2
PASSLINE
February 29-March 31, 2012
From the Editor Define ‘senior citizen’, fix ‘pensionable age’ T
he Kerala Government and its bureaucracy are in a dilemma over fixing the retirement age in the state service and over deciding the age of a senior citizen. It is time the two issues were settled. As both the Union and state budgets are due this month a decision will be appropriate.
Editor & Publisher
VARGHESE PAUL Kochi
ZIAD SIDDIQUE Ph: 8089490231 Thiruvananthapuram
RADHIKA C PILLAI Ph: 9447712290
Chennai
AUGUSTINE JOSEPH Ph: 09381000534 Bangalore
ROHIL KUMAR Ph: 098440016255 Manager-Marketing
SAJAN K
Keethara Publications Pvt Ltd 38/125 1st Floor, Narakathara Road, Kochi-682 035, Kerala, India. Phone : +91 484 4027002 Editorial
: +91 484 3043572
Marketing : +91 484 4010075 484 3043325 Marketing Office: G-238, K C Joseph Road,
Officially pensionable age and senior citizens’ age are correlated. If the age of a senior citizen is determined then it is easy to fix that of retirement too. But, who is a ‘senior citizen’? At what age does one become a ‘senior’ and eligible for pension? There are no clear answers, nor is the word reasonably defined. Courts, the Constitution, the Governments or the dictionaries have not prescribed guidelines or norms. The Union Ministry of Justice and Empowerment defines a senior citizen as someone who is 60. Also in the 20112012 budget it was fixed at 60. There are different norms followed for fixing the age of superannuation in public services and private concerns. According to Kerala Government rules, an employee retires at the age of 55. The LDF Government had increased the retirement age of Kerala State Warehousing Corporation and Kerala State Beverages Corporation employees to 58. No protest or dissent was heard against that. And now the UDF Government contemplates fixing the pensionable age at 56. Even on that, the Government is yet to reach a consensus as there is protest and opposition against it. The Government and the opposing parties should reach a consensus on this. As the number of pensioners may surpass the staff in the state service in a couple of years it is inevitable that the state should raise the superannuation age in other public undertakings too. Here, there is a tentative proposal for settling the age-old issue: Let the ‘senior’ age and the ‘pension’ age be the same at 60 years, but the retirement age be 55. Hence, job-seekers lose no chance of a public service. But, when a person retires at 55 he/she will not be instantly eligible for pension. For that they have to reach 60. In most cases, when public servants retire they will have a lump-sum amount as gratuity/PF/insurance etc which will see them through the rest of their life. Some have their spouses employed or their siblings well-placed. Even the retirees may continue working in private firms. There may also be rare cases of indigent retirees or cases where the retired die before reaching the pensionable age. In such cases the eligible dependant should be made to receive the pension amount. In Central services, including public-sector undertakings, the retirement age is 60. Supreme Court and High Court judges relinquish office at 65 and 62, respectively. But HC judges seek parity in age with SC judges for retirement. In the private sector, journalists in service retire either at 58 or 60, but 60 is the eligible age for the State Government pension in Kerala. For provident fund-linked pension such provisions are not there. In nationalized banks the age of superannuation is 60, but in scheduled/private banks it is either 58 or 60 or beyond. In private firms the retirement age may be at the discretion of management. The Railways considers a male of 60 and a female of 58 as senior according to the 2011-12 Railway budget and offers concessions applicable to senior citizens at the rate of 40% irrespective of gender for train journeys. In the Kerala State Road Transport Corporation buses and private buses, there are seats marked for seniors but there are none in trains. There is a tendency to treat someone who retires from state service as a senior. In forums, associations or clubs formed by retired people, the minimum age for membership is 60. So 55, 58, 60, 62 and 65 are all ‘pensionable’ ages. All these figures should be taken into consideration while deciding the age of a senior citizen. For convenience, a formula may be drawn up. Add up 55, 58, 60, 62 and 65 and take their average. We get 60. So a citizen who is aged 60 can justifiably be treated as a senior citizen and for pension in any field. As the age for women in service is the same as that of men there is no need for remission in age for them in any category. It becomes necessary for the Union Government to clearly define who is a ‘senior citizen’ and what their age for pension, rights and privileges is.
Panampilly Nagar, Kochi-682 036 Marketing : +91 484 4010075 e-mail
: passline.com@gmail.com
Varghese Paul
PASSLINE
February 29-March 31, 2012
4
Wallmaax
Golden Peacock presented to M G George Muthoot The Golden Peacock Business Leadership Award for 2012 was conferred on Mr M G George Muthoot, Chairman of Muthoot Finance, India’s largest gold loan company, by Union Corporate Affairs Minister M Veerappa Moily at Bangalore recently. “This award reiterates our leadership position in the business of gold loans and also the trust we have been enjoying among our customers for more than seven decades,” Mr George Muthoot said. “We as an organization have built this business from scratch to become India’s largest gold loan company.” With $475 million in revenues, Muthoot Finance has dispensed 25 million gold loans so far and holds 120 tonnes of gold jewellery. Founded by Muthoot Ninan Mathai, M G George’s grandfather, in 1887, Ninan Mathai initially traded in timber and foodgrains and supplied rations to large British-run plantations. The company derives its logo, two elephants standing trunk-to-trunk, from the herd that the family used to own to log timber.
PASSLINE
February 29-March 31, 2012
5
Readers' views Rollys Royce and the spirit behind it Dr G P C Nayar’s talk on his Rolls Royce (February issue) reads like a discourse in his class on cars. Students and parents are definitely interested in knowing about cars and in buying one. It was not merely a talk on cars but a motivational lecture by a person of very high calibre who is the Chairman of the SCMS Group of Educational Institutions, Kochi, and national President of the Federation of Associations of Private Unaided Professional Colleges. His candid and vivid exhortation on education as well as on cars reveals his inner spirit and ambition which the next generation should imbibe for a bright future.
team that the education system in India is exam-oriented while it looks career-oriented in the UK is informative. Similarly the categorization of the school at the primary level itself as ‘comprehensive schools and grammar schools’ is exemplary as they help bring out the right aptitude of the students in their teens. Another highlight of the article is the point that sheds light on the task of children for the entrance exam for professional courses in India. The tight schedule of private tuitions, coaching classes and special classes is not there in the UK. As the culture and ethics of both these countries differ we have to do a lot of exercise and practice before adopting any such mode of education.
-Varghese Pulickal,
-P S Sudhakaran
Aloor, Thrissur.
Space for English eveninger The rush of newspapers is pushing the readers into utter confusion to decide which daily they should subscribe to. Recently launched dailies like The Times of India (TOI) and Deccan Chronicle (DC) vie to increase their circulation. While DC comes with a cover price of Rs 2, the cheapest existing English morninger in Kerala, TOI combines with the second largest-circulated Malayalam daily, the ‘Mathrubhumi. But the ad on the combo offer doesn’t clearly mention what the monthly subscription rate is except that it is a Rs 50 gain a month.
Chavara
Large-hearted man V -Guard Managing Director Kochuouseph Chittilappilly has become a synonym for charity. His compassion for the poor and love for the country has become a topic of discussion among the people. Nowadays he is known not only as a business tycoon but as the ‘generous man of Kerala’. It all started with his donating one of his kidneys and handing over a cheque for Rs 2.5 crore for strengthening the Mullaperiyar
On the other side, all other Malayalam and English dailies claim that their readership will remain the same whatever be the onslaught in the print media. This implies that there is more space still in the print media. But the irony is that no one dares to launch an English eveninger in the literate state of Kerala!
dam. Now Mr Kochuouseph has come forward with a reward of Rs 5 lakh to a lottery vendor who showed the honesty to give the winning ticket which was under his custody back to the real prize-winner. His contributions to industry and society would never go unnoticed. Doesn’t he deserve an honour from the Government like a Padma Shri title? -Davis M K New Delhi.
Murky year over The pathetic economic scenario drawn by Ziad Siddique from the happenings of 2011 (February issue) is the highlight of the year and what holds for the year 2012. The high inflation rate coupled with the worsening global economy hampered the economic momentum of the country, particularly Kerala. The acute shortage of fuel and its high prices made the life of the common man topsy-turvy. Almost all financial sectors faced problems, except a few which reaped gains. Production and export of spices declined. Kerala’s tourism industry suffered in the wake of the Mullaperiyar dam issue. The arrival of foreign tourists to the state went down significantly in 2011. The ‘water bomb’ and tremor phobia relating to the dam prevented many international and domestic tourists from coming to the state. The Indian equity market witnessed a withered market throughout the year. The Eurozone debt crisis was a major event which shook global markets including those in India. The year also witnessed huge FII outflow from the Indian markets as foreign institutional investors became jittery over the high inflation and interest rates. Commodity markets were not as promising as in the previous year. Gold ornaments sales have been slightly hit by the increase in prices.
-Pearson D’Cunha, Mattanchery
No mad rush in UK
Unlike other sectors, information technology registered some growth in 2011. It revived from its down trend in 2009 and is likely to improve further in the coming years. The real estate sector in the state fared well last year. What drove the sector to grow was that people found realty a safe haven for investment. That trend is likely to continue in 2012.
The article on education and careers in India and the UK by Suresh Kumar (February issue) is an eye-opener for both parents and wards who aspire for a course of study in the UK. What I feel the hardest is the time and stress parents and children in India undergo when the children are admitted to schools and then to colleges. The remark of the UK
We may hope 2012 will be a year of reversals of 2011. -Vinod D K, Peravoor, Kannur PASSLINE
February 29-March 31, 2012
COVER STORY
6
By Ziad Siddique
The ‘Vision 2030’ projects unveiled recently comprise: a high-speed rail corridor from Kasargod to Thiruvananthapuram, full-fledged knowledge city exclusively for knowledge-related activities, mobile phone-linked health insurance scheme, coastal waterways for moving inland freight at cheap cost, modernized waste management system, utilization of manpower after the retirement age of 55, modernization of traditional industries, connecting all governmental activities and services through IT, evolving Kerala into the capital of Indian ayurveda and provision of vocational skills to unemployed youth.
Blurred vision?
W
hat kind of future Kerala, say 15 or 20 years hence, do the people of the state envisage? A resurgent one, back from the dead, with its government fiercer than ever, earning the goodwill of all, both inside the state and outside, a place where people and traffic move faster than now and where
cently had identified Kerala as the third most economically independent state in the country. Its quality of life has been rated as the second best.” Seven years have passed by since. Oommen Chandy presides over the UDF Government once again. Today
“The main objective of Vision 2030 is to rediscover Kerala and the enormous opportunities in various sectors in terms of investments and employment, not to mention production and productivity” people have a health insurance scheme that works efficiently to ensure that they have a life without disease? Or one that is ready to write its obituary, with its face showing the deathly pallor which is done in by frequent hartals and bandhs and strikes and bureaucratic delays? Fortunately for the state, there seems to be a sea change in the attitude of the people that it is not just the Government but they too have a stake in the future development of the state. It is against this background that one should look at Oommen Chandy’s promise in 2005, during his earlier stint as Chief Minister of the state, of going forward in full steam for the state’s development. He then said: “Kerala is already on the path of development. It has emerged as an investment-friendly destination…A national-level study re-
Oommen Chandy
he has got a development document, ‘Vision 2030’, prepared by Sam Pitroda, chief mentor for the state’s development and Special Adviser to the Prime Minister on Public Information, Infrastructure and Innovation. Planning Commission Deputy Chairman Montek Singh Ahluwalia has supported it. Pitroda himself unveiled the 10 major projects envisaged under Vision 2030 at Thiruvananthapuram the other day. The projects are: a high-speed rail corridor from Kasargod to Thiruvanantha puram, full-fledged knowledge city exclusively for knowledge-related activities, mobile phone-linked health insurance scheme, coastal waterways for moving inland freight at cheap cost, modernized waste management system, utilization of manpower after the retirement age of 55, modernization of traditional industries, connecting all PASSLINE
governmental activities and services through IT, evolving Kerala into the capital of Indian ayurveda and provision of vocational skills to unemployed youth. “Even if half of the projects are implemented, it will change the face of Kerala”, said Pitroda. Kerala is known for its richness in fauna and flora, unique cultural diversity, natural indemnity against environmental disasters and opulence with indigenous cash crops. However, all these have not been utilized to the full or not developed at a recognized level. Of course all these diverse sectors provide employment to a mass of people but the income they get is meagre as compared to other states in the country. Kerala is behind many states in development and the slow pace of development has affected the living standards of many. Despite the abundance
added products out of commercial crops. About the envisaged projects under Vision 2030 for the overall development of various sectors in the state, Oommen Chandy said, “The main objective of Vision 2030 is to rediscover Kerala and the enormous opportunities in various sectors in terms of investments and employment, not to mention production and productivity”. The Government has also decided to venture for a one-year action plan to identify new projects along with the implementation of proposals that have failed to find a place in his 100-day ‘Janasamparka Yatra’ (listening to the problems and complaints of the people and finding immediate solutions, if possible, to them). Soon after the one-year action plan, the proposed Vision 2030 would be on its track, the Chief Minster
“Even if half of the projects are implemented, it will change the face of Kerala” Sam Pitroda
of resources which have not been utilized to the extent they should have been, it is obvious that a mentor or striker to boost the comprehensive development of the state is necessary. The state demands infrastructure, growth-oriented industries and valueFebruary 29-March 31, 2012
said. “Vision 2030 is chalked out in such a way that even a change in government in the state will not affect the implementation of the proposed projects,” Chandy said. Despite the Chief Minister’s assurance, different quarters have
7 expressed doubts about is in a pathetic condition about former President attempt as a gimmick by the feasibility or priorities of because 80% of it is in Abdul Kalam’s projects prothe Government to cling on the projects envisioned. No the hands of private play- posed to the earlier to power for five years. Citdoubt the Central and State ers. The Government Oommen Chandy Governing the Smart City project, Governments have already should give priority to in- ment. All of them seem to which has been remaining attempted to improve the tegrate the cities con- have been scuttled. During stalled for years, they say marketing and marketabilnected by public trans- his short tenure then, that it is the result of irreity of indigenous crops port. Many rural areas in Oommen Chandy, it apsponsibility and political riK J Sohan through commodity boards the state are still isolated pears, had no time to study valries among those in the P C Cyriac "Priority should such as Spices, Coconut, because of lack of ad- the projects. Today he has Government from time to "All these projects be given to are good for the Coir, Cashew and Marine equate transportation. got four more years to study time. “How can we say we providing drinking state. The issue Products. Besides, anPeople have to walk long them. We can hope that are on the development water. Blind concerns only the nexes of the Coffee and Tea distances and wait for this time there will be some route when we don’t have development Government’s Boards, which provide the hours for a bus in those progress in the developeven a proper transport sysconcepts can do confidence and necessary escort service areas. The proposed rail ment of the state. There are tem and infrastructure? It is no good to the willingness to to support generalized syscorridor benefits only a no projects which could not ridiculous to measure develpeople." implement them" tems of preferences, profew, while the Govern- be implemented for lack of opment by the number of vide benefits by issuing ment should seek ways funds. Funds will flow for all skyscrapers that are comcertificates of origin (preferential). But to promote public transport in the projects depending on their viability. ing up all over. When we talk about dethese have not given adequate relief to state,” says K Vijayachandran, former However, I have doubts about the rail velopment, the Government deliberthe parties concerned in the state. In Chairman of the Kerala State Industrial corridor because of the huge funds ately evades questions related to the his proposed projects, Pitroda has in- Development Corporation needed for its implementa- traffic crunch in the cities. It used to cluded the scheme to boost Kerala’s (KSIDC). tion and whether it will be take just 10 minutes to reach Menaka traditional industries which will target feasible after it is com- from Palarivattom in Kochi 10 years Mr P C Cyriac, former coir, cashew and handloom. New tech- Chief Secretary to the pleted. How many people ago. Now it takes 20 minutes or more. nology, methodology and tools will be Tamil Nadu Government, will travel daily to Instead of making progress, which the ushered in to modernize traditional in- however, begs to differ. “All T h i r u v a n a n t h a p u r a m , Government is always talking of, we dustries. The coir industry has been a these projects are good spending huge amounts? are going backward,” says Anil, an traditional industry, providing employ- for the state. The issue It is a matter of viability. I accountant in a private firm in Kochi. ment to women, especially in the concerns don’t know whether the K Vijayachandran only the “The development priorities of the coastal belt of Kerala—Alappuzha, Government’s confidence Government will go ahead Government are all wrong. The Govern"The much-hyped Cherthala, Vaikom, Kollam, and willingness to implewith the project. At the ment should chalk out a mechanism rail corridor is a Chirayinkeezhu, the Malabar area etc. ment them. Past experisame time there are to revive the projects which have been futile attempt as it chances of the remaining remaining stagnant for years and which Amidst the doubts expressed by ence shows that not is not going to yield projects being feasible and can improve the lot of the the common many about the immediacy or neces- many of the previous the results that the they can be implemented,” man. People do not want big projects sity of some of the projects envisaged projects proposed have Government he says. under Vision 2030, the Chief Minister seen the light of day. irrelevant to them or which cannot imsaid the public-private participation (PPP) route would be sought for their implementation. The prepared projects would be passed on to the respective experts for study and suggestions or better options. Chandy also said that Vision 2030 “is a humble attempt to redress innumerable concerns the state is experiencing.” He said it would create employment not only for those already skilled but for the next generation also. Apprehensions: The proposed projects have come in for debate among the public as well as the Government for their feasibility and priority. Pitroda has asked 90 days for drafting a blueprint of the projects on their priority. The projects are only proposals, it is pointed out. It is for the Government to decide whether to go ahead with the awaited blueprint. Chances are there of many other projects included as well. At the same time, apprehensions are being expressed by many whether these should take precedence over many of the basic needs of the people which are still left unaddressed. “This is not the time to comment on the projects because they are still in the preliminary stage. Our former President A P J Abdul Kalam had proposed a 20-project package to Oommen Chandy who was Chief Minister even then. It was reported then that Chandy had not got much time for even to study the projects before he was forced out of office. Today, the much-hyped rail corridor, said to be the most important among the projects, is a futile attempt as it is not going to yield the results that the Government expects. Instead of planning to have a long route, a network of transport facilities connecting cities is likely to be successful. Public transport in the state
There has been no word
expects."
Many people see the
Rail corridor costliest, most important Among the 10 Vision 2030 projects, the most important and costliest is the high-speed rail corridor. It is expected to reduce the time taken for travel from Thiruvananthapuram to Kasargod to just two and a half hours. Another project, development of the inland waterway system to carry freight, will result in a large-scale shift in freight movement to boats or barges, reducing to a great extent the traffic congestion on the state’s roads. The knowledge city in Thiruvananthapuram will contain universities, including foreign universities, research laboratories and institutes, commercial, residential units, and cultural spaces. The mobile-enabled health insurance scheme will utilize the state’s high tele-density to roll out a comprehensive insurance scheme. The premium for it can be paid through the monthly mobile phone bills. Another project is to make Kerala the ayurveda capital of India. Already the state is perhaps the foremost in the country in providing effective and traditional ayurveda remedies for various illnesses and for improving health. Many people from far and wide visit the state for treatment. It is expected that with the development of the system, more and more people will visit the state adding to its tourist revenue. The establishment of modern waste treatment systems in all districts is expected to solve the present mess that we witness in the management of waste disposal especially in cities like Kochi. The scheme to boost Kerala’s traditional industries will target coir, cashew and handloom. New technology, methodologies and tools will be ushered in to modernize these industries. It is to enable the people to get efficient Government services that a scheme will be drawn up to computerize all levels of the Government apparatus. The scheme to connect all panchayats through a broadband internet system will speed up things and facilitate easy access to all sections of people improving administration. This will also be used to impart vocational skills to unemployed youth. Besides, there will be plans to use the services of retirees from State Government services. Kerala is perhaps the only state in the country where people retire at the relatively ‘young’ age of 55. PASSLINE
February 29-March 31, 2012
prove the standard of their life. Rulers should come to the grassroots level to understand the plight of the people. We know these as we are field workers. There are places in and around Kochi where people struggle for drinking water. It is a shame for the Government in this era of modern technology that it cannot solve the basic demands of the people. Priority should be given to providing drinking water. Blind development concepts can do no good to the people. How many will benefit out of a speed rail corridor in a state where a majority of people depend on the public transport system such as buses and waterways. According to the rulers, every inhabited area within a radius of 500 metres shall be provided with public transport services,” laments K J Sohan, Chairman, Town Planning, Cochin Corporation. Waste management is also a grave problem, says Sohan. “We don’t have a proper system to dump waste while the Government boasts that ours is a technologically advanced state. No one can question the ability of either Sam Pitroda or Sreedharan both of whom are geniuses the country can be proud of. If these problems were given to them, they would have been solved earlier and big amounts could have been saved. Besides, we don’t have a proper mechanism to tackle the problem of waste disposal because of poor sanitation in the Cochin Corporation area. Today 19.4% of the people are being compelled to use shared toilets. The Government should concentrate on these issues, improve the existing transport system and create more development opportunities at grassroots levels instead of announcing and undertaking new and grandiose projects,” he says.
INFRASTRUCTURE
8 The Rs 6-billion Sky City, conceived by the Yasoram Group headed by A R S Vadhyar, has received the go-ahead from the UDF Government. From one end to the other, spanning over a river, you would ‘fly’ through a city, amid shopping malls and flats. Vadhyar says there will be a four-floor building, besides footpaths, car parking spaces and even a helipad on the bridge. The place will be free from usual cacophony and will therefore be an ideal place for shopping. You need not grope for things as all essential items will be available at short distances there.
A sky ride thro’ the city Passline News Service
E
xcellence, they say, is achieved only through consistency and innovation. And skill. When a skilled professional of standing works to achieve excellence, remarkable ingenuity, determination and common purpose will prevail. A few years ago, A R S Vadhyar, the master innovator, came out with a new concept envisaging a 3.75-long bridge linking Kandannoor with Sahodaran Ayyappan Road in Kochi which had been rejected by the then LDF Government of Kerala. Now the Rs 6-billion Sky City, as the project has come to be known, has received the go-ahead from the present UDF Government. From one end to the other, spanning over a river, you would ‘fly’ through a city, amid shopping malls and flats. Vadhyar, whose Yasoram Group has conceived the project, says there will be a four-floor building, besides footpaths, car parking spaces and even a helipad on the bridge. The place will be free from usual cacophony and will therefore be an ideal place for shopping. You need not grope for things as all essential items will be available at short distances there. Now, however, the innovative and ambitious project, which is also designed to rein in the traffic problems the city is experiencing, is mired in controversy and litigation. A petition has been filed before the Kerala High Court against the project on the ground
that it will adversely affect the eco-system of the area. The petitioner, the Indian Institute of Architects, has submitted that the Chilavannoor backwaters, on which the proposed bridge is coming up, is part of the Vembanad Lake which is a Ramsar site, a wetland protected under international convention. The proposed project falls within the areas included in the Coastal Regulation Zone, where construction is prohibited. Though the company (Yasoram Group) has claimed that it has obtained the necessary
permission for implementing the project, this is not true, the petitioner says. The petition also states that though the company says that the flyovers (there are two flyovers planned, says the petitioner) will solve the entire traffic problems of the city it has not disclosed how they will be solved. The project is also not technically viable. It is only misleading the public under the guise that what is coming up is a ‘sky city’. Public properties like land and water A R S Vadhyar cannot be given to any
The innovative and ambitious project, which is also designed to rein in the traffic problems the city is experiencing, is mired in controversy and litigation. A petition has been filed before the Kerala High Court against the project on the ground that it will adversely affect the eco-system of the area. The petitioner, the Indian Institute of Architects, has submitted that the Chilavannoor backwaters, on which the proposed bridge is coming up, is part of the Vembanad Lake which is a Ramsar site, a wetland protected under international convention. The proposed project falls within the areas included in the Coastal Regulation Zone, where construction is prohibited. PASSLINE
February 29-March 31, 2012
private party for undertaking commercial activities. The petitioner has also sought a directive not to allow such construction activities within protected areas to safeguard the interest of the public. However, Vadhyar, founder of Yasoram Group, a prominent architect and a builder of high repute, is optimistic of completing his dream project whatever the hurdles that come in its way. “There is a section of people standing in the way to scuttle developmental projects, citing skimpy issues. They want to destroy my project at any cost despite the Industry Department clearance for it,” says Vadhyar. “Whatever their interest, I am determined to fight till death for fulfilling my dream of making Sky City a reality. The proposed project is after all an extended flyover from Kundannoor near the National Highway bypass in the south to Sahodaran Ayyappan Road in the north, passing above the Chilavannoor Bund Road and the backwaters. Another stretch will extend from Sahodaran Ayyappan Road to Subhash Chandra Bose Road. Sky City is to be built on sevenmetre-high pillars with 42-metre-wide roads consisting of three-storeyed shopping complexes, residential apartments and commercial hubs, supermarkets, community halls, entertainment multiplexes, restaurants, hotels and garment and jewellery showrooms. Besides it will have two and threewheeler automobile showrooms and business centres, IT/ITES and BPO
9 operations, banking and financial institutions, amusement centres, health centres, water sports facility, an oceanarium and a helipad,” says Vadhyar. “I do not understand on what basis they are arguing that it will be hazardous to the echo system since it is not going to encroach on nature-sensitive areas. Instead we have planned to implant buds of one lakh mangroves in every pillar that is drilled into the river, ensuring the presence of fishes. In addition to it we have ordered five lakh fish breeds,” says Vadhyar, who is also famed for his innovative and creative vegetable gardens on terraces. He says the constructions will be echofriendly and will hurt nothing. There will be a 12-metre-wide fourlane expressway, five-metre-wide car parking space on both sides and additional car parking on the rooftop which can together accommodate 7,500 cars. In addition, there will be twometre-wide footpaths on both sides, 6.6-metre-wide buildings on the base floor and an 8.6-metre-wide building on the first and second floors on both sides. Cable cars can run at a height of 80 ft offering a panoramic view of the city. Vadhyar has been fighting for getting rid of all hurdles and has procured consents from the departments concerned. The only thing awaited is the court’s final word. He says the State Government’s green light for the project is under strict conditions. Of the Rs 6 billion (Rs 600 crore) for the project, the State Government will be given 26% equity stake in the company, out of which 11% will be free for its services, while 15% will be held as equity partnership by quasi- Government firms like Infrastructure Kerala Limited, Greater Cochin Development Authority (GCDA) and Cochin International Airport Limited (CIAL). Besides, 23% will be offered to the public and the rest 51% will be funded by the company for which it has already approached other entities, says Vadhyar. The company will build, own and maintain the infrastructure on a 99-year lease. The Union Bank has offered loans for the project. Sale of commercial and residential space along the elevated transit system will be sufficient to pay off the loan amount that will be spent on construction. A corpus fund will be generated for regular maintenance. “The project will help ease traffic in the city and attract lots of tourists. There will be no collection of toll or any user fee as we intend to meet the en-
‘It’ll solve none of the problems cited’
"A
ny addition or deletion to nature harms the importance, as defined by the Ramsar Convention for environment resulting in hazards to existing creatures. the conservation and sustainable utilization of wetBut nature’s purity is often encroached upon for the lands. The lake has been polluted from unregulated the convenience and pleasures of man. We proliferation of motorized houseboats raishave been witnessing such encroachments ing concerns about the adverse impact of on the echo system for years in the name pollution from diesel engines and outboard of development. Is it necessary to tamper motors on the fragile ecosystem,” says with the environment for development?” Many Neelakantan Nampoothiri. people raise these points. There are also The backwaters have a unique ecosysothers who ask how there can be developtem, freshwater from the lakes meeting the ment without hurting the echo system and seawater from the Arabian Sea. In certain how the nation can progress without develareas, such as the Vembanad Kayal, where C R Neelakandan Nampoothiri opment. a barrage has been built near Kumarakom, Environmentalists consider the proposed Sky City project an invasion of the echo system, which will benefit only a small section of the rich in society. Nature, they feel, has to pay a big price for the project designed to entertain only these people. According to Mr C R Neelakandan Nampoothiri, environmental activist, the most important point the Sky City project poses is security concerns with the Cochin Shipyard and the Southern Naval Headquarters being close to it. The helipad, which will be part of the proposed project, is capable of drawing round the aerial view of both the highly secured systems, he says. Natural resources, such as sunlight, moonlight and rain, are the right of every creature on earth as the whole echo system is interconnected for its survival. The entire system will find its end if any changes are effected in between them. The plan is made to take over the sky, which is not the right of some but of all inhabitants. “The proposed flyover will cover about 75% of Vembanad Lake, blocking sunlight, an essential thing for many species in the water. Besides the piling of hundreds of pillars will also be harmful to the lake, damaging its nature. The Vembanad Lake is one of the wetlands of international
However, Vadhyar, founder of Yasoram Group, a prominent architect and a builder of high repute, is optimistic of completing his dream project whatever the hurdles that come in its way. “There is a section of people standing in the way to scuttle developmental projects, citing skimpy issues. They want to destroy my project at any cost despite the Industry Department clearance for it,” says Vadhyar. “Whatever their interest, I am determined to fight till death for fulfilling my dream of making Sky City a reality. PASSLINE
salt water from the sea is prevented from entering deep inside, keeping the fresh water intact. Such fresh water is extensively used for irrigation purposes. Many unique species of aquatic life including crabs, frogs and mudskippers, water birds such as terns, kingfishers, darters and cormorants, and animals such as otters and turtles live in and alongside the backwaters. Palm trees, pandanus shrubs and various leafy plants and bushes grow alongside the backwaters, providing a green hue to the surrounding landscape. Noted Kochi-based architect Gopakumar says that if the Government sanctions the proposed Sky City project, all people can also claim the water areas from the Government for such kinds of construction. For such a project the Government has to allot a chunk Gopakukumar of water areas, which is public property. “What is the immediate need of such projects in the city? Will this resolve the major traffic crunch it faces?” asks Gopakumar. “Vadhyar cites the easing of traffic as one of the most important advantages of Sky City. How can it solve the traffic crunch in the city when the residential and commercial plots on the flyover will draw huge traffic?” says Gopakukumar.
tire expenses from sale or lease proceeds of the commercial space,” says Vadhyar. He claims that the project will not hurt anybody because it does not require land acquisition. “We are given four years for its completion but I believe we can do it in three years,” he says. Vehicles coming from areas like Mattancherry, Fort Kochi and Palluruthy can enter Yasoram Sky City through Chilavannoor Bund Road and then enter the highway to the north of Vyttila junction via Subhash Chandra Bose Road. The construction of a railway overbridge near Atlantis junction and a road conFebruary 29-March 31, 2012
necting Panampilly Nagar to Sky City will ensure uninterrupted movement of these vehicles. This will enable them to proceed to places like Aluva, Angamaly and the airport without having to pass through the congested city roads. Traffic from the city proceeding southwards can enter Sky City through Chilavannoor Bund Road and then enter the highway at Kundannoor, which can reduce the driving distance. Further, this will relieve Valanjambalam, South overbridge, Sahodaran Ayyappan Road and Vyttila Junction of their perennial traffic jams.
10
By K Vijayachandran
Delhi Metro demonstrated Sreedharan’s institution building capabilities and at 79 he is ready to take over the reigns of Kochi Metro, a project he has been nurturing for more than a decade against all odds. As a Kerala patriot and an engineer, Sreedharan is emotionally involved in the Kerala Metro Rail Corporation (KMRC) project.
E
Sreedharan is a household name in Delhi: he is the most popular public figure of our capital city. A master engineer and rail builder par excellence, he started his carrier with the Indian Railways, a national enterprise of one and a half million employees that have parented a large number of public undertakings and engineering industries in the country. After a brief halt at Cochin Shipyard, he moved over to Konkan Railways and completed that dream project of the nation in record time. Delhi Metro demonstrated his institution building capabilities and at 79 he is ready to take over the reigns of Kochi Metro, a project he has been nurturing for more than a decade against all odds. As a Kerala patriot and an engineer, Sreedharan is emotionally involved in the Kerala Metro Rail Corporation (KMRC) project. But for the frequent professional interventions by Sreedharan in his personal capacity, the KMRC project would not have reached the present stage. Reportedly, the Public Investment Board (PIB) of the Central Government will make the final investment decision on the project, which is envisaged as a 50:50 joint venture of the Kerala and Central Governments, within the framework recommended by the Working Group on Urban Transport for the 12th Five-year Plan. This working group, with Sreedharan as Chairman, had made elaborate recommendations on urban transport development, including the development of metro railways, which are highly capital-intensive. These recommendations were based on the goals set by the National Urban Transport Policy-2006 (NUTP-2006: see box). Very little has been done in the directions set by this five-year-old document and the quality of urban transport has been steadily declining all over the country. Even with regard to the first two goals, related to institution development and capacity building at the state and Central levels, precious little has been done during the past five years. The Urban Transport Department, under the Union Ministry of Urban Development, had commissioned, in the meanwhile, numerous studies, not only on national policies but also for preparing detailed project reports for individual cities and regions.
E Sreedharan, DMRC and Kochi Metro Such studies were done also for Kochi, which had explored non-metro rail solutions that got duly buried by the bureaucracy of the Kerala Government and the Union Ministry of Urban Development. Schemes for introducing organized city bus services according to standard specifications (box item 5a), adding Bus Rapid Transport Systems (box item 5b: BRTS) and creating facilities for walking and cycling (box item 3) could have been taken up at the state level for the five city corporations including Kochi, which was blindly pursuing the metro-rail project as a panacea
Ten goals set for urban transport To achieve the targets set, the following 10 goals were identified in the 12th Five-year Plan document which were in line with the National Urban Transport Policy-2006 (ref: report by the working group-executive summary)
b. BRTS in all two lakh+ cities and state capitals
1. To create an effective institutional framework that will manage the huge investment envisaged.
d. Expand rail transit in existing mega cities
2. To build capacity of state and city officials and other stakeholders.-Today hardly any state or city has an urban transport professional on its roles.
bus transport specifications in all two-lakh+ cities and state capitals c. Rail transit @ 10 km/million, start planning rail transport projects in cities with population in excess of two million. e. Provide suburban rail services in urban agglomerations with population more than four million 6. To improve accessibility and mobility in cities by networking, providing missing links and improving road quality
3. To create facilities for walking and cycling in all two+ lakh cities and state capitals.
7. To provide grade-separated entries and bypasses for through traffic.
4. To develop an upgraded cyclerickshaw as an integral part of the last-mile connectivity.
8. To improve road safety and introduce safety audit
5. To augment public transport with part funding from the Government of India with the help of: a. Organized city bus service according to urban
9. To use technology for multilateral integration, enforcement and traffic management. 10. To promote innovation and R&D in guided transport etc. PASSLINE
February 29-March 31, 2012
for its public transport bottlenecks. This was, possibly, the situation even in other states leading to Central schemes for introducing high-tech buses. The Kerala State Road Transport Corporation (KSRTC) was thus forced to own and operate such buses on an ad hoc basis and subsequent problems continue to plague such half-cooked solutions which were designed to help out automobile monopolies. The 12th Plan working group has now stressed the need for creating an independent ministry for urban transport (UT), both in the states and at the Centre, so that UT development problems are promptly attended. There are several gaps in the management of urban development in our country, which need to be corrected. Not only public transport but also other infrastructure sectors like water supply, electricity, housing, health, education etc are also facing serious management problems. All these call for basic administrative reforms that should lead to more efficient city governments and city administration. The Working Group for UT has recommended a total investment of Rs.3,88,308 crore for the sector during the 12th Plan. Of this Rs 1,67,218 crore is earmarked for creating street infrastructure, Rs 2,02,628 crore for public transport and the balance is set aside for capacity building at state and Central levels, ITS, ATC and other R&D projects. About two-thirds of the investment proposed for the development of public transport is for metro railway projects (Rs 1,30,726 crore). Based on a study of the global experience in urban rail transport systems, the working group has come to the conclusion that public-private partnerships (PPPs) have not been very successful
11 Passline News Service
"M
ost of us are not quite aware of our talent. We can also produce the incredible using our intelligence as did Albert Eistein, whose brain when tested was found to have used only 20% of his intelligence,” says Mr Nelson Diaz, founder and Life Coach, Rheoversity, a research centre for human consciousness. “Our use of intelligence is normally counted at 4% to 6%. If we succeed in attaining at least 10%, we could make remarkable achievements in life,” says Diaz, who has been in the research of human consciousness for decades. It was after 25 years’ research on human consciousness that he founded Rheoversity with a unique system of transformational learning to extract the hidden talents in human beings. Human beings have a faculty of absorbing whatever they see, read and hear fully. All this data is apparently saved in the subconscious mind. A sect of data can be recalled whenever we try to remember. Normally, it is not possible to recall all the data stored in the subconscious mind. “Transformational learning is a process that trains men to recall the data stored in the subconscious mind. If we could bring the data from the subconscious mind, the result will be remarkable,” says Diaz. Our conscious mind has to do a lot of work simultaneously with the energies, to convey the messages and the implementation of it through acts and vocally. A lot of energy is being spent on unrelated things when we are puranywhere in the world: “In 113 cities having metro rails, 88% have been developed and being operated in public sector mode, whereas only in 12% cities some form of PPP exists. In fact outside of India, no city anywhere in the world (except the failed experiment of STAR and PUTRA Metro Rail of Malaysia) has attempted in the last few decades provisioning of metro rail in full capacity on PPP. Even the new metro rail projects, which are being developed, are largely being taken up on public-sector mode rather than PPP, even though PPP has been an important financing mechanism of the other modes of transport. The report of the working group indirectly admits that the country does not have the technological and management resources needed to plan and spend over Rs 1,30,700 crore ($25 billion) on metro railways. The NUTP-2006 had recommended creation of an effective institu-
Rheoversity digs out hidden talents suing a particular thing, deviating concentration from the object. It will be difficult to recollect the data at this stage because of the scattering of energy. “The human brain is more powerful than a super-computer. Since the computer is free from disturbances and noises, at the same time the energy is being used
only for a particular task and not being spread, it could bring out results with 100% accuracy. Human beings are disturbed by so many things and do a lot of work at a time, transferring energies to different tasks. Thus the possibility of better results is minimal as compared to a computer. Better results will be available when you use the en-
Nelson Diaz—pioneer in human development Nelson Diaz has been conducting experiential personal transformation workshops for the past three decades. Rheoversity is a manifestation of his vision. A pioneer in human development, Nelson is a teacher of the psychology of possible evolution. He is a renowned NLP trainer having received training directly from Richard Bandler, the founder of NLP. He has also trained under Bob De Porter in California in quantum learning techniques. His training has inspired many corporate managers, teachers and students in India and abroad. Over the years, his methods have evolved to higher dimensions and Nelson currently draws inspiration from the esoteric teachings of George Gurdjieff as he finds them powerful means of creating transformative impact in the modern workplace. Nelson shuns popular modes of training delivery offering a truly transformative experience that has a lasting impact on the individual. His recent research on the psychology of consciousness and brain plasticity led him to develop a practical system of transformational learning.
tional and implementation framework that will manage the huge investments envisaged (box item 1). But, nothing much has been done in this direction by way of capacity building despite the completion of Kolkata and Delhi Metros as well as the part completion of Bengaluru (Bangalore) Metro, and the progress registered at Hyderabad and Chennai. Global tenders on turnkey basis appear to be the only possible route for the new metro rail projects to be taken up in the country, including the Kochi Metro. Kolkata Metro was the first of its kind in the country, and it was totally engineered and built by the Indian Railways. Because of a variety of problems, the major one being inadequate fund allocations, progress of the project was slow and indifferent. Though the project was inaugurated in 1972, actual construction work was started only in 1978, and it took six years to start the first
Global tenders on turnkey basis appear to be the only possible route for the new metro rail projects to be taken up in the country, including the Kochi Metro. Kolkata Metro was the first of its kind in the country, and it was totally engineered and built by the Indian Railways.
phase of operations. Only by 1995 was the originally envisaged Dum Dum-Tollygunj line was completed. However, Kolkata Metro had helped the development PASSLINE
of Indian technology, which was of great economic relevance, considering the capital-intensive character of metro technology. However, when Delhi February 29-March 31, 2012
ergy for a particular task, preventing it from being bypassed to different tasks,” says Diaz. “Our prime aim is to develop the intelligence quotient (IQ) of our wards to turn them into dignified and useful citizens of the country. To delve deep into the psychology of consciousness and dig out the hidden talent and calibre of each child is a Herculean task. That task is simplified at Rheoversity. The objective is to transform an ordinary human being into an evolved being. Rheoversity has different divisions and purposes. ‘Smile’ is an exclusive learning division for the children with a mission to mould and shape them through transformational learning. Transformational learning is a whole mind learning system which has taken its origin from the ancient system of meditative practices. Transformational learning is a comprehensive model that covers both educational theory and immediate classroom implementation. Transformational learning begins with a strong foundation built on the five tenets of success: Intention, interconnection, experience, appreciation and celebration. Transformational learning focuses on seven key areas of excellence in children: language and communication, individual thinking styles, creative and inventive intelligence, artistic and visionary qualities, social smarts, integrity/transparency and personal wisdom. Three forums for children under smile: Genie Kids Forum (7-9 years); Wiz Kids Forum (10-13 years); Young Leaders’ Forum (14-17 years).
Metro came in for active consideration, the responsibility of metro rail development was taken away from the Indian Railways and a separate company, Delhi Metro Rail Corporation (DMRC), was formed as a 50:50 joint venture of the Delhi and Central Governments. DMRC chose to fall in line with the European standard gauge, which is 9.5 inches narrower than the Indian broad gauge adopted by the Indian Railways under the British who had selected gauges slightly different from the European standard for strategic reasons, military as well as economic. Not only DMRC, but also the Kolkata Metro Rail Corporation, has adopted the standard gauge, as it took over the expansion responsibilities from the Indian Railways. As of now, despite its massive expertise in rail transport, the country has not cared to consolidate its technology base for metro rail development. Recommenda-
tions by various working groups and plan panels for building up this capability, using the vast experience already gained by the country on different fronts, have fallen on deaf ears. Global tendering for building metro rail projects on turnkey basis is the approach everywhere, in Delhi as well as state capitals. These billion-dollar contracts are a big attraction if they could be managed without technocrats like Sreedharan, who could have served the country better by helping it to build up independent technological capabilities and institutions at the national level. The recent unseemly debate on who should lead Kochi Metro had its political overtones. But it carried very little sense with regard to the real problems of Kochi Metro and metro rail development in the country in general. Kochi Metro, unlike DMRC, is a different cup of tea, and may ultimately turn out to be even beyond his capabilities and reputation.
12
By G Rama Mohanan Nair
Project delays are not uncommon globally, but the situation in our state is unbearable and cutting into our development prospects seriously.
F
ebruary 4, 2012 was a golden day for Kochiites. Two important overbridges were opened to traffic that day—the Venduruthy and Edappally bridges, two dream projects of the state, more so for the residents of Ernakulam district. Both projects had been inordinately delayed, costs getting highly escalated. In his inaugural speech Chief Minister Oommen Chandy said that such delays had become the bane of the state. When the road overbridge from Bakery Junction to Thampanoor in Thiruvananthapuram was inaugurated, somebody joked that the Guinness Book entry for the smallest bridge having taken the longest time for completion might go to it. Project delays are not uncommon globally, but the situation in our state is unbearable and cutting into our development prospects seriously. Here is the chronology of events of the Edappally overbridge: [
[
[
1995: The Central Ministry of Surface Transport approves the realignment of the Cheranallur-Edappally sector of NH-17 2001: Administrative sanction for acquisition of land.received (after so much delay!) 2003: Acquisition of land admeasuring 1,769 m (from Muttar Junction to Al Ameen School) completed
[ 2004 December: Administrative sanc-
tion for the estimate of Rs 14.25 crore obtained [ 2005 January: Tenders invited for this
part of the work. But as the lowest tender was 26% in excess, administrative sanction sought again for the excess. [
2005 July: Revised administrative sanction obtained for Rs. 17.92 crore. Work awarded to Kayikkara Constructions. Two years was the contract period. But because of some changes in design that became necessary, the contractor sought administrative sanction for the revised estimate. Because of delay in getting this approval, the contractor stopped the work periodically
[
2009 March: Approval for the revised estimate of Rs 24 crore obtained
[
But even after four yeas the contractor could complete only 45% of the work
[
2009 May: Kayikkara Constructions’ contract terminated
[
Fresh tenders invited. But this time the tender excess was above 50%. Hence the contract could not be awarded
[ Tenders invited again for the third time
and the work awarded to the present contractor Varkey Con-
bilities in any way that they differ from general norms (eg land acquisition). Computer software makes regional assumptions that may not mirror your specific circumstances. iv) Use the prepared construction schedule regularly. Maintaining a schedule is the most critical component in controlling costs. A formal, weekly check of progress is a good rule of thumb. Confirm that the work performed on site during
ber who is competent to handle that. vii) Cost estimates are to be made for each activity; resource allocation should be done and made available at the appropriate time. viii) There may be periodical changes in design/schedules because of external influences. Then the network is to be reviewed. But there should be a cut-off date beyond which no changes in design should
Avoiding project delays structions for Rs 21.6 crore in September 2010. Contract period was one year [
2011 October: Work of the bridge completed, but there was delay in finishing the approach roads.
[
2012 February 4: On the date of inauguration, work on the side railings of approach roads on either side was not yet over.
his is a typical case of project execution here. Seventeen years for completing an ordinary bridge from the conceptualization stage! A project overrun of 52%. Please note the intervening delays in according sanction for revised estimates by the Central ministry. The MPs and MLAs claimed that they were constantly intervening for speedier clearances.
each previous week matches the work described in the construction schedule. Confirm that critical events scheduled, construction materials required and the necessary workmen are available for the next week as planned. iv) Record variances in actual performance versus project schedule to increase accuracy in estimating future projects. Managing a schedule does not begin or end with a single project. What has been detailed above is general in nature. Let us come to a major Social In the case of projects like a national highway/a long road overbridge/flyover. the owner is the
be entertained. ix) Land acquisition, relaying of pipes, cables of the Water Authority/ KSEB, refineries etc are activities which are likely to cause inordinate delay in project execution. Action on such activities should be planned and initiated sufficiently in advance. Otherwise the project is likely to be interrupted often during execution. x) Obtaining clearances and approvals from various departments of both Central and state governments is the most challenging job. Continuous follow-up/liaison is necessary at the capital level with the support of political bosses there.
The Venduruthy bridge also took six years to complete though it was initially planned to finished in two years. Delays and cost escalations are the main causes of unresolved cases of disagreements between a government agency and the contractors. A contractor can correct shoddy workmanship and replace defective materials. He cannot replace lost time or recover increased costs generated by a delayed project. While nothing will guarantee a problem-free project, a construction schedule using the proper construction management software can provide an early-warning system to manage progress and control expenses. The following steps can be followed: i) Choose a construction management software programme with a construction schedule format that is appropriate to the size, complexity and cost of the project. There are many to choose from. ii) Assemble all components of the construction schedule using the software. Typical inputs will include: *Critical events in the construction process, including land acquisition, clearance from various ministries, shifting of the Water Authority’s pipelines, KSEB’s electric posts, clearance from civil aviation/navy, environment authorities etc. *Building materials required and their sources and proposed delivery dates. *Specific tasks, sequence and duration for each component of the work. iii) Customize the project schedule to closely match your state’s capaPASSLINE
government (Central/state) or a governmental agency like NHAI/PWD. i) Choose a competent project leader dedicated to the project who is solely responsible for its implementation ii) He should have the necessary training and experience in managing social projects of this magnitude. iii) He should be assisted by a team of personnel of sufficient strength to handle assigned responsibilities. All should be given refresher training in the latest project management techniques and tools.
xi) Another bottleneck may be public protests and demonstrations against the project. Understand that vested interests and people affected by the project will misguide the public by spreading false information about it. To circumvent such situations a public relations department should be there to educate the public about the realities and the benefits the project brings to society. xii) Above all, there should be a vigilance department to look into corrupt practices in the entire process.
iv) The entire project should be broken up into several activities. Fix appropriate time schedules for each activity and determine the interdependence of such activities with the help of a network like CPM/PERT charts. Latest computer software also is now available for project management.
It is a consolation that our Chief Minister and all other ministers are concerned about this phenomenon of delays affecting our economic advancement and dampening our progress vis-a-vis other states, and that this government will chalk out some strategies on a time-bound manner to obviate this malady.
v) Determine the ‘critical path’. Take care to see that activities on the critical path are not delayed. Noncritical activities should be completed within the ‘slack’ period.
(The author is a former General Manager of Kerala Small Industries Development Corporation and Chief Consultant, Industrial Consultancy Services, Kochi. He can be contacted at: ramamohanan@gmail.com)
vi) Put each activity under a team memFebruary 29-March 31, 2012
ECONOMY
13
Dr N Ajith Kumar
‘Great expectations’
C
ome February and the discussion starts about the national budget. This year the budget has to be unique in many ways. Contrary to the general norm the budget is not being presented on the last working day of February which is the usual date of budget presentation. Elections to the state assemblies have forced a postponement to March 18. The present Government has another two The present Government has another two years left to continue in office years left to continue in and so the budget of 2013 is all likely to be one full of sops as one office and so the budget of 2013 is all likely to be one found in the last budget of 2008 of the first UPA Government when agricultural full of sops as one found loans to the tune of Rs 71,600 crore were written off. in the last budget of 2008 of the first UPA Government when agricultural loans Similarly the promise of reducing the revenue deficit a sure food scarcity that may envelope it if the present to the tune of Rs 71,600 crore were written off. This to 1.8% has been kept will also be eagerly awaited. trend continues. In his pre-budget consultations the is virtually the only budget where the Government The expectation that tax revenue will be Rs 9,32,440 Finance Minister has indicated the importance of a should be in a position to take policy initiatives and crore has got misplaced since the December fig- nationwide programme for agriculture and whether go in for some long-term reforms for which ures do not augur well in this direction. Whether the the concern will be converted into action is what one Dr.Manmohan Singh is famous. This budget will also ambitious scheme of raising Rs 1,25,437 crore as has to wait and watch. signal in the 12th Plan which is commencing this nontax revenue has been achieved has to be seen The last budget gave infrastructure development fiscal. So there is nothing wrong if the normal Indian to be believed. an important place by allocating nearly 48.5% of the student of economics does expect great from this One important policy that is expected from this total Plan allocation. Similarly 31.4% of the allocabudget. budget is whether the Government is serious about tion was for strengthening the social sectors. An One of the important pronouncements made in the last budget was a promise to reduce the fiscal deficit to 4.6% of the GDP this year. With a flourish the Finance Minister had said how the fiscal deficit for 2010-11 which was expected to be 5.5% had been through prudent financial management brought down to 5.1%.But the fact of the matter was the unexpected success of the 3G auction, where the Government had expected Rs 33,500 crore and had in fact realized a whopping Rs 1,06,000 crore, that was responsible for this sudden dip in the fiscal deficit. This fiscal year there has been no such bonanza and even the Rs 40,000 crore that was expected from PSU disinvestment has not been achieved. To make matters worse, the balance of payments deficit of Rs1.33 lakh crore and the problem of inflation have certainly not made things easy for the Government on the fiscal front. So whether the fiscal deficit will be less than 5% is one which all will be looking at. When countries of Europe have been experiencing more than 100% of their GDP as their total public debt India’s projected debt for the current fiscal was at 44.2% of the GDP. It is a fact that any country believing in fiscal discipline is not expected to have more than 60% of its GDP as public debt. In fact the 13th Finance Commission had said that the country could go in for a debt up to 52.5% during 2011-12.But despite an anticipated expenditure of Rs12,57,729 crore the ministry was determined to bring the public debt burden to below 45% of the current GDP during this fiscal. But reports from the Finance Ministry suggest that total public debt due to increased social spending could well cross the 50% mark in actuals. How the Government is proposing to cut down public debt is a matter of great concern from the country’s macroeconomic angle. A clear-cut policy can be expected in this budget.
the introduction of the ‘Second Green Revolution’. In the last budget Rs 400 crore was set apart for intensive agricultural operations in the northeastern states. An amount of Rs 300 crore each was made for six different schemes all aimed at improving the quality of agriculture. But a serious issue has emerged in the last few years. India’s annual average population growth is now greater than the annual average
The anxiety to know about the benefits which agriculture derived from these measures is understandable in the present context when information from states like Haryana is coming that the foodgrains farmers are shifting to mushroom and corn cultivation which they say gives them in one year the income they earn in ten years when they cultivate wheat or rice! growth of agricultural production. That means the foodgrains produced are not sufficient to meet the growing requirement. This forced the Government to import 3.5 million tonnes of wheat from Australia during this fiscal to augment buffer stocks.One of the important policies which got this Government a lot of encomiums has been the passing of the Natuonal Food Security Bill which ensures the BPL groups a lot of food security. But in the process our food stocks have dwindled to such an extent that a concerted policy whether it be called Green Revolution or not has to be initiated to save the nation from PASSLINE
February 29-March 31, 2012
amount of Rs 4.75 lakh crore was for providing agricultural credit. Nothing much is being heard about this. The Minister had given figures of the previous year to strengthen his decision of raising this figure from Rs 3.75 lakh crore the previous year to the current level of Rs 4.75 lakh crore. The anxiety to know about the benefits which agriculture derived from these measures is understandable in the present context when information from states like Haryana is coming that the foodgrains farmers are shifting to mushroom and corn cultivation which they say gives them in one year the income they earn in ten years when they cultivate wheat or rice! The Indian farmer is really badly off because of the Agricultural Produce Marketing Act. The Finance Minster had promised amendments to this Act in the last budget. But nothing has been heard of it except that foreign direct investment (FDI) is being permitted in single product retail up to 51%.But this will be effective only if the APM Act is suitably amended. One expects the budget to carry some good news in this direction for the Indian farmer. Thus this year’s budget is expected to be not merely a statement of facts and figures and projections, but where the policy of the Government to redress many of the innate problems the nation is facing will be outlined. Satisfying all groups is just not possible. With a commitment towards inclusive growth one expects the budget to be aggressively pro-poor and equitable. Yes, aspects like the Direct Tax Code and the Goods and Services Tax do require attention. But saving the nation from possible famines and food shortages is much more important than taking too much cognizance of saving tax for the high-income groups. All eyes are now on the Finance Minister and it would not be an exaggeration to use the adage of the immortal Charles Dickens that there are ‘great expectations’.
14
Time for fiscal consolidation By Dr V K Vijayakumar
S ince liberalization, the Indian economy has been one of the fastestgrowing economies of the world. This fast growth has produced many remarkable success stories in the corporate sector, reduced poverty, created millions of jobs and has spawned a burgeoning middle-class which has become a strong catalyst for growth. A major deficiency of this growth is that it has been ‘non-inclusive growth’: a major segment of the population has been left out of the growth process. In other words, the benefits of growth have bypassed the socially and economically backward sections of society. If growth and development has to be politically and socially sustainable, growth has to become more inclusive. ‘Trickle down’ alone is not sufficient; a ‘pull-up strategy’ through public action is essential. This necessitates massive public resources, which, in turn, will come only through revenue buoyancy generated by the growth process. In short, to make growth inclusive, sustained high growth is essential. Therefore, the recent trend of growth deceleration needs to be addressed seriously. Period
Growth rate (%)
1981-82 to 1990-91
5. 6
1992-93 to 2010-11
6.8
2000-01 to 2010-11
7.3
2005-06 to 2010-11
8.6
2010-11 to 2011-12
7 (projection)
Source: CSO With the initiation of liberalization in 1991, the Indian economy moved to a higher growth trajectory: moving up
Since the 2012-13 budget is being presented after the Assembly elections, the Finance Minister can afford to be pro-active. Therefore, the Government should seize this last major opportunity during its present tenure to announce bold reforms and shake off the criticism of governance paralysis. from 5.6% in the pre-liberalization period to 6.8% in the post-reform period. The years 200509 were a period of robust economic growth enabled by the favourable global economic environment. Even though the global financial meltdown of 2008 and the Great Recession of 2009 impacted the Indian economy, we succeeded in achieving a growth rate of 8.6% during 2005-11. The remarkable resilience shown by the Indian economy during the global financial meltdown and the
Great Recession was widely appreciated. The good growth rate of the crisis years was achieved thanks to the fiscal and monetary stimulus provided by the Government and the Reserve Bank of India. However, the macro situation is very different now. For FY 2012 India is likely to clock only 7% growth. There is no room for fiscal stimulus; inflation, still above the comfort zone, precludes the possibility of a sustained and sharp cut in interest rates. If India is to achieve her economic and social objectives, sustained high growth is a must. But we are facing
The good growth rate of the crisis years was achieved thanks to the fiscal and monetary stimulus provided by the Government and the Reserve Bank of India. However, the macro situation is very different now. For FY 2012 India is likely to clock only 7% growth. There is no room for fiscal stimulus; inflation, still above the comfort zone, precludes the possibility of a sustained and sharp cut in interest rates. PASSLINE
February 29-March 31, 2012
major headwinds here. Our savings rate has fallen from 36.8% in 2007-08 to 32.3% in 2010-11. Consequently, our capital formation has fallen from 38.1% to 35.1% during this period. The main reason for this sharp cut is the rising fiscal deficit. Fiscal deficit of the Centre rose from 2.8% in 2007-08 to 5.6% in FY 2012 (projection). The gross domestic savings rate is declining because of the Government’s dis-savings (negative saving). Rising public expenditure and runaway subsidies have adversely impacted productive public expenditure. The slowdown in the economy has also been caused by the savage monetary tightening by the RBI which has raised interest rates 13 times since March 2010. The RBI has been fighting inflation without any help from the Government through fiscal deficit reduction. Excessive reliance on monetary tightening, ignoring fiscal consolidation, is a sub-optimal solution. The bottom line is very clear: India can return to her high growth path only if we achieve reduction in fiscal deficit. Therefore, fiscal consolidation should be the number one item on the agenda of budget 2012-13. Action on the fiscal front will give the RBI the much-needed room to manoeuvre interest rates down. Cutting the fiscal deficit will not be a popular move because it will entail reducing many subsidies and raising taxes. Fortunately for the UPA the time for fiscal consolidation is now favourable. Since general elections are due in 2014, the 2013-14 budget is likely to be populist. Since the 201213 budget is being presented after the Assembly elections, the Finance Minister can afford to be pro-active. Therefore, the Government should seize this last major opportunity during its present tenure to announce bold reforms and shake off the criticism of governance paralysis. Fiscal deficit reduction will require raising the tax revenue. The Cenvat rate which was 16% before the crisis was reduced to 8% in two stages as part of the fiscal stimulus. It was raised only to 10% in the 2011-12 budget. Now, there is scope for a 2% increase. Similarly, the service tax can be restored to the pre-crisis level of 12%. The diesel subsidy is burning a huge hole in the Government’s finances; bold reforms are needed here. To accelerate growth the Government will have to move fast on DTC, GST, the land acquisition bill, the mining bill etc. Constraints in the power sector, particularly the shortages in coal supply, need to be addressed. There are great expectations from the Government, particularly from the budget, on these fronts. Will Pranab Mukherjee rise to the occasion? (The author is Investment Strategist, Geojit BNP Paribas Financial Services)
15
By Dr M C George
The 11
th
Five-year Plan is at the fag end of its term and the 12th Plan has to run from 2012-2017. Kerala has got prime place among other states in certain aspects especially in the field of education, literacy level, health parameters and empowerment of the people at large. Still the situation at the grassroots level is massive poverty and malnutrition, retarded growth, easy prey to diseases, mass suicides in the rural sector, exodus from the farm sector and deterioration in quality and content of education along with an overall gloomy outlook. The 12th Plan needs to be formulated and put to action with this tragic scenario in the social sector in mind. Out of the three major sectors in the overall economy, viz agriculture, industry and service, a majority of the population works and thrives in the agricultural sector. The geography and the overall physical conditions of the state are not conducive to giving much scope for industry especially large ones. The service sector is thriving with a large section of the educated class working outside the state sending back their earnings to the state which has earned it the rare distinction of being called the ‘money order economy’. Percentagewise contribution of different sectors leaves the peculiar scenario of agriculture with the lowest and services providing the highest with industry the least. The populationwise picture provides a dismal situation as the people involved in the agricultural sector come to more than 75% and the rest in the other two sectors. These figures show the desperate situation prevailing in the state as far as the penetration effect of the various planning and other programmes hitherto undertaken. Whatever growth achieved through systematic planning, especially the fiveyear plans designed and formulated with meticulous care and expertise, could not achieve the desired results at the field level. Instead the socalled growth attainment has been ‘exclusive’ rather than ‘inclusive’.
12 Plan should address farm sector problems: Infam th
Kerala has set an ambitious targeted outlay of more than Rs 1 lakh crore from its Rs 40,422-crore 11th Plan outlay. The State Planning Board presided over by the Chief Minister has approved the Plan document recently. The focus of the Plan will be on agriculture and allied sectors. The paper is put for wide discussion at different levels like stakeholders, experts, the academic community and sociopolitical groups. Indian Farmer’s Movement (Infam) being an organization of the farmers, by the farmers and for the farmers is in the forefront to make the Five- year Plan more people-oriented. Rs 40,422-crore 11th Plan outlay. The State Planning Board presided over by the Chief Minister has approved the Plan document recently. The focus of the Plan will be on agriculture and allied sectors. The paper is put for wide discussion at different levels like stakeholders, experts, the academic community and socio-political groups. Indian Farmer’s Movement (Infam) being an organization of the farmers, by the farmers and for the farmers is in the forefront to make the Five- year Plan more people-oriented. The agricultural sector in the state is being run on the broad lines of ‘public-private partnership model’ in the sense that the assets are owned by the farmers by way of land and other facilities of a primary nature. The Government has to provide marketing avenues for farm products,
warehousing facilities, cold storage chains, market yards, convenient and basic transport with good road connectivity all aimed for better cohesive infrastructural network for better coordination of producer farmer and consumer public. Now the farming community is the most exploited class as is evident from the wide gap between the farm gate price of the product and end consumer price. The farm products are invariably easily perishable so much so the farmer is forced to dispose them of as early as possible making him vulnerable to the vested interests .In the case of inputs, mainly seed, fertilizer, pesticides and the like, the farmers have been exploited taking undue advantage of the time factor and situation arising beyond their control. Finance being an important element for farming operations is not made available from the normal banking institutions so much so they have to seek funds from money lenders paying very high interest. This makes the cost of
funds very high and farmers are at the mercy of the greedy moneylenders. The institutional mechanisms like banking and other recognized sources are denying their services to the farmers in spite of statutory instructions in this regard. For example, there is a legally binding stipulation that 18% of the total credit should be given to the agricultural sector. This norm is violated and the norm has never been kept at any time. Even now it is far below the binding limit as is evident from the published figures: out of a total of more than the Rs 43 lakh crore loan disbursed by scheduled commercial banks in the country only Rs 5.2 lakh crore has been disbursed to the farm sector which forms only less than 8%. Providing appropriate credit at the right time of requirement at reasonable cost/ interest would have given great solace to the farming community. In Kerala there is another anomaly in the calculation of
the percentage figure for farm loans: the 18% is calculated for net bank credit, not on gross bank credit.(net bank credit is obtained after deducting the NRI deposit figure from the total loan disbursal). The state having high NRI deposits is made to suffer another hurdle in the matter of agricultural loans. Kerala has a very congenial atmosphere for farming having plenty of rainfall and good spread. It is very rich in fauna and flora. The farmers are also very enterprising and a better-educated lot. All these present immense scope for farm activities but lack of postharvest infrastructure to dispose of their products with a good bargain for remunerative income to sustain in the field has put them in great distress. Low value addition and high wastage make the farmer the great loser. This results in corresponding loses of business opportunities, erosion in farm income and high retail price. An integrated approach bringing farmers, processors, retailers and exporters together and linking agricultural production to the market so as to ensure maximization of value addition, minimize wastage, increase shelf life and improve farmers’ income through adequate infrastructure should be the targeted goal for the 12th Plan. India as a whole is having very low facilities for processing its diverse farm products at a meagre 2% compared to the Philippines (78%) and China (23%) which shows the pathetic situation at the farm level. There should be efforts to encourage flow of knowledge on agricultural best practices through extension efforts involving self-help groups (SHGs), farmers’ groups, producer companies, possibilities of collaborative farming and improved levels of mechanization through equipment hiring leading to a holistic and sustainable level of agricultural practices. The Plan implementation should succeed in acting as a game changer so as to be an instrument to streamline and disintermediate the agri-supply chain by establishing direct backward and forward linkages thereby reducing wastage and providing the much-needed plug and play model under a single window for the benefit of small and medium farmers/entrepreneurs. Infam wants to give the message of planning and various aspects pertaining to it meant for the development and sustainability of farmers. The stakeholder discussions and consultations with the active support and involvement of experts and the academic
Kerala has set an ambitious targeted outlay of more than Rs 1 lakh crore from its PASSLINE
February 29-March 31, 2012
16 sector. As the dream of owning a house has gone out of a common mans dreams with unrealistic pricing prevalent as of now, the budget should stimulate more demand and the limits and exemptions should be harmonized with the rising interest rates and property prices.
By Prakash James
T
he Union Government should make the budget a policy budget rather than a statement of accounts. The infrastructure sector has huge investment requirements that cannot be fulfilled by the Government alone. To make infrastructure financing more broadbased and encourage retail participation, the Government may also extend the tax deduction on investment in long-term infrastructure bonds and expand the scope of tax-free bonds. The Government should step up its allocation for the infrastructure sector to give a fillip to the sector. The SME sector needs reforms: SMEs are the backbone of our
Prakash James
community are to be designed and undertaken at the initiative and active participation of like-minded people. The next Plan period—12th Plan— coincides with the Millennium Development Goals (MDG) of the UN projecting specific targets to achieve minimum standards of life for the people at large in the world. By this stipulation we have to achieve certain standards in the food, health ,education and infrastructure setup by 2015.To make the dream a possible reality Infam would like to give some suggestions for consideration and future discussions.
Finance infrastructure growth manufacturing sector. They account for 40% of the gross industrial value added in the country and 47% of manufactured goods exports. They provide employment to about 13 million people in the country. Since 2005, de-reservation of SSIs has been carried out at an accelerated pace and currently only 35 items remain on the reserved list. We feel that it is important to upgrade the technology of this sector in order to compete with imports. Create a technology acquisition fund to enable SMEs
to acquire technologies wherever available. Facilitate creation of a mechanism to effectively link up SMEs with the technology providers and users of the products. Minimize statutory compliance requirements for them. Raise the monetary limit of exemption from excise duty from Rs 1.50 crore on annual turnover. Realty sector reforms: We urge the Government to provide good amounts of relief to the realty
cultivated under ‘organic farming’ and the products were marketed as ‘organic products’ even to foreign countries. Plenty of areas under lease for cultivating tea, coffee, cardamom etc are available and they can be converted as special agricultural zones to run under the patterns of industry and IT
structure for maintaining freshness and quality, wholesale and retail outlets for trading and distribution. The state is having three major urban markets— Kozhikode, Kochi and Thiruvananthapuram—and three rural markets—Sulthan Bathery, Muvattupuzha and Nedumangad—es-
zones. Land is a scarce item for Kerala so much so it should not be allowed to be converted as forests under the total control of the Central Government. ‘Carbon credits’ from International sources will be a good avenue for funds as the farming operations are considered as the most effective way to mitigate ‘carbon emission’ problems. Cultivable land under the Forest and Plantation Corporations and other agencies could be brought under the scheme. Production, harvesting, post-harvesting operations, value addition process and marketing chains should be wholly made organic to the extent possible.
tablished under the European Economic Community (EEC) programme which needs to be revamped utilizing modern technology and know-how for better utilization of the facilities. A ‘market authority’ having total control over planning, execution and operation of all six markets spreading over the key points of the state could effectively manage the facilities for better performance. Now it is managed in a very shabby manner without serving any of the objectives of the project. Establishment of cold chains, packing houses, wholesale and retail outlets and other forms of trading infrastructure could be designed and executed. Wholesale market with modern ware housing facilities and proper linkages with major cities having retail outlets along with
Goal of the future: Food security, nutrition security, livelihood security and water security Challenges: Low agricultural productivity; inadequate market; inferior post-harvest infrastructure; inefficient supply chains; rising and volatile price swings; lack of access to healthcare; quality and quantity of water; lack of policy initiative by the Government. 1) Special agri-production zones and mega-food parks: Export zones, manufacturing zones and other sorts of exclusive areas have been earmarked for industry, IT and manufacturing sectors with hundreds of hectares for each project, special economic zones and good spread extending seven-eight months. Humidity level is high and they have temperate climate. The land available with the Government and those taken over after the lease period could be utilized. Separate zones for medicinal plants, exclusive items of agriculture, tree crops, fruits and vegetables etc can be designed and implemented. Recent news about Nelliampathy plantations in Palakkad district is an eye-opener as the private plantations taken over after the lease period have been handed over to the Forest Department. These were areas
2) Marketing infrastructure: Farm products have got short shelf life and are easily perishable necessitating facilities for safe handling, infraPASSLINE
February 29-March 31, 2012
Presently, the limit for deduction on interest paid on a home loan is Rs 1.5 lakh from the taxable income. You get an exemption on repayment of the principal amount under Sec 80C. The limit for this deduction is Rs 1 lakh. In order to stimulate the housing sector credit, we request enhancing the income tax exemption limit to Rs 3 lakh against interest paid on housing loans. Also, the principal repayment may be treated as a separate tax exemption entity and excluded from benefits under Sec 80C. Increase the limit of affordable housing price band to at least Rs 40 lakh due to the increase in costs of raw materials to get 1% subsidy for this sector and also to consider affordable housing as priority lending so that banks could offer concessional rates to keep the cost within the reach of buyers. (Mr Prahash James is the President of the Indian Chamber of Commerce (ICC), Kochi) easy access to seaports and airports should be made an integral part of the whole exercise. 3) Water harvesting: The state is endowed with plenty of quality water resources because of the heavy rains having good spread throughout the year. The average aerial distance being less than 50 km and the height difference being 1,500 metres from MSL makes the terrain very steep. The velocity of flow is so great that the water flows down to sea within a short span of time. This necessitates effective ways to harvest and conserve water at every possible and convenient spot. Large and small reservoirs at suitable places in the high ranges could act as efficient storage tanks.”Water bodies will be beneficial to wildlife and apprehension as to adversely impact on the environment and ecology is unfounded.” (observation made by the Supreme Court in ‘Mullaperiyar Environmental Protection Forum v Union of India in 2006). The present tendency of leaving everything concerned with water storage and farming aspects to self-proclaimed ‘ecology and environmental protectors’ who are backed and driven by vested interests at the behest of multinational corporations and other manipulators needs to be effectively handled to achieve ‘water security’ and ‘energy security’ for the country. The terrain of the state is highly suitable for hydro power which is a globally accepted source of ‘renewable energy’. The above theme has to be widely discussed with stakeholders, experts and social activits. Meticulously planned strategies for achieving the best results out of 12th Plan should be evolved, designed and put to action. (Dr M C George is National Trustee of Infam)
COMMODITIES
17
According to indications, the fiscal deficit of 4.6% of GDP set in budget estimates could shoot up to 5.5% in which case it would have to be reined back to 4.9% in 2012-13 budget estimates. By Sreekumar Raghavan
U
nion Finance Minister Pranab Mukherjee is indeed in an unenviable position: the Eurozone debt crisis and US financial crisis have impacted the economy adversely and he needs to employ all possible strategies to keep fiscal deficit under control. According to indications, the fiscal deficit of 4.6% of GDP set in budget estimates could shoot up to 5.5% in which case it would have to be reined back to 4.9% in 201213 budget estimates. The Finance Commission had recommended that fiscal deficit should come down to 4,2% of GDP in the 2012-13 financial year. The Finance Ministry seems to be targeting the commodities sector to gain some additional revenue lost through lower tax mobilizations and a fall in industrial growth and GDP growth which is now pegged at 6..6%. The Finance Ministry in January raised import duty on gold and silver to discourage import of the two precious metals. The import duty on gold was fixed at 2% of value from a fixed Rs 300 per 10 gm earlier while for silver it was pegged at 6% from the earlier fixed rate of Rs 1,500 earlier. This has led to increased import cost for jewellers who in turn have to pass on the costs to customers, according to the Bombay Bullion Association. The association feels the demand for precious metals would come down in 2012. The new import duty structure has been met with resentment from the bullion and jewellery traders in the country. Gold is the second most imported commodity in the country by value after crude oil and hence the Government wants to curtail trade deficit through discouraging gold imports. In addition to this, the Indian Government has now raised the base import price of gold by 5.7& to $556 per 10 gm and that for silver by about 12% to $1,067 a kg. The Government has also revived a proposal to impose commodity transaction tax (CTT) on the lines of the securities transaction tax (STT) that was first announced in the 2008-09 budget by P Chidambaram but not implemented because of stiff opposition from the commodity futures industry and the Consumer Affairs Ministry. Chidambaram had proposed to levy a tax of 0.017% on commodity derivatves (Rs 17 on Rs 1 lakh worth of transactions) but was opposed on the grounds that it would hurt the growth of the market which is yet to attain the maturity, volumes and depth of the stock markets in the country.
Sector may be used to rein in fiscal deficit trading on the exchange platforms, is already taxed to the tune of almost 12%, with taxes such as mandi tax, cess, handling costs and warehousing charges, they say. The Finance Ministry is also toying with the idea of a uniform stamp duty of Rs 300 per crore (0.0003) percent for all kinds of derivatives trading including commodities, stocks and electricity, but this, again, has been met with resentment from the industry. Understandably, the Finance Ministry has proposed an amendment to the exist-
ing Indian Stamp Act to align it with new requirements of the market and also to ensure substantial increase in revenue collection for states. Even as the UPA Government can pride itself on bringing food inflation to negative levels, the falling economic growth and failure to rein in fiscal deficit and poor manufacturing sector growth has shaken the confidence of the global community with FII inflows falling in recent times leading to fall in rupee value against the dollar. Kerala budget: The Kerala bud-
The Finance Ministry is also toying with the idea of a uniform stamp duty of Rs 300 per crore (0.0003) percent for all kinds of derivatives trading including commodities, stocks and electricity, but this, again, has been met with resentment from the industry. Understandably, the Finance Ministry has proposed an amendment to the existing Indian Stamp Act to align it with new requirements of the market and also to ensure substantial increase in revenue collection for states.
The commodity, before it comes for PASSLINE
February 29-March 31, 2012
get to be presented after March 18 could face challenges regarding revenue mobilization in view of shortfall in realization of commercial taxes in December and January. In the last budget, revenue deficit was pegged at Rs 5533 crore but it look likes the actual figures would be much higher. The State Government also needs to find money to fund several pending projects such as Kochi Metro, waste treatment plants to be set up in cities and towns and infrastructural facilities. Kerala hasn’t made much progress in the Kuttanad package to uplift the fertile lands in the region facing severe distress because of lack of irrigation and supportive infrastructure. The Kallada Irrigation Project in Kollam aimed at providing water to 61,630 ha of land is still languishing for lack of political will with cost escalating from Rs 13.28 crore in 1961 to Rs 714 crore in March 2010, according to official data. The new year has begun on a positive note for the spices sector in Kerala with the resumption of cardamom auctions, prices having soared from Rs 350 a kg to Rs 750 thanks to good overseas demand and good quality of the produce. To address the concerns of lower production and productivity of Indian pepper, the Spices Board has taken steps to introduce a high-yielding variety from Madagascar which has also found success in Vietnam. India’s average pepper productivity is 400 kg a hectare as against 7,000 kg recorded in Vietnam. The falling rubber prices continue to create anxiety for growers and traders. Prime Minister Manmohan Singh has swiftly moved recently to clear obstacles in the path of the Vallarpadam Transshipment Project in Kochi while the State Government needs to move swifty with respect to Kochi Metro rail as delay would lead to escalation in costs and get the required allocation for the project in the Union budget. (The author is Chief Commodity Strategist at Commodity Online, India’s leading provider of information, analysis and trading services)
STOCK
18
Right time for bottom fishing Federal Bank Yearly High Low : BSE
Beginning 2012 the market is showing signs of recovery and both the Sensex and Nifty are hovering above 17,000 and 5,000 levels, respectively. The rupee recovery and the drastic measures taken by the RBI to rein in inflation have given a fillip to the Indian economy. Passline News Service
T
he second edition of the UPA Government is marred by controversies like corruption, slow implementation of second-generation reforms, widening deficit, alarming rupee depreciation and high inflation coupled with sulking coalition partners, all of which have made the economy withering. The macro factors like European meltdown and the euro crisis had a double whammy effect on the economy. The Sensex had come down to 15,454.92 and Nifty 4624.30 points ending December 31, 2011. Beginning 2012 the market is showing signs of recovery and both the Sensex and Nifty are hovering above 17,000 and 5,000 levels, respectively. The rupee recovery and the drastic measures taken by the RBI to rein in inflation have given a fillip to the Indian economy. The market is expecting easing of interest rates in the next review meeting of the RBI because of the favourable economic climate. The market is also eagerly awaiting the UP election outcome and the budget proposals to have a further recovery, say stock market experts. According to them, if the Congress can better its position in UP and wins the third position, both Mulayam Singh and Mayawati whoever bags the highest number of seats may seek the party’s support for forming a government. In that scenario the UPA ministry will get strengthened at the Centre too and can perform better at the Centre, especially in messy areas like 100% FDI in retail and further opening up of the insurance sector, says an expert on stock markets. The present upswing in the index is mainly attributed to the upcoming Union budgets which may dole out sops to enable a growth momentum in all sectors. The main reason, according to a stock broker, is the outcome of the 2G telecom licence auct The present upswing in the index is mainly attributed to the upcoming Union budgets which may dole out sops to enable a growth momentum in all sectors. The main reason, according to a stock broker, is the outcome of the 2G
telecom licence auction which will increase money supply to the Government exchequer and cut down the budget deficit to an appreciable level. ion which will increase money supply to the Government exchequer and cut down the budget deficit to an appreciable level. This financial stability will make the Government offer many concessions to industry, business and people. The purchasing power of the people is increasing as technology advances and the prices of consumables go down. After the budget, he expects, there will be a spurt in the production and sale of automobiles. The same situation may prevail in the mobile phone sector also. In almost all sectors there will be visible changes. The stock market will also reap gains during the coming months. This may also boost investments in shares. Production and services of companies and banks will also go up to create a bullish trend in the stock market. This context calls for a change in the attitude of Keralites who often project a low profile towards speculative trading. Moreover, a lot of training is needed for creating stock market awareness among Malayalis. Though the literacy rate in Kerala is high it is the trade-savvy Gujaratis and North Indians who make it rich on the bourses. Almost all banks, companies and institutions in India are faring well. This phenomenon is visible in the performance of Kerala companies and banks too. Available data on Kerala-based banks and companies corroborates this. State Bank of Travancore (SBT) brings hope as it fared well in the last fiscal. SBT had declared a dividend of 80% last year. The bank’s merger with the State Bank of India (SBI) is envisaged even though there is a war of words going on between the management and the union. If the merger materializes the price of the share may surge above Rs 1,000. Experts say that the share price of SBT, Federal Bank and South Indian Bank will double in three years. PASSLINE
Year Ending 23/02/2012 30/12/2011 31/12/2010 31/12/2009 31/12/2008 31/12/2007 29/12/2006 30/12/2005 31/12/2004 31/12/2003
High (Rs.) 480.00 476.60 501.00 270.00 366.00 498.00 237.25 207.10 404.40 278.55
High Date 14/02/2012 07/07/2011 02/11/2010 20/10/2009 03/01/2008 16/11/2007 06/12/2006 08/08/2005 23/04/2004 29/12/2003
Low (Rs.) 333.00 322.10 233.80 110.50 113.05 188.00 137.10 133.15 125.00 81.80
Low Date 02/01/2012 28/12/2011 04/01/2010 03/03/2009 27/10/2008 07/03/2007 13/06/2006 25/01/2005 29/11/2004 07/01/2003
South Indian Bank FV: Rs 1(share split from Rs.10 to Rs.1 in 2010) Bonus AnnouncementsYearRatioEx Bonus Date20081:416 / 10 / 2008 Yearly High Low : BSE Year Ending 23/02/2012 30/12/2011 31/12/2010 31/12/2009 31/12/2008 31/12/2007 29/12/2006 30/12/2005 31/12/2004 31/12/2003
High (Rs.) 28.30 26.10 227.50 171.00 285.60 233.00 86.80 85.70 96.00 85.00
High Date 22/02/2012 13/06/2011 21/09/2010 07/12/2009 03/01/2008 31/12/2007 27/12/2006 11/08/2005 16/01/2004 26/12/2003
Low (Rs.) 19.90 17.45 21.10 42.70 50.00 80.00 51.00 52.05 40.10 34.00
Low Date 02/01/2012 10/02/2011 23/09/2010 24/02/2009 03/12/2008 05/04/2007 22/05/2006 02/06/2005 10/08/2004 19/03/2003
Geojit FV:Rs.1 Yearly High Low : BSE Year Ending 23/02/2012 30/12/2011 31/12/2010 31/12/2009 31/12/2008 31/12/2007 29/12/2006 30/12/2005 31/12/2004 31/12/2003
High (Rs.) 23.90 34.40 46.00 52.50 131.55 88.00 280.65 199.80 145.00 54.10
High Date 22/02/2012 04/01/2011 09/04/2010 05/06/2009 18/01/2008 17/12/2007 25/09/2006 15/12/2005 15/12/2004 15/12/2003
Low (Rs.) 15.00 14.05 28.90 16.50 20.05 30.10 24.25 72.00 46.00 13.30
Low Date 09/01/2012 21/12/2011 01/09/2010 05/03/2009 27/10/2008 05/03/2007 19/10/2006 11/05/2005 05/08/2004 14/05/2003
KSE Ltd FV:Rs.10 Yearly High Low : BSE Year Ending 23/02/2012 30/12/2011 31/12/2010 31/12/2009 31/12/2008 31/12/2007 29/12/2006 30/12/2005 31/12/2004 31/12/2003
High (Rs.) 254.00 251.00 287.95 246.50 157.50 165.00 230.00 263.00 129.00 86.00
High Date 10/01/2012 01/11/2011 09/07/2010 30/12/2009 03/01/2008 04/01/2007 18/07/2006 20/07/2005 13/09/2004 30/12/2003
Low (Rs.) 210.00 156.00 162.00 86.00 82.00 112.35 150.00 106.00 65.05 36.00
Low Date 02/01/2012 15/02/2011 06/10/2010 13/01/2009 03/11/2008 31/10/2007 09/06/2006 06/01/2005 22/01/2004 30/01/2003
V-Guard Ltd Face Value Rs.10 Yearly High Low : BSE Year Ending 23/02/2012 30/12/2011 31/12/2010 31/12/2009 31/12/2008
High (Rs.) 212.50 240.80 215.50 91.45 98.90
High Date 17/02/2012 21/07/2011 11/11/2010 14/12/2009 13/03/2008
Low (Rs.) 153.25 139.00 79.30 38.20 36.50
Low Date 02/01/2012 11/02/2011 25/02/2010 09/03/2009 27/10/20
The overall economic scenario will be viewed on the basis of GDP and per capita consumption. India’s gross public debt-to-GDP ratio fell from 75.8% to 66.2% between 2007 and 2011 compared to the US’ gross debt-to-GDP ratio of about 92.3%. India is among the most grossly underpenetrated markets. The per capita cement consumption in India is 148 kg as against the world average of 260 kg. Per capita consumption of steel stood at 40 kg compared with the world average of 198 kg. Per capita power consumption stood at 733.5 kWh in FY 2009 compared to13647 kWh in the US and 2453 kWh in China. February 29-March 31, 2012
BANKING
19 The reason for the forced resignation of Mr Chaturvedi is said to be differences of opinion he had with board members. But board members and employees, who wish to remain anonymous, say that the RBI had warned the board members and tightened its noose after the release of the the third quarter results. The board members got into a panic and some of them including the pals of Mr Chaturvedi pointed an accusing finger at him, which eventually led to his putting in his papers. Passline News Service
W
hen PASSLINE in its issue dated December 1-31, 2010, carried a story on the Thrissur-based Dhanlaxmi Bank (DLB) thriving on the edge of uncertainty and disorder, many raised their eyebrows. Few could believe that an 83-year-old (then) bank which weathered many a storm during its chequered history and which had for years been a model of steady and honest banking practices would all of a sudden be so inefficiently managed that its profit would take a beating in the half-year period ending September 30, 2010, declining to a paltry Rs 1.62 crore. Now the same bank has made a loss—hold your breath—of a whopping Rs 37 crore in the third quarter this year. And to top it all is the unexpected resignation of Mr Amitabh Chaturvedi , who had been touted as the saviour of the bank. If one remains sceptical of the future of the bank, in spite of the change effected at its helm, one is not to blame. The PASSLINE issue had cogently put forward the reasons for the plight the bank had found itself in.
bers. But board members and employees, who wish to remain anonymous, say that the RBI had warned the board members and tightened its noose after the release of the the third quarter results. The board members got into a panic and some of them including the pals of Mr Chaturvedi pointed an accusing finger at him, which eventually led to his putting in his papers.
66 new branches, most of them outside Kerala, to give the bank a pan-India image. He has increased the number of employees from 1,500 to 4,500, He was however unable to increase the net profit; on the other hand it was steadily declining drastically one quarter after another (see table 1). The sighted reason for this by
vided into two classes for compensation. The old employees were getting salaries according to the pay structure proposed by the Indian Banks Association (IBA) and they are eligible for pension. But to attract talent from other private sector and foreign banks, the bank decided to offer higher salaries as a policy, classified as cost-
The new CEO and Managing Director, Mr P G Jayakumar, has been working in DLB for more than three decades and was Executive Director at the time of taking over the new responsibility. Is Mr Chaturvedi responsible for the present plight of the bank?
Mr Chaturvedi joined DLB in October 2008 with experience in new-generation institutions like ICICI Bank and Reliance Capital. He is the impatient type of man who looks for sudden growth and results. But DLB with its traditional ways of functioning and legacy could not keep pace with his pace or style. He dreamed to make DLB the largest private secAmitabh Chaturvedi tor bank in Kerala by DLB was founded 2013. When he assumed in 1927 by the Brahmin com- charge DLB’s deposits were munity in Thrissur with the aim only Rs 3,500 crore and loan of helping small traders and portfolio Rs 2,500 crore, but by businessmen. Though the September 2011 they grew to bank was small in size it Rs 13,815 crore and Rs strictly followed banking prin- 10,130 crore, respectively. ciples. Signs of trouble, how- During his tenure he opened ever, surfaced with the procure(rupees in crores) ment of 36% of its shares by Bangalore-based business2010 June man Mohan Rao who became 2011 March the largest shareholder. There were allegations that he took loans in dubious names and siphoned off funds from the bank resulting in huge accumulation of bad debts. Afterwards he diluted his stake acTotal business (as on Dec 2011) cording to RBI stipulations. The reason for the forced resignation of Mr Chaturvedi is said to be differences of opinion he had with board mem-
Can Jayakumar get DLB back on track?
Operating profit for the quarter Net profit for the quarter Net profit for nine months Employee cost for three months
DLB spends Rs 73 crore as its salary. According to the employees’ union, the paltry amount of profit shown in the past few years was a mirage by window-dressing. They allege that the bank has been doing all types dirty tricks like deferring payments, debiting amounts to depositors’ accounts as service charges and showing bogus loan portfolios to the tune of Rs 1,500-Rs 2,000 crore and books 2% as processing fee income etc. Many strongly feel that the RBI’s strong intervention should have been there after the release of the latest quarterly results which caused the blame game in the board room and eventually paved the way for Mr Chaturvedi’s resignation, sources say.
The bank’s future: Mr Jayakumar has to go a long way to get the bank back on track. Since he is one of the his critics and the employees’ to-company (CTC). longest-serving employees in union is that the bank ac- PASSLINE has come to learn the bank, he knows where the cepted deposits at high rates from reliable sources that there cancer has spread. Happily he of interest and lent at compara- are people in DLB drawing Rs has started his job in right eartively low rates. This, coupled 5,00,000 a month as salary, nest. He has sent letters to his with skyrocketing operational higher than what Mr Chaturvedi employees to strictly adhere expenses, including employ- himself gets! A close to the regulatory ees’ salary expenses and look at the financial guidelines both in other overheads, ruined the results of DLB and business and operabottom line. Certain high-pro- their comparison tions. The austerity file investments of the bank de- with peer banks can drive is aimed at impreciated in value and the bank easily reveal the dent proving the deterioratlost its money, they say. The employees’ cost has ing cost-to-income investment in Destimoney Se- made in DLB’s ratio, which has been curities is one of them. The health (see table 2). rising in the past bank had invested Rs 13 crore The cost of employP G Jayakumar couple of years. The initially in this company but its ees is three times cost-to income ratio present market value is only higher than in that in City increased to 84% at the end Rs 5 crore. Union Bank (CUB), a bank of last fiscal from 56% in The most specific reason which is almost the same size 2008–09. for the bleeding of the bottom as DLB having the same volMr Jayakumar has another line is Mr Chaturvedi’s com- ume of business. The three- task: to convey the message pensation policy, it is pointed month employees’ cost in that the unexpected resignaout. The employees were di- CUB is Rs 28 crore whereas tion of the former CEO has not affected the bank. Finding Table 1 capital for further development and increasing NPAs will also 6.03 2010 Sept 1.62 2010 Dec 7.26 be a problem for the bank. At 11.15 2011 June 3.40 2011 Sept 4.35 the same time speculations and rumours are strong in the Table 2 market that banks like Punjab Performance results National Bank (PNB) and Oriental Bank of Commerce are Dhanlaxmi KarurVysya Federal South Indian City Union eyeing DLB. The employees’ Bank Bank Bank Bank Bank union is however demanding 23,000 52,000 80,000 55,000 26,000 amalgamation with a public -36 190 419 179 105 sector bank. Whatever it is, -37 125 202 102 72 the coming days will be cru-29 355 539 280 208 cial for the new CEO as well as DLB. 73 68 138 89 28 PASSLINE
February 29-March 31, 2012
20
F
or 46 days during DecemberJanuary last, we saw Kerala spending—and selling. It was the awesome power of the state’s desire to buy because Keralites can’t live without doing it and continuing to do it! Things were being sold at discounts, some at great discounts. What deals! Who could resist them! Such prices used to be a lot of money, but now it’s not. But perhaps it is, but we saw Kerala spending! And you and I were part of it. When my neighbour buys something, can I keep off? We were getting what we wanted at great prices. The reference is to Kerala’s grand idea of promoting commerce by facilitating a platform for customers to gain maximum out of their purchases, the Grand Kerala Shopping Festival (GKSF), literally a festival of sales and purchases, by vendors and buyers, promoted by the state government. GKSF has been there for the last few years (it was started in 2007), benefiting both parties. It is not merely a traditional selling and buying scheme but a venue for grabbing your good of destiny. After its introduction, perhaps inspired by mega-events outside the country like the Malaysia Mega Sale Carnival and the Dubai Shopping Festival, it became popular, or so thought many, including the Government. ‘Discounts’ have remained a great attraction for Keralites, and the shopowners definitely cashed in on this weakness, making, as stated above, exciting offers and bonanzas during the festival to beckon shopaholics to their shops. The shopping hungama, sponsored by the South Indian Bank (SIB), is however considered by many, mostly traders, as just an eye-wash. It is a ‘grand success’ only for the state authorities, they say. By offering up to 101kg of gold as the megaprizes and 0.5 kg of gold as second prize the Government had spent about Rs 15 crore for its publicity campaigns. Besides the fat offers, weekly prizes were there for ‘lucky winners’. The festival also provided attractive value-added tax (VAT) refund to
Grand Kerala Shopping Festival (GKSF), the shopping hungama, sponsored by the South Indian Bank (SIB), is considered by many, mostly traders, as just an eye-wash. It is a ‘grand success’ only for the state authorities, they say. By Radhika C Pillai
Grand Kerala Shopping Maul? Keralites from outside the state. In spite of these bonanzas shopowners say they didn’t get any extra benefits from the grand fete, though a few reaped some advantages through sales. “GKSF is just a gimmick played by the Government, nothing more”, says a shopowner who wishes to remain anonymous. “In its present form the festival is not very appealing either to buyers and customers or to traders. The authorities should think of making it more peoplefriendly,” he says. A majority of merchants feel that GKSF has lost its sheen over the years and it should be revamped. Traditionally, analysts point out, the consumer and the marketing sector in Kerala have exercised great influence over the PASSLINE
state’s economy. Any rise in prices or fluctuations in them can adversely affect the entire system. So, scratchand-win coupons and mega-prizes alone can’t create any magic. The whole concept behind the shopping fest should be revived to make it more beneficial to the shoppers, shopkeepers and the entire economy. But some big gold merchants overtly express their joy over the increase in their business during the time. “Our customers were very excited about the grand fete. Several customers had even postponed their shopping moments to these days”, says Mr Anand of Malabar Gold. As part of the shopping festival, the showroom provides coupons for each 2gm purchased. “This helped both big and small shoppers to get February 29-March 31, 2012
some prizes for each purchase. The shopping festival was a great success, though there was lack of coordination among all concerned which created some initial problems,” he says. “Compared to earlier years, a dip in sales was visible during the present season. The number of participants had also declined this time,” says Mr P A M Ibrahim Kunju, state Vice-President, Vyapari Vyavasaya Samithi. “The scratch-and-win offers announced by the Government couldn’t create any waves during this festival. Since there were no assured gifts on offer, even children didn’t pay any attention to these gimmicks”, he adds. On opening most coupons what greeted the buyers was ‘better luck next time’. Contradicting this view the authorities claim that the scratch-and-win coupons issued numbered some 50 lakh this time and that not all can hope to win prizes. Despite this many had won prizes, they say. The timing of GKSF has also invited criticism from all corners. December-January is a festive occasion and it is usual that the state witnesses huge inflows of tourists and NRIs during this time. Though the authorities claim that GKSF is the reason for the upsurge in tourism during the period, it is quite evident that it is not so, they say. It would have been ideal if the festival had been arranged immediately after Onam or February-March when the business sector is lashed by university and school exams. The night shopping festival initiated as part of GKSF also has drawn flak. The prime intention of this much-hyped initiative was to add colour and glitz to the festival. But law and security concerns forced the shopowners to down their shutters early. Mr Ibrahim Kunju says that it is not easy to introduce night shopping in a city like Kochi where the people nest home early. “How can the gold merchants open their shops at night when the theft rates are high even during day time?” he asks.
HERITAGE
21
Passline News Service
O
nce there existed a port town on the banks of the River Periyar which was famous for its mesmerizing beauty, immense wealth and aromatic fragrance of spices. Swaying palms and sparkling turquoise water added to the charm of the place. The abundance of gold and silver made it a hotspot for merchants and coastal traders. Unfortunately some curse befell the town and the entire area vanished into history. The place was called Muziris, a frequently heard project nowadays owing to its significance and social relevance. History has it that the fabled port city existed between the first century BC and fourth century AD, and went off the world commercial map in 1341 AD. The once-prosperous city port is now pressed down by a small hamlet called Pattanam, 30 km from Kochi. Pattanam and nearby coastal areas have the remnants of
Muziris through the monuments of the bygone era. It was realizing the possibilities and potential of discovering these lost treasures that the Government of Kerala proposed the ambitious Muziris Heritage Project some time ago. The project is envisaged as a non-formal academic site for the study of Kerala history, archaeology, folklore etc. The aim of the project is to make Kerala an international tourist destination, thereby taking advantage out of it. It is evident that Muziris the ancient port city was once a spice city where ancient mariners used to anchor. Greeks, Romans and Chinese were among them who thronged
Muziris
Revival of a ‘lost’ project It was realizing the possibilities and potential of discovering the lost treasures that the Government of Kerala proposed the ambitious Muziris Heritage Project some time ago. The project is envisaged as a non-formal academic site for the study of Kerala history, archaeology, folklore etc. The aim of the project is to make Kerala an international tourist destination. the port to buy and sell varieties of spices, clothes and utensils. This concept bolstered the authorities to launch another ambitious plan named ‘Spice Route’ on the sidelines of the mainstream project. The proposal, like the ‘Silk Route’, has been initiated with the help of UNESCO. Economists believe that this launch will help to open the
windows on bilateral and multilateral exchanges of data and other historic researches. The first phase of Muziris was initiated in September 2008, during the reign of the LDF Government. It is considered to be the biggest heritage conservation plan with a Central Government aid of Rs 41 crore. It is It was realizing the possibilities and potential of discovering these lost treasures that the Government of Kerala proposed the ambitious Muziris Heritage Project some time ago. The project is en-
visaged as a non-formal academic site for the study of Kerala history, archaeology, folklore etc. The aim of the project is to make Kerala an international tourist destination, also a pet project of former state Finance Minister Thomas Isaac who hails from this area. But unfortunately owing to the Assembly elections and some allegations the project got stalled for many months and the allotted money was used for other purposes. Initially the ruling UDF was hesitant to take up the project. Continuing controversies and allegations forced the project to go into hibernation. Rivalry among different Government departments also diminished its scope. But, fortunately, realizing the possibilities of Muziris, the UDF Government too showed great interest in reviving it. Now state leaders and local MLAs are actively participating in the conservation of Muziris. It is now hoped that the stalled first phase will be inaugurated soon. The Muziris Heritage Project encompasses eight panchayats and two municipalities. It will cover places from both Ernakulum and Thrissur districts— Chendamangalam, Chittattinkara, Vadakkan Paravur, Vadakekkara and Pallippuram in Ernakulum and Kodungalloor, Mathilakam, S N Puram, Methala and Eriyad in Thrissur district. Historic monuments, old churches synagogues and many ancient mosques come under this circuit. About Rs 90 crore is expected to be spent on the project. As part of the grand PASSLINE
event, the authorities are planning to set up 27 museums to showcase the lifestyle, maritime trade and handicrafts of the past era. These museums will also showcase the contemporary art and literature of the era. Today the ambitious Muziris project is attaining global attention through its significance. It is listed by the New York Times as one of the best
45 places to be visited. The excavations at Kodungalloor and Pattanam show the traits of the earliest trade links with the Roman Empire and other ancient civilizations. The shards of pottery found at the Kottappuram fort show the signs of Portuguese and Chinese settlements. A higher influence of Roman, Greek and Dutch cultures is quite visible in the architectural and cultural monuments in Muziris. The findings in excavations till today explore the relics of the long and proud history of Kerala. Significant progress is envisaged after the implementation of the project. “Unlike other projects, Muziris is an integrated one and this aspect
February 29-March 31, 2012
helps to sustain the pace of the development,” says Mr Benny Kuriakose, the Chennai-based architect. The master plan of this heritage conservation project has been drawn by him. “Once the plan gets implemented, it will benefit the entire society. The basic infrastructure such as roads and waterways in the area will improve and it will reflect in the lives of the people too”, he says. The primary purpose of the project is to encourage research and to bring out the educational aspects of it rather than to promote tourism. “There is no doubt that the project will be beneficial to thousands of historians and research students’, says E M Najeeb, President, Kerala Travel Mart. “Kerala will soon become a centre of attraction,” he says. Still it seems that controversies will continue to haunt the project. The latest one surrounds the Kochi Muziris Biennale Project. Many prominent artists in Kerala have
raised their concern over the lack of transparency in the fund allocation. But the authorities are now trying their best to settle the issue soon. According to Najeeb, allegations and controversies are always part of any project. People should pay no heed to them unless they hamper development, he says. Once these clouds surrounding it disappear the Muziris project is expected to bring development in diverse areas such as tourism and spices trade, benefiting the Indian economy to a large extent. Undoubtedly if the resent pace is sustained all through the way, Kerala can hope to achieve an important position in the world map.
TOURISM
22 For the second year running, Kerala has retained its status as the best tourist destination among the Indian states, leaving Rajasthan, Goa and Karnataka way behind for the coveted honour, reveals a survey conducted by the Nielsen Company. The accolade for the state comes close on the heels of Kerala Tourism’s promotional ad film, Your Moment Is Waiting, featuring in the newest edition of Limca Book of Records.
listed it among the important criteria and 33% picked it as their chief criterion.
Kerala has been named the best tourist destination among the Indian states, leaving Rajasthan, Goa and Karnataka way behind, for the coveted honour, according to a survey conducted by the Nielsen Company. It is for the second year running that Kerala has achieved this distinction. The accolade comes close on the heels of Kerala Tourism’s promotional ad film, Your Moment Is Waiting, featuring in the newest edition of Limca Book of Records.
In an affirmation of the state’s huge tourist appeal, infrastructure and scenic grandeur, the survey says, “Kerala topping the list is no-brainer.” The survey was conducted by the Nielsen Company on behalf of the Outlook Traveller magazine.
the state’s huge tourist appeal, infrastructure and scenic grandeur, the survey says, “Kerala topping the list is nobrainer.” The survey was conducted by the Nielsen Company on behalf of the Outlook Traveller magazine.
“Many readers (81%) considered ‘visual appeal’ an important criterion and 33% of them cited it as the chief reason while choosing the winner in this category,” the report says. ‘Food and nightlife’ and ‘facilities’ also played a big part in the selection. There was yet another laurel for Kerala: Fort Kochi found a place in the list of 12 best heritage sites with a ranking of 10th place.
“The Outlook survey has come as a big endorsement for Brand Kerala. It will spur us to take it forward with many more new initiatives,” says Kerala
In an affirmation of
Another highlight of the survey is about Kerala’s coastal city of Kochi, which has emerged as the sixth best city for tourists after Jaipur, Bangalore, Delhi, Mumbai and Hyderabad.
Kerala best tourist destination, again Tourism Secretary T K Manoj Kumar. Ms Rani George, Director, Kerala Tourism, says: “It is indeed a coveted laurel for Kerala in general and the Kerala Tourism Department in particular. It is a testimony to our sustained efforts to promote Kerala and its robust tourism infrastructure.”
The survey also found Kerala as the second best state for winter destination after Goa, while Rajasthan and the Andamans occupied the third and fourth slots, respectively. Two major factors for choosing the best winter destination, as in the previous year, were ‘scenic beauty’ and
‘value for money’. In the category of beach destinations, Kerala occupies the fourth place after Goa (South) and Andamans and Goa (North). Kerala is followed by Lakshadweep, Orissa and Karnataka. ‘Sands/beaches’ influenced the decision for the top choice as a whopping 88%
Kerala Tourism has been creating ripples not only domestically but also outside. The Kerala Tourism pavilion, at the recently concluded FITUR 2012 in Spain, the world’s second largest tourism and travel fair, whipped up a lot of excitement. The Kerala Tourism Department in the recent past has initiated a number of measures, including road shows, to drive inflows from Europe, especially the Scandinavian countries and Australia. A host of British celebrities, including actor and fashion czarina Sadie Frost, actor and filmmaker Mary Nighy and Indian-origin actor-singer Preeya Kalidas, tweeted in praise of Kerala’s enchanting natural beauty. Pakistani writer Fatima Bhutto, the granddaughter of former Prime Minister Zulfikar Ali Bhutto, was a high-profile visitor to Kerala a few months ago.
Kerala Switchgear Delivering impeccable services to customers K
erala Switchgear Sales Corporation (KSSC), dealer in switchgears, has a very good reputation in the power distribution field. It mainly provides varieties of all high- and low-tension switchgears. It is also famous for its high-quality electrical and electronic accessories, its sole motto being to provide all comprehensive solutions to electrical requirements for modern life. Kerala Switchgear has an excellent service history. For more than a decade it has catered to the requirements of government, semi-government and private institutions, buildings and flats and commercial complexes. It is also famous for its expertise in panel building. The expert team in KSSC designs and manufactures special panels according to the customer requirements. Quality and variety are the main KSSC’s
plus points. Customers can choose a variety of items under the same category with different price tags. The firm is an authorized distributor of ABB; Siemens, C & S, Schinder, Havells, Standard and BCH. The electrical products marketed by it are famous for their longevity, variety and stylish designs. KSSC is also geared up to supply all electrical luminaries and also HT and LT cables and wires. Panel building is another area of expertise of KSSC, which even designs and manufactures special panels according to the requirements of customers. All equipment is subject to standard work checks and inspections throughout and to a final test in accordance with the standard procedures. The trading firm also has a service centre with many advanced technologies. Named J & M PASSLINE
February 29-March 31, 2012
Switchgear Service, the firm offers a diverse range of services. It undertakes HT and LT service activities like transformer repair and oil filtration jobs .The other activities include retrofitting jobs of LT switchgears and servicing and commissioning of microprocessor-based electronic relays. The committed service team provides smooth and efficient service to customers. With an established name, KSSC and its service centre render all electrical and electronic services for industrial and commercial establishments. “We always focus on the quality of the products and its timely delivery and this systematic approach helps us to gain a place in customers’ minds,” says Mr S Mohanan, founder of KSSC. These qualities have made KSSC a trusted name in the field.
INSURANCE
23 can provide additional proportionate amounts above the sum insured from the additional sum insured, which is called ‘buffer sum insured’. Top-up cover
By Sreekumar Namboothiry
E
veryone is aware that, medical expenses for treatments have been rising alarmingly. The increase has become inevitable as latest and innovative methods are employed for correct diagnosis and treatment. Many serious illnesses may take away a major portion or even the total earnings of a person. Only an adequate mediclaim policy can arrest unexpected erosions of one’s savings. For business establishments or companies, such events happening to employees are additional financial liabilities. Mediclaim policies are generally of two types: individual/family stand-alone insurance and group mediclaim insurance. Both protect one from the financial after-effects of a sudden and unforeseen eventuality in life. Compared to individual policies, group covers are more lenient in terms of coverage. Under group coverage the insured can enjoy benefits like: maternity health benefits, family floater plans, waiving of certain clauses such as first 30 days and first one/two-year exclusions clauses which are usually not available with individual/family insurance policies.
Most employers today offer health benefits to employees in the form of group mediclaim covers provided by insurance companies. Properly administered, the group mediclaim cover can be hugely beneficial to employers as well as employees.
Group mediclaim policies have an edge Maternity coverage: Normally no expenses incurred on maternity or related treatments are admissible under an individual policy but such benefits can be extended with additional premiums in group coverage. This benefit normally covers only the
basic policy or excess amount of the sum insured can be covered by this extension. Unlike the reimbursement system, this benefit gives away the total sum insured (critical Illness) upfront to the insured regardless of the expenses incurred. As in the case of
There are also other advantages under group insurance coverage over individual policies:
Under individual insurance policies, entry age is restricted from 50 to 60 years, varying from insurer to insurer. This prevents one from providing insurance cover for his/ her parents who genuinely need such coverage later in life. At the same time, under a group insurance scheme, one can enrol up to the age of 70 or above subject to the acceptance of the insurer concerned. This means one can provide mediclaim coverage not only for self and family, but for their parents also.
Many first-time buyers, particularly aged members, under individual insurance policies, face the hurdle of the pre-existing illness exclusion clause. Under a mediclaim policy, any condition, ailment, injury or related conditions for which the insured had symptoms and/or was diagnosed and/or received medical advice or treatment within 48 months prior to the health policy with the company will be treated as pre-existing. Under a group policy, you can overcome this hurdle as this clause can be waived with payment of additional premiums.
Premium advantage One of the many features of group insurance is the advantage of relatively reduced premium. It would be possible to negotiate with the insurers in terms of the premium if the group is large in number and healthy in age. Some disadvantages too Since group mediclaim policies typically cover pre-existing illnesses as well, employees may feel tempted to avoid buying an individual cover because of the premium. However, it may not be a wise decision. The employer group mediclaim ceases to exist once the individual switches jobs or retires. The former may bank on the group cover offered by new employers, but retirees have no such luxury. Worse still, it would be difficult to obtain an individual cover at that age. Instead, it’s better to buy an individual policy. While group insurance would cover any pre-existing illness, the individual policy will come in handy once the waiting period comes to an end or post-retirement, thus ensuring continuous coverage for the insured. Regarding the added benefits of a group mediclaim policy, including continuity cannot be carried with a fresh individual policy.
Age extension
Coverage for pre-existing illness
There are also top-up covers available with group mediclaim. For example, most insurers offer mediclaim covers of Rs 5 lakh. If you desire a cover of Rs 10 lakh, you can have a basic cover and a top-up, rather than having two policies. The premiums for top-up converges being relatively less than the basic cover, the insured can enjoy the advantage of less premium and higher coverage. This is also an additional benefit which can be enjoyed under a group insurance.
The premium paid under individual mediclaim up to Rs 15,000 is eligible for tax exemption under Sec.80-D of income tax whereas under group insurance such benefit cannot be enjoyed. In the event of an adverse claim ratio under a group mediclaim policy, there will be a loading of premium (mallas) during renewal which will not apply to individual policies. first two childbirths and indemnifies both normal and caesarean deliveries with respective sums insured. Besides this, the minimum entry age of any mediclaim policy is stipulated as three months and, being so, no expense incurred on the treatment of new-born babies will be admissible. Under group coverage the proposer can opt for extension of day one care for eligibility of such expenses. Critical illness coverage Even though all critical illnesses are covered under the normal/standard mediclaim policies, those expenses which are not admissible under the PASSLINE
the reimbursement system, substantiating documents like: actual bills, lab test records, scan reports or similar treatment records need not be submitted to claim money under this policy. The number of illnesses covered under this varies from company to company from time to time. Corporate buffer Under a group mediclaim policy each individual/family is eligible for the respective sum they are covered for. But under some peculiar circumstances, the sum insured may fall short of meeting the expense of treatment. In such circumstances, the company February 29-March 31, 2012
It would be important to note that besides motor insurance, the group mediclaim portfolio also remains bleeding and therefore most insurers with good underwriting practices approach this segment with utmost care and apprehension. It would therefore be advisable to seek the advice or assistance of a professional insurance broker to get the best and suitable group coverage with appropriate extensions with a rightly negotiated premium price. (The author is AGM, Business Development, of AIMS Insurance Broking Pvt.Ltd, Thrissur. He can be contacted at sreekumar@aimsinsurance.in and on 098470 48400)
NEWS
24 Passline News Service
T
he present Government of Kerala has been giving greater emphasis on speedy industrial and economic development. Though Kerala is a small state with only 1.18% of the land area and 2.75% of the population of the country, it leads the country in social development indicators. The state has achieved an enviable track record of human development, which could easily be leveraged to propel it for faster economic growth. The Government is committed to transforming the state into an enterprising society for growth and development rather than allowing it to remain a mere wage-earning one. It has recently launched an important scheme to implement the ‘Kerala State Entrepreneur Development Mission’, which is an ambitious programme for creating trained entrepreneurs for self-employment. The Government has a development agenda, which is tailor-made to spur investment and growth in the state. For this, we are committed to public-private partnership in various sectors and to position the state as an attractive investment destination. The Government wants to bring investment to the state for development of its infrastructure and industrial base, especially the MSME-sector industries. A number of large projects have already been initiated across the sectors, which will offer opportunities for further investment in downstream areas and on the supply side. Keeping in view the objective of industrial development, economic growth
The Government is committed to transforming the state into an enterprising society for growth and development rather than allowing it to remain a mere wage-earning one. It has recently launched an important scheme to implement the ‘Kerala State Entrepreneur Development Mission’, which is an ambitious programme for creating trained entrepreneurs for self-employment.
Industries, IT and Urban Affairs Minister P K Kunhalikutty, addressing the CII Southern Regional Council members. Sitting (R-L) are Mr Jose Dominic, Chairman, CII Kerala, Mr TT Ashok, Chairman, CII Southern Region, and Mr Sujith Haridas, Regional Director, CII.
‘Govt aims to make Kerala an enterprising society’ and entrepreneurship and its linkage to the welfare of society, the Government has taken several pro-active measures. There is a clear objective to brand Kerala as an investor-friendly destination and the Government has taken appropriate measures for streamlining the policies and procedures in order to create an enabling environment for investment. The new industrial policy, IT
policy and SEZ policy being finalized are actions taken in this direction. The Government has announced the conduct of ‘Emerging Kerala—Global Connect’ in the state. This will be a biennial event and the first meet, namely ‘Emerging Kerala-2012’, is scheduled in Kochi from September 12 to 14, 2012. The Government is keen to associate itself with the Confederation of In-
dian Industry (CII) to bring projects and investments to the state. Twenty-six sectors have already been identified where Kerala has a lot of potential for investment and growth. These include areas like IT and IT-enabled services, tourism-medical tourism and ayurveda, healthcare services, food and agro-processing industries, ports, shipbuilding and Logistics, the knowledge (education) sector, energy, including green energy, biotechnology and other sunrise sectors, water technologies and infrastructure development, engineering, automotive and manufacturing. The Government is also streamlining the single-window clearance mechanism to expedite clearances in a more efficient and time-bound manner. It is also taking serious action for augmenting IT exports from Kerala and is committed to facilitating implementation of the Smart City in Kochi. Expansion of Technopark in Thiruvananthapuram, Infopark in Kochi, Cyber Park in Kozhikode and IT parks in other districts is also underway. It is necessary that the Government, CII, investors, the state’s manpower, NRKs etc work in tandem for achieving the desired objective of bringing growth and economic progress to the state. I also look forward to larger cooperation and support from CII in the endeavour to transform Kerala society into an enterprising society for the sustainable growth of the state. (Edited excerpts from the address delivered by Industries Minister P K Kunhalikutty at the recent Southern Regional Council meet of the Confederation of Indian Industry (CII) in Kochi)
KSSEDM—grooming entrepreneurs from jobless T
he Kerala State Self-Entrepreneur Development Mission (KSSEDM), one of the most ambitious schemes of the Kerala Government, envisages provision of up to Rs 20 lakh as financial assistance each to 10,000 new enterprises set up by 50,000 selected and trained first- line entrepreneurs in five years.
providers.
The resultant creation of a lakh of direct jobs and about five lakh indirect ones will not only result in reduction of unemployment but will also create an entrepreneurial-based vibrant industrial environment in the state.
To take up the challenging task of effectively training such large numbers, Kerala Financial Corporation (KFC), the nodal agency for the mission, has tied up with the Rural Self- Employment Training Institutes (RSETIs) set up with assistance from the Central Government, State Government and commercial banks and located in all districts. At the request of KFC, a meeting of top officials of Canara Bank, Reserve Bank of India, NABARD, Government departments relating to rural development and local self-governance and RSETIs was convened by the State Level Bankers Committee (SLBC) at Thiruvananthapuram on February 10. Detailed strategies for implementation, including course schedule, faculty, duration, costing, infrastructure etc were finalized and training has started with all earnestness in all districts.
Accorded sanction based on welldefined and practical scheme parameters, the mission was formally launched by Chief Minister Oommen Chandy on February 2 this year in the presence of the first set of about 1,000 entrepreneurs, selected for training in the first batch. Training more than 10,000 selected young, educated, unemployed and aspiring candidates in entrepreneurship in a limited period of four weeks, involving market exposure too, is a gigantic task which the Government has undertaken to ensure a change in approach from being job-seekers to job
Effective training and planned financing of such a magnitude is being undertaken for the first time in the country and all eyes are on the operation of the mission. With so much benefit accruing, the scheme is likely to be adopted as a role model for implementation by other governments too.
PASSLINE
Chief Minister Oommen Chandy, inaugurating the Kerala State Self Entrepreneur Development Mission
Considering the benefits the mission is likely to provide in terms of achieving targets of the Government in terms of rural development and distributed growth, the central bank, the commercial banks and NABARD have shown keen interest in providing assistance for the successful implementation of the mission. The scheme envisages provision of interest-free financial assistance of up to Rs 20 lakh to each enterprise which is repayable in five years. Training is already in progress in Kasargod, Ernakulam, Kozhikode, Kollam, Kannur, Wayanad, Thrissur, Idukki, Kottayam and Malappuram districts. In Thiruvananthapuram, Alappuzha, Palakkad and Pathanamthitta districts, the training is scheduled to start soon. The seriousness of the Government in effective implementation of the scheme has already been realized by February 29-March 31, 2012
the common man and dropouts are observed in some districts, which can be attributed mainly to the backing out of non-serious candidates. This will definitely encourage more serious and desirous candidates joining the bandwagon of KSSEDM in ensuring selection processes. Efforts are in progress to arrange adequate financial assistance to the selected enterprises. SLBC has been active in getting the project approved by it and for ensuring that the financial institutions under it render need based financial support. KSSEDM solicits the active participation of all aspiring young and educated entrepreneurs who have good project ideas so as to ensure that large numbers of viable enterprises come up in the State and the noble objectives of the Mission are achieved. Details of the scheme are updated regularly in the website of KFC www.kfc.org.
25
‘SA offers good opportunities’ P K Ahammed honoured Chief Minister Oommen Chandy presented the Lifetime Achievement Award of the Kerala Government to Mr P K Ahammed, Chairman of the Peekay Group of Companies and the Farook Institute of Management, at a function held at Kozhikode on February 11. The award is in recognition of Mr Ahammed’s contributions to the state’s industrial growth.The Rs 10-lakh award is instituted by the Department of Industries and Commerce and carries a specially designed plaque, citation and cash prize. Union Minister of State for External Affairs E Ahamed and Industries Minister P K Kunhalikutty attended the award ceremony.
South Africa offers tremendous opportunities especially in the fields of tourism, shipbuilding and seafood processing which are of interest to Kerala, according to Mr Pule Malefane, Consul General of the Republic of South Africa. He was speaking at the interactive session held under the aegis of the Indian Chamber of Commerce and Industry, Kochi, recently. “South Africa with its 100% foreign direct investment (FDI) policy with repatriation, low tax rates with incentives and first-class infrastructure facilities offers sound investment avenues to a prospective businessman. It is the wealthiest nation in the world with natural resources in abundance, including diamond, gold, plati-
Mr Pule Malefane, Consul General, Republic of South Africa, speaking at the Interactive Session organized by the Indian Chamber of Commerce and Industry. Also seen are Mr Ramakrishnan, Secretary, Mr Prakash James, President, Indian Chamber, and Ms Seema Sardha, Economic Consul, South Africa.
num and other high-value metals, and acts as a gateway to other nations in the continent,” Mr Pule Malefane said. Ms Seema Sardah, Consul Economic, made a presentation showcas-
‘Find new disputes resolution route’ “There is an immediate need to fill the vacancies of judges at various courts in the country as this has resulted in a huge backlog of pending cases. India is perhaps the only country which has a judge per 1,00,000 people, while in advanced countries this is about 10,000. The authorities should address this issue,” he said.
Mr Ahammed, a recipient of the Best Entrepreneur Award of the Malabar Chamber of Commerce in 1995, has been a leading player in the state‘s steel sector and is the founder President of the Steel Manufacturers Association of Kerala. Peekay Rolling Mills (P) Ltd has received the award from the Calicut Commissionerate of Central Excise for the top duty payer and for registering the highest growth rate. Mr Ahammed’s charitable ventures include the Peekay Educational and Charitable Trust and a host of institutions that look after education of the poor and orphans.
V-Guard net rises 46% The net profit of electronics and electrical industry company VGuard Industries Ltd raked in Rs.12.45 crore during the third quarter ending December 31, 2011, an increase of 46% from Rs 8.55 crore in the previous financial year. By showing an increase of 45%, net sale also rose to Rs 256.86 crore. Estimation shows that the net sale for the first nine months ended has risen by 42% to Rs.715.96 crore. “Products like motor pump, cable, digital UPS and stabilizers have contributed to the sales growth”, says Mr Mithun K. Chittilappilly, Executive Director. Dr George Sleeba, Joint Managing Director, says that the new solar water-heater plant with advanced technology built at a cost of Rs 10.5 crore will become operational soon.
ing the economic parameters and other information useful to an Indian investor. Mr Prakash James, President, Indian Chamber, and Mr Ramakrishnan, Secretary, also spoke.
The tendency to challenge almost all arbitration awards in the courts should be discouraged, according to Supreme Court lawyer and eminent arbitrator Arvind Minocha. “For a state like Kerala which is fast emerging as an invest-
ment destination, we need to have an equipped system of dispute resolution,” he said while addressing an interactive session under the aegis of the Indian Chamber of Commerce and Industry (ICCI), Mattancherry, the other day.
“The importance of arbitration clauses/agreements, the procedural steps for initiating arbitration, matters related to arbitral awards, challenging arbitral decisions etc needs to be understood by business institutions in India. Arbitration is a vital tool for making it easier to do business. An arbitrator could be a technocrat or from any other fields of business depending on the case.” Earlier, Mr Ramakrishnan, ICCI Secretary, and Mr Jithin Varghese of the Centre for Public Policy and Research, spoke.
Dr Paul P G elected to ISGE board Dr Paul P G, a leading endoscopic surgeon of Paul’s Hospital, Kochi, has been elected to the board of the prestigious International Society for Gynecological Endoscopy (ISGE). He will assume office at the board meeting in Orlando, Florida, US, on March 27, 2012. The term of office is four years until March 2016. Dr Paul becomes the first from Kerala to be elected to the board and is one of the two endoscopic surgeons from India.
endoscopic techniques. Sharing the moments of the crowning glory, Dr Paul says that it is recognition for the medical fraternity of Kerala. The state will immensely benefit from the knowledge-sharing sessions that will be held in association with the international body, and is hopeful of bringing the most advanced techniques and experts later in the year.
ISGE was formed by a group committed endoscopists and has global representation from all the continents. They recognized the need for a scientific group who would meet at regular intervals to share their knowledge and expertise in gynaecologic endoscopy. Currently, Dr Charles Miller of the US is the President. The goals of the society, besides establishing an international forum for the exchange of information and new ideas between gynaecologic endoscopists, include providing leadership and unprejudiced academic excellence with quality scientific workshops and scientifically investigating and evaluating new PASSLINE
February 29-March 31, 2012
Dr Paul P G
Dr Paul is one of the leading gynaecological endoscopic surgeons in the country. His fields of expertise include hysteroscopy, laparoscopy, microsurgery, assisted reproduction and sonography. With nearly 30,000 successful advanced endoscopic surgeries to his credit, he has trained about 1,200 doctors in laparoscopic surgeries.
Previous international recognition of Dr Paul includes his being the first Indian to be inducted as a member of The Society of Reproductive Surgeons, American Society of Reproductive Medicine and President of IMAGES. He has published books and presented papers in several journals of national and international repute.
26 Dr P M Mathew elected to IASSI Board
Pepper Creative Awards The Advertising Club Cochin and Pepper Creative Awards Trust have jointly announced the sixth edition of Pepper Creative Awards, the largest creative awards in South India and the second largest in India. Entries, the last date for receipt of which is March 10, 2012, have been invited from all ad agencies in South India. A four-member panel comprising Mr Agnello Dias, founder, Taproot; Mr Prathap Suthan, Chief Creative Officer iYogi and founder, The Advisory; Ms Priti Nair, founder, Curry-Nation; Mr Raj Nair, ECD, Contract Advertising; will be the members of the jury for Pepper 2012. “The four have proven credentials in heading juries of similar nature at national and international levels”, according to Mr Oommen Kurian, Chairman, Pepper Creative Awards Trust. “We are expecting more than 1500 entries for the competition which has become a stepping stone for creative people from this part to take part in other major peer-reviewed national and international competitions”, says Mr Sudeep Kumar, President, Advertising Club Cochin. “All leading advertising agencies from South India will take part in Pep-
per-2012, a unique event when luminaries appear on a single platform evaluating and celebrating the success and challenges in a professional manner,” Mr Sudeep Kumar adds. The competition will be open to categories such as Agency of the Year Award, Advertiser of the Year, Art Director of the Year, Copywriter of the Year, Special Jury Award, Campaign of the Year, Press Campaign, TV Commercial, Corporate AV, Outdoor, Radio, Interactive- Web-based, POP, Direct Mailer, Photography, Packaging, Logo Design, Unpublished Works, PR and Promos. The sixth edition of Pepper will also have an exclusive section for participants from Kerala: jewellery, real estate, textile, hospitality, ayurveda and others. The winners will be presented with gold, silver and bronze awards and certificates. The function will also see stage performances, to be held at Le Meridien Cochin Space Frame on March 30, 2012 at 6 pm. The Advertising Club Cochin, having more than 650 members, has been organizing the Creative Awards function for the past 16 years. It also organizes regular seminars and workshops to enhance the creative abilities of advertising professionals in Kochi.
CERA registers sales growth in Q3 Gujarat-based CERA Sanitaryware Limited reported a net sales income of Rs 82.48 crore and a net profit of Rs 7.95 crore for the third quarter ended December 31, 2011, reflecting a growth rate increase of 12.5% over the Q3, 2010, figures. The earnings before interest, taxes, depreciation and amortization (EBITDA) for the period totalled Rs 11.78 crore recording an increase of 20% over the EBITDA of Rs 9.81 crore during October-December 2010. The profit before tax (PBT) for the period amounted to Rs 12.28 crore as against Rs 11.32 crore for the third quarter in 2010-11. The net profit after tax for Q3 totalled Rs 7.95 crore compared with Rs 7.65 crore in the same 2010 period. For nine months of the current fiscal year (AprilDecember 2011) ending in March the company’s net sales income amounted to Rs 220.41 crore compared with Rs 167.42 crore during April-December 2010, a jump of 31.65% The net profit for this period was Rs 22.5 crore as against Rs 19.3 crore for April-December 2010, an increase of 16.5%. Launched in 1980, CERA has grown strongly since then and has emerged as the third biggest player in the sanitaryware market with impressive growth every year, aided also by the successful execution of two expansion projects. The first expansion was the commissioning of its faucetware plant that paved the way for its entry into the market for taps. The second expansion has augmented CERA’s manufacturing capacity from two million to 2.7 million pieces annually, an increase of up to 35%. CERA’s earnings per share (EPS) works out to Rs 6.28 for Q3. The EPS for Q3 in 2010 was Rs 6.05.
Dr P M Mathew, Director, Institute of Small Enterprises and Development (ISED), has been elected to the Executive Committee of the Indian Association of Social Science Institutions (IASSI). IASSI, having its headquarters in New Delhi, is the apex body of the country’s premier institutions in social science education and research, with a membership of 138 universities, 129 research institutes and 32 other institutions. ISED is a permanent member of IASSI.
Hind Rattan Award for Suresh Kumar Mr Suresh Kumar, Director of Federal Bank, received the prestigious Hind Rattan Award instituted by the NRI Welfare Society of India, New Delhi, on the eve of Republic Day. The award, presented by former Union Minister K C Pant, is for his outstanding achievements and contribution to the NRI Society.
MTS expands MBlaze service in Kerala Sistema Shyam Tele Services Limited (SSTL) that nationally operates its telecom services under the MTS brand with over 15 million wireless customers has announced the launch of its high-speed mobile broadband service, MBlaze, in 10 towns—Mahe, Peringanur, Neyyattinkara, Ambalappuzha, Aroor, Mannarkkad, Irinjalakuda, Edappal, Taliparamba and Payyannur. This latest rollout extends the current MBlaze footprint to 50 towns across the state. Announcing the launch, Mr Vijay Kumar T V, Head-Operations, Kerala, MTS India, said in Kochi recently, “This expansion is in sync with our endeavour to make MBlaze, our high speed mobile broadband service, available to the maximum number of customers in the shortest possible time”. According to the January 2012 report of the Telecom Regulatory Authority of India (TRAI), the broadband penetration in India stands at just 1% as against the wireless teledensity of 73.44% and 12.98 million broadband connections as of November 2011. The national broadband plan envisages provision of 160 million broadband connections including 60 million wireless broadband connections by 2014. Hence there is a huge opportunity for the growth and proliferation of high-speed mobile broadband services in the country. MTS provides high-speed mobile broadband services in over 200 Indian cities including the top five metros. The company is rapidly expanding its high-speed data (HSD) network and currently addresses over 92% of data potential across India. PASSLINE
February 29-March 31, 2012
MTS has introduced a daily usage plan, providing unlimited data usage for one day for just Rs 96. Additionally, customers can enjoy unlimited data usage with 30-day validity with unlimited MBlazer packs starting at just Rs 798. MTS has tied up with Hewlett Packard (HP) by which on purchase of an HP laptop, customers can get an MBlaze device for just Rs 699. Additionally, customers can enjoy data usage of 3GB at Rs 444 a month for lifetime. Using MBlaze dongles and HSD (highspeed data)-compatible handsets, MTS customers can enjoy video streaming, high-quality audio/video download and live playback. Customers can also watch live TV and on-demand video channels. They will get access to a range of news, entertainment, sports and regional channels.
About Sistema Shyam TeleServices Ltd Sistema Shyam TeleServices Ltd is a venture, involving equity participation by Sistema {LSE: SSA} of Russia, the Russian Federation and the Shyam Group of India. Sistema is the majority shareholder in the joint venture company which operates its telecom services under the MTS brand. MTS is well recognized in India and worldwide for its commitment to high quality and innovative telecom solutions. MTS has recently been ranked by Millward Brown as the 80th most valuable brand in the world.
27
EDUCATION: NEW HORIZONS
DIST: right place for learning and success
D
e Paul Institute of Science and Technology (DIST) is a professional college that imparts state-ofthe-art education to hundreds of youth in India. It is run by De Paul Education Trust, owned by Marymatha Province of Vincentian Congregation, situated at Angamaly South, along the side of NH 47, a call away from Cochin International Airport Ltd (CIAL), KSRTC bus station, railway station and just 20 km from the proposed Smart City, Kochi. DiST is affiliated to Mahatma Gandhi University, Kottayam, approved by AICTE (All India Council for Technical Education), New Delhi, and certified ISO 9001:2008. DiST has also entered into an agreement of cooperation with De Paul University, Chicago, and James Cook University, Australia.
DIST offers six prominent master’s degree courses—MCA, MBA, MHRM, MSW, MCom Finance and MA Multimedia and three undergraduate courses— BCA, BCom (Computer) and BCom (Taxation). Youngsters have dreams of a bright future. DIST is committed to helping them realize their long-cherished dreams. It focuses on the ho-
Fedbank scholarships Fedbank Hormis Memorial Foundation, the public charitable trust formed by Federal Bank to perpetuate the fond memories of its founder K P Hormis, has invited applications for the foundation’s scholarships for 2011-12. Students of Indian origin studying in Kerala and Tamil Nadu in any of the Government./aided/self-financing colleges are eligible for reimbursement of 100% of tuition fees, subject to a maximum of Rs 75,000 a year. The courses eligible for the scholarship are Medicine (MBBS), Engineering (BE/ BTech), Agriculture (BSc), Nursing (BSc) and MBA. For applying for the scholarships, the student should have secured admission under merit list during the academic year 2011-12. The family income of the student should be below Rs.2.50 lakh. Ten students in each discipline will be offered the scholarship, of which one seat will be kept aside for a physically challenged student. If applications are not received from eligible candidates under the physically challenged category, it will be utilized under the general category.
listic development of students not just technologically but as a socially committed professional expert. That is why in a short span of one decade DIST has become an ultimate partner for professional study and greenery of wisdom. The salient featureI of DiST are serene and peaceful campus; confidence building training; job- oriented coaching; effective communi-
Federal Bank profit surges by 41% Federal Bank made a profit of Rs 202 crore for the quarter ending December 31, 2011. The bank, which has been working on its transformation and adopting contemporary management techniques, reported excellent numbers that reflect growth and quality. It delivered substantial growth in top line and bottom line despite the challenging macro environment. On course of its transformation, Federal Bank has consolidated its position as the most profitable bank from Kerala among its peers in the public and private space. It intends to maintain and consolidate its leadership position by virtue of the growth journey it has embarked upon. The following are some of the salient features of its working during the quarter:
Total income for Q3 grew by 40.33% on a y-o-y basis to Rs 1,604.76 crore; net profit at Rs 201.87 crore registered growth of 41.07% The application form can be downloaded from the website on a y-o-y basis; net interest margin (NIM) www.federalbank.co.in. More details can be had at was at 3.94%; total deposits increased by 26.63% from Rs 36,913.53 crore to Rs csr@federalbank.co.in. The last date for applying for the scholarship is Febru- 46,742.46 crore; advances increased by 17.59% from Rs 28,240.02 crore to Rs ary 18, 2012. 33,206.07 crore; investments increased by
SBI Q3 net up 15%
cation and language skills; add-on courses, student exchange programmes with foreign universities; 100% placement opportunities; computer library with membership in DELNET; well-stocked libraries; sophisticated computer lab with very latest equipment; vibrant platforms for extracurricular activities; dynamic learning system; devoted faculty teams; separate hostels for boys and girls; well-known visiting faculty and Wi-Fi-enabled campus. The scholars can never ignore DIST because it is the right place for learning and success. The year 2011-12 is the decennial year of DIST. Fr Alex Chalangady is the Principal of DIST. Fr George Elenjikkal Puthenthara, Vice-Principal, and Fr Byju Poovathumoottil, Director- Finance.
41.82% from Rs 13,146.84 crore to Rs 18,644.60 crore; net NPA was Rs 243.64 crore; return on average assets improved from 1.30% to 1.41%; earnings per share (annualized) improved from Rs 33.47 to Rs 47.21; book value per share increased to Rs 330.19; capital adequacy ratio at 15.91%; return on equity improved from 11.37% to 14.56%; cost-to-Income ratio at 37.13%. As on December 31, 2011, the bank had 835 branches and 891 ATMs. It has plans to expand rapidly by opening more branches and ATMs during the current quarter and beyond. The bulk of the expansion will be in the five states identified by the bank for organic growth. The bank has launched a consumer reward programme titled ‘Utsav’ to reward its customers on use of its debit card for spends over point of sale (POS) terminals/payment gateways. Customers can redeem the accumulated points against merchandise and for buying film/ bus/air tickets. Federal Bank won the international ACI Excellence Awards 2012 in the Payments Transformation category for two of the projects, VISA Fast Funds using VISA debit cards and the bank’s Aadhaar (UID)-based Authentication for Payments.
SBT posts Rs 904.58 cr profit in 9 months
State Bank of India’s net profit rose by 15% to Rs 3,263 crore in the December quarter, from Rs 2,828 crore a year ago, beating experts’ analysis of about Rs 3,100 crore.
State Bank of Travancore (SBT) has reported a nine-month profit of Rs 904.58 crore ending December 2011 from the Rs 860.87 crore in the corresponding period of the previous fiscal.
Non-performing assets have reached a plateau. The NPA storm that hit the bank in 2011 is now hitting other banks. Provisions for bad loans rose to Rs 3,006 crore, from Rs 1,632 crore as Rs 8,161 crore of new performing assets were added in the quarter. It restructured Rs 2,188-crore loans. Net interest income, the difference between interest expenses and revenue from lending, rose 10% to Rs 11,466 crore.
Total business was Rs 1,17,862 crore and total deposits increased by 18.60% to Rs 66,079 crore from the previous amount of Rs 55,716 crore in the one-year period. In the corresponding period non-resident Indians’ deposits spurted by Rs 3,025 crore with y-o-y growth of 26.1% to Rs 14,266 crore. With a yearly PASSLINE
February 29-March 31, 2012
growth rate of 15.75% advances jumped to Rs 51,783 crore by the end of December. In the area of priority lending the bank has given Rs 24,007 crore in a year and 634 SGSY beneficiaries received the financial aid. In the period ending December 31, Rs 57.8 crore was distributed to 2,830 self-financing bodies. The total financial assistance to the self-financing groups is Rs 712.56 crore. Total branches increased to 818 and ATMs to 911.
EDUCATION: NEW HORIZONS
28 C
hrist Knowledge City is a technical campus exclusively for women with engineering , MCA, MBA and architecture colleges and is the only campus in Kerala with air-conditioned colleges and hostels having five-star facilities. The technical campus approved by the All India Council for Technical Education (AICTE) and Council of Architecture (COA) and affiliated to Mahatma Gandhi University, Kottayam, currently offers five engineering courses and two postgraduate courses in Computer Applications. Christ Knowledge City is located in Ernakulam district and well connected to various parts of nearby Thrissur, Idukki, Kottayam and Alappuzha districts by air-conditioned bus services. Classrooms: The air-conditioned classrooms are provided with the latest audio-visual aids and individual seats are provided to ensure a congenial environment to absorb knowledge. Computer labs are equipped with the most modern systems and accessories.
Christ Knowledge City equipped for professionals Internet: The technical campus has dedicated internet connectivity through three Mbps broadband connection available 24X7 to the students and the staff. Workshop: The workshop is highly equipped and professionalized with all the necessary tools and equipment required for the students. Gymnasium: The multi-gym with a motorized tread mil, home gym, elliptical trainer, elliptical spin bike, table tennis sets, dumbbells and medicine ball is made available for both students and staff. Medical facilities: The campus has an in-house clinic with a fulltime doctor and nursing assistants. Campus restaurant: The campus restaurant with a capacity of 100-plus seats offers high-quality food at an affordable rate to students, staff and visitors. There is an industrial kitchen with
a cooking capacity for 750 people. Library: The well-facilitated and spacious library has a collection of more than 10,000 technical books, a large collection of national and international journals, e-journals, newspa-
cilities. And an in-house laundry facility. Training and placement: Regular training programmes are arranged by experts in the field to enhance the overall personality of the students. Transportation: Knowledge City has a fleet of air-conditioned buses for the transportation of staff and students from Ernakulam and nearby districts. Air-conditioned low-floor transport facility is available free of cost once in a month for hostellers to far-away P J Paulose Mrs Lizzy Paulose destinations which is unique among professional institutions in pers and magazines. Kerala. Hostel: Rooms are air-conditioned, Engineer P J Paulose is the Chairspacious and well-furnished with and man, Mrs Lizzy Paulose the Secrewithout attached bathrooms all with tary and Dr George Philip the Direccentralized solar water heater system. tor. The Principal is Dr Binoy A Common rooms offer TV, games, mu- Mattamana and Prof Susamma Josic, telephone, reading and internet fa- seph the Registrar.
Institutions to tap alumni resources Leading educational institutions in Kerala are gear- pig that gets killed for the bacon is ‘committed’.” He urged ing up to actively tap alumni resources to enhance their the participants to plan sporting events to create emotional reputation and brand value. The ball was set rolling with re-connect and increase commitment of the alumni. representatives of 13 top-rate educational institutions Mr Joseph John, South India and Sri Lanka Adviser, across the state participating recently at Saviance Technologies, and MrKaushik Bellani, CEO, Thiruvananthapuram in Kerala’s first-ever Alumni LeaderSaviance Technologies, handled the sessions. ship Masterclass programme, designed to help instituIn a session on Basics of Alumni Relations, Mr Jotions set up a well-oiled Alumni Relations Office.The dayseph, an alumnus of CASE Alumni Relations Institute, long Masterclass programme was organized by the Asian INSEAD, Singapore, said that alumni, one of the stakeSchool of Business (ASB) and the Confederation of Inholders of an educational institution, could emerge as dian Industry (CII), in tandem with Terumo Penpol Limthe single largest potential donor. “Alumni, by reflecting ited, India’s largest blood bags manufacturer, and the the institutions’ value and acting as guardians of reputaGurgaon-based Saviance Technologies. tion, can become useful brand ambassadors. New instiSetting the tone and tenor of the programme, Mr C tutions can fruitfully use the services of alumni to market Padmakumar, Chairman, CII Thiruvananthapuram Zone, potential students,” he added. in his welcome address, said alumni could be a “very In view of the phenomenal strides in technology, Mr good constituency to work with” and their potential needed Kaushik advocated the use of virtual, mobile and social to be channelized for the success and growth of their media as effective platforms for alumni communications. alma mater. “Technology should be seen as an enabler, and not a Mr Padmakumar, who is also the Executive Director roadblock,” he said. of Terumo Penpol, announced on the occasion the launch During the sessions, various aspects of alumni relaof the College Excellence tions and management, includCluster in Thiruvananthapuram ing alumni database creation Zone. The objective is to and updation, communications bridge the existing gaps in inand branding strategies and teraction between the dos and don’ts in organizing academia and industry. “Inevents and in connecting with dustry needs inputs from the alumni across generations academia for research and the were discussed in great detail. academia will benefit from exA group exercise followed posure to industry,” he said. in which participants were The benefits of such an iniasked to present a three-year tiative, he said, would be maniplan of a newly formed Alumni fold, such as access to lead- Participants in Kerala’s first-ever Alumni Leadership Masterclass at Asian School of Relations Office. The groups ing institutions in industry, vis- Business were asked to outline the acits and interactions of senior industry personnel, sessions tivity profile, staffing pattern, benchmarks for evaluation and classes. Interested institutions can enter into MOUs and identification of challenges and potential problem arwith CII for this, he said. eas of the office. Prof S Rajeev, Director, ASB and an alumnus of IITThe participants in the event included faculty members Madras and Syracuse and Stanford Universities, spoke involved in alumni relations from Lourdes Matha College; about the differences in alumni relations in India and the TKM Institute of Management, Kollam; Mohandas College US. “While alumni management is just evolving in the of Engineering and Technology; Dr G R Public School, country, my alma mater abroad makes all efforts to track Neyyattinkara; IMK, Kerala University; Mar Ivanios Colits alumni down. Also, alumni inputs are sought in solege; Departments of Future Studies and Commerce, Uniphisticated matters like revamping curriculum,” he said. versity of Kerala; IIITM-K Technopark, University College of Prof Rajeev emphasized the importance of commitment Engineering, Karyavattom; Medical College; Asian School for the success of alumni relations and used the analogy of Business and Rajagiri College of Social Sciences, Kochi; of the popular American breakfast of bacon and eggs to participated. explain the difference between involvement and commitProf Rajeev gave away certificates to all the particiment. “The chicken that lays the eggs is ‘involved’ and the pants. PASSLINE
February 29-March 31, 2012
More floating, mobile Triveni stores in offing The fifth floating Triveni superstore in the state has come up at Haripad in Alappuzha district. “The goal of initiatives such as the floating store is to provide high-quality goods at the most affordable rates to the maximum number of people”, said Mr Joy Thomas, President of Consumerfed, whose initiative is the store, at the inaugural function on February 19. KPCC President Ramesh Chennithala inaugurated the store. “Besides the regular Triveni stores spread across the state, the cooperative will introduce more mobile and floating stores to make shopping more convenient for consumers,” Mr Joy Thomas said. “The continued expansion of the Triveni store network proves that Consumerfed’s strong intervention has been successful in keeping retail prices under control,” said Dr Riji G Nair, Consumerfed Managing Director. “We need more such programmes to ensure that everyday goods remain affordable for consumers. Schemes such as the centrally supported ‘Triveni at Your Doorstep’ are steps in that direction,” he added. It will cost about Rs 50 lakh to set up a Triveni floating store. The new floating store has 1,000 sq ft and allows up to 15 people to shop at a time. It is manned by four members of the store staff, besides the boat driver. People even in the remotest islands in and around Haripad will be served by the new store. Floating Triveni superstores are already operating in Alappuzha, Kuttanad, Kundara in Kollam and Panangad in Ernakulam.
EDUCATION: NEW HORIZONS
29 After carving a niche for itself as
a highly professional enterprise in the higher education sector, having entered it with the setting up of the Albertian Institute of Management (AIM) a few years ago, the Archdiocese of Verapoly is establishing its identity in the engineering and technology arena too. The new venture named Albertian Institute of Science and Technology (AISAT) is sure to become one of the mostsought-after engineering institutions in the state in view of the archdiocese’s great educational heritage, spanning decades. “Providing value-based education is a part of effective schooling and our management always supports such pedagogy, not just prescribed ones. This enables the students to develop self-confidence, optimism and self-esteem to excel in their roles in both society and workplaces”, says Rev Dr Clement Valluvassery, Manager, AIM. “We have never tried to make ‘tailor-made’ students, and this, I feel, accounts for the success of our institutions,” he says. Located on a 12-acre lush green sprawling campus within Kalamassery municipality, AISAT is approved by the All India Council for Technical Education (AICTE) and affiliated to Mahatma Gandhi University. With a highly com-
Another centre of excellence in the making petent faculty having decades of rich and varied experience, the institution has Dr Babu T Jose, former Director of the Cochin University of Science and Technology (CUSAT), as its Director. The management says the faculty is committed to providing excellence in engineering education equipping the students to meet the challenges of the new economy.
later. Instructional methods at AISAT will be based on the latest technology enabling the students to understand and learn things in a better way. They will be exposed to new concepts, new viewpoints, vigorous debates and seminars and intense analytical thinking, all of which will develop their decision-making ability. The ubiquitous Wi-Fi facility enables the students and faculty to access class and research Initially, AISAT will ofDr Clement Valluvassery material and the internet at fer five undergraduate any time from anywhere inside cam(BTech) programmes—Mechanical, pus. The college library is a real feast Civil, Electrical and Electronics, Elecfor avid readers. It houses, apart from tronics and Communication Engineerengineering books, titles on subjects ing and Computer Science Engineerranging from science to psychology, ing. More courses will be introduced besides thousands of journals and periodicals from national and international publishers and database providers. In fact the place can be termed a onestop centre for students. The rustic beauty and tranquillity prevailing all over campus helps learning a pleasure for the students as it eases their pressure. AIM, the sister institution, has already achieved remarkable success in the field of management studies through its highly systematic system of coaching. Dr George Sleeba, former Chairman of FACT, serves as the Director of the institute. “AIM focuses more on field work and industrial visits and this helps the students to know the intricacies and challenges in the field,” says Rev Dr Clement Valluvassery. “This exposure to industry also helps the students to develop strategic and analytical thinking to meet the cut-throat competition in the industrial field,” he says.
PASSLINE
February 29-March 31, 2012
AIM offers a two-year management programme with four major specializations—Human Resource Management, Finance, Marketing and Information Technology Apart from this the college also offers a two-year MBA course in Advanced Corporate Finance as an additional degree along with the regular management programme. The career guidance and placement wing of the institute has excellent coordination with many multinational and domestic companies helping the students to get recruited through campus selection. The 100% placement facility makes AIM stand out of the rest of the business schools. Presently more than 90% of the final-year students have already been placed in many reputed organizations. Frequent interactions with chief executive officers of companies and professionals enable the students to learn more about their success stories and inspire them to achieve great heights in their life. In addition, the students of AIM are members of the Kerala Management Association, National Institute of Personnel Management and Business Line Committee which fosters healthy interactions with corporate leaders. Besides the academic activities, there are management-promoted cultural events and nonacademic activities to nurture artistic abilities and soft skills in the students. On their part, students run clubs and societies with guidance and support from the staff and management. Undying commitment and hard work remains the key to the success of the institute. And commitment to its core values and ideologies makes AIM an institute of excellence.
30
EDUCATION: NEW HORIZONS
SNGCE: grooming future technocrats T A Vijayan
S
ree Narayana Gurukulam College of Engineering (SNGCE) is designed to educate the next generation of engineering leaders to analyse and solve complex problems of importance to society, to collaborate as productive team members, to engage in lifelong learning and to practise professionally and ethically. SNGCE was established in 2002 by the Kunnathunadu SNDP Union, headquartered at Perumbavoor, to accomplish the ideals of Sree Narayana Guru, the great philosopher and scholar. The functioning of the institution is steered by the Sree Narayana
Gurukulam Trust which is committed to providing world-class facilities to the up-and-coming technocrats. The members of the trust hail from various professional fields, and they have a set objective of opening avenues to the youth in world-class higher education in engineering and technology and in allied disciplines. The college has been approved by the All-India Council for Technical Education (AICTE) and is affiliated to M G University. It has separate hostels for gents and ladies. The ladies’ hostel is located within the campus. SNGCE continually works to en-
gage the students, faculty and staff in the integration, creation and dissemination of technical knowledge through teamwork and personalized instruction. Hi-tech laboratories for different departments, personality development programmes and meditation classes are its attractions. The institution has added another 1.5 square feet of area last year to impart MTech and Vlsi courses. SNGCE had also enhanced its MBA seats from 60 to 120 last year and has added one more MBA batch this year. The college has inducted MTech courses in three streams. A total of 228 students got employment by placement service last year. This year
Entrepreneurship mission for youth T o develop entrepreneurial skills among young people, the State Government has formed the Kerala State SelfEntrepreneur Development Mission. The purpose of the mission is to give vocational training to skilled, but unemployed and educated, youth and equip them to stand on their feet, facilitating easy bank loans.
According to Finance Minister K M Mani, the progenitor of the ambitious scheme announced in the last budget, budding entrepreneurs will earn their spurs over the next five-year period. A Government advertisement calling for applications from interested individuals had elicited 15,000 applications within a few days.
Anyone with a formal education of up to Plus-Two grade or above and an idea to put forward could apply. It was left to the KFC to vet the ideas thus generated through an interview, based on which 4,000 were selected who would constitute the first batch for training. They would be put through their paces in entrepreneurial Finance Minister K M Mani inaugurating a district-level training programme. lessons to help orient themThe mission envisions the creation of selves into the mould. 10,000 micro and small enterprises and They would then be offered the required 50,000 trained entrepreneurs to create one funds to start their business backed up with lakh direct and five lakh indirect jobs. expert guidance and counsel to ensure that The Kerala Financial Corporation (KFC) will be the nodal agency for implementing the scheme, which is unprecedented in scale, intent and purpose. It aims at establishing 10 micro enterprises in each local body over the next five years.
once out of the ‘incubation’ period, they are able to stand on their own feet. There will also be a managerial subsidy up for grabs after the units go on stream. The State Government may also subsidize the interest part of the loan.
PASSLINE
February 29-March 31, 2012
witnessed 158 students getting jobs through placement facility. SNGCE has other special features like selection based on merit only, industry-integrated curriculum, Wi-Fi connectivity inside the campus, intelligent campus, digital library with international journals, internship in industry and industry-based projects, excellent facility for sports and games and a conducive environment for literary and arts talents. The college envisages more courses in computer science and electrical engineering in future, says Mr T A Vijayan, Executive Director .
PERSONALITY
31 J Hareendran Nair, distinguished ayurveda doctor and Managing Director of Pankajakasthuri Group of Institutions, on whom the Padma Shri was conferred recently, has dedicated his life to spreading the message of the great science of life for the last many decades. A native of Thiruvananthapuram, Dr Hareendran Nair is the third son of K C Janardhanan Nair and Pankajakshi Amma. Born at Kandala, near Thiruvananthapuram, in 1961, he had his education at Kandala Government UP School, Maranalloor High School and Kattakada Christian College. Taking his BAM degree from the Government Ayurveda College, Thiruvananthapuram, in 1983, he started his own clinic by the name and style of Sree Dhanwanthari at Poovachal, Thiruvananthapuram. For a short period he worked as Research Assistant at the Ayurvedic Research Centre, Poojappura. In 1988 he launched Sree Dhanwanthari Ayurvedics at Poovachal to manufacture ayurvedic medicines. He also founded a research and development unit to develop effective ayurvedic formulations and in 1990 formulated Pankajakasthuri for the treatment of asthma and for breathing problems, which has since benefited millions around the world. In 1996 he launched his most modern ayurveda medicine manufacturing unit at Poovachal, Pankajakasthuri Herbals India (P) Ltd, and in 1997 Ilogen Excel for diabetes treatment. It also developed many new effective ayurvedic formulations for lifestyle diseases.
Earlier Dr Hareendran Nair had been presented with the Best Ayurveda Doctor Award of the Government of Kerala. He is also a recipient of the National MSME Award for his ayurveda services and also the National MSME Award for Research and Development in Ayurveda. On energy conservation, he had received the Kerala State Energy Conservation Award recently. Besides he has won multitudes of awards and accolades for his yeoman service to humanity in the ayurveda sector.
Dr J Hareendran Nair, Managing Director of Pankajakasthuri Group of Institutions, on whom was conferred the Padma Shri recently, has dedicated his life to spreading the message of the great science of life.
Dr Hareendran Nair
A life dedicated to ayurveda In 2002 Dr Hareendran Nair established Pankajakasthuri Ayurveda Medical College Hospital and chains of Pankajakasthuri panchakarma centres within the country and outside. Recently, he launched Pankaja kasthuri Life in Thiruvananthapuram
ayurveda research works. Under his renowned project‘ ‘Patheyam’ he has provided free quality meals daily to 1,000 people since 1996 in Poovachal. Lakhs of poor people are being benefited by the project which continues even today. Every year Dr Hareendran Nair organizes more than 50 free medical camps in different parts of the country. He provides the required medicines free of cost at these camps for the benefit of poor patients. In 2008, he launched his massive chikungunya eradication project in Kattakada Grama Panchayat against the dreadful disease and was successful in that mission. He regularly extends financial assistance to poor women for their marriage and helps poor students in their education from primary classes to professional education levels.
Dr Hareendran Nair
and Kochi for extending quality ayurvedic treatments. More such centres within the country and outside are to be added soon. Dr Hareendran Nair had appeared first on Surya TV and then on Kairali TV with the programme Jeevanam through which he answered many questions by patients and people and professionals on different types of ayurvedic treatments, medicines and
PASSLINE
Earlier Dr Hareendran Nair had been presented with the Best Ayurveda Doctor Award of the Government of Kerala. He is also a recipient of the National MSME Award for his ayurveda services and also the National MSME Award for Research and Development in Ayurveda. On energy conservation, he had received the Kerala State Energy Conservation Award recently. Besides he has won multitudes of awards and accolades for his yeoman service to humanity in the ayurveda sector.
February 29-March 31, 2012
32 PASSLINE
February 29-March 31, 2012
RN 65561/94 Reg. No. KL/EKM/116/2009-2011
Printed and Edited by Varghese Paul for Keethara Publications Pvt Ltd. 6802, Convent Road, Kochi-35 Tel 3043572 Email:passline.com@gmail.com and Printed at Ayodhya Printers Pvt Ltd., Cochin-26 Design & Layout by johnson