Anupam Nath/Associated Press
Young
Assamese dancers perform the Bihu,
a folk dance from Assam, during Rongali Bihu
celebrations, the festival
which marks the Assamese new year and the onset of
spring.
Saturday, April 14, 2012
Sikkim gets marginal hike in funds for annual plan
By IANS,
13 April 2012
New Delhi : The Planning Commission Friday approved a marginal hike in the annual plan outlay for Sikkim at Rs.1,500 crore to help the state step up funds for areas like health, social welfare and rural development.
The plan panel also agreed to release additional Rs.377 crore under the Prime Minister's Relief Fund to help the state rebuild its infrastructural that was damaged in the major earthquake that rocked the region in September last year.
The allocation was approved during a meeting between Planning Commission Deputy Chairman Montek Singh Ahluwalia and Sikkim Chief Minister Pawan Chamling, during which the state drew praise for logging an 8.95-percent growth during the past five years, against the national average of 7.9 percent.
Chamling said the poverty level in Sikkim had also reduced from 30.9 percent in 2004-05 to 13.1 percent in 2009-10 due to intensive alleviation programmes adding the state had an ambitious plans to completely eradicate poverty soon.
Among other areas, the chief minister also listed the state's progress in agriculture.
"Sikkim will be a totally organic state by 2013. Out of total cultivable land of 58,168 hactares, 8,168 hectares has already been certified as organic. Another 50,000 hactares will be taken up in phased manner, of which 39,000 hectares is under conversion."
As regards power, Chamling said the state has 8,000 MW of hydro electric potential out of which as much as 5,000 MW capacity had already been allocated to the central sector and private sector.
"National Hydro-Electric Power Corporation has recently completed 510 MW capacity Teesta Stage-V Project, in addition to 60 MW Rangit State-III hydro power station," the chief minister told the meeting.
According to him, tourism had emerged as largest service industries in the state and a target had now been fixed to attract five million tourist by 2015 by better planning, aggressive publicity and world class tourism infrastructure.
The picturesque state, which shares its borders with Nepal to the west, China to the north and east, Bhutan to the southeast, and West Bengal to the south, attracted one million tourist last year, which had doubled in last years.
"I would like to say that the Char Dham complex, known as Siddheswara Dham, has been conferred the national award as the most innovative and unique tourism project in 2010-11 by the Union government," Chamling said.
On an average, the Char Dham in the state receives 2,000-3,000 visitors every day that increases to 20,000 tourist on special days.
The state government has sought funding from the Planning Commission for the Budha park at Ravangla, statue of Chen Regiz in Peling and statue of Reclining Budha for developing the tourism infrastructure in the state.
In education, the state government launched a scheme in 2010 under which village children are fully funded to study in prestigious public and convent schools such as the Scindia School in Gwalior, Springdales in Dehradun and Pinegrove in Dharampur.
The state government provides full scholarship with a budget of around Rs.7 crore for the current fiscal. A target has been fixed to sponsor 1,000 Sikkim students to global reputed schools during this year.
13 April 2012
New Delhi : The Planning Commission Friday approved a marginal hike in the annual plan outlay for Sikkim at Rs.1,500 crore to help the state step up funds for areas like health, social welfare and rural development.
The plan panel also agreed to release additional Rs.377 crore under the Prime Minister's Relief Fund to help the state rebuild its infrastructural that was damaged in the major earthquake that rocked the region in September last year.
The allocation was approved during a meeting between Planning Commission Deputy Chairman Montek Singh Ahluwalia and Sikkim Chief Minister Pawan Chamling, during which the state drew praise for logging an 8.95-percent growth during the past five years, against the national average of 7.9 percent.
Chamling said the poverty level in Sikkim had also reduced from 30.9 percent in 2004-05 to 13.1 percent in 2009-10 due to intensive alleviation programmes adding the state had an ambitious plans to completely eradicate poverty soon.
Among other areas, the chief minister also listed the state's progress in agriculture.
"Sikkim will be a totally organic state by 2013. Out of total cultivable land of 58,168 hactares, 8,168 hectares has already been certified as organic. Another 50,000 hactares will be taken up in phased manner, of which 39,000 hectares is under conversion."
As regards power, Chamling said the state has 8,000 MW of hydro electric potential out of which as much as 5,000 MW capacity had already been allocated to the central sector and private sector.
"National Hydro-Electric Power Corporation has recently completed 510 MW capacity Teesta Stage-V Project, in addition to 60 MW Rangit State-III hydro power station," the chief minister told the meeting.
According to him, tourism had emerged as largest service industries in the state and a target had now been fixed to attract five million tourist by 2015 by better planning, aggressive publicity and world class tourism infrastructure.
The picturesque state, which shares its borders with Nepal to the west, China to the north and east, Bhutan to the southeast, and West Bengal to the south, attracted one million tourist last year, which had doubled in last years.
"I would like to say that the Char Dham complex, known as Siddheswara Dham, has been conferred the national award as the most innovative and unique tourism project in 2010-11 by the Union government," Chamling said.
On an average, the Char Dham in the state receives 2,000-3,000 visitors every day that increases to 20,000 tourist on special days.
The state government has sought funding from the Planning Commission for the Budha park at Ravangla, statue of Chen Regiz in Peling and statue of Reclining Budha for developing the tourism infrastructure in the state.
In education, the state government launched a scheme in 2010 under which village children are fully funded to study in prestigious public and convent schools such as the Scindia School in Gwalior, Springdales in Dehradun and Pinegrove in Dharampur.
The state government provides full scholarship with a budget of around Rs.7 crore for the current fiscal. A target has been fixed to sponsor 1,000 Sikkim students to global reputed schools during this year.
Sikkim Plan for 2012-13 Finalized |
| The Annual Plan for the year 2012-13 for the state of Sikkim was
finalised here today at a meeting between Deputy Chairman, Planning Commission,
Mr. Montek Singh Ahluwalia and Chief Minister of Sikkim,Shri Pawan Chamling. The
plan size has been agreed at Rs. 1877 crore. This includes Rs 377 crore as part
of the Prime Minister’s package for reconstruction of infrastructure damaged in
recent earthquake. In his comments of the performance of the State, Deputy Chairman Planning Commission Mr Ahluwalia appreciated the development efforts and pointed that the human development indicators were among the best in the country. He said the growth in agriculture during eleventh plan was better than the national average. The Government was also appreciated for giving priority to organic farming, horticulture and floriculture. On plan performance, it was pointed that the GSDP at Constant Prices rose from Rs. 173932 lakhs in 2004-05 to Rs. 334311 Lakhs in 2009-10 and likely to increase to the level of Rs. 364218 Lakhs in 2010-11 showing an annual growth of 8.95 percent. Likewise the Per Capita GSDP at constant prices rose from Rs. 30730 in 2004-05 to Rs. 55441 in 2009-10 and likely to increase to the level of Rs. 59806 in 2010-11 showing an annual growth of 7.87 percent. Mr. Ahluwalia said tourism is the largest service sector with high growth potential and has attained the top priority sector due to its vast spinoff effects contributing to the overall development through sustained fiscal receipts and employment generation. Sikkim endowed with unparallel natural beauty, clean environment and picturesque location is one of the most potential State for tourism sector to flourish. In Sikkim, tourism has attained a consistent growth. The proactive tourism vision of the State Government, insurgency free environment and friendly people has been one of the major factors in upsurge of tourism in the state. The general trends in rural development over the last two decades indicate that human development indicators like literacy, life expectancy, infant mortality, access to health, sanitation and rural infrastructure like roads, bridges, electricity, water, toilets, houses, school, hospitals, telecommunication etc. has been increasingly universalized. However there is a declining trend in terms of relative contribution of agricultural sector to the economy and also as an employer. Briefing the Commission, the Chief Minister said that over the past two decades, the state has adopted the path of sustainable development. It is the policy of the Government to develop rural areas of Sikkim at par with towns and cities by providing all basic and modern amenities and sustainable employment opportunities in rural areas with a vision to develop Sikkim as an eco-city State. He said the recent earthquake has caused massive damage to the infrastructure and the Development process of Sikkim has suffered a major setback and programmes can only be successful with liberal financial assistance from the Government of India in the 12th Five Year Plan and particularly in the Annual Plan 2012-13. NNK/MD (Release ID :82260) |
Friday, April 13, 2012
| Shiva Thapa, Sumit Sangwan bag gold in Olympic Qualifiers |
Source: All India Radio Teenage boxers Shiva Thapa and Sumit Sangwan struck gold on Thursday to round off a brilliant performance by India in the Asian Olympic Qualifiers in Astana, Kazakhastan. With this, India bagged three London tickets to make it an unprecedented seven strong contingent for the quadrennial extravaganza. Eighteeen year old Shiva Thapa, who is the youngest Indian boxer to qualify for the Olympics, defeated Syria's Wessam Salamana 18-11 in the 56 kilogram category, to clinch his second successive senior International gold medal. Nineteen year old Sumit Sangwan beat Tajikistan's Dzhakon Qurbanov 14-9 in the 81 kilogram category to bag his maiden senior international gold in his debut event. Besides these two, the other five male boxers who will travel to the Olympics are :Vijendra Singh ( 75 kilogram category)L.Devendro Singh (49 kilogram category) Jai Bhagwan (60 kilogram category), Manoj Kumar (64 kilogram category) and Vikas Krishan ( 69 kilogram category) . |
Law in Rajasthan to attach properties of corrupt public servants
The Rajasthan Assembly on Thursday passed a significant anti-corruption legislation which would facilitate the government to confiscate and attach any disproportionate property amassed by corrupt public servants. The Rajasthan Special Courts Act, 2012 passed in the Assembly by a voice vote is modelled after existing legislation in Bihar and Orissa.
The legislation brings everyone who draws salary from the government, including the Chief Minister, under its purview. The judicial officers are also included. If the Special Court finds the public servant whose property is confiscated innocent later, the same would be returned to the person with 5 per cent interest on its value.
Development of North-Eastern Region by enhancing the Training/Education capacity in the Information, Electronics and Communications Technology area
The Union Cabinet today approved the initiation of the project entitled ‘Development of North Eastern Region by enhancing Training and Education Capacity in the Information, Electronics and Communication Technologies (IECT) area’ to be implemented by National Institute of Electronics and Information Technology (NIELIT), an Autonomous Society under the Department of Electronics and Information Technology. The total budget outlay of the project is Rs.388.68 crore (Capital Expenditure Rs.266.25 crore and Recurring Expenditure Rs.122.43 crore). The Department’s contribution in the form of grants-in-aid is Rs.347.88 crore spread over a period of five years.
The project would result in enhanced capacity in terms of training/education in IECT sector for the youth of North-Eastern Region. The availability of trained professionals in the IECT area is expected to attract entrepreneurs/industrial houses to set up industries in the region, leading to its overall socio-economic development.
The project would benefit the student community/ youth , faculty members, entrepreneurs, local industry, government employees, educated employed, various disadvantaged sections of the society (viz. Scheduled Castes/Scheduled Tribes/ Other Backward Classes/ minorities, school dropouts persons with disabilities, economically weaker sections, etc.) of the North-East Region, etc. About 45,000 students are expected to be enrolled/trained in various long-term/short term courses in five years in the proposed six upgraded centres and 12 extension centres.
Background:
The ‘North-Eastern Region Vision 2020’ document while analysing the population growth in many of the North Eastern States indicates that a substantial proportion of the population is below 14 years. It indicates that education would be the most critical input to empower the young people. The document also mentions that human resource is the single most promising development asset of the North East. The literacy level in the region is above the national average. However their potential is not being utilised due to inadequate access to quality education, vocational education, training in languages, training in computers and information technology, technical, entrepreneurship, and soft skills. This project aims at capacity building in the North-East that would contribute in attracting IECT industries and generate a pool of jobs leading to overall socio-economic development of the region.
Thursday, April 12, 2012
Need to Broaden the Scope of India-Bangladesh Engagement: Perspectives from Gangtok and Dhaka
By Shristi Pukhren, IDSA
After Manmohan Singh and Sheikh Hasina signed the 10 point agreement in Dhaka
on September 06, 2011, young scholars and professionals from both the countries
met under the banner of India-Bangladesh Studies in Gangtok and Dhaka from
September 9-15, 2011. The objective was to exchange their views and ideas on the
future dynamics of India-Bangladesh relationship. The programme was jointly
organised by the Jamia Millia Islamia of New Delhi, Dhaka University and Sikkim
University.
Notwithstanding the failure to reach a water sharing agreement on Teesta
River, young delegates from both the countries discussed various issues, such
as, hydro-electricity, road connectivity, waterways, rail and air transport,
tourism and border management, considered as critical to improving the bilateral
relationship. The significance of the growing Indo-Bangladesh relations in the
context of South Asian region was brought out by stating that except for the
political demarcations nothing else can limit the hearts of the South Asian
communities. Underlining this message was the geo-strategic significance of
South Asia and Southeast Asia that can be harnessed if the connectivity between
India and Bangladesh is synergized, taking into account the human security
dimensions and the need to accept one another as equal at the negotiation table.
The main concern of the delegates during this interactive session was the absence of ‘people to people’ approach which was regarded as the missing link in foreign relations in South Asia. The main consensus was the absence of people-centric approaches in formulation of foreign policies. Hence, better relations between India and Bangladesh could be established only if the two countries emphasise on ‘people to people’ approach. In this regard, the concept of ‘Personography’, as an approach, which puts people as the centre of connectivity, was an element of discussion. In the present era of globalised world, the connectivity in terms of people-to-people contact, and free flow of goods and services, was considered as inevitable. It was stated that the application of the concept of personography could ease the state-centric notion of security and bridge the various differences, including the human security related dilemmas, commonly faced by both India and Bangladesh. Here, the role of civil society, academic institutions, NGOs, media and information technology are noteworthy in formulating and shaping policies.
The strategic location of northeast India has been well factored into the ongoing Indo-Bangladesh talks. It is now acknowledged that enhancement of physical and social connectivity between the two countries vis-Ã -vis northeast India would generate mutual benefits. Earlier, before independence, the northeastern region was connected to the mainland through broad roads, rails and inland waterways. The creation of East Pakistan (later Bangladesh) led to the isolation of the region with only a narrow strip of land, the Siliguri Corridor, with an approximate length of 100 km and width of 21 km in the east and 33 km in the west, connecting it to mainland India. The region lost its centuries-old transit routes and access to the port of Chittagong (Bangladesh), so was its access to markets in Bangladesh. Over the years, northeast India suffered from continuing isolation and economic backwardness. These geo-political developments turned it into a landlocked region along with Bhutan and Nepal as most of the routes went with East Pakistan. As a result, the lines of transportation between Kolkata and Agartala were extended to 1600 km from the earlier distance of 400 km. Thus, opening of transit routes between India and Bangladesh would not only reduce transportation cost but also provide easy access to markets within and outside India for its wide range of products, particularly floriculture and horticulture. Further, extending northeast India’s connectivity with Southeast Asia will also facilitate regional development and at the same time ensure huge markets for the Bangladeshi products.
Moreover, a viable Indo-Bangladesh cooperation will enhance the prospect of sub-regional cooperation since both the countries are part of the South Asian Association for Regional Cooperation (SAARC), Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) and Forum for Regional Economic Cooperation among Bangladesh, China, India and Myanmar (BCIM). An inter-regional connectivity comprising of India’s northeast, Bangladesh, Myanmar, Tibet Autonomous Region (TAR) and Yunnan Province of China can be established. Such prospects of sub regional cooperation will inevitably add more meaning to India’s Look East Policy.
The young scholars and professionals from both the countries envisaged the need to strengthen bilateral agreements by incorporating various stakeholders. In view of the fact that sharing river water has been an issue of contention between the two countries, it was felt that involvement of all the stakeholders in bilateral agreements could help arrive at an amicable solution. Though the agreement on water sharing could not be reached during the Indian Prime Minister’s Dhaka visit, there was consensus on the need to take the talks forward in the near future. As India and Bangladesh depend on rivers for livelihood, it is in their mutual interest, both for the upper and lower riparian states, to look beyond narrow interests and engage in numerous activities which can prove mutually beneficial. In this regard, the idea of joint hydrological survey of rivers, water management, basin management and flood forecasting could be put in practice.
The way forward is to focus on people-to-people connectivity which can actually transform the relationship between India and Bangladesh and take it to a higher level of cooperation and understanding. Greater focus on a more extensive and detailed sharing of information in the regional network is required, and the current political climate is appropriate to work towards a win-win situation in the Indo-Bangladesh relationship with the hope of establishing a more stable South Asia.
The main concern of the delegates during this interactive session was the absence of ‘people to people’ approach which was regarded as the missing link in foreign relations in South Asia. The main consensus was the absence of people-centric approaches in formulation of foreign policies. Hence, better relations between India and Bangladesh could be established only if the two countries emphasise on ‘people to people’ approach. In this regard, the concept of ‘Personography’, as an approach, which puts people as the centre of connectivity, was an element of discussion. In the present era of globalised world, the connectivity in terms of people-to-people contact, and free flow of goods and services, was considered as inevitable. It was stated that the application of the concept of personography could ease the state-centric notion of security and bridge the various differences, including the human security related dilemmas, commonly faced by both India and Bangladesh. Here, the role of civil society, academic institutions, NGOs, media and information technology are noteworthy in formulating and shaping policies.
The strategic location of northeast India has been well factored into the ongoing Indo-Bangladesh talks. It is now acknowledged that enhancement of physical and social connectivity between the two countries vis-Ã -vis northeast India would generate mutual benefits. Earlier, before independence, the northeastern region was connected to the mainland through broad roads, rails and inland waterways. The creation of East Pakistan (later Bangladesh) led to the isolation of the region with only a narrow strip of land, the Siliguri Corridor, with an approximate length of 100 km and width of 21 km in the east and 33 km in the west, connecting it to mainland India. The region lost its centuries-old transit routes and access to the port of Chittagong (Bangladesh), so was its access to markets in Bangladesh. Over the years, northeast India suffered from continuing isolation and economic backwardness. These geo-political developments turned it into a landlocked region along with Bhutan and Nepal as most of the routes went with East Pakistan. As a result, the lines of transportation between Kolkata and Agartala were extended to 1600 km from the earlier distance of 400 km. Thus, opening of transit routes between India and Bangladesh would not only reduce transportation cost but also provide easy access to markets within and outside India for its wide range of products, particularly floriculture and horticulture. Further, extending northeast India’s connectivity with Southeast Asia will also facilitate regional development and at the same time ensure huge markets for the Bangladeshi products.
Moreover, a viable Indo-Bangladesh cooperation will enhance the prospect of sub-regional cooperation since both the countries are part of the South Asian Association for Regional Cooperation (SAARC), Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) and Forum for Regional Economic Cooperation among Bangladesh, China, India and Myanmar (BCIM). An inter-regional connectivity comprising of India’s northeast, Bangladesh, Myanmar, Tibet Autonomous Region (TAR) and Yunnan Province of China can be established. Such prospects of sub regional cooperation will inevitably add more meaning to India’s Look East Policy.
The young scholars and professionals from both the countries envisaged the need to strengthen bilateral agreements by incorporating various stakeholders. In view of the fact that sharing river water has been an issue of contention between the two countries, it was felt that involvement of all the stakeholders in bilateral agreements could help arrive at an amicable solution. Though the agreement on water sharing could not be reached during the Indian Prime Minister’s Dhaka visit, there was consensus on the need to take the talks forward in the near future. As India and Bangladesh depend on rivers for livelihood, it is in their mutual interest, both for the upper and lower riparian states, to look beyond narrow interests and engage in numerous activities which can prove mutually beneficial. In this regard, the idea of joint hydrological survey of rivers, water management, basin management and flood forecasting could be put in practice.
The way forward is to focus on people-to-people connectivity which can actually transform the relationship between India and Bangladesh and take it to a higher level of cooperation and understanding. Greater focus on a more extensive and detailed sharing of information in the regional network is required, and the current political climate is appropriate to work towards a win-win situation in the Indo-Bangladesh relationship with the hope of establishing a more stable South Asia.
|
SC upholds constitutional validity
of RTE Act 2009
|
Apr 12, 1:56 PM
The Supreme Court today upheld the constitutional validity of the Right to Education (RTE) Act, 2009, which mandates 25 per cent free seats to the poor in government and private unaided schools uniformly across the country. The apex court clarified that its judgement will come into force from today and, hence, it will not apply to admissions granted after the enactment of the legislation. In other words, the apex court said the judgement will only have a prospective affect and not retrospective affect. By a majority view, a three-judge bench of Chief Justice S H Kapadia and justices K S Radhakrishnan and Swantanter Kumar said the act will apply uniformly to government and unaided private schools except unaided private minority schools. Upholding the provisions of the law, the apex court said the impugned act should be construed as child specific.( SOURCE: ALL INDIA RADIO) |
Enterprises:
Looking for wealth in the recycle bin
Business Line Recycling
at a unit in Mumbai. - Photo: Paul Noronha
As e-waste management becomes mandatory, a nascent industry in reverse logistics looks forward to big growth.
Recently, Chennai-based homemaker Priya Rao exchanged her
10-year-old fancy food processor for an ordinary but more powerful mixer
grinder. She got Rs 1,000 off on it – she had paid almost Rs 9,000 for the old
one. It was one of the many space-occupying lesions in her house she couldn't
part with or didn't know how to dispose of – her irreparable coffee bean grinder
from a company no longer in the market; a soda-maker purchased 15 years ago …
the list went on and on.
A familiar situation? It must be, for many of you. But on the flip
side, these old and unused goods are poised to become an important component of
a currently fledgling business in India – reverse logistics (RL). RL is the
movement of goods back from the consumer to the manufacturer. With the
Government making e-waste retrieval and collection systems mandatory from May 1
this year, putting the onus on manufacturers, those in the RL business hope to
see a more organised flow back.
Reverse Logistics Company (RLC), Attero Recycling and Future
Supply Chain are some of the companies in the organised RL sector. The first two
have big operations in consumer durables, the latter mostly in apparel and
furniture.
New – and used
GreenDust is an online and brick-and-mortar RL venture which sells
returned products and factory seconds languishing in manufacturers' warehouses.
Hitendra Chaturvedi, Managing Director of Reverse Logistics Company (RLC), which
owns the brand, says the return rate of products in India is 5 per cent. (In the
West, it's 8-10 per cent as return policies are more lenient.) These could range
from mildly flawed (scratches, stains) to severely damaged products returned at
any stage of the supply chain, or those consumers have exchanged for newer ones.
“Original equipment manufacturers,” says Chaturvedi, “are
fantastic at making new products but suck at returns. About 70-75 per cent of
the time, processing returns is costlier than making new products – there are
costs attached to transport, warehousing, people, service, call centre,
inventory carrying and a capital cost as well. Companies don't realise a return
could be used for profit and to competitive advantage.”
Prices on GreenDust vary with category – factory second,
refurbished, obsolete/surplus. Products come with warranties, and often,
substantial discounts on MRPs. Browsing, one comes across a mobile phone that's
marked 72 per cent down because it's obsolete, a laptop that is Rs 10,000
cheaper than the MRP (factory second), and a refrigerator that's 37 per cent
cheaper (refurbished), among others. Sometimes extended warranties too are
offered. There are about 50 GreenDust outlets in Tier 2 and 3 cities such as
Agra, Mathura, Lucknow, Jaipur and Bhiwandi that sell such products, and RLC is
scaling up as it intends to start a buyback programme for consumers and
corporates who will be given credit towards buying a GreenDust product. RLC has
collection centres and repair facilities.
Attero Recycling, founded in 2007, processes brown goods, CFL
lamps and IT products from which it removes and disposes of hazardous elements
such as mercury and extracts precious ones such as gold, silver, copper,
palladium and rare earths which it sells in the market. (Incidentally, this will
be the way to ‘mine' metal in the future, says co-founder Nitin Gupta. To
illustrate, he says that at the rate at which copper is being mined today, the
world will run out of it in just 66 years.)
Used products such as computers, servers and phones are repaired
and donated to NGOs, resold to the employees of institutions that have discarded
them, or sold at a discount to colleges and schools. Atterobay.com enables
people to sell off their mobile phones to Attero Recycling and even offers to
pick them up from homes.
Reverse logistics in India today is a highly unorganised sector,
says RLC's Chaturvedi. Some big manufacturers, he says, currently deal with as
many as 400 scrap dealers. It could be an enormous liability, he adds. Under the
new rules, a manufacturer will be held responsible if an ignorant or uncaring
scrap dealer does a shoddy job and causes a health/environmental hazard.
Wealth in waste
RLC's client, Ravi Aggarwal, Managing Director of the Delhi-based
Fabiano which markets kitchen appliances, says, “About 1,000 sq. ft. of our
office in a prime location was being occupied by these things.” They couldn't
easily bring themselves to sell them off as scrap, either. “We're saving a lot
of costs by letting someone else manage it but more than that, we're getting rid
of a big headache,” he says. Fabiano has since increased asset recovery by two
times. And the cash locked in the returned asset is used for business growth.
Anshuman Singh, Managing Director and CEO, Future Supply Chain,
says they are able to recover a “huge value” by having an RL operation. The
Future group carries out RL processes in apparel, furniture and electronics,
over five RL centres. The first two categories account for the bulk of them.
“In apparel, we're able to salvage about 90 per cent of the value
but we pass on discounts of 30-40 per cent to the customer,” he says. The
refurbished clothes are sold in Pantaloons' factory outlets and Lootmart. In
furniture, the discounts aren't so high.
It's a complicated business – an RL network involves at least 12
more steps than forward logistics. Attero's Gupta says last-mile delivery is a
struggle for many marketers, especially in e-commerce – and having to go and
pick up rejects from customers, with the product condition being revealed only
at the very last minute, are just a sampling of the difficulties the RL
businesses will face.
The e-waste management market in India, says Gupta, is around half
a billion dollars and growing at 25 per cent. Of Attero's revenues, 90 per cent
comes from recycling and 10 per cent from selling refurbished goods. Green
Dust's Chaturvedi hopes to make Rs 500 crore three years from now – his current
turnover is Rs 100 crore.
Pay to recycle
In the West, and in Japan, consumers pay a small recycling fees –
it is included in the cost of the products or could be charged at disposal time.
In India, manufacturers are still grappling with the implications of the e-waste
management rules, says Giraj Sharma, an independent brand consultant who advises
several companies. The first effect, he says, is very likely a 3-4 per cent
price hike to offset the costs of formalising the e-waste management. The
country's size poses a challenge to manufacturers collecting and channelising
the returned products.
“As a race, Indians do not want to let go of anything till the
very end. And some products last years – there are homes with those old Allwyn
refrigerators that have been going on and on for 20 years or more,” says Sharma.
He points out that when exchange offers are on, there is a mind-boggling demand
for the returned products which are re-sold at shanties in semi-urban and rural
centres. The demand for them, as some exchange offers have shown, is higher than
that for the new products, he says.
Not many marketers in India, including those multinational
companies which have to abide by strict legislation abroad, have yet worked out
a system to manage their waste. It's early days still as the law is applicable
to products sold from May 1 onwards. Even if one is not talking about hardy
20-year-old refrigerators, an LCD TV that lasts four or five years gives
manufacturers some breathing space.
India the only country in Asian region with current account deficit
For nearly three years, every policy-maker has been claiming credit for India
escaping the misery caused by the 2008 credit crisis due to the deft handling of
the situation by administrators. Now, a crisis is brewing that is making many
recall the year 1991 when India pledged gold to save its skin.
The current crisis, however, is not due to any global shock, but is mostly the doing of policy-makers. Alarm bells are not ringing yet in the corridors of Raisina Hill, but there are murmurs on Mint Street after the Reserve Bank of India released the quarterly balance of payments report on March 30. For the first time since Lehman Brothers collapsed, the balance of payments fell into the deficit zone. The current account deficit (CAD) - the net position of cross-border trade and services - crossed 4% of the gross domestic products (GDP), when 3% is considered to be the 'lakshman rekha'.
These times are eerily similar to the worst the nation faced in more than two decades - at least economically. But the cacophony over the slowing economic growth rate, taxes and corporate profitability is drowning what should have been the hot topic of debate - worsening external balances.
This is not 1991. Indian economy is many times bigger. Trade is up multiple times. Actors are many and instruments are numerous. However, the impact of the worsening situation will probably be more severe than it was in the gloomiest days since the state occupied the commanding heights of the economy.
"In 1991, the global situation was relatively more reassuring," said Samiran Chakraborty, head of India Research, Standard Chartered Bank.
"But, now, India's openness has increased substantially. So, in that sense, any shock in the global economy will have a large impact on the domestic sector. Hence, we are kind of worried about the balance of pay ments despite numbers being relatively better than 1991." Two decades ago, the current account deficit was close to 4% of GDP due to a sharp rise in the import bill driven by surging oil imports, among others. Crude prices surged because of the Middle-East crisis.
With demand being price-inelastic, curtailing imports was difficult and, at the same time, exports, too, were slow to rise. The government depreciated the rupee by 24% in a matter of three days to regain the export competitiveness. It borrowed $2.2 billion from the International Monetary Fund and pledged 67 tonnes of gold with Bank of England and the Union Bank of Switzerland and raised another $600 million, since there were no foreign investments flowing in.
Twenty-one years later, the discussions among economists, currency traders and experts are almost similar. Are we into the next big crisis?
Two factors are converging to whipsaw investors and the economy - there is extraordinary demand for goods from an overheated economy, and exports growth is slowing as Europe and the US are still crawling back to growth. "If it does not adjust, then we are in for another round of depreciation," said Abheek Barua, chief economist at HDFC Bank. The Indian rupee, which was the best performer in the first two months of the year, has surrendered half the gains and will probably end a loser if overseas fund flows do not improve. There are already calls for some special schemes like the once famous Resurgent India Bonds, or the India Millennium Bonds - which, by itself, is an indication that the economy is almost where it was in the early 1990s.
source: The Economic Times
The current crisis, however, is not due to any global shock, but is mostly the doing of policy-makers. Alarm bells are not ringing yet in the corridors of Raisina Hill, but there are murmurs on Mint Street after the Reserve Bank of India released the quarterly balance of payments report on March 30. For the first time since Lehman Brothers collapsed, the balance of payments fell into the deficit zone. The current account deficit (CAD) - the net position of cross-border trade and services - crossed 4% of the gross domestic products (GDP), when 3% is considered to be the 'lakshman rekha'.
These times are eerily similar to the worst the nation faced in more than two decades - at least economically. But the cacophony over the slowing economic growth rate, taxes and corporate profitability is drowning what should have been the hot topic of debate - worsening external balances.
This is not 1991. Indian economy is many times bigger. Trade is up multiple times. Actors are many and instruments are numerous. However, the impact of the worsening situation will probably be more severe than it was in the gloomiest days since the state occupied the commanding heights of the economy.
"In 1991, the global situation was relatively more reassuring," said Samiran Chakraborty, head of India Research, Standard Chartered Bank.
"But, now, India's openness has increased substantially. So, in that sense, any shock in the global economy will have a large impact on the domestic sector. Hence, we are kind of worried about the balance of pay ments despite numbers being relatively better than 1991." Two decades ago, the current account deficit was close to 4% of GDP due to a sharp rise in the import bill driven by surging oil imports, among others. Crude prices surged because of the Middle-East crisis.
With demand being price-inelastic, curtailing imports was difficult and, at the same time, exports, too, were slow to rise. The government depreciated the rupee by 24% in a matter of three days to regain the export competitiveness. It borrowed $2.2 billion from the International Monetary Fund and pledged 67 tonnes of gold with Bank of England and the Union Bank of Switzerland and raised another $600 million, since there were no foreign investments flowing in.
 |
 |
Twenty-one years later, the discussions among economists, currency traders and experts are almost similar. Are we into the next big crisis?
Two factors are converging to whipsaw investors and the economy - there is extraordinary demand for goods from an overheated economy, and exports growth is slowing as Europe and the US are still crawling back to growth. "If it does not adjust, then we are in for another round of depreciation," said Abheek Barua, chief economist at HDFC Bank. The Indian rupee, which was the best performer in the first two months of the year, has surrendered half the gains and will probably end a loser if overseas fund flows do not improve. There are already calls for some special schemes like the once famous Resurgent India Bonds, or the India Millennium Bonds - which, by itself, is an indication that the economy is almost where it was in the early 1990s.
source: The Economic Times
Wednesday, April 11, 2012
Why India will beat China
By Swaminathan S A Aiyer
Source: The Economic Times
Extractive political institutions (autocracy and empire) lead to extractive
economies benefiting elites, and cannot create general prosperity save for
limited periods. Inclusive political institutions (democracy, rule of law and
rights for all) create inclusive economic regimes with opportunity for all,
leading ultimately to prosperity. Inclusive institutions lead to creative
destruction, which is essential for sustained prosperity but threatens
extractive regimes, and is typically sabotaged by them. Only politically-free
regimes will ultimately allow creative destruction. This is why some nations
fail and others succeed.
So says this year's runaway best-seller, Why Nations Fail by Daron Acemoglu and James Robinson. The authors do not attempt an India-China comparison. But their logic suggests that India will ultimately come out ahead because of inclusive political institutions, and China will ultimately fail because of its extractive political institutions. That needs qualification. Democracies can be partly extractive - look at India's many scams - and autocracies can be partly inclusive. For this reason, democracies may fail to provide prosperity for decades just as autocracies can produce good economic results for decades. But ultimately, say Acemoglu and Robinson, the fundamentals will apply. This kernel of truth is brilliantly argued.
The book gives a mind-blowing range of historical examples across continents and centuries, from the Glorious Revolution of 1688 in Britain to the evolution of Botswana and Spanish colonisation of Argentina. One chapter is titled "What Stalin, King Shyaam (of the Congo), the Neolithic Revolution and the Maya city-states had in common, and how this explains why China's current economic growth cannot last". It sums up the breadth of this book.
Acemoglu and Robinson differ from economic historians like Douglas North in emphasising politics above all. Good institutions are the key to prosperity, historians agree. But this book says good institutions will not get established sustainably until the politics is right. You cannot depend on the modernisation process to ensure that authoritarian regimes with rising incomes automatically become democracies. Conditional foreign aid and foreign policy cannot bring about such changes either. Internal dynamics matter above all. The most important catalyst for political freedom can be a free media.
Few Indian readers are familiar with the 1688 Glorious Revolution, which the book emphasises repeatedly. The struggle between the Stuart dynasty and parliament, representing mostly large landowners and businessmen, ended in 1688 with the expulsion of James II and his replacement by William of Orange, who accepted a curtailment of royal powers and a Bill of Rights.
This set in motion a virtuous cycle, with political reforms that gradually included more and more sections of the population, culminating in universal suffrage. The authors say this political inclusion was crucial to widen economic opportunities, and explains why the Industrial Revolution began in Britain.
Other factors included British seaborne trade being largely with merchants, whereas the Spanish and French fleets were royal monopolies.
There is no historical determinism, say the authors. Luck and accident play big roles. Small differences and small changes can have huge, unpredictable consequences. Yet, they find that sustained success needs a constant widening of economic opportunity, plus economic systems that allow newcomers to sweep away the old: creative destruction. Autocrats squashed innovation, fearing this would empower a new class that would challenge them;
Many readers will question the book's equation of extractive economies with autocracy and inclusive economies with democracy. The original four Asian tigers, South Korea, Taiwan, Hong Kong and Singapore, were autocracies of some sort, and so were succeeding tigers China, Thailand, Malaysia and Indonesia. India was aflop for so long that many assumed that autocracy aided prosperity, and democracy was a hindrance. Only in the last decade has India's success altered the picture.
But the book implies that this was inevitable, and that the decline of China is no less inevitable. It says autocracies can produce sterling results for some time, even decades, but not sustainably (remember the Soviet Union). Democracies like India tend to develop virtuous cycles that eventually improve governance and reduce extractive tendencies, while autocracies tend to develop vicious cycles that increase such tendencies.
The book has a big implicit message for India: rethink themeaning of 'inclusive'. All Indian parties swear by inclusive growth, but define inclusion in terms of subsidies and reservations in jobs and education. This is vote-bank politics parading as inclusion.For Acemoglu and Robinson, inclusive growth means the spreading of opportunity to all to participate in economic activity, leading to creative destruction in which newcomers oust the old.
The IFC/World Bank ranks India 134th out of 183 countries in ease of doing business; 166th in ease of starting a business; 179th in getting a construction permit; and 182nd in enforcement of contract. These are barriers that should be attacked by any drive for inclusion. Yet, our political discourse on inclusion hardly touches on these issues.
The political process likes creation but hates destruction. So, duds like Kingfisher Airlines and Air India are propped up, crowding out newcomers. Company liquidation takes decades. Labour laws protect a unionised labour aristocracy at the cost of non-unionised ones. This is non-creative ossification. It is the opposite of creative destruction, the heart of inclusion.
So says this year's runaway best-seller, Why Nations Fail by Daron Acemoglu and James Robinson. The authors do not attempt an India-China comparison. But their logic suggests that India will ultimately come out ahead because of inclusive political institutions, and China will ultimately fail because of its extractive political institutions. That needs qualification. Democracies can be partly extractive - look at India's many scams - and autocracies can be partly inclusive. For this reason, democracies may fail to provide prosperity for decades just as autocracies can produce good economic results for decades. But ultimately, say Acemoglu and Robinson, the fundamentals will apply. This kernel of truth is brilliantly argued.
The book gives a mind-blowing range of historical examples across continents and centuries, from the Glorious Revolution of 1688 in Britain to the evolution of Botswana and Spanish colonisation of Argentina. One chapter is titled "What Stalin, King Shyaam (of the Congo), the Neolithic Revolution and the Maya city-states had in common, and how this explains why China's current economic growth cannot last". It sums up the breadth of this book.
Acemoglu and Robinson differ from economic historians like Douglas North in emphasising politics above all. Good institutions are the key to prosperity, historians agree. But this book says good institutions will not get established sustainably until the politics is right. You cannot depend on the modernisation process to ensure that authoritarian regimes with rising incomes automatically become democracies. Conditional foreign aid and foreign policy cannot bring about such changes either. Internal dynamics matter above all. The most important catalyst for political freedom can be a free media.
Few Indian readers are familiar with the 1688 Glorious Revolution, which the book emphasises repeatedly. The struggle between the Stuart dynasty and parliament, representing mostly large landowners and businessmen, ended in 1688 with the expulsion of James II and his replacement by William of Orange, who accepted a curtailment of royal powers and a Bill of Rights.
This set in motion a virtuous cycle, with political reforms that gradually included more and more sections of the population, culminating in universal suffrage. The authors say this political inclusion was crucial to widen economic opportunities, and explains why the Industrial Revolution began in Britain.
Other factors included British seaborne trade being largely with merchants, whereas the Spanish and French fleets were royal monopolies.
There is no historical determinism, say the authors. Luck and accident play big roles. Small differences and small changes can have huge, unpredictable consequences. Yet, they find that sustained success needs a constant widening of economic opportunity, plus economic systems that allow newcomers to sweep away the old: creative destruction. Autocrats squashed innovation, fearing this would empower a new class that would challenge them;
Many readers will question the book's equation of extractive economies with autocracy and inclusive economies with democracy. The original four Asian tigers, South Korea, Taiwan, Hong Kong and Singapore, were autocracies of some sort, and so were succeeding tigers China, Thailand, Malaysia and Indonesia. India was aflop for so long that many assumed that autocracy aided prosperity, and democracy was a hindrance. Only in the last decade has India's success altered the picture.
But the book implies that this was inevitable, and that the decline of China is no less inevitable. It says autocracies can produce sterling results for some time, even decades, but not sustainably (remember the Soviet Union). Democracies like India tend to develop virtuous cycles that eventually improve governance and reduce extractive tendencies, while autocracies tend to develop vicious cycles that increase such tendencies.
The book has a big implicit message for India: rethink themeaning of 'inclusive'. All Indian parties swear by inclusive growth, but define inclusion in terms of subsidies and reservations in jobs and education. This is vote-bank politics parading as inclusion.For Acemoglu and Robinson, inclusive growth means the spreading of opportunity to all to participate in economic activity, leading to creative destruction in which newcomers oust the old.
The IFC/World Bank ranks India 134th out of 183 countries in ease of doing business; 166th in ease of starting a business; 179th in getting a construction permit; and 182nd in enforcement of contract. These are barriers that should be attacked by any drive for inclusion. Yet, our political discourse on inclusion hardly touches on these issues.
The political process likes creation but hates destruction. So, duds like Kingfisher Airlines and Air India are propped up, crowding out newcomers. Company liquidation takes decades. Labour laws protect a unionised labour aristocracy at the cost of non-unionised ones. This is non-creative ossification. It is the opposite of creative destruction, the heart of inclusion.
| Filing of tax return mandatory for individuals with income over Rs 10 lakh |
The government has made it mandatory for individuals with income of over 10 lakh rupees to file their tax returns for 2011-12 electronically. The Income Tax Department said that e-filing has been made compulsory for the person who is an individual or a Hindu Undivided Family, if his or its total income, or the total income in respect of which he is or it is assessable under the Act during the previous year, exceeds ten lakh rupees for assessment year 2012-13 onwards. |
Manoj Bhargava, richest Indian in US commits 90% earnings to charity
NEW DELHI: Manoj Bhargava, probably the
wealthiest Indian in the US ahead of venture capitalist Vinod Khosla, doesn't
believe in governments and formal education and was virtually unknown till about
a month ago.
"I only had training in common sense," the 58-year-old Princeton University dropout, who came into the limelight after debuting in the Forbes list of billionnaires this year, told ET in an exclusive interview at Taj Mansingh hotel in Delhi.
Meet the founder of '5-Hour Energy'-a 2-ounce energy drink in a red and yellow bottle, which controls 90% of the US energy-shot market with retail sales estimated at $1 billion. This in just eight years after 5-Hour's launch in 2003.
Ask him about his biggest challenge and Bhargava says, "The biggest challenge is always the governments - they try to stop all good things. I try to stay away from them as much as I can, as I know if someone can destroy something good, it's the government!" He sounds like a rebel, but Bhargava is closer to a monk.
In fact, he says he spent 12 years of his life shuffling between monasteries in India and learning to still his mind. He still spends an hour everyday in contemplative silence.
And he is known for his frugal lifestyle and humble behaviour. Dressed in a simple kurta-pajama, Bhargava lives up to this reputation.
He thinks businesses in India give too much importance to education and mostly hire from top institutions. "It's like hiring theoretical plumbers! None of us are too impressed by MBAs," he says.
Bhargava says he abides by Mark Twain's quote: "I never let my schooling get in the way of my education."
He says 90% of what he earns will go into doing charity in India. "I have made a lot of money in the West...(and) I do not believe in much of personal consumption," he says. He has set up a non-profit organisation, Hans Foundation, for charity work.
May spend Rs 5k crore on charity in 10 years
He says the foundation funded more than 400 charity projects including some big ones like Kamala Nehru Memorial Hospital for cancer treatment to the poor.
Next ten years we would probably do about Rs 5,000 crore in charity," he says.
Yet, he plays tough in business. His privately-held firm Living Essentials, which makes 5-Hour, is known to diligently sue every copycat brand trying to get into the energy-shot market.
Living Essentials, which is owned by Innovation Ventures, another privately-held company, does not report its financials, but media reports have estimated that it grossed more than $600 million and netted some $300 million last year.
Born in Lucknow in 1953, Bhargava relocated to America in 1967 when his father decided to pursue a PhD at Wharton. The family, which was well off in India, had a tough time in the US. So Bhargava started doing odd jobs and businesses in his teens. He excelled in mathematics and joined Princeton, only to quit after one year when he decided to follow his 'own way' of education.
In 1974 he moved to India and spent most of the next 12 year in monasteries of Hanslok ashram.
Bhargava returned to the US for good to help his father with his plastics business. He bought several small, struggling outlets and turned them around, before finally selling his Indiana PVC business to a private equity firm.
He got the idea for 5-Hour Energy at a natural products trade show where he tried a 16-ounce drink that promised to enhance productivity. He found it amazing and he made a mental note of its ingredients.
Six months later he came out with his own version-two ounces of caffeine and B vitamins-because he did not want to compete with Red Bull and Monster and fight for a space in the refrigerator. Despite its small size, Bhargava priced 5-Hour at $3 a bottle, even though he was advised against it, and slowly convinced retailers to stock it at their cash registers.
Bhargava says human nature plays a huge role in shaping one's business. So what does he want to do next in business ? Bhargava says he has four ambitious projects in the pipeline including a catalyst-based project to reduce diesel consumption, reduction in desalination costs and a medical project.
And he believes his biggest advantage is his love for his job. "I go to office and run like hell-running means I do stuff because I love doing it," says Bhargava. "This is my basketball, football, my entertainment. I love it!"
"I only had training in common sense," the 58-year-old Princeton University dropout, who came into the limelight after debuting in the Forbes list of billionnaires this year, told ET in an exclusive interview at Taj Mansingh hotel in Delhi.
Meet the founder of '5-Hour Energy'-a 2-ounce energy drink in a red and yellow bottle, which controls 90% of the US energy-shot market with retail sales estimated at $1 billion. This in just eight years after 5-Hour's launch in 2003.
Ask him about his biggest challenge and Bhargava says, "The biggest challenge is always the governments - they try to stop all good things. I try to stay away from them as much as I can, as I know if someone can destroy something good, it's the government!" He sounds like a rebel, but Bhargava is closer to a monk.
In fact, he says he spent 12 years of his life shuffling between monasteries in India and learning to still his mind. He still spends an hour everyday in contemplative silence.
And he is known for his frugal lifestyle and humble behaviour. Dressed in a simple kurta-pajama, Bhargava lives up to this reputation.
He thinks businesses in India give too much importance to education and mostly hire from top institutions. "It's like hiring theoretical plumbers! None of us are too impressed by MBAs," he says.
Bhargava says he abides by Mark Twain's quote: "I never let my schooling get in the way of my education."
He says 90% of what he earns will go into doing charity in India. "I have made a lot of money in the West...(and) I do not believe in much of personal consumption," he says. He has set up a non-profit organisation, Hans Foundation, for charity work.
May spend Rs 5k crore on charity in 10 years
He says the foundation funded more than 400 charity projects including some big ones like Kamala Nehru Memorial Hospital for cancer treatment to the poor.
Next ten years we would probably do about Rs 5,000 crore in charity," he says.
Yet, he plays tough in business. His privately-held firm Living Essentials, which makes 5-Hour, is known to diligently sue every copycat brand trying to get into the energy-shot market.
Living Essentials, which is owned by Innovation Ventures, another privately-held company, does not report its financials, but media reports have estimated that it grossed more than $600 million and netted some $300 million last year.
Born in Lucknow in 1953, Bhargava relocated to America in 1967 when his father decided to pursue a PhD at Wharton. The family, which was well off in India, had a tough time in the US. So Bhargava started doing odd jobs and businesses in his teens. He excelled in mathematics and joined Princeton, only to quit after one year when he decided to follow his 'own way' of education.
In 1974 he moved to India and spent most of the next 12 year in monasteries of Hanslok ashram.
Bhargava returned to the US for good to help his father with his plastics business. He bought several small, struggling outlets and turned them around, before finally selling his Indiana PVC business to a private equity firm.
He got the idea for 5-Hour Energy at a natural products trade show where he tried a 16-ounce drink that promised to enhance productivity. He found it amazing and he made a mental note of its ingredients.
Six months later he came out with his own version-two ounces of caffeine and B vitamins-because he did not want to compete with Red Bull and Monster and fight for a space in the refrigerator. Despite its small size, Bhargava priced 5-Hour at $3 a bottle, even though he was advised against it, and slowly convinced retailers to stock it at their cash registers.
Bhargava says human nature plays a huge role in shaping one's business. So what does he want to do next in business ? Bhargava says he has four ambitious projects in the pipeline including a catalyst-based project to reduce diesel consumption, reduction in desalination costs and a medical project.
And he believes his biggest advantage is his love for his job. "I go to office and run like hell-running means I do stuff because I love doing it," says Bhargava. "This is my basketball, football, my entertainment. I love it!"
Tuesday, April 10, 2012
Sikkim too can follow
| Government to Make Payments Directly to the Bank Account of Payees; Measure to Enhance Transparency and Accountability in Public Dealings of the Central Government and also Usher Green Banking |
| As part of the Government’s commitment to good governance and elimination of corruption, the Ministry of Finance has amended the rules to enable all the Ministries and Departments to facilitate payments by direct credit to the bank accounts of the payees. Orders have also been issued by the Controller General of Accounts(CGA) that, with effect from 1st April 2012, all payments above Rs.25,000 to suppliers, contractors, grantee and loanee institutions shall be directly credited to their bank accounts. While the government servants shall continue to have the option to receive their salaries by cash or cheques, they could also opt to receive their salaries by direct credit to their bank accounts. However, all other payments to government servants of the amount of above Rs.25,000 shall be credited directly to their bank accounts. Further, all payments towards the settlement of retirement/terminal benefits of the government servants shall also be directly credited to their bank accounts. The Union Finance Minister Shri Pranab Mukherjee had recently inaugurated a “Government e-payment gateway” set-up by the Controller General of Accounts(CGA) which will be used by the Pay & Accounts Officers(PAOs) of the Central Civil Ministries/Departments for implementing the above measures. The Controller General of Defence Accounts(CGDA) would also be progressively using this e-payment gateway. The measure is expected to streamline the process of making payment by government departments while minimizing the interface of the payees with government offices to receive their dues. This e-payment government measure will enhance transparency and accountability in public dealings of the Central Government and also usher green banking by the Government. |
Press Release on ‘Circular 1 of 2012’- Consolidated FDI Policy Document
The consolidated FDI policy document is a single reference point for investors and regulators. The first such consolidation was released in March, 2010 after which it has been updated every six months. This ‘Circular 1 of 2012’-is the fifth edition of the consolidated policy document.
The significant changes introduced in this edition of the Circular are:
(i) Policy for FDI in Commodity Exchanges:
At present, foreign investment, within a composite (FDI & FII) cap of 49%, under the Government approval route-i.e. through the Foreign Investment Promotion Board (FIPB)-is permitted in commodity exchanges. Within this overall limit of 49%, investment by Registered FIIs, under the Portfolio Investment Scheme (PIS) is limited to 23% and investment under the FDI Scheme is limited to 26%. It has now been decided to liberalise the policy and to mandate the requirement of Government approval only for FDI component of the investment. Such investment by FIIs, in commodity exchanges, will, therefore, no longer require Government approval. This change aligns the policy for foreign investment in commodity exchanges, with that of other infrastructure companies in the securities markets, such as stock exchanges, depositories and clearing corporations.
(ii) Non Banking Finance Companies (NBFC)-clarification on ‘leasing’:
It has been clarified that the activity of ‘leasing and finance’, which is one among the eighteen NBFC activities, where induction of FDI is permitted, covers only ‘financial leases’ and not ‘operating leases’. This provision intends to clarify the coverage of the term ‘leasing and finance’, insofar as the NBFC sector is concerned.
(iii) Import of capital goods/ machinery/ equipment (including second-hand machinery)-conversion to equity:
At present, conversion to equity is permitted for import of capital goods/ machinery/ equipment (including second-hand machinery). It has been represented before Government that the Indian capital goods sector, including the machine tools industry, construction machinery and textile machinery, has been suffering because of import of cheaper second hand machinery, which is often sub-standard. With a view to incentivising machinery embodying state-of-the-art technology, compliant with international standards, in terms of being green, clean and energy efficient, second-hand machinery has now been excluded from the purview of this provision.
(iv) Clarification on investment by Foreign Institutional Investors (FIIs):
Currently, an FII may invest in the capital of an Indian Company under the Portfolio Investment Scheme which limits the individual holding of an FII to 10% of the capital of the company and the aggregate limit for FII investment to 24% of the capital of the company. This aggregate limit of 24% can be increased to the sectoral cap/statutory ceiling, as applicable, by the Indian Company concerned, through a resolution by its Board of Directors, followed by a special resolution to that effect by its General Body. It has been clarified that this would be subject to prior intimation to RBI.
(v) Investment by Foreign Venture Capital Investors (FVCIs):
Government has permitted FVCIs to invest in the eligible securities (equity, equity linked instruments, debt, debt instruments, debentures of an IVCU or VCF, units of schemes / funds set up by a VCF) by way of private arrangement / purchase from a third party also, subject to stipulated terms and conditions. SEBI registered FVCIs have also been permitted to invest in securities on a recognized stock exchange subject to the provisions of the SEBI (FVCI) Regulations, 2000. These provisions have now been reflected under the FDI policy as well.
(vi) Investment by ‘Qualified Financial Investors (QFIs)’:
Government has permitted QFIs to invest (DPs), in equity shares of listed Indian companies as well as in equity shares of Indian companies which are offered to public in India in terms of the relevant and applicable SEBI guidelines/regulations. QFls have also been permitted to acquire equity shares by way of right shares, bonus shares or equity shares, on account of stock split/consolidation or equity shares on account of amalgamation, demerger or such corporate actions, subject to the prescribed investment limits. These provisions have now been reflected under the FDI policy as well.
(vii) General permission for transfer of shares and convertible debentures:
The liberalised policy on transfer of shares/ convertible debentures of companies engaged in the financial services sector has now been reflected under FDI policy.
(viii) Changes in FDI policy in single-brand retail trading and pharmaceuticals sector:
The policy regarding Single Brand retail trading has been liberalized and now FDI, up to 100%, is permitted, under the Government route, subject to specified conditions, as per Press Note 1(2012) issued on 10.1.2012. Accordingly, the revised provisions have been incorporated in the Circular. The provisions of Press Note 3 of 2011, dated 8.11.2011, have also been incorporated in the Circular.
In view of the fact that Government has undertaken substantial rationalization/ liberalization of the FDI policy, it is felt that the need for frequent amendments to the Circular does not exist any longer. Further, any changes made in the FDI policy are notified through Press Notes issued during the year. It has, therefore, been decided that the Consolidated Circular on FDI Policy, which was, until now, being released on a six-monthly basis, may, henceforth, be issued after one year. As such, the next version of the Consolidated Circular on FDI Policy, would be released on 29.3.2013.
******
DS/GK
India's longest tunnel
Chenani Nashri project:
India's longest tunnel will ensure round-the-year connectivity between Jammu and Srinagar
source: TNN
Mild blasts beneath the Patnitop hill and the Peer Panjal range of mountains in Kashmir do not cause panic among the locals anymore. The first few times it did. Now, though, they know that these blasts aren't terror attacks. They are just part of the work needed to build tunnels that will change their lives forever.
Over 1,500 engineers, geologists and labourers have been working round the clock since June 2011, burrowing out two sets of twin tunnels which, when completed in 2016, will reduce the distance between the two most important cities of Kashmir - Jammu and Srinagar -- by at least 50 km. Travel time, too, will go down by about two-and-a half hours. At present, it takes about 10-11 hours to go from one city to the other under normal weather conditions . More importantly for the people of J&K , the tunnels will ensure roundthe-year connectivity between the two major hubs.
The tunnels, two each on the Quazigund-Banihal stretch (8.45 km) and the Chenani-Nashri stretch (9 km), are being dug out on the NH1 road that routinely sees traffic being disrupted days on end due to heavy snowfall during winters and landslides in monsoons. That might just be a thing of the past.
"Once we have improved connectivity , we will see greater economic activity in the region," says Abdul Hamid Punjabi, president of the Kashmir Chamber of Commerce and Industry. "We need to transport most of the fruits produced here to Jammu and beyond. And for most of our daily needs, we depend heavily on products coming in from Delhi, Maharshtra and other states. It's important for us to have all-weather connectivity on this road, the Valley's only link to the outside world."
Between October and January, Kashmir supplies at least 200 truckloads of apple every day to the rest of the country. The supply of pomegranates and other fruits is also significant from this region. It is widely believed that poor connectivity of Kashmir with the rest of the country has been a major impediment in the growth of the food processing industry in the state.
"The tunnels will boost the setting up of food processing industry. We will see growth of floriculture activities and related industries in a big way as the tunnels will ensure faster movement of perishable products from the valley. All of this will also have indirect financial benefit on other aspects of life in Kashmir," says Veerender Singh, project director of the National Highways Authority of India ( NHAI) at Srinagar.
Tourism, without doubt, will benefit . "The more time tourists spend at different spots, they will spend more. This has a direct link to people's income both directly and indirectly ," says Rias Khan, a travel agent based at Patnitop, hopefully.
The massive infrastructure work, being undertaken at the cost of Rs 4,500 crore, has already begun to have an impact on the employment opportunities for locals in the vicinity . Besides, it has employed people from other parts of the state, too.
ILF&S , which is constructing the Chenani-Nashri tunnel, has already employed over 600 unskilled, semiskilled and skilled youth of the state. This constitutes 94% of the total work force involved in the project. "About 52% of the total workforce from J&K is unskilled. Their employment for the next four years at the site will have positive impact on their earning. The skill that they learn will make them employable," says J S Rathore, head of the Chenani-Nashri project.
So talked about is the tunnel in J&K these days that ask anyone at the dhabas dotting the highway about it and they say, "Accha kaam chal raha hai. Hum sab ke liye accha hai (Good work is going on. It'll do all of us a great deal of good)." If there is light at the end of the tunnel anywhere, it is here at NH1.
GANGTOK: The Sikkim government has entered into a strategic joint-venture with ATPIL to run the Sikkim Power Development Corporation (SPDC).
The SPDC is now being operated by ATPIL, the company which has also floated Teesta Urja which is developing the 1,200 MW Teesta Stage-III hydroelectric project at Chungthang, North Sikkim.
The state continues to hold majority equity in the corporation as it has offloaded 49 per cent equity to ATPIL which was selected from among the best performing private hydel developers in the State.
Official sources said this decision was taken by the state government to infuse professionalism and expertise into the corporation.
For the selection of the strategic joint venture partner, tenders were floated on the basis of which ATPIL was selected to take 49 per cent of the stake in SPDC, the sources said.
The SPDC is now in charge of developing only mini HEPs in the state, with a few already under development and all under 5 MW capacity.
Sunday, April 8, 2012
Siddheshwari Dhaam: A Dazzling Addition to Our Cultural History and Devotion
Photo by C Lepcha
by BHIM DAHAL
“History has proved that those who dare to imagine the impossible are the ones who break all human limitations.”
These words by Rhonda Byrne, a renowned philosopher and respected psychologist, have inspired me to write on the Siddheshwari Dhaam of Solophok in South Sikkim. Modern civilisations have emerged from the power of dreams of human beings. We get to learn about ancient civilisations from different structures that our forefathers created. The Ashoka Chakra is a perfect example. It evokes envy and awe. The pyramids, the Indus Valley Civilisation, our Vedic culture, the period of the Mahabharata, the Inca and Mayan civilisations are some of the civilisations on which the modern civilisation is thriving. Wheels made machines possible and science has now made a global village of the world within a hundred years of advancements. All these are a result of the power to dream, and dream big at that.
Before the construction of the Siddheshwari Dhaam, Solophok was a barren valley. No one could have imagined, even in their wildest dreams, that this barren expanse would one day offer them an opportunity to see the Char Dhaams of Badrinath, Kedarnath, Dwarka and Jagannath and Rameshwaram in their own midst. These Dhaams marking the east, west, north and south if India were consecrated by Adi Shankaracharya in the Seventh-Eighth century. The Siddheshwari Char Dhaam of Solophok was consecrated by Reverend Swami Swarupananda Saraswati on 08 November 2011. This has kept the tradition intact and the religious significance of the Char Dhaam has been kept intact at the Solophok complex. Apart from this, the Jyotirlings, as mentioned in ancient scriptures that are present at twelve different locations in India, have also been replicated at the Solophok Char Dhaam premises. A magnificent statue of Lord Shiva has been made on top of the Jyotirlings. The Jyotirlings are: Somnath, Mallikaarjun, Mahakaal, Onkareshwar, Kedarnath, Bhimshankar, Trayambakam, Vidyanath, Nageshwar, Rameshwaram, Ghrishneshwar and Vishneshwar.
Work on the Char Dhaam started on 13 February 2005, and it was inaugurated, as mentioned, on 08 November 2011. Now, within a matter of a few months of its inauguration, Siddheshwari Dhaam has become a major pilgrimage destination. Tourists flock to the Char Dhaam to marvel at the architecture and design, while devotees throng to offer prayers. The number of visitors is increasing by the day.
India is a country of 80 to 90 crore people who have unwavering faith in Hinduism. Lord Shiva is the most worshipped Gods. In Kali Yug, Shiva worship is believed to give instant results. Religion is a very sensitive and emotional issue. In old age we visit Kashi. Some people have the desire to bid goddbye to world in the lap of Kashi Vishwanath along the Ganga. Char Dhaam has become the centre of spirituality and faith for such people. Now, people will place their prayers and make their pledges, and for a few moments lose themselves in the presence of divinity. People will be amazed and happy. They will experience religion, spirituality and faith. They will contemplate on permanence and impermanence. They will wash their sins in their hearts.
This is how I perceive the Char Dhaam. The Vastu techniques used in the temples constructed at Siddheshwari Dhaam have revived our tradition and sense of history. We can feel our heritage here. Char Dhaam has been successful in transcending art, architecture, tourism and pilgrimage. It has given us transcendental contemplation.
For this reason, we must congratulate Pawan Chamling wholeheartedly. We must express our gratitude.
I feel that the people do not contemplate deeply enough on the path of development and growth that Sikkim has charted under his leadership. In 193-94, the Plan Budget of Sikkim was Rs. 120 crore. The erstwhile governments did not do anything to win the name and fame that Sikkim deserved. They just performed routine tasks and duties. There is no need to blame the heads of those governments because not every leader commands the imagination, courage and will power that Pawan Chamling has consistently displayed. As a comparison of his ability to dream big and pull it off, sample this: the Plan Outlay for the entire state was Rs. 120 crore in 1993-94, and within a decade, when work on Char Dhaam began in 2005, the Chamling Government successfully raised Rs. 100 crore for the Char Dhaam project alone. The challenge did not end with arranging the funds alone, because the project demanded much hard work. To reach raw materials to a place like Solophok, arrange labourers, artisans and have the construction meet the Vastu guidelines for such projects was not easy. The Dhaam is spread over a lavish 27 hectares and has been made possible due to sweat and toil of thousand upon thousand man-hours that thousands of labourers poured into it. The proverb, “a tailor’s labour is lost in the coat” holds true here.
It is said that success has many fathers, failure is an orphan. The credit for the successful completion of the Char Dhaam project however has no such complications – it has been possible solely due to the imagination and unwavering commitment of Pawan Chamling.
The Chinese literary figure, Lu Tsun, has said, “In earlier times, the world did not have so many roads and turn. People kept walking and roads started being created.” The Char Dhaam can be considered as a Renaissance of Indian spiritual civilisation. If this comment leads to a counter argument, then this pen is ready for it. Foreign invaders and Mudhal emperors did try to uproot our culture and tradition and force their culture on us whether it was the Somnath Temple which was plundered eleven times by Mohammad Ghazni in the 10th Century or the execution of the Ninth Sikh Guru, Tegh Bahadur by Aurangzeb. Our history is blood stained with such incidents. So, if anybody criticises the Char Dhaam, they should first study our history once again.
The value of Char Dhaam does end with its religious aspect. Char Dhaam is for people of all faiths and beliefs. It has become a popular tourist spot. While faith might be a personal issue, art and architecture carry universal appeal and Char Dhaam is a collective wealth of all. There are no two ways about it.
It is necessary to create infrastructure required to support a place like the Char Dhaam. There should be provision for vegetarian snacks at the premises. Char Dhaam is around 5 kms from Namchi. There is a need for taxi fare regulation and if possible for a shuttle bus service. There should be a dialogue between Namchi municipality and hotel owners there for improvements in services for visitors. There should be no delays in such support arrangements.
Let us hope that we can make Char Dhaam better and provide all amenities in and around the Dhaam. There is a history of the construction of the Golden Temple in Amritsar being started by the Fourth Sikh Guru Ramdas in the 13th Century and being completed by the fifth and sixth Sikh Gurus, Guru Arjundev and Guru Hargobing respectively in the 17th Century. Today, the Golden Temple of Armitsar is the most important pilgrimage for Sikhs.
History tells us that Guru Ramdas had to struggle a lot for the construction of the lake in Amritsar. God does not make historical and religious centres; humans have always been the mediums for such undertakings. Noble intentions and dedication are essential to achieve anything significant. Let us hope that the present generation takes care of an asset as grand as the Siddheshwari Char Dhaam and hands it over the future generation as part of their proud heritage.
[The writer is a former Lok Sabha MP and now Media Advisor to Chief Minister Pawan Chamling]
Tackling the Asian Enigma
by Mahesh Y Reddy
India has the world’s largest area under rice cultivation, and is the second largest producer of the grain after China. The country retains its position as the world’s largest producer of milk and also has the largest child development program in the world. And, it will have the largest young population in the world by 2020.
Yet, a third of the world’s malnourished children live in India. Malnutrition, which not only accounts for more than 50 per cent of all childhood deaths but also impairs development and learning capabilities in children, is more common here than in Sub-Saharan Africa. In the long run, poor levels of nutrition also impact labour productivity and economic growth.
Given the current rate of malnutrition and the likelihood of an increase in the working-age (15-59 years) population from 58 per cent of the total population in 2001, to about 64 per cent by 2021, the youngest nation in the world will have an unhealthy, less educated and inappropriately skilled population. In absolute numbers, there will be around 63.5 million new entrants to the working age group between 2011 and 2016. Yet their working capacity will be questionable.
The Government of India has sustained the largest effort in history to improve nutritional standards, through the Integrated Child Development Services (ICDS) programme. The scheme was implemented over 20 years ago and now operates in 400,000 of the country’s 600,000 villages. Despite the effort, India continues to be a part of the Asian Enigma.
The Asian Enigma is the phenomenon of relatively high levels of under-nutrition among children and adult women in South Asia, despite more favourable records with respect to infant mortality, women’s education, food availability or other aspects of living conditions in comparison with, for example, sub-Saharan Africa.
The ‘demographic dividend’ that India will soon be face-to-face with would pose a challenge, putting tremendous strain on India’s land and water resources.
The industry is going to face the challenge of this demographic change in more ways than one. For example, 1.2 million people are engaged in infrastructure activities, and about 30 million are into labour work. When 58.3 million people are expected to be employed in the infrastructure sector by 2020, there will still be a shortfall of 3.64 million architects and 1.1 million managers and planners during the same period. Even if these many people are available, their output and productivity and capacity to learn skills will be questionable, given the current rate of undernourishment that India faces.
People make an organisation run. With a lesser number of effective people available to work, there can be questions of whether India’s growth rate will be sustainable – and if so, to what extent?
Other than that, India also has another challenge to take care of. The performance of the country in terms of mean years of schooling is not only much lower than that of countries such as Sri Lanka, China, and Egypt, which have higher per capita incomes, but also lags behind Pakistan, Bangladesh and Vietnam, who have lower per capita incomes. It is also much lower than the global average.
India may have emerged as the fourth largest economy globally with a high growth rate, but it is still the poorest among the G-20.
According to the Human Development Report (HDR) published by the United Nations Development Programme (UNDP), India is still in the ‘medium human development’ category, while countries such as China, Sri Lanka, Thailand, Philippines, Egypt, Indonesia, South Africa, and Vietnam rank better.
What India needs is a 360-degree approach involving every stakeholder in the nation-building process. The government has to ensure that its development programmes reach the needy and the deprived they were designed for. Local leaders at every block level have to be empowered and motivated to become a part of the programs run by government. Private partners need to be enrolled with government initiatives to bring in professionalism. Individual leaders and team workers at village levels have to be identified to help build a healthy nation.
In order to benefit from health spending, the process needs to be effective through improvements in accountability and incentives. The improvements in health status will be worth the effort as they turn out to have positive effect on growth.
While creating awareness can be one of the solutions to the malnutrition problem, it needs to be linked to availability of resources via the public food distribution system. Another response to this crisis can be to address the issue of inadequate care of females by husbands and elders. This is one of the major reasons for child malnutrition in India, as an ill-fed mother will give birth to an underweight child. There is growing evidence that if women have a claim on the household income, it will lead to improved education, nutrition and health.
Awareness also needs to be generated about good nutrition practices both in urban and rural areas. Studies have shown that proper nutrition in the early months and taking care to ensure that the right food is given at the right time and in the right way matters a lot in the child development process.
Enterprise: Design Studio
by Parul Sharma Singh
The design studio processes, prints, steams and finishes by hand, with zero
use of electricity
Amalgamating contemporary fashion styles with traditional hand
woven textiles and attempting to make such products in an eco-friendly way is
textile designer Bina Rao's marketing strategy for her industry.
Her design studio “Creative Bee” set up in collaboration with her
artist husband K. Sivakesava Rao (an expert in natural dyes) in 1998 in
Hyderabad is a self-sustained commercial organisation with an in-house facility
for designing, production and marketing of hand-made and natural fabrics. Rao
opened her first store in the Capital last month and has another one coming up
in Mumbai soon. Creative Bee makes a range of products in both fashion fabrics
and home furnishings. The Raos run their own dye unit close to Hyderabad where
all the vegetable dye materials, such as roots, barks, leaves, flowers, fruits
are either grown or processed to make dyes. The designer claims the process of
dyeing, printing, steaming and finishing is done by hand and no electricity is
used.
Bina has also been providing work to and upgrading skills of over
400 weavers. “My products are hand-made, natural and produced with zero
electricity. They are trendy and yet have an Indian character. We try to ensure
the livelihood of all the weavers and artisans working with us.”
Rao, who is an advisor on a number of state and central projects
and government committees, feels this close association with the local artisans,
especially from Andhra Pradesh, adds “exclusivity” to her products. “I wanted to
conserve traditional practices. That's why instead of uprooting them, I went to
their villages. It is important to retain them in their natural environment
because they adopt a lot from their immediate surroundings and use it in their
weaving. We don't interfere with their traditional skills. They are better
designers than I am and that's why my every fabric has a unique story to it.”
Rao's Delhi store has been started in view of the expanding retail market, in
addition to the city being a big hub for fabric needs. “Indian economy has
ripened for retail and our brand has also become strong. It was the right time
to expand. Also, Delhi has a great potential in terms of bulk order. Fashion
textiles are one of our most popular products. We produce fashion fabrics and
accessories for many designer clients,” she points out.
Creative Bee also has a foundation for helping artisans develop
quality craft products from wood, metal and fibre for various life-style stores.
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