Source: Hindu Business Line * WPI (Wholesale Price Indiex)

DTC Bill to be introduced in monsoon session

PTI

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A file photo of the Finance Minister, Mr Pranab Mukherjee.

New Delhi, May 15: 

The Direct Taxes Code (DTC) Bill, which seeks to overhaul the 50-year-old income-tax laws, will be brought in Parliament in the monsoon session and most of the recommendations of the Standing Committee will be accepted.

The Finance Minister, Mr Pranab Mukherjee, stated this in the Rajya Sabha today as he moved the Finance Bill, 2012 for consideration and passing. It has already been approved by the Lok Sabha.

“I will have the opportunity after the Budget session is over, to go through all the recommendations (of the Standing Committee) and thereafter approval of the Cabinet, in the next monsoon session bring the DTC Bill for approval of the both the Houses,” Mr Mukherjee said.

“...and that stage many of the recommendations of the standing committee will be accepted,” he said.

The Minister said he could not go through all the recommendations the Standing Committee on DTC as the report was given on March 9 and the Finance Bill presented on March 16.

“...therefore it was quite natural that I could not take into account all major recommendations on the DTC,” he said.

The DTC Bill will have far reaching consequences on the income-tax laws in the country as it replace the Income-tax Act, 1961.

The Parliamentary Standing Committee on DTC, headed by senior BJP leader, Mr Yashwant Sinha, in its report had given a number of recommendations, including raising the income-tax exemption limit to Rs 3 lakh from Rs 1.8 lakh now.

Mr Mukherjee ruled out reopening of cases where assessment orders have been finalised following retrospective amendment in laws related to taxation of overseas deals involving Indian assets. 

Many aftershocks since 6.9 on Richter, the region’s next big one ‘could be 9’

by  Madhuparna Das : Kolkata, Mon May 14 2012, 03:59 hrs
source:indian express


Since September last year, when an earthquake of magnitude 6.9 rocked Sikkim, scientists have recorded nearly 300 aftershocks in the region and predicted the possibility of a quake up to magnitude 9. As such, they have recommended that parts of Sikkim be upgraded to Zone 5, the classification that carries the highest risk.

The seven Northeast states are in Zone 5 — Assam and Meghalaya had a magnitude 5.4 earthquake last week. Sikkim is now in Zone 4. The prediction — by reserachers of the department of geology and geophysics of IIT Kharagpur— is for a northeastern region that includes the Sikkim-Darjeeling region in particular.

“The entire northeastern zone is at present facing the threat of an earthquake from the Himalayan regions, one that has the potential of being of magnitude 9,” says Professor Shankar Nath of IIT Kharagpur. 

Scientists studying aftershocks recorded 292 tremors since the Sikkim earthquake, all in the range 1.5 to 5 and including 63 in the range 3.5-5, with 17 of these of magnitude 4.5 or higher. “We have completed part of our Sikkim-Darjeeling project. We have recommended that parts of Sikkim including Gangtok, Mangan and Singtham be updated to Zone 5 from Zone 4,” Professor Nath says.

Scientists have also sought an upgrade for parts of the Doors and Terai regions of West Bengal.

Months of study have resolved another contentious issue over which the scientists had been divided. Geo-scientists have come to agree that the earthquakes frequently hitting Sikkim and neighbouring areas of Bengal have not been induced by water reservoirs. “After the September 18 earthquake, there was a brainstorming session... we reached a conclusion that the earthquake is not reservoir-induced; therefore hydel projects are not a threat to the area.” Geo-scientists are of the opinion that the earthquakes have originated rather from tectonic shifts.

Sikkim government officials say the state has 27 hydel power projects, of which four are operational. According to professor Nath, “The projects can be affected due to earthquakes, but the projects cannot cause earthquakes.”

Professor Sugata Hazra, a senior professor of geology and head of the school of oceanographic studies of Jadavpur University said, “The seismicity in these regions has increased and these are not reservoir-induced earthquakes. So we think that the Sikkim and Bengal governments have to revise disaster management plans. If a strain is building up then the region can potentially have an earthquake of magnitude 8.5 in the near future.”

10 essential travel aids to ensure a smooth, comfortable and secure trip

Portable clothesline
Price: Rs 99
(Naaptol.com)

The biggest problem with long trips is managing laundry. You either need to forget travelling light, or prepare to go elbow deep in suds, unless you don't mind crazy hotel laundry bills. That's where hotels offering retractable clotheslines in their bathrooms are a god-sent.

Unfortunately, precious few have them, which is why something like the Travogo pegless washing line is a great thing to acquire and pack.

The 6-ft long self-securing cord can be tied up literally anywhere.

Luggage locator
Price: Rs 800- Rs 1,600

These handy gadgets help locate and identify a bag within a 60-90 ft radius. The two best-selling ones are Easy2Pick Wireless Luggage Finder and Soren Luggage Locator Pro, both easily available on eBay (free shipping) and Amazon.

Just attach the wireless transmitter tag to your luggage and hang on to the wireless key chain recognition device, which will alert you with a series of beeps and/or flashes.

Its multiple receivers can be programmed to locate several bags at once.


Neck pillows
Price: Rs 300- Rs 4,500

Sleeping on flights, train rides or car drives can be a nightmare because of the head lolling that scuttles a good nap.

These pillows, available in fabric and foam, as well as inflatable versions, prevent this by supporting the neck securely.

If you don't like the Chinese options, you can easily pick from established brands, such as Samsonite, INTEX or IMAK

Compression bags
Price: Rs 899- Rs 2,500

No matter what name these bags go by-space savers, vacuum sealed storage bags or smart bags-the fact is that it is a must-have for every savvy traveller. They essentially compress items down to 25-50% of their original size and allow consumers to double, even triple, the storage space. While foreign brands like Samsonite, Eagle Creek and Space Bags are easily available on Amazon and other such sites, for Indian options, you can try outlets like Planet Sports or buy at sites such as Playmore.in and Adventure18.com.

Cocoon Grid-it Organiser
Price: Rs 1,895
(Homeshop18.com)

What if you had a single bag that could carry everything you hold dear, from pens to pendrives and pills to phones, in an open display, and offer easy access in a hurry without the risk of slipping into the crevices of your purse or briefcase? Consider this 12x8 inch organiser, which provides endless configurations for storing your belongings. What's more, the convenient size makes it a great companion for your current laptop bag or travel case.

Steripen
Price: Rs 4,185-5,550
(Adventure18.com)

Safe drinking water is always a concern, especially if you are travelling within the country. With this pocket-sized device, you can sterilise half a litre of water under a minute, eliminating over 99.9% of viruses and bacteria that cause waterborne diseases. The classic version is powered by four AA batteries, while the smaller, lighter version uses two CR123 disposable batteries. Both promise the same safety standards using the UV light.

Noise-reducing headphones
Price: Rs 1,000 onwards

Yes, this one is a rather obvious choice, but anybody who has had to suffer bawling babies, chattering co-passengers or the irritable hum of the engine over long journeys will know that these headphones top any travel essentials list. Take your pick from brands lile Bose, Sony, Philips, Sennheiser, or the cheaper, but less effective, Chinese ones.

World Travel Adapter
Price: Rs 2,399
(Lootspot.com)

The idea is to have a universal wall adapter that eliminates the need to carry multiple chargers while travelling. The SKROSS World Travel Adapter 2, with USB charger, is a great choice. Not only is it compact, which means you don't need to worry about packing space, but promises to help travellers connect their two- and three-pole (grounded and ungrounded) devices in more than 150 countries. The dual USB top turns it into a powerful, fast charger for two USB devices at one go.

Victorinox Swiss Knife
Price: Rs 500- Rs 6,300
(basic versions)

This multi-functional knife has always been a must-have for outdoor enthusiasts, but the new avatar, which packs a flash light-and a flash drive if you can stretch your budget a bit-makes it a handy tool for any holiday. The LED light is cool enough, but the memory stick will blow your mind. It uses several layers of security, including fingerprint identification and a thermal sensor. Any attempt to forcibly open it will trigger a self-destruct mechanism that will destroy its CPU and memory chip.

Myanmar opens for business, India Inc treads cautiously 

by Devjyot Ghoshal / New Delhi May 15, 2012, 01:05 IST
source: Business Standard


Myanmar is open for business, but not everyone is ready to dive in just yet.

Foreign direct investment (FDI) into the country — one that is rich in resources but remains deeply impoverished — has grown over 100 times in the past few years. In 2010-11 alone, it soared to $20 billion from a much smaller $300 million during the previous year, according to IHS, a global information firm. However, much of this is still led by the Chinese.

Over 70 per cent of total FDI inflows came from Chinese companies in the hydrocarbon sector, IHS data indicate. Three large Chinese projects, including one that involves constructing two pipelines for transporting Myanmarese and West Asian gas into China, were worth $8.27 billion. Hong Kong entities accounted for another $5.8 billion of investments in 2010-11, followed by Thailand, South Korea, Singapore, Malaysia and Japan as other major investors.

India, on the other hand, is only the 13th largest investor, with an investment of around $189 million in five projects.

NEIGHBOURHOOD WATCH INDIA INC’S PRESENCE IN MYANMAR
Company	Project
ONGC Videsh,	Minority stakes in energy assets and
GAIL	Myanmar-China gas pipeline
Essar	Kaladan inland water transportation project
Punj Lloyd	EPC contractor for oil and gas pipeline
Tata Motors	Truck assembly unit
NHPC	Tamanthi and Shwezaye hydro power projects
Source: Companies and the Indian embassy in Myanmar

Unsurprisingly then, a renewed international interest in Myanmar, triggered by the much-awaited political reforms in a closed, frontier economy, has only evinced cautious optimism from India Inc. This is despite a smattering of large Indian firms, including ONGC, GAIL, Essar and Tata Motors, in Myanmar.

ONGC Videsh (OVL), a wholly owned subsidiary of state-run energy firm ONGC, and natural gas major GAIL have minority stakes in two offshore gas assets on Myanmar’s north-western coast, which were picked up in the last decade.

“The initial interest was in getting the gas back to India, but now most of it is being transported to China,” a GAIL spokesperson explains, adding the company also has a small stake in a gas pipeline venture in Myanmar. But, GAIL isn’t currently looking at any further opportunity, the spokesperson clarifies, as “ideally the gas (from existing assets) should have been brought to India”, which wasn’t the case. Automotive major Mahindra & Mahindra, with a significant farm equipment division that has, in the past, supplied to Myanmar through government lines of credit, admits there is business to be done across the Bay of Bengal, but is limited by the presence of a government-promoted market.

“There is a business opportunity. Myanmar is an extension of the Indian market, especially in the farm equipment sector. But, the instability is a concern. It is not a civilian market,” says Pravin Shah, chief executive of Mahindra’s automotive division and former head of international operations in the automotive and farm equipment sectors.

Punj Lloyd, one of the engineering, procurement and construction (EPC) contractors for the Myanmar-China oil and gas pipeline, sees good business opportunities in Myanmar “with many favourable economic reforms having taken place”. But, P K Gupta, director at the Gurgaon-headquartered firm, says, “To realise this huge potential for further business, it is important for all sanctions to be lifted.” The country’s resource sector, however, remains attractive. Myanmar’s proven oil reserves stand at about 216 mmbbl (million barrels) of crude oil and 16,154.65 BSCF (billion standard cubic feet) of natural gas, according to government data, with much of its assets understood to be yet unexplored. Unsurprisingly, the resource sector has emerged as one of the key reasons for much enthusiasm about the rapprochement between the country’s authorities and other western governments. So far, western sanctions had ensured that few non-Asian oil majors could enter Myanmar for exploration and production.

“Apart from the oil and gas sector, there are huge opportunities in agriculture, infrastructure and tourism sectors. Tourist arrivals, for instance, have gone up by 30 per cent in the last year, but are less than one million annually. We believe this could double in five years. So, I think there is great potential in Myanmar,” says Rajiv Biswas, chief Asia economist at IHS Global Insight.

With a large population, comprising a workforce of about 32.5 million, abundant resources, newfound investor interest and a strategic location, ensconced between China, India and the Association of Southeast Asian Nations (Asean), Myanmar is likely to see GDP growth in excess of six per cent until 2020, feels Biswas.

“But whether fully free and fair elections will happen in 2015 remains a big ‘if’. There are still a lot of risks involved, although the mood at the moment is very positive,” he adds.

For Tata Motors, the entry into Myanmar was on the back of a line of credit extended by the Indian government to set up a truck assembly facility, with an annual capacity of 1,000 trucks, which became operational last year. Although the car maker is not currently planning an expansion, it does not rule out playing a greater role in the market. “It is a country that will require automobiles and Tata Motors has a full range of offerings. There are opportunities (in Myanmar) and we will consider them at the right time,” a company spokesman says.

Not only are there risks from arbitrary executive decisions, according to IHS analyst Jan Zalewski, because of continuing opacity in the decision-making process, ethnic conflicts in certain border regions that pose a threat to supply routes passing into neighbouring countries such as China, Thailand or India. At the same time, the ongoing political transition and economic liberalisation carry their own set of risks with regard to how social movements are controlled.

Shyamal Banerjee, director at Lookeast Business Consultants, which helps Indian investors enter Myanmar, thinks Indian firms are being “over cautious”.

“Indian companies need to show to Myanmar’s authorities that they are interested in making long-term investments, but they also need more support from the Indian government. Chinese companies are being able to do so well because they obtain the tacit government support. Indian firms don’t do this, and instead expect a red carpet welcome,” he says. “When in Rome, do as Romans do.”

European Pressphoto Agency
A barber shaves a customer’s beard at a makeshift hair salon in Mayaong reserve
 forest, 25 miles from Guwahati, Assam.

Back in 1997, an Indian entrepreneur drew inspiration from Sam Walton's retail giant Wal-Mart and went on to build India's largest retail empire. Who is this man who laid the genesis of the retail revolution in India? It is none other than Mr Kishore Biyani, the Founder and Group CEO of Future Group. In fact, investors who were able to recognise the potential and invested early in the stock of Pantaloon Retail (India) Ltd saw their fortunes multiply several times.

The prospects of the retail chain seemed quite bright until Mr Biyani decided to plunge into several other businesses. Those ranging from launching an insurance company to selling mobile phone connections. As it turned out, not everything that he touched turned into gold. Moreover, in its haste to grow fast, Future Group accumulated a huge quantum of debt that became a drag on the core business. So much so that Mr Biyani recently agreed to sell out a controlling stake in his highly lucrative clothing business, Pantaloons, to the Aditya Birla Group. There are also rumours doing the rounds that he might even sell stake in Big Bazaar and another listed subsidiary Future Capital Holdings. Whether that happens or not is a different matter altogether. But the way things have unfolded certainly cannot be ignored.

Let us ask you. What is the root cause behind all this mess? In our view, the answer is the 'Shoe Button Complex'. In simple terms, the 'Shoe Button Complex' means that success in one area can give a person an illusion that he can be successful in other fields as well. Businesses often fall prey to this complex and end up burning their fingers. Do you now understand why Warren Buffett lays so much emphasis on staying within one's circle of competence? It is worth recalling that while the world rode the tech bubble of the 1990s with stocks soaring to incredible heights, Buffett stuck to his discipline. He did not invest a single penny into tech stocks. The result is that while he missed some big investment opportunities, he saved himself from the extreme losses that many suffered when the bubble burst. Even Wal-Mart, whom Mr Biyani mimicked so well always stuck to its core competency and did not enter unrelated businesses.

We believe investors have a very crucial lesson to take home. For one, stick to investing in businesses that you know and understand best. If you're putting your hard-earned money into something that you do not understand, you're simply speculating. We certainly don't think relying on chance luck is a good investment strategy. Secondly, invest in companies that operate within their circle of competence. If you sense that the management is pursuing diverse businesses purely for the sake of growth, be wary of such stocks.

written By J Mulraj

A screenshot of an archival photograph of the Parliament house under construction in New Delhi.

Speech by the President, Smt. Pratibha Devisingh Patil on the Occasion of the 60th Anniversary of the Parliament of India

Following is the text of the Speech by the President, Smt. Pratibha Devisingh Patil On the Occasion of the 60th Anniversary of the Parliament of India at the special function in Central Hall of Parliament: “I am very happy to participate in today`s function which celebrates a very significant event in the history of free India. Sixty years ago, on 13th May 1952, the Lok Sabha and the Rajya Sabhaheld their first sessions, after the completion of the first General Elections in the country. On that day, the newly elected Members of Parliament took oath, and it is fortunate that four of them - Shri Rishang Keishing who continues to be a Member of Parliament, Shri ReshamlalJangde, Shri Kandala Subrahmanyam and Shri K. Mohana Rao are here with us today. I warmly congratulate them and also all those present here. As the world`s largest democracy, India can be proud that since winning its freedom and adopting a Constitution, it has continuously walked the path of democracy. Skeptics, in those early post-Independence days, doubted whether democracy in such a large and diverse country could possibly survive. We proved them wrong. Over and over again, repeatedly, in accordance with the Constitution, representatives to Parliament, State Legislatures and Local Bodies have been chosen through electoral exercises, which have been fair and open. Our record has been remarkable and there is widespread acclaim about the tenacious manner in which we have adhered to democracy. However today, democracies of the world are operating in complex situations. Pressures are developing on account of many reasons - demands for development are louder, people are articulating their demands very vocally and many shades of opinions are emerging. There is always the requirement of finding a balance between various expectations. There are now fractured mandates. Governments are mostly coalitions and legislatures are composed of many parties. There are regional aspirations as well. The last decade has also seen an explosion of the media. Hence, democracy now functions in the midst of various new scenarios, which are internal as well as those emanating out of complex international situations, in a world that is more integrated and inter-dependent. Against this background, India is committed to take the nation forward on the path of peace, development and progress, through a democratic system of governance, while protecting the sanctity of the institutions established by the Constitution. The big challenge is for democracy to proceed towards being a vibrant but healthy democracy. It is, therefore, necessary to walk ahead carefully, with determination, so that the main aim of establishing a progressive and healthy democracy is never lost sight of. For this, various aspects are important and need to be taken into consideration. I will speak of some of them. Elections are the foundation stone of any democracy and therefore, the first pillar of any healthy democracy is sound electoral practices. Our Election Commission, as an independent entity, has performed remarkably well in organizing elections of a huge electorate. However, we must constantly improve our systems, and remove all corrupt and other malpractices from our electoral processes, and from our society. Parliament is the repository of the will of the people. Therefore, people`s growing aspirations and expectations need to be translated here into policy decisions and necessary legislation. Discussions can be difficult and divergent, but yet solutions have to be found through discussions in Parliament, and resolved through established parliamentary practices. Parliamentarians serve the people. In this connection, the words of Mahatma Gandhi in his poem entitled, `A Servant`s Prayer` are very important. He said and I quote, "As a humble servant and a friend of the masses, may we never part from those whom we wish to serve". Unquote Democracy, in the true sense of the word, also means a shared responsibility. Democracy can survive, flourish and grow when there is respect for all stakeholders, and for differing opinions, and where institutions of democracy are functioning in harmony in general. Whether it is the Legislatures, the Judiciary, the Executive, or the citizens or the media, they have a role to play but with responsibility, and they must uphold the Constitution as well as the rule of law. Democracy can be sustained when there is sensitivity to national interest, social objectives and towards each other. As Dr. Babasaheb Ambedkar said and I quote, "Democracy is not merely a form of Government. It is primarily a mode of associated living of conjoint, communicated experience. It is essentially an attitude of respect and reverence towards fellow-men." Unquote Again, democracy must be participatory. A major leap forward was the decision taken by the Parliament when it passed the 73rd and 74th Amendments to the Constitution, which provide for elected representatives from different sections of society, including our tribal people, backward classes and also women who form 50 percent of the population, to Panchayati Raj Institutions and Local Urban bodies. This expanded and deepened the reach of democracy at the grass roots level. Most importantly, we must have unity of purpose. Our ultimate aim is to have development and freedom, while preserving and protecting the age-old values of our Indian culture, and the principles of tolerance and harmony, which reflect on the image of India on the world platform. We must take a call at this juncture, after our journey of 60 years, and resolve to work collectively for this goal through a well-built democracy. As is said in a Shloka - ऐक्यं बलं समाजस्य तदभावे स दुर्बलः। which means, unity is the strength of any society and society is weak without it. Until now, India has demonstrated its unflinching commitment to democracy through a consultative and participatory approach. Democracy cannot be allowed to falter, for it is the very essence of our nationhood. It is the fruit that we are enjoying of the sacrifice of our great freedom fighters and of our long and unique independence struggle under the illustrious leadership of Mahatma Gandhi. Therefore, a historical responsibility is placed on our shoulders. We must rise to the occasion. We have made progress, we are looked upon as a nation that has much potential. We can together achieve greater heights. I would like to remind all the distinguished Members of what Swami Vivekananda said, and I quote, "Great things have been done in the past in this land, and there is both time and room for greater things to be done yet."Unquote. With the sincere efforts of all stakeholders of this generation, I hope that our chariot of democracy, surmounting every difficulty and challenge, will carry forward the nation towards progress and prosperity. With these words, I once again convey my very best wishes to all present here, and to all the people of our country on this auspicious occasion. Thank You. Jai Hind!” YSK

ENTERPRISE

How Rakesh Malhotra's Luminous Power Technologies exploited market's need of low-cost inverter

An engineering degree automatically qualifies one for the odd handyman's job at home. At least it did in my household. My father was an IAS officer and the south Delhi locality we lived in was prone to frequent power cuts. Our overused inverter would crash time and again, and my mother expected me to rectify the problem. Thankfully, machines fascinated me and I loved to tinker with them. It did not take me long to realise that this enjoyable pastime had the potential of becoming a successful business idea.

Inverters were very expensive in the early 1980s and cost around Rs 50,000 a unit. So, in between my corporate jobs, I conducted research on power inverters and tried to develop a cheaper version. After graduating from Jadavpur University in 1983, I had job hopped from Allen Bradley in Kolkata to Nelco and, finally, to Siemens Energy. In 1985, when I felt sure that I was on to a good thing, I decided to quit my job and set up my own venture, which would manufacture UPS (uninterrupted power supply) or battery-powered back-up systems. However, it wasn't till 1988 that I finally launched my company.

Since the concept of UPS was new, my father was apprehensive about my decision, but my mother supported me. Despite his doubts, my father helped me raise a seed capital of Rs 40,000 from his savings, which helped me lease a 600 sq ft space in south Delhi and employ four people. That's how Luminous Power Technologies was born.

Within 15 months, my inverter, priced at only Rs 15,000 a unit, was ready for marketing. I managed to offer the low rate because all the parts were procured locally. My first client was Modi Xerox, which placed an order for 28 units. The size of the deal was Rs 4.2 lakh, so we were off to a good start. I left nothing to chance, going myself to pitch for the deal instead of sending an employee. Before long, other deals started materialising, and by the end of the first year of operations, Luminous posted a turnover of around Rs 8 lakh and increased its headcount to eight employees. It helped that very few companies were in the UPS business at the time, but it was the strength of the product that ultimately helped me crack the market.

I am proud of the fact that my company was a pioneer in making inverters visually appealing. Since the other products in the market were very ungainly, people would keep them tucked out of sight. We, however, made innovative covers and designer trolleys that looked aesthetic, and as a result, our customers were able to install their units even in their drawing rooms. It was in keeping with our objective of selling a unique product that was also easy on the eye.

That's not to say it was smooth sailing all the way. I faced a big challenge within a few months of starting out because I had not conducted proper research before launching the product in the market. The inverter developed a defect and it resulted in a lot of complaints from clients.

However, I took care of these by visiting every client personally, bringing in the faulty products, fixing the problem and delivering them back. This not only helped meet the customers' expectations but also gathered a lot of goodwill.

Today, we supply products to 34 countries, including China, where we have also leased a factory outlet. In fact, Luminous has deliberately tried to stay asset-light by relying exclusively on the leased model for all its offices. In 1994, we started diversifying and took interest in other businesses, such as telecommunication infrastructure, knowledge process outsourcing and renewable energy, and there has been no looking back.

In June last year, the company hived off 74% of its equity holding to French energy major Schneider Electric for Rs 1,400 crore, and since then I have been trying to take a backseat in its operations. Though I am still the chairman, I have delegated the responsibility of its day-to-day running to the newly appointed managing director. I'm now devoting time to my new baby, Ncubate Capital Partners, which was founded in November 2011 and is looking at providing venture capital to micro, small and medium enterprises (MSMEs).

In India, the number of companies funding small enterprises is minuscule. Moreover, they do not provide strategic or operational talent. Most venture capital or private equity firms have industry and sectoral knowledge and the experience of funding, but they do not necessarily have the operating depth. So Ncubate was set up with the aim of exploiting this gap and providing capital, along with expertise, to the early-stage profit-generating companies. We have invested around Rs 250 crore so far and have 40 employees to handle the new venture. In the next three years, we plan to fund around 13-14 new companies.

(As told to Amit Shanbaug)  

Of late, the public sector carrier Air India (AI) has been in the news for the wrong reasons from flight cancellations to staff strikes to debt problems to bailout with taxpayers' money. Finally, the government has acknowledged the failure of the merger of AI and Indian Airlines that took place in August 2007. It is worth noting that till financial year 2006-07, both the airlines were making profits. However, as today's chart of the day shows, the combined entity has been incurring massive losses over several years in a row.

Data source: The Times of India *Figures have been summed up for Air India and Indian Airlines from FY05 to FY07. Figures from FY08 to FY12 pertain to the merged entity. #provisional figure

Sikkim to introduce model farming practices in its field

May 13,  1:46 PM With an aim to rejuvenate the dwindling yield of the Large Cardamom in Sikkim, the largest producer of this spice in the country, the State Government has decided to introduce model farming practices in this field. This will be done in some parts of the North, South and West districts. The model farming practices have been recommended by the Indian Council of Agricultural Research and the Spices Board. AIR correspondent reports that A study reveals that the Cardamom farmers in Sikkim are mostly doing traditional farming where almost no manure is used and no weeding is done. Now the State Horticulture Department is going for modern techniques where the emphasis will be on clean farms without weeds, while ensuring proper irrigation facilities during the long dry winter season. On the other hand, the North Eastern Regional Agricultural Marketing Corporation ’NERAMAC’ has succeeded, to a large extent, in ensuring remunerative price by way of auction to the Sikkim farmers for large cardamom. Some eighteen metric tones of large cardamom has been auctioned at fourteen state level auctions held at Rangpo in East district, ever since ’NERAMAC’ initiated the auction of the large cardamom in Sikkim on 16th November 2010. The NERAMAC also plans to set up a two crore rupees E-auction centre at Rangpo for facilitating an online global market for Sikkim’s large cardamom farmers. (AIR)

Fab five sectors salvage India Inc's bottom line 

Deepak Korgaonkar & Viveat Susan Pinto / Mumbai May 14, 2012, 00:52 IST




Five sectors have helped prop up the numbers for India Inc in an otherwise dismal quarter ended March. An analysis of 989 companies that account for 52 per cent of the total market capitalisation on the Bombay Stock Exchange shows net profit growth of 2.7 per cent over the previous year was reported mainly due to strong profit numbers registered by players in banking, cement, information technology (IT), pharmaceuticals and fast moving consumer goods (FMCG).

Take these out, and the net profit of the sample size sees a substantial decline — as much as 9.6 per cent for the quarter.

What’s worrying is the quality of overall earnings. In a May 12 report, Dipojjal Saha of Edelweiss Securities says, “For companies within our coverage universe which have declared results so far, year-on-year earnings growth came in at three per cent (the Edelweiss expectation was four per cent). The disappointment is on the core earnings front, as some part of the earnings surge may have been driven by higher other income (e.g. PSU banks, RIL and Maruti Suzuki). For companies that have declared results so far, we estimate that other income as a proportion of sales is at 2.7 per cent, which is a multi-quarter high (11 quarters).”

Saha adds, “Margins continued to disappoint, contracting 320 basis points year-on-year. Even if balance earnings (of remaining companies, which are yet to announce results) were to come in line, earnings growth for our coverage universe would be 3-3.5 per cent year-on-year, implying a fifth consecutive quarter of sub-10 per cent earnings growth.”

Just how important the five sectors have been to India Inc’s performance in March 2012 quarter can be gauged from this: Of 989, as many as 229 companies have reported a net loss, while another 212 firms have reported a drop in net profit. These companies are all out of the fab five list.

So, how did these entities in the five key sectors manage to sustain profit growth at a time when inflation as well as interests costs have been biting hard?

In FMCG, for instance, analysts attribute this trend to consistent price hikes taken through the quarter as well as the full year ended March. On average, companies took up product prices by at least 5-7 per cent during each quarter for the fiscal ended 2012. That resulted in overall profit growth of 27 per cent for FMCG companies as a whole.

Sunil Duggal, CEO, Dabur India, says the strategy has been to take measured hikes rather than pass on all of the commodity inflation in one go. “Who wants to add to the general inflation prevalent around?” he asks.
Source:ET

Wisdom for Right Action

 

FOWAI  FORUM

 

invites you for a  Spiritual Retreat

 UNDERSTANDING 

“LIVING AND DYING”

Talks by

Swami Chidananda

 At

Kudal

‘Sarsolidham’ Durgawad, At Post-Nerur, Taluka-Kudal, District-Sindhudurg. Maharashtra

Thursday, 15th November 2012 through Tuesday, 20th November 2012

 

Study Texts:

Kathopanishad Chapter II and Bhagavad Geeta  Chapter 2 : Verses 54 – 72

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Dalai Lama: China may have plotted to poison me

10:24 a.m. CDT, May 13, 2012

LONDON (Reuters) - Tibet's Buddhist leader, the Dalai Lama, fears China may have plotted to kill him by training female agents with poison in their hair and on their clothing, he told Britain's Sunday Telegraph newspaper.

China has ruled Tibet since 1950, and the Chinese government has repeatedly accused exiled Tibetans, including the Dalai Lama, of stoking dissent against its rule. The spiritual leader fled to India in 1959 after a failed uprising.

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Last year he was warned that Chinese agents had trained Tibetan women to kill him, the Sunday Telegraph reported.

Asked about the assassination plot, the Dalai Lama said:

"Oh yes. In the hair poisoned and scarf poisoned. So they say they're sick, supposed to seek blessing from me. And my hand touch. That kind of information we received."

"I don't know whether 100 percent correct or not. There is no possibility to cross-check," he added, speaking in broken English in a video posted on the Telegraph's website.

The Dalai Lama's comments follow a spate of self-immolations and protests against Chinese control in the country's Tibetan-populated areas, prompting the rulingCommunist Party to tighten security.

The 76-year-old Nobel Peace Prize winner was expected to visit London's St Paul's Cathedral on Monday to receive the $1.7 million Templeton Prize for his work affirming the spiritual dimension of life.

(Reporting by Mohammed Abbas; Editing by Mark Heinrich)

PM’s Address in Lok Sabha on 60th Anniversary of the First Session of the Parliament

Following is the text of the Prime Minister, Dr. Manmohan Singh’s address in Lok Sabha on the occasion of 60th Anniversary of the first session of the Parliament: “I convey my warm congratulations to you, the members of this august House and the people of India on the momentous occasion of the 60th anniversary of the first session of the Parliament. The Lok Sabha is a true representation of the unique diversity and genius of the Indian people. Its members have come from every region, community, religion and strata of society. Some of them have left their mark with their masterly rhetoric, others with their earthy wisdom. Whether from the Left or the Right, from the government or treasury benches, this House has voiced the tribulations of ordinary Indians and provided succor to them by enacting laws that translated the social and economic ideals of our nation into practical reality. What the Constitution envisioned Parliament translated into action. As we look back over these years, we feel a sense of quiet satisfaction that this august institution representing the will of the sovereign has indeed lived up to the ideals of the founding fathers of our republic. A number of countries in Asia, Africa and South America who liberated themselves from the yoke of imperialism in the 1940s and 1950s either succumbed to the scourge of military dictatorship or the tyranny of one party rule. India, on the other hand, has maintained an unbroken democratic tradition sanctified by fifteen cycles of general elections and many scores of state and local body elections. This august chamber has scripted the development of our nation through debate and discourse tempered by the twin imperatives of idealism and pragmatism. The House has passed landmark legislations that have deepened the democratic roots of our polity and furthered our ideal of building a nation in which each citizen has an equal opportunity to social and economic fulfillment and cultural enlightenment. In recent years, we have empowered our citizens by providing them the rights to information, education and minimum employment. We have taken affirmative measures to help the weaker sections of our society including the Scheduled Castes, Scheduled Tribes, Other Backward Classes, minorities and women that I know is an unfinished agenda. In times of calamity or crisis, our Parliament has always demonstrated the ability to reflect the collective resolve of our nation and show solidarity with the people and the government. Be it the external aggressions of 1962, 1965, 1999 or the glorious moments of 1971 this institution surmounted political partisanship to reflect the common aspirations and sentiments of our people. However, as we look ahead, this occasion should also become the moment for some candid and serious introspection. The manner in which we have conducted our affairs, especially over the past couple of years has created a sense of frustration and disillusionment among the people. The daily routine of disruptions, adjournments and shouting in the House are leading many outside to question the efficacy of this institution and its place in public affairs. If we are to restore the prestige of this institution, each and every one of us must lead by example. We need to resolve that the Rules of Procedure and conduct that we have collectively evolved would be honoured in letter and spirit. Unless we can find some way to resolve the growing impasse in the functioning of Parliament, public disenchantment will only grow. The leaders of political parties should sit together to find ways to raise issues, small or big, and air differences in a manner that does not stall Parliament at every occasion. I believe that we should also reflect on how we should conduct the affairs of the State in which each of us plays a responsible role. Democracy is based on the notion of a popular mandate, but it should not be construed as a populist mandate. I believe that a mature democracy is one that balances the daily pressures of politics against the long-term needs of development. These conflicting demands, between the here and now of electoral politics, and the requirements of the long run that development imposes, can be and must be balanced. We all have a sacred and solemn responsibility to the people who have elected us. But equally we bear a moral responsibility to do what is right by the generations still to come. We must therefore always keep in mind that our conduct and the actions we take here today determine the state of the nation we will bequeath to our children and grandchildren. In conclusion, I wish to say that I am optimistic that the innate wisdom of our people and the strength of our democratic institutions will guide us on the right path to building a secure and prosperous India.”

National Travel and Tourism Week

President Obama pushes tourism as job-creator

By Tim Devaney / The Washington Times

Saturday, May 12, 2012
   
As part of National Travel and Tourism Week, the Obama administration on Thursday announced plans to boost tourism in America by attracting almost twice as many foreign visitors over the next decade.

"Tens of millions of tourists from all over the world come and visit America every year," President Obama said in a statement. "They stay in our hotels, they eat at our restaurants, they visit our attractions, and they help create jobs. At a time when too many Americans are still looking for work, we need to make it easier for more people to visit this country and keep our economy growing."

Commerce Secretary John E. Bryson and Interior Secretary Kenneth L. Salazar outlined for reporters the White House’s new National Tourism and Travel Strategy, calling the plan a "blueprint" for expanding travel to and within the United States.


Under the plan, foreign visitors would gain easier access to the country with improvements to visa processing, expansions of the Visa Waiver Program and expansion of trusted traveler programs.

The goal is to attract 100 million international visitors annually who would spend an estimated $250 billion each year by the end of 2021. This could help the industry add an estimated 2.1 million to 3.3 million jobs.

That’s a dramatic increase from the 62 million foreign travelers who spent a record $153 billion last year.

"We want the world to know that there has never been a better time to visit the U.S.," Mr. Bryson said. "America is truly open for business."

Tourism remains one of America’s most important services industries, he said, accounting for 25 percent of total service exports.

"At the same time, we will also encourage Americans to travel more within the U.S. to see all our country has to offer," Mr. Bryson said.

The initiative comes as the United States has been losing ground in recent years in the international tourism market. America’s market share of worldwide tourist spending fell to 11 percent in 2010, down from 17 percent in 2000 -- more than a 30 percent decline.

Many tourists were afraid to travel to and within the United States after 9/11. And many others who weren’t afraid to travel were annoyed by the heightened security that made it difficult to get into the country. That contributed to a $13.3 billion decline in travel and tourism in 2001 over the previous year, according to the Commerce Department.

That Great Recession didn’t help, either. In 2009, travel and tourism declined by 15 percent, by $21.1 billion, from the previous year according to the Commerce Department.

But 2011 was a bit of a comeback year for America. The United States generated $1.2 trillion in total tourism, including both international and domestic travelers, which was up 3.5 percent from the previous year, a number that outpaced the 1.7 percent growth rate of the overall U.S.economy and supported 7.6 million jobs.

Mr. Salazar believes the country can build momentum by promoting American landmarks like the Grand Canyon and Yellowstone National Park.

"Tourism has the promise of being a great economic driver for the United States," he said. "Our destinations are known throughout the world."