth in the long term. Following suggestions could be considered.

Despite targeted efforts by the government for seeking new markets for India’s exports, the EU and US continue to be the main destination of India’s exports. These two main markets account for nearly onethird of India’s exports, although the share of the US in India’s exports has reduced gradually over the years. China, Japan, West Asia and Asean provide viable and sustainable alternate markets for reducing India’s overwhelming reliance on the EU and US for its exports. Early conclusion and implementation of free trade agreement negotiations with some of these countries could provide India with attractive markets for reducing the risk of overall exports being adversely affected by developments in a few big markets.

Although the composition of India’s export basket has shown some changes over the past five years, this has been mainly due to the rise in exports of petroproducts. Given the sector’s capital-intensive nature, increased exports of petroproducts may not result in significant employment generation. Textiles and apparel, leather products, gems and jewellery and handicrafts continue to be the significant export-oriented and employment-intensive sectors. A more focused effort is required for diversifying India’s export basket to other employment-intensive sectors. As a preliminary exercise, industry could identify products and seek markets in which India is globally competitive. As an illustration, exporting organic chemical and pharmaceutical products could be explored in Chinese and Asean markets.

Indian industry needs to formulate and implement appropriate strategies for becoming part of global supply chains. While the auto part sector provides success stories, there is a need to have a hard look at sectors such as electronic components so that India can gain from the increasingly fragmented nature of global supply chains. With profit margins shrinking globally, competitiveness would be the most important determinant for acquiring a share in export markets abroad. Experts feel India should take advantage of its strength in IT and use it extensively to upgrade manufacturing and thereby increase the competitiveness of India’s exports. While some of the industries are actively engaged in this effort on a regular basis, innovative solutions are required in sectors such as handicrafts for harnessing IT for improving product designs and enhancing exportability of the products.

The race for access to raw materials at competitive price has picked pace and would accelerate in the coming years. This would be an important determinant of cost competitiveness of exports. In India, the prices of some raw materials and industrial inputs such as copper and aluminium have been significantly higher than the London Metal Exchange price. For example, during the period 2000–06 the difference between the price of copper in India and the LME price was in the range of 34% to 83%. However access to natural resources at competitive prices is often stymied by a myriad of complex rules and dual pricing endowed with the natural resource. Not much headway has been made on this issue in the Doha trade negotiations. As an alternative to direct imports of natural resources, some of the Indian enterprises could explore the possibility of outward FDI for accessing natural resources in foreign markets.

During periods of economic downturn many countries adopt protectionist trade measures such as imposing anti-dumping or countervailing duties on imports. Experience on this issue during the current economic downturn is not likely to be any different from the past. It needs to be recognised that India’s export incentives could be easily offset by the importing countries by imposing countervailing duties, as has happened in the past. This might render the new export incentives ineffective.

In order to sustain India’s export growth the need to preserve the existing market access in big economies becomes extremely important. While an early and satisfactory conclusion of the Doha Round would help in this regard, it is also essential to be vigilant that non-tariff measures do not act as a disguised trade restriction. India’s economic stimulus package might offer an immediate succour to the exporters. However, there is a need to develop and implement longterm measures that would ensure sustained export growth, which is not impeded by adverse developments in big foreign markets. The current global slowdown will have a silver lining if the opportunity offered to diversify exportable products and markets as also enhance competitiveness is fully utilised by the Indian industry.

ITC to add more Flavour to Spices Business

By Piyush Kamdar

At A time when liquidity crunch and global meltdown appears to have deterred almost all companies across different segments to put their future growth plans on hold, ITC is looking to spice up its spices business in a big way. The company is planning to set up modernised processing infrastructure in Rajasthan for grading, sorting and cleaning of seed spices like cumin, coriander and pepper.

The detailed investment plans are being worked out. The proposed integrated ‘cleaning-cum-sorting’ facility will enable ITC supply clean and graded seed spices procured from the mandis of Rajasthan, Gujarat and Madhya Pradesh to a growing and discerning domestic and international customers. The mechanised processing is intended to create value for customers in terms of supply of consistent hygienic products, adhering to specific quality specifications, an ITC spokesperson told ET. The new facility will be in addition to ITC’s spices cleaning, grinding, packing and steam sterilisation facility at Guntur.

Usage of seed spices like coriander and cumin, the spokesperson added, is steadily increasing because of the increased usage of ‘blended spices’ and ‘seasonings’ in ready-to-eat or cooked foods. The new facility will also give thrust to ITC’s planned foray into the growing value-added exports market for spices. It will also enable ITC to position itself as an integrated spices player.

Incidentally, the country’s fragmented Rs 20,000-crore spices market is characterised by a large number of unorganised players having semimanual, small facilities across the country and adhering to varying quality standards. Apart from this, ITC is also planning investments to mechanise its various operations in its supply chain, especially for grading and sorting of chillies, turmeric and pepper. It is also looking to set up a pepper garbling and steam-washing facility in Kerala as well as a ‘blended spices’ facility in the next two years. The total outlay on these facilities is expected to be around Rs 4-5 crore. The location for the blended spices facility is yet to be finalised.

ITC’s spices business traces its genesis to internal synergies with the foods business’ Aashirvaad brand of spices. The business endeavours to bring global food safety standards to the fore in the Indian market, besides catering to global requirements by adhering to stringent standards of food safety across regions and countries.

Building on internal synergies, the spices business has grown over the years, increasing supplies to domestic exporters and manufacturers. It is rapidly making inroads into European, American, Japanese, South African, South East Asian and Middle Eastern markets, catering to a wide range of customers — from wholesale traders to processed food manufacturers.

Rapidly expanding market reach necessitated an expanding product bandwidth, which grew from the basic chilli, turmeric and coriander to pepper, cumin, nutmeg, mustard, fennel, fenugreek and curry powders. The product portfolio now includes powders, flakes, cracked and milled spices besides whole spices.

As part of its expansion strategy, the spices business forayed into pesticide residue-free spices and organic spices, targeting niche customers spread across the globe. The business already has huge captive cultivation of pesticide residue free chillies in India spread across the states of Andhra Pradesh, Karnataka and Tamil Nadu.

Natural Disasters Killed Over 2.2L in ’08

By Sarah Williams

Though number of natural disasters in 2008 is lower than in 2007, they were more destructive in terms of number of victims and financial cost of the damage caused

Natural disasters killed over 220,000 people in 2008, making it one of the most devastating years on record and underlining the need for a global climate deal, the world’s number two reinsurer said on Monday.

Although the number of natural disasters was lower than in 2007, the catastrophes that occurred proved to be more destructive in terms of the number of victims and the financial cost of the damage caused, Germany-based Munich Re said in its annual assessment.

“This continues the long-term trend we have been observing. Climate change has already started and is very probably contributing to increasingly frequent weather extremes and ensuing natural catastrophes,” Munich Re board member Torsten Jeworrek said. Most devastating in terms of human fatalities was Cyclone Nargis, which lashed Myanmar on May 2-3 to kill more than 135,000 people and leave more than one million homeless. Just days later an earthquake shook China’s Sichuan province, leaving 70,000 dead, 18,000 missing and almost five million homeless, according to official figures, Munich Re said.

Around 1,000 people died in a severe cold snap in January in Afghanistan, Kyrgystan and Tajikistan, while 635 perished in August and September in floods in India, Nepal and Bangladesh.

Typhoon Fengshen killed 557 people in China and the Philippines in June, while earthquakes in Pakistan in October left 300 dead. Six tropical cyclones also slammed into the southern US, including Ike which, with insured losses of 10 billion dollars, was the industry’s costliest catastrophe of the year.

In Europe, an intense low-pressure system called Emma caused two billion dollars worth of damage in March, while a storm dubbed Hilal in late May and early June left 1.1 billion dollars’ worth.

The earthquake in Sichuan province was the most expensive overall single catastrophe of 2008, causing around 85 billion dollars worth of damage, helping to make the year the third most expensive on record, Munich Re said. With 200 billion dollars’ worth of damage, only 2005, when a large number of hurricanes slammed into the southern United States, and 1995, year of the Kobe earthquake in Japan, wreaked more destruction since records began in 1900.

According to estimates from the World Meteorological Organization, 2008 was the tenth warmest year since the beginning of routine temperature recording and the eighth warmest in the northern hemisphere. This means that the ten warmest years ever recorded have all occurred in the last 12 years, Munich Re said.

“It is now very probable that the progressive warming of the atmosphere is due to the greenhouse gases emitted by human activity. The weather machine is running in top gear, bringing more intense severe weather events,” it said.

The number of tropical cyclones in the North Atlantic in 2008 was much higher than the long-term average, and in terms of both the total number of storms and the number of major hurricanes, 2008 was the fourth most severe hurricane season since reliable data have been available, it said.

The world needed “effective and binding rules on CO2 emissions, so that climate change is curbed,” board member Jeworrek said. Last Dec., international community agreed roadmap culminating in a new global climate deal to be signed in Copenhagen in Dec. 2009.

Unprecedented in scale and complexity, this accord, due to take effect from 2012, is meant to rein in the greenhouse gases that stoke global warming and throw a lifeline to poor countries exposed to mutated weather patterns. AFP

Some of the major natural disasters in 2008
Cyclone Nargis, which lashed Myanmar killing 135,000 Earthquake in Sinchuan, China left 70,000 dead and 18,000 missing Typhoon Fengshen in China and the Philippines Gustav, Ike in US Earthquake in Pakistan.

Opinion: Coast To Coast

By C Uday Bhaskar

Securing our maritime borders must get priority

Mumbai derives its current name from the stone goddess Mumbadevi revered by the Koli fisher-folk, the earliest inhabitants of the region. The fortunes of this city have been inexorably linked with the Arabian Sea and it merits recall that the first Englishmen to set foot on the Portuguese hamlet were raiders who came by sea in 1626. Subsequently transferred to the English crown as a dowry gift, the first military fortification to ward off enemy raiders and pirate attacks dates back to 1682 when the British installed a coastal battery on the Middle Ground island.

In recent times, the vulnerability of Mumbai due to Maharashtra’s coastal expanse was revealed in 1993 when explosives were furtively landed on the Ratnagiri coast and the city experienced its first terrorist attack. The audacious terrorist attack last month has once again brought the vulnerability of India’s 7,600 km coastline into sharp and bloody focus and a slew of new policies have just been announced. Speaking in Parliament, the mint-fresh home minister P Chidambaram announced the setting up of a Coastal Command (CC) for the overall supervision and coordination of maritime and coastal security. While further organisational and funding details are yet to be announced, it is envisaged that the long coastline would be divided into Maritime Defence Zones (MDZ) along the western and eastern sea board, as also in the Andaman & Nicobar islands.

The inference is that the operational responsibility would be tasked to the navy, the coast guard and the marine police of each coastal state and that the new CC would introduce the much-needed inter-organisational synergy. Lack of synergy and internecine rivalry among various departments of the great Indian octopus — the government of India — remains the abiding Achilles heel that has bedevilled India’s chequered security experience. This is evident in the painful reconstruction of the tragic events that led to the 1962 debacle with China, the more recent 1999 Kargil war and now November 26. If the CC is to meaningfully discharge this onerous responsibility — protection of a 7,600 km coastline with limited fiscal and human resources —the devil in the details must be noted with objective candour.

Currently four major central ministries have varying degrees of responsibility for the management and protection of India’s vast maritime assets. These are defence, home, finance and shipping. Intelligence inputs come from the cabinet secretariat that is notionally with the home ministry but managed by the national security adviser who is part of the Prime Minister’s Office. Individual coastal states are entrusted with local law and order and have their
own marine police units ostensibly buttressed by the central customs and revenue officials.

But most of them are decrepit and have little operational credibility against the likes of Dawood Ibrahim and Tiger Memon. If individual departments such as the ONGC are added to the list, then we have a merry medley of 14 individual egos and vastly different organisational cultures that have to be synergised.

Even under the most optimum circumstances, given the intrinsic bureaucratic caste-system that characterises the Indian octopus, it is evident that rather than seamless cohesion, what ensues more often than not is the equivalent of the right hand not knowing what the left is doing. Thus it is imperative that the proposed CC have a unified command structure wherein the assets of the principal maritime departments — viz the navy, coast guard, revenue/customs and the local marine police are pooled together for appropriate operational tasking. This will not be easy given the traditional insularity and the civilian-uniform divide that permeates the Indian system.

But other nations have been able to arrive at such organisational models that have been specifically evolved for coastal security. The French experience of having a National Maritime Prefect who is answerable to the prime minister merits consideration. The need to have a national maritime coordinator and a maritime commission has been mooted in the past — but in vain. Post the Mumbai tragedy, this structural void must be redressed quickly.

Innovative use of technology and human intelligence for coastal security warrants highest priority and piecemeal acquisitions by individual departments will be counterproductive. For instance, a virtual coastal fence (akin to the barbed-wire fence along the Indo-Pak land border) comprising static radar chains with a S-band radar, AIS (automatic identification system) centres supported by low-cost aerial surveillance and complemented by involving local fishermen communities is a case in point. The lateral induction of naval and coast guard personnel into the state marine police is long overdue. Coastal states would be well-advised to appoint individual maritime advisers.

It’s ironic that currently the only trained security professionals in the country — the apex of the armed forces — are not in the loop of higher defence and security management in India. This is a warped Nehruvian legacy further exacerbated by the civil service. The simmering discontent over the Sixth Pay Commission recommendations wherein the military has been placed at a rung below the police and the paramilitary is illustrative of this anomaly. If these disparities are not redressed with dispatch, the proposed CC will flounder and remain still-born like the post-Kargil policy recommendations that dealt with the same national security inadequacies.

Opinion: Coast To Coast

By C Uday Bhaskar

Securing our maritime borders must get priority

Mumbai derives its current name from the stone goddess Mumbadevi revered by the Koli fisher-folk, the earliest inhabitants of the region. The fortunes of this city have been inexorably linked with the Arabian Sea and it merits recall that the first Englishmen to set foot on the Portuguese hamlet were raiders who came by sea in 1626. Subsequently transferred to the English crown as a dowry gift, the first military fortification to ward off enemy raiders and pirate attacks dates back to 1682 when the British installed a coastal battery on the Middle Ground island.

In recent times, the vulnerability of Mumbai due to Maharashtra’s coastal expanse was revealed in 1993 when explosives were furtively landed on the Ratnagiri coast and the city experienced its first terrorist attack. The audacious terrorist attack last month has once again brought the vulnerability of India’s 7,600 km coastline into sharp and bloody focus and a slew of new policies have just been announced. Speaking in Parliament, the mint-fresh home minister P Chidambaram announced the setting up of a Coastal Command (CC) for the overall supervision and coordination of maritime and coastal security. While further organisational and funding details are yet to be announced, it is envisaged that the long coastline would be divided into Maritime Defence Zones (MDZ) along the western and eastern sea board, as also in the Andaman & Nicobar islands.

The inference is that the operational responsibility would be tasked to the navy, the coast guard and the marine police of each coastal state and that the new CC would introduce the much-needed inter-organisational synergy. Lack of synergy and internecine rivalry among various departments of the great Indian octopus — the government of India — remains the abiding Achilles heel that has bedevilled India’s chequered security experience. This is evident in the painful reconstruction of the tragic events that led to the 1962 debacle with China, the more recent 1999 Kargil war and now November 26. If the CC is to meaningfully discharge this onerous responsibility — protection of a 7,600 km coastline with limited fiscal and human resources —the devil in the details must be noted with objective candour.

Currently four major central ministries have varying degrees of responsibility for the management and protection of India’s vast maritime assets. These are defence, home, finance and shipping. Intelligence inputs come from the cabinet secretariat that is notionally with the home ministry but managed by the national security adviser who is part of the Prime Minister’s Office. Individual coastal states are entrusted with local law and order and have their
own marine police units ostensibly buttressed by the central customs and revenue officials.

But most of them are decrepit and have little operational credibility against the likes of Dawood Ibrahim and Tiger Memon. If individual departments such as the ONGC are added to the list, then we have a merry medley of 14 individual egos and vastly different organisational cultures that have to be synergised.

Even under the most optimum circumstances, given the intrinsic bureaucratic caste-system that characterises the Indian octopus, it is evident that rather than seamless cohesion, what ensues more often than not is the equivalent of the right hand not knowing what the left is doing. Thus it is imperative that the proposed CC have a unified command structure wherein the assets of the principal maritime departments — viz the navy, coast guard, revenue/customs and the local marine police are pooled together for appropriate operational tasking. This will not be easy given the traditional insularity and the civilian-uniform divide that permeates the Indian system.

But other nations have been able to arrive at such organisational models that have been specifically evolved for coastal security. The French experience of having a National Maritime Prefect who is answerable to the prime minister merits consideration. The need to have a national maritime coordinator and a maritime commission has been mooted in the past — but in vain. Post the Mumbai tragedy, this structural void must be redressed quickly.

Innovative use of technology and human intelligence for coastal security warrants highest priority and piecemeal acquisitions by individual departments will be counterproductive. For instance, a virtual coastal fence (akin to the barbed-wire fence along the Indo-Pak land border) comprising static radar chains with a S-band radar, AIS (automatic identification system) centres supported by low-cost aerial surveillance and complemented by involving local fishermen communities is a case in point. The lateral induction of naval and coast guard personnel into the state marine police is long overdue. Coastal states would be well-advised to appoint individual maritime advisers.

It’s ironic that currently the only trained security professionals in the country — the apex of the armed forces — are not in the loop of higher defence and security management in India. This is a warped Nehruvian legacy further exacerbated by the civil service. The simmering discontent over the Sixth Pay Commission recommendations wherein the military has been placed at a rung below the police and the paramilitary is illustrative of this anomaly. If these disparities are not redressed with dispatch, the proposed CC will flounder and remain still-born like the post-Kargil policy recommendations that dealt with the same national security inadequacies.

Fog Fully paralyzed Delhi

By Siddharth Bhum

Delhi Airport Closed For 5 Hours On Monday, Similar Situation Predicted For Tuesday

The season’s thickest fog hit Delhi late on Sunday night, throwing air schedules haywire and once again exposing the aviation ministry’s hollow claims of being prepared for the annual mess. The Delhi airport was virtually closed from 5.30 am to 11 am as visibility was hovering below 100 metres.

This had a cascading effect all day long — and possibly will extend on Tuesday too — with 19 flights being cancelled and almost all the 650-odd flights that operate from IGI daily being delayed by anywhere from one to eight hours.

The worst part, however, is yet to come. The Met department has predicted a similar fog situation for Tuesday. With fog setting in by 8 pm on Monday, there was a possibility that flights that had left the city during the day might not be able to return due to low visibility problems.

Secondly, with almost 80-90% of the pilots who flew on Monday having spent most of their working hours sitting in the cockpit, waiting for clearance to take-off, they exhausted their flight duty limitations. On Tuesday, therefore, airlines were worried about the non-availability of pilots, especially the CAT III trained ones.

Meanwhile from 5.30 am to 11 am on Monday, only eight flights — eight international and two domestic — could land using the highly sophisticated CAT III B system that allows planes to land when visibility goes between 75 and 100 metres.

Low visibility procedures were in place for 11 hours and 35 minutes — from 1.10 am to 12.45 pm, making it the longest ever single stretch of dense fog in past two years. While visibility started improving after 11 am, the huge backlog with a majority of flights not being CAT III B compliant meant a massive problem for passengers.

“We entered the cockpit at 7 am and then had to call in passengers as just to line up for take off with ATC we need to tell them our boarding’s complete and the doors are closed,” said a pilot giving another reason for why passengers had to remain in planes for hours together.

With schedules going completely haywire during the morning hours, flights all through the day were affected, specially since there was fog over most of the north region. The chaos synonymous with fog related delays was missing outside the airport with most passengers made to board the aircraft much before take-off. However, the cramped terminal 1B was still bursting at the seams. Passengers getting no space to sit despite an increased security hold area, had to make do with luggage trolleys. At the terminal, the information display system went off for about half an hour during which time there was complete chaos as no information on arrivals was forthcoming from airlines.

Fog Fully paralyzed Delhi

By Siddharth Bhum

Delhi Airport Closed For 5 Hours On Monday, Similar Situation Predicted For Tuesday

The season’s thickest fog hit Delhi late on Sunday night, throwing air schedules haywire and once again exposing the aviation ministry’s hollow claims of being prepared for the annual mess. The Delhi airport was virtually closed from 5.30 am to 11 am as visibility was hovering below 100 metres.

This had a cascading effect all day long — and possibly will extend on Tuesday too — with 19 flights being cancelled and almost all the 650-odd flights that operate from IGI daily being delayed by anywhere from one to eight hours.

The worst part, however, is yet to come. The Met department has predicted a similar fog situation for Tuesday. With fog setting in by 8 pm on Monday, there was a possibility that flights that had left the city during the day might not be able to return due to low visibility problems.

Secondly, with almost 80-90% of the pilots who flew on Monday having spent most of their working hours sitting in the cockpit, waiting for clearance to take-off, they exhausted their flight duty limitations. On Tuesday, therefore, airlines were worried about the non-availability of pilots, especially the CAT III trained ones.

Meanwhile from 5.30 am to 11 am on Monday, only eight flights — eight international and two domestic — could land using the highly sophisticated CAT III B system that allows planes to land when visibility goes between 75 and 100 metres.

Low visibility procedures were in place for 11 hours and 35 minutes — from 1.10 am to 12.45 pm, making it the longest ever single stretch of dense fog in past two years. While visibility started improving after 11 am, the huge backlog with a majority of flights not being CAT III B compliant meant a massive problem for passengers.

“We entered the cockpit at 7 am and then had to call in passengers as just to line up for take off with ATC we need to tell them our boarding’s complete and the doors are closed,” said a pilot giving another reason for why passengers had to remain in planes for hours together.

With schedules going completely haywire during the morning hours, flights all through the day were affected, specially since there was fog over most of the north region. The chaos synonymous with fog related delays was missing outside the airport with most passengers made to board the aircraft much before take-off. However, the cramped terminal 1B was still bursting at the seams. Passengers getting no space to sit despite an increased security hold area, had to make do with luggage trolleys. At the terminal, the information display system went off for about half an hour during which time there was complete chaos as no information on arrivals was forthcoming from airlines.

Hyderabad Urdu daily editor eyes LS seat

By Subia Khan

Noted social activist and editor of Urdu daily Siasat Zahed Ali Khan has decided to fight for the Hyderabad Lok Sabha seat as an independent candidate in the upcoming general elections.

“There is need to change the politics of the Old City which has been in the stranglehold of the Majlis (Majlis-e-Ittehadul Muslimeen). I had this feeling that I should challenge the leadership of Majlis for keeping the people and their surroundings utterly backward. I did this through my newspaper. The public response to my writings was overwhelming. Now the public wants me to fight Parliament elections. I have accepted the persuasion of my conscience and answering the call of the people,’’ he told TOI.

The Hyderabad Lok Sabha constituency is being represented by MIM—first by late Sultan Salahuddin Owaisi and since 2004 by his eldest son Asaduddin Owaisi for the last quarter century.

Though the reports of Khan entering the electoral battle had been there in the air for few months he decided to express his intentions at a public meeting on Sunday night at Yakutpura.

Khan said that he would be supported by Telugu Desam, CPI, CPM and TRS. “Though there has been no formal talk with the Congress on my election plans, there are a number of Congress members who have offered to support me,’’ he said.

Asaduddin Owaisi who was groomed by his father for long years to take over the reigns of MIM, won the 2004 election by defeating his nearest rival G Subhashas Chanderji of BJP by more than one lakh votes.

With the delimitation of the Assembly and Parliament constituencies, the concentration of Muslim voters has increased in Hyderabad.

Sources at MIM dismissed Khan as a political novice and said that the party would be too happy to show him his place in electoral battle. Owaisi was not available for comments.

Exclusive: HYDERABAD’S BRAND IDENTITY

By M H Ahssan

Satyam brand could have taken a beating over the last few days but the fact remains that this is one company that Hyderabad identifies with. Satyam, here, is king. HNN reports

It’s the best ‘status statement’ in Hyderabad, a Satyam identity card, that is. If a bunch of friends from the IT sector are dining out, the one with a Satyam I-card comes in the most handy to get the best discount on the bill. The waiter in his wisdom, more often than not, clubs the remaining IT firms as “other’’ companies.

The I-card gets you the best discounts on jewellery and even clothing. Call it a matter of local perception or respect for this homegrown IT major, but Satyam from the local Hyderabadi’s eye is a notch above any other IT firm, national or international.

So, while brand Satyam or ‘Satchyam’ as ‘mana’ Hyderabadis like to call it may have taken a beating with the developments over the last two weeks, the fact remains that this continues to be one firm that gave Hyderabad its very first IT identity.

Ask Bontha Murthy who still vividly remembers getting that appointment letter from Satyam eight years ago. “There were no other big IT companies in Hyderabad then. People in AP knew only one IT firm and that was Satyam,’’ he says, recollecting how the news of him getting a job in Satyam spread like wild fire among friends and relatives. “Satyam was the face of IT then. If you said you were an IT professional, people would spontaneously ask ‘Satyam?’,’’ remembers Murthy, who now works with a multinational. He says that even in the job market Satyam on the resume added great weight. “People took you seriously… knew that you have worked with clients on some good projects,’’ he says.

Satyam’s clout in Hyderabad and AP is a revelation of sorts for people who come to the city from various parts of the country. “Coming from Bangalore, I somehow never thought that Satyam would enjoy better popularity than the other three majors— Wipro, TCS, Infosys. After all, look at the way the other three firms shaped up over the years in comparison to Satyam. But in Hyderabad these reality checks do not matter. Satyam is king here,’’ says Prakash Dixit, who remembers fielding curious and even angry questions from his Hyderabadi friends when he had declined a Satyam offer.

“For any Hyderabadi it was an honour to be associated with Satyam. The firm stood for job security and in many ways it was like getting a government job,’’ says a Satyam employee.

After all, as Rakshita Swami, a systems analyst puts it: “Satyam gave Hyderabad its IT hub image. They were probably the pioneers in making Hyderabad the brand it is today. I think the city’s brand image has now received a blow.’’

Locals employed in the IT sector admit that Satyam’s popularity is more about ‘perception’ than what the reality is. But they do admit that Hyderabadis have a huge emotional connect with Ramalinga Raju’s company.

“It is a homegrown company, after all. It is like how Kannadigas feel proud of Infosys in Bangalore, in Hyderabad you feel proud of Satyam,’’ says S P Nambiar, who has lived in Hyderabad all his life and talks about the family pressure on him for joining Satyam when he entered the IT industry. Entrepreneur Ravi Mundoli adds, “Satyam at one time was a sensation, the most familiar face of the city and the possibility of it being involved in all this is disturbing.’’

A top management comprising largely of people hailing from the state, Satyam has maintained its local flavour even as other firms with cosmopolitan managements set shop here. Satyam’s involvement with various government activities is too looked upon as a homegrown empire aiding the state.

“It is certainly an emotional setback for the locals to see the Rajus go through this,’’ says an IT executive who started her career with Satyam. She adds that even now while most people understand that Satyam’s bid to acquire Maytas wasn’t correct, they feel that the company and the Rajus would bounce back.

“Satyam was our pride that we carried wherever we went. On many occasions, during our assignments abroad, people would associate Hyderabad with Satyam. So it wasn’t just our local fondness for this company but even what it gave us in return. The company gave Hyderabad prominence on the country’s map,’’ says software engineer S Naagesh Reddy.

SATYAM STAFF DEMORALISED
With the change of Satyam’s management imminent, the IT major’s office corridors are buzzing with employees talking about moving jobs and speculating on the changes the new management would bring with it.

Work has almost come to a standstill at Satyam offices in the city with employees hanging around near tea and coffee vending machines, discussing media reports on their top management and figuring out what can still hold them to this IT major. “People are demotivated. Spirits are low. But then they are also realising that their loyalties are with Satyam and not the Rajus. And Satyam continues to be a good company to be with,’’ a senior manager told TOI. Satyam has 52,865 employees on its rolls.

WHAT IS SRSR HOLDINGS?
Did the Rajus have a long range exit plan out of Satyam ? In September 2006, over two years ago the promoters of Satyam Computer Services formed a holding company called SRSR Holdings Pvt Limited and transferred all their shares to this entity. This accounted for 8.5 per cent of the shares of Satyam. The four promoters of the company were founder of Satyam Ramalinga Raju, his brother and cofounder Rama Raju and their respectives wives Nandini Raju and Radha Raju.

According to a company statement at that time these transfer of shares were executed through a block deal of 1.95 crore Satyam shares on NSE at a price of Rs 809 per share. Even at that time there was speculation that this Raju move was a prelude to their exiting Satyam. This was however steadfastly denied by them at that time and they contended it was just an easy way to handle their scattered holdings.

But now it is clear that the family shares were consolidated so that they could be pledged to institutional investors – in return for loans. In fact the pledgings happened simultaneously with the formation of SRSR Holdings. It is these shares that have now been sold off by the institutions, leaving the Rajus without any stake whatsoever in the company that is synonymous with their name.

While some employees are being encouraged to blog their solidarity with the company, there are others that this newspaper spoke to who have intensified their job hunt, floating their resumes through the day and calling up old friends/contacts in other firms for referrals. But many senior associates are taking stock of the situation, understanding how would this change of management affect them.

The management change will alter the way the company functions, employees fear. The speculated takeover by another IT firm has left Satyam employees speculating whether a ‘new’ resource pool would replace the existing one. “The axe is hanging on many employees now especially those who are on bench as the new management may prefer their trained teams to handle internal projects,’’ said a Satyam employee.

Employees also fear that if a change of management leads to dumping some not-soprofitable projects, it would in turn jeopardise their retention chances. Also, if the new management does not renew the existing projects, it could result in more lay-offs, they fear.

While optimistic employees hold that the current controversy over company ownership cannot affect them, the new recruits or those not very old in Satyam echo that they may not continue here for long. “I am now regretting my decision to opt for Satyam out of various choices I had. That I still have my job is secondary. I think its the brand that has taken a beating and this is working against our spirit,’’ a freshman says.

But a senior manager with the firm says that the company stopped laying off two weeks ago, ever since the Maytas acquisition bid backfired. “Besides, the projects are on and the customer profile is still very high. The company is not running out of projects, just yet,’’ he said.

However, what is pinching Satyam’s bunch of new employees is the bond they agreed to sign before joining the firm. As per the bond, the company stands to claim the Rs 2 lakh that they deposited as security money, in case they leave the company before completing two years. “I am in a total fix. If I resign now, I lose my bond money. If I am laid off, I won’t get a job in near future,’’ said a techie who joined Satyam a year ago.

“What the company is going through is definitely a cause of concern for us employees. We are curious, apprehensive and bothered about what is happening. But the job market is so low that we have no option but to be patient and wait and watch,’’ an employee summed up.

Exclusive: HYDERABAD’S BRAND IDENTITY

By M H Ahssan

Satyam brand could have taken a beating over the last few days but the fact remains that this is one company that Hyderabad identifies with. Satyam, here, is king. HNN reports

It’s the best ‘status statement’ in Hyderabad, a Satyam identity card, that is. If a bunch of friends from the IT sector are dining out, the one with a Satyam I-card comes in the most handy to get the best discount on the bill. The waiter in his wisdom, more often than not, clubs the remaining IT firms as “other’’ companies.

The I-card gets you the best discounts on jewellery and even clothing. Call it a matter of local perception or respect for this homegrown IT major, but Satyam from the local Hyderabadi’s eye is a notch above any other IT firm, national or international.

So, while brand Satyam or ‘Satchyam’ as ‘mana’ Hyderabadis like to call it may have taken a beating with the developments over the last two weeks, the fact remains that this continues to be one firm that gave Hyderabad its very first IT identity.

Ask Bontha Murthy who still vividly remembers getting that appointment letter from Satyam eight years ago. “There were no other big IT companies in Hyderabad then. People in AP knew only one IT firm and that was Satyam,’’ he says, recollecting how the news of him getting a job in Satyam spread like wild fire among friends and relatives. “Satyam was the face of IT then. If you said you were an IT professional, people would spontaneously ask ‘Satyam?’,’’ remembers Murthy, who now works with a multinational. He says that even in the job market Satyam on the resume added great weight. “People took you seriously… knew that you have worked with clients on some good projects,’’ he says.

Satyam’s clout in Hyderabad and AP is a revelation of sorts for people who come to the city from various parts of the country. “Coming from Bangalore, I somehow never thought that Satyam would enjoy better popularity than the other three majors— Wipro, TCS, Infosys. After all, look at the way the other three firms shaped up over the years in comparison to Satyam. But in Hyderabad these reality checks do not matter. Satyam is king here,’’ says Prakash Dixit, who remembers fielding curious and even angry questions from his Hyderabadi friends when he had declined a Satyam offer.

“For any Hyderabadi it was an honour to be associated with Satyam. The firm stood for job security and in many ways it was like getting a government job,’’ says a Satyam employee.

After all, as Rakshita Swami, a systems analyst puts it: “Satyam gave Hyderabad its IT hub image. They were probably the pioneers in making Hyderabad the brand it is today. I think the city’s brand image has now received a blow.’’

Locals employed in the IT sector admit that Satyam’s popularity is more about ‘perception’ than what the reality is. But they do admit that Hyderabadis have a huge emotional connect with Ramalinga Raju’s company.

“It is a homegrown company, after all. It is like how Kannadigas feel proud of Infosys in Bangalore, in Hyderabad you feel proud of Satyam,’’ says S P Nambiar, who has lived in Hyderabad all his life and talks about the family pressure on him for joining Satyam when he entered the IT industry. Entrepreneur Ravi Mundoli adds, “Satyam at one time was a sensation, the most familiar face of the city and the possibility of it being involved in all this is disturbing.’’

A top management comprising largely of people hailing from the state, Satyam has maintained its local flavour even as other firms with cosmopolitan managements set shop here. Satyam’s involvement with various government activities is too looked upon as a homegrown empire aiding the state.

“It is certainly an emotional setback for the locals to see the Rajus go through this,’’ says an IT executive who started her career with Satyam. She adds that even now while most people understand that Satyam’s bid to acquire Maytas wasn’t correct, they feel that the company and the Rajus would bounce back.

“Satyam was our pride that we carried wherever we went. On many occasions, during our assignments abroad, people would associate Hyderabad with Satyam. So it wasn’t just our local fondness for this company but even what it gave us in return. The company gave Hyderabad prominence on the country’s map,’’ says software engineer S Naagesh Reddy.

SATYAM STAFF DEMORALISED
With the change of Satyam’s management imminent, the IT major’s office corridors are buzzing with employees talking about moving jobs and speculating on the changes the new management would bring with it.

Work has almost come to a standstill at Satyam offices in the city with employees hanging around near tea and coffee vending machines, discussing media reports on their top management and figuring out what can still hold them to this IT major. “People are demotivated. Spirits are low. But then they are also realising that their loyalties are with Satyam and not the Rajus. And Satyam continues to be a good company to be with,’’ a senior manager told TOI. Satyam has 52,865 employees on its rolls.

WHAT IS SRSR HOLDINGS?
Did the Rajus have a long range exit plan out of Satyam ? In September 2006, over two years ago the promoters of Satyam Computer Services formed a holding company called SRSR Holdings Pvt Limited and transferred all their shares to this entity. This accounted for 8.5 per cent of the shares of Satyam. The four promoters of the company were founder of Satyam Ramalinga Raju, his brother and cofounder Rama Raju and their respectives wives Nandini Raju and Radha Raju.

According to a company statement at that time these transfer of shares were executed through a block deal of 1.95 crore Satyam shares on NSE at a price of Rs 809 per share. Even at that time there was speculation that this Raju move was a prelude to their exiting Satyam. This was however steadfastly denied by them at that time and they contended it was just an easy way to handle their scattered holdings.

But now it is clear that the family shares were consolidated so that they could be pledged to institutional investors – in return for loans. In fact the pledgings happened simultaneously with the formation of SRSR Holdings. It is these shares that have now been sold off by the institutions, leaving the Rajus without any stake whatsoever in the company that is synonymous with their name.

While some employees are being encouraged to blog their solidarity with the company, there are others that this newspaper spoke to who have intensified their job hunt, floating their resumes through the day and calling up old friends/contacts in other firms for referrals. But many senior associates are taking stock of the situation, understanding how would this change of management affect them.

The management change will alter the way the company functions, employees fear. The speculated takeover by another IT firm has left Satyam employees speculating whether a ‘new’ resource pool would replace the existing one. “The axe is hanging on many employees now especially those who are on bench as the new management may prefer their trained teams to handle internal projects,’’ said a Satyam employee.

Employees also fear that if a change of management leads to dumping some not-soprofitable projects, it would in turn jeopardise their retention chances. Also, if the new management does not renew the existing projects, it could result in more lay-offs, they fear.

While optimistic employees hold that the current controversy over company ownership cannot affect them, the new recruits or those not very old in Satyam echo that they may not continue here for long. “I am now regretting my decision to opt for Satyam out of various choices I had. That I still have my job is secondary. I think its the brand that has taken a beating and this is working against our spirit,’’ a freshman says.

But a senior manager with the firm says that the company stopped laying off two weeks ago, ever since the Maytas acquisition bid backfired. “Besides, the projects are on and the customer profile is still very high. The company is not running out of projects, just yet,’’ he said.

However, what is pinching Satyam’s bunch of new employees is the bond they agreed to sign before joining the firm. As per the bond, the company stands to claim the Rs 2 lakh that they deposited as security money, in case they leave the company before completing two years. “I am in a total fix. If I resign now, I lose my bond money. If I am laid off, I won’t get a job in near future,’’ said a techie who joined Satyam a year ago.

“What the company is going through is definitely a cause of concern for us employees. We are curious, apprehensive and bothered about what is happening. But the job market is so low that we have no option but to be patient and wait and watch,’’ an employee summed up.

Exclusive: Rs 2.6 cr Goes Missing From BJP Central Office

By Kajol Singh

No one likes money to go missing. And it’s harder if you can’t even make a hue and cry about it. BJP finds itself in just such an unenviable situation after its chief accountant reported that Rs 2.6 crore in cash had gone missing from the party’s central office at 11, Ashoka Road.

The amount was taken, clean as a whistle, from a “tijori” (safe) in a small room to the back of the party headquarters, not far from BJP president Rajnath Singh’s office. The theft came to light on Friday, when the office reopened after Christmas holiday, causing deep consternation in BJP circles.

The money was deposited on December 24 and apparently stolen on December 25, when the office was closed. A premises, however, have a fairly large resident population of staffers and party office bearers who live in the office building and the next bungalow, 9, Ashoka Road.

The theft was discovered by party oldtimer Nalin Tandon, who has handled BJP accounts for several years, and is one of few persons with access to the room with the safe. The incident looked like an “insider job” as there were no signs of forced entry while the safe lay unlocked. The door to the room and the safe had been opened Ravichander with ease.

As a red-faced BJP brass mulled what had happened, it found itself wrestling with a peculiar dilemma, the money had possibly been collected for elections and was not accounted for and hence the police could not be called in. After consultations, the party called in a private detective agency to investigate into the theft.

The incident has left the party tonguetied with no senior party leader ready to make a statement on the missing boodle. When contacted party spokesperson Ravi Shankar Prasad said he had no comment to make.

BJP in a jam over missing Rs 2.6 cr from party office
The missing Rs 2.6 crore from its central office at 11, Ashoka Road, has put BJP in an unenviable situation. While sources close to the BJP president said the matter was being examined, adding that an explanation could lie in an “accounting error”, others suspect it could well be an inside job. Reports were being sought from state units about money deposited with the central office.

A FIR would have been lodged if the money was part of official donations or generated by party activity like a membership drive. Delhi Police sources said they too had “heard” that a large sum was missing from the BJP office but pointed out that in the absence of a formal complaint there was little they could do.

There are a few theories and versions doing the rounds. Some claim that Nalin Tandon, who has handled BJP accounts for several years, has reported the key to the safe as missing while others contest this, saying keys were very much accounted for. Tandon has been the focus of the private investigators as well, with operatives visiting his home. Staffers who live in the BJP quarters are being questioned even though party sources admit access to the room was limited to only a few.

Some in the party argue that Tandon, typically a low-profile RSS type, as the chief accountant had handled even larger sums of money in past, including during the 2004 general elections, while others slyly point to his expensive tastes in cigarettes and the Innova he drives which seem beyond his salary.

Apart from “the butler did it” theory, party sources talked about Tandon’s recent differences with office secretary Shyam Jhaju when the office staff had agitated for higher pay. It is being suggested that Tandon’s role in rallying staff was not appreciated.

The findings of the ongoing in-house inquiry are not known yet. But given the embarrassment BJP faces over the episode, it may have little option but to conclude that the purloined money was just a case of unreconciled accounts. This may leave the unknown felons richer by a couple of crores, but the party will probably grit its teeth and bear it.

Exclusive: Rs 2.6 cr Goes Missing From BJP Central Office

By Kajol Singh

No one likes money to go missing. And it’s harder if you can’t even make a hue and cry about it. BJP finds itself in just such an unenviable situation after its chief accountant reported that Rs 2.6 crore in cash had gone missing from the party’s central office at 11, Ashoka Road.

The amount was taken, clean as a whistle, from a “tijori” (safe) in a small room to the back of the party headquarters, not far from BJP president Rajnath Singh’s office. The theft came to light on Friday, when the office reopened after Christmas holiday, causing deep consternation in BJP circles.

The money was deposited on December 24 and apparently stolen on December 25, when the office was closed. A premises, however, have a fairly large resident population of staffers and party office bearers who live in the office building and the next bungalow, 9, Ashoka Road.

The theft was discovered by party oldtimer Nalin Tandon, who has handled BJP accounts for several years, and is one of few persons with access to the room with the safe. The incident looked like an “insider job” as there were no signs of forced entry while the safe lay unlocked. The door to the room and the safe had been opened Ravichander with ease.

As a red-faced BJP brass mulled what had happened, it found itself wrestling with a peculiar dilemma, the money had possibly been collected for elections and was not accounted for and hence the police could not be called in. After consultations, the party called in a private detective agency to investigate into the theft.

The incident has left the party tonguetied with no senior party leader ready to make a statement on the missing boodle. When contacted party spokesperson Ravi Shankar Prasad said he had no comment to make.

BJP in a jam over missing Rs 2.6 cr from party office
The missing Rs 2.6 crore from its central office at 11, Ashoka Road, has put BJP in an unenviable situation. While sources close to the BJP president said the matter was being examined, adding that an explanation could lie in an “accounting error”, others suspect it could well be an inside job. Reports were being sought from state units about money deposited with the central office.

A FIR would have been lodged if the money was part of official donations or generated by party activity like a membership drive. Delhi Police sources said they too had “heard” that a large sum was missing from the BJP office but pointed out that in the absence of a formal complaint there was little they could do.

There are a few theories and versions doing the rounds. Some claim that Nalin Tandon, who has handled BJP accounts for several years, has reported the key to the safe as missing while others contest this, saying keys were very much accounted for. Tandon has been the focus of the private investigators as well, with operatives visiting his home. Staffers who live in the BJP quarters are being questioned even though party sources admit access to the room was limited to only a few.

Some in the party argue that Tandon, typically a low-profile RSS type, as the chief accountant had handled even larger sums of money in past, including during the 2004 general elections, while others slyly point to his expensive tastes in cigarettes and the Innova he drives which seem beyond his salary.

Apart from “the butler did it” theory, party sources talked about Tandon’s recent differences with office secretary Shyam Jhaju when the office staff had agitated for higher pay. It is being suggested that Tandon’s role in rallying staff was not appreciated.

The findings of the ongoing in-house inquiry are not known yet. But given the embarrassment BJP faces over the episode, it may have little option but to conclude that the purloined money was just a case of unreconciled accounts. This may leave the unknown felons richer by a couple of crores, but the party will probably grit its teeth and bear it.

Global Meltdown Catches IT Firms Off-guard

By M H Ahssan

After nearly a decade of uninterrupted boom, the Indian information technology industry finds the road ahead bumpy as 2008 draws to a close, with the global meltdown and financial turmoil in the US and other rich countries catching the otherwise resilient sector off-guard.

With no signs of early revival, even the top firms – TCS, Infosys and Wipro – are bracing for hard times in the year ahead.

A reality check of the industry by leading IT industry-specific publication Dataquest of Cyber Media shows that the Indian software services sector is set for a lower growth this fiscal due to declining IT spends by enterprises worldwide and a volatile currency market.

“The global economic slowdown is impacting the Indian software services sector as never before. With the US, Europe and Japan slipping into recession, demand for outsourcing and offshoring IT services will slacken over the next three-four quarters,” Dataquest warned.

Though the software industry body Nasscom projected 21-24 percent revenue growth rate for this fiscal as against 28 percent in 2007-08, analysts fear the annual growth could decline to 15 percent by the end of the fiscal – the lowest in a decade.

Nasscom president Som Mittal said the growth rate target would now be reviewed in January, as the member-companies were in the process of furnishing fresh data to the representative body.

“We wanted to review the forecast in mid-December but could not do so as export and domestic firms are still assessing the situation. We will re-visit the numbers and give a revised forecast next month,” Mittal told IANS.

A performance review of the top 20 Indian IT firms shows the projected growth rate of 28 percent may not be met.

“The slowdown is likely to last 12-15 months. New application development is expected to be affected the most. Smaller companies looking for funding are equally affected by the tight credit market, while the large outsourcing firms/IT bellwethers are sitting pretty on cash on their balance sheets,” Dataquest said.

According to global technology and market research firm Forrester, slowdown in the technology sector will continue till the third quarter of 2009, while outsourcing growth will remain moderate till 2010.

“Slowdown will force companies to turn to vendors to help cut costs. Growth in IT outsourcing revenues will remain moderate due to the use of lower-cost offshore resources and smaller-scale outsourcing deals,” Forrester said in its report “Outlook for the global IT industry”.

“Unlike in the first two quarters (April-September), clients have put discretionary projects on hold in the third quarter. Decisions on new projects have been postponed to next year, as clients are busy grappling with the ongoing crisis,” the report said.

Bearish sentiment in the US and British markets, which account for about 80 percent of the Indian IT export revenues, are compelling vendors to tap emerging markets.

According to Dataquest, the meltdown also impacted projects in the banking, financial services and insurance sectors, which contribute about 40 percent of software sector revenues.

“Coupled with recession, the prevailing negative sentiment is also affecting new projects in manufacturing and retail verticals, which account for 15 percent and eight percent of the total revenues,” it added.

To sustain the growth momentum, albeit more slowly, Indian IT vendors are shifting to fixed price model from time-and-material billing model. Infosys, Wipro and HCL are moving away from billing customers by the hour to entire projects or in parts to maintain their profitability, as fixed price contracts give flexibility to drive productivity and protect margins.

In the second quarter (July-September), fixed price contracts accounted for 34 percent of the combined business of Infosys, Wipro and HCL, as against 29 percent in the same quarter the previous fiscal. TCS has been sustaining on fixed price contracts, which accounted for 44 percent in the last quarter.

The currency volatility has also compounded the woes of the Indian IT sector.

If a rising rupee in the last fiscal had dented export earnings, the steady rise of the US dollar against the rupee, British pound and Euro during the second quarter (July-September), impacted revenue realization in dollar terms since 30 percent of the billing is done in these currencies.

“The sharp and sudden appreciation of the US dollar against the rupee by 5.5 percent, euro (13 percent) and pound (13.8 percent) in the second quarter had adversely impacted the revenue of Indian IT firms in dollar terms,” Dataquest noted.

As a result of over-hedging in forward contracts, benefits of a weak rupee were limited. For instance, Infosys posted a market-to-market loss of $28 million (Rs.1.35 billion) on hedging $932 million for the entire fiscal.

Similarly, Wipro suffered a forex loss of Rs.280 million in the second quarter on hedging $2.1 billion, while HCL took a hit of Rs.970 million.

On the other hand, multinational companies proved to be resilient.

“Having consolidated their presence in the hardware segment, thanks to a liberalized import regime and lowered tariffs, global brands such as Dell and Lenovo have outperformed their Indian counterparts even in these times of slowdown,” the Dataquest report said.

Similarly, in the software segment, global majors like Microsoft and SAP registered revenue growth of 29 percent and 104 percent respectively last fiscal, and continue to grow despite the slowdown.

Change was Buzzword for TV Industry in 2008

By Radhika Bhirani

Change, they say, is the only constant in life. The saying may not have been true for India’s Rs.226 billion/ Rs. 22,600 Crores television industry for the past seven years but it certainly seemed apt for 2008.

A nearly month-long workers’ strike, the end of long-running serials from TV tycoon Ekta Kapoor like “Kasauti Zindagi Kay”, “Kahaani Ghar Ghar Kii” and “Kyunkii Saas Bhi Kabhi Bahu Thhi”, the success of new channels…the TV industry had a lot of surprises and shocks during the year. And all these marked a departure from set norms.

The strike by the apex body of cine workers, the Federation of Western India Cine Employees (FWICE), was for a hike in wages. They failed to reach a settlement with the producers’ association and viewers had to bear the brunt by watching re-runs of shows.

According to Keertan Adyanthaya, general manager and executive vice president of STAR Plus, the strike had a significant impact on the industry.

“Thanks to the strike, producers are today looking beyond Mumbai to produce their shows as they realize the futility of putting all their eggs in one basket. The broadcasters have come together for the first time and have taken a united stand against an arbitrary increase in costs,” Adyanthaya told IANS.

“The strike was of no benefit whatsoever and everybody ended up losing – the federation lost wages for three weeks, producers had to incur costs on standing sets and broadcasters lost advertising revenue because of repeat telecasts of programmes,” he added.

Prior to the strike, the industry witnessed a flutter when Ekta’s long running saas-bahu sagas ended.

New entertainment channels like NDTV Imagine, 9x and Colors brought in a breath of fresh air for viewers by offering more variety and meaning in their content and older channels – STAR Plus, Sony and Zee TV – tried to regain their popularity by revamping their programming content.

Said Tarun Mehra, business head of Zee TV: “It has been a great year. Numerous channels were launched, the viewers were spoilt for choice and every existing channel worth its salt kept churning out content that was palatable for its viewers.”

New shows like “Balika Vadhu”, based on the evils of child marriage, brought about a change in subject and also introduced a child actor as a protagonist in mainstream television shows.

Also, “Saat Phere”, “Kasammh Se” and “Teen Bahuraaniyan” of Zee lost out to new concepts like “Mohe Rang De”, “Radhaa Ki Betiyaan Kuch Kar Dikhayengi”, “Jasuben Jayantilal Ki Joint Family” and “Uttaran” being telecast on new channels.

Most of these shows have drifted away from the typical saas-bahu sagas that the older channels have sworn by. Even the established channels were forced to end their top shows to introduce fresh concepts with shows like “Sapna Baabul Ka…Bidaai”, “Santaan” and “Raja Ki Aayegi Baraat”.

“In terms of quality, each channel is trying to raise its standard of programming. Also, all of them want their good share of the viewership pie and so they are trying to adjust their programming strategy accordingly,” Ashwini Yardi, senior vice president and content head of Colors, told IANS.

SAB TV also tried to strengthen its position with new comedy shows like “Lo Ho Gayi Pooja Iss Ghar Kii”, “Main Kab Saas Banoongi”, “Taarak Mehta Ka Ooltah Chashmah” and “Jugni Chali Jalandhar”.

This year, the TV industry also witnessed an overdose of reality shows with nearly all channels hosting at least one. Most shows like “Ek Khiladi Ek Haseena” on Colors and “Zara Nachke Dikha” on STAR One tried to make their presence felt by spicing up their content.

“Every channel tried different formats of reality shows. We tried showing stunts through ‘Fear Factor’, then ‘Bigg Boss’ and even ‘Ek Khiladi Ek Haseena’ was different in the sense that we brought in cricketers. Even though there is an overdose of it, reality shows are here to stay,” said Yardi.

Another significant alteration in primetime television was the return of mythological epics – “Mahabharata” and “Ramayan”. They made a comeback on screen in a digitally enhanced avatar with Ekta Kapoor’s “Kahaani Humaaray Mahaabhaarat Ki” and Sagar Arts’ “Ramayan”. There were also additions like “Jai Shri Krishna” and “Sai Baba”.

Bollywood also marked its presence on the small screen by stars hosting quizes and talk shows. While superstars Shah Rukh Khan and Salman Khan hosted “Kya Aap Paanchvi Paas Se Tez Hain” and “Dus Ka Dum” respectively, others like Shilpa Shetty and Akshay Kumar hosted “Bigg Boss” and “Fear Factor: Khatron Ke Khiladi” respectively.

Even veteran actors Jeetendra and Hema Malini have joined the bandwagon by becoming judges on the newly launched show “Dancing Queen”. A string of others like Hrithik Roshan, Sushmita Sen, Karisma Kapoor, Raveena Tandon, Sonali Bendre, Arjun Rampal and Farhan Akhtar also plunged into the medium.

Apart from the new shows that were launched in 2008, the year witnessed the launch of a bouquet of channels offered by production house UTV Global Broadcasting Limited (UGBL). The company began youth channels Bindass and Bindass Movies, international movie channel World Movies, mainstream Hindi movie channel UTV Movies and two news channels UTV News and UTVi.

In the entertainment category, the year also saw the launch of various regional channels, including two by Rupert Murdoch’s STAR. It launched STAR Jalsha and STAR Pravah to cater to the Bengali and Marathi viewers respectively.

This apart, STAR has joined hands with parliamentarian Rajeev Chandrasekhar’s company Jupiter Entertainment Ventures for a joint venture – STAR Jupiter Entertainment Television targeting south India.

INX Network launched NewsX in March and announced plans for nearly nine regional channels.

Youth channels like Bindass, MTV and Channel V also saw an upsurge in viewership thanks to adventure reality shows like “MTV Roadies”, “MTV Splitsville”, “Cash Cab” and “Dadagiri”.

In November, “reality TV” assumed a different meaning when the terror attacks struck Mumbai.

The 60-hour bloodbath that claimed over 170 lives provided for continuous feed of grim, sensational images, survival stories and political discussions across not just national but also international news channels. People remained glued to their TV sets, leading to a spurt in viewership of Hindi news channels during that time.

All in all – 2008 proved to be an eventful year of change for the TV industry.

The World in 2008: A Year of Extremes

By Eva-Maria McCormack

The year 2008 can be called a year of extremes: it saw huge trauma, beginning in the shadow of the assassination of former Pakistani prime minister Benazir Bhutto just days earlier and ending with a global market crisis that has brought despair to millions across the world. Yet the worst is still to come.

The final months of the year were marred by attacks, with hundreds dead in India’s bustling commercial metropolis Mumbai, chaos in Thailand, pirates in the Gulf of Aden and continuing violence in the world’s top conflict regions, Iraq and Afghanistan.

The Middle East is still far from a peaceful solution between Israelis and Palestinians, or indeed between Palestinians and Palestinians.

Russia and Georgia erupted into a war just as the world was watching the glittery opening of the skillfully staged Olympics in China.

In Italy, Silvio Berlusconi is again prime minister.

In Zimbabwe, expectations for better government were withering even faster than President Robert Mugabe’s regime could print ever higher dollar bills to stem inflation.

The risks of global warming are worse than ever as concerns about the world climate were drowned out by concerns about the world economy.

The death toll in the five-year war in Congo has passed the five-million mark and continues to be largely neglected by the international community.

Yet in the midst of all the bad news of 2008, there was also reason for hope, and indeed some genuinely good news.

Worry over the world’s tumbling markets brought leaders across the world racing to one table at previously unheard of speed to search for ways out of the crisis.

The European Union, usually a prime example of snail-speed diplomacy, managed to broker at least a ceasefire in Georgia and a return to – although still difficult – diplomacy between Russia and its Western neighbors.

After years of half-hearted pursuit, former Serbian leader Radovan Karadzic is finally being brought to trial over war crimes.

Serious progress has been made in research on illnesses such as HIV/AIDS, which have seen millions dead especially in Africa.

Even the fiercest critics agree that Iraq has seen some genuine security improvements and is now inching towards a reduction in US troops.

Coming up to Christmas, the year ended with the appearance of what many cast as a political messiah: Barack Obama was elected the first black president of the US.

The world – desperate for a change after eight years of George W. Bush calamities – celebrated the news not just in the US, but also in Africa, European capitals and in the Arab world.

The incoming US president is inheriting a global financial crisis, two wars and a whole series of international relations in tatters.

As heavy as Obama’s new presidential burden is, problems like the global market crisis have brought the focus of the world’s leading players back to the need for pragmatic talk, listening and the need for multilateral conflict resolution.

There may not be stardom for anybody, but there is certainly hope in that.

Top 10 NRI Newsmakers of 2008

By Kul Bhushan

After the enthusiastic response to the first list of NRI newsmakers for 2007, here is the updated version before 2008 ends. The selection is based on news value and the degree of interest and concern to NRIs.

1. Lord Swaraj Paul: A consistent NRI newsmaker for over three decades, he just made history by being installed Deputy Speaker in the House of Lords. He is the first Indian to sit on the woolsack, the traditional seat. He has extensive investments in India for his multi-billion pound company Caparo Group. Conferred the Peerage in 1996 and honored with the Padma Bhushan by India in 1983, 77-year-old Lord Paul is one of the most famous Indian origin entrepreneurs in Britain.

2. Sonal Shah: Appointed to the Transition Team of US president-elect Barrack Obama, she is a member of a three-person team to coordinate technology, innovation and government reform during the transition. She earlier headed the philanthropic department of Internet giant Google; and was vice president at Goldman, Sachs and Co and developed and implemented the firm’s environmental strategy. Shah, who raised funds for victims of the 2001 earthquake in Gujarat through the Vishwa Hindu Parishad-America, has denied any links to this organization.

3. Vikram Pandit: The Citibank CEO shocked everyone with his sudden appointment to the world’s biggest banking company. After a year, he is right in the eye of the global financial tsunami to save his bank and spearhead its recovery. He makes news with the US government’s multi-billion dollar recovery package for his bank, job losses, restructuring and reviving an icon of the American financial sector. Facing a difficult recovery, Pandit faces one of the toughest challenges ever seen in the banking industry.

4. Karpal Singh: A Malaysian-Indian veteran lawyer and human rights activist, he fought the general election as an opposition candidate for equal treatment of all Malays for government contracts, employment and appointments. He has highlighted the woes of all underprivileged for 30 years and has been compared to Martin Luther King and Nelson Mandela.

5. Sir Salman Rushdie: His long-time bestseller ‘Midnight’s Children’ was, following a public vote, declared the Best of the Booker in the award’s 40-year history.

6. Navanethan Pillay: A South African Indian judge, he was appointed for four years as the UN Human Rights Commissioner – a significant achievement for NRIs. Her grand-parents migrated from Tamil Nadu to South Africa as sugarcane indentured laborers in the late 1800s, and she became the first woman to start law practice in South Africa’s Natal Province in 1968. Pillay defended several anti-apartheid activists and successfully fought for the right of political prisoners, including Nelson Mandela.

7. Lakshmi Mittal made some news for the wrong reasons this year. The world’s largest steel maker after he took over Arcelor, Mittal has had to take tough decisions on staff sackings, respond to environmental concerns and acquisitions and mergers. On the positive side, he was honored with Padma Vibhushan by India and the third Forbes Lifetime Achievement Award for heroes of entrepreneurial capitalism and free enterprise.

8. The Great Khali, Dilip Singh Rana: One of the largest athletes in the World Wrestling Entertainment and World Heavyweight Champion, Khali calls himself after the Hindu Goddess Kali. This towering giant at seven feet three inches enjoyed a hero’s welcome during his visit to India this year. He also landed up film contracts.

9. Anand Jon: He was convicted of rape after a glamorous career as the fashion designer to Hollywood stars. From Beverley Hills to prison wards, he made headlines with court proceedings when he was accused of luring young women and girls, as young as 14, to an apartment where he acted out sadistic fantasies. The powerful, strident campaign for his innocence mounted by his sister Sanjana claims that he was framed.

10. Dev Patel… Dev who? Well, he is an 18-year actor in the new Hollywood hit ‘Slumdog Millionaire’. Based on a novel ‘Q&A’ by Indian diplomat Vikas Swarup and crafted into a film by the acclaimed director Danny Boyle with music by A.R. Rehman, this film is ready to grab some awards at the next Oscars. Patel plays Jamal, a slum child who becomes a national hero after he reaches the final question on India’s TV show ‘Who Wants to be a Millionaire?’ Watch him! He could win the best supporting actor award.

Boom to Gloom: Indian Economy Saw it All in 2008

By Arvind Padmanabhan

No other year in recent times saw such wild mood swings in the Indian economy than 2008, which started on a strong note but ended on a weak wicket in the wake of a general global slowdown and severe recession in some of the richest countries like the US and Japan.

From economic expansion to performance of equity markets, and from export growth to industrial production, all indicators had the same story to tell: The year had started with a strong economic performance, but the momentum was lost as the months passed, as India faced the ripple effects of the gloom in the global economy.

The indicator that captured the trend best was the 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE), often seen as a barometer not only for investor mood but also the overall performance of the Indian economy and its corporate sector.

On Jan 10 this year, the Sensex was ruling at an all-time intra-day high of 21,206.77 points. But as the year is drawing to a close, it is languishing at around the 9,000-point mark – a fall of over 50 percent in the year. Last year, the index had gained nearly 50 percent.

The Sensex apart, exports fell in October for the first time in seven years. Indirect tax mop up was down eight percent in October. Industrial production, which was among the main drivers of the economy, fell 0.4 percent. The rupee fell below 50 to a dollar in November to an all-time low. And, as per the government’s own admission, some 65,000 jobs were lost between August and October.

The high cost of crude oil, which jumped from under $40 per barrel a year ago to nearly $150 per barrel in August, added to the country’s woes in terms of higher import bill and accentuated the losses of state-run fuel retailers, which had to bear the burden of having to sell hydrocarbon products below cost.

As a result, the United Progressive Alliance (UPA) government, led by Prime Minister Manmohan Singh, which at the beginning of the year said the Indian economy would continue to grow at over nine percent this fiscal, had to tone down its target sharply, hoping to achieve an overall increase of 7-7.5 percent in gross domestic product (GDP).

“Two key sectors, agriculture and industry, were unable to maintain the pace due to the global economic slowdown. This will have a serious effect on our overall growth,” said Dalip Kumar, head of projects at the National Council of Applied Economics Research, an economic think-tank.

The only notable saving grace was on the price front, where the annual rate of inflation fell from a 16-year high of 12.63 percent for the week ended Aug 9 to 6.84 percent for the week ended Dec 6 – but not without taking a toll on industrial growth on account of the tight monetary policy of the central bank during the months before.

“Inflation is not a concern any more. If the Indian government does not think in terms of long- term measures to contain the slowdown, the medium-term growth projection of 8-9 percent will be difficult to achieve,” said Biswa N. Bhattacharyay, Tokyo-based special adviser with the Asian Development Bank (ADB).

As India Inc. cried hoarse, saying the credit squeeze due to the policies of the central bank was affecting its day-to-day business, policymakers appeared to be in a denial mode initially, with the prime minister maintaining that India remained largely insulated from the goings-on in the world economy.

But that was not the case. As official data on a host of areas started confirming the worst worries articulated by India Inc., Manmohan Singh had to himself intervene and unveil a Rs.30,000-crore (Rs.300-billion/$6-billion) package in December to bail out the corporate sector.

There is a fear now that the major pump priming of the economy by the government, the large-scale spending on infrastructure and the relaxation of the monetary policy by the central bank to open the purse strings for the corporate sector may threaten the country’s fiscal deficit, which was kept at a moderate level during the past five-six fiscals.

The year, nevertheless, did not pass without some high points.

India Inc. came under the global media glare when the Tata group, the country’s largest industrial house with annual turnover of $62.5 billion, showcased its little car ‘Nano’ in January, that would cost all of $2,500 at factory gates. Time magazine named it the most important car of the century since Ford’s revolutionary Model T.

It was a different matter that the industrial house had to shift the production site for the small car from Communist-ruled West Bengal to Gujarat following violent protests by a section of farmers that claimed their land was acquired forcibly without adequate compensation.

The same Tata group announced a few months later the acquisition of two iconic British automobile brands, Jaguar and Land Rover, from Ford Motor Co for $2.3 billion in what was yet another high-notch buyout by a globally ambitious Indian group.

The international investor community also continued to bet on the Indian market. Norway-based Telenor, the world’s seventh largest telecom operator, bought a new-generation telecom company Unitech Wireless by paying $1.29 billion for a 60 percent stake.

Similarly, another start-up, Swan Telecom, which did not have a single subscriber, sold a 45-percent stake to the UAE’s Etisalat for $900 million, taking the company’s book value to $2 billion.

In fact, the inflow of foreign direct investment between April and September amounted to $17.21 billion, representing a growth of 137 percent over $7.25 billion in the like period last fiscal. The services sector attracted the maximum foreign investment, followed by construction, including roads and highways, housing and real estate, and computer hardware and software.

The year also saw a record number of seven Indian firms make it to the list of Fortune 500 companies – two from the private sector, namely, Reliance Industries and Tata Steel, and the rest from the public sector.

This apart, the Indian telecom industry also witnessed unprecedented growth and started adding 8-10 million new mobile phone users each month to make the country’s subscriber base of more than 300 million, the largest after China’s, displacing the US. The stage is now set for the launch of 3G, or third generation services.

Looking ahead, economists and industry experts alike predict some tough times for the Indian economy, at least during the next two-three quarters. But they also maintain that India stands on a much better wicket compared with many other countries to weather the storm, particularly because of the strong push from some key drivers of growth, like savings and investment.

As Reserve Bank of India Governor D. Subbarao remarked recently: “A period of painful adjustment is inevitable. But once the crisis is behind us and calm and confidence are restored in the global markets, economic activity in India will recover sharply.”

Key Business and Economic Milestones for India in 2008

Following are some key economic, business and financial milestones in India during 2008:

Jan 10: Tata Motors unveil Nano, the jelly-bean shaped small car touted as the world’s cheapest, costing all of $2,500 at factory gates.

Jan 10: Sensitive index (Sensex) of the Bombay Stock Exchanges touches all-time, intra-day high of 21,206.77 points.

Jan 16: Supreme Court paves way for Reliance Power’s initial public offering.

Jan 21: Investors lose $170 billion as Sensex crashes over 2,000 points to register steepest ever intra-day fall.

Feb 20: Report says Indian companies have invested $10 billion in US, creating 30,000 jobs.

Feb 20: Anil Ambani’s Reliance Communications acquires Ugandan telecom firm.

Feb 23: PepsiCo’s Indian-born chief executive Indra Nooyi among Forbes’ list of 10 best women CEOs.

Feb 26: Railway Minister Lalu Prasad announces across-the-board cut in fares and projects record profits in his first fifth rail budget.

Feb 29: Finance Minister P. Chidambaram presents national budget with most ambitious loan-waiver scheme amounting to Rs.600 billion (Rs.60,000 crore) to benefit 40 million farmers.

March 2: Richard Branson’s Virgin Mobile enters Indian telecom market.

March 11: A fresh graduate of the Indian Institute of Management in Ahmedabad offered record pay packet of Rs.14.4 million.

March 31: India’s external debt rises to $201 billion.

April 1: International Monetary Fund warns of spiraling inflation and cooling of Indian economy.

April 11: Official data says India has second largest telecom subscriber base of over 300 million, ahead of the US and behind China.

April 29: India imposes export tax, bans overseas sales of some commodities like steel and cement to calm prices.

May 6: Bharti Airtel and South Africa’s mobile phone giant enter consolidation talks.

May 11: Ratan Tata named by Time magazine among 73 biggest brains in business for conceiving small car Nano.

May 24: Bharti Airtel and MTN call off consolidation talks.

May 26: Reliance Communications and MTN say they have started talks for possible consolidation.

May 30: India’s economic growth rate for 2007-08 revised upward to nine percent against provisional estimate of 8.9 percent.

June 2: Tata Motors formally takes over two iconic British automobile brands Jaguar and Land Rover from Ford Motors.

June 4: As crude prices spiral, India allows Rs.5 a liter increase in prices of petrol and Rs.3 on diesel.

June 11: Japan’s Daiichi Sankyo says it is buying majority stake in India’s largest pharmaceuticals company Ranbaxy for $4.6 billion.

June 20: India’s annual rate of inflation scales the double digit level and touches 11.05 percent.

June: Heightened protests by farmers against Tatas’ Nano project at Singur in West Bengal who claim their land was forcibly acquired.

July 11: International crude prices touch all-time high of $147.27 a barrel on the New York Mercantile Exchange.

July 12: Vodafone and Airtel say they will launch Apple’s 3G iPhone in India.

July 13: Anil Ambani’s wife Tina Ambani and L.N. Mittal’s spouse Usha Mittal named by Forbes among top 10 billionaires’ wives.

July 16: Hindustan Computers Ltd acquires British outsourcing firm for undisclosed amount.

July 17: Survey says revenues of top 20 Indian IT firms fell 24 percent in 2007-08 due to global slowdown.

July 18: Air India announces 15 percent cut in airfares to Gulf.

July 19: Reliance Communications stops consolidation talks with MTN.

July 29: India’s central bank tightens monetary policy to tame inflation by hiking key lending rate and cash reserve ratio.

Aug 12: India’s industrial growth halves to 5.2 percent in first quarter of current fiscal.

Aug 18: India’s telecom regulator permits computer-to-computer voice calls.

Aug 21: India’s annual rate of inflation spirals to 16-year high of 12.63 percent.

Aug 26: Overseas arm of Oil and Natural Gas Corp says it is acquiring British firm for $1.4 billion.

Aug 29: Government approves new Companies Bill, 2008, to fine-tune legislation to reflect developments in and requirements of present-day corporate world.

Sep 1: Finance Secretary Duvvuri Subbarao named next governor of the Reserve Bank.

Sep 7: Department of Telecommunications starts auction of frequencies for 3G telephony.

Sep 11: Government eases norms for FM broadcast to push growth.

Sep 17: US Food and Drug Administration blocks import of 30 generic drugs made by Ranbaxy.

Sep 18: India’s cabinet clears proposal for foreign news magazines to start Indian editions.

Sep 20: Anil Ambani group and Steven Spielberg to set up $1.5 billion Hollywood studio.

Sep 23: Abu Dhabi-based Etisalat says it will acquire 45 percent stake in India’s Swan Telecom for $900 million.

Oct 1: UN report says India is sixth largest investor in Britain.

Oct 3: Tatas say they are pulling the “Nano” project out of West Bengal despite investing Rs.15 billion.

Oct 7: Gujarat is chosen as new home for launch of Nano.

Oct 8: Indian rupee crashes to six-year low of Rs.48 to a dollar.

Oct 9: International Monetary Fund predicts seven percent growth for India in 2009.

Oct 9: Report says India Inc. finalized overseas mergers and acquisition deals worth $26 billion in first half of current fiscal.

Oct 10: Reserve Bank eases monetary policy, cuts cash reserve ratio by 150 basis points.

Oct 10: India’s industrial production logs just 1.3 percent growth in August, says report.

Oct 15: Government says Indian civil aviation industry is $300 billion investment opportunity.

Oct 15: Central bank takes steps to inject Rs.650 billion into system to increase liquidity.

Oct 15: Jet Airways, Kingfisher announce pact to reduce costs, synergize operations and improve services.

Oct 15: Jet Airways says it is sacking 1,900 employees (but withdraws steps a day later).

Oct 15: US president-elect Barack Obama tells IANS India will be top priority during his tenure.

Oct 27: Sensex crashes to 7,697.39 points, lowest level since November 2005.

Oct 29: Norway-based Telenor, the world’s seventh largest telecom operator, says it is buying 60 percent stake in Indian telecom start-up Unitech Wireless for $1.29 billion.

Nov 10: Satyam acquires Motorola’s software unit in Malaysia.

Nov 10: International Monetary Fund lowers India growth projection for 2009 to 6.3 percent.

Nov 12: Japan’s DoCoMo says it will acquire 26 percent stake in Tata Teleservices.

Nov 13: Forbes rich list says Mukesh Ambani has ousted L.N. Mittal as richest Indian.

Nov 19: Rupee falls to its lowest-ever level, below 50 to a dollar.

Dec 1: Data on foreign trade says India’s merchandise exports fell 12.1 percent in October.

Dec 8: Government unveils Rs.30,000-crore (Rs.300-billion/$6-billion) package to pump prime economy.

Dec 12: Fresh data on industrial production says index fell 0.3 percent in October.

Dec 16: Satyam Computer Services says it is acquiring two infrastructure firms run by founder’s sons for $1.6 billion, but withdraws move a day later following investor outrage.

Dec 19: Chanda Kochhar named ICICI Bank chief executive with effect from next May 1.

Dec 23: Wipro says it is acquiring Citigroup’s Indian outsourcing arm for $127 million.

Hollowness Of India’s Anti-Terrorism Cooperation Agreements with Major Countries and Pakistan Exposed

By Subhash Raja

Mumbai’s 9/11 in the last one month has in its wake spawned an intense debate on the failure of the Congress Government to effectively manage India’s internal security threats emanating from Pakistan, the failure of intelligence agencies and the utter lack of an effective governmental crisis response mechanism. Indian Government severely deserves the blame and culpability that is attendant on lack of effective counter-terrorism responses. What has not surfaced in public debate is the hollowness of India’s anti-terrorism cooperation agreements with major countries and not forgetting the infamous Havana Agreement on a Joint Anti-Terrorism Mechanism signed in 2006 by India’s Prime Minister, Dr Manmohan Singh with General Musharraf of Pakistan.

Readers would be well advised to surf the Google website and discover the number of countries with which India has signed anti-terrorism cooperation agreements over the last couple of years. If these agreements were worth the cost of the papers on which they were written then India should have received at least some iota of an inkling that something like Mumbai’s 9/11 was on the cards from Pakistan’s ISI sponsored terrorist organizations.

Only two thoughts come to one’s mind. The first is that the Indian Government did receive some inputs, maybe not precise, but yet providing some leads, that could have been followed, and that they were not followed to their ultimate culmination due to the recurrent malaise that afflicts our Governmental machinery.

The second thought that then comes to one’s mind is that no inputs were received from even a single country out of the innumerable countries with which India has signed anti-terrorism cooperation agreements. If that be so then should the Indian Government not review this entire process where it had become fashionable for the Indian Government to sign such agreements for forms sake after 9/11 for want of something better to agree upon.

The United States has a formidable intelligence presence in Pakistan and more so in areas known to be the hotbeds of Islamist terrorist organizations which operate under the control and directions of Pakistan’s ISI. With such an elaborate presence something should have come their way portending Mumbai’s 9/11. Some media reports indicated that the United States had passed some inputs on this account two months prior to Mumbai’s 9/11. If that be so then why did the Indian Government not follow it up?

If no such reports were received then what steps has the Government taken to take up the matter with the United States? Similarly, it is time that India takes up this aspect with other countries too with which India has signed such agreements.

Finally, it also needs to be examined and questioned as to what impelled our Prime Minister to sign the Havana Agreement with the Pakistani military dictator on a Indo-Pak Joint Anti-Terror Mechanism? Was our honest Dr Manmohan Singh so unaware and naïve that he was going to sign a formal Agreement with a Pakistani military regime whose main pre-occupation has been to indulge unceasingly in proxy war and state-sponsored terrorism against India.

Also answerable on this account are the National Security Adviser, the Foreign Secretary and others forming part of India’s policy establishment or was their advice ignored for reasons best known to the Prime Minister.

Mumbai’s 9/11 should now at the very least prompt the Indian Prime Minister to abrogate this infamous Havana Agreement as a mark of respect to those two hundred innocent lives lost due to the negligence of their Government.

Ten Issues India Inc Has to Contend With in 2009

By M H Ahssan

What lies ahead for the Indian economy in 2009? This is the question looming large in corridors of the country’s corporate world, as India Inc hopes the economy will transition from annus horribilis that 2008 was to annus mirabilis, which it hopes the New Year will be. A look at 10 major issues which the country’s corporate sector has to contend with in 2009:

Demand Slowdown: This is the first critical problem and it is hitting all sectors of the economy. The slowing demand has filtered down to the retail space with shops finding fewer buyers even in the normally robust festive season from October to December. One of the main reasons for this has been the impact of the global financial crisis. Export growth has come to a halt after many months of double-digit expansion. This has had a cascading effect on many other sectors of the economy, leading to stagnation in both industrial output and infrastructure development.

The good news, however, is that the ensuing harvest season, or the rabi crop, is expected to be bountiful and the outlook is positive for higher rural demand within the next three-four months. With farm output still accounting for a large chunk of the country’s economic pie, the rise in rural demand is likely to translate into a greater sense of all-round well being.

Job Losses: The aviation industry tried to bite the bullet when Jet Airways chief Naresh Goyal issued pink slips to nearly 1,000 employees and said similar sack orders were in the offing for 800 more. But he had to quickly back down and reverse the decision. Yet, jobs are going in many sectors, especially in export-oriented industries like textiles, handicraft and gems and jewellery. The fallout of employment losses in the diamond trade has snowballed into a political issue in Gujarat and the crisis may be mirrored in other states over the next few months. Job losses will increasingly become politicized in the run up to the general elections early next year. But industry may have little choice but to cut flab unless demand picks up significantly later in the year.

Public Issues: Number three on the list is how the corporate sector can raise money from the public when stock markets are not particularly buoyant. In January, the sensitive index (Sensex) of the Bombay stock Exchange (BSE) was at an all-time high, but now rules at 50 percent lower. Indications, nevertheless, are that the market has now bottomed out with the Sensex having finally moved to the vicinity 10,000-point mark. But most companies that had planned public issues for 2009 are going to hold their fire till the situation comes back to a much more even keel.

Consolidation: The fourth issue India Inc will have to face is the prospect of a shakeout in key industries. The aviation sector, for instance, is already in the throes of buyouts and mergers. The unlikely alliance between Jet Airways and Kingfisher Airlines to avoid competition on flight schedules is unprecedented in India and based on falling demand. Similarly the numerous TV channels are also expected to see a shakeout. A recently launched English news channel is reported to be looking for a buyer and other media houses have begun retrenchments though this has not been reported widely in the press.

Inflation: True, the annual rate of inflation based on wholesale prices has come down sharply from over 12 percent a few months ago to a little over 6.5 percent now. But the rise to double-digit inflation during 2008 had pushed up prices of raw materials and components sharply. Industry will be watching the price index closely to see its impact on production costs. The Reserve Bank of India (RBI) will also have to continue monitoring the price index to ensure that it declines to the targeted level of 4 percent by the end of the current fiscal. This will be crucial for easing its monetary policy so that India Inc can get credit at competitive rates.

Energy Security: The cost of energy is the sixth problem the corporate sector will have to face in the ensuing year. Global oil prices may have fallen now, but this is not expected to be a long-term trend. Prices are expected to rise as soon as demand picks up in the emerging economies like China and India. This will continue to be a worrying feature of the country’s economy since more than 70 percent of our crude oil requirements are met from abroad.

Services: Another key issue would be the fate of the information technology and outsourcing sectors. The IT industry is linked to demand for services in the global economy. With this demand having diminished, the ever-rising graph of this sunrise industry may now slow down. Fortunately, IT majors have so far weathered the storm well, but much will depend on the extent to which they are able to bag more contracts in the future. The outsourcing industry has provided a large number of jobs within the country. Here again, it is integrally linked to multinationals facing the impact of the global meltdown – and do we see an opportunity here? This is the question that will determine this industry’s fate in 2009.

Credit: Linked somewhat to the need to raise funds through public issues, finding cash to run enterprises will be another crucial issue in 2009. India Inc has been crying hoarse that liquidity is not the only problem when it comes to accessing funds from banks. They also want interest rates to be cut. The government is doing its bit by pump priming the economy. Eyes, therefore, are on the Reserve Bank and commercial lending institutions for desirable rate cuts.

Entrepreneurship: The prospect of declining entrepreneurship is also looming large, primarily because two sources of funding are drying up – venture capital and private equity. This factor may force further consolidations.

Tourism: The 10th major issue would be the need to prop up the tourism industry as it has its implications on a host of related sectors – from hospitality to aviation. The tourism industry was getting a major boost with the “Incredible India” campaign but there now appears to be a question mark following the Mumbai terror attacks. A fall in tourism will also lead to a drop in dollar receipts – also called invisibles earnings.

These imponderables – much of it linked to the external economy, the political situation within the country and the strategic security scenario with neighbors like Pakistan – will ultimately determine whether 2009 becomes a year of miracles or horror. Yet, few expect India’s growth rate to fall below six-seven percent. And if that is achieved, the country may again end up being one of the fastest growing economies in the world.

Saudi Success in Combating – Terror Relevant to India

By Javid Hassan

In a major development that should be of interest to India, an expert committee set up by the Saudi government is vetting a draft law to punish those who threaten the national security of other countries.

The new law, which also deals with organized crimes and terrorism-related offences, will carry the maximum sentence of capital punishment for the convict, according to the Saudi media, which have quoted Interior Minister Prince Naif bin Abdulaziz, as saying. He described such crimes as “haraba,” a Qur’anic term meaning “sowing corruption and chaos on earth.”

Since both India and Saudi Arabia have been victims of terrorism, now is the time to share information on how they could combat this menace in their mutual interest. There are two broad areas of cooperation from India’s point of view. One is a Saudi proposal mooted by Custodian of the Two Holy Mosques King Abdullah for establishing an international centre on combating terrorism

The other one is the launch of an institute for training imams and khatibs (those who lead prayers in mosques or deliver sermons before the start of Friday prayers). Both these developments are significant, since there many poorly educated preachers who misinterpret Islamic teachings, emphasizing certain aspects and playing down others. They represent a growing trend that has seen preachers well versed in their own field but woefully lacking even basic knowledge of science.

On the issue of combating terrorism, King Abdullah had proposed the setting up of an international center during a major conference three years ago. The proposal met with a lukewarm response despite attempts to take it forward. Subsequent events since 9/11 have warranted the need for reviving this initiative with all the seriousness that it deserves.

The leaders of both countries, together with their experts, could work out the modalities of fine-tuning the proposal from the conceptual to the operational stage. The starting point of the exercise should be to arrive at a global definition of terrorism and the root cause of this phenomenon that has cost the international community trillions of dollars in cumulative damage with no end in sight.

What is important is to identify the various terrorist outfits, their modus operandi and how they indoctrinate the recruits. This is where the Saudi government’s strategy seeks to prevent extremist ideas from infecting immature minds. To this end, the government has drawn up a plan that will bring together religious scholars and social scientists on a common platform to explain the true teachings of Islam as a religion of peace and moderation. They will also explore the problem from a socio-economic perspective to get an overall picture.

In the Saudi context, which is equally relevant to India’s, terrorists draft recruits from the unemployed youth who are lured by monetary incentives. In fact, Prince Naif has urged all Saudi universities to fight terrorism at the academic level by conducting research on why and how some young Saudis fell into the trap.

The Interior Ministry recently launched a campaign in Hafr Al-Batin, a conservative stronghold in northeastern Saudi Arabia, where preachers and experts are working towards reforming individuals arrested on terror charges. They counter the influence of extremist teachings by emphasizing the sanctity of life in Islam, its stress on kindness, compassion, accountability for one’s acts of omission and commission on the Day of Judgment, etc.

At another level, imams and Friday preachers in the Kingdom’s mosques are instructed to be careful in their sermons. “A preacher should know that it is his religious duty to speak out against terror and misguided ideologies as he is aware of what the Shariah (Islamic law) says on the matter,” Minister of Islamic Affairs, Endowments, Call and Guidance Saleh Al-Ashaikh said during an address at the Islamic University of Medina recently.

To this end, a Higher Institute for Imams and Khatibs has been set up at Taiba University, near Jeddah. The institute will graduate preachers who will be skilled not only in modern methods of communication but also moderate in their outlook. It will also strive to erase warped ideas among traditional preachers. Some 55 imams and preachers, besides several members from the Commission for the Promotion of Virtue and the Prevention of Vice (religious police) attended the course.

The need for such educated and moderate Imams could go a long way in weaning the Muslim youth away from the path of extremism. Many of these preachers, even if well-versed in Islamic teachings, lack even elementary knowledge of science. In one of Bangalore’s mosques, a preacher, who was extolling the spiritual and health benefits of zamzam water that pilgrims normally bring with them after performing Haj, explained how rich it is in ‘vitamins’ (sic)..

A nephew of mine, who has just landed a job in the UAE, narrated the case of a Pakistani expatriate working there. The latter, who happens to be his acquaintance, insists that this youth should attend all religious congregations, which should take precedence over everything else, including job. How can Muslims progress with such a mindset?

India’s General Elections 2009 : The Run-Up

By M H Ahssan

General Elections earlier than the scheduled timing of the first half of 2009 has been an active talking point in India’s political circles for nearly a year. This speculation was fuelled by the stream of ultimatums emanating from the ruling Congress Party coalition partners threatening to withdraw support on every conceivable issue and bring about the fall of the Congress-led Government. Leading the pack more actively has been the Leftists combine led by the CPI(M).

Despite the brouhaha that they create on this count neither the Leftists combine nor the coalition partners of the Congress like the RJD, DMK etc have the political courage to exit power. The Congress itself is unsure of whether it can return to power. The Leftists are smug in exercising political control over the Government without accountability having a plausible exit strategy that they are not part of the Government. They too are uncertain along with the other coalition parties of the Congress that they can retain even the present number of seats that they hold in Parliament. All in all the Congress Government and its coalition parties would like to ride out their full tenure in power.

Unless some unforeseen dramatic political development takes place the next General Election in India seems set to take place in 2009 only. But then even if the General Elections take place in 2009 only, the fact is that it is just about a year left in the run-up to them and it really is not that much time left. It therefore becomes appropriate to survey India’s political scene as it presents itself today.

The first to get off the block in terms of gearing itself for the forthcoming General Elections has been the major Opposition Party, the BJP. Having resolved their inner-party leadership issue they have named Shri L K Advani as their Prime Ministerial candidate and to fight the Elections under his leadership. The BJP could have also named their “Shadow Cabinet” as was recommended in an earlier Column of mine. There is a whole line-up of competent and tried BJP leaders who should be projected for all the important ministerial portfolios as part of their “Shadow Government”. This would give the BJP a big political edge over the Congress Party and add to its image of having both talent and political competence within its ranks.

The BJP however, has not fully got into a pro-active election-mode. With just about a year left in the run-up, the BJP as the main Opposition Party should have been a bee-hive of political activity especially in the States which it intends to re-capture from the Congress and whose loss in the last Elections led to its exit from power.

The Congress is a party dominated by a single political dynasty and does not have many politically talented people in its ranks. Once again the Congress Party the way it is structured would have to depend on the Gandhi dynasty duo of Mrs. Sonia Gandhi and Rahul Gandhi to garner votes. They have not and further shy away from naming any Prime Ministerial candidate like the BJP. The strategy seems to be following a dual-track approach with the Congress leaders clamoring that Rahul Gandhi should be the next Prime Minister and the dynasty denying any such ambitions. In terms of feverish political preparations Rahul Gandhi seems to be concentrating heavily on the under-developed regions of Uttar Pradesh like Bundelkhand and tribal areas of Orissa and Central India.

There seems to be an underlying strategy in this pattern which seems to rest on a number of political considerations. Firstly it is easier to draw attention to the neglect of these areas by non-Congress Governments ruling in such States forgetting that Congress too is responsible for the neglected state. Secondly, it is easier to draw large crowds in such poor areas for Congress political meetings. Thirdly, the calculation seems to be that in such areas the iconic appeal of the dynasty may be much larger.

But there is a negative deduction that emerges here and that is that the Gandhi dynasty may have lost its political iconic appeal in urban and developed areas of India and therefore are politically concentrating on such backward areas.

The Congress seems to be taking very seriously the political threat that Shri Advani poses by the BJP naming him the Prime Ministerial candidate. The Congress Party seems to be in an overdrive to single out Shri Advani as the main target of their political attacks in the run-up to the Elections in a bid to erode his political credibility.

The Leftists despite their hold on West Bengal and Kerala do not seem to be destined to even retain the sixty odd seats that they occupy in Parliament presently. In an India which is economically resurgent today and where affluence is becoming a way of life, the Communists are not likely to offer much political appeal.

The regional parties like the RJD and the DMK who because of the coalition arithmetic received disproportionate political importance from the Congress do not seem to be returning back with the same clout.

India’s political scene however is pervaded heavily by the uncertain political tilt of Ms Mayawati who swept into political power in Uttar Pradesh on the strength of a new political formula of adding economically weaker upper castes to her Dalit captive vote banks. This was covered in an earlier Column on her success.
Her party the BSP with its new political formula could double the number of seats that she holds in Parliament and this could be at the cost of both the Congress and the BJP. She could become a vital “swing factor” for both the Congress and the BJP in case of a hung Parliament.

Ultimately, one needs to remember that the Congress and the BJP are the two major political parties of India and the results of the 2009 General Elections would revolve around their respective overall showings and the yearning of the Indian people for a strong leadership capable of leading a growingly nationalistic resurgent India without the delusional mindsets of non-alignment and minority vote-banks appeasement.

Only Votes can Clean Politics of Criminals

By Joginder Singh

An executive engineer of the Uttar Pradesh Public Works Department (PWD) was beaten to death in Auraiya, Uttar Pradesh, on December 25, allegedly by a history-sheeter MLA of the Bahujan Samaj Party, his supporters, and allegedly, two PWD engineers. The engineer was reportedly killed because he refused to cough up Rs 50 lakhs for the birthday celebrations of chief minister Mayawati on January 15, 2009. The state government and Ms Mayawati have denied this allegation.

The accused Shekhar Tiwari, since arrested, has several cases pending against him. In 2001, he was also booked under the Gangster Act and remained behind bars for several months. In June 2008, two state ministers, one from Uttar Pradesh and the other from Assam, were removed from their offices and arrested. The Uttar Pradesh fisheries minister Jamuna Nishad was arrested for allegedly killing a police constable while leading a mob protesting police protection for an accused in the rape of a girl belonging the Nishad community. The education minister of Assam, Ripun Bora, was arrested and later sacked for trying to bribe CBI officials with Rs 10 lakhs so that they would go soft on him in the murder investigation against him.

According to the Election Commission, Uttar Pradesh and Bihar account for at least 40 MPs and 700 MLAs who have faced criminal charges that include murder, dacoity, rape, theft and extortion. Some leading lights include Pappu Yadav (convicted of murdering a Left party legislator) and Syed Shahabuddin. Both are in jail. Union law minister told the Rajya Sabha the in 2008 that there were over 1,300 cases pending against sitting MPs and MLAs in various courts. The CBI was investigating 65 of these. There is a regional concentration in terms of criminal cases. Bihar, UP, Jharkhand and Madhya Pradesh comprise 28 per cent of all MPs but account for over 50 per cent of MPs with high-penalty criminal cases. The party-wise position of MPs is that the Rashtriya Janata Dal (RJD) leads in the proportion of criminal cases (43.5 per cent).

In respect of criminal cases with severe penalties (five or more years’ imprisonment), RJD tops the list with 34.8 per cent of MPs, BSP with 27.8 per cent and the Samajwadi Party with 19.4 per cent. Congress MPs in this category account for 7.6 per cent of their total number in Parliament. For BJP it is 10.9 per cent.

A former chief minister, when asked about the 22 ministers in his Cabinet with criminal antecedents, said, “I don’t bother about the ministers’ past. After joining the government they are not indulging in crimes and want to help suppress criminal activities. Ask the people why they have elected them”.

On July 9, 1993 the Government of India constituted a committee, under the chairmanship of home secretary, with secretary, Raw, Director, Intelligence Bureau, Director, CBI, Special Secretary (Home) as members, to take stock of all available information about the activities of criminal syndicates and mafia organisations which had developed links with and were being protected by government functionaries and political personalities.

Director CBI told the committee that all over India crime syndicates have become a law unto themselves. In smaller towns and rural areas, musclemen have become the order of the day and hired assassins are a part of these organisations. The nexus between criminal gangs, police, bureaucracy and politicians has come out clearly in various parts of the country.

The existing criminal justice system, essentially designed to deal with individual offences/crimes, is unable to deal with the activities of the mafia. The provisions of law with regard to economic offences are weak and there are insurmountable legal difficulties in attaching or confiscating property acquired through mafia activities.

When pressed further to know what action had been taken to end criminalisation, the then Union home minister S.B. Chavan had said that he had forwarded the committee’s reports to the state governments for necessary action. That was the end of efforts to prevent criminalisation of politics and society.

Political power has flowed from the barrel of the gun in states where in criminals have adorned elective offices of not one but all political parties.

No politician or a political party is in the business of politics for dharma-karam and politicians are quick to seize all opportunities for electoral gains. The caste card is unabashedly played to drum up support. Whenever a question is put about how they intend to eliminate criminalisation of politics, the standard response is that political parties must arrive at a consensus. Politicians will have consensus only when it suits their interests and it will never suit them to have a person with a clean record whose electoral victory might be doubtful.

After all what matters in politics are numbers, whether they are procured by hook or crook, temptations of pelf or power. Middle class people talk about criminalisation and they are the ones who do not go out to cast their votes on the ground that either it is too cold or too hot or they have another engagement or they do not want to stand in a queue. As countrymen we get a chance once in five years to elect our rulers. Instead of lamenting about the sorry state of affairs, why don’t we go out and discharge our duties as citizens and elect the best possible candidate? This is the only way to end criminalisation in politics. Especially since our governments aren’t just unable to end criminalisation, they are simply unwilling to do so.

It is worthwhile to quote what former US President Ronald Reagan said: “Politicians may think prostitution is a grim, degrading life. But prostitutes think the same of politics. Getting a lecture on morality from a politician is like getting a lecture on chastity from a whore”.

Fitness Freaks Throng Gyms

By Subia Khan

Finally, one industry sector seems to be in good shape and it only has New Year resolutions to thank for it. Well, gym owners across the city are witnessing a surge in registrations before January 1 ticks in with many denizens vowing to stay in shape this year, gulp their last beer (they promise it’s their last) on December 31 midnight. Gymnasium owners say they are now in the pink of their health.

Major gyms in the city have observed a rise of over 40 per cent in the number of people hitting gyms in early January. “We ask our new members to give in writing their reason for joining the gym. And in many applications they cite their New Year resolution,” says Vijay Kumar, regional manager, Talwalkar’s Fitness Centre, noting that the last leg of the year is indeed witnessing a surge of sizezero enthusiasts.

From an average of two new entrants a day, he is now registering ten or more each day.

“We are receiving a lot of calls from people these days inquiring about gym charges and our time schedules. It is the same in all other cities during this season. Since this our first January in Hydertheir New Year agenda, the first thing that comes to mind is indeed a six-pack ab or an hour-glass figure. Raj Dua, a software engineer, says he has been planning regular workouts for last few months but it is only now that he has actually joined a gym near his house in Banjara Hills. “The whole week of merrymaking, eating out and boozing too are other guilt factors that prompted me to do so,” he adds. Weighing 82 kg, Dua’s only ‘dua’ is to get in shape in 2009.

Fuelling this mass determination of putting their best ‘figure’ forward the coming year, many gyms are offering lucrative discounts, clearly to net more resolution conscious clients. For instance, Body N Soul at Banjara Hills has declared a concession of 15 per cent, informs Dhananjay Reddy, the owner. Habibs too is offering a 30-35 per cent cut on its regular charges.

How long the resolution lasts would be best indicated in the 2009 December gym rush. Vijaya Krishnamurthy, business partner with Jawed Habib Hair and Beauty and Exclusive Gym in Jubilee Hills.

City Turns a Deaf Ear to Noise, Literally

By Ayaan Khan

Have you ever wondered why the constable on the road will not listen to pleas to let you off the hook for that petty violation? Chances are he probably didn’t hear you in the first place. An informal survey done by the Society to Aid the Hearing Impaired (SAHI) revealed that about 74 per cent of traffic policemen who were studied in the city suffer from irreparable hearing blocks.

In fact, any policeman who has put in more than four years of work at a stretch on the traffic beat is bound to turn hearing impaired, it said. Apparently most Hyderabadis could face the same fate as these poor traffic constables, if their lifestyle preferences don’t change.

Complaints of hearing loss are on the rise, warn ENT specialists, citing increasing noise levels—outdoors and indoors—as reasons. With every occasion in the family or festival celebrated with loud music and bursting of firecrackers, the average person’s exposure to unhealthy noise levels has increased manifold.

Roads are the biggest irritants. The AP Pollution Control Board has identified that noise pollution in urban areas is higher when compared to rural areas. “ This is because of an increase in the number of vehicles and the population,” says Rajeshwar Tiwari, member secretary of the Board.

In a survey of ambient noise level at major traffic junctions the Board found the noise levels at Punjagutta, Nagarjuna Hills circle and other places in the city to be close to 100 decibels during the day, as against an acceptable standard of 80 decibels. Anything beyond this standard can damage one’s cochlea (fine hair cells in the inner ear) leading to permanent loss of hearing. “Needless honking in Hyderabad is higher than any other city in the state,” cautions Tiwari.

Dr E C Vinaya Kumar, head of the ENT department, Apollo Hospitals says, “We do not realise what damage high intensity noise pollution can do to our ears.” Prolonged usage of gizmos like the iPod and the head phone could also lead to hearing ailments like partial deafness. Nerve deafness is not only related to age, but also due to trauma caused by a sudden loud noise, continuous exposure to cell phone or other devices. Those who frequent noisy clubs or pubs are also at risk.

Many youngsters do not notice that they are gradually going deaf, say specialists. While regular ear check ups and usage of ear plugs at noisy events could prevent the onset of deafness, one must be alert to symptoms.

Tinnitus sensation, characterised by a ringing or hissing feeling in the ears, as well as an inability to catch words that are softly spoken are some symptoms signalling the beginning of deafness.

Dr V Shanti, consultant ENT surgeon at Care Hospital says it is best to consult an ENT doctor. “Self-medication and ignorance of the right medicine usually worsens the problem. Ear drops in particular must be used only on prescription.” Vinaya Kumar sounds a warning note for the season, “Music at parties could range anywhere between 100 and 120 decibels, so if you cannot avoid such instances, use an ear plug because it can reduce noise levels by nearly 20 decibels.” So if your New Year party plans involve a pub or an event where DJs or bands belt out loud music, take care that it won’t literally blast your y’ears’ away.

Videogames may help Aging Brains Multi-Task

By Sarah Williams

Older adults might want to take an interest in their grandchildren’s’ videogames, if early research on the brain benefits of gaming is correct.

In a study of 40 adults in their 60s and 70s, researchers found that those who learned to play a strategy-heavy videogame improved their scores on a number of tests of cognitive function. Men and women who trained in the game for about a month showed gains in tests of memory, reasoning and the ability to “multitask”.

The findings suggest that videogames that keep players “on their toes” might help older adults keep their brains sharp, the researchers report in the journal Psychology and Aging. This is the first published study to suggest as much, so it’s important not to overstate the findings, said senior researcher Arthur Kramer, a professor of psychology at the University of Illinois at Urbana-Champaign. Still, he said that the results are “very promising”, as they suggest that strategy-based videogames can enhance reasoning, memory and other cognitive abilities that often decline with age.

The study included 40 older adults who were randomly assigned to either the videogame group or a comparison group that received no training in the game. Over 1 month, the gamer group spent about 23 hours training in ‘Rise of Nations’, an off-the-shelf videogame where players seek world domination.

Study participants who trained in the game ended up improving their scores in several areas of a battery of cognitive tests, Kramer and his colleagues found. But Kramer said that more research is needed to confirm and extend the findings.

Find the Perfect Tutor on Internet

By Madhavi Jain

When Raghav Mahajan was struggling with his French course last year, help was just a click away. “A friend in the US who is very good at the language uploaded videos on YouTube so that I could learn. That’s the only way I managed to get my diploma,” says the 20-year-old, who has landed a job with an advertising agency in Mumbai.

From mastering French and Pilates to solving algebraic equations or the Rubik’s cube, more and more Indians are finding their tutors online. Thanks to the countless how-to videos posted on sites like YouTube, do-it-yourself learning has become a growing trend.

It can even get students an IIT education without going to IIT. Vivek, who is doing his bachelors in engineering from the Manipal Institute of Technology, couldn’t get admission into the elite institute but that hasn’t stopped him benefiting from lectures that IIT and IISc professors have posted on YouTube in a project funded by the Indian government.

The institutes, who took their cue from US universities, began posting course content on YouTube in January and already 40 streaming hours of IIT teaching video is available for students whether they are in Nagpur or New York.

“In our country, there is a huge shortage of teachers. So the idea behind the project was to give engineering students a chance to access quality peer-reviewed course content for free,” says Mangala Sunder Krishnan, chemistry professor at IIT-Madras who is one of the co-ordinators for the project. It’s been quite a success judging from the fact that one lecture on basic electronics has been viewed by a whopping 100,000 viewers. Under Phase 2 of the project, quality teachers from other institutes besides the IITs and IISc will also be roped in to prepare lecture videos, says Krishnan.

But not all information is as reliable as that posted by the IITs. A problem with the user-generated model of YouTube is that students have no way of verifying the source or the information, point out some academics. Despite these reservations, YouTube, Wikipedia and similar sites dubbed by techies as part of “Web 2.0” are attracting students who enjoy learning in the comfort of their own homes and at their own pace.

“It’s often embarrassing for a student to ask a teacher too many questions, specially when it is about something basic that he or she is expected to know,” says Salman Khan, a math tutor whose 700 videos have become quite a hit with students abroad and in India. Based in California, this hedge fund manager of Indian origin says he spends one to three hours a day making videos.

“A student may not have got the classroom lecture, but once they see a video, they say, ‘Ah, this is what it is about’. They can also pause a video or watch it as many times as they like,” says Khan who gets dozens of requests from Indians who want help solving problems.

And has he learnt anything from YouTube? “My wife and I did try out a sooji halwa recipe last week,” laughs Khan.

It’s riffs and not recipes that drew Sandeep, 14, to YouTube. “I had to give up guitar classes because the tutor lived far away from home. But I checked out YouTube and figured out that the videos made it very easy to pick up songs,” says Sandeep. He has learned to play ‘Puff the Magic Dragon’.

Component Suppliers Have to Follow Auto Manufacturers

The Indian auto component industry, with exports of $3.6 billion in 2007-08 of a total turnover of $18 billion, is on a bumpy ride with the big auto makers in the US and in Europe slowing down due to the recession. J S Chopra, president of the Automotive Component Exporters Association (ACMA) and Delphi-TVS Diesel Systems Ltd tries to explain the uncertain road ahead to Suman Rao

Q. According to ACMA, exports grew from $2.8 billion in 2006-07 to $3.6 billion in 2007-08, and constituted 20.1 per cent of the total industry turnover. Considering the slowdown in the US auto industry what will be the impact on the Indian component industry?

A. It is extremely difficult to quantify the impact of the slowdown of the US auto industry on the Indian component industry. We are on a week-to-week schedule and there’s no visibility. People are exporting to the big players like GM, Ford and Chrysler. As we don’t know what they will produce, we don’t know what to expect. That’s why we can’t quantify.

Q. Exports have been growing at a CAGR of 35 per cent during 2002-07 and are estimated to grow at a CAGR of 24 per cent during 2007-2015 to touch $20 billion to $22 billion by 2015-16. Now, can this figure be sustained? Or, is there a need to revise these projections?

A. Now, the big issue is of normalcy and nobody seems to know when the industry will return to normalcy. There’s so much uncertainty. Recession has been declared in the US, Europe and Japan. So, when we will pull out of the financial crisis is the only concern. For instance, companies in Japan are already talking of mergers – small companies merging with the big ones etc. Also, Toyota has reported a first-ever loss and Honda has announced that it is pulling out of the F1 racing. These are indications of an industry in turmoil. Unless this is sorted out and some clarity emerges, we cannot make any projections.

Q. Recently the $14 bn package to bail out the big three of the US auto industry GM, Ford and Chrysler – has been rejected by the Senate. What is the road ahead for the US auto industry and consequently for the Indian auto component exporters who are dependent on that market?

A. Frankly I don’t know. Though the package has been rejected, they got something. They are kind of bailed out till March. There’ll be some clarity once the new government takes office and announces its policy.

Q. Often, when exports slowdown, the industry turns to the domestic market. Now the Indian auto market too has hit a rough patch. So, what’s the way out for the component industry?

A. The difference between this and the previous problem is: it is not a regional problem but a global issue. Survival for the next year is the immediate concern. We’ve to first tighten our belts to preserve cash. Cutting costs, deferring capex plans and bringing down everything to a lower level is what needs to be done. That includes cutting down on manpower and even man-days and keeping inventories close to zero. You’ve to do everything in line with the new demands. For instance, Tata Motors have cut down on man-days. Similarly, Maruti and Hyundai have announced production cuts. Component suppliers have to do the same thing. They have to follow the auto manufacturers.

IT Majors Eye Japanese Outsourcing

By Sumalatha Rangarajan

After neutralising their mother-tongue accent and mastering the American drawl, Indian geeks are busy learning Japan’s Kanji, Katakana and Hiragana symbols. Reason: The recession is eating into the volume of outsourced IT work from the US; and after the US, Japan is an important market from the IT perspective, more so during the current period.

Take the case of Suman Reddy Ragidi, a business analyst of Cognizant. Japanese language training has enabled her to converse with clients both in formal as well as informal situations. “The training has also made it easier for me to understand all project documentation written in Japanese,” says Reddy Ragidi.

On its part, Cognizant runs foreign language training in its offices and its mandatory for employees to enrol in such language courses. “Language is an important aspect of culture and such training is helpful in everyday communication. Importantly, employees are able to articulate their viewpoints to clients,” says K Venkataraman, director of Cognizant.

The Japanese IT services market is valued at $108 billion, according to a recent survey by Nasscom and PricewaterhouseCoopers. India has bagged only 13% of this offshoring pie. Moreover, demand for software is primarily driven by the BFSI (banking, financial, services and insurance) and manufacturing companies which consume 42% of the total IT services.

Another Chennai-based IT player Infoview Technologies, whose business comes fully from Japanese majors, is making sure its employees know Japanese symbols by heart. Around three-fourth of the company’s employees have learnt the language and the top management team which accounts for 10% of the workforce has reached the ‘near native level’ in terms of mastering the language.

The company also recently launched an online Japanese learning software for beginners in India. JWEIC is developed by WEIC Corporation, a Japanese company that is into production and sales of e-learning language and learning management systems. Infoview, which has the rights to sell the software in India and Singapore, is targeting executives and college students alike for the online course. It is targeting 10,000 learners during the first year.

Similarly, Noida-based Nucleus Software which generates half of its revenues from Japan is encouraging its employees to learn the language. “Right now, we are utilising the services of interpreters and translators,” says chief executive and managing director, Vishnu Dusad.

For Indian IT entrepreneurs like Chandrasekaran of Infoview Technologies and Dusad of Nucleus the lure for doing business with ‘The Land of the Rising Sun’ is the importance that the Japanese place to long-term relationships. “It’s tough to crack the market initially. On an average, while it takes three months to close a deal with an American firm, it’s double for Japanese companies,” says Cheran Chandrasekaran, CEO, Infoview Technologies. Adds Dusad, “The main challenge is the language. But once you meet up to their expectations, you can be assured of a fairly long-term relationship with the Japanese.” These businessman are now ensuring that their employees learn the language and don’t say ‘sayanora’ soon.

STEM-ming Opportunities

By M H Ahssan

CHANGES IN THE INTERNATIONAL ECONOMY HAVE CREATED TREMENDOUS JOB OPPORTUNITIES FOR STUDENTS,WHO HAVE DEGREES IN THE STEM (SCIENCE, TECHNOLOGY, ENGINEERING AND MATHEMATICS) SUBJECTS. TIM ROGERS PRESENTS THE EFFORTS MADE BY INSTITUTIONS AND REGULATORY BODIES TO PROMOTE THE STEM SUBJECTS,AND THE OPPORTUNITIES THAT LIE THEREIN.

With an increasing number of national governments and transnational organisations like the European Union switching their priorities to assist the development of knowledge-focused economies, the emphasis on encouraging more graduate students to opt for Science, Technology, Engineering and Mathematics (the commonly termed STEM group of academic subjects) master’s and PhD degrees, is greater than ever before. The change in popularity has undoubtedly been due, in part, to the expansion of the international technology sector and the re-entrenchment of science and engineering as central to modern economic success.

Excellent employment prospects
As investment in research and development continues to grow and is supported by more open government policies, the growth of the science and technology sectors is likely to continue at an increasing pace over the next 20 to 30 years.

The shift to a more technologically and scientifically driven global economy can only be good news for international graduates in the STEM subjects. With the number of appropriately-qualified STEM graduates below the level of current global demand, employment prospects are buoyant, even in light of the current economic uncertainty. Countries as diverse as China, Denmark, Finland and Malaysia have prioritised so-called innovation strategies to develop their capacity in research and development in the fields of biotechnology, information technology, mobile communications and genetic research, all of which require skilled master’s and PhD graduates. Such demand is likely to only increase.

According to the executive search firm Heidrick and Struggles’s 2007 Mapping Global Talent report, developed in association with the Economist Intelligence Unit, the demographic patterns of China and India, coupled with the countries’ strong focus on the STEM subjects will have a profound impact on both their national and the international labour markets: “We can predict that these two countries will yield an increasing number of talented graduates in the hi-tech sector, given their strong tradition of engineering and science at the university level.”

Attracting STEM graduates
The likelihood of an altered global employment scene is acknowledged by many governments around the world to such an extent that special initiatives to encourage and capture STEM graduates are now commonplace. The UK Government has recently embarked on a number of programmes to encourage more research and development in the STEM subject areas and attract talented master’s and PhD graduates to either come and work in the UK, or to remain in the country after their programme of study has been completed. The UK has similarly extended its focus to securing more STEM graduates through a number of subject-specific projects, all of which have potentially important consequences for international graduate students. One of the projects, ‘Stimulating Physics’, is intended to encourage more students to pursue physics at universities in the UK.

Making STEM subjects central
In India, where the financial liberalisation of the 1990s has underwritten an expansion of almost every sector of the economy, the likes of which have never been seen before, the demand for skilled STEM graduates is already outstripping supply by a clear margin. With so many Indian students pursuing STEM master’s and PhD programmes in countries such as Canada, the UK and the US, it is likely that employment prospects back at home will be at least as competitive as those on offer in the West, as Indian companies compete on the world stage. Indian tech giant, Infosys, employs more than 90,000 people worldwide, 40,000 of whom are based in India, and routinely recruits directly from the campuses of Cal Tech, Imperial College and MIT to ensure its employees are of the very highest calibre. With approximately 12,000 new employees recruited annually by Infosys, 81 per cent of their intake this year will be qualified to a master’s or professional level. Tata Consultancy Services, another Indian IT specialist employer, hired 32,000 new employees in 2007-2008, simply to keep up with their own expansion plans.

A bright future for STEM graduates
Professor Heiko Schröder, Head, Royal Melbourne Institute of Technology’s School of Computer Science and Information Technology, a leading innovator in science and technology programmes, predicts a bright future for those graduating from STEM programmes. He affirms, “Worldwide, there are predictions that tell us that IT will grow again very significantly, and the shortage of jobs in the industry is already apparent, so we expect a growth in student numbers. We also know that industry investment in terms of IT, both computers and software, will grow more than ever before. American predictions are that the spending of companies on computers will grow by a factor of five in the next ten years, and spending on software will multiply by more than a factor of two, and this will make the spending on IT by far the biggest investment that companies have to make.”

A globally mobile workforce
The continuing globalisation of the science and engineering workforce in the US reflects the current broader international trend. As research and development funding crosses national borders, it is logical that the skilled workforce should become more internationally mobile. Conversely, employers now routinely seek candidates that are able to work in a globalised environment, and have experience of studying or working in another country. With the shortage of international talent likely to impact economic growth in industries, in and around the STEM subjects, perhaps there has never been a better time to consider a graduate programme in these areas.

POTENTIAL TO GROW?

By M H Ahssan

With recession raging in the US, many sectors are now on high alert, cutting costs – and employees. HNN evaluates the economic repercussions across sectors

Barely a year ago, the Indian economy was riding an unstoppable wave. The stock market reflected sentiments across sectors, as it surged forward at a scorching pace. But suddenly, the buoyant wave came crashing down – and took several people with it. As a generation that had received a legacy of opportunities, education and exposure to the world, on a proverbial platter, young students and professionals weren’t quite prepared for the slump.

Today, in a recession-threatened economy, while some sectors have witnessed large-scale layoffs and rising unemployment, others are showing signs of anecdotal downsizing. Here’s a brief update on the sectors that were once hot, and now perhaps, are not.

AVIATION
Although the aviation sector in India climbed to the ninth position in the world aviation market in 2007, 2008 witnessed the aviation sector
battling multiple demons – rising jet fuel prices, and later, the slump in business, as travellers chose cheaper modes of travel under threat of recession.

Kunal Vasudeva, Head, Kingfisher Training Academy, states, “From an output perspective, are most airlines recruiting? The answer is no. Will they recruit in the near future? Hopefully, yes. While earlier, airlines may have recruited 15 students, today just three or four make the cut. However, what’s important is that the current batch of students will graduate next June or July, and hopefully, the economy will tide over by then. The slump we’re witnessing right now is temporary.”

However, things aren’t quite as easy for students, who’ve already graduated. Ratan K* has completed his pilot training course, but has been unable to land a job as a pilot. He says, “There are no openings right now. Although we hope for the situation to improve in a couple of months, the fact is that there are about 6000 people looking for jobs, with maybe about 120 to 130 openings available only.”

BPO
Deepak Kapoor is Founder-CEO of www.bponews.in, and has also served on the board of the Call Centre Association of India and chaired its PR Committee. Kapoor acknowledges that although the sector is growing, it is doing so at a slower pace than before. He explains, “The banks that have been bailed out have to close a lot of bad loans. This process, called foreclosure, involves a great deal of paperwork, as does litigation work, another fallout of bad loans. If you look at operation floor ratios, you will find that the new work coming in is concerned with these two areas. This work is set to increase. Hence, larger companies are still getting a lot of high-value work. The challenge is to get our agents and employees trained in this work that is coming in.”

Kapoor adds that while employees are taking salary cuts of 10 to 15 per cent for a predefined period, there is no real risk to jobs. “You need customer support in various areas. However, selling has gone down, because indiscriminate selling of loans and credit cards is what has got banks into this situation in the first place.”

Vrinda P*, who works with an established BPO in Mumbai reveals, “There has been cost cutting on a large scale. For instance, though transport was available 24 hours a day previously, the schedule has changed to make it available only at certain times of the day. Also the appraisal cycle has changed for junior and mid-level employees from six months to one year.”

FINANCIAL SERVICES
In recent years, a career in the financial sector became the most coveted placement for innumerable MBA graduates, who could expect to land staggering packages, exceeding Rs one crore. However, the collapse of Lehman Brothers started a domino effect across the sector, with some areas being affected more than others.

Jyoti Vij, Director, Financial Sector, Federation of Indian Chambers of Commerce and Industry (FICCI), clarifies, “Insurance may not be as lucrative as it was a few months ago, but it is safer compared to other segments and will experience great growth in the future. Capital markets, brokerage firms and mutual funds are very dicey areas right now. However, private equity is growing fast. I think investment, venture capital, insurance and hedge funds will do well.”

According to Rishi Gupta, Chief Financial Officer, Financial Information Network and Operations (FINO), the economic downturn can be an opportunity for public banks to make a mark. He reveals, “Foreign banks have always been very selective, never indulging in mass recruitment. Moreover, while domestic, private sector banks have always recruited at a very high rate in order to meet the pace of growth, this pace has now slackened. Hence, public sector banks, for which public sentiment has been steadily improving, can now capitalise on this trend. In fact, I believe the State Bank of India has announced its plans to hire some 30,000 people, and UBI and Bank of Baroda are also on the same track.”

HOSPITALITY
Although India as a destination found its place in every tourist’s wishlist in 2007, in 2008, the hospitality sector has to contend with a double whammy – impending recession that cast a gloom over the sector, and then the 26/11 terror attacks that prompted a UK daily to include India in the list of the top 20 most dangerous places to visit, along with war-ravaged nations like Iraq and Afghanistan. However, the situation is not quite as bleak as one may
imagine.

Kanishk Malhotra, Managing Director, Hotel Solutions India, elucidates, “An occupancy of 70 to 80 per cent is generally considered a healthy occupancy level for a hotel, whether budget, luxury, or leisure. So far, according to reports, there has been a 20 per cent dip in the segment. If I have a 500-room hotel, I need a certain number of people to service rooms. If occupancy is down by 20 per cent (100 rooms less), I really don’t gain by terminating 20 to 30 people.”

Malhotra acknowledges though, that there has been a significant reduction in travel, more so in the commercial segment than in the leisure segment. “Companies involved in offshoring, IT, etc, are obviously cutting back on costs. Hence there have been changes in international and domestic travel,” he says.

HEALTHCARE AND PHARMA
As a sector that is driven by need, healthcare has been fairly recession-proof. India acquired the reputation of ‘First-world treatment at Third-world prices’, making it a hotspot for medical tourism. At last count, a US$ 35 billion industry in India, it is however, expected to eventually feel the pinch. Dr Aashish Contractor, Head, Preventive Cardiology and Rehabilitation, Asian Heart Institute, explains, “Healthcare involves a lot of elective procedures, which one does not necessarily have to do. I think ultimately, recession might affect areas that do not deal with lifethreatening problems, like cosmetic surgery or routine health check-ups for instance, which people believe they can postpone.”

A K Jain, Executive Director, Ipca Laboratories, asserts, “Pharma has been recession proof so far, because medicines are a must. You cannot delay treatment if it’s a serious situation. In fact because of lifestyle-related health problems, like stress, there will be more business. There may be some affect felt for three to six months due to currency fluctuations, and companies may delay plans for new investments, due to liquidity issues, but recession will not create a great impact. In fact, pharma companies can capitalise on this situation because production is now cost-effective due to lowered prices at all levels.”

IT & ITes
Instrumental in influencing the way the world today views India and its tremendous mind power, the IT sector placed India at the forefront of the international knowledge economy. The domestic IT market achieved a growth of 43 per cent in the fiscal year 2008, going from US$ 16.2 billion in FY 2007 to US$ 23.1 billion in FY 2008.

This formerly ‘stable’ sector, coveted by students and their parents, the IT sector is known to have taken a beating during the current economic downturn. Since it is exportfocused, the economic turmoil in the US has ensured a few months of uncertainty for the IT industry. At a press conference earlier this month, NASSCOM acknowledged that tech spending had definitely declined, and Som Mittal, President, NASSCOM was compelled to reiterate that the body would have to revise its forecast for the sector for this year (it had previously forecast a revenue growth between 21 and 24 percent to about $50 billion in the year to March 2009).

Ajoy Mukherjee, VP and Head, Global HR, Tata Consultancy Services, avers, “Current conditions are volatile, but we see significant opportunities for growth even in a tough economy. New opportunities are emerging in new growth markets and our services will play a significant role in global economic recovery. We remain cautiously optimistic about the external environment, and our hiring pattern reflects the same. We have added over 18,500 people in the first six months of the current fiscal, and are well on our way to meet our recruitment targets in the current financial year. We have also made over 24,000 campus offers in this year.”

Deepak Deshpande, former President, HR Infotech Association, an association of HR professionals in IT and ITes companies, adds, “According to a research report, there has been a sizable decline in anticipated hiring activity, although there has been no blanket ban on hiring. All said and done, the situation in India is not quite as gloomy as it is across the globe. There is still active hiring happening, and recruiter confidence is strongest in India.”

REALTY
The real estate sector is the second largest employment generator in India, after agriculture, and makes a sizable contribution to the GDP (five per cent). Moreover, it can be credited with the growth of several supporting industries like the cement or steel industries. At last count, the realty sector was enjoying an enviable growth rate of about 35 per cent, and was valued at approximately US$ 15 billion.

Today, the breakdown of the US housing market has spelled trouble for the sector in India. Sanjay Dutt, CEO (Business), Jones Lang LaSalle Meghraj, which offers leasing, consulting, research, and property and development services, asserts, “The residential real estate space has been severely affected because of the combined pressure from high interest rates and high property rates. There is also a slowdown in commercial real estate development, especially with IT, ITes and retail companies that are putting their expansion plans on hold. It is true that employers in the real estate space are letting people go, and this is happening across the board. There is now a liquidity crunch, as well as dwindling demand, making it difficult to complete projects. This is the time for realism. Investors have more or less left the market, leaving only real-end users, who do not buy for speculative purposes, only when there is a genuine need.”

RETAIL
The fifth largest retail destination globally, the Indian retail sector was ranked second after Vietnam as the most attractive, emerging market destination for investment in the retail sector, by AT Kearney’s seventh annual Global Retail Development Index (GRDI), in 2008. Moreover, according to ASSOCHAM, the Indian retail sector touched US$ 300 billion in 2007.

However, industry biggies acknowledged that the retail shimmer has dimmed somewhat,

Sanjay Jog, Chief People Officer, Future Group (Pantaloon, Big Bazaar), admits, “There is a slowdown in recruitment, but recruitment for front end operations (floor manager and below), are in full flow, as much as last year. We are not hiring in certain categories like merchandising, HR, finance, accounting and supply chain management. We had actually frozen recruitment six months ago, before recession, and were leveraging the resources we had.”

Jog clarifies that the value retail side (supermarkets) are not as affected as the lifestyle segment, although there are rationalisation of employee costs, like travelling economy instead of first, or staying at a guest house instead of a hotel. Prof Dr Uday Salunkhe, Group Director, Welingkar Institute of Management, agrees, saying, “Certain verticals within the retail sector may be impacted more so than others. Consumer electronics for instance does not appear to be as affected as the food and grocery segment.”

Nisha S*, who works with a major retail chain, reveals, “There are salary cuts in some organisations, and layoffs in support areas like IT, or in speciality formats, which companies believe are not working out as planned.”

MEDIA
The advertising industry recorded a growth of 22 per cent in 2007 to reach US$ 4.75 billion, contributing 38 per cent of the media and entertainment industry revenues. Abhinav P*, an executive with an international advertising group, presents a heartening picture for the sector, stating, “While market conditions may be adverse, companies are now looking to make more strategic investments in communication, to get people to get out and buy, since buying is, in fact, the only way out of a recession. We believe we’ll see this storm out.”

However, the US$ 5.48 billion TV industry and the US$ 3.62 billion print media segments may not be as fortunate. Dhrishti K*, a sales executive with a major, international television group, reveals, “Business is bad, revenues have dipped tremendously, and recruitment has been frozen, although layoffs haven’t begun yet. There is rumour of newer, smaller channels shutting shop. Media sales is now a tough area because the first place that companies budget is ad expenses. If they first advertised on five channels, they will now divert monies to only two in every genre, and thus, the fight for monies begins.”

No matter the situation with various sectors today, insiders believe that the Indian economy will be able to live out this phase, and when economic conditions improve, start another glorious cycle. What remains for us to do, is to strap in for the ride, and make informed choices while we wait out the storm.

POTENTIAL TO GROW?

By M H Ahssan

With recession raging in the US, many sectors are now on high alert, cutting costs – and employees. HNN evaluates the economic repercussions across sectors

Barely a year ago, the Indian economy was riding an unstoppable wave. The stock market reflected sentiments across sectors, as it surged forward at a scorching pace. But suddenly, the buoyant wave came crashing down – and took several people with it. As a generation that had received a legacy of opportunities, education and exposure to the world, on a proverbial platter, young students and professionals weren’t quite prepared for the slump.

Today, in a recession-threatened economy, while some sectors have witnessed large-scale layoffs and rising unemployment, others are showing signs of anecdotal downsizing. Here’s a brief update on the sectors that were once hot, and now perhaps, are not.

AVIATION
Although the aviation sector in India climbed to the ninth position in the world aviation market in 2007, 2008 witnessed the aviation sector
battling multiple demons – rising jet fuel prices, and later, the slump in business, as travellers chose cheaper modes of travel under threat of recession.

Kunal Vasudeva, Head, Kingfisher Training Academy, states, “From an output perspective, are most airlines recruiting? The answer is no. Will they recruit in the near future? Hopefully, yes. While earlier, airlines may have recruited 15 students, today just three or four make the cut. However, what’s important is that the current batch of students will graduate next June or July, and hopefully, the economy will tide over by then. The slump we’re witnessing right now is temporary.”

However, things aren’t quite as easy for students, who’ve already graduated. Ratan K* has completed his pilot training course, but has been unable to land a job as a pilot. He says, “There are no openings right now. Although we hope for the situation to improve in a couple of months, the fact is that there are about 6000 people looking for jobs, with maybe about 120 to 130 openings available only.”

BPO
Deepak Kapoor is Founder-CEO of www.bponews.in, and has also served on the board of the Call Centre Association of India and chaired its PR Committee. Kapoor acknowledges that although the sector is growing, it is doing so at a slower pace than before. He explains, “The banks that have been bailed out have to close a lot of bad loans. This process, called foreclosure, involves a great deal of paperwork, as does litigation work, another fallout of bad loans. If you look at operation floor ratios, you will find that the new work coming in is concerned with these two areas. This work is set to increase. Hence, larger companies are still getting a lot of high-value work. The challenge is to get our agents and employees trained in this work that is coming in.”

Kapoor adds that while employees are taking salary cuts of 10 to 15 per cent for a predefined period, there is no real risk to jobs. “You need customer support in various areas. However, selling has gone down, because indiscriminate selling of loans and credit cards is what has got banks into this situation in the first place.”

Vrinda P*, who works with an established BPO in Mumbai reveals, “There has been cost cutting on a large scale. For instance, though transport was available 24 hours a day previously, the schedule has changed to make it available only at certain times of the day. Also the appraisal cycle has changed for junior and mid-level employees from six months to one year.”

FINANCIAL SERVICES
In recent years, a career in the financial sector became the most coveted placement for innumerable MBA graduates, who could expect to land staggering packages, exceeding Rs one crore. However, the collapse of Lehman Brothers started a domino effect across the sector, with some areas being affected more than others.

Jyoti Vij, Director, Financial Sector, Federation of Indian Chambers of Commerce and Industry (FICCI), clarifies, “Insurance may not be as lucrative as it was a few months ago, but it is safer compared to other segments and will experience great growth in the future. Capital markets, brokerage firms and mutual funds are very dicey areas right now. However, private equity is growing fast. I think investment, venture capital, insurance and hedge funds will do well.”

According to Rishi Gupta, Chief Financial Officer, Financial Information Network and Operations (FINO), the economic downturn can be an opportunity for public banks to make a mark. He reveals, “Foreign banks have always been very selective, never indulging in mass recruitment. Moreover, while domestic, private sector banks have always recruited at a very high rate in order to meet the pace of growth, this pace has now slackened. Hence, public sector banks, for which public sentiment has been steadily improving, can now capitalise on this trend. In fact, I believe the State Bank of India has announced its plans to hire some 30,000 people, and UBI and Bank of Baroda are also on the same track.”

HOSPITALITY
Although India as a destination found its place in every tourist’s wishlist in 2007, in 2008, the hospitality sector has to contend with a double whammy – impending recession that cast a gloom over the sector, and then the 26/11 terror attacks that prompted a UK daily to include India in the list of the top 20 most dangerous places to visit, along with war-ravaged nations like Iraq and Afghanistan. However, the situation is not quite as bleak as one may
imagine.

Kanishk Malhotra, Managing Director, Hotel Solutions India, elucidates, “An occupancy of 70 to 80 per cent is generally considered a healthy occupancy level for a hotel, whether budget, luxury, or leisure. So far, according to reports, there has been a 20 per cent dip in the segment. If I have a 500-room hotel, I need a certain number of people to service rooms. If occupancy is down by 20 per cent (100 rooms less), I really don’t gain by terminating 20 to 30 people.”

Malhotra acknowledges though, that there has been a significant reduction in travel, more so in the commercial segment than in the leisure segment. “Companies involved in offshoring, IT, etc, are obviously cutting back on costs. Hence there have been changes in international and domestic travel,” he says.

HEALTHCARE AND PHARMA
As a sector that is driven by need, healthcare has been fairly recession-proof. India acquired the reputation of ‘First-world treatment at Third-world prices’, making it a hotspot for medical tourism. At last count, a US$ 35 billion industry in India, it is however, expected to eventually feel the pinch. Dr Aashish Contractor, Head, Preventive Cardiology and Rehabilitation, Asian Heart Institute, explains, “Healthcare involves a lot of elective procedures, which one does not necessarily have to do. I think ultimately, recession might affect areas that do not deal with lifethreatening problems, like cosmetic surgery or routine health check-ups for instance, which people believe they can postpone.”

A K Jain, Executive Director, Ipca Laboratories, asserts, “Pharma has been recession proof so far, because medicines are a must. You cannot delay treatment if it’s a serious situation. In fact because of lifestyle-related health problems, like stress, there will be more business. There may be some affect felt for three to six months due to currency fluctuations, and companies may delay plans for new investments, due to liquidity issues, but recession will not create a great impact. In fact, pharma companies can capitalise on this situation because production is now cost-effective due to lowered prices at all levels.”

IT & ITes
Instrumental in influencing the way the world today views India and its tremendous mind power, the IT sector placed India at the forefront of the international knowledge economy. The domestic IT market achieved a growth of 43 per cent in the fiscal year 2008, going from US$ 16.2 billion in FY 2007 to US$ 23.1 billion in FY 2008.

This formerly ‘stable’ sector, coveted by students and their parents, the IT sector is known to have taken a beating during the current economic downturn. Since it is exportfocused, the economic turmoil in the US has ensured a few months of uncertainty for the IT industry. At a press conference earlier this month, NASSCOM acknowledged that tech spending had definitely declined, and Som Mittal, President, NASSCOM was compelled to reiterate that the body would have to revise its forecast for the sector for this year (it had previously forecast a revenue growth between 21 and 24 percent to about $50 billion in the year to March 2009).

Ajoy Mukherjee, VP and Head, Global HR, Tata Consultancy Services, avers, “Current conditions are volatile, but we see significant opportunities for growth even in a tough economy. New opportunities are emerging in new growth markets and our services will play a significant role in global economic recovery. We remain cautiously optimistic about the external environment, and our hiring pattern reflects the same. We have added over 18,500 people in the first six months of the current fiscal, and are well on our way to meet our recruitment targets in the current financial year. We have also made over 24,000 campus offers in this year.”

Deepak Deshpande, former President, HR Infotech Association, an association of HR professionals in IT and ITes companies, adds, “According to a research report, there has been a sizable decline in anticipated hiring activity, although there has been no blanket ban on hiring. All said and done, the situation in India is not quite as gloomy as it is across the globe. There is still active hiring happening, and recruiter confidence is strongest in India.”

REALTY
The real estate sector is the second largest employment generator in India, after agriculture, and makes a sizable contribution to the GDP (five per cent). Moreover, it can be credited with the growth of several supporting industries like the cement or steel industries. At last count, the realty sector was enjoying an enviable growth rate of about 35 per cent, and was valued at approximately US$ 15 billion.

Today, the breakdown of the US housing market has spelled trouble for the sector in India. Sanjay Dutt, CEO (Business), Jones Lang LaSalle Meghraj, which offers leasing, consulting, research, and property and development services, asserts, “The residential real estate space has been severely affected because of the combined pressure from high interest rates and high property rates. There is also a slowdown in commercial real estate development, especially with IT, ITes and retail companies that are putting their expansion plans on hold. It is true that employers in the real estate space are letting people go, and this is happening across the board. There is now a liquidity crunch, as well as dwindling demand, making it difficult to complete projects. This is the time for realism. Investors have more or less left the market, leaving only real-end users, who do not buy for speculative purposes, only when there is a genuine need.”

RETAIL
The fifth largest retail destination globally, the Indian retail sector was ranked second after Vietnam as the most attractive, emerging market destination for investment in the retail sector, by AT Kearney’s seventh annual Global Retail Development Index (GRDI), in 2008. Moreover, according to ASSOCHAM, the Indian retail sector touched US$ 300 billion in 2007.

However, industry biggies acknowledged that the retail shimmer has dimmed somewhat,

Sanjay Jog, Chief People Officer, Future Group (Pantaloon, Big Bazaar), admits, “There is a slowdown in recruitment, but recruitment for front end operations (floor manager and below), are in full flow, as much as last year. We are not hiring in certain categories like merchandising, HR, finance, accounting and supply chain management. We had actually frozen recruitment six months ago, before recession, and were leveraging the resources we had.”

Jog clarifies that the value retail side (supermarkets) are not as affected as the lifestyle segment, although there are rationalisation of employee costs, like travelling economy instead of first, or staying at a guest house instead of a hotel. Prof Dr Uday Salunkhe, Group Director, Welingkar Institute of Management, agrees, saying, “Certain verticals within the retail sector may be impacted more so than others. Consumer electronics for instance does not appear to be as affected as the food and grocery segment.”

Nisha S*, who works with a major retail chain, reveals, “There are salary cuts in some organisations, and layoffs in support areas like IT, or in speciality formats, which companies believe are not working out as planned.”

MEDIA
The advertising industry recorded a growth of 22 per cent in 2007 to reach US$ 4.75 billion, contributing 38 per cent of the media and entertainment industry revenues. Abhinav P*, an executive with an international advertising group, presents a heartening picture for the sector, stating, “While market conditions may be adverse, companies are now looking to make more strategic investments in communication, to get people to get out and buy, since buying is, in fact, the only way out of a recession. We believe we’ll see this storm out.”

However, the US$ 5.48 billion TV industry and the US$ 3.62 billion print media segments may not be as fortunate. Dhrishti K*, a sales executive with a major, international television group, reveals, “Business is bad, revenues have dipped tremendously, and recruitment has been frozen, although layoffs haven’t begun yet. There is rumour of newer, smaller channels shutting shop. Media sales is now a tough area because the first place that companies budget is ad expenses. If they first advertised on five channels, they will now divert monies to only two in every genre, and thus, the fight for monies begins.”

No matter the situation with various sectors today, insiders believe that the Indian economy will be able to live out this phase, and when economic conditions improve, start another glorious cycle. What remains for us to do, is to strap in for the ride, and make informed choices while we wait out the storm.

RECAP 2008: Education Sector Boom

By M H Ahssan

THE YEAR 2008 SAW A SEA OF CHANGE IN THE EDUCATION SECTOR. A NUMBER OF TRENDS WITNESSED A BOOM, WHEREAS OTHERS FAILED TO TAKE OFF. IN THIS YEAR-END ISSUE, HNN ANALYSES THE MOST PROMINENT TRENDS IN THE EDUCATION SEGMENT IN 2008.

As news of the economic slowdown hit Indian shores, the education sector, along with many other industries, underwent several changes. Whether it was students temporarily abandoning their study abroad plans, professionals choosing to go back to school, in order to spruce up their qualifications, institutes reporting a negligible slowdown in their placement rates, or the undecided fate of industry-academia tie-ups, there were both triumphs and tribulations in 2008.

STUDY ABROAD SENTIMENTS
While recession is poi sed to affect India in the long run, it might be a little early to determine how it is likely to affect Indian students’ study abroad decisions. Hazel Shiromoni, Vice-President, CECN Global Schools, corroborates this view, saying, “Only after a span of a few months, can a pattern be identified. However, it is crucial to note that student enquiries for some courses, such as aviation, hospitality, travel and tourism are already going down.” She goes on to add that the mindset of people, in terms of pursuing an education abroad will not change, and people from affluent sections of society will continue to send their children abroad. However, for the middle-class, particularly for those, who have invested in stocks, sending their children abroad may no longer be an affordable proposition.

Ajit Motwani, Director (India), Institute of International Education (IIE), reveals, “Most students applied for the fall session (September) before recession hit India, and were unlikely to be affected by it. Further, the spring semester has a small intake, so any real change in applications will only be visible in the fall session next year, when the affects of recession sink in.”

Purti Simon, an alumni of St Xavier’s College Kolkata, says, “I was forced to put my plans to study abroad on hold. It calls for a large expenditure and one would obviously look at recouping the investment. In the present scenario, international students are the first on the chopping block. I chose to postpone my plans till the economic situations are less volatile.” However, while some students put their study abroad plans on hold, there were others who decided to go ahead with them anyway. Rini Mukherjee, who is pursuing Ancient Greek at the University of Cyprus, avers, “I continued with what I needed to do. If the recessional situation can subside in a year or two, it can also be reaffirmed. This is a good time to complete the academic experience, and hopefully, by the time my course ends, the economic situation will be better. If it isn’t, there will tough competition, a phenomenon not exactly unknown to Indians.”

However, it is noteworthy that the applications for a number of foreign universities in the UK, Australia and New Zealand, have only increased in the current year. Surya Ganesh Valmiki, Valmiki Group, discloses, “There has been a 60 per cent rise in the number of applications to universities in the UK. Also, Australia has become the preferred education destination because of its simpler visa process, as well as bright prospects of permanent residency. 48,500 visas were granted to Indian students, who had applied to universities in Australia.” Moreover, Marina Gandhi, Head of East India, Education UK, British Council, also confirms an increase in the number of students, who had applied for further studies in the UK over that last year.

On the other hand, while the US is still one of the most favoured destinations, it is crucial to note that the US government rejected 70 per cent of visa applications this year. A major factor that adds to students woes is that a US visa is not easily acquired.

The choice of courses also did not witness any major changes. As Shekhar Niyogi, Education Consultant, Education Unlimited Inc, says, “The preferred programmes continue to be engineering, biological sciences and MBA.”

BACK TO SCHOOL
B-Schools reported an increase in the number of applications for their full-time and executive MBA programmes. Dr Kondap, Vice- Chancellor, NMIMS University, reports that the institute expects a whopping increase of 10,000 more applications to their full-time MBA programme for the next year. However, Kondap is quick to add that the recession and the number of applications this year are mutually exclusive factors, although he agrees that recession may be the reason for the rise in the number of applications to the Executive MBA programmes.

Singapore-based Nanyang Technological University’s Nanyang Business School too has already received ‘more than double’ the applications it received in December last year.

The number of freshmen at IIM-Lucknow in 2008 comprised only six per cent of graduates, without any professional experience. The rest have a minimum of two years of experience, and for various reasons, have decided to go back to school. THE Faculty of Management Studies (FMS), Delhi University, has received a record number of applications. This year, FMS received 70,000 applications for around 200 seats, up from 60,000 applications last year. However, J K Mitra, Dean, FMS, believes that the recession may not necessarily be behind the rise in the number of applications. He clarifies, “One can’t be certain about the degree of influence that recession has exerted on students, who want to be admitted to the regular course. However, there will certainly be an impact on the number of applications for the part-time MBA programme at the institute.”

Also, according to Anil Tandon, Principal, ICFAI, students prefer to go back to school now because they are aware that they would need to build their qualifications in order to have that extra edge if they want to excel.

While discussing the trend of going abroad, Dipanwita Ghosh, a Master’s in Journalism student from American University, Washington, DC, says, “In order to tide over this phase, students are opting for courses, which require longer gestation periods, like a PhD or an MPhil. This is an attempt to simply pass the time in the most fruitful manner possible.”

Pondering over the issue, Prafulla Agnihotri, Faculty, Marketing, IIM Calcutta, says, “The recession has not really affected the decisions of students, who want to pursue an MBA. Though there is no clear picture at hand now, the perceivable change will be palpable from the next financial year.”

DIP IN PLACEMENTS?
The final placement season is currently underway in some B-Schools and management departments, and analysts are currently speculating about the possible effect of recession on placements. So far, students at these B-Schools are by and large, content with the placement opportunities.

The management departments that have started placements for their final batch include the Indian Institutes of Technology (IITs) at Chennai and Kanpur and Goa Institute of Management (GIM). According to the placement committee members from these institutes, apart from a ‘dip’ in financial sector companies, the profile and salary packages offered to students have ’stayed the same’ and, in some sectors, they have become even better. Discussing the number of companies visiting the campus, Saakshi Kanwar, Member, Placement Cell, GIM, says, “Our institute had long-standing ties with the companies that have visited the campus this year. Though the number of recruiters in the financial sector has reduced, companies from this segment haven’t stopped recruiting completely.”

IIT-Chennai’s Department Of Management Studies (DoMS) also reports a lesser number of companies from the financial sector, but there was an increase in the number of recruiters from other sectors.

In fact, the only difference witnessed by IITKanpur’s management department is the duration of the placement process. As a member of the placement committee reveals, “Earlier, students used to be placed on the very first day, but now the process is spread over a few days. Apart from this, there has been no visible difference in terms of salary packages, profiles, etc.”

V C Ravichandran, Director, Centre for University – Industry Collaboration (CUIC), Anna University, claims, “More than 90 companies have visited the university so far, though investment banks have postponed their dates. CUIC bridges the gap between industry and academia, and we have several placement and pre-placement discussions by companies from across the country. This not only helps students prepare for group discussions and interviews, but also helps them understand the needs and demands of various companies in these turbulent, economic circumstances.”

Predicting the immediate future, Dr K S Pratap Kumar, Director, National Institute of Fashion Technology (NIFT), Hyderabad, mentions, “We will be starting our placement soon, but in the wake of recession, I can predict that it is going to be a challenge. With the global meltdown, the export industry is badly hit, and it is going to make things difficult. However, we are trying our level best to help our students.”

Kondap adds, “Though placements will be affected due to the recession, this will only be a corrective measure in terms of the salaries that fresh management graduates have been drawing.” Prof Veer Singh, Vice Chancellor, NALSAR University of Law, explains, “In the current situation, there will be more litigation cases, hence, there will be an increased need of trained, legal professionals. Legal Business Processing is witnessing an upward trend in India. Therefore, our placements will be as good as they were the last year. In fact, they might just get better this year. The final verdict can be given only after the batch passes out.”

Prof Dr Uday Salunkhe, Group Director, Welingkar Institute of Management, admits, “Placing students has been more challenging this year than the past few years. A lot more strategising and effort is required in identifying and expanding the pool of companies for placements. Also, student mindsets have to be conditioned, so as to ensure that students are able to grasp the situation and plan their career moves accordingly.”

INDUSTRY-ACADEMIA TIE-UPS
Realising the need for industry inputs in the curriculum of professional courses, a number of institutes had previously entered into tie-ups with professional companies. Dr Kondap says, “The tieups that we have entered into are definitely underway. For instance, we have a tie-up with Dr Reddy’s, wherein we have members of the company enrolling for the executive MBA programme. Programmes like these are highly customised, and companies are keen to train potential employees to their needs and tastes. Thus, in spite of recession, there is immense scope for such tie-ups.”

Other tie-ups are only in their initial stages. Professor Y V Rao, Director of NIT, Warangal, says, “Though the concept is in its infancy in India, we have signed an MoU with CPRI, Bangalore for exchange of staff in training and research. Similarly, MoUs with IBM, Accenture and TCS encourage these companies to train our students and conduct combined research on projects. Though we are steadily progressing, our main concern is to keep pace with changing technology, failing which we will turn obsolete.”

RECAP 2008: Education Sector Boom

By M H Ahssan

THE YEAR 2008 SAW A SEA OF CHANGE IN THE EDUCATION SECTOR. A NUMBER OF TRENDS WITNESSED A BOOM, WHEREAS OTHERS FAILED TO TAKE OFF. IN THIS YEAR-END ISSUE, HNN ANALYSES THE MOST PROMINENT TRENDS IN THE EDUCATION SEGMENT IN 2008.

As news of the economic slowdown hit Indian shores, the education sector, along with many other industries, underwent several changes. Whether it was students temporarily abandoning their study abroad plans, professionals choosing to go back to school, in order to spruce up their qualifications, institutes reporting a negligible slowdown in their placement rates, or the undecided fate of industry-academia tie-ups, there were both triumphs and tribulations in 2008.

STUDY ABROAD SENTIMENTS
While recession is poi sed to affect India in the long run, it might be a little early to determine how it is likely to affect Indian students’ study abroad decisions. Hazel Shiromoni, Vice-President, CECN Global Schools, corroborates this view, saying, “Only after a span of a few months, can a pattern be identified. However, it is crucial to note that student enquiries for some courses, such as aviation, hospitality, travel and tourism are already going down.” She goes on to add that the mindset of people, in terms of pursuing an education abroad will not change, and people from affluent sections of society will continue to send their children abroad. However, for the middle-class, particularly for those, who have invested in stocks, sending their children abroad may no longer be an affordable proposition.

Ajit Motwani, Director (India), Institute of International Education (IIE), reveals, “Most students applied for the fall session (September) before recession hit India, and were unlikely to be affected by it. Further, the spring semester has a small intake, so any real change in applications will only be visible in the fall session next year, when the affects of recession sink in.”

Purti Simon, an alumni of St Xavier’s College Kolkata, says, “I was forced to put my plans to study abroad on hold. It calls for a large expenditure and one would obviously look at recouping the investment. In the present scenario, international students are the first on the chopping block. I chose to postpone my plans till the economic situations are less volatile.” However, while some students put their study abroad plans on hold, there were others who decided to go ahead with them anyway. Rini Mukherjee, who is pursuing Ancient Greek at the University of Cyprus, avers, “I continued with what I needed to do. If the recessional situation can subside in a year or two, it can also be reaffirmed. This is a good time to complete the academic experience, and hopefully, by the time my course ends, the economic situation will be better. If it isn’t, there will tough competition, a phenomenon not exactly unknown to Indians.”

However, it is noteworthy that the applications for a number of foreign universities in the UK, Australia and New Zealand, have only increased in the current year. Surya Ganesh Valmiki, Valmiki Group, discloses, “There has been a 60 per cent rise in the number of applications to universities in the UK. Also, Australia has become the preferred education destination because of its simpler visa process, as well as bright prospects of permanent residency. 48,500 visas were granted to Indian students, who had applied to universities in Australia.” Moreover, Marina Gandhi, Head of East India, Education UK, British Council, also confirms an increase in the number of students, who had applied for further studies in the UK over that last year.

On the other hand, while the US is still one of the most favoured destinations, it is crucial to note that the US government rejected 70 per cent of visa applications this year. A major factor that adds to students woes is that a US visa is not easily acquired.

The choice of courses also did not witness any major changes. As Shekhar Niyogi, Education Consultant, Education Unlimited Inc, says, “The preferred programmes continue to be engineering, biological sciences and MBA.”

BACK TO SCHOOL
B-Schools reported an increase in the number of applications for their full-time and executive MBA programmes. Dr Kondap, Vice- Chancellor, NMIMS University, reports that the institute expects a whopping increase of 10,000 more applications to their full-time MBA programme for the next year. However, Kondap is quick to add that the recession and the number of applications this year are mutually exclusive factors, although he agrees that recession may be the reason for the rise in the number of applications to the Executive MBA programmes.

Singapore-based Nanyang Technological University’s Nanyang Business School too has already received ‘more than double’ the applications it received in December last year.

The number of freshmen at IIM-Lucknow in 2008 comprised only six per cent of graduates, without any professional experience. The rest have a minimum of two years of experience, and for various reasons, have decided to go back to school. THE Faculty of Management Studies (FMS), Delhi University, has received a record number of applications. This year, FMS received 70,000 applications for around 200 seats, up from 60,000 applications last year. However, J K Mitra, Dean, FMS, believes that the recession may not necessarily be behind the rise in the number of applications. He clarifies, “One can’t be certain about the degree of influence that recession has exerted on students, who want to be admitted to the regular course. However, there will certainly be an impact on the number of applications for the part-time MBA programme at the institute.”

Also, according to Anil Tandon, Principal, ICFAI, students prefer to go back to school now because they are aware that they would need to build their qualifications in order to have that extra edge if they want to excel.

While discussing the trend of going abroad, Dipanwita Ghosh, a Master’s in Journalism student from American University, Washington, DC, says, “In order to tide over this phase, students are opting for courses, which require longer gestation periods, like a PhD or an MPhil. This is an attempt to simply pass the time in the most fruitful manner possible.”

Pondering over the issue, Prafulla Agnihotri, Faculty, Marketing, IIM Calcutta, says, “The recession has not really affected the decisions of students, who want to pursue an MBA. Though there is no clear picture at hand now, the perceivable change will be palpable from the next financial year.”

DIP IN PLACEMENTS?
The final placement season is currently underway in some B-Schools and management departments, and analysts are currently speculating about the possible effect of recession on placements. So far, students at these B-Schools are by and large, content with the placement opportunities.

The management departments that have started placements for their final batch include the Indian Institutes of Technology (IITs) at Chennai and Kanpur and Goa Institute of Management (GIM). According to the placement committee members from these institutes, apart from a ‘dip’ in financial sector companies, the profile and salary packages offered to students have ’stayed the same’ and, in some sectors, they have become even better. Discussing the number of companies visiting the campus, Saakshi Kanwar, Member, Placement Cell, GIM, says, “Our institute had long-standing ties with the companies that have visited the campus this year. Though the number of recruiters in the financial sector has reduced, companies from this segment haven’t stopped recruiting completely.”

IIT-Chennai’s Department Of Management Studies (DoMS) also reports a lesser number of companies from the financial sector, but there was an increase in the number of recruiters from other sectors.

In fact, the only difference witnessed by IITKanpur’s management department is the duration of the placement process. As a member of the placement committee reveals, “Earlier, students used to be placed on the very first day, but now the process is spread over a few days. Apart from this, there has been no visible difference in terms of salary packages, profiles, etc.”

V C Ravichandran, Director, Centre for University – Industry Collaboration (CUIC), Anna University, claims, “More than 90 companies have visited the university so far, though investment banks have postponed their dates. CUIC bridges the gap between industry and academia, and we have several placement and pre-placement discussions by companies from across the country. This not only helps students prepare for group discussions and interviews, but also helps them understand the needs and demands of various companies in these turbulent, economic circumstances.”

Predicting the immediate future, Dr K S Pratap Kumar, Director, National Institute of Fashion Technology (NIFT), Hyderabad, mentions, “We will be starting our placement soon, but in the wake of recession, I can predict that it is going to be a challenge. With the global meltdown, the export industry is badly hit, and it is going to make things difficult. However, we are trying our level best to help our students.”

Kondap adds, “Though placements will be affected due to the recession, this will only be a corrective measure in terms of the salaries that fresh management graduates have been drawing.” Prof Veer Singh, Vice Chancellor, NALSAR University of Law, explains, “In the current situation, there will be more litigation cases, hence, there will be an increased need of trained, legal professionals. Legal Business Processing is witnessing an upward trend in India. Therefore, our placements will be as good as they were the last year. In fact, they might just get better this year. The final verdict can be given only after the batch passes out.”

Prof Dr Uday Salunkhe, Group Director, Welingkar Institute of Management, admits, “Placing students has been more challenging this year than the past few years. A lot more strategising and effort is required in identifying and expanding the pool of companies for placements. Also, student mindsets have to be conditioned, so as to ensure that students are able to grasp the situation and plan their career moves accordingly.”

INDUSTRY-ACADEMIA TIE-UPS
Realising the need for industry inputs in the curriculum of professional courses, a number of institutes had previously entered into tie-ups with professional companies. Dr Kondap says, “The tieups that we have entered into are definitely underway. For instance, we have a tie-up with Dr Reddy’s, wherein we have members of the company enrolling for the executive MBA programme. Programmes like these are highly customised, and companies are keen to train potential employees to their needs and tastes. Thus, in spite of recession, there is immense scope for such tie-ups.”

Other tie-ups are only in their initial stages. Professor Y V Rao, Director of NIT, Warangal, says, “Though the concept is in its infancy in India, we have signed an MoU with CPRI, Bangalore for exchange of staff in training and research. Similarly, MoUs with IBM, Accenture and TCS encourage these companies to train our students and conduct combined research on projects. Though we are steadily progressing, our main concern is to keep pace with changing technology, failing which we will turn obsolete.”

2008: A Watershed Year for Judiciary

By M H Ahssan

For long, judiciary had been the public’s favourite whipping boy for its reluctance to look inwards and weed out black sheep from among the judges. Its holy cow approach towards the corrupt in the ranks, coupled with the coercive ‘contempt of court’ powers, had even forced staunch detractors to talk corrupt judges in hushed voices in the corridors of the Supreme Court.

It is not that the judiciary headed by the Chief Justice of India had not been taking action against corrupt judges. But looking back, this year could well be the watershed, for it took surgical steps to chop cancerous growths in the judicial limbs.

It all started with the Ghaziabad PF scam early this year. In the list of suspects were 35 judges — one from the Supreme Court, 11 from High Courts and 23 from lower courts. When a petition reached the SC for a CBI probe, few put their money on a positive outcome, for everyone knew the judiciary’s ability to sweep things under the carpet.

Not this time, though. The SC took the opportunity to embark on a rarelytraversed path. Not only did it order a CBI probe but also saw to it that a fair probe took place by refusing to extend the tenure of an additional judge of Allahabad HC and recommending transfers of four more judges — three from Allahabad HC and one from Uttarakhand HC.

If the decision to hear the PF scam petition in open court left the long closed inner room door of judiciary slightly ajar for the public to peep into, the subsequent actions and corrective measures certainly beamed a ray of hope, as for the first time there was a resolve not to sweep things under the carpet but set things in order.

At a time when the apex court was dealing with the PF scam, the judiciary got smeared by another scam — cash delivered at a Punjab and Haryana HC judge’s residence “mistakenly” by none other than a senior state law officer. Again, it displayed steely nerves to order a CBI probe.

Prior to this, it had recommended the government to impeach a Calcutta HC judge who stubbornly refused to resign despite being indicted by the in-house inquiry mechanism of having indulged in corrupt practices. Such a drastic step, which is historic too, showed that the CJI and the collegium of judges in the SC did not have a weak stomach when it came to taking action against the corrupt within the ranks.

Transparency International’s ‘Global Corruption Report 2007 — Corruption in Judicial System’ succinctly outlines the influences that could breed corruption in judiciary. “Once influence that can lead judges to make decisions based on factors other than the facts and applicable law is fear of retribution by political leaders, appellate judges, powerful individuals, the public and media.” Apart from action against corrupt judges, there is a crying need to overhaul the system so that judiciary’s public image remains intact. In this context, the Global Corruption Report’s suggestion to weed out corruption would not be out of place.

“It is possible to mitigate the factors that contribute to judicial corruption, but solutions must be tailored to national, or even sub-national, realities, and are successful when part of an integrated reform plan,” it said.

BJP Finalises Names for 12 Lok Sabha Seats

By Swati Reddy

The Bharatiya Janata Party on Sunday finalised its first list of candidates for 12 Lok Sabha seats in the ensuing general elections even as the party’s national spokesman Prakash Javdekar denied approaching any party or vice-versa regarding electoral alliances.

The list includes Ch Vidyasagar Rao (Karimnagar), N Indrasena Reddy (Malkajgiri), Badaru Dattatreya (Secunderabad), Baddam Bal Reddy (Chevella), Jhansi Rani (Mahbubnagar), K Sarvarayudu (Rajahmundry), D V Subba Rao (Visakhapatnam), U V Krishnam Raju (Narsapur), K Shanta Reddy (Rajampeta), Naresh (Hindupur), Y Raghunath Babu (Guntur) and D Ravindra Babu(Srikakulam).

Senior leaders Prakash Javdekar, M Venkaiah Naidu, Bangaru Laxman, V Rama Rao, B Dattatreya and others finalised the first list and the electoral strategy to be adopted in the state for the next general elections. It is learnt that the national leaders who attended the three-hour state election committee meeting took a considerate view of the state leaders’ submission that BJP’s chances in 110 Assembly constituencies were very strong.

Meanwhile, sources said BJP national leaders were having elaborate discussions with the new political parties (read as Prajarajyam and Nava Telangana Party) on the likely alliance to be adopted in the Assembly and Parliamentary elections.

State party president B Dattatreya however refused to confirm the news saying all announcements regarding elections and announcement of candidates would be made by the BJP parliamentary board.

Earlier, Prakash Javdekar told media that party’s state office-bearers meeting and election committee meeting had extensive discussions on the prevailing political scenario in the state. He said the party would soon announce a detailed schedule for a string of programmes to be taken up over the next 50 days to reach out to the people.

The BJP spokesperson said the issue of statehood to Telangana would be top on the party’s agenda, apart from issues of price rise, terrorism and corruption. As part of the programme, L K Advani would address a meeting each in Karimnagar, Guntur and Madanapalle before electioneering.

Taking a dig at the Congress rule in the state, he said chief minister Y S Rajasekhara Reddy had broken all records regarding corruption and very soon he would find a place in the Guinness Book of World Records and enumerate himself as the ‘master of corruption’. “No chief minister in the country since Independence has had such a dubious distinction regarding unabashed corruption,” he alleged. The BJP spokesperson demanded a special CAG inspection of all the irrigation projects and public works taken up in the state after Y S Rajasekhara Reddy became the chief minister.

BJP Finalises Names for 12 Lok Sabha Seats

By Swati Reddy

The Bharatiya Janata Party on Sunday finalised its first list of candidates for 12 Lok Sabha seats in the ensuing general elections even as the party’s national spokesman Prakash Javdekar denied approaching any party or vice-versa regarding electoral alliances.

The list includes Ch Vidyasagar Rao (Karimnagar), N Indrasena Reddy (Malkajgiri), Badaru Dattatreya (Secunderabad), Baddam Bal Reddy (Chevella), Jhansi Rani (Mahbubnagar), K Sarvarayudu (Rajahmundry), D V Subba Rao (Visakhapatnam), U V Krishnam Raju (Narsapur), K Shanta Reddy (Rajampeta), Naresh (Hindupur), Y Raghunath Babu (Guntur) and D Ravindra Babu(Srikakulam).

Senior leaders Prakash Javdekar, M Venkaiah Naidu, Bangaru Laxman, V Rama Rao, B Dattatreya and others finalised the first list and the electoral strategy to be adopted in the state for the next general elections. It is learnt that the national leaders who attended the three-hour state election committee meeting took a considerate view of the state leaders’ submission that BJP’s chances in 110 Assembly constituencies were very strong.

Meanwhile, sources said BJP national leaders were having elaborate discussions with the new political parties (read as Prajarajyam and Nava Telangana Party) on the likely alliance to be adopted in the Assembly and Parliamentary elections.

State party president B Dattatreya however refused to confirm the news saying all announcements regarding elections and announcement of candidates would be made by the BJP parliamentary board.

Earlier, Prakash Javdekar told media that party’s state office-bearers meeting and election committee meeting had extensive discussions on the prevailing political scenario in the state. He said the party would soon announce a detailed schedule for a string of programmes to be taken up over the next 50 days to reach out to the people.

The BJP spokesperson said the issue of statehood to Telangana would be top on the party’s agenda, apart from issues of price rise, terrorism and corruption. As part of the programme, L K Advani would address a meeting each in Karimnagar, Guntur and Madanapalle before electioneering.

Taking a dig at the Congress rule in the state, he said chief minister Y S Rajasekhara Reddy had broken all records regarding corruption and very soon he would find a place in the Guinness Book of World Records and enumerate himself as the ‘master of corruption’. “No chief minister in the country since Independence has had such a dubious distinction regarding unabashed corruption,” he alleged. The BJP spokesperson demanded a special CAG inspection of all the irrigation projects and public works taken up in the state after Y S Rajasekhara Reddy became the chief minister.

Satyam Rajus Looking for Strategic Partner?

By M H Ahssan

Faced with a virtual revolt from various stakeholders, including the very same independent directors who had cleared the controversial Maytas buyout proposal, the Rajus of Satyam Computers are actively considering inducting a strategic partner and selling out their shares in the $ 2-billion IT company.

Late on Saturday evening, the company while postponing its board meeting from December 29 to Jan 10, announced the appointment of DSP Merill Lynch to advise on “strategic options to enhance shareholder value.” A company release also talked of a “possible dilution of promoters’ stake in the company.” Analysts said that these two points when read together could mean that the Rajus are looking at an exit route and bringing in other investors. “The promoters own only 8.6 per cent of the company’s shares. That is very low. Dilution could mean that they go out,” averred Monotosh Sinha, executive director of Centrum Capital.

Satyam will also recast its board of directors: some board members are expected to exit, while some new faces could come on board. The Satyam release suggested that the next board meeting will consider “measures to strengthen the company’s goverance structure, including the size and altering the composition of the board.” Facing flak from all quarters, ISB dean M Rammohan Rao, who chaired the controversial meeting that okayed the Maytas deal, is expected to leave the board. But father of Pentium, Vinod Dham, who told TOI that he had asked for a special board meeting to consider all matters pertaining to the company is expected to continue and play a pivotal role. “He is a well-known name in technology circles in the US. And the stockmarket there would react positively to his continuance on the board,” an analyst pointed out. Dham, along with Harvard Business School professor Krishna Palepu, is expected to physically attend the board meeting: in the past, the two usually participated through video conferencing.

Sources expected that if the sell-out by Satyam does not happen or till such times that it happens, B Rama Raju, the co founder and brother of Ramalinga Raju and managing director of the company, will step down from his executive position and make way for a salaried professional as managing director. “He will continue as a non executive director,” sources averred. Similarly, it is expected that Ramalinga Raju might himself become a non executive chairman of the Satyam board.

IBM likely to takeover Satyam?
Stories about the disinclination of the Rajus to continue with Satyam Computers have been doing the rounds for the last two years with the constant buzz being that IBM would possibly takeover the company. “Though constantly denied, the fact that these tales persisted only shows that there cannot be smoke without fire,” says a top Hyderabad businessman known to Ramalinga Raju for long.

Raju who started off his entrepreneurial career in the construction business has a fascination for the real estate and related industry, say people who know him. This is precisely the reason why Maytas (which is Satyam spelt in reverse) was spawned by Ramalinga Raju a few years ago. Maytas has now grown big and comprises Maytas Infra and Maytas Properties. The former’s order book is over Rs 12,000 crore besides the Hyderabad Metro Rail project.

Satyam Computers has reserves of Rs 8500 crore. “All indications are that they want to exit, but by selling out they will lose control of this money. That is why I cannot figure out why they want to sell out,” a chief financial officer of a top corporate told TOI. “Unless you see it as an instance of the promoters being potentially forced out of the company by the shareholders. But nothing similar has happened in India before,” said Amitabha Guha, former deputy managing director of SBI.

Satyam Rajus Looking for Strategic Partner?

By M H Ahssan

Faced with a virtual revolt from various stakeholders, including the very same independent directors who had cleared the controversial Maytas buyout proposal, the Rajus of Satyam Computers are actively considering inducting a strategic partner and selling out their shares in the $ 2-billion IT company.

Late on Saturday evening, the company while postponing its board meeting from December 29 to Jan 10, announced the appointment of DSP Merill Lynch to advise on “strategic options to enhance shareholder value.” A company release also talked of a “possible dilution of promoters’ stake in the company.” Analysts said that these two points when read together could mean that the Rajus are looking at an exit route and bringing in other investors. “The promoters own only 8.6 per cent of the company’s shares. That is very low. Dilution could mean that they go out,” averred Monotosh Sinha, executive director of Centrum Capital.

Satyam will also recast its board of directors: some board members are expected to exit, while some new faces could come on board. The Satyam release suggested that the next board meeting will consider “measures to strengthen the company’s goverance structure, including the size and altering the composition of the board.” Facing flak from all quarters, ISB dean M Rammohan Rao, who chaired the controversial meeting that okayed the Maytas deal, is expected to leave the board. But father of Pentium, Vinod Dham, who told TOI that he had asked for a special board meeting to consider all matters pertaining to the company is expected to continue and play a pivotal role. “He is a well-known name in technology circles in the US. And the stockmarket there would react positively to his continuance on the board,” an analyst pointed out. Dham, along with Harvard Business School professor Krishna Palepu, is expected to physically attend the board meeting: in the past, the two usually participated through video conferencing.

Sources expected that if the sell-out by Satyam does not happen or till such times that it happens, B Rama Raju, the co founder and brother of Ramalinga Raju and managing director of the company, will step down from his executive position and make way for a salaried professional as managing director. “He will continue as a non executive director,” sources averred. Similarly, it is expected that Ramalinga Raju might himself become a non executive chairman of the Satyam board.

IBM likely to takeover Satyam?
Stories about the disinclination of the Rajus to continue with Satyam Computers have been doing the rounds for the last two years with the constant buzz being that IBM would possibly takeover the company. “Though constantly denied, the fact that these tales persisted only shows that there cannot be smoke without fire,” says a top Hyderabad businessman known to Ramalinga Raju for long.

Raju who started off his entrepreneurial career in the construction business has a fascination for the real estate and related industry, say people who know him. This is precisely the reason why Maytas (which is Satyam spelt in reverse) was spawned by Ramalinga Raju a few years ago. Maytas has now grown big and comprises Maytas Infra and Maytas Properties. The former’s order book is over Rs 12,000 crore besides the Hyderabad Metro Rail project.

Satyam Computers has reserves of Rs 8500 crore. “All indications are that they want to exit, but by selling out they will lose control of this money. That is why I cannot figure out why they want to sell out,” a chief financial officer of a top corporate told TOI. “Unless you see it as an instance of the promoters being potentially forced out of the company by the shareholders. But nothing similar has happened in India before,” said Amitabha Guha, former deputy managing director of SBI.

Realty cos Diversifying into Education

By M H Ahssan

Education is proving to be quite a draw with a new breed of entrepreneurs in Kolkata. A bunch of real estate developers are diversifying into education and looking at rolling out schools, management institutes and engineering colleges, most of them as a notfor-profit or CSR activity.

The likes of the Ambuja Group, South City, PS Group, among others are all looking at education, drawn by the sheer longterm opportunities which the sector offers. Though realtors have been setting up schools as part of large integrated projects, which also boast of amenities like shopping areas and medical facilities, these players are different in the sense that they are looking at these educational ventures as independent projects in themselves.

PS Group CMD Pradip Kumar Chopra said around 80-85% of the initial investment in setting up an education project goes towards infrastructure and land cost. “Since we are already experts in real estate, we can then save nearly 30% of the initial cost. Hence, this would make such projects more viable,” said Mr Chopra. PS Group has already acquired two 25-acre plots in Rajarhat and Bantala for their proposed education ventures. This includes a B-school and an integrated education hub, which will offer everything from school to doctoral-level education.

South City Projects is also aggressively promoting its South City International School within its residential complex, conceptualised by educational consultant Shomie Das, ex-principal, Doon School and supposedly tutor to none other than Prince Charles! The school will offer five certificates including ICSE, ISC, IBO, Geneva, IGCSE (‘O’ and ‘A’ levels). South City director Pradeep Sureka claimed, “Many people have actually bought flats just to avail of the school, which starts operations in April 2009. It may also prove to be an employment avenue to some of our residents.”

Harshavardhan Neotia, chairman, Ambuja Realty told ET, “As part of our CSR activities, our foundation has recently taken over the Institute of Technology and Marine Engineering on Diamond Harbour Road from its earlier promoters. Right now, it has 1,200 students and six streams of engineering. In due course, we intend to add management and hospitality education.”

BPOs Back In Demand

By M H Ahssan

The global economic slowdown is beginning to spell a windfall for some BPO firms. Companies such as WNS, EXL, Steria and Quatrro are finding new opportunities as clients aggressively pursue cost-cutting.

“With reality dawning that these are going to be tough times, companies have become more aggressive on outsourcing,” said WNS (Holdings) CEO Neeraj Bhargava. The BPO firm recently renewed its contract with Centrica that includes a new, three-year transformational plan for streamlining the energy firm’s operations. WNS, which is witnessing traction in utilities, telecom and insurance, is in active discussions for 5-6 deals that it expects to close in the next quarter.

BPO firm ExlService Holdings says the last few weeks have seen clients cut down on their decision-making time to four weeks from 12-18 weeks earlier. “There is a healthy business pipeline and there is a fair number of companies looking to cut costs,” president and CEO Rohit Kapoor said. Apart from insurance vertical, the firm is also seeing demand for finance and accounting work in retail and manufacturing.

Clients are now looking towards their outsourcing vendors to suggest ways to cut costs, Genpact president and CEO Pramod Bhasin had said recently. “There are some project cancellations but there are new opportunities too.”

As per a report by telecom and software consulting firm Ovum, BPO will overshadow the importance of IT in the outsourcing market in 2009. While there is lower level of offshoring in BPO at present, it is more non-discretionary in nature.

“As companies cut back on resources, they will look at outsourcing more work,” Ovum’s Asia Pacific software and sourcing principal analyst Jens Butler said. For outsourcing services vendor Steria, its large exposure to public sector—about 36% of revenues come from the vertical—is an advantage. “We have seen orders go up in the public sector as governments try to revive the economy by spending more,” Steria CEO Mukesh Aghi said. The firm’s joint venture with UK’s Department of Health recently won outsourcing contracts worth £13.8 million to provide finance, accounting and payroll services to 12 national health service organisations.

Quatrro BPO solutions has seen great demand for foreclosures and legal process outsourcing (LPO) work. MD Raman Roy says his top management is focusing on bringing out solutions related to government bailouts. Amid all this, banking and financial services is also showing some activity. While WNS is seeing some pick-up in demand from banking companies, EXL’s Mr Kapoor said financial services firms in the US are looking at outsourcing partners for regulatory compliance work.

New Mantra: Sex on Leave

By M H Ahssan

Stress and hectic lifestyle can impact one’s libido. If ‘Honey, I have a headache!’ has become your man’s line of late, read on HNN mantras to cope.

Most women take sexual rejection very personally, especially if their sense of selfworth is linked to love and acceptance from their partner. When a sexual advance by a woman is turned down by her man, she views herself as being an inadequate lover, spouse and even a person. She believes that her ‘lovability’ is defined by the affection she receives or does not receive from her partner.

MELTDOWN IN BED
The current trend of sexless marriages, due to lowered self-esteem of men facing a financial crisis and resultant stress, is leading to varied reactions among women. Some working women who are aware of the global crisis, show greater empathy and do not blame their partner for the financial situation, or the subsequent lack of interest in sex. Instead, they assume the role of a sounding board, and also attempt to motivate them to be optimistic and deal with the crisis ‘together’.

On the other hand, some women add to their husbands’ woes by being confrontational, demanding, aggressive and blaming them for the loss of both, ‘money and sex’ and launch a direct attack on their partner’s manhood. This only makes matters worse. The woman, who has shoved a guilt-trip down her husband’s throat, can be rest assured that the financial crises may end, but her sex life will never improve.

Women need to understand that ‘sex is not between the legs but between the ears’, and therefore also understand that a healthy and relaxed mind is important for mutually satisfying physical intimacy.

SELF-WORTH FACTOR
Some women get confused and anxious with the sudden withdrawal of sex, get depressed and might suspect that their husband is having an extra-marital affair or satisfying his sexual urges in other ways.

In some cases, over-consumption of alcohol can be a problem, especially with regular drinkers who try to deal with stress via alcohol. This takes a huge toll on the relationship and might end up whining about problems and doesn’t wish to address the crisis in a logical manner.

In such a condition, marriage counselling helps. Also, stress counselling helps the man deal with the financial and sexual lull in life.

A man can be taught to reach out and be sensitive to his wife’s needs, and the woman can be educated to not make it all about herself, be ‘emotionally available’ and not use the husband’s vulnerability against him ever. The couple must remember that this is a temporary but crucial phase.

Moreover, the ‘emotional intimacy’ during this crisis can strengthen their relationship, and there can be some surprising moments of physical intimacy, emerging from such emotional bonding.

COPING WITH IT
A wife could use these troubled times to build the emotional intimacy and companionship with her husband and engage him in small joys in an unpressurising manner, such as sharing the child’s achievement in school. She could engage in non-sexual touching like offering a back rub or head massage to bond with him. She shouldn’t mind her husband wanting to spend time with his colleagues who enlighten him on ways to deal with the problem, not make any unreasonable demands. Tell him that both of you will get through it ‘together’, and that you believe in his abilities. Ensure that he doesn’t blame himself. Assure him that everyone is in the same boat. Help him accept uncertainties and forgive himself for human errors, if any. She can help de-stigmatise seeking professional help. If he is depressed, accompany him to a counsellor. She could identify what brings him joy. Small things such as cooking his favourite meal, inviting his best friend over for dinner can help him. At times, when he is relaxed, she could take the lead, touch him sensually, with no pressure to perform, and see if he wants to take it forward. The woman, of course, has her own emotional and physical needs. She could channelise her libido in work and children, or sublimate her sexual urges in creative pursuits. If she is spiritually inclined, then prayer and meditation can give her comfort. She could also engage in self-pleasuring from time to time to deal with her own heightened sexual urges.

New Mantra: Sex on Leave

By M H Ahssan

Stress and hectic lifestyle can impact one’s libido. If ‘Honey, I have a headache!’ has become your man’s line of late, read on HNN mantras to cope.

Most women take sexual rejection very personally, especially if their sense of selfworth is linked to love and acceptance from their partner. When a sexual advance by a woman is turned down by her man, she views herself as being an inadequate lover, spouse and even a person. She believes that her ‘lovability’ is defined by the affection she receives or does not receive from her partner.

MELTDOWN IN BED
The current trend of sexless marriages, due to lowered self-esteem of men facing a financial crisis and resultant stress, is leading to varied reactions among women. Some working women who are aware of the global crisis, show greater empathy and do not blame their partner for the financial situation, or the subsequent lack of interest in sex. Instead, they assume the role of a sounding board, and also attempt to motivate them to be optimistic and deal with the crisis ‘together’.

On the other hand, some women add to their husbands’ woes by being confrontational, demanding, aggressive and blaming them for the loss of both, ‘money and sex’ and launch a direct attack on their partner’s manhood. This only makes matters worse. The woman, who has shoved a guilt-trip down her husband’s throat, can be rest assured that the financial crises may end, but her sex life will never improve.

Women need to understand that ‘sex is not between the legs but between the ears’, and therefore also understand that a healthy and relaxed mind is important for mutually satisfying physical intimacy.

SELF-WORTH FACTOR
Some women get confused and anxious with the sudden withdrawal of sex, get depressed and might suspect that their husband is having an extra-marital affair or satisfying his sexual urges in other ways.

In some cases, over-consumption of alcohol can be a problem, especially with regular drinkers who try to deal with stress via alcohol. This takes a huge toll on the relationship and might end up whining about problems and doesn’t wish to address the crisis in a logical manner.

In such a condition, marriage counselling helps. Also, stress counselling helps the man deal with the financial and sexual lull in life.

A man can be taught to reach out and be sensitive to his wife’s needs, and the woman can be educated to not make it all about herself, be ‘emotionally available’ and not use the husband’s vulnerability against him ever. The couple must remember that this is a temporary but crucial phase.

Moreover, the ‘emotional intimacy’ during this crisis can strengthen their relationship, and there can be some surprising moments of physical intimacy, emerging from such emotional bonding.

COPING WITH IT
A wife could use these troubled times to build the emotional intimacy and companionship with her husband and engage him in small joys in an unpressurising manner, such as sharing the child’s achievement in school. She could engage in non-sexual touching like offering a back rub or head massage to bond with him. She shouldn’t mind her husband wanting to spend time with his colleagues who enlighten him on ways to deal with the problem, not make any unreasonable demands. Tell him that both of you will get through it ‘together’, and that you believe in his abilities. Ensure that he doesn’t blame himself. Assure him that everyone is in the same boat. Help him accept uncertainties and forgive himself for human errors, if any. She can help de-stigmatise seeking professional help. If he is depressed, accompany him to a counsellor. She could identify what brings him joy. Small things such as cooking his favourite meal, inviting his best friend over for dinner can help him. At times, when he is relaxed, she could take the lead, touch him sensually, with no pressure to perform, and see if he wants to take it forward. The woman, of course, has her own emotional and physical needs. She could channelise her libido in work and children, or sublimate her sexual urges in creative pursuits. If she is spiritually inclined, then prayer and meditation can give her comfort. She could also engage in self-pleasuring from time to time to deal with her own heightened sexual urges.

Marketers Embrace Rural India

By M H Ahssan

With over 70% population of India residing in rural hinterlands, capturing these markets is becoming one of the most lucrative options for all sectors.

In the wake of economic crisis, while the urban markets remain subdued due to cash crunch, rural economy has remained largely unaffected. A good harvest has further added to their respite. As a result, marketers are focused on small towns and villages with dedicatd workforce. Companies such as ICICI, Unilever, LG, Hero Honda, ITC, Future group are deploying fresh talent and existing employee base to tap the potential in the rural markets and creating a base in it.

“The rural India has cash-in hand and are not bound by EMIs or loans,” says Pradeep Kashyap, CEO, MART, a rural marketing firm. “With the majority of our population based in tier-3, tier-4 cities and villages, it is the right time to penetrate into rural markets and many companies are doing just that.” They are hiring graduates and B-school freshers to study these markets and then devise a strategy for them, he adds.

Initially preferred by FMCG and consumer durable sector, now telecom, IT, financial services, insurance and retail sectors have entered the arena. It is not always that the fresh recruits are from top B-schools or colleges, because they might not like to get placed in such areas. However, those recruited definitely like to work at grassroots and connect with the majority of population.

Even in the 80s, rural markets were considered a big priority by the consumer durables sector, but it was ignored due to unavailability of proper rural demographic data. Post liberalization, tapping the urban markets in tier 1 and tier 2 cities, were considered to be the prerogative.

Now with the easily accessible data on rural demographics and urban saturation, the tides have turned in the favour of rural economy. ITC for instance is engaging MBAs from IRMA, MANAGE, IIFT, SIBM and others similar management schools, who have a sound educational background and are able to understand the rural markets for managerial positions.

“Be it procurement, setting up frontline-demonstration plots, engaging farmers for the distribution of FMCG or jobs at Choupal Saagar stores, many of them are stationed in villages or small towns,” says S Sivakumar, CEO — Agri Businesses, ITC Limited. Unilever has a Project Shakti, which markets FMCG products to rural consumers and is planning to start working on a new project by hiring freshers, to connect well to them. Micro insurance as a concept is also appealing the insurance and financial services sector. Awareness has seeped into the bottom of social pyramid leading to concerns on human and livestock health. The idea of insurance is fast catching up. “We are planning to start hiring graduates to track the rural market and create a potential,” says Prerana Langa, vice president, strategy, ICICI foundation. “The project is still on role and we have tied up with an NGO for the same.”

Many companies are tying up with NGOs, who are active in rural sphere to help set up base in these areas. Mitra for instance, is one such NGO which is helping the corporates to map the potential of rural markets. Says Rahul Nainwal, co-founder, Mitra “The rural India is going to be the next big middle class and corporates wish to address this market. Although, this market had caught their attention, sometime back. But now is the right time to deploy people there and give back to the society.” The rural areas and smaller towns present vast opportunities for most companies, who are trying to come to terms with a relatively slower growth rate this fiscal.

Thwarting Terror Attacks in Reality

By M H Ahssan

What happened in Mumbai on November 26 will always remain etched in the minds of every Indian. The terrorists’ attack on iconic buildings and elsewhere has definitely raised the issue of security aspect of high-rise buildings, both commercial and residential, in our country. The gory images of those three days when India was put to ransom are terrible to say the least. With these attacks, those associated with the security aspects feel that it is time the security of buildings, irrespective of their nature, is reviewed thoroughly.

An expert on security matters and chairman of the SIS Security agency R K Sinha says that it is a wake up call for all of us.As we are living in potentially dangerous times, we have to give enough attention to security aspect of our buildings and big houses too.Sinha is of the opinion that buildings must have fullfledged security measures – CCTVs, doorframe and handheld metal detectors. “Many buildings have formed quick reaction teams (QRTs) on every floor. Every hour, there should be thorough checking of buildings, including toilets and dustbins, and random checking of visitors. The activities in car parking should be closely monitored. Naturally, such a tight security arrangement can make buildings far safer,” says Sinha.

SVP Group director Sunil Jindal says that as terrorists’ strikes are becoming extremely regular in our country, they can’t ignore the importance of security of buildings. “What happened in both Oberoi and Taj hotels is a clear-cut case of security lapse. And, such incidents can happen anywhere, unless we wake up – sooner rather than later,” Says Jindal.

Talking about the buildings they have constructed and the security measures they have taken for them, Jindal says: “We have made fool-proof arrangement in our buildings so that such incident can be avoided. We have put CCTV cameras on every floor, in order to monitor the movement within and outside the building,and also on its periphery. It also helps in alerting the security manager, in case of violation of preset norms. As this is not always adequate, we have installed office automation systems like the UPS, EPABX and the public address system in our buildings. The public address system is also used in case of fire, to facilitate faster evacuation.”

CMD of real estate advisory, Century 21 India, Dr Devender Gupta says that after the recent spate of bomb blasts in Delhi,those who look for either office space or flats, start enquiring very closely regarding the security arrangements in the buildings. “Earlier, people used to ask only about firefighting measures. But, queries on security aspects are a new trend. It was not there earlier,” says Gupta.

Experts say that as independent houses in posh areas are dwindling very fast and builders are making floors there, one cannot live there without guards. On any visit to a posh colony in the capital, one will find security guards dealing with visitors, from courier boy to plumbers, and other such people, apart from guarding their posts. They also park the car for you when you return from work at night and cannot find even an inch to park your costly car.

Till recently, security agencies used to supply trained guards only to diplomats, big-time businessmen and toplevel executives of companies.As terrorist activities see a spurt, security agencies also supply their trained guards to all those who deal in huge cash like jewellers and grain merchants. Guards provide security to them both at offices and their houses.

Pawanjit Ahluwalia of Premiershield Risk Management services says that as families started disintegrating and whole society became very money-minded, incidents of robbery and killings are on the rise.The worst hit are old people. Due to all these factors, rich and famous people have started engaging trained guards. Security agencies are also providing even those guards who can work like companions to their masters – playing chess, going out for a walk.Moreover, the guards can also drive and give an insulin injection as and when required. “But, we tell clients in no uncertain terms that they should not send these guards for their bank-related work like checking the balance position or bringing cash from there,” discloses Ahluwalia.

The last word came from Sanjeev Shrivastava of Assotech Group on the changed scenario. According to him, the world of realty will change according to needs of the times: “As threat to security is definitely there, not only from terrorists but also from enemies within,those who give 100% to security of their buildings, will score over others.”

No Recession Impact: Beauty Business Continues to Flourish

By Sheena Shafia

When it comes to beauty care, consumers are not shying away from loosening their purse strings. The spectre of slowdown does not seem to have touched this sector, with beauty services and products said to be clocking healthy growths.

This year, the Indian arm of leading global beauty care company, L’Oreal, is expected to report a growth of 30%, in line with last year’s growth. Said Dinesh Dayal, COO, L’Oreal India: “The beauty care industry is largely unaffected by any kind of slowdown in GDP, because people do not change their daily and weekly buying habits.’’

L’Oreal India uses multiple channels to market its range of beauty care products including colour cosmetics, grooming and personal care products. The company’s turnover has reached Rs 600 crore, with its Garnier range of products penetrating the small-town market, adding to the company’s largely urban-driven growth.

Competing hair colour brands from Godrej Consumer Products Ltd (GCPL)—Color Soft and Renew —too have witnessed ‘satisfactory’ growth, according to the company’s executive director & president, HK Press. According to industry estimates, the hair colour market is said to have grown by 27% in November 2008, compared to November 2007.

“It’s, what they call, the ‘lipstick effect’. The grooming industry grows despite other sectors facing a slowdown. In these times, people indulge in spending more on their grooming habits than maybe, on a car or a durable,’’ said Press. Among other cosmetics brands, Eraser and Lissome Cosmetics have clocked growths of 52% and 36%, respectively, during April-November 2008.

Service care brands in beauty care industry are also said to be unaffected by the slowdown. Take, for instance, Kaya, a service brand from Marico. It is witnessing a double-digit growth in the current quarter vis-a-vis last year.

According to Rakesh Pandey, CEO, Kaya Ltd: “In the last two months of the current quarter, we have seen greater business coming from existing customer base. There has been about 7-8% increase in repeat customers over last year.’’ Growth for Kaya is said to be uniform across the country.

In line with its expansion plans, Kaya has opened five new outlets in the last month.

No Recession Impact: Beauty Business Continues to Flourish

By Sheena Shafia

When it comes to beauty care, consumers are not shying away from loosening their purse strings. The spectre of slowdown does not seem to have touched this sector, with beauty services and products said to be clocking healthy growths.

This year, the Indian arm of leading global beauty care company, L’Oreal, is expected to report a growth of 30%, in line with last year’s growth. Said Dinesh Dayal, COO, L’Oreal India: “The beauty care industry is largely unaffected by any kind of slowdown in GDP, because people do not change their daily and weekly buying habits.’’

L’Oreal India uses multiple channels to market its range of beauty care products including colour cosmetics, grooming and personal care products. The company’s turnover has reached Rs 600 crore, with its Garnier range of products penetrating the small-town market, adding to the company’s largely urban-driven growth.

Competing hair colour brands from Godrej Consumer Products Ltd (GCPL)—Color Soft and Renew —too have witnessed ‘satisfactory’ growth, according to the company’s executive director & president, HK Press. According to industry estimates, the hair colour market is said to have grown by 27% in November 2008, compared to November 2007.

“It’s, what they call, the ‘lipstick effect’. The grooming industry grows despite other sectors facing a slowdown. In these times, people indulge in spending more on their grooming habits than maybe, on a car or a durable,’’ said Press. Among other cosmetics brands, Eraser and Lissome Cosmetics have clocked growths of 52% and 36%, respectively, during April-November 2008.

Service care brands in beauty care industry are also said to be unaffected by the slowdown. Take, for instance, Kaya, a service brand from Marico. It is witnessing a double-digit growth in the current quarter vis-a-vis last year.

According to Rakesh Pandey, CEO, Kaya Ltd: “In the last two months of the current quarter, we have seen greater business coming from existing customer base. There has been about 7-8% increase in repeat customers over last year.’’ Growth for Kaya is said to be uniform across the country.

In line with its expansion plans, Kaya has opened five new outlets in the last month.

Quality Does Matter?

Developers have realised that ensuring quality is the best means to boost sales, says Deepika Mital

Recession or no recession, home buyers today have become increasingly quality conscious and are ready to scout around endlessly till they find the projects which measure up to their expectations. Every consumer today is extremely aware that what goes into the construction in terms of materials and processes will reflect in the finish and longevity of the product. Mumbai’s developers are doing their bit to differentiate and improve their product as they realise that ensuring quality is the best selling proposition and any compromise on this count is fool-hardy.

Architect Bobby Mukherjee says, “Wherever I have taken a stand and enforced quality in design and construction,such projects have reaped big rewards.” He goes on to recount, “We did a project for a big developer in Thane, which became the most sought after complex in the area, it had really good design and quality club facilities, lighting, landscaping. When these are provided it is greatly appreciated by the end user and it helps in selling the product much faster. It was priced over the market rate by a few thousands, but still went on to sell very fast. Better pricing in the end product can be achieved thanks to better R&D and better sourcing of materials of better quality from across the world. This matters even more when it is a medium range of project, in terms of lighting fixtures,and other materials used in a planned manner which can achieve cost efficiencies.”

Mayur Shah of Akruti City says, “The ISO certification basically indicates that whatever we promise, we deliver. Quality checks are conducted at all our sites. R&D is conducted at the head office, but in terms of cost – bringing down the construction costs without compromising on quality. We test different materials to check if the price points can be reduced by using cheaper materials, thus reducing overall costs. We don’t have too much of choice in terms of the materials – those are the same for everybody. Quality also lies in the simple things like a perfect slab, good drainage slopes – after all the building cannot be re done at any point after it is made. We also have our own institute where we send our engineers and workers for regular updation for two or three-day programmes.

Explains Bobby Mukherjee, the stress should be laid at the planning stage itself when all the specialised consultants like the architect, interior designer, landscape architect and lighting and service consultant should work together. Only if they are brought on board at an early stage can one realise international standards of design. It is the mind set and knowledge of the subject that is very important to fulfil the quality criteria and achieving good sales. The savings via this can translate into a better sale price, especially in this market. For instance, in the project Kalpataru Horizon, the professionalism with which the project was executed to the last detail helped in getting it very good prices and making it the most sought after address in South Mumbai.

In ordinary middle income projects one needs to focus on the quality of the compound wall, flooring, paving of the driveway with tiles rather than cement and concrete, lighting, greenery, a sophisticated entrance lobby, good elevators, doors, bathroom fittings. Cheap fittings are counter productive. It is better to reduce specifications rather than to compromise on quality.

Speaking to Kaizad Hateria, GM, sales, marketing and customer relations of Keystone Group is an eye opener. He says, “We have a system of conducting spot checks through our mobile vans which can be seen at one or other of our construction sites. We employ 12 to 14 ‘concrete boys’ on each site, whose only job is to check the quality of the concrete, which is vital to the construction. We also have a quality manual for customers,which explains the 300+ quality checks that our projects undergo. Internally to keep up with trends and best practices, our managers, architects and engineers are updated through exposure to foreign exhibitions, manuals and seminars. Our monthly review meetings are specifically meant to address any lapses that might occur at the initial stages as this business is an ongoing process.”

Surendra Hiranandani,MD,Hiranandani Constructions says, “Quality assurance is fundamental to our business. We were the first to introduce voluntary quality checks and better materials. We introduced the concept of copper plumbing in 1992, much before it was required. We also introduced recycling of water in the late 80’s and the use of fly ash and high performance concrete in residential and commercial buildings, much before the BIS laid it down in 2000.

“More than 50% of the management’s time and effort is directed toward training and R&D, it has always been a focus area for Hiranandani Group.”

Answering queries on whether this pushes up the costs for the end user, he says, “Cost is always an issue, we would like to balance out the costs and call it value for money. Lifecycle costs and a low maintenance regime balance out this whole expenditure, which is a definite advantage to the end user.We have always focused on design, materials, planning and construction – all the crucial stages in the sector.”

Having worked on projects across the country, architect Bobby Mukherjee says, “Quality in Mumbai is given a special emphasis and effort. Interestingly, second and third generation developers are more quality conscious than those who are first generation – this also I have experienced across the country. R & D mainly needs to be done to improve the quality of the product, be it commercial, retail, residential or hospitality. Good product, good quality design, once both these parameters are satisfied you have the recipe for success. Whether it is Thane or the heart of Mumbai city, these will be the hottest properties.”

Boon for Small Cities

With PSU banks cutting home loan rate, all those planning to buy a house in small towns will benefit, although those in metro cities have been left high and dry, says Rubina Shaikh

Even though public sector banks led by State Bank of India announced a reduction in interest rates on new home loans, the dejected faces of many among the world of realty tells its own story. On the flip side, some argue, and convincingly, that as India does not live in big metros and other big cities, the latest move would benefit those who live in Tier II and Tier III cities who plan to buy homes there. Both have some really solid arguments.

As for those who are not happy with the rate cuts, they are of the opinion that the efforts of banks to revive the realty sector by reduction in home loan rates would not make any worthwhile change in either Delhi or NCR region. They argue that prices of houses from the known builders are in the range of Rs 30 lakh and above. Naturally, those who are looking for houses need more than Rs 20 lakh in order to buy that dream house. For them, the banks have not done any great service. They also point out, rightly, that houses in the price range of Rs 5 lakh to Rs 20 lakh are few and far between in metros and important cities of NCR like Gurgaon, Faridabad, Ghaziabad and Noida. The demand-supply mismatch in the ‘affordable housing category’ defined as homes costing not more than Rs 25 lakh, leaves little to celebrate for people living in Indian’s key metros and nearby towns. Will the recent cut in bank rates make any worthwhile impact on the sagging spirits of realty sector? P K Jain, executive vice president of PNB housing finance,says that it is true that reduction in home loan rates would not benefit all those who are planning to buy homes in big cities. He, however, says that there is an India, which lives outside metros and other big cities.

“The new rates would go a long way in helping all those home seekers who live in cities like Meerut, Amritsar, Karnal, Rohtak and Patna. There are many developers building houses in these places for those who can afford a house worth Rs 20 to Rs 25 lakh,” he says.

Another banker says that apart from reduced loan rates, homebuyers have other reasons to cheer as well. As part of the total package, banks will provide free life insurance cover and waive processing and prepayment charges.These freebies should be availed.

However, all these arguments hardly impress Sunil Jindal of SVP group, which has many residential and commercial projects in the NCR. According to Jindal, the low interest rate that PSUs have declared for the loans of Rs 5 lakh to Rs 20 lakh means nothing for homebuyers. “We all know that rates in Delhi and NCR towns are much higher. And if anyone wants to buy a house he or she should have a lot more money than that. For a decent two-bedroom accommodation, a homebuyer might need to avail a loan above Rs 20 lakh, and that too when the prices of real estate have come down. If Government actually wants to address the real estate problem than the banks have to raise the cap to Rs 35 lakh.”

“The limit of Rs 20 lakh is not enough and it must be revived to at least Rs 30 lakh. With skyrocketing land prices in all the key cities of the country, I don’t think many people will rush to buy their homes. But, at this juncture anything is welcome for the realty sector,” said Sanjeev Shrivastava, MD of Assotech.

Pumping Adrenaline

Government is considering another round of home loan package targeting middle class homebuyers in large cities, which could add momentum to the realty sector, says Prabhakar Sinha

There is good news for homebuyers. Government is considering another round of home loan package to make purchase of a house within the reach of middle class end users. This time, it is learnt, the package will include both the monetary as well as fiscal incentives to make home loan cheap.

Recently, public sector banks announced a home loan sweetener for the homebuyers.But,it was found the package was far short of expectations of both the public and developers. According to the package, home loan up to Rs 5 lakh will attract an interest rate of 8.5%. Loan beyond Rs 5 lakh and up to Rs 20 lakh will be available from public sector banks at 9.25%. That means one can avail the concessional rate home loan if one buys a property of Rs 25 lakh. Out of this, a person can arrange Rs 5 lakh from internal resources and the rest Rs 20 lakh may be borrowed from banks at a concessional rate.

But, there is hardly any house available for up to Rs 25 lakh in large cities, which are badly affected because of the slowdown. Builders and developers feel the scheme would not fetch the desired result in fighting the slowdown.

The country is facing one of the worst industrial slowdowns in the last 15 years. If effective measures are not taken soon, it is felt in the power corridors that the economy might get affected badly. To avoid such a situation, government is planning to adopt concerted strategies to arrest the slowdown.

The good news for real estate sector is the government feels it can play a vital role in turning around the sentiment. A senior officer said there is a huge shortage in housing sector. A measure to revive the housing sector will not only lead to creating assets but also help in reviving a large number of related sectors.

It is felt that making funds cheaper for end users could play an important role in this regard. Therefore,it is learnt the government is planning to increase the present ceiling of Rs 20 lakh for the concessional rate to Rs 30 lakh.This will meet the requirements of a large number of homebuyers in the cities of National Capital Region, in Mumbai, Bangalore, Pune, Chennai and Hyderabad.If the ceiling is raised to Rs 30 lakh, one can buy a house up to Rs 35 lakh with the cheap loan.

Besides, it is learnt the government is also planning to increase the tax rebate on payment of interest on home loan. At present, an interest amount up to Rs 1.50 lakh paid on the home loan taken to buy a house for self-use is deducted from the taxable income. The ceiling is likely to be increased to Rs 2 lakh.

This will help reduce the cost of fund further. At present, if one takes a loan of Rs 30 lakh at the concessional rate of 9.25%, the interest payment in the first year comes to around Rs 2,77,500. Out of this, you can take a tax benefit on Rs 1.50 lakh only, which will be deducted from your income, enabling you to save a tax outgo of Rs 45,000. Which means, net interest one pays in the first year is only Rs 2,32,500.This brings down one’s net interest rate on loan to 7.75% from 9.25%.

But, if the tax benefit is increased to Rs 2,00,000 from Rs 1,50,000, the net interest outgo will be reduced by Rs 60,000 to Rs 2,17,500 on a loan of Rs 30 lakh at 9.25%. That means, the net interest rate on one’s home loan comes to 7.25%. If the interest rate on home loan comes down to 8%, the net effective interest rate will come down to 6% if the deduction against the interest amount paid on home loan is increased to Rs 2 lakh.

Besides this, other measures that government is actively considering are the increase in the limit on tax-exempt amount from rental income from existing 30% to 50%. In a meeting with the top government officials, developers demanded an increase in the proportion of taxexempt amount as an incentive for large net worth individuals to invest in the housing sector. This will also bring in a large number of houses in to the rental market, which will go a long way in solving the housing problem in the cities.

Saving Capital Gains Tax

By M H Ahssan

How you can avoid paying capital gains tax

There are some provisions in the Income Tax Act that make it possible for you to reduce your capital gains tax liability.The Act contains provisions regarding tax of capital gains arising out of transfer of a residential property. Capital gains tax is leviable on sale or transfer of a house.What constitutes a sale and transfer has been specified under the Income Tax Act.

Capital gains tax is computed on the indexed cost of the asset purchased, which is deducted from the sale amount received by the assessee. The indexed cost is computed according to the indexation rates notified by the Income Tax Department for each year. The income from the house should be chargeable to tax under the head ‘Income from House Property’. Other immovable properties, although owned by an individual, are not eligible for this exemption. The capital gains should arise from the transfer of a longterm capital asset. The house must be held for a period of more than 36 months before the date of sale or transfer.The house may be self-occupied or rented out.

In order to avoid the capital gains tax, an assessee can either purchase a house within a period of two years after the date on which the transfer took place, construct a house within a period of three years after the date of transfer, or should have purchased a house one year before date of transfer.In these cases,instead of the capital gains being charged to income tax as income of the previous year in which the transfer took place, will be dealt with in accordance with two provisions.

One, in case the capital gains is more than the cost of the house purchased or constructed, the difference will be charged as income of the previous year. In case the new house is sold within a period of three years of its purchase or construction, for the purpose of computing capital gains in respect of the new asset, the cost will be zero.

Two, in case the capital gains is equal to or less than the cost of the new asset, it is not charged to tax at all. In case the new house is sold within a period of three years of its purchase or construction, for the purpose of computing capital gains in respect of the new asset, the cost will be reduced by the amount of the capital gains.

The part of capital gains not appropriated by the assessee towards the purchase of a new house made within one year before the date of transfer of the original asset, or which is not used by him for purchase or construction of a new house before the date of furnishing the returns of income, should be deposited by him in specified bank. The amount should be deposited before the due date for filing income tax returns.

The proof of this deposit should be attached with the income tax return. The amount used by the assessee to purchase or construct a new house together with the amount deposited will be deemed to be the cost of the new house. In case the amount deposited is not used in full for the purchase or construction of the new house within the period specified, the unused amount is charged as income of the previous year in which the period of three years from the date of the transfer of the original house expires.

The assessee will be entitled to withdraw the amount in accordance with the provisions of the scheme.This benefit is available only for individuals and Hindu Undivided Families.

Capital Gains on Transfer of Property

Ashish Gupta explains what capital gains is and how it becomes taxable

Any gain or loss arising on transfer of property is subject to the tax provisions under the head ‘capital gains’. Under the provisions of Section 2 (14) of the Income Tax Act 1961, ‘capital asset’ means property of any kind held by an assessee.It does not include certain items like stock-in-trade, consumables or raw materials for business, and personal effects and certain agricultural categories of land. Any real estate, including a flat, building, site, farm house, and commercial property is subject to capital gains on sale or transfer.

It is not only sale of property which triggers off capital gains. Even certain specified forms of transfers are deemed as sale, and any gain is subject to capital gains tax.

Transfer of property means a person conveying property, in the present or future,to one or more other persons, or to himself. Any income arising on transfer of a capital asset is subject to capital gains tax. Transfer is deemed to have taken place on the date on which possession of the property has been given. In case payment is received but the transfer has not been effected, it is not treated as a sale transaction.

Under the income tax laws, capital assets may be either long-term capital assets or sshort-term capital assets. In case a property is held for more than 36 months, the capital gain arising from it is treated as long-term capital gains. In case the property is transferred or sold after holding it for less than 36 months, the income would be treated as short-term capital gains (and vice versa for the capital loss). This is different from the provisions applicable to securities – equity shares or mutual fund units, where the qualifying period for longterm capital gains is anything over 12 months.

The period for which the capital asset was held determines its taxability – whether it is a long-term capital asset or a short-term capital asset and accordingly whether the assessee has incurred a long-term or short-term capital gain.

The amount of capital gains is arrived at by applying the concept of cost inflation index (CII). The index is published by the IT Department. The present worth of a property is arrived at by applying the CII to the cost of the property and to any improvements made. This is deducted from the sale amount received by the transferor, to arrive at the capital gains. The longterm capital gains are charged to tax at the rate of 20 percent.

Capital loss, whether short-term or long-term, can be carried forward and set off for the next eight years. After eight years, it get lapsed and cannot be carried forward.

An assessee may plan tax and save it under Section 54EC in respect of long-term capital gains by investing in a residential property or in capital gains bonds. It needs to be ensured that the conditions prescribed under the section are strictly complied with, or else the amount claimed for exemption becomes subject to tax.

Feel Indian, Be Indian

By M H Ahssan

Only Indian citizens can play for the country, says the government

The central government’s sports ministry has proposed a policy that will no longer allow Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs) to represent India in sporting events, as they are technically ‘foreign citizens’. The argument proffered is that allowing sportspersons of Indian origin to wear Indian colours even after they acquire the citizenship of another country would be tantamount to depriving Indian citizens of the opportunity to play for their country. The decision will leave currently registered players in the lurch, as their future would be uncertain. It will have serious implications for India’s tennis team, as Prakash Amritraj, Sunitha Rao and the Uberoi sisters, Shikha and Neha, will all become ineligible to play for it.

These columns have consistently promoted the idea of an elective identity that will help us do away with restrictions that curb talent and aspirations. The government, too, has gone to the extent of setting up a ministry of overseas Indian affairs to felicitate and honour members of the Indian diaspora. The ministry organises the Pravasi Bharatiya Divas event every year that is a huge draw for people of Indian origin from all over the world. When we value their services and make so much effort to appreciate what they do, why the stepmotherly treatment when it comes to their wishing to represent the country of their origin?

According to official estimates released in 2001, more than 20 million Indians live overseas in addition to the six millionplus who retain their Indian citizenship though they live abroad. Indian sportspersons who have had the benefit of getting trained by foreign experts and who feel strongly enough for their country of origin to wear its colours in competition should be allowed to do so. Chances are they would walk that extra mile to prove their cultural allegiance and so work harder to tot up the number of Indians on the winners’ list. The sports ministry should make its criteria as flexible as possible and leave it to councils that govern events like the Olympics or the Asian Games to take decisions on the eligibility of participants.

Only citizens should represent India
The sports ministry is mulling a proposal to disallow PIOs and OCIs from representing India at international sporting events as competitors. The proposal has been met with outrage, perhaps owing to the fact that India’s ability to compete in anything but cricket would be severely reduced if such a rule were applied. Several athletes representing India in the international sporting arena are actually PIOs or OCIs. But that is not enough reason to keep letting non-Indians represent India.

Why, in international sport, do sportspeople have to identify themselves as Indian or American or British, even in non-team sports? Because success in sport is a tribute to one’s country, its facilities and its culture. To cheat on that account is to demean the sport, too. And identifying one as belonging to a nation one might never have seen, let alone trained in is cheating. It’s also unfair to the nation that the sportsperson is a citizen of. Having made use of their home country’s facilities to hone their skills, why do athletes want to pledge allegiance to India? It is as dishonest as Maria Sharapova playing tennis for Russia. She is more American than Russian, having learnt all her tricks in Florida.

We have no need for borrowed heroes in this country. If a billion-plus people cannot produce world-beaters in sports, then we must learn to live with it. The honour of representing the country shouldn’t be given to someone who can’t even be bothered to hold an Indian passport.If an athlete is willing to become an Indian citizen, by all means, they should represent the country. Indeed, the nation will be proud to be represented by them. But they can’t play on both sides. There is more to being Indian than just the colour of one’s skin. If a second or third generation sporting genius feels truly Indian, she can initiate citizenship proceedings. Otherwise, they’re just making a mockery of the idea of nationhood. To represent India at a sporting event is a matter of great prestige and that honour should be given to those who are Indian in every way.

Feel Indian, Be Indian

By M H Ahssan

Only Indian citizens can play for the country, says the government

The central government’s sports ministry has proposed a policy that will no longer allow Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs) to represent India in sporting events, as they are technically ‘foreign citizens’. The argument proffered is that allowing sportspersons of Indian origin to wear Indian colours even after they acquire the citizenship of another country would be tantamount to depriving Indian citizens of the opportunity to play for their country. The decision will leave currently registered players in the lurch, as their future would be uncertain. It will have serious implications for India’s tennis team, as Prakash Amritraj, Sunitha Rao and the Uberoi sisters, Shikha and Neha, will all become ineligible to play for it.

These columns have consistently promoted the idea of an elective identity that will help us do away with restrictions that curb talent and aspirations. The government, too, has gone to the extent of setting up a ministry of overseas Indian affairs to felicitate and honour members of the Indian diaspora. The ministry organises the Pravasi Bharatiya Divas event every year that is a huge draw for people of Indian origin from all over the world. When we value their services and make so much effort to appreciate what they do, why the stepmotherly treatment when it comes to their wishing to represent the country of their origin?

According to official estimates released in 2001, more than 20 million Indians live overseas in addition to the six millionplus who retain their Indian citizenship though they live abroad. Indian sportspersons who have had the benefit of getting trained by foreign experts and who feel strongly enough for their country of origin to wear its colours in competition should be allowed to do so. Chances are they would walk that extra mile to prove their cultural allegiance and so work harder to tot up the number of Indians on the winners’ list. The sports ministry should make its criteria as flexible as possible and leave it to councils that govern events like the Olympics or the Asian Games to take decisions on the eligibility of participants.

Only citizens should represent India
The sports ministry is mulling a proposal to disallow PIOs and OCIs from representing India at international sporting events as competitors. The proposal has been met with outrage, perhaps owing to the fact that India’s ability to compete in anything but cricket would be severely reduced if such a rule were applied. Several athletes representing India in the international sporting arena are actually PIOs or OCIs. But that is not enough reason to keep letting non-Indians represent India.

Why, in international sport, do sportspeople have to identify themselves as Indian or American or British, even in non-team sports? Because success in sport is a tribute to one’s country, its facilities and its culture. To cheat on that account is to demean the sport, too. And identifying one as belonging to a nation one might never have seen, let alone trained in is cheating. It’s also unfair to the nation that the sportsperson is a citizen of. Having made use of their home country’s facilities to hone their skills, why do athletes want to pledge allegiance to India? It is as dishonest as Maria Sharapova playing tennis for Russia. She is more American than Russian, having learnt all her tricks in Florida.

We have no need for borrowed heroes in this country. If a billion-plus people cannot produce world-beaters in sports, then we must learn to live with it. The honour of representing the country shouldn’t be given to someone who can’t even be bothered to hold an Indian passport.If an athlete is willing to become an Indian citizen, by all means, they should represent the country. Indeed, the nation will be proud to be represented by them. But they can’t play on both sides. There is more to being Indian than just the colour of one’s skin. If a second or third generation sporting genius feels truly Indian, she can initiate citizenship proceedings. Otherwise, they’re just making a mockery of the idea of nationhood. To represent India at a sporting event is a matter of great prestige and that honour should be given to those who are Indian in every way.

It’s Just the Beginning

While the government’s stimulus package for the housing industry is welcome, more initiatives are required, says Archana Sinha

Home buyers have something to smile about as middle-income groups looking for smaller homes can now buy without burning a hole in their pockets. All public sector banks will now offer loans at 8.5 to 9.5 per cent for homes costing between Rs 5 lakh to Rs 20 lakh.According to the banks this will help mobilise the housing industry, as nearly 80 per cent of their portfolio consists of this segment.

Nayan Shah, managing director, Mayfair says, “Home loans have come back to 2007 rates and will give a big fillip to buyers in the middle class segments who were holding back.” While industry experts have hailed this as a positive step they also feel that more is required to be done. Sanjay Verma, executive managing director, South Asia and Australia, Cushman and Wakefield Says, “The decision to rationalise home loan rates for the priority sector by public sector banks is a positive move and will trigger demand. The concern of lack of credit for developers remains despite the announcement and till the time a feasible solution is found, it may cause inflationary pressure if we end up with a demand-supply mismatch.”

Harsh Roongta, chairman, Apna Loan also echoes similar sentiments when he says, “This will boost the housing segment more towards the outskirts, but not in the city or even in the western suburbs, where land prices are high and developers have built at exorbitant prices. Of course in tier 2 and tier 3 cities this will give a small fillip. One needs to remember that in the bigger cities there is no supply in this category, so there is no scope to buy.”

Renu Sud Karnad, joint managing director, HDFC Ltd, feels that while interest rates are important, “Higher interest rate is not a big determinant in the buying decision of the end user because housing is a real need and during a tenure of 15- 20 years the interest rates will continue to vary as per market conditions. Interest rates although very important, only affects his affordability that is, his capacity to borrow in terms of the absolute loan amount.So cutting of rates will help. But for the end user the price of the property matters more as once he decides to buy at a particular price, the price stays forever. He is not going to sell if tomorrow the prices rise as his need for a roof is not going disappear.”

Most feel that in metros where the capital values are high, this move will only help recently announced affordable housing projects or development for the economically weaker sections.

Kumar Gera, chairman, Confederation of Real Estate Developers Association of India, says, “Flats costing between Rs 5- 20 lakh would be available way beyond municipal limits and commuting hassles and resultant costs would mean people will be hesitant .”

He adds, “I think the government has made moves to stimulate the market, but it should have spread it across segments. For example, for metro cities they should have come out with schemes for homes up to Rs 40 lakh, which would have really seen activity even among buyers from the corporate sector, especially now when some builders are also softening their prices to some extent. This would have enthused the entire industry, across segments, seeing more production and consumption of cement, steel, paint and other collaterals,in turn generating employment and boosting the economy.”

The other deterrent is the deadline of June 30, 2009. Asks Roongta, “Is this meant to rush the buyer? He feels the buyer will also want to factor in other considerations, like quality of construction and other amenities. “Moreover it also creates a suspicion, whether the loans will go up later, whether the government’s intention is right,” he says.

On the other hand, it is not realistic for developers either, says Gera. “Even if they redesign their new projects they cannot complete them before 18 months. That much time will be required for land acquisition, clearance and finishing one phase of construction,” he adds.

What is required of the government is to increase liquidity, to lend to banks at lower rates so that there is money in the market, feel experts. The government also has to make land available at lower price.

Kumar Gera says, “This is a welcome move, but a very meek step. Bolder steps are required. There is a reserve of more than 250 billion dollars of foreign exchange. If one compares our spending with Japan and China, where they are operating under similar economic condition,ours is just a speck.Being too cautious will not help.”

Says Abhinandan Lodha of Lodha group, “More incentives are of course required from the government but developers should bear in mind that buyers are sensitive to pricing and have to launch their projects accordingly.Housing from Rs 35-45 lakh should be available in good locations.”

Old Age Blues: With A Little Help

By Dipankar Gupta

The old need not be at the mercy of their families

Ageing Bollywood stars can be spotted from a mile. Their hair and shoes are always polished jet black. Their face is faintly recognisable, the feet shuffling, but the mop on top is luxuriantly dyed. Years of on-screen make-up have convinced them that what you get is what they see. We may ridicule this thought, but life often imitates artists, if not art.

After a bunch of grey hairs, and years of denial, the elderly in India have realised that it does not pay to sag with age. Nor should they will their sons their worldly possessions while they are still around. While till now they planned their retirement lives on their own, they have at last some state support. On February 28, 2008, the Maintenance and Welfare of Parents and Senior Citizens Bill was passed by the Parliament with ease. Now spoilt sons, fattened by inheritance, can go to jail for three months for neglecting their parents. The existing Code of Criminal Procedure (1973) took too long to implement, and where was all that time?

The myth of the joint family was kept alive for generations out of sheer wishful thinking. This was an ideal many of us aspired to, but most found it too demanding. It worked as long as the property was run by the patriarch and could not be alienated from the family. This was usually the case with land and commercial establishments. When the joint family held it was either for economic considerations, or because sons were more worthless than their fathers. It is surprising how many idle kids thrive under the family roof.

It is a locked-on certainty that nobody wants to die in the trenches. A nest’s egg, a rocking chair, and a long look at the sunset are what old age dreams are made of. But now times are changing. The unit of earning is no longer the family. Sons work in different occupations, get paid differently, and have different lifestyles and goals. Incidentally, this is not just an urban phenomenon. There are many poor cottages in rural India where old couples are left to their own devices. Their sons are in Mumbai, Surat, Panipat, or in some other distant address.

It might have looked gracious once to let your boys have their share while you were still around. But as boys will be boys, they might just as easily take you down in the name of taking over. But so many parents still insist on making the same mistake. Like film stars of yesteryear, they too keep wondering
where all that adulation has gone? Screaming fans and doting sons can be equally fickle, but neither stars nor parents are ever prepared to fully accept this fact. One minute it is roses, roses all the way, and in the next they are dreaming of flowers on your bier.

But actors don’t give up as easily as parents tend to do. Years of grease paint must have seeped into their blood. They put on a brave face, slick their hair and get on with the show as best as they can. The elderly too must learn not to switch off once prime time is over. Instead of brooding over how the brood went wrong; or searching the family album for childhood telltale signs, it is wise to think of the future. Who knows, perhaps the best is yet to come. And when it does, the greedy brat pack in the kitchen won’t find a crumb to pick off the floor.

Even parliamentarians, who can be notoriously insensitive, have recognised with near unanimity, that the joint family is more or less a thing of the past. The abovementioned Bill makes this rueful admission in the preamble itself. The law-makers have also taken into account that mothers are treated worst of all. They have no assets of any kind. At least, the father’s career may have given him some special advisory skills, but the mother was always in the kitchen. Once poetry was written on her fetching dependence; but today it is just an irritation. Neither the slogan of the joint family, nor avowals of mother love, has stood the test of time.

Smart parenting is when we see the writing on the wall before we do the writing on the will. It is just as well that the Maintenance and Welfare of Parents and Senior Citizens Bill also takes note of providing old-age homes and better medical care for the aged. In India, 80 per cent of all medical expenditure is out of one’s pocket. We occupy the first place in the world with this shameful statistic. In every other country the state contributes a greater share in health-care costs. This is why this Bill must pay attention to medical support, else it will be as toothless as the people it hopes to protect.

For now it is a good beginning. The thought that greedy sons can be put away for three months must cheer old parents, and scare their brats. But true deliverance for the aged can only come with state support for old-age homes and medical care. Till then family tussles will continue, though this Bill will delay the knockout punch. But for long-term support the elderly need the state to be in their corner, and with more than just the towel to throw in.

Investment Potential for NRIs

M H Ahssan outlines some options for NRIs in the city’s realty sector.

At a time when the global financial crisis is impacting the real estate sector across the globe, NRIs are invariably in a dilemma about where to put their money in real estate. The local accommodation laws in countries like Dubai have compelled thousands of expatriate Indians to send their families back home due to soaring housing costs. This is why it makes sense for expatriate Indians abroad to invest in Indian real estate to meet any contingencies.

Barring Dubai, West Asia does not encourage expatriate investments in housing. Anyway, not all NRIs can afford to invest in local housing. There are different kinds of NRI investors looking for investments in real estate back home. What is ideal for one group may or may not fit in to the investment category for others. However, a cursory glance at the options will enable them to take a pragmatic approach to the investment exercise.

The government regulations prohibit investments in categories like agricultural land, farmland/farmhouse and plantation properties. Those who have inherited such property from relatives can retain them. But to dispose them off, one needs to follow certain ground rules laid down by the authorities.

For NRI end users who are planning to eventually return home, investments in residential property would be the best option. As NRIs have been accustomed to living in places with good infrastructure facilities, investments in housing should be in cities which have educational, health and reemployment opportunities. NRIs could plan well to invest in greenfield projects which will reduce upfront payment liability.Home loans are available and banks have branched out to several countries to extend facilities to NRIs.

With FDI in real estate, a number of integrated townships will dot the skyline in major cities. The entry of global realtors will herald a new era in housing with the introduction of global standards, integrating facilities like schools, mall, multiplex, office etc within the same complex. Returning NRIs who are looking for lifestyle projects should consider investments in such options. Investments in developed plots is yet another option for those seeking medium to long term options. Land value appreciates much faster than apartments in Indian cities. Those NRIs who are looking for investments purely as an investment option should consider peripheral or suburban areas where potential for land price appreciation is higher.

For high net worth NRIs looking for periodical rental income, city properties would be the best option due to the demand for such units from varied sections of people including corporates, MNCs and serviced apartment operators. Fiscal benefits are available by way of interest rate concessions upto Rs 1.50 lakh and principal repayment upto Rs 1 lakh if home loans are availed to invest in immovable property. Wealth tax benefit is available if the residential property is let-out for a minimum period of 300 days in a calendar year.

Commercial property is yet another option but it is ideal for those in the high income bracket and who can invest substantially in either office or retail units. Though current rental levels are dipping in view of the spurt in supply levels in select areas across the city, investments in green buildings or with better amenities would enable investors to obtain competitive rentals over a period of time. Commercial properties are completely exempt from wealth tax as the threshold limit for wealth tax is still retained at Rs 15 lakhs.

Repatriation of investments in property is allowed upto two residential units after a lock-in-period of three years to the extent of original foreign exchange remitted through banking channels. NRIs can invest in real estate development both on repatriation and non-repatriation basis. A number of joint development options are now available where landlords are keen to forge strategic alliances.

New Mantra: Sex on Leave

By M H Ahssan

Stress and hectic lifestyle can impact one’s libido. If ‘Honey, I have a headache!’ has become your man’s line of late, read on HNN mantras to cope.

Most women take sexual rejection very personally, especially if their sense of selfworth is linked to love and acceptance from their partner. When a sexual advance by a woman is turned down by her man, she views herself as being an inadequate lover, spouse and even a person. She believes that her ‘lovability’ is defined by the affection she receives or does not receive from her partner.

MELTDOWN IN BED
The current trend of sexless marriages, due to lowered self-esteem of men facing a financial crisis and resultant stress, is leading to varied reactions among women. Some working women who are aware of the global crisis, show greater empathy and do not blame their partner for the financial situation, or the subsequent lack of interest in sex. Instead, they assume the role of a sounding board, and also attempt to motivate them to be optimistic and deal with the crisis ‘together’.

On the other hand, some women add to their husbands’ woes by being confrontational, demanding, aggressive and blaming them for the loss of both, ‘money and sex’ and launch a direct attack on their partner’s manhood. This only makes matters worse. The woman, who has shoved a guilt-trip down her husband’s throat, can be rest assured that the financial crises may end, but her sex life will never improve.

Women need to understand that ‘sex is not between the legs but between the ears’, and therefore also understand that a healthy and relaxed mind is important for mutually satisfying physical intimacy.

SELF-WORTH FACTOR
Some women get confused and anxious with the sudden withdrawal of sex, get depressed and might suspect that their husband is having an extra-marital affair or satisfying his sexual urges in other ways.

In some cases, over-consumption of alcohol can be a problem, especially with regular drinkers who try to deal with stress via alcohol. This takes a huge toll on the relationship and might end up whining about problems and doesn’t wish to address the crisis in a logical manner.

In such a condition, marriage counselling helps. Also, stress counselling helps the man deal with the financial and sexual lull in life.

A man can be taught to reach out and be sensitive to his wife’s needs, and the woman can be educated to not make it all about herself, be ‘emotionally available’ and not use the husband’s vulnerability against him ever. The couple must remember that this is a temporary but crucial phase.

Moreover, the ‘emotional intimacy’ during this crisis can strengthen their relationship, and there can be some surprising moments of physical intimacy, emerging from such emotional bonding.

COPING WITH IT
A wife could use these troubled times to build the emotional intimacy and companionship with her husband and engage him in small joys in an unpressurising manner, such as sharing the child’s achievement in school. She could engage in non-sexual touching like offering a back rub or head massage to bond with him. She shouldn’t mind her husband wanting to spend time with his colleagues who enlighten him on ways to deal with the problem, not make any unreasonable demands. Tell him that both of you will get through it ‘together’, and that you believe in his abilities. Ensure that he doesn’t blame himself. Assure him that everyone is in the same boat. Help him accept uncertainties and forgive himself for human errors, if any. She can help de-stigmatise seeking professional help. If he is depressed, accompany him to a counsellor. She could identify what brings him joy. Small things such as cooking his favourite meal, inviting his best friend over for dinner can help him. At times, when he is relaxed, she could take the lead, touch him sensually, with no pressure to perform, and see if he wants to take it forward. The woman, of course, has her own emotional and physical needs. She could channelise her libido in work and children, or sublimate her sexual urges in creative pursuits. If she is spiritually inclined, then prayer and meditation can give her comfort. She could also engage in self-pleasuring from time to time to deal with her own heightened sexual urges.

New Mantra: Sex on Leave

By M H Ahssan

Stress and hectic lifestyle can impact one’s libido. If ‘Honey, I have a headache!’ has become your man’s line of late, read on HNN mantras to cope.

Most women take sexual rejection very personally, especially if their sense of selfworth is linked to love and acceptance from their partner. When a sexual advance by a woman is turned down by her man, she views herself as being an inadequate lover, spouse and even a person. She believes that her ‘lovability’ is defined by the affection she receives or does not receive from her partner.

MELTDOWN IN BED
The current trend of sexless marriages, due to lowered self-esteem of men facing a financial crisis and resultant stress, is leading to varied reactions among women. Some working women who are aware of the global crisis, show greater empathy and do not blame their partner for the financial situation, or the subsequent lack of interest in sex. Instead, they assume the role of a sounding board, and also attempt to motivate them to be optimistic and deal with the crisis ‘together’.

On the other hand, some women add to their husbands’ woes by being confrontational, demanding, aggressive and blaming them for the loss of both, ‘money and sex’ and launch a direct attack on their partner’s manhood. This only makes matters worse. The woman, who has shoved a guilt-trip down her husband’s throat, can be rest assured that the financial crises may end, but her sex life will never improve.

Women need to understand that ‘sex is not between the legs but between the ears’, and therefore also understand that a healthy and relaxed mind is important for mutually satisfying physical intimacy.

SELF-WORTH FACTOR
Some women get confused and anxious with the sudden withdrawal of sex, get depressed and might suspect that their husband is having an extra-marital affair or satisfying his sexual urges in other ways.

In some cases, over-consumption of alcohol can be a problem, especially with regular drinkers who try to deal with stress via alcohol. This takes a huge toll on the relationship and might end up whining about problems and doesn’t wish to address the crisis in a logical manner.

In such a condition, marriage counselling helps. Also, stress counselling helps the man deal with the financial and sexual lull in life.

A man can be taught to reach out and be sensitive to his wife’s needs, and the woman can be educated to not make it all about herself, be ‘emotionally available’ and not use the husband’s vulnerability against him ever. The couple must remember that this is a temporary but crucial phase.

Moreover, the ‘emotional intimacy’ during this crisis can strengthen their relationship, and there can be some surprising moments of physical intimacy, emerging from such emotional bonding.

COPING WITH IT
A wife could use these troubled times to build the emotional intimacy and companionship with her husband and engage him in small joys in an unpressurising manner, such as sharing the child’s achievement in school. She could engage in non-sexual touching like offering a back rub or head massage to bond with him. She shouldn’t mind her husband wanting to spend time with his colleagues who enlighten him on ways to deal with the problem, not make any unreasonable demands. Tell him that both of you will get through it ‘together’, and that you believe in his abilities. Ensure that he doesn’t blame himself. Assure him that everyone is in the same boat. Help him accept uncertainties and forgive himself for human errors, if any. She can help de-stigmatise seeking professional help. If he is depressed, accompany him to a counsellor. She could identify what brings him joy. Small things such as cooking his favourite meal, inviting his best friend over for dinner can help him. At times, when he is relaxed, she could take the lead, touch him sensually, with no pressure to perform, and see if he wants to take it forward. The woman, of course, has her own emotional and physical needs. She could channelise her libido in work and children, or sublimate her sexual urges in creative pursuits. If she is spiritually inclined, then prayer and meditation can give her comfort. She could also engage in self-pleasuring from time to time to deal with her own heightened sexual urges.

Rewind 2008: HIGH-VOLTAGE DRAMA OFF-SCREEN

By M H Ahssan

Spats, political drama, fan wars and a star debut overtook show business in Tollywood. HNN rewinds to the year that was.

Drama – there was no dearth of it in Tollywood this year. More than films, there were other issues that took centre stage in the Telugu film industry. A political tsunami engulfed the stars, who were either busy floating their own party or supporting existing ones. A political divide like this was never seen before in the industry.

STAR POLITICS
Mega star Chiranjeevi’s political plunge saw family members –– Pawan Kalyan, Nagababu and Allu Aravind ––getting busier by the day. While, Nagababu known for his managerial abilities, saw a sudden spurt in his acting career (he acted in more than 20 films this year), actor Pawan Kalyan got busy managing Yuvarajyam, the youth wing of Prajarajyam (with the nightmare of his divorce behind him). Not to be outdone, the Nandamuri clan united for a political cause –– Balakrishna, Jr NTR and Kalyan Ram –– declared their support to Telugu Desam and Balakrishna was the star attraction at TDP’s Yuvagarjana. The sudden influx of stars into the political arena pushed the Congress to woo the remaining stars. At the Nandi Awards, actor Nagarjuna, Krishna and Mahesh Babu made their political allegiance obvious and other stars like Rajasekhar, Jeevitha and Srihari have sent feelers to the Congress, we hear.

FAN WARS, CRICKET & SON-RISE
The year also saw a fan war between actor Rajasekhar and Chiranjeevi, with the mega star apologising in public on behalf of fans who attacked Rajasekhar. This was a first! On a pleasanter note, Manchu Vishnu bought a stake in the ICL and the year also saw the most memorable son-rise, that of Naga Chaitanya.

NOT A SINGLE FILM
The biggest surprise of the year comes from Mahesh Babu –– the star did not shoot for a single day the whole year and had no release either. Disturbing silence!

FREAK ACCIDENT & A PASSION CRIME
River Godavari, where umpteen films are shot each year, turned into a watery grave for a junior artist while performing a stunt for the film Baladoor. The accident in March opened a can of worms but the issue died a slow death.

Towards the year-end the murder of Bhargavi, the second lead actress in the hit film Ashta Chemma, shook the industry, once again highlighting the struggles of upcoming actors and the downside of glitz and glamour.

Rewind 2008: HIGH-VOLTAGE DRAMA OFF-SCREEN

By M H Ahssan

Spats, political drama, fan wars and a star debut overtook show business in Tollywood. HNN rewinds to the year that was.

Drama – there was no dearth of it in Tollywood this year. More than films, there were other issues that took centre stage in the Telugu film industry. A political tsunami engulfed the stars, who were either busy floating their own party or supporting existing ones. A political divide like this was never seen before in the industry.

STAR POLITICS
Mega star Chiranjeevi’s political plunge saw family members –– Pawan Kalyan, Nagababu and Allu Aravind ––getting busier by the day. While, Nagababu known for his managerial abilities, saw a sudden spurt in his acting career (he acted in more than 20 films this year), actor Pawan Kalyan got busy managing Yuvarajyam, the youth wing of Prajarajyam (with the nightmare of his divorce behind him). Not to be outdone, the Nandamuri clan united for a political cause –– Balakrishna, Jr NTR and Kalyan Ram –– declared their support to Telugu Desam and Balakrishna was the star attraction at TDP’s Yuvagarjana. The sudden influx of stars into the political arena pushed the Congress to woo the remaining stars. At the Nandi Awards, actor Nagarjuna, Krishna and Mahesh Babu made their political allegiance obvious and other stars like Rajasekhar, Jeevitha and Srihari have sent feelers to the Congress, we hear.

FAN WARS, CRICKET & SON-RISE
The year also saw a fan war between actor Rajasekhar and Chiranjeevi, with the mega star apologising in public on behalf of fans who attacked Rajasekhar. This was a first! On a pleasanter note, Manchu Vishnu bought a stake in the ICL and the year also saw the most memorable son-rise, that of Naga Chaitanya.

NOT A SINGLE FILM
The biggest surprise of the year comes from Mahesh Babu –– the star did not shoot for a single day the whole year and had no release either. Disturbing silence!

FREAK ACCIDENT & A PASSION CRIME
River Godavari, where umpteen films are shot each year, turned into a watery grave for a junior artist while performing a stunt for the film Baladoor. The accident in March opened a can of worms but the issue died a slow death.

Towards the year-end the murder of Bhargavi, the second lead actress in the hit film Ashta Chemma, shook the industry, once again highlighting the struggles of upcoming actors and the downside of glitz and glamour.

No Recession Impact: Beauty Business Continues to Flourish

By Sheena Shafia

When it comes to beauty care, consumers are not shying away from loosening their purse strings. The spectre of slowdown does not seem to have touched this sector, with beauty services and products said to be clocking healthy growths.

This year, the Indian arm of leading global beauty care company, L’Oreal, is expected to report a growth of 30%, in line with last year’s growth. Said Dinesh Dayal, COO, L’Oreal India: “The beauty care industry is largely unaffected by any kind of slowdown in GDP, because people do not change their daily and weekly buying habits.’’

L’Oreal India uses multiple channels to market its range of beauty care products including colour cosmetics, grooming and personal care products. The company’s turnover has reached Rs 600 crore, with its Garnier range of products penetrating the small-town market, adding to the company’s largely urban-driven growth.

Competing hair colour brands from Godrej Consumer Products Ltd (GCPL)—Color Soft and Renew —too have witnessed ‘satisfactory’ growth, according to the company’s executive director & president, HK Press. According to industry estimates, the hair colour market is said to have grown by 27% in November 2008, compared to November 2007.

“It’s, what they call, the ‘lipstick effect’. The grooming industry grows despite other sectors facing a slowdown. In these times, people indulge in spending more on their grooming habits than maybe, on a car or a durable,’’ said Press. Among other cosmetics brands, Eraser and Lissome Cosmetics have clocked growths of 52% and 36%, respectively, during April-November 2008.

Service care brands in beauty care industry are also said to be unaffected by the slowdown. Take, for instance, Kaya, a service brand from Marico. It is witnessing a double-digit growth in the current quarter vis-a-vis last year.

According to Rakesh Pandey, CEO, Kaya Ltd: “In the last two months of the current quarter, we have seen greater business coming from existing customer base. There has been about 7-8% increase in repeat customers over last year.’’ Growth for Kaya is said to be uniform across the country.

In line with its expansion plans, Kaya has opened five new outlets in the last month.

No Recession Impact: Beauty Business Continues to Flourish

By Sheena Shafia

When it comes to beauty care, consumers are not shying away from loosening their purse strings. The spectre of slowdown does not seem to have touched this sector, with beauty services and products said to be clocking healthy growths.

This year, the Indian arm of leading global beauty care company, L’Oreal, is expected to report a growth of 30%, in line with last year’s growth. Said Dinesh Dayal, COO, L’Oreal India: “The beauty care industry is largely unaffected by any kind of slowdown in GDP, because people do not change their daily and weekly buying habits.’’

L’Oreal India uses multiple channels to market its range of beauty care products including colour cosmetics, grooming and personal care products. The company’s turnover has reached Rs 600 crore, with its Garnier range of products penetrating the small-town market, adding to the company’s largely urban-driven growth.

Competing hair colour brands from Godrej Consumer Products Ltd (GCPL)—Color Soft and Renew —too have witnessed ‘satisfactory’ growth, according to the company’s executive director & president, HK Press. According to industry estimates, the hair colour market is said to have grown by 27% in November 2008, compared to November 2007.

“It’s, what they call, the ‘lipstick effect’. The grooming industry grows despite other sectors facing a slowdown. In these times, people indulge in spending more on their grooming habits than maybe, on a car or a durable,’’ said Press. Among other cosmetics brands, Eraser and Lissome Cosmetics have clocked growths of 52% and 36%, respectively, during April-November 2008.

Service care brands in beauty care industry are also said to be unaffected by the slowdown. Take, for instance, Kaya, a service brand from Marico. It is witnessing a double-digit growth in the current quarter vis-a-vis last year.

According to Rakesh Pandey, CEO, Kaya Ltd: “In the last two months of the current quarter, we have seen greater business coming from existing customer base. There has been about 7-8% increase in repeat customers over last year.’’ Growth for Kaya is said to be uniform across the country.

In line with its expansion plans, Kaya has opened five new outlets in the last month.

Will Santa Make a Stop at Market this Time too?

By M H Ahssan

Since 2000, Sensex Never Hit Negative Between Christmas Eve & New Year

We never needed it more: a Santa Claus rally. The big question is whether it will happen in 2008? Much like the Wall Street, history says Indian stock markets tend to rally from Christmas Eve to the New Year’s Day (or the first trading day of the New Year). FIIs or mutual funds or big investors may not be bullish but if Santa has his way, investors will have something nice to finish the year, which saw sensex lose over 50% of its value.

If investors want some hope, they can take heart from the fact that from 2000 onwards the sensex has never given negative returns for this period, which falls within the Yuletide.

Santa Claus rallies are said to happen as people tend to consume more, invest for tax breaks and more importantly, pessimists stay on vacation during this week, say experts.

For the rally to happen in 2008, the start seems to be a little off the track with sensex losing 240 point on Friday. But people haven’t lost hope.

“An encore of 2003, 2004 or even 2006 could see sensex gain anything between 3% and 6%. The sentiment not withstanding, we never know what markets might throw at us,” an institutional head at a local brokerage said. A rally at this point could be a possibility because downsides from slowdown and lesser profits in third quarter are already there in the prices to a certain extent, he said.

For a 6-7 day window that exists between Christmas Eve and the first trading of the New Year, Santa has made decent stops at the Indian stock markets during his yearly journey on the reindeer-pulled sleigh in the past few years.

The year 2000 saw the sensex gain 1.3%, 2001 witnessed the index inched up by 0.5%, 2002 landed a 1.2% gain. Santa was most generous in the years such as 2003 (4.9%), 2004 (2.8%), 2006 (3.5%) and 2007 (2.5%). “This trend could be because of a tendency of the stock market to rise between December 31 and the end of the first week in January: in short what we call the January effect. Probably, the Santa Claus rally is just a precursor of that. Also as the year ends, there is an increasing propensity amongst investors to put money into stock-market linked instruments,” a Mumbai-based broker said.

With valuations depressed as they are now, chances of fund managers buying into stocks now are fairly high, he adds.

Sensex loses 240 points, fourth day in succession
Sliding for the fourth consecutive session, the BSE Sensex lost a further 240 points to close at 9,329. The day’s losses came on the back of news that the advance tax collections for the quarter were 22% less on a yearly basis and talks in late session that there were chances of further escalation of tensions between India and Pakistan. Friday’s slide took the weekly sensex loss to 771 points or 7.6%. The only positive news was that the annual rate of inflation dropped further to 6.61%, however amid bearish sentiment, that news was quickly discounted by the market. The day’s slide led to a Rs 53,000 crore loss in investors’ wealth with BSE market capitalisation now at Rs 30.1 lakh crore. Market players said government’s announcement that advance tax collections were lower pointed to lower profitability for the corporates and hence the slide in the market. The day’s slide was led by IT, real estate, consumer durables and banks. Monday’s market could see continuation of the current trend of cautious trading with a downward bias, dealers said. Among the sensex stocks, Reliance Infra lost over 6% to close at Rs 542. Other top losers were DLF, down 6% at Rs 276, Infosys lost 5.3% at Rs 1,110 and ICICI Bank ended 5.2% at Rs 418. Of the 30 sensex stocks, 25 ended with a loss compared to five which ended higher.

Will Santa Make a Stop at Market this Time too?

By M H Ahssan

Since 2000, Sensex Never Hit Negative Between Christmas Eve & New Year

We never needed it more: a Santa Claus rally. The big question is whether it will happen in 2008? Much like the Wall Street, history says Indian stock markets tend to rally from Christmas Eve to the New Year’s Day (or the first trading day of the New Year). FIIs or mutual funds or big investors may not be bullish but if Santa has his way, investors will have something nice to finish the year, which saw sensex lose over 50% of its value.

If investors want some hope, they can take heart from the fact that from 2000 onwards the sensex has never given negative returns for this period, which falls within the Yuletide.

Santa Claus rallies are said to happen as people tend to consume more, invest for tax breaks and more importantly, pessimists stay on vacation during this week, say experts.

For the rally to happen in 2008, the start seems to be a little off the track with sensex losing 240 point on Friday. But people haven’t lost hope.

“An encore of 2003, 2004 or even 2006 could see sensex gain anything between 3% and 6%. The sentiment not withstanding, we never know what markets might throw at us,” an institutional head at a local brokerage said. A rally at this point could be a possibility because downsides from slowdown and lesser profits in third quarter are already there in the prices to a certain extent, he said.

For a 6-7 day window that exists between Christmas Eve and the first trading of the New Year, Santa has made decent stops at the Indian stock markets during his yearly journey on the reindeer-pulled sleigh in the past few years.

The year 2000 saw the sensex gain 1.3%, 2001 witnessed the index inched up by 0.5%, 2002 landed a 1.2% gain. Santa was most generous in the years such as 2003 (4.9%), 2004 (2.8%), 2006 (3.5%) and 2007 (2.5%). “This trend could be because of a tendency of the stock market to rise between December 31 and the end of the first week in January: in short what we call the January effect. Probably, the Santa Claus rally is just a precursor of that. Also as the year ends, there is an increasing propensity amongst investors to put money into stock-market linked instruments,” a Mumbai-based broker said.

With valuations depressed as they are now, chances of fund managers buying into stocks now are fairly high, he adds.

Sensex loses 240 points, fourth day in succession
Sliding for the fourth consecutive session, the BSE Sensex lost a further 240 points to close at 9,329. The day’s losses came on the back of news that the advance tax collections for the quarter were 22% less on a yearly basis and talks in late session that there were chances of further escalation of tensions between India and Pakistan. Friday’s slide took the weekly sensex loss to 771 points or 7.6%. The only positive news was that the annual rate of inflation dropped further to 6.61%, however amid bearish sentiment, that news was quickly discounted by the market. The day’s slide led to a Rs 53,000 crore loss in investors’ wealth with BSE market capitalisation now at Rs 30.1 lakh crore. Market players said government’s announcement that advance tax collections were lower pointed to lower profitability for the corporates and hence the slide in the market. The day’s slide was led by IT, real estate, consumer durables and banks. Monday’s market could see continuation of the current trend of cautious trading with a downward bias, dealers said. Among the sensex stocks, Reliance Infra lost over 6% to close at Rs 542. Other top losers were DLF, down 6% at Rs 276, Infosys lost 5.3% at Rs 1,110 and ICICI Bank ended 5.2% at Rs 418. Of the 30 sensex stocks, 25 ended with a loss compared to five which ended higher.

Feel Indian, Be Indian

By M H Ahssan

Only Indian citizens can play for the country, says the government

The central government’s sports ministry has proposed a policy that will no longer allow Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs) to represent India in sporting events, as they are technically ‘foreign citizens’. The argument proffered is that allowing sportspersons of Indian origin to wear Indian colours even after they acquire the citizenship of another country would be tantamount to depriving Indian citizens of the opportunity to play for their country. The decision will leave currently registered players in the lurch, as their future would be uncertain. It will have serious implications for India’s tennis team, as Prakash Amritraj, Sunitha Rao and the Uberoi sisters, Shikha and Neha, will all become ineligible to play for it.

These columns have consistently promoted the idea of an elective identity that will help us do away with restrictions that curb talent and aspirations. The government, too, has gone to the extent of setting up a ministry of overseas Indian affairs to felicitate and honour members of the Indian diaspora. The ministry organises the Pravasi Bharatiya Divas event every year that is a huge draw for people of Indian origin from all over the world. When we value their services and make so much effort to appreciate what they do, why the stepmotherly treatment when it comes to their wishing to represent the country of their origin?

According to official estimates released in 2001, more than 20 million Indians live overseas in addition to the six millionplus who retain their Indian citizenship though they live abroad. Indian sportspersons who have had the benefit of getting trained by foreign experts and who feel strongly enough for their country of origin to wear its colours in competition should be allowed to do so. Chances are they would walk that extra mile to prove their cultural allegiance and so work harder to tot up the number of Indians on the winners’ list. The sports ministry should make its criteria as flexible as possible and leave it to councils that govern events like the Olympics or the Asian Games to take decisions on the eligibility of participants.

Only citizens should represent India
The sports ministry is mulling a proposal to disallow PIOs and OCIs from representing India at international sporting events as competitors. The proposal has been met with outrage, perhaps owing to the fact that India’s ability to compete in anything but cricket would be severely reduced if such a rule were applied. Several athletes representing India in the international sporting arena are actually PIOs or OCIs. But that is not enough reason to keep letting non-Indians represent India.

Why, in international sport, do sportspeople have to identify themselves as Indian or American or British, even in non-team sports? Because success in sport is a tribute to one’s country, its facilities and its culture. To cheat on that account is to demean the sport, too. And identifying one as belonging to a nation one might never have seen, let alone trained in is cheating. It’s also unfair to the nation that the sportsperson is a citizen of. Having made use of their home country’s facilities to hone their skills, why do athletes want to pledge allegiance to India? It is as dishonest as Maria Sharapova playing tennis for Russia. She is more American than Russian, having learnt all her tricks in Florida.

We have no need for borrowed heroes in this country. If a billion-plus people cannot produce world-beaters in sports, then we must learn to live with it. The honour of representing the country shouldn’t be given to someone who can’t even be bothered to hold an Indian passport.If an athlete is willing to become an Indian citizen, by all means, they should represent the country. Indeed, the nation will be proud to be represented by them. But they can’t play on both sides. There is more to being Indian than just the colour of one’s skin. If a second or third generation sporting genius feels truly Indian, she can initiate citizenship proceedings. Otherwise, they’re just making a mockery of the idea of nationhood. To represent India at a sporting event is a matter of great prestige and that honour should be given to those who are Indian in every way.

Feel Indian, Be Indian

By M H Ahssan

Only Indian citizens can play for the country, says the government

The central government’s sports ministry has proposed a policy that will no longer allow Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs) to represent India in sporting events, as they are technically ‘foreign citizens’. The argument proffered is that allowing sportspersons of Indian origin to wear Indian colours even after they acquire the citizenship of another country would be tantamount to depriving Indian citizens of the opportunity to play for their country. The decision will leave currently registered players in the lurch, as their future would be uncertain. It will have serious implications for India’s tennis team, as Prakash Amritraj, Sunitha Rao and the Uberoi sisters, Shikha and Neha, will all become ineligible to play for it.

These columns have consistently promoted the idea of an elective identity that will help us do away with restrictions that curb talent and aspirations. The government, too, has gone to the extent of setting up a ministry of overseas Indian affairs to felicitate and honour members of the Indian diaspora. The ministry organises the Pravasi Bharatiya Divas event every year that is a huge draw for people of Indian origin from all over the world. When we value their services and make so much effort to appreciate what they do, why the stepmotherly treatment when it comes to their wishing to represent the country of their origin?

According to official estimates released in 2001, more than 20 million Indians live overseas in addition to the six millionplus who retain their Indian citizenship though they live abroad. Indian sportspersons who have had the benefit of getting trained by foreign experts and who feel strongly enough for their country of origin to wear its colours in competition should be allowed to do so. Chances are they would walk that extra mile to prove their cultural allegiance and so work harder to tot up the number of Indians on the winners’ list. The sports ministry should make its criteria as flexible as possible and leave it to councils that govern events like the Olympics or the Asian Games to take decisions on the eligibility of participants.

Only citizens should represent India
The sports ministry is mulling a proposal to disallow PIOs and OCIs from representing India at international sporting events as competitors. The proposal has been met with outrage, perhaps owing to the fact that India’s ability to compete in anything but cricket would be severely reduced if such a rule were applied. Several athletes representing India in the international sporting arena are actually PIOs or OCIs. But that is not enough reason to keep letting non-Indians represent India.

Why, in international sport, do sportspeople have to identify themselves as Indian or American or British, even in non-team sports? Because success in sport is a tribute to one’s country, its facilities and its culture. To cheat on that account is to demean the sport, too. And identifying one as belonging to a nation one might never have seen, let alone trained in is cheating. It’s also unfair to the nation that the sportsperson is a citizen of. Having made use of their home country’s facilities to hone their skills, why do athletes want to pledge allegiance to India? It is as dishonest as Maria Sharapova playing tennis for Russia. She is more American than Russian, having learnt all her tricks in Florida.

We have no need for borrowed heroes in this country. If a billion-plus people cannot produce world-beaters in sports, then we must learn to live with it. The honour of representing the country shouldn’t be given to someone who can’t even be bothered to hold an Indian passport.If an athlete is willing to become an Indian citizen, by all means, they should represent the country. Indeed, the nation will be proud to be represented by them. But they can’t play on both sides. There is more to being Indian than just the colour of one’s skin. If a second or third generation sporting genius feels truly Indian, she can initiate citizenship proceedings. Otherwise, they’re just making a mockery of the idea of nationhood. To represent India at a sporting event is a matter of great prestige and that honour should be given to those who are Indian in every way.

Old Age Blues: With A Little Help

By Dipankar Gupta

The old need not be at the mercy of their families

Ageing Bollywood stars can be spotted from a mile. Their hair and shoes are always polished jet black. Their face is faintly recognisable, the feet shuffling, but the mop on top is luxuriantly dyed. Years of on-screen make-up have convinced them that what you get is what they see. We may ridicule this thought, but life often imitates artists, if not art.

After a bunch of grey hairs, and years of denial, the elderly in India have realised that it does not pay to sag with age. Nor should they will their sons their worldly possessions while they are still around. While till now they planned their retirement lives on their own, they have at last some state support. On February 28, 2008, the Maintenance and Welfare of Parents and Senior Citizens Bill was passed by the Parliament with ease. Now spoilt sons, fattened by inheritance, can go to jail for three months for neglecting their parents. The existing Code of Criminal Procedure (1973) took too long to implement, and where was all that time?

The myth of the joint family was kept alive for generations out of sheer wishful thinking. This was an ideal many of us aspired to, but most found it too demanding. It worked as long as the property was run by the patriarch and could not be alienated from the family. This was usually the case with land and commercial establishments. When the joint family held it was either for economic considerations, or because sons were more worthless than their fathers. It is surprising how many idle kids thrive under the family roof.

It is a locked-on certainty that nobody wants to die in the trenches. A nest’s egg, a rocking chair, and a long look at the sunset are what old age dreams are made of. But now times are changing. The unit of earning is no longer the family. Sons work in different occupations, get paid differently, and have different lifestyles and goals. Incidentally, this is not just an urban phenomenon. There are many poor cottages in rural India where old couples are left to their own devices. Their sons are in Mumbai, Surat, Panipat, or in some other distant address.

It might have looked gracious once to let your boys have their share while you were still around. But as boys will be boys, they might just as easily take you down in the name of taking over. But so many parents still insist on making the same mistake. Like film stars of yesteryear, they too keep wondering
where all that adulation has gone? Screaming fans and doting sons can be equally fickle, but neither stars nor parents are ever prepared to fully accept this fact. One minute it is roses, roses all the way, and in the next they are dreaming of flowers on your bier.

But actors don’t give up as easily as parents tend to do. Years of grease paint must have seeped into their blood. They put on a brave face, slick their hair and get on with the show as best as they can. The elderly too must learn not to switch off once prime time is over. Instead of brooding over how the brood went wrong; or searching the family album for childhood telltale signs, it is wise to think of the future. Who knows, perhaps the best is yet to come. And when it does, the greedy brat pack in the kitchen won’t find a crumb to pick off the floor.

Even parliamentarians, who can be notoriously insensitive, have recognised with near unanimity, that the joint family is more or less a thing of the past. The abovementioned Bill makes this rueful admission in the preamble itself. The law-makers have also taken into account that mothers are treated worst of all. They have no assets of any kind. At least, the father’s career may have given him some special advisory skills, but the mother was always in the kitchen. Once poetry was written on her fetching dependence; but today it is just an irritation. Neither the slogan of the joint family, nor avowals of mother love, has stood the test of time.

Smart parenting is when we see the writing on the wall before we do the writing on the will. It is just as well that the Maintenance and Welfare of Parents and Senior Citizens Bill also takes note of providing old-age homes and better medical care for the aged. In India, 80 per cent of all medical expenditure is out of one’s pocket. We occupy the first place in the world with this shameful statistic. In every other country the state contributes a greater share in health-care costs. This is why this Bill must pay attention to medical support, else it will be as toothless as the people it hopes to protect.

For now it is a good beginning. The thought that greedy sons can be put away for three months must cheer old parents, and scare their brats. But true deliverance for the aged can only come with state support for old-age homes and medical care. Till then family tussles will continue, though this Bill will delay the knockout punch. But for long-term support the elderly need the state to be in their corner, and with more than just the towel to throw in.

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HAPPY NEW YEAR 2009?

By M H Ahssan

From dreading the HR phone call on Friday mornings to checking the news for updates on any terror strike in your city before stepping out for shopping could continue to be the pattern in 2009. But there is hope. India’s economy would recover relatively faster than other nations. People will vote on manifestos, not election rhetoric. Easy money will lose its sheen. And such corrections spell hope, not doom.

In 2008, people had only a fistful of reasons to rejoice. Citizens of AP celebrated when Telugu got the classical language status. They revved up and down the Punjagutta flyover celebrating their much smoother Begumpet-Banjara Hills ride. But such moments of joy were few and far in between. It was largely a pot holed ride, worsened by the recession and the fear of terror strikes. Small wonder then that optimism eludes people when asked if the new year would give them any reason to smile. But the never-say-die spirit soon bounces back as they merge logic with hope and point out that 2009 could be not a bad year, after all.

With the recession’s ‘full’ impact still to be felt on the Indian economy and the fear of pink slips still looming large on various sectors, senior industry persons say that it would easily take another two quarters for the grim situation to show any signs of improvement. But there is a glimmer of an upside. “The year 2009 is going to be a test period. There will be some more downturn before there are better days since we haven’t seen the full impact of the US meltdown yet. But India being an emerging market would see a relatively faster, better recovery,’’ says K Harishchandra Prasad, senior vice-president, Federation of Andhra Pradesh Chamber of Commerce and Industry.

WE THE PEOPLE
What the year 2009 will bring about is a sea change in the way ‘people’ are perceived. On one hand, while employed professionals will be scanned routinely for their retention worthiness, on the other politicians will have to take the masses seriously. Harishchandra Prasad points out that if earlier the poor performers were laid off, now even a hardworker’s job is not guaranteed, particularly in the IT sector.

Helpless in the job front, but powerful otherwise. The same set of people would exercise tremendous power in the upcoming elections, says S A Shukoor, director, Centre for Educational Development of Minorities, who believes that Barack Obama’s victory was was a sign of things to come. “People have brought about this change (Obama’s victory). There would be a ripple effect across nations. People will think before they vote in the elections and more people will vote this time. Elections will be won on manifestos and not political drama,’’ Shukoor hopes.

But such hope is not sans logic. Shukoor points out that over the years the number of communal riots in the city has dipped. This, he says, is because sense has prevailed among people that its politicians and not them who gain from such acts of violence. “People will tire of political games,’’ he says.

In what appears like a reflection of Shukoor’s thought is the silent rumbling of creative activism in the city. Theatre personalities are working on scripts that leave a message for the masses. “We now plan to stage at least two shows every month and plays that leave a message,’’ says theatre personality Rashmi Seth, adding that several theatre groups in the city have woken up from their slumber. Several plays being scripted currently focus on the fight against terror and inspire people to raise their voice against poor governance and coax them to appreciate the traditional lifestyle of sensible spending. “Theatre is a hugely sensitive medium that reflects the turmoil as well as harmony in society,’’ Seth says, adding, “The year 2008 initiated a number of debates on governance and lifestyle patterns. Be it terrorism or the global financial crisis, such difficult times only leave people stronger and wiser.

HELPFUL CORRECTIONS
The meltdown’s impact in the last quarter of 2008 did make people go back to post offices and reschedule their purchases and there will be more such similar corrections in the year 2009. While employers cost cutting is an alarming sign of the firm’s financial health, it is also a much needed correction, say industry experts. Industry seniors rue how people particularly in the IT sector have been molly-coddled by their employers. “Six months ago, there would be one cab for one person now that one person is asked to wait until there are three more people to be dropped,’’ they say, illustrating how such pampering cannot last.

But what the industry is hoping for would change in the year 2009 is the perception of easy money. Simple graduates landing jobs easily would on the face of it paint a pleasant employment picture but academicians have expressed their discomfort at students cutting short their education for quick money.

Describing it as a case of “easy come, easy go’’ Harishchandra Prasad says that the downturn has made one thing clear: “If you have worked for something, it would stay with you for longer. If it comes easily, it goes easily,’’ he says, pointing out that young grads at 20 or 21 would be sitting on three offers and wouldn’t even know why. He notes how the present challenge the industry is faced with today is to place fresh graduates and now its not just their grade but their soft skills and general knowledge that are being put to test.

But a much-needed correction would be a hand-holding exercise that companies could undertake at the time of laying off their employees. The layoff season in India Inc. reeks of the US practice of showing the door to employees without as much as counselling them as to how best they could use their existing resources until they get their next job, notes a senior HR consultant.

One heartening correction, which is neither terror or meltdown related, has been in the drop in accident casualties in October-November, 2008. “The total number of deaths dropped by 31 as against 2007 for the same period,’’ says N V Surendra Babu, additional commissioner of police (traffic). This could well be the result of strict policing on roads and sensible driving, but Surendra Babu says that it is too early to take credit for the dip until a pattern is established. A correction subtly unfolding is that of good scripts doing better in Tollywood with formula films crashing at the box office this year.

HOPEFULLY, SPEAKING
Not all industry sectors are hit by the meltdown. Healthcare is one of them. In fact, India’s medical tourism dream could take off with people from across the world realising the quality affordable healthcare they can receive in India. “A challenge we are all geared for is to introduce new technology in medicine so that India’s healthcare industry becomes world class attracting international patients,’’ says Dr K Hari Prasad, CEO, Apollo Hospitals. He also hopes that the Rajiv Arogyasree programme, a major development in the year 2008, is fine-tuned in 2009.

Another important sector, sports, may not be as insulated from the recession as the healthcare industry. “The year 2008 was good for the sports fraternity with Saina Nehwal making it big internationally and state players entering Olympic teams from India,’’ says Vikas Raj, managing director, Sports Authority of Andhra Pradesh, citing even shooter Gagan Narang’s perfect scores in the last few events.

CHEER IN GOVT SECTOR TO CONTINUE
The sixth pay commission’s implementation could not have been timelier. When the world is reeling under the recession, government officers are insulated from the meltdown blues as they are now not only getting their revised salaries but they even received the first instalment of arrears (calculated from the year 2006) during Diwali.

Government organisation employees got 40 per cent of the arrears due to them in October and the second instalment of 60 per cent of the payout is due in the next financial year. The first payout amount ranged from Rs 20,000 to Rs 3 lakh depending on the seniority of the official. In addition, the employees were given a bonus.

The city has several central government establishments such as the railways, telecom, air force, army, CPWD, CRPF, DRDO, CISF, Income Tax, Survey of India and customs and excise among others.

But the icing on the cake perhaps is the revised salaries that government employees say have brought them almost on par with the private sector employees, who so far flaunted their fat pay cheques.

Small wonder then that builders and car dealers are queuing up at government offices hard selling property and latest car models as they are the only cash-rich party available in these recessionary times. In fact, car dealers have come up with lucrative deals offering special discounts and deals of easy payment options to net the government employee.

And government employees are spending and even loving it. While some are investing in gold (the fluctuating gold prices not withstanding), others are buying themselves cars using the arrears to make down payments that would make their EMIs smaller, affordable. Others are using this chunk of money to repay mortgage bank loans. But most people are investing in fixed deposits with some nationalised banks offering a good rate of interest.

HAPPY NEW YEAR 2009?

By M H Ahssan

From dreading the HR phone call on Friday mornings to checking the news for updates on any terror strike in your city before stepping out for shopping could continue to be the pattern in 2009. But there is hope. India’s economy would recover relatively faster than other nations. People will vote on manifestos, not election rhetoric. Easy money will lose its sheen. And such corrections spell hope, not doom.

In 2008, people had only a fistful of reasons to rejoice. Citizens of AP celebrated when Telugu got the classical language status. They revved up and down the Punjagutta flyover celebrating their much smoother Begumpet-Banjara Hills ride. But such moments of joy were few and far in between. It was largely a pot holed ride, worsened by the recession and the fear of terror strikes. Small wonder then that optimism eludes people when asked if the new year would give them any reason to smile. But the never-say-die spirit soon bounces back as they merge logic with hope and point out that 2009 could be not a bad year, after all.

With the recession’s ‘full’ impact still to be felt on the Indian economy and the fear of pink slips still looming large on various sectors, senior industry persons say that it would easily take another two quarters for the grim situation to show any signs of improvement. But there is a glimmer of an upside. “The year 2009 is going to be a test period. There will be some more downturn before there are better days since we haven’t seen the full impact of the US meltdown yet. But India being an emerging market would see a relatively faster, better recovery,’’ says K Harishchandra Prasad, senior vice-president, Federation of Andhra Pradesh Chamber of Commerce and Industry.

WE THE PEOPLE
What the year 2009 will bring about is a sea change in the way ‘people’ are perceived. On one hand, while employed professionals will be scanned routinely for their retention worthiness, on the other politicians will have to take the masses seriously. Harishchandra Prasad points out that if earlier the poor performers were laid off, now even a hardworker’s job is not guaranteed, particularly in the IT sector.

Helpless in the job front, but powerful otherwise. The same set of people would exercise tremendous power in the upcoming elections, says S A Shukoor, director, Centre for Educational Development of Minorities, who believes that Barack Obama’s victory was was a sign of things to come. “People have brought about this change (Obama’s victory). There would be a ripple effect across nations. People will think before they vote in the elections and more people will vote this time. Elections will be won on manifestos and not political drama,’’ Shukoor hopes.

But such hope is not sans logic. Shukoor points out that over the years the number of communal riots in the city has dipped. This, he says, is because sense has prevailed among people that its politicians and not them who gain from such acts of violence. “People will tire of political games,’’ he says.

In what appears like a reflection of Shukoor’s thought is the silent rumbling of creative activism in the city. Theatre personalities are working on scripts that leave a message for the masses. “We now plan to stage at least two shows every month and plays that leave a message,’’ says theatre personality Rashmi Seth, adding that several theatre groups in the city have woken up from their slumber. Several plays being scripted currently focus on the fight against terror and inspire people to raise their voice against poor governance and coax them to appreciate the traditional lifestyle of sensible spending. “Theatre is a hugely sensitive medium that reflects the turmoil as well as harmony in society,’’ Seth says, adding, “The year 2008 initiated a number of debates on governance and lifestyle patterns. Be it terrorism or the global financial crisis, such difficult times only leave people stronger and wiser.

HELPFUL CORRECTIONS
The meltdown’s impact in the last quarter of 2008 did make people go back to post offices and reschedule their purchases and there will be more such similar corrections in the year 2009. While employers cost cutting is an alarming sign of the firm’s financial health, it is also a much needed correction, say industry experts. Industry seniors rue how people particularly in the IT sector have been molly-coddled by their employers. “Six months ago, there would be one cab for one person now that one person is asked to wait until there are three more people to be dropped,’’ they say, illustrating how such pampering cannot last.

But what the industry is hoping for would change in the year 2009 is the perception of easy money. Simple graduates landing jobs easily would on the face of it paint a pleasant employment picture but academicians have expressed their discomfort at students cutting short their education for quick money.

Describing it as a case of “easy come, easy go’’ Harishchandra Prasad says that the downturn has made one thing clear: “If you have worked for something, it would stay with you for longer. If it comes easily, it goes easily,’’ he says, pointing out that young grads at 20 or 21 would be sitting on three offers and wouldn’t even know why. He notes how the present challenge the industry is faced with today is to place fresh graduates and now its not just their grade but their soft skills and general knowledge that are being put to test.

But a much-needed correction would be a hand-holding exercise that companies could undertake at the time of laying off their employees. The layoff season in India Inc. reeks of the US practice of showing the door to employees without as much as counselling them as to how best they could use their existing resources until they get their next job, notes a senior HR consultant.

One heartening correction, which is neither terror or meltdown related, has been in the drop in accident casualties in October-November, 2008. “The total number of deaths dropped by 31 as against 2007 for the same period,’’ says N V Surendra Babu, additional commissioner of police (traffic). This could well be the result of strict policing on roads and sensible driving, but Surendra Babu says that it is too early to take credit for the dip until a pattern is established. A correction subtly unfolding is that of good scripts doing better in Tollywood with formula films crashing at the box office this year.

HOPEFULLY, SPEAKING
Not all industry sectors are hit by the meltdown. Healthcare is one of them. In fact, India’s medical tourism dream could take off with people from across the world realising the quality affordable healthcare they can receive in India. “A challenge we are all geared for is to introduce new technology in medicine so that India’s healthcare industry becomes world class attracting international patients,’’ says Dr K Hari Prasad, CEO, Apollo Hospitals. He also hopes that the Rajiv Arogyasree programme, a major development in the year 2008, is fine-tuned in 2009.

Another important sector, sports, may not be as insulated from the recession as the healthcare industry. “The year 2008 was good for the sports fraternity with Saina Nehwal making it big internationally and state players entering Olympic teams from India,’’ says Vikas Raj, managing director, Sports Authority of Andhra Pradesh, citing even shooter Gagan Narang’s perfect scores in the last few events.

CHEER IN GOVT SECTOR TO CONTINUE
The sixth pay commission’s implementation could not have been timelier. When the world is reeling under the recession, government officers are insulated from the meltdown blues as they are now not only getting their revised salaries but they even received the first instalment of arrears (calculated from the year 2006) during Diwali.

Government organisation employees got 40 per cent of the arrears due to them in October and the second instalment of 60 per cent of the payout is due in the next financial year. The first payout amount ranged from Rs 20,000 to Rs 3 lakh depending on the seniority of the official. In addition, the employees were given a bonus.

The city has several central government establishments such as the railways, telecom, air force, army, CPWD, CRPF, DRDO, CISF, Income Tax, Survey of India and customs and excise among others.

But the icing on the cake perhaps is the revised salaries that government employees say have brought them almost on par with the private sector employees, who so far flaunted their fat pay cheques.

Small wonder then that builders and car dealers are queuing up at government offices hard selling property and latest car models as they are the only cash-rich party available in these recessionary times. In fact, car dealers have come up with lucrative deals offering special discounts and deals of easy payment options to net the government employee.

And government employees are spending and even loving it. While some are investing in gold (the fluctuating gold prices not withstanding), others are buying themselves cars using the arrears to make down payments that would make their EMIs smaller, affordable. Others are using this chunk of money to repay mortgage bank loans. But most people are investing in fixed deposits with some nationalised banks offering a good rate of interest.

Exclusive: Beleaguered ‘Satyam’ Raju to Step Down?

By M H Ahssan

Stunned by the attacks from all sides, Satyam supremo Ramalinga Raju might offer to not to chair the crucial board meeting of the company on December 29 and even step down as the chairman of the company temporarily, highly-placed sources told HNN.

This development comes with pressure mounting on the independent directors to take moral responsibility for the aborted Satyam-Maytas deal that has led the company on a downward spiral. Dean of Indian School of Business (ISB) M Rammohan Rao who chaired the crucial board meeting where the buyout deal was cleared has been ‘informally advised’ by representatives of the government of Andhra Pradesh to quit the Satyam board. The board meeting on December 29 is to consider the prospects of buyback of shares of the company.

Sources aver that Rammohan Rao may reconsider his earlier decision of continuing on the board of Satyam. When asked by HNN about this, Rao said: “I am not taking any actions at the moment.” But significantly he added: “At the next board meeting there will be discussions, clarifications will be sought, then I will take it forward.”

Indications are that one of the independent directors, former cabinet secretary T R Prasad might aggressively question the company’s management policies at the next board meeting.

Prasad who as Union heavy industry secretary in 1996 crossed swords with Suzuki over the Maruti issue and also worked as chairman of the Maruti Udyog Limited, joined the Satyam board only in April 2007.

Sources say that Prasad would be pushed into taking a more active role in the Satyam’s affairs what with the company being looked at closely by the SEBI and the department of company affairs. “Having held the top most civil services position in the country, Prasad is well-placed to guide the company out of trouble at least domestically,” a highly-placed source said. In a Christmas gift, Satyam’s oldest director Mangalam Srinivasan -who had been on the board of the company since 1991- resigned taking moral responsibility for being part of the aborted deal. Analysts said that it was significant that 70-year-old Srinivasan – an academic in the US – resigned.

“She had been with Ramalinga Raju since Satyam Computers was merely four years old and the company had just got its first contract in USA. Her quitting has been a shocker for the Satyam supremo,” an analyst said.

The other independent directors on Satyam’s board include father of Pentium Vinod Dham and former director of IIT, Delhi, V S Raju. Sources say that Raju is not likely to quit the board but could not figure out what was on Dham’s mind. Vinod Dham came to Satyam’s board in January 2003 along with professor of Harvard Business School Krishna Palepu. But as per the definitions of the New York Stock Exchange (NYSE), Palepu does not qualify as an independent director of Satyam. This because, Palepu received compensation — that is over the threshold level — from Satyam for consultancy he provided.

Interestingly, it now transpires that Satyam has not met all the corporate governance norms of the NYSE. Specifically, the norms require the independent directors to meet periodically without the management directors and also have a corporate governance committee. But Satyam’s nine-member board observed both the norms in breach.

Satyam’s other board members include B Rama Raju, the managing director who is Ramalinga Raju’s brother and president of Satyam, Ram Mynampati.

Meanwhile, Andhra Pradesh government representatives said that though they had nothing to do with Satyam and its board members, the fact that the company is headquartered in the state and employs over 50,000 people was a matter of interest.

Quit all govt posts, RS MP tells Rammohan
Left MP Abani Roy has demanded the resignation of M Rammohan Rao, member (independent) of the board of Satyam Computer Services, from positions in various government and regulatory committees. Citing media reports, Roy, a Rajya Sabha MP has written a letter to Prime Minister Manmohan Singh saying: “His actions in the boardroom of Satyam further accentuated by his stoic silence on various issues reflect an irresponsible conduct on his part.” Rao is a member of the appointment and selection committees of various government and regulatory positions such as deputy governor of the Reserve Bank of India (RBI), chairman of Securities Exchange Board of India (Sebi) and chairman of the Telecom Regulatory Authority of India (Trai). “I believe unless his position and thereby the role he played as an independent director is cleared he should be immediately relieved of his responsibilities as member of the above selection committees,” Roy said. Of two independent directors on Satyam’s board, Mangalam Srinivasan has already resigned.

Exclusive: Beleaguered ‘Satyam’ Raju to Step Down?

By M H Ahssan

Stunned by the attacks from all sides, Satyam supremo Ramalinga Raju might offer to not to chair the crucial board meeting of the company on December 29 and even step down as the chairman of the company temporarily, highly-placed sources told HNN.

This development comes with pressure mounting on the independent directors to take moral responsibility for the aborted Satyam-Maytas deal that has led the company on a downward spiral. Dean of Indian School of Business (ISB) M Rammohan Rao who chaired the crucial board meeting where the buyout deal was cleared has been ‘informally advised’ by representatives of the government of Andhra Pradesh to quit the Satyam board. The board meeting on December 29 is to consider the prospects of buyback of shares of the company.

Sources aver that Rammohan Rao may reconsider his earlier decision of continuing on the board of Satyam. When asked by HNN about this, Rao said: “I am not taking any actions at the moment.” But significantly he added: “At the next board meeting there will be discussions, clarifications will be sought, then I will take it forward.”

Indications are that one of the independent directors, former cabinet secretary T R Prasad might aggressively question the company’s management policies at the next board meeting.

Prasad who as Union heavy industry secretary in 1996 crossed swords with Suzuki over the Maruti issue and also worked as chairman of the Maruti Udyog Limited, joined the Satyam board only in April 2007.

Sources say that Prasad would be pushed into taking a more active role in the Satyam’s affairs what with the company being looked at closely by the SEBI and the department of company affairs. “Having held the top most civil services position in the country, Prasad is well-placed to guide the company out of trouble at least domestically,” a highly-placed source said. In a Christmas gift, Satyam’s oldest director Mangalam Srinivasan -who had been on the board of the company since 1991- resigned taking moral responsibility for being part of the aborted deal. Analysts said that it was significant that 70-year-old Srinivasan – an academic in the US – resigned.

“She had been with Ramalinga Raju since Satyam Computers was merely four years old and the company had just got its first contract in USA. Her quitting has been a shocker for the Satyam supremo,” an analyst said.

The other independent directors on Satyam’s board include father of Pentium Vinod Dham and former director of IIT, Delhi, V S Raju. Sources say that Raju is not likely to quit the board but could not figure out what was on Dham’s mind. Vinod Dham came to Satyam’s board in January 2003 along with professor of Harvard Business School Krishna Palepu. But as per the definitions of the New York Stock Exchange (NYSE), Palepu does not qualify as an independent director of Satyam. This because, Palepu received compensation — that is over the threshold level — from Satyam for consultancy he provided.

Interestingly, it now transpires that Satyam has not met all the corporate governance norms of the NYSE. Specifically, the norms require the independent directors to meet periodically without the management directors and also have a corporate governance committee. But Satyam’s nine-member board observed both the norms in breach.

Satyam’s other board members include B Rama Raju, the managing director who is Ramalinga Raju’s brother and president of Satyam, Ram Mynampati.

Meanwhile, Andhra Pradesh government representatives said that though they had nothing to do with Satyam and its board members, the fact that the company is headquartered in the state and employs over 50,000 people was a matter of interest.

Quit all govt posts, RS MP tells Rammohan
Left MP Abani Roy has demanded the resignation of M Rammohan Rao, member (independent) of the board of Satyam Computer Services, from positions in various government and regulatory committees. Citing media reports, Roy, a Rajya Sabha MP has written a letter to Prime Minister Manmohan Singh saying: “His actions in the boardroom of Satyam further accentuated by his stoic silence on various issues reflect an irresponsible conduct on his part.” Rao is a member of the appointment and selection committees of various government and regulatory positions such as deputy governor of the Reserve Bank of India (RBI), chairman of Securities Exchange Board of India (Sebi) and chairman of the Telecom Regulatory Authority of India (Trai). “I believe unless his position and thereby the role he played as an independent director is cleared he should be immediately relieved of his responsibilities as member of the above selection committees,” Roy said. Of two independent directors on Satyam’s board, Mangalam Srinivasan has already resigned.

Mumbai’s Tycoons Enjoy a Good Life in Super Luxury Yachts

By Swati Sharma

Anil Ambani placing an order for a Rs 200- crore super luxury yacht for his wife Tina has brought the spotlight back on the latest obsession of Mumbai’s rich and the famous. The irony is that none of the owners of these new symbols of uber luxury knows how to drive these yachts, and they’ve no parking space in India, for the country is yet to get a marina for private boats.

The race to own luxury yachts was kick- started by liquor baron Vijay Mallya in 1998, when he moored the 50- metre yacht Kalizma , earlier owned by Hollywood star Richard Burton, outside Gateway of India in Mumbai.

He now owns the 95- metre Empress of India , which, according to PowerAndMotorYacht. com, is powered by three 10,000- horsepower engines. He bought the supersleek yacht from a Qatari sheikh for what the website estimates to be Rs 575 crore. It first made headlines when Mallya hosted the entire F1 top brass led by Bernie Ecclestone for a party off the coast of Monaco.

The double- deck ‘ flybridge’ boat reportedly houses Mallya’s personal art collection, which includes a Renoir, a Chagall and a very large Husain. Each room offers extensive sea views and bathrooms have gold furnishings. The private deck has a jacuzzi that opens out into the sea.

Gautam Singhania of the Raymond textile chain got over 200 shipwrights to handcraft the Ashena , a 153- foot, tri- deck power yacht with a Burmese teak hull. It took five years to be built. But within two years of it officially becoming Singhania’s floating party zone in 2006, it is reportedly up for sale.

Luxury yacht companies are already scenting an opportunity.

Their enthusiasm was evident at this year’s Mumbai International Boat Show, where more than 120 international brands ( from Ferretti, the Ferrari of the yachting world, to Fairline and Sorenstam Ventures) vied for the attention of people like Jimmy Mistry, a collector of super bikes and big cars, who has acquired a super high- speed Sea Ray 175 Sport. Industrialist Rahul Bajaj also owns one of the beauties that fly on the waves.

Anju Dutta of Marine Solutions, the company that represents Ferretti in India, says India may be at the base of the curve for the yacht market, but it promises to grow in the same way as luxury car models. “ Oldfashioned business tycoons did not believe in flaunting their wealth, but that is no longer true of the present generation,” says Dutta. “ They believe in showing off and not everyone can afford a luxury yacht, so owning one gives them membership of an exclusive club.” Dutta’s company has sold 80 yachts in the past seven years, but they are not anywhere as expensive as the super luxury boat that Mallya owns. The Ferrettis are in the range of Rs 5.5 crore to Rs 90 crore, but the cost can touch the sky if the fittings and embellishments are as lavish as those favoured by Mallya.

Ferretti’s Indian owners include Sunny Dewan Wadhawan, managing director of the real estate development firm, HDIL, who snapped up one for Rs 57 crore.

Godrej Group CEO Adi Godrej has a Ferretti 592, a flybridge yacht that can house up to 60 people and is fitted with the ultra- expensive Frau leather.

THE PRIVILEGE of owning the country’s first Ferretti belongs to Vinod Mittal, younger brother of steel tycoon Lakshmi Mittal, who acquired the yacht in 2001, the year Marine Solutions set shop in Mumbai.

UK- based Lakshmi Mittal owns the 262- metre Amevi , which is moored near his Mediterranean home. India, Norway, Gibraltar and Spain were among the stops Amevi made last summer. Mittal reportedly paid Rs 1,000 crore for the vessel, which includes a pool, gym and movie theatre.

Not everyone, though, is impressed by the way the market is growing. Shakeel Kudrolli of Aquasail Distribution Co., feels the market will have to move out of its obsession with luxury yachts. “ It’s a fad the market can’t sustain as India does not have a marina, nor does it have workshops for repairs and maintenance,” says Kudrolli.

These considerations aren’t stopping India’s richest from scouting for luxury yachts, for they can always dock their boats off Dubai or Monaco.

Krisshwa the first Bhojpuri Superhero

By Giridhar Jha

BHOJPURI cinema hero is flying high. Well, literally!

Forget the country bumpkins in dhotis riding bullock carts on dusty roads as leading men of the cow belt cinema.

It has its own Superman now.

If Krissh was the first flying superhero of Hindi cinema, he will now don the avatar of ‘ Krisshwa’ for Bhojpuri films.

Vinay Anand, nephew of Bollywood actor Govinda, is playing Krisshwa in a forthcoming Bhojpuri film called Jaade Mein Balmaa Pyara Laage that will release in February.

Krisshwa is a desi ( indigenous) superhero modelled on Hrithik Roshan’s title role of Hindi blockbuster Krissh . Just like Krissh, Krisshwa flies and also rescues a damselin- distress — Mona Lisa, who plays the female lead in the film.

Anand insists his latest flick is not a copy of Rakesh Roshan’s superhit film. “ We have not plagiarised the theme of Krissh ,” Anand said.

“ We have only retained the look of the mask- wearing character.” Apart from the lead pair, Bali, Gurlin Chopra, Dev Malhotra and Sambhavana Seth also play stellar roles in the film which is produced by Mukesh Kumar.

Anand said he was pleasantly surprised when he was first told about the character and its look.

“ This is an entirely new concept in Bhojpuri films,” he said. “ I am confident this movie will turn out to be a blockbuster in the Bhojpuri cinema like Krissh became in Bollywood.” Anand, who has acted in a few Hindi movies such as Tabu- starrer Aamdani Atthani Kharcha Rupaiya , T. Ramarao’s Soutela and Rajat Rawail’s Dil Ne Phir Yaad Kiya , said the idea behind creating a Superman- like character was to introduce the Bhojpuri cinema audience to a different kind of entertainment.

“ We have used a lot of special effects in the film, which the Bhojpuri audience has not seen before,” he said. “ I firmly believe that they should also have exposure to variations in their films.” Being made under the banner of MKG Films, Jaade Mein Balmaa Pyara Laage is being directed by Mukesh K. Dev.

The film, however, does not revolve around the Krissh- like character alone. “ This character appears in different sequences which, I am sure, will appeal to the audience,” Anand said. “ I am not supposed to reveal more about the film before it is released.” Anand, who has acted in about 20 Bhojpuri movies over the past three years, believes that the audience in Bihar, in particular, will relate more to the character, who symbolises the triumph of good over evil.

“ The character annihilates criminals and raises consciousness of the common man to fight for their rights.

He is like someone that the crime- prone Bihar needs,” the actor said.

Though Krisshwa will be the first Bhojpuri superhero, Jaade Mein Balmaa Pyara Laage is not the first tryst of the Bhojpuri audience with a superhero. Last year, they had the experience of watching Spiderman 3 dubbed in Bhojpuri.

Popular Bhojpuri star Ravi Kissen had dubbed the dialogues of the lead actor, Tobey Maguire. The dubbed version of the Hollywood film was released in Bihar and many other Bhojpuri- speaking places across the country.

Kissen was so inspired by his Bhojpuri dubbing for the film that he announced to make a film in which the main protagonist would be a physically challenged man who would fly like Spiderman with the blessings of Lord Hanuman.

“ The superhero of my film will not be seen in an underwear over his costume.

He will rather fly in a dhoti because he has to be the Bhojpuria Spiderman,” Kissen had said.

Kissen’s ambitious venture is yet to hit the screens. Anand has pipped him to the post and is ready to fly high as Krisshwa.

Krisshwa the first Bhojpuri Superhero

By Giridhar Jha

BHOJPURI cinema hero is flying high. Well, literally!

Forget the country bumpkins in dhotis riding bullock carts on dusty roads as leading men of the cow belt cinema.

It has its own Superman now.

If Krissh was the first flying superhero of Hindi cinema, he will now don the avatar of ‘ Krisshwa’ for Bhojpuri films.

Vinay Anand, nephew of Bollywood actor Govinda, is playing Krisshwa in a forthcoming Bhojpuri film called Jaade Mein Balmaa Pyara Laage that will release in February.

Krisshwa is a desi ( indigenous) superhero modelled on Hrithik Roshan’s title role of Hindi blockbuster Krissh . Just like Krissh, Krisshwa flies and also rescues a damselin- distress — Mona Lisa, who plays the female lead in the film.

Anand insists his latest flick is not a copy of Rakesh Roshan’s superhit film. “ We have not plagiarised the theme of Krissh ,” Anand said.

“ We have only retained the look of the mask- wearing character.” Apart from the lead pair, Bali, Gurlin Chopra, Dev Malhotra and Sambhavana Seth also play stellar roles in the film which is produced by Mukesh Kumar.

Anand said he was pleasantly surprised when he was first told about the character and its look.

“ This is an entirely new concept in Bhojpuri films,” he said. “ I am confident this movie will turn out to be a blockbuster in the Bhojpuri cinema like Krissh became in Bollywood.” Anand, who has acted in a few Hindi movies such as Tabu- starrer Aamdani Atthani Kharcha Rupaiya , T. Ramarao’s Soutela and Rajat Rawail’s Dil Ne Phir Yaad Kiya , said the idea behind creating a Superman- like character was to introduce the Bhojpuri cinema audience to a different kind of entertainment.

“ We have used a lot of special effects in the film, which the Bhojpuri audience has not seen before,” he said. “ I firmly believe that they should also have exposure to variations in their films.” Being made under the banner of MKG Films, Jaade Mein Balmaa Pyara Laage is being directed by Mukesh K. Dev.

The film, however, does not revolve around the Krissh- like character alone. “ This character appears in different sequences which, I am sure, will appeal to the audience,” Anand said. “ I am not supposed to reveal more about the film before it is released.” Anand, who has acted in about 20 Bhojpuri movies over the past three years, believes that the audience in Bihar, in particular, will relate more to the character, who symbolises the triumph of good over evil.

“ The character annihilates criminals and raises consciousness of the common man to fight for their rights.

He is like someone that the crime- prone Bihar needs,” the actor said.

Though Krisshwa will be the first Bhojpuri superhero, Jaade Mein Balmaa Pyara Laage is not the first tryst of the Bhojpuri audience with a superhero. Last year, they had the experience of watching Spiderman 3 dubbed in Bhojpuri.

Popular Bhojpuri star Ravi Kissen had dubbed the dialogues of the lead actor, Tobey Maguire. The dubbed version of the Hollywood film was released in Bihar and many other Bhojpuri- speaking places across the country.

Kissen was so inspired by his Bhojpuri dubbing for the film that he announced to make a film in which the main protagonist would be a physically challenged man who would fly like Spiderman with the blessings of Lord Hanuman.

“ The superhero of my film will not be seen in an underwear over his costume.

He will rather fly in a dhoti because he has to be the Bhojpuria Spiderman,” Kissen had said.

Kissen’s ambitious venture is yet to hit the screens. Anand has pipped him to the post and is ready to fly high as Krisshwa.

Mumbai Still a Ashok Chavan’s Vulnerable City

By Seema Kamdar

Private entities ramp up security but govt yet to devise foolproof plan to protect city

A month after the Mumbai carnage, you can still enter the city’s municipal corporation building without having your bag checked and walk right into the mayor’s office.

You can even enter Mantralaya without being asked about the large plastic bag in your purse, or walk into JJ Hospital and no one will stop you for your identification.

The scars of November 26- 28 are visible. The hurt remains but Mumbai has typically bounced back. Yet the lessons from the three horrific days in November may not have been fully learnt. The gaps in the city’s security cover have not been plugged.

Look around you, and you will find there are more policemen around now. On the ground, though, real change has not come about – where intelligence gathering and sharing are concerned, where coordination among security agencies is concerned.

Taking no chances, private entities have stepped in to secure areas under their control. Even as most government buildings and other installations still have poor security, many hotels in Mumbai have initiated steps to

prevent a repeat of the November 26 events.

The Taj Mahal hotel, for instance, is using private security companies to build an elaborate security wall around its premises. Armed guards are strategically positioned on the fourth floor balcony on all sides. At least five private security personnel guard the two main roads leading up to the hotel.

The hotel’s main entrance has two armed Black Cat commandos. At the Gateway of India entrance is a police van with eight police officers.

Inside the hotel, 70 CCTV security cameras monitor the public spaces. More will be installed soon. The live feed directly goes to the Anti- Terrorism Squad ( ATS) control room.

The Trident has a similar set- up. Hotel staff and private security guards man the barricaded entrance where no cars are allowed unless you have reservation. There are beat policemen stationed at all times, but they have no weapons.

At the Taj Land’s End in Bandra, which is close to actor Shah Rukh Khan’s bungalow Mannat, the security is extremely tight. All public and private transport vehicles are told stop at a distance from the hotel. Private security guards are stationed along the way.

The hotel itself has multiple layers of security operated by both hotel staff and private security agencies. This contrasts with what the state government has done for the common man. At the first meeting of his cabinet, chief minister Ashok Chavan approved a 127- crore plan for security that was hailed as a step in the right direction. Insiders, however, punctured this claim as an eyewash because this was a routine outlay for this year in a five- year plan already in place.

According to the plan to beef up the police force, 11,000 policemen should be added to the state police every year. This implies that around 110 crore out of Rs 127 crore will towards the salaries of the new recruits this year. How then will the government fund the setting up of a crack security system to make India’s financial capital secure? Another lesson that has not been learnt from the November attacks: intelligence intercepts continue to be ignored at the respective action stations.

The reason, argues a state government official, is that “ nine out of ten inputs are routine or redundant”. But just such an approach caused the specific intelligence inputs on Leopold Cafe, the Chhatrapati Shivaji Terminus, the Taj Mahal Hotel and the Oberoi to be ignored, allowing the terrorists to attack the city.

If there are gaps in inland security, there is a lot to be firmed up in coastal security. Had anyone asked, they would have learnt one shocking detail: Mumbai’s coastline is manned by only five patrol boats.

Chief minister Chavan has announced his government will acquire 40 speedboats for patrolling.

Like the Rs 127 crore plan to beef up the security apparatus, this too is a dusted- up scheme which was part a larger central coastal security plan that had been neglected for two years.

From the look of it, the government would rather go ahead with plans that have been in cold storage for years — such as a fresh move to issue smart cards to 50,000 fishermen.

This long- pending scheme, again, doesn’t address the lacunae, like giving permission to fishermen to take outsiders on their trawlers without identification.

Sources said at present a pass is issued in a fisherman’s name and then the number of people being ferried by him is added on the pass. No names were given or identification sought. “ As it is, in the absence of proper regulation, all kinds of people drift into the city’s waters for fishing, some even from Bangladesh,” a coastal defence officer said.

The string of private ports and jetties coming up along the 720- km coastline of the state have no security.

One view is they are a security concern. But, the earlier Vilasrao Deshmukh government wooed them against the advice of security agencies. In fact, Deshmukh is believed to have once brushed aside the warnings of a naval officer that the small stretches of Maharashtra’s coastline should not be marketed to private parties.

Now, about 1,740 m of the waterfront at Dharamtar is to be given to Ispat Industries for “ development of a self- controlled jetty”. Initial approval has been given to another company for setting up a captive jetty at Dehra creek in Sindhudurg district, sources said.

Unlike Nhava Sheva port, Mumbai Port — which controls a vast network of roads in south Mumbai, apart from sensitive rigs and installations — refuses to hand over its security to the Central Industrial Security Force ( CISF) after years of debate. Intelligence agencies have found its internal security system to be inadequate.

Mumbai Still a Ashok Chavan’s Vulnerable City

By Seema Kamdar

Private entities ramp up security but govt yet to devise foolproof plan to protect city

A month after the Mumbai carnage, you can still enter the city’s municipal corporation building without having your bag checked and walk right into the mayor’s office.

You can even enter Mantralaya without being asked about the large plastic bag in your purse, or walk into JJ Hospital and no one will stop you for your identification.

The scars of November 26- 28 are visible. The hurt remains but Mumbai has typically bounced back. Yet the lessons from the three horrific days in November may not have been fully learnt. The gaps in the city’s security cover have not been plugged.

Look around you, and you will find there are more policemen around now. On the ground, though, real change has not come about – where intelligence gathering and sharing are concerned, where coordination among security agencies is concerned.

Taking no chances, private entities have stepped in to secure areas under their control. Even as most government buildings and other installations still have poor security, many hotels in Mumbai have initiated steps to

prevent a repeat of the November 26 events.

The Taj Mahal hotel, for instance, is using private security companies to build an elaborate security wall around its premises. Armed guards are strategically positioned on the fourth floor balcony on all sides. At least five private security personnel guard the two main roads leading up to the hotel.

The hotel’s main entrance has two armed Black Cat commandos. At the Gateway of India entrance is a police van with eight police officers.

Inside the hotel, 70 CCTV security cameras monitor the public spaces. More will be installed soon. The live feed directly goes to the Anti- Terrorism Squad ( ATS) control room.

The Trident has a similar set- up. Hotel staff and private security guards man the barricaded entrance where no cars are allowed unless you have reservation. There are beat policemen stationed at all times, but they have no weapons.

At the Taj Land’s End in Bandra, which is close to actor Shah Rukh Khan’s bungalow Mannat, the security is extremely tight. All public and private transport vehicles are told stop at a distance from the hotel. Private security guards are stationed along the way.

The hotel itself has multiple layers of security operated by both hotel staff and private security agencies. This contrasts with what the state government has done for the common man. At the first meeting of his cabinet, chief minister Ashok Chavan approved a 127- crore plan for security that was hailed as a step in the right direction. Insiders, however, punctured this claim as an eyewash because this was a routine outlay for this year in a five- year plan already in place.

According to the plan to beef up the police force, 11,000 policemen should be added to the state police every year. This implies that around 110 crore out of Rs 127 crore will towards the salaries of the new recruits this year. How then will the government fund the setting up of a crack security system to make India’s financial capital secure? Another lesson that has not been learnt from the November attacks: intelligence intercepts continue to be ignored at the respective action stations.

The reason, argues a state government official, is that “ nine out of ten inputs are routine or redundant”. But just such an approach caused the specific intelligence inputs on Leopold Cafe, the Chhatrapati Shivaji Terminus, the Taj Mahal Hotel and the Oberoi to be ignored, allowing the terrorists to attack the city.

If there are gaps in inland security, there is a lot to be firmed up in coastal security. Had anyone asked, they would have learnt one shocking detail: Mumbai’s coastline is manned by only five patrol boats.

Chief minister Chavan has announced his government will acquire 40 speedboats for patrolling.

Like the Rs 127 crore plan to beef up the security apparatus, this too is a dusted- up scheme which was part a larger central coastal security plan that had been neglected for two years.

From the look of it, the government would rather go ahead with plans that have been in cold storage for years — such as a fresh move to issue smart cards to 50,000 fishermen.

This long- pending scheme, again, doesn’t address the lacunae, like giving permission to fishermen to take outsiders on their trawlers without identification.

Sources said at present a pass is issued in a fisherman’s name and then the number of people being ferried by him is added on the pass. No names were given or identification sought. “ As it is, in the absence of proper regulation, all kinds of people drift into the city’s waters for fishing, some even from Bangladesh,” a coastal defence officer said.

The string of private ports and jetties coming up along the 720- km coastline of the state have no security.

One view is they are a security concern. But, the earlier Vilasrao Deshmukh government wooed them against the advice of security agencies. In fact, Deshmukh is believed to have once brushed aside the warnings of a naval officer that the small stretches of Maharashtra’s coastline should not be marketed to private parties.

Now, about 1,740 m of the waterfront at Dharamtar is to be given to Ispat Industries for “ development of a self- controlled jetty”. Initial approval has been given to another company for setting up a captive jetty at Dehra creek in Sindhudurg district, sources said.

Unlike Nhava Sheva port, Mumbai Port — which controls a vast network of roads in south Mumbai, apart from sensitive rigs and installations — refuses to hand over its security to the Central Industrial Security Force ( CISF) after years of debate. Intelligence agencies have found its internal security system to be inadequate.

Incredible India on an Online Overdrive

By Pratul Sharma

The Tourism ministry will launch an online media campaign to attract foreign tourists who have been shying away from coming to the country after the 26/ 11 terror attack.

The ministry decided to launch the campaign on country- specific web portals after the success of hosting video clips of Incredible India on popular website YouTube . The campaign will promote India as a safe destination.

The government, which has already announced 2009 as Visit India Year, believes the next year would be tough for the industry, which is feeling the heat after the terror attacks in Mumbai and the recession.

The move came after major players in the tourism industry asked the government to aggressively market Brand India abroad. Officials said the online campaign will be comprehensive, covering major portals and websites in the countries that register the maximum visits in India.

“ This year, the thrust has been on selecting region- specific portals. Some of the portals which will be featured in the current campaign are project India as a safe destination MSN , Yahoo, Google, orange. fr , t- online, libero.com, baidu.com, zuji.com, news. com. au, khaleejtimes.com, wallstreetjournal.com .

The campaign will stress on how large India is geographically and would highlight its varied products,” said an official.

The ministry currently has seven international media campaigns running in Europe, Americas and Asia Pacific.

Some of the important publications covered under the print media campaign include the Financial Times , Economist and Sunday Magazine in Australia; China Daily; News Week Asia, Nikki Business Magazine in Japan; Sunday Times in the UK; Le Monde in France; Geo Magazine in Germany; Travel & Leisure and Conde Nast Traveller in the US; and Proxima Viagem in Brazil.

Under the Visit India Year, foreign tourists would get free holiday packages for 2010 and 2011. The ministry is also working on special packages on rural India, eco- tourism, and adventure tourism.

Officials claimed the tourism offices overseas have also been advised to liaise with the media and travel trade in their respective regions and examine the possibility of organising familiarisation tours to Mumbai and other regions of the country.

Editorial: Long War Demands Changed Approach

By M H Ahssan

A week is a long time in a crisis. Last week I wrote about how war should not be our first response and that the India- Pakistan military balance was such that there could be no useful outcome from the use of force. I had argued that if we set out to give Pakistan a bloody nose, we could be bloodied too.

There were three assumptions behind my reasoning. The first was that the government of Pakistan, including its armed forces, were sincere when they said they were appalled by the Mumbai massacre and that they would do everything to help us to get to the bottom of the issue. The second, flowing from the first, was that Mr Zardari and his government were one with India in delivering a bloody nose to the terrorists and non- state actors operating in Pakistan. The third was that India was not keen on any option that could involve some loss to itself.

A week later, it seems that all three of my assumptions were wrong. Pakistan has decided to brazen it out.

After having gone through the motions of proscribing the Jamaatud- dawa ( because of the UN Security Council decision and not to oblige India, as their Minister of Defence insists), the enthusiasm to aid India has vanished. It has been replaced by a systematic and organized campaign of barracking, whose goal seems to be to protect those involved in the attacks by raising the spectre of war.

India’s Prime Minister correctly noted on Tuesday that “ the issue is not war, it is terror and territory in Pakistan being used to promote, aid and abet terror here.” Significantly, the PM noted that “ non- state actors were practicing terrorism, aided and abetted by state establishments.” To me it appears he is saying that the Lashkar were aided by the Pakistan Army’s Inter- Services Intelligence ( ISI) Directorate.

Dynamics
This seems to have a startling confirmation from across the border in Pakistan. One of the most telling responses has been from the real boss of Pakistan — General Pervez Ashfaq Kayani. In the past month, neither he nor the Pakistani military establishment has uttered a single word regretting the Mumbai massacre.

The ISI, which has been mentioned as a co- conspirator, reports to General Kayani. The general could have taken the opportunity to tell the world that since the ISI was mentioned, he had personally looked at the records and could assure everyone that his organization was in no way involved in the horrific event.

But he has said nothing to that effect. Instead, he has blustered about how Pakistan was prepared for war and that the Pakistani armed forces would mount “ an equal response within minutes” if India carried out any kind of strike. This seems to be the behaviour of a cornered guilty party, rather than that of one who has nothing on his or his institution’s conscience.

So, the government in New Delhi is faced with little option but to contemplate a chastisement strategy that could cost India some. But the mood in the country is such that the government would pay a higher price for doing nothing. In other words, it has the public backing for the use of any measure that would send a message to Pakistan that enough is enough.

In my article, I had expressed my hypothesis that the attack had been initiated by elements in the Pakistan army. I still think this is correct. At its lowest point in history, and faced with a debilitating war against people of their own ilk, the ISI came up with the terrible strategy of attacking India and provoking an Indian response. Two months ago, Asif Zardari and his civilian government were riding high; today they have tamely lined up behind Kayani and are hiding behind the national flag.

There is an important subsidiary reason why the international community needs to take the Mumbai massacre very seriously. Terrorist organisations have an internal dynamic. These are dependent on successful operations which enable them to expand their area of influence and boost recruitment. It is important to disrupt this process either by unearthing underground cells by arrest, choking funds, or by military action that targets their overground infrastructure like camps.

If India does not react adequately to the Mumbai strikes, the Lashkar will be tempted to step its attacks up to a higher and presumably more horrifying level. The logic here is that after being formally banned in Pakistan in January 2002, the ISI relocated Lashkar camps to Azad Kashmir.

Simultaneously, it began to use its Bangladeshi proxies and other assets to create the “ Indian Mujahideen” who would be Indian recruits, using local material to make bombs, but under the command and control of the ISI.

Mumbai
But the serial bombing campaign across Indian cities in the past few years has not yielded much return.

There have been no communal riots or signs that India has been seriously hurt economically. Besides their ability to plant the bombs, the IM achieved little in terms of jihadi goals.

This could have been the trigger for the Mumbai attack. And as the logic goes, Mumbai has united rather than disunited the nation, and so there is a need to press home the idea of an even more intense strike. India needs to break these dynamics, and it can do so with the help of the government of Pakistan and the international community.

Pathology
But if this help is not forthcoming, it must go it alone. The price of failure will be an even higher intensity of attacks and could well culminate in the use of nuclear weapons as well. Don’t forget, these are supposed to be in the custody of the Pakistan Army.

A month after the Mumbai strike, we have the strange situation where Pakistan has seized the mantle of victimhood. The issue, according to its leaders, is not that of a terrorist strike struck at a premier metropolis of a neighbour, killing nearly 200 people, injuring hundreds and terrorizing thousands, whose origins are in Pakistan, but that that neighbour is now allegedly threatening military action against Pakistan.

There is a strange pathology at work here and New Delhi needs to carefully feel its way towards a response. But being careful does not necessarily mean that it should be indecisive. It should not to be pushed to military action, but it should not rule it out either.

The issue should be seen from the perspective of the outcome. At present there is nothing more important than ending the dynamic of terrorist violence in the country. One part of this requires an internal response in terms of institutions, doctrines and action. The other part is external.

India has been found wanting in both because it has so far seen terrorist attacks as episodic distractions.

The unfortunate reality is that we are in the midst of a long war which requires changed strategies and tactics. The sooner we begin to act on this realisation, the better.

Editorial: Long War Demands Changed Approach

By M H Ahssan

A week is a long time in a crisis. Last week I wrote about how war should not be our first response and that the India- Pakistan military balance was such that there could be no useful outcome from the use of force. I had argued that if we set out to give Pakistan a bloody nose, we could be bloodied too.

There were three assumptions behind my reasoning. The first was that the government of Pakistan, including its armed forces, were sincere when they said they were appalled by the Mumbai massacre and that they would do everything to help us to get to the bottom of the issue. The second, flowing from the first, was that Mr Zardari and his government were one with India in delivering a bloody nose to the terrorists and non- state actors operating in Pakistan. The third was that India was not keen on any option that could involve some loss to itself.

A week later, it seems that all three of my assumptions were wrong. Pakistan has decided to brazen it out.

After having gone through the motions of proscribing the Jamaatud- dawa ( because of the UN Security Council decision and not to oblige India, as their Minister of Defence insists), the enthusiasm to aid India has vanished. It has been replaced by a systematic and organized campaign of barracking, whose goal seems to be to protect those involved in the attacks by raising the spectre of war.

India’s Prime Minister correctly noted on Tuesday that “ the issue is not war, it is terror and territory in Pakistan being used to promote, aid and abet terror here.” Significantly, the PM noted that “ non- state actors were practicing terrorism, aided and abetted by state establishments.” To me it appears he is saying that the Lashkar were aided by the Pakistan Army’s Inter- Services Intelligence ( ISI) Directorate.

Dynamics
This seems to have a startling confirmation from across the border in Pakistan. One of the most telling responses has been from the real boss of Pakistan — General Pervez Ashfaq Kayani. In the past month, neither he nor the Pakistani military establishment has uttered a single word regretting the Mumbai massacre.

The ISI, which has been mentioned as a co- conspirator, reports to General Kayani. The general could have taken the opportunity to tell the world that since the ISI was mentioned, he had personally looked at the records and could assure everyone that his organization was in no way involved in the horrific event.

But he has said nothing to that effect. Instead, he has blustered about how Pakistan was prepared for war and that the Pakistani armed forces would mount “ an equal response within minutes” if India carried out any kind of strike. This seems to be the behaviour of a cornered guilty party, rather than that of one who has nothing on his or his institution’s conscience.

So, the government in New Delhi is faced with little option but to contemplate a chastisement strategy that could cost India some. But the mood in the country is such that the government would pay a higher price for doing nothing. In other words, it has the public backing for the use of any measure that would send a message to Pakistan that enough is enough.

In my article, I had expressed my hypothesis that the attack had been initiated by elements in the Pakistan army. I still think this is correct. At its lowest point in history, and faced with a debilitating war against people of their own ilk, the ISI came up with the terrible strategy of attacking India and provoking an Indian response. Two months ago, Asif Zardari and his civilian government were riding high; today they have tamely lined up behind Kayani and are hiding behind the national flag.

There is an important subsidiary reason why the international community needs to take the Mumbai massacre very seriously. Terrorist organisations have an internal dynamic. These are dependent on successful operations which enable them to expand their area of influence and boost recruitment. It is important to disrupt this process either by unearthing underground cells by arrest, choking funds, or by military action that targets their overground infrastructure like camps.

If India does not react adequately to the Mumbai strikes, the Lashkar will be tempted to step its attacks up to a higher and presumably more horrifying level. The logic here is that after being formally banned in Pakistan in January 2002, the ISI relocated Lashkar camps to Azad Kashmir.

Simultaneously, it began to use its Bangladeshi proxies and other assets to create the “ Indian Mujahideen” who would be Indian recruits, using local material to make bombs, but under the command and control of the ISI.

Mumbai
But the serial bombing campaign across Indian cities in the past few years has not yielded much return.

There have been no communal riots or signs that India has been seriously hurt economically. Besides their ability to plant the bombs, the IM achieved little in terms of jihadi goals.

This could have been the trigger for the Mumbai attack. And as the logic goes, Mumbai has united rather than disunited the nation, and so there is a need to press home the idea of an even more intense strike. India needs to break these dynamics, and it can do so with the help of the government of Pakistan and the international community.

Pathology
But if this help is not forthcoming, it must go it alone. The price of failure will be an even higher intensity of attacks and could well culminate in the use of nuclear weapons as well. Don’t forget, these are supposed to be in the custody of the Pakistan Army.

A month after the Mumbai strike, we have the strange situation where Pakistan has seized the mantle of victimhood. The issue, according to its leaders, is not that of a terrorist strike struck at a premier metropolis of a neighbour, killing nearly 200 people, injuring hundreds and terrorizing thousands, whose origins are in Pakistan, but that that neighbour is now allegedly threatening military action against Pakistan.

There is a strange pathology at work here and New Delhi needs to carefully feel its way towards a response. But being careful does not necessarily mean that it should be indecisive. It should not to be pushed to military action, but it should not rule it out either.

The issue should be seen from the perspective of the outcome. At present there is nothing more important than ending the dynamic of terrorist violence in the country. One part of this requires an internal response in terms of institutions, doctrines and action. The other part is external.

India has been found wanting in both because it has so far seen terrorist attacks as episodic distractions.

The unfortunate reality is that we are in the midst of a long war which requires changed strategies and tactics. The sooner we begin to act on this realisation, the better.

ONGC’s Lavish Meet

By Ajmer Singhs

The PSU splurges on oil honchos & their families at strategic meetings

Throwing the government’s orders on austerity to the winds, cash- rich Oil and Natural Gas Corporation (ONGC) has been splurging on beauty treatments and massages for oil honchos and their spouses during strategy meets.

In the past three months, former and serving petroleum ministry officials and ONGC honchos went for brainstorming sessions on oil security needs to exotic super luxury destinations in Rishikesh and Kovalam. Both meetings were spiced up with ayurvedic massages and unlimited supplies of top- of- the line Scotch whisky for the invitees. On both occasions, ONGC played gracious host and picked up the bills.

On November 21, ONGC chartered a Kingfisher aircraft to airlift 40 former CMDs, directors and their spouses, and spent about Rs 1 crore on their travel, hotel stay and beauty treatment at the five- star deluxe Leela Kovalam Beach Resort in Kovalam. About Rs 25 lakh was spent on the chartered flight.

During another such two- day conference held on September 25, petroleum ministry officials blew up tax payers’ money at the world famous Ananda in the Himalayas, a spa at Rishikesh.

The ministry brass stayed at this resort, where tariff for a plush villa with a private swimming pool could go up to Rs 1 lakh a day. About Rs 1 crore was spent on their travel, stay, and other expenses such as premium Scotch whisky and ayurvedic rejuvenation therapies.

The lavish expenses were cleared in the name of ‘ strategic meets’ — an annual affair to discuss and devise strategy and the country’s oil needs, said ONGC officials.

ONGC figures in the Fortune 500 global list but its profits have been dipping. According to the unaudited financial results ( provisional) for the quarter ended September 30, 2008, the net profit after taxes was Rs 4,808 crore.

But, for the quarter ended June 30, 2008, the net profit after taxes was Rs 6,592 crore, showing a drop of about Rs 1,784 crore.

ONGC chairman and managing director R. S. Sharma, who was present at these meets, said: “ It is a company with a Rs 60,000- crore turnover and if a strategic meet is organised where a few lakhs, or even a crore is spent, it is not wasteful expenditure but a long- term investment.” But what about the Prime Minister’s prescribed austerity drive? “ We have convened a meeting for which a draft resolution is ready. Austerity measures will be taken and expenses curtailed,” he said.

Union petroleum secretary R. S. Pandey spent three nights at a luxury villa at the resort, offered at a discounted rate of Rs 58,000 a night. He ran up a bill of Rs 1.95 lakh on his stay, entertainment and massage. V. K. Diwangan, director ( exploration) in the ministry, blew up Rs 90,000 in three days. The tab was picked up by ONGC. ONGC’s director D. K. Pandey spent around Rs 95,000 during his stay at Ananda Spa but CMD R. S. Sharma settled the bill at Rs 75,000.

Some bureaucrats went in for exfoliation sessions, a cosmetic procedure to remove dead skin cells from the face and body using jasmine salt scrubs, wild rose salt glows, ancient Indian honey and sandalwood rubs.

Liquor flowed like water during the stay. The bill for liquor, which included Johnny Walker Black Label added up to Rs 6.34 lakh.

Apart from ONGC’s CMD and board members, those who participated in these brainstorming sessions were the secretaries in the petroleum ministry S. Sundareshan (spent Rs 78,000) and P. K. Sinha (spent Rs 39,000), special secretary Sindushri Khulla, joint secretaries Sunil Jain and D. N. Narsimha Raju (spent Rs 80,000) and petroleum minister Murli Deora’s personal secretary Sanjiv Kumar (spent Rs 80,000).

For the strategy meet at the Leela resort in Kovalam from November 21 to November 23, inquiries revealed that around Rs 42 lakh was spent on hotel stay, entertainment and food.

About Rs 2 lakh was spent on massages and another Rs 2 lakh on liquor.

Apart from Sharma, those who attended the meeting — for which the invitees were allowed to bring their spouses along — were former CMDs Subir Raha, Col S. P. Wahi, S. K. Manglik, B. C. Bora and L. L. Bhandari.

A department of public enterprises (DPE) “ guideline on expenditure management — fiscal prudence and austerity” mentions that utmost austerity should be observed in organising conferences, seminars or workshops.

But, minister of state for petroleum and natural gas Dinsha J. Patel and top ministry bureaucrats have been splurging at five- star hotels on ONGC’s account and misusing government vehicles.

When Patel visits his hometown, Nadiad in Gujarat, ONGC provides him airconditioned vehicles for his family and staff.

Records show that on at least 50 occasions in the last six months, ONGC hired Toyota Innovas, Taveras and Ford Ikons for Patel and his family, the bills for which added up to Rs 2 lakh.

Patel admitted that he occasionally took vehicles from ONGC. However, he declined to comment on the lavish expenditure of his ministry officials.

The PSU has reimbursed the hotel bills of the petroleum and natural gas ministry officials.

Diwangan alone accounted for Rs 4.5 lakh in the past nine months for staying at the country’s top hotels.

Petroleum secretary M. S. Srinivasan also ran up high bills on his hotel stays. His bill for staying at The Oberoi in Mumbai from January 6 to 8, this year was Rs 95,000. He stayed twice at the Taj Lands End, spending Rs 82,000, while for his accommodation at Taj Coromandel, ONGC shelled out Rs 27000.

CMD Sharma insisted it was normal to spend extra on bureaucrats. “ If officials are involved in activity related to the company, they have to be looked after and it will be billed to the company,” Sharma said.

A top Central Vigilance Commission official disputed his contention.

“ Bureaucrats are not authorised to waste taxpayers’ money and such issues have been raised in the past with the government.

The PSUs must explain under what provisions these expenditures were incurred and if the ministry had accorded approval for them,” he said.

ONGC’s Lavish Meet

By Ajmer Singhs

The PSU splurges on oil honchos & their families at strategic meetings

Throwing the government’s orders on austerity to the winds, cash- rich Oil and Natural Gas Corporation (ONGC) has been splurging on beauty treatments and massages for oil honchos and their spouses during strategy meets.

In the past three months, former and serving petroleum ministry officials and ONGC honchos went for brainstorming sessions on oil security needs to exotic super luxury destinations in Rishikesh and Kovalam. Both meetings were spiced up with ayurvedic massages and unlimited supplies of top- of- the line Scotch whisky for the invitees. On both occasions, ONGC played gracious host and picked up the bills.

On November 21, ONGC chartered a Kingfisher aircraft to airlift 40 former CMDs, directors and their spouses, and spent about Rs 1 crore on their travel, hotel stay and beauty treatment at the five- star deluxe Leela Kovalam Beach Resort in Kovalam. About Rs 25 lakh was spent on the chartered flight.

During another such two- day conference held on September 25, petroleum ministry officials blew up tax payers’ money at the world famous Ananda in the Himalayas, a spa at Rishikesh.

The ministry brass stayed at this resort, where tariff for a plush villa with a private swimming pool could go up to Rs 1 lakh a day. About Rs 1 crore was spent on their travel, stay, and other expenses such as premium Scotch whisky and ayurvedic rejuvenation therapies.

The lavish expenses were cleared in the name of ‘ strategic meets’ — an annual affair to discuss and devise strategy and the country’s oil needs, said ONGC officials.

ONGC figures in the Fortune 500 global list but its profits have been dipping. According to the unaudited financial results ( provisional) for the quarter ended September 30, 2008, the net profit after taxes was Rs 4,808 crore.

But, for the quarter ended June 30, 2008, the net profit after taxes was Rs 6,592 crore, showing a drop of about Rs 1,784 crore.

ONGC chairman and managing director R. S. Sharma, who was present at these meets, said: “ It is a company with a Rs 60,000- crore turnover and if a strategic meet is organised where a few lakhs, or even a crore is spent, it is not wasteful expenditure but a long- term investment.” But what about the Prime Minister’s prescribed austerity drive? “ We have convened a meeting for which a draft resolution is ready. Austerity measures will be taken and expenses curtailed,” he said.

Union petroleum secretary R. S. Pandey spent three nights at a luxury villa at the resort, offered at a discounted rate of Rs 58,000 a night. He ran up a bill of Rs 1.95 lakh on his stay, entertainment and massage. V. K. Diwangan, director ( exploration) in the ministry, blew up Rs 90,000 in three days. The tab was picked up by ONGC. ONGC’s director D. K. Pandey spent around Rs 95,000 during his stay at Ananda Spa but CMD R. S. Sharma settled the bill at Rs 75,000.

Some bureaucrats went in for exfoliation sessions, a cosmetic procedure to remove dead skin cells from the face and body using jasmine salt scrubs, wild rose salt glows, ancient Indian honey and sandalwood rubs.

Liquor flowed like water during the stay. The bill for liquor, which included Johnny Walker Black Label added up to Rs 6.34 lakh.

Apart from ONGC’s CMD and board members, those who participated in these brainstorming sessions were the secretaries in the petroleum ministry S. Sundareshan (spent Rs 78,000) and P. K. Sinha (spent Rs 39,000), special secretary Sindushri Khulla, joint secretaries Sunil Jain and D. N. Narsimha Raju (spent Rs 80,000) and petroleum minister Murli Deora’s personal secretary Sanjiv Kumar (spent Rs 80,000).

For the strategy meet at the Leela resort in Kovalam from November 21 to November 23, inquiries revealed that around Rs 42 lakh was spent on hotel stay, entertainment and food.

About Rs 2 lakh was spent on massages and another Rs 2 lakh on liquor.

Apart from Sharma, those who attended the meeting — for which the invitees were allowed to bring their spouses along — were former CMDs Subir Raha, Col S. P. Wahi, S. K. Manglik, B. C. Bora and L. L. Bhandari.

A department of public enterprises (DPE) “ guideline on expenditure management — fiscal prudence and austerity” mentions that utmost austerity should be observed in organising conferences, seminars or workshops.

But, minister of state for petroleum and natural gas Dinsha J. Patel and top ministry bureaucrats have been splurging at five- star hotels on ONGC’s account and misusing government vehicles.

When Patel visits his hometown, Nadiad in Gujarat, ONGC provides him airconditioned vehicles for his family and staff.

Records show that on at least 50 occasions in the last six months, ONGC hired Toyota Innovas, Taveras and Ford Ikons for Patel and his family, the bills for which added up to Rs 2 lakh.

Patel admitted that he occasionally took vehicles from ONGC. However, he declined to comment on the lavish expenditure of his ministry officials.

The PSU has reimbursed the hotel bills of the petroleum and natural gas ministry officials.

Diwangan alone accounted for Rs 4.5 lakh in the past nine months for staying at the country’s top hotels.

Petroleum secretary M. S. Srinivasan also ran up high bills on his hotel stays. His bill for staying at The Oberoi in Mumbai from January 6 to 8, this year was Rs 95,000. He stayed twice at the Taj Lands End, spending Rs 82,000, while for his accommodation at Taj Coromandel, ONGC shelled out Rs 27000.

CMD Sharma insisted it was normal to spend extra on bureaucrats. “ If officials are involved in activity related to the company, they have to be looked after and it will be billed to the company,” Sharma said.

A top Central Vigilance Commission official disputed his contention.

“ Bureaucrats are not authorised to waste taxpayers’ money and such issues have been raised in the past with the government.

The PSUs must explain under what provisions these expenditures were incurred and if the ministry had accorded approval for them,” he said.

Mumbai’s Tycoons Enjoy a Good Life in Super Luxury Yachts

By Swati Sharma

Anil Ambani placing an order for a Rs 200- crore super luxury yacht for his wife Tina has brought the spotlight back on the latest obsession of Mumbai’s rich and the famous. The irony is that none of the owners of these new symbols of uber luxury knows how to drive these yachts, and they’ve no parking space in India, for the country is yet to get a marina for private boats.

The race to own luxury yachts was kick- started by liquor baron Vijay Mallya in 1998, when he moored the 50- metre yacht Kalizma , earlier owned by Hollywood star Richard Burton, outside Gateway of India in Mumbai.

He now owns the 95- metre Empress of India , which, according to PowerAndMotorYacht. com, is powered by three 10,000- horsepower engines. He bought the supersleek yacht from a Qatari sheikh for what the website estimates to be Rs 575 crore. It first made headlines when Mallya hosted the entire F1 top brass led by Bernie Ecclestone for a party off the coast of Monaco.

The double- deck ‘ flybridge’ boat reportedly houses Mallya’s personal art collection, which includes a Renoir, a Chagall and a very large Husain. Each room offers extensive sea views and bathrooms have gold furnishings. The private deck has a jacuzzi that opens out into the sea.

Gautam Singhania of the Raymond textile chain got over 200 shipwrights to handcraft the Ashena , a 153- foot, tri- deck power yacht with a Burmese teak hull. It took five years to be built. But within two years of it officially becoming Singhania’s floating party zone in 2006, it is reportedly up for sale.

Luxury yacht companies are already scenting an opportunity.

Their enthusiasm was evident at this year’s Mumbai International Boat Show, where more than 120 international brands ( from Ferretti, the Ferrari of the yachting world, to Fairline and Sorenstam Ventures) vied for the attention of people like Jimmy Mistry, a collector of super bikes and big cars, who has acquired a super high- speed Sea Ray 175 Sport. Industrialist Rahul Bajaj also owns one of the beauties that fly on the waves.

Anju Dutta of Marine Solutions, the company that represents Ferretti in India, says India may be at the base of the curve for the yacht market, but it promises to grow in the same way as luxury car models. “ Oldfashioned business tycoons did not believe in flaunting their wealth, but that is no longer true of the present generation,” says Dutta. “ They believe in showing off and not everyone can afford a luxury yacht, so owning one gives them membership of an exclusive club.” Dutta’s company has sold 80 yachts in the past seven years, but they are not anywhere as expensive as the super luxury boat that Mallya owns. The Ferrettis are in the range of Rs 5.5 crore to Rs 90 crore, but the cost can touch the sky if the fittings and embellishments are as lavish as those favoured by Mallya.

Ferretti’s Indian owners include Sunny Dewan Wadhawan, managing director of the real estate development firm, HDIL, who snapped up one for Rs 57 crore.

Godrej Group CEO Adi Godrej has a Ferretti 592, a flybridge yacht that can house up to 60 people and is fitted with the ultra- expensive Frau leather.

THE PRIVILEGE of owning the country’s first Ferretti belongs to Vinod Mittal, younger brother of steel tycoon Lakshmi Mittal, who acquired the yacht in 2001, the year Marine Solutions set shop in Mumbai.

UK- based Lakshmi Mittal owns the 262- metre Amevi , which is moored near his Mediterranean home. India, Norway, Gibraltar and Spain were among the stops Amevi made last summer. Mittal reportedly paid Rs 1,000 crore for the vessel, which includes a pool, gym and movie theatre.

Not everyone, though, is impressed by the way the market is growing. Shakeel Kudrolli of Aquasail Distribution Co., feels the market will have to move out of its obsession with luxury yachts. “ It’s a fad the market can’t sustain as India does not have a marina, nor does it have workshops for repairs and maintenance,” says Kudrolli.

These considerations aren’t stopping India’s richest from scouting for luxury yachts, for they can always dock their boats off Dubai or Monaco.

Mumbai’s Tycoons Enjoy a Good Life in Super Luxury Yachts

By Swati Sharma

Anil Ambani placing an order for a Rs 200- crore super luxury yacht for his wife Tina has brought the spotlight back on the latest obsession of Mumbai’s rich and the famous. The irony is that none of the owners of these new symbols of uber luxury knows how to drive these yachts, and they’ve no parking space in India, for the country is yet to get a marina for private boats.

The race to own luxury yachts was kick- started by liquor baron Vijay Mallya in 1998, when he moored the 50- metre yacht Kalizma , earlier owned by Hollywood star Richard Burton, outside Gateway of India in Mumbai.

He now owns the 95- metre Empress of India , which, according to PowerAndMotorYacht. com, is powered by three 10,000- horsepower engines. He bought the supersleek yacht from a Qatari sheikh for what the website estimates to be Rs 575 crore. It first made headlines when Mallya hosted the entire F1 top brass led by Bernie Ecclestone for a party off the coast of Monaco.

The double- deck ‘ flybridge’ boat reportedly houses Mallya’s personal art collection, which includes a Renoir, a Chagall and a very large Husain. Each room offers extensive sea views and bathrooms have gold furnishings. The private deck has a jacuzzi that opens out into the sea.

Gautam Singhania of the Raymond textile chain got over 200 shipwrights to handcraft the Ashena , a 153- foot, tri- deck power yacht with a Burmese teak hull. It took five years to be built. But within two years of it officially becoming Singhania’s floating party zone in 2006, it is reportedly up for sale.

Luxury yacht companies are already scenting an opportunity.

Their enthusiasm was evident at this year’s Mumbai International Boat Show, where more than 120 international brands ( from Ferretti, the Ferrari of the yachting world, to Fairline and Sorenstam Ventures) vied for the attention of people like Jimmy Mistry, a collector of super bikes and big cars, who has acquired a super high- speed Sea Ray 175 Sport. Industrialist Rahul Bajaj also owns one of the beauties that fly on the waves.

Anju Dutta of Marine Solutions, the company that represents Ferretti in India, says India may be at the base of the curve for the yacht market, but it promises to grow in the same way as luxury car models. “ Oldfashioned business tycoons did not believe in flaunting their wealth, but that is no longer true of the present generation,” says Dutta. “ They believe in showing off and not everyone can afford a luxury yacht, so owning one gives them membership of an exclusive club.” Dutta’s company has sold 80 yachts in the past seven years, but they are not anywhere as expensive as the super luxury boat that Mallya owns. The Ferrettis are in the range of Rs 5.5 crore to Rs 90 crore, but the cost can touch the sky if the fittings and embellishments are as lavish as those favoured by Mallya.

Ferretti’s Indian owners include Sunny Dewan Wadhawan, managing director of the real estate development firm, HDIL, who snapped up one for Rs 57 crore.

Godrej Group CEO Adi Godrej has a Ferretti 592, a flybridge yacht that can house up to 60 people and is fitted with the ultra- expensive Frau leather.

THE PRIVILEGE of owning the country’s first Ferretti belongs to Vinod Mittal, younger brother of steel tycoon Lakshmi Mittal, who acquired the yacht in 2001, the year Marine Solutions set shop in Mumbai.

UK- based Lakshmi Mittal owns the 262- metre Amevi , which is moored near his Mediterranean home. India, Norway, Gibraltar and Spain were among the stops Amevi made last summer. Mittal reportedly paid Rs 1,000 crore for the vessel, which includes a pool, gym and movie theatre.

Not everyone, though, is impressed by the way the market is growing. Shakeel Kudrolli of Aquasail Distribution Co., feels the market will have to move out of its obsession with luxury yachts. “ It’s a fad the market can’t sustain as India does not have a marina, nor does it have workshops for repairs and maintenance,” says Kudrolli.

These considerations aren’t stopping India’s richest from scouting for luxury yachts, for they can always dock their boats off Dubai or Monaco.

Govt Gets Strict on SIM Cards

By Kajol Singh

In the backdrop of mobile phones having Indian SIM cards and UAE’s Thuraya satellite phone being used by Pakistani terrorists during Mumbai attack last week, the home ministry on Wednesday asked the department of telecommunication (DoT) to quickly devise a mechanism for a “strict consumer verification” exercise and formulate a comprehensive policy on “monitoring and intercepting” sat phones.

The ministry’s concerns were conveyed to DoT after the issue came up for discussion in a highlevel meeting chaired by home minister P Chidambaram who reviewed all aspects of telecom having security implications.

The issue of use of Chinese mobile phone handsets — which do not have International Mobile Equipment Identities (IMEI) — also came up for discussion. Since it is the IMEI number that mainly helps agencies to trace the handset user, the intelligence agencies had recently pitched for a ban on Chinese handsets.

The minister was, however, informed that DoT, taking such concerns in mind, has already “directed all the access service providers to make provision of Equipment Identity Registry (EIR) so that calls without IMEI or Electronic Serial Number (ESN) or those with IMEI or ESN with all zeros are not processed, and rejected”.

Besides senior home ministry and DoT officials, the meeting was also attended by senior officers of IB, RAW and the National Technical Research Organisation (NTRO). The NTRO keeps track of technological aspects of intelligence in coordination with other agencies.

Sources in the ministry said that DoT had proposed to set up a National Surveillance Grid to create a centralised communication monitoring agency. The Grid would help remove multiplicity of authorities in telecom/internet/Voice Over Internet Protocol monitoring exercises as currently it is being done by different agencies, they added.

At present, interception of sat phones is a big problem in India as none of the international operators have a hub here. Since these phones — provided by operators like UAE’s Thuraya and a consortium led by Inmarsat — do not need interconnectivity with the network of any country’s domestic network, they can be used anywhere in the world without any hitch.

An official said that sat phones could be intercepted only with the help of the country where it is licensed, which is time-consuming and often ineffective. The problems of interception and the absence of hubs come because India does not provide licences for operating satellite phones on a commercial basis, he added.

After having discussed such issues, the ministry asked DoT to come out with a solution within a month so that the government could formulate a comprehensive policy on sat phone monitoring and interception.

As far as safety mechanism of SIM cards is concerned, the ministry suggested that DoT consider a system of “guarantor” for getting a new connection. The home ministry also suggested that DoT come out with a guideline, which makes it mandatory for SIM card vendors to take instant photographs of new customers using web cameras and to pass them on to the service provider with the reference number.

It was earlier proposed that the consumers can carry reference numbers of two existing mobile phone customers as “guarantors” for getting new SIM cards.

LAND TILLERS’ OUTBURST – A Singur in the Making

By M H Ahssan

Pataperumallapuram, a nondescript village in East Godavari district looked like a warzone on Tuesday with farmers and police fighting a pitched battle, with the former refusing to part with their land for the Kakinada Special Economic Zone (KSEZ).

The revenue department’s haste in coercing them to part with the land for a mere Rs 3 lakh per acre has upset the farmers. “The promoters will in turn sell the land at Rs 40 lakh per acre to the big players ready to invest in KSEZ,” a village elder told TOI.

Highlighting the plight of small farmers, Gopalakrishna of district Rythu Coolie Sangham said they were unable to get cultivable land elsewhere at the amount that was being offered to them as compensation. The portbased multi-product KSEZ, coming up in nearly 10,000 acres, is set to wipe out 16 villages in U Kothapalli and Thondangi mandals. While the promoters (Kakinada Sea Ports Ltd, GMR group, Infrastructure Leasing and Financial Services Ltd of Delhi, besides the state government) claim that the KSEZ would catapult the district by attracting investments worth over Rs 50,000 crore, anti-SEZ activists are crying foul over the tall claims.

Stating that thousands of ryots, farm labour, fishermen and artisans have been displaced with the use of brute force, K Rajendra Kumar of Kadali Network, spearheading the movement against the SEZ, demanded that the land be reverted to the affected farmers. Sources said the administration deployed revenue and police authorities to illegally fence both the acquired as well as unsold land.

“The cardinal principle that cultivable land should not be converted to set up industries has been ignored in this land acquisition process,” KSEZ Vyathireka Porata Samithi convenor Ch Suryanarayana Murthy alleged. The KSEZ has already acquired 6,500 acres — 5,800 acres through consent award and the rest by invoking the Land Acquisition Act.

That the lands proposed to be acquired are fertile and there are other lands which are fallow and infertile which can be acquired is the contention of the ryots and the fishermen. “In Moolapeta village alone, ryots are in possession of nearly 4,700 acres which the promoters are eyeing,” Srinivasa Rao of district fishermen samakhya said.

Sources said the government shifted the KSEZ site in 2005 bowing to pressure from real estate lobby and political leaders — it had initially notified 10,000 acres in Kakinada rural, Pithapuram and Samalkot mandals. “There is a clear profit motive in setting up an SEZ, that’s why big industrialists enter it. Let the industries buy land directly from the willing farmers. Why should they sell it to the promoters who are acting more like real estate brokers,” Gopalakrishna said.

Joining the issue, Murthy said that besides police repression the administration facilitating unlawful registration of fertile land to KSEZ Pvt Ltd in itself is a gross violation of the SEZ Act. However, the promoters said that the SEZ once completed would change the entire economic scenario of East Godavari.

HC Directive Against using Force for Acquiring Land
A division bench of the AP High Court on Wednesday directed the state government not to use police force to take physical possession of land from farmers for the sake of the developer of the Kakinada Special Economic Zone (KSEZ).

The bench comprising Chief Justice Anil Ramesh Dave and Justice R Subhash Reddy, while hearing a petition filed by KSEZ Vyathireka Porata Committee, wondered why the police were being used in this case. It, however, said it cannot restrain purchasers from taking possession of the land.

Appearing for the farmers, whose lands are now being taken away for KSEZ, senior counsel Bojja Tarakam said the KSEZ developer was seeking to take over land from farmers with the help of the police force.

When it was brought to the notice of the bench by the government counsel that the farmers themselves sold their lands to the developer, the bench said it cannot do much in such a situation.

Saying that the developer played a fraud on the farmers by purchasing from them the lands already notified by the government for acquisition, Tarakam sought such land transactions to be declared as invalid as they were done under coercion and during the pendency of a land acquisition notification.

RECAP 2008 – III

By M H Ahssan

BOUQUETS AND BULLETS
The last leg of 2008 had Satyam in the news for all the wrong reasons. In addition, there were more AP student deaths in the US and the crashing stock market took a toll on investors with a family suicide pact rocking the city. Here’s a look at a grim September to December story that would hopefully end on a positive note.

It was a month of Hyderabadis making it big. IAS officer from the state Duvvuri Subbarao was appointed as Reserve Bank of India governor and Saina Nehwal made the city proud as she clinched the $ 175,000 Chinese Taipei Grand Prix Gold Championship.

But it was in the same month that a big name in the state, Sultan Salahuddin Owaisi, departed. President of Majlis-e-Ittehadul Muslimeen, Owaisi died after a prolonged illness. His 39-year-old son Asaduddin Owaisi took up the reins of the party, just months before the elections.

An armed daylight robbery of 10 kg gold at the Shamshabad airport and a Cessna flight crash in the thickly populated Subashnagar area in Sanatnagar killing an assistant flight instructor Captain Neeraj Jain, 24 and a trainee pilot P Srinivas of the AP Aviation Academy were two freak incidents reported this month.

There were more young deaths. The railing of Narayana Junior College in Chengicherla collapsed leaving one student dead and 28 injured. Another city-based student, 23-year old Tummala Soumya Reddy, was shot dead in Chicago in the US.

But September was essentially a grim month. If not for student deaths, it was the recession and the market crash that had citizens worried. A Saidabad resident K Upender, 34, killed himself, his wife Swati and their two-year-old son Sai Ashij by setting the house ablaze using an LPG cylinder after he incurred huge losses in the stocks business. Layoffs by IT firm started making headlines from this month, a pattern that was to repeat itself for the rest of the year.

But what left the state government red faced was a letter by Delhi Metro Rail Corporation (DMRC) managing director E. Sreedharan to the planning commission in which he called the project a ‘political scam’ in the making. Coming days saw a serious war of words between the state government and Sreedharan with the state demanding an unconditional apology, which Sreedharan denied.

There were more upheavals. People thronged ICICI ATMs to withdraw money as rumours of the bank going bust did the rounds. However, if something did bring some relief to Hyderabadis was the governments decision to not chop a 400-year-old tamarind tree, that had saved nearly 150 lives 100 years ago during the the Musi flood.

ROADSHOW BAN
Amurder behind bars and two more student deaths on US campuses. And a setback to drama-friendly political parties when the high court puts a ban on roadshows. Well, November saw all this and more.

While the month kicked off with actorturned-politician Chiranjeevi chanting the T mantra saying that Praja Rajyam would support the formation of a separate Telangana state, YSR stuck to a united AP stand in his AP formation dayspeech. Another political event that sent ripples across the state was that of Nandamuri Balakrishna announcing his entry into politics at a massive rally in Guntur. Heaping praises on TDP supremo Naidu, Balaiah said he would play second fiddle to him.

DMRC chief E Sreedharan’s statement continued to give the state jitters and it thundered to drag him to court for defamation.

The most noteworthy incident in November was the “politically motivated’’ murder of Moddu Seenu, the alleged sharpshooter in the sensational murder of TDP leader Paritala Ravi. Seenu, alias Julakanti Srinivasa Reddy was brutally killed in the Reddypalli district prison in Anatapur allegedly by Omprakash, a dacoit and an accused in a triple murder case. Another cop story that unfolded through the month was that of senior IPS officer Rajiv Trivedi’s lift saga.

Two deaths that put the focus back on the student community from Andhra Pradesh in the US were the murders of city-based Arpana Jinaga in Seattle and that of Warangal-based Shashank Pulluru in Tennessee.

Death came calling for some star-struck citizens as two persons died in Dharmavaram during Chiranjeevi’s ‘Praja Ankita Yatra’. Chiru continued to draw masses, however, and created a storm of sorts at Pulivendula as he conquered YSR’s territory with his reel appeal.

Nonetheless, such massive rallies snowballed into a AP High Court ruling banning roadshows. Coming at a time when political parties were building up the campaign momentum for the elections next year, the order had two strong opponents in the form of TDP and Praja Rajyam while the Congress, not too surprisingly, supported it.

It wasn’t the roadshow ban but the soaring onion prices in November that left citizens teary eyed. Moreover, grim moments were witnessed in IT and financial sector firms as ‘right sizing’ continued in November.

DAMP FESTIVITIES
While Hyderabad was still mourning Owaisi’s death, the state also lost its chance to host Tata’s Nano after it was shunted out of West Bengal. Like this was not enough, the state woke up to the news of communal violence in Adilabad districts Bhainsa town that left three dead and 25 people injured. And even before this communal fire could be doused, six persons of a family, including three children, were burnt alive, just 12 kms away from Bhainsa, after their tile-roofed house was engulfed in a mysterious fire on October 12.

Another gruesome act that shook the city was that of an acid attack on television journalist, Shaik Kareemulla and his wife, allegedly by his in-laws.

The problem of unhappy families took yet another tragic turn in the last week of the month. After losing his job due to the global meltdown, Telugu software engineer, Lakshminivasa Rao Nerusu shot three members of his family (wife and two children) in Detroit, US and went missing himself.

Pink slips continued to make headlines with IT companies and major airlines showing their staff the door. Even the maiden air show organised on Nizam’s land spoke of the sorry state the aviation sector was in.

Amidst all these stories of sorrow and disappointment Diwali brought some smiles, especially to the faces of central government employees. With the implementation of the sixth pay commission, their houses had the brightest diyas this time even as others, reeling under recession blues, were trying hard to brighten up the festival of lights.

The Sanghi brothers calling it truce after a long-drawn dispute and Saina Nehwal making it to the No.11 spot in world rankings also gave Hyderabadis a reason to rejoice this month.

City lovers, however, had to settle for a not-so-happy ending with officials deciding to go in for an image makeover of the Sanjeeviah Park, which they felt had become a lovers den. With a ban on couples, they now plan to keep it open only for families and children.

SATYAM GOOFS UP
The last month of the year may have opened on a positive note as the rising city sensation Saina Nehwal broke into top ten on the latest Badminton World Federation rankings but corporate India was shocked at Satyam’s bid to acquire Maytas, which was later aborted. The company’s stocks plummeted, key clients stepped out and questions regarding the independent board of directors were raised. The dust still has to settle on the matter with fresh rumours doing the rounds each day.

Crucial arrests made this month included ‘Big Fish’ V Suryanarayana’s, who was arrested on charges of massive corrupt deals. His still unfolding case files continue to embarrass babus and ministers. Another high profile arrest was that of Nagarjuna Group chairman K S Raju for allegedly cheating thousands of depositors.

The city received another shock earlier in the month when two college girls from Kakatiya Institute of Technology and Sciences (KITS) saw probably the worst day of their lives as two men poured acid on them outside the premises of their institute. A few days later the accused were killed by police in an “encounter’’ that was strongly condemned by human rights activists and Lok Satta leader Jayaprakash Narayan.

With the country still reeling under the Mumbai terror strikes, denizens here soon hit the panic button when an alleged Mecca Masjid blast accused opened fire at two constables at Santoshnagar and escaped.

There were more tense moments in store. Violent incidents including stabbing, torching of a jeep and stoning of RTC buses were witnessed this month over the demolition of Nalla Pochamma temple. Traffic was paralysed and people went berserk over the demolition that had to be stayed.

Another incident that had city glued to the telly was the murder-suicide of Telugu film heroine Bhargavi and her husband. She was stabbed to death at her flat at in Banjara Hills by her partner Praveen Kumar alias Bujji, who committed suicide after the act, the reason being failed love.

THEY ALSO MADE NEWS

SECULAR BEGGAR
A city beggar makes Rs 4,000 a month as he stations himself religiously at Nampally dargah or Saibaba temple. Politicians could take a lesson or two on garnering votes the same way.

PAISA VASOOL
A sub inspector caught accepting a bribe of Rs 4,000 swallowed Rs 500 notes wiping all evidence. Now we can’t blame cops if they start seeking bribes in larger denominations for easy digestion. Burp!

UNISEX LESSONS
City techies stormed into cookery classes taking lessons in chicken do pyaza to save money during their offshore assignments. Snooty women called them stingy.

CLEARASIL, PLEASE
A man sought separation over his wife’s pimples even as others sought divorce over the speed of fan, snoring and pets. Er, better excuses in 2009?

NO SMOKE WITHOUT FIRE
The smoking ban initially had smokers rushing out of pubs for a puff. Now they do it inside and pub managers say they can’t see any smoke. Classic case of ‘see no evil’.

SPIRITED FLIGHTS
Last January 1 saw pilots reporting to work in a drunken state promising to take their flights to new heights. Frequent flyers now demand the same spirits to enjoy the flights.

RECAP 2008 – II

By M H Ahssan

From saving trees to protecting scribes’ right to freedom of expression to a massive gathering to hail a superstar’s entry into politics, warring business families and a burning train claiming many lives. Andhra Pradesh woke up to a rather eventful May to August stretch of 2008

CITIZENS DO A CHIPKO
Agreen drive, murder of an AP girl in the U.S, by-elections and the encounter-death of gangster Aziz kept readers hooked on to the newspaper all of May. However, what grabbed maximum eyeballs was the attack on Telugu daily Andhra Jyothi’s Jubilee Hills office, in the last week of the month.

Angered at a report in the paper that allegedly castigated leaders of caste-based organisations, around 50 activists of the Madiga Reservation Porata Samithi (MRPS) barged into the newspaper office and pelted stones on the glass doors, smashed windshields of cars and set the reception desk on fire. There was more action with newspapers and management effigies being burnt by MRPS activists outside other Andhra Jyothi centres as well.

This attack on the press was preceded by a massive attack on trees earlier in the month beginning May 6 when a 200-yearold banyan tree was hacked down outside the historic Paigah Palace. Along with it, the US Consulate also brought down 32 Ashoka trees. Like this was not enough, just three days later the Greater Hyderabad Municipal Corporation (GHMC) was all set to fell 18 more trees.

After a sustained campaign by TOI, on March 12, GHMC passed orders cancelling the cutting of any more trees in the city. However, the ban did not even last 48 hours with fresh cutting of 70 trees undertaken at Rajendranagar, citing road-widening as the reason. It finally took a chipko movement of citizen activists to stop this mindless act and save the 400 other trees that were to face the axe soon.

Lucky trees but unlucky Jyothirmayi. The 23-year-old student from AP was found murdered in her apartment in Birmingham, UK, with the reason for the killing being a mystery initially. However, it was later established that her roommate Nagaraju Kumar Nalluri, who was upset with Jyothi for spurning him, was the face behind the heinous act.

Another face behind several acts of crime, Venkat Reddy alias Aziz Reddy was shot dead in an alleged encounter this month. He was reported to be a close aide of Mumbai don Chhota Rajan and was a dreaded extortionist.

What sent shock waves across the state was the death of wannabe cops during their physical endurance tests. The physical endurance test for recruiting constables was being conducted in peak summer. The drive claimed a third life this month.

But all this was forgotten with the month nearing its end as cameras turned to catch the by-poll action. Elections ended on a peaceful note for all four Lok Sabha and 18 Assembly seats on May 29 though it left voters still wondering if the T wave would prove effective.

SPLIT WIDE OPEN
Events in this month left many shaken and stirred. If city scribes were stirred into action opposing the attack on Andhra Jyothi offices, TRS president K Chandrasekhar Rao was shaken by the party’s debacle in the bypoll and even quit from his post, only to resume it a day later. Also shaken was the Rs 1800 crore-Sanghi group, with the warring Sanghi brothers locking horns over various issues and even seeking a settlement to split the group. Another ‘split’ this month was that of senior TDP leader T Devender Goud parting ways with the party over the separate Telangana issue.

But it was the Maoist rocket attack on a 64-strong Greyhounds police team in June end that left the state police gasping. The boat carrying the team, that was returning after a combing operation near Malkangiri in south Orissa, capsized after the Maoists started firing indiscriminately killing 39 cops.

Before the attack, however, the mood in June was ‘spirited’ intermittently. Liquor shop licence bids touched a whopping Rs 2 crore for a shop in Kothaguda. Another shop near Cyber Towers fetched almost the same amount. Dampening spirits was the monsoon playing truant. While torrential rains were lashing the rest of the country, AP suffered a longish dry spell with agriculture officials and even mana CM pinning his hopes on a wet July.

In the midst of such concerns was the Metro rail story unfolding, each time with a controversy. The one to hit papers this month was that of Bharat Scouts and Guides refusing to hand over its property on SP Road to the metro project for setting up a station, parking and circulation area.

A stand-off that worsened this month was the one between Telugu daily Andhra Jyoti and Madiga Reservation Porata Samithi with the police arresting the daily’s editor and two journalists. This led to journalists from across the state assailing the state government for attacking freedom of press.

POWER GAMES
The state and the city reeled under a severe power shortage in July with rains eluding AP and four units of the Vijaywada Thermal Power Station tripping in mid-July. The Central Power Distribution Company of AP Limited even issued an advisory asking people to stop switching on lights and fans and discouraged them from using air conditioners and geysers. This even as areas inhabited by babus received uninterrupted power supply while citizens sweated it out, forcibly undertaking austere measures.

Another development that had citizens seeing red was the call for financial bids for the metro rail project. The Navbharat-led consortium bagged the project, curiously offering to pay the government Rs 30,311 crore as against charging it for execution of the 71 km three-corridor project. The consortium included Maytas, Ital Thai of Thailand and IL&FS.

A shocking development this month was a government move exempting all schools from having playgrounds. As per GO No. 88, schools were suggested to send their children to play in the nearest municipal ground or park under the supervision of their teacher. The decision, it was found, was rooted in the skyrocketing real estate prices and using open space for a non-commercial activity such as a playground seemed like a poor usage idea to the government.

Citizens were not only complaining about the dearth of parks and power in the city but also another shortage— that of diesel. July 17 saw serpentine queues outside petrol bunks, with some bunks even resorting to rationing of the fuel. Disappointed denizens, however, had some reasons to smile as well. A mountaineer rescued three bank employees from a building in Himayatnagar that had caught fire.

THE RISING OF A STAR
This month gave state politics its greatest launch more than 25 years after N T Rama Rao wowed the masses with his star appeal. Superstar Chiranjeevi after a year of “will he, wont he’’ speculation marked his entry into state politics. Chiru announced his political party Praja Rajyam at a packed Tirupati meeting on August 26. Both the Congress and TDP had then broken into cold sweat with the star vying for the CM’s post.

Such political dramas aside, the state had to deal with serious tragedies. August began with the Gautami Express catching fire, killing 31 passengers. Though unofficial estimates indicated a higher figure. Five coaches of the Secunderabad-Kakinada Gautami Express were engulfed in flames. It wasn’t just fire but even water the city was battling with. Rains played havoc in many areas of Hyderabad with incessant downpour claiming 29 lives. Traffic and life in Hyderabad were thrown out of gear. Crops in the state were damaged.

Many buildings collapsed claiming more lives. If the natural disasters were any less, a communal clash in Vijaywada also kept a part of city tensed. An angry mob in Vijaywada pelted stones and injured cops after a girl from the minority community married a boy from the backward class. Another jolt came in the form of city tennis sensation Sania Mirza making an exit from the top 50 women tennis players’ ranking.

Tollywood ‘Flop Show’ 2008

By M H Ahssan

The statistics are none too bright for Tollywood, as a staggering 90 per cent of Telugu films bombed at the BO in 2008. HNN presents the Tollywood report card

Adozen odd films out of 100 is a rather dismal figure. A shattering verdict indeed by the audience, who seem to have delivered the message to Tollywood’s filmmakers this year – that they need to improve in many departments. Out of the 121 films released, only eleven were hits and the best money churners were actually small budget films with debutants!

YEAR OF THE DEBUTANTS
2008 was truly the year of debutants and of small budget films. Radhakrishna’s debut film Gamyam not only did good business but also won critical acclaim. Kotha Bangaru Lokam directed by another debutant Srikanth Addala also did roaring business. Produced by Dil Raju, this film had the young pair of Varun Sandesh and Shweta Prasad as the lead actors. Films like Gorintaku, Ready, Ullasanga Utsahanga, Souryam, Vinayakudu and Ashta Chemma did good business. Another star son Naga Chaitanya, was introduced amid much fanfare by ANR and Nagarjuna.

STARS SANS THE SHINE
On the flipside, big-budget films that were expected to do well were miserable failures.

Kathanayakudu, Pandurangadu, Jalsa, Krishnarjuna, Bujjigadu, Kantri and Okka Magadu featuring big stars bit the dust. Balakrishna’s Okka Magadu and Nagarjuna’s Don did collect fantastic revenues initially, but could not really live up to audiences’ expectations and buyers who paid fancy prices for the film suffered heavy losses.

When it comes to the big stars, only Venkatesh seems to be the saving grace with Chintakayala Ravi doing decent business. Ravi Teja had one hit Krishna and a flop Baladoor. His forthcoming project Neninthe directed by Puri has been released a couple of days ago and the much-hyped spoof on Tollywood is receiving poor response across the state. Vishnu’s Krishnarjuna, with Nag in a guest role, was also a dud at the BO while Tamil director P Vasu followed it up with another damp squib Kathanayakudu which didn’t work in spite of Rajanikanth. Mahesh Babu, one of the top stars of Telugu cinema, had no release this year.

Teja, who’s shown good promise with his other films, also couldn’t move much water at the BO with his Keka.

SURPRISE SURPRISE
The surprise hit this year was Gorintaku, starring Rajasekhar and Meera Jasmine. The film was a remake of a Kannada film, and despite unfavourable reviews, it did well at the BO and is actually one of Rajasekhar’s best efforts. Among the directors, Srinu Vytla scored a hattrick with Ready, starring Ram and Genelia. On the other hand, another young director VV Vinayak, who was looking for a good hit, came out with flying colours with the blockbuster Krishna. Bommarillu Bhaskar continued his run of success with Parugu and Indraganti too had a hit with Ashta Chemma which featured mostly new faces. Karunakaran, who delivered a successful film Ullasanga Utsahanga is now on cloud nine as Ram Charan Tej announced that he is going to do a film with him next year. Small films starring smaller heroes tasted big success this year. Bommana Brothers Chandana Sisters and Blade Babji with Allari Naresh and other comedians did good business.

THE HIT-LIST
Krishna
Gamyam
Bommana Brothers Chandana Sisters
Parugu
Ready
Gorintaku
Ullasanga Utsahanga
Ashta Chemma
Souryam
Kotha Bangaru Lokam
Yuvatha
Vinayakudu

THE FLOP SHOW
Okka Magadu
Salute
Jalsa
Kantri
Kathanayakudu
Pandurangadu
Krishnarjuna
Bujjigadu
Chintakayala Ravi
Baladoor
Bale Dongalu
Hare Ram
Nenu Meeku Telusa

Tollywood ‘Flop Show’ 2008

By M H Ahssan

The statistics are none too bright for Tollywood, as a staggering 90 per cent of Telugu films bombed at the BO in 2008. HNN presents the Tollywood report card

Adozen odd films out of 100 is a rather dismal figure. A shattering verdict indeed by the audience, who seem to have delivered the message to Tollywood’s filmmakers this year – that they need to improve in many departments. Out of the 121 films released, only eleven were hits and the best money churners were actually small budget films with debutants!

YEAR OF THE DEBUTANTS
2008 was truly the year of debutants and of small budget films. Radhakrishna’s debut film Gamyam not only did good business but also won critical acclaim. Kotha Bangaru Lokam directed by another debutant Srikanth Addala also did roaring business. Produced by Dil Raju, this film had the young pair of Varun Sandesh and Shweta Prasad as the lead actors. Films like Gorintaku, Ready, Ullasanga Utsahanga, Souryam, Vinayakudu and Ashta Chemma did good business. Another star son Naga Chaitanya, was introduced amid much fanfare by ANR and Nagarjuna.

STARS SANS THE SHINE
On the flipside, big-budget films that were expected to do well were miserable failures.

Kathanayakudu, Pandurangadu, Jalsa, Krishnarjuna, Bujjigadu, Kantri and Okka Magadu featuring big stars bit the dust. Balakrishna’s Okka Magadu and Nagarjuna’s Don did collect fantastic revenues initially, but could not really live up to audiences’ expectations and buyers who paid fancy prices for the film suffered heavy losses.

When it comes to the big stars, only Venkatesh seems to be the saving grace with Chintakayala Ravi doing decent business. Ravi Teja had one hit Krishna and a flop Baladoor. His forthcoming project Neninthe directed by Puri has been released a couple of days ago and the much-hyped spoof on Tollywood is receiving poor response across the state. Vishnu’s Krishnarjuna, with Nag in a guest role, was also a dud at the BO while Tamil director P Vasu followed it up with another damp squib Kathanayakudu which didn’t work in spite of Rajanikanth. Mahesh Babu, one of the top stars of Telugu cinema, had no release this year.

Teja, who’s shown good promise with his other films, also couldn’t move much water at the BO with his Keka.

SURPRISE SURPRISE
The surprise hit this year was Gorintaku, starring Rajasekhar and Meera Jasmine. The film was a remake of a Kannada film, and despite unfavourable reviews, it did well at the BO and is actually one of Rajasekhar’s best efforts. Among the directors, Srinu Vytla scored a hattrick with Ready, starring Ram and Genelia. On the other hand, another young director VV Vinayak, who was looking for a good hit, came out with flying colours with the blockbuster Krishna. Bommarillu Bhaskar continued his run of success with Parugu and Indraganti too had a hit with Ashta Chemma which featured mostly new faces. Karunakaran, who delivered a successful film Ullasanga Utsahanga is now on cloud nine as Ram Charan Tej announced that he is going to do a film with him next year. Small films starring smaller heroes tasted big success this year. Bommana Brothers Chandana Sisters and Blade Babji with Allari Naresh and other comedians did good business.

THE HIT-LIST
Krishna
Gamyam
Bommana Brothers Chandana Sisters
Parugu
Ready
Gorintaku
Ullasanga Utsahanga
Ashta Chemma
Souryam
Kotha Bangaru Lokam
Yuvatha
Vinayakudu

THE FLOP SHOW
Okka Magadu
Salute
Jalsa
Kantri
Kathanayakudu
Pandurangadu
Krishnarjuna
Bujjigadu
Chintakayala Ravi
Baladoor
Bale Dongalu
Hare Ram
Nenu Meeku Telusa

EXTRA BURDEN TO AIR PASSENGERS

By Subia Khan

New Year to bring more burden on flyers. Mumbai, Delhi Airports Fees Set To Rise.

The aviation ministry is playing Santa Claus this Christmas. After getting lifesaving relief for airlines, it is now allowing Delhi and Mumbai airports developers to raise more money for funding their projects. The common passenger, who is yet to get any benefit like cheaper airfares, will end up paying more as airports are being allowed to charge more.

The Mumbai airport will be able to hike aeronautical charges by 10% from January 1. This charge includes landing and parking charges that airlines pay and also the passenger service fee component that flyers pay to the carriers. Airlines say they will have to pass on any increased charge to passengers, something that might lead to higher airfares.

While airlines say they will announce the extra burden for passengers only after some time, the passengers service fee that fliers pay directly at time of booking will rise from Rs 225 to Rs 233 after the hike.

The GVK-backed Mumbai airport developers are likely to see their revenue increase by Rs 35 crore in a year because of the hiked charges. Both Mumbai and Delhi airport developers were allowed to raise aero charges by 10% in their third year of operations. This move had so far not been allowed due to poor health of airlines but now since the latter have got huge relief, the ministry has decided to give airports their dues.

The GMR-backed Delhi airport, on the other hand, faces a revenue shortfall of around Rs 3,000 crore which can’t be filled by a 10% fees hike alone. So the aviation ministry is trying to get GMR’s plea for levying an airport development fee of Rs 200-300 and Rs 1,000 for each outgoing domestic and international passenger, respectively, cleared by the government. “We have got airlines adequate relief and will have to look at problems of other players like airport developers,” said a senior ministry official. When asked if passengers should also expect some relief, the official added: “It’s time for airlines to pass on benefit of lower costs by reducing fares.”

EXTRA BURDEN TO AIR PASSENGERS

By Subia Khan

New Year to bring more burden on flyers. Mumbai, Delhi Airports Fees Set To Rise.

The aviation ministry is playing Santa Claus this Christmas. After getting lifesaving relief for airlines, it is now allowing Delhi and Mumbai airports developers to raise more money for funding their projects. The common passenger, who is yet to get any benefit like cheaper airfares, will end up paying more as airports are being allowed to charge more.

The Mumbai airport will be able to hike aeronautical charges by 10% from January 1. This charge includes landing and parking charges that airlines pay and also the passenger service fee component that flyers pay to the carriers. Airlines say they will have to pass on any increased charge to passengers, something that might lead to higher airfares.

While airlines say they will announce the extra burden for passengers only after some time, the passengers service fee that fliers pay directly at time of booking will rise from Rs 225 to Rs 233 after the hike.

The GVK-backed Mumbai airport developers are likely to see their revenue increase by Rs 35 crore in a year because of the hiked charges. Both Mumbai and Delhi airport developers were allowed to raise aero charges by 10% in their third year of operations. This move had so far not been allowed due to poor health of airlines but now since the latter have got huge relief, the ministry has decided to give airports their dues.

The GMR-backed Delhi airport, on the other hand, faces a revenue shortfall of around Rs 3,000 crore which can’t be filled by a 10% fees hike alone. So the aviation ministry is trying to get GMR’s plea for levying an airport development fee of Rs 200-300 and Rs 1,000 for each outgoing domestic and international passenger, respectively, cleared by the government. “We have got airlines adequate relief and will have to look at problems of other players like airport developers,” said a senior ministry official. When asked if passengers should also expect some relief, the official added: “It’s time for airlines to pass on benefit of lower costs by reducing fares.”

A ‘BIG FIGHT’ BETWEEN AUTO DEALERS & MANUFACTURERS

By Kajol Singh & Parthiv Shukla

Dealers Want Excise Relief On Inventories Available With Them As On Dec 7

There seems to be a never ending trouble in the auto industry over who shares the ‘hit’ due to the 4% excise duty reduction. As reported by TOI on December 9, a major fight is now brewing up over sharing of the burden on the inventory bought at higher excise duty.

Federation of Automobile Dealers Association (FADA) has estimated that the burden could be to the tune of Rs 600 crore. And with manufacturers not very forthcoming to help meet this cost, they have now petitioned the government for relief, requesting that excise relief be also applicable on the inventories/stocks available with them as on December 7 (the day the government’s financial package was announced).

Dealers, who are cash-starved because of poor margins and low demand, on Tuesday wrote letters to various ministries, including finance and commerce, as well as to the Planning Commission and Cabinet secretariat for help to “correct the unpleasant, anomalous situation”.

“The automobile dealers, saddled with huge inventories due to slowdown, find themselves in a bind. The automobile retail trade collectively may have to take a hit of Rs 500-600 crore in clearing the existing stocks at the revised prices announced by the manufacturers. We, therefore, request that the benefit of 4% excise duty cut may also be extended to the stocks already lying with the automobile dealers as on December 7,” FADA secretary general Gulshan Ahuja petitioned.

“The situation is particularly bad in two-wheelers where some companies have said they are ready to share only 50% of the burden while the dealer will have to chip in with the rest. This is just not acceptable as dealers are cash-crunched and are carrying huge inventories following very poor demand in the market,” a leading dealer said on condition of anonymity.

Another dealer said instead of helping dealers meet the burden, companies were now coming out with indirect schemes that were of no use. “We have been given a ‘target-based’ scheme under which the company will only compensate us if we are able to achieve a particular sales target,” the dealer said.

FADA officials said this was “not at all acceptable” and they were looking at greater engagement and support from the manufacturers. The dealer association has already written to the Society of Indian Automobile Manufacturers (SIAM), the grouping of auto manufacturers, for support. “We hope that the manufacturers would come forward to compensate the automobile dealers for the inventories already held by them,” it said in a letter to SIAM.

A ‘BIG FIGHT’ BETWEEN AUTO DEALERS & MANUFACTURERS

By Kajol Singh & Parthiv Shukla

Dealers Want Excise Relief On Inventories Available With Them As On Dec 7

There seems to be a never ending trouble in the auto industry over who shares the ‘hit’ due to the 4% excise duty reduction. As reported by TOI on December 9, a major fight is now brewing up over sharing of the burden on the inventory bought at higher excise duty.

Federation of Automobile Dealers Association (FADA) has estimated that the burden could be to the tune of Rs 600 crore. And with manufacturers not very forthcoming to help meet this cost, they have now petitioned the government for relief, requesting that excise relief be also applicable on the inventories/stocks available with them as on December 7 (the day the government’s financial package was announced).

Dealers, who are cash-starved because of poor margins and low demand, on Tuesday wrote letters to various ministries, including finance and commerce, as well as to the Planning Commission and Cabinet secretariat for help to “correct the unpleasant, anomalous situation”.

“The automobile dealers, saddled with huge inventories due to slowdown, find themselves in a bind. The automobile retail trade collectively may have to take a hit of Rs 500-600 crore in clearing the existing stocks at the revised prices announced by the manufacturers. We, therefore, request that the benefit of 4% excise duty cut may also be extended to the stocks already lying with the automobile dealers as on December 7,” FADA secretary general Gulshan Ahuja petitioned.

“The situation is particularly bad in two-wheelers where some companies have said they are ready to share only 50% of the burden while the dealer will have to chip in with the rest. This is just not acceptable as dealers are cash-crunched and are carrying huge inventories following very poor demand in the market,” a leading dealer said on condition of anonymity.

Another dealer said instead of helping dealers meet the burden, companies were now coming out with indirect schemes that were of no use. “We have been given a ‘target-based’ scheme under which the company will only compensate us if we are able to achieve a particular sales target,” the dealer said.

FADA officials said this was “not at all acceptable” and they were looking at greater engagement and support from the manufacturers. The dealer association has already written to the Society of Indian Automobile Manufacturers (SIAM), the grouping of auto manufacturers, for support. “We hope that the manufacturers would come forward to compensate the automobile dealers for the inventories already held by them,” it said in a letter to SIAM.

Rail Offices to have Biometric Security

By Ayaan Khan

The Railways has drawn up a major plan to bolster its security by introducing biometric system for controlling access to its vital offices. The move has been taken keeping in mind the heightened threat from terrorists and naxalites.

The security aspect of the plan has also been urgently incorporated in the “World Class Station (WCS) project”. Bidders for this project—over 86 hectares of land area in Delhi—have to ensure that every office in the multi-storied building has foolproof security.

Access to all vital railway offices will be controlled through the biometric system or smart cards, ensuring that only authorised officials enter them. These offices include the control room (from where all train movements are controlled and planned), the railways internet system, the PRS data base (which contains vital information on trains, passengers, their identity and movement), and the cash reserve office (where between Rs 3.5 lakh and Rs 4 lakh cash is handled in New Delhi every day).

There will be an electronic surveillance system on all floors of the railway building. The parcel areas are being segregated and large scanners are to be installed to scan each and every luggage. Surveillance cameras and bomb detection equipment will be installed in the parking areas, according to a senior railway official.

To ensure that terrorists don’t enter railway stations, there will be strict security check at the peripheral entry of stations. The world class station coming up at New Delhi, which will be replicated at 22 other places, will ensure that entry and exit will be on separate floors. Keeping in mind stations are a public place, the authorities are providing a multi-layered security system, where some offices will be out of bounds for the public.

At present on an average, about 4 lakh people visit New Delhi railway station every day. The WCS coming up here envisages a futuristic plan of accommodating 8 lakh people. To further reduce the pressure, another railway station at Anand Vihar in East Delhi is fast coming up. The railways is constructing two more mega railway stations at Holimbi Kalan in North Delhi and at Bijwasan on the Dwarka-Gurgaon border in South-West Delhi. Several major trains will be shifted to these stations for convenience of passengers. The process of land acquisition for these two terminals is underway.

However, People will be allowed to enter other areas after due scrutiny, the official said.

UN-FARE AIRLINE PRACTICE

By M H Ahssan & Rajat Kapoor

Fliers get vouchers instead of ticket refunds

When Delhi-based software engineer Shruti Das cancelled her trip to Mumbai after the terror attacks last month, she had no idea that her airfare money would never be refunded. Das, who had made the bookings through an airline call centre, was handed over a voucher by the airline for the same amount. The catch was the voucher had to be availed by her or any of her kin within six months. Instead of a refund of Rs 6,250 after the deduction of cancellation charges, Das is stuck with a voucher she can’t use.

“I wanted the money back. The voucher is of no use as I won’t be travelling for some time now. Even if I do, I might not prefer the same airline,’’ Das said. Getting a refund for a cancelled ticket or a cancelled flight has been a problem for passengers for some time now.

Many airlines are offering passengers a voucher or a ticket of the same amount, which has to be availed of within a stipulated period; otherwise, the amount is forfeited. This practice has not gone down well with fliers.

“In case I try to use the voucher, I will end up paying more as the fare may increase,’’ said another passenger, who was offered a coupon by an airline. This passenger, who had to board a Bhubaneshwar-Kolkata flight, was told at the last minute that the aircraft would take a detour to at least three other places.

“This flight would have taken longer. I thought it best to cancel and book another flight. Instead of a refund, the airline gave me a coupon to be used within three months,’’ she said.

Experts said the financial condition of airlines made it difficult for them to pay back the passengers. “Once a ticket is bought, the money is ‘absorbed’ by the airline. It is difficult for them to shell it out again. They offer these coupons, which might help them retain the passenger and get them more money as the price of the ticket will only increase,’’ Air Passengers’ Association of India chairman Sudhakar Reddy I said.

“Whatever be the condition, passengers shouldn’t be paying for it,’’ he said, adding that his most of the complaints registered at his organisation were about ticket refunds.

Foreign Students Now Come Under Scanner

By M H Ahssan

Foreign students — enrolled in different institutions in India — are under the police scanner. Their visa details are being scrutinised to find out whether some of them might have overstayed, posing a security risk.

The move has been initiated by the Foreigners Regional Registration Offices (FRROs) through respective state/UT police forces across the country in the wake of the Centre’s direction to weed out overstaying foreign nationals through detailed checks post-Mumbai terror attacks.

“Although it is an ongoing exercise in the case of all foreigners who visit India on valid documents, the idea is to sensitise educational institutions of the problem of overstaying students and its security implications for India,” said a senior home ministry official.

Latest statistics compiled by the home ministry show that there were a total of 28,842 foreign students in the country till December 31, 2007. Delhi has the highest number of such students (7,424). Four other states — Maharashtra (5,551), Tamil Nadu (4,956), Andhra Pradesh (2,289) and West Bengal (1,697) — too have significant numbers.

The country-wise figures of foreign students show that the highest number of students in the country are from USA followed by Sri Lanka, Hungary, Bangladesh, Sudan, Thailand, UK, Kenya, Afghanistan and Malaysia. Incidentally, no Pakistani student was enrolled in the country as on December 31, 2007.

Though the ministry has not come out with any specific figure of overstaying foreign students, the enormity of the problem can be understood by the huge numbers of missing Bangladeshi and Pakistani nationals who have just disappeared while visiting India on short-term visa.

The figure shows that over 62,000 Bangladeshi nationals disappeared after expiry of their visa during 2005-07. The number of missing Bangladeshis (62,547) is, in fact, much higher than the number of Pakistanis (22,097) who had come to India using proper visas and subsequently vanished.

The other foreign nationals who went missing after arrival in 2005, include 11,845 Afghanistanis, 53 Chinese, 208 Japanese, 176 Australians, 1,142 from USA and 411 from UK.

An official explained that all those who might have overstayed or disappeared may not be a security threat, but the enforcement agencies cannot take the risk of ignoring them.

Foreign Students Now Come Under Scanner

By M H Ahssan

Foreign students — enrolled in different institutions in India — are under the police scanner. Their visa details are being scrutinised to find out whether some of them might have overstayed, posing a security risk.

The move has been initiated by the Foreigners Regional Registration Offices (FRROs) through respective state/UT police forces across the country in the wake of the Centre’s direction to weed out overstaying foreign nationals through detailed checks post-Mumbai terror attacks.

“Although it is an ongoing exercise in the case of all foreigners who visit India on valid documents, the idea is to sensitise educational institutions of the problem of overstaying students and its security implications for India,” said a senior home ministry official.

Latest statistics compiled by the home ministry show that there were a total of 28,842 foreign students in the country till December 31, 2007. Delhi has the highest number of such students (7,424). Four other states — Maharashtra (5,551), Tamil Nadu (4,956), Andhra Pradesh (2,289) and West Bengal (1,697) — too have significant numbers.

The country-wise figures of foreign students show that the highest number of students in the country are from USA followed by Sri Lanka, Hungary, Bangladesh, Sudan, Thailand, UK, Kenya, Afghanistan and Malaysia. Incidentally, no Pakistani student was enrolled in the country as on December 31, 2007.

Though the ministry has not come out with any specific figure of overstaying foreign students, the enormity of the problem can be understood by the huge numbers of missing Bangladeshi and Pakistani nationals who have just disappeared while visiting India on short-term visa.

The figure shows that over 62,000 Bangladeshi nationals disappeared after expiry of their visa during 2005-07. The number of missing Bangladeshis (62,547) is, in fact, much higher than the number of Pakistanis (22,097) who had come to India using proper visas and subsequently vanished.

The other foreign nationals who went missing after arrival in 2005, include 11,845 Afghanistanis, 53 Chinese, 208 Japanese, 176 Australians, 1,142 from USA and 411 from UK.

An official explained that all those who might have overstayed or disappeared may not be a security threat, but the enforcement agencies cannot take the risk of ignoring them.

CPI Gunning for Vijayawada LS Seat

By M H Ahssan

In a move that could surprise even its main rival Congress, the CPI is reportedly lobbying for the Vijayawada Lok Sabha seat with its new ally Telugu Desam Party (TDP).

The CPI, which has a strong base in the city, is not willing to leave the opportunity this time round as a win in the heart of the Coastal Andhra region would help the party restore past glory, aver sources. Sources said the CPI’s move is likely to relieve many of the TDP leaders in the constituency as none of them is ready to contest the LS elections due to infighting within the party. “The TDP would be more than happy to allocate the Vijayawada LS seat if the CPI is really serious about it,” confirmed a senior TDP leader. TDP’s candidate in the last elections, film producer C Aswani Dutt, who was never seen in the constituency after his defeat in the 2004 elections, is unlikely to return, a source said.

Political observers said the CPI’s confidence stems from the fact that it had held the city mayoral post thrice in the past. Also, the party has been coming up trumps in the Vijayawada (West) Assembly segment. “It is but natural that the CPI would like to have its own candidate from the key seat in the 2009 elections,” an observer said.

Curiously, TDP urban unit convenor Gadde Rammohan, who was once considered as giant killer after defeating the ex-Congress’ stalwart P Upendra, had openly expressed his unwillingness to contest the LS election. “The urban
unit is no one’s child as the leaders are engaged in quarrelling among themselves. Party chief Chandrababu Naidu’s repeated warnings have failed to put the house in order,” admitted a senior leader.

Even before the trouble between party’s west incharge Budha Venkanna and another leader Katragadda Babu subsided, the SC leaders have revolted against the urban party leadership demanding a sizeable share in the tickets. When two groups in Gannavaram started warring with each other, Rammohan left it to the high command to solve the issue.

The party has also failed to stop the only minority leader Jaleel Khan, who has a sizeable following in the district, when he left the party to join the Congress.

CPI Gunning for Vijayawada LS Seat

By M H Ahssan

In a move that could surprise even its main rival Congress, the CPI is reportedly lobbying for the Vijayawada Lok Sabha seat with its new ally Telugu Desam Party (TDP).

The CPI, which has a strong base in the city, is not willing to leave the opportunity this time round as a win in the heart of the Coastal Andhra region would help the party restore past glory, aver sources. Sources said the CPI’s move is likely to relieve many of the TDP leaders in the constituency as none of them is ready to contest the LS elections due to infighting within the party. “The TDP would be more than happy to allocate the Vijayawada LS seat if the CPI is really serious about it,” confirmed a senior TDP leader. TDP’s candidate in the last elections, film producer C Aswani Dutt, who was never seen in the constituency after his defeat in the 2004 elections, is unlikely to return, a source said.

Political observers said the CPI’s confidence stems from the fact that it had held the city mayoral post thrice in the past. Also, the party has been coming up trumps in the Vijayawada (West) Assembly segment. “It is but natural that the CPI would like to have its own candidate from the key seat in the 2009 elections,” an observer said.

Curiously, TDP urban unit convenor Gadde Rammohan, who was once considered as giant killer after defeating the ex-Congress’ stalwart P Upendra, had openly expressed his unwillingness to contest the LS election. “The urban
unit is no one’s child as the leaders are engaged in quarrelling among themselves. Party chief Chandrababu Naidu’s repeated warnings have failed to put the house in order,” admitted a senior leader.

Even before the trouble between party’s west incharge Budha Venkanna and another leader Katragadda Babu subsided, the SC leaders have revolted against the urban party leadership demanding a sizeable share in the tickets. When two groups in Gannavaram started warring with each other, Rammohan left it to the high command to solve the issue.

The party has also failed to stop the only minority leader Jaleel Khan, who has a sizeable following in the district, when he left the party to join the Congress.

Mushairas Reflect Conflict in Society

By M H Ahssan

“Koi dul dul sawar aya nahin kyun, tere bandon ne kii aisi khata kya?” (What mistake have your people made/that no angels came to save us). These lines by Ashraf Rafi, could well express the Hyderabadi ‘shaer’s state of mind now, though they were actually written on the Babri Masjid demolition. Moving ahead from love and peace, mushairas are responding to sociopolitical reality now more than ever before.

Shaera (poetess) Ashraf Rafi, a professor of Urdu literature recalls, “Shaers have always been sensitive to socio-political issues, right from the Ghadar or the first war of independence, the Partition, through the assassination of Indira Gandhi to the recent terror attacks on Mumbai.” Mushairas turned to politics as “shaeri took on the ‘inquilabi’ style to speak on politics, labour problems and social stigma,” says S A Shukoor, director of Centre for Educational Development of Minorities.

Clearly, terrorism is the latest area of concern as was evident during a recent mushaira, dominated by the 26/11 attacks. A poet laments, “raushnion ke shahar mein kaisa bair, din dahade yeh kaisa andher,” (what conflict in the city of lights, what dark gloom in broad daylight) in describing the Mumbai attacks. Another poet describes a child’s reaction: “pathake bhi kahin jo chhoote hain, saham jate hain bachche bum samajhkar.” (even when crackers burst somewhere, children withdraw, fearing it may be a bomb).

Expressions of grief and dismay give way to apprehensions and insecurity. A poet reflects on what the post-terror attack scenario may have in store for the minority community, “kal media pe ayega kuch is tarah bayan, ghar ke chirag ne hi jalaya hai ghar yahan.” (tomorrow there will be a media statement, that a spark or a child at home had burnt the house down). “Hyderabad is a heaven for mushaira lovers, shaers have always been received better here than elsewhere,” says poet Johar Kanpuri.

In fact, most mushairas here host over a dozen local shaers, including youngsters, alongside reputed poets from elsewhere. Many youngsters write on topics of contemporary interest, says a mushaera convener.

The appeal of modern shaeri lies in the simple language used to reflect an intense reaction, expressing either the consent or discontent of the common man.

That is probably why mushairas attract a generous mix of elite and mass audience and enjoy the backing of Urdu media houses and organisations like Zinda dilane Hyderabad, Adabi Trust, Gulshan-e-Adab, Shankarji Memorial Trust, etc.

Kanpuri observes that more shearas (women poets) are participating in mushairas now. However, experts say that few shaeras bring good quality poetry. “Some time ago, shaeras like Nayab Sultana, Azmat Abdul Khayyum Khan and Kurshid Nazir were widely appreciated.

Though the numbers of shaeras have gone up, they are used merely for commercial purpose, to attract audience. Otherwise some of them do not even know proper Urdu and are unworthy of attending mushairas,” says a poetess who prefers anonymity.

Women’s issues are also relegated to the back burner, mostly because they are not appreciated by audience, say observers.

Evidently shaers have to walk the tightrope as they balance their concern for community and social issues with their tradition of cultural synthesis. Kanpuri sums it up: “Zidau ne tarke talluk to kar liya lekin sukun use bhi nahin, bekarar main bhi hun/ aur zaban kahti hai sara kusur uska tha, zameer kahta hai kuch zimmedar main bhi hun.”(We argued and debated obstinately, but s/he is not at peace and I am restless too/ and words say that all the blame was anothers, conscience says I am responsible too.)

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Populist in Dock – ‘Janani’ Facing Cash Crunch

By Swati Reddy

Mothers With Their New-Borns Making Rounds Of Govt Hospitals

The government has ‘incentivised’ institutional delivery by giving cash assistance under the Janani Suraksha Yojana (JSY). However, the ‘janani’ (mother) is having a tough time to avail the assistance as she is made to make rounds to the hospital with the new-born as proof.

Under the Janani Suraksha Yojana (JSY) scheme, the government extends cash assistance to women who go in for institutional delivery within 48 hours. However, government hospitals in the city take nothing less than 45 days to disburse the paltry Rs 600.

Shabana Begum from Shaheen Nagar, who delivered a baby girl at Government Maternity Hospital, Nayapul, three months ago, got the money on her fourth visit to the hospital. “The staff at the hospital informed us about the JSY and asked us to collect the money. However, when we approached the concerned official, he said there was a cash crunch and asked us to come later. Another time, they said tokens were over at around 12 noon. We ended up spending nearly Rs 600,” Mohammed Mujahid, Shabana’s husband who was accompanying her, said.

On the other hand, Ruqaiyah Begum from Hassannagar, who gave birth to twins, could not avail the benefit as the staff wrote her name wrongly on the form and later refused to make corrections.

Blaming improper release of the budget as the reason for the delay, Government Maternity Hospital, Nayapul, RMO Dr K Chandrasekhar said due to some administrative problems also there was a delay.

In March and April, the release of the budget gets delayed and hence the pending cases get carried over, Dr S Sharada of Niloufer Hospital said.

Of the total 58,000 deliveries this year up to December 15 in Hyderabad, a total of 4,800 women were JSY beneficiaries. And 23,000 family planning operations were done in Hyderabad alone. The government also extends a cash assistance of Rs 880 for women from below poverty level (BPL) families, while for others it is Rs 250 for getting family planning operations done. Men are being given Rs 1,450 and Rs 1,000 respectively for getting a vasectomy done. “As per data, around 17 per cent of AP’s population comes under BPL category. However, everybody claims they are from BPL family. The JSY is a complex issue. We have issued a circular to the auxillary nurse midwives (ANMs) to keep Rs 5,000 in advance so that they can pay soon after the delivery is done. There is no fund crunch,” commissioner, family welfare, Dr Anil Punetha told HNN.

About 88 per cent of births in Andhra Pradesh are now institutional deliveries. This year, the government sanctioned Rs 1.90 crores for the JSY.

Dengue Cases on the Rise in City

By Karuna Madhavi

Even as Greater Hyderabad Municipal Corporation (GHMC) officials make tall claims about complete sanitation and door-to-door garbage collection, dengue cases have reached alarming levels in the city. As many as 90 cases were reported in the city, while another 25 cases were discovered in the surrounding Ranga Reddy district this year. Last year 57 cases were reported in the city and 25 in the surrounding areas.

Dengue fever is caused by a virus which enters the human body when an infected mosquito bites. The person infected with the virus suffers from high fever and headache.

Also, the 90 cases were reported at government institutes like Fever Hospital, Gandhi and Osmania General Hospitals. However, officials have not recorded dengue cases reported at private hospitals. Sources said the number of dengue cases could be over 200 if patients treated by private hospitals are also taken into consideration.

According to a Director of Health report, 89 dengue cases were reported in the city since January 2008, compared to 57 cases last year. Similarly, 25 cases were reported in the surrounding Ranga Reddy district this year against last year’s 42 cases. However, there were no reported deaths due to the deadly fever this year. Interestingly, 30 per cent of the total dengue cases (307) in the state are from the city. “There were 1,024 dengue suspected cases in the state this year. Compared to last year, the number of dengue cases have come down to 307 from 587 and two persons died due to dengue. But in the city, there is a rise in dengue cases,’’ additional director (malaria) Dr S S C Chakra Rao told HNN.

GHMC officials claim several cases were detected in the surrounding Ranga Reddy, Nalgonda and Medak district, but patients land in city hospitals for treatment. As per the report by the Director of Health officials, malaria cases were also on the rise in the city. This year, 275 confirmed malaria cases were reported from the hospitals, while only 253 cases were recorded in 2007.

Dengue Cases on the Rise in City

By Karuna Madhavi

Even as Greater Hyderabad Municipal Corporation (GHMC) officials make tall claims about complete sanitation and door-to-door garbage collection, dengue cases have reached alarming levels in the city. As many as 90 cases were reported in the city, while another 25 cases were discovered in the surrounding Ranga Reddy district this year. Last year 57 cases were reported in the city and 25 in the surrounding areas.

Dengue fever is caused by a virus which enters the human body when an infected mosquito bites. The person infected with the virus suffers from high fever and headache.

Also, the 90 cases were reported at government institutes like Fever Hospital, Gandhi and Osmania General Hospitals. However, officials have not recorded dengue cases reported at private hospitals. Sources said the number of dengue cases could be over 200 if patients treated by private hospitals are also taken into consideration.

According to a Director of Health report, 89 dengue cases were reported in the city since January 2008, compared to 57 cases last year. Similarly, 25 cases were reported in the surrounding Ranga Reddy district this year against last year’s 42 cases. However, there were no reported deaths due to the deadly fever this year. Interestingly, 30 per cent of the total dengue cases (307) in the state are from the city. “There were 1,024 dengue suspected cases in the state this year. Compared to last year, the number of dengue cases have come down to 307 from 587 and two persons died due to dengue. But in the city, there is a rise in dengue cases,’’ additional director (malaria) Dr S S C Chakra Rao told HNN.

GHMC officials claim several cases were detected in the surrounding Ranga Reddy, Nalgonda and Medak district, but patients land in city hospitals for treatment. As per the report by the Director of Health officials, malaria cases were also on the rise in the city. This year, 275 confirmed malaria cases were reported from the hospitals, while only 253 cases were recorded in 2007.

Now, Oil Cheaper Than Water

By Kajol Singh

Black gold has lost its sheen. What a litre of petrol or diesel costs oil majors now is less than the price of a bottle of packaged water you buy.

Back-of-envelope calculations show that a litre of petrol costs about Rs 11 and diesel about Rs 13, excluding transportation and other sundry charges etc. In contrast, you pay between Rs 12 and 15 for a one-litre bottle of water. Here’s how the arithmetic goes: A barrel of crude oil contains about 190 litres. At $38 a barrel, the current price in the international market, each litre of crude works out to Rs 10, taking the exchange rate at Rs 50 to a dollar. On an average, approximately 28-29 litres of petrol and 85 litres of diesel are refined from each barrel of crude.

Admittedly, this figure can vary according to the type of crude being processed and the technology deployed in a refinery. So how much would the price of a litre of motor fuels be after incurring the cost of refining, if there were no other charges?

The calculation is so mind-boggling that sometimes even executives of oil marketing companies get bogged down by the myriad Central and state
taxes — levied at incremental rates –and complex charges such as ‘freight equalisation levy’ and dealer margins etc. Such levies put together make up 45-55% of the sale price of the products.

So if petrol costs over Rs 45 a litre in Delhi, taxes and levies make up about Rs 22 and another Rs 12 constitutes the oilmarketing firms’ profit margin. That leaves a basic cost of about Rs 11 per litre. Similarly, at Rs 32 a litre — the Delhi price of diesel –the actual cost can be taken as Rs 13 as the companies are making a profit of almost Rs 3 a litre. These calculations are admittedly extremely simplistic and do not take into account other products such as kerosene, jet fuel, cooking gas, naphtha etc that are produced along with motor fuels and have a bearing on the final cost of each product. However, there won’t be a big difference between these figures and the figures worked out by the industry. With crude projected to slide further in the coming days as the global slowdown gets a firmer grip on industry and pushes demand further down, the obvious question this raises is: When will our pump prices go down further?

HNN has repeatedly said this will happen just before the elections are announced.

Now, Oil Cheaper Than Water

By Kajol Singh

Black gold has lost its sheen. What a litre of petrol or diesel costs oil majors now is less than the price of a bottle of packaged water you buy.

Back-of-envelope calculations show that a litre of petrol costs about Rs 11 and diesel about Rs 13, excluding transportation and other sundry charges etc. In contrast, you pay between Rs 12 and 15 for a one-litre bottle of water. Here’s how the arithmetic goes: A barrel of crude oil contains about 190 litres. At $38 a barrel, the current price in the international market, each litre of crude works out to Rs 10, taking the exchange rate at Rs 50 to a dollar. On an average, approximately 28-29 litres of petrol and 85 litres of diesel are refined from each barrel of crude.

Admittedly, this figure can vary according to the type of crude being processed and the technology deployed in a refinery. So how much would the price of a litre of motor fuels be after incurring the cost of refining, if there were no other charges?

The calculation is so mind-boggling that sometimes even executives of oil marketing companies get bogged down by the myriad Central and state
taxes — levied at incremental rates –and complex charges such as ‘freight equalisation levy’ and dealer margins etc. Such levies put together make up 45-55% of the sale price of the products.

So if petrol costs over Rs 45 a litre in Delhi, taxes and levies make up about Rs 22 and another Rs 12 constitutes the oilmarketing firms’ profit margin. That leaves a basic cost of about Rs 11 per litre. Similarly, at Rs 32 a litre — the Delhi price of diesel –the actual cost can be taken as Rs 13 as the companies are making a profit of almost Rs 3 a litre. These calculations are admittedly extremely simplistic and do not take into account other products such as kerosene, jet fuel, cooking gas, naphtha etc that are produced along with motor fuels and have a bearing on the final cost of each product. However, there won’t be a big difference between these figures and the figures worked out by the industry. With crude projected to slide further in the coming days as the global slowdown gets a firmer grip on industry and pushes demand further down, the obvious question this raises is: When will our pump prices go down further?

HNN has repeatedly said this will happen just before the elections are announced.

Saudi Arabia Budget has Good News For Exporters

By Javid Hassan

Saudi Arabia’s national budget, which was unveiled this week, contains several positive features that should be of interest to Indian businessmen and entrepreneurs. Even though it is a deficit budget, the government has ensured that its economic stimulus package will continue to boost infrastructural development, while it has also made substantial allocation for education and manpower training.

Another noteworthy feature is that while all other countries have frozen increase in the government employees’ salaries, Saudi Arabia has bucked the trend by sanctioning a five percent increase in their pay packets. Thus, there will be continued consumer spending for sustaining the demand for these goods. Even so, it will be a buyer’s, not seller’s, market, since competition will be really stiff. Exporters of construction material, healthcare products and consumer goods should aim at lower profit margins if they want to make a dent into the Saudi market.

Strengthening physical and social infrastructure has always remained a priority of the government’s spending policy. It is deemed to be a clear and expeditious way of passing on the benefits of the ballooning oil revenues to the people.

The Saudi 2009 budget is more aggressive than in the past, since it has hiked government spending despite a fall in revenues. It also seeks to reassure the private sector that the government is committed to national growth despite the drop in oil prices. In fact, the deficit, the first since 2004, projects expenditure at SR475 billion ($ 126.6 billion ) and revenues at SR410 billion ($109.3 billion). This is in marked contrast to the record budget surplus of over $157 billion posted this year.

The more than $ 126 billion economic stimulus budget represents a 16 percent increase compared to the 2008 budget, the largest since 2006. It marks a 7 percent drop in terms of actual spending this year. In this context, Jadwa, a Riyadh-based financial consulting firm, estimates that the current spending is budgeted to shoot by $ 1.3 billion.

The firm forecasts a budget surplus of over $ 23 billion next year, since oil revenues are projected to increase to $ 149 billion while non-oil revenues will stand at $ 24 billion. According to it, this year’s budget was based on an oil price of $45 per barrel, while it is expected to average around $95 per barrel in view of OPEC’s decision to slash oil production by 2.2 million bpd since January 1 this year. Indian national industry and the business community should not gloss over the anticipated surge in oil prices in their plans for next year.

In the meantime, there is good news on the real estate front, which is set for a market boom in the private and commercial real estate sectors. What is fuelling the demand is the acute housing shortage in the low and middle income segments. Once the mortgage law, which is still in the works, comes into force, it will give a further boost to the construction industry.

This will open up more avenues for overseas businessmen and contractors, provided they don’t keep their expectations high. Nevertheless, there will be business opportunities in a market where the buyer will call the shot. Another icing on the cake in this budget is the provision for a 5 percent inflation allowance to government employees.

The new budget also allocates a record $ 32.5 billion for education and training. As Saudi finance minister Dr. Ibrahim Al-Assaf has observed, Saudi Arabia ranks among the top 10 countries having the highest spending on education in terms of their GDP. In line with this priority, the government had sanctioned new projects worth over $191 billion in education, water and infrastructure during the past four years. This trend has been maintained in the current budget as well.

Saudi businessmen have also urged the government to step up spending on infrastructure projects in order to offset the impact of the global crisis. They also want the government to adopt measures designed to boost the non-oil revenues. Presently, oil contributes 90 percent of the Kingdom’s revenues. The private sector wants the share of the non-oil sector to make a meaningful contribution to the national economy.

The thrust of the Saudi budget leaves no room for doubt that infrastructure, education, human resources development and healthcare will remain priority areas despite global recession. The Confederation of Indian Industry (CII) should organize a multi-sectoral delegation along these lines next year in coordination with the Indian Embassy in Riyadh or the Consulate General in Jeddah.

The right time for showcasing Indian technology and knowhow is on the occasion of the many exhibitions that take place periodically. They should also arrange seminars on the sidelines of these events to send across the message that India can offer state-of-the-art technology at a much cheaper price than in the West. They should not forget that China will underline its ubiquitous presence at these road shows by offering its products at ridiculously cheap rates compared to ours.

South Asia Descends into Terror’s Vortex

By M H Ahssan

South Asians will watch the year end in a pall of gloom. The region is fast getting sucked into the vortex of terrorism. The Afghan war has crossed the Khyber and is stealthily advancing towards the fertile Indo-Gangetic plains.

Whatever hopes might have lingered that Barack Obama would be a harbinger of “change”, have also been dashed by US Secretary of State Condoleezza Rice. The Financial Times of London reported on Monday that in an exclusive interview Rice prophesied that the incoming Obama administration might have little option but to follow the current US approach on a range of foreign policy issues. Significantly, her prognosis figured in the course of a foreign policy review that primarily focused on Russia, Iran and Afghanistan.

South Asian security is at a crossroads. On the one hand, the United States made great strides in getting embedded in the region on a long-term footing. South Asia must figure as a rare exception in the George W Bush era’s dismal foreign policy legacy. On other hand, the big pawn on the South Asian chessboard, India, is heading for parliamentary elections. Almost certainly, a new government with new thinking will assume office in Delhi by May. US-India ties will also come under scrutiny.

Hype of US-India ties
The Bush administration made the Indian leadership feel “special”. The Indian establishment felt comfortable with the US’s regional policy, which it fancied as working in favor of its aspirations to emerge as the pre-eminent power in the Indian Ocean region. Delhi had no problems with the creeping “militarization” of the Bush administration’s regional policy; more precisely, the Pentagon’s “muscling” or ”encroachment” into a striking number of aspects of the US government, including its foreign policy, as Thomas A Schweich, former senior State Department official with hands-on experience on Afghanistan, put it in a devastating article last Sunday in the Washington Post

What mattered to Delhi was that the US regional policy regarded India as a counterweight to China. Equally, Delhi was not perturbed that the cold warriors in Washington were relentlessly pursuing a policy of encirclement of its traditional ally Russia or pressing for a regime change in Iran, India’s close friend. In fact, Delhi cut adrift from the regional politics and single-mindedly focused on its strategic partnership with the US, which, it felt, if carefully nurtured, would take care of India’s two main challenges on the foreign policy front, namely, its adversarial relationships with China and Pakistan, and elevate India altogether from the morass of its regional milieu.

The US-India nuclear agreement signed in September, the burgeoning military-to-military cooperation, the prospect of “inter-operability” between the two armed forces – all this elevated US-India ties to the level of a veritable alliance.

Delhi took in its stride the status of a key “non-NATO ally” that the US regional policy ascribed to India’s arch-rival Pakistan – comfortable in the estimation that the Pakistani connection after all was a passing need of the US in the context of the Afghan war, whereas India was the US’s “natural ally”.

Meanwhile, Delhi systematically began harmonizing its own regional policies with the US’s strategy, especially with regard to rolling back its cooperation with Iran while boosting security ties with Israel, distancing itself from the trilateral format involving Russia, China and India, and reducing to a minimum its involvement with the Shanghai Cooperation Organization.

India signed up with a “quadrilateral alliance” involving the US, Japan, Australia and India in a bizarre containment strategy toward China, which, of course, annoyed Beijing. Some in the Indian strategic community openly threatened to play a “Tibet card” against China, confident in the strength of the US-India strategic partnership. Hubris crept into the Indian mindset, which was indeed a startling sight, altogether new to the millennia-old largely benign Indian civilizational temper.

The Indian leadership paid heed to US and Israeli opposition to the Iran-Pakistan-India gas pipeline project despite its immense significance for India’s energy security, besides holding the potential of realizing a long-lost dream of making Pakistan a real “stakeholder” in good-neighborly relations. In a dramatic illustration of how much Delhi’s policies shifted, the Indian security czars took the visiting Israeli army chief in September to the Indian state of Jammu and Kashmir, almost signaling that India was joining hands with the US-Israeli fight against “Islamic terror”.

It was a calibrated act of strategic defiance, extraordinary for Delhi’s traditionally cautious West Asia policy or power projection in the Arab world. Delhi was showing its thumb’s up at the Muslim opinion regarding the US-led war against “Islamic terror”. It didn’t seem to care how much antagonism was building up against the US’s war on Islamic terror or against Israel’s state terrorism within Pakistan and in the neighboring regions of the Muslim Middle East.

Israel’s influence on the Indian foreign and security establishment peaked. Most important, Delhi overlooked all pressing evidence that the US-led war in Afghanistan was closely linked to the containment strategy towards Russia and Iran (and China) and the eastward advance of the North Atlantic Treaty Organization (NATO) into the Asian theater.

In February, when visiting US Secretary of Defense Robert Gates suggested an Indian military deployment in Afghanistan, it was received with careful attention and empathy. Some Indian analysts argued that this was actually a good thing as it would inevitably lead to the US and India joining hands to cleanse Pakistan’s body polity of its Islamic fervor and make it a truly civilized, democratic country.

Indian illusions shaken up
Then the terrorists struck on the western Indian city of Mumbai, India’s financial capital, on November 26. The horrific violence came as a chilling reminder to Delhi that the more things seemed to change in the power equilibrium in South Asia, they have remained much the same as they were through past decades. India quickly sobered up to the realization that its security is ultimately defined by its neighborhood and there is no running away from the hard realities of life.

The past four-week period has also shaken up Indian illusions regarding Washington’s regional policies. It is plain to see that the US never really abandoned its “hyphenated” policy towards India and Pakistan as South Asia’s two important rival powers, both of which are useful in their own ways for the pursuit of the US’s geostrategies.

Within hours of the Mumbai attacks, Rice rushed to Delhi to commiserate. She promised quick action to bring the terror machine to book. She urged Delhi to exercise restraint while she worked on the Pakistani leadership to cooperate with India. She then flew to Pakistan. Two other top US officials followed up Rice’s mission in the following weeks. Delhi waited patiently though evidence began to pile by the hour that the terrorists had set out from Pakistani soil in a well-orchestrated operation of high professional skill that would have been possible only with the connivance and support of the security establishment in Islamabad.

Meanwhile, Pakistan, which is vastly experienced in handling Washington’s “pressure”, began ably working on Rice and the US military and political establishment. By last week, Islamabad seemed to have concluded that the US pressure had all but run its course. Actually, by gently holding out the threat to the US that the Afghan operations would grievously suffer unless Washington restrained Delhi from precipitating any tensions on the India-Pakistan border, Islamabad seems to have neatly pole-vaulted over Rice to appeal straight to the Pentagon, where there is abiding camaraderie towards the Pakistani generals.

The Pakistani generals’ calculation proved correct when the Pentagon made it abundantly clear to Delhi that it wouldn’t allow the Pakistani generals to be “distracted” at this juncture. Speaking from Camp Eggers in Afghanistan on December 20, Admiral Mike Mullen, chairman of the US Joint Chiefs of Staff, laid down the ground rules for India. He said the overarching strategy for success in Afghanistan must be regional in focus and include not just Afghanistan, but also Pakistan and India. Continuing in this seemingly innocuous vein, Mullen explained that the three countries must “figure a way” to decrease tensions between them and the “regional strategy” here is aimed at addressing long-term problems that increase instability in the region.

Mullen then referred specifically to Kashmir as a problem where reduction of tensions “allowed the Pakistani leadership … to focus on the west [border with Afghanistan]“. He expressed apprehension that the terror attack in Mumbai might “force the Pak leadership to lose interest in the west”, apart from bringing India and Pakistan closer to a nuclear flashpoint. Curiously, Mullen gave credit to the Pakistani top brass for cooperation in the Afghan war, which “has had a positive impact” on the ground.

US hinting at Kashmir mediation
Mullen probably hoped to rattle Delhi by confirming what many American “experts” have been recently suggesting, namely, the US is working on a “regional strategy” in South Asia, which grouped Afghanistan, Pakistan and India together. He virtually corroborated a recent hint by US Senator John Kerry (who is expected to chair the powerful Senate Committee on Foreign Relations) that Obama would be appointing a special envoy for South Asia in an unprecedented move.

Delhi finds such ideas completely unacceptable. Delhi traditionally rejected any outside “third-party” mediation in India-Pakistan disputes. Having said that, successive governments in Delhi tacitly acquiesced with a US mediatory role in India-Pakistan relations in the recent years since the Kargil conflict in 1999. To be sure, Delhi’s pragmatism was based on the belief that it wouldn’t be a bad idea if the US used its influence on Pakistan to moderate its policies on the range of issues generating India-Pakistan tensions – Pakistani support for cross-border militancy and terrorism, in particular. In other words, Delhi preferred to selectively avail of the US mediatory role in areas where it stood to gain.

But an institutionalized US mediatory mission in South Asia hyphenating Afghanistan, Pakistan and India is an altogether different proposition. It not only linked India and Pakistan but it also held out the danger of constant US meddling in Indian policies. The intriguing thing is why the US has projected its “regional strategy” doctrine at this juncture, knowing fully well that Delhi will find it disagreeable.

One possible explanation is that the US is attempting pressure tactics by appointing a special envoy to discuss Kashmir. Washington has been strongly pitching for a fair share of the multi-billion dollar arms deals that are in the Indian pipeline. A single deal for the procurement of 126 aircraft and related supplies including co-production alone can be worth anywhere up to US$16 billion. The Bush administration hoped to clinch the deal before year-end.

Gates visited Delhi in February with the arms merchants and unabashedly canvassed for awarding the contracts through direct negotiations rather than international tender. But the Indians are sticking to their cumbersome tender procedures which require the US companies to compete with Russia and France and other arms manufacturers.

Not only that, Delhi recently overlooked the Pentagon’s sales pitch and awarded a lucrative contract for helicopters to Russia worth $1.3 billion. A leading pro-American newspaper promptly wrote an editorial condemning the Indian government’s decision.

Indeed, Mullen’s statement rings a warning bell for Delhi. But then, a difficult choice lies ahead for Obama. Will he rake up the Kashmir issue as a pressure tactic? It is certain that Delhi will reject any US attempt to mediate on Kashmir. An extraordinarily high voter turnout in the current election to the provincial legislature in Srinagar vindicates Delhi’s stand that there is no need or scope for any outside intervention in the Kashmir issue.

Defying all doomsday predictions and despite the prevailing impression of widespread political alienation among Kashmiris, the voters in the state have affirmed an extraordinary faith in India’s democratic process. The voter turnout touched as high as 60% in the election, which has been held in a atmosphere free of violence and coercion. Therefore, Delhi will see no reason to give in to any third party mediation.

Pakistan seizes initiative
Clearly, there are several templates to the terror attacks on Mumbai. No matter who planned and executed the Mumbai attacks from Pakistani soil and with what complicated motives, the recent events have immensely helped the generals in Rawalpindi at this juncture to correct the imbalances they perceived in the US’s South Asian policies during the past three to four years, which they regarded to be weighed in India’s favor, despite Pakistan being the key US ally in the “war on terror” and its armed forces having taken a heavy beating with hundreds of casualties.

Also, Islamabad has exposed the fallacy in Indian thinking that it occupies the pride of place as the US’s “natural ally” globally, while Pakistan was a mere collaborator in an anti-insurgency war on the Afghan tribal tracts. In turn, the events have also helped Islamabad highlight the complexities of the US-Pakistan relationship, which is far from a client relationship. This comes particularly helpful for Islamabad since there is an air of uncertainty about the policies towards Pakistan under the new administration in Washington. At a minimum, Obama would have noted that the Pakistani generals are no easy pushover. The fact of the matter is that the Rice mission to the region in the wake of the Mumbai attacks brought out the limits to the US’s capacity or willingness or both to “pressure” Pakistan.

Significantly, amid all the fracas over the Mumbai attacks and despite repeated Indian calls to isolate Pakistan in the world community as the “epicenter” of terrorism, Washington is quietly putting together a new multi-billion dollar aid package for Pakistan, and CENTCOM is drawing up a new five-year plan committing $300 million assistance annually to the Pakistani military.

Kerry, while on a recent visit to Islamabad, made the commitment to speed up the “mid-life upgradation” of Pakistan’s F-16 aircraft capable for delivering nuclear weapons. He said the US considered a “vibrant, strong, economically viable” Pakistan to be “vital for peace and stability in South Asia”.

Therefore, it comes as no surprise that Islamabad has weathered the US “pressure” over the Mumbai attacks. In Islamabad’s estimation, the focus in Washington is turning to the gala inaugural ceremony of Obama on January 20, followed by several weeks during which no major US foreign policy initiatives need to be expected as the new administration settles in. Thus, Islamabad has shrewdly judged that sooner, rather than later, the international community will begin counseling Delhi to engage Pakistan in a spirit of dialogue.

India running out of options
With Pakistan’s recalcitrance and Mullen’s veiled threat of reopening the Kashmir file, a sense of frustration is gripping Delhi. Pakistan has ignored India’s tough posturing. The faltering Indian security agencies, which have been in a state of appalling decline in recent years, seem to have failed to put together any hard evidence of a Pakistani involvement in the Mumbai attacks.

The Pakistani generals count on Washington to rein in India. And Delhi is fast running out of options. In the spirit of its “strategic partnership” with the US, if Delhi counted on Washington to read the riot act to Islamabad, it is dismayed to see that Washington is more interested in restraining India rather than do any arm-twisting on Pakistan. Rice increasingly looks like an angel beating her wings in vain, while the Pakistani generals have ensured that the imperatives of the Afghan war leave the Pentagon no option but to be supportive.

At the same time, India is heading for a crucial, tightly fought parliamentary election within a few months and the government cannot afford to appear to be weak and rudderless. The majority opinion in the country somehow has convinced itself that the Pakistani security establishment perpetrated the terrorist attacks in Mumbai. The government faces potentially damaging criticism in the competitive domestic politics that its US-centric foreign policy has run into a cul-de-sac. The powerful pro-US lobby in Delhi’s strategic community and the corporate media already looks confused. The fizz in the US-India strategic partnership is fast vanishing. The much-touted US-India nuclear deal, hailed as a historic achievement of the government, already looks jaded and something of an embarrassment.

Obama’s war priorities
Thus, the challenge facing Obama is having to reconcile the almost irreconcilable contradictions in the US’s South Asia policy. Surely, his number one priority will be to stave off defeat in the war in Afghanistan. Obama’s Afghan strategy is to double the level of US forces in Afghanistan from 32,000 troops at present and to try to arrest and incrementally reverse the Taliban’s steady gains in the recent period. Clearly, the US intends to engage the Taliban politically and is no longer averse to accommodating the Taliban in the power structure at some point in the next year or two, but this has to be from a position of strength. No doubt, 2009 is a decisive year of the war.

At the same time, Afghanistan is heading for presidential elections in 2009. Hamid Karzai has stated his intention to seek another five-year mandate. In 2004, the US was in a commanding position and could dictate the course of Afghan politics. But that is not quite the situation today. Even Karzai is showing the gumption to openly mock at the US’s Afghan strategy. Asked by the Chicago Tribune last week about Obama’s description of Karzai as weak and spending too much time in a bunker, the Afghan president snapped back, “Bunker? We are in a trench, and our allies are with us in the trench. We were on a high hill with a glorious success in 2002 … We must now look back and find out as to why we are in a trench, or if you’d like to describe it, as a bunker.”

Four years ago, it was unthinkable that Karzai would have used such biting sarcasm against the US ambassador in Kabul, Zalmay Khalilzad, let alone Bush. Karzai asked, “Why are we in a bunker?” He then went on to tear the US war strategy to pieces for its mindless and excessive use of force, and concluded, “And if this behavior continues, we will be in a deeper trench than we are in today. And the war against terrorism will end in a disgraceful defeat.”

Clearly, in these troubled times ahead, Obama cannot afford to get tough with the Pakistani generals. He will need all his charm to coax them to cooperate for the successful conduct of the war, and they can be a difficult lot indeed as the recent destruction of the NATO’s supply convoys amply testify. Besides, Pakistan holds the trump card in any political reconciliation involving the Taliban. Arguably, Pakistan has a crucial say in the election of the next Afghan president as well. After all, the onerous duty falls on Islamabad to orchestrate the participation of over 4 million Afghan refugees who are living in Pakistan in the election process, and these ethnic Pashtuns could be a decisive vote bank in determining who the next Afghan president will be.

Of course, much will also depend on Obama’s adherence to the “Great Central Asia strategy”, which aims at rolling back Russia, Iran and China’s regional influence. If he is genuinely keen to work out a durable Afghan settlement, he will need to take help and cooperation from Russia, Iran and India in putting together a credible inter-Afghan reconciliation. In fact, such an approach – broad-basing the search for an Afghan settlement – will help reduce Obama’s dependence on Pakistan. Delhi will welcome such an approach by the Obama administration. But would the cold warriors in Washington allow Obama to opt for a change of course? Unlikely. Indeed, against the backdrop of the Afghan war, there has been a creeping takeover of the US foreign and security policy in South Asia by the generals in the Pentagon who are probably today quite in a position to devour Obama’s call for change.

Reality check for India
All this adds up to a harsh reality for Delhi: it might as well abandon any hopes that Obama will turn the screws on the Pakistani generals. On the contrary, the Pakistani generals may have concluded that it is their turn to expect that the US puts pressure on Delhi to behave with restraint. (Of course, there is no guarantee that such terrorist attacks as on Mumbai do not repeat.) The Pakistani generals may not think it sufficient enough if the US restores an even-handed approach to relations with the two South Asian rivals. Conceivably, they may insist on US mediation in India-Pakistan disputes, especially on the Kashmir issue. They will insist that unless Pakistan is free of its threat perceptions on its eastern border, the armed forces will remain far too “distracted” to concentrate on the war in Afghanistan.

That is why, the denouement of the current crisis over the Mumbai terrorist attacks will be of critical importance for India. Delhi is beginning to feel disenchanted by the US role in the crisis. Using unusually tough language, Indian Foreign Minister Pranab Mukherjee hinted that India’s patience with Pakistan was wearing thin. Speaking in Delhi on Tuesday, Mukherjee made plain his displeasure with the US mediation in the current crisis. He said, “While we continue to persuade the international community and Pakistan, we are also clear that ultimately it is we who have to deal with this problem. We will take all measures necessary as we deem fit to deal with the situation.”

Mukherjee added, “We are not saying this just because we are affected but because we believe that it will be good for the entire civilized world and also for the Pakistani people and society. This terrorist infrastructure in Pakistan is the greatest danger to the peace and security of the entire civilized world.”

But all indications are that Pakistan is not impressed by the Indian rhetoric. It seems to think Indian politicians are grandstanding in an election year. But, just in case Delhi may spring a surprise, Pakistani army chief General Ashfaq Kiani has warned that the armed forces would give an equal response “within few minutes” if India carried out any surgical military strikes. “The armed forces are fully prepared to meet any eventuality, and the men are ready to sacrifice for their country,” he reportedly said.

As Delhi and Islamabad dig in, Obama will have a hard time balancing the US’s regional policy. However, one positive outcome will be that the US-India relationship will emerge out of this phase as a more mature process, having shed the false expectations and the rhetorical hype of recent years. A new government will also be assuming office in Delhi by next May and it is bound to take a fresh look at the “strategic partnership” with the US.

It is highly unlikely that any new leadership in Delhi will emulate current Prime Minister Manmohan Singh’s ardor for India’s strategic partnership with the US. India will also have drawn its lessons from the current crisis. The return to an independent foreign policy may become necessary – almost unavoidable. The year 2009 may well prove to be a formative year of readjustment in India’s post-Cold War foreign policy.

Suicide bombers for sale in Pakistan

By Naveen Kumar

Suicide bombers are available for a price in Pakistan to settle personal scores, a police investigation into the killing of a parliamentarian has revealed.

On Tuesday, the crimes investigation department of the Lahore police said it had arrested five people involved in the August 6 suicide attack at the residence of Rashid Akbar Niwani, a Pakistan Muslim League-Nawaz (PML-N) member of the national assembly, which resulted in the death of 26 people and injuries to several more.

Niwani was only playing the honest broker between two friends who had fallen out over a monetary dispute, the police said.

Quoting the police, Dawn reported Wednesday that principal suspect Waqas Hussain and his accomplices Nazar Hussain, Arif Khan, Muhammad Amjad and Saeed Amjad Abbas hired a suicide bomber and explosives expert from Wana town in the restive South Waziristan to kill a man named Ejaz Hussain, with whom he had a monetary dispute.

Waqas Hussain and Ejaz Hussain were one-time fast friends. Waqas started a used-car business after borrowing Rs 2.1 million from Ejaz but could not establish himself and began to suffer losses. He handed over seven vehicles to Ejaz at different times to return the borrowed money, but Ejaz demanded another Rs 5.4 million, the police said.

A dispute developed and both had cases registered against each other.

Ejaz finally took the dispute to Niwani and asked him to settle it. Niwani called both parties to his outhouse in the presence of local notables, listened to them and announced another sitting for August 6.

“Waqas and his father Nazar Hussain went to their relative Arif Khan in Dera Ismail Khan (in the adjacent North West Frontier Province) and informed him about the situation. They decided to kill Ejaz in a suicide attack and Arif asked them to arrange money for the purpose,” Dawn said.

Waqas, Nazar and Arif then went to Tank, also in the North West Frontier Province, where they met Wana resident Jaan Muhammad Wazeer and agreed to pay him Rs 1.2 million for the killing.

A day before the August 6 suicide attack, Jaan handed over the suicide bomber and an explosives expert to Arif. The bomber and explosives expert were later handed over to Waqas.

On the day of incident, Waqas confirmed that Ejaz was present at Niwani’s house and took the suicide bomber there. The bomber blew himself up near Ejaz, killing him, Niwani and 24 others.

How to Handle the Job Offer You Can’t Afford?

By Kayani Bhagat

You must grasp a potential employer’s problems so you can promote yourself as a problem solver worth more than the proposed skimpy pay.

Earlier this year, Mark Cummuta walked away from a chance to become the No. 2 executive of a Chicago technology consultancy—for less than $100,000 (around Rs50 lakh). As the sole breadwinner and father of triplets, Cummuta couldn’t afford a nearly 20% cut in pay, compared with what he was earning as an independent management consultant.

He’s still looking for a permanent position. “Every now and then, I hit myself and say, ‘I should have taken that offer,’” concedes the consultant, who has helped several firms navigate difficult times since 2003.

Unfortunately, Cummuta is hardly unique. More battered businesses are giving new hires less money than they made in their last job. “I am seeing that a lot more,” says April M. Williams, a career coach in Algonquin, Illinois. Puny amounts flabbergast some of her clients.

“As the downturn deepens, an increasing number of job seekers will find themselves getting lower-paying offers,” says Mark Royal, a senior consultant at Hay Group. “We are on the cusp of a trend.”

But excess eagerness to toil for fewer bucks sends the wrong signal. Such applicants often “are really desperate”, says Niki Leondakis, chief operating officer at Kimpton Hotels and Restaurants, a boutique chain in San Francisco.

Jayachandran / MintRather than immediately reject or accept a lowball deal, you should mount a careful counter-attack, experts recommend. You could improve your chances of winning a satisfactory compromise, with trade-offs ranging from a faster pay review to extra perquisites.

Arm yourself with data about the going rate for your position by trolling websites such as www.salary.com, Indeed.com/salary, Salaryexpert.com and Glassdoor.com. You’ll see whether a concern “has poor information about the external market” and rewards staffers below prevailing levels, says Robin Pinkley, a professor at Southern Methodist University’s business school and author of books about pay negotiations.

As part of your homework, you must grasp a potential employer’s problems so you can promote yourself as a problem solver worth more than the proposed skimpy pay. “To negotiate in tough times, you have to be able to create a vision,” says Jim Camp, an author and president of Camp Group, a negotiation-consulting firm in Dublin, Ohio.
A big New York law firm recently agreed to hire an Ohio lawyer for $140 an hour, $40 an hour less than he was earning. The firm blamed tough times. But the attorney knew he could provide important client referrals, recalls Camp, who coached him. “What number would I be paid if I brought a million-dollar client?” the candidate asked firm officials.

“If you’re a rainmaker, the numbers change,” they replied, according to Camp. After further interviews, the firm raised his starting pay to $240 an hour. He began last summer.

A West Coast executive took this tactic a step further. Keen to enter senior management several years ago, she hoped to accept a vice-presidency at a mid-size manufacturer—and keep making over $300,000 a year. But the concern offered less than $200,000, the same cash compensation it gave other VPs.

The woman prepared a PowerPoint presentation for the chief executive, highlighting accomplishments he didn’t know about and describing ways she might bolster customer satisfaction. She says she also sold him on a quarterly bonus plan for herself, linked to measurable milestones needed for the manufacturer’s long-term growth.
The CEO enlarged her package by nearly $25,000. And she racked up bonuses fast enough so that she was paid nearly $300,000 within a year. “It was a win-win for the company,” she notes.

Some job hunters weighing lower offers bargain for alternative rewards, such as flexible hours, extra vacation, special training or a gym membership. Not everyone can long survive on a shrunken paycheque, however.

PeaceKeeper Cause-Metrics, a small cosmetics distributor, offered Stephanie S. Hayano a $50,000 salary to be its chief operating officer starting last January. She previously earned $300,000 a year running Natural Health Trends Corp. The puny pay wouldn’t have covered even mortgages for her three residences. “Unless I was prepared to totally change my lifestyle, $50,000 was not in the cards,” Hayano says.
She assumed the COO title at the New York firm, but gets compensated as a part-time consultant and retains other consulting gigs.

It’s a good idea to assess the long-term career impact of toiling for less. Younger individuals, for instance, might get a valuable opportunity to build their résumés.
That proved true for Sanjay Gupta. In 1994, the 26-year-old senior marketing analyst accepted 10% lower pay when he was transferred to a database marketing job at his employer, FedEx Corp. He and his wife were forced to dine out less often. However, Gupta says that he gained experience “with every facet of marketing”, a critical skill for becoming a chief marketing officer of a big business some day. He achieved that title last March, when GMAC Financial Services named him CMO.

Perspective: Free Up Valuable Investment Capital by Reducing Insurance Collateral

By M H Ahssan

Market uncertainty has led to tightening of global credit markets and increased the cost of raising capital.

To make the situation even more painful, real estate developers and apartment owners are likely to face increased insurance premiums. The property/casualty industry has seen a decrease in revenues of between 30 to 40 percent from last year due to lower premium volumes, large catastrophe losses from tornadoes, hail and hurricanes and reduced investment income from the downturn in the stock market.

All of these factors make the amount of capital a company has tied up in collateral with its insurer an increasing concern. But, all is not doom and gloom. By re-evaluating their deductible insurance programs, companies may be able to reduce collateral obligations and free up capital for other uses.

The Collateral Burden
Posting collateral for insurance requirements can pose a serious burden for many companies. Letters of credit deplete their available credit line, so every dollar of credit takes away a dollar of borrowing capacity. In addition, the letters of credit may trigger additional loan covenants, as the aggregate borrowing gets closer to the available credit limit.

Meanwhile, cash that is dedicated toward the collateral requirement is cash that is not being used to pay down debt or reinvest in the company.

The collateral requirement can also limit a company’s ability to switch to a new insurance carrier. If a company’s insurance carrier is holding more collateral than is warranted based on the remaining liability, this can be used as leverage to keep the company from changing carriers. Rather than adjusting the collateral requirement downward, the carrier will use that redundancy to offset the new collateral needed for the following policy year.

While the prospective new carrier may offer advantageous pricing, its collateral requirement for the first year and the prospect of stacking that requirement for prospective years can overshadow pricing benefits, especially for a company with limited capital availability.

Another consideration in this economic environment is the potential volatility embedded in a deductible program. Although senior management may have been comfortable with the deductible levels in the past, an unexpected increase in the frequency or severity of claims could cause an unexpected increase in the company’s self-insured accrual as well.

Think Strategically
There are many ways that corporate risk managers can reduce the amount of collateral dedicated to their insurance programs, thereby gaining additional borrowing capacity for other uses.

In most situations, collateral is a direct result of the structure of a company’s insurance program. Here’s a classic example of this: A company might choose a $1 million general liability retention per claim, which is estimated to retain a total of $2 million in losses. Under a deductible program, this may call for anywhere between $1.5 million and $2 million in collateral.

The program could be structured as a “self-insured retention,” which means the insurance carrier would not be responsible for losses within the retention. As such, the program should not require collateral.

As with any other business relationship, getting to know one another is also important and it has never been more important for collateral decisions and for a company’s understanding of the carrier’s exposure to risk.

Finally, it is important to know the competitive landscape. An experienced insurance broker should be able to help clients project the amount of collateral any program will incur, not only for the current program, but also for future years.

Because collateral is primarily based on three components—structure, expected deductible losses and financial characteristics—there is no easy rule of thumb as a guide.

Questions insurance buyers should ask their brokers include:

• How did the carrier calculate the collateral requirement?

• How does this compare with your assessment of the deductible losses?

• Should I receive a paid loss credit? If so, how much?

• How are future collateral adjustments determined?

• How do these terms compare with other companies with similar financial characteristics?

Despite the overall credit strain, carriers may be willing to consider trading lower collateral terms for pricing considerations.

EDITOR’S NOTE: Real Estate Bubbles

By M H Ahssan

When reporting on multifamily finance in the 2000s, I came across a common refrain from desperate mortgage bankers again and again: “There is a surplus of money chasing a limited amount of product.” This intensely competitive environment—for lenders, that is—went on for years, seemingly never-ending. But the capital “surplus” environment did come to an end.

What Sam Chandan, chief economist of Reis, said recently at the company’s third quarter briefing throws light on the situation. He cited an essay about banking crises. Such a crisis happened, famously, in Japan in the 1980s. The cycle begins thus: There is some sort of initial loosening of credit in the economy. The subsequent great abundance of credit brings about a real estate bubble. Eventually, that bubble bursts and asset prices deflate. The banks’ asset values also fall, they cannot lend as much, and a recession occurs.

Indeed, there was much abundance of capital in the multifamily sector during that period, and it was driven in large part by CMBS financing. The point is that multifamily asset values may also have been pushed up by the great availability of credit. There was much talk then of cap rates being squeezed down to ridiculous levels by highly leveraged buyers. The question is, was there also a bubble in multifamily asset prices, and if so, what was the magnitude?

This issue’s report “Apartment Property Prices Have Fallen by 17% Since Last Year” suggests that the numbers at least do not show severe distress yet. Prices per unit/square foot for apartments in the third quarter of 2008 was 17 percent below its peak in the third quarter of 2007, according to Reis. Chandan says that transaction cap rates for apartments in the third quarter have increased by just under 40 basis points, to 5.7 percent. Apartment cap rates had hit a low of 5.4 percent, in the third quarter of 2007. That is the latest report.

India’s Dangerous Divide

By M H Ahssan

History and political opportunism have left most Indian Muslims poor and a few angry. In the wake of the Mumbai attacks, tensions have mounted and loyalties are being tested. So, what is the path forward for India and its Muslim minority?

In October 1947, a bare six weeks after India and Pakistan achieved their independence from British rule, the Indian prime minister, Jawaharlal Nehru, wrote a remarkable letter to the chief ministers of the different provinces. Here Nehru pointed out that despite the creation of Pakistan as a Muslim homeland, there remained, within India, “a Muslim minority who are so large in numbers that they cannot, even if they want, go anywhere else. That is a basic fact about which there can be no argument. Whatever the provocation from Pakistan and whatever the indignities and horrors inflicted on non-Muslims there, we have got to deal with this minority in a civilized manner. We must give them security and the rights of citizens in a democratic State.”

In the wake of the recent incidents in Mumbai, these words make for salutary reading. It seems quite certain that the terrorists who attacked the financial capital were trained in Pakistan. The outrages have sparked a wave of indignation among the middle class. Demonstrations have been held in the major cities, calling for revenge, in particular for strikes against training camps in Pakistan. The models held up here are Israel and the US; if they can “take out” individual terrorists and invade whole countries, ask some Indians, why can’t we?

Other commentators have called for a more measured response. They note that the civilian government in Islamabad is not in control of the army, the army is not in control of the notorious Inter Services Intelligence (ISI) agency, the ISI is not in control of the extremists it has funded. They point out that Pakistan has itself been a victim of massive terror attacks. India, they say, should make its disapproval manifest in other ways, such as cancelling sporting tours and recalling diplomats. At the same time, the US should be asked to demand of Pakistan, its erratically reliable ally, that it act more decisively against the terrorists who operate from its soil.

One short-term consequence of the terror in Mumbai is a sharpening of hostility between India and Pakistan. And, as is always the case when relations between these two countries deteriorate, right-wing Hindus have begun to scapegoat those Muslims who live in India. They have begun to speculate as to whether the attackers were aided by their Indian co-religionists, and to demand oaths of loyalty from Muslim clerics and political leaders.

There are 150 million Muslims in India. They have gained particular prominence in one area: Bollywood. Several top directors and composers are Muslim, as well as some of India’s biggest movie stars. One, Aamir Khan, was a star and producer of Lagaan, a song-and-dance epic about a game of cricket that was nominated for an Academy Award in 2002. But Muslims are massively under-represented in the professions—few of India’s top lawyers, judges, doctors and professors are Muslim. Many Indian Muslims are poor, and a few are angry.

Pakistan was carved out of the eastern and western portions of British India. To this new nation flocked Muslims from the Indian heartland. Leading the migration were the lawyers, teachers and entrepreneurs who hoped that in a state reserved for people of their faith, they would be free of competition from the more populous (and better educated) Hindus.

Pakistan was created to give a sense of security to the Muslims of the subcontinent. In fact, it only made them more insecure. Nehru’s letter of October 1947 was written in response to a surge of Hindu militancy, which called for retribution against the millions of Muslims who stayed behind in India. Three months later, Mahatma Gandhi, who was both Father of the Nation as well as Nehru’s mentor, was shot dead by a Hindu fanatic. That act shamed the religious right, which retreated into the shadows. There it stayed until the 1970s when, through a combination of factors elaborated upon below, it came to occupy centre stage in Indian politics.

If the first tragedy of the Indian Muslim was Partition, the second has been the patronage by India’s most influential political party, the Congress, of Muslims who are religious and reactionary rather than liberal and secular. Nehru himself was careful to keep his distance from sectarian leaders, whether Hindu or Muslim. However, under the leadership of his daughter Indira Gandhi, the Congress party came to favour the conservative sections of the Muslim community. Before elections, Congress bosses asked heads of mosques to issue fatwas to their flock to vote for the party; after elections, the party increased government grants to religious schools and colleges.

In a defining case in 1985, the Supreme Court called for the enactment of a common civil code, which would abolish polygamy and give all women equal rights regardless of faith—the right to their husband’s or father’s property, for example, or the right to proper alimony once divorced. The prime minister at the time was Rajiv Gandhi. Acting on the advice of the Muslim clergy, he used his party’s majority in Parliament to nullify the court’s verdict. After Rajiv’s widow, Sonia Gandhi, became Congress president in 1998, the party has continued to fund Muslim religious institutions rather than encourage them to engage with the modern world.

Partition and Congress patronage between them dealt a body blow to Muslim liberalism. The first deprived the community of a professional vanguard; the second consolidated the claims to leadership of priests and theologians. In an essay published in the late 1960s, the Marathi writer Hamid Dalwai (a resident of Mumbai) wrote of his community that “the Muslims today are culturally backward”. To be brought “on a level with the Hindus”, argued Dalwai, the Muslims needed an “avant garde liberal elite to lead them”. Otherwise, the consequences were dire for both communities. For “unless a Muslim liberal intellectual class emerges, Indian Muslims will continue to cling to obscurantist medievalism, communalism, and will eventually perish both socially and culturally. A worse possibility is that of Hindu revivalism destroying even Hindu liberalism, for the latter can succeed only with the support of Muslim liberals who would modernize Muslims and try to impress upon these secular democratic ideals”.

The possibility that Dalwai feared has come to pass. From the 1980s, the dominance of the Congress party has been challenged by the Bharatiya Janata Party. The BJP seeks to make India a “Hindu” nation by basing the nation’s political culture on the religious traditions (and prejudices) of the dominant community. Charging the Congress with “minority appeasement”, with corruption and with dynastic rule, the BJP came to power in many states, and eventually in New Delhi. However, its commitment to the secular ideals of the Constitution is somewhat uncertain. For the party’s members and fellow travellers, only Indians of the Hindu faith are to be considered full or first-class citizens. Of the others, the Parsis are to be tolerated, the Christians distrusted, and the Muslims detested. One form this detestation takes is verbal—the circulation of innuendoes based on lies and half-truths (as in the claim that Muslims outbreed Hindus and will soon outnumber them). Another form is physical—thus, the hand of the BJP lies behind some of the worst communal riots in independent India—for example, Bhagalpur in 1989, Mumbai in 1992, and Gujarat in 2002; in all cases, an overwhelming majority of the victims were Muslims.

The rise of the BJP owes something to the failures of the Congress, and something also to the example of Pakistan. As that society has come increasingly under the influence of Islamic fundamentalists, there is a more ready audience, within India, for the rants and raves of Hindu extremists. Likewise, the expulsion, by jihadis trained in Pakistan, of some 200,000 Hindus from the valley of Kashmir in a single year—1989-1990—has been used to justify attacks on Muslims in other parts of India. But to explain is not to excuse—for the BJP has stoked feelings and passions that should have no place in a civilized society.

In its activities, the BJP is helped by a series of allied groups. Known also by their abbreviations—RSS, VHP, etc.— these were at the forefront of the religious violence of the 1980s and beyond. Roaming the streets of small- (and big-) town India, they addressed their Muslim prey with the slogan “Pakistan or Kabristan!” (Flee to Pakistan, or we will send you straight to your graves). Meanwhile, their ideologues in the press—some with degrees from the best British universities—make the argument that Muslims are inherently violent, or unpatriotic, or both.

In fact, the ordinary Muslim is much like any other ordinary Indian—honest, hard-working and just about scraping a living. A day after I heard a BJP leader denounce the Congress for making the Muslims into a “pampered and privileged minority”, I found myself making a turn into the busiest road in my home town, Bangalore. Just ahead of me was a Muslim gentleman who was attempting to do likewise. Except that he was making the turn not behind the wheel of a powerful Korean-made car but with a hand-cart on which were piled some bananas.

That the fruit seller was Muslim was made clear by his headgear, a white cap with perforations. He was an elderly man, about 60, short and slightly built. The turn was made hard by his age and infirmity, and harder by the fact that the road sloped steeply downward, and by the further fact that making the turn with him were very many motor vehicles. Had he gone too slow, he would have been bunched in against the cars; had he gone too fast, he might have lost control altogether. Placed right behind the fruit seller, I saw him visibly relax his shoulders as the turn was successfully made, with cart and bananas both intact.

One should not read too much into a single image, but it does seem to be that that perilous turn was symptomatic of an entire life—a life lived at the edge of subsistence, a life taken one day at a time and from one turn to the next. In this respect, the fruit seller was quite representative of Indian Muslims in general. Far from being pampered or privileged, most Muslims are poor farmers, labourers, artisans and traders.

The failure to punish the perpetrators of successive pogroms has thrown some young men into the arms of fundamentalist groups. But the number is not, as yet, very large. And it is counterbalanced by other trends, for instance, the growing hunger for modern education among the youth. The desire to learn English is ubiquitous, as is the fascination for computers. Even in the disgruntled valley of Kashmir, a press survey found that the iconic founder of India’s most respected software company, Infosys Technologies, a Hindu named N.R. Narayana Murthy, was a greater hero among Muslim students than the founder of Al Qaeda.

Since the reasons for the poverty (and the anger) are so complex, a successful compact between Indian Muslims and modernity will require patient and many-sided work. It would help if the Pakistan centre was to reassert itself against the extremism it has itself, in past times, encouraged. It would help some more, if, pace Hamid Dalwai, there was a more forthright assertion of Muslim liberalism within India. But perhaps the greatest burden falls on India’s major political parties. The Congress must actively promote the modernization of Muslim society. And the BJP must recognize, in word and in deed, that the 150 million Muslims in India have to be dealt with in a civilized manner, and given the security and the rights due, them as equal citizens in a democratic and non-denominational state.

Writing in 1957, the historian Wilfred Cantwell Smith pointed out that Indian Muslims were unique in that they shared their citizenship “with an immense number of people. They constitute the only sizable body of Muslims in the world of which this is, or ever has been true.” True no longer, for in many countries of western Europe and even in the US, the Muslims are now a sizeable but not dominant component of the national population. This makes this particular case even more special.

For if, notwithstanding the poisonous residues of history and the competitive chauvinism of politicians, Indians of different faiths were to live in peace, dignity and (even a moderate) prosperity, they might set an example for the world.

Will Recession Change Online Advertising?

By Smrithi Khanna

Everyone’s searching for accountability and measurability across media to ensure their ad expenditure is giving results

Will the death knell sound for digital advertising as we know it? It’s ironic that even as digital is touted as a saviour in these stretched times, banner ads are increasingly coming under the scanner.

Some digital media specialists say the old formats of online display ads are too bland and easy to ignore, and will be expunged during economic crisis giving way to more rich media—interactive multimedia—and larger-format ads.

Everyone’s searching for accountability and measurability across media to ensure their ad expenditure is giving results. Digital advertising solutions provider Eyeblaster Inc.’s India and GCC (six Gulf Cooperation Council countries) managing director Raghu Seelamsetty says there is already a move towards more rich media advertising, and as bandwidth improves, we will see an increase in video ads. His reasoning: Rich media is more effective than standard banners because of its inherent ability to measure interactions—much more than just a click-through ad. You can measure every interaction and the real time of engagement with the rich media ad. For example, in video ads, you can know exactly how many people saw the video and which part of it, since people do not step out to the kitchen in the middle of an Internet video ad (unlike television ads).

Measurability combined with the deep analytics which rich media provides will act as a catalyst for advertisers to move online.

Rich media may also address the issue that site publishers and brand advertising may actually be working at cross purposes. Observes Seelamsetty: “The most effective direct response campaigns tend to come from media occasions in which consumers are less engaged. This is because they are more willing to take time out to respond when they are less involved in the media interaction.”

In the context of online, publishers are shifting their focus to providing engaging content to keep the viewer on the page for a longer time rather than generating as many impressions as possible. People are far less likely to click on a banner ad when they are immersed in the content of a site than when they are merely browsing through a site to pass the time. Therefore, the ability rich media provides to interact with the ad without leaving the page is crucial.

Some digital specialists at ad agencies, however, underline that most of the poor banner ad outcomes are a result of bad planning. Prasanth Mohanachandran, executive director, digital services, OgilvyOne Worldwide, India, points out how simple reach-frequency metrics and creative rotation principles are not employed for most campaigns. His point: The banner is not dead. Bad creative is.

This is true of every medium, especially in times such as these when advertising is largely driven by return on investment. The simple banner still provides the highest opportunity to see among all variants and, with a good call-to-action it still provides excellent results on a cost-per-click or a cost-per-engagement basis in India.

Improved infrastructure and technology allow advertisers today, to use richer formats in those conventional flat banner spaces—but rich media too, delivers only with good creative backing, says Mohanachandran. He predicts newer formats such as interactive video coming into play sooner and contextual advertising witnessing exponential growth next year.

If banner ads don’t change format, advertisers could move some of their display ad budgets to online ad networks and direct marketing. Says Roy de Souza, founder and chief executive of global ad serving network Zedo Inc.: “Some advertisers who are watching their budgets are starting to really ask if brand advertising on the Internet is working. Brand advertisers are asking this, not direct marketers. And it will definitely affect India, too.”

He points out how direct marketers such as Makemytrip.com can track exactly how many ads they have to buy to sell a ticket. They can use the ad server to track how many people saw the ad, how many people clicked on the ad and went to the website and booked a ticket on it.

In contrast, it is more difficult to track the success of brand advertising. An ad server such as Zedo has no way of recording whether a person who walked into a shop chose Samsung because he saw a lot of Samsung ads on the Internet.
So, what’s next for display? Roy predicts bigger ad formats gaining ground for brand advertisers. For example, ads on top of the page that cover up what the reader is reading until the user closes the ad. These ads are big and visible and brand advertisers like them.

Also, formats which are visible for longer will gain ground. Usually, as a user scrolls down the page the ad will be left at the top and the user will no longer see it. By making the ad scroll down the page as the user scrolls down the page, the ad will be visible longer.

Market Report: India Residential Sector Gears Up for an Overhaul

By M H Ahssan

The residential sector in India has undergone a far-reaching metamorphosis in the last decade. After years of unplanned and haphazard development, the sector is now marked by enhanced product offering, heightened investment including foreign capital, and augmentation of the national footprint of some prominent Indian developers. Modern apartments and villa and township projects have come up across the country and new city master plans have been drawn to include a number of suburban and peripheral locations within the city’s folds.

The Indian economy has been growing at an average rate of 8.8% in the last four fiscal years, with the 2006-07 growth rate clocking an impressive 9.6%. This stellar growth, augmented by the unmatched fundamentals that the country enjoys, has given strong impetus to the real estate sector in India. The residential segment leads the growth trajectory—nearly 75-80% of the total real estate space development across India is in the residential segment. Rapid urbanization, increase in number of households, rising income levels, and easy availability of housing finance are among the chief reasons cited for this trend.

According to United Nations Population Fund (UNFPA), India’s urbanization rate is higher than the world average, and by 2030 more than 40% of the country’s population will be living in urban areas. This, together with the fact that the average household size in India is fast decreasing, has fostered residential demand in recent times.

Also, salaries in India have been rising at the rate of 10-15% per year and the per capita disposable income that has increased manifold in the past decade is expected to further grow by 8-13% in the next five years. Thus, improved affordability and the increased penetration of housing mortgage finance have led to the unprecedented housing acquisition drive both by end-users and investors. Over the last few years, unabated demand and supply-demand gap has led to spiraling of capital values across locations and cities.

Dealing with a slowdown
However, after a dream run of close to 36 months, the residential sector has been exhibiting signs of slowing down in the last few quarters. In response to the Reserve Bank of India’s measures to control credit growth and liquidity in the economy, interest rates on home loans have increased by several basis points in the last year. This came at a time when the rising residential values and compounding inflation had started to negatively impact the affordability of many end-users. Shrinkage of demand and retreating of end-users and investors from the market had closed the gap between demand and supply, resulting in correction in values. On the other hand, developers are facing a cash crunch due to diminishing sales, expensive credit and drying up of private equity funding as a result of the current global investment conditions. New project launches have been put on hold and under-construction projects are facing delays.

Within such a scenario, developers and stakeholders in this sector are looking at optimizing their resources and employing befitting strategies to tide over the current times. With buyers adopting a wait-and-watch stance, developers are taking various steps to bolster sales. These range from giving early-bird discounts on bookings to freebies such as semi-furnished homes and cars. Apart from the above, in line with quickly changing external conditions, some structural changes are also underway in the residential sector, with affordable housing or mid-end becoming the new mantra. Until now, most of the developers focused on constructing high-end housing, and there has been a dearth of mid-priced, affordable units.

Temporarily reduced buying power due to high inflation rates and stock market fluctuations—combined with the hike in interest rates—have impacted the demand for high-end residences. As such, venturing into affordable or mid-priced housing seems to be the appropriate recourse, as developers are realizing that the segment offers maximum opportunity and prospects on account of two key factors. First, the total estimated shortage of 26 million dwelling units, the maximum shortage is in the mid and low segment, and the demand here is relatively inflexible. Second, this segment will entail a volume game rather than value, and will serve to boost the topline.

With the builder fraternity moving in to fill the existing gap in affordable housing, some constructive steps need to be (or are being) taken by the government to facilitate this movement. These would primarily include introducing progressive reforms like repealing the Urban Land Ceiling Regulation Act (ULCRA limits land holding quantum at a single entity level); and, increasing Floor Space Index (FSI restricts the built-up potential on a plot of land), micro-financing and removing restrictions on credit availability for such kinds of projects. Also, mobilizing funds from various agencies, encouraging private-public partnership, subsidization of construction inputs, and above all developing land and providing infrastructure facilities in locations feasible for affordable housing projects, will give it the required boost. A number of prominent developers are in the process of shifting focus to mid-end and affordable housing. Apart from affordable housing, integrated township developments are also increasingly gaining momentum.

Price corrections are inevitable
The Indian real estate market, including the residential sector, has traditionally been an under-supplied market. On the demand side, Indian consumers are informed, discerning and demand value. Corollary to the current economic conditions, demand has been compressed but is expected to spring back with interest rates softening, price reduction and property market sentiment improving. Price corrections are inevitable, particularly in markets where a demand-supply mismatch has been built up.

Under the current scenario, it is imperative that residential supply and demand are coordinated and that gaps, wherever existing, are filled. In the long term, current churn and shakeout in the Indian real estate sector is expected to lead to market consolidation, making it more attractive for foreign investors and PE funds, as the valuations will be more realistic.

With India’s strong economic and demographic fundamentals, real estate will remain a long-term attractive proposition. Hopefully, the next cycle we witness after the current slow down will be the one that is more efficient and self-sustaining.

Special Report: Economic Slide Fuels Fertility Business Boom

By M H Ahssan & Kajol Singh

Women renting wombs, donating eggs to tide over financial crisis Economic slide

Last year’s sealing drive took away her husband’s catering unit. This October, recession cost Anita her retail job.

Christmas, though, may finally bring some cheer — and money — to this 26- yearold retail management postgraduate.

No, she hasn’t found another job. But she will raise money by renting out her womb to an American woman who is flying in to India to start the procedure next week.

“ I have an MBA degree and have done several computer courses. But I didn’t look for another job after losing the one that I had. The job market is just too tight,” Anita says.

The mother of a two- year- old hopes to be pregnant by January 2009. She’ll be paid Rs 2.75 lakh, along with all expenses incurred on groceries and medicines, for the next nine months.

“ If she hadn’t lost her job, she wouldn’t have bothered to do this. You don’t generally get such well- educated surrogates or donors, unless they are from the paramedic profession,” says Dr Shivani Sachdev Gour, a fertility expert at Phoenix Hospital, Greater Kailash- I, where Anita will undergo the procedure.

It’s win- win for Gour’s American patient as well. She’d have had to shell out $ 40,000- 50,000 ( Rs 20- 25 lakh) to a surrogate in the US. The recession is fuelling a baby harvest. It’s evident from a visit to the Delhi In- Vitro Fertilisation ( IVF) and Fertility Research Centre at Bengali Market.

Reeta, a software engineer, has taken time off from her IT firm in Gurgaon to donate eggs to an infertile couple being treated at the centre. She decided to do this after her husband, a software engineer in the US, returned to India after being laid off.

Reeta’s eggs go for a premium, thanks to her high IQ profile, and she makes Rs 40,000 to Rs 50,000 each time. “ My husband is trying to raise money to open his own software training institute.

I want to help him, as well as help infertile couples have babies,” she says.

Confirming the trend, Dr Anoop Gupta, Delhi IVF’s infertility specialist, says: “ In the last two months, we have had seven or eight couples walking in with prospective egg donors and surrogates who are all white- collared workers affected by the economic crisis. People facing recession know about this opportunity that will help them and also assist infertile couples.” In Gujarat’s Anand — India’s surrogacy capital — Kaival Hospital’s infertility specialist Nayna H. Patel says the number of educated and middle- class surrogates and donors from towns such as Vadodara has shot up by 15- 20 per cent.

“ Many of these women come after losing money in the share market or after either they themselves or their husbands lose their job,” Patel adds.

One of the surrogates under her care is a 26- year- old woman who has an LLB and a BCom degree. The woman turned to surrogacy after her husband was rendered jobless because of the economic downturn.

For Mayur Vihar housewifeturned- tutor Mandakini, becoming an egg donor came as an alternative to suicide, which she was contemplating after her husband, a sound engineer, lost his Rs 40,000- a- month job.

“ We moved from a two- bedroom home to a one- room set with a kitchen,” Mandakini recalls. “ My son’s marks fell from 96 per cent to 64 per cent because we couldn’t afford his tuitions any more. We didn’t have the money to pay his school fees. I had gone to a chemist to buy poison, but didn’t know what to get. That’s when I saw an ad for a donor in a women’s magazine.” Egg donation is a long- drawn process, involving 9- 10 days of injections, and the subsequent removal of eggs under general anaesthesia. Specialists say the procedure is safe.

“ There are no cuts and the entire procedure is done with the help of a needle guided by ultrasound,” assures Dr Deeksha ‘ assists Dr Gupta of Delhi IVF. Unmarried women are turned away from donation, for it leads to the tearing of the hymen during the medical examination, which isn’t held in a good light in many traditional homes.

Dr Gupta recently refused an infertile couple who came with a prospective donor — a laid- off airhostess — because she was unmarried. “ We take women who are married and have already had a child. They prove to be fertile,” he says.

In some states in the US, even college students donate eggs to pay their tuition fees. “ Depending student could receive anything between $ 5,000 ( Rs 2.4 lakh) and $ 30,000 ( Rs 14.5 lakh),” says Dr Sulochana Gunasheela, who runs her own IVF centre in Bangalore.

“ Models and women with high IQ invite online bids for their gametes.” All this may seem somewhat futuristic, but the way urban India is moving, are we likely to see educated middle- class women catching up with their US counterparts? “ If not now, possibly some time in the foreseeable future,” says Dr Gunasheela.

Special Report: Economic Slide Fuels Fertility Business Boom

By M H Ahssan & Kajol Singh

Women renting wombs, donating eggs to tide over financial crisis Economic slide

Last year’s sealing drive took away her husband’s catering unit. This October, recession cost Anita her retail job.

Christmas, though, may finally bring some cheer — and money — to this 26- yearold retail management postgraduate.

No, she hasn’t found another job. But she will raise money by renting out her womb to an American woman who is flying in to India to start the procedure next week.

“ I have an MBA degree and have done several computer courses. But I didn’t look for another job after losing the one that I had. The job market is just too tight,” Anita says.

The mother of a two- year- old hopes to be pregnant by January 2009. She’ll be paid Rs 2.75 lakh, along with all expenses incurred on groceries and medicines, for the next nine months.

“ If she hadn’t lost her job, she wouldn’t have bothered to do this. You don’t generally get such well- educated surrogates or donors, unless they are from the paramedic profession,” says Dr Shivani Sachdev Gour, a fertility expert at Phoenix Hospital, Greater Kailash- I, where Anita will undergo the procedure.

It’s win- win for Gour’s American patient as well. She’d have had to shell out $ 40,000- 50,000 ( Rs 20- 25 lakh) to a surrogate in the US. The recession is fuelling a baby harvest. It’s evident from a visit to the Delhi In- Vitro Fertilisation ( IVF) and Fertility Research Centre at Bengali Market.

Reeta, a software engineer, has taken time off from her IT firm in Gurgaon to donate eggs to an infertile couple being treated at the centre. She decided to do this after her husband, a software engineer in the US, returned to India after being laid off.

Reeta’s eggs go for a premium, thanks to her high IQ profile, and she makes Rs 40,000 to Rs 50,000 each time. “ My husband is trying to raise money to open his own software training institute.

I want to help him, as well as help infertile couples have babies,” she says.

Confirming the trend, Dr Anoop Gupta, Delhi IVF’s infertility specialist, says: “ In the last two months, we have had seven or eight couples walking in with prospective egg donors and surrogates who are all white- collared workers affected by the economic crisis. People facing recession know about this opportunity that will help them and also assist infertile couples.” In Gujarat’s Anand — India’s surrogacy capital — Kaival Hospital’s infertility specialist Nayna H. Patel says the number of educated and middle- class surrogates and donors from towns such as Vadodara has shot up by 15- 20 per cent.

“ Many of these women come after losing money in the share market or after either they themselves or their husbands lose their job,” Patel adds.

One of the surrogates under her care is a 26- year- old woman who has an LLB and a BCom degree. The woman turned to surrogacy after her husband was rendered jobless because of the economic downturn.

For Mayur Vihar housewifeturned- tutor Mandakini, becoming an egg donor came as an alternative to suicide, which she was contemplating after her husband, a sound engineer, lost his Rs 40,000- a- month job.

“ We moved from a two- bedroom home to a one- room set with a kitchen,” Mandakini recalls. “ My son’s marks fell from 96 per cent to 64 per cent because we couldn’t afford his tuitions any more. We didn’t have the money to pay his school fees. I had gone to a chemist to buy poison, but didn’t know what to get. That’s when I saw an ad for a donor in a women’s magazine.” Egg donation is a long- drawn process, involving 9- 10 days of injections, and the subsequent removal of eggs under general anaesthesia. Specialists say the procedure is safe.

“ There are no cuts and the entire procedure is done with the help of a needle guided by ultrasound,” assures Dr Deeksha ‘ assists Dr Gupta of Delhi IVF. Unmarried women are turned away from donation, for it leads to the tearing of the hymen during the medical examination, which isn’t held in a good light in many traditional homes.

Dr Gupta recently refused an infertile couple who came with a prospective donor — a laid- off airhostess — because she was unmarried. “ We take women who are married and have already had a child. They prove to be fertile,” he says.

In some states in the US, even college students donate eggs to pay their tuition fees. “ Depending student could receive anything between $ 5,000 ( Rs 2.4 lakh) and $ 30,000 ( Rs 14.5 lakh),” says Dr Sulochana Gunasheela, who runs her own IVF centre in Bangalore.

“ Models and women with high IQ invite online bids for their gametes.” All this may seem somewhat futuristic, but the way urban India is moving, are we likely to see educated middle- class women catching up with their US counterparts? “ If not now, possibly some time in the foreseeable future,” says Dr Gunasheela.

Several Businesses in India Bucking Slowdown

By Rahul Mehta

For all entrepreneurs who feel that getting venture capital funding in times of downturn might be tough, here’s a sunny story. Suresh Narasimha, chief executive officer of TELiBrahma, received venture capital funding of $2 million two months ago.

Narasimha who started the company around 2004 is seeing the positive side of the slowdown. ‘‘As an entrepreneur, this is the time to focus on the actual value of your business and differentiate it with more propositions,” he says. TELiBrahma is a Bangalore-based mobile solutions company, which currently has 50 employees. The company powers solutions like bluetooth-based mobile advertising, promotions, enterprise solutions and locationbased social networking and appears unaffected by the slowdown.

Experts believe that there are other sectors too that are likely to do well, no matter what the current situation of the economy is. ‘‘Sectors like healthcare, education, consumer goods and retail as well as media and entertainment are bound to do well. The slowdown is not that severe in India as yet,” says Pradeep Kanakia, national head of markets at consultancy firm KPMG. As for the IT sector, the focus has shifted from pure services to products, and technology in education and healthcare. At IDG Ventures, for instance, six of the nine companies that received funding from them are product companies.

‘‘We believe there are certain sectors that are truly recessionproof, like security, medical sciences and technology in defence and remote monitoring, says Sudhir Sethi, managing general partner, IDG Ventures India.

In the slowdown, companies will invest less in new capital and would like to extend the life of existing capital assets.

Hence demand for remote management and predictive maintenance technologies is expected to grow. ‘‘A major construction company has used such a technology from ConnectM and has already seen a 15% cost saving,” says Sethi.

Energy management too is seen to be an area that will gain in such times, since it is a major cost for most companies.

‘‘Gifting is an area that might see downtrading, but will not stop. Hence our investment in the online initiative Myntra,” says Sethi.

Great New Year Bash in Hyderabad

By M H Ahssan

Hyderabad City Is Emerging As Top Destination Ahead Of Hotspots Like Goa, Mumbai and Bangalore

Move over Goa, Mumbai and Bangalore, Hyderabad is the place to be for this New Year’s eve. With terror strikes and security fears casting a shadow of dread over the regular party hotspots, Hyderabad has become the destination this December 31 for popular international and national artists like DJ Ravin from Buddha Bar, Paris, DJ Gino from Paris, Dale Anderson who is based in London, the Danish-Indian Bombay Rockers and DJ Suketu from Mumbai.

“Mumbai is on a high alert and with rumours floating around that Goa is likely to be the next target, people are scared to venture to these regular party destinations. Places like Hyderabad, which were never in the limelight until now, suddenly seem like a good option as they are perceived to be relatively safer,” says DJ Lloyd, resident DJ at Poison Mumbai, who chose to play in Hyderabad on New Year’s eve, over Mumbai and Goa.

In fact, Hyderabad is much better than even Bangalore and Chennai, agrees DJ Murthy. “I had 10 gigs in Goa and three in Mumbai lined up for December, all of which are cancelled. Chennai has also cancelled a number of its dos,” he states adding that despite security apprehensions, this city still seems a safer place to be.

Organisers of these events say that unlike the previous years when people from here would head towards Goa and Mumbai to celebrate the new year, this time they are quite content to stay in the city. The organisers of Race 2009, an event which will see Bollywood’s DJ Suketu usher in the new year, expect a number people from other places to visit the city. “Suketu is playing in India on December 31 for the first time in five years. It is going to be a big event and we are expecting some people from Mumbai too, who would like to attend this event,” says DJ Ankit Sharma, event manager, Race 2009.

Hyderabadis, who are staying back this year, feel that the city will offer them a good time without the tension of terror threats marring their evening, believes Lloyd. Hyderabad on its part is going all out to make the night memorable for revellers with famous DJs, fancy audio-visual systems transported from Mumbai and even an artificial beach with a cruise liner and the others.

“There are different kinds of parties to suit different kinds of crowds. One can choose the music and atmosphere one wants. There is something for everyone this year,” says Murthy.

“Two DJs from Paris are visiting India for the first time, and that too in Hyderabad, so it is going to be a huge party,” says Rebecca Lee from Extreme Sports Bar, one of the sponsors of Nirvana 2009 to be held at HICC.

Apart from the entertainment, event organisers are doing their best to ensure their guests topmost security. “As per police instructions we are providing Z-grade security with 150 guards, police personnel, sniffer dogs and metal detectors at the venue. For one week prior to the event, our security team will be keeping an eye over the place to see that nothing untoward happens,” says Sharma.

“We will provide a secure environment. There will be extra security at the gates, handbag checks and car passes will be allotted with tickets so there will be nothing to worry about,” assures Lee.

Great New Year Bash in Hyderabad

By M H Ahssan

Hyderabad City Is Emerging As Top Destination Ahead Of Hotspots Like Goa, Mumbai and Bangalore

Move over Goa, Mumbai and Bangalore, Hyderabad is the place to be for this New Year’s eve. With terror strikes and security fears casting a shadow of dread over the regular party hotspots, Hyderabad has become the destination this December 31 for popular international and national artists like DJ Ravin from Buddha Bar, Paris, DJ Gino from Paris, Dale Anderson who is based in London, the Danish-Indian Bombay Rockers and DJ Suketu from Mumbai.

“Mumbai is on a high alert and with rumours floating around that Goa is likely to be the next target, people are scared to venture to these regular party destinations. Places like Hyderabad, which were never in the limelight until now, suddenly seem like a good option as they are perceived to be relatively safer,” says DJ Lloyd, resident DJ at Poison Mumbai, who chose to play in Hyderabad on New Year’s eve, over Mumbai and Goa.

In fact, Hyderabad is much better than even Bangalore and Chennai, agrees DJ Murthy. “I had 10 gigs in Goa and three in Mumbai lined up for December, all of which are cancelled. Chennai has also cancelled a number of its dos,” he states adding that despite security apprehensions, this city still seems a safer place to be.

Organisers of these events say that unlike the previous years when people from here would head towards Goa and Mumbai to celebrate the new year, this time they are quite content to stay in the city. The organisers of Race 2009, an event which will see Bollywood’s DJ Suketu usher in the new year, expect a number people from other places to visit the city. “Suketu is playing in India on December 31 for the first time in five years. It is going to be a big event and we are expecting some people from Mumbai too, who would like to attend this event,” says DJ Ankit Sharma, event manager, Race 2009.

Hyderabadis, who are staying back this year, feel that the city will offer them a good time without the tension of terror threats marring their evening, believes Lloyd. Hyderabad on its part is going all out to make the night memorable for revellers with famous DJs, fancy audio-visual systems transported from Mumbai and even an artificial beach with a cruise liner and the others.

“There are different kinds of parties to suit different kinds of crowds. One can choose the music and atmosphere one wants. There is something for everyone this year,” says Murthy.

“Two DJs from Paris are visiting India for the first time, and that too in Hyderabad, so it is going to be a huge party,” says Rebecca Lee from Extreme Sports Bar, one of the sponsors of Nirvana 2009 to be held at HICC.

Apart from the entertainment, event organisers are doing their best to ensure their guests topmost security. “As per police instructions we are providing Z-grade security with 150 guards, police personnel, sniffer dogs and metal detectors at the venue. For one week prior to the event, our security team will be keeping an eye over the place to see that nothing untoward happens,” says Sharma.

“We will provide a secure environment. There will be extra security at the gates, handbag checks and car passes will be allotted with tickets so there will be nothing to worry about,” assures Lee.

Polio Death Rumours Trigger Panic

By Swati Reddy

It was a polio reaction of a different kind. Thousands of anxious parents and relatives from several parts of Chittoor district made a mad rush to the government hospital here on Monday after rumours spread that some babies had died due to reaction to polio drops administered across the state on Sunday as part of the pulse polio immunisation programme. The rumours spread like wildfire, thanks to a couple of Telugu TV channels which ran scrolls on the reported deaths.

The Tirupati roads were literally chock-a-block as scores of RTC buses, vans and autos, filled with parents with babies in their arms, made their way from various parts of the district to the temple town. Over 10,000 people reportedly rushed to the government Ruia Hospital in Tirupati from Erpedu, Srikalahasti, Madanapalle, Chandragiri and towns as far as Shantipuram and Kuppam, almost 200 km away from here. There was utter pandemonium as doctors had a tough time convincing the panic-stricken parents and relatives that there was no danger to their babies. The reports of deaths, they tried to tell them, were completely baseless.

It all started when a regional channel ran a scroll that two children had died of polio vaccine reaction in Kuppam and Shantipuram. Within minutes another channel displayed a scroll that nearly a dozen children–seven from Bhavani Nagar and five from Jeevakona in Tirupati–had died.

Distraught parents gheraoed doctors at the Ruia Hospital demanding their children be admitted immediately to the paediatric ward.

When the situation turned out of control, superintendent Dr Venkateswarlu had to come out and assure parents that there was no danger to their kids’ lives.

“When children do not show any symptoms of vomiting and loose motion soon after the administration of the polio drops, the question of reaction doesn’t arise,” he said and urged them to drive away such fears.

Later, tense parents vent their anger on media personnel for the false news. A cameraman of a TV channel was reportedly manhandled by the relatives of a baby boy. Talking to TOI, T Chinnamma (30) of Chandragiri lambasted TV channels for running such baseless news. In fact, similar rumours had sent shock waves in Tamil Nadu on Sunday when a regional channel ran the incorrect news.

Living With Terror

By Dipesh Chakrabarty

Only security won’t do; we need better governance too

The most recent Mumbai tragedy points to a general way some of the negative effects of globalisation are bringing us to the threshold of a post-democratic age in the 21st century. Given the diverse global tensions in the world — with terrorism, economic-environmental crises, and civil wars dislocating populations — democratic states will increasingly tend to develop a strong security aspect in the coming decades.

The violence in Mumbai was perceptibly different from terrorist violence that India has seen before. This time the terrorists themselves wanted to create a “global” event. Their targets included many “ordinary” Indians but also the transnational elite that patronises the most well-known hotels of Mumbai, itself the most global city in India. Their technology and targets were global — witness their use of Voice over Internet Protocol system to keep in touch with their masters in Pakistan or their deliberate targeting of a small Jewish community from overseas. Indian democracy has now, sadly, been ushered into a debate of the 21st century: Should democratic states become security-states as well? Security measures are, of course, no substitute for the political processes needed to heal rifts between countries and communities. But they cannot be ignored either.

This immediately raises two challenges. One is related to questions of democracy in general. The prospect of a security-state understandably and rightly concerns rights activists. Yet it is clear that the “security of populations” is itself emerging as a powerful right. In the developed countries today, it is hard to distinguish measures adopted to fend off terrorist attacks from the politics of refugees and “illegal” immigration. Of course, the balance between security and other rights cannot be decided in any a priori fashion, which is why it always should be open to debates with reference to specific contexts. There is, besides, the very important question of ensuring that the pursuit of security does not become a tool for oppression of and discrimination against minorities or immigrants. But the globalisation of this debate is what marks our times.

The second challenge arises from deep within the history of Indian politics. To have an effective cordon sanitaire against terror would require India to inject a degree of efficiency, alertness, and performance into an administrative apparatus that simply has not delivered on these scores for decades. Since the 1970s, government or public institutions in India have gradually ceased to be effective deliverers of goods and services. There is much that democracy in India has achieved by way of giving many low-caste and marginalised communities a sense of participation in the country’s governmental institutions.

The growth of this politics of identity, however, has made elections into the mainstay of Indian democracy. It has distanced politics from issues of governance, and has gone hand in hand with a deepening of corruption, financial and otherwise, on the part of politicians and officials. A large number of the elected members of Parliament have criminal cases pending against them. Media reports and everyday experience suggest an elephantine, unaccountable, inefficient bureaucracy mired in selfindulgent use of resources with corruption and inefficiency often going together.

There was, for example, no effective coast guard force to intercept the Mumbai terrorists. It took the first lot of firefighters hours to respond to the fire at the Taj. It took nine hours to mobilise the commando force many of whom are usually kept busy providing “security” to politicians who often see such security as a matter of prestige. It has also been reported that a very large grant recently given to the Mumbai police for their modernisation was mostly spent on buying luxury cars and other expensive items for the use of senior officers and their ministers!

Creating a security system that will provide effective protection to the population from terrorist attacks will not be easy. Corruption follows public money in India as it does, unfortunately, in many countries, and undermines performance. Secondly, the effective functioning of any institution in India in a non-partisan manner would require that institution to be insulated from political interference. The second condition is not easily met. The required reforms thus call for a certain kind of political will that the political class in India has not quite shown in recent times.

Yet India cannot any longer avoid debates over security and other rights. The government has already announced certain measures making anti-terror laws more stringent. Some other reforms will also certainly follow on paper and perhaps in action as well. Many members of the Indian educated middle classes are angry at the inability of their government to protect them.

We do not know how effective that anger will be. If the nature of the political class remains the same, Indians will probably have to get used to living with a degree of terror the exact quantum of which is difficult to predict. One hopes though that the nation will address both the long-term and short-term problems together so that, important as security considerations are, this tragedy will initiate not just a rethink but also a revitalisation of democratic institutions in India as they cope with the challenges of this global century.

Hyderabad Reality Scouts Landlords

By Ayaan Khan

Agents Seek Business With Assured Returns As House Owners Too Scout For Tenants

As people are getting cautious about investing in property, real estate agents are turning to rental deals in the hope of earning some money. Despite rents seeing a good 15-20 per cent dip in the last three months, agents feel it is comparatively more stable business and assures some returns.

Imtiyaz Ahmed Khan, an agent, who had not managed to sell many properties of late is glad about the money he is making through rental deals. “Commissions on sale of properties is anyway not great. We charge only 2 per cent for a property valued at less than one crore and one per cent if it is more than one crore. But people are not ready to pay even that now. Anyway sales have dipped hugely and even prospective buyers are only using us to get introduced to the owner. After that they are directly negotiating with the owner in order to save on our commission,” he says. Agents like Khan also cash in on the desperation of house owners. Aware of the poor market condition, owners are now ready to pay agents extra commission to get tenants. “What seemed like a waste of money earlier has now become a preferred choice of owners,” says a brokerage manager.

However, not many agents in the city share the same view. The dip in rents have reduced their commissions drastically. With people opting for cheaper places, their monthly income has come down by almost 35-40 per cent.

“Houses that were earlier rented out for Rs 25,000 per month are now being given for as low as Rs 18,000. Duplexes in the Malaysian township that fetched at least Rs 45,000 as rent per month is now on offer for just Rs 25,000 per month. With owners settling for such low rents, our commissions are suffering. As against one month’s rent for these deals we are now charging something between Rs 5,000 and Rs 10,000,” says Asim Khan an agent adding that furnished houses with the latest amenities situated in posh localities, which in better times would have owners demanding Rs 35,000 to Rs 40,000, are going for an unbelievable Rs 20,000 only.

Real estate experts point out that the dip in rentals is also a much needed correction. In the last few years, house owners, buoyed by the rising property prices in the city, had been quoting astronomical rents. Builder P Srinivas, whose residential complex in Banjara Hills has several flats lying vacant for long is hard selling them to any customer who looks even remotely interested. He is not only renting out two-bedroom flats, that would have fetched him anything between Rs 12,000 to Rs 15,000, for just Rs 8,500 but is also relaxing the deposit amount for his tenants.

Instead of the usual three months advance money, he is settling for only two months deposit. The fact that people are now ready to compromise on certain grounds is also affecting agents.

While some are moving to the outskirts of the city in search of cheaper accommodation, others are settling for apartments without high-end provisions like a centralised gas connection or wifienabled zone. “People are not hesitating to take up residence even beyond Hi-Tec city. The rents there are comparatively lower and so is our commission,” says an agent wryly.

Can Desi Pens Fuel Our Passion?

By Saleha Haseeb

Are authors from the land of Kamasutra up to the challenge of writing about love and passion in Mills and Boon style?

It can be a classic tale of passion. Where the land of Kamasutra meets western romance. Where the temples of Khajuraho inspire scandalous confessions. If romance publisher Mills & Boon (M&B) implements its idea of launching Indian writers, we may witness a cataclysmic union of Indian sensuality and western passion.

Or maybe not. Because in a country that’s obsessed with sex, we have a horrible track record and style of writing about it. “There are 50 different ways to write about bad sex, and Indian writers have explored all of them,” says Nilanjana Roy, chief editor, Westland/ Tranquebar Press. “We are very embarrassed to write about sex. It is a reflection of what we’ve been so far as a society,” she explains. Sex is one of the hardest subjects to write on, because “unlike food, there are only a finite number of variations.”

Which is why the Bad Sex in Fiction awards are as popular as they are notorious. They were instituted 11 years ago to mock “redundant passages of sexual description in the modern novel”. On the illustrious list of Indians who have been nominated for and won this award are Tarun Tejpal whose Alchemy of Desire explored “peaks and valleys” and “danced the Last Tango of Labia Minora,” and Salman Rushdie, who wrote in Shalimar the Clown, “…Let’s, you know, caress each other in five places and kiss in seven ways and make out in nine positions, but let’s not get carried away.”

The 2003 winner, Aniruddha Bahal, said he wouldn’t change a word in the passage from his book Bunker 13 that made comparisons between women and cars: “She is topping up your engine oil for the cross-country coming up. Your RPM is hitting a new high… She picks up a Bugatti’s momentum… Squeeze the maximum mileage out of your gallon of gas. But she’s eating up the road with all cylinders blazing.” He does not agree that Indians cannot write about sex. “We have a tradition of erotic writing, from the works of Kalidasa to the Kamasutra. How can we be bad at writing about sex?” he asks.

Theatre personality Mahabanoo Mody Kotwal has an answer. “It is our sophomoric attitude towards sex, no doubt encouraged by down market renditions of it in most Bollywood movies, that prevents a sense of being comfortable with this subject,” she says. Insisting that sex is a subject better handled by regional writers, she wonders if “Mills and Boon is experiencing a recession in good writers in English, that it is looking towards India for this?”

But the themes in western novels about passion are so deep-seated in Indian society too — misogyny, irresistible locations, rape fantasies, and sexual submission of women — that writers can easily make a success out of such writing. “The only problem is that Indians write with a fear of family looking over their shoulders. We consider our writing autobiographical. There is an association of the writer with the writing, especially when it involves sex,” says V K Karthika, publisher, Harper Collins India.

But the times are changing. And it’s possible that the new crop of writers will become comfortable writing about it. After all, even M&B has gone from dishing out innocent fairy tales to sexually explicit stories. “In keeping with our philosophy, all stories should be page-turners, with happy endings,” said Harlequin M&B India director Andrew J Go about what he expects from the publishing house’s Indian chapter. The prospect sounds, for the lack of a better word, exciting.

Can Desi Pens Fuel Our Passion?

By Saleha Haseeb

Are authors from the land of Kamasutra up to the challenge of writing about love and passion in Mills and Boon style?

It can be a classic tale of passion. Where the land of Kamasutra meets western romance. Where the temples of Khajuraho inspire scandalous confessions. If romance publisher Mills & Boon (M&B) implements its idea of launching Indian writers, we may witness a cataclysmic union of Indian sensuality and western passion.

Or maybe not. Because in a country that’s obsessed with sex, we have a horrible track record and style of writing about it. “There are 50 different ways to write about bad sex, and Indian writers have explored all of them,” says Nilanjana Roy, chief editor, Westland/ Tranquebar Press. “We are very embarrassed to write about sex. It is a reflection of what we’ve been so far as a society,” she explains. Sex is one of the hardest subjects to write on, because “unlike food, there are only a finite number of variations.”

Which is why the Bad Sex in Fiction awards are as popular as they are notorious. They were instituted 11 years ago to mock “redundant passages of sexual description in the modern novel”. On the illustrious list of Indians who have been nominated for and won this award are Tarun Tejpal whose Alchemy of Desire explored “peaks and valleys” and “danced the Last Tango of Labia Minora,” and Salman Rushdie, who wrote in Shalimar the Clown, “…Let’s, you know, caress each other in five places and kiss in seven ways and make out in nine positions, but let’s not get carried away.”

The 2003 winner, Aniruddha Bahal, said he wouldn’t change a word in the passage from his book Bunker 13 that made comparisons between women and cars: “She is topping up your engine oil for the cross-country coming up. Your RPM is hitting a new high… She picks up a Bugatti’s momentum… Squeeze the maximum mileage out of your gallon of gas. But she’s eating up the road with all cylinders blazing.” He does not agree that Indians cannot write about sex. “We have a tradition of erotic writing, from the works of Kalidasa to the Kamasutra. How can we be bad at writing about sex?” he asks.

Theatre personality Mahabanoo Mody Kotwal has an answer. “It is our sophomoric attitude towards sex, no doubt encouraged by down market renditions of it in most Bollywood movies, that prevents a sense of being comfortable with this subject,” she says. Insisting that sex is a subject better handled by regional writers, she wonders if “Mills and Boon is experiencing a recession in good writers in English, that it is looking towards India for this?”

But the themes in western novels about passion are so deep-seated in Indian society too — misogyny, irresistible locations, rape fantasies, and sexual submission of women — that writers can easily make a success out of such writing. “The only problem is that Indians write with a fear of family looking over their shoulders. We consider our writing autobiographical. There is an association of the writer with the writing, especially when it involves sex,” says V K Karthika, publisher, Harper Collins India.

But the times are changing. And it’s possible that the new crop of writers will become comfortable writing about it. After all, even M&B has gone from dishing out innocent fairy tales to sexually explicit stories. “In keeping with our philosophy, all stories should be page-turners, with happy endings,” said Harlequin M&B India director Andrew J Go about what he expects from the publishing house’s Indian chapter. The prospect sounds, for the lack of a better word, exciting.

BUSINESS OF BEING SANTA

By Kajol Singh

The success of the Santa Claus village in Finland’s Lapland owes as much to its smart marketing as to the timeless appeal of Santa, finds out HNN

in snow, Rovaniemi — the capital of Lapland, Finland’s northernmost province — looks all ready to celebrate Christmas, just a few days away. Despite the severe cold, it is teeming with reindeer sleighs, hundreds of children, their parents and other visitors from across the world — all here to meet Santa Claus in his village.

Set up in 1992, the Santa Claus village is on the Arctic Circle, about 8 km from Rovaniemi and is recognized worldwide as his main residence. No wonder then, the village received half a million visitors in 2007 and looks set to surpass that figure this year.

One such visitor is 13-year-old Katja Virtanen from Helsinki, who has been meeting Santa Claus for the past three years. She sets her hair right before entering his office for a photo-op. “You know, I have been a good girl. Santa gives me presents every year,” she says, unable to hide her excitement. She may not know that her parents spend 25 for her photo with Santa, 50 for the video and 5 each for the Santa badges that she takes home for friends. A meeting with Santa certainly doesn’t come cheap, but does anyone mind?

“Not really,” says Anja, Katja’s mother. “Why would I mind a trip to the Santa village every winter if it makes Katja an obedient and well-behaved child for the rest of the year?”

All that goodwill is translating into megabucks for the Santa enterprise. A food court, shopping center, souvenir shops, sleigh rides, gift shops and Lapland ceremonies add to the village’s attractions. The total sales figures cross 20 million annually, with more than 60 companies operating there and giving employment to hundreds of people at the Santa Claus office, post office, souvenir shops and activity services.

At the Santa post office, a large variety of Christmas goodies like greeting cards and CDs are sold, and the proceeds are used to send gifts to “children who have been nice”. Santa receives as many as eight lakh letters from children annually, with requests ranging from laptops, video games, good grades, more friends to even “happiness” as gifts. Dozens of Santa’s elves make sure that every letter is read, and then draw up a list of lucky children whose requests would be met.

Helping Santa in his endeavour is Mrs Claus, who stays at the Santa Claus residence in Luosto, 150 km from the village. She wraps gifts and bakes special Christmas cookies. It’s said that every evening when Santa gets back home, he asks: “Mrs. Claus, can I see how many gifts have been wrapped for the kids?” And she replies, “Don’t worry, Mr Claus, I will take care of everything. I am really pleased that this year, so many children from around the world have made it to your goodies list.”

Critics may see Santa Claus as a business enterprise that perpetuates a myth and leads children to a make-believe world. But does it cause any harm? Montreal University professor Serge Larivee, who teaches psychology of education, compared two studies on the way children related to the myth of Santa back in 1896, and in 1979. He concludes in his recent report that though parents lie to their kids about Santa, they feel that having children believe in him is not such a bad thing after all, because it makes them happy.

Meanwhile, Santa gets ready to meet a new lot of visitors. “I might travel a bit and even go to India soon,” he says, with a twinkle in his eye.

BUSINESS OF BEING SANTA

By Kajol Singh

The success of the Santa Claus village in Finland’s Lapland owes as much to its smart marketing as to the timeless appeal of Santa, finds out HNN

in snow, Rovaniemi — the capital of Lapland, Finland’s northernmost province — looks all ready to celebrate Christmas, just a few days away. Despite the severe cold, it is teeming with reindeer sleighs, hundreds of children, their parents and other visitors from across the world — all here to meet Santa Claus in his village.

Set up in 1992, the Santa Claus village is on the Arctic Circle, about 8 km from Rovaniemi and is recognized worldwide as his main residence. No wonder then, the village received half a million visitors in 2007 and looks set to surpass that figure this year.

One such visitor is 13-year-old Katja Virtanen from Helsinki, who has been meeting Santa Claus for the past three years. She sets her hair right before entering his office for a photo-op. “You know, I have been a good girl. Santa gives me presents every year,” she says, unable to hide her excitement. She may not know that her parents spend 25 for her photo with Santa, 50 for the video and 5 each for the Santa badges that she takes home for friends. A meeting with Santa certainly doesn’t come cheap, but does anyone mind?

“Not really,” says Anja, Katja’s mother. “Why would I mind a trip to the Santa village every winter if it makes Katja an obedient and well-behaved child for the rest of the year?”

All that goodwill is translating into megabucks for the Santa enterprise. A food court, shopping center, souvenir shops, sleigh rides, gift shops and Lapland ceremonies add to the village’s attractions. The total sales figures cross 20 million annually, with more than 60 companies operating there and giving employment to hundreds of people at the Santa Claus office, post office, souvenir shops and activity services.

At the Santa post office, a large variety of Christmas goodies like greeting cards and CDs are sold, and the proceeds are used to send gifts to “children who have been nice”. Santa receives as many as eight lakh letters from children annually, with requests ranging from laptops, video games, good grades, more friends to even “happiness” as gifts. Dozens of Santa’s elves make sure that every letter is read, and then draw up a list of lucky children whose requests would be met.

Helping Santa in his endeavour is Mrs Claus, who stays at the Santa Claus residence in Luosto, 150 km from the village. She wraps gifts and bakes special Christmas cookies. It’s said that every evening when Santa gets back home, he asks: “Mrs. Claus, can I see how many gifts have been wrapped for the kids?” And she replies, “Don’t worry, Mr Claus, I will take care of everything. I am really pleased that this year, so many children from around the world have made it to your goodies list.”

Critics may see Santa Claus as a business enterprise that perpetuates a myth and leads children to a make-believe world. But does it cause any harm? Montreal University professor Serge Larivee, who teaches psychology of education, compared two studies on the way children related to the myth of Santa back in 1896, and in 1979. He concludes in his recent report that though parents lie to their kids about Santa, they feel that having children believe in him is not such a bad thing after all, because it makes them happy.

Meanwhile, Santa gets ready to meet a new lot of visitors. “I might travel a bit and even go to India soon,” he says, with a twinkle in his eye.

Special Feature: RECAP OF ANDHRA PRADESH IN 2008

By M H Ahssan

Starting today, HNN revisits events that made news in the year 2008

An airport that promised to change the city’s topography. A royal battle over a handsome booty locked in a London bank. A megastar dropping broad hints at entering politics. And a political move of doling out rice at Rs 2-a-kg. The dawn of 2008 (January to April) more or less indicated what the evening would be like

THE COP, THE HEIST AND ‘THE GENTLEMAN’
The year 2007 may have started on an upbeat note with the state announcing the opening of the blast-hit Lumbini park amid tight security measures, the ghost of the blast continued to haunt the city police’s top brass. Police commissioner Balwinder Singh ‘quit’ exactly a year after he had taken over as commissioner. B Prasada Rao was appointed as commissioner later in the same month.

But what caught cops unawares was a major heist at the AP State Museum at Public Gardens, Nampally. Several antiques, including swords and a spearhead worth lakhs of rupees were stolen in this midnight robbery. The same were found a few days later buried in the museum’s lawn.

Also caught unawares this month was the South Central Railway when GHMC bulldozers mowed the compound walls of SCR properties from Sangeet Junction to Tarnaka for road widening. The SCRGHMC feud hasn’t entirely settled to date.

However, it was the real story of a reel superstar that had readers hooked to these columns. It was in the first week of January when megastar Chiranjeevi started dropping broad hints at entering politics. Many ‘urged’ him to take the plunge at the 11th day ceremony of the actor’s departed father even as his brother Nagendra’s film was used to wish aloud Chiranjeevi’s entry into politics.

Speaking of politics and ‘hints’, T Devender Goud chose the new year to start singing the T-tune. Boss Naidu wasn’t impressed and warned his leaders against raising the Telangana storm in his tea cup. It was in this month, that the senior TDP leader hinted at quitting. The rest, as they say, is history.

MANY BROKEN PROMISES IN VALENTINE’S MONTH
The month began with a CRPF constable pumping bullets into his senior over denial of leave. Syed Sirajuddin Khan, additional deputy inspector-general, incidentally belonged to the aristocratic Paigah family.

Speaking of unfulfilled wishes, here was one that had the cricket fans training their attention on Hyderabad. Pakistani cricketer Shoaib Malik played the alleged lover-cumcheat and city girl Ayesha a disowned wife, whose father Mohammed Ahmed Siddiqui accused Malik of deserting his daughter after marrying her even as Malik denied it.

Many hearts were also broken when several big trees outside the Paigah Palace were axed as the US consulate displaced HUDA from this heritage premises after their 27-year-long stay here.

Scores of promises by the government kept the aam aadmi happy, at least for then as huge funds to give face-lifts to Osmania Hospital, RTC were granted and an e-waste disposal project was announced. Laptops for HCU students were also on the cards. But what thrilled Hyderabadis the most was the union railway minister’s announcement of Rs 4,000 crore funding for upgrading Secunderabad station to international standards, modelled on the Rome Termini.

But the month ended only after leaving the police and civilians in a tizzy as an anonymous caller alerted’ the control room claiming that a suicide bomber had entered the city in a car. However, we live to tell the tale that it was a hoax call.

SHOWERS OF BLESSINGS
The drama over opening of the new worldclass airport at Shamshabad made for maximum headlines this month. Minutes after being inaugurated by Congress chief Sonia Gandhi on March 14, the aviation ministry announced that commercial operations at the airport were delayed indefinitely due to operational reasons. As it turned out, several airlines were still negotiating ground duty charges with the airport management even as the official version remained that the airlines needed time to manage their transition from Begumpet to Shamshabad.

After a small delay, the midnight of March 22 finally saw activity at the new airport. The opening was riddled with teething problems with many passengers landing at the Begumpet airport on March 23 morning. Even a pilot of a private airline, unaware of the recent development, flew past the city first to Delhi and then to Mumbai!

While on the one hand the aviation gurus were showering their blessings on Hyderabadis by gifting them a swank airport, on the other hand ‘Visa god’ Chilkur Balaji was extending his benevolence to weavers. The temple management made it mandatory for devotees paying their obeisance at the temple on Saturdays to wear only handloom apparel, to boost the spirits of the small scale industry.

Another man who joined the merry-making gang of weavers was higher education minister D Srinivas who was named the new state Congress president. He is believed to be a staunch but silent supporter of the Telangana cause.

However, the Gods above did not seem to be kind to all this month. Akkaldevi Srinivas (29) hailing from Karimnagar district, who was pursuing a post-graduation in medicine was found dead under mysterious circumstances in Pennsylvania in the U.S. While earlier reports pointed towards murder, police investigations later stated that he had committed suicide. The demise of veteran Telugu actor Shobhan Babu also left many teary eyed.

Amid such tragedies, the launch of the supercomp Dhruva in the city, to help in defence research, and the ‘city song’ composed by the children of Silver Oak School Hyderabad brought some moments of happiness.

OF FROZEN MILLIONS AND FREE RICE
Much in tune with Eliot’s Waste Land, April turned out to be a cruel month, with a city techie couple committing suicide in their apartment in the first week of April citing failed love as the reason in their 10-page suicide note.

Another failed bond was that of the GHMC and SCR that locked horns once again with the former disagreeing to pay market price to SCR for the railway land GHMC was taking for road expansion work. Another section fighting it out, yet again, was government doctors demanding higher pay scales.

A 60-year-old royal battle surfaced in April, 2008, with the Nizam’s kin seeking their pie from the Nizam’s one million pound booty locked away in the Natwest Bank of London. The amount, now estimated at 30 million pounds, had the “numerous’’ heirs of the last Nizam staking their claim with Mukarram Jah, reportedly, standing a better chance.

A noteworthy development this month was the arrest of six accused in the Punjagutta flyover crash case. However, it created much flutter as the accused were let off easily on bail within hours of their arrest on a bond of Rs 20,000.

While these offenders were let off easily, there were others being taxed heavily. The municipal corporation burnt the midnight oil to widen its Building Regularisation Scheme tax net. After fining owners of properties that had deviated from the approved layout under the scheme, the corporation embarked on a “property tax assessment’’ exercise of unauthorised buildings.

Interesting developments this month included the entry of home-grown Satyam into the $ 2 billion revenue club of India Inc. This joy was clearly shortlived. It was during this month that the AP High Court directed the state not to admit anyone under the 4 per cent Muslim quota.

But the spectacle of the month was the rice downpour with the state, in its biggest welfare scheme, ferrying in four lakh lorries carrying 35 lakh tonnes of rice to be sold at Rs 2-a-kg. That the scheme led to a severe rice shortage in the city is another story of another month.

‘Reused’ Cannula Back from Incinators

By M H Ahssan

Corporate Hospitals Found Reusing Them Claiming Patients Can’t Afford New Ones

The plasma television in hospital suites could well be brand new, but the cannula pierced into the patient’s body during a cardiac surgery could well be a reused one. Investigations conducted by this newspaper have revealed that some city hospitals are often making a rather unethical ‘compromise’ using medical equipment that as per law should be disposed after single use.

Cannulae (plural for cannula) are plastic tubes that come with a ’single-use device’ label and are used to drain or inject fluid into a patient’s body. It is reliably learnt that these devices are being “reused” by some hospitals, a fact confirmed even by cardiac and plastic surgeons, who shockingly reason that patients may not be able to “afford” new ones.

However, these cannulae are sterilised before reuse so that no trace of bacteria remains in them. “After gas sterilisation there is no chance of any infection passing on to the next patient,” a cardiac surgeon says.

However, since cannulae are inserted into the vein or artery of the patient for the administration of intravenous fluids and medicines, or into the nose for the delivery of oxygen, the reuse of such devices is declared illegal as per the Drugs and Cosmetics Act of 1940. This was done after these devices were put in the category of “drugs” in 2006.

This ‘reuse’ practice can lead to serious infections such as HIV, and sources in the health care sector note that other curable infections do occur among patients. “They are treated with antibiotics but this could lead to a longer stay of the patient in hospital and fat medical bill,” says a hospital administrator. This added cost to treat infections rubbishes hospitals’ claim that they do not use brand new cannulae as patients wouldn’t be able to afford it.

Open heart surgeries, plastic surgeries, liver transplants are some of the procedures where this practice of using used cannulae is rampant. “The cannulae used for these surgeries are very expensive. A single piece can cost anything between Rs 2,000-Rs 3,000.

The use of new cannulae escalate the cost of surgeries by a good Rs 50,000 or more and many patients may not be keen on spending so much,” says a senior official in a city hospital. However, further prob into the matter revealed that even smaller surgeries nowadays are not spared from this unethical practice either.

Though some medical experts agree that gas sterilisation is a nearly fool-proof method, they do not wash away chances of the patient suffering some infection. They point that the process of sterilisation is undertaken by ward-boys and nurses and not doctors.

‘Sickening’ practice by greedy hospitals in city
Reuse of Cannulae __ plastic tubes that come with a ‘single-use device’ label and are used to drain or inject fluid into a patient’s body __ by some hospitals can lead to serious infections, warn medical experts.“Even a slight mistake on their part could cost the patient dearly. Moreover, if a patient is shelling out Rs 1 lakh for a surgery, would he mind spending Rs 50,000 more if he is told it is for his safety,” says a physician who did not wish to be identified. He further stated that people do not compromise on their treatment. The import duty on medical equipment was reduced to 7.5 per cent in this year’s budget. Cannulae for major surgeries are all imported.

Health activists feel that patients opting for a surgery should at least be made aware of the two kinds of cannulae (new and sterilised) and allowed to choose for themselves.

But what do the law enforcers have to say? Officials of the Drug Control Authority admit that such violations are taking place in hospitals. “It is a punishable act and can lead to minimum one year imprisonment of the erring doctor, provided it is reported,” says an official of the department. “However, who can monitor what is happening inside the operation theatre? Even if the doctor is reusing a cannula on the patient, who will bring him to book?” he asks.

Sonali Bendre in Tears Over Gender Bias

By Priyanka Gill

Promoting female contestants aggressively on reality TV music shows seems to be the new mantra for celebrity judges on the small screen. While Himesh Reshammiya has been going on with the line that the winner of Sa Re Ga Ma Pa Challenge 2009 has to be a girl, the latest to join the club is Indian Idol ’s judge Sonali Bendre.

An upset Sonali broke down in a recent episode when a favourite female contestant of hers, Shini Kalvint from Gwalior, was voted out. Sonali, who has been rooting for girls from the beginning of the show, was visibly upset when Shini and another contestant Bhavya landed in the unsafe zone during the elimination round.

When Shini was ousted, Sonali went up to her and said, “ I think there is a problem with the Indian audience who suffer from serious gender bias. It’s extremely difficult for a married woman to make it to a reality show and Shini had courageously come so far. If the audience cannot offer support, then we must eliminate all the girls and have only boys on the show.” In the previous season of Indian Idol , judge Alisha Chinai had expressed her desire to see a female contestant as winner, but she was not as aggressive as Sonali. “ Looking at the audience verdict, I feel sad. I wonder why I accepted being a judge on the show as I cannot handle this ( gender bias),” Sonali added.

Though encouraging Indian voters to support girls is a good idea, considering no female contestant has ever won a reality music show yet, insiders insist the reason lies elsewhere. “ Television has always been dominated by its female viewer base. And with the staple saas- bahu formula becoming obsolete, reality TV is trying to capture this loyal viewer base by promoting female contestants. These producers are not at all concerned about promoting women.

For them, it is a matter of boosting TRPs,” said a TV producer.

You somehow feel there might be some truth in that charge watching Reshammiya on Sa Re Ga Ma Pa Challenge 2009 . Last season, Himesh’s favourite contestant was Aneek Dhar and the composermentor never seemed interested in promoting girls. Kolkata boy Aneek, who came into the show as the winner of the Bengal edition of the show, went on to win the programme.

This season, Himesh has been promoting Vaishali, winner of Sa Re Ga Ma Pa Marathi , who belongs to his Rock gharana — one of the groups in which contestants have been divided. Seconding Himesh is Shankar Mahadevan whose Lakshya gharana has a strong battalion of female singers. On the other hand, Pritam Chakraborty of Dhoom gharana and Aadesh Srivastava of Jai Ho gharana are rooting for boys. No prizes for guessing that promoting males is their best shot at lifting the trophy.

Sanjay Upadhyay, head of Fiction Programming, Sony, rejects charges that girls are being promoted to pull the female audience base. “ Our channel wants to create history by having a female winner on Indian Idol . That doesn’t mean we are promoting the girls needlessly. They are getting votes on the basis of their talent,” he said.

Sonali Bendre in Tears Over Gender Bias

By Priyanka Gill

Promoting female contestants aggressively on reality TV music shows seems to be the new mantra for celebrity judges on the small screen. While Himesh Reshammiya has been going on with the line that the winner of Sa Re Ga Ma Pa Challenge 2009 has to be a girl, the latest to join the club is Indian Idol ’s judge Sonali Bendre.

An upset Sonali broke down in a recent episode when a favourite female contestant of hers, Shini Kalvint from Gwalior, was voted out. Sonali, who has been rooting for girls from the beginning of the show, was visibly upset when Shini and another contestant Bhavya landed in the unsafe zone during the elimination round.

When Shini was ousted, Sonali went up to her and said, “ I think there is a problem with the Indian audience who suffer from serious gender bias. It’s extremely difficult for a married woman to make it to a reality show and Shini had courageously come so far. If the audience cannot offer support, then we must eliminate all the girls and have only boys on the show.” In the previous season of Indian Idol , judge Alisha Chinai had expressed her desire to see a female contestant as winner, but she was not as aggressive as Sonali. “ Looking at the audience verdict, I feel sad. I wonder why I accepted being a judge on the show as I cannot handle this ( gender bias),” Sonali added.

Though encouraging Indian voters to support girls is a good idea, considering no female contestant has ever won a reality music show yet, insiders insist the reason lies elsewhere. “ Television has always been dominated by its female viewer base. And with the staple saas- bahu formula becoming obsolete, reality TV is trying to capture this loyal viewer base by promoting female contestants. These producers are not at all concerned about promoting women.

For them, it is a matter of boosting TRPs,” said a TV producer.

You somehow feel there might be some truth in that charge watching Reshammiya on Sa Re Ga Ma Pa Challenge 2009 . Last season, Himesh’s favourite contestant was Aneek Dhar and the composermentor never seemed interested in promoting girls. Kolkata boy Aneek, who came into the show as the winner of the Bengal edition of the show, went on to win the programme.

This season, Himesh has been promoting Vaishali, winner of Sa Re Ga Ma Pa Marathi , who belongs to his Rock gharana — one of the groups in which contestants have been divided. Seconding Himesh is Shankar Mahadevan whose Lakshya gharana has a strong battalion of female singers. On the other hand, Pritam Chakraborty of Dhoom gharana and Aadesh Srivastava of Jai Ho gharana are rooting for boys. No prizes for guessing that promoting males is their best shot at lifting the trophy.

Sanjay Upadhyay, head of Fiction Programming, Sony, rejects charges that girls are being promoted to pull the female audience base. “ Our channel wants to create history by having a female winner on Indian Idol . That doesn’t mean we are promoting the girls needlessly. They are getting votes on the basis of their talent,” he said.

India Rolls Out Red Carpet for Tourists

By Neeta Lal

If you’ve been planning to visit India – whether to soak up Goa’s splendiferous sands or ogle the Taj Mahal – now’s a good time to pack your bags. Hotel tariffs have plummeted by a whopping 30%, the Indian government has unleashed a raft of tourist-friendly sops and travel agents and airlines are offering great bargains.

With the portentous mix of a global economic slowdown and terror attacks eroding the growth of tourist arrivals in India, tourism has taken a beating. The Mumbai terror attacks on November 26, industry experts rue, have ruined the tourism season just as it was unfurling. As a result, compared to the 30% growth in the sector in 2007 – and double-digit growth for the past five years – the country is expected to post a tourist arrival increase of zilch this year.

This is a contrast from 2007, during which India witnessed a record number of visitors from abroad and a sharp rise in foreign exchange earnings through tourism. The number of foreign tourists in India touched a record 5 million in 2007, an increase of 12% from 2006. The estimated tourism earnings in 2007 were US$11.96 billion, compared to $8.93 billion in 2006.

This year, even till August, things weren’t actually so bad. Foreign arrivals had increased 10.4% compared with the corresponding period last year. The foreign exchange earnings during the same period rose 21.5%. Buoyed with this growth, the industry had set itself an ambitious target to more than double the number of arrivals to 10 million by 2010, when New Delhi will host the Commonwealth Games.

But all this looks unachievable now due to a combination of factors, including a plunge in the number of arrivals for the first time in six years by 2.1% in November, traditionally regarded as the beginning of the high season. The number of visitors in November nose-dived from 532,000 in 2007 to 521,000, while the corresponding foreign exchange earnings from visitors dipped by 12.5% to $1 billion.

To make matters worse, in the aftermath of the Mumbai terror attacks, almost 50% of bulk bookings by visitors (largely from Britain, Europe and the US) were cancelled. Travel advisories issued by the US, Britain, Australia, Canada and Singapore advising against travel to India did nothing to help things. According to Himmat Anand, co-chair of the Federation of Indian Chambers of Commerce and Industry’s tourism committee, along with corporate bookings which usually plunge at this time, no fresh bookings have been forthcoming. “India has suddenly disappeared from overseas tourists’ itineraries this year,” he said.

What has further aggravated the situation is that on account of a record tourist turnout last year, operators had invested heavily in infrastructure upgrades and renovations which are now cumulatively adding to their losses. “This has been one of the worst times for Indian tourism in recent history,” said Anil Kalsi, chairman (northern region) of the Travel Agents Association of India.

With panic buttons buzzing everywhere, the Ministry of Tourism has been forced to take urgent steps to increase footfalls to the country. It is now working on a war footing with trade associations and airlines to push up visitor numbers through a slew of measures. The Ministry of Tourism has set up state-level committees comprised of representatives from trade associations and ministries to look into various aspects of tourism management. Tourism Minister Ambika Soni has also urged governments of various countries not to issue travel advisories against India, simultaneously sending out a message of reassurance to the world community that India is a “safe” destination.

To prevent the sector from plunging into further gloom, the Tourism Ministry is also working proactively with travel operators to revitalize inbound tourist traffic. As a part of the “promote India campaign”, for instance, tour operators have been asked to pair hotel tariffs with airfares and offer attractive incentives to visitors. Those who visit India this year will be offered sops like discounted packages for rural tourism, adventure tourism and wellness tourism on their next visit. Tour operators are also offering to sponsor at least 1,000 tourism industry reps to take a free trip to India for discussions.

Meanwhile, the ministry is working out the modalities of giving visas to tourists on arrival to further encourage unencumbered travel to India. It is also fleshing out 22 new mega tourism destinations across the country at an outlay of 250 million rupees (US$5.1 million) to 1 billion rupees for each destination, to infuse novelty into visitors’ itineraries. To give rural tourism a push, 130 more villages have been identified as templates to showcase India’s heterogeneous culture. Financial support to tour operators promoting India in the international arena has also been ratcheted up.

The government would do well to fire on all cylinders, considering that after the Mumbai massacre group bookings to popular tourist destinations like Goa, Jaipur and Kerala have plummeted remarkably. “The meltdown mayhem coupled with Mumbai’s terror attacks have severely impacted Indian tourism,” said Subhash Goyal, erstwhile president of Indian Association of Tour Operators. “It has had a cascading effect down the hospitality chain – from travel agents to the airlines to car rental companies to the hotels.”

Five-star hotel tariffs in Delhi have hit an all-time low. A room can now be had in the range of 8,000 rupees to 10,000 rupees, even though the same room fetched between 12,000 to 15,000 rupees last year. Ergo, to create demand, many hotels and resorts are offering a “Global Meltdown Tariff” which knocks off 30% off the normal fare.

However, despite a raft of measures taken by the government and the hospitality sector to rejuvenate inbound tourism, industry players are still a tad wary about the Christmas-New Year season, which accounts for the bulk of their annual business.

“Ironically, this is the time when trade is [usually] booming,” said Prateek Ghai of Globe Travels, a New-Delhi based travel agency. “But this time, due to a combination of factors, things are looking far too bleak!”

Nepal Caught in Vortex of Regional Rivalry

By Nishi Thapa

The terror attack on Mumbai on November 26 quickly developed into renewed rivalry between India and Pakistan, and small Nepal has been dragged into the controversy. The latest dispute, focusing on the lone survivor among the 10 terrorists, is a case in point.

Nepal’s Foreign Ministry issued a statement on December 19 stating that the man, Ajmal Kasab, was “neither arrested in Nepal nor was he handed over to any other country”. This reaction came in the context of a Pakistani media report which earlier claimed that Kasab was arrested by Nepali police in 2005, and was quietly handed over to Indian authorities.

According to a claim made by a Pakistani lawyer, C M Faruque, Kasab was kept by Indian security, together with other Pakistani detainees.

“The people arrested in Nepal had gone there on legal visas for business, but Indian agencies are in the habit of capturing Pakistanis from Nepal and afterwards implicating them in Mumbai-like incidents to malign Pakistan,” the lawyer was quoted as saying. Indian officials described these allegations as sheer propaganda. But this report was picked up by some Indian media outlets, including The Asian Age newspaper.

While this Nepali official’s stand has helped Indian authorities maintain their original contention that the terrorists came from Pakistan to Mumbai via a sea route, there have been several occasions in the past when New Delhi has alleged that Nepal has become a den of terrorists sponsored by Pakistan’s intelligence agency, Inter-Services Intelligence (ISI).

There have also been cases in which New Delhi has complained that Nepali authorities did not take action against Pakistani visitors who were allegedly involved in the circulation of fake Indian currency. Pakistan’s contention has been that it is prepared to cooperate when Nepali authorities can produce concrete proof of the involvement of Pakistani nationals in unlawful activities.

If a distant neighbor like Pakistan finds it useful to keep its intelligence agency “active” in Nepal, it can be assumed that India’s external intelligence service, the Research and Analysis Wing (RAW), is “very active”. China’s intelligence agency is also likely to be involved.

The presence of the US Central Intelligence Agency (CIA) also cannot be ruled out. The British are also quite adept in handling their discreet spy network in a beneficial manner.

Who could be better placed to perceive such movements than Maoist leader Prachanda, who as prime minister heads Nepal’s interim coalition. Prachanda revealed to journalists last week that what outwardly looked like a quarrel among political parties was in fact a confrontation between external forces.

What he did not concede is that the primary reason for enhanced external interest in Nepal is the rise of the Maoist brand of communism in the Himalayan country.

India’s first official reaction on the Mumbai carnage came from Prime Minister Manmohan Singh, who blamed “outsiders” for their role in the tragic event in which nearly 200 people were killed. He then went on to warn “neighbors” of consequences if they continued to allow terrorists to use their territory. While Manmohan did not leave any doubt that Pakistan was the first target, his statement expressed New Delhi’s suspicion that smaller countries around India also had to share the blame.

In an article appearing in the December 19 edition of Indian magazine Frontline, a writer said blaming Pakistan was a “convenient option” for India. If this comment is taken at face value, one can conclude that blaming smaller neighbors like Nepal, Bangladesh and Sri Lanka is even more convenient. This has been the case from time to time.

New Delhi’s insistence that Kathmandu should enter a new extradition treaty with India is being seen in this context. One of the provisions of the proposed treaty requires the Nepali authorities to hand over to India suspects who could be citizens of other countries living or working in Nepal.

Kathmandu has not agreed to this pact so far in view of the concerns from Pakistan and China, among others. The existing extradition treaty, signed in 1953, is seen as anachronistic by New Delhi. Surprisingly, Indians do not take an interest in abrogating the more controversial friendship treaty signed in 1950. Almost all of Nepal’s political parties have publicly described this pact as “unequal”.

Nepal remains in an unenviable situation whereby it must assure its immediate neighbors that it won’t allow its soil to be used by the foes of friendly neighbors. Beijing’s concerns are directed to Tibetan exiles – including those sneaking in from their bases in India. India’s worries revolve around Nepal’s possible bid to use the “China card” as well as Pakistan’s perceived attempt to use Nepali territory for deadly ISI-funded Muslim schemes against India. Pakistan, a nuclear power, and an ally of both China and the United States, would obviously be concerned were its nationals visiting Nepal not provided with basic courtesy and security.

The Nepali intelligentsia is concerned with a thorny question: if Nepal’s precious time and scarce resources have to be utilized merely to address concerns of others, when will Nepal get a chance to look after its own safety, security and welfare?

History suggests that New Delhi often disregards what it preaches to others. For example, it sends armed security units inside Nepal to pick up suspected persons before their cases are tried in Nepal’s courts. One striking example of this surfaced in February, when Nepali police officials handed over an absconding doctor who was allegedly running a major kidney transplant racket. Amit Kumar would have been transferred to India after the completion of extradition procedures, but New Delhi used diplomatic channels to take the suspect out of Nepal.

Former prime minister Girija Prasad Koirala ordered Nepal police to hand over the suspect to Indian authorities without any legal basis. Koirala’s friendly gesture was later reciprocated by New Delhi during April elections when India’s national security advisor, M K Narayanan, used a television channel to extend India’s support to Koirala and his party. That such support did not help him get re-elected prime minister is another story.

“We never put all our eggs in any [one] basket,” Narayanan said in a September interview published in The Week magazine. While this statement was made in the context of Pakistan, it sends a pithy message to all in the region.

While Narayanan was spared from the humiliation of home minister Shivaraj Patil, who was forced to resign in the aftermath of the Mumbai attacks, security experts do not doubt the failure of India’s intelligence apparatus. Conversations that this writer had with incumbent and former security officials in Nepal suggest that New Delhi is currently attempting to cover up its failure.

To accuse Pakistan without any empirical, credible evidence is clearly an attempt to divert the attention of the Indian public. Pakistan is fighting terrorists along its border with Afghanistan and is unsuccessfully engaged with terrorism within its own territory. Pakistan’s President Asif Ali Zardari has offered a joint investigation on the Mumbai incident and has pledged to take action if non-state players in his country are found to have been involved in the attacks.

As officials in India continue to play the blame game, independent Indian experts and analysts do not approve of methods which might prove expedient in the short term.

“Experts on the issue of terrorism say that blaming Pakistan will be a convenient option,” wrote John Cherian of Frontline magazine on December 19. Such a policy is bound to raise tensions and derail the peace process being pursued through what has been billed as bilateral dialogue. Brahma Chellaney, often perceived as a hawkish strategist, also thinks it prudent to employ options of diplomatic, economic and political orientation. “Between the two extremes – inaction and military action – lie a hundred different options,” Chellaney wrote in The Hindu, on December 20.

A democratic country’s actions naturally must be sane, humane and transparent to the highest extent possible. It was probably lack of transparency which led Indian minister, Abdul Rahman Antulay, to raise doubts about the the killing of a security official who was heading an anti-terrorism squad. “Anyone going to the roots of terror has always been a target,” the Indian media quoted the minister as saying. Antulay’s party was embarrassed at his suspicion of foul play and the opposition criticized the Muslim minister for saying something which could help Pakistan.

Nepali people are reminded of the hijacking of an Indian aircraft exactly nine years ago on December 24, 1999. The New Delhi-bound flight from Kathmandu was hijacked minutes after take off and was relinquished in Kandahar, Afghanistan, a week later. New Delhi was prompt to punish Kathmandu: suspending Indian Airline services for several months for its lax security. When flights were resumed, Nepal was forced to accept Indian security personnel frisking passengers at Kathmandu airport.

India even labelled a Nepali passenger as one of the hijackers. Later, when this could not be proved, India did not offer any apology for the mistake. Madan Lal Khurana, a minister in the government of former prime minister Atal Bihari Vajpayee, said publicly in April 2006 that some of the “inside information” he possessed about the 1999 hijacking was “sensational”. He promised to reveal details of the behind-the-scenes activity at an appropriate time.

Nepal’s strategic location makes its stability vital in regard to containing possible attacks on neighboring nations. As such, many Nepali analysts feel that alleged foreign meddling in the country’s domestic politics should come to an end.

This is something even Indian politicians admit from time to time.

“Keeping in view past experiences with Sri Lanka and Bangladesh, it is better that we keep away from the internal affairs of that country,” Indian parliamentarian S Sudhakar Reddy told the press after returning from an official visit to Nepal in June 2006.

Why Pakistan’s Military is Gun Shy?

By Syed Saleem Shahzad

The attack on Mumbai on November 26 by Pakistan-linked militants opens a similar opportunity for India to what happened to Washington after the September 11, 2001, attacks on the United States. The US was able to further its regional designs with global support and was able to coerce Islamabad into cracking down on its own strategic partner, the Taliban in Afghanistan.

New Delhi also now has the international community on its side, but Pakistan is in a very different position from where it was seven years ago, and the new political and military leaders are not in a position to take similar steps to those of their predecessors.

In a new round of international pressure following the Mumbai attack, the chairman of the US Joint Chiefs of Staff, Admiral Mike Mullen, arrived in Pakistan this week to meet with senior Pakistani officials. The chief of Interpol was also scheduled to visit Islamabad on Tuesday to discuss the mechanism for the arrest and interrogation of wanted people such as Zakiur Rahman, the chief of the Lashka-e-Toiba (LET), which was connected to the militants who attacked Mumbai; Maulana Masood Azhar of the outlawed Jaish-e-Mohammed and former Mumbai underworld kingpin Dawood Ibrahim.

India is reported to have mobilized forces near the Rajasthan-Sindh Pakistani border areas and Pakistani intelligence sources have talked of possible surgical strikes on militant bases in Pakistan-administered Kashmir and in Lahore, at the central offices of the Jamaatut Dawa, which this month was declared by the United Nations Security Council a front for the LET, which is banned as a terror group. The Pakistan Air Force has been placed on red alert.

Earlier, US Secretary of State Condoleezza Rice, both in public statements and private meetings, urged Pakistan to understand the gravity of the current situation and to take immediate steps to stop terrorists from using its soil for attacking others. The US warned Pakistan that in the absence of appropriate steps, it would be hard for the US to prevent Delhi from carrying out strikes inside Pakistan in retaliation for the Mumbai attack in which 10 militants held the city hostage for three days and killed 175 people, including top police officials.

In a speech at Washington’s Council on Foreign Relations, Rice said what Pakistan had done so far to catch those responsible for the attacks in Mumbai was not enough. “You need to deal with the terrorism problem,” she said when asked what her message was to Pakistan. “And it’s not enough to say these are non-state actors. If they’re operating from Pakistani territory, then they have to be dealt with.”

According to reports, Islamabad has assured Indian leaders and international leaders such as British Prime Minister Gordon Brown that it is ready to take all steps demanded by the world community to avoid a war.

All the same, actions speak louder than words and the prevailing opinion in Western capitals and in New Delhi is that Pakistan will not undertake any real crackdown on militants.

This view is reinforced by the contradictory statements of Pakistani officials. On December 7, Pakistani authorities issued a statement that Azhar, the founder of the Jaish-e-Mohammad, had been placed under house arrested at his Bahawalpur residence in Punjab. But on December 17, first the Pakistan envoy to New Delhi and then Pakistani Foreign Minister Shah Mehmood Qureshi stunned everybody by saying that Azhar was at large and not in Pakistan.

Azhar, a firebrand orator in favor of jihad although he has never been a combatant, was arrested in India in 1994 over his connections with the Kashmiri separatist group Harkatul Mujahideen. In December 1999, Azhar was freed along with separatist guerrillas Mushtaq Zargar and Omar Shiekh (the abductor of US reporter Daniel Pearl in Karachi in 2002) by the Indian government in exchange for passengers on the hijacked Indian Airlines Flight 814 that was held hostage in Kandahar, Afghanistan, under Taliban control.

In 2000, Azhar, claimed by Pakistan to have never entered Pakistan, announced the formation of the Jaish-e-Mohammad, at a press briefing at the Karachi Press Club, along with the now slain Mufti Nizamuddin Shamzai. Jaish was banned in 2002 under US pressure, but Azhar remained close to the Pakistani establishment, mainly because he refused to support al-Qaeda against the Pakistan military.

Following the Mumbai attack, Delhi has demanded that Azhar, along with others such as Dawood, be handed over. This was refused by Pakistan, which said Azhar was a Pakistani national and had never been tried by Indian authorities. Then came the surprise announcement that he was not even in Pakistan.

What complicates the situation is the lack of unity between the civilian government in Islamabad and the military. The government managed to get the international community to support it by having the Jamaatut Dawa declared a front for the LET to justify a crackdown on the organization against the will of the army. (See Pakistan’s military takes a big hit Asia Times Online, December 13.)

But the military establishment, which has been humiliated over the past seven years, has good reasons not to back the government.

The problems started after September 11, when the US forced the then-military government of president General Pervez Musharraf to abandon the Taliban. Up to 2001, Afghanistan had virtually been a fifth Pakistani province for which Pakistan arranged day-to-day expenditures. Even the communications network was run by the Pakistan Telecommunication Corporation Limited.

By 2003, Pakistan had been forced to send the army into the restive tribal areas bordering Afghanistan to crack down on al-Qaeda and militants, in breach of its agreements with the tribes.

In 2004, Pakistan was forced to shut militant camps in Pakistan-administered Kashmir and to accept India’s fencing of the Line of Control that separates the two Kashmirs. As a result, militant operations into India-administered Kashmir were badly interrupted.
When Pakistan changed its Afghan policy, Musharraf, who was also chief of army staff, informed all jihadi organizations that the policy was necessary to preserve Pakistan’s interests in Kashmir. However, when the Kashmir policy changed and operations started in the tribal areas, the jihadi organizations reacted.

By 2005, all the big names in the LET had left the Kashmiri camps and taken up in the North and South Waziristan tribal areas. The same happened with Jaish and other organizations. The most respected name of the Kashmiri struggle, Maulana Ilyas Kashmiri, the commander of Harkatul Jihad al-Islami, also moved to Waziristan.

This was the beginning of serious problems for Pakistan and also resulted in a change in the dynamics of the Afghan war. Trained by Pakistan’s Inter-Services Intelligence’s India cell, these disgruntled militants caused havoc in Afghanistan and played a significant role in bringing the latest guerrilla tactics to Afghanistan. They also introduced major changes in the fighting techniques of the tribal militants against the Pakistani forces.

By 2006, the Taliban had regrouped and launched the spring offensive that paved the way for significant advances over the next two years. At the same time, militants escalated their activities in Pakistan and forced Pakistan into virtual neutrality in the US-led “war on terror”.

An unprecedented number of attacks were carried out on Pakistani security forces in 2007 and by February 2008 suicide attacks in Pakistan outnumbered those in Iraq. Militants carried out dozens of attacks on the North Atlantic Treaty Organization’s (NATO’s) supply lines from Karachi, virtually bringing them to a halt. According to Strategic Forecasting, a Texas-based private intelligence entity: “Pakistan remains the single-most important logistics route for the Afghan campaign. This is not by accident. It is by far the quickest and most efficient overland route to the open ocean.”

In this situation, the only peaceful place in Pakistan is Punjab, the largest province and the seat of government. But this peace can only be ensured through central Punjabi jihadi leaders like Hafiz Muhammad Saeed of the LET and southern Punjabi jihadi leader Azhar. Azhar has influence in the jihadi networks in Punjab and he convinced jihadis, after a wave of suicide attacks in Lahore, Rawalpindi and Islamabad, to go to Afghanistan and spare Punjab.

The highly demoralized Pakistan army has failed in the tribal areas and in the Swat Valley it has had to solicit peace accords. Opening up a new front in Punjab, which could spread to the port city of Karachi – the financial lifeline of the country – would be a disaster.

This explains the military’s resistance to the government push to go full out against militancy, a move that would also compromise NATO’s lifeline to Afghanistan.

Film Review: Ghajini

By M H Ahssan

Save the climax, the Hindi version follows the Tamil original. The remarkable difference is how the marketing genius of Aamir Khan has turned eight pack abs and buzzcut with scar into style statements.

On the face of it Ghajini is an oft-repeated tale of the hero seeking revenge on the killer of his lady love. What makes it different then? The plot contrivance of anterograde amnesia i.e. short term memory loss. Our hero Sanjay Singhania (Aamir Khan), after being violently hit on the head, can only recall incidents that have happened less than 15 minutes ago. This allows for some experimentation in story-telling, play with images and editing as the action moves back and forth in time. It also helps the director in developing new modes and strategies of bumping off the bad guy. So Sanjay uses various devices–Polaroid camera, tattoos on his body, elaborate maps and messages on the wall–to help him in remembering that he has a major goal to accomplish.

For much of this, filmmaker A.R. Murugadoss needs to sincerely thank Christopher Nolan’s Memento right down to the inscription on the hero’s chest “Find Him…Kill Him”. Where Murugadoss strikes a different note is in the elaborately played out comedy of errors love story wherein you have a fledgling model with a heart of gold, Kalpana (Asin), claiming to be the girlfriend of Sanjay who, of course, doesn’t even know what she looks like.

The other obvious departure from Memento is the song-n-dance. My friends from the South swear by the original soundtrack by Harris Jeyraj but my ears haven’t quite tuned in on the Tamil original yet. What works for me are two songs specifically, Guzarish and Behka. The songs have been shot in what we Northerners identify as quintessential Tamil idiom—as stylised set-pieces in kitschy colours. Two of these have been directed music video style by hotshot ad filmmaker Ravi Udayawar (remember his Dooba Dooba?)

Save the climax, the Hindi version follows the Tamil original, shot for shot, cut for cut, character for character, actor for actor. The villain is the same, and so are the heroine and the Inspector investigating Sanjay. Even the name of the mobile company that the hero works for –Airvoice — is not changed. The differences are minor. The hero is 1975 born in Hindi, 1976 in Tamil. He is Singhania in Hindi, Ramaswamy in Tamil. He keeps the Polaroid camera on the right side, not the left as in Tamil version. The nerves and brains opening credits are similar, so is the first killing with blood dripping from the tap (though in Hindi you hear the sound, and don’t see it graphically as you do in Tamil). Why, even some props stay—the fan cooling off Asin in the makeup room and isn’t she reading the same Mario Puzo in both the versions?

The remarkable difference is how the marketing genius of Aamir Khan has turned eight pack abs and buzzcut with scar into style statements. But beyond the gimmickry, this surely is Aamir’s most physical performance yet. His presence is like that of a tormented animal–full of grief and rage. However, it’s not Aamir beating the pulp out of the goons that works for me. He is still at his best when he uses his face and registers fleeting expressions thereon. The haunted and hunting look in his eyes stands out. My favourite is the scene in the bus when he looks lovingly at Asin and says those three words. It is never quite as romantic and heart-stopping a moment in the Tamil original. The other Aamir touch is using Sunil Grover who plays Ruk Ruk Khan in Kaun Banega Champu in one of the comic scenes. Now is that another jab at SRK? Go figure out for yourself.

Asin’s act does not change at all from the original, but her wardrobe does entirely.Her character Kalpana is the kind that reaches out to the crowds–nice, warm, effervescent and vulnerable, a woman after every man’s heart. Moreover she is pleasing to the eye and cries in a manner that the mascara in her eyes and makeup on the face does not get washed away. In one phrase, she is ‘eminently suitable’ to be the next heroine of consequence in Bollywood.

The weak links are the zero presence Jiah Khan as the medical student who helps Sanjay in his mission and Pradeep Rawat as the villain with a horrible wannabe Haryanvi accent. The second half becomes way too prolonged and the climax, which am told has been changed entirely (and which I could not see in the bad, scratched out DVD I had procured of the Tamil version), leaves one dissatisfied. The effort to tie up all the loose ends jars and the end is way too safe. An edgy, far more treacherous end would have been more in order.

Film Review: Ghajini

By M H Ahssan

Save the climax, the Hindi version follows the Tamil original. The remarkable difference is how the marketing genius of Aamir Khan has turned eight pack abs and buzzcut with scar into style statements.

On the face of it Ghajini is an oft-repeated tale of the hero seeking revenge on the killer of his lady love. What makes it different then? The plot contrivance of anterograde amnesia i.e. short term memory loss. Our hero Sanjay Singhania (Aamir Khan), after being violently hit on the head, can only recall incidents that have happened less than 15 minutes ago. This allows for some experimentation in story-telling, play with images and editing as the action moves back and forth in time. It also helps the director in developing new modes and strategies of bumping off the bad guy. So Sanjay uses various devices–Polaroid camera, tattoos on his body, elaborate maps and messages on the wall–to help him in remembering that he has a major goal to accomplish.

For much of this, filmmaker A.R. Murugadoss needs to sincerely thank Christopher Nolan’s Memento right down to the inscription on the hero’s chest “Find Him…Kill Him”. Where Murugadoss strikes a different note is in the elaborately played out comedy of errors love story wherein you have a fledgling model with a heart of gold, Kalpana (Asin), claiming to be the girlfriend of Sanjay who, of course, doesn’t even know what she looks like.

The other obvious departure from Memento is the song-n-dance. My friends from the South swear by the original soundtrack by Harris Jeyraj but my ears haven’t quite tuned in on the Tamil original yet. What works for me are two songs specifically, Guzarish and Behka. The songs have been shot in what we Northerners identify as quintessential Tamil idiom—as stylised set-pieces in kitschy colours. Two of these have been directed music video style by hotshot ad filmmaker Ravi Udayawar (remember his Dooba Dooba?)

Save the climax, the Hindi version follows the Tamil original, shot for shot, cut for cut, character for character, actor for actor. The villain is the same, and so are the heroine and the Inspector investigating Sanjay. Even the name of the mobile company that the hero works for –Airvoice — is not changed. The differences are minor. The hero is 1975 born in Hindi, 1976 in Tamil. He is Singhania in Hindi, Ramaswamy in Tamil. He keeps the Polaroid camera on the right side, not the left as in Tamil version. The nerves and brains opening credits are similar, so is the first killing with blood dripping from the tap (though in Hindi you hear the sound, and don’t see it graphically as you do in Tamil). Why, even some props stay—the fan cooling off Asin in the makeup room and isn’t she reading the same Mario Puzo in both the versions?

The remarkable difference is how the marketing genius of Aamir Khan has turned eight pack abs and buzzcut with scar into style statements. But beyond the gimmickry, this surely is Aamir’s most physical performance yet. His presence is like that of a tormented animal–full of grief and rage. However, it’s not Aamir beating the pulp out of the goons that works for me. He is still at his best when he uses his face and registers fleeting expressions thereon. The haunted and hunting look in his eyes stands out. My favourite is the scene in the bus when he looks lovingly at Asin and says those three words. It is never quite as romantic and heart-stopping a moment in the Tamil original. The other Aamir touch is using Sunil Grover who plays Ruk Ruk Khan in Kaun Banega Champu in one of the comic scenes. Now is that another jab at SRK? Go figure out for yourself.

Asin’s act does not change at all from the original, but her wardrobe does entirely.Her character Kalpana is the kind that reaches out to the crowds–nice, warm, effervescent and vulnerable, a woman after every man’s heart. Moreover she is pleasing to the eye and cries in a manner that the mascara in her eyes and makeup on the face does not get washed away. In one phrase, she is ‘eminently suitable’ to be the next heroine of consequence in Bollywood.

The weak links are the zero presence Jiah Khan as the medical student who helps Sanjay in his mission and Pradeep Rawat as the villain with a horrible wannabe Haryanvi accent. The second half becomes way too prolonged and the climax, which am told has been changed entirely (and which I could not see in the bad, scratched out DVD I had procured of the Tamil version), leaves one dissatisfied. The effort to tie up all the loose ends jars and the end is way too safe. An edgy, far more treacherous end would have been more in order.

Will Chiranjeevi do An Obama?

By Javid Hassan

A charismatic Tollywood star, winner of the Padma Bhushan award and holder of an honorary doctorate in philosophy, actor-turned politician Chiranjeevi had all the makings of a vote-swinger as he entered the political arena with the launch of Praja Rajyam Party (PRP) in August this year.

Yet, like the Congress-I, he is playing the “wait & watch” game, watching the political landscape of Telangana and waiting for the right moment to strike. In the meantime, he is mustering the support of the people across the socio-economic spectrum of the region by harping on the theme of social justice and underlining his commitment to “Santosha Andhra Pradesh” (“Happy Andhra Pradesh”).

These slogans raise question marks over the ultimate goal of the PRP. Is it for or against a separate Telangana? By refusing to commit himself one way or the other and, at the same time, aspiring for ‘ Santosha Andhra Pradesh,’

Chiranjeevi appears like a twinkling star making us wonder what you are.

He is, however, leaving nothing to chance as he straddles the political stage with all the panache of a seasoned leader. Thus, at one of the several padayatras that he undertook recently, the actor-turned politician kept newsmen guessing on his party’s stand on the Telangana issue.

At the road shows, too, Chirnajeevi did not chant Jai Telangana even when he was prompted to do so, while he called on his opponents to clarify their stand on the issue. This raises a question over PRP’s depth of commitment to the call for a separate Telangana. The Doubting Thomases also refer to the way he dodges questions on the issue.

The mega star believes that he has outsmarted his political opponents by announcing at his Jagitial road show that PRP would not pose any problem if the Centre granted statehood for Telangana. “In fact, the political parties have little role to play in this regard and it is for the Centre to announce the formation of separate Telangana,” he observed.

While remaining noncommittal on the Telangana issue, Chiranjeevi has sought to firm up his party’s base by speaking for “social justice” at public meetings.He said the need of the hour was “Telangana Samajika Nyayam”(Telangana with social justice) and not mere Telangana as a geo-political entity. Through such a rhetoric he is sending across a message to the vulnerable sections of society that the Telangana movement was being hijacked by some elements of the upper caste for their own vested interests.

In this context, a question is being asked: how seriously do the people of Telangana think that Chiranjeevi is wedded to their cause? The speculation is that things would sort out during the run-up to the elections due in April next year. The PRP leader would then be obliged to take a stand if he wants to gain political mileage out of the spade work that he has already done.

This includes the setting up of the Chiranjeevi Blood Bank in Jubilee Hills, which has raised his profile among the people. What boosted its popularity was that frequent donors had an opportunity to take a personal photograph with their hero. Critics point out that the blood bank has become more of a meeting point for PRP’s party workers and also for those who came from villages and towns with recommendations to get tickets for the forthcoming elections. As a result, the blood bank became overcrowded with fans and political supporters. This has created bad blood between the blood bank and the donors, causing the numbers to shrink.

Nevertheless, Chiru still remains hugely popular. As his party stalwart Naga Babu put it: “We will prove all other political pundits wrong by coming to power. PRP will win with complete majority in the next assembly elections.”

Chiranjeevi replaced NTR as the Telugu film industry’s reigning superstar, and changed it forever. Now that he has entered politics, he might become a political icon as well.

The Telugu Desam Party, which NTR founded in 1982 and with which he swept to power, has now announced support for the bifurcation of Andhra Pradesh which is, by the standards of political discussion of this sensitive subject, quite unambiguous. The TDP is obviously worried about the possibility that Chiranjeevi will cut into its base in coastal Andhra, while the communists, traditional allies of the TDP before Naidu allied with the NDA, have forged closer ties with the TRS recently. No wonder, TDP has jumped on the Telangana bandwagon as part of its defensive tactic.

The TDP was founded as the party that reflects Telugu pride. Its policies were populist to the core, but, by and large, it appealed to the emotional instinct of the people. However, when Chandra Babu Naidu donned the mantle of TDP leadership from NTR, Naidu replaced the party’s emotional beat with a reformist agenda. This is where Chiranjeevi outsmarted TDP by loading emotional content into his message and pulling the rug from under TDP.

Thus Chiranjeevi has become a force to reckon with in the political equations of Telangana politics. But whether he will win the incoming election on the strength of his own agenda is the key question. During the last Assembly and parliamentary elections, for instance, TRS had contested on a single point agenda—bringing statehood to the region. Most other political party leaders of the region had rubbished the idea at the time (except the Congress) mostly due to pressure from the party hierarchy which was sceptical of the whole idea. Congress eventually tied up with TRS promising the people a new state of Telangana. The rest, as they say, is history.

Chiranjeevi has so far avoided these political somersaults by keeping them guessing on his next move. Maybe, he wants to shine in his own light as a superstar and also on the strength of his own achievements that won him the honorific title of Padma Bhushan, the second highest Presidential Award in 2006. This led to an unprecedented international walkathon event in his honour organised by Pravasa Vaaradhis and the screening of a short film “Chiranjeevi: For Change!,” which included his first ever campaign song.

The movie, an indigenous NRI production, featured the “Chiru Song 2008″ composed, written and sung by prominent NRI Music Director SaiBorg, the son of a well-known folk singer. Whether Chiranjeevi will do an Obama in Telangana remains to be seen.

Will Chiranjeevi do An Obama?

By Javid Hassan

A charismatic Tollywood star, winner of the Padma Bhushan award and holder of an honorary doctorate in philosophy, actor-turned politician Chiranjeevi had all the makings of a vote-swinger as he entered the political arena with the launch of Praja Rajyam Party (PRP) in August this year.

Yet, like the Congress-I, he is playing the “wait & watch” game, watching the political landscape of Telangana and waiting for the right moment to strike. In the meantime, he is mustering the support of the people across the socio-economic spectrum of the region by harping on the theme of social justice and underlining his commitment to “Santosha Andhra Pradesh” (“Happy Andhra Pradesh”).

These slogans raise question marks over the ultimate goal of the PRP. Is it for or against a separate Telangana? By refusing to commit himself one way or the other and, at the same time, aspiring for ‘ Santosha Andhra Pradesh,’

Chiranjeevi appears like a twinkling star making us wonder what you are.

He is, however, leaving nothing to chance as he straddles the political stage with all the panache of a seasoned leader. Thus, at one of the several padayatras that he undertook recently, the actor-turned politician kept newsmen guessing on his party’s stand on the Telangana issue.

At the road shows, too, Chirnajeevi did not chant Jai Telangana even when he was prompted to do so, while he called on his opponents to clarify their stand on the issue. This raises a question over PRP’s depth of commitment to the call for a separate Telangana. The Doubting Thomases also refer to the way he dodges questions on the issue.

The mega star believes that he has outsmarted his political opponents by announcing at his Jagitial road show that PRP would not pose any problem if the Centre granted statehood for Telangana. “In fact, the political parties have little role to play in this regard and it is for the Centre to announce the formation of separate Telangana,” he observed.

While remaining noncommittal on the Telangana issue, Chiranjeevi has sought to firm up his party’s base by speaking for “social justice” at public meetings.He said the need of the hour was “Telangana Samajika Nyayam”(Telangana with social justice) and not mere Telangana as a geo-political entity. Through such a rhetoric he is sending across a message to the vulnerable sections of society that the Telangana movement was being hijacked by some elements of the upper caste for their own vested interests.

In this context, a question is being asked: how seriously do the people of Telangana think that Chiranjeevi is wedded to their cause? The speculation is that things would sort out during the run-up to the elections due in April next year. The PRP leader would then be obliged to take a stand if he wants to gain political mileage out of the spade work that he has already done.

This includes the setting up of the Chiranjeevi Blood Bank in Jubilee Hills, which has raised his profile among the people. What boosted its popularity was that frequent donors had an opportunity to take a personal photograph with their hero. Critics point out that the blood bank has become more of a meeting point for PRP’s party workers and also for those who came from villages and towns with recommendations to get tickets for the forthcoming elections. As a result, the blood bank became overcrowded with fans and political supporters. This has created bad blood between the blood bank and the donors, causing the numbers to shrink.

Nevertheless, Chiru still remains hugely popular. As his party stalwart Naga Babu put it: “We will prove all other political pundits wrong by coming to power. PRP will win with complete majority in the next assembly elections.”

Chiranjeevi replaced NTR as the Telugu film industry’s reigning superstar, and changed it forever. Now that he has entered politics, he might become a political icon as well.

The Telugu Desam Party, which NTR founded in 1982 and with which he swept to power, has now announced support for the bifurcation of Andhra Pradesh which is, by the standards of political discussion of this sensitive subject, quite unambiguous. The TDP is obviously worried about the possibility that Chiranjeevi will cut into its base in coastal Andhra, while the communists, traditional allies of the TDP before Naidu allied with the NDA, have forged closer ties with the TRS recently. No wonder, TDP has jumped on the Telangana bandwagon as part of its defensive tactic.

The TDP was founded as the party that reflects Telugu pride. Its policies were populist to the core, but, by and large, it appealed to the emotional instinct of the people. However, when Chandra Babu Naidu donned the mantle of TDP leadership from NTR, Naidu replaced the party’s emotional beat with a reformist agenda. This is where Chiranjeevi outsmarted TDP by loading emotional content into his message and pulling the rug from under TDP.

Thus Chiranjeevi has become a force to reckon with in the political equations of Telangana politics. But whether he will win the incoming election on the strength of his own agenda is the key question. During the last Assembly and parliamentary elections, for instance, TRS had contested on a single point agenda—bringing statehood to the region. Most other political party leaders of the region had rubbished the idea at the time (except the Congress) mostly due to pressure from the party hierarchy which was sceptical of the whole idea. Congress eventually tied up with TRS promising the people a new state of Telangana. The rest, as they say, is history.

Chiranjeevi has so far avoided these political somersaults by keeping them guessing on his next move. Maybe, he wants to shine in his own light as a superstar and also on the strength of his own achievements that won him the honorific title of Padma Bhushan, the second highest Presidential Award in 2006. This led to an unprecedented international walkathon event in his honour organised by Pravasa Vaaradhis and the screening of a short film “Chiranjeevi: For Change!,” which included his first ever campaign song.

The movie, an indigenous NRI production, featured the “Chiru Song 2008″ composed, written and sung by prominent NRI Music Director SaiBorg, the son of a well-known folk singer. Whether Chiranjeevi will do an Obama in Telangana remains to be seen.

HNN OPINION POLL SEES NAIDU SWEEPING AP AND NTP GETS MAJORITY IN TELANGANA

By M H Ahssan

The Telugu desam party (TDP) of N.Chandrababu Naidu and its allies are favored to bag a majority of the assembly seats in the upcoming elections, according to a statewide opinion poll conducted by Hyderabad New Network (HNN).

The poll, with a sample size of 19015 respondents from the 119 assembly seats in Telangana and 294 seats in entire state of Andhra Pradesh was conducted in the first three days of the December and a backup poll of 2018 respondents was undertaken on 15 and 16 December 2008.

According to HNN poll:
- The TDP and its allies to win 25 to 30 seats helped by a positive swing of regularly 12% in Telangana and 92-105 seats in state assembly.

- The compress may end up with a tally of 15-20 seats in Telangana and 85-105 seats in state assembly, after registering a negative swing of 18%.

- The BJP and its allies are likely to finish with 3-5 seats in Telangana and 7-12 seats in state assembly with negative swing of 27%.

- TDP Leader N Chandrababu Naidu most favored chief minister candidate scoring almost 52% on the popularity chat follows by 50% on the popularity chart. Follow by 50% favoritism for ruling congress chief minister YSR and 48% for newly emerged political icon Chiranjeevi, while Telangana Chief Ministerial most favored candidate is KCR followed by T Devender Goud With 72% and 68% respectively.

- Sonia campaign for the congress may not have much of an impact on the outcome. Nearly 60% of the respondents ruled out the possibility of the congress reaping a rich electoral harvest owing to the same Rahul or recent electoral success in Delhi or Rajasthan.

Most of the seats to the TDP may accrue from the north and the west of the state, where it is poised to sweep the polls. The TDP and its electoral allies seem to have finally broken the 30% vote from x thanks to primarily to Naidu’s efforts.

The poll reveals that 77% of the state votes have made up their mind on the party they want to support, leaving 23% in the ‘still confused’ or ‘not yet decide’ category.

A hefty by positive swing of about 14% votes makes the TDP the front runners with coastal districts and some parts of Telangana and Rayalaseema the Congress is in second place as of now, but the balance may tilt in favor of the Chiranjeevi PRP once the election announcement made.

A similar scenario emerges in the northern districts barring Hyderabad where MIM, MBT and other are well entranced and there are same resistance from the BJP & left parties.

In southern Andhra, three cornered contracts will be seen in many constituencies. Though the TDP after well placed here too, the shift of voters from the congress towards the PRP hence may there up a surprise or two.

Stability, terrorism , social justice and corruption are likely to be the cornerstone of electoral issues with almost three fourths of respondents sensitive to these issuing, she much drummed ‘secularism’ factor may fall by the wayside, with a majority saying ‘no’ to the anti secular tag associated work BJP.

The millions dollar question will Sonia’s entry result in victory for the congress-the answer at the movement seems to be a big ‘no’ with almost 60% of the respondent ruling out any impact of her presences in the electoral arena.

Major Debatable Issues:

• Telugu actor Balakrishna’s political entry in TDP
• NTR family involvement in TDP
• Film personalities impact
• KCR political stunts and gimmicks
• MIM undemocratic behavior and anti-muslim agendas
• BJP – hindu terrorism
• PRP – family rule policy

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Zero Sum Proposal

The reduction in home loan rate will not boost realty sector as there are no houses available in large cities for less than Rs 30 lakh, while the cap for this lower interest rate is for loans up to Rs 20 lakh, says Prabhakar Sinha

The scheme of government to make available lower home loan rate to end-users remain a nonstarter. It will not help in reviving the sector, which is facing the worst downturn in the last 10 years, because of high interest rates.The small-ticket size of the loan that qualifies for the proposed low interest rate is the reason that will sink the proposed scheme.

Under the proposed scheme, government has asked banks to prepare a package to make home loan up to Rs 20 lakh available in the range of 7-8 per cent. According to banking sources, the banks are planning to offer home loan up to Rs 5 lakh at around 7 per cent and that of between Rs 5 lakh and Rs 20 lakh at around 8%. The present interest rate on home loan offered by public sector banks is around 10%.

But, the scheme is unlikely to benefit homebuyers in most cities in the country.This is mainly because there are hardly any apartments or houses available for up to Rs 25 lakh.Most of the properties available in the cities of National Capital Region, Mumbai, Chennai, Pune, Bangalore, Kolkata and Hyderabad are in the range of Rs 40 lakh to Rs 50 lakh.

Managing director of Unitech, Sanjay Chandra, said instead to fixing the cap at Rs 20 lakh across the country, the government should have fixed a different ceiling for different cities.He says a Rs 20-lakh-loan would be sufficient for small district towns,where land is not very costly.But in cities like National Capital Region of Delhi, land price is so high that even a 1,000 sq ft, 2-bedroom apartment cannot be sold at less that Rs 30 lakh in far flung areas. A threebedroom apartment in these areas will cost around Rs 35 lakh.

Thus, if one wants to take the benefit of low interest rate package of the government to buy a house, he will have to pay an upfront amount of Rs 10 lakh to 15 lakh from his own pocket. But, it has been found that most of the salaried people buying a house are unable to contribute more than 15 per cent of the total amount from their savings. That means, one can benefit from the government’s new package only if one were to buy a house costing around Rs 25 lakh. Even for this,one will have to dip into savings to make a Rs 5-lakh-payment upfront,and borrow the remaining Rs 20 lakh at special interest rates offered by the public sector banks.

It is learnt that a delegation of developers from NCR met government official recently to convince government to increase the ceiling of loan to qualify under the concessional rate of interest up to 8 per cent from the present Rs 20 lakh to Rs 40 lakh. They argued that this would help drive the demand in the sector.

Assotech CMD Sanjiv Srivastava said government is of the firm opinion that most of the loan seekers will be covered under the scheme. Finance secretary Arun Ramanathan has said that around 75 per cent of the loan is of less than Rs 7.5 lakh.

However, consultants say that most of these loans were taken before 2003, when the market was subdued. Besides, these loans were taken to buy houses in the small towns. In most of the large cities, prices of apartment and independent houses in the authorized areas are more than Rs 30 lakh. Srivastava says that if government increases the ticket size to Rs 40 lakh, the present scheme will help revive the sector. It will go a long way in arresting the slowdown in the economy.That fall in the interest rate from the present 10 per cent to 8 per cent and 7 per cent will go a long way in making the purchase of house affordable.

The fall in the interest rate by 3 percentage points on home loan up to Rs 5 lakh for 20 years will lead to reduction in EMI by 20 per cent from Rs 4,825 to Rs 3,876. However, on 10-year loan, the fall in EMI of Rs 5 lakh loan will be 12 per cent from Rs 6,608 to Rs 5,805.

But, if the loan amount goes up to Rs 20 lakh, the fall in the interest rate on 20-year loan by 2 percentage points will lead to reduction in the EMI by 13 percentage points from Rs 19,300 to Rs 16,729. In case of the repayment period of 10-year, the EMI will fall by 8 percentage points to Rs 24,265 from Rs 26,430.

In the case of Rs 40 lakh for 20 years loan also, the fall in the interest rate by 2 percentage points from 10 per cent to 8 per cent will lead to decline in the EMI by 13 per cent to Rs 33,458 from Rs 38,600. But, if loan tenure is reduced to 10 years, the EMI will fall by 8 per cent to Rs 48,531 from Rs 52,860.Therefore,the fall in the interest rates leads to fall in the EMI substantially, which will help drive the demand in the sector. This will increase the fund flow of in the sector, leading to rise in economic activities also.

Home Loan Interest: Still a Distantdream

The present reduction in the home loan interest rates is not enough to boost sales as it has to be matched with a correction in prices and rational pricing, says Shri Ram Shaw

The financial world may be facing uncertain times, much speculation could be going on over the rise and fall of real estate prices, but one fact cannot be ignored – land and property continue to be hot investment favourites.With banks decreasing their interest rates marginally on home loans and the real estate developers yet to oblige the appeals made by the former finance minister P Chidambaram (now home minister),NAREDCO and CREDAI to cut prices, a stalemate seems inevitable. Under the current scenario, consumers (home seekers) are in a fix.Several realty experts opine that the present reduction in the home loan interest rates is not enough to boost sales. It has to be matched with a correction in prices and rational pricing.

The move by the finance ministry and the Reserve Bank of India (RBI) to beat the slowdown and boost demand in real estate sector does not seem have borne any fruit, thus far.

The much-hyped cut in interest rate in home loan has not created any loan rush – for one single reason – it was inadequate. “It’s too less. Buying a house is still not affordable. Like inflation, rate of interest also should be brought down to the single digit level,” says Sunit Haldar, a resident of Mayur Vihar who is looking for a flat to accommodate his growing family.

The home-seeker takes a decision of buying a house, usually once in a lifetime. He thinks a hundred times before committing to a long-term liability of loan repayment, before approaching the bank, or negotiating with the developer. He knows his math better than anyone else. For him the real push to go for the flat would be if it were within his affordable bracket. But, in the case of recent rate cut, the reduction was lacklustre.

For example, the EMI for the loan amount of Rs 20 lakh for a 15-year-tenure at the earlier rate of interest of say 13.5% was around Rs 26,000. If the rate of interest is reduced by only 0.75% to the level of 12.75%, then the effective EMI would be around Rs 25,000. The recent reduction in rate of interest by 0.75% would reduce the monthly burden only by Rs 1,000. Now consider the same case from a different angle. If EMI is Rs 26,000, the monthly income of this person would have to be a t least Rs 60,000 to Rs 70,000. Will reduction of Rs 1,000 matter to this person? Will he be rushing to raise a loan to save just Rs 1,000?

Thus, one could not see a rush at the home loan counters as a result of banks lowering the interest rates. “High interest rates are choking the demand” turned out to be a weak argument as lower rates did not trigger any demand from the home seekers. RBI could pump in the liquidity but the affordability couldn’t be increased. Initiatives fell flat in pushing the home seekers to the site as they are still sitting on the fence, with no home, worth the value, in sight.

As far as developers are concerned, they have relented to the appeals of Chidambaram. National Real Estate Development Council (NAREDCO) and Confederation of Real Estate Developers Association of India (CREDAI) have asked their member developers to cut the prices in the range of 5% to 10%.

Rohtas Goel, chairman of NAREDCO, says that price cuts will help escalate real estate demand and reduce the burden on customers. According to Kumar Gera, chairman, CREDAI: “ We are advising the members across the country to make every effort in lowering prices to the levels possible.This will have a desirable impact and cascading effect on employment in the industry, as well as on more than 170 other industries. It will also have a telling impact on the economy and country as a whole.”

Addressing corporate heads and business leaders at the India Economic Summit in Delhi (organized by the World Economic Forum and the Confederation of Indian Industries), P Chidambaram said: “ Hotels must cut tariffs, airlines must cut prices, real estate must cut rates of apartments and homes they sell, car makers and two wheeler makers must cut prices.”

But the real estate developers have their own view. They say this won’t work until lending rates are also slashed. Whatever correction was to happen has already taken place. Today there is no cushion or margin for developers to further reduce prices.

“We have already cut prices, which has brought our margin down to 15% from 30% last year.If we cut prices further,our margin will get wiped out,” said Emaar MGF, MD, Shravan Gupta.

“Prices are a function of demand and supply. Today supply is far ahead of demand,” says DLF chairman K P Singh. A Unitech spokesperson said price cut was a “good idea”. The group has launched a number of affordable housing projects in NCR. Parsvnath Developers’ chairman Pradeep Jain says price cut is unlikely even though builders may focus on smaller size homes to bring down overall cost.

Quality Matters in Reality

Developers have realised that ensuring quality is the best means to boost sales, says Deepika Mital

Recession or no recession, home buyers today have become increasingly quality conscious and are ready to scout around endlessly till they find the projects which measure up to their expectations. Every consumer today is extremely aware that what goes into the construction in terms of materials and processes will reflect in the finish and longevity of the product. Mumbai’s developers are doing their bit to differentiate and improve their product as they realise that ensuring quality is the best selling proposition and any compromise on this count is fool-hardy.

Architect Bobby Mukherjee says, “Wherever I have taken a stand and enforced quality in design and construction, such projects have reaped big rewards.” He goes on to recount, “We did a project for a big developer in Thane, which became the most sought after complex in the area, it had really good design and quality club facilities, lighting, landscaping. When these are provided it is greatly appreciated by the end user and it helps in selling the product much faster. It was priced over the market rate by a few thousands, but still went on to sell very fast. Better pricing in the end product can be achieved thanks to better R&D and better sourcing of materials of better quality from across the world. This matters even more when it is a medium range of project, in terms of lighting fixtures, and other materials used in a planned manner which can achieve cost efficiencies.”

Mayur Shah of Akruti City says, “The ISO certification basically indicates that whatever we promise, we deliver. Quality checks are conducted at all our sites. R&D is conducted at the head office, but in terms of cost – bringing down the construction costs without compromising on quality. We test different materials to check if the price points can be reduced by using cheaper materials, thus reducing overall costs. We don’t have too much of choice in terms of the materials – those are the same for everybody. Quality also lies in the simple things like a perfect slab, good drainage slopes – after all the building cannot be re done at any point after it is made. We also have our own institute where we send our engineers and workers for regular updation for two or three-day programmes.

Explains Bobby Mukherjee, the stress should be laid at the planning stage itself when all the specialised consultants like the architect, interior designer, landscape architect and lighting and service consultant should work together. Only if they are brought on board at an early stage can one realise international standards of design. It is the mind set and knowledge of the subject that is very important to fulfil the quality criteria and achieving good sales. The savings via this can translate into a better sale price, especially in this market. For instance, in the project Kalpataru Horizon, the professionalism with which the project was executed to the last detail helped in getting it very good prices and making it the most sought after address in South Mumbai.

In ordinary middle income projects one needs to focus on the quality of the compound wall, flooring, paving of the driveway with tiles rather than cement and concrete, lighting, greenery, a sophisticated entrance lobby, good elevators, doors, bathroom fittings. Cheap fittings are counter productive. It is better to reduce specifications rather than to compromise on quality.

Speaking to Kaizad Hateria, GM, sales, marketing and customer relations of Keystone Group is an eye opener. He says, “We have a system of conducting spot checks through our mobile vans which can be seen at one or other of our construction sites. We employ 12 to 14 ‘concrete boys’ on each site, whose only job is to check the quality of the concrete, which is vital to the construction. We also have a quality manual for customers, which explains the 300+ quality checks that our projects undergo. Internally to keep up with trends and best practices, our managers, architects and engineers are updated through exposure to foreign exhibitions, manuals and seminars. Our monthly review meetings are specifically meant to address any lapses that might occur at the initial stages as this business is an ongoing process.”

Surendra Hiranandani, MD, Hiranandani Constructions says, “Quality assurance is fundamental to our business. We were the first to introduce voluntary quality checks and better materials. We introduced the concept of copper plumbing in 1992, much before it was required. We also introduced recycling of water in the late 80’s and the use of fly ash and high performance concrete in residential and commercial buildings, much before the BIS laid it down in 2000.

“More than 50% of the management’s time and effort is directed toward training and R&D, it has always been a focus area for Hiranandani Group.”

Answering queries on whether this pushes up the costs for the end user, he says, “Cost is always an issue, we would like to balance out the costs and call it value for money. Lifecycle costs and a low maintenance regime balance out this whole expenditure, which is a definite advantage to the end user. We have always focused on design, materials, planning and construction – all the crucial stages in the sector.”

Having worked on projects across the country, architect Bobby Mukherjee says, “Quality in Mumbai is given a special emphasis and effort. Interestingly, second and third generation developers are more quality conscious than those who are first generation – this also I have experienced across the country. R & D mainly needs to be done to improve the quality of the product, be it commercial, retail, residential or hospitality. Good product, good quality design, once both these parameters are satisfied you have the recipe for success. Whether it is Thane or the heart of Mumbai city, these will be the hottest properties.”

Housing Industry – Just the Beginning

While the government’s stimulus package for the housing industry is welcome, more initiatives are required, says Archana Sinha

Home buyers have something to smile about as middle-income groups looking for smaller homes can now buy without burning a hole in their pockets. All public sector banks will now offer loans at 8.5 to 9.5 per cent for homes costing between Rs 5 lakh to Rs 20 lakh. According to the banks this will help mobilise the housing industry, as nearly 80 per cent of their portfolio consists of this segment.

Nayan Shah, managing director, Mayfair, who has many projects in Virar, Nala Sopara and areas around, says, ” Home loans have come back to 2007 rates and will give a big fillip to buyers in the middle class segments. Our project at Virar, Mayfair Virar Garden, with two bedroom flats between Rs 14 to 19 lakh in a well laid out township, good roads, good supply of water and connectivity to the station, will see more enthusiastic enquiries from buyers who were holding back.”

Anil Mittal, director, Mittal Builders, too has expressed happiness saying, “We have a low-cost housing project called Mittal Enclave at Naigaon east where we
are selling 450-500 sq.ft. for Rs. 2000-2100 per sq ft. With home loans being slashed, we expect more customers to turn up. Private banks should also reduce rates for the momentum to continue.”

While industry experts have hailed this as a positive step they also feel that more is required to be done.

Says Sanjay Verma, executive managing director, South Asia and Australia, Cushman and Wakefield, “The decision to rationalise home loan rates for the priority sector by public sector banks is a positive move and will trigger demand. The concern of lack of credit for developers remains despite the announcement and till the time a feasible solution is found, it may cause inflationary pressure if we end up with a demand-supply mis-match.”

Harsh Roongta, chairman, Apna Loan also echoes similar sentiments when he says, “This will boost the housing segment more towards the outskirts, but not in the city or even in the western suburbs, where land prices are high and developers have built at exorbitant prices. Of course in tier 2 and tier 3 cities this will give a small fillip. One needs to remember that in the bigger cities there is no supply in this category, so there is no scope to buy.”

Renu Sud Karnad, joint managing director, HDFC Ltd, feels that while interest rates are important, “Higher interest rate is not a big determinant in the buying decision of the end user because housing is a real need and during a tenure of 15- 20 years the interest rates will continue to vary as per market conditions. Interest rates although very important, only affects his affordability that is, his capacity to borrow in terms of the absolute loan amount. So cutting of rates will help. But for the end user the price of the property matters more as once he decides to buy at a particular price, the price stays forever. He is not going to sell if tomorrow the prices rise as his need for a roof is not going disappear.”

Most feel that in metros where the capital values are high, this move will only help recently announced affordable housing projects or development for the economically weaker sections.

Kumar Gera, chairman, Confederation of Real Estate Developers Association of India, says, “Flats costing between Rs 5- 20 lakh would be available way beyond municipal limits and commuting hassles and resultant costs would mean people will be hesitant .”

He adds, “I think the government has made moves to stimulate the market, but it should have spread it across segments. For example, for metro cities they should have come out with schemes for homes up to Rs 40 lakh, which would have really seen activity even among buyers from the corporate sector, especially now when
some builders are also softening their prices to some extent. This would have enthused the entire industry, across segments, seeing more production and consumption of cement, steel, paint and other collaterals, in turn generating employment and boosting the economy.”

The other deterrent is the deadline of June 30, 2009. Asks Roongta, “Is this meant to rush the buyer? He feels the buyer will also want to factor in other considerations, like quality of construction and other amenities. “Moreover it also creates a suspicion, whether the loans will go up later, whether the government’s intention is right,” he says.

On the other hand, it is not realistic for developers either, says Gera. “Even if they redesign their new projects they cannot complete them before 18 months. That much time will be required for land acquisition, clearance and finishing one phase of construction,” he adds.

What is required of the government is to increase liquidity, to lend to banks at lower rates so that there is money in the market, feel experts. The government also has to make land available at lower price.

Kumar Gera says, “This is a welcome move, but a very meek step. Bolder steps are required. There is a reserve of more than 250 billion dollars of foreign exchange. If one compares our spending with Japan and China, where they are operating under similar economic condition, ours is just a speck. Being too cautious will not help.”

Says Abhinandan Lodha, of Lodha group, “More incentives are of course required from the government but developers should bear in mind that buyers are sensitive to pricing and have to launch their projects accordingly. Housing from Rs 35-45 lakh should be available in good locations.”

WIDER OPTION IN REALITY

Developers are looking to aggressively market housing projects for the mid-income group, where the demand is huge, says Padma Ramakrishnan

The Indian real estate sector is going through interesting times, with developers increasingly looking at projects for mid and low income housing segments as well as value for money projects, catering to those who can afford slightly more.

Housing, say experts, should be viewed as any other industry where options have to exist at all possible price points. Currently, there is a dearth of housing options at the lower end of the spectrum and this situation should change. Affordable housing projects have become the high focus area as builders have realised that therein lies the largest market, with the fastest absorption rates.

The Reserve Bank of India’s recent rate cuts, which are expected to make home loans easier and cheaper are aimed at easing the interest burden in the Rs. 20 lakh category of housing loans and is expected to give a boost to the affordable housing market.

Reputed builders who concentrated largely on mid-toupper end homes are now launching budget home schemes in the western suburbs beyond Borivali,in central areas like Thane and Kalyan and in the nodes of Navi Mumbai. While such projects are not coming up in prime locations, many of these are being developed within a radius of five to six kms from the nearest suburban station like Thane,Vasai-Virar, Kalyan,Panvel,and Kalamboli.Developers like Rustomjee Group,Lodha Group, Akruti City, Neptune Group, Acme Group, Nirmal Lifestyle, Puranik, Prajapati Constructions, Godrej Properties are actively launching projects catering to the affordable segment.

Affordable housing, says architect Ramakrishnan Iyer, can be categorised into various segments where affordable can be purely in the sense of absolute terms, and the cost criteria comes into play. There could also be projects above Rs 30 lakh, affordable in term of value for money which incorporate features like green building criteria. These factors are cost saving in the long run and would strive to bring down maintenance costs and transport costs. The Lodha Group’s Casa Univis project launched this week at Ghodbunder Road,Thane, seeks to target the midincome professional. Spanning across a sprawling 55 acres of land, the project, under the new Casa sub-brand, will feature 26 towers of 18-27 storeys; offering multiple residential configurations – 2 BHK, 3 BHK Optima, 3 BHK Ultima and 3 BHK Luxe apartments. The apartments will have fully air-conditioned residences, video door phones, and even walk-in wardrobes, in a project that will have several amenities including a school and clubhouse, at a value-for-money price. At an invitation price of Rs 2997, a luxurious air-conditioned 2BHK residence would work out to just Rs 30 lakh.

According to Abhisheck Lodha, director, Lodha Group, with the Casa subbrand,the Group looks forward to making available valuable and premium quality lifestyle residential offerings. “We believe there is a substantial market of opportunities and the key is to offer differentiated products and patterns,” he adds.

Players like Rustomjee Group are planning 5,000 homes in the next two or three years, all in the affordable segment. Boman Irani, director, Rustomjee Group, says there is a huge need for affordable housing and no recession can halt a person who is providing what the market wants.

According to property consultants, Jones LangLaSalle Meghraj, the government should release land held by its various agencies for development which would help ease the rates on what is currently available. It should also offer to put in place baseline infrastructure to increase accessibility to underdeveloped and neglected areas to make them attractive.

Experts also point out that it is important to tie up funding with banking institutions before marketing low income projects.

Urban planner R K Jha explains that while constructing in peripheral areas, it is important to ensure that there is good transport system to the nearest station, and other essential facilities. If this does not happen simultaneously along with real estate development, both customers and developers will lose interest.The momentum has to be kept alive through better facilities in these locations.

WIDER OPTION IN REALITY

Developers are looking to aggressively market housing projects for the mid-income group, where the demand is huge, says Padma Ramakrishnan

The Indian real estate sector is going through interesting times, with developers increasingly looking at projects for mid and low income housing segments as well as value for money projects, catering to those who can afford slightly more.

Housing, say experts, should be viewed as any other industry where options have to exist at all possible price points. Currently, there is a dearth of housing options at the lower end of the spectrum and this situation should change. Affordable housing projects have become the high focus area as builders have realised that therein lies the largest market, with the fastest absorption rates.

The Reserve Bank of India’s recent rate cuts, which are expected to make home loans easier and cheaper are aimed at easing the interest burden in the Rs. 20 lakh category of housing loans and is expected to give a boost to the affordable housing market.

Reputed builders who concentrated largely on mid-toupper end homes are now launching budget home schemes in the western suburbs beyond Borivali,in central areas like Thane and Kalyan and in the nodes of Navi Mumbai. While such projects are not coming up in prime locations, many of these are being developed within a radius of five to six kms from the nearest suburban station like Thane,Vasai-Virar, Kalyan,Panvel,and Kalamboli.Developers like Rustomjee Group,Lodha Group, Akruti City, Neptune Group, Acme Group, Nirmal Lifestyle, Puranik, Prajapati Constructions, Godrej Properties are actively launching projects catering to the affordable segment.

Affordable housing, says architect Ramakrishnan Iyer, can be categorised into various segments where affordable can be purely in the sense of absolute terms, and the cost criteria comes into play. There could also be projects above Rs 30 lakh, affordable in term of value for money which incorporate features like green building criteria. These factors are cost saving in the long run and would strive to bring down maintenance costs and transport costs. The Lodha Group’s Casa Univis project launched this week at Ghodbunder Road,Thane, seeks to target the midincome professional. Spanning across a sprawling 55 acres of land, the project, under the new Casa sub-brand, will feature 26 towers of 18-27 storeys; offering multiple residential configurations – 2 BHK, 3 BHK Optima, 3 BHK Ultima and 3 BHK Luxe apartments. The apartments will have fully air-conditioned residences, video door phones, and even walk-in wardrobes, in a project that will have several amenities including a school and clubhouse, at a value-for-money price. At an invitation price of Rs 2997, a luxurious air-conditioned 2BHK residence would work out to just Rs 30 lakh.

According to Abhisheck Lodha, director, Lodha Group, with the Casa subbrand,the Group looks forward to making available valuable and premium quality lifestyle residential offerings. “We believe there is a substantial market of opportunities and the key is to offer differentiated products and patterns,” he adds.

Players like Rustomjee Group are planning 5,000 homes in the next two or three years, all in the affordable segment. Boman Irani, director, Rustomjee Group, says there is a huge need for affordable housing and no recession can halt a person who is providing what the market wants.

According to property consultants, Jones LangLaSalle Meghraj, the government should release land held by its various agencies for development which would help ease the rates on what is currently available. It should also offer to put in place baseline infrastructure to increase accessibility to underdeveloped and neglected areas to make them attractive.

Experts also point out that it is important to tie up funding with banking institutions before marketing low income projects.

Urban planner R K Jha explains that while constructing in peripheral areas, it is important to ensure that there is good transport system to the nearest station, and other essential facilities. If this does not happen simultaneously along with real estate development, both customers and developers will lose interest.The momentum has to be kept alive through better facilities in these locations.