Passline Business Magazine May 2011 by Passline Business Magazine

From the Editor Time for Congress to learn lessons T

he Assembly poll results in Kerala have given the Congress-led United Democratic Front (UDF) only a wafer-thin margin over the Left Democratic Front (LDF), corroborating the predictions made in some exit poll surveys. Many had thought that the UDF would win hands down following its creditable performance in the panchayat and parliamentary elections held some time ago. What were the factors which directly influenced the poll this time and gave the results a photo finish? Certainly the anti-incumbency factor has been given the go-by and the ‘what’s what and who’s who’ factor has come to the fore. If one thing that stands out in the elections, it is the Achuthanandan factor. He certainly will go down in Kerala’s history as the man who could influence the whole process of an election to the extent that the LDF came almost near capturing power again. His tirade against corruption, sleaze and malpractices elevated him to the status of a single person becoming the party and setting the agenda for the elections. The party in fact became a one-man affair and almost ceased to be a cadre party. His personal charisma turned the election campaign the liveliest-ever in the state’s history. Only his crusade against scams began a bit late, it seems. Otherwise the LDF would have won big in the civic body elections and even the parliamentary polls. Again, had the Achuthanandan Government taken steps to address some of the burning problems like poor growth of the economy and unemployment, it would have come back to power. The rampant corruption under the UPA rule at the centre, headed by the Congress and its poor image certainly have had their bearing on the state polls, helping reduce the majority of the UDF in general and that of the Congress in particular (The Congress has come out with just 38 seats against the CPI (M)’s 45). The results have also proved that exchange of notes (currency) has had little impact on buying of votes. Likewise political gimmicks and announcement of colossal projects and unworkable schemes won’t give any party a cakewalk in elections. Now what next? It is time that the Congress and its allies remembered that there is much to be done to take the state forward. We have a sagging economy, an army of educated unemployed youth, a plethora of unfinished projects and a host of problems that cry for immediate solutions. The new Government that will be in place in a few days’ time must address these problems forthwith. There is very little time to lose as Kerala has already lagged behind other states in matters of development and growth. Differences, if any, among coalition partners should not stand in the way of formation of the ministry but also governance. The UDF can forget this only at its peril.

Varghese Paul Editor & Publisher : VARGHESE

PAUL

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COVER STORY

Kerala farmers

Readers' views

By Subin Mananthavady

ise in prices of materials is a mark of success for a certain class of people, ie producers or growers, who should in the normal course welcome it. In most countries, including India, commodity prices are currently booming with the prices of some reaching close to their highest for years, some all-time highs.

Lured by Maldives Sir, I am an NRK and while I was at the Karipur airport happened to see your magazine and read the article ‘Maldivians can’t resist the lure of Kerala’ (March 31-April 30). I was impressed with it and now felt enamoured of Maldives. I would like to possess some land in that country to construct a house and live there. But I don’t have any idea about the land price and the construction norms there as also the migration rules.

The flip side is that not many farmers are going to benefit from the surge for various reasons. Even if they do, they are only marginal gainers. So are the benefits of increased prices sustainable?

Will you please enlighten me through your columns on these details so that I can have my wish accomplished? I am also pleased to subscribe to your magazine from the forthcoming issue. Ramankutty C L, Kozhikode

Increases in prices need not be a barometer of the amount of profits that farmers make from them. If some other factors are considered, their profits would be smaller. Increased prices of many commodities have resulted mainly from increased demands for these products.

Blot on Kochi Sir, It is interesting to note that Kochi, the commercial hub of Kerala, has become the actors’ paradise (March-April). But it is a blot on Kochi that it has no film city just as other states like Maharashtra, Andhra Pradesh or Tamil Nadu have, as mentioned in the report.

Production of several commodities has been remaining static in many parts of the world, including India. Take the case of rubber, for example. Production in Kerala went up—to 7,83,000 tonnes in 2009 from 6,91,000 tonnes in 2005 and 5,80,000 tonnes in 2000. The price has now hit a record high of Rs 242 a kg, from Rs 114 in 2009, making growers reap some of the benefits as they had been going through several price cycles over a period of time. But there has of late been large-scale diversion of land for construction purposes and low productivity. There are also replanting problems, shortage of labour and reluctance of youngsters to enter cultivation. All these are nullifying the effects of most of the gains that growers are supposed to derive from the record prices their products fetch. “Actually the price increase is due to the rising demand for rubber in the automotive sector and in international markets like China. International markets are seeing sharp rises in the price. Only this trend is getting reflected in the Indian market. Production has not picked up in major developed countries because of vagaries of nature and for some other reasons. The only silver lining is that in Vietnam production has picked up substantially. Though there have been increases in production in Kerala, nationally it has remained almost static around 8,30,000 tonnes in the past five years. There may be some marginal increase during 2010-11. Though new plantations have come up during the past decade, replanting is lagging behind,” says Mr N Radhakrishnan, Adviser, Cochin Rubber Merchants Association, who was also the association’s President for 13 years.

The Government can initiate steps to spot an area in Kochi for a film city and provide the infrastructure for the film industry. I think the next Government will act on this. K Soman, Oakfield, London

‘Dummy politician’ Sir, ‘Voters need a new government, not a new front’ is an apt caption which gives the voters food for thought when they cast their valuable votes. There is all-round enthusiasm among Kerala voters to vote for either front alternatively. “If it was the Left last time, let it be the Right this time,’ is what they seem to think without going into the pros and cons of the good or bad of the incumbent party. It is high time that every citizen analysed the wrongs and rights of the ruling party when they exercise their franchise for the next government. This means that every citizen must be a ‘dummy politician’ just like a dummy candidate capable of realizing the political gimmick to dupe the voters. Alex Nayankara, Vattiyurkavu, Thiruvananthapuram

It is idiotic Sir, This refers to the letters ‘Rally against corruption’ by Mr M N Raju and ‘Thought-provoking’ by Mr Ajith Kumar in the issue of February 28-March 31, 2001. I would like to know the result of the rally against corruption held on November 30, 2010. It is idiotic to suggest that the huge losses caused to the country through mammoth scams should `open the eyes of ministers and bureaucrats’ because ministers and bureaucrats are very much part of the scams being committed in this unfortunate country. While Sardar Patel dethroned kings and princes after Independence, a new set of kings and princes are being elected in the form of MPs and MLAs. A huge tamasha is being enacted in this country in the name of democracy. I think even God is helplessly watching what is going on in this country.

Mr Radhakrishnan says that while the consumption was just 6,30,000 tonnes during 2000-01, it had increased to 9,30,000 tonnes by the end of 2009-10, the production remaining at the same level. This has resulted in a shortage of one lakh tonnes during the decade.

In the United Nations somebody should suggest that the name of this country should be changed to ‘Scam Country’. P J George, Chennai

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“Price discovery mechanism is essential to goods which are in excess supply within a country. But in India, rubber is in

benefit little from price surge short supply. Therefore there is no need for futures trading for price discovery mechanism. Recently the Forward Markets Commission had banned futures trading for a specified period. During that period prices had gone up,” says Mr Radhakrishnan.

There has been large-scale diversion of land for construction

Mr Radhakrishnan says the increase in demand for tyres from auto makers in India and outside is another reason for the rising rubber price as natural rubber is the main raw material for tyre production. And demand from the automotive sector is increasing year after year, the projected increase being 5%-6% annually.

enter cultivation. All these are nullifying the effects of most of

purposes and low productivity. Besides, there are replanting problems, shortage of labour and reluctance of youngsters to the gains that growers are supposed to derive from the record prices their products fetch.

“There is another cause for concern today which growers are not able to reckon with and which is going to affect the sector: the grave shortage of labourers. This has affected tapping in many places. A large number of both small and medium plantations are now engaging workers from outside Kerala for tapping. They have little or no experience of the work. Tapping needs skill that can be attained only through years of experience. Wrong ways of tapping affect production of latex and the health of the trees,” says Mr Radhakrishnan.

for supplies to leading tyre producers. The board’s data on stock seems therefore to be inflated,” Mr Radhakrishnan says.The steep rise in the price of raw cashew is attributed to the civil unrest in Ivory Coast, a major producer of the commodity. “At Rs 81-Rs 83 a kg, from Rs 40-Rs 45, it is an all-time high,” says Mr V Shaji, Commercial Manager, Kerala State Cashew Development Corporation Ltd. Processed cashewnut has seen a sharp increase from Rs 265 a kg to Rs 450. “Ivory Coast’s civil unrest has worsened the availability of raw What is the remedy for the N Radhakrishnan cashew in the Kerala market situation? Says Mr Radhakrishnan: “More because the State’s processing industry and more youngsters should come into sources most of its requirements from the field. The Rubber Board is taking that country (about 64% of the export of some measures in this regard. As the raw cashew from Ivory Coast is to India). Government subsidies are very low, re- Supply of raw cashewnuts from within planting is not taking place. The Govern- our country has been low throughout the ment should raise the subsidies imme- year. The industry has been facing probdiately.” lems on account of scarcity of the raw “Though the rising price is encour- material. If supply from Ivory Coast fails, aging rubber producers to increase pro- the local industry will find duction, supply cannot be raised in a it difficult to run many short time as new plantations take seven of its units,” years to mature—another factor for the rise in price. In Kerala the area under rubber cultivation is coming down. Plantations are being filled and houses built on them. We can’t plant rubber by deforesting because the Government is very strict. So increasing productivity is the only solution. But there is little possibility of this happening.” “Moreover increasing cultivation in Kerala is difficult because of the land shortage. The scope is only for replanting. For starting replanting, saplings will be a problem. Presently saplings are distributed by private agencies as the Rubber Board has no facilities for this. So quality cannot be ensured. Because of this, productivity will naturally go down. Soil is also not very favourable because of excess use of fertilizers. The Rubber Board should therefore make saplings suiting the climate and soil available. The board has of course started some nurseries for this. According to the board, there was a stock of three lakh tonnes as of February last, so that we won’t face a deficit. Even then the market is facing a serious shortage even at very high prices. Traders are trying hard to get big quantities PASSLINE

says Mr Shaji. “Large-scale replantation of cashew is not taking place here. In fact many farmers prefer rubber to cashew because of the high price the former fetches. As a result Kerala’s cashew production has been declining gradually”, says Mr Venkatesh Hubbali, Director at the Directorate of Cashew and Cocoa Development, Kochi. “It is important to increase raw production through an expansion of cashew cultivation”, he says.

ported 1,14,345 tonnes and earned foreign exchange worth Rs 2,289.02 crore.

Pepper, known as the ‘black gold’, one of Kerala’s major spices, has shot up to Rs 268 a kg, the second highest price it has ever fetched in Kerala. Ungarbled pepper in the Kochi market has been quoted at Rs 26,800 and the garbled variety at Rs 27,600 a quintal. In 2008 garbled commanded Rs 14,300, in 2009 Rs 12,900 and in 2010 Rs 15,900. Ungarbled which was Rs13,700 in 2008, shot up to Rs There has also been a 12,400 in 2009 and Rs15,400 in marginal fall in cashew ker2010. Here also the steep rice in nel exports from the country. A C Varkey price is attributed to a decline in Cashew Export Promotion Council of India’s statistics reveal that production. According to experts, producin 2008-2009, the country exported tion fell in major producing countries like 1,09,522 tonnes and earned foreign ex- Brazil, Vietnam and Indonesia. In India, change valued at Rs 2,988.40 crore but production this year is estimated at during 2009-2010, the exports dropped 45,000 tonnes, about 3,000 tonnes less to 1,08,120 tonnes and the foreign ex- than expected earlier. Reports say that change earnings dipped to Rs 2,905.82 untimely rain and diseases have caused crore. In 2007-2008, the country had ex- the decline. During the April 2010-February 2011 period, the country’s exports

April 30 - May 31, 2011

Production fall, land diversion hit them hard also fell 10% to16,600 tonnes. In Kerala, where the output was poor, the harvesting season is coming to an end. Pepper areas in the High Ranges are said to be waiting for conversion as they are considered highly potential areas for tourism and commercial projects. Besides causing the decline in production, this trend has also caused land prices to zoom. Low productivity and diseases like quick-wilt are other problems major growing areas—Wayanad, Idukki, Kollam, Kannur and Pathanamthitta—face. Wayanad once used to contribute a lion’s share of the State’s total pepper production, accounting for half of India’s total output. That was in the 1980s when production used to touch 40,000 tonnes. But the situation changed dramatically in the 1990s, with the dreaded root-wilt destroying the district’s pepper vines. Rootwilt, and bee wasp attacks on the poles on which pepper vines creep, have literally destroyed 70% of the crop, it is stated. The production now has come down to just 3,000 tonnes! The massive destruction of the crop had led to a series of farmer suicides in 2004 and 2005. According to Spices Board statistics, the production,

history of the commodity. In 2009-2010, the production was just 3,361 tonnes and this year it is 3,200 tonnes. “It is a grave situation. Wayanad’s famous peppers may soon become history,” says Mr A C Varkey, Chairman, Farmers Relief Forum. “We have harvested up to two tonnes of pepper per acre. Now, the crop from the same area is less than 100 kg. Root-wilt and bee wasp attacks and also the change in climate have affected the crop. The research institutions have failed to find a remedy for the diseases. The Spices Board has some projects underway, but it is insufficient to address the issue. The farmers here are a dejected lot at a time when pepper is registering the highest price of the decade. Their vines have vanished with the result that they are losing interest in cultivation.Post Comments which has been registering steady falls during the last11 years, was 27,907 tonnes in 1999-2000. On April 7, 2000, the price had hit Rs 275 a kg, the highest in the

Farmers who had focused on pepper for decades have switched to rubber. Some are planning to go in for ginger farming in Coorg, Karnataka,” he says.

When price rise hurts the consumer C

oconut is one commodity which fetches some returns to the grower when its price spurts. So its farmers have reason to rejoice today—the prices of coconut and its oil have doubled in the last one year. But here the hardest-hit is the consumer. There is no home in Kerala which does not use coconut and its oil almost every day. The situation today is that these have ceased to become affordable to the people, a huge percentage of them consumers, not producers.

productivity by cutting down the age-old trees and by planting new saplings”, says Mr Alapatt.

According to Central Coconut Development Board statistics, Kerala stands far behind in productivity. When 6,889 nuts are being produced in a one-hectare field in Kerala, in Pondichery it is 12,091, Tamil Nadu 12,959 and Andhra Pradesh 11,047. In 200607, Kerala had about 8,70,900 hectares of land under coconut cultivation. It accounts for about 6,054 million nuts yearly. Karnataka has 4,01,000 hectares and produces 1,625 mil“Kerala, which has derived its name from lion nuts annually, while Tamil Nadu has ‘kera’, or coconut, is facing a massive nut crunch 3,74,000 hectares and 5,429 million nuts. Goa that has caused the price of coconut oil, the southern states’ favourite cooking medium, to Joseph Alapatt has 25,500 hectares and accounts for 126 million nuts. rocket, touching a record Rs 110 a kg. Now coconut is being sold by weight—Rs 15-Rs 20 a kg for With the rubber price rising, Kerala has also been unbroken ones with their water. The prevailing high inwitnessing the phenomenon of coconut farms giving ternational rates for edible oils and also the use of coway to rubber. From 9,10,000 hectares under coconut conut oil along with palm oil in the manufacture of biocultivation in Kerala the area fell to 780,000 hectares in diesel are some of the reasons why coconut prices are 2008-09. booming,” says Mr Joseph Alapatt, a former Coconut “The biggest problem for coconut farmers here is Development Board official and himself a coconut farmer. the shortage of climbers. Though a skilled climber gets The reasons hold particularly true because prices up to Rs 1,000 a day, his son never becomes a climber. have increased despite the increase in coconut proThey are running after new pastures. So a fast and easy duction last year. Of course, there is a lean season in climbing device must be designed. Present climbing Kerala (January-April). But prices had started going up devices are a great failure”, says Mr Alapatt. even much before the lean season, and they have been spiralling in other states too. “Another reason for the price rise is the high demand for tender coconuts which are being removed from the trees by farmers as the demand for them has increased. The remaining ones are being used for conversion into copra. “This has caused a shortfall in mature coconuts in the market. The sale of tender coconuts has skyrocketed and so have their prices. A tender coconut, which was earlier available at Rs 15, is being sold now at Rs 20-Rs 25”, adds Mr Alapatt. “Production is declining. Overage of trees and pest attacks are the main reasons for this. The spread of root-wilt disease that practically destroys the palm is severe in the southern districts of the state. What is required is to increase

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But amidst the scenario of rising prices, the price of one crop, cardamom, has been hovering around Rs 950 a kg for some time. Most cardamom buyers, sellers and planters are in Kerala, especially in Idukki district, which accounts for 70% of production. Here again, low profits and poor production are worrying the farmers. Two years ago, the precious spice used to fetch around Rs 1,700 a kg. “The cost of agricultural inputs is going up, and increasing labour costs, erratic climatic conditions and depleting water resources necessitate heavy investments in irrigation etc, pushing up cost of production. Changes in climatic factors, decline in price and shifting to other crops are the major reasons for the decline in the area,” says a planter in Idukki. Of course the record commodity prices have triggered some lifestyle changes among farmers in Kerala, the largest rubber, cardamom and pepper producer in the country. Real estate deals and other business activities are witnessing an uptrend. Increases in car sales, electronic gadgets and land, property and apartment purchases are also being reported. Construction of houses has picked up in central Kerala, which grows substantial quantities of cash crops. Growers also invest a good portion of their increased incomes in other businesses. But the question is: How long will the euphoria last? With areas under crops depleting fast and production and productivity failing to keep pace with increasing demands it is only a matter of time when Kerala will start losing valuable amounts of foreign exchange too from exports. It is also feared that the number of youngsters entering the labour force and also cultivation will fall about 30% over the next few years. Today even a farmer’s son doesn’t evince interest in entering his father’s profession. This points to the possibility of further decline in production and to the need for some steps to increase yields, if not areas under cultivation. The earlier more youngsters are brought into the field the better for all concerned.

Ads growth: Why is Kerala lagging? Passline News Service

‘I

mies, advertising and promotion spending comes to 2% or 3% of the GDP but in India it is a mere 0.4% and in China nearly 1%. It is evident from these that India is underbranded and underadvertised. But experts say that this scenario is going to change because of the growth of Indian companies both in India and abroad and also because advertising has a strong tradition in the country.

ndia Shining’ was a political slogan referring to the overall feeling of economic optimism in India. The slogan was popularized by the then ruling Bharatiya Janata Party for the 2004 general elections by spending $20 million of Will Kerala also get a share of Government funds. Advertising this growth? How can Kerala brands firm Grey Worldwide won the cambe active in the advertising market? paign account and people in India and “Only very few Kerala brands have abroad witnessed repeated telecasts Sreenath national presence today, the rest of of it on television along with fullthem being popular only in and around the State. spread ads in the dailies. A majority of them are regional players. ConsiderDespite the BJP’s mammoth splurge, ing the cost of advertising during events like the the party lost power. It doesn’t however Commonwealth Games, World Cup or IPL, even mean that the ‘India Shining‘ slogan was companies with national presence are reluctant merely a political gimmick. There is no doubt to opt for a slot in the electronic or that India is shining compared with many other print media because the cost will be economies of the world in every aspect of even higher than their total turnover. growth. Featuring the slogan in advertiseStill it is interesting that one or two ments was one of the biggest business opbrands are very active in the ongoing portunities Indian media bagged in those IPL matches,” says Mr Anil, CEO of days. In 2011 their kitty swelled manifold Exodus Communications. by crores of rupees, thanks to the ComMr Anil says that being a conmonwealth Games, mesmerizing victoAnil sumer market, Kerala offers tremenries of men in blue at the World Cup dous scope for advertising and most of our mecricket match and also the ongoing dia, both electronic and print, are bombarded with IPL matches. advertisements now. Kerala’s advertising market It is pertinent to analyze how Inis to the tune of Rs 1,000 crore, which will double dian brand building and advertising by 2020. The tendency among advertisers today industry are faring compared with the is that instead of giving full-page ads in the print world economies and also Kerala’s media or buying slots in the electronic media, share in the national figures. they indulge in below-the-line or According to a World Bankground-level activities which are IMF survey, the global economy comparatively cost-effective. These is growing at the rate of 4.5%. It is include paintings in malls and suobvious that without spending on brand permarkets, road shows, electronic building no product can compete in the display boards and fixing of boards market. After the Indian team’s glorious during sporting events. “Clients think World Cup victory our cricket icons have that such investments will fetch maxiCyriac upped their endorsement fee. Some of our mum mileage for their brands with senior players including Sachin Tendulkar low budgets,” says Mr Anil. It is clear from this have started charging Rs 100 crore-plus observation that Kerala’s advertising market is as their endorsement fee. growing but high costs are marring its growth. A company having a smart media planner can make It is appropriate in this context to its brands more visible in economical ways. consider how far our brand and advertising market has matured in comMr Sreenath, CEO of Hammer Advertisers, enparison with other dorses this view. According to him, everybody economies. In wants a national or Kerala m a t u r e player though their produceconotion is not at all enough to

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even cater to their own town or city. Instead of giving regional promotion these clients will opt for the national media to promote their products by spending huge amounts which is a waste. There is no doubt that a smart media planning is inevitable in every business house to promote its products feasibly and viably. Consolidation or convergence of the media taking the advantage of the fastgrowing electronic and communication scenario is a right step towards cost-effective promotions and advertisements especially M-commerce, Facebook, Orkut, Twitter and various other social networks, says Mr Sreenath. “In the print media the beholder often skips the advertisements even without glancing at them. But online the chances of missing them are rare”, says Mr T V Cyriac, General Manager, Jelitta Publicity. According to him, in the growing advertising market cost has an important role to play in keeping the tempo of growth. Hi-tech advertisements are not only cost-effective, they also save energy and time and, most important, help avoid wastage. It is amusing to know that there are 200 ad agencies in Kerala and there are a few multinational companies also. When recession was acute in the West they migrated to India and China in search of greener pastures. The mind-boggling number of advertising agencies itself reveals the potential of Kerala with the affluent lifestyles of its people. It is sure that Kerala, known for its purchasing capacity and its status as a big consumer State, is sure to become a reasonably good contributor to the national growth in the advertising industry.

PHILANTHROPY

By A Special Correspondent

T Studies have found that the number of customers who prefer to use the products or services of socially responsive companies is increasing and that individuals prefer to work in such companies. It can therefore be concluded that focus on both social and economic performances stands a better chance to develop sustainable competitive advantages.

he world of philanthropy got a huge financial boost on August 4, 2010, when more than 30 billionaires pledged to give away half of their fortunes to charitable causes, signing up to a campaign launched by billionaires Warren Buffett and Bill Gates, founders of Berkshire Hathaway and Microsoft, respectively. The billionaires included New York Mayor Michel Bloomberg, hotel heir Barron Hilton, CNN media mogul Ted Turner, Star Wars Director George Lucas, Oracle software tycoon Larry Ellison, banker David Rockefeller, oilman T Boone Pickens, media entrepreneur Barry Diller and his fashion designer wife Diane von Furstenberg, Carlyle private equity group co-founder David Rubenstein, financier Julian Robertson and former Citigroup boss Sandy Weill.

They were lending their names to the ‘Giving Pledge’, an initiative founded in July 2010 to encourage America’s richest families to commit money to ‘society’s most pressing problems.’ The pledge is not a legally binding contract but a ‘moral commitment’. Buffett, the legendary Nebraska-based financier known as the ‘sage of Omaha’, said that many of those involved were committing sums far greater than the 50% minimum. Mr Buffet himself is handing the vast bulk of his $50billion fortune to the Bill and Melinda Gates Foundation which is largely oriented towards tackling disease in developing countries. The pledge does not define any specific causes that the billionaires will target with their fortunes, and it does not resolve all the individuals pooling their money. Instead, it will be left up to each individual to determine which endeavours they wish to fund. Hollywood director George Lucas said his chosen cause would be education. Buffett, who is also CEO of Berkshire Hathaway, was in India recently as part of his travelling the world to promote a culture of giving, to meet leading CEOs, technocrats, venture capitalists and others. They included some 25 businesspeople like Tata Group’s Noel Tata, Piramal Group Chairman Ajay Piramal, GMR Group Chairman PASSLINE

April 30 - May 31, 2011

G M Rao, Godrej Group CMD Adi Godrej, Britannia Industries MD Vinita Bali, Monnet Ispat Energy Vice-Chairman and MD Sandeep Jajodia, HSBC India Country Head Naina Lal Kidwai, HDFC MD Renu Karnad and Bajaj Auto Chairman Rahul Bajaj. Buffett’s plan was to persuade billionaires to open their purses for donation to help those who need it. Buffett told the media in Bangalore, one of the two cities he visited, the other being Delhi, that charity is one act of humanity and India has “very humane people and very rich people.” “I do think that when people join the Giving Pledge, their act has some influence on others.” Buffett used the opportunity to join his friend Bill Gates to ask wealthy Indians to pledge money for the Giving Pledge. The Giving Pledge trust has, besides Bill Gates and his wife, Buffett as a trustee. The trust has a war chest of $30 billion. As a charity, it gives away 5% of its funds, ie $1.5 billion, annually. Buffett has decided to donate almost 90% of his $50 billion fortune to the foundation. Worldwide the foundation has tried to boost farm production. However, concerns have been expressed by some people about whether the foundation is pushing genetically modified (GM) crops and about the long-term effects of agricultural quick fixes. The foundation’s investments in Monsanto, one of the world’s largest farm research companies, have only made people suspicious of its motives. It is said to have invested $23.1 million in Monsanto. Some civil society organizations have said that this is a vindication of its suspicion that the foundation has an unstated agenda of pushing its crops into Africa. This suspicion has arisen also because the foundation has committed $264.5 million—a whopping sum—for the Alliance for a Green Revolution in Africa (AGRA). Moreover, about 8o% of the foundation’s allocation in Kenya has gone into biotechnology research. It is also reported that in 2008 about 30% of its agricultural development funds were spent on developing and promoting GM seeds. The foundation’s avowed goal is doing good to society with the donated monies. But whether they reach those for whom they

9 are intended is something that worries social scientists and philanthropists themselves. Recently, however, the foundation has gone back a little saying it is choosing the best from organics. What has also faced criticism from civil groups is the foundation’s insistence that its grants and investments should be looked at separately. But what civil society leaders are asking is how the foundation can be a ‘passive investor’ in such companies as Monsanto when it is engaged in philanthropic work. There are of course some good results from the foundation’s projects following the fine work

stitute of India to develop and supply vaccines for the developing world. It has also major partnership projects with the Department of Biotechnology and may take part in the open drug recovery programme initiated by the Department of Science and Technology. Whatever the progress made by the CSR initiative, studies have found that the number of customers who prefer to use the products or services of socially responsive companies is increasing and that individuals prefer to work in such companies. It can therefore be concluded that focus on both social and economic per-

being done for society and the community. But certain acts of the foundation definitely cloud its purposes, some say. In spite of all these, nothing detracts from the splendid humanitarian services the foundation is rendering worldwide. Meanwhile, the foundation has said that it will expand the scope of its philanthropic activities in India. Bill Gates, who is its Co-Chair, recently told the media in Delhi recently that the engagement would include the entire gamut of drug research and delivery through partnerships with research organizations and domestic pharmaceutical companies. Gates said the foundation would be extended beyond prevention and treatment of neglected diseases to nutrition, mother and child health and agriculture. “We intend to do more scientific partnerships. India will be a source of basic drug research and

formances stands a better chance to develop sustainable competitive advantages. It is in this context that the proposal, both from Government and other sources, that companies with a turnover of Rs 1,000 crore or a net profit of Rs 5 crore or more should allocate 2% of their net profit for CSR has to be welcomed. Most companies and industry chambers are

the important role that companies have to play, besides making profits, in the changing world. It makes sense—humanitarian and financial— to spend part of the money they make on charity because it helps them in the long run. Companies that forget this are not only not helping themselves but are also not helping the community at large.

The CSR concept is more than two decades old

low-cost production of vaccines and drugs,” he said. oday there are The foundation has enorganizations set up by tered into a longcorporate entities which work term partnership with homeless people to reclaim with Punethem from the streets. There are coabased Selitions of companies which commit milrum Inlions of dollars to use business methods to improve the quality of education and to create jobs in different sectors. There are also companies that help start or revive small-scale projects which enable people to find work or to be back to work. Some undertake relief work after natural and other disasters hit countries or people.

Business, once driven solely by financial performance, is increasingly focusing on new topics—environmental protection, educational training, action on social exclusion, help for the underprivileged and a range of other community-focused activities which, it hopes, will underpin its effort to function on a wider perspective in the new world order. Private enterprise, whether by choice or chance, is playing an increasingly pivotal role in determining economic, social and environmental progress around the world. This philanthropic activity or, as many put it, ‘corporate social responsibility’ (CSR), is hardly a new concept. Much before Warren Buffett and Bill Gates had thought of it, the London-based Prince of Wales Business Leaders Forum (BLF), which works with business in scores of countries to promote good practice, had sown the seeds of it—in 1990, to be precise. It grew out of Business in the Community, a coalition of 400 companies in the UK committed to economic and social regeneration, which dates back to 1982. What sets the

however opposing the move and argue that CSR should only be voluntary and should not be imposed on companies by the Government. They consider it a new form of tax on their profits when it is made mandatory. But those who support the proposal say that CSR is not philanthropy. CSR, they say, makes good business sense. It extends beyond philanthropy and reaches out to the integration of social and business goals. CSR should be made an integral part of overall business policy and aligned with a company’s business goals. Whether it is CSR or philanthropy, what matters is

present expression apart is the widespread recognition that today’s relentless drive for growth and competitiveness must be matched by equally strong commitments to better governance, human development, social cohesion and environmental sustainability if it is not to self-destruct. BLF, supported by prominent corporations in Europe, America, Asia and West Asia, works with leaders in business, civil society and the public sector to: * encourage continuous improvement in responsible business practices with emphasis on the company’s core practices, social investment strategies and engagement in policy dialogue; * develop geographic or issue-based crosssector partnerships to take effective action on social, economic and environmental issues; * help create an enabling environment which provides the right conditions for responsible business practices and cross-sector partnerships to flourish. The forum began working with partners in seven countries in Central and Eastern Europe to share skills in human resource devel-

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April 30 - May 31, 2011

opment, promote business standards and take action on training and employment. In Indonesia, a unique partnership was formed with the World Bank, the Asian Development Bank, UN agencies and 18 business and leading voluntary organizations engaged in economic recovery to build local capacity for economic management, enterprise and social safety nets. In Latin America, new partnerships were being developed to engage businesses in sharing health and safety practices, collaborate in youth development and promote business engagement in cross-sector partnerships for social responsibility. In Egypt and West Asia, the forum, with local partners, helped to bring the awareness of public officials in how the private sector contributes to development and youth training and the scope for sharing private-sector management skills with civil society groups engaged in social development. In Russia, the forum acted as a catalyst for a programme, which trained over 100 museum and arts managers in an industry which is key to cultural life, tourism and employment, in management skills to help them survive the financial crisis.

Passline News Service

he debut of the Indian Premier League (IPL) in Kerala has heralded an economic boom in many sectors of the state. Though the matches for this season have ended, development enthusiasts have begun discussing the latest trends noticeable from the gains the state may have derived from the IPL entry and its effect on the state’s economy. Sustainable development of tourism and global branding of the state have occupied centre stage post-IPL. In spite of differences among various sections of people and organizations with regard to the success or otherwise of the venture, Mr Vivek Venugopal, team owner, Mr T C Mathew, Secretary of the Kerala Cricket Association, and Mr Tony Chammany, Mayor of the Cochin Corporation, exude confidence that the event had created a boom in the tourism and related sectors. “IPL has helped both Kochi and the state in a big way to gain worldwide attention. Some sectors of the economy have shown signs of development. It is a good thing, indeed”, says Mr Vivek Venugopal. “Whether the IPL matches in the city were a success or not, Kerala and Kochi have now been globally branded”, Mr Mathew agrees. “Tourism and Kochi were hot topics of discussion during the days of the matches”, says the Mayor, who justifies his and the corporation’s stand on the tournament. Industry acknowledges that signs of development are seen taking place in various sectors as after-effects of the mega-event. IPL is a game of money and glamour, and the state tried to derive its benefits. Kerala had welcomed it with particular reference to the devel-

Though controversy still surrounds the IPL matches held in Kochi, it is the economic advantages that IPL brings to the state that gets more importance. Not only the state’s tourism sector but its culture and heritage too is a topic of discussion. Many foreigners visit the state to learn about our culture and beliefs. Thus an investment-free branding of Kerala culture and heritage is taking place. opment of tourism. Connecting tourism with branding of the state, the state is eyeing international and domestic tourists for the coming season as well. As discussions are still taking place on the event, the beginning of an economic boom is visible. Cricket was merely a game for the players and advertising giants before the IPL came on the scene. IPL has been formed on the lines of the English Premier League where money flows besides a global branding of the country. A feature of IPL is the formation of a fraternity of players from different countries. It results in the exchange of cultures and traditions of different countries. Moreover the plays are viewed by spectators worldwide. In Kochi too they were viewed by spectators across the world on television and directly, which helped in a large way the branding of the city as well as the state. Many countries including the US are also in the process of forming their own cricket teams and cricket culture. When

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April 30 - May 31, 2011

they do this, Kerala will be a beneficiary because the game offers several attractions besides being merely a sporting event. With cricket gaining worldwide attention, the fastest form of cricket will be a boost to the state’s development. Before the IPL matches came to Kerala, many media players had talked about the possible boom it would bring to our economy. Tourism is the main attraction of the state which, everyone agrees, is blessed with nature’s bounty. The Kochi IPL team also took a ride on the backwaters of Kumarakam. Besides, backwaters and monuments in several parts of the state were frequently written about in the print media during the days of the match. Though controversy still surrounds the matches, it is the economic advantages that

IPL brings to the state that gets more importance. Not only the stateâ&#x20AC;&#x2122;s tourism sector but its culture and heritage too is a topic of discussion. Many foreigners visit the state to learn about our culture and beliefs. Thus an investment-free branding of Kerala culture and heritage is taking place.

Of course, finding a solution to Keralaâ&#x20AC;&#x2122;s financial back- the number of tourists during the season, Mr Mathew wardness through tourism is also one of the avowed says he saw around 15 people working in different counpossibilities foreseen by the formation of IPL. In fact tries (NRIs) who had come to Kerala only to watch the Kerala was globally branded along with its culture and matches. Mr Chammany agrees with the point. He says heritage besides tourism in these days if we can be- Kochi was globally branded and our various achievelieve the words of some of the ordinary people. Taxi drivers and hotel owners at the IPL venue said they had experienced increased business. They felt that the event would have been a greater success if tickets rates were lower. The capacity crowd at the stadium during the last match after the slashing of the ticket rates supports this view. Boat owners from Alappuzha also said they earned more revenue during the days of the matches. Vivek Venugopal T C Mathew Tony Chammany Cultural exchanges among countries were seen ments were discussed among many people. Mr taking place during the matches. Mr Mathew says Sri Venugopal says Keralites got great praise from many Lankan players had pointed to the similarities their foreigners after the event. country has with Kerala. About the increase in

Kerala is also blessed with its diverse and excellent cuisine, especially its seafood. Alappuzha and Kochi are famous for their delicious seafood items. Many tourists relish these. Along with seafood, boating on backwaters is a great attraction for tourists. IPL has proved that it can market tourism without any investment at a time when the State Government spends huge amounts every year on its promotion. In Kochi alone there are a lot of tourist hubs. Many match viewers might have visited these places and enjoyed the moments. Kochi stands apart from other IPL venues in the country with its tourist spots, food, culture and heritage: No other place is likely to have all these advantages together. Directly or indirectly, the IPL event in Kochi has helped the Kerala Tourism Development Corporation in its effort to boost tourism.

overall de-

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April 30 - May 31, 2011

What the Government should now do is to evolve a comprehensive approach to development through sports and develop tourism and related fields with missionary zeal. For the next season, a joint effort by the Kerala Tourism Department, Kochi Corporation and the IPL franchisee will help boost velopment.

THE SOCIAL SCENE

By Bobby John Pulickaparambil

Lokpal— new hope coupled with challenges O

ne day an Indian met God and asked the Almighty, “When will our country be free from corruption?” God remained silent for a moment and then answered, “Sorry, that is not going to happen in my lifetime.” This familiar joke vividly pictures the width and depth of corruption in our country. Scam after scam, and the common man of this country falls into pessimism and even cynicism so that nobody can ever save us from corruption. All of a sudden, Anna Hazare, the veteran Gandhian, kindled rays of hope in the minds of every rightthinking person in this country. After a week-long agitation for a comprehensive anti-corruption bill, which received unprecedented public support, the Government finally issued a notification forming a joint committee to draft a comprehensive Lokpal Bill. Now, people all over the country are eagerly waiting for the bill which is expected to be introduced in the next (monsoon) session of Parliament.

The draft bill proposes to create a Lokpal with effective powers to investigate and prosecute all public servants including ministers, MPs, bureaucrats, judges etc. There are provisions enabling the Lokpal to supervise the disciplinary proceedings against Government servants. Another interesting proposal is that the Lokpal can stop a public contract if it finds that the contract is entered into on the basis of corrupt considerations.

The word ‘Lokpal’ is derived from the Hindi words ‘Lok’, which means ‘people’ and ‘Pal’, which means ‘protector’. Thus Lokpal means the ‘protector of people’. Lokpal is nothing but an Indian version of the ombudsman, a system which has become a huge success in Scandinavian countries. The concept has its origin in Sweden (1809). Later, the other Scandinavian countries such as Finland (1919), Denmark (1953) and N o r w a y (1962) followed suit. Influenced by its utility in protecting the interests of the citizen and checking corruption and maladministration, many other countries emulated it. At present, ombudsman institutions exist in more than 100 countries. The system enjoys a pivotal place in administrative law. ‘Ombudsman’ is a Swedish word which means ‘an officer appointed by the legislature to deal with the complaints against administrative/judicial actions’. Generally an ombudsman is an independent body competent to scrutinize the actions of the administration. It ensures that the administration is in accordance with the law. It can deal with maladministration as well as inaction. The ombudsman can take suo moto cognizance of public grievances. Then it can order investigaPASSLINE

April 30 - May 31, 2011

tion through an agency or conduct investigation on its own. In some countries like Sweden and Finland, the ombudsman can initiate prosecution against the erring public servants. But, in some other countries he can only order prosecution. In the UK there is an ombudsman-like institution known as Parliamentary Commissioner. But he can act only on the basis of complaints received through members of Parliament. The draft bill proposes to create a Lokpal with effective powers to investigate and prosecute all public servants including ministers, MPs, bureaucrats, judges etc. There are provisions enabling the Lokpal to supervise the disciplinary proceedings against Government servants. Another interesting proposal is that the Lokpal can stop a public contract if it finds that the contract is entered into on the basis of corrupt considerations. According to one of the framers of the draft bill, the Lokpal has broadly four functions: vigilance, criminal, public grievance and whistle-blower protection. Then what about the possibility of the protector turning faulty? Well, the orders of the Lokpal will be subjected to judicial review before the High Court and the Supreme Court. The members of the Lokpal can be removed by a five-member bench of the Supreme Court on the ground of misconduct. The Lokpal Bill is only at pre- legislative stage and, therefore, it is premature to comment on it. However, it appears that certain provisions of the draft Jan Lokpal Bill give sweeping powers to the Lokpal so that it may become an institution vested with more power and less accountability. Here one must remember the saying ‘power corrupts and absolute power corrupts absolutely’. There are serious apprehensions about vesting the power of investigation and prosecution in a single authority. Some critics say such provisions of the Jan Lokpal Bill are against the scheme of our Constitution. Some others criticize the draft bill saying that there is nothing in it to show that the Lokpal will bring to bear a greater sense of transparency and accountability of the system than the existing institutions. Anyway, it is not wise to make the Lokpal a ‘superman’ of our political system. No doubt we need a strong and effective Lokpal, but at the same time it should be transparent and accountable also. Time and again the functioning of our public institutions has proved that what matters is the quality of the persons at the helm of affairs, and not the framework. Take the case of the Election Commission, for example. So the crucial question is, ‘Will the right persons be appointed as Lokpal?’ Well, the draft Lokpal Bill proposes a search committee and selection committee for that purpose. The search committee will comprise the former Controller and Auditor General (CAG) and the former Chief Election Commissioner (CEC) who would recommend three times more candidates than the vacancies. The draft bill proposes a selection committee comprising the Prime Minister and the Leader of the Opposition, the CAG, the CEC, the two most senior judges of the Supreme Court, two most senior Chief Justices of the High Courts, the Chairman of the National Human Rights Commission and the outgoing members of the Lokpal. It is expected that the broadbased selection committee will select the apt persons for the post. To page 14

OIL POLICY

By Prof K Aravindakshan

India’s oil concerns call for new strategy I

Now it is for India to use her diplomatic skill along with BRICS nations so that a new oil strategy is put in place lest we should suffer a disastrous defeat in out efforts towards achieving a stable macro economic management.

n his book, published recently, which covers the vast geographical regime spread over from Oman to Indonesia, embracing 37 countries and almost a third of the world population, Robert D Kaplan remarks that this regime will “demographically and strategically be the hub of the 21stcentury world”. The name of the book is Monsoon: the Indian Ocean and the Future of American Power. Maybe the expectation would have come true if the regime had not turned itself into an area of grave instability, turmoil and chaos. It would be the height of folly if one were to put the blame for all these on the surge of anti-democratic forces against an elected government. In fact it was not against a democratically elected government that the people revolted, but against authoritarianism and for a regime change, first in Tunisia which witnessed the month-long Jasmine Revolution that forced the President, Abidine Ben Ali, to terminate, though with great reluctance, his over-two-decade-long dictatorship and seek shelter in Saudi Arabia. What signifies the revolution in Tunisia is that this was the first instance in which a popular reprising in the Arab world brought to an end an authoritarian regime. Anyway the Tunisian revolution was the starting point for a series of anti-authoritarian regimes in the West Asian region, exposing thereby the hollowness and fragile nature of any authoritarian regime for that matter. It is worth quoting in this context the opinion of an Israeli writer, Abdel Bari Atwan, “The Arab nation is patient but its patience is similar to that of a camel; when it is furious, it does not stop until it wreaks vengeance on its perpetrators.” This exactly is what is hapPASSLINE

pening in the entire Arab world and the North African regime.

trade union activists, teachers, lawyers, human rights activists and so on.

The woes afflicting the Arab countries are more or less the same and are evenly spread. The woes identified already are unemployment, leading to social unrest, rapid population growth and slow rate of economic growth, leaving the non-oil-producing states in a state of despair and poverty. Though the Arab governments had to seek export markets to increase manufacturing, create new jobs, find new sources of income through a process of economic reforms, the political will to usher in the process of social and economic reforms was absent so that apart from the lack of political freedom and right to dissent, there were widespread economic and social inequalities which led to further marginalization of the poor.

In order to stern the tide of violent protest action, Ben Ali, 74, in his fifth term of office since 2009, announced an emergency plan. But it was too little and too late. While the protest was spreading and gaining momentum, private farm monopolies went on increasing the prices of fruits, food grains and vegetables adding to the fury of the public. The demand was for more jobs and cheap food grains and other essential goods. This demand was met with force and brutality by the security forces. Naturally the people’s ire against President Beri Ali grew more intense and he was forced to quit. For the world as a whole, the events in Tunisia leave behind two valid and useful lessons. First, the Tunisian revolution was spontaneous and there was no charismatic popular leader like Ayatollah Khomeini as in Iran. Second, the Tunisian revolution was ably assisted by modern technological gadgets as social networking websites, TV, mobile phones, SMSs and so on.

While the countries suffering from food inflation such as China, Russia, India, Brazil, the Philippines and even Japan and the US have taken bold initiatives to tackle emergency situations that have arisen, the governments of Arab countries have been virtually sleeping over all these issues including food shortages and unemployment for quite a long time. No wonder, the trouble started in February 2011 in Tunisia, considered till then by the West as one of the best-run states in the Arab world, where Muhammad Bonazizi, a 26-year-old unemployed graduate, set himself on fire is protest against the confiscation of his food cart, the sole means of livelihood for him and his family. This desperate act was enough to ignite public protest from people belonging to all walks of life—students, workers, April 30 - May 31, 2011

In this context it is worth mentioning the electrifying role of the Qatar-based Arab news channel Al-Jazeera in spreading the movement to neighbouring Egypt where another unscrupulous dictator, Hozni Mubarak, who tried in vain to suppress the democratic movement with the monetary and military aid from the US and Israel. In Egypt, unlike in Tunisia, the protesters had the able, inspiring leadership of the Nobel Prize winner and former chief of the International Atomic Energy Agency (IAEA),

Crude price spurt toughens matters Mohamed El Baradei. Despite some cosmetic reforms and vague promises, the democratic forces would not be deceived and taken in for a ride but had to quit, though reluctantly. In Yemen too where dictatorial rule had been prevalent for more than four decades, the unrest has temporarily died down, when the ruler promised to step down after the end of the present tenure. In oil-rich Bahrain the unrest is linked to the domination of the minority Sunni faction over the majority— roughly 75%— Shia faction. It is here that the US Fifth Fleet has been anchored for quite a long time. The spread of the democratic movement to the oil-rich Libya where the despotic ruler is none other than Col Gaddafi, who has been painted as a ‘devil’ by the US and her Western allies as well as the entire Western media, has added a new dimension to the crisis. The US and the West as a whole had been waiting for an opportunity to unseat this dictator at the earliest. And the movement for democracy has come in handy for them to achieve their end. The hunt for Gaddafi has only begun and sooner than later, he may have to meet the same fate as that of Saddam Hussain of Iraq. The day is not far off when President Hugo Charez of Venezuela, another oil-rich nation, may fall a prey to the hidden designs of the West and NATO. This story of unseating the existing regimes of oil-rich nations of West Asia and North America (WANA) will end only with the real game plan to engulf the real economy in the regime, Iran, and pull down the present regime of Ahmedinajed. Only then will the entire regime, embracing the oil-rich nations of the world, come under the control of the West. Meanwhile Yemen and Ivory Coast are also facing political instability. It is really this aspect of the whole affair that becomes relevant and a matter of concern for India, China and other nations dependent upon oil imports. As far as India is concerned, the fact that crude oil prices have reached $110 a barrel as the immediate aftermath of

the WANA turmoil is no laughing matter. This new development has widened the gap between domestic oil retail price and cost of production. There are pressures from oil marketing companies (OMCs) especially State-owned Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum for price increase. Petrol is being sold at a discount of $2.25 a litre when compared with its cost. Naturally, the three oil companies have been losing Rs 10.074 a litre on diesel, Rs 21.60 a litre on kerosene and Rs 356.07 per 14 kg on a domestic LPG sylinder. The revenue loss estimated then was Rs 76,559 crore for the year. Since January 2011 when crude oil price stood at $92 a barrel, there has been no price

time, the retail prices of the three essential petro-products— kerosene, diesel and LPG —through the public distribution system (PDS) are managed by the Government with the help of subsidies. With the deregulation of petrol prices since 2010 there have been periodical revisions in the prices of petroleum products till now in tune with fluctuations in international crude prices. Such revisions have been taking place within an interval of every fortnight. Now that the WANA turmoil is getting more and more complicated and serious with the OPEC countries showing little inclination to step

CRUDE OIL PRICE IMPACT ON INDIA’S IMPORTS Price per barrel ($) Domestic consumption (mt) Crude production (mt) Crude imports (mt) Gross oil imports ($ billion) Gross oil imports (Rs Cr) Net imports ($ billion) Net imports (Rs Cr)

FY 2009

FY 10

FY 11

FY 12

84.8

69.7

85.0

100.0

110.0

133.6

138.2

141.7

147.3

33.5

33.7

38.4

41.9

128.2

159.3

157.8

160.3

75.7

79.6

96.0

115.1

126.9

3,41,900

3,75,400

4,37,900

5,04,300

5,55,700

2,85,300

2,65,100

3,31,400

3,85,900

4,26,400

Source: Petroleum Planning Cell

increase. Any time now crude oil prices may reach $110 or more a barrel so that Indian oil import bill could reach $100 billion. An increase of this magnitude can be entirely attributed to the turmoil in West Asian and North African countries which shows no sign of abatement. Please look at the table given below: India imports 80% of its crude oil requirements of the domestic market from the international market at the prevailing price so that the cost of products rises accordingly. Naturally, petroleum price at the global level is market-determined. Hence control or no control, price determination takes its own course. Price control, if any, becomes a farce. At the same

up petroleum production, both India and China have come out openly expressing their concerns. The world meet of BRICS (Brazil, Russia, India, China and South Africa) in China expressed serious concerns about US-NATO military action in Libya for the same reason. The UPA Government did not dare to announce another price increase only because of the recent Assembly elections. If at all there is another price increase, which is sure to take place, sooner than later, the only relief the Government can offer is a reduction in excise duties which, if the State Governments also cooperate, can partially neutralize the rise in domestic price levels. But we must remember that tax

relief and subsidies are no permanent solution. India has very few options in regard to oil. Import of huge quantities of crude oil and storing it as a safety measure either within the country or in a foreign country or increasing crude supplies from South American nations to supplement domestic supplies may be the two options from the supply side. But what about the demand side where there is little scope for manipulation? There can be a more serious and sincere effort to practise strict economy in oil consumption which, it seems, is easier said than done. But there is no soft option for us. However, we may try for diplomatic initiative and organized lobbying so as to ensure that the determination of crude oil price in the global markets and the activities in the financial markets are not entirely market-driven, but are at least partially regulated. The G 20 nations have already given the green light to such measures. Now it is for India to use her diplomatic skill along with BRICS nations so that a new oil strategy is put in place lest we should suffer a disastrous defeat in out efforts towards achieving a stable macro economic management.

Middlemen have a big role in corruption From page 12

Some have suggested the widening of the scope of the Lokpal Bill by including corruption in the corporate sector and NGOs also. According to them, the anti-corruption law in the US deals with corruption in those sectors also and, therefore, there is no reason to exclude those sectors from the proposed Lokpal Bill. Though this appears to be a convincing argument the feasibility of the proposal is doubtful at this juncture. Moreover, moves in such a direction may further delay the passing of the bill. In fact it is not the first time a Lokpal is being proposed. The Lokpal Bill has been stalled eight times in Parliament. It is better to reserve the aforesaid suggestion for a later occasion. Middlemen in corruption are playing a big role in perpetuating corruption in our country. Take the case of corruption in various tax departments. In almost all the cases, the modus operandi of corrupt officers is to ac-

cept bribes through middlemen who are brokering corruption in the guise of representing their clients. Unless and until we invent an effective mechanism to punish these middlemen in corruption, we cannot tackle the menace effectively. It is widely expected that the new Lokpal law will have some answers in this regard. It is unfortunate that a section of our political leaders believe that corruption is inevitable for running a political party. One such politician opined that it is difficult to build any political party without corruption. The comment invited sharp reactions from various corners. Anyway this shows the need for transparency in all political activities such as fund collection, selection of candidates, organizing programmes, election of office-bearers of the party etc. Further, our country badly needs electoral reforms. State funding of elections, measures to mitigate election expenses by reducing time for electioneering etc can be experimented. PASSLINE

April 30 - May 31, 2011

Finally, since we are on the threshold of a new, comprehensive Lokpal law, will it save us from corruption? It is rubbish to expect the proposed Lokpal will solve all corruption-related issues in our country. It is only a welcome initiative and we have miles to go before we reach the goal. The euphoria over the Jan Lokpal Bill may change to cynicism unless the proposed bill is thoroughly analyzed and pruned in consonance with the democratic principles and the scheme of our Constitution. The need of the hour is an extensive pre-legislative debate over each and every provision in the bill. Moreover it is high time to reform and purify our pillars of democracy by measures like election reforms, introduction of an effective judicial accountability bill, rejuvenating various monitoring agencies, bringing more transparency in executive actions etc. (The author’s email: advbobbyjohn@gmail.com ybob@sify.com)

TECHNOLOGY

“Smartphones will never be a threat to the PC. A PC or a laptop will still be in demand which will be consistent since it’s going to be a basic need for users irrespective of age, profession etc. But what could possibly reduce the PC/laptop demand is touch collaboration applications like iPad because everyone likes to use the technology while they are on the move.”

Smartphones a threat to PCs? Passline News Service

r Michael Saul Dell, founder CEO and Chairman of global personal computer (PC) major Dell, recently told the media that he didn’t believe that the smartphone would replace the PC. He said: “The smartphones do different things. They are for mobility, and the PC is for work that requires a bigger screen and allows you to access more data.” Ironically and interestingly, the USbased Dell itself has entered the segment with cool 3G phones—XCD28, XCD35 and Dell Streak. Naturally the question that comes to one’s mind is: Why has Dell also started making and selling smartphones? Undoubtedly this is the time of smartphones. The technology surrounding them is constantly changing. What constitutes a smartphone today may change by next week, next month or next year. Most of the companies simplify smartphones for consumers and give them experience on how applications can improve life. Some of them say smartphones will pose a threat to PCs and some others do not consider they do.

that has access to high-speed internet possibly replacing the PC”, says Mr Ranjith Varier, who is working with a leading mobile firm in Mumbai. “The PC is never going to be replaced by smartphones. Yes, there is a possibility that tablets may do it. But still people like to have a hard keypad instead of touch stuff. And the size of the smartphone also matters. It’s a little difficult to handle as well. So smartphones will always be smartphones. But there can be a merge of tablets and the PC”, says Mr Nile Joseph, Lead Engineer, HP, Bangalore.

who need to be constantly updated, the smartphone is indeed a boon. It combines voice services with e-mail, fax, pager, internet access, Microsoft office tools and many more. Again, if you are a fan of You Tube, want to be updated with the latest stock prices, regularly check up on your online community friends or simply read your favourite blog on a trip, a smartphone is the answer. The options on the smartphone are indeed endless. So surely it will be a threat to the PC,” says Mr P S Sujin, an engineering student in Kochi.

“A smartphone is nothing but a multiutility mobile phone that is definitely smarter than a simple cell phone. Apart from making telephone calls you can also get additional features from a smartphone mobile as it runs on a form of complete operating system software with PC-like functionality, an all-in-one device that takes care of literally every digital need of the youth, colour screens, audio capabilities, web browsers or portable media players. Needless to say, all these attributes of the smartphone make it popular both for professional and personal use. For professionals on the move

“Now most people want to move to the smartphone given the kind of features it offers. It is a much newer phenomenon in India than it is in the rest of the world and hence has such low penetration. The sales of smartphones have in recent months increased tremendously because of the fall in their prices,” says Mr P S Marshel, who is attached to a leading mobile showroom in Kochi.

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April 30 - May 31, 2011

“We can use the smartphone like a mini-laptop. These phones offer various flexible features that allow the user to surf the internet and send mails with a single touch. They also support thirdparty applications that can make life much easier. The customers of these phones are mainly professionals and youngsters”, says Kochiite Danny Jackson, who is working with a publishing company. “The 3G smartphone networks enable network operators to offer users a wider range of advanced services

Letter box @ inbox in mobile P

K.K.Devis Senior Postmaster, Ernakulam

ossessing a home is everybody’s dream. The dream is fulfilled when the home is acquired. Security and safety have a bearing on the house’s or an organization’s gate. A gate reflects the status and standard of the owner of the house. But owners often neglect or ignore the necessity of a letter box for their houses as they are ignorant of its importance. Nowadays it is imperative to have a letter box at the house as most of houses invariably remain always locked as the residents will be out on their avocation or education during daytime. Hence a letter box in front of your house lessens the responsibil-

ity of the Postal Department and the work of the postman and makes communication easy. A letter box will help the postman deposit the postal articles in your box. In the absence of residents the Postal Department has the solution. To receive registered articles the department has arranged for an authorization letter for the

Letter Box

person who may always be present at the house to receive them. In this cyber age how easy it is that the internet and mobile phones collect and pass communication! Likewise let your letter box at your gate function as an inbox. An address attaches a PIN code aka postal index number. It is a sixdigit number which came into effect from August 15, 1972. The first three digits indicate the state and sorting district of the Postal Department. This is like our STD for the telephone. The next three digits make the PIN code. The PIN code of Kochi Town delivery is 682, 682 001 is the PIN code of the Kochi Head Post Office and 682 016 the PIN code of the city’s M G Road. In any address, the PIN code is mandatory. Individuals or institutions must write down the PIN code in their letters, Emoney orders and visiting cards. When you set the signature in your e-mail don’t forget to include your PIN code in it. (The author is the Senior Superintendent of Post Offices, Ernakulam Division, Kochi)

They are smartly priced too like wireless voice telephony, video calls and broadband wireless data, all in a mobile environment. Additional features also include HSPA data transmission capabilities able to deliver great speeds on downlink and uplink”, Mr Danny adds. The smartphone category has grown significantly over the last two years in India. Top mobile companies like Nokia, HTC, Samsung, BlackBerry, LG and Dell have launched their smartphones at various price points. Nokia, the most successful mobile brand in the Asian market, has mobiles with many features. The phones are also reasonably priced. The Nokia smartphone is known to provide people with great experiences in music, navigation, video, television, imaging, games etc. Among the company’s popular smartphones in India are Nokia E7, E5, E63, E72, C5, C6, C7 and C 503. Nokia has launched its new E7 with the symbian operating system. It has a large 4-inch screen with a Qwerty Keypad. It offers multimedia performance and a host of productivity applications including live stock prices. The phone also features a scratch-resistant touchscreen display with sleek design. The E7 comes with a powerful 8MP camera.

8310 and 8320, Bold 9780 and Torch 9800. HTC smartphones fit into the lifestyles of all. HTC claims it excels in offering world-class corporate email support, access to company directory as well as great office productivity tools. The HTC collection includes Wildfire, Desire, Desire Z, Desire HD and Incredible S.

Dell has its XCD28, XCD35 and Streak. The Streak is said to be the perfect balance between a smartphone and a tablet. It has got a 3-touch screen-dedicated button on the right side. This handset is powered by Android 2.2 Froyo. An 1GHZ processor with multitasking features makes it the perfect gadget in your hand, says the company. Widescreen display (5-inch, 480X800 pixels) not only helps one work faster but also gets quite entertaining especially when watching movies. The touch screen supports multi-touch function. The Streak has a 5MP camera with dual LED flash support for excellent picture quality and video recording. Other features are 3G, GPRS, WiFi, Bluetooth, USB 2.0 and GPS. The LG smartphone collection is known for its stylish designs and smart technology. LG creates handsets that provide an optimized mobile experience to customers with the convergence of technology and mobile computing products. Among LG smartphones in India are Optimus One P 500 and Optimus GT 540. Among Samsung’s major innovations are eight mobile TV phones across four different broadcasting services, first 8GB hard disk drive (HDD)-embedded music smartphone and the world’s fastest High-speed Downlink Packet Access (HSDPA) technology. Its popular range includes Wave 525, 533 and II S8530, Galaxy S, Ace, Pop, Fit, 30 and Tab.

The BlackBerry smartphone collection provides the power to connect to everything that matters in one’s professional and personal lives. “Whatever your needs are, there’s always a BlackBerry smartphone to suit your lifestyle,” says the company. The popular BlackBerry smartphones in India are Curve 3G,

Smartphones are poised to drive growth in the Indian mobile market in the coming years. PASSLINE

April 30 - May 31, 2011

Though there are problems like high interest rates, lack of confidence among investors and the glut prevailing in the market, builders and promoters who have good track records and brand identity are doing brisk business. Passline News Service

he real estate sector in Kerala is slowly recovering from the slump it has been witnessing for the last two years. Three main reasons are attributed to the positive trend in the sector. First and foremost is that the economy is back on track after the uncertainties resulting from the negative growth of the West in general and the West Asia and Asia Pacific regions in particular. According to latest reports, the global economy is growing at 4.5% and India’s growth rate is pegged at 8.5%. Secondly, a lot of impetus is being given to infrastructural projects. A few such projects have already been launched nationally and in Kerala with a couple of others being in the pipeline. Lastly, the service sector which contributes immensely to the economic spurt is able to spend considerable amounts as it has much disposable income. All this does not mean that everything in the sector is in order now. There are problems like high interest rates, lack of confidence among investors and the glut prevailing in the market. But builders and promoters who have good track records and brand identity are doing brisk business. The revival of Smart City has given plenty of optimism to the players in the sector. Says Mr Paul Raj, Director of Alfa Ventures: “Though Smart City will be an integrated satellite city, it is impossible for its promoters to accommodate an estimated 90,000 employees in the vicinity of the project. There will be a gradual increase in the demand for houses but we can’t predict how long we will have to wait for it. The project is already delayed for reasons known only to the Government and the project promoters. We can expect demand for dwellings from the supporting and

supplementary industries of the mega-project also. The herculean task will be to bring back the confidence of investors especially from the Gulf countries since the largest Malayalee NRI diaspora is residing in that region.”

was announced six years ago. Even before the announcement, huge investments had taken place because of the increase in the population of the city and the fast development on its outskirts. The recent boom, particularly in the vicinity of Smart City,

CREDAI Abu Dhabi fair on May 20, 21 The Confederation of Real Estate Develop- recovering fast from the shadow cast by the global

ers Associations of India (CREDAI) Kerala is organizing an exhibition at the India Social & Cultural Centre (ISC), Abu Dhabi, on May 20 and 21, 2011. More than 30 stalls will come up at the fair catering to the property aspirations of the Malayali diaspora in the Gulf countries. The fair will also give the real estate sector a real boost as NRKs in large numbers are coming forward to invest in the realty business and seeking to buy villas and flats back home in Kerala. The Gulf will also get a vivid picture of the Kerala real estate sector.

economic slowdown.

As media partner for the show PASSLINE is also putting up a stall at the venue and distributing copies of the magazine there. Builders, both big and small, are coming together under the umbrella of a single entity at a time when the real estate sector is

It was the Kerala Builders Forum (KBF) that adopted the name of CREDAI Kerala as part of a branding exercise. CREDAI Kerala comprises the trinity of KBF Kochi, KBF Calicut and CREDAI Trivandrum.

Mr Paul Raj says there is no doubt that the real estate sector will have a spurt if a project comes with opportunities of job creation. “Smart City is a mega-IT project which will need thousands of employees, and there will definitely be demand for houses.” According to Mr Saji Kumar, a prominent real estate consultant, the problem is indiscriminate delay in the completion of the Smart City project. “It

PASSLINE

April 30 - May 31, 2011

CREDAI has state-/city-level associations of organized real estate developers/builders in Andhra Pradesh, Chhattisgarh, Delhi-NCR, Goa, Gujarat, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal. CREDAI Kerala, with guidance and support from CREDAI India, formulates guidelines and policies and codifiesKy an ethical code of conduct for its members.

is due to the announcement of the project. Still there is much potential in Kochi surrounding the Smart City and other mega-projects which are yet to become a reality. Lack of accessibility like good roads and heavy traffic blocks deter the development of the city. The only way out is to extend the city limits to adjoining places like Koothattukulam, Perumbavoor and Muvattupuzha for easing traffic,” says Mr Saji Kumar.

Buy an apartment, get a villa N

oel Greenature is the first Indian Green Building Council (IGBC)-pre-certified residential building in Kerala which provides eco-friendly projects conforming to the ‘green’ concepts that are rapidly catching on in the building industry. In an interview to PASSLINE, Mr John Thomas, Managing Partner, and Ms Geetha John, Executive Partner, of Noel Villas and Apartments, talk about the present trends in the realty sector and their green projects. Excerpts: As the construction boom is creating a lot of environmental problems now, what is the scientific and systematic way of getting rid of these ecological menaces? The unprecedented construction boom in Kerala, which is expected to accelerate in the days to come, is leading to widespread pollution. It is therefore necessary to address the environmental issues associated with construction in a scientific and systematic manner which includes various factors like selecting a site for the construction and planning of the building, the arrangements made for minimum use of water and materials used to save energy and the buildings. Indoor environ-

mental quality depends on designs and innovations.

pact on the land and is healthier for the people living inside.

What about the other Noel projects?

What is the ‘green’ specification achieved by Noel Greenature?

Spread on a lush green environ, Greenature houses 100 villa apartments, each one having its private garden in front and walkway to enter the living room through the picket gate. Ventilation for all Greenature villas has been furnished with glass having U-Value (UV) to obtain natural light and to reduce heat. This ensures a better living environment and a healthy atmosphere. This also protects the eco-system.

Noel has other premium projects in Kochi. ‘Noel Arcadia’ is one among them. It is a premium residential project at Vazhakkala, Kakkanad, and is decked with the most modern amenities. It is a stone’s throw from all the comforts of a city dwelling in 2.20 acres of designerlandscaped area with two towers. This project is constructed based on the new rules and regulations of the Government, with an FAR of 2. Each tower has GF+15 floors, with four flats on each floor, and the area varies from 1,500 sq ft-2,300 sq ft. Another one, ‘Noel Focus’, a commercial project, is coming up by the side of Seaport-Airport Road near the Cochin Special Economic Zone (CSEZ). It consists of corporate office spaces and premium guesthouse spaces. The project has three levels of basement car parking. The ground floor and first floor are shopping malls, and from the second floor onwards office space starts. The area ranges from 1,300 sq ft-2,500 sq ft. The building is centrally air-conditioned with full power backup and has common amenities like conference hall, gymnasium, cafeteria etc.

Noel Greenature has achieved some 45 parameters of the Indian Green Building Council (IGBC) specifications and has acquired the ‘IGBC Green Homes Pre-certified Gold’ certificate. What is unique about your projects compared with conventional buildings without the green concept incorporated in them?

Will you elaborate on your projects and management? From Noel what you buy might be an apartment, but what As engineering graduates you will get to live is a spacious with more than 25 years of exvilla built in an odd and even perience in the field we are thordesign providing ample height ough with the problems and between floor and roof. With possibilities of the construction Noel Greenature, it is truly ownindustry. We lead from the front, John Thomas ing your piece of sky without losconstantly monitor quality and ing on your little piece of earth. The project are actively involved in developing strong is designed with 2 FAR, providing more client relationships. We take strong iniopen space. The residents of the build- tiatives in keeping the design conteming can enjoy improved energy efficiency, porary and world-class and ensure cliincreased water savings, toxin-free ma- ent satisfaction by maintaining high stanterials and products with recycled con- dards. We have a dedicated team of tent, use of daylight for better health and highly qualified professionals both at the productivity and improved asset value design and project sites and in the ofand marketability. It is built with little im- fice.

DLF Bay View: for select group of upmarket clients “U nlike during the previous elections, the word ‘development’ has become an inseparable part in the campaign manifestos and election speeches of all candidates this time. This has brought to centre stage the realization that the people overwhelmingly desire development of their respective places or States. India and Indians have now proclaimed development as their chosen mantra. The experience of recent elections has also shown that the one who has consciously provided it has carried the day,” said Lt Gen M G Girish, Executive Vice-President, DLF Kerala, in an interview with PASSLINE a few days before the recent elections.

economic activities, is vibrant with distinctive projects like the Vallarpadam container terminal, LNG terminal and the Smart City project, which has just been revived. Improved roads, water supply and quality power coupled with a lot of positive sentiments make Kochi an ideal place for investors as well as the searchers of dwellings.

The USP of Bay View, says Lt Gen Girish, is ‘privacy personalized in a superluxury residential complex’, and the project is meant for a very select group of upmarket clients. Most of the 300 apartments in the project, 85% to 90%, are waterview apartments, fully airconditioned.

Lt Gen Girish was in a jubiThe pricing of Bay View lant mood after the launching Lt Gen M G Girish project starts from Rs 7,700 a of his superluxury apartment sq ft with an additional charge complex ‘Bay View’ at Marine Drive, for the waterfront units. The project has Kochi, when PASSLINE met him at his given great importance to the environoffice. According to him, Bay View is the ment, safety and security apart from the last project which is going to happen at cozy living style. Landscaped gardens, Marine Drive. The launching of the project rainwater harvesting, effective waste was timed taking into consideration three management system, three-tier access factors. First and foremost, the economy control security system and video suris picking up after the slump which lasted veillance at entrance and parking area almost two years. Secondly, internation- are a few of them. ally and domestically there has been a lot DLF’s ‘Infinity Tower’, the exclusive of impetus being given to infrastructure tower at New Town Heights, Kakkanad, development in recent times. Lastly, the consisting of 150 superluxury apartservice sector which contributes imments, has been launched recently. This mensely to the economic spurt is able to is a specially designed premium luxury spend considerable amounts as it has apartment in Kakkanad with all modern much disposable income. amenities. It includes Plaza Center, Kochi, the launching pad of all DLF which will have two floors of retail bouprojects in the State and the hub of all tiques, a high-end retail destination. PASSLINE

April 30 - May 31, 2011

Trinity—price-competitive, quality-conscious T

rinity Builders and Developers, a unit of Trinity Arcade Pvt Ltd, offers a comprehensive portfolio of villas and apartments in Kochi’s finest locations. Known for its speedy quality construction, Trinity homes are fast altering the cityscape. It has nine projects in various stages of completion in three of Kochi’s prime locations, including two in Kakkanad, to cater to a large chunk of the IT and IT investment crowd. Aluva, one of the fastest-developing localities around the city, is the other location with Trinity having two waterfront apartment projects as well as a super-luxury villa project.

and after-sales environment to all, small or large. Green springs at Kanjiramattam, Mercury premium apartments at Kakkanad, Trinity World Jupiter at Kakkanad, The Garden, Aluva, Trinity Periyar Sands, Aluva, Trinity High Grove, Kakkanad, and Nova luxury villas at Gandhinagar are the ongoing projects of the company.

C J Mathew Chairman

All Trinity projects incorporate facilities like fully vitrified flooring, clubhouse, health club, swimming pool, indoor games, party area, business centre, guest room, intercom, driver’s room, centralized gas supply, home theatre, Internet broadband connectivity and sovereign quality.

The reputation and credibility of the Roy Joseph company’s promoters M J Luiz Managing Director Director have assured buyers that Trinity has grown Trinity’s projects are good investments steadily since its inception. The as well as gracious lifestyle statecompany’s intention is to have susments. Drawn primarily from real estained and managed growth by maintate and construction, Trinity’s directaining a low debt-to-equity ratio. The tors are well respected in their own company’s success lies in its ability fields. They have united with a vision to attract and retain experienced perto bring quality housing to Kochi. Made sonnel with its good HR policies. It up of a team of individuals, passionK J Paul is also extremely price-competitive Director ate about making excellence in the and highly quality-conscious, executhousing scenario, Trinity is the vision of its able ing only premium projects packed with modern directors, well respected in their own fields. living amenities and providing world-class sales Its project at Edapally is at one of the most vantage points of Kochi.

PASSLINE

April 30 - May 31, 2011

Celebrating relationships

lending of quality and reliability, timely completion and delivery of projects, unmatchable after-sales service—Kalpaka Builders Pvt Ltd, which stands atop in the construction field, is second to none with a string of unique services. One of the fastest-growing builders in Kerala with over a decade of experience, Kalpaka Builders brings to its clients a splendid selection of housing projects at several spots in Kochi. Kalpaka has a qualified, efficient and dedicated crew behind its success by carrying out various services including home loan assistance for the clients to occupy their dream homes. With this team of engineers, supervisors and others, Kalpaka ensures the timely completion and delivery of all its housing projects. The company is committed to a service mission that entails delivery of nothing less than top-notch qual- Sunith Vasudevan ity and impeccable service. Having built landmarks of committed service over strategic locations in and around Kochi, Kalpaka has also extended its realm of service to other major cities. “At Kalpaka, the relationship with the client does not end with the structure of a house. I believe in building dream homes and relationships with the proud owners. And, so, Kalpaka offers the client an array of services so essential to every home owner. This is just to reiterate the commitment to the client”, says Managing Director Sunith Vasudevan. To this end it has focused its attention on the spheres of home building, interior designing, home care services, after-sales services and home loans. Kalpaka JMJ, Kacherippady, Kalpaka Blue Diamond, Vyttila, Red Ruby, Vyttila, Fort Palace, Edappally, Suvarna Apartments, Elamakkara, and Kalpaka Villas, Elamakkara, are a few among its successful projects in and around Kochi.

ewel Homes knows the requirements of the people more than anyone else, having been in the building industry for over a decade. Perhaps it is this knowledge that has helped it find a space for it in the competitive realty business. Today’s homes are to be built in keeping with the need for relaxation after a day’s strenuous work schedule in our hectic life. Many builders, however, consider it a bother to penetrate into such psychological factors of customers and win their hearts. Jewel Homes of Kochi is an exception. Since 1997-98, Jewel Homes has been providing sensible homes satisfying all needs of its clientele—psychological, social and aesthetic. And its Managing Director, Mr P A Jihas, is not ready to compromise on the quality of his products. Jewel Homes is a company that innovates every moment to achieve outstanding levels of excellence. It has witnessed healthy growth and finished and handed over all its products on time. Its tremendous success and popularity is due as much to the quality of its products and its competitive prices as to its people who propel the activities with great elan and aplomb. With Oak Ridge Premium Villas at Aluva, Jewel Homes is creating a verdant oasis of serenity for exceptional individuals and their families to reside with pride and contentment. Each villa here is an elegant home of exceptional beauty and enduring functionality. Jewel Nexus at Palarivattom, consisting of premium apartments, has top-notch design, state-ofthe-art amenities and city conveniences well within one’s reach. Whatever be one’s dreams, they are all there, says the company. It is all set to tower up

very near the Kochi bypass, next to the Ernakulam Medical Centre. Jewel Crest View with residential apartments, off IT Road, Kakkanad, is designed on a par with international standards. It offers affordable homes featuring all the amenities, comforts and luxury that define modern-day living. Jewel River Woods waterfront luxury apartment complex at Aluva is located on the banks of the Periyar, just 100 metres from the Aluva bypass junction. Jewel Richmond at Rajagiri Valley, Kakkanad, is a luxury apartment of international quality and is at a place where the serenity of nature blends with the looming industrial hub of Kochi. It is a living space rich in life and investment potential. Jewel Keningston premium apartments, also at Rajagiri Valley, Kakkanad, promise an inspiring ambience and all the luxuries of an ultramodern living space. Other Jewel Homes projects are Jewel Green Courtyard, Aluva; Jewel Lexington, Kakkanad; and Jewel Water Lilly waterfront premium apartments, Jewel Capetown and Jewel Fortune Palace luxury apartments, Kottayam. Jewel Homes also undertakes maintenance of the flats and is committed to bringing its clients the best housing solutions.

Solare— Weather no bar to hot water R

Thrivikraman Namboodiri

acold has introduced solar water heaters with the evacuated tube technology, engineered to provide maximum heating efficiency. Each evacuated tube is made up of two concentric high-quality glass tubes of optimum length to ensure excellent solar absorption. The inner container is insulated with hi-density injected PUF to provide maximum heat retention. The heater delivers hot water at all times.

Solar water heaters give amazing savings on electricity and power bills. They are fully guaranteed for their performance. Their design makes them almost maintenance-free. A well-installed solar water heater will give you trouble-free performance for years. The Kerala Head of the Solar Division is Mr Thrivikraman Namboodiri, Senior Engineer, Sales & Service. PASSLINE

April 30 - May 31, 2011

P A Jihas

Tanzeel where transparency meets timeliness S

tarted in 1978, Tanzeel Builders is a pioneer in the construction field promoting relationships through transparency, timeliness and trustworthiness through its various projects. Closely monitoring the pulse of the people Tanzeel makes dream homes according to its clients’ needs and tastes. Various projects under this established banner with unique features and utmost A A Nayeem security and safety in many parts of the State have stood testimony to the company’s reputation for the past 33 successful years. ‘Chalet’, a deluxe project coming up off Jawahar Nagar at Kadavanthra in Kochi, is another feather in Tanzeel’s cap. This project offers two- and three-bedroom apartments with at-

Heera’s homes— expression of clients’ individuality T

he Heera Group started functioning two decades ago in Goa. Having diverse business activities like property development, hotel operations, civil contracting, education and tourism-related projects, Heera has of late extended its wings to Kerala and other States too. Its enormous experience in the real estate industry has helped it to formulate and comprehend the concept of a home. It thinks that a home is not just a place, but an expression of one’s individuality. A home has a soul, a character and a personality all of its own. Heera gives utmost importance to implementing this concept, focusing meticulously on every detail and the client’s needs. Quality, economy and comfort are the factors that Heera rely on to achieve the needs of its clients. More than 30-lakh sq ft floor area in 1,700 happy homes in a short span of time proves the success achieved.

are focused on those clients who seek luxury at affordable prices. Both the apartments are located near hospitals, educational institutions, banks, restaurants and shopping malls. Facilities like well-equipped fitness centre, children’s play area, reticulated gas connection, air-conditioned lobby, proximity censor entry card, swimming pool, jogging track etc make these projects different and add value for money. Another aspect which is differentiating Heera is the selection of location. The projects are in the heart of the city like Heera Crescent at YMR Junction, Nanthancode, Heera Golden Hills at Nanthancode near Kanakakkunnu Palace, Heera Highlife at Deva swom Board Junction and Heera Blue Bells at Vellyambalam, all in Thiruva nanthapuram, which are marvellous examples of peaceful city life. They are right in the heart of the city but not much affected by its hustle and bustle.

The Heera Home Care Dr A R Babu Division is a special wing of Projects like Heera Lake Front and Heera’s services that takes care of Heera Towers are for those who seek aspects like maintenance, emergency a peaceful environment. Facing the repairs and bill/tax payments. The 24Akkulam Lake, one of the tourist attrachour division for the Residents’ Assotions of Thiruvanantha puram, Heera ciation also provides other services Towers is a unique combination of like customizing apartments accordnatural beauty and luxurious lifestyle. ing to the owner’s requirements and Heera Info City is another hi-tech renting them out in their absence. project, which is located near the Heera apartments are made to satisfy Technopark, one of the largest techvarying customer requirements. nology hubs in the country. Projects like Heera 4pillars at Dr A R Babu is the Managing DirecKillippalam and Heera Dreams at tor of Heera Group. Sreekariyam in Thiruvanantha puram PASSLINE

April 30 - May 31, 2011

tractive amenities and facilities. Blending style with substance, Chalet is a dream home project, says the company. ‘Tanzeel Park’ at Chittoor Road, Pachalam, Kochi, an earlier project, is a superb example of Tanzeel’s craftsmanship and calibre. ‘Elbony’ at Kakkanad, another deluxe apartment project with a slew of modern ameniA A Vaseem ties, shows the distinguished workmanship of the company. Many Kochi hubs like Kacherippady, Pulleppady, Basin Road, Mullassery Canal Road and Chittoor Road are dotted with elegant Tanzeel projects. Mr Nayeem and Mr Vaseem are the directors of Tanzeel.

Nest diversifies into realty N

est Infratech is the realty and infrastructure division of the multinational billion-dollar Nest Group conglomerate. Founded in 1991 by the brothers, Dr Javad K Hassan and Mr N Jahangir, the Nest Group has become a multifaceted information technology company with headquarters in Chantilly, Virginia (US), with worldwide offices in Europe, Japan, India, the Middle East and Australia.

for electronic hardware manufacturing and software and information technology-enabled services and 1.5 million sq ft of shopping mall space with multiplex, worldclass exhibition and convention centre, five-star hotel apartments, commercial office spaces and residential condominiums. Orchid Park, another project, is a superluxury apartment complex in the land of letters, latex and lagoons situated in the heart of Kottayam town at Kalathipady.

Jehangir

Nest has been able to gain and also a finishing school for fresh a firm foothold in the IT sector engineers or MCAs. which in turn has spurred it to It was after setting benchmarks diversify into other feasible secin other segments that Nest entered tors also. The group today is a the realty sector with the launch of well-diversified global company Nest Infratech. Nest Infratech offers having established business in exclusive living options at planned manufacturing various verticals locations across India. It is powlike electronics, RF and wireless, ered by the dynamic charcable and wire haracter and vision of its direcness, fibre optics, tors, Dr Javad Hassan, sheet metal, plastics, Chairman, Mr Jehangir, box build, IT and ITES, Managing Director, Mr F M expertise in engineerShamier Marickar (CEO, ing software applicaNest Group) and Mr Althaf tions, business appliJehangir (Executive cations, Insurance, GIS Shamier Marickar Director,Nest Group). and call centre. The Electronics City coming up The group has forayed into at Kalamassery is among Nest non-technology businesses like Infratech’s projects. The first spefood processing, mineral water cial economic zone in the private and distribution. Every division sector in Kerala, it is a Rs 2,500of the group has a success story crore state-of-the-art project with to tell. The group has its own entwo million sq ft of notified space gineering college and school

Electro Ville, a luxury apartment, takes shape at Electronics City, Kalamassery, which is one of Kochi’s most elite residential neighbourhoods. Through ‘The World’ Nest Infratech is also pioneering the concept of integrated townships. These townships will comprise villas and apartments starting from Rs 10 lakh and above. A unique feature will be the presence of Mediterranean villas, English-style villas, contemporary villas and traditional Keralastyle Nalukettu villas.

PASSLINE

April 30 - May 31, 2011

Dr Javad Hassan

Javad Hassan technocrat of world repute Dr Javad K Hassan started his career in IBM in 1968 as an engineer and went on to become the Corporate Head of Engineering and Technology at the company’s world headquarters in New York as well as the Head of its storage business. An IEEE fellow, he joined AMP Inc, the world’s largest electronic components company, in 1988 as its Corporate Head of Technology. He diversified AMP into fibre optics and wireless technologies and built that business to an over $1.5-billion-dollar company. He retired from AMP as President of Global Inter Connect Systems in 1988 and started his career as entrepreneur in his own right, starting the Nest Group.

Skyline—proud address for homeowners S

kyline Builders of Kochi has achieved what others can only dream. Synonymous with prestige and trust, its projects are renowned for superior location, customized comforts and timely delivery. It is a proud address for homeowners. Skyline has been the market leader in Kerala since 1993-1994. Its obsession with delivering quality projects on time has paid off in a big way and it intends to Abdul Azeez uphold its policy of maintaining the fulfilment of the clients’ dreams as the first priority. Each Skyline unit is successfully managed by skilled professionals who head various departments and report, in turn, to the CEO. The promoters themselves are technocrats with vast experience in the construction business. The group units function within an ambience of a cordial employer-employee relationship. Each group also gives due importance to the development of human resources and to the timely completion of each and every project that it undertakes. Skyline business covers the construction of flats, independent villa projects and commercial projects as well. It has experienced a steady expansion over the years but one perennial constant which endures is the importance accorded to customer satisfaction. It refuses to compromise on quality and believes in always working within schedules. Skyline is the builder having projects in eight cities/towns in Kerala—Thiruvanantha puram, Kottayam, Kochi, Thrissur, Kozhikode, Kannur, Thalassery and Thiruvalla. Skyline has been fortunate to be on a growth gradient for over the past 20 years. It has also received the quality endorsement of ISO: 9001 certification from BVQI. Skyline CEO Abdul Azeez is also the Chairman of the Confederation of Real Estate Developers’ Association of India (CREDAI) Kerala.

PASSLINE

Yasoram: 34 years of trust and engg excellence T

he Yasoram Group completes 34 glorious years in the construction scenario of Kerala, with an unbeatable track-record of creating quality living spaces in the mostsought-after locations. The firm was launched with a noble vision to provide quality housing solutions to the general public at affordable prices way back in 1977. Since then, Mr A R S Vadhyar, the leading light of the company, has traversed a long way, both as a pioneering construction professional and a visionary with a very successful and practical side to his visions.

A R S Vadhyar

Mr Vadhyar made a commitment to himself long ago to contribute constructively to society. Underlining this, he has made his mark in many social activities cutting across class and creed. He is the mastermind behind pioneering concepts like the Skycity revolutionary architectural concepts that can change Kochi’s cityscape for ever. Mr Vadhyar is also renowned for introducing the concept of terrace farming and gardening in India, and has determined to do his best to popularize this novel idea. Yasoram’s completed projects are Indraprasta, Santhivan, Himagiri, Kaanjanjunga, Pancha ratna, Gosreepuram, Indradhanus, Jala darshini, Samridhi, Sowparnika, Ratan, Sreyas, Tejus, Ojus, Diamond Towers, Victoria Towers,Sivadas Towers. Praseeda Apartments, Gandhi Nagar, Kadavanthra; Valluvassery Enclave, Elamkulam; Haridas Apartments, Chottanikkara, and Lakshmi Apartments, T D Road; all in Kochi, are the ongoing projects.

April 30 - May 31, 2011

TRIUM Catering to industry’s needs T

rium Marketing and Consultants Pvt Ltd (TRIUM) was incorporated as a private limited company in the year 2003 with its registered office at Kochi. Company’s main area of interest is Marketing and distribution of reputed building material brands as exclusive distributor.

cements,Roofit industries Ltd and scorpio tiles Pvt Ltd and has a commendable track record.He has ex-

with Japanese Technology by Pionnier Roofings Company Ltd,India. Endurer roof tiles has a

Onduline of France is one of the most flexible, reliable, versatile and cost effective roofing material. It is an extremely tough, lightweight, corrugated roofing material manufactured from bitumen saturated organic fibres under extreme heat and pressure.TRIUM is the authorised partner for ONDULINE for Kerala.

Abhay Kumar P.K leads the Company as its Managing Director. With a commendable track record of 2 decades in professional marketing he acquired knowledge to source, store and distribute an industry’s requirements. Having worked with Corporates like Harrisons Malayalam Ltd.(RPG group) Malabar Building Products Ltd(BIRLA group), Roofit Industries Ltd(MOTWANI group), he would be one of the best professional who has set up his own with a definite vision and focused mission. Mr. Abhay Kumar with his personal rapport with the end users and consultants was very keen on quality at every stage. And that’s a hallmark today for many of the products in the building industry. A reputation which he has built up with his personal effort of 2 decades is such that any product he recommends has its value in the industry today. Mr. Paulson Thelakkat, Director of Trium has been associating with Mr. Abhaykumar all through his profession. As a team, they have created miracles in lowest estimations and photographic delivery. Mr. Paul son has a reputable status in Sales as well as Service. He also has represented a couple of corporates in building material industry. Both of them today enjoy an excellent rapport with the decision makers of the industry. Especially the specifying authorities like architects/ designers and various Govt. Departments. Mr.Balakrishnan is DGM-sales looking after Kerala market is a sales professional having 30+ years experience in Indian oil corporation,carrier aircon, Priyadarsini cements Ltd to name a few.He has worked in all states in south India and in Gulf countries. Mr.Shivanand is DGM-sales is looking after Karnataka is a sales professional with 15 years+ experience and based in blore.he has worked with companies like mysore chip board,scorpio tiles Pvt ltd in sales manager positions and enjoy high reputation in the industry. Mr.Kunhukuttan.,Regional manager –sales is looking after T.Nadu state has experience with JK

treme climatic conditions.TRIUM is the Marketing partner of PIONNIER FOR KERALA.

Clpso from france is the latest in the list.clipso is technical fabric primarily used for false ceiling which can be printed and used for wall covering too.Trium is the exclusive distributor for Kerala,T.nadu,Karnataka and goa.

Abhay Kumar P.K

perience of about 25+ years in sales. Apart from the senior staff members, TRIUM has many asst.managers and sales executives to service the customers.

unique tile securing system minimising wind damage & dislodging, there by withstanding any ex-

Today, TRIUM is known for its reputation and trust in the building material industry. TRIUM’s clients include Geojith BNP Paribas,Asianet,Gokulam Engineering college,SH CMI public school,PSN college of Engg,Indian institute of architects cochin chapter, to name a few. After successfully completing preliminaries as marketing consultants to couple of brands, Trium later ventured into Partnering and Channeling some of the reputed international brands . Trium launched Kronoloc, USA as their first product in the capacity of country partner for India. Kronoloc is a prominent brand of woodenlaminateflooring.The brand is widely used in many hotel,office,commercial projects and residences of celebreties. Wienerberger of Austria was next. The Winerberger group today is the largest producer of clay based building materials such as clay blocks,Rooftiles and claddings operating around 225 plants in US , Europe and asia. Wienerberger products are natural, adhere to the highest quality standards, and provide high living standards and an impressive variety of designs.TRIUM is the channel partner for WIENERBERGER FOR KERALA. Next to be added was Endurer concrete roofingtiles manufactured PASSLINE

April 30 - May 31, 2011

Trium has completed thousands of projects in south India by direct supply and dealer network.Trium now employs about 20 personnel has sales office based in cochin , has branches in Palakad and Bangalore with 50+dealers and operations spanning all over south India.

makes urban life a bliss S

eiken Builders has been making living a good feel rather than mere existence with its decade-long experience in the building sector. It offers togetherness of community living in the lap of nature and helps bring about harmony and fraternity among different people. Seikon provides a life close to nature, which is a rare bliss in urban life today. It is a true blessing if the conveniences of the city are blended with the refreshing ambience of green nature.

vide distinctive individual spaces and privacy, with a host of modern conveniences and amenities for a luxurious lifestyle. Modern amenities including a well-appointed clubhouse, swimming pool, snooker, recreation hall, health club, Wi-Fi system, automatic remote entry system, designer landscaped garden, caretaker room, driver’s resting room and automatic streetlight set the ambience for a safe and secure upmarket social lifestyle. Imported marble is used for the

vision for TV while there is provision for telephone in all bedrooms, living and dining rooms and the kitchen. All the toilets are embellished with superior-quality chromeplated fittings along with provision for geyser. The Sakhariya V K Saleem C S Siraj M K Chairman Managing Director Joint Managing Director kitchen has provision for Kerala Roadways Seiken Properties Seiken Properties water purifier and dishwasher. Facilities like peSeiken Courtyard, a harmonious rimeter compound security system, living and dining rooms while preblend of private homes set within the video door phone system, LPG gas mium vitrified tiles are used in bedambience of community living, conleak sensor, fingerprint lock system rooms and vitrified tiles for kitchen sists of 19 individual villas, and is atop for entry door etc ensure security for and work area. The master bathroom a gentle, natural, elevated terrain, living. is designed with imported marble nestled in a cloak of nature. Each villa, Located just 350 metres from and designer ceramic tiles. All the 1,959-2,848 sq ft, is an inspiration in Thondayadu Bypass, Seiken Courtbedrooms and living rooms have prodesign and aesthetics, crafted to proThat is exactly what Seiken Builders intended while visualizing its latest villa project at Kozhikode, Seiken Courtyard. These luxury villas, inspired by nature as their tagline goes, indeed is a testimony to eco-friendly living.

Infra introduces new concepts I

nfra Housing is a quality-driven company with a strong commitment to its clients for timely delivery of its products and services. Promoted by two technocrats in 1996, the company with its registered office in Kochi is managed by a dedicated team of experienced proGeorge E George fessionals from the industry.

yard lies within close proximity to reputed hospitals, educational institutions, shopping complexes and commercial establishments. Seiken Properties, a fully integrated housing development company initiated by Kerala Roadways Ltd, has been a trusted name in residential and community development projects in Kerala for over a decade. With a host of successful projects both in Kozhikode and Kochi, and over 250 extremely satisfied customers, Seiken continues its commitment to provide high-standard quality, value and efficiency in a trusted and professional manner, making each new project a beautiful home and a wonderful investment.

Relcon Properties Reliable building partner R

speak volumes for its building acumen. elcon Properties is an all-rounder in Relcon is also known for its commitment to the real estate field with a large number of using quality materials and perfection in condistinguished housing projects and corpostruction by strict supervision at evrate offices throughout the State beery stage of project development. sides providing exceptional aftersales service and customer satisfac“Besides luxury hotels and tion. A subsidiary of Kerala’s real esopulent mansions for high-end custate conglomerate Relcon Group, tomers in Kochi and Relcon Properties is known for qualThiruvananthapuram, Relcon also ity construction and an array of differtries its best to meet the acute housT K Alexander ent types of projects. ing needs of Kerala’s IT city. It has Vaidian Relcon has to its credit several shopping malls, corporate buildings, business shops as well as star hotels in and around Kochi and Thiruvananthapuram that

Infra’s core business is building residential apartments and villas but it has also spread its wings to the commercial, hospitality and retail segments. The various completed and ongoing projects are in the best locations in Kochi, and the satisfaction of the customers John George stands testimony to the company’s core values. The promoters have a passion for introducing new concepts in the industry. Mr John George and Mr George E George are the Directors of the company. PASSLINE

April 30 - May 31, 2011

come up with numerous housing projects to suit the varying choices of customers. Customer has the final say,” says Mr T K Alexander Vaidian, Managing Director of the Relcon Group. Relcon Green Woods, off N H bypass, Vyttila, Kochi, Relcon Ashiyana, a gated community villa project, off Kalamassery, Ayur heritage villas at Nedumudi on the Alappuzha-Changa nassery Road, Relcon Travancore Heights, Thiruvalla, and Relcon Castle, Thiruvanantha puram, are a few of the company’s celebrated projects.

HiLITE Builders for premium offices, elite living

ochi having turned the cynosure of all business houses and people, hundreds of promising projects are in the offing and the demand for quality infrastructure is going to rise. To cater to this increasing demand, HiLITE Builders has come out with HiLITE Platino, a rare and precious property for premium office space. As the city centre will be moving to Maradu after the establishment of the New Bus Terminal, this office space characterized by the synergy of different kinds of corporate environments cannot be more ideally located, standing tall among various premium projects. Backed by the experience gained from actualizing some of the biggest projects in the State including Focus Mall, Kozhikode, the first shopping mall of Kerala, and HiLITE Hills, one mammoth of a project that provides ultraluxe living spaces and top-notch office spaces, hi-lite Platino is envis-

aged as a state-of-the-art office complex that would bring together some of the big and better names in the current business scenario. “Needless to say, this office complex would house some of the most advanced concepts in office infrastructure, ensuring an environment that would be most favourable for better business ideas to sprout,” says its Managing Director, Mr P Sulaiman. The project is spread across 1.2 acres of land, 1.3 lakh sq ft office space and 1.8 lakh sq ft built-up area, seven floors and two basement car parks, centralized air-conditioning, power backup, expansive car parking facility, excellent connectivity, cafeteria and other support services. “For once, there is a business solution that would help you cut your costs without cutting corners. What makes hi-lite Platino one of the most cost-effective business solutions is its loca-

Crescent dedicated to quality, value C

rescent Builders, Kozhikode, is dedicated to offering its clients the utmost in quality, choice and value. Its homes carry a signature of its longstanding commitment to excellence in design, quality construction and delivery on time that has earned the trust and respect of home-seekers year after year. A Crescent home comes with all amenities one could ask for in top-class living. One of the most successful and prominent names K V Haseeb Ahamed in the real estate and building industry, the company, with projects like Crescent Gardens, Crescent Gardens Phase II, Crescent Mansion, Crescent Victoria, Crescent Cascade, Crescent Mervue, Crescent Avenue, Crescent Court, KEVI Warehouse and Tanishq Showroom, strictly adheres to quality control, and customer satisfaction is its trademark. Crescent takes care to use only the finest materials in building homes. Crescent Builders is an offshoot of a group of successful companies promoted by Mr K V Kunhammed, a prominent personality on Kozhikode’s business map. Managing Partner of the firm Haji P I Ahammed Koya, a leading name in the export industry, Mr Kunhammed also heads companies dealing in plantation materials, foodgrains, timber, pharmaceuticals, C and F, consumer goods distribution and manufacturing etc. He plays an integral role in the promotion of social activities and education in Malabar. Mr K V Haseeb Ahamed, an MBA from PSG College of Technology, Coimbatore, a young entrepreneur, has picked up the reins of the company as the Managing Partner. Under his able leadership the company has been forging ahead rapidly. The other promoters are Mr C V Mustafa, Mr K V Mohammed Koya and Mr K V Basheer Ahamed. PASSLINE

tion”, reasons its Director, Mr K P Naushad. “So close to the city, but far enough from its rushes, this is a project that can offer you a huge competitive cost advantage, both in acquiring and operating. With options of spaces ranging from 600 sq ft to 7,000 sq ft there is a space for any business,

of any size”, adds another Director, Mr M A Mehaboob. The company’s ongoing projects are hi-lite Hills including HiLITE Plaza (top-notch office spaces), hi-lite Residency (ultraluxe apartments), Spring Dale (luxury villas) and hi-lite Metroma in Kozhikode.

Broad range of projects from RDS RDS Projects Ltd is a leading en-

gineering and general contracting firm, offering building solutions for a broad range of construction and engineering projects. It is a company promoted by professional builders with over 40 years of experience. Its extensive experience cov- John K Manavalan Sunith Goyal ers building of bridges, airport infrastructure, roads, marine structures and hydro projects. RDS’ portfolio of homes, residential projects and commercial developments is well established. “It brings into each of our projects state-ofthe-art technology and innovation, which is on a par with global standards”, say its Directors, Mr Sunith Goyal and Mr John K Manavalan.

Steady growth for Almonard Widely acclaimed for its fans, Almonard Pvt Ltd

had a humble beginning in Mumbai 52 years ago. Its growth since has been steady, with its industrial fans commanding the No 1 position in the country today. The company has also started its home appliances division with mixer grinder, water heater, pumps, irons, toasters,blenders etc, which have been well received by customers. An ISO-certified company, Almonard has two P L Davis branches in Kerala, one in Kochi and the other in Kozhikode. Almonard’s pollution control division produces devices to solve industrial dust problems. The company also manufactures axial flow fans, air curtains and mancoolers for industrial purposes. Mr P L Davis, Regional Manager in charge of Kochi and Kozhikode, has raised the sales within a short period.

April 30 - May 31, 2011

Kent known for exclusive projects K

ent Constructions (P) Ltd took its first step in the building sector with Kent Paradise at Thammanam, Kochi, in the 1990s. The revolutionary design of these villas made the project an instant success and it was even featured in the hit movie Niram. Headed by entrepreneurs from different walks of life, renowned in their respective fields, Kent has over the years focused on offering select projects. The company has earned a reputation for creating exclusive projects. It selects projects and successfully focuses its attention on making these homes the best in the city. Among these are Kent Nalukettu, Kent Illam and Kent Kovilakam, stellar villa projects that pay tribute to Kerala’s rich architectural traditions and cultural heritage, Kent Gopuram, an elegant apartment complex, inspired by historic design,and Kent Glasshouse, a soaring 20-storeyed marvel in the heart of the city.

T P Vinayan

K C Raju

A deep fondness for the rich heritage of Kerala motivates the founders of Kent Constructions and also each member of the

close-knit organization. Many projects are designed to showcase the traditional grandeur of the State’s architecture. The choice of a location is done after much deliberation. The plan also is given much care. The finished product is always seen as a tribute to the customer, a tool to enhance his living experience. “To build quality projects with amenities par excellence, to deploy the best of technology in construction, sophistication in ambience and catering to the customer’s satisfaction is our ultimate goal”, says its Chairman, Mr T P Vinayan. Today Kent Constructions is a name that absolutely resounds with the definition of a builder. “The triumphant years that have passed since our commencement has simultaneously resulted in our carving a niche in the real estate sector of Kerala”, says its Director, Mr K C Raju.

Jomer specializes in new-generation projects J

omer Properties and Investments Pvt Ltd is one of the pioneers in revolutionizing the concept of new-generation construction. Established in 1994 in Kochi, Jomer is popular for quality construction, aesthetic finish, asset value and prestigious investments. The saga of success at Jomer began with its first apartment project, Jomer Residency, in 1998, followed by yet another, Jomer Retreat, in 2000, the spectacular shopping arena in the heart of Kochi, Jomer Arcade, in 2003, a premium apartment in one of the prime locations in the city, Jomer Srinilayam, in 2005, another residential project near Vyttila, Jomer Splendour, in 2006, a combination of luxury and comfort, facing the backwaters and the Cochin port, Jomer Haven, also in 2006, another prime residential complex near Ernakulam Junction railway station, Jomer Avalon, again in 2006 and the multi-prospect investment project near Vyttila, offering commercial space as well as service apartments.

Today, Jomer Properties has acquired a prestigious identity of having successfully completed several residential and commercial projects at prime locations in the city. In its drive to become a trendsetter, on a par with global standards in living and office spaces, Jomer Properties has

M M Jose

successfully completed Jomer Symphony, the tallest building in Kerala. A splendid architectural marvel and the new prominent landmark of upcoming commercial and mobility hub of Kochi,Vyttila, Jomer Symphony is a beautiful combination of newgeneration offices and living spaces topped up with recre-

ation, entertainment and business spaces under one roof. Jomer Symphony is five-star luxury embedded in the most beautiful architectural marvel, standing tall at 28 floors in 1.2 acres of prime land, overlooking Kochi city. “An investment that appreciates in value while you get regular income is almost impossible to conceive of. But at Jomer Symphony, that is exactly what it has in store for the customer. A truly smart investment where his/her business suite along with the 100-odd units will be managed by the promoters”, says the Managing Director, Mr M M Jose. Besides the ever-growing, handsome monthly return (the client may get his/her entire investment back in 6 to 8 years) the appreciation of the capital is going to be beyond one’s wildest imagination. The facilities include multicuisine restaurants, coffee shop, board room and even a helipad too and other modern facilities.

PASSLINE

April 30 - May 31, 2011

Trios, the water management pioneer T

rios, a pioneer in water management products and services, comes under the aegis of M V Bros, Kochi, which was founded as a family-owned business group. Now managed by the second-generation entrepreneurs in the family, Trios is a well-diversified environmental engineering, trading and contracting company with its head office in Kochi and branches in Thiruvananthapuram and Kozhikode. It is amongst the leading water management companies in this region involved in design, supply, erection and commissioning of water/wastewater management systems, swimming pool re-circulation systems and accessories, hydro-pneumatic systems and pressure boosting systems, biological filtration and accessories, fountains and water features, sprinkler and irrigation systems, Jacuzzi and spa equipment and steam, sauna and health club equipment. Trios Pools has been acclaimed as the top-ofthe-line brand in the market sector being on a par with international standards in quality. Today, the company is considered an authority in swimming pools and fountains. It has amassed a large customer base within a span of a few years and has had repeat orders from all of its esteemed clientele. Trios has worksites in South India and also handles overseas projects. It mobilizes resources in no time, complying with all requirements at optimum levels without compromising on quality. Trios’ consultancy division offers services on a turnkey basis. These include designing of swimming pools, supply and installation of equipment and training for effective maintenance. Trios specializes in custom-built commercial fountains, manufacturing/constructing various types of outdoor fountains, waterfalls, custom-made fountains and musical fountains and landscape lighting and accessories for outdoor use. It has been working together with all major Indian and international architectural firms on projects ranging from five-star hotels and parks to shopping malls.

Loading, unloading made easy

ABI Engineering Private Lim-

ited, which has been serving Kerala industries for the last 13 years, has come up with a new revolutionary product called Loading/Unloading Conveyor. According to the company, the Murali product is a gift to industries that face labour shortage and vast development. The conveyor has twin boom-type operation and can be used for loading and unloading, and stacks the bag (max 90 kg)/cartons from the lorry/container directly. The advantages of the equipment are: it can feed directly into the container/lorry from the godown, counting facility, loading and unloading height adjustment, can run on both directions, easy to move since the entire system is on wheel and 24-hour service back-up. It requires only four or five people to load or unload the entire container/lorry, and reduces one-third of human exertion. It needs 2 HP for operation with a hydraulic power pack. The Director of the company, Mr Murali, claims that it has prominent customers like Nirapara Rice, Kerala Feeds, KC Distilleries etc. “Some companies have more than two conveyors”, he adds. The system is also available with ‘telescopic type’ in which the length can be adjusted automatically. The company manufactures all types of conveyors and fabrications.

Service, Amrutha's top agenda Amrutha Electricals, established

market by its service based on ethin 1995 at Palakkad by Mr P ics”, says Mr Ramachandran. Ramachandran, a veteran marketAmrutha has now diversified into ing manager of two decades’ sernew fields and developed new marvice in major capacitor industries in ket areas in industrial appliances the country, later entered the field of such as switchgears, control and distribution of HT/LT/MF capacitors digital analogue measuring instruand water-cooled capacitor ments, motor starters and control panels, Harmonic filprotection systems, autoters and capacitor-related matic power factor correctequipment. Today the firm ing equipment, control panhas developed into a major els, meter boards, submersplayer in its field by dint of ible pump panels etc. It is his dedicated service to custhe authorized distributor for tomers and quick and relimajor brands like Indo able after-sales service. He P Ramachandran Asian, C & S, Moeller, has always been keen to Dhandapani, BCH, Shreem, ensure the best quality in his supMahan, Power KELTRON, Samrat plies and services. He attributes his Sycon, Himlite, Sunny etc. success to his vast experience in Always engaged in market rethe field, which enables him to solve search, Amrutha is on the lookout any applicational problems of his for new areas of automation in the customers. “Amrutha Electricals electrical field. The promoter and his has gained the trust of its customstaff are service-minded and always ers and earned a reputation in the ensure customer satisfaction.

PASSLINE

Anu Solar has clear focus on solar energy Anu Solar Power Pvt Ltd is the re-

sult of the synergy of innovative ideas and commitment to quality by a group of dedicated technocrats. Founded in 1979, it has grown rapidly over the last two decades with a diversified product range and a clear focus on solar energy devices. Anu Solar has well-qualified and experienced professionals who are highly dedicated to providing suitably skilled and talented manpower to clients with a clear understanding of their specific requirements and also guiding candidates to make a worthwhile choice towards a stable career path. The emphasis on quality has led to the company getP J ting the ISO 9001-2000 certification of Bureau Veritas Quality International and the BIS certification. Its FPC solar water heating system panels have the quality seal of the Bureau of Indian Standards (BIS mark) and ETC-based solar water heating systems are approved by MNRE also. “More important is the

April 30 - May 31, 2011

faith reposed by the customers in the entire range of products,” says the company’s Managing Director, Mr P J Joseph. During the past 28 years, the company has gained vast experience in designing and manufacturing of Solar Water Heating Systems and allied products. With a strong design and manufacturing background the company has developed itself as a leading manufacturer of solar energy systems to cater to the complete range of customer requirements. The company has established a wide network of dealers for Anu Solar products who take up marketing and servicing of the prodJoseph ucts. The sole distributor for Kerala is Madathil Marketing at Kadavanthara, Kochi, managed by Mr Justine John. Anu Solar also exports its products to countries like the US, UAE, Uganda, Nigeria and Ghana. It has more than 1,00,000 customers to its credit.

IDEAS

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By K Vijayachandran

Inventions and innovations: India’s bleak future

The Korean Republic, with hardly 5% of India’s population, had 1,66,189 patent applications compared with India’s 24,505 in 2006. The Chinese were nearly 25 times more inventive compared

ndia is the second most populous country, next only to China. It is well known that India’s medal tally in the Olympics or Asiad is hardly commensurate with its population size. China had cornered a large number of medals in the last Olympics whereas our country’s ranking was very low, with just 50 medals. As regards the share in scientific inventions and technical innovations also, India lags behind even smaller countries, if we go by the statistics related to patenting activities reported by the World Intellectual Property Organization (WIPO-

pared with India’s 24,505 in 2006. The Chinese were nearly 25 times more inventive compared with the population, if we go by patent statistics with regard to new inventions and patenting activities. Based on GDP, the Chinese economy was nearly 12 times more innovative compared with that of India if we go by the number of patent applications filed per billion dollars of GDP on a PPP basis. The table brings out the extreme backwardness of India’s inventing communities compared with those of the developed and developing countries. (See table) The abstract statistics given in tabular form are in harmony with real-life experience as well. Industrially developed countries like the US, UK, Japan, Korea and Russia continue to be the leaders in innovative activities. China has caught up with them in a big way in recent years, and in terms of patent registration

with the population, if we go by patent statistics with regard to new inventions and patenting activities. Based on GDP, the Chinese economy was nearly 12 times more innovative compared with that of India if we go by the number of patent applications filed per billion dollars of GDP

h t t p : / / www.wipo.int)

on a PPP basis.

The table alongside summarizes the information on population and patenting statistics for selected countries for the year 2005-2006. The Korean Republic, with hardly 5% of India’s population, had 1,66,189 patent applications comPASSLINE

April 30 - May 31, 2011

per unit of population as well as unit GDP, China is far ahead of India and is fast catching up with the more developed countries in the number of patent registration per year. Global markets are getting flooded with highly innovative Chinese goods: consumer and consumer-durable as well as hightech capital goods. A decade ago Indian markets were flooded with cheap low-quality CFL lamps at onetenth the prices offered by Philips, GE and other global companies. Now good-quality Chinese CFLs are available at half the market prices in select shops and importers in Kochi. Cheap LED technologies for energy-efficient lighting are now rapidly developing in China. Such products have become suddenly popular in the State. At the recent International Exhibition in Delhi on Nonrenewable Energy, organized by the Government of India, the solar PV industry of China was the star performer. It was offering technology and a whole range of production lines for the mass manufacture of solar PV panels. Global toy markets are flooded with highly innovative Chinese toys. And then in thermal and hydro power plants, China is offering

Dearth of vernacular literature on science stiff competition to BHEL on its home ground. In shipbuilding, China has emerged as a world leader. Lenova- and Howai-type initiatives by Chinaâ&#x20AC;&#x2122;s public sector R&D institutions have simply transformed the global markets for IT and communications. Most of the less complex light engineering goods of China, like electronic gadgets, toys, medical electronics etc are developed by worker-innovators, manufactured by small enterprises, and then marketed by giant global trading organizations in the public sector. Unlike India, China has a large army of innovators amongst its lay working people, who have easy access to the global markets and modern technologies. Patents, national standards, design drawings, tech-

in English. There are hardly any good textbooks in Indian languages for teaching and learning science, technology or management. The Institution of Engineers (India), Indian Medical Association, Institution of Chartered Accountants, management associations and other professional bodies refuse to speak in the vernacular. Their journals, as a rule, are published only in English. No worthwhile S&T literature exists in Indian languages. O&M manuals of equipment sold in the country are generally in the English language. Even our drug and pharmaceutical laws do not compel drug manu-

TABLE: PATENT STATISTICS IN INDIA AND OTHER SELECTED COUNTRIES-YEAR 2006 Country

Population Million

No of Patents filed

Patents Per Billion $ Patents GDP Per Million Popln

India

1095

24,505

China

1305

210,501

Korea

166,189

122

2591

USA

296

425,966

742

Japan

126

408,674

2720

Germany

60,585

583

25,745

290

143

37,691

196

Russia

nology sheets etc are available in Chinese languages. Unlike in India, one need not be an academic or proficient in English for accessing S&T, which is taught and learnt in the native languages of China. Scientists, engineers, management experts, administrators and other professional classes in India seem to believe that university or higher education in general and professional education in particular have to be taught and learnt only

facturers to provide essential information in the language of the drug users. PWD Standards and specifications that should guide the construction and maintenance of public works in different regions are produced and published only in English, and not in the local languages. National Standards serve as an extremely effective instrument for dissemination of valuable S&T information. However, our Bureau of Indian Standards (BIS) speaks only English and a little bit of Hindi, some-

times. BIS does not even recognize the massive market potential for the tens of thousands of national standards if they could be published in Indian languages. The intelligentsia and elite classes of our country have a deep-rooted vested interest in the continuation of English as the medium of higher education as well as the language of S&T in the country even after six decades of national independence, in addition to serving as the virtual official language of the Union Government. The situation serves their selfish interests on two counts: first, it provides them with global mobility and plenty of value to their skills in the international market; secondly, it helps them to perpetuate their hegemony over the rest of society, as in the good old days when Sanskrit was considered the Veda Bhasha as well as the Deva Bhasha.

In feudal Europe, Latin had played the role of Sanskrit in India. As industrial revolution swept over Europe, Latin was replaced by modern European languages like English, French, Italian, Spanish or Portuguese as the language of S&T as well as the medium of higher education in universities. This was European renaissance when literacy was rendered universal and compulsory and the entire mass of working people got exposed to the brave new world of science and technology. Working people turned inventors and innovators in their thousands in every European country. Inventions like the steam locomotive, flying machines, the bicycle, telegraph, the telephone, electric lamps, clock towers, pumps and power stations were mostly the creative contributions of craftsmen and journeymen and not of academics of royal societies. The numerous Eurasian nationalities, small and big, under the Czar of the Russian Empire started using their own mother tongues as the language of S&T and the medium for higher education soon after their liberation and set up their own republican universities under the Soviet regime. The present-day CIS countries, from Ukraine to Azerbaijan and Mongolia, have academic and research institutions today comparable to the best in our own country, and their societies are far more innovative if we go by WIPO statistics. The data reveals frightening backwardness of India with regard to creative innovations of our people on the one hand and the national economy on the other. This is a self-aggravating defect and needs urgent correction.

PASSLINE

April 30 - May 31, 2011

SECIAL ECONOMIC ZONES

The Minimum Alternate Tax (MAT) is levied on the book profits of the companies which otherwise are not liable to taxation either because of exemptions or making losses. The flat rate of 18.5% on the income applied in the Finance Act is regarded by industry circles as rather harsh and untimely. They feel that the achieving of the declared twin objectives of enhancing India’s exports and ensuring a favourable balance of trade despite the global meltdown experienced during the last few years has not been given due credit by the Government. By P D Johnny (pdjohnny@yahoo.in)

Unwelcome MAT for SEZs T

he apprehensions raised by this author in his article in this journal (November 2010, ‘SEZs—Roadblocks Again’) on the possibility of levying taxes on hithertotax-exempted special economic zones (SEZs) set up under the SEZ Act 2005 have become true. The provisions in the Finance Act 2011-12 passed by Parliament on March 21, 2011, have certainly dealt a severe blow to the aspirations of the SEZ operators—both in the infrastructure and production segments. The Finance Act, in ef-

fect, withdrew the exemptions enjoyed by these builders of SEZs and units in them under Section 10 AA and 115 JB of the Income Tax Act and in one stroke brought them under the Minimum Alternate Tax (MAT) to be levied at 18.5%. This move by the Government serves as a dampener for those entrepreneurs who were lured into these highly capitalPASSLINE

intensive ventures by the tax concessions offered when the idea was conceived by the Government of India at the initiative of the then Minister of Commerce and Industry, Mr Kamal Nath. Tax concessions of various types were then promised till 2014 and a large number of SEZ proposals were approved by the Board of Approval (BoA) comprising Union Ministers of key ministries and consequently notified by the Ministry of Industry and Commerce from 200506 onwards. In order to attract and motivate the entrepreneurs to accomplish the twin objectives of significantly increasing exports and generating employment opportunities to absorb the abundant human resources available in the country, the clearances were rushed at breakneck speed, unheard of in bureaucratic circles. This prompted large numbers of ambitious entrepreneurs from within and outside the country to set up SEZs in various parts of the country. Thousands of hectares of lands were acquired even using Government machinery under the Land Acquisition Act for setting up SEZs in both the industries and services sectors, thereby giving a boost to the economy. The discussions preceding the introduction of the Direct Tax Code (DTC) effective from 2012 fiscal had hinted at the possibility of taxation of the SEZs causing ripples in commerce and industry circles. Concerns were expressed by different quarters on the possible adverse impact of such a move on the operations of the existing SEZs as well as the fate of those in the pipeline. During this period of uncertainty, the flow of SEZ proposals became slow and the process of clearance also moved at a snail’s pace. Even in the initial period, the enthusiasm shown by the Industries and Commerce April 30 - May 31, 2011

Ministry under Mr Kamal Nath was not shared by the Finance Ministry, then under Mr P Chidambaram who felt that the loss of revenues by way of tax concessions would be enormous and a developing country like India could not afford to indulge in such largesse. Mr Kamal Nath, however, had argued that setting up and operationalizing more and more SEZs would result in substantial growth in export of goods and creation of large-scale employment opportunities, gains from which would more than offset the revenue losses. The present Industries and Commerce Minister, Mr Anand Sharma, It transpires from the recent developments, does not seem to be as persuasive and convincing as his predecessor and perhaps has not been able to influence the policies followed by the present Finance Minister, Mr Pranab Mukherjee. Even after the imposition of MAT on SEZs, the protests by the Commerce Minister had been rather feeble which failed to evoke any positive response from the Finance Minister. The MAT is levied on the book profits of the companies which otherwise are not liable to taxation either because of exemptions or making losses. The flat rate of 18.5% on the income applied in the Finance Act is regarded by industry circles as rather harsh and untimely. They feel that the achieving of the declared twin objectives of enhancing India’s exports and ensuring a favourable balance of trade despite the global meltdown experienced during the last few years has not been given due credit by the Government. The figures released by the Ministry of Industries and Commerce for the nine-month period of April-December 2010 indicate that the overall exports from the country have gone up by 47% to Rs 2,23,132 crore, which is arguably the outcome of the significant contribution from the 130 operational SEZs as the exports by them had outperformed at 115%. The number of new jobs created has also gone up correspondingly. Armed with these facts and figures, Mr Anand Sharma made attempts to stall the taxation move: it however did not appear To page 33

INVESTING

By Shinin Sunny

Saving for tax exemptions O

Stamp duty and registration charges for a home: The amount one pays as stamp duty

ne can make the best use of the options available for exemption under the Income Tax Act for investments. An important point is that one can not only save tax by undertaking the specified investments but some expenditure which one normally incurs can also give the tax exemptions.

no tax on it at all. This benefit is available to everyone, irrespective of their income levels. Thus if a person is in the highest tax bracket of 30%, and invests the full Rs 1 Lakh, he saves Rs 30,000 in tax. Let us have a look at the qualifying investments under this section.

Most income tax payees try to save tax by saving under Section 80C of the Income Tax Act. However, it is important to know the section in toto so that one can make the best use of the options available for exemption under the IT Act. An important point is that one can not only save tax by undertaking the specified investments but some

PF and voluntary PF: Provident fund is automatically deducted from the salary. Both employee and employer contribute to it. While the employer’s contribution is exempt from tax, employee’s contribution is counted towards section 80C investments. A person also has the option to contribute additional amounts through voluntary contributions (VPF). The current rate of interest is 8.5% per annum and is tax-free.

when buying a house and the

PPF: Among all the assured returns small saving

amount paid for the registration of the documents of the house can

children can also be included in Section 80C deduction. However, life insurance premium paid for one’s parents (father/mother/both) or in-laws is not eligible for deduction under section 80C. If one is paying premium for more than one insurance policy, all the premiums can be included. Unit-linked insurance policies (ULIPs) are also eligible for benefits under this section. It has, however, to be ascertained whether the ULIP is exempted under 10(10)D for the maturity proceeds. ELSS: There are some mutual fund (MF) schemes specially created for offering tax savings, which are called equity-linked savings schemes (ELSS). The investments that one makes in ELSS are eligible for deduction under section 80C. Home loan principal repayment: The equated monthly instalment (EMI) that one pays every month to repay home loans consists of two components, principal and interest. The principal qualifies for deduction under section 80C. Stamp duty and registration charges for a home: The amount one pays as stamp duty when buying a house and the amount paid for the registration of the documents of the house can be claimed as deduction under section 80C in the year of purchase of the house.

be claimed as deduction under section 80C in the year of purchase of the house.

expenditure which one normally incurs can also give the tax exemptions. Section 80C states that qualifying investments, up to a maximum of Rs 1 Lakh, are deductible from income. This means that one’s income gets reduced by this investment amount (up to Rs 1 lakh), and one ends up paying PASSLINE

schemes, public provident fund (PPF) is one of the best. The current rate of interest is 8% tax-free and the normal maturity period is 15 years. The minimum amount of contribution is Rs 500 and maximum Rs 70,000. The interest rate is assured but not fixed. Life insurance premiums: Any amount that one pays towards life insurance premium for self, spouse or

April 30 - May 31, 2011

NSC: National Savings Certificate (NSC) is a six-year small savings instrument eligible for section 80C tax benefit. The rate of interest is 8% compounded half-yearly, ie, the effective annual rate of interest is 8.16%. If you invest Rs 1,000, it becomes Rs 1,601 after six years. The interest accrued every year is liable to tax (ie, to be included in the taxable income) but the interest is also deemed to be reinvested and thus eligible for section 80C deduction. Infrastructure bonds: Popularly called infra bonds, these are issued by infrastructure companies, and not the Government. The amount that

Schemes eligible for deductions you invest in these bonds can also be included in section 80C deductions. Pension funds: section 80CCC: Section 80CCC stipulates that an investment in pension funds is eligible for deduction from one’s income. Section 80CCC investment limit is clubbed with the limit of section 80C: it means that the total deduction available for 80CCC and 80C is Rs 1 lakh. This also means that the investment in pension funds up to Rs 1 lakh can be claimed as deduction under section 80CCC. However, the total deduction under section 80C and 80CCC cannot exceed Rs1 lakh. Bank FDs for five years: Tax-saving fixed deposits (FDs) of scheduled banks with tenure of five years are also entitled to section 80C deduction. SCSS 2004: A recent addition to the section 80C list, Senior Citizen Savings Scheme (SCSS), is the most lucrative scheme among all the small savings schemes but is meant only for senior citizens. The current rate of interest is 9% per annum payable quarterly. The interest is payable quarterly instead of compounded quarterly. Thus unclaimed interest on these deposits won’t earn any further interest. Interest income is chargeable to tax. Five-year POTDs: Post office term deposits (POTDs) are similar to bank fixed deposits. Although available for varying time durations like one year and two, three and five years, only five years’ POTDs currently offering 7.5% rate of interest qualify for tax-saving under section 80C. The effective rate works out at 7.71% per annum as the rate of interest is compounded quarterly but paid annually. The Interest is entirely taxable. Nabard rural bonds: There are two types of bonds issued by the National Bank for Agriculture and Rural Development (Nabard); Nabard rural bonds and Bhavishya Nirman bonds (BNBs). Out of these, only the rural bonds qualify under section 80C.

listed above, there are some other things, like children’s education expense (for which needs receipts) that can be claimed as deductions under section 80C. Similarly medical insurance (mediclaim) policies also help one to save tax. The deduction can be claimed on total income computed for calculation of income tax of an amount paid as a premium for medical insurance if the following conditions are satisfied; 1. Insurance premium is made to a general insurance company against a medical insurance (mediclaim). 2. Payment should be made by an individual, for himself or his family or a Hindu undivided family (HUF) for its members. 3. Payment is made by any mode other than in cash. Deduction is allowed for the amount of premium paid up to Rs 15,000 in case of self and dependent children. An additional Rs 15,000 is allowed for premium paid towards the medical insurance of parents, ie a total deduction of Rs 30,000 can be claimed towards medical insurance premium of self, children and parents. Further, if any of the above is a senior citizen (above 65 years), an additional deduction of Rs 5,000 shall be allowed towards premium payment of that senior citizen, ie in the case of senior citizens the above limit of Rs 15,000 shall be upgraded to Rs 20,000. For example, if A is 45 years of age and pays medical insurance premium of himself and his wife amounting to Rs 20,000, he also pays the premium of medical insurance of his parents amounting to Rs 20,000, he shall be allowed a total deduction of Rs 35,000 (Rs15,000 self and wife plus Rs 20,000 for senior citizen parents). Similarly, deduction up to Rs 15,000 or Rs 20,000 as the case may be can be claimed by a HUF towards payment of medical insurance premium of its members. (The author’s email address is shinin@aimsinsurance.in)

Apart form the major avenues

'Govt has gone back on its assurance' From page 31

to have found favour with the Finance Minister who had to make both ends of income and expenditure meet. Industry circles, more particularly the IT sector, feel that the taxation is a big let-down and the Government has gone back on its own earlier assurance to allow the SEZs to enjoy concessions till 2014. NASSCOM, the representative body of trade and commerce, apprehends that the move would send wrong signals globally and might prove to be a deterrent to aspiring entrepreneurs interested in setting up SEZs in the country. The IT sector has adequate reasons to be nervous and panicky because most of the operational SEZs are in that sector. The large-scale setting up of IT units in the SEZ module was prompted by the fact that the concessions presently enjoyed by that sector under the Software Technology Parks of India [STPI] scheme, would come to end in March 2012. The spirit of this sunrise industry is apparently dampened by the taxation proposals which are expected to impact their cash flow. They are also distressed at the failure of the Government to declare any new scheme to keep their hopes alive. The rationale for withdrawal of exemptions under the Income Tax Act was explained by the Central Board of Direct Taxes while the discussions on the Finance Bill were on in Parliament. It is argued that the tendency of the SEZ entrepreneurs was observed to be to set up more units in the services sector, more particularly in the IT segment. The share of the manufacturing segment in the industries sector had been lower than expected and this sector’s contribution to the GDP has not been rising at a healthy level. Of the 130 operational SEZs in the country, as many as 75 are in the

PASSLINE

April 30 - May 31, 2011

IT sector. The ventures in the services sector, more so the IT segment, are quick-realizing and have proved to be more profitable. This imbalance and mismatch in the economy needs to be corrected and the imposition of taxation earlier than envisaged should send the right signals to the industry operators for a course correction. In addition, the Government has been exploring ways and means to broadbase the tax net to mobilize more revenues to support its development efforts. It is therefore difficult for the Government to withdraw or even to reduce the tax burden. The taxation move will definitely have far-reaching implications in the economy. The SEZs have been set up deploying huge capital—mostly borrowed from banks and financial institutions. The reduced cash-flow of the SEZs would certainly impact their debt-servicing and repayment capacity which in turn would adversely affect the financial strength of the lending institutions which, till now, had withstood the pressures on account of the global meltdown and other adverse factors. The SEZs which were once heralded as ‘development engines’ capable of accelerating the pace of economic development in the country are slowly losing their sheen. Fresh investments in this segment might not be forthcoming in a big way and the taxation move would certainly prove to be a real road-block for the future development of the economy and the country’s efforts to take economic growth to double-digit figures. Incidentally, the southern region of the country leads in the number of operational SEZs, most of which have been set up in the IT sector. Of the 130 hitherto-operational SEZs, 81 are in the southern States, Andhra Pradesh accounting for 32, Tamil Nadu 22, Karnataka 20 and Kerala 7.

NEWS

Infosys is in for change and continuity Passline News Service

ICICI Bank to become the early bird in areas like insurance, retail lending, internet banking, online trading, business process outsourcing and commodities trading. Mr Kamath served as ICICI Bank’s Managing Director and CEO from May1, 1996 until his retirement from executive responsibilities on April 30, 2009.

n a major top-level management restructuring, India’s secondlargest software firm Infosys has named veteran banker K V Kamath the new Chairman to succeed founder N R Narayana Murthy, who has been made Chairman Born in Mangalore, Emeritus for life. Going for Karnataka, Mr Kamath took both change and continuhis BE in Mechanical Engiity, Infosys Technologies neering in 1969 from the has also appointed current K V Kamath Karnataka Regional EngiChief Executive Officer and neering College (now NaManaging Director S Gopalakrishnan tional Institute of Technology as the Executive Co-Chairman and Karnataka) in Surathkal. He later had promoted current Chief Operating Ofhis master’s from the Indian Institute ficer (COO) S D Shibulal as CEO and of Management, MD. Mr Shibulal is succeeding Mr Ahmedabad (IIM-A) Gopalakrishnan. The appointments in 1971. are effective from August 21, 2011. Mr Kamath, 63, is currently an independent Director on the board of Infosys. He is the non-executive Chairman of ICICI Bank, the country’s largest private lender. Over the years he has shown his skills in guiding

Joining ICICI (Industrial Credit and Investment Corporation of India) in its Project Finance Division, he Kris Gopalakrishnan

in 1996-98, which led to the formamoved on to different departments to tion of ICICI Bank. gather experience which included setting up of new businesses such At Infosys, Mr Murthy is demitting as leasing, venture capital, credit ratoffice upon attaining the age of 65. ing as well as handling general manThe board, however, has now deagement positions. It was he who cided to increase the age of the Chairinitiated and implemented ICICI’s man to 70, though the computerization programme. founders will retire at 65. The He has generally been credcompany will also name ited with expanding ICICI’s three new Directors by June business to evolve it into a 11, 2011. technology-enabled financial The name of Infosys Techorganization catering to the finologies has been changed nancial needs of corporate to Infosys Ltd to reflect the and retail customers. Narayana Murthy diverse nature of its business, In 1988, Mr Kamath from consulting to technology. joined the Asian Development Bank, Headquartered in Bangalore, Manila, but in 1996 returned to ICICI Infosys has 64 offices and 63 develas its Managing Director and Chief opment centres across the US, the Executive Officer. UK, China, Australia and Japan, He was instrumenamong other countries. The company tal in expanding the and its subsidiaries had a workforce group’s services to of 1,30,820 as of March 31, 2011. retail customers Infosys, over the years, has played a and initiated a seleading role in building the respect ries of acquisitions that Indian IT professionals comof non-banking fimand in every corner of the world. nance companies S D Shibulal

Nettikadan: a synonym for textbooks T

he success of Andrew Nettikadan, the founder of the Nettikadan Group of Companies, is one part daring, one part grit and determination. He bought up the loss-laden bookshop of his uncle half a century ago and not only made it profitable but what was later to become one of Kerala’s, nay, the country’s, best-known publishers of school textbooks. Nettikadan Corporation, now prints and sells 45 lakh-50 lakh textbooks a year and owns more than 420 titles. It has today

2,000 schools following the textbooks not just in Kerala but in Tamil Nadu, parts of Karnataka particularly in Bangalore and in the Gulf. It was in 1958, when he was barely 21 years of age, that his uncle Thomson ‘invited’ Andrew to Kochi where Thomson, himself a writer of eminence in English, was running a bookshop, Joseph Thomson and Sons. Andrew was then spending his days at Meloor, a sleepy village near Chalakudy, learning typewriting after his SSLC exam. A few months after Andrew relocated to Kochi and started helping Thomson in business the latter wanted to call it a day. His business was not generating enough revenue, one reason why he wanted to quit. Would Andrew take control of the business and relieve him? Andrew courageously accepted the challenge.

The first thing he did was to replace the kinds of books that used to be stocked there with books procured from such publishers as Vidyarthimithram and Assisi. The books were bought on credit as he hardly had any money with him. He also sold books published by North Indian firms. During 1962-63 he published two dramas and a few English books too. The bookshop was then situated on South Railway Station Road. Sitting there he used to watch children going to the nearby Girls High School. He thought of doing something for them. Taking the help of a teacher who was a relative of his Andrew started getting books for classes 1, 2 and 3 printed. He also took up distribution of Government textbooks and began selling guides and notebooks. During those days the Government used to bring out only Malayalam books. Andrew, with the help of some teachers, then had books on other subjects like science, social science and mathematics printed. The trust he formed, Kerala Private School Examination Board (KPSE), aimed at publishing textbooks and setting question papers, helped further promotion of the business and enabled his company to compete successfully with North Indian publishers. Besides conducting comPASSLINE

petitive exams for school students throughout Kerala simultaneously, it also conducted educational and entertainment programmes continuously from 1966 to 1976. Another path-breaking step he initiated was the inclusion of registration numbers in question papers, a practice the Government itself followed later.

Andrew Nettikadan With this, question papers on every subject started carrying a number. Then came Nettikadan Corporation’s decision to print and publish books for KG classes in accordance with the syllabuses (both for ICSE and CBSE), which were prepared in association with teachers’ organizations. Orders started pouring in for guides, course textbooks and KG texts. These were prepared and published for both Malayalam and English-medium students. The books published under the banners of Jetco and Nettikadan have achieved the status of brands. They were in sharp contrast to those which used to be brought earlier from North India. Nettikadan’s Junior

April 30 - May 31, 2011

Reader brought out in those days was an all-time hit. Lakhs of copies of the book were printed. Surprisingly for an empire, which distributes lakhs of printed books, from KG classes to Class V, in many parts, there are no distributors or agents for Nettikadan. Books are sent to schools directly by the company. There is not even a branch. The only ‘agent’, if he can be called one, is a man who stays at Sivakasi in Tamil Nadu, where most of the books are printed, to oversee the printing operations. Some printing is also done in Mumbai now. A man who has constantly looked for daring ways to prove himself, Andrew, at 73, went in February last year on a tour of Antarctica.. He has so far undertaken 47 trips to almost all the continents. A writer too, Andrew has authored a book on Jesus Christ, specially meant for children, and another on his travels abroad. Among his four children, only one, Varghese, works for the company. Thomas, the other son, is doing business in Doha, Qatar. His two daughters, Livi and Sini, are happily married. Livi is the wife of Dr Kunjumon, a reputed cardiologist. Sini’s husband is Dr Joseph Francis, a medical college professor. Andrew’s wife Unniyamma, very active still, helps Andrew in controlling office finance.

35 Cyriac Davies KITCO MD

Pratip Chaudhuri SBI Chairman Mr

Pratip Chaudhuri has taken over as the new Chairman of the State Bank of India. Mr Chaudhuri, 57, has been working with the bank for 37 years and takes over from Mr O P Bhatt. Before taking up the top position Mr Chaudhuri was Deputy Managing Director in the international banking division of the bank.

M r Cyriac Davies has assumed charge as the new Managing Director of KITCO, one of the premier public limited technical consultancy organizations in India.

P C Cyriac Fed Bank Part-time Chairman

Mr Davies, who joined KITCO in 1982 as a young professional, was working as its Executive Director. It was according to the design and under the leadership of Mr Davies, who is an MTech in Civil Engineering, that more than 300 major engineering projects implemented by KITCO were realized around the country. These projects include the Kochi International Airport which was the first greenfield airport in the country built under public-private partnership (PPP), the first- ever Marina in India built at Bolghatty island, Kochi, India’s first titanium metal plant at KMML, Chavara, the first-ever spices parks in the country at Chindwara in Madhya Pradesh, Puttady in Idukki, Kerala, etc.

Mr P C Cyriac has been appointed Parttime Chairman of Federal Bank Ltd with the Reserve Bank of India having given its nod to the proposal. Mr Cyriac, a former IAS officer, has been a member of the bank’s Director Board since September 2004.

New Vice-Chairman of SCMS Group Mr

N Sreekumar has taken over as the new ViceChairman of the SCMS Group of Educational Institutions. He has served as the head of the Kerala operations of Apollo Tyres and was the Chairman of the Kerala State Productivity Council, Chairman of CII-Kerala, President of the Kerala Management Association and Cochin Chamber of Commerce and member of the Cusat Syndicate.

Stark wins Agency of the Year award S tark

Mediamate (bronze 1); 141 Sercon (silver 1, finalist 2); Mudra South (silver 2); Chirpi Elephant (bronze 1, finalist 1); M&M Connect (bronze 1); Radio Mango (silver 2); Publicis (bronze 1); George P John (finalist 1).

Communications has won the Agency of the Year award in the fifth edition of Pepper2011, the annual creative award competition of the Advertising Club of Cochin. The award is on the basis of maximum points received in all categories of the competition. Karnataka Tourism and Classic Polo shared the Advertiser of the Year award. Pepper 2011 was open to agencies from all over South India with more than 700 entries from 55 agencies vying for the honours this time. Dias, founder, Taproot India; Priti Nair, founder, Curry-Nation; Raj Nair, Regional Creative Director, South and Mumbai Contract Advertising; and Dinesh Warrier, digital media expert, evaluated the entries and selected the winners. “We hope to invite agencies from all over the country to com-

Winners (Kerala Category):

pete for the creative awards in the coming years. Our endeavor is to make the competition a globally benchmarked premium event every year,” said Sudeepkumar T, President of the Advertising Club of Cochin, at the award-giving function in Kochi on April 2. The following are the winners: (General Category): Jelitta Publicity (silver 1, bronze 1, finalist 1); Maitri Advertising (silver 1, bronze 1); Brand New Creatives (silver 1); Black Box (bronze 2); Nirvaana Films (gold 1, silver 3, bronze 1, finalist 4); V-Eye Films

(bronze 2); Think Pot (bronze 3, finalist 1); Images (bronze 1);TCC (gold 2, silver 1, bronze 1, finalist 1); Fresh Lime (gold 1, silver 2); JWT Mindset (Silver 2); Stark Communications (gold 3, silver 2, bronze 4, finalist 2); Fingerprint (gold 1, silver 2, bronze 4); One MG (silver 1, bronze 2]; Leo Burnett (silver 1, bronze 2); Breakthrough Communications (silver 1, bronze 3); Magnum Intergraphics (silver 1); Mantra Communications (silver 1); Ad India (gold 1); Ogilvy & Mather (bronze 2, finalist 1]; Takashi Waltar Media (silver 1, bronze 1);

Club FM (ilver 1, bronze 1); Identiti (bronze 1); Mudra South (finalist 1); Breakthrough Communications (bronze 1); Guide Advertising (silver 1); Teekeycee (bronze 1); Stark Communications (bronze 1); Jelitta Publicity (bronze 1); Graphic Telemation (silver 1); Takashi Waltar Media (silver 1); Rushes Production (silver 1).

Kitex Garments Ltd has posted a net profit of Rs 20.63 crore this year, against the previous year’s Rs 18.5 crore. It has declared a dividend of 40%. The total income for the year is Rs 256 crore (Rs 267.5 crore). Earnings per staff (EPS) has spurted to Rs 4.34 from Rs 3.90. Asset Homes Managing Director K A Mohammed Salim and Directors K Anil Varma and V Sunil Kumar pose after receiving the CNBC Awaaz CRISIL CREDAI Award from Union Minister of Urban Development Kamal Nath in Singapore. PASSLINE

April 30 - May 31, 2011

M r John Paul has assumed office as President of TIE Kerala. He is the Managing Director of Popular Vehicles and Services. As one of the founders of TIE Kerala Mr John Paul is the former President of the Kerala Chamber of Commerce and Industry.

Arun Kumar Gupta TELK MD M r Arun Kumar Gupta has assumed charge as the Managing Director of Travancore Electrical Limited Kerala (TELK). He was serving as the General Manager of NTPC Electric Supply Company (Business Development).

Turrino India (silver 2, bronze 1); Radio Mango (silver 1, bronze 2); Maitri Advertising (bronze 2, finalist 1); Organic BPS (bronze 1);

Kitex net Rs 20.63 cr; dividend 40%

With a share capital of Rs 4.75 crore Kitex has a reserve fund of Rs 68.87 crore. The company’s products are mainly exported.

TIE Kerala President

Gigo Joseph Infopark CEO M r Gigo Joseph has been appointed Chief Executive Officer (CEO) of Infopark, Kochi. He had worked with Infosys as the Group Manager for four years. Mr Joseph started his career in information technology at IBM and shifted to IT majors like UTSTARCOM and 3Com in the US. After working in the US for 12 years he came back to Thiruvananthapuram and joined Infosys. Mr Gigo has acquired MBA from Northern Illinois State University in America and a master’s degree in computer science from DePaul University, Chicago, US.

SIB net at Rs 293 cr; plans to raise Rs 1,000 cr

Dhanlaxmi Q4 net up; dividend at 5%

Total business grew by 78.4% to Rs 21,595 crore from Rs 12,105 crore for the quarter ended March 31, 2010. The bank’s loan book witnessed sharp growth largely because of a greater thrust to the retail segment and diversification across regions. Total advances and total deposits continued to rise during the quarter registering a year-on-year growth rate of 81.1% and 76.5%, respectively. Mr Bipin Kabra, the bank’s Chief Financial Officer, says: “Our focused approach to improving productivity across all business verticals has resulted in a significant increase in profits. It marks the beginning of a

sustainable turnaround in our financial performance. With strong fundamentals and a robust business portfolio we are confident of delivering long-term growth for our customers and shareholders.”

South Indian Bank has declared a net profit for the year at Rs 293 crore as against Rs 234 crore during the previous year. A dividend of 50% has been recommended this year as against 40% for the previous year.

Total income increased from Rs 182.4 crore in Q4FY10 to Rs 342.2 crore. Non-interest income rose from Rs 31.9 crore to Rs 46.1 crore “as a result of the focused thrust to feebased businesses. Net interest margin (NIM) improved to 3% for the quarter ended March 31, 2011, compared to 2.7% in the corresponding quarter of last year.

Total business increased by Rs 11,393 crore from Rs 39,127 crore to Rs 50,520 crore while deposits have gone up by Rs 6,709 crore from Rs 23,012 crore to Rs 29,721 crore. Advances have also increased by Rs 4,684 crore from Rs 16,115 crore to Rs 20,799 crore.

SIB has 641 branches as of today, having opened 61 new branches and 124 ATMs during the year. The total number of outlets has crossed 1,000. The branch network now covers 26 states including far-east regions like Assam and Meghalaya giving it a pan-India profile. It plans to open 60 more branches during 2011-12.

Total income is Rs 2,642.71 crore as against Rs 2,144.18 crore for the previous year. The net interest margin is 3.06 (2.77). The capital adequacy ratio is healthy at 13.17% (under BASEL I) and 14.01% (under BASEL II) as against the regulatory requirement of 9%.

SIB’s Certificate of Deposits carries the highest rating of ‘PR1plus’ by CARE ratings. It was selected recently as the ‘best bank in the private sector’ in the Business World PriceWaterhouseCoopers survey and also by the Kerala State Forum of Bankers Club.

The bank plans to raise capital Rs 1,000 crore during the current fiscal.

The bank is planning to float an NBFC as a subsidiary company. It is also to commence bullion trading during the first quarter of the current fiscal.

The gross NPA ratio declined from 1.54% as on March 31, 2010 to 0.74% as on March 31, 2011. NPAs worth Rs. 10.41 crore were recovered during the year. Net profit for the year rose by 11.8 % to Rs 26.1 crore, compared to Rs 23.3 crore in the previous year. The board also recommended a dividend of 5% for the year ended March 31, 2011 subject to Reserve Bank of India approval.

Federal Bank posts 47% growth in net profit Federal Bank has registered a net profit of Rs 171.72 crore with 47% growth in the fourth quarter (Rs 116.85 crore in the previous quarter). The bank has also posted a net profit of Rs 587.08 crore for the year 2010-11, the highest in its history. The total income for the entire fiscal increased by 8.67% to Rs 4,568.84 crore. The income on interest is Rs 4,052.03 crore. It was Rs 3,673.23 crore in 2009-2010.

Total business increased by 18.98% at Rs 74,968 crore. Total deposit rose to Rs 43,014.78 crore. Advances reached Rs 31,953.23 crore. Average cost of deposit slumped to 5.99% from 6.55% in March 2011. The increase in corporate loans is 45% and in SME loans 27.6%. Retail loans reached Rs 9,436 crore. Loans to the priority sector are 41.2% of the total loans. Rs 3,749 crore was disbursed to the farm sector. The NPA is 0.60% against 0.48% in March 2010. The capital adequacy ratio (BASEL II) is 16.79% as against the Reserve Bank norm of 9%. The income per share is Rs 34.32 and the book value is Rs 298.67. In March 2010 it was 27.16 and 274.22 respectively. The bank has 743 branches and 804 ATMs. In the previous fiscal it had started 71 new branches and 73 ATMs and in the current fiscal it is planning to start 200 new branches and ATMs in selected centres.

WA N T E D

Dhanlaxmi Bank has announced a net profit of Rs 11.2 crore for the fourth quarter ended March 31, 2011, an increase of around 100% from Rs 5.6 crore for the corresponding period in the previous year. Strong growth in net interest income and overall growth in business led to improved margins and profitability, according to the bank.

PASSLINE

Because of extensive monitoring and recovery measures, net NPA has

improved to 0.29% as on March 31, 2011 from 0.39% as on March 31, 2010. Gross NPA stands at 1.11% (1.32%).

PASSLINE, Kerala’s only business magazine in English, with a 16-year track record, needs professionals for the following posts:

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EDUCATION

By Dr S Sree Kumar

he motto of the CMS Group of Institutions—‘Challenge Meets Success’—is enshrined in the radical idealism and inventiveness of a group of ‘expatriate’ Malayalees of Coimbatore, Tamil Nadu, and their continuous struggle to overcome the challenges that came in their way.

The achievements of CMS College of Science & Commerce for the past 23 years stand testimony to the vigour and restless refashioning, which are characteristic features of the trust. From an institution that offered just three undergraduate (UG) courses, the college has grown into one that offers 17 UG and 14 postgraduate (PG) courses. In 1988, the college had fewer than 50 students in make-shift classrooms at Ganapathy, Coimbatore. By 2007 it had more than 3,500 students on an expansive 36acre campus with state-of-the-art infrastructure at Chinnavedampatti, a suburb of Coimbatore. Further, the college has become an autonomous institution, accredited at the ‘A’ level by NAAC and with ISO 9001: 2000 certification.

The CMS Educational and Charitable Trust, established in 1988, was the progeny of the Coimbatore Malayali Samajam which represented and still represents the vast majority of the Malayalees of Coimbatore. At the initial stages, the trust had nothing substantial to build on except a moderate capital and plenty of selfconfidence. But it had a To rest on laurels won clear vision which saw may be a temptation for lesser education not only as a vesouls but not for people with hicle for progressing in a passionate convictions and multilingual and workaholic temperament. By multicultural situation but 2007 it became apparent that also as a crucial instrument the CMS College of Science & for survival in the knowlCommerce had reached its edge society of the future. M P GOPALAKRISHNAN peak. With students’ strength Hence in the very year of its incepequalling that of a university, diversifition, the trust started CMS College cation became a necessity to circumof Science & Commerce. vent the stagnation that befalls many There was something strikingly modern in the very name given to the college. Instead of naming the institution ‘College of Arts and Science’, as was the usual practice then, the trust named it ‘College of Science & Commerce’. Perhaps it was for the first time that a college is named ‘College of Science & Commerce’. This drastically different approach to modern education was a significant pointer that the trust was willing to traverse roads less travelled by. Moreover, the trust clearly foresaw that if our country has to progress into the 21st century, we need science and commerce more than anything else.

institutions of higher learning at some time or other. It was here that the sagacity of the Chairman of the trust, Mr M P Gopalakrishnan, and the Secretary, Mr C K V Nambiar, came into play. Both had the foresight to consider higher education not as a luxury but as something essential for national, social and economic development. Mr Gopalakrishnan was born in Coimbatore as the son of Manjappali Ambattu Padmanabhan (Mala, Kuzhur) and Muthiyal Janakikkutty Amma (Mannarkadu, Nattukal). As his father was an accountant in ACC of Madukkarai, Coimbatore, Mr Gopalakrishnan had his schooling at Mani H S S and his college education PASSLINE

at Government Arts College, Coimbatore. At the age of 23, he became the youngest chartered accountant of Coimbatore. Thereafter his career graph took an upward trajectory making him not only a successful chartered accountant but also a corporate consultant and director of several companies. Keenly interested in social and cultural activities, he is the Vice-President of Arulmigu Siddhapudur Ayyappa Temple, a member of the Kerala Club of Coimbatore and also an executive committee member of the Coimbatore Malayali Samajam. But the crowning glory came his way when the Governor of Tamil Nadu nominated him as a member to the Syndicate of Bharathiar University in recognition of his service rendered to the cause of education.

Sree Narayana Guru College, Chavadi. He is a Life Member of Sree Ayyappa Seva Sangam, Siddhapudur, Coimbatore, and also a member of Kerala Club and Kerala Cultural Centre. During his lengthy tenure as the Secretary of Coimbatore Malayali Samajam, he worked ceaselessly for the establishment of CMS College of Science and Commerce.

The first step these two stalwarts, Mr Gopalakrishnan and Mr Nambiar, took to diversify the CMS Educational & Charitable Trust was to make the CMS Institute of Management Studies a stand-alone institution. The success of this venture prompted them to start one more B-school, CMS Academy of Management and Technology in 2009. Again, in the same year the trust started an engineering college to In Mr Velayudhan Nambiar, meet the accelerating depopularly known in mand for technical educaCoimbatore as C K V Nambiar, tion. CMS College of Engithe trust was lucky to get anneering and Technology other right man in the right has shown tremendous place at the right time. Born progress in a short time and as the son of Vayalot has become a popular desC K V NAMBIAR Krishnakurup and Devaki tination for those who aspire (Thalasseri, Panniyannur for technical education. Thus with Amsam Desam), Mr Nambiar had his their mobilizing spirit, undying comschooling at St Joseph High School mitment and clear vision these two and college education at Thalasseri indispensable and resolute leaders Brannan College. He reached of the Malayali diaspora of Coimbatore as an assistant in LIC Coimbatore have taken the trust sucand chose the city as his ‘Karma cessfully to heterogeneous areas of Bhoomi’. Over the years he had carved higher education. a niche for himself in the social and In another year’s time the CMS cultural life of Coimbatore. He is intiEducational & Charitable Trust will mately connected with many social orbe celebrating its silver jubilee of ganizations of Coimbatore. Mr service to humanity. Time has taken Nambiar is the Vice-President of the away many of the founding fathers Coimbatore Malayali Samajam; Chairof the trust. But the spirit that made man of CMS Matriculation School, the trust what it is today lives on Maniakaranpalayam; Member of the thanks mainly to people like Mr Managing Committee of CMS MatricuGopalakrishnan and Mr Nambiar. lation Higher Secondary School, Who else can better represent Coimbatore; Life Member of Sree the tireless striving and fierce conNarayana Mission, Coimbatore, a viction of ‘Challenge Meets SucTrustee of Sree Narayana Guru Polycess’? technic College at Madukkarai and April 30 - May 31, 2011

TRAVEL & TOURISM

Sri Lankan Airlines back in Kochi; tourism hopes soar S

riLankan Airlines is back in Kochi after a twoyear gap, having started its operations on a daily basis from March 2011. With a fleet of 15 most advanced aircraft, SriLankan Airlines is one of the most visible brands in Asian skies today. After the devastating ambush by the LTTE in 2001 the airline had a business tie-up with Emirates, one of the world’s largest airlines. In 2008 it however snapped its ties with Emirates. SriLankan Airlines soon emerged as one of the most-soughtafter brands of passengers providing maximum luxury and comforts at affordable rates.

‘golden quadrilateral’. I urge the Indian Government to take the initiative in this regard. Sri Lanka and Maldives visas are available on arrival but in India getting a visa is a great problem, particularly for Sri Lankans and Maldivians. The Indian Government should change its visa policy to boost tourism and trade in this part of the globe,” Mr Weerasinghe said.

Mr Chinthaka Weerasinghe, Area Manager Kerala of SriLankan Airlines, talked to PASSLINE recently about its future plans and its expectations of boosting tourism in and cargo movement between Kerala and Sri Lanka. “SriLankan Airlines had started operations from Kerala in 1979 right from its inception. It had however to temporarily halt its operations from Kochi because of the recession and nonavailability of aircraft. The airline has always had leverage among other players since our country enjoys a strategic position. Colombo is ideally located and we can easily access the Far East and Gulf countries where Malayalees have a large presence. So the importance of our airline is vital for Keralites. We have plans to commence flights from Jaffna to South Indian citChinthaka Weerasinghe ies. Since Jaffna is undergoing the rebuilding process after the ethnic war that lasted almost three decades, this will be an opportunity for machinery suppliers and industries of South India particularly Tamil Nadu,” said Mr Weerasinghe. “Now we operate daily flights from Thiruvananthapuram and daily flights from Kochi except on Sundays with maximum utilization of capacity. As regards cargo movement we have good business from South India. We operate five dedicated freighters to Thiruvananthapuram a week. One freighter carries 20-25 tonnes. We have one of the best cargo hubs in Colombo and you can divert the cargo to all parts of the world”, he said. Mr Weerasinghe said that tourism is an area where Kerala and Sri Lanka have conflicts of interest because both places have almost the same geographical attractions and have similar tourism products. Both governments also consider tourism as their main revenue earner. If the two governments work together in association with Maldives, we can easily sell this

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