Seasonal Magazine - Cover Story on Tamil Nadu - Latest Issue

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VOLUME 18 ISSUE 9 SEPTEMBER 2020

MAGAZINE

Seasonal www.seasonalmagazine.com

LASTING LESSONS FROM COVID-19

Managing Editor Jason D Pavorattikaran Editor John Antony Director (Finance) Ceena Associate Editor Carl Jaison Senior Editorial Coordinator Jacob Deva Senior Correspondent Bina Menon Creative Visualizer Bijohns Varghese Photographer Anish Aloysious Office Assistant Alby CG Correspondents Bombay: Rashmi Prakash Delhi: Anurag Dixit Director (Technical) John Antony Publisher Jason D Pavorattikaran

As much as Covid-19 is a once in a century crisis, it offers lasting lessons for all from individuals to countries, to make a better world.

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EDITORIAL

The world needs to save Everyone needs to save. Not just individuals and families, but small businesses, corporates, NGOs, charities, villages, cities, states, and whole governments need to save for a rainy day. Or an extended rainy season like how Covid-19 proved to be. Needless to say, the richest entities and countries with the deepest wealth are the ones who are going to outlive this crisis and thrive again with the least damage. And its converse needn’t be said even this much. The world’s poor – be it individuals or companies or countries – are taking the biggest hit, even if they have not taken a huge direct hit already from the pandemic. And this will continue for years to come, if not decades. Hopefully, world will wake up to the fact that saving is not what is left after spending, but a judicious percentage of one’s income.

The world needs more income Saving is not possible if there isn’t enough income. Savings can’t be done by reducing essential spending, as consumption needs to be grown. There should be surplus income for all entities. Governments should find ways and means to generate more tax revenue from more sources rather than burden certain segments more. Tax rates should be light so that it encourages growth and profits, and thus compensates in itself. When it comes to corporates, secular profits should be aimed at, and not just lofty valuations that disappear overnight. And coming to the workforce, minimum wages should be set so that there is something substantial to save for those who draw even the minimum wages.

The world needs to be in stable and liquid assets During good times, the world tends to save in multi-bagger investments like real estate and stocks. The even more brave-hearted goes a step further and invests or trades in items like crude and currency futures. But in bad times, these are the first assets to come crumbling down and lay shattered there for years. In contrast, a stable asset like gold has put up a blistering performance, despite some initial hiccups, even during this unprecedented lockdown in human history. Similar is the case with bank deposits, whether it is short-term or long-term deposits. Despite being looked over often for their lacklustre returns, bank deposits increasingly make sense now, due to lower inflation and ready liquidity.

The world needs to fight autocracy It is no coincidence that modern world’s only pandemic arose from China.

In fact, in hindsight at least, the world was only waiting for China to deliver this devastating blow. Because, China had covered up the first 2002-04 SARS Corona Virus outbreak brilliantly, taking 15 long years before

admitting that its origin was from bats and civets in its Yunnan province. Neither WHO nor any superpower including USA took China to the task for this, as there were only 8000 cases worldwide and less than 800 deaths, and all nations thought it convenient not to ruffle the Chinese feathers. This emboldened the autocratic regime in China to do an encore when Covid-19 broke out in late 2019. It would never have happened if China had a decent Opposition Party or a free press.

The world needs sensible tourism More and more details are emerging that Covid-19 has primarily been a tourism disease. Starting from the mid1990s and accelerating by the early part of this past decade, China has been leading in worldwide outbound tourism.

Since, 2013, China has not yielded its number one spot in global outbound tourism, and in value terms is double that of the second player, USA. And where are the Chinese tourists going to? Predominantly to USA and Europe. No wonder then that these were the regions devastated by Covid-19 pandemic, and not countries like India or the African nations which the Chinese tourists shun. China could have at least prevented its tourists from going abroad, but it didn’t because that would have upset its inbound tourism, which is ranked number two in the world behind USA. The world needs to take care of its poor However hard and sweeping Covid-19 would rage across the world, there is very little chance that it would kill more than another epidemic which has been devastating the world since decades. Yes, hunger kills 25,000 people daily but the world simply doesn’t care because it mainly affects only the poor in nations across Africa and Asia. But Covid19 comes across as much more severe as the rich and middle-class who calls the shots in this world are not spared by it. Will Covid-19 change this world’s apathy? Not likely, unless the world wakes up to the fact that it makes immense economic sense too to handhold the poor nations and bring them up so that they become viable and thriving markets that contribute to the growth and sustenance of humanity on this planet.

The world needs to look beyond capitalism It was perhaps destined in history that Covid-19 came and destroyed hundreds of millions of jobs worldwide, at a time when capitalists across the world were planning to replace millions of jobs through automation, artificial intelligence and robots. Now, they wouldn’t be able to do it, because for governments across the world, the first priority now becomes protecting jobs. The greatest positive impact from Covid-19 would be the realization that every emerging technology is not useful for humans at large. Automation or artificial intelligence may be good for the tech firms that peddle it and their financiers, but if these technologies stand to drive out millions of humans from their jobs, they need to be avoided, well, like the Corona virus itself.

Countries across the world are now all set to incentivize jobs rather than investments for the first time in modern history.

The world needs to prioritize better Covid-19 came at a time when the defence expenditures of most large nations were rising year after year. In fact, it has been rising steadily for the last five years, from 2015 onward, and now stands at nearly $2 trillion or Rs. 150 lakh crore.

But this has not been like this always. After the Global Economic Crisis started in 2009, and when the realities sunk in by 2011, global defence budgets kept reducing for the next three consecutive years. No great war or geopolitical tension arose in those three years, due to these lower defence budgets. But when the world’s economic situation again got better, the global arms lobby again made governments to spend more. Now, Covid-19 is sure to break that trend once again, as governments realize the futility of spending billions in defence, even when they stand without funds to fight a medical issue.

The world needs to choose carefully where it invests India is no China. We need not even tell the global investors this, as they know it already. We can’t compete with the Chinese on the scales of infrastructure or speed of execution, at least for a foreseeable future. But should that matter anymore? We have numerous other strengths including a thriving democracy, a free press, capable engineers & managers, adequate resources and excellent English language skills. Companies who have burnt their hands in China now think that they have seen the worse. Not by a long shot. All large nations can wreck companies if they want, but most democratic nations with a reasonably independent judiciary would not ever do that. But the same can’t be said of an autocracy as powerful as China and that would be the real risk for global companies there. If India can untangle its legal and other myriad statutory requirements, and provide a consistent policy framework, there is no reason that we can’t attract many global firms looking to diversify beyond China.

The world needs to have common sense Covid-19 would go down in history as the greatest intelligence failure of all time. America, Russia, Britain, and France, as well as the world’s emerging superpowers all failed bitterly in unearthing any intelligence from China regarding the depth of this crisis. This is despite investing hundreds of billions of dollars into creating and maintaining sophisticated surveillance mechanisms that include dedicated satellites.

Instead, only a little bit of common sense would have saved hundreds of thousands of deaths worldwide, not to say trillions of dollars in resources and millions of jobs. This is because, as far back as December 2019, a handful of scientists and doctors in the West kept saying that there is every chance that the disease is spreading from humans-to-humans, unlike the official Chinese lie of no human transmission. A simple travel ban from China, and for those who have visited China recently would have saved the world. But that would not have been tech-driven intelligence, but plain common sense.

John Antony SEASONAL MAGAZINE

CONTENTS 7 WAYS KERALA IS POISED FOR GROWTH THE PANDEMIC WON’T BREAK KERALA BUT MAKE IT. HERE IS HOW.

HOW TAMILNADU SET A RECORD FOR INVESTMENTS DURING THE LOCKDOWN

There comes once in a while in the life of people and organizations, some opportunities where they can shine than the rest due to their innate strengths. The case of governments too is not much different. However, such opportunities are often masked as crises, making many to miss the bus even when they are at a potential advantage. But the recent moves of the Pinarayi Vijayan led LDF Government in Kerala shows that, even while being pressed to the wall due to the Covid-19 pandemic and its economic fallout, it has no plans to

Tamil Nadu, especially its capital city and industrial hub of Chennai, has been one of the most severely affected regions in the Covid-19 pandemic. But if anyone thought this sounded the death knell for Tamil Nadu’s industrial sector, they were badly mistaken. Under the visionary leadership of its Chief Minister Edappadi K Palaniswami and Industries Minister MC Sampath, the state doubled its efforts to woo major investments into the state, and by the time the long lockdown ended, Tamil Nadu had emerged as the No.1 state in India in attracting investments during the lockdown period. The state could sign 41 MoUs with companies from Germany,

5 CORE WAYS NEP 2020 WILL CHANGE INDIAN HIGHER EDUCATION

The National Education Policy (2020) has perhaps been the only shining light in an otherwise insufferable year.

Calling for radical changes to the Indian education system, the NEP is both an aspirational and realistic policy document. It is aspirational because it envisages the pressing revamp of many institutional behemoths that have pegged back progress over the years while its realism lies in the broad achievable goals across a 15year timeline. While no one predicted that the announcement would be imminent so soon, especially as draft policies in general take its own ‘sweet’ time to come to the attention of policy makers, the context of these times warrant quick action and implementation. As the pandemic has disrupted every level of

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WHY KITEX WILL EMERGE STRONGER FROM THE CRISIS Seasonal Magazine in conversation with Sabu M Jacob, Chairman & Managing Director, Kitex Garments Ltd.

MANAPPURAM’S GOLD LOANS TO REBOUND POST LOCKDOWN? Non Banking Finance Companies (NBFCs), together with banks, tend to do well during economic booms when credit growth is high. But NBFCs focusing on gold loans, like Manappuram Finance, have historically done even better during difficult periods for the economy. This is a peculiar strength of the gold loan business that is putting the focus back on players like Manappuram, even in this most difficult period for lenders, due to Covid-19, the extended lockdown and moratorium on loans.

THYROCARE TECHNOLOGIES

SERVING THE NATION, AGAINST ALL CHALLENGES

FEDERAL BANK DREAMING BIGGER NOW TO BE THE FIRST CHOICE BANK How well each organization is going to perform in the post-Covid world may feel like a mystery, but to a large extent will be determined by how well they were running in the pre-Covid era. Coming to the banking sector, the performance metrics may seem to be all in hard numbers, but in reality is much more, having to do with prudent policies and relationships with each and every customer. This is an area where Shyam Srinivasan led Federal Bank is likely to show much resilience in the coming quarters and years.

WHY COCHIN SHIPYARD IS SET TO EMERGE STRONGER A crisis exposes the fundamental strengths or weaknesses of an organization like nothing else.

Cochin Shipyard, where India’s first indigenous aircraft carrier INS Vikrant - is being built, is on solid ground with a diversified order book of Rs. 15,300 crore, including anti-submarine vessels and ship repair. Led by Madhu S Nair as CMD, the listed PSU is almost debt free, and has enough funds to undertake significant capex as planned, which includes its new International Ship Repair Facility and a new Dry Dock. The country’s renewed focus on Atmanirbhar or self-reliance in defense manufacturing, as part of the Covid-19 stimulus package as well as due to new geopolitical

“KERALA STILL WAY AHEAD IN THE COVID-19 FIGHT”

Dr. A Velumani, Founder & Chairman of Thyrocare Technologies, the leading diagnostic chain in the forefront of the Covid-19 battle, in conversation with Seasonal Magazine.

Kerala's Agriculture Minister V.S Sunil Kumar had ushered in the agro-technology drive called the 'Mission Mechanisation Programme' months before the pandemic disrupted almost every sphere of activity. With social distancing norms and quarantine rules, the agriculture sector is poised to benefit from this technology intervention. Along

INDIA SHOULD FACILITATE ALL BUSINESS HOUSES, NOT JUST THE LEADING FEW

HOW IIT BOMBAY STUDENTS DISCOVERED A GIANT ASTEROID

Two years ago, India rolled out a laudable plan to unlock the capital trapped in some of its smaller airports. But the actual outcome from privatization was less than reassuring: All six airfields put on the block went to one bidder.

SC SAYS HOMEBUYERS ENTITLED TO COMPENSATION The apex court noted that it cannot be oblivious to the onesided nature of the Apartment Buyers Agreements which are drafted by and to protect the interest of the developers.

The SUV-sized asteroid that zoomed past just 2,950 km above the Earth's surface on August 16, disturbing even earth's gravity, was discovered by two students of Indian Institute of

INDIAN SOLAR POWER AT CROSSROADS WITH NO BUYERS India’s solar power story has been largely creditable, with a rapid pace of capacity addition and competitive tariffs being discovered, but several adversities including reluctance of discoms to sign power supply agreements (PSAs) are threatening to disrupt it.

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By Andy Mukherjee, Bloomberg

POLICY

INDIA SHOULD FACILITATE ALL BUSINESS HOUSES, NOT JUST THE LEADING FEW TWO YEARS AGO, INDIA ROLLED OUT A LAUDABLE PLAN TO UNLOCK THE CAPITAL TRAPPED IN SOME OF ITS SMALLER AIRPORTS. BUT THE ACTUAL OUTCOME FROM PRIVATIZATION WAS LESS THAN REASSURING: ALL SIX AIRFIELDS PUT ON THE BLOCK WENT TO ONE BIDDER.

financing muscles take what they can.

There are antitrust laws, but they’re being used to investigate discounting practices of Amazon.com Inc. and Walmart Inc.-owned Flipkart, even though their share of overall retail is minuscule. Tax laws have been used to hound startups.

Courts, which can enforce fair and stable relations between the state and business, are adding to the confusion by asking if banks have a claim on airwaves - a sovereign asset - held by insolvent telcos.

Who’ll lend for 5G networks when such basic issues in creditor rights are undecided?

To top it all, the pandemic and badly soured relations with China provide ample cover for an isolationist campaign of economic self-reliance, which can be used by tycoons to charge local customers more. Adani won the bids for six airports fair and square, but then used Covid-19 to negotiate for extra time to take over three of them.

f that wasn’t enough, multiple media reports now say that Ahmedabad, Gujarat-based billionaire Gautam Adani, an early and enthusiastic supporter of Prime Minister Narendra Modi, might also succeed in taking control of the already-privatized Mumbai airport, as well as a new one coming up on the financial center’s outskirts.

Airports are natural monopolies. To have one private owner controlling eight or more - a fresh batch of six will soon go under the hammer - can’t possibly be great news for airlines, fliers, or businesses operating from the premises.

More worryingly, the concentration of economic power in aviation infrastructure is now symptomatic of a broader trend in India, particularly in businesses where the government supplies a key ingredient, such as telecom spectrum.

The splashy 2016 entry of tycoon Mukesh Ambani in 4G mobile was a huge boon.

The richest Indian single-handedly crushed data charges for customers to 9 cents a gigabyte, the lowest in the world. But a field that once boasted a dozen players is now effectively a duopoly. The fate of a third service will be decided by a court order about how much time Vodafone Idea Ltd. has to pay its share of the $19 billion demanded by the government from telecom firms as past dues.

If Ambani’s vision of a carriage, content SEASONAL MAGAZINE

and commerce triple play is sexy enough to attract investment from the likes of Facebook Inc and Alphabet Inc’s Google, Adani’s ambition of owning ports, airports, railway tracks, power plants and energy distribution utilities, is humdrum but lucrative.

The worry is that dominance by a handful of capitalists may not leave enough space for others. But then, who’s even ready or willing to compete, especially in sectors where state policy has a big role in determining winners? Barring some notable exceptions, the Indian business class is overextended, trapped in the debris of assets created with the help of syndicated loans from pliant state-run banks.

Politicians even have a name for it: phone banking, where they make the calls and tell bankers to whom to give loans.

It’s impossible to carry on this way. Aer the Covid-19 disruption, governmentowned Indian banks will require as much as $28 billion in external capital over two years to raise their loss provisions on bad loans to 70% and double credit growth from last fiscal year’s abysmal 4%, according to Moody’s Investors Service.

Much of this money will have to come from a government that can’t keep a lid on its borrowing costs. A sharp, private creditfueled recovery for the economy appears to be out of the question.

That’s probably why policy makers are resigned to letting whoever has any

However, when it came to winning the Mumbai terminal from GVK Power & Infrastructure Ltd., its liquidity-strapped current owner, disruption to travel doesn’t seem to have damped the group’s eagerness. Abu Dhabi Investment Authority and PSP Investments, a Canadian pension fund, were separately talking to GVK about a deal. They have written letters to the Indian government, asking for a transparent transaction, the Economic Times has reported.

India’s 2016 adoption of a modern bankruptcy law raised hopes that global capital would have an equal chance to take productive assets out of weak hands. The expectation was that the government would follow the Australian asset-recycling model to pay for $1 trillion worth of new infrastructure. But with insolvency courts temporarily shut to new cases, and so many airports going to one buyer, it’s unclear if foreigners’ ardor will endure. Aer the coronavirus, there’s no dearth of distressed assets globally.

Just as opening up the economy in the 1990s was a windfall for the current generation of middleclass Indians, excessive economic concentration will be a headache for the next. Like in South Korea, people may one day realize how a few conglomerates are sapping the entrepreneurial energy of everyone else.

By then, it will be too late, and the country might be burdened with the equivalent of a “chaebol discount.”

Laying the foundations of a competitive economy is still possible. But if India can’t ensure that with state assets, the corporate landscape will start looking like a Monopoly board, to its aspiring oligarchs and the rest of the world.

SCIENCE

HOW IIT BOMBAY STUDENTS DISCOVERED A GIANT ASTEROID THE SUV-SIZED ASTEROID THAT ZOOMED PAST JUST 2,950 KM ABOVE THE EARTH'S SURFACE ON AUGUST 16, DISTURBING EVEN EARTH'S GRAVITY, WAS DISCOVERED BY TWO STUDENTS OF INDIAN INSTITUTE OF TECHNOLOGY(IIT)BOMBAY, HAILING FROM PUNE AND HARYANA.

he students Kunal Deshmukh and Kritti Sharma - working on a research project to hunt for Near Earth Asteroids who discovered the celestial object just hours later using data from the robotic Zwicky Transient Facility, (ZTF), California.

ASTEROIDS OF THIS SIZE THAT FLY ROUGHLY AS CLOSE TO THE EARTH AS 2020QG DO OCCUR ABOUT ONCE A YEAR OR SO, BUT MANY ARE NEVER DETECTED.

Designated as 2020QG, it is the closest known asteroid to fly by Earth without impacting the planet. The previous record-holder was asteroid 2011CQ1 discovered by the Catalina Sky Survey in 2011, which flew past the Earth 2,500 km, higher than the 2020QG. During the research, Sharma and Deshmukh were analysing the ZTF data and reported five streaks as "potential asteroids" - little realising that one of them would be a record-breaker.

phase: studying such objects with the robotic GROWTH-India Telescope at Hanle, Ladakh. It's fully automatic," said Bhalerao, a faculty member in the Department of Physics.

"The data looked like all other Near Earth Asteroids we have seen so far," said Deshmukh, 20, from Pune, who is a final year student in the Department of Metallurgy and Materials Science, IITBombay.

The asteroid 2020QG is about 10-20 feet (3-6 metres) in size, or roughly the size of an SUV, so it was not big enough to do any damage even if it had been pointed at Earth, but would have burnt and disintegrated had it entered the planet's atmosphere.

Sharma (20), a third year undergraduate student in the Department of Mechanical Engineering, IIT-Bombay, said: "Helping make a discovery like this so early in my research project is beyond what I had ever imagined."

After the ZTF team reported its findings to the International Astronomical Union Minor Planet Centre, several telescopes followed up to learn more about the asteroid's size and orbit, proving that it had passed very close to the Earth, said an IIT-Bombay spokesperson.

Their advisor, professor Varun Bhalerao, is very proud of the duo's achievement and lauded the efforts of his students for contributing to astrophysics research.

"We are very excited about our next

"The asteroid flew close enough to the Earth, causing the planet's gravity to change its orbit significantly," said ZTF co-investigator Tom Prince, the Ira S. Bowen Professor of Physics at Caltech

and a senior research scientist at JPL, which Caltech manages for NASA. Asteroids of this size that fly roughly as close to the Earth as 2020QG do occur about once a year or so, but many are never detected.

Asteroid 2020QG was identified by Deshmukh, who was scanning the day's image along with Sharma, and one Chen-Yen Hsu at the National Central University, Taiwan.

"A lot of the streaks are satellites, but we can quickly go through the best images by eye to find the actual asteroids," said says Bryce Bolin, a post-doctoral scholar in astronomy at Caltech and a member of the ZTF team, who regularly hunts for asteroids.

This latest find really demonstrates that ZTF can be used to locate objects very close to Earth that are on potentially impacting trajectories.

Earlier in June 2020, two school girls from Surat city from India's western state of Gujarat discovered an Asteroid named HLV2514. It appears that Indian students have a flair and knack for discovering new Asteroids.

SEASONAL MAGAZINE

STATE-IN-FOCUS

MC Sampath, Industries Minister

SEASONAL MAGAZINE

HOW TAMILNADU SET A RECORD FOR INVESTMENTS DURING THE LOCKDOWN

Tamil Nadu, especially its capital city and industrial hub of Chennai, has been one of the most severely affected regions in the Covid-19 pandemic. But if anyone thought this sounded the death knell for Tamil Nadu’s industrial sector, they were badly mistaken.

Under the visionary leadership of its Chief Minister Edappadi K Palaniswami and Industries Minister MC Sampath, the state doubled its efforts to woo major investments into the state, and by the time the long lockdown ended, Tamil Nadu had emerged as the No.1 state in India in attracting investments during the lockdown period. The state could sign 41 MoUs with companies from Germany, Japan, Taiwan etc that will bring in nearly Rs. 31,000 crore investments and generate nearly 68,000 jobs. The southernmost state also excels in converting MoUs to projects on the ground. During the lockdown itself, the Chief Minister along with Minister Sampath commissioned several projects that were signed as MoUs in the 2019 Global Investment Meet, including units by American, Korean and Japanese companies. The state has been moving swiftly to leverage its strengths in automotive manufacturing and engineering sector to emerge as the leader in electric vehicles, aerospace and defence, with dedicated policies and infrastructure parks. The state is also supporting Indian Government’s three industrial corridors in the state, as well as a defence industrial corridor which is one of the only two such corridors in the country. With assembly elections coming up next year, the industries ministry and department headed by MC Sampath is confident of the industrial achievements and job creation during the past five years. Seasonal Magazine’s Editor John Antony recently caught up with Minister MC Sampath for this interview.

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HOW TAMIL NADU SET A RECORD FOR INVESTMENTS DURING THE LOCKDOWN Tamil Nadu has been in the news for attracting industrial investments even during the lockdown period. How was this possible?

Yes, Tamil Nadu has set a national record in attracting new industrial investments during the lockdown period. The state signed 41 MoUs so far during the lockdown, which will bring Rs. 30,644 crore of investments into the state. I think this is thrice the MoUs signed by any state during the lockdown period. It was achieved without any Global Investor Meet or such initiatives. These projects also involve massive job creation, with over 67,800 new jobs possible when these projects start functioning. This was possible because under the guidance of our Chief Minister Edappadi K Palaniswami, the Industries Department had formed a Special Investment Task Force and three Expert Committees headed by senior-most officers like former RBI Governor C Rangarajan, our Chief Secretary, Finance Secretary etc.

These Expert Committees had broad participation of experts like economists, scientists, educationalists, management experts and industrialists.

Can you tell us some of the larger MoUs that have been signed recently?

Yes, they include Daimler India Commercial Vehicles for Rs. 2277 crore, Polymatech Electronics, Salcomp, Chung Jye Company Ltd, Aston Shoes Pvt Ltd, and many more. Some of these projects will be major employment generators and the shoe company alone will create 25,000 new jobs, while Salcomp will generate 10,000 jobs.

Other major MoUs are with Vikram Solar that will invest Rs. 5423 crores and will create 7542 jobs; with Hiranandani Group company Yotta that will set up a data centre with an investment of Rs. 4000 crore and create 2500 jobs; and Adani Enterprises that will also set up a data centre with an investment of Rs. 2300 crores.

How has been Tamil Nadu’s trackrecord in implementing previously

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signed investment MoUs, especially in recent years and quarters?

We held the last Global Investment Meet in 2019, which saw a record number of MoUs being signed. Many of these agreements have progressed to become real projects at the ground level, and are now at various stages of implementation. Last month, our Chief Minister had inaugurated 11 major projects, over video conferencing, due to the Covid-19 situation. All these projects were signed in the Global Investment Meets. The MoUs signed by Tamil Nadu are now becoming real projects under implementation within less than 6 months or even less than 34 months. Some of the larger projects that were inaugurated recently include TPI Composites, USA; Glovis Hyundai, Korea; Sojitz Motherson, Japan; Rajapalayam Mills; Mahindra Steel Services; Gulf Oil; Tata Consultancy Services; and Lucky Weaves. These 11 companies’ investments are worth Rs. 3,185 crore and will provide employment to over 6,955 persons in the next few years. On the same day, the CM had also laid the foundation stone for 8 more projects entailing investments to the tune of Rs. 2,368 crore. These include the International Tech Park Chennai (ITPC) promoted by the CapitaLand group. This is a Rs. 1500 crore project and the firm will commence construction for the first phase of the 23.3-acre IT park at Radial

SIGNED 41 MOUS DURING LOCKDOWN

Road, which will have 4.6 million sqft of office space. Other major projects for which the foundation stone was laid include Tata Chemicals, at SIPCOT Industrial Park, Cuddalore; and Nissei Electric, Japan.

The state has identified Defence and Aerospace as two focus areas. What are the initiatives in this regard?

Tamil Nadu is already a leader in these areas. This is because of two reasons.

One is that due to the already thriving automotive and component industries, it is easy to adapt to the manufacture of defence and aerospace products and components. Secondly, Tamil Nadu is home to one of the only two Defence Industrial Corridors in India, which are national projects by Government of India.

In the state this Corridor is coming up between Trichy, Salem, Coimbatore & Hosur, and will involve investments worth Rs. 3000 crores. Recently, our Chief Minister has laid the foundation for Aerohub, which is an Advanced Computing and Design Engineering Centre for Aerospace and Defence Industries at the upcoming Aerospace & Defence Industrial Park at Sriperumpudur.

This is being set up at an investment of Rs. 250 crore by Tamil Nadu Industrial Development Corporation (TIDCO) and TIDEL Park Ltd. This shows our commitment to the Tamil Nadu Aerospace and Defence Industrial Policy 2019, which is being further tweaked now.

MoUs ARE WORTH RS. 30,644 CRORE Tamil Nadu had come out with an Electric Vehicle Policy. What are the major initiatives in this regard?

The state has been a first-mover in this emerging industry. Already Hyundai is manufacturing their Kona Electric SUV in the state. It was launched in March 2020 and already over 50,000 cars have been manufactured. The Electric Vehicle Policy announced last year will accelerate the adoption of this technology in the state, leveraging on the state’s strengths in automotive and automotive electronics manufacturing.

Our EV policy is also designed to boost this industry the maximum possible.

Apart from Central Government waivers like registration fees, Tamil Nadu is offering 100% motor vehicle tax exemption for all electric vehicles.

There will be no permit requirement for three-wheeler goods carriers, e-carriers as well as electric light goods carriers.

We are also creating a robust infrastructure for electric vehicles including adequate and affordable

power supply and a vast network of charging points, with an objective of one charging station every 25 km on national and state highways. A new EV Park is also being set up by the Tamil Nadu government.

What all will be the main features and the offered incentives of this EV Park?

Since Electric Vehicles industry requires a manufacturing ecosystem of its own, the Tamil Nadu Government has decided to set up a dedicated park for this purpose. This EV Park will initially be spread across 500 acres of land, with another 2500 acres being planned for expansion. It will be a hub for electric vehicles (EVs) and component manufacturing units including battery and charging equipment. Units in the EV Park will have incentives like 100% GST reimbursement and 50% capital subsidy. The park will offer incubation services in the form of office space, common facilities and mentoring

support to encourage start-ups in the EV sector. Support will also be provided for existing automobile manufacturers to adapt to the EV manufacturing system including a one-time re-skilling allowance for the existing production line employees. Our aim is to attract investments worth Rs 50,000 crore from this fast growing sector, which will create around 1,50,000 new jobs.

What is the power situation in Tamil Nadu? There has been a move to export renewable power to the tune of 3000 MW to the Western states.

Can this be sustained in the summer months too?

Tamil Nadu is now producing 16,000 MW of electricity by various means, including renewable sources like wind and solar, and the state is power surplus by a good margin. That is why we are able to supply to other power-deficient states and we are supplying renewable energy because these states have some commitments to use a certain level of SEASONAL MAGAZINE

HOW TAMIL NADU SET A RECORD FOR INVESTMENTS DURING THE LOCKDOWN renewable energy. During summer months, the power consumption in Tamil Nadu is higher, but I think we can still continue to export power to these Western states. Tamil Nadu’s power surplus status is in fact helping us greatly to attract new industrial investments into the state as industrialists face no hassle regarding power, from day one of their operations here.

Chennai has been badly affected by the pandemic like other metro cities of India. What about the Tier-2 cities of Tamil Nadu? How has been the post lockdown industrial performance in these cities?

To avoid congestion in Chennai, the government had long ago started attracting businesses to our Tier-2 cities.

We have been developing cities like Coimbatore, Thoothukudy, Salem, Hosur etc and most of them have performed better after the lockdown ended. Industrial units at all these places are up and running at 75% capacity. In and around Chennai, it is at around 50% capacity now. The situation is slowly getting back into control.

With Tamil Nadu facing elections by early next year, how do you assess the achievements of the industries department? Are there any other initiatives like Investment Meets or overseas visits scheduled before the

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elections?

Tamil Nadu assembly elections are likely to be scheduled in March of 2021.

So, there is no time for a Global Investment Meet or for overseas visits now. There is no immediate need either as investments have been flowing into the state even during the lockdown. The industries department is confident of facing the election, as most promises in last election’s manifesto have been met. And many more achievements too have been made during these five years.

Tamil Nadu’s position as one of the leading industrialized states has been further cemented. We will conduct the next Global Investment Meet in 2022 after returning to power.

What all would be the new industrial initiatives projected in next year’s election manifesto?

The manifesto is yet to be finalized, but the broad initiatives that are pursued currently will continue. All companies are most welcome here. We will meet all their requirements in a proactive manner and will continue to offer the best incentives to invest here. Tamil Nadu is one of the most peaceful states and together with that our industry friendliness in every aspect will help the state to maintain its leadership position in India. The road, rail, airport and seaport connectivity are already the best in the country and will continue to be developed to international standards.

Chennai has 3 modern seaports for the heavy lifting of exports and imports, apart from the Thoothukudy port. The nearby Karaikal port is also benefiting the state. The uninterrupted and surplus power generation in the state will ensure that all industries get affordable electric power in abundance to meet their needs.

With the India-China tensions still brewing, are Chinese companies welcome in Tamil Nadu?

Tamil Nadu is already a leading destination for Chinese companies in India. We have some of the largest Chinese companies operating in India, like Foxconn that has created 25,000 jobs in the state. Chinese companies know where to go when they come to India. It is Tamil Nadu. That will continue and we are welcoming all Chinese companies, subject to Government of India’s permission.

With the healthcare sector and manufacturing coming into focus with the pandemic, what are Tamil Nadu’s plans to capitalize on it?

We have a Medi Park near Chennai in 330 acres, at Chengalpettu. Companies that are making medical equipment are most welcome here. When it comes to medical tourism too, Chennai is a leader in India. Now, due to the pandemic and lockdown, this has been affected, but Chennai will bounce back as the health

city. Tamil Nadu is also the number one tourism destination for both domestic and overseas tourists, and that too is affected now, but we will bounce back after the pandemic.

Apart from private investments, what all are the major government investments in industrial infrastructure?

The three largest industrial infrastructure projects are the Chennai-Bengaluru Industrial Corridor, ChennaiKanyakumari Industrial Corridor and the Western Industrial Corridor. All these are Central Government projects and the state government is fully supporting these initiatives in all ways including in land acquisition.

Are there plans for new industrial parks from the state government’s side?

Apart from the Aerospace & Defence Industrial Park and the Electric Vehicles Park I mentioned, the government is not

planning to develop any new major parks. This is because, due to the vision of this government in its early years, the state is now surplus in both acquired land and built-up space.

Around 40,000 acres of land bank is now available with the government for industrial use, while developed areas by various parks like SIPCOT that can be utilized as per the demand is over 2000 acres. The built-up spaces in our parks are of a plug-and-play nature so that companies can come in and start operating within weeks.

What about the employment situation in the state?

Tamil Nadu leads the country with the least unemployment rates. In 2019, we created 10 lakh jobs. Even during the lockdown period, we moved fast to attract investments that will create 67,000 jobs. There are also 50 lakh

MSME units in Tamil Nadu, which is also an India leading figure, and the state government is supporting them wholeheartedly to ensure that they grow and continue to create jobs.

Overall, this government would have created over 1 crore new jobs.

Do you think India and Tamil Nadu needed this kind of a long lockdown?

I think there was no other alternative.

Covid was not manmade and so was the lockdown. But looking at the pace with which we continued to attract investments even during the lockdown, I am confident that many more companies will come here when the pandemic ends, as many companies will be relocating to better places. Already, there is a pipeline of investors and projects waiting to enter Tamil Nadu.

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EDUCATION NATIONAL EDUCATION POLICY 2020

5 CORE WAYS NEP 2020 WILL CHANGE INDIAN HIGHER EDUCATION

SEASONAL MAGAZINE

he National Education Policy (2020) has perhaps been the only shining light in an otherwise insufferable year. Calling for radical changes to the Indian education system, the NEP is both an aspirational and realistic policy document. It is aspirational because it envisages the pressing revamp of many institutional behemoths that have pegged back progress over the years while its realism lies in the broad achievable goals across a 15-year timeline. While no one predicted that the announcement would be imminent so soon, especially as draft policies in general take its own ‘sweet’ time to come to the attention of policy makers,

the context of these times warrant quick action and implementation. As the pandemic has disrupted every level of the Indian education system, the recommendations made by the K. Kasturirangan Committeee are noteworthy for its post-COVID reality checks.

It has been over 50 years since India formulated its first National Policy on Education, under then Prime Minister Indira Gandhi in 1968. However, most pillars of this Education Policy preceded the Policy itself, as under the leadership of Prime Minister Jawaharlal Nehru itself, institutions like UGC and IITs came into being, and even NCERT came into being before the first policy by Indira Gandhi. Eighteen years later, in 1986, India had its second National Policy on Education under then Prime Minister Rajiv Gandhi. Both these policies, especially the second one had revolutionary changes that impacted the quality of educational institutions for decades to come. Just 6 years later, in 1992, under Prime Minister PV Narasimha Rao’s leadership, this second policy was significantly modified and improved without going in for a new policy. Further modifications were introduced by Prime Minister Dr. Manmohan Singh in 2005, again without creating a new policy. Now, in 2020, under Prime Minister Narendra Modi’s leadership, India’s National Education Policy (NEP 2020) has proposed sweeping and far-reaching changes that will shake the foundations of the sector. While the policy is for everything from pre-primary to research, here is a look at five of the most profound ways in which NEP 2020 will impact Higher Education and Higher Education Institutions in the country.

Who Will Regulate the Higher Education Sector?

For decades now, the higher education sector in the country have been regulated by eminent independent bodies like University Grants Commission (UGC), All India Council

for Technical Education (AICTE), National Assessment & Accreditation Council (NAAC) and various professional councils like Medical Council of India, Bar Council of India etc, as well as Ministry for Human Resource Development of the Government of India. While there was always room for improvement in the output of these bodies, they served their purpose well and good as is evidenced by the worldwide good reception our graduates, postgraduates and research scholars used to get. The New Education Policy 2020 however proposes a sweeping change in this governance and regulatory structure. Education governance is to be headed from now on by a new body, Higher Education Commission of India (HECI) or Rashtriya Shiksha Aayog, which will be an apex body for education, to be headed by the Prime Minister. This umbrella body would also comprise of four independent verticals - National Higher Education Regulatory Council (NHERC) for regulation, General Education Council (GEC) for standard-setting, Higher Education Grants Council (HEGC) for funding, and National Accreditation Council (NAC) for accreditation. This body will be responsible for developing, implementing, evaluating, and revising the vision of education in the country on a continuous and sustained basis, except for medical and legal education.

What Will Happen to UGC, AICTE, NAAC, & Professional Councils?

Sweeping changes are awaiting most of these apex bodies if and when all the proposals in National Education Policy (2020) are implemented. University Grants Commission (UGC), the most venerable body controlling Indian higher education for decades, had already seen much erosion in its powers during the past few years. This erosion in its powers will accelerate now under NEP 2020 as National Assessment and Accreditation Council (NAAC) is being demerged from it, and the only major SEASONAL MAGAZINE

role remaining for the University Grants Commission (UGC) will be providing grants to higher educational institutions.

Similarly, the NHERC will be the independent regulatory authority that will facilitate in limiting the functions of all professional councils like AICTE and Bar Council of India. NEP 2020 has proposed this as the current higher education system has multiple regulators with overlapping mandates. While this reduces the autonomy of higher educational institutions, it remains to be seen whether a new single regulator like NHERC will cause too much centralization of power. National Assessment and Accreditation Council (NAAC) is perhaps the only old body that will get a new lease of life albeit without ‘Assessment’ anymore (NAC).

In its new role, NAC will function as the top level accreditor, and will issue licenses to different accreditation institutions, who will assess higher educational institutions once every five to seven years. All existing higher education institutions should be accredited by 2030. Even the Ministry for Human Resource Development (MHRD), is going to witness major changes. NEP 2020 has suggested that the Ministry of Human Resources and Development must be renamed as the Ministry of Education in order to bring focus back on education.

Who Can Approve Creation of New Universities?

Until now, approval for new universities – both public and private - came under the powers of either Parliament or State Legislatures as a new law or act specifically drafted for each public, deemed-to-be or state private university was necessary for creating them. But not anymore. One of the most fundamental and sweeping changes in the new National Education Policy 2020 is that when it is implemented, the power to set up new universities will be vested in the new apex body, National Higher Education Regulatory Council (NHERC).

All such newly constituted higher educational institutions must receive SEASONAL MAGAZINE

accreditation as mandated by NHERC within five years of being established.

However, for all practical purposes it seems that private edupreneurs would make a beeline at NHERA as from now on it bypasses the checks and controls possible by Parliament and State Legislatures. While this measure has been taken to make it easier to set up new universities, if it is not properly implemented, this can end up in acute centralization of powers in NHERC with regard to who can start new universities, with no regard for the opinion of legislators at central and state levels.

Same goes with the objective of transparency, as usually transparency suffers when legislators are kept outside of such core nation building activities.

What is the New Restructuring of Higher Educational Institutions?

Until now higher education institutions have been classified as numerous entities like colleges, institutes, universities, deemed-to-be universities, private universities, as well as by the domains they focus on, like engineering colleges, medical colleges, B-schools, law academies etc. While the current varied structure has largely aided in conveying the specific role of each entity, it can be argued that this varied structure has been confusing to many.

NEP 2020 has suggested that the Ministry of Human Resources and Development must be renamed as the Ministry of Education in order to bring focus back on education.

National Education Policy 2020 has proposed a new restructuring of all higher education institutions, not by the domain they occupy or their aspirations, but by the primary role they play in education and research. As per this new formula, higher education institutions will be restructured into three types: (1) research universities focusing equally on research and teaching; (2) teaching universities focusing primarily on teaching; and (3) colleges focusing only on teaching at undergraduate levels. A sweeping change seen in NEP 2020 in this connection is that all such institutions will gradually move towards full autonomy academic, administrative, and financial. Apart from freeing up research universities to focus more on research, NEP 2020 also proposes establishing a National Research Foundation. As the total investment on research and innovation in India has been declining, with the country lagging behind many nations in

number of researchers (per lakh population), patents and publications, this National Research Foundation, will be set up as an autonomous body, for funding, mentoring and building the capacity for quality research in India.

The Foundation will consist of four major divisions: sciences, technology, social sciences, and arts and humanities, with the provision to add additional divisions. The Foundation will be provided with an annual grant of Rs 20,000 crore (0.1% of GDP).

What are the New Academic Directions in Higher Education?

Moving with the rapid strides in technology and the growing need for interdisciplinary professionals wellversed in different domains, National Education Policy 2020 proposes sweeping changes on two academic fronts – technology in education and interdisciplinary education through a liberal arts approach. On the technology front, NEP 2020 proposes to set up two Technology Missions. The first one will be the National Mission on Education through Information and Communication Technology. This Mission will encompass virtual laboratories that provide remote access to laboratories in various disciplines. A National Education Technology Forum will also be setup under the Mission, as

an autonomous body, to facilitate decision-making on the induction, deployment and use of technology. This Forum will provide evidence-based advice to central and state-governments on technology-based interventions. The second Technology Mission proposed

by NEP 2020 is the National Repository on Educational Data. Under this, a National Repository will be set up to maintain all records related to institutions, teachers, and students in digital form. Further, a single online digital repository will be created where copyright-free educational resources will be made available in multiple languages. Introduction of a single

Four-year undergraduate programmes in Liberal Arts will be introduced and multiple entry & exit options with appropriate certification will be made available to students. university entrance exam conducted by the National Testing Agency will standardize the admission process.

Coming to the interdisciplinary front, NEP 2020 is moving higher education to a liberal arts approach, which has been gaining ground in developed nations too. The policy recommends making undergraduate programmes interdisciplinary by redesigning their curriculum to include: (a) a common core curriculum and (b) one/two area(s) of specialisation. Students will be required to choose an area of specialisation as ‘major’, and an optional area as ‘minor’. Four-year undergraduate programmes in Liberal Arts will be introduced and multiple entry & exit options with appropriate certification will be made available to students.

Further, within the next five years, five Indian Institute of Liberal Arts must be setup as model multidisciplinary liberal arts institutions. Further, the policy also sets the stage for foreign universities to setup offshore campuses in India thereby improving competition with Indian counterparts and later offer competitive and affordable tuition fees for higher education.

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IN-FOCUS

THYROCARE TECHNOLOGIES

SERVING THE NATION, AGAINST ALL CHALLENGES Dr. A VELUMANI, FOUNDER & CHAIRMAN OF THYROCARE TECHNOLOGIES, THE LEADING DIAGNOSTIC CHAIN IN THE FOREFRONT OF THE COVID-19 BATTLE, IN CONVERSATION WITH SEASONAL MAGAZINE. hyrocare has emerged as a leading diagnostic chain in Covid-19 testing in the private sector, with well over 1 lakh PCR tests completed. But the journey of this pioneering diagnostics firm to this level has not been an easy one. The company was slapped with even closure notices citing discrepancies in its Covid19 test results. According to Founder & Chairman, Dr. A Velumani, the firm which has not received any show-cause notice in the last 25 years of its existence, readily obtained around 25 show-cause notices from bureaucrats since the pandemic began. This former scientist and entrepreneur attributes this all to the ignorance of some IAS officers about this disease. But when the harassment became unbearable in certain locations like Thane, this listed player formed a legal cell and mounted a spirited battle, which finally found justice from the High Court of Maharashtra which ordered the state government that Thyrocare’s views should be heard. Since then, things have fallen in place for Thyrocare. Dr. A Velumani stunned the nation recently when he disclosed that around 15% of all samples coming in for Covid antibody testing at their centres were positive.

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What this implies is that the SARS Cov-2 virus had contracted multi-times people than government estimates show, and also that the majority of them had swiftly developed a healthy antibody response to it. Thyrocare is known for its high-volume / low-pricing strategy that is sure to gather further momentum in these stressed times. In fact, it was the first lab to voluntarily reduce Covid-19 testing charges, and to even offer the government rockbottom rates for some tests. Despite offering such affordable rates, the company’s financials are on a solid ground, with industry-leading EBITDA at 40%. It was also the first diagnostic chain to go for its IPO and get listed in the Indian markets in 2016. Seasonal Magazine recently caught up with Dr. A Velumani, always an outspoken leader, and now an insider in this battle, to hear from him about the i n t r i c a c i e s, my t h s, l e g a l i t i e s, ground realities, guidelines and future directions of this pandemic, as well as to know how Thyrocare is poised to make a good business for its stakeholders even while serving the nation ahead of anyone else in its industry.

Dr. A Velumani Founder & Chairman

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Dr. A VELUMANI, FOUNDER & CHAIRMAN OF THYROCARE TECHNOLOGIES, IN CONVERSATION WITH SEASONAL MAGAZINE. Are you currently in Mumbai?

I am in Mumbai as much as Rajnikanth is in Chennai. It has been 40 years in Mumbai now.

Can we start with you explaining to us what are the different types of COVID-19 tests and the trade-offs between them as far as public is concerned?

Yeah, so there are two COVID tests.

One is COVID PCR test. Another is COVID rapid antigen test. Both tests are useful in COVID presence, diagnosis of COVID presence. PCR test is costly, most reliable but takes time. Whereas rapid antigen test costs half and it is very rapid (it gives result in an hour ) but it is not as reliable as RT-PCR. Now as far as reliability is concerned, though it is a matter of concern. If there is a patient in the hospital and if a rapid antigen test is done and if it is positive the case is positive. So you want to take a decision fast you can take a decision fast but if it is not positive, that doesn't mean it is a negative. So, you have to make them go to your laboratory and do the RT-PCR test and then if RT PCR is negative then it can be concluded that it is truly a negative, otherwise it is positive. So if you ask me in only hospital setup, it gives the advantage of taking care of that 50% of the positive patients. Cost-wise, it's still not proved that it is a better option. But speed-wise, yes. Still people have not started using it extensively and if you asked me, it will take some more time and rapid antigen test will be used in the long run.

And what about this antibody test that many of the people have been talking about?

Yeah, I wanted to tell you there are three different tests but I didn't want this third one to confuse things, because I talked about the presence of virus, which can be estimated only by RT-PCR or by Rapid antigen test. Antibody test is very different and if it has to be put in a layman language, the PCR test is toothpaste and antibody test is a shaving cream. It cannot be interchanged. If I have to explain in a different way for a SEASONAL MAGAZINE

layman, virus is a terrorist, and RT-PCR test is to find out whether the terrorist is housed inside or not. Antibodies are security guards and antibody test is only useful to find out whether there are security guards or not. So, they both have no commonality though people often get confused. And if antibody test is positive, you know in laboratory tests, any test positive is bad news but pregnancy positive is good news.

Similarly, Covid antibody positive is also good news. So this very different and there is no true comparison between these two.

Many labs were dragged into this controversy and even Thyrocare's name was used and what was the reason for all this?

See lab technologists are lab technologist, doctors are doctors, immunologists are immunologists, virologists are virologists. So, these are all four different species and there is a fifth species that is IAS officers. So, the IAS officers’ perception was, positives should not become negative. Now, if positive does not become negative, that man will not be able to survive. If, in the country, 2 lakh patients are infected at least 1.2 lakh have gone home treated. That means this 1.2 lakhs were positive are now negative. So, the basic fact which these IAS officers are forgetting is that all negative people who are infected one day have to become positive and all positive people also have to one day become negative.

So, they keep on sending show-cause notices, and they won't listen to us. If we answer they will think that the laboratory is bluffing since they have an upper hand to take decisions. So, it has been a huge harassment but in spite of that, we could do 1.1 lakh tests in the last 100 days. So, it did hurt us and it did cause harm to the brand, but then it could not be stopped.

Was it also because it takes some time to be positive? Is there an issue like that?

No, after the exposure the person becomes a positive on the third day and

on the 20th day it becomes a negative again. So, if you test the second day and fourth today you will find the negative becoming positive. If you test on 18th day it will be positive and on the 20th day it will be negative. So there is this issue of positive-negative changes happening. Medical doctors know it, laboratory people know it, technologists know it, and virologists know it, but as I said officers will not know it or learn it. But when they have the control in their hands after invoking the Pandemics Act every show-cause notice will come saying “why we can't take action against you under the Act�. I must tell you, I have been running the business for 24 years and not a single notice of this kind has been received.

But in these last hundred days 20 showcause notices have been served.

Therefore, we always had a lab with different departments; but today we also have a legal department.

Can you tell us a bit about your subsidised rates for the government at around Rs 2000?

Yeah, we made an exclusive offer for a state government and municipality, thinking that if they give all the testing to us, we would be able do the testing at this rate. The idea was that if you give all business to us ensuring that we have volumes. What they did was they didn't give the entire consignment to us. Then they told the others also to do the tests at concessional rates and that way nobody gets enough to survive. So it was a kind of misuse of the court-given power and all my competitors think that this decision has spoiled all our futures.

I was very adamant to get all business then only we could conduct at that rate, but it is all good and long as it does well for the common man, everything is good. We have no regrets today as we are doing a wonderful volume and in this volume this rate is working profitably for us, there is no loss.

But some of the labs are saying that it is not possible to offer at this rate and all? How do you view that?

See, traditionally in the healthcare

business there are some value operators and some volume operators. I think value operators believe each set specimen should give top profit. The volume operators feel if I do 100 crore, what will be my raw material cost what will be my profit and so on. So, volume players will need volumes and that needs reduction of prices. So, this is known that somebody who doesn't want too many will take too little cases but charge royally. There are some who don't mind and accept every business because there are a lot of benefits available on the purchase side. I am a seasoned businessman, and for me, whatever is the rate I can work because there are tradeoffs that will come. So this is a natural phenomenon in the laboratory business that if you fix a low rate, the volumes will come and if the rate is too high volumes will not come.

Is there any truth in the saying that they are using different kinds of test kits?

No, there are only a few test kits available in the marketplace. We don't use any lesser quality than the best but the same best for them it is a different rate and for us it is a different rate. You know there are only four major companies in laboratory test kits. I don't think any of them are very different by way of quality or price. It is only that these costlier labs have to justify why they charge more they will tell my quality is better, my systems are better and so on.

Also you got some support from the court. I think the Mumbai High Court had to intervene in the testing restrictions in Thane. What is your account of the same?

Yeah, what happened was that Panvel Municipal Corporation did not give a notice to us; they gave a notice to the media. We wrote the response after realizing that the notice was in the hands of media, and we responded accordingly. They did not respond to that. We then sent them a mail, tried contacting them for an appointment, and they did not respond. Then our SEASONAL MAGAZINE

SERVING THE NATION, AGAINST ALL CHALLENGES employees went to the Municipal Corporation and asked to have a meeting. The concerned official told us that they were not free for the same.

Consequently, we really had no choice but to go to the High Court. We went to Bombay High Court and court called and asked "Did you listen to them?" It was concluded that we were not to be held in contempt and that it was a clear misuse of power to trigger a personal agenda. Instead of making their case, they did not even listen to us. Under this stressing pandemic time, it is extremely unfair of people to use personal interest or politics to ban the laboratories from doing their job. And Thane today has the highest COVID burden and that is because Thyrocare is making sure that extensive tests are being done in the region as we are the biggest lab there. So, if somebody went ahead and did it for any reason whatsoever, it's unfair on the people.

We have faith in the court as they look at the issue comprehensively and without bias. The only thing is that temporarily the name of the company has been dragged into controversy unnecessarily.

So now all your branches are up and running, even in Thane?

You know we have only one laboratory, almost all our tests are home collections.

So now again we are doing home collection and now Thane Municipal Corporation has requested us to put our collection centre in their premises. Now look at this, we were banned ones, and now we are needed. I think these are all unfortunately some whims and fancies of a few individuals.

How is the demand from corporate sector for the Covid tests?

The Corporate sector is very scared and confused at the moment. Government is not permitting anybody to do the test.

Government is believes that everybody who tests will be positive and they don’t have the resources to track and quarantine everybody. But that should not be a reason why somebody should be stopped from testing. So until recently, corporates were not permitted SEASONAL MAGAZINE

to test. Even today corporates have to take permissions from the government and then only they can test. Having said that, it has only been possible so far due to the pressure from the trade unions on the management to go to the government to allow testing to be done.

So they are permitting some companies to come. Some business is coming but a lot more business would be coming once it becomes liberalized.

What kind of tests are they usually taking? Are they taking the antibody test only?

Some of them are taking the PCR test for the senior management and some of them are taking antibody tests for everyone. So if you ask me, since the PCR test is very costly, it's very difficult for someone who has 10,000 employees to go for PCR. So they are also using government as a reason not to test because even if union puts in pressure, they blame the government for not giving permission. There is rhetoric of "what can we do?" So everybody is playing as per their own convenience, but it's all right because doing the test does not change the course of the treatment either. So I see that we are all moving towards convenience side rather than moving towards a judicious decision.

In the coming weeks, are you expecting an uptake in the corporate sector?

Yes, in fact, a lot of corporates have inquired and we have quoted and they probably are looking for some approvals from the top management and from the government. We think that by August it will start moving and that it will peak

by December.

Is government permission is needed in all states for corporate testing?

Yes everywhere you can't do anything related to COVID. The antibody test has been allowed by ICMR without any specific criteria and that is not controlled because that is not putting pressure on government because if your antibody is positive the government need not act on it. So, RT-PCR positive names would bear a lot of other implications. So, antibody

test is fairly free.

What would be the reliability percentage of the antibody test? If you were asked to put a percentage on it, what kind of percentage you would give?

You know, reliability-wise antibody tests are very, very reliable. You won't to get an antibody in your body until you have met the virus. So, there is no doubt that positive means your body has seen the virus you might have not seen and developed antibody for it. So, to that extent the antibody test is very reliable.

Number two, from whatever studies we have done we have done in 15 days period around 60,000 investigations, I have put it on my Twitter and we find on an average around 15% of the population in the country are already exposed to this virus. So, when the country is having very little infections, but very high exposure, it says that the virus has already started immunizing freely, without cost, without pain and without knowledge. So, this is something which is happening that can be called good. We started this around 15 days back, the first five days we observed it around 7%. Today we are crossing 11% some of the cities are 2025% and if it becomes 50% that means we are through with the peak of its problems. So, it is good to monitor and see the journey of the virus.

This percentage that you put, does that mean that 15 percentage of the people are exposed to the virus and have developed antibody for it?

Yes, otherwise where will the antibodies come from, these are very specific antibodies.

Is the rate different all over the country?

Yes, in Mumbai it is 17%, in Delhi is 23%, and Ahmedabad also where active infection cases were high a month ago is having high level of antibodies. So, in the towns where currently active cases are high they will have a high antibody rate after 15 days or a month later. So, that is something which can always have peaks post the peak of infection. One month post the peak of

infection antibody rates start rising.

How many days after the exposure does the antibody appear?

The virus is in the body from day 1 to day 25. Generally speaking, after 25 days, either the virus is dead or the person is dead. But antibodies start after the 10th day and antibody peaks on the 30th day and antibody remains in circulation even for a couple of quarters to couple of years. So, in a person with antibody, there was an exposure. Now, when you have an antibody it is like you were immunized. If you happen to get this virus again, your antibody response will save you. If you want to understand it in a simple manner, in the China-India border conflict, the Chinese had attacked the Galwan Valley. Later, our troops were stationed there itself such that if China attacks the very next hour India will be able to defend and retaliate. So, to that extent antibody positive means the security forces are there to defend.

If some 50% of the people have these antibodies, does that mean the city or that region has developed herd immunity?

Yes, it says that the virus will now find

fewer people who are unexposed. So the number of infections per day will be lesser and the number of deaths per day will come down. So, for this you need to reach a specific percentage of immunity that is what science call herd immunity. Herd immunity means immunized by the virus and not by artificial vaccination. Now, you will start hearing many politicians tell this and that about herd immunity without understanding what it is. Actually, it is good to have herd immunity because without vaccination, herd immunity is the only thing that can save people otherwise there is no other way of escaping from it.

So this data of 17% antibody positive rate that you told for Mumbai, that's really positive thing for us, right?

See I'll tell you if you look at the numbers, all these nations like Germany, Israel and Italy have more than 40% antibody positive rate. New York City has more than 25%. Wherever large number of cases was there the antibody levels are high. So, it will be in metro cities and then it will go to other cities and finally it will spread to the entire country. When we would have

40-50% then the virus will have less people to attack and spread itself.

What is you assessment of the country's fight against Covid?

The nation did not put up much of a fight, just a lot of shouting. They did not understand the virus at all and politicians declared that in 21 days the virus will die down. I think even 21 lockdowns will not kill the virus. But this is a new learning curve for all politicians. First they claimed we escaped this crisis, but are now telling us to learn to live with the virus. It seems like a 360 degrees turn. Having said that, I wouldn't blame anyone. It's one of its kind crisis, first time happening in the last hundred years and no one had any previous knowledge about what the virus will do. People created such a fear that it will kill 1 in 100 but actually it has not killed one in 1000, but only killed one in 10,000. So, you can feel you have fought, but actually the virus has been fairly mild to India. India has a better immunity compared to the Western world because of low per capita income and low per capita income means you have exposure to all pathogens. So, by the way of our living our body has developed a higher SEASONAL MAGAZINE

SERVING THE NATION, AGAINST ALL CHALLENGES immunity because of which you have lost less number of people. The mean age of India is 28, that of China is 38, and that of Europe is 48 so, wherever old people are there, it kills more people. India is a young country so we are relatively safe.

And do you think the lockdown was mandatory?

It was mandatory but when we locked down our job was not doing nothing and clapping hands and banging plates. Our job should have been manufacturing ventilators and oxygenators which we did not do. Four lockdowns left people living in squalor and on roadside. Dead bodies were waiting for cremation.

Lockdown should not have been imposed before we were prepared for this. So I personally feel that a leader is a leader only when everything runs smoothly. And when things collapse when the order is disrupted, it comes out that only very few are true leaders.

Leaders are also a part of this panic which should never have been the case.

Kerala compares with Tamil Nadu and Tamil Nadu compares with another state everybody thinks that I will prove better and to prove it, they hide the numbers.

They don't do the testing and the last hundred days has been a very great learning for a scientist as to how politicians can use 29 philosophies in a country with 29 states.

What has been the situation in Thyrocare with test segments other than Covid?

Yeah, actually it's a little astonishing that government had mandated all nonCOVID tests to be delayed, stopped, or postponed. The entire country's doctors, which is a million doctors and a million nurses and so many hospitals were not handling Covid, and suddenly everything stopped. That means there were no avenues for diabetic patients, for cardiac patients, for arthritic patients, pregnant women, dialysis dependents and so on and so forth. So, we thought, you know, this is the big problem, I have been telling this to my friends and colleagues that till a big problem comes the small problem is the biggest SEASONAL MAGAZINE

problem. So, now that the big problem has come, all problems are considered vanished. To answer your question, a lot of people are doing online consultations and some tests are being done. Some medicines are being purchased; they are not visiting clinics and hospitals in the fear of infection. So slowly the non-COVID tests are returning, non COVID patients are returning and non-COVID medicines are getting sold. So little things are happening but still hospitals are mostly busy only with COVID. The volumes have gone down in the non COVID segments?

It went down to 5% during lockdown and in the month of June it came back to 20% and in the month of July it is 50% and we believe that by Diwali it will be 120% because there are pent up volumes because of lack of transportation and mobility.

You had some good business in the preventive and wellness diagnostics.

What is your assessment of that?

Yeah, see, I will tell you the healthcare segment is going to do very well. There are many industries which are dead.

And there are many industries which are slightly minus and there are some industries that are slightly plus. There are some who are going to enjoy a lot.

So, in that healthcare plays a very big role and wellness, fitness, and nutrition play a big role and personal hygiene products will suddenly see a spike. If you see on the television all advertisements are around COVID. Every soap says it kills COVID, every detergent, even bathroom cleaners will tell we will kill COVID. So, if you notice all related to personal hygiene businesses will prosper. In the healthcare business, there is less scope for treatment and more for diagnosis because in Covid treatment options are very little. It is only hospitalization, with not much of a treatment but in the case of the laboratories they will have good opportunities. So I am of the opinion, that common man who was paying only 3-5% of his annual income for healthcare will now spend 10%.

Government which was only spending 2- 3% of GDP, will spend 10%. So that's a huge leap, of almost five times of what was being spent. Insurance will also penetrate more because now people will know they have a higher risk. So they will pay the premium and become a health insurance policy holder. So I think everything will work and even government's PM-JAY is likely to put a lot of money in the bottom of the pyramid. So I think overall healthcare will have a very powerful journey for the next 10 years.

Do you do genetic predisposition test for diseases?

Thyrocare is committed to volume business. So if you ask me, we might get into it by 2025. We did start this business but within one year, we have understood it is a very early market. W entered into the playground before even the game had started. So, we felt that it's too early and COVID made sure that we have stopped it. Now, we will not restart it. We will restart it only after five years because market size is needed. I am a disrupter but I will only disrupt if there is a market.

And the imaging, you had a business for imaging, what about that?

Yeah, imaging is one business which we did not do very well, mainly because that's a very capital intensive business and the radiology business is not today run in the country in an organized manner. And a lot of cut-throat practices are there pushing businesses to do immoral things. I did not do anything immoral because of which I did not make any profit from it in the past 10 years. Let me make you understand this irony - I invested two lakhs in pathology and today it is worth half a billion dollars. In radiology I put in my hardearned money of 200 crores, but no profit! So businesses are very different.

One is scalable, disruptable, and the other is basically not scalable, and therefore disruptable. So everything is a learning and we are not scaling up the radiology business but continuing the status quo. However, I am happy about my contribution for the cancer cause.

Can you tell us something about how this affordable strategy works with profit margins and return ratios like RoE? One thing is very simple. There is something known as volume based business. Though your Apple phone is sold at Rs 50,000 to Rs 75,000, its making cost is merely Rs 10,000-11000 even with such wonderful, impeccable quality. Why is it so low? It is so low because they are manufacturing in millions. So, any product manufactured in volume, any services that does volume will have a huge pricing

comfort. Now, whether Apple Phones should be sold at Rs 50,000 or Rs 25,000 is the management's decision. Assuming that they are sold at Rs 50,000, they have allowed Samsung to become number two. So, I too had a very similar pricing comfort as my volume was so high and my cost was so low that if I don't charge lesser than the market rate I will have a huge profit, but I felt why should we take more margin and allow somebody else to come and disrupt. So, I kept my price low. If you ask me, everything in diagnostics business specifically is volume dependent. And we played it very well. When the volume is high you have people power, purchasing power, pricing power, so that you decide and you dictate the rate. So, we did enjoy it. And I must tell you in the entire world India is cheapest in healthcare.

In India, Thyrocare is the cheapest in diagnostics, but we still have 40% profitability. The power is low price and building volume and that generates a robust Return on Equity.

How does your return compare to your counterparts?

We have an EBITDA margin of 40% compared to our peers who have 25%, so despite the affordable strategy we're enjoying a higher profitability. There was a Harvard case study on various business models that found that the least cost business model is the most profitable business model because of the highest efficiency. So, I have built a very powerful and efficient system. I have made quality tests accessible across the country and at the cheapest rates.

Are you satisfied with the way the business has scaled up?

Absolutely! I must have only invested two lakh rupees in the business while starting it in 1996. All the remaining is our hard work so if somebody calculates our returns, their calculator will tell error.

What are your suggestions as an insider in this crisis and the lockdown? Coming from the diagnostics side, you are kind of an insider in the whole COVID situation.

I think humanity of 7.5 billion is still so shocked that most of them do not have confidence even to move out. This virus is not going to kill 1-in-100 nor 1-in1000 but just 1-in-10000. So, firstly you need to keep in mind that it is not killing everyone. Secondly, the Western countries which are supposed to be having better medical infrastructure compared to India, they have recorded 400 deaths per million. India has recorded only 15 deaths per million. So, in India we are fortunate that this virus has less ability to damage. Having said that, avoid it as much as possible, as long as possible. Mask yourself, keep social distancing and improve your hygiene of life. I think these are all very important as this virus will be there for not less than five years and we must know how to live with the virus. The mask will be as important as any other dress on the body and it has to be practiced.

How do you think Kerala’s response has been to the crisis?

I have been perplexed by the Malayali model of healthcare as compared to the rest of the country. Your health minister has garnered a lot of praise across the country. Having said that, it is a long journey, the game has not ended yet and the South Indian states will have higher deaths per million as compared to North India. The real challenge will be if one can ensure social distancing once the economy opens. So, the real report card can only be given after December 2021.

Knowing the notoriety of the virus, governments cannot be sure of their success in management as numbers will emerge later. India and US had started seeing cases together but within the first few weeks, India saw slow rise in the number of cases with 200 cases per day as opposed to 20000 per day in New York. Indian policy makers thought they defeated the virus, but now the numbers there are falling and the numbers here are rising. Overall, we can only make an assessment in the long run. The virus does not look at geography as much as age. So, I think older countries have a higher risk factor. Similarly, in India, Kerala and Tamil Nadu have the highest mean age, approximately 31 and 32, as SEASONAL MAGAZINE

compared to the Indian mean of 28.

There will be a higher burden in these Southern states but let us hope that by the time the numbers build up, we have some good vaccination.

How hopeful are you for the vaccine?

Vaccine, I think, would not come before 2021. Minimum 6 months of more research is required I think. We need to be careful that governments don’t relax the approval methods just to get momentary praises and relief for the people. If no shortcuts of that sort are taken, it will take a lot of time, possibly it will be by 2021 end.. I don’t see India having an advantage in the development of a vaccine. Companies worldwide are investing crores and crores of money into this vaccine and it is like investing in a lottery ticket.

What about a medicine, as compared to a vaccine?

Both will have to undergo lots and lot of trials before approval. So, I don’t see much difference in the timeline. Having

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said that, I believe that a vaccine would come earlier. But science is science, molecules are molecules. One may find cures earlier, you can’t be too sure.

What do you think about Ayurvedic remedies?

I was surprised by Patanjali’s claim of the cure. I thought perhaps they were right in finding a cure because sometimes Ayurvedic medicines do work in certain illnesses. Alas, it was a false claim and they misled the people.

Are you satisfied with the way your stock have performed?

Stocks will never perform in the way one wants. Yesterday, out of the blue, I became richer by Rs 300 cr. But the market fluctuates a lot and we haven’t had any major fluctuations in the past 3-4 years so it had been more-or-less on a similar price range in three years. I have reason to believe that the next three years will be very different. I will not, however, make unnecessary positive claims that may affect the choices of the potential investors.

Do you think Thyrocare is not favorably valued as compared to the competition?

This has always happened about political leaders and share prices. Some are way too overrated and it takes time for people to understand their true potential. Accordingly, I think for the past 3-4 years, Thyrocare has been underrated in the market but again who am I to tell how big I am? It is for the market to decide how big the potential is.

How do you assess Thyrocare’s journey so far?

We have had a powerful journey. We are now based in 10 countries. PostCovid we may expand to 25 countries because the Covid disruption is temporary but it will throw up longterm opportunities. Even within India we will set up more bigger centres because there aren’t enough such centres especially to cater to the remote areas that we would like to reach out to.

RENEWABLES

INDIAN SOLAR POWER AT CROSSROADS WITH NO BUYERS

INDIA’S SOLAR POWER STORY HAS BEEN LARGELY CREDITABLE, WITH A RAPID PACE OF CAPACITY ADDITION AND COMPETITIVE TARIFFS BEING DISCOVERED, BUT SEVERAL ADVERSITIES INCLUDING RELUCTANCE OF DISCOMS TO SIGN POWER SUPPLY AGREEMENTS (PSAS) ARE THREATENING TO DISRUPT IT.

Industry trackers have pointed that the ultra-low tariff quoted by some of the firms might not be viable anymore amid time overruns, leading to termination of contracts.

early a third of the 23,600 megawatt (MW) rene wable power projects, won by various players after quoting the lowest rates in reverse auctions conducted by the Solar Energy Corporation of India (SECI) for inter-state transmission system (ISTS), are staring at an uncertain future as the agency has not yet found buyers for electricity from these solar/wind power generation units. Most of these are under-construction units; only 2,200 MW of the awarded capacity has been commissioned till date.

Project developers also grapple with other issues such as unavailability of land and inadequate power transmission infrastructure, leading to inordinate delays. The investments involved in the stuck projects with combined capacity of 8,000 mw is roughly Rs 36,000 crore at Rs 4.5 crore per MW. Projects facing uncertainty due to lack of buyers include those backed by global players like the UK’s CDC-(Ayana Renewable), Netherland’s Avaada Energy, French utility Engie (Betam Wind), New York-based Eden Renewables, SoftBank Group, Hong Kong based UPC Renewables (Masaya

Solar), Italy’s Enel (Avikiran Surya), Germany’s Ib Vogt, Spain’s Solarpack Corporacion and the Canada-based Amp Energy Green.

SECI has also not found buyers for power from some units of local players like ReNew Power, Azure Power and Adani Green Energy.

According to data compiled by the Central Electricity Authority, SECI has not been able to sign PSAs with any state discom for 5,840 MW of solar and 920 MW of ISTS wind power projects. SECI being the national aggregator of renewable energy, signs power purchase agreements (PPAs) with the winning developers in competitive auctions, and subsequently inks PSAs with states to supply electricity from these plants. In fact, as much as 1,665 MW of renewable power projects (Acme: 600 MW, Torrent: 500 MW, Mytrah: 300 MW and ReNew: 265 MW) have sought to terminate their PPAs, frustrated by delays caused by other parties, in spite of SECI finding buyers of electricity from these projects.

The impact of the coronavirus outbreak on the supply chain has also been cited as a cause of the demand for PPA cancellations.

SECI's competitive bidding rounds for ISTS projects have been instrumental in bringing down renewable energy power costs in the country as the Central government-backed agency utilised the economies of scale by conducting reverse auctions for large capacities. It also allowed solar and wind power plants to be installed in conducive locations anywhere in the country and supply power to states with lower potential for renewable energy generation. While a section of the industry has blamed discoms for not signing PSAs in the hope of better deals in the future, experts have also pointed that SECI has conducted many auctions without assessing the states’ appetite for such unreliable and intermittent sources of power.

The country has set a target to raise the capacity of installed renewable energy generation plants to 175 giga watt (GW) by the end of 2022. As on July 31, the installed renewable energy capacity was 88 GW. Around 34 GW is under various stages of implementation and 34.5 GW under various stages of bidding. If the 45.7 GW of hydro and 6.8 GW of nuclear capacities are included, the target under the Paris climate change accord of having 40% of installed power generation capacity from non-fossil fuel sources will be achieved by 2022 itself.

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HOMEBUYING

SC SAYS HOMEBUYERS ENTITLED TO COMPENSATION THE APEX COURT NOTED THAT IT CANNOT BE OBLIVIOUS TO THE ONESIDED NATURE OF THE APARTMENT BUYERS AGREEMENTS WHICH ARE DRAFTED BY AND TO PROTECT THE INTEREST OF THE DEVELOPERS.

bserving that the failure of the developer to comply with the contractual obligation to provide a flat to a homebuyer within the period stipulated in the contract amounts to a ‘deficiency’, the Supreme Court has held that homebuyers are entitled to compensation for “delayed handing over of possession” and for the failure of the developer to fulfil their promises with regard to amenities.

The court also noted that it cannot be oblivious to the one-sided nature of the Apartment Buyers Agreements which are drafted by and to protect the interest of the developers.

Homebuyers in this case had booked apartments with DLF Southern Homes Pvt Ltd or Begur OMR Homes Pvt. Ltd, in a project called Westend Heights at New Town, DLF, at Begu, Bengaluru.

The project was spread across 27.5 acres and was to include 1980 units. It was expected to have 19 towers.

“A failure of the developer to comply with the contractual obligation to provide the flat to a flat purchaser within a contractually stipulated period amounts to a deficiency. There is a fault, shortcoming or inadequacy in the nature and manner of performance which has been undertaken to be performed in pursuance of the contract in relation to the service,” the apex court said.

“Flat purchasers suffer agony and harassment, as a result of the default of the developer. Flat purchasers make legitimate assessments in regard to the future course of their lives based on the flat which has been purchased being available for use and occupation. These SEASONAL MAGAZINE

legitimate expectations are belied when the developer as in the present case is guilty of a delay of years in the fulfilment of a contractual obligation,” the Supreme Court order said.

To uphold the contention of the developer that the flat buyer is constrained by the terms of the agreed rate irrespective of the nature or extent of delay would result in a miscarriage of justice, the bench noted.

The bench comprising Justices DY Chandrachud and KM Joseph also noted that ‘service’ means a service of any description which is made available to potential users including the provision of facilities in connection with (among other things) housing construction.

The top court set aside the verdict of the National Consumer Disputes Redressal Commission (NCDRC) which, on July 2, 2019, had dismissed the complaints of 339 flat buyers. It had held that they were not entitled to the compensation in excess of what was stipulated in their Builder Buyer agreement for delayed possession and the lack of assured amenities.

“We have come to the conclusion that

The top court set aside the verdict of the National Consumer Disputes Redressal Commission (NCDRC) which, on July 2, 2019, had dismissed the complaints of 339 flat buyers.

the dismissal of the complaint by the NCDRC was erroneous. The flat buyers are entitled to compensation for delayed handing over of possession and for the failure of the developer to fulfil the representations made to flat buyers in regard to the provision of amenities.

“The reasoning of the NCDRC on these

facets suffers from a clear perversity and patent errors of law which have been noticed in the earlier part of this judgment. Allowing the appeals in part, we set aside the impugned judgment and order of the NCDRC dated July 2, 2019 dismissing the consumer complaint,” the bench said in its 53-page judgement.

The top court also said that in case there is a gross delay in handing over of possession beyond the contractually stipulated period, the jurisdiction of the consumer forum to ward just and reasonable compensation is not constrained by the terms of a rate in the builders’ agreement.

It noted that it cannot be oblivious to the one-sided nature of the Apartment Buyers’ Agreement.

The bench said the flat owners are entitled to the compensation in excess of the amount stipulated in their agreements with the developers.

It also considered the issue of whether flat buyers in these circumstances are constrained by the stipulation contained in clause 14 of ABA providing compensation for delay at the rate of Rs 5 per square feet per month.

“In assessing the legal position, it is necessary to record that the ABA is clearly one-sided,” it noted.

It observed that a delay on the part of the flat buyer attracts interest at the rate of 18 per cent per annum beyond ninety

days. On the other hand, where a developer delays in handing over possession the flat buyer is restricted to receiving interest at Rs 5 per square foot per month under clause 14.

“The agreement stipulates thirty-six months as the date for the handing over of possession. Evidently, the terms of the agreement have been drafted by the developer. They do not maintain a level platform as between the developer and purchaser. The stringency of the terms which bind the purchaser are not mirrored by the obligations for meeting times lines by the developer. The agreement does not reflect an even bargain,” the bench said in its order.

The bench said the flat owners are entitled to the compensation in excess of the amount stipulated in their agreements with the developers.

“Save and except for eleven appellants who entered into specific settlements with the developer and three appellants who have sold their right, title and interest under the ABA (agreement), the first and second respondents (developers) shall, as a measure of compensation, pay an amount calculated at the rate of 6 per cent simple interest per annum to each of the appellants,” it said.

The compensation amount shall be computed on the total money paid towards the purchase of the respective flats with effect from the date of expiry of 36 months from the execution of the respective flat purchase agreements until the date of the offer of possession after the receipt of the occupation certificate, it said.

The compensation amount shall be in addition to the money which has been paid over or credited by the developer at the rate of Rs 5 per square foot per month at the time of the drawing of final accounts, it said.

The top court asked developers to pay the compensation within a period of one month from the date of this judgment and cautioned that failure in making payment, shall carry interest at the rate of nine per cent per annum until payment.

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NEWS-IN-BRIEF 30 LAKH WOMEN TO GET HOUSE SITES WORTH RS 22,000 CRORE IN ANDHRA Andhra Pradesh CM YS Jagan Mohan Reddy has announced that house sites worth Rs 22,000 crore will be registered in the name of 30 lakh women belonging to weaker sections. Reddy directed officials to complete the process related to layouts, markings and lottery to select beneficiaries. He asked to focus on layouts which are not done properly and plant saplings there.

JAPAN FACES SHORTAGE OF CREDIT CARD NUMBERS AMID RISE IN ONLINE SHOPPING Japan is facing a shortage of 16-digit credit card numbers amid a surge in online shopping during COVID-19 and a government campaign to promote cashless payments. The first six digits indicate the country, brand and other details, while the last 10 are determined by the issuer. Credit card companies have warned of a shortage of combinations from the seventh-digit onwards.

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SEDATED HIM TO RETRIEVE PASSPORT: INDIAN NURSE ON DEATH ROW FOR MURDER IN YEMEN Thirty-year-old Kerala nurse Nimishapriya, sentenced to death last week in Yemen for murdering Yemeni man Talal Abdo Mahdi who posed as her husband, said he physically tortured her. Nimishapriya said she sedated him in July 2017 to retrieve her passport and she didn't mean to kill him. Talal's family asked for Rs 70 lakh as blood money to pardon her.

2-WHEELER IS NEITHER LUXURY NOR SIN GOOD, GST COUNCIL TO CONSIDER RATE CUT: FM Finance Minister Nirmala Sitharaman has said that GST Council will consider lowering the tax rate on two-wheelers as they are neither luxury nor sin goods.

Responding to a question about the need for lowering GST on two-wheelers at an industry interaction, Sitharaman said it was "indeed a good suggestion".

GST rate on two-wheelers currently stands at 28%.

ALWAYS WANTED TO ACT BUT KNEW ONLY CERTAIN KIND OF FACE SELLS: MASABA

HEALTHCARE EDUCATION STARTUP VIROHAN RAISES RS 20.7 CRORE

Fashion designer Masaba Gupta said that she always wanted to act but knew that only a certain kind of face sells. "A certain kind of an actor gets a certain role...a certain kind lands a bigger role," she added. "I never said openly that I want to act. I was busy with fashion...that's my first baby always," Masaba further said.

Gurugram-based healthcare education startup Virohan has raised around Rs 20.7 crore ($2.8 million) across its seed and Series A rounds. The seed round was led by Keiretsu Forum and Series A round saw participation from elea Foundation, the Singh Family Trusts and National Skill Development Corporation.

The edtech startup trains students in healthcare-based technician and administrative roles.

STATE-IN-FOCUS

SEASONAL MAGAZINE

7 WAYS KERALA IS POISED FOR GROWTH THE PANDEMIC WON’T BREAK KERALA BUT MAKE IT. HERE IS HOW. here comes once in a while in the life of people and organizations, some opportunities where they can shine than the rest due to their innate strengths. The case of governments too is not much different.

However, such opportunities are often masked as crises, making many to miss the bus even when they are at a potential advantage. But the recent moves of the Pinarayi Vijayan led LDF Government in Kerala shows that, even while being pressed to the wall due to the Covid-19 pandemic and its economic fallout, it has no plans to forego its huge once-in-a-bluemoon opportunity to rebuild the Kerala economy, by capitalizing on its remarkable success in containing the pandemic better than any other state or metro city in the country, due to concerted efforts by the state machinery led by a vigilant CM and Health Minister. Under Chief Minister Pinarayi Vijayan’s visionary leadership, the government has quickly formed a new Task Force of high-performance IAS officers to attract both new investments and to execute some of the largest pending projects on a war footing. The state is leaving no stone unturned in its

efforts to implement ambitious projects like a new semi high-speed rail corridor costing Rs. 65,000 crore, its fifth international airport, an environment friendly e-Bus project, and several such game-changers. The state already leads in tech-led schooling, which has captured the imagination of the whole nation during this lockdown period, and it is plotting a strong comeback in tourism based on safe & hygienic hospitality. Plans are on to revive the plantation sector by allowing the cultivation of exotic fruits that are high in global and local demand. When most states are struggling to attract back migrant labourers, in Kerala it is not expected to be an issue at all, as the state is famous for migrant labour welfare and even calls and treats them guest workers. Plans are also on to integrate returning workers from Middle East into the workforce here and to encourage returning businessmen to set shop in the state.

Seasonal Magazine identifies 7 majors ways in which Kerala is poised for growth under the leadership of Chief Minister Pinarayi Vijayan.

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7 WAYS KERALA IS POISED FOR GROWTH

NEW TASK FORCE FOR ATTRACTING INVESTMENTS AND EXECUTING PROJECTS n order to make up for the lost time and resources due to battling the Covid-19 pandemic, Kerala Chief Minister Pinarayi Vijayan has constituted a high level task force for both attracting investments and executing projects on a fast-track.

Interestingly, the government is taking a long-term view and not a one-year view – the elections are to be held next year – on the grounds that even partial execution before polls is much needed for the state.

Constituted under the chairmanship of Dr. Vishwas Mehta IAS, the new Chief Secretary, the Task Force is led by Alkesh Kumar Sharma IAS, Additional Chief Secretary (Special Projects - Infrastructure) andManaging Director of Kochi Metro Rail

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Alkesh Kumar Sharma IAS

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Ltd. The Task Force will first focus on the speedy implementation of 11 key infrastructure projects, including major projects financed by the Kerala Infrastructure Investment Fund Board (KIIFB). Ten IAS officer have been handpicked by the Task Force for these projects and have been designated as Special Project Directors (SPDs) they will aid Alkesh Kumar Sharma and Secretaries of the concerned Departments and act as catalysts to get these projects executed in close consultation with Chief Executive Officers of the Special Purpose Vehicles (SPVs) set up for these projects. This is a welcome move and signals that the government and the Chief Minister wants to get things done by overcoming all the challenges as quickly as possible.

Dr. Vishwas Mehta IAS

DIVERSE PROJECTS TO DEVELOP KERALA COMPREHENSIVELY ue to scarcity of land, high environmental concerns and high level of labour welfare, Kerala has historically lagged in the quantity side of infrastructure projects, but never on the quality side. Examples are plenty, be it Cochin International Airport, Vallarpadom International Transshipment Terminal, Kochi Smart City, Thiruvananthapuram Techno Park, and such projects that have been pioneering models for the whole of India.

Now, in the new fast-track mode, Kerala is attempting to do this once again, on a much larger scale, addressing even the quantity issues. The new large infrastructure projects coming under the Task Force include the Kochi Bengaluru Industrial Corridor (KBIC); Kerala’s 5th International Airport near Sabarimala; a new Semi High Speed Rail Corridor connecting both ends of the state, called Silverline that will cut travel time to just 4 hours; a new Special Economic Zone (SEZ) for IT in Kochi called SmartCity; the new seaport, Vizhinjam International Terminal; a 400 km natural gas supply line; a new rail project between ThalasseryMysore; an Inland Waterway Project to move

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people and cargo; a new port at Azhikkal; piped city gas project; waste to energy projects; and expansion of Vyttila Mobility Hub. In short, the projects will ensure the overall development of the state. And to fill up gaps if any, there are the relatively smaller projects - around 650 projects worth Rs. 51,000 crore and funded by KIIFB will also be monitored closely.

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7 WAYS KERALA IS POISED FOR GROWTH

REBRANDING ITS STRENGTHS IN A POST COVID WORLD ORDER he unprecedented Covid-19 pandemic has changed the investing world so much that now investors are forced to consider another metric while choosing nations and states to invest in – which is nothing but how well was a region’s pandemic response and containment. This is a domain where Kerala excelled from the day one of this pandemic, not just in India but across the world. Despite being the Indian state where the first Covid-19 patient came from China, the state resorted to one of the most comprehensive Covid-19 containment programs anywhere in the world, which incorporated hand washing, personal sanitizers, face masks, social distancing, and most importantly, contact tracing, which is a difficult task that even developed nations are struggling with. This has ensured that even while India’s major industrial hubs like Mumbai, Chennai, Delhi, Kolkota, Hyderabad & Bengaluru are facing full or partial lockdowns, Kerala has been up and running for over two months now. This is sure to make

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many India-bound overseas investors to consider Kerala for setting up new industrial projects, if Kerala can convey this message powerfully. Kerala has some great success stories in branding and public relations, where it has been able to showcase its unique strengths in tourism and now in public health administration and pandemic management.

High level meetings of the Task Force have already identified the need to focus on building such a unique brand for Kerala Industries to attract investments from across the world.

TAKING EASE-OF-DOING-BUSINESS TO A GLOBALLY COMPETITIVE LEVEL nder Chief Minister PinarayiVijayan’s rule, Kerala has already come a great distance in ease-of-doing-business in the state. This had helped the state bag high profile projects like from Nissan. The state had also successfully implemented its online single-window clearance mechanism, called KSWIFT. However, ease-of-doing-business is a metric that is highly competitive, as each state in India as well as the whole world that is seeking overseas investments are forever upping their game on this front. Kerala too is not shying away from this ongoing exercise and is taking it head on by addressing several long-pending as well as emerging issues. The Task Force has recently identified several objectives in this regard, which

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include, time-bound execution of clearances; a new ‘Make in Kerala’ initiative; transforming the state from a consumer economy to a manufacturing economy; attracting those companies trying to relocate their manufacturing bases, following new collaborative and investor-first approach; simplifying land acquisition rules; improving KSWIFT, the state’s online single-window clearance mechanism; promoting wage subsidy incentives and starting more sector specific industrial parks.The overriding aim is to make doing business in Kerala, ‘simpler, faster and friendlier’. Realizing the state’s own strengths like highly educated workforce and challenges like high environmental values, the government has also identified a few unique sectors most suitable for the state, including life sciences and healthcare, agro and food processing, urban infrastructure, pharmaceuticals, manufacturing, etc.

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7 WAYS KERALA IS POISED FOR GROWTH

KERALA’S MEGA PLANS FOR ITS FIFTH INTERNATIONAL AIRPORT lose on the heels of its 4th International Airport at Kannur getting operational, Kerala Government is moving ahead with its plan for a 5th International Airport, just 48 kms from the famous pilgrimage centre, Sabarimala. This too will be a full-fledged and greenfield airport like in Kannur. This fifth airport in a relatively small state, will cement Kerala’s leadership in airport density in India, and will elevate it to developed nations’ standards. Apart from facilitating the massive flow of tourists to Sabarimala, the state is eyeing to develop each nook and corner of Kerala to be an investor friendly destination, with this move. Overseas investors from developed nations, be it from the West like North America or Europe or from the East like Japan or Korea, tend to look for places with close proximity to airports. As of now, lands

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near existing airports for new businesses is either scarce or expensive, except for in Kannur, and this can be alleviated to an extent in South-Central Kerala with this new airport.The proposed airport will come up in a 2,263-acre rubber plantation, named Cheruvally Estate, which was created during the British rule. As per rules, the government can take over defunct estates with expired lease agreements, and since the lease period of this rubber plantation has already expired, the government is planning to use it for this public project of importance. However, environmental activists are already up and against the project citing potential damage to the environment if an airport is constructed there, and the airport work has been stayed by the Kerala High Court. But it is also sure that the government will not give up this fight easily as it will bring huge development to this region as well as the whole state.

SILVERLINE, THE SILVER BULLET FOR MAKING DEVELOPMENT SEAMLESS ne of the most ambitious projects that the Pinaryi Vijayan Government is actively pursuing is Silverline, a new semi high-speed railway line from Kasargod, the north end of Kerala to Thiruvananthapuram, the south end and capital city of Kerala. There is already a rail line between these two ends of Kerala, but travelling along it takes 10 hours on paper and 12 hours or more in practice as many stretches are still not doubled. Needless to say, bus services take even more time due to the endless congestion.

Successive state governments’ efforts to modernize the existing railway line has moved at snail’s pace, as the existing line is solely owned

by Central Government owned Indian Railways, which is already stressed by its huge challenges. This has prompted the current LDF Government to consider a new high-speed line itself to speed things up. Estimated to cost Rs. 64,000 crore, it would be perhaps the largest project ever undertaken by Kerala, and even many states in India. The main advantage of the new Silverline project would be that travel time from Kasargod to Thiruvananthapuram would be

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reduced to just four hours. This is a great benefit for Kerala, as it will facilitate rapid movement of people and cargo, much like in developed nations across the world.

The project has also new economic potential on its own merit. As it is coming along a parallel route to the existing line, towns and villages hitherto not benefited from the existing line will benefit economically from this new line, as it will spur development and job creation in these areas. The project is not only financially challenging but operationally too as it will require a massive acquisition of over 9000 hectares of land. But the Pinarayi Vijayan Government is forging ahead with this plan as the development potential is immense.

SEASONAL MAGAZINE

7 WAYS KERALA IS POISED FOR GROWTH

KERALA’S AMBITIOUS PLAN TO MODERNIZE AGRICULTURE Kerala was the first region in the whole world to have a democratically elected communist government. And the greatest achievement of this radical government led by EMS Namboodiripad was the sweeping land reforms that gave land to common tenant labourers, from their feudal landlords, by limiting ownership of agricultural land to 15 acres. However, one sector was exempted from this ceiling – plantations, which accounted for one-fifth of the agricultural land in the state. The only condition in plantations was that only five cash crops were allowed to be cultivated - rubber, tea, coffee, cardamom and cocoa. And in the ensuing decades, powered by global as well as Indian demand, Kerala’s plantation sector swelled. The state became the leading producer in India for almost all these cash crops, and in rubber, the area under cultivation swelled to 8,22,000 hectares accounting for 8590% of all rubber produced in the country.

Revenue from the plantation sector soared to as much as Rs. 21,000 crore by FY’12 and became one of the mainstays of the Kerala economy together with overseas remittances. However, since then the plantation sector fortunes started waning, due to increasing global supply, and in

recent years it has plummeted due to the falling prices, especially of rubber. By FY’19, revenue from the plantation sector had fallen to just Rs. 8000 crore, plunging the millions living off it into a deep crisis. Now, the Pinarayi Vijayan government is planning a bold move to diversify plantation sector crops to exotic fruits that are in high global and local demand like mangosteen, rambutan, durian, passion fruit, grapefruit, dragon fruit, litchi and avocado. The added advantage from such a move would be the scope for valueadded products for exports through new food processing industries that would create lakhs of jobs, apart from a revival in the farming jobs.

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“KERALA STILL WAY AHEAD IN THE COVID-19 FIGHT�

Kerala's Agriculture Minister V.S Sunil Kumar had ushered in the agrotechnology drive called the 'Mission Mechanisation Programme' months before the pandemic disrupted almost every sphere of activity. With social distancing norms and quarantine rules, the agriculture sector is poised to benefit from this technology intervention. Along with this, the Minister has also called for the state's self-reliance in production of fruits and vegetables and announced a ? 51-crore special package for taking up fallow-land farming under the Subhiksha Keralam food security programme. These days, he also has an unenviable task of managing and communicating COVID-19 activities in Kerala's Ernakulam district. Add to this, he underwent the entire experience that most of us would dread in these times: going into quarantine after coming into contact with someone who tested positive for COVID-19. Despite testing negative for the virus, the Minister duly abided by the 14-day self-quarantine rule in the state. He is well aware of the emotional and psychological strains of the prevailing situation and most importantly the hardships faced by frontline health workers. But he is unfazed about the challenges that lie before him as he is singularly focused on ensuring that the COVID-19 spread is checked keeping the general public's welfare in mind. In this exclusive interaction with Seasonal Magazine, V S Sunil Kumar talks about the challenges faced by the Pinarayi Vijayan-led government in handling the pandemic's spread, the early successes and subsequent setbacks, reasons behind Kerala's relatively low mortality rate compared to other states and the possibilities of another lockdown..

V.S Sunil Kumar, Agriculture Minister, Kerala SEASONAL MAGAZINE

With cases soaring in Kerala now, do you think the state’s celebration that it had defeated Covid-19 was premature?

Not at all. While this is not a time for celebration, we can be rightly proud of our achievements on the Covid-19 front. Kerala has decisively won in all stages of the pandemic so far. We were the first state to report a case in India, a student who had returned from China. Still, we have done very well.

We pioneered contact tracing in India.

We were the first to implement a Help Desk for Covid-19 heeding the call of World Health Organization to do so.

We received back the maximum number of NRIs in India. This was the case even before the nationwide lockdown and the ban on international flights came. Due to that, by the time lockdown was started, Kerala was the state with most number of positive cases. There was a time when Keralites were viewed with suspicion in many parts of India. Even in the neighbouring Karnataka, Malayali farmers weren’t allowed to get out of their homes and work in their fields.They also closed the border roads with Kerala. At that time many parts of India didn’t even have a single case. But we were doing all things with as much perfection as possible even then. And see what happened when the lockdown started.

Cases began growing in almost all parts of India and skyrocketing in some spots like Mumbai and Bengaluru and later in Delhi and Chennai. The reason was that nobody implemented the lockdown as perfectly as Kerala. We also made sure that both natives and guest workers here were taken care of by starting agricultural procurement, starting community kitchens and efficient management of markets. And by the time the lockdown ended, Kerala was the best performer in containing this pandemic with only a few cases which soon reached nil levels too for some days.

But the numbers of Covid-19 patients have swelled since then in SEASONAL MAGAZINE

"Kerala has decisively won in all stages of the pandemic so far.

From being the state with the highest number of cases, we are now the best managed state with the least death rate."

what many people think, the influx of NRIs has nothing to do with it. When the mandatory travel pass for interstate travel was done away with, many people started arriving in Kerala from other parts of the country. There is no mechanism to track them. And they visit places like markets and fishing harbours and all, and the disease spread quickly through contact. Still, Kerala Government is doing everything possible to trace down all positive cases, even seemingly unknown cases. No other state in India is doing it. Therefore I am confident that Kerala will once again outperform other states.

Kerala. Was it due to doing away with institutional quarantine?

What do you think is the way out from this round of massive spread?

No, it had nothing to do with institutional quarantine. Home quarantine is any day better. We always believed that and we were pioneers in India in implementing home quarantine. At that time, Centre was against it, but since then they too have realized that home quarantine is the better option to manage this pandemic, and advised all states to follow suit. The current increase in positive cases in Kerala is only due to anonymous entry of infected people from other parts of India and the subsequent contact spreading. Unlike

We should remember that there is no model for limiting this pandemic.

Neither are there any medicines or vaccines. So the only effective way before us is lockdown or containment.

That is why we are now locking down and making containment zones on the basis of panchayats or even wards.

Also, we have closed down many risky markets and fishing harbours. We are now in the fourth stage of this pandemic. If such micro or semi containment zones aren’t enforced, the situation can worsen and even community spread can happen.

Why did Kerala admit to community spread in Thiruvanathapuram, when no other state had done so, despite obviously having community spread?

This government is most transparent.

We have got nothing to hide. At the same time, we didn’t agree with Indian Medical Association (IMA) when they cried out about community spread in Kerala. Ours is a democratic setup, we are answerable to the public, and we firmly believe that IMA has no business in saying such things. It is solely the government’s prerogative.

IMA is a private organization, not a government body. They have their own interests. There are specific scientific criteria for community spread. In two Panchayats of Thiruvananthapuram those criteria were indeed met and that is why Government immediately declared about community spread there. We are thus taking people into confidence. And it is based on these same criteria that we also say that apart from these two Panchayats, community spread hasn’t happened anywhere else in the state. We want people to know all these facts. Our Chief Minister PinarayiVijayan is not making a radio announcement where no one can reply back to him, but facing the press on a daily basis, taking all their tough questions.

There is criticism that Kerala is not testing enough number of people.

What is your take on this?

We are testing based on well-defined criteria. Again, some like IMA is asking for all to be tested. They are citing the test-per-million statistic. We think it is a big blunder. Testing all is neither scientificnor practical.

Testing 5000 people and giving negative results to 4500 people will just give them a false sense of safety.

Anyone can be infected anytime,

after the test too. So, instead what we do in Kerala is strategic testing. We mainly test primary contacts of a positive patient whether or not they have symptoms. We also test secondary contacts of that patient, but only if they have the symptoms. But all of them have to remain in quarantine. And if more cases are there, containment zones are declared and comprehensively monitored. All such scientific facts are difficult to explain to the public. We agree with many scientific positions of IMA, but not everything they say can be agreed with. If all are tested as they say, the only benefit is for test kit manufacturers.

"The current rise in positive cases is solely due to the arrival of anonymous carriers into the state which happened after the requirement of travel passes was removed.

But we are still finding out all the unknown cases."

But isn’t the situation in Kerala alarming now?

There is definitely cause for concern, but relatively speaking, Kerala is in a much better situation even now than the rest of India. Even now, there are only 67 deaths and around 21,000 cases. Remember, this is the state that recorded the first case and received back maximum number of NRIs. Compared with Kerala, many hotspots in India like Delhi are still witnessing over 500 deaths a day. Our Death rate is just 0.03, whereas the country’s death rate varies from 1.5 to even 8 in some places, with average around 5. Kerala’s performance in this regard is despite several other factors too. We are the state with the highest population density. The state with the highest percentage of 60-plus population. And the state with the highest prevalence of some lifestyle diseases like diabetes which are also Covid-19 co-morbidities.Still, we are far ahead of others in Covid-19 management. One reason for this is that here the Government, led by our Chief Minister, is coordinating with all political parties at the panchayat and ward level, and they are also providing great support to ensure that we are fighting this war for humanity in unity.

No such mass political action is seen anywhere else in India, and there just the bureaucrats are running the show.

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Why then is the Government criticising the Opposition for politicising the issues?

The support I mentioned from the Opposition ranks is at the grassroots level, where the local Opposition leaders like councillors, panchayat members and MLAs are facing the prospects of deaths in their constituencies. But the Opposition leaders at the state level has no such concern and their only concern is wresting power somehow. Our Chief Minister has always been warning about the imminent danger, ever since the lockdown was lifted. And now that dangerous situation has come, but what are our Opposition leaders at the state level doing? They are instigating strikes and demonstration that are directly against the Covid-19 protocols. Finally, the High Court had to intervene and rein them in before the situation got out of hand. These Opposition leaders simply don’t realize that humanity is at war against an enormous, unseen enemy. We are not against their right to agitate but it should be within sensible limits under this circumstance. Agitations shouldn’t take the focus off our Covid-19 fight.

Everyone knows why Opposition is agitated now. They are worried about the upcoming Panchayat election.

When the world appreciated the LDF government for the exceptional success in Covid-19 battle, these UDF leaders became worried. They should

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"Kerala pioneered contact tracing and is still the only state doing it effectively. This together with our timely micro-containment strategy will ensure that Kerala will come out stronger from this fourth phase too." realize that this is an unprecedented crisis. You see, we aren’t able to meet for this interview, but video conferencing. I am not visiting my home regularly. Even when I visit, I don’t share room with my wife. The crisis is such. Politics too should reflect that. Opposition leaders are just behaving immaturely. At every phase, they said so many unscientific blunders regarding this pandemic. If they said it in ignorance, it is excusable, but if it was wilful it is a crime against the people of this state.

There has been news about elevated infection rate in Ernakulam District and severe infections in Aluva. Can you explain these?

The so-called high infection rate in Ernakulam is purely technical. It happened because in Ernakulam more

testing was done amidst those who were more susceptible to the disease. That will normalize when a more diverse population is tested like in other places. But the situation in Aluva is serious. The doctors who were treating the patients in Aluva reported it to us first. Severe pneumonia is seen in many Covid patients here, and even young people are developing such issues.

Usually it happens when there is a new mutated virus strain. We have the asked the health department specialists to study this issue. But since we can’t wait for their report,

Aluva was made into a containment zone. The Government is taking every precaution in this fight.

How equipped is Kerala now in dealing with the emerging situation?

Kerala is more equipped than any other state in dealing with this phase of the pandemic too. In Ernakulam, where I am in charge, we have readied 6500 beds across First Line Treatment Centres (FLTCs) as of now. Not all of them are operational now, but can be put into action at short notice. What is operational now is seven FLTCs where we have deployed equipment as well as human resources like doctors, nurses etc. Kerala was the first in the country to start an FLTC and it was in Ernakulam. We are utilizing all potential facilities like CIAL, convention centres etc.

According to you, is Kerala facing the prospects of a further lockdown?

As a frontline fighter in this battle, I feel there should definitely be a

lockdown. There is no other management model or medicine or vaccine that works against this virus.

Only containment works. And the lockdown should be done before the community spread begins. There is no point in doing a lockdown after that.

Otherwise, the situation will be like in Karnataka, where the CM literally admitted that nothing more can be done and destiny will play its role. I think, as of now, a two week lockdown should be ideal. That will help Kerala to restore things to the earlier, much better situation. And then some relaxation may be possible, and maybe we would need to repeat brief lockdowns a few times before the curve is flattened again.

Do you think the Government couldn’t do enough on the sea erosion and flooding in Chellanam due to the focus on Covid fight?

It is not at all due to the Covid fight that Chellanam issue was not addressed. The technical and operational challenges are huge over there. Successive governments have not been able to permanently solve the situation. The Irrigation Department did attempt some latest technologies using geo bags, but then they couldn’t find capable contractors who have the kind of machinery to undertake this mammoth task. The Government also did the dredging and all, but everything is only of limited utility SEASONAL MAGAZINE

there. We admitted it to the people there. And this is not a local issue of Chellanam alone. In many coastal areas of Kerala as well as the whole country, such situations are emerging.

This is happening because the nature of seas are changing. And what is the Central Government doing about managing this crisis? There is no support from them at all. Making a Coastal Regulatory Zone rule is simple. What is needed is allocation of resources to implement such rules and save the people residing in such areas.

As the Agriculture Minister, how has been your Ministry’s battle against Covid?

I am proud to say that the Agriculture Ministry rose to the occasion and has been a top performer on the Covid front. Our Subiksha Keralam initiative to promote agriculture among all citizens have become a huge success.

Now, things have improved so much that every family with some land in Kerala is growing at least some vegetables for their own use. We could create a big momentum in agriculture since this pandemic began as now people realize that we need to be self-sufficient in food. Another highly successful initiative has been the awareness campaign regarding what foods to eat for health and immunity, and therefore what crops to grow.

Don’t you think the Government lost some image due to the high-profile gold smuggling case?

Image is only a temporary thing.

Opposition is just trying to drag the Chief Minister’s office into this to malign his name, as there have been no corruption charges against this Government so far. There are no parallels between Solar case and this case, except that two women have been involved. I have never tried to personally tarnish the name of former CM Oommen Chandy in that case.

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But there were clear evidences of the involvement of Chief Minister’s office.

Now, in this smuggling case, there are no such evidences, just allegations.

Nothing less than NIA is probing it.

We welcome it. Let the investigation be completed. Let the facts come out.

The failures have all been of Central Government agencies like Customs, Customs Intelligence and Airports Authority. Where were they when these smuggling episodes happened for around 20 times, even through special flights and chartered flights?

We have nothing to worry, as the Chief Minister has reiterated on this affair.

No such wilful corruption will come from this government. You can be sure

"This is no time for petty politics. Opposition's local level leaders know this and are cooperating with the Government.

However, their state level leaders are just trying to tarnish and demoralize the CM and Government. It will not succeed. "

of that. But efforts to tarnish and demoralize the CM and the Government are continuing, Now, it is said that we postponed the Assembly fearing this. Not at all. We are double their number in Assembly.

Why should we fear? We can shred their arguments into bits in the Assembly. Still, we didn’t do it because we felt that an Assembly Session now would be detrimental to the interests of Kerala in this Covid fight. The time for petty politics is over. But the Opposition is yet to realize it.

As a leader on the forefront of the Covid battle, what is your advice for the public now?

The danger is quite high now. Don’t relax any precautions that you all were taking. Instead, all should be taking extreme care in this new fourth phase. If you need to meet anyone, realize first that either you or that person can be a carrier of this deadly virus without any symptoms at all.

After many months of hardship, people tend to take things lightly now. That would be the greatest danger. People should realize that the Government alone can’t win this.

This is humanity’s war against an enemy that threatens its very existence.

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HIGHER EDUCATION

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SRM UNIVERSITY, AMARAVATI, AP

MAKING OF A WORLD CLASS UNIVERSITY Seasonal Magazine in conversation with Prof. VS Rao, Vice-Chancellor, SRM University, Andhra Pradesh.

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THE MAKING OF A WORLD CLASS UNIVERSITY SRM, founded by educationalist and Member of Parliament Dr. TR Paarivendhar in 1969, is one of the most accomplished educational groups in India. SRM’s flagship institution, SRM Institute of Science & Technology (SRMIST), a deemed university near Chennai, is one of the largest and most renowned universities in the private sector with over 50,000 students and over 3200 faculty, with one of the broadest por tfolio of subjects including a medical college and hospital, which has attracted international eyeballs for their contribution in the testing of India’s Covid-19 vaccine. By 2015, SRM Group has also been home to two more private universities, SRM University Har yana and SRM University Sikkim. When such a Group ventured out into building its fourth university at Amaravati in Andhra Pradesh, what could be expected? It would be anyway difficult to surpass the achievements of the massive SRMIST. Yet, the visionary he is, Dr. P Sathyanarayanan, Founder, Chairman & President of SRM University, AP, decided to build not one of India’s finest

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universities, but one of the world’s finest. Every policy taken and every stone laid at SRM AP is as per worldclass standards, nothing less. In a move unheard of in India, SRM AP commissioned UK & US based global executive search firms Perrett Laver and Society Search to recruit faculty for the new university. This was in Dr. Sathyanarayanan’s firm belief that, above all, faculty makes a university.

The result speaks for itself. SRM AP is perhaps the only university in India with 100% of the faculty having international exposure. It also resulted in SRM AP attracting one of the finest academicians in India, in the missioncritical executive post of Vice Chancellor, Prof. Vajja Sambasiva Rao, who studied at BITS-Pilani and University of Bielefeld, Germany, and who has served as the President of NIIT University and Acting ViceChancellor and Director at BITS-Pilani.

The university also has two worldrenowned academicians as Honorary Pro Chancellors – Dr. Nicholas B Dirks, for mer Chancellor of the University of California, Berkeley and Prof. Bertil Andersson, President

Emeritus of Nanyang Technological University, Singapore and a former Chair of Nobel Foundation’s Chemistry Committee. SRM AP also made a world-class move in infrastructure when it recruited Perkins + Will, world renowned American architectural firm, which has designed some of the leading universities in the world, including Cornell University, Duke University, Tufts University, University of Illinois, University of Pennsylvania, Texas A&M University, besides global corporate landmarks like Boeing International Headquarters. The grand result is a 200 acre custom designed campus well-built for luxuries like 10:1 students to faculty ratio. The vision of Dr. Sathyanarayanan is to scale up SRM AP to 20,000 students and 1500 faculty within its first 10 years, and above all to make a mark as the finest world-class university from India. SRM University AP's faculty have been at the forefront of research and innovation since the university's inception in 2017. Recently, Dr Sutharsan Gonvindrajan, Assistant Professor in the Department of Biology

Dr. P Sathyanarayanan, Founder, Chairman & President, SRM University, AP

secured a research grant of Rs. 1.1 crore for a period of five years, as part of the prestigious Early Career Fellowship grant by DBT/Wellcome Trust India Alliance. Another Professor, Dr Panchagunula Jayaprakash has used 3D printing to design face shields of different kinds for frontline workers.

Given his illustrious academic background, Vice-Chancellor Prof VS Rao wants to promote SRM AP as a world class research-intensive university. He has also rightly recognized the need for industry-ready graduates who can employ their knowledge & skills for 21st century jobs. This area is already being addressed by the university through its international collaborations with reputed institutions like MIT & UC Berkeley. The IDEA center established in collaboration with UC Berkeley has suppor ted multiple student entrepreneurs and incubated their ideas. Students at SRM-AP also benefit from study abroad programs, research internships and placements.

On the placements front, the inaugural

batch has recently been landing top notch job offers that received personal praise from Chief Minister YS Jagan Mohan Reddy and State Education Minister Adimulapu Suresh. Seasonal Magazine's John Antony and Carl Jaison recently caught up with SRM University AP's Vice Chancellor, Prof VS Rao for this interview.

You come from a long background of academic, research and managerial experience as both a former student and senior faculty at BITS-Pilani as well as experience as a scholar from University of Bielefeld, Germany. What are your first impressions of SRM AP? My association with BITS Pilani started as a student and then went on to become its Vice-Chancellor. I held various administrative positions, including Deputy Director, Off-campus programme & Dean, Practice School Division, amongst others. My responsibilities included many, to name a few - student care and

mentoring, managing Practice Schools in India and abroad, and Work Integrated Learning Programmes at BITS. I have played a crucial role in the establishment of BITS Pilani, Hyderabad campus in terms of strategy and conception. I have worked very closely with Dr Y S Rajasekhar Reddy, the then Chief Minister, in realising his vision of establishing BITS Pilani campus in Hyderabad, state-of-the-art campus with innovative ideas. I was credited with building a green campus within eighteen months replicating all the notable features of BITS Pilani with the help of the faculty, staff, alumni & students.

As SRM University-AP embarks on an exciting period of development in an immensely challenging and competitive environment with an ambitious strategy that builds on the well-established reputation for groundbreaking research, innovation and cross-disciplinary academic activity, I feel SRM AP has demonstrated the capability to make a difference and SEASONAL MAGAZINE

provide quality education and will definitely evolve as a world-class institution.

I consider myself fortunate to have this opportunity to be part of such a worldclass institution in the sphere of higher education, that has been delivering quality teaching and learning, and research relevant to the societal and national needs. We are creating an academic revolution led by SRM University-AP and striving to make better citizens for our country irrespective of the cultural and financial background who will contribute to the welfare of society and country’s development.

I would like to emphasise on our faculty members having PhDs from institutions of national and international repute.

With their international experience/ exposure, they are able to give the best learning experience to students. The infrastructure is of international standards, with many research labs and state of the art facilities for academic and research activities.

The unique collaboration with UC Berkeley provides an extraordinary opportunity for our students to study a semester there. Students also join the SCET (Sutardja Center for Entrepreneurship & Technology) Bootcamp. Students are involved in research projects, and during the last three years, 23 best-talented students were sponsored to study one semester at UCB. Students are given the opportunity to contribute to research and publish the papers.

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As the Vice-Chancellor of the University, I am looking forward to contributing to the internationally acclaimed SRM Group, through my best efforts. We at SRMAP would like to see that every student graduating from here would be industry-ready and get numerous opportunities during their career career.

What are your thoughts on the National Education Policy and its impact on higher education since the implementation directions are less clear as compared to the K-12 schooling system?

The National Education Policy 2020 is full of provisions that may place India on the global map for the sought-after educational haven of the world. The National Education Policy 2020 supersedes the old education policy, framed in 1986 and ushering in an era of new educational reforms. As the Hon’ble Prime Minister, Shri Narendra Modi said, “The National Education Policy (NEP) 2020 laid the foundation for a ‘New India’. We can see that the new education policy is designed with several important factors to address the current challenges in the higher education sector.

One of the main objectives of NEP is to create vibrant multidisciplinary institutions of high quality that increase the capacity of Higher Education in India and ensure equitable access. A significant objective of NEP is the move towards a more imaginative and broadbased liberal education as a foundation for the holistic development of all

students with a rigorous specialisation in chosen disciplines and fields. NEP2020 allows the institutions and faculty with the autonomy to innovate curriculum, pedagogy, and assessment within a broad framework of higher education qualifications which will ensure consistency across institutions and programmes. Institutions can now integrate its academic plans into its Institutional comprehensive Development Plan (IDP), committing to the holistic development of students and create robust internal systems for supporting diversity among students in academic and social domains.

NEP-2020 also strives to utilise Open and Distance Learning and online education to its full potential. ODL is being renewed through concerted, evidence-based efforts towards expansion while ensuring adherence to clearly articulated standards of quality.

The Open and Distance Learning (ODL) programmes will aim to be equivaent to the highest quality in-class programmes available. Under the new policy regulations, better norms, standards, and guidelines for systemic development and accreditation of ODL will be prepared, and a framework for ensuring the quality of ODL will be recommendatory for all HEIs will be developed. MERUs (Multidisciplinary Education and Research Universities) is another essential aspect of the new pedagogical policy. With an aim to attain the highest global standards in quality education, MERU will also help the education sector to set the highest standards for multidisciplinary

education across India. I am glad to mention here that we have established SRM University – AP as a multidisciplinary research-intensive University. I am also glad that in the year 2020, we have established the School of Management (SOM) at SRM –AP. Starting out in 2017, the first batch of SRM AP BTech students will be graduating in 2021. We hear that the initial round of placements has started and that it has been good for a first batch. Can you shed more light on this?

The campus recruitment drive has just begun for the inaugural batch of 2017 or Class 2021 with 13 toppers landing top-notch job offers. Our students are already being placed in top companies with the highest pay package of 39.5 lakhs so far far. The students undergo sufficient and different training sessions/ programmes to help them receive jobs of their dreams. Career counselling is also done on a regular basis.

Anheuser-Busch InBev offered sixmonths internship, followed by job offers to outstanding candidates.

Anheuser -Busch InBev SA/NV, commonly known as AB InBev is a Belgian multinational drink and brewing company. The company has offered an internship stipend of 30 thousand per month and a CTC of 1217 LPA to the candidates who will join the company after successful completion of their internship. Also, another student got placed at Sabre Corporation in the position of an Associate Software Engineer. In this

revered company operating in the travel technology sector, the student will be receiving a CTC of 10 LPA. Another renowned company Health Rx, which innovates and develops secure web-based and mobile solutions to streamline information flow in the clinical and research environments, has offered Technical Internship with a stipend of 35 thousand per month, and post that a confirmed job offer with CTC of 12 LPA. Further, VIRTUSA Corporation, an American IT service provider, offered a position in the company with a CTC of 4.5-6.5. The other renowned company which conducted the recruitment drive at SRM AP, Amazon, selected a student for an internship with a stipend of 45 thousand per monthleading to a job offer with a CTC of 39.5 LPA. Further, one student received another offer from Sahaj Soft with a CTC of 10 LPA. Sahaj Soft is a software services and consulting firm which provides simple solutions backed by their time-tested methodology and engineering practices.

As the recruiters shortlist the best young talent who are enthusiastic, devoted to learning and brimming with fresh and creative ideas, SRM AP placement team have thoroughly trained the students both in terms of technical expertise and soft skills. The rigorous training that the students underwent since the beginning of their B. Tech course, coupled with their talent and motivation, has enabled them to succeed in recruitment drive with flying colours.

SRM AP believes that this is merely the beginning of the placement season, and many more brilliant students are waiting to showcase their mettle to land up with excellent job

offers in top-notch companies.

I am confident that our B.Tech students will find their place of choice in reputed Software and Hardware Companies, Aerospace, Automotive, Robotic, CAD, Control and Instrumentation, Automobile, Electrical Companies, EPC Contractors, Petro Chemical Construction, Public Health, Transportation, and Urban Planning companies of both India and abroad.

Massive job opportunities are awaiting BBA and MBA graduates in the domains of Marketing, Finance and Human Resource Management, Banks, Financial Institutions and Insurance, ECommerce Companies. A management degree along-with some years of work experience will surely take them to theleadership position in any organisation.

Liberal Arts and Basic Sciences graduates will have the option to choose from various opportunities for employment in Government, Education Sectors, Research Laboratories, Industry, Hospitals, Banks, Insurance Companies, and Non-Profit Organisations. They can work as a Scientist, Teacher, Zoologist or Wildlife Biologist. Ample career options exist in the fields of Social Media Manager, Technical Writer, Public Relations Specialist, Counsellor, Librarian, Editor andContent Manager, Human Resources Specialist and the Civil Services.

A stated goal of the NEP is to impart vocational education in order to increase Gross Enrolment Ratio in HEIs. What are the steps being taken

by SRM University towards this end, and can you provide details on the curriculum and its alignment with industry requirements?

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SRM University-AP is very much aware of today’s industry requirements. SRM University strives to provide students with such kind of education which not only enlightens them and make them knowledgeable in their subjects but also helps them to secure a job of their preferences.

SRMAP has already inked an exclusive liaison with Andhra Pradesh State Skill Development Corporation (APSSDC) to provide the students with quality training. APSSDC has provided a unique opportunity for our students at SRM University-AP, Andhra Pradesh with the Online Internship Programme of one Month to forty-five days. The programme exposes, engages and educates students through real-world experience and live projects by utilising the latest industry tools such as Android, web development usingReact JS & Django, Python, embedded printed circuit board, AWS Cloud etc. Around 1140 students of B.Tech first, second and third year of SRM University-AP have registered for the Online Internship Programme in different areas as per their choice. Furthermore, out of the total 1140 registered students, 821 students are doing Online Internship in Phase-I, and the remaining others will get a chance at the Phase-II of the programme. It is an amazingly great opportunity that APSSDC hasprovided for the students. The Online Internship Programme is carved out to play a pivotal role for our SRM University-AP students with the experience needed to bridge the gap between academia and industry. Simultaneously, it will help students to enhance their ability and confidence to secure their dream job in IT and core sectors. SRM UniversityAP profoundly appreciates the motivating initiative by APSSDC for our students and other technical institutions during the COVID-19 pandemic.

Being a very young university of merely three years, SRM University is yet to introduce vocational courses of its own.

But we certainly hope to announce such courses it in the near future with standout qualities as we have already done with mainstream academic courses.

Our future plans include skill development and vocational courses for SEASONAL MAGAZINE

the communities around as a part of our Corporate Social Responsibilities. We have plans to promote the art and craft and handloom works that are produced in nearby villages by providing them with courses on basic computer knowledge, language and soft skill training along with many other courses on skill development and entrepreneurship.

Despite its young age, SRM AP has taken some significant strides on the research front. Can you walk us through some of the highlights of the research achievements?

The world-class faculty of SRM University-AP are widely engaged in research. Since its inception in 2017, the University has published 216 research papers in reputed journals with 51 as the highest impact factor factor.

The number of funded projects at present in the University is 24 with an outlay of 13 crores of rupees. rupees The total number of patents filed and published by the University is 13, of which one is a student patent. Quite recently, Dr Sutharsan Govindarajan, from the Department of Biology, has been awarded the prestigious ‘Early Career Fellowship’ grant by DBT/Wellcome Trust India Alliance Alliance, funded by the Department of Biotechnology (DBT) and the Wellcome Trust, United Kingdom. The fellowship supports outstanding young scientists to pursue high-quality research in the field of biomedical science and establish themselves as independent researchers in India. Dr Sutharsan sought a total research grant of 1.1 crores for a period of 5 years as a DBT/Wellcome Trust India Alliance Early career fellow.

Further, our Research Council haswellreputed academicians and scientists, industry leaders and is headed by Dr V K Saraswat, Hon’ble Member of Niti Ayog.

The URC (University Research Council) provides directions to research activities of the University from time to time.

Our industrial research collaboration with Indian Railways, Amara Raja Batteries Ltd, Mahindra & Mahindra, Tanishq and Titan speak for the University’s hunger for quality research.

SRMAP’s Meteorological Centre,

T. R. Paarivendhar, MP Founder, SRM Group

another Centre of Excellence, is one of a kind.

The consortium of SRM IST, SRM University AP and Integral Coach Factory, of the Ministry of Railways Railways, Chennai is developing a prototype of Proton Exchange Membrane Fuel Cell (PEMFC) coupled with Lithium-ion batteries driven switcher for locomotive applications. The weight of the coaches with passengers would be approximately 135 tonnes, with PEM FC operating at a maximum power output of 200kWh and continuous power of 150kWh as a prime mover and transient power in excess will be stored in the 150kWh lithium-ion batteries to cater to the needs of electrical coach requirements. Six compressed-hydrogen storage tanks of dimensions 0.4m outer diameter and 4m long with 60 kg of hydrogen each and operating at 350 bars will be located on the roof of the train whereas Lithium-ion batteries will be loaded in the space below the coach, PEMFC will be stacked in one of the coaches to avoid electrical wiring and mechanical design complications. Several technological challenges will arise when designing and developing such a large fuel cell vehicle which will be mitigated by continuous efforts of ICF Engineers and SRM faculties. It is proposed to demonstrate this ambitious and challenging Fuel Cell-based train in the next three years. So far, only Germany has demonstrated the hydrogen-powered fuel cell-based train.

Needless to say, we are strongly emerging as a well-recognised research University in India and overseas.

There are clear indications that multidisciplinary education is going to be the way forward for India’s educational institutes. Does SRM University already have interdepartment collaboration and research in place? Can you explain initiatives on this front?

Through their research, our faculty members incessantly work together to accomplish the goal of contributing to the requirement of the society for holistic development. Faculty from varied departments such as Electronics and Communication Engineering,

Mechanical Engineering, Electrical and Electronics Engineering, Physics and Chemistry work on the development of Li-ion batteries for the industrial collaborative project with Amara Raja Batteries Ltd to develop batteries of the future and achieve a leap forward in sustainable energy technologies to reduce India’s carbon footprint. Further, the Department of Physics, Biology and Chemistry are researching collaboratively on Molecular Electronics. In addition to that, faculty members from the Department of Physics, Electronics and Communication Engineering, Mechanical Engineering, Electrical and Electronics Engineers are tirelessly working on the prototype of ‘Jal Janak Rail’ or ‘Hydrogen Train’ which a kind of rail vehicle that uses onboard hydrogen fuel as a source of energy to power the traction motors and/or auxiliaries. Apart from these, our faculty members shoulder innumerable multidisciplinary and inter-department collaborative research projects.

Recently, an SRM AP faculty had landed a Rs. 1.1 crore research grant from DBT & Wellcome Trust of UK, which will be used for setting up a niche lab for his research. Do you think more faculty and research scholars are capable of such achievements?

As I have mentioned earlier, Dr Sutharsan Govindarajan has been awarded ‘Early Career Fellowship’ grant

by DBT/Wellcome Trust India Alliance, funded by the Department of Biotechnology (DBT) and the Wellcome Trust, United Kingdom. He received a total research grant of 1.1 crores for a period of 5 years. As we are aware, the India Alliance grants are highly competitive and are based on the profile of the applicant and the novelty and the importance of the proposed research.

Nationwide only less than 10 Early Career grants are awarded every year.

Through this fellowship, Dr Sutharsan will establish an independent research laboratory at SRM University – AP with the support of Prof. Jayaseelan, Head, Department of Biology, and the fellowship supervisor of the project.

In this project, Dr Sutharsan plans to SEASONAL MAGAZINE

venture and explore the biology of a novel class of bacteriophages called Jumbo-phages. Studying how such cellular structures are formed by jumbophages will provide a unique opportunity for him to investigate the origin of complex life. His proposed research has several biotechnological applications such as phage therapy and synthetic biology. In the next five years, he anticipates major fundamental discoveries in the field of bacteriophage biology and evolution.

SRM AP had made some impressive academic tie-ups with some of USA’s top universities. How are these tieups helping SRM AP students in bettering their vision and prospects?

We have academic collaborations with world’s highly renowned universities such as Massachusetts Institute of Technology(MIT); The University of California, Berkeley; Illinois Institute of Technology; EFREI, Engineering School of Information and Digital Technology, Paris, France; The University of Wisconsin-Madison Wisconsin-Madison. MIT provides us with licensed MITx courses to design our curriculum in a modernised and pragmatic way. They also support us in choosing ideal course contents and conducting design camps, learning activities, assessing particular

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degree objectives and accreditation standards.

The MOUs with Illinois Institute of Technology, EFREI, Engineering School of Information and Digital Technology, Paris, France and the University of Wisconsin-Madison encourage visits by faculty from one University to the other for the purpose of engaging in research or other educational activities; facilitate the admission of qualified students from one University to the other for the purpose of enrolling in undergraduate and graduate programmes, and in thecase of advanced graduate students, participating in research; foster the exchange of academic publications and scholarly information, and promote any other academic activities which enhance the above-mentioned goals.

The higher education regulatory bodies are set to undergo a major revamp with the Higher Education Commission of India (HECI) as the apex body headed by the Prime Minister. In your opinion, is this a case of old wine in a new bottle and will it solve the decades-old problem of regulatory overreach on the part of these institutions?

No, it is certainly not. It is a pathbreaking education policy in several

aspects which is going to change the landscape of higher education of our country as we have known it. The pedagogical policy needs to be revamped with time to meet the requirements of the new age. There is no doubt that the changes in policy structure, regulatory bodies and education pattern are all part of that. It does not really matter what regulatory bodies are there or what are they called as long as they do their work properly.

However, as we can see, this time, the government has undertaken a significant change in our existing education policy, entirely abandoning the old one and introducing a revamped one. In this scenario, it can be proved

to be a wise decision to have a new regulatory body with a well-defined set of rules, regulations and directions in compliance with the new pedagogical policy. In this way, conflicts can be avoided. I am sure the government will issue new circulars informing more on how to implement the new policy. The new body will know better its duties and responsibilities and will not be confused about what to do and what not to. Whether the new body will be able to solve all the problems in the education sector, only time can tell.

Nevertheless, this is a much-awaited and expected step. We were so accustomed to our previous system that this reformation will bound to take some time for people to get adjusted with. But surely we had advanced a long way from 1986 when the previous education policy came into force. It need not be debated that the current generation and future generation’s needs are quite different as it was threefour decades ago. The new policy is much welcomed.

The Academic Bank of Credit (ABC) is a novel idea that has been introduced in the NEP where credits can be accumulated by a student across multiple HEIs to go with the multiple exit and entry options.

However, do you think it is a case of putting the cart before the horse as the industry needs to be appraised and prepared for the eventuality of this new job market dynamic?

A degree is not synonymous with education. Especially, in this era, it will be highly unwise to share an opinion like that. Academic Bank of Credit is

indeed a novel and great idea that recognises and protects a student’s struggles and endeavours. In my long career as an academician, I have seen many students who could not pursue their passion due to the difficulty of changing courses or personal problems and lost precious academic years. The credit bank is very much student-centric and certainly bears an important message that every bit of education is essential. Education can not be contained within a specific time.

Internationalisation is another thread of the NEP that deserves attention.

While partnerships and tie-ups have been carried out in recent years, do you think India’s HEIs is capable of matching up with its global counterparts if they decide to set their campuses here?

I see no reason why it should not be.

Our IITs, NITs, ISIs, IISERs along with many private universities already carry out impactful education and research.

In the age of globalisation, we can not livesegregated. Shared knowledge and shared wisdom are the keys to make progress quickly and effectively. We have an abundance of talent on our land. A little help in terms of technology and infrastructure, along with modernised and pragmatic views, can go a long way.

The student exchange programme, faculty abroad programme, shared endeavours towards curriculum designing development, jointly founded entrepreneurship academy etc and all have proven to be extremely beneficial for the students. But, I must speak my

mind that we do not need another Harvard or Stanford or Oxford here.

India’s culture and environment are different from the West. We must never forget that. What we need is to develop ourselves and our institutions in such a way that the world bows to us. The world is yet to conceive India’s true potential and capability.

SRM AP has plans to set up Centres of Excellence in some superspecialised areas of manufacturing and information technology. Can you explain these projects?

In the next three to five years, we also have plans to establish Centres of Excellence – Centre for Additive Manufacturing, Centre for Cloud Computing, Centre for Internet of Things (IoTs), Centre for 5G Technologies, Centre for Artificial Intelligence & Machine Learning (AI & ML), Centre for Satellite Technology, Centre for Renewable Energy – Offshore Wind Farms, Centre for Blue Economy, Centre for Gene Editing – CRISPR, Centre for Materials Genome.

We wish to establish Industrial Research Park at SRM University AP, to provide opportunities for the faculty members, research scholars and students to carry out research in front line, emerging technologies and also to cater to the future needs of the Industries. Students of SRM University AP, will have industrial exposure and industrial experience by working as interns in the research park.

SRM AP plans to set up 20 such Laboratories in the next 5 years in association with some of the industries.

In addition to these, we also have a plan to establish Space Work Center.

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IN-FOCUS

WHY KITEX WILL EMERGE STRONGER FROM THE CRISIS

Seasonal Magazine in conversation with Sabu M Jacob, Chairman & Managing Director, Kitex Garments Ltd.

“ For everything there is a season, a time for every purpose under heaven. A time to plant and a time to harvest. A time to search and a time to quit searching. A time to be quiet and a time to speak. A time for war and a time for peace.

– Holy Bible – Ecclesiastes, Chapter 3.

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”

.

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WHY KITEX WILL EMERGE STRONGER FROM THE CRISIS

D

ifferent times call for different strategies. What worked in a boom won’t work in a recession.

And the reverse too – what worked in a downturn won’t work in a growth phase. But only the world’s best leaders know about this, especially when it comes to business, as leaders in business are always under much pressure to perform, from investors and competitors.

Add to that the innate human tendency to repeat successful strategies and you have a recipe for disaster. As Microsoft co-founder and one of the richest guys who ever lived on this planet, Bill Gates, says, “Success is a lousy teacher.”

We recently caught up with Sabu M Jacob, Chairman & Managing Director of the listed Kitex Garments Ltd, to assess the prospects of the world’s third largest infant wear manufacturer which exports mainly to the demanding US market. We came out from the interaction with a distinct feeling that here is a company that is going to not only survive, but emerge stronger from this crisis.

And the reasons for these couldn’t be more ironic.

Sabu M Jacob was not anywhere near his usual bullish mode. He appeared extremely cautious and conservative about the immediate outlook as well as the future. And that is precisely why we feel that this company is going to emerge stronger post the pandemic.

To appreciate this fully, you must know the kind of unbelievably momentous business operation that he has been running and the unique way in which he has been doing it. Kitex supplies to some of the largest American brands like Walmart, Jockey, Gerber, Amazon, Target, The Children’s Place, Lamaze, Carter’s, Oshkosh, Buy Buy Baby, Sam’s Club and more.

And in a state like Kerala, which is not known for excellent labour relations, Sabu had become the largest employer in the private sector, by recruiting migrant workers too from all over India and accommodating them in-campus in what could be the best hostel facilities by any corporate in India.

On a good day, Kitex manufactures 6 lakh pieces of infant apparel and despatches a whole container of them to the US. Kitex had recorded excellent growth in last fiscal’s Q2 and Q3, and had lined up Rs. 2000 crore of investments to triple its capacity to 22 lakh

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units per day by 2025.

But once the pandemic struck and the realities of the crisis unfolded, Sabu has rapidly changed strategies. Indeed, he belongs to that rare breed of leaders who realizes that there is a time for everything. “This is not a time for adventurism of any kind,” says Sabu emphatically.

He says that since the core business of all companies are hurt, the temptation will be huge to diversify by investing into other sectors. Kitex too has several such proposals before it, but won’t consider any such strategies until there is more clarity on the horizon. There is no point in diversifying to sectors where a business has no core competencies, especially during such a risky time, feels Sabu.

He should know the risks as he runs a company

whose entire manufacturing facility is now a quarantine area for Covid-19. The only diversification he is planning is a ready opportunity that he sees clearly – international hospital supplies, which the company can undertake without much new investment and retraining of the workforce. He expects this to be a good growth area for the next several years.

But other than this, he has put on hold all investment plans, even in his core business. “This is a time to wait out and survive this crisis first. If you have survived this crisis whenever it ends, you will then definitely have opportunities to expand and grow,” says this business leader who seems seasoned beyond his young years.

Sabu M Jacob is also rare in that he is an accomplished politician, who floated an NGO Twenty20 to undertake developmental works in his area, that Kerala’s major political parties had

long neglected. He later converted it into a political party and movement, and wrested power in the panchayat election.

That was five years ago, and with next panchayat election due this year or next, Sabu’s track-record is under scrutiny. Whatever his political opponents are saying, it is a fact that Twenty20 has enough accomplishments to claim.

For one, Sabu has led a massive homebuilding movement in his Kizhakkambalam panchayat that saw more than 500 houses being built for the poor, thereby transforming some of the most impoverished colonies to a beautiful township. And under Sabu’s guidance, Twenty20 is planning to contest in neighbouring panchayats too, taking this novel political movement forward.

Seasonal Magazine in conversation with Sabu M Jacob, Chairman & Managing Director of Kitex Garments Ltd.

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What was the export situation during the lockdown, and after that?

The situation even now is not very safe.

Like in India, everywhere business has been affected. Our business is mostly with USA. After the initial start in two states in New York and New Jersey, now I think it seems to be settling down there.

But in the other US states, it has started spreading. Now the daily rate there is almost 70,000 people, so it's not a very safe situation. The information what we are getting is not really good. And we expect that this is going to continue for at least three years. I think the economy is going to be affected, so naturally the purchasing capacity will come down and people will spend only for essentials like food and other items. So that means any business is going to be affected. But since we are into infant-wear I think that we would be the last segment to get affected. People will cut down this expense only as the last resort. However, the overall situation is not good.

During the lockdown did the exports from KITEX come to a standstill or were you doing it?

We had closed in March. We could not reach what we estimated because we lost the last two weeks’ shipments and it was totally closed in the months of April and the first half of May. We restarted sometime in the middle of May but we are running only like 30-35% production capacity right now. So, that means the orders are less. We are also facing a couple of issues in terms of labour because to keep all the safety protocols and to maintain the production level at the same time is very difficult. The workers are staying inside the dormitories in the campus. We need to be very careful that all the precautions are taken care of otherwise it can affect

“DIFFICULT TO MAINTAIN COVID PROTOCOL AND PRODUCTION”

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many people and it can be another disaster. So, we are very much cautious about that. What we have done is we are keeping the entire factory quarantined. Whoever is inside they are working now, and we are not normally allowing anyone to go out from the factory or anyone to come inside the factory. If a worker wants to go out, then while coming back they have to take minimum 14 day quarantine and then they have to go through the Covid test too. With all these requirements, we decided not to go very aggressively on the production front. We will go very slowly at least for another six to nine months and then evaluate how we should go forward.

And now it has become a very unhealthy competition and prices have crashed.

And we are slowly backing out from that because it is not really a profitable business right now. But we are still working for some export orders for PPE kits because we think going forward such hospital disposable products, maybe a growth avenue.

You had ventured out into making PPE kits. How has been the demand for that? Is it a scalable business?

We started out for the domestic market and we did some good volumes in the initial phase. But as most of the textile factories lost their regular export business, all of them converted their production capacity to make PPE kits.

And what kind of percentage of employees have you retained, around 60% of employees have been retained?

Yes. Actually we had around 11,000 people before lockdown in February.

When the lockdown was declared in March, most people especially the migrant workers went home and when

“KITEX GARMENTS FACTORY IS UNDER QUARANTINE NOW”

WHY KITEX WILL EMERGE STRONGER FROM THE CRISIS we restarted it was only around 4000 people. 7000 people had gone out. Now that we have resumed, we are recruting back people with the quarantine and the Covid test, and now there is nearly 60% workforce.

You had also started a plan to take up more locals workers, how is it working out?

Yes, now we are not taking people from other states as it is too risky because: one, to bring them here after a three day train journey is quite risky. Second, even if you bring somebody and we find them to be Covid positive while testing it is going to be another risk. We cannot send them back. Keeping them and getting them proper treatment is difficult.

So, we decided not to take anyone from out of the state till this crisis blows over.

You had very good performance in the September and December quarters. What contributed to that?

Yes. We had witnessed a huge increase in our turnover as well as profits. We expected the same thing in Q4 also but

“EXPORTS HAPPENING AT AROUND 35% OF CAPACITY”

unfortunately, the lockdown has affected our results. But it was fairly good. We lost out on two weeks of production due to which the loss was nearly Rs. 60-65 crores of business. Q4 didn’t work out as expected, otherwise we would have seen very wonderful annual results. But even with all that is going on, we still made a very reasonable profit and our turnover was better than last year. But this year Q1 is going to be affected drastically as we couldn’t do anything during half of the quarter and in the balance one and half months we were running only at 30%-35% coverage. I think it is not only going to affect KITEX. Every company is going to be affected like this. We are trying to improve in Q2 and now our goal is that even with the 50-60% capacity, we will try to maintain our profit levels. The turnover is less but the percentage of the profit is what we are trying to maintain. We have taken steps to reduce the cost everywhere. For instance, we are doing 25-50% labour savings to reduce the cost and to maintain the profit. We will continue in this manner in Q2, Q3 and Q4 and then take stock of the pandemic’s impact going forward.

Last August, you had some plans to be the number one player by adding more products like socks and infant accessories and vertical integration for all products. Have you started out on all those launches?

The total expansion plan was earmarked to be of Rs. 2000 crores of which Rs.

“HOSPITAL PRODUCTS IS A GOOD GROWTH AVENUE NOW”

910 crores was already approved by the board. We had begun with all the planning like building design & land management but after the lockdown we have decided to put everything on hold for now. Frankly, this is not the time for any investment. We decided not to invest any money and instead we are closely watching and monitoring the present situation. Until the business sentiments improve and investor confidence is back, we will not invest any money into the market.

How far have you been successful in finding other global markets apart from US? USA is a much better market than any other place. First of all, for our kind of business, we require factories that undertake mass production, which is not fit for the smaller markets like Europe, which have already crashed by the way.

Europe is a very small market compared with USA, in this business. Our productivity and number of pieces per day is very huge, almost around a million pieces. This makes it impossible to sell to a European country or any other country, other than USA. Therefore, we would like to basically stick with America. The factories doing business with Europe are mostly in Tiripur and Bangalore, and they are now in big trouble due to lack of orders.

Therefore, this is not the time to move to any other market. America will recover faster than any other country.

How is protectionism in the U.S affecting your business? There is a protectionist trend for protecting U.S businesses.

I don’t think it will affect India very much. In a way, the current situation is good for India as the U.S is putting pressure on China. When the market bounces back, India will be in favour.

Given the current political and social climate, apart from the pandemic, there is a lot that is happening in the U.S. But once the situation improves, I think India is going to gain more businesses, not only from America but European countries as well. Therefore, I can SEASONAL MAGAZINE

WHY KITEX WILL EMERGE STRONGER FROM THE CRISIS envision gains for India and protectionism may not impact as much.

What is the status of your different business segments in the US like brands, private labels, old brands etc?

All our businesses have been affected.

The issue is no longer just marketing issues. As I explained earlier, the issues revolve around how to manage the labour, how to commit business decisions etc. There's no guarantee that we can function tomorrow and simply increasing the labour force is not possible with all these restrictions.

Secondly, even if I want to increase, it is quite possible that the number of Covid cases could increase, following which the area would be declared as a containment zone leading to close down. The current requirement is to approach carefully, focus on survival and not push things aggressively.

Any plans for starting Indian operations?

There are no plans for starting Indian operations. We are not going to do any sort of additions, new ventures or investments. The India focused factories and retailers too are getting affected everywhere. If you go to any textile shop or any other shop, it is evident that the sales have come down almost 80-90%.

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In most of Cochin’s big textile shops, the sales are only in undergarments.

People are buying only essentials and not buying any churidhars, saris, outer wears etc. All their suppliers have been affected. Therefore, it is natural for the existing manufacturers or industries to think about exploring other areas.

However, it is not the right time for a new business to enter a new market as it is a very difficult time.

Is there any scope for licencing arrangements like the one Jockey is having with Page Industries?

There will be a lot of opportunities as international companies will look to sell their licence and brand. Ideally, this is the right time to secure a brand. But the fundamental question is what is the future? What is going to happen tomorrow? Next year? Will the situation improve in 2022, 2023, or 2024? Unless we get some clarity, it is very difficult to predict in this market. Therefore, we are not trying for any brand, future investment or any such future plans.

“FY’20 TURNOVER WAS BETTER THAN PREVIOUS YEAR”

What is the political situation for 2020 in Kizhakambalam and what would be your assessment?

Politically, there's not much difference.

I don't know whether the Panchayat election is going to be conducted anytime soon. We are not like any other political party, as we are always very active in the society’s development.

There is nothing to be done for election purposes as we continually impact lives of our community. We are not required to do election campaigns or anything like that. We are planning to have a green campaign – without flex board, sound pollution etc. We are already in the people's hearts. Therefore, there is no need to spend money on all these activities. We will focus on social media election campaigns. We are very confident that we will improve our position but I cannot predict given the nature of today’s situation.

You had plans to branch out to other panchayats in this year's elections.

Are you still planning for them?

Yes, we will be expanding our political reach. We want to give these facilities and services to nearby panchayats also.

We have been working for this panchayat for the last 7-8 years and people have actually benefited from our

hard work. Now we have actually decided to at least extend to one or two panchayats. The groundwork like membership distribution has already started. I think the nearby panchayats will benefit from our expansion.

You had a mega plan of building around 500 homes. What is the status of this project?

We have done way above that target and we have finished around 890 houses.

We have also done another 650 renovations of existing houses. In addition to that, around 72 houses in the Lakshamveed colonies have been converted into villas. Apart from housing projects, we have also undertaken road construction. The plan was to convert these roads into BMPC (Bituminous Metal Protective Coating) but it is taking longer than expected as we have longterm plans in mind. The widening process of roads takes a lot of effort, time and money. However, all this is in progress. Therefore, we have completed around 80% of what we initially planned to do.

Regarding these 890 homes, can you tell us what kind of homes are these?

How many sq. feet and what kind of cost you incurred?

It depends. Some houses range from 500 to 720 sq ft. It really depends on the size of the families. We have options with one bedroom, two bedrooms, and three bedrooms. But all of these are similar constructions with similar facilities. The only difference is that the area is different and possibly in the finishing style. As some people made their own contribution, we made some value additions like vitrified flooring, granite sit outs etc. Otherwise, the general construction and facilities are all the same.

“COST SAVINGS OF 25% ACHIEVED NOW”

Is it that the whole cost is always borne by the Panchayat?

No, panchayat bears only a percentage of the cost. For around 80-90% of the houses, the government contribution was just Rs. 2 lakhs. On average, the cost of a house is varying from 8 lakhs to 15 lakhs depending on the area. The rest is from Twenty20 and the concerned family itself.

Basically the family’s contribution is land and apart from the land some of them may put up to two lakhs. But the panchayat will put two to four lakh and the rest is by Twenty20?

Up to two lakhs. The maximum was two lakhs for most houses. However not everyone is in a position to contribute.

Most people contributed nil. The maximum was 2 lakh by some people.

You had a plan to merge KITEX Childrenwear with KITEX Garments.

Is that plan still on?

Last year itself we had decided not to merge. Our plan is to reach the maximum capacity in Kitex Childrenwear and we are going to list that company separately.

But both these companies are in the same line of business?

Yes, same line in the sense they are both into infants wear business. But there are not doing similar but different products.

Both are owned by the same promoter group but with slightly different product line?

Yes, that is correct, but they both export to USA mainly.

How do you assess the outlook for Kitex?

I frankly think that this is not the time to talk much about the business. We can see a lot of raging interviews and debates on TV with regard to the future implications of COVID. However, to my mind, there is no point in making predictions about the future. Even my children are affected. Today morning my daughter, who is seven years old said to me: “Dad, I will also come with you. I want to go for a drive”. This means even the kids have started to show signs of

frustration. Only some months ago, people were moving about freely every day, going to the movie or to the shopping malls. But now all of a sudden, we are all forced to sit at home and this is continuing with no respite. And this is happening across the world. I think even today if somebody asked me, what are your future plans? I would say nothing. Zero plans. Only if the Covid situation improves, we can move forward. Otherwise, this is not the time.

A lot of people suggest diversification to other products, other markets, and medical products. However, I would do no such thing. If anybody asks me, my opinion is very clear. Whatever is the level you are at, just try to maintain that and avoid doing any sort of investment.

Anything extra you invest would be suicidal. If you can survive Covid, then for the next 2-3 years, you will be in a better position to make an investment.

For now, it is important to run the business in manageable capacity.

What do you think of the government's response - Indian government’s and state government’s response in handling the situation?

I think the two are handling the situation very differently. Initially I would say that the Central Government was very aggressive, but I think now it has gone out of their control. Now there is an increasing realisation that the states are handling everything important in this fight. Although every state is fighting this, I think Kerala has done a very good job to manage the situation. But unfortunately, I think the Opposition politicians have created such a bad situation. In these times, ruling parties would capitalize on the situation. The Opposition will become unimportant.

This frustration has made them do some odd things. In Kerala now the number of cases is around 1000 and it may increase even more within a few weeks.

So if you ask me who made the situation like this, I would hold our politicians accountable. Otherwise, we would have controlled the situation in a much better way. As the ruling and opposition parties fight each other, they forget to help out the common man. They are responsible solely, not the people. The politicians are responsible for today's situation.

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PSU-IN-FOCUS

WHY COCHIN SHIPYA SET TO EMERGE STR A crisis exposes the fundamental strengths or weaknesses of an organization like nothing else. Cochin Shipyard, where India’s first indigenous aircraft carrier - INS Vikrant - is being built, is on solid ground with a diversified order book of Rs. 15,300 crore, including anti-submarine vessels and ship repair. Led by Madhu S Nair as CMD, the listed PSU is almost debt free, and has enough funds to undertake significant capex as planned, which includes its new International Ship Repair Facility and a new Dry Dock. The country’s renewed focus on Atmanirbhar or self-reliance in defense manufacturing, as part of the Covid-19 stimulus package as well as due to new geopolitical challenges like the China stand-off, will add to the momentum of Cochin Shipyard.

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ARD IS RONGER Madhu S Nair, CMD

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ochin Shipyard Ltd had posted a robust set of numbers for Q4 of last fiscal.

Quarterly consolidated net profit is up by 44% in the last quarter, while for the whole year, consolidated net profit is up by 32.50%.

Cochin Shipyard is a unique public sector undertaking in that it is majority owned by Government of India through Ministry of Shipping, yet it is a leading shipbuilder for India’s defence sector.

Its importance in defence is evident from the fact that Cochin Shipyard is where India’s first indigenous aircraft carrier - INS Vikrant - is being built.

Now, with the Atmanirbhar package, the importance of CSL is only going to increase.

Government’s stake in Cochin Shipyard is as high as 72.86%, but it caters to both defence and commercial shipbuilding orders from India and abroad. One of its greatest strengths is its significant leadership in the ship repair segment in India, especially in the defence sector comprising of Navy, Coast Guard etc.

During Q4, Cochin Shipyard delivered a 1000 MT Cargo Vessel for Andaman & Nicobar Administration. The company also delivered 8 RoRo Vessels, as part of a 10 Vessels order, with two Vessels remaining. It also

CSL has been working against all odds from May 6th and could still complete construction of two vessels, one a Technology Development Vessel (TDV) for Defence Research & Development Organisation (DRDO) and another a passenger vessel of 500 capacity for Andaman & Nicobar Islands.

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delivered one Fishing Vessel to the neighbouring state of Tamil Nadu.

Along with all major manufacturing companies in India, the operations of Cochin Shipyard were temporarily disrupted from 23 March 2020 due to the Covid-19 lockdown. But on 5th May it was one of the first PSUs to bounce back into operation, thanks to its major facility being in Kerala, which was relatively less affected by the pandemic.

And by 9th June 2020, most of its subsidiaries were also up and running.

While some group companies of CSL continue to work on a reduced scale of operations, the management led by company veteran and postgraduate engineer in ship building from Japan, Madhu S Nair, expects to ramp up the operations significantly in the

remaining quarters.

The shipyard has been working against all odds like reduced shifts and reduced working hours from May 6th and could still complete construction of two vessels, one a Technology Development Vessel (TDV) for Defence Research & Development Organisation (DRDO) and another a passenger vessel of 500 capacity for Andaman & Nicobar Islands. The A&N passemger vessel is the first of four such vessels ordered by A&N Administration (two of 1000 capacity, two of 500). The remaining three vessels are in various stages of construction.

However, CSL is now waiting for the sea trials of the A&N and DRDO vessels and another earlier completed vessel as the service and commissioning

engineers from Original Equipment Manufacturer (OEM) firms have to be present for the trial, but who are now in Norway, Italy & Korea, and have to fly down here after the restriction on overseas flights is lifted. Some of the OEM engineers for the A&N vessel have already arrived in Kochi, but now under quarantine.

Post the lockdown, the ship builder conducted a comprehensive assessment of the prevailing and emerging situations. Cochin Shipyard has considered all possible effects that may result from Covid-19 on the carrying amounts of financials assets, inventory, receivables, advances, property, plant and equipment, and intangibles as well as liabilities accrued.

These include possible future

uncertainties in the economic conditions because of the pandemic from available internal and external information such as the current contracts, financial strength of the supply chains and customers etc.

Based on such current estimates, Cochin Shipyard expects that the carrying amount of these assets will be recovered and there is no significant impact on liabilities accrued. However, the ship builder admitted that the impact of Covid-19 may differ from that estimated as at the date of approval of these financial statements and the company will continue to closely monitor any material changes due to future economic conditions.

CSL's importance in defence is evident from the fact that Cochin Shipyard is where India’s first indigenous aircraft carrier - INS Vikrant - is being built. Now, with the Atmanirbhar package, the importance of CSL is only going to increase.

The major challenges that Cochin Shipyard is experiencing now are

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shortage of skilled labour, and deferred supply of various raw materials and equipment from various suppliers in India and abroad. While all efforts are being taken by the company to overcome these risks, it also expects that a 3-4 months impact is possible in the execution of various projects.

While the impact of the pandemic was not much felt in the fourth quarter, as only seven working days were lost, there will be an impact for the same in Q1 of the current fiscal. But the longer impact is likely to be on the delivery of India’s first Indigenous Aircraft Carrier (IAC) - INS Vikrant - which may slip from end of FY’21 to FY’22. However, post the lockdown, when Cochin Shipyard resumed operations on a lesser scale, IAC again became the top execution priority for the company.

Among the ongoing capex projects, both the new International Ship Repair Facility and the new Dry Dock are on schedule with respective commissioning expected by December 21 and December 22 respectively. It is noteworthy that the company is executing these major projects without much debt component, using cash holding including proceeds from its IPO. The company is also on a consolidation drive. Recently, it had acquired additional 26% equity shares in its subsidiary Hooghly Cochin Shipyard Limited (HCSL). Prior to this, it was holding 74% equity stake in HCSL and with this acquisition, HCSL has become a wholly-owned subsidiary SEASONAL MAGAZINE

of Cochin Shipyard.

The country’s renewed focus on selfreliance in defense manufacturing, as part of the Covid-19 stimulus package holds immense potential for Cochin Shipyard. While orders under this new initiative is yet to materialize, the border standoff with China since then is sure to accelerate the momentum for this initiative. If it happens, India will once again see Cochin Shipyard serving the defense interests of the nation on a larger scale. Keenly awaited on this front is an order for submarines, which Cochin Shipyard is very capable of executing.

On the financial performance front, Cochin Shipyard has always been a leader in margins. In Q4 too this focus on margins continued, with EBITDA

Work on both the new International Ship Repair Facility and the new Dry Dock are on schedule with respective commissioning expected by December 2021 and December 2022 respectively, without much debt component and using cash holding including proceeds from its IPO.

margins surging to 20% from the 14% in the year-ago period. The major reason for the expanding margins has been the company’s near monopoly status in many kinds of ship repairs in the defence sector. In Q4, the EBITDA margin from the ship repair side was 27%.

The company is also known for its operational excellence. It is one of the least financially leveraged ship builders, with near zero debt level. It’s employee efficiency ratios also rank high among peers.

The company is a strong dividend payer, and its board had recommended a dividend of Rs 15 per equity share for the financial year ended 31 March 2020. The dividend percentage for financial year 2020 is at 166% with a current yield of 5%, which is one reason why Cochin Shipyard makes strong comebacks after market-wide declines in stocks, like how it happened during the peak of the Covid-19 crisis in the market.

This near zero-debt company is also attractively valued at a price-earnings multiple of just 6.77 times and priceto-book ratio of 1.16 times. One reason for the low valuation is the chunky nature of its order book, dominated by large orders. However, it has been consciously diversifying its order book during the last years and it now stands at Rs. 15,300 crore, including antisubmarine vessels and ship repair. The orders are more than enough for the company’s needs for the next two to three years.

NBFC-IN-FOCUS

MANAPPURAM FINANCE

MANAPPURAM’S GOLD LOANS TO REBOUND POST LOCKDOWN? Non Banking Finance Companies (NBFCs), together with banks, tend to do well during economic booms when credit growth is high. But NBFCs focusing on gold loans, like Manappuram Finance, have historically done even better during difficult periods for the economy. This is a peculiar strength of the gold loan business that is putting the focus back on players like Manappuram, even in this most difficult period for lenders, due to Covid-19, the extended lockdown and moratorium on loans.

he first reason why gold loan NBFCs like Manappuram performs well during economic stagnation, is about the product itself. Periods of economic difficulties are marked with poor income growth for both individuals and small businesses, but at the same time they have to keep meeting their essential requirements. The normal way out for individuals and small businesses then is to take a personal loan or small business loan to stay afloat. However, this is the same time when reluctance to lend is maximum from most banks and NBFCs. This is understandable, as by the time individuals and small businesses apply for fresh or add-on loans, banks and NBFCs would be stressed out the maximum as repayments from their larger accounts like corporate, MSME and home loans would be getting defaulted. They would have no risk appetite to take on further unsecured credit like personal loans or small business loans.

This is where a secured loan product like loan-against-gold, commonly called as gold loan, excels. Most households and small business SEASONAL MAGAZINE

owners in India have some personal gold holding as jewellery and they resort to monetize it through gold loans. Even stressed banks and NBFCs have no issue in offering gold loans, as it is fully secured with a pledge of the customer’s gold. That is why even some public sector banks have started dedicated gold loan verticals during this lockdown period.

In other words, gold loan is a unique and preferred product in stressed times by both borrowers and lenders. But if many entities offer gold loan, won’t this be a crowded market?

Theoretically yes, but there are other considerations. Dedicated gold loan companies like Manappuram have a distinct edge in this business due to various reasons.

Gold loans are offered by everyone from local moneylenders to large private and public sector banks. Gold loans from local moneylenders tend to be the costliest and least secure for borrowers, as these lenders in the unorganized sector are basically loan sharks. At the other end of the spectrum, gold loans from PSU banks tend to be the cheapest for borrowers, but come with many hassles. For instance, many public and private banks prefer to give gold loans only to their depositors, and even for such customers it is a time-consuming process as most banks don’t have dedicated staff to handle gold loans at the branches.

Between these two extremes, dedicated gold loan companies like

Manappuram Finance offer the optimum experience. As organized players regulated by Reserve Bank of India (RBI), they offer competitive interest rates, high security and above all, lightning fast disbursals for customers. This explains the high growth experienced by gold loan companies, especially during the last two decades.

A pressing question , however, is whether the current crisis due to Covid-19 and the extended lockdown is similar in impact with earlier crises like demonetization and the global financial crisis of last decade. While Covid-19 is definitely more serious than earlier crises, it has also unleashed one of the most favorable conditions for the growth of gold loan companies, which is the soaring gold price. As most other asset classes fell due to the crisis, global funds kept on buying gold as the only secure investment option.

Obviously, better gold prices translate to higher loans, and it has always been one of the clearest markers for the growth of gold loan companies. For dedicated players like Manappuram, it offers an added advantage as they have open credit lines with most of their small business customers, who can avail additional loans from the existing gold pledges due to the higher prices now.

A second question with regard to the uniqueness of the Covid-19 crisis is how the government ordered moratorium on loan repayments would affect Manappuram. But here

too, the firm has witnessed a huge strength with over 90% of its gold loan customers not opting for moratorium.

One reason for this is that the pledged gold is almost 100% made up of personal jewellery of the household, and most customers care deeply about it and would like to conclude the loan as planned to redeem the jewellery which has high sentimental value, and now more real value too as gold price is appreciating.

The foresight of Manappuram’s MD & CEO, VP Nandakumar during the good times has also come to the rescue of the firm during these difficult times for NBFCs. The firm has been an early mover and leader in offering online gold loans that disburse and collect EMIs digitally. During the ongoing lockdown, the firm could disburse over Rs. 300 crore digitally.

Manappuram's profit after tax grew 43% year-on-year (YoY) at Rs. 392.7 crore in the quarter ended March, compared to Rs. 274.6 crore in same period last fiscal. Total income rose 38.7% to Rs. 1618.2 crore in Q4, against Rs. 1,166.5 crore in the yearago period.

The business is quite secure too for gold loan companies like Manappuram which have followed a prudent Loan-to-Value (LTV) ratio.

LTV denotes what percentage of the pledged gold’s value is offered as loan.

While RBI allows an LTV of 75% on gold loans, Manappuram’s average LTV is only around 60% or lesser, which provides enough security in case gold prices correct.

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BANKING FEDERAL BANK

DREAMING BIGGER NOW TO BE THE FIRST CHOICE BANK FEDERAL BANK MD & CEO SHYAM SRINIVASAN'S INTERVIEW

ow well each organization is going to perform in the post-Covid world may feel like a mystery, but to a large extent will be determined by how well they were running in the pre-Covid era. Coming to the banking sector, the performance metrics may seem to be all in hard numbers, but in reality is much more, having to do with prudent policies and relationships with each and every customer. This is an area where Shyam Srinivasan led Federal Bank is likely to show much resilience in the coming quarters and years. The 89 year old bank has seen and survived too many economic and political upheavals, including World War II, Indian Independence, Indo-Pak wars, Indo-China war, Bank Nationalization, Gulf War, Economic Liberalization, Dotcom Burst, Kargil War and Global Economic Crisis - to be fazed by the current pandemic, the lingering effects of the lockdown and the current standoff with China. Even during the last decade, which was one of the toughest for the Indian banking system, Federal Bank swam against the current to emerge as a bank of relevance across India, from being a regional bank focused on Kerala.

Even during the current crisis, which is truly unprecedented in modern human history, Federal Bank is staying focused on growing those strengths which are relevant now in this crisis. For instance, on the deposits front, it is doing extremely well thanks to its leadership in overseas remittances and the spike in inflows due to the temporary return of NRIs and the strong rupee. And on the credit side, it is a leading player in the gold loans business, which is witnessing robust growth in this current crisis as the product of choice of both lenders and creditors. At the same time, its extreme prudence or conservative stance in risky products like personal loans, even during boom periods, is now helping the bank in its maintaining its asset quality. At no point in time has Federal Bank crossed a Gross NPA level of 3%, which is admirable in a country where the banking system NPAs have crossed 10%. The bank is a leader in digital initiatives and technology adoption and now excels in areas like digital origination and has implemented EMI products on Amazon’s e-commerce platform. Seasonal Magazine recently caught up with Shyam Srinivasan for a freewheeling video interview, where he talked about the bank’s various strategies as well his suggestions for reviving the economy. The bank which progressed much on his last year’s strategies of ‘Presence to Prominence’ in key geographies and ‘Prominence to Dominance’ in its home market of Kerala, has added a new vision this year, to emerge as the ‘First Choice’ bank for customers by doing every service in a distinguished way. On the economic front, this veteran banker strongly feels that the banks are flush with funds now and if there is a demand stimulus to excite the private sector and consumers, growth will come back in India.

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ederal Bank could wind up FY’20 on a good note.

Despite the marked economic slowdown in the country during the past few quarters and despite the gathering Covid clouds during much of February and March, the bank’s Q4 saw operating profits surging from low single digits during Q3 & Q2, to a healthy 27%. This shows that the bank’s long-term strategies have been working out well.

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The performance was well rounded with both Net Interest Income (NII) and Other Income rising impressively. NII grew 10.90% to Rs. 1216.01 crore from Rs. 1096.53 crore in the corresponding quarter last year. The Kerala headquartered bank also made some smart moves on the Other Income front including the timely share sale in Yes Bank shares, that helped Other Income to surge 72.72% to Rs. 711.11 crore in the three months of Q4 from Rs. 411.72 crore a year ago.

The traditional private sector lender’s strategies in combating asset quality issues too are working out well. The fourth quarter saw asset quality improvement with Gross Nonperforming Assets (GNPAs), falling to 2.84% from 2.99% in the December quarter and 2.92% in Q4 of last fiscal.

Post-provision, the Net NPA (NNPA) ratio was at 1.31% against 1.63% in Q3 and 1.48% in the corresponding YoY quarter.

Despite being a traditional private sector lender, Federal Bank has to its credit one of the most extensive and up-to-date technology deployments, especially in retail banking. This has continued to help the bank perform well on the deposits front, where it clocked a robust 13% rise. This is impressive as the 89 year old bank is not competing head-on with newer and smaller banks on the deposit rates front, but rather leveraging the trust factor, long-term relationships and the conveniences it can offer through better technology deployment.

Even with such overall good performance, the bank saw a 21% dip in net profit during the quarter. Federal bank reported a net profit of Rs. 301.23 crore for the fourth quarter compared to Rs. 381.51 crore in the corresponding year-ago period. This was mainly due to surging provisions.

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Provisions rose by more than three times to Rs. 567.50 crore, compared to Rs. 177.76 crore in the year-ago quarter. In the December quarter, the bank had set aside Rs. 160.86 crore in provisions.

Like in most banks, the rise in provisions was led by pandemic concerns and Federal Bank made a Covid specific provision of Rs. 93 crore.

Post the moratorium of loans announced by the government, 35% of Federal Bank’s loan book is now under moratorium. While this is slightly higher than some of its peer banks, it reflects the kind of long-term relationships the bank has with its customers, and which it will continue to pursue.

While the trend in banking business has been to beef up provisions at the drop of a hat, Federal Bank has so far steered clear of this, applying provisions judiciously. Due to this, the bank’s Provision Coverage Ratio (PCR) may seem lower at 53.39% , compared to larger and aggressive new generation banks, but then Federal Bank has never been in the business of extending risky loans for pushing growth.

This is a distinction the bank will continue to adhere to according to MD & CEO Shyam Srinivasan, who confirms that the bank will never resort to any outrageous lending in the post-Covid scenario too.

The bank is on a reasonably strong wicket on the capital front. Its Capital Adequacy Ratio (CAR) stands at 14.35% which is comfortable enough to avoid any capital raising this year. Federal Bank’s focus this year will be on preserving capital and growing its deposits franchise further.

The bank has some unique strengths on the deposits front. Federal Bank is a leader in the country on the inbound remittances business with 15% market share. This is a significant business as India itself is number one in inbound remittances from worldwide, thanks to its huge expatriate population, which still cares for extended families back home.

While the remittance business is facing headwinds due to the pandemic, lockdown, salary cuts and job losses worldwide, Federal Bank is continuing to bet big on this business, as its long experience has taught the bank that this business always rebounds after crises

like wars and economic setbacks.

With this insight in mind, during the lockdown itself, Federal Bank had tied up with US based world leader in remittances, MoneyGram, for crossborder direct-to-account transfers, thereby improving customer convenience. The appreciation of rupee vis-à-vis dollar and other major currencies also bodes well for this business.

On the loans front too, the bank has an ace up its sleeve. It is a leader in the gold loan business in the banking sector, unlike many of its peers who are only discovering or beefing up this business now. Federal Bank’s headquarters and significant footprint in Kerala is also helpful for this business, as Kerala has been a traditional

On the credit front too, the bank has an ace up its sleeve. It is a leader in the gold loan business in the banking sector, unlike many of its peers who are only discovering or beefing up this fully secured lending business now.

stronghold of the gold loan business.

Federal Bank expects strong growth in gold loans this year, and unlike most other loans, its full secured nature due to pledged gold at an adequate margin of safety ensures that it won’t contribute to NPAs in the future. The rising gold prices also ensures that this business can also grow due to higher loans to existing customers, apart from wider customer acquisition. And unlike in earlier days, gold loans have been maturing from just for personal needs to being for small business needs.

The bank is also open to extending credit to select corporates and MSMEs, after due diligence. It is now in the process of tailoring specific cross-sell programmes to existing customers who

have established track records. While it feels that the credit guarantee scheme is a good way to support MSME clients, it will also apply regular credit judgment before offering such credit.

In these tumultuous times, Federal Bank can also have leadership continuance if it so desires. Even with RBI's new proposal to limit tenure of bank CEOs, professional & non-promoter bank CEOs like Shyam Srinivasan, who has completed a decade, can still have longer tenures if needed. RBI move is to build a robust culture of sound governance and professional management.

Seasonal Magazine in conversation with Shyam Srinivasan, MD & CEO, of Federal Bank Ltd. Can we start by asking about your

bank's moratorium and where it stands now?

Roughly about 35%. That's what we had said when we finished our results. Yes, it is still at the same level. About 3435% of the book is in moratorium.

Do you think it is a wee bit more than peer banks maybe?

See the moratorium book heavily depends on what your overall portfolio is like. If you have, let's say, a very heavy gold loan business, then the moratorium - our gold loan moratorium is less than 3%. But the business banking is 79%.

So you see a spectrum. So I think 30% is more or less the industry average, it won't be very different. And second, in moratorium, those banks that have given SEASONAL MAGAZINE

opt-in, versus those who have given an opt-out, experience is different. For business banking, we get an opt out, which means everybody gets it. If you don't want you can opt out. So the moratorium will be higher. For some businesses, we give opt in where it is less than 18%. So it's sort of wide range.

35% looks probably standard and banks would all be in the 30s percentile. Some are 38%, but broadly that's what it is.

But the real picture will emerge only in September. After the moratorium period is over, that is, in September which is now the new 'March'. Because September is when you will do what you would have done in March. March is the month of moratorium. So you'd have to see how things are in September.

You have already mentioned about another dimension which is the gold loan business. You have been very bullish on gold loan business now, I remain very, very positive. It is doing well. And I think it will continue to do well for the foreseeable future. Both because there's a demand as gold prices are high. It's less cumbersome, it's easier for the bank and the customer. And I think slowly customers have understood that banks are good gold loan lenders now as for about four years earlier it was slow. I think it's coming back so we are quite happy with gold.

Can customers avail gold loans from you? Can they walk into the bank and become a customer?

Once they avail, they become customers. There is no limitation on that.

I mean certainly we will try to cross sell other products but pure gold is fine as long as the gold is bonafide and it's not stolen gold. We're happy to do.

Where would you peg the growth approximately this quarter and this year on the gold loan business growth?

Is it because there are not many other avenues apart from gold loans?

Last financial year, our YoY gold loan business grew 29%. I'm hoping it'll grow higher this year. As I said, it's a win win for both customer and us. We have innovated quite a bit on gold product, in the service and in the distribution. We have our digi-gold, which we had a few years ago. But we have revamped and launched it. So instead of keeping your gold in your own locker, keep it in the bank's locker.

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And you get an overdraft on it. So you only pay when you draw money, otherwise you don't pay. So it's a win win. We are seeing great success with the product.

What about on the personal loan front before COVID-19?

We were not very big on unsecured personal loans. We normally don't do new to bank. We do existing customers based on track record. For almost 18 months, we were doing it digitally. So if you had an account with us, based on your account behavior, we would offer a credit line which you can click on your phone and take the money. But now we are much more tighter on that. Because generally we don't do unsecured credit in a very big way. Our philosophy over many years has been to be more conservative, which is why our NPAs never cross 3%. Even when India's NPAs hovered around 10% mark, Federal Bank has never crossed 3%. Net NPAs never crossed 1.3% or 1.5% maximum. So we've been conservative and I'm happy to be conservative, which is the right thing for a bank.

How is the co-branding of credit cards going on now?

It's okay, but it's not a big part of our business. But in the course of this financial year, maybe by end of March next year, we will certainly have our own card launch. So, yes we are working on that.

What about Provision Coverage Ratio and where does the bank stand on that? Is it lower than other comparable peer banks?

Our coverage ratio including technically the "written-off" is 73%. Without technical, it is 54%. Last quarter we raised our coverage ratio by 800 basis points and we provided extra by 250 crores in Q4. You may have noticed, we provided access because we had some one time gains on investments in treasury and I put the entire money into provision. Otherwise our profits should have been another 200 crores higher.

We didn't want to do that. Compared to peer banks, 70% is quite comparable.

You must understand that provision cover is created to ensure that when, God forbid, there is a loss you have already provided so that it doesn't incrementally affect your book. Now each bank has a different product mix.

If you're a very high unsecured portfolio or your security levels are low, you need very high coverage. When you have a high security, you need a lower coverage. In Federal Bank, we've been doing this reporting for two years based on Indian accounting standards or the new accounting standard - IFRS. Our loss given default, which means when you have a loss or an NPA, the maximum loss on that account if it's an unsecured one, it is hundred percent.

Let's say you have a house of one crore and the loan is say 80 lakhs. Even the for-sale value of the security instead of one crore is 60 lakhs, you recover 60 and your loss is only 20 lakhs. So loss given default is only 20 lakhs. Our loss given default on the whole portfolio has never crossed 38%. When I have coverage ratio of 53%, I have much higher coverage than the losses I would ever incur. With all due respect, the media doesn't understand anything too much. They'll simply take one number and report. Provision cover is to make sure in the event of a loss you are covered right?When our provision coverage is 53 or 73%, depending on which number you pick, and the loss given default is 38%, you have excess coverage. I actually can release 15%.

This quarter, we took it from 46 to 53% because we expected that in the COVID world, losses can go up & your security value may come down. So the house with just one crore may suddenly become 80 lakhs or 70 lakhs. That is why I said provide more so it gives us the cushion. At 53% loss cover, we are okay.

There was also a specific COVIDrelated provision of 93 crores. Do you think it is sufficient as of now?

See, COVID provision has to be seen along with credit provision. Both are the same. Just that COVID provision is not in the coverage ratio but treated as a standard provision. When, God forbid, an account becomes NPA, then you will take the COVID provision and put it in standard credit provision. The COVID provison is only an excess extraprovision created as a buffer. The requirement is only 31 crores. RBI mandate was 31% and we have provided three times this mandate. So, it is not an issue.

What has been the impact on remittance business?

Remittances are doing extremely well.

Whenever Middle East has any challenges, for instance if people are relocating, they will bring the money in.

And we are the best bank for that.

Secondly, rupee is at 76. Again, people will send money. So at this point in time remittance is in very good shape. We'll see how the next six months go. We don't know what the situation will be in September or October. How the Middle East is going to be? How, you know, whether job losses are going to happen at big time? Now the good news is oil has become slightly stronger. So they may not be having as many job losses as it was visualized. I've seen that from the time of Kuwait war, we've looked at this whole remittance stuff and that this would drastically affect Kerala.

In the last 10 years, I've seen it very closely. There will be some trouble. It was said that around six lakh people will come back but I think three lakh have come back or will come back. Suddenly around two lakh will go back. Maybe not go to the Middle East but places like UK or anywhere people will find livelihoods. But one lakh people coming back is something we can live with. We need to worry about what damage

COVID would cause in the next one year. If we can deal with that damage, everything else can be solved. That is the unknown or the wild card.

cross selling opportunities & how to tap the cross selling opportunities.

Can you tell us some specific examples?

This would also be translating into deposit growth?

The whole personal loan book, which is almost 2000 crores, we did it only by digital origination on existing customers.

So say you are a customer of Federal Bank - let us say a liability customer for two years. Based on your average balance, based on your usage, we do a lot of data mining. And we make a preapproved offer to you and say here is a credit limit of 50,000 available. And you can click and take the money. Now we've launched this with Amazon and a few others. On EMI product, if you are a Federal Bank customer and you're shopping on Amazon, you put in your card number, it runs a back end engine and it immediately computes by saying whether we can give you an interest free EMI for 12 months. So if you buy 5000 rupees or 20,000 rupees on Amazon, instantly you can make it an EMI transaction. So you pay zero interest over 12 months. And this is all done by back-end analytics and therefore the cross sell is based on existing customer behavior with the bank. We are data

Yeah, it will. In fact, we're sitting on excess liquidity. We are growing higher than the market but there's no market growth because demand has to come here. We'll take some time - another three, four or five months. See, everything has come back to about 75% of the original level if you look at all across the country. A number of RTGS transactions, NEFT transaction, Fast Track transactions, whatever you look, everything is between 65 to 75%. By September-October, it may come to 85%. Maybe by end of the year, it will come to 95-100%. But you are expecting 120% because you want it to grow. So, I think if by 2021, we'll be lucky if business volumes improve. See, one quarter is totally gone. First quarter was virtually no growth for anybody.

Next quarter will be like 2-3% growth.

So, the full year if you grow at 8-10%, you've done brilliantly.

You have been telling about some

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mining and continuously making cross sell offers. Uusually if you're a card customer, you'll have a liability relationship, we give you an insurer and we'll give you the usual stuff. Basically, everything that is tried to increase penetration per customer.

You are now mulling a new fundraise of Rs. 12000 crore for equity component. Can you take us through the specifics of that?

In the forthcoming AGM, we're looking to seek shareholder approval for getting a resolution passed. Once we have that, in the course of the next 12 months, we can raise equity, if we need. Right now, we're not looking at any capital raise. It's an enabling resolution. But since the AGM is coming in July 16, we will hopefully get the resolution approved by shareholders.

And once that resolution is there, we'll see how the market goes and where the capital requirement is. In our mind, at least till March 2021, we don't need new money.

But the next AGM is usually next time this period ie; June-July. So we are trying to get an approval in place so that whenever the need arises, or the next month we will raise money. Normally in my last 10 years, we raised money only once. We are not a bank that goes to the market every three months or three years. We go once in like five-seven years depending on when we need. The last time we raised money was in 2017 July at about 116 rupees. Today the stock is on 56-57 rupees. So suddenly the stock has had its own share of waiting. Hopefully we will come back to at least 100 bucks in the next one year, which is when we should raise money. Even last year we had approval of 8000 crores and we took 300 crores from the market. This was raised about 12 months back.

Any plans for acquiring any microfinance companies or any diversification?

Right now nothing on the horizon, but we are open to making acquisitions if something good comes up. But at this juncture, we cannot rush to anything because we have to see how the credit portfolios or everybody behaves. So, we will be watchful at least three-four months to understand the credit portfolio. So, we have nothing on the cards but continuing to do our basics right. We will wait till September, see how the market shapes up & how the moratorium customers are behaving. Only then we will think about next steps. Because this is very unpredictable environment. So we're not doing anything at this juncture.

What is the status on the startup fund you SEASONAL MAGAZINE

had mooted?

I would say it has been very modest. The startup environment is facing a lot of changes and challenges. Either you make it very big with private equity support or you are not able to scale up and you're just folding up. The whole environment for startups is different from what it was three or four years back. So we are having fun but we have no major action going on.

Along with two other funds, we have put in the money but that's not a core expertise of our bank. So we will let them do it but we are feeding into that.

You've been seeing how the economy has been shaping up over the last few quarters. Any suggestions or improvements required?

The main thing is that demand has to come back, right? There's a lot of liquidity. So that's not a problem. Banks have money and banks are willing to lend provided there is a demand. For the demand side, banks cannot do much. So it has to be a bunch of things like the government intervention, the private sector getting excited by the opportunity and beginning to invest. And to some extent, like you said, there is a fear also that people are nervous about what is going to happen in terms of health. So economic activity is not at full blast. But having said that, like I said, 70-75% has come back. Some of the bigger cities like Mumbai, Chennai are all still in very precaurious states. Meanwhile, Tamil Nadu has gone into very severe lockdown. While Mumbai & Delhi have opened up, unfortunately, they are facing extreme health issues and challenges today.

Virtually, everybody we know has somebody who is faced with some challenge in Mumbai. To that extent, movement is still modest as people are quite watchful. So the full blast economic activity is at least six months away or till when one of these vaccines or medicines work. In that context, demand stimulus is the most important thing. But even if you give a lot of money, demand comes when people are feeling better. And you will not work to buy that extra shirt, pants, TV, fridge and car if you have little nervousness. Everybody's just buying essentials food and medicine.

This is a psychological challenge more than financial challenge. So emotionally we have to be charged up. And that takes time. What will inspire people to spend more? Some confidence giving is required. The only good news in all this is if the stock market starts doing better. Psychologically, people will feel like okay thinking that the world

has come back. For somebody holding a Reliance share, for him/her life is fine, right?

In fact, it's doubled. The stock value has gone up twice. Unfortunately only when western India ie; Mumbai & Gujarat gets full blast, India will fire on all cylinders.

Unfortunately that part of country still needs some more actual health related intervention. Demand generation happens in Maharashtra & Gujarat in a very big way.

Having said that, I think rural India is doing better, farming and agri income will be better. So it won't be all bad news, but it will certainly not be what it should have been. You know, if we were expecting India to be, say, from 2.8 trillion to 3.2 trillion, it won't happen. It may become 2.5 trillion and then you have to work one more year because everything will get reset only by 18 months. And it goes back and then climbs back up. That's an unfortunate outcome of COVID-19 and I don't think anybody can escape it. So we just have to wear a wet towel around the stomach and sit quietly for a while (laughs).

What all are your new strategies for steering the bank in this tumultuous time?

Last year, we focused on two strategies, 'Presence to Prominence' in chosen geographies and 'Prominence to Dominance' in our home market. We have seen consistent gains and recorded a healthy increase in market share across key geographies and segments, and our visibility among the top quartile banks, both in terms of business and governance has amplified in the last financial year. While these twin strategies will continue, we have added a new one this year, to be the ‘First Choice’ bank. Our bank has always been respected as a thought leader in customercentric approach backed by relevant innovation. While we continue to be deeply rooted in our fundamentals, we realize it is time to dream bigger. The last decade saw us emerge from a regional player to a bank of relevance across India, and now we are determined to build ourselves to a bank that is First Choice. It is not just being the best in customer service and having the right set of products and processes; but being able to distinguish ourselves in everything that we are and do, be it products, processes, design, people and value creation. We are mindful that being the First Choice is a tall task. This is a pursuit of excellence and there would be no finish line until we become the most admired bank, digitally enabled and serving the micro, small and medium establishments in the country.