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Saturday, July 23, 2011
People Power
By Dhirendra Kumar | Jul 22, 2011
There’s a big difference between a physical moat and an economic one. It’s easy to build a physical moat. Pretty much every fort has one. All you need to do is spend money, which fort builders of the past seem to have had in plenty. The deepest moat in India is said to have been at Vellore fort in Tamil Nadu, which was more than a 100 feet deep and 8,000 feet in circumference.
Building an economic moat is not so simple. This is clear from the very small number of companies that have managed to build one. Although we don’t claim to have a comprehensive list, one thing is certain. The number of companies that have a meaningful economic moat is far, far smaller than the ones that don’t. Why is this? If moats are such wonderful things (and we’ve got 80 pages in this issue showing that they are), then why doesn’t everyone go out and get one?
Because it isn’t as easy as just asking some people to build one. Most of the moats that we have written about took a long time to build. Moreover, they took a great focus on making a good product and serving customers. It also took a long and sustained period when these companies consistently made the right decisions and executed well. And the decisions were the right ones not just for the next quarter or the next year, they were the right ones for the long-term.
It’s about quality of people
In my opinion, it eventually boils down to people. The single most important factor in any such success story is the quality of the people who were running the business, and the quality of the people they in turn were able to hire, retain and inspire. Eventually, moats are a shorthand for good management. That also explains the question, why only these companies? Why weren’t their competitors able to do the same?
It also took one factor that business publications don’t normally like to talk about, and that’s luck. Look at a company like Asian Paints or Exide or Castrol. They fit the bill in every other way. Still, it seems incomprehensible that in all the years that they have dominated their market, no one else has managed to do a reasonable job of competing in mundane product categories like paints, batteries and lubricants. These are not complete commodities, but it shouldn’t have been rocket science for someone or the other to compete hard. Not all moats in this issue are of this category. Some are incidental, like NMDC’s or CRISIL’s. But that doesn’t mean that investors can’t take advantage of them.
However, when you take the people factor into account, it begins to make sense. Good managements are rare. Good managements that don’t have other good managements competing against them are rarer still. After a point, a moat can become self-perpetuating. Others can cross it in theory, but in practice it’s too much trouble and the returns too uncertain.
The moat at Vellore fort is said to have had 10,000 crocodiles in it, ready to make a meal of invaders who tried to cross. Perhaps we should also have given a ‘crocodile rating’ to the moats that we have written about. However, in this fifth anniversary issue of Wealth Insight, we have just tried to identify companies with deep moats and not really bothered about the crocodiles in those moats. Perhaps we’ll talk about crocodiles in some future issue.
source;Value research
By Dhirendra Kumar | Jul 22, 2011
There’s a big difference between a physical moat and an economic one. It’s easy to build a physical moat. Pretty much every fort has one. All you need to do is spend money, which fort builders of the past seem to have had in plenty. The deepest moat in India is said to have been at Vellore fort in Tamil Nadu, which was more than a 100 feet deep and 8,000 feet in circumference.
Building an economic moat is not so simple. This is clear from the very small number of companies that have managed to build one. Although we don’t claim to have a comprehensive list, one thing is certain. The number of companies that have a meaningful economic moat is far, far smaller than the ones that don’t. Why is this? If moats are such wonderful things (and we’ve got 80 pages in this issue showing that they are), then why doesn’t everyone go out and get one?
Because it isn’t as easy as just asking some people to build one. Most of the moats that we have written about took a long time to build. Moreover, they took a great focus on making a good product and serving customers. It also took a long and sustained period when these companies consistently made the right decisions and executed well. And the decisions were the right ones not just for the next quarter or the next year, they were the right ones for the long-term.
It’s about quality of people
In my opinion, it eventually boils down to people. The single most important factor in any such success story is the quality of the people who were running the business, and the quality of the people they in turn were able to hire, retain and inspire. Eventually, moats are a shorthand for good management. That also explains the question, why only these companies? Why weren’t their competitors able to do the same?
It also took one factor that business publications don’t normally like to talk about, and that’s luck. Look at a company like Asian Paints or Exide or Castrol. They fit the bill in every other way. Still, it seems incomprehensible that in all the years that they have dominated their market, no one else has managed to do a reasonable job of competing in mundane product categories like paints, batteries and lubricants. These are not complete commodities, but it shouldn’t have been rocket science for someone or the other to compete hard. Not all moats in this issue are of this category. Some are incidental, like NMDC’s or CRISIL’s. But that doesn’t mean that investors can’t take advantage of them.
However, when you take the people factor into account, it begins to make sense. Good managements are rare. Good managements that don’t have other good managements competing against them are rarer still. After a point, a moat can become self-perpetuating. Others can cross it in theory, but in practice it’s too much trouble and the returns too uncertain.
The moat at Vellore fort is said to have had 10,000 crocodiles in it, ready to make a meal of invaders who tried to cross. Perhaps we should also have given a ‘crocodile rating’ to the moats that we have written about. However, in this fifth anniversary issue of Wealth Insight, we have just tried to identify companies with deep moats and not really bothered about the crocodiles in those moats. Perhaps we’ll talk about crocodiles in some future issue.
source;Value research
Asian Development Bank announces $200 million loan to build
North East roads
India seeks $2.5 billion World Bank aid for power projects
India inks $ 432 million loan agreements with ADB
Mamata in power, ADB willing to fund projects in West Bengal
Rs 1,354 crore project for northeast roads approved
Asian Development Bank lent $17.51 billion in 2010
NEW DELHI: Multilateral funding agency Asian Development Bank on Friday announced a $200 million loan to reconstruct roads in north-eastern region of the country to open up growth and development opportunities.
The funds, to be released in two tranches under the North Eastern State Roads Investment Programme , will upgrade over 400 km of roads in the north-eastern states of Assam, Manipur, Meghalaya, Mizoram, Sikkim and Tripura.
The improvement work will include widening existing roads, strengthening pavements, raising embankments, and providing permanent structures at river crossings, ADB said in a statement.
More than 30 per cent of the population in these states lives below the poverty line, Hideaki Iwasaki of ADB's South Asia Department said.
"By upgrading these roads, we will be able to improve mobility and accessibility for many communities that will help provide new economic opportunities, boost growth and reduce poverty," Iwasaki added.
Better roads in the region are bound to significantly improve the investment climate for the private sector.
Moreover, an associated technical assistance grant of $1.2 million from the Japan Fund for Poverty Reduction, administered by ADB, will be provided to introduce modern road management practices.
The first tranche loan of close to $75 million will be used to fund improvements in over 200 km of roads in three states.
Besides, the Centre and state governments will provide counterpart finance of $98.2 million for a total programme investment cost of $298.2 million.
The Ministry of Development of N-E region along with the six state governments will carry out the programme which is due for completion by 2016.
North East roads
India seeks $2.5 billion World Bank aid for power projects
India inks $ 432 million loan agreements with ADB
Mamata in power, ADB willing to fund projects in West Bengal
Rs 1,354 crore project for northeast roads approved
Asian Development Bank lent $17.51 billion in 2010
NEW DELHI: Multilateral funding agency Asian Development Bank on Friday announced a $200 million loan to reconstruct roads in north-eastern region of the country to open up growth and development opportunities.
The funds, to be released in two tranches under the North Eastern State Roads Investment Programme , will upgrade over 400 km of roads in the north-eastern states of Assam, Manipur, Meghalaya, Mizoram, Sikkim and Tripura.
The improvement work will include widening existing roads, strengthening pavements, raising embankments, and providing permanent structures at river crossings, ADB said in a statement.
More than 30 per cent of the population in these states lives below the poverty line, Hideaki Iwasaki of ADB's South Asia Department said.
"By upgrading these roads, we will be able to improve mobility and accessibility for many communities that will help provide new economic opportunities, boost growth and reduce poverty," Iwasaki added.
Better roads in the region are bound to significantly improve the investment climate for the private sector.
Moreover, an associated technical assistance grant of $1.2 million from the Japan Fund for Poverty Reduction, administered by ADB, will be provided to introduce modern road management practices.
The first tranche loan of close to $75 million will be used to fund improvements in over 200 km of roads in three states.
Besides, the Centre and state governments will provide counterpart finance of $98.2 million for a total programme investment cost of $298.2 million.
The Ministry of Development of N-E region along with the six state governments will carry out the programme which is due for completion by 2016.
Friday, July 22, 2011
Gati Group’s Hydel Power Arm Raises Rs 30Cr From IFCI Venture
BY SHRIJA AGRAWAL
The investment has been made through equity and optionally convertible debentures (OCDs) by Green India Venture Fund, a Rs 220 crore renewable and clean energy fund floated by IFCI Venture Capital.
Amrit Jal is implementing three hydel projects in Sikkim, with combined output of 235 MW. The holding company is executing the three projects through separate special purpose vehicles (SPVs) and the fund raised will be ploughed into these projects at various stages of implementation. These include the 110 MW project at Chuzachen, Rongli, 71 MW Sada Mandger project at Ravangla and 54 MW Bhasmey project at Rangpo in Sikkim.
“This round of capital infusion has been raised mainly for its project at Chuzachen, which promises an expected IRR upwards of 20 per cent,” Arindam Roy from IFCI VC told VCCircle. With this investment, the funds under management by Green India Venture Fund have been completely deployed, added Roy.
Earlier, Singapore-based River Valley Ventures had picked up stake in Gati Infrastructure Ltd, the SPV implementing 110 MW Chuzachen Hydel Project, which is now nearing commissioning. Other investors/bankers in the project include IDFC, KSK Ventures and also IFCI Ltd, the parent company of IFCI Venture Capital Funds Ltd.
Gati promoters, led by Mahendra K. Agarwal, hold majority stake in Amrit Jal Venture Ltd which, in turn, has holdings in Gati Infrastructure, Gati Infrastructure Bhasmey Power and Gati Sada Mandger Power. Gati promoters’ holding in Amrit Jal is routed through multiple vehicles including the group’s listed arm TCI Finance, which has around 38 per cent stake in the power assets.
The promoters have earlier announced their intention to rope in a strategic or financial partner for their shipping business, which will be in a hived-off entity.
In the backdrop of a growing economy, India’s energy demands are expected to outpace its supply. And non-conventional energy is expected to play a big role in filling that demand-supply gap. Not surprisingly, this segment has captured the interest of the investing class.
Investors’ interest in the hydel power space has been particularly rising and companies like Greenko Plc., Bhilwara Energy and Soham Renewable have raised multiple rounds of private equity funding. Many players are also developing a bouquet of power assets where hydel power figures as a prominent category.
BY SHRIJA AGRAWAL
The investment has been made through equity and optionally convertible debentures (OCDs) by Green India Venture Fund, a Rs 220 crore renewable and clean energy fund floated by IFCI Venture Capital.
Amrit Jal is implementing three hydel projects in Sikkim, with combined output of 235 MW. The holding company is executing the three projects through separate special purpose vehicles (SPVs) and the fund raised will be ploughed into these projects at various stages of implementation. These include the 110 MW project at Chuzachen, Rongli, 71 MW Sada Mandger project at Ravangla and 54 MW Bhasmey project at Rangpo in Sikkim.
“This round of capital infusion has been raised mainly for its project at Chuzachen, which promises an expected IRR upwards of 20 per cent,” Arindam Roy from IFCI VC told VCCircle. With this investment, the funds under management by Green India Venture Fund have been completely deployed, added Roy.
Earlier, Singapore-based River Valley Ventures had picked up stake in Gati Infrastructure Ltd, the SPV implementing 110 MW Chuzachen Hydel Project, which is now nearing commissioning. Other investors/bankers in the project include IDFC, KSK Ventures and also IFCI Ltd, the parent company of IFCI Venture Capital Funds Ltd.
Gati promoters, led by Mahendra K. Agarwal, hold majority stake in Amrit Jal Venture Ltd which, in turn, has holdings in Gati Infrastructure, Gati Infrastructure Bhasmey Power and Gati Sada Mandger Power. Gati promoters’ holding in Amrit Jal is routed through multiple vehicles including the group’s listed arm TCI Finance, which has around 38 per cent stake in the power assets.
The promoters have earlier announced their intention to rope in a strategic or financial partner for their shipping business, which will be in a hived-off entity.
In the backdrop of a growing economy, India’s energy demands are expected to outpace its supply. And non-conventional energy is expected to play a big role in filling that demand-supply gap. Not surprisingly, this segment has captured the interest of the investing class.
Investors’ interest in the hydel power space has been particularly rising and companies like Greenko Plc., Bhilwara Energy and Soham Renewable have raised multiple rounds of private equity funding. Many players are also developing a bouquet of power assets where hydel power figures as a prominent category.
Thursday, July 21, 2011
SIKKIM: German soccer tips for two
FROM THE TELEGRAPH
Gangtok, July 20: Two Gangtok boys flew to Germany today to hone their soccer skills at a 25-day-long camp organised by European football powerhouse Bayern Munich.
Ram Chettri and Suman Rai — both aged 14 — are from economically backward families and members of Boys Club Gangtok, a football academy run by former Sikkim players.
The two were among the six teenaged footballers in the country selected by Bayern Munich during trials held in Calcutta in November last year. Two children each from Shillong and Calcutta were also picked up for the training camp.
“Ram and Suman left Calcutta today to attend the camp. The training was supposed to have been conducted in January earlier this year but was postponed to July. The session will greatly benefit our boys, as they will receive better and modern training. Their morale will be lifted and the name of Sikkim will also be highlighted,” said Basant Gurung, one of the organisers of Boys Club.
The duo are among the 40 children imparted training by Boys Club at Tathangchen ground here everyday.
The children practise under the watchful eyes of the former Sikkim soccer players. The club gives the training free of cost.
Ram is fatherless and his mother does odd jobs to take care of the family. Suman’s father is a mason.
Gurung said the Boys Club trainees were well liked by the Bayern Munich coaches during the Calcutta trials.
“They were well liked by the coaches and who knows, our boys could be kept by the Bayern Munich for further training,” he said.
“We are into the third year of our academy. The selection of the two boys by Bayern Munich is a great achievement in such a short span of time and will motivate us in coming years. Our club has received exposure because of the selection of our boys and we hope our club will shine in future,” said the organiser.
FROM THE TELEGRAPH
Gangtok, July 20: Two Gangtok boys flew to Germany today to hone their soccer skills at a 25-day-long camp organised by European football powerhouse Bayern Munich.
Ram Chettri and Suman Rai — both aged 14 — are from economically backward families and members of Boys Club Gangtok, a football academy run by former Sikkim players.
The two were among the six teenaged footballers in the country selected by Bayern Munich during trials held in Calcutta in November last year. Two children each from Shillong and Calcutta were also picked up for the training camp.
“Ram and Suman left Calcutta today to attend the camp. The training was supposed to have been conducted in January earlier this year but was postponed to July. The session will greatly benefit our boys, as they will receive better and modern training. Their morale will be lifted and the name of Sikkim will also be highlighted,” said Basant Gurung, one of the organisers of Boys Club.
The duo are among the 40 children imparted training by Boys Club at Tathangchen ground here everyday.
The children practise under the watchful eyes of the former Sikkim soccer players. The club gives the training free of cost.
Ram is fatherless and his mother does odd jobs to take care of the family. Suman’s father is a mason.
Gurung said the Boys Club trainees were well liked by the Bayern Munich coaches during the Calcutta trials.
“They were well liked by the coaches and who knows, our boys could be kept by the Bayern Munich for further training,” he said.
“We are into the third year of our academy. The selection of the two boys by Bayern Munich is a great achievement in such a short span of time and will motivate us in coming years. Our club has received exposure because of the selection of our boys and we hope our club will shine in future,” said the organiser.
Indicus Analytics: Bridging the wealth gap
Indians are growing less poor, but the income disparities are still wide
source:Indicus Analytics / July 21, 2011, 0:21 IST
The disparity in wealth and income across India has been widely discussed in growth and development debates using various estimates. The District Level Household Survey data captures the distribution of population through a wealth index derived by combining household amenities, assets and durable goods at the national level. Households are categorised from the poorest to the richest groups corresponding to the lowest to the highest quintiles at the national level.
Though 55.3 per cent of urban households lie in the highest wealth quintile, the share of rural households is a mere 9.9 per cent. Not surprisingly, 24.9 per cent of rural households lie in the lowest wealth quintile and the corresponding proportion in the urban segment is a mere 2.7 per cent. Between 2002-04 and 2007-08 there has been an increase in the proportion of households in the highest wealth quintile and a decline in the proportion in the lowest wealth quintiles in rural and urban areas.
The wide variation in the proportion of households in the highest wealth quintile across states exemplifies the magnitude of inequality across the country. The proportion ranges from five per cent in Bihar to 89.3 per cent in Chandigarh. Delhi and Chandigarh are the top two states with more than 75 per cent of households in the highest wealth quintile group. In at least seven states and Union Territories – Puducherry, Daman & Diu, Punjab, Lakshadweep, Goa, Delhi and Chandigarh – more than 50 per cent of households are in the highest wealth quintile group. (Click here for graph)
On the other hand, Orissa appears at the top of the poorest states, with 48.5 per cent of households in the lowest wealth quintile. Jharkhand is not far behind with 43.4 per cent of households in the poorest group. In all the states that were declared Bimaru – Bihar, Madhya Pradesh and Rajasthan and Uttar Pradesh – more than 20 per cent of households are in the lowest wealth quintile group. The exception in the group is Uttarakhand where just 3.9 per cent of households lie in the poorest quintile. West Bengal and Manipur also show high shares of more than 20 per cent of households in the lowest wealth quintile. At the other end, Mizoram, Haryana, Goa, Sikkim, Himachal Pradesh, Punjab and Kerala have less than two per cent of households in the poorest quintile.
The gap between the lowest and highest wealth quintile is the narrowest in Meghalaya, Assam, Tripura and Arunchal Pradesh. The low proportion of households in the two extreme quintile groups in these states is an indication of lower inequality since a larger proportion of households are concentrated in the middle quintile group. In fact, more than 30 per cent of households in Meghalaya and Tripura lie in the middle quintile. Sikkim and Himachal Pradesh stand out with more than 40 per cent of households in the second-highest wealth quintile.
There is no doubt that the growing middle class is a prominent component of Indian society. But with most health and education parameters correlated to the household wealth index, the stark inequality across many states in rural and urban segments makes inclusive growth a real challenge.
source;Business Standard
Indians are growing less poor, but the income disparities are still wide
source:Indicus Analytics / July 21, 2011, 0:21 IST
The disparity in wealth and income across India has been widely discussed in growth and development debates using various estimates. The District Level Household Survey data captures the distribution of population through a wealth index derived by combining household amenities, assets and durable goods at the national level. Households are categorised from the poorest to the richest groups corresponding to the lowest to the highest quintiles at the national level.
Though 55.3 per cent of urban households lie in the highest wealth quintile, the share of rural households is a mere 9.9 per cent. Not surprisingly, 24.9 per cent of rural households lie in the lowest wealth quintile and the corresponding proportion in the urban segment is a mere 2.7 per cent. Between 2002-04 and 2007-08 there has been an increase in the proportion of households in the highest wealth quintile and a decline in the proportion in the lowest wealth quintiles in rural and urban areas.
The wide variation in the proportion of households in the highest wealth quintile across states exemplifies the magnitude of inequality across the country. The proportion ranges from five per cent in Bihar to 89.3 per cent in Chandigarh. Delhi and Chandigarh are the top two states with more than 75 per cent of households in the highest wealth quintile group. In at least seven states and Union Territories – Puducherry, Daman & Diu, Punjab, Lakshadweep, Goa, Delhi and Chandigarh – more than 50 per cent of households are in the highest wealth quintile group. (Click here for graph)
On the other hand, Orissa appears at the top of the poorest states, with 48.5 per cent of households in the lowest wealth quintile. Jharkhand is not far behind with 43.4 per cent of households in the poorest group. In all the states that were declared Bimaru – Bihar, Madhya Pradesh and Rajasthan and Uttar Pradesh – more than 20 per cent of households are in the lowest wealth quintile group. The exception in the group is Uttarakhand where just 3.9 per cent of households lie in the poorest quintile. West Bengal and Manipur also show high shares of more than 20 per cent of households in the lowest wealth quintile. At the other end, Mizoram, Haryana, Goa, Sikkim, Himachal Pradesh, Punjab and Kerala have less than two per cent of households in the poorest quintile.
The gap between the lowest and highest wealth quintile is the narrowest in Meghalaya, Assam, Tripura and Arunchal Pradesh. The low proportion of households in the two extreme quintile groups in these states is an indication of lower inequality since a larger proportion of households are concentrated in the middle quintile group. In fact, more than 30 per cent of households in Meghalaya and Tripura lie in the middle quintile. Sikkim and Himachal Pradesh stand out with more than 40 per cent of households in the second-highest wealth quintile.
There is no doubt that the growing middle class is a prominent component of Indian society. But with most health and education parameters correlated to the household wealth index, the stark inequality across many states in rural and urban segments makes inclusive growth a real challenge.
source;Business Standard
Wednesday, July 20, 2011
Ginger can help reduce side-effects of chemotherapy: doctors
Doctors after several experiments have concluded that ginger can help reduce side-effects of chemotherapy. File photo
Doctors at AIIMS are now working upon an herbal way to help cancer patients cope with the side-effects of chemotherapy.
Oncologists at the hospital here have been experimenting with ginger root powder in order to reduce the severity of the chemotherapy induced nausea vomiting (CINV).
Nausea and vomiting are the major side effects that a cancer patient encounters after chemotherapy treatment.
“The severity of chemotherapy induced nausea vomiting was reduced by ginger, our experiments showed. After the success of the study, we can say that there is a need to have ginger root powder available as capsules in varied dosages in order to use it as an add-on therapy in patients receiving chemotherapy with high vomiting potential,” said Dr Sameer Bakhshi, additional professor, department of medical oncology, AIIMS.
A total of 60 patients, between the age categories of eight to 21 years were randomly selected for the study.
“It was a double-blind randomised single institutional study carried out at our centre in 2009. Neither the patient nor the interviewer with the patients knew about the patient being administered with the dosage of ginger root powder,” Dr. Bakhshi, who led the study, said.
He said that dosages were administered according to the weight of the person. While those who weighed between 20kg to 40 kg were given 167 mg of ginger root powder capsules, those in the weight category of 40kg to 60kg were given 400 mg. Six capsules were given at different time intervals after start of chemotherpy infusion.
“Even though ginger root powder was effective in reducing the severity of acute and delayed CINV, it did not eliminate them completely. The capsules were well tolerated by the children and young adults in our study and there was no side effect,” he said.
The work has been published in the international journal of Pediatric Blood and Cancer.
source;The Hindu
SCAM IN INDIA & WALL STREET VIEW
The power of compounding seems to be working overtime when one counts the addition of zeroes to the size of scams hitting India. Over the past 4 years, the numbers have been mind boggling! Corruption has been a menace that has hit the Indian economy harder than any natural disaster. Unfortunately, the roots of the same have been so widespread over the decades that tackling it has been a tall order.
An interesting article in the Wall Street journal had put into perspective how the government could have utilized the funds from the 2G spectrum had no scandal taken place. Food for every destitute Indian for the next decade. Funding of the flagship employment program for India's marginalized for the next five years. Primary schooling for every Indian girl for the next three years. The reduction in every Indian's tax rate by 15% for the next year, or the reduction of India's outstanding debt by 10%. Thus the absence of the scams over the past 2 decades could have meant a huge boost to the Indian economy. But the chronology of scams shows that policy inaction has left the culprits more confident over the years. In fact, in the biggest scam in Indian history that was uncovered in 2010, members of the government itself were found responsible.
Data source: Wikipedia, Equitymaster
*Estimated numbers
The synonymy of corruption with India has indeed left a bad taste in moth of global investors. Indian stocks witnessed a huge downgrade in valuations when the CWG and 2G scam were uncovered. Since then, investors have dumped every stock that has been even remotely in the news for being associated with a scam. But the problem does not end there. There's another scam that dwarfs absolutely everything that has occurred so far. And this scam answers to the name of money laundering. As per the results of a study on corruption, published by Rediff, the size of money laundered by Indians stands at staggering Rs 18.8 trillion. The same is apparently 1.2 times the overall size of corruption menace in the country. We believe that it is time both the government and companies realize that being corrupt is no longer going to take them too far.
source:equitymaster
An interesting article in the Wall Street journal had put into perspective how the government could have utilized the funds from the 2G spectrum had no scandal taken place. Food for every destitute Indian for the next decade. Funding of the flagship employment program for India's marginalized for the next five years. Primary schooling for every Indian girl for the next three years. The reduction in every Indian's tax rate by 15% for the next year, or the reduction of India's outstanding debt by 10%. Thus the absence of the scams over the past 2 decades could have meant a huge boost to the Indian economy. But the chronology of scams shows that policy inaction has left the culprits more confident over the years. In fact, in the biggest scam in Indian history that was uncovered in 2010, members of the government itself were found responsible.
| Chronology of scams in India | Size* (Rs m) |
| Bofors scam, 1989 | 400 |
| Harshad M scam, 1992 | 6,000 |
| Telgi scam, 1995 | 20,000 |
| Hawala scandal, 1997 | 1,000 |
| Ketan P scam, 2001 | 50,000 |
| Satyam scam, 2008 | 90,000 |
| CWG scam, 2010 | 80,000 |
| 2G spectrum scam, 2010 | 1,760,000 |
| Overall corruption | 15,550,000 |
| Money laundering | 18,860,000 |
*Estimated numbers
The synonymy of corruption with India has indeed left a bad taste in moth of global investors. Indian stocks witnessed a huge downgrade in valuations when the CWG and 2G scam were uncovered. Since then, investors have dumped every stock that has been even remotely in the news for being associated with a scam. But the problem does not end there. There's another scam that dwarfs absolutely everything that has occurred so far. And this scam answers to the name of money laundering. As per the results of a study on corruption, published by Rediff, the size of money laundered by Indians stands at staggering Rs 18.8 trillion. The same is apparently 1.2 times the overall size of corruption menace in the country. We believe that it is time both the government and companies realize that being corrupt is no longer going to take them too far.
source:equitymaster
Border Trade At Nathu La: Five Years After
By Bhim B Subba
It has been five years since the resumption of Nathu La border trade between India and China following a lull of four decades after the Sino-Indian War in 1962, yet neither has there been any mention of it in the print media both at the national and state levels, Sikkim in particular, nor has it been given any attention by the strategic community. Is the Nathu La fanfare over? Is the administration of the day interested in continuing this endeavour or is it just an aberration to boost India-China relations?
Over the past five years, bilateral border trade via Nathu La so far has overwhelmingly benefited traders from both sides of the border. Every year, trade begins from 1-2 May until 30 November, when the pass closes for the winter. This year it was proposed to open on 2 May, but the road blocks caused by severe landslides meant that trade could be resumed only from 16 May. This was a major setback for the traders. It is therefore imperative for road infrastructure to be developed to fully tap the potential of this exercise.
China India Relations
Nathu La, one of the three border trade points between India and China, faces a major hindrance during the monsoons, which play havoc between late April and mid-September. Although the state administered SPWD and the BRO-GREF have collaborated to keep the stretch worthy of transport, this temporary ad hoc fix measure cannot sustain the traffic flow as both trade and the peak tourist season coincide during this time. The double-laning of Jawaharlal Nehru Marg from Gangtok to Nathu La was started in 2007 by the Border Roads Organization (BRO) but has not been completed yet, leading to more chaos during the tourist season. This traffic choke can be eased with proper maintenance of the alternate route bypassing Gangtok from Rangpo-Rorathang-Rongli Road. It is an alternative to the 31/A National Highway to Gangtok from Sevoke in northern West Bengal. But the condition of the road is not all-weather friendly.
The locals in and around Gangtok face undue hardships because a vast majority of taxi-jeeps cater to tourists especially those going to Tsangu Lake, the same route that leads to Nathu La. The diversion of vehicles means that locals are sometimes left stranded, and at other times, are expected to pay more when commuting to and from Gangtok. The author experienced this recently on his visit to Pakyong, a sub-division town, where the only civilian airport in Sikkim is being developed. It is would be prudent for the state government to look into this problem to eases the traffic movement by building better roads and widening/back-cutting the existing road. This can be helpful in easing up traffic up to the lake area.
In addition, the four days of trading in a week leave the traders unhappy. Under the bilateral agreement between India and China, Sikkimese traders can export 29 items to and import 15 items from Tibet Autonomous Region (TAR). Thus, hardly anything from Sikkim is traded. In fact, the non-tradable items are more than the legally specified tradable items. The Sikkim government has repeatedly approached the Centre for a revision of the list of tradable items. Traders from both sides have also been demanding the revision of tradable items, saying that the present items listed in the schedule are obsolete and do not have commercial value.
Bilateral trade has increased from just INR 2 million in 2006 to INR 9.85 million with zero imports in 2010, which shows the vast potential of trade between two countries. This trend must be nurtured by increasing the list of tradable items, developing roads and communication infrastructure and the involvement of more customs officials on the Indian side of the mart. Also, to be more inclusive, the local trading community of Sikkim has to be encouraged as their business representation is much smaller than other business communities in the area. The potential that economic diplomacy holds, if exploited, will bring long-term benefits to people from both sides of the border.
Bhim B Subba
Research Scholar, DEAS, University of Delhi
email: subba.eas@gmail.com
source;Eurasia Review
It has been five years since the resumption of Nathu La border trade between India and China following a lull of four decades after the Sino-Indian War in 1962, yet neither has there been any mention of it in the print media both at the national and state levels, Sikkim in particular, nor has it been given any attention by the strategic community. Is the Nathu La fanfare over? Is the administration of the day interested in continuing this endeavour or is it just an aberration to boost India-China relations?
Over the past five years, bilateral border trade via Nathu La so far has overwhelmingly benefited traders from both sides of the border. Every year, trade begins from 1-2 May until 30 November, when the pass closes for the winter. This year it was proposed to open on 2 May, but the road blocks caused by severe landslides meant that trade could be resumed only from 16 May. This was a major setback for the traders. It is therefore imperative for road infrastructure to be developed to fully tap the potential of this exercise.
China India Relations
Nathu La, one of the three border trade points between India and China, faces a major hindrance during the monsoons, which play havoc between late April and mid-September. Although the state administered SPWD and the BRO-GREF have collaborated to keep the stretch worthy of transport, this temporary ad hoc fix measure cannot sustain the traffic flow as both trade and the peak tourist season coincide during this time. The double-laning of Jawaharlal Nehru Marg from Gangtok to Nathu La was started in 2007 by the Border Roads Organization (BRO) but has not been completed yet, leading to more chaos during the tourist season. This traffic choke can be eased with proper maintenance of the alternate route bypassing Gangtok from Rangpo-Rorathang-Rongli Road. It is an alternative to the 31/A National Highway to Gangtok from Sevoke in northern West Bengal. But the condition of the road is not all-weather friendly.
The locals in and around Gangtok face undue hardships because a vast majority of taxi-jeeps cater to tourists especially those going to Tsangu Lake, the same route that leads to Nathu La. The diversion of vehicles means that locals are sometimes left stranded, and at other times, are expected to pay more when commuting to and from Gangtok. The author experienced this recently on his visit to Pakyong, a sub-division town, where the only civilian airport in Sikkim is being developed. It is would be prudent for the state government to look into this problem to eases the traffic movement by building better roads and widening/back-cutting the existing road. This can be helpful in easing up traffic up to the lake area.
In addition, the four days of trading in a week leave the traders unhappy. Under the bilateral agreement between India and China, Sikkimese traders can export 29 items to and import 15 items from Tibet Autonomous Region (TAR). Thus, hardly anything from Sikkim is traded. In fact, the non-tradable items are more than the legally specified tradable items. The Sikkim government has repeatedly approached the Centre for a revision of the list of tradable items. Traders from both sides have also been demanding the revision of tradable items, saying that the present items listed in the schedule are obsolete and do not have commercial value.
Bilateral trade has increased from just INR 2 million in 2006 to INR 9.85 million with zero imports in 2010, which shows the vast potential of trade between two countries. This trend must be nurtured by increasing the list of tradable items, developing roads and communication infrastructure and the involvement of more customs officials on the Indian side of the mart. Also, to be more inclusive, the local trading community of Sikkim has to be encouraged as their business representation is much smaller than other business communities in the area. The potential that economic diplomacy holds, if exploited, will bring long-term benefits to people from both sides of the border.
Bhim B Subba
Research Scholar, DEAS, University of Delhi
email: subba.eas@gmail.com
source;Eurasia Review
Tuesday, July 19, 2011
Need For Retirement Account
By Dhirendra Kumar | Jul 18, 2011
In the whole Indian savings and investment landscape, one of the things that should have been there but isn’t is a retirement account. This will enable savers to use a much larger range of savings instruments for their retirement and pension needs. This would also enable mutual funds to serve a need that they are well-suited to serve. Interestingly, in his speech to the CII’s annual mutual fund industry conference last month, SEBI Chairman U.K. Sinha had said that pension funds was one of the areas that mutual funds could expand into.
The idea of a retirement account is very simple. Your retirement savings, instead of being a particular instrument, could simply be an account. The account would be maintained by one of the depositories. You could use the money in this account to invest in any a number of specified types of investments. Most importantly, while this money can be shifted between different investments. As long as it doesn’t come out of the retirement account, the transfers are not taxed. Finally, the accumulated growth can be withdrawn at retirement age. Just like the NPS, part of it could be used to buy an annuity which produces an income for the entire life of the beneficiary.
One of the advantages of such a system would be the flexibility that it would afford. Not just mutual funds, but all kinds of investment types, including mundane types such as bank fixed deposits could be part of it. Instead of a specified type of investment, retirement savings could contain any type of investment suitable to a saver. Moreover, it is likely that such a system would breathe some commercial life into the retirement savings system. Various entities that provide a range of different investments could then become part of the retirement eco-system. While abuses are certainly possible, the necessity of these investments for being very long-term would afford it protection from a lot of the problems that investors generally create for themselves. Of course, a regulator, possibly the PFRDA itself, could monitor the instruments being offered for the retirement account. A requirement for reasonable cost and transparency levels would likely suffice to ensure that things don’t go off-track.
Around the world, such a retirement account system is nothing new and many countries have one. The most well-known one is the so-called 401(k) account in the US. In this account, a set amount is deducted from salaries and is matched by employers. Basically, it’s like a retirement account version of the EPFO. While 401(k) is the best known one, most developed countries have something similar. One innovative variation to this idea is the one called the Roth 401 in the US. The money put into this is not tax-free, i.e., it is income on which it taxis paid. However, once t is put away in the pension account till retirement age, further gains derived from the funds is also tax-free.
Based on the information available publicly, one can see that the idea of a retirement account has been discussed a number of times within the government. It was actually there in the original 2009 draft of the new Direct Tax Code. In the revised draft of June 2010, this was one of the provisions which was dropped. The reason given was that such a system would be too complex to run on a nationwide basis. However, what is too complex today could well be comfortably implementable a year down the line. With the coming of the UID and the increasing success of large IT projects in the government, such a system could well be feasible. The scale of successful IT systems that are running well in India in the government sector seems to be expanding constantly. A unified retirement account could be just the thing that is needed to revolutionise retirement savings and pensions in India.
By Dhirendra Kumar | Jul 18, 2011
In the whole Indian savings and investment landscape, one of the things that should have been there but isn’t is a retirement account. This will enable savers to use a much larger range of savings instruments for their retirement and pension needs. This would also enable mutual funds to serve a need that they are well-suited to serve. Interestingly, in his speech to the CII’s annual mutual fund industry conference last month, SEBI Chairman U.K. Sinha had said that pension funds was one of the areas that mutual funds could expand into.
The idea of a retirement account is very simple. Your retirement savings, instead of being a particular instrument, could simply be an account. The account would be maintained by one of the depositories. You could use the money in this account to invest in any a number of specified types of investments. Most importantly, while this money can be shifted between different investments. As long as it doesn’t come out of the retirement account, the transfers are not taxed. Finally, the accumulated growth can be withdrawn at retirement age. Just like the NPS, part of it could be used to buy an annuity which produces an income for the entire life of the beneficiary.
One of the advantages of such a system would be the flexibility that it would afford. Not just mutual funds, but all kinds of investment types, including mundane types such as bank fixed deposits could be part of it. Instead of a specified type of investment, retirement savings could contain any type of investment suitable to a saver. Moreover, it is likely that such a system would breathe some commercial life into the retirement savings system. Various entities that provide a range of different investments could then become part of the retirement eco-system. While abuses are certainly possible, the necessity of these investments for being very long-term would afford it protection from a lot of the problems that investors generally create for themselves. Of course, a regulator, possibly the PFRDA itself, could monitor the instruments being offered for the retirement account. A requirement for reasonable cost and transparency levels would likely suffice to ensure that things don’t go off-track.
Around the world, such a retirement account system is nothing new and many countries have one. The most well-known one is the so-called 401(k) account in the US. In this account, a set amount is deducted from salaries and is matched by employers. Basically, it’s like a retirement account version of the EPFO. While 401(k) is the best known one, most developed countries have something similar. One innovative variation to this idea is the one called the Roth 401 in the US. The money put into this is not tax-free, i.e., it is income on which it taxis paid. However, once t is put away in the pension account till retirement age, further gains derived from the funds is also tax-free.
Based on the information available publicly, one can see that the idea of a retirement account has been discussed a number of times within the government. It was actually there in the original 2009 draft of the new Direct Tax Code. In the revised draft of June 2010, this was one of the provisions which was dropped. The reason given was that such a system would be too complex to run on a nationwide basis. However, what is too complex today could well be comfortably implementable a year down the line. With the coming of the UID and the increasing success of large IT projects in the government, such a system could well be feasible. The scale of successful IT systems that are running well in India in the government sector seems to be expanding constantly. A unified retirement account could be just the thing that is needed to revolutionise retirement savings and pensions in India.
Pact signed for Gorkhaland Territorial Administration
The Hindu Representatives of the GJM and the Central and West Bengal governments sign the tripartite agreement for the setting up of the Gorkhaland Territorial Administration, in Sukna on Monday. Photo: Sushanta Patronobish
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It will have 50 members; a Bill will be moved in Assembly
A tripartite agreement paving the way for the setting up of the Gorkhaland Territorial Administration (GTA), an elected body for the Darjeeling hills, was signed at Pintail village here on Monday.
“The task ahead of you is stupendous. You have to rebuild brick by brick, and when you do so, the West Bengal government and the government of India will stand by you,” Union Home Minister P. Chidambaram told the Gorkha Janmukti Morcha (GJM) leadership, terming the occasion “historic.”
West Bengal Chief Minister Mamata Banerjee and GJM president Bimal Gurung, among others, took part in the function.
Joint Secretary in the Union Home Ministry, K. K. Pathak; West Bengal Home Secretary G.D. Gautama; and GJM general secretary Roshan Giri signed the accord. The contents of the agreement were not made public although Mr. Chidambaram and Ms. Banerjee did refer to certain provisions.
The new set-up will have 50 members: 45 of them will be elected and the rest nominated. A Bill for this will be moved in the Assembly and, on adoption, it will be sent to the President for assent.
Elections to the new body would be held within six months, Ms. Banerjee said.
Resentment on plains
As large numbers of Gorkhas sang and danced at the site to celebrate the signing of the accord, there was a complete shutdown in the nearby town of Siliguri and parts of the Dooars and Terai regions on the plains of north Bengal.
A two-day general strike called by the Bangla O Banglabhasha Bachao Committee evoked a spontaneous response in Siliguri and adjoining areas. The organisation claimed that the treaty was “only a step away from the conspiracy to eventually divide West Bengal.”
However, Ms. Banerjee ruled out any division of the State — a comment that was met with a subdued applause. The GJM leadership maintained that the formation of the GTA was not a compromise on its demand for a separate State and was, in fact, a step in that direction.
Mr. Gurung reiterated the demand for the inclusion, under the GTA, of the Terai and Dooars regions. “Now, a committee will be set up for the inclusion of areas in the Dooars and the Terai. The government will also have to pay attention to this and ensure that it works out.”
Trekkers to collect info on springs in Sahyadri range
worked in Sikkim too
by Swati Shinde GoleSwati Shinde Gole, TNN | Jul 18, 2011,
Natural springs in the mountain ranges of Sahyadri will now be identified. A Pune-based NGO, Advanced Center for Water Resources Development and Management, will take the help of a Mumbai-based group of trekkers, Girimitra Pratishthan, to create a database of such water bodies so that they can be conserved.
Suhas Joshi, a member of Girimitra Pratishthan, said, "The project, 'Sahyadri springs', largely thrives on the information given by trekkers and nature lovers. Once a good database is created, the science behind these springs could be understood. This will also help us conserve them."
A similar project is being carried out in Sikkim for which this Pune-based NGO has trained the Sikkim government officials. So far, close to 538 springs have been identified there. Inspired by this, Girimitra thought of replicating the project in Sahyadri.
"Springs are natural discharge of groundwater and hence each spring has its unique characteristics. They have specific recharge areas and such areas need to be protected. In fact, almost all major rivers along the Western Ghats originate from springs, making them culturally important too. I believe, springs must have been indicators for locating many of the mountain forts in Maharashtra," said Himanshu Kulkarni, executive director of Advanced Center for Water Resources Development and Management.
A contributor will have to identify springs and give it a code number. The spring ID will include abbreviation of the location, followed by the fort where it is located, the base village, taluka, river basin as well as the latitude, longitude and elevation. He can also click a picture of the spring and upload the information on the project website www.sahyadrisprings.org
Once trekkers and nature lovers collect all the desired information, they will have to fill in a form available on the website with all the required information. The information will then be updated in the database.
Kaustubh Mahamuni, a researcher at the NGO, who designed the guidelines for identifying the springs said, "Many of the springs are located at high altitudes and gathering information about them will be possible only through a participatory effort involving trekkers and mountaineers. Springs are perhaps the only sources of safe and sustainable supply of water to thousands of habitations in various mountain ranges of India. At the same time, they are a part of a larger system, a system that includes soils, rocks, vegetation and water behaving in myriad ways."
Eminent ecologist Madhav Gadgil, who is also supporting the project, said, "To address the important challenge of taking good care of India's environment, we clearly need substantial, good quality, information. Unfortunately, pertinent information is in very short supply. Most of it is collected through the state machinery, and is of poor quality, highly incomplete, indeed, often quite misleading. The only recourse is for us citizens, especially those who love nature as trekkers do, to collect good quality information and bring it out in public domain."
Gadgil further said, "Citizens are a great repository of detailed information on many facets of their local environment. Those who love to spend time in the outdoors ought therefore to play an important role in this process."
worked in Sikkim too
by Swati Shinde GoleSwati Shinde Gole, TNN | Jul 18, 2011,
Natural springs in the mountain ranges of Sahyadri will now be identified. A Pune-based NGO, Advanced Center for Water Resources Development and Management, will take the help of a Mumbai-based group of trekkers, Girimitra Pratishthan, to create a database of such water bodies so that they can be conserved.
Suhas Joshi, a member of Girimitra Pratishthan, said, "The project, 'Sahyadri springs', largely thrives on the information given by trekkers and nature lovers. Once a good database is created, the science behind these springs could be understood. This will also help us conserve them."
A similar project is being carried out in Sikkim for which this Pune-based NGO has trained the Sikkim government officials. So far, close to 538 springs have been identified there. Inspired by this, Girimitra thought of replicating the project in Sahyadri.
"Springs are natural discharge of groundwater and hence each spring has its unique characteristics. They have specific recharge areas and such areas need to be protected. In fact, almost all major rivers along the Western Ghats originate from springs, making them culturally important too. I believe, springs must have been indicators for locating many of the mountain forts in Maharashtra," said Himanshu Kulkarni, executive director of Advanced Center for Water Resources Development and Management.
A contributor will have to identify springs and give it a code number. The spring ID will include abbreviation of the location, followed by the fort where it is located, the base village, taluka, river basin as well as the latitude, longitude and elevation. He can also click a picture of the spring and upload the information on the project website www.sahyadrisprings.org
Once trekkers and nature lovers collect all the desired information, they will have to fill in a form available on the website with all the required information. The information will then be updated in the database.
Kaustubh Mahamuni, a researcher at the NGO, who designed the guidelines for identifying the springs said, "Many of the springs are located at high altitudes and gathering information about them will be possible only through a participatory effort involving trekkers and mountaineers. Springs are perhaps the only sources of safe and sustainable supply of water to thousands of habitations in various mountain ranges of India. At the same time, they are a part of a larger system, a system that includes soils, rocks, vegetation and water behaving in myriad ways."
Eminent ecologist Madhav Gadgil, who is also supporting the project, said, "To address the important challenge of taking good care of India's environment, we clearly need substantial, good quality, information. Unfortunately, pertinent information is in very short supply. Most of it is collected through the state machinery, and is of poor quality, highly incomplete, indeed, often quite misleading. The only recourse is for us citizens, especially those who love nature as trekkers do, to collect good quality information and bring it out in public domain."
Gadgil further said, "Citizens are a great repository of detailed information on many facets of their local environment. Those who love to spend time in the outdoors ought therefore to play an important role in this process."
Alstom Projects wins over Rs 270-cr hydro power plant contracts. One in Sikkim too
by R. Y. Narayanan
Coimbatore, July 18: Alstom Projects India Ltd has won three major contracts worth over Rs 270 crore (over €40 million) to build hydroelectric projects in the country.
The first contract has been signed with Shiga Energy Pvt Ltd for the 97 MW Tashiding hydroelectric project in West Sikkim district on the Rathang Chu river. The second contract has been signed with NSL Tidong Power Generation Pvt Ltd for the Tidong 1 hydroelectric project in Kinnaur District in Himachal Pradesh, consisting of two 50 MW units. The third contract has been signed with Haridwar Infrastructure Pvt Ltd for the Dikchu hydroelectric project on the river Dikchu, a tributary of Teesta River in East Sikkim, for a 96 MW plant.
All equipment will be manufactured at Alstom’s Vadodara facility in Gujarat, one of the company’s largest hydro equipment manufacturing hubs worldwide.
Alstom estimates that India has an economically exploitable and viable hydro potential of about 84,000 MW. However, only 19.9 per cent of this potential has been harnessed so far. Additional hydropower capacity would diversify India’s energy mix, currently reliant on fossil fuels, thus contributing to energy security and reducing greenhouse gas emissions.
These three contracts follow a major contract won by Alstom with Tehri Hydro Development Corporation (THDC) to install the 1,000 MW Tehri variable speed pumped storage hydro power plant in Uttarakhand. Alstom projects currently under execution include the 2,000 MW Subansiri Lower hydroelectric power plant in Assam and Arunachal Pradesh, India’s largest hydro project.
by R. Y. Narayanan
Coimbatore, July 18: Alstom Projects India Ltd has won three major contracts worth over Rs 270 crore (over €40 million) to build hydroelectric projects in the country.
The first contract has been signed with Shiga Energy Pvt Ltd for the 97 MW Tashiding hydroelectric project in West Sikkim district on the Rathang Chu river. The second contract has been signed with NSL Tidong Power Generation Pvt Ltd for the Tidong 1 hydroelectric project in Kinnaur District in Himachal Pradesh, consisting of two 50 MW units. The third contract has been signed with Haridwar Infrastructure Pvt Ltd for the Dikchu hydroelectric project on the river Dikchu, a tributary of Teesta River in East Sikkim, for a 96 MW plant.
All equipment will be manufactured at Alstom’s Vadodara facility in Gujarat, one of the company’s largest hydro equipment manufacturing hubs worldwide.
Alstom estimates that India has an economically exploitable and viable hydro potential of about 84,000 MW. However, only 19.9 per cent of this potential has been harnessed so far. Additional hydropower capacity would diversify India’s energy mix, currently reliant on fossil fuels, thus contributing to energy security and reducing greenhouse gas emissions.
These three contracts follow a major contract won by Alstom with Tehri Hydro Development Corporation (THDC) to install the 1,000 MW Tehri variable speed pumped storage hydro power plant in Uttarakhand. Alstom projects currently under execution include the 2,000 MW Subansiri Lower hydroelectric power plant in Assam and Arunachal Pradesh, India’s largest hydro project.
Monday, July 18, 2011
WB State to focus on industrial growth in Darjeeling Hills
FROM THE STATESMAN
BY PRANESH SARKAR
KOLKATA, 17 JULY: After settling the issue in the hills by signing the tripartite agreement tomorrow, the Trinamul Congress-led state government is set to lay stress on bringing in industries in the three hill sub-divisions of Darjeeling.
For this, the state government is likely to place a demand before the department of industrial policy and promotion of the Union ministry of commerce and industry to include the northern part of the state in the North-East Industrial and Investment Promotion Policy (NEIIPP) where industrialists are given huge tax relief if they set up industries.
“It is in the roadmap of our government. Chief minister had already taken up the issue with the Centre in the recent past. Now, a fresh initiative would be taken. If our neighbouring states like Sikkim can enjoy the facility, it should be extended to the northern part of our states which has similar topography. At least three hill sub-divisions ~ Darjeeling, Kalimpong and Kurseong ~ should enjoy the facility,” the uttarbanga unnayan affairs minister, Mr Gautam Deb, told The Statesman.
Senior officials at Writers’ Buildings said that the Centre gives a package of fiscal incentives and other concessions for the industrialists who set up their units in North-Eastern states under the NEIIPP. The package was announced first in 1997 where the facility was announced for states like Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. In 2007, the facility has been extended to Sikkim, too.
Under this policy, industries set up in these states enjoy several facilities, including 100 per cent excise duty exemption, 100 per cent Income-Tax exemption, handsome amount of capital investment subsidy, interest subsidy on working capital loan etc. And these facilities are offered for a period of 10 years.
As per the plan prepared for undertaking development in north Bengal, the state government is eyeing to set up industries in the hills only to generate employment for local youths as well as overall development of the area. “There are several opportunities to set up industries in the hills. Industries like information technology, pharmaceuticals, bio-technology units which are based on medicinal plants and readymade garment industry can flourish in the area. These units would also generate huge number of employment for the local people,” said Mr Deb. The state government is likely to argue that if Sikkim can be brought under the policy, the Centre should consider bringing three Hill sub-divisions under the facility as it has same topography as Sikkim.
FROM THE STATESMAN
BY PRANESH SARKAR
KOLKATA, 17 JULY: After settling the issue in the hills by signing the tripartite agreement tomorrow, the Trinamul Congress-led state government is set to lay stress on bringing in industries in the three hill sub-divisions of Darjeeling.
For this, the state government is likely to place a demand before the department of industrial policy and promotion of the Union ministry of commerce and industry to include the northern part of the state in the North-East Industrial and Investment Promotion Policy (NEIIPP) where industrialists are given huge tax relief if they set up industries.
“It is in the roadmap of our government. Chief minister had already taken up the issue with the Centre in the recent past. Now, a fresh initiative would be taken. If our neighbouring states like Sikkim can enjoy the facility, it should be extended to the northern part of our states which has similar topography. At least three hill sub-divisions ~ Darjeeling, Kalimpong and Kurseong ~ should enjoy the facility,” the uttarbanga unnayan affairs minister, Mr Gautam Deb, told The Statesman.
Senior officials at Writers’ Buildings said that the Centre gives a package of fiscal incentives and other concessions for the industrialists who set up their units in North-Eastern states under the NEIIPP. The package was announced first in 1997 where the facility was announced for states like Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura. In 2007, the facility has been extended to Sikkim, too.
Under this policy, industries set up in these states enjoy several facilities, including 100 per cent excise duty exemption, 100 per cent Income-Tax exemption, handsome amount of capital investment subsidy, interest subsidy on working capital loan etc. And these facilities are offered for a period of 10 years.
As per the plan prepared for undertaking development in north Bengal, the state government is eyeing to set up industries in the hills only to generate employment for local youths as well as overall development of the area. “There are several opportunities to set up industries in the hills. Industries like information technology, pharmaceuticals, bio-technology units which are based on medicinal plants and readymade garment industry can flourish in the area. These units would also generate huge number of employment for the local people,” said Mr Deb. The state government is likely to argue that if Sikkim can be brought under the policy, the Centre should consider bringing three Hill sub-divisions under the facility as it has same topography as Sikkim.
Pact on Gorkhaland administration today
PTI TIME FOR KIDS: West Bengal Chief Minister Mamata Banerjee interacts with children at Sukna, near Siliguri on Sunday, on the eve of the signing of the agreement on Gorkhaland.
Mamata, Chidambaram and GJM chief Bimal Gurung to attend function
When the sun rises over the Kanchenjunga on Monday, it will usher in a new chapter in the political history of the Darjeeling hills with the signing of a tripartite agreement for the setting up of the Gorkhaland Territorial Administration (GTA) at Pintail village near here. It will be inked by the Union government, the Gorkha Janmukti Morcha (GJM) and the West Bengal government.
Chief Minister Mamata Banerjee arrived at the Bagdorga airport on Sunday afternoon and Union Home Minister P. Chidambaram is expected to come on Monday. GJM president Bimal Gurung and other leaders will be present on the occasion. However, Leader of the Opposition in the Assembly Surya Kanta Mishra has declined the invitation.
Mr. Gurung met Ms. Banerjee at Sukna on Sunday evening.
The formation of the GTA, the culmination of a series of tripartite talks initiated when the Left was in power in the State, will ensure greater financial and administrative powers than what the body it replaces — the Darjeeling Gorkha Hill Council — had.
The signing of the agreement is expected to restore stability — at least for some time — to the region, which has witnessed unrest, a brutal assassination and months-long shutdowns for nearly three years in the course of the agitation for a separate State of Gorkhaland that took a new turn with the formation of the GJM.
“The people of the region are very happy that this agreement will be signed,” GJM general secretary Roshan Giri told The Hindu.
Asked about the perception that the GJM was deserting the statehood demand, Mr. Giri said if some people thought so it could not be helped, but Gorkhaland “is only a matter of time.”
Mr. Giri was also pleased with the announcement of a Rs. 600-crore Central package and expressed the hope that Ms. Banerjee would also announce financial help.
But there has been criticism of the decision to convene Monday's tripartite meeting. Various outfits have opposed the signing of the agreement for, they are apprehensive of claims by a section of the GJM leadership that the proposed set-up is only a step towards realising the ultimate aim of a separate State.
Despite appeals from the local Trinamool Congress leadership, the Bangla O Bangla Bhasa Bachao Committee, an organisation based here, has decided to go ahead with its call for a two-day bandh from Monday.
Excitement
But the mood on the streets is one of excitement, though the streams of the GJM's party colours that line the streets are punctuated by the odd banner written in Bengali — “Siliguri is ours.”
“We are very happy that the agreement is being signed. We are certain that the statehood of Gorkhaland is not far away,” said Ajanta Sharma, a resident of Salbari near Siliguri even as she put up streamers in green, white and yellow — the party colours of the GJM.
On the other hand, sceptics like Arjun Chettri are concerned that the setting up of the GTA will only delay, perhaps rule out the dream of a separate State.
The assertion points to the difficult negotiations ahead over the claims by different ethnic groups to the Terrai and Dooars region contiguous to the hills. The GJM has pressed for inclusion of these regions under the GTA.
Source: The Hindu
Focus on rural livelihood
- World Bank to provide $144 million to generate jobs
Guwahati, July 15: The World Bank is providing $144 million to improve rural livelihood, especially that of women and unemployed youths, to four states in the Northeast.
Sources said the bank is expected to clear the project, christened the North East Rural Livelihoods Project, by September last.
The four states to be benefited are Mizoram, Nagaland, Sikkim, and Tripura.
These states were selected because they were not included in the earlier North Eastern Region Community Resource Management Project for Upland Areas project, which was supported by International Fund for Agricultural Development. The project ended in 2008.
The livelihood project will be for six years.
An official of the North East Rural Livelihoods Project, the implementing agency of the project, said the areas that need to be addressed were effective skill development for youths, linking community-based organisations with wider markets, improving communities’ access to credit and other financial services.
Forming sustainable institutions of the poor and convergence with other government programmes would enable this.
The project aims at benefiting approximately three lakh households in 1,624 villages under 58 blocks across eight districts in the four states.
The project districts are Aizawl and Lunglei in Mizoram; Peren and Tuensang in Nagaland; South, West and 15 panchayat wards of East district in Sikkim, and West and North in Tripura.
The argument put forward for moving the project is to put the Northeast on track for economic growth.
There is a need to revamp efforts to improve the natural resources management and revitalise the local economy in a bottom-up approach so as to make the intervention responsive to the people’s needs.
The project information document of the project states that the core of the project is on building strong grassroots institutions of the poor — community development groups, women self-help groups, self-help group village federations, producer organisations and youth groups of men and women.
It will increase opportunities for livelihood by improving agriculture for food security and income enhancement from farming and allied activities, by developing employable skills of youths.
It will also involve establishment of self and/or group-managed enterprises, and creating access to finance through linkages with banks and other financial institutions. The main strategy in developing community institutions is to provide the underprivileged with the voice and the scale required to more effectively engage themselves in the decision-making process and to address their needs for economic empowerment.
The project will be under the overall governance of DoNER while the North East Livelihood Promotion Society will be the primary agency responsible for its implementation.
The society will be based in Guwahati and will oversee the overall implementation of the project. It will provide policy and strategic guidance to the project.
Despite the relatively high literacy rate, the region also suffers from alarmingly high youth unemployment rate at 14 per cent.
The project will comprise four components — social empowerment ($28.6 million), economic empowerment ($86.9 million), partnership development ($14.3 million) and project management ($ 14.6 million).
- World Bank to provide $144 million to generate jobs
Guwahati, July 15: The World Bank is providing $144 million to improve rural livelihood, especially that of women and unemployed youths, to four states in the Northeast.
Sources said the bank is expected to clear the project, christened the North East Rural Livelihoods Project, by September last.
The four states to be benefited are Mizoram, Nagaland, Sikkim, and Tripura.
These states were selected because they were not included in the earlier North Eastern Region Community Resource Management Project for Upland Areas project, which was supported by International Fund for Agricultural Development. The project ended in 2008.
The livelihood project will be for six years.
An official of the North East Rural Livelihoods Project, the implementing agency of the project, said the areas that need to be addressed were effective skill development for youths, linking community-based organisations with wider markets, improving communities’ access to credit and other financial services.
Forming sustainable institutions of the poor and convergence with other government programmes would enable this.
The project aims at benefiting approximately three lakh households in 1,624 villages under 58 blocks across eight districts in the four states.
The project districts are Aizawl and Lunglei in Mizoram; Peren and Tuensang in Nagaland; South, West and 15 panchayat wards of East district in Sikkim, and West and North in Tripura.
The argument put forward for moving the project is to put the Northeast on track for economic growth.
There is a need to revamp efforts to improve the natural resources management and revitalise the local economy in a bottom-up approach so as to make the intervention responsive to the people’s needs.
The project information document of the project states that the core of the project is on building strong grassroots institutions of the poor — community development groups, women self-help groups, self-help group village federations, producer organisations and youth groups of men and women.
It will increase opportunities for livelihood by improving agriculture for food security and income enhancement from farming and allied activities, by developing employable skills of youths.
It will also involve establishment of self and/or group-managed enterprises, and creating access to finance through linkages with banks and other financial institutions. The main strategy in developing community institutions is to provide the underprivileged with the voice and the scale required to more effectively engage themselves in the decision-making process and to address their needs for economic empowerment.
The project will be under the overall governance of DoNER while the North East Livelihood Promotion Society will be the primary agency responsible for its implementation.
The society will be based in Guwahati and will oversee the overall implementation of the project. It will provide policy and strategic guidance to the project.
Despite the relatively high literacy rate, the region also suffers from alarmingly high youth unemployment rate at 14 per cent.
The project will comprise four components — social empowerment ($28.6 million), economic empowerment ($86.9 million), partnership development ($14.3 million) and project management ($ 14.6 million).
9 High Capacity Power Transmission Corridors in 12th Plan
PTI | 07:07 PM,Jul 17,2011
Hyderabad, Jul 15 (PTI) The Power Grid Corporation of India will set up nine High Capacity Power Transmission Corridors in the country in the next five years at a tentative cost of Rs 58,000 crore, a top official of the national power carrier today said. "Implementation of these corridors will facilitate transmission of power from various projects to be set up in Orissa, Chhattisgarh, Jharkhand, Sikkim, Andhra Pradesh, Tamil Nadu and Madhya Pradesh," Power Grid Chairman and Managing Director S K Chaturvedi said. The projects will be completed during the 12th Plan beginning 2012-13, he said. Chaturvedi said the Power Grid currently has an order book of about Rs 1,20,000 crore to be executed in the next five to six years. The company will raise Rs 10,000 crore through bonds during the current financial year. So far, it has raised about Rs 2,000 crore. "We will raise the balance in about three tranches during the year," he said. He said the company is also working on another follow-on public offer in 2016-17, but declined to divulge the quantum of the FPO and fund size to be raised. He expressed concern over the delay in execution of power projects particularly ultra mega power projects (UMPPs) being developed in various parts of the country. "There are also concerns about fuel supplies including from Indonesia for the power projects," he said.
PTI | 07:07 PM,Jul 17,2011
Hyderabad, Jul 15 (PTI) The Power Grid Corporation of India will set up nine High Capacity Power Transmission Corridors in the country in the next five years at a tentative cost of Rs 58,000 crore, a top official of the national power carrier today said. "Implementation of these corridors will facilitate transmission of power from various projects to be set up in Orissa, Chhattisgarh, Jharkhand, Sikkim, Andhra Pradesh, Tamil Nadu and Madhya Pradesh," Power Grid Chairman and Managing Director S K Chaturvedi said. The projects will be completed during the 12th Plan beginning 2012-13, he said. Chaturvedi said the Power Grid currently has an order book of about Rs 1,20,000 crore to be executed in the next five to six years. The company will raise Rs 10,000 crore through bonds during the current financial year. So far, it has raised about Rs 2,000 crore. "We will raise the balance in about three tranches during the year," he said. He said the company is also working on another follow-on public offer in 2016-17, but declined to divulge the quantum of the FPO and fund size to be raised. He expressed concern over the delay in execution of power projects particularly ultra mega power projects (UMPPs) being developed in various parts of the country. "There are also concerns about fuel supplies including from Indonesia for the power projects," he said.
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