Passline Business Magazine January 2012 by Passline Business Magazine

COVER STORY

Jijo Joseph started SysInterface, the IT consulting and software services firm, in Maryland in the US in 2005 with a satellite office in India. For the three years from 2005 to 2008, SysInterface had seen good business performance with steady growth in sales and profit. While most US companies were badly bruised by the region’s economic turbulence in 2008, SysInterface continued to thrive, with sales and income both rising. Passline News Service

Jijo Joseph Jijo Joseph is the head of SysInterface, US and India, and is responsible for directing all aspects of business strategy, growth and management. He has more than 20 years of business and solution implementation experience in the information technology industry. A result-focused and efficient leader with proven ability to turn around IT solutions, Jijo has superior interpersonal skills, capable of resolving multiple and complex issues and motivating staff to peak performance. He has excellent leadership and organizational management skills and is a passionate and inspiring leader committed to providing growth and quality to associates and clients aligning IT initiatives with organizational goals and objectives. He has vast experience in dealing with the projects of JFF-Early College High School, AIGC, American Indian Graduate Centre, YouthBulild Charter Schools, DECA (Dayton Early College Academy), ISA (Institute for Students Achievements), UNCF-GMS Enterprise Scholar Tracking System, SHRM (Society for Human Resource Management), UNCF-GMS/EDS, Sr. SQL Server Consultant and Lockheed Martin, Lanham as MD.

ijo Joseph had almost settled into his software firm, SysInterface Software Solutions (P) Ltd, when worldwide economic chaos started battering the bottom lines of nearly all multinational companies, including software firms. The year was 2008, hardly three years after he started the IT consulting and software services firm in Maryland in the US with a satellite office in India. For the three years from 2005 to 2008, SysInterface had seen good business performance with steady growth in sales and profit. While most US companies were badly bruised by the region’s economic turbulence caused by the 2008 meltdown, SysInterface continued to thrive, with sales and income both rising. “The main reason why we could overcome the slowdown was that most of our projects were from non-profit organizations. These projects were mainly research-oriented ones devoted to supporting education and workforce programmes in the US, funded by the world’s largest charitable foundations like Bill & Melinda Gates Foundation and other public and private agencies like American Council on Education and Achieving the Dream. These projects had long-term objectives and goals with lofty visions and funds. We were proud to be a part of their mission,” says Jijo. What led him to think of starting an IT firm? “Like most people I was also eager to stand on my own feet and wanted to create opportunities for others,” says Jijo, now President/CEO of SysInterface LLC. He was among the first few who realized the vast potential of IT and the impact it could have on the world. He decided to go ahead with his plans. At a time when nobody dared to invest in an uncertain field, the software market in Kerala, Jijo PASSLINE

plunged into it: yes, 20 years ago. “In those days software was costly and nobody wanted it at such cost. It was a very difficult situation and we struggled hard to stay in the market with our meager earnings. However, we managed to earn a reputation by providing quality products, and for us it was a big success,” Jijo reminisces about his early attempt. With five years’ experience in hand, Jijo moved to Dubai to build up a better career. He joined IranInsurance Company as its IT Manager. Later he moved on to US as an IT consultant with companies like Panasonic, Lockheed Martin and United Negro College Fund (UNCF). “While working for these companies, I also kept in

project was managed by ACS and SysInterface was the pillar behind the design, development and implementation efforts. The success of UNCFGMS project gave SysInterface an extra mileage and reputation. During the same time Jobs for the future was looking for a software vendor capable of designing, developing and delivering a Student Information System for ECHS – Early College High School Initiative funded by Bill and Melinda Gates Foundation, Our past performance and experience with UNCF-GMS helped us a lot in bagging the ECHS-SIS project.” says Jijo. With the confidence he earned from delivering the UNCF-GMS project Jijo took up the challenge of building yet another state-of-the-art

SysInterface has grown from a one-man company to a global workforce operating in the US, India and the Middle East. It develops, integrates, deploys and manages IT services and solutions for leading NGOs, educational institutions and commercial organizations. SysInterface’s well-experienced teams of experts are strategists, problem-solvers and implementers who understand how leveraging technology can solve real business problems and maximize opportunities. The company’s reputation is built on its focus on and dedication to developing and delivering technological excellence through flawlessly executed projects while providing outstanding customer satisfaction. mind my plans for setting up a company of my own to share what I earn with those who stand by me. The companies for which I worked were completely satisfied with the quality and deliverables of my work and it was while working for UNCF that I registered SysInterface LLC in the US with just $50 in 2005,” he takes us to those days.

data warehousing application loaded with business intelligence solution.

Saga of success: Jijo had his second stint as an entrepreneur with one of the projects from UNCF. “UNCF’s Gates Millennium Scholarship (GMS)

commitment to the firm during my days as its consultant. As projects started coming to me I left the job and concentrated on them,” Jijo says.

January 31-February 29, 2012

Gradually, projects started to come his way. He constituted a small setup, sourcing manpower from the US and India. Earlier there were only UNCF projects. By and by his name and popularity spread beyond the circle around him. “UNCF was already impressed with me because of my

3 “T

wenty years ago Kerala was not mature enough for accommodating computer professionals. I graduated during that time when opportunities in the state to pursue an IT career were very limited. The only places to get IT-related jobs were Bangalore, Chennai and Mumbai. I was not interested in going out of Kerala and wished to stay back in the state. With the help of my father I was placed in HMT, Kalamassery. During those days HMT was a dream organization to work for. After six months with HMT I found that I was not getting enough opportunities to pursue my IT ccareer. While continuing at HMT I kept on looking for IT openings in and around Kochi. Finally I got an offer from a private IT firm as a faculty member. I was thinking of leaving HMT to follow my IT career, but leaving HMT was not easy because the new job was an unpaid one for some months and HMT was a Central Government undertaking. I shared my plan with my family and friends, all of whom rejected it. They said I was mad. Finally, I had to decide myself what was best for my future and it was a hard decision— I left HMT,” says Jijo. Working with a new company was not easy since Jijo was not paid anything for the next six months. But the job provided enough opportunity to learn and experience the new emerging technology. As an instructor, I gained presentation skills, learning and teaching the new technology available at that time. As I mentioned earlier the Kerala IT market had not matured during this time. Very

An unpaid job was harbinger of his later success few companies were computerized, and these were large ones like HMT and FACT. Many friends of mine talked about doing some business, a small-scale industry. I used to listen to them. I think those discussions inspired me to think of starting software development services for commercial organizations. I

friends and family, I was able to source the initial capital to give a head-start to a software development firm in Kochi, my first dream venture. Yes, ‘Softech’ became a reality. “One day I got a call from a former office col-

Softech was very successful and did business all over Kerala—from Kasargod to Thiruvananthapuram— with over 150 clients.

Jijo with his wife and children

shared my plan with my friends and all of them supported my idea. Great inspiration came from my wife. I thought of starting a business and its challenges. As I thought more and more about it, I learned that it was not easy. I was new to Kochi city and never had any business community contacts there. And of course capital was the bigtime show stopper! After examining all pros and cons, I came to the conclusion that I had to take this as a challenge and do it whatever the consequences. Finally with the help of my

Jeevan Prabhakaran joined Softech at that time and became one of its prominent software developers. “Jeevan knows how to develop and deliver software systems. Our relationship has continued to this day and he is now the Director, India Operations of SysInterface Software Solutions (P) Ltd,” says Jijo.

league: he wanted to see me urgently. He told me to meet a potential client for software development and introduced me to him. He was Swiss Time House owner Salahudeen, who was impressed, even though I had no commercial experience with companies.” Mr Salahudeen offered the contract to the young entrepreneur, Softech’s first contract. The project was implemented successfully and Mr Salahudeen introduced Jijo and his company to the business community in Kochi.

After some time Jeevan and I moved to the Middle East which was a great experience. It gave our company great mileage to explore new technology and opportunities. During the six years that we were in Dubai we implemented more than 50 software projects all over the UAE. At the same time I worked as an IT Manager with The Iran Insurance Company. “In 2000, I moved to the US dreaming of extending my operation. But again it was not easy to build a business in an unknown world. I had decided to stay in the US till my dream came true. Until 2005 I had been providing consulting service to large corporations as a senior IT consultant. These companies included Panasonic, Lockheed Martin, SHRM and UNCF. This pro-

Jeevan Prabhakaran Jeevan Prabhakaran brings in 18 years of varied experience in project management, system development life cycle, database architecture, database development, OLAP and business intelligence. He possesses long years of rich working experience in various Middle East countries as executive and at middle management levels. He is a Master’s in Economics from Christ College, Irinjalakuda, and had a brief stint in Kochi for a Diploma in Computer Applications. Thereafter he went to Mumbai and the Middle East. His last assignment in the Middle East was as IT and Production Manager for Qatar Yellow Pages.

Immediately after the establishment of SysInterface LLC in the US, he started an offshore development center SysInterface with Mrs. Sally Joseph as the proprietary. Once SysInterface LLC was awarded the ECHS-SIS contract

by Jobs for The Future, he took the Company into the next level by making it private limited company with the help of an old acquaintance, Jeevan Prabhakaran, and Deepak Sivanadan alongtimecolleague at SysInterface It PASSLINE

Deepak Sivanandan Deepak Sivanandan is a Director of the company. He completed his schooling from Model Boys High School, Kollam, in 1994 and MCA from SAASC, Erode, in 2002. He has seven years of IT industry experience. He steers the software development team and quality control. An embodiment of technological excellence and management savvy to transform client business rules to user-friendly software, Deepak does adorable work at development and implementation levels with the highest precision.

was Jeevan, Deepak and a few experts who built a platform for the company in Kochi. The projects from UNCF and Jobs for The Future both funded by Bill and Melinda Gates foundation, reinforced the company’s worth and its January 31-February 29, 2012

vided us with great technical and solution implementation experience. Working with these companies opened up lots of business contacts as well. In 2005, I started my own company ‘SysInterface LLC’ along with my wife Sally and my first contract came through a friend of mine who was a Director at NCLR National Council of La Rasa (NCLR). It was a small project, but enough to fuel my dream of doing business in the US. At the same time I was called by UNCF to provide guidance to its application and database. To provide service to UNCF, we partnered with ACS, and SysInterface worked as a subcontractor for ACS. Building this partnership and working along with UNCF provided a huge opportunity to SysInterface to grow. During this time I renamed Softech to SysInterface and started outsourcing my operations like development and support activities. In 2007 Deepak Sivanandan joined SysInterface as Application Developer and he contributed tremendously to the growth of our offshore operations along with Jeevan. We restructured SysInterface in 2010 as a private limited company, naming it ‘SysInterface Software Solutions (P) Ltd’ and, in recognition of Jeevan’s and Deepak’s talents, inducted both into the company. All this time our success was based on our deliverables and commitment”. Garnished with our aggressive marketing strategies, today our business has grown based on the referrals from our clients.

goodwill all over. “Now our clients include United Negro College Fund, Jobs for the Future, American Indian Graduate Center and many non-profit organizations. We have developed and

4 SysInterface has a team of bestin-class industry-certified software development professionals, who include project managers, software engineers, testers and designers who can adapt to every need of the customer. The use of advanced technologies coupled with their unique capability and innovation helps create quality custom applications and solutions for its clients.

Jijo with members of his staff in Kochi

implemented high-end portals and business intelligence solutions for our clients,” Jijo says. SysInterface is an IT consulting and software services company headquartered in Maryland in the US with a satellite office in India. It provides highend, cost-effective and state-of-the-art IT solutions. It is also a Microsoft-certified company. “Our mission is to help clients achieve their business objectives by providing innovative, best-inclass IT solutions and services, with a vision to be ‘the one-point source’ for all information technology needs of our clients through partnership”, Jijo explains the company’s goal. SysInterface has grown from a oneman company to a global workforce operating in the US, India and the Middle East. It develops, integrates, deploys and manages IT services and solutions for leading NGOs, educational institutions and commercial organizations. SysInterface’s well-experienced teams of experts are strategists, problem-solvers and implementers who understand how leveraging technology can solve real business problems and maximize opportunities. The company’s reputation is built on its focus on and dedication to developing and delivering technological excellence through flawlessly executed projects while providing outstanding customer satisfaction. “With its vast technology expertise, SysInterface brings innovative ideas, offers solutions to improve the existing functionality and addresses the current pain areas and technology limitations. We offer a wide range of services in software development, implementation and support. We follow an industry standard software development life cycle process to deliver quality products and services to our clients,” says Jeevan. SysInterface is committed to enabling the achievement of its clients’ organizational goals through the most effective use of information technology. “We are already recognized among our clients as a dedicated team that pre-

pares and executes programs with knowledge, experience and followthrough while providing solutions in a timely manner,” Jijo says about the way it keeps liaison with its clients. Recognizing that success comes to those who are committed to creating innovative solutions for today while wisely envisioning the needs of tomorrow the staff of SysInterface stay ahead of the industry with the use of state-of-theart technology tools to anticipate and support its clients’ future needs.

ing latest technologies. Mentor IT Labs is our maiden venture in IT finishing schools “We strive to create end-to-end solutions that meet our clients’ needs and exceed their expectations. Thus, we don’t just develop software solutions, we support them throughout their life cycle”, says Jijo.

From a humble initiative, SysInterface has grown today as a firm with a basketful of projects, which have been entrusted to it by well-known entities and the federal government of the US for its dedicated and credible craftsmanship. Now it is planning to expand its services and activities in the Middle East. “Since we have vast experience in the Middle East, arrangements have been made to launch offices throughout there by the end of this year. We are confident that the credibility we have acquired through the years will bring us more glory,” says Jijo.

SysInterface has succeeded in developing unique technologies using advanced software tools to ease and solve diverse industrial jobs. It has so far developed a unique system of services focusing on different software tasks such as application/database re-engineering and migration, mobile application development, business intelligence and data warehousing, customized software development, web-enabled application design and development and website/portal design and development. Moreover, it has developed the Next Generation Student Management System, which includes performance-based student data management framework for implementing systems that allow the tracking of student and teacher performance at the individual standards level. “We have created a customizable framework for schools which is called SchoolsEdNet and we have successfully implemented it in many schools and educational organizations across the US. This year our plan includes Schools Ed-Net Platform compatible on mobile devices like iPhone, I-pad and Arnold,”says Jeevan. Future plans: Reach out to more clients in the Middle East and penetrate Indian market, focusing on .customized software solutions, web enabled application development using NET technologies as well as providing Microsoft CRM solutions and Microsoft SharePoint implementation are some of the future plans. Other major plans includes mobile application development and setting up state-of-the-art IT finishing schools providing training us-

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PASSLINE

January 31-February 29, 2012

From the Editor Help make dream Metro a reality U

ntil the beginning of the New Year, the Kochi Metro rail project’s fate had hung in the balance. The people of Kerala, particularly those in Kochi, thought that the ambitious project would take off without much delay as preliminary work had already started. Besides, Chief Minister Oommen Chandy had announced the formation of a Special Purpose Vehicle (SPV), Kochi Metro Rail Ltd (KMRL), in June last year. But soon the project turned into a mess on the issue of which agency would implement it, though it was earlier supposed to be executed by the Delhi Metro Rail Corporation (DMRC), presided over by ‘Metroman’ E Sreedharan. The fact was that KMRL did not favour DMRC taking up the project or even playing a significant role in its implementation.

Editor & Publisher

VARGHESE PAUL Kochi

ZIAD SIDDIQUE

The State Government also supported the KMRL move for inviting a global tender for the project. Eyebrows were raised by people who saw in it a plan to swindle money because the project involves a whopping Rs 5,000 crore. The situation worsened with the DMRC wanting to be entrusted with the work without a tender. This was opposed by KMRL, but it was not against Mr Sreedharan being its adviser and mentor. Adding to the problem, Mr Sreedharan demitted office as DMRC Managing Director on December 3, leaving everyone in doubt whether he would accede to the Government’s request to take over the project.

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DMRC said that it was not its policy to take part in tenders and that it had worked all along on nomination basis, indicating that Mr Sreedharan won’t accept the Government’s request. But then came the good news that the Government has decided to entrust the Metro work to DMRC and the project would be implemented by it under Mr Sreedharan’s leadership, putting an end to all uncertainty. The Chief Minister himself announced that Mr Sreedharan was part of the project and so was DMRC. Now, what next? As the city is going to embrace, in another three-four years’ time, the mass rapid transit system, everyone involved in the project—the implementing authority, the State Government, the hundreds of employees, workers and engineers, the citizens, traders and, businessmen—should pose to think of the advantages and benefits it will bring to them, to the city and to the State as a whole. The Central Cabinet’s approval is the only formality that remains. After this green light DMRC and Mr Sreedharan will go the whole hog to complete the project in a record time of three years, as Mr Sreedharan himself has promised. There need be no fear about it being completed within this period because Mr Sreedharan is one who has done it before, not once but twice—he completed the Konkan rail line and Delhi Metro project ahead of the allotted time. When completed the Metro will be a global service. Everything about it will be international class. There may occur disruption to traffic and hardships to people during the project work. But all will have to patiently put up with them because the Metro belongs to us, the people. We must understand that the backbone of a truly developed city is its efficient public infrastructure. The Kochi Metro is definitely a huge step in this direction. It will strengthen the public infrastructure of the city and provide Kochiites with an easier and faster commute. The next three years will be challenging. Land acquisition, which is yet to be completed, may pose problems. Unless those involved cooperate with the authorities wholeheartedly, work may drag on for years. Labour militancy should also be kept in check. Landowners and labour unions should consider the larger interests of the people. Let us prove to the world that we can also build world-class transport systems. The Government should also see to it that unnecessary and time-consuming procedures are done away with and clearances are given quickly. Let all realize that as a transformational transport project, the Kochi Metro will have an impact that goes beyond easing traffic congestion in the city.

Varghese Paul

Readers' views Drugs Corp a prime need Drugs manufacturing companies are flourishing all over the world. The same is the case with allopathic medicines. Different companies’ medicines are available for one ailment. Doctors also prescribe substitute pharmaceuticals for one medicine. The price of the drugs of different pharmaceuticals for the same disease also varies. Most medicines are available in shops run by private parties. But the case is different in public sector outlets. Patients often face the ‘out-of-stock situation’ in hospitals and health centres. If this is the case of common medicines we can imagine the situation when demand arises for life-saving drugs which are not widely available and even imported. For such imported drugs the common man has to pay through his nose to meet his need. Neethi Stores, State-run pharmaceutical outlets, sell drugs at cheaper rates than private vendors. Though the patients rush to these outlets, all the drugs are not readily available there too.

Motivational

In this predicament it is high time the Government opened a drugs corporation. As PASSLINE (December issue) points out, the norms for starting such a corporation are simple as the Government-run Beverages Corporation is an example. A drugs corporation may be a prototype of the Beverages Corporation which recently proposed even a plan of importing liquor from foreign countries. The same mode of operation can be adopted in the case of a drugs corporation also which can eliminate middlemen and where the lifesaving drugs can be supplied and sold cheaper to genuine patients and, if need be, at subsidized rates to BPL patients.

We often read about young boys/girls taking up the reins of power of some big business enterprises after their mentors relinquish office. There are also stories about self-made students who find their own ways of doing things making it big in life.

-Amal Adarsh, Cherthala

-Cyril James, Philadelphia, US

FDI should be in small retail Foreign direct investment (FDI) in retail is, of course, a bonanza for farmers (December issue). But it should be in the small retail sector. As Dr N Ajit Kumar says in his article, large retailers would never depend on middlemen during procurement. It is the small farmers who are blindly exploited by intermediaries. So it will be a step in the right direction if the Government allows FDI in the small retail sector provided the FDI investors build a customer base and will not allow the intervention of middlemen for supplies and also take steps to provide warehouse facilities to the farmers.

Jijo Sunny has his place in the latter category (PASSLINE December issue). Such motivational columns and people inculcate a spirit of entrepreneurship in the young and old alike. Let there be more motivational columns like this in the magazine in future!

Practicable suggestion Mr Antony Ooden’s letter on Rs 5 lottery (December issue) seems to be a practicable suggestion to mitigate the shortage of the Rs 5 notes/coins bus passengers and crew daily face. It is learned that the printing cost of Re 1 denomination currency exceeds its value. I am not sure if the same is true in the case of Rs 5 denomination notes and lottery. If the lottery costs less than its value it is worth printing. Moreover, it may be an ideal step for other states to follow and be part of minting money indirectly. -K P Rajesh, Palakkad

There are reports that the move for FDI in multi-brands has not been dropped. That means the proposal is pending. Initially the plan was to leave multibrands and allow FDI only in single brands. But I do not understand how far FDI in single brands will help farmers as the Government is now contemplating. I think it will not be of much help to farmers as a whole. There are people who feel that FDI in retail will bring prosperity to the real estate sector. With the coming up of supermarkets of MNCs there will arise the need for super-commercial complexes in accordance with the norms and standards of the real estate sector. So FDI in the retail sector can create an upswing in the realty sector. It will also raise the demand for more houses. For the FDI proposal to materialize, the woes of small retailers will have to be addressed first. -A V Joseph, Alappuzha

Exemplary gesture It must be said that the customer care contact centre launched by Federal Bank at Thottekkatukara, near Aluva, is unique as a majority of business houses nowadays are content with customer care call numbers which is often a waste of money and time and testing the patience of the caller because the call often will not serve the purpose. This call centre (not number) is also laudable because it is manned by differently abled as part of the bank’s corporate social responsibility (CSR). The bank’s gesture is worthy of being emulated by other corporates. -A reader and FedBank customer, Desom, Aluva

Exposing facts PASSLINE deserves kudos for highlighting the salient features of realty expos which are often skipped by prospective buyers. Normally one is reluctant to visit a property expo before one goes for building or owning a home or investing in the real estate business. The December issue of PASSLINE, however, brings to light the various formalities and intricacies that one is ignorant of. More write-ups of this kind would shed light on latent things. -Dayananand K V, Thrissur PASSLINE

January 31-February 29, 2012

ECONOMY

7 The high inflation rate coupled with the worsening global economy impacted the state’s economic momentum. Frequent increases in fuel prices made the life of the common man intolerable. Almost all financial sectors faced problems, except a few which reaped benefits.

What does 2012 hold for Kerala’s economy?

By Ziad Siddique

erala’s economy was not vibrant last year for both internal and external reasons. The high inflation rate coupled with the worsening global economy impacted the state’s economic momentum. Frequent increases in fuel prices made the life of the common man intolerable. Almost all financial sectors faced problems, except a few which reaped benefits. However, the gains that those sectors made were not adequate to offset the decline made by other sectors. The state’s growth sectors are information technology, tourism, real estate and commodities— spices, coconut, rubber etc. The share of Kerala’s spices in the global market is decisive, but the quantity of production was lower than that in previous years, though the value realization was higher for the crop year 2011-2012. The reason for the decline in the volume of exports could be the lower production as well as the economic slowdown. According to the

Spices Board, 2,37,585 tonnes of spices and spice products valued Rs 4,165.59 crore ($920.55 million) were exported from the country during AprilSeptember 2011, as against 2,94,925 tonnes valued Rs 3,220.16 crore ($ 699.25 million) during April-September 2010, registering an increase of 29% in rupee terms. In dollar terms the increase was 32%. In terms of volume there was a decline of 19%. Kerala’s tourism industry is also a victim of global recession, besides internal issues like the Mullaperiayar dam. The arrival of foreign tourists to the state went down significantly in 2011. The ‘water bomb’ phobia relating to the dam prevented many international and domestic tourists from coming to the state. The performance of the equity market was very disappointing because of the Reserve Bank of India’s fiscal policy. The Eurozone debt crisis which shook the global markets did not spare Indian markets too. Investors dumped their sovereign bonds from the Eurozone markets for PASSLINE

fear of risk. The persistent inflation compelled the RBI to stick to its hawkish stance on monetary policy and the resultant interest rate increases. For the information technology and realty sectors, 2011 proved a boon as both made major gains throughout the year. Both sectors performed well amid the adverse economic scenario in the state.

Tourism The tourism industry has not been faring well for the 2011-2012 season and has declined by 20% to 30% so far. Arrivals of foreign tourists, mainly from Europe, and also domestic visitors have plunged because of the recession and the Mullaperiyar dam issue. It is not possible to predict the 2012-13 season at this point as it will depend on the revival of the global January 31-February 29, 2012

economy and the steps the State Government will take to improve the situation. In its election manifesto, the UDF Government had promised a comprehensive tourism development policy and had even initiated some steps towards this. Unfortunately no declaration has been made in this regard so far. The industry demands aggressive and active intervention by the Government to boost tourism. The Government should try to find an amicable solution to the dam issue, which has tarnished the state’s reputation. The industry feels that Instead of tackling the issue carefully, the Government confronted it in an emotional way. Arrivals of domestic tourists from Karnataka, Tamil Nadu and Andhra Pradesh to Kerala’s Thekkady, Kochi and other major destinations,

8 year was not favourable for spices, rubber and gold in the state. Volatility is expected to remain in these commodities as long as the debt crisis remains unsolved. Besides, measures are to be taken to increase the productivity of major crops.

Unlike other sectors, information technology registered some growth in 2011. It revived from its downtrend in 2009 and is likely to improve further in the coming years. According to Jeevan Prabhakaran, Director, Infopark-based SysInterface Software Solutions (P) Ltd, during 2011 the Indian IT industry showed a remarkable turnaround, export revenue from IT services, business process outsourcing and software production and engineering touching $59 billion, an 18.7% growth rate over 2010. IT indices which showed a downward trend in 2009 gradually picked up, and revenues and job opportunities started climbing during 2010. therefore, have considerably dropped. “However, we expect a good season during February with some likely changes. It is only a hope; we hope it will be robust,” says Mr E M Najeed, Chairman of the Airtravel Enterprises Group of Companies.

tanked to its all-time low of 54.23 against the US dollar. The year also witnessed huge FII outflow from the Indian markets as foreign institutional investors became jittery over the high Inflation and interest rates, says Ms Tabassum.

Equity market

“We consider 2012 as the year of hope. Concerns over the increasing interest rates across the emerging markets and the declining demand may decrease commodity prices across the globe. The current monetary tightening by the central bank and the prospective fall in the commodity prices may reduce the inflation in 2012. Hence we reckon 2012 as the year of reversals. A stable interest rate and policy triggers from the RBI may encourage more investments which may hasten the GDP growth by the second half of CY 2012. Also FII investment may also start gaining momentum in India once commodity prices correct and Inflation comes under control.

The year that has gone by was an utterly disappointing one for the Indian equity market. Our markets were the biggest underperformers among the emerging economies and the BRIC nations, slumping 25%. Inflation and interest rates remained high throughout the year. The Eurozone debt crisis was also a major event which shook global markets including those in India. Investors dumped their sovereign bonds from the Eurozone markets to avert risk. The persistent inflation compelled the RBI to stick to its hawkish stance on monetary policy and the resultant interest rate increases, says Ms Thabassum Shahmon, an equity analyst with JRG Securities. All these turned investors away from making fresh investments which subsequently decelerated the GDP growth of the country. The country was suffocating with scams and scandals in the year which also affected the already bruised markets. The rise in commodity prices especially gold was another noticeable feature in 2011. The rupee

Commodity markets Last year was a murky year for Kerala’s commodity markets. It was not as promising as the previous year. Exports of major crops, particularly spices, from the state went down because of the lower production and euro zone debt crisis. According to Mr Sreekumar Raghavan, Chief Commodity Strategist for Commodity Online, last PASSLINE

Kerala is fond of gold and its ornaments. People in the state invest in ornaments against all odds because of their hedge value. Hence gold is a key commodity in the state’s economy, one-third of the country’s gold being consumed by it. Gold ornaments sales have been slightly hit by the increase in prices, which are expected to move further up as a result of the increased import and excise duty by the Central Government. Experts say that investment in gold will remain constant in the coming months despite the high prices.

Information technology: Unlike other sectors, information technology registered some growth in 2011. It revived from its downtrend in 2009 and is likely to improve further in the coming years. According to Jeevan Prabhakaran, Director, Infopark-based SysInterface Software Solutions (P) Ltd, during 2011 the Indian IT industry showed a remarkable turnaround, export revenue from IT services, business process outsourcing and software production and engineering touching $59 billion, an 18.7% growth rate over 2010. IT indices which showed a downward trend in 2009 gradually picked up, and revenues and job opportunities started climbing during 2010. Growth of the domestic market looks stable and mature with revenue reaching Rs 787 billion registering a

16% growth rate compared with 2010. The IT industry added 2,40,000 jobs in 2011. The Indian IT industry is ready for future challenges and stays ahead of its counterparts elsewhere. Indian companies are offering cloud-based solutions, business intelligence solutions and mobile applications which are considered to be the emerging technology trends. However the industry has to tackle multiple challenges like talent quality, wage inflation and currency fluctuations to stay ahead, Mr Jeevan says. He says the Government has to take adequate steps to improve infrastructure, expand technoparks and special economic zones to more cities. In short, India will remain the focal point of global IT business process outsourcing and the favourite offshoring destination. The industry will continue to generate more employment and revenue in the future.

Real estate The real estate sector in the state performed well last year. Despite the sporadic skirmishes pertaining to the economy, the sector almost remained firm in 2011. According to Mr M A Antony, Managing Director of Kunnel, a construction company, and Secretary General of the International Federation of Asian & Western Pacific Contractors’ Association, the realty sector performed well during 2011 not succumbing to the global economic threat and the economic policies of the country. Last year was far better than 2009 and 2010. What drove the sector to grow was, he says, that people found realty a safe haven for investment. This trend is expected to continue this year as well, he says.

Kerala’s tourism industry is also a victim of global recession, besides internal issues like the Mullaperiayar dam. The arrival of foreign tourists to the state went down significantly in 2011. The ‘water bomb’ phobia relating to the dam prevented many international and domestic tourists from coming to the state. January 31-February 29, 2012

Dr N Ajith Kumar

he year 2008 was a disaster, 2009 saw a slow revival, 2010 signalled a recovery in many of the sectors and 2011 was expected to be vibrant capitalizing on the recovery of 2010. Till about 2011 midyear, one has to state, things were certainly not that bad. Then came the news of the year: “Standard and Poor downgraded the US for the first time since rating began in 1941 from AAA to AA+.” This shocked the world. The US treasury which had accumulated a whopping $14.3 trillion through its various tranches over a period of three years in an attempt to prop up a sagging economy was indirectly accused of its inability to repay its debt obligations for the current year amounting to $4.2 trillion. S&P made it very clear that the maximum the US could repay at its present rate of repayment was just over $2.3 trillion in the current year. This devastating piece of news had a debilitating effect on the world economy and the downturn of 2011 had begun. The impact was immediate on India. Gold glittered and the rupee swooned. Between April and August the price of gold soared 25% and the value of the rupee plummeted 20%. Overnight, 2011 became a year of setbacks. Very true is the adage that the ‘herd effect’ just envelopes the economy at such a fast pace that before one knows what is happening things go out of control. The rupee saw such a deep decline and one was flabbergasted to see the absolute lack of concern by the Government. When it was found that the very credibility of the nation would be at stake the only solution that was possible was resorted to: interference by the Reserve Bank of India. The issue which was of prime concern for the Government during this year seemed to be inflation. It was evident from the fact that interest rates were revised upwards 13 times between March 2010 and October 2011. The adverse impact on exports was there to see. Though we achieved the target of $200 billion during the year the revised target of $300 billion for the best two years seems currently a far-fetched dream.

At the end one finds that in December inflation seemed to come under control. Inflation which was at 9.72% in September increased to 9.73% in October, only to slide down to 9.36% in November. The effect of the copious monsoon India had this year was bound to have a positive impact. With a substantial increase in supplies inflation has come under some sort of control. The overdependence on monetary measures had no effect. At the end of the year at least the authorities were made to realize that it is supply side policies alone that are self-sustaining rather than controlling the supply of money and thus trying to impair demand. We now receive the information that for the first time in several years food inflation has become -3.36%. To attain this negative inflation when we began 2011 at 15.48% gives us a tinker of hope that 2012 cannot be that bad! of the year we are facing the grim situation where this investment has come down to $10 billion. The losses made by the investors reached record proportions and the FIIs withdrew nearly 35% of their investments. India boasts of a highly resilient stock market. Even when all stock markets closed for over a week following 9/11 the Indian stock markets worked the next day as if nothing was wrong! But 2011 saw the world stock markets performing rather well while India’s was just the opposite. The US stock market index made a gain of around 3% and the decline in British stocks was hardly 10%. In comparison this decline of over 25% by the stock markets is certainly a matter of great concern when the year comes to an end. The year has been truly bad for the nation’s realty, construction and capital goods sectors, and the metals, banking and natural gas industries. Will 2012 augur well for these sectors? This is the million-dollar question.

Is a turnabout round the corner? At the end one finds that in December inflation seemed to come under control. Inflation which was at 9.72% in September increased to 9.73% in October, only to slide down to 9.36% in November. The effect of the copious monsoon India had this year was bound to have a positive impact. With a substantial increase in supplies inflation has come under some sort of control. The overdependence on monetary measures had no effect. At the

end of the year at least the authorities were made to realize that it is supply side policies alone that are self-sustaining rather than controlling the supply of money and thus trying to impair demand. We now receive the information that for the first time in several years food inflation has become 3.36%. To attain this negative inflation when we began 2011 at 15.48% gives us a tinker of hope that 2012 cannot be that bad!

The capital market has had a rather disastrous year. At the start one saw the Sensex swinging round the 20,000 mark only to flatter to deceive. The last two months were just unbearable. Finishing the year at the 15,500-15,600 level was hardly an inspiring sight for the Indian investor. The concern is with regard to the inflow of foreign capital. With a flourish the Finance Minister had in his budget speech announced that the inflow of foreign capital till January 2011 was in the range of $21 billion and the net increase in the year was nearly $10 billion. But at the end of the year we are facing the grim situation where this investment has come down to $10 billion.

PASSLINE

January 31-February 29, 2012

Is there hope in 2012? This writer feels there is scope for hope. The most important sector that guides India even after 64 years of independence is the agricultural sector. It’s real good news that is coming from this front. Foodgrains production is expected to touch 240 million tonnes this year. Schools and colleges in the Punjab and Haryana and in certain parts of Uttar Pradesh received an extended Dussera holiday because there weren’t sufficient godowns to stock the large grains output! The best news the country has received is the declining foodgrains prices. This is sure to have a chain reaction that would facilitate development in other sectors because of the high degree of linkage one witnesses in India between agriculture and the other sectors. What is now essential is the reduction in interest rates which is sure to help industry to recover. The huge sugar output and those products that are agro-based are sure to signal a recovery in the industrial sector. Agro-based industries are only a miniscule, but the positive vibes this sector is bound to produce are sure to have a motivating effect on the organized sector. With the lowering of interest rates on the cards and the announcement from our economist Prime Minister that India would grow by 7% this fiscal make us feel that 2012 may bring in a new life to this sagging economy of ours. The US is showing signs of revival and as the third largest economy in terms of purchasing power in the world can India be far behind? (The author is a freelance writer)

By Dr V K Vijayakumar

The year 2012 is also very likely to be impacted by developments that cannot be foreseen now. These developments can be positive or negative. Also, there are some possible developments which can be anticipated.

conomic forecasting is challenging even during normal times. In this age of uncertainty, it is extremely difficult. There are two kinds of factors that can wreck havoc with forecasting – one, ‘known unknowns’ and two, ‘unknown unknowns’. To illustrate: the euro crisis in 2011 was a known unknown—the crisis was known but its intensity and extent were unknown propositions. On the other hand, the Japanese tsunami and its devastating consequences on the economy, the US credit rating downgrade which sent financial markets into a tailspin and the Arab Spring with its profound political and economic impact were ‘unknown unknowns’. Nobody could foresee these developments which had a profound impact on the world economy in 2011. The year 2012 is also very likely to be impacted by developments that cannot be foreseen now. These developments can be positive or negative. Also, there are some possible developments which can be anticipated. Let us do some crystal ball gazing in an attempt to visualize those. First, the possible good news: America is likely to post robust economic growth in 2012. It is already on the recovery mode. Economic data from the US are encouraging. Housing was up by 9.3% in November. Builder confidence levels have reached the highest level in four years. Rentals are up by 4.7%. Housing inventory has dropped by 25% from the peak. These are good numbers.

deficits and debt might reach crisis levels. Therefore, it would be premature to say that debt default and a banking contagion are unlikely. China has been a major engine of global growth in recent times. Emerging Asia, with China in the lead, has played a crucial role in preventing the global recession of 2009 from aggravating into another depression. China with a possible growth rate of above 8% is likely to be the fastestgrowing economy in the world in 2012 too. However there are areas of serious concern. The Achilles heal of the Chinese

economy is its dependence on investment. Investment is 50 % of the GDP and a substantial part of this is the investment in housing and other forms of real estate. There are clear signs of bubble in the Chinese real estate. Leading economists like Nobel laureate Paul Krugman have warned about a possible collapse of the bubble. If this happens, the financial system in China, which is already vulnerable with high NPAs, will be seriously impacted with the possibility of hard landing. This can have profound negative consequences for the global

Greece will find the going tough when some of its bonds come up for redemption in March 2012. Bond yields in major troubled countries like Italy and Spain are on the higher side. With climbing bond yields and contracting economies, fiscal

For India 2011 was a very bad year. Almost everything went wrong on the economic and political fronts. Inflation remained stubbornly high at above 9%. The Reserve Bank of India continued with monetary tightening, raising the repo rates by 2.75% for the year. High interest rates have impacted investment. The GDP growth rate for FY 2012 is likely to decelerate to around 7% from the budget target of 9%. The rupee depreciated sharply by 18%. Industrial production contracted by a massive 5.1% in October. The twin deficits—fiscal deficit and current account deficits—are above comfort zones. The stock market is down by 24.6% for the year. To add to these woes on the economic front, politics played spoilsport with a dysfunctional government, irresponsible opposition and policy paralysis. These economic and political issues have impacted investor confidence considerably. However there are silver linings among the dark clouds. Inflation, particularly food inflation is coming down. Food inflation which was above 16% at the beginning of the year is down to -3.32% for the week ended December 24, 2011. Current trends indicate further weakening of inflation. This will give the RBI enough flexibility to ease and reverse the monetary tightening cycle. This will be a major stimulus to the economy, particularly for interest-sensitive sectors like capital goods, automobiles and banking and, indeed, a shotin-the-arm for the stock market. An important indicator to watch out for would be crude prices. A decline in crude prices would be welcome relief to India, while a spike in crude prices caused by geopolitical factors in the Middle East will worsen the fiscal deficit impacting the economy.

US unemployment has fallen to the lowest level (8.6%) in 30 months. Retail sales have been growing for six months in a row. US Q4 growth is likely to be around 3.5 %. The country can achieve GDP growth of 2.5% to 3% in 2012. This will be beneficial to the global economy in general and emerging market exporters like India in particular. Of course, if the U S recovery is to sustain, unemployment has to decline further. There are sceptics who believe that the recovery may not be sustainable. Europe was the epicentre of the economic crisis in 2011. More bad news can be expected from Europe this year too. However, there are some silver linings. The euro is still alive. Euro member countries have agreed on an action plan for fiscal consolidation. This gives hope that the southern European nations are on the mend. The European Central Bank (ECB) has stepped in with some major support for European banks. No one is talking of leaving the euro. In fact 10 more countries have agreed to join it with tighter fiscal norms. A credible longterm action plan for stability appears to be in place; however, there is more pain to come in the short run.

economy. A positive fall-out of the probable Chinese slowdown will be the crash in commodity prices that will benefit India substantially.

The possible good news is that America is likely to post robust economic growth in 2012. It is already on the recovery mode. Economic data from the US are encouraging. Housing was up by 9.3% in November. Builder confidence levels have reached the highest level in four years. Rentals are up by 4.7%. Housing inventory has dropped by 25% from the peak. These are good numbers. PASSLINE

January 31-February 29, 2012

From the political perspective, the outcome of the UP elections can be a gamechanger ushering major changes in the UPA coalition equation. If the political fortunes of UPA-2 turn for the better, one can expect a bold and imaginative budget from Pranab Mukherji unleashing a virtuous cycle. Since 2011 was a bad year, it would be realistic to approach 2012 with cautious optimism. (The author is Investment Strategist, Geojit BNP Paribas Financial Services)

COMMODITIES

By Sreekumar Raghavan

Stable to positive outlook expected for 2012 Coconut oil prices may recover again in 2012 as the weaker rupee will make import of edible oils costlier. Secondly, the drought in Argentina and the US has already created concerns about a drop in soybean production and consequent rally in prices. If soy oil and palm oil prices reach new highs in 2012, consequently it could favourably impact coconut oil and coconut value-added products as well.

alikerathinte nattilenikkoru nazhiyidangazhi mannundu’ ( In the land of coconuts, I have a small piece of land). For Malayalees around the world, the lyrics penned by P Bhaskaran and sung by K J Yesudas bring nostalgic memories of coconut palms that give the refreshing greenery to Kerala.

market including the Eurozone debt crisis, US financial crisis and falling demand for natural rubber in China while Indian tyre manufacturers opted for increased imports to take advantage of weakened prices in international markets. Kerala accounts for close to 90% of India’s rubber production and hence any volatility or a downward trend in prices hurts the State.

However, it is unlikely that rubber futures will be banned by the Consumer Affairs Ministry.

India’s rubber production had risen close to 4% in April-November, 2011 while in December imports were up 5.7% on an annualized basis at 21,734 tonnes.

Coconut cultivation in the state is going through a crisis—ageing trees, falling productivity, paucity of climbers and competition posed from nearby Tamil Nadu, Karnataka and Andhra Pradesh, which are climbing up in acreage and productivity. For coconut growers in Kerala, 2011 was not entirely worrisome although volatility was quite high. Coconut oil prices peaked at Rs 10,400 a quintal in May but fell to Rs 7,500 in December and have now started picking up to Rs 7,650 at the dawn of New Year. Kerala produces six billion nuts annually and production is expected to rise 10% this year. Coconut oil prices may recover again in 2012 as the weaker rupee will make import of edible oils costlier. Secondly, the drought in Argentina and the US has already created concerns about a drop in soybean production and consequent rally in prices. If soy oil and palm oil prices reach new highs in 2012, consequently it could favourably impact coconut oil and coconut value-added products as well.

Which way will rubber prices go in 2012? There are a few key factors that could sustain prices above Rs 200 a kg. One is the buoyancy seen in automobile sales in recent months and the 7% rise in consumption seen in November and December 2011. Secondly, the falling inflation rates in the past few weeks may compel the Reserve Bank of India to reduce interest rates that could create liquidity in the market and increase industrial production. Manufacturing growth has indeed picked up in the country, according to the latest Index of Industrial Production (IIP) released by the Government. Average tyre production in the country had registered a 4% growth rate in April-November and the trend is likely to continue on the positive outlook for the automobile industry, which accounts for the major consumption of natural rubber. Stable to positive crude oil prices also provide firm support for rubber in 2012. At the global level, 2012 production is expected to rise 3.1% to 10.4 m tonnes but demand gains will depend on a solution to the Eurozone debt crisis and recovery in US markets. Heated discussions continue on the impact of futures trading in rubber price volatilities in 2011 and the consequent demand for a ban on rubber futures.

Even when retail prices are ruling at Rs 14 a nut and tender coconut prices rise to Rs 20, the farmer continues to get unremunerative prices. Coconut oil prices are set to fall further as the season starts and farmers may find the going tough and a major market rally can be expected only ahead of the Onam festivities.

Pepper: Pepper is considered the king of spices and Kerala has a major stake in this commodity with Kochi being one of the main markets for this much-sought-after spice. In 2011, pepper markets were indeed volatile on decreased production estimates, supplies and increased demand in overseas markets. Pepper futures prices rose to Rs 36,000 per 100 kg but subsequently fell to Rs 30,000 in December as hopes of new-season crop arrivals by January 15 weakened market sentiments. According to the International Pepper Community, global production of pepper had fallen to 2,98,400 tonnes compared with 3,10,000 tonnes in the previous year while IPC expects production to rise to 3,20,155 tonnes in 2012. The world consumption of pepper rose 3%-5% but there was no corresponding rise in production. In India, domestic production had fallen to 43,000 tonnes in 2011 from 48,000 tonnes in the previous year. The crop already faces tough competition for acreage from rubber in Kerala and hence much of the export demand for the commodity will have to be

Rubber: Rubber farmers and traders may describe 2011 as a disappointing year when prices peaked to above Rs 230 a kg for RSS 4 grade but subsequently slumped to below Rs 200 towards the end of the year. Several factors had impacted the PASSLINE

January 31-February 29, 2012

12 met through imports in the coming years. Prices may remain subdued up to April as the harvest season begins in India and Vietnam which will peak by June and overseas buyers will be active looking for bargain buyers which could prop up prices. In the futures counter, support is seen at Rs 27,000 to Rs 28,000 per 100 kg for the coming year.

average spot prices for cardamom seen at Rs 525 while high quality fetches about Rs 800. Cardamom production had risen to 15,000 tonnes in 2011 from 13,000 tonnes in 2010. With Guatemala production and demand likely to weaken in 2012, Indian cardamom prices could stabilize to Rs 800 to Rs 1,000 which should provide some comfort and relief to farmers by the end of the year. Gold: The rally in prices of this yellow metal indeed caused panic for Keralites who invest heavily in gold ornaments for wedding and investment purposes. Gold prices per sovereign (8 gm) rose to Rs 23,000 in September before falling back t o Rs 20,000 in December following the weak rupee that led to a fall in import of gold in the last quarter of 2011.

Cardamom: For cardamom growers in Idukki, 2011 may well be the year they may wish to forget. Never before have prices plunged so low and the Mullaperiyar issue only worsened the already dismal scenario in November and December last year when cardamom auctions were suspended following the tension on the Kerala-Tamil Nadu border. By the end of the year, cardamom prices had fallen to Rs 350 a kg for growers and paucity of labourers from Tamil Nadu due to he Mullaperiyar issue only added to the gloom. With the resumption of auction in December 27, prices have climbed with

According to the World Gold Council, jewellery demand weakened in the third quarter and fourth quarter of 2011 because of higher prices and volatility in the market resulting in Q4 gold imports falling to 125 tonnes and overall gold imports falling to 850 tonnes in 2011 compared with 1,000 tonnes imported in 2010. Gold prices continue to remain subdued on global trends but investment demand continues to be stable—especially for bullion, coins and exchange traded funds (ETFs). Gold prices continue to be well supported by ETF investment demand, central bank buying and uncertainties in the global

economy and Eurozone crisis. With the rupee gaining strength against the dollar and wedding season demand to resume by mid-January some upward movement can be expected in prices. However, no major rallies are expected in 2012 but a steep decline is also ruled out with support seen at Rs

24,000 per 10 gm. (The author is a business journalist based in Kochi and is Chief Commodity Strategist for Commodity Online, a leading provider of information, research and trading services for investors)

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January 31-February 29, 2012

CAPITAL MARKET

Inflation in India is now under control. Reports are coming about appreciation of the rupee because of the steps taken by the Reserve By Raghavan V

The year 2011 witnessed stock markets all over the world cruising through rough weather. The global economic slowdown, the debt crisis and political upheavals in some countries led the markets to face ups and downs during the period. Above all, higher inflation and higher interest rates, the Central Government’s lethargy and corruption cases pushed the Indian stock markets down. Foreign institutional investors (FIIs), high net income groups and retail clients were also on a selling spree because of the slump in share prices.

Bank of India. The Union Government has announced its decision on direct FDI in single-brand retail. Major decisions are likely to be announced after elections, due in five states, are over. Moreover, the forthcoming budget in March is expected to improve market sentiments.

Signs bright for stock markets

In Europe also the crisis is getting defused. The debt/ economy restructuring plans are receiving positive response from almost all countries. Germany is projecting a big growth momentum this year.

Inflation in India is now under control. Reports are coming about appreciation of the rupee because of the steps taken by the Reserve Bank of India. The Union Government has announced its decision on direct FDI in single-brand retail. Major decisions are likely to be announced after elections, due in five states, are over. Moreover, the forthcoming budget in March is expected to improve market sentiments. Interest rate reduction and other relaxation measures are likely in the coming months. As in the previous

In the first few months Nifty will rally between 4,400 and 5,200 points. The Nifty index may move between 4,200 and 5,700 points and Sensex in the 13,500-19,500 range during the year. After June, the market may move in a positive way. Generally 2012 may provide good opportunities for all investors. Interest rates are now on a peak and this is the best time to invest in fixed and recurring deposits. Even savings bank accounts balance draws 7% to 9% interest. Investors may opt for investing in long-term fixed deposits and starting recurring deposits for three and more years which bring maximum returns. This option is better for retired people, ex- NRIs and investors who want to get monthly incomes.

Globally there were some positive signs visible at the beginning of 2012. Internal strife in most countries and political issues have been solved. America also seems to be recovering from the crisis and has even started showing signs of growth on the employment front. The housing scene is improving. Consumption figures are also positive. The GDP is expected to grow. The dollar has strengthened against all other currencies.

In Asian countries, Japan is recuperating from the ravages of the earthquake and tsunami. In tandem with the global economy China is showing modest growth in manufacturing and exports. Because of the Iran problem crude oil prices, however, remain volatile, which otherwise would have remained modest.

background but their peak is over. Companies’ third quarter results are trickling in. They and the budget for 2012-13 are the factors that decide the trend of the markets. Corporate results are expected to improve from the fourth quarter onwards. The market is expecting some positive policies and productive steps to boost the economy. The budget, it is hoped, will have measures that will help boost the market. The election results in the five states will also have some impact on deciding the trend of the stock markets. But here also a mixed trend is expected.

year, this year also investors expect a good monsoon. These are signs of growth in the GDP and the economy.

Stock Exchange/National Stock Exchange focus on the small and medium enterprise (SME) sector may bring more changes in the economy.

This year some more decisions on FDI in the retail and aviation sectors are likely to be announced, Decisions on the Direct Tax Code, investment in direct Indian stock markets by foreign citizens and Bombay

There is likely to be some relaxation in the export norms of sugar and other agriproducts. Oil price deregulation and subsidy reductions etc will help to reduce budget deficits. Public sector compa-

nies’ disinvestment and some loss-making companies’ sales also need to be finalized. Market watchers also expect some positive announcement about infrastructure development and rural development plans. However, stock markets cannot expect any big fall or sudden rise immediately. Problems still linger in the

However, stock markets cannot expect any big fall or sudden rise immediately. Problems still linger in the background but their peak is over. Companies’ third quarter results are trickling in. They and the budget for 2012-13 are the factors that decide the trend of the markets. Corporate results are expected to improve from the fourth quarter onwards. The market is expecting some positive policies and productive steps to boost the economy. The budget, it is hoped, will have measures that will help boost the market. PASSLINE

January 31-February 29, 2012

Real estate prices are showing a downtrend. So buying property or a house or constructing a house can be thought of this year. Gold has also good investment potential. Gold prices are likely to come down this year. This gives another opportunity to accumulate gold for the long term. Investors can buy through MF, ETF and E-Gold. Silver, like gold, is also another investment. But clients who dare risks can add industrial commodities too to their portfolio. Now they can buy these in demat form. Copper, zinc, aluminum and nickel are also good for investment. The rupee is expected to move in the 50-54 range against the dollar. This gives another benefit to NRIs. They can send more money to their motherland. But by the end of 2012 there is a chance of this moving in the 48-50 range. Another major and risky but return-giving investment segment is the stock market. It is always better to keep a minimum 10%- 20% of your savings in the stock market. Indian stock markets are expected to give good return in To page 31

MEDIA

14 Passline News Service

o newspapers are still alive and kicking. When the visual media appeared on the scene, many thought the end of the print media was near. The recession of 2008 threatened to remove the advertising and readers that had not already fled to the internet. Some newspapers themselves thought of their own doom. In America the Federal Trade Commission launched a round of discussions about how to save newspapers. Should they become charitable organizations? Should the state subsidize them? It was decided to hold further meetings but these did not take place as they became irrelevant. In India there is little sign of newspapers folding up or even facing a crisis. In fact newspapers seem to be flourishing in the country. Circulation of all is rising as also advertisement revenue. This confirms European publishing giant Mathias Dopfner’s view, “Print is going to live longer than people think.” In Kerala the print media scene is sure to hot up with the announcement of The Times of India of its launch in Kerala on February 1, 2012. Media industry people say that the paper will print two lakh copies a day initially from the nine printing centres it has planned in the state— Kozhikode, Malappuram, Palakkad, Thrissur, Ernakulam (Kochi), Kottayam, Alappuzha, Kollam and Thiruvananthapuram. The Times, which it claims is the world’s leading newspaper, has a tie-up with the Mathrubhumi, Kerala’s second largest-circulated Malayalam daily, by which both papers will be available at a combined price of Rs 6 a day on five days in a week (Times Rs 2 and Mathrubhumi Rs 4). The Saturday and Sunday editions of The Times will however cost Rs 3. It is not clear what will be the price of The Times if it is bought separately. Many feel that the tie-up and combo offer will be advantageous to both papers as they can increase their circulation. They say that it may eat into the circulation of the state’s number one Malayalam daily, the Malayala Manorama, which also costs the same as the Mathrubhumi, because a large percentage of Manorama readers will naturally fall for the Mathrubhum, attracted by the pricing. The Mathrubhumi can also draw on The Times’ international stature and even get a slice of the advertisements it will garner from Kerala and

In Kerala the print media scene is sure to hot up with the announcement of The Times of India of its launch in Kerala on February 1, 2012. It will have nine printing centres in the state— Kozhikode, Malappuram, Palakkad, Thrissur, Ernakulam (Kochi), Kottayam, Alappuzha, Kollam and Thiruvananthapuram, making it ‘the first all-Kerala English newspaper’. The Times has a tie-up with the Mathrubhumi, Kerala’s second largest-circulated Malayalam daily, by which both papers will be available at a combined price of Rs 6 a day on five days in a week (Times Rs 2 and Mathrubhumi Rs 4). also other places in the country. The efficient distribution system of the Mathrubhumi will help The Times too. According to an advertisement by The Times, what it plans is “the first all-Kerala English newspaper printed from across the length and breadth of the state. So, for the first time ever, you will get not only the latest news and opinions from across the world and India, but also oven-fresh news from every corner of your own beloved state.” The ad exhorts people to “subscribe to The Times of India along with the Mathrubhumi and pay only Rs 2 per day from Monday to Friday and Rs 3 on Saturday and Sunday for The Times of India. You save more than Rs 50 per month over the regular cover price of The Times of India.” Many feel that The Times will have an edge in terms of content and has recruited the best available talent in the industry. Besides, it can also draw on its full-fledged international and national staff and contacts. But some others play down the ‘international and national staff and contacts’ factor as, they point out, several newspapers, including two or three in Malayalam, also have this advantage. But on one point they seem to agree: The TimesMathrubhumi combine can give sleepless nights to the Malayala Manorama. They however agree that it may not adversely affect other Malayalam dailies as they have their own pockets of influence, though small. How does it affect the Manorama? They say a large number of its present readers subscribing to one English daily and one Malayalam daily may shift to the Times-Mathrubhumi combine as they get two papers at a cheaper price. Of course, there may be some die-hard Manorama readers who may not change their habit. But their number may not exceed 25%. It is also pointed out that The Times in centres like Mumbai, Delhi and Bangalore brings out very bulky editions on the eve of festivals like Diwali which are visually attractive and which appeal to readers. The paper is also likely to bring out its tabloid sister publication, Kochi Mirror, on the lines of the ones published from metro cit-

ies, Bombay Mirror and Bangalore Mirror, for example. When the Mirror was launched in Bangalore it was supplied free with The Times in the city for about two years. Now it is charged Rs 1.50. Even at a price, the tabloid, running into 40 to 48 pages a day, is worth the price it is paid for though most part of it is comprised of ads. Another attraction of The Times is its different supplements, at least one every day, like Times Property, Times Life and Education Times, in addition to a supplement dedicated to the city from where it comes out (like Bangalore Times). These, most of them youth-centred, are highly popular and reader-friendly and will definitely boost its circulation and make readers of other dailies switch to it. The inaugural issue of The Times Kerala edition will, it is learnt, comprise 100 pages. According to advertising industry sources, the daily is asking for a hefty rate for a single page. But everyone says advertisers are ready to pay a premium because The Times will reach out to an audience that is difficult to access through other media platforms. It is however difficult to say whether all advertisers in the state will shell out huge sums in a small market like Kerala. But media planners feel that because of its brand equity The Times will manage to attract premium product advertising and top-end corporate campaigns. It is too early to visualize the impact The Times is goPASSLINE

ing to make on the already existing three mainstream newspapers in the state—The New Indian Express, The Hindu and Deccan Chronicle. The New Indian Express (earlier The Indian Express) was pushed to the second place when The Hindu started an aggressive circulation drive a few years ago at a time when there were only these two newspapers in circulation in Kerala. Until then The Express was ruling supreme among the English-reading public in the state, The Hindu commanding only one-third of the former’s circulation. The poor emoluments of journalists had forced many talented journalists to leave The Express, first to join The Hindu, later the Chronicle and now The Times. The newspaper will now find it difficult to recover lost ground though it tried to make amends by increasing journalists’ salaries. But the damage had already been done. Media watchers think that the biggest losers on account of The Times’ arrival may be the Manorama and the Express. The Hindu, they say, may not lose much ground because it has a committed readership. And the Chronicle, though a newcomer, has made substantial gains in the state during the short period of its existence, first because of its pricing (it costs Rs 2.50 on all days) and secondly it has already made an impact with publishing stories of interest to the readers almost every day. Moreover, sports enthusiasts point to the great display it gives to sports news, espe-

January 31-February 29, 2012

cially to cricket. All this will see to its maintaining the advantages it has gained in Kerala. Moreover, there are rumours that the paper may further reduce its cover price (to Rs 2 on all days?) when it will become cheaper than The Times. The New Indian Express, on the other hand, already suffers from lack of talented journalists, having lost many of its veterans, as said earlier, to the other dailies. Unless it makes a daring attempt to get the cream of the journalistic profession, through highly attractive pay packages and other benefits, it is difficult for it to improve its present status and may be forced to be pushed to the last position in Kerala also as is the case in many other states where it has publishing units. A global trend now is the emphasis by newspapers on giving readers what they want to read, as opposed to what they ought to. In other words, newspapers need to be more distinctive and customer-focused. Ultimately only those newspapers which follow this dictum will likely reap benefits and remain alive on the scene. The problem with many newspapers today is that, although they do much that is excellent, they do little that is distinctive enough for people to pay for it. Papers should focus on what they can do best, which means, in many cases, local news, sport, social events etc. People will pay for news only if they feel that it has value. Newspapers need to focus relentlessly on that.

ISSUE

15 India is a member of the International Convention on Large Dams (ICOLD) and CWC is in charge of our national membership. The design, construction and operation of Indian dams, thus, enjoy the safety umbrella provided by this professional network at the national and global levels. Even the safety problems related to Mullaperiyar, despite its age, could seek solutions within this broader professional framework, national as well as international.

By K Vijayachandran

here are more than 5,000 dams and reservoirs in our country, big and small, situated in various states, of different vintage, serving diverse objectives and built with all sorts of technologies. The Central Water Commission (CWC) is a statutory authority that serves as the federal custodian of Indian dams and their safety. CWC does not have its state-level counterparts and its members are nominated by the President. India is a member of the International Convention on Large Dams (ICOLD) and CWC is in charge of our national membership. The design, construction and operation of Indian dams, thus, enjoy the safety umbrella provided by this professional network at the national and global levels. Even the safety problems related to Mullaperiyar, despite its age, could seek solutions within this broader professional framework, national as well as international. Our country is greatly respected by the international community for its vast experience in the management and operation of dams and canal networks. With numerous tanks, dams, and millions of kilometres of manmade as well as natural canals crisscrossing the subcontinent, India is a world leader in traditional canal irrigation. The garland canal project of M N Dastur and the Ganga-Kaveri link proposed by K L Rao were examples of the grandiose dreams of Indian engineers during the freedom struggle and afterwards. Even Kerala had an extensive network of irrigation canals and waterway networks. They turned mostly dysfunctional because of continued neglect and totally unplanned development. Unlike Kerala, Tamil Nadu has not only retained but also improvised on their age-old canal network by supplementing them with more efficient pipe systems with sprinkler and drip irrigation accessories. The Grand Anicut and other dams and res-

Mullaperiyar

The untold story ervoirs on the Cauvery and the Vaigai and the associated irrigation networks are part of this centuries-old Tamil Nadu tradition. The Mullaperiyar dam was conceived and constructed in 1895 as an integral part of the Tamil Nadu irrigation network that had evolved over several centuries. “It created a reservoir in a remote gorge of the Periyar River situated 3,000 feet above the sea in dense and malarial jungle. From this reservoir, water flowed first through a deep cutting for about a mile and then through a tunnel 5,704 feet in length and later through another cutting on the other side of the watershed and into a natural ravine and so onto the Vaigai River which has been partly built up for a length of 86 miles, finally discharging 2,000 cusecs of water for the arid rain shadow regions of Tamil Nadu.” (ref Wikipedia)

A large amount of manual labour was involved and worker mortality from malaria was high. It was claimed that had it not been for the medicinal effects of the native spirit called arrack, the dam might never have been finished. Close to 500 people died of diseases during the construction of this dam and were buried onsite in a cemetery just north of the dam. The dam construction involved the use of troops from the first and fourth battalions of the Madras Pioneers as well as Portuguese carpenters from Cochin, who were employed in the construction of the coffer-dams and other structures. A fairly large community of local people had struggled under the determined leadership of a British army officer for nine long years to complete the dam and its associated structures. The greatest challenge was the diversion of the river so that the lower

Unlike Kerala, Tamil Nadu has not only retained but also improvised on their age-old canal network by supplementing them with more efficient pipe systems with sprinkler and drip irrigation accessories. The Grand Anicut and other dams and reservoirs on the Cauvery and the Vaigai and the associated irrigation networks are part of this centuries-old Tamil Nadu tradition.

portions of the big dam (2,21,000 cubic metres) could be built. Temporary embankments and coffer-dams used to restrain the river waters were regularly swept away by floods and rains. Because of coffer-dam failures, the British even stopped funding the project. Major Pennycuick, the British officer in charge of the dam, raised funds by selling his wife’s jewellery to continue the work. In Madurai, his statue has been installed at the state PWD office and his photographs are found adorning walls in people’s homes and shops. In 2002, his great grandson was honoured in Madurai, a function that was attended by thousands of people. According to Wikipedia, the Periyar project, as it was then known, was widely considered well into the 20th Century as “one of the most extraordinary feats of engineering ever performed by man”. Even the present generations in the region have an emotional attachment to this century-old structure. The Mullaperiyar Dam (MPD) is the only dam situated in one Indian state but owned and operated by another for irrigating its farmlands. But, it has brought in economic benefits to Tamil Nadu as well as Kerala, a fact often neglected or even suppressed by the Kerala side in the ongoing emotioncharged debate. Apart from irrigating some 2,00,000 acres of Tamil Badu farmlands, MPD has brought to life the numerous tourism ventures of Thekkady, and also the world-famous wildlife sanctuary around its reservoir, now forming part of the much larger National Park under the care of the Union Government. The economic gains of Kerala from these byproducts of MPD are commensurate with those of Tamil Nadu, from irrigation and power generation on the other side of the Sahyas. The wildlife sanctuary is home to 62 different kinds of mammals, including several endangered species including the Silent Valley fame, the lion-tailed macaque. And, according to the Kerala Forest Research Institute (KFRI), the 700 sq km of the National Park surrounding is a biodiversity hot-spot, attracting over a lakh of tourists and thousands of academics and foreign research workers every year. It is a win-win situation for Kerala as well as Tamil Nadu, and then the country as a whole: MPD and the

PASSLINE

January 31-February 29, 2012

16 surrounding forest areas need to be seen as a major national asset and not a simple instrument for irrigating a few lakh acres of farmland. But vested interests have developed around this valuable water body because of the prolonged low water levels maintained ever since the court order of 1979. The submerged area under the reservoir was 8,591 acres when the water level used to touch the design value of 155 feet. With the level getting restricted to 136 feet, the submerged area has nearly halved, releasing around 4,000 acres of dry land (see table). Dr D Ghosh, an environment expert appointed by the Kerala Government, had reported in 2007: “... at least six conglomerations with human settlements had come up in areas that were under water prior to 1979. Public institutions and commercial establishments have also grown. Raising of water level (once again) would mean displacement of large numbers of families along with their economic activities.” These illegal occupiers of reservoir land have a vested interest against the water level going up once again. They had, naturally, sought protection from the Kerala Government and formed a Mullaperiyar Samara Samithy with Father Joy Nirappel as patron. This forum had started a relay hunger strike at the dam site in December 2006 soon after the Supreme Court judgment. This hunger strike continues even today with the blessings of the Kerala Government and ministers and other political leaders, who frequently visit them. This forum has been running a chauvinistic campaign against Tamils for the past five years with all sorts of horror stories planted on the internet, to start with, and then spreading them through campaigns through the print and visual media. They have succeeded in creating a fear psychosis among the people living in the

neighbourhood and downstream of MPD. The water level of MPD, like in all other dams of the region, reaches its annual peak during first half of November. Agitations at the MPD site as well as media campaigns were intensified during this period, which also witnessed the release of a Hollywood horror film, with the controversial title of Dam-999.

pert opinions along with those of the spokesperson of the Kerala Government. This sort of chauvinistic intolerance against truth finally bombed out with the Kerala Government and its Advocate General disowning each other in the Kerala High Court. The prolonged low-level operations of MPD had its obvious impact on the irrigation canal network and farmlands of Tamil Nadu as well. They had estimated a farm income loss of Rs 40,000 crore during 1980-2005. This may be a lot exaggerated but there is no denying that pegging the reservoir level at 136 feet has virtually transformed MPD into a diversion dam from its designed status as a storage dam. Live storage of MPD at 136 feet was only around three million cubic metres, according to CWC statistics. This is only a small fraction of the net storage possible at the reservoir level of 155 feet.

Neither the media nor the political leaders, in and outside of the Kerala Government, who organized and supported this systematic campaign, with chauvinistic overtones, had found any merit in seeking genuine professional opinions. The services of half-experts and academic institutions were hired for getting doctored views for confusing the public and for spreading horror stories on dam bursts. Genuine professional opinions were never sought or encouraged. Minister K M Mani himself has stated that the Kerala Government does not require any expert advice on the need for building a new

The forced operation as a diversion dam for long periods had drastically

PERFORMANCE PROJECTIONS OF MPD RESERVOIR Level –feet

155*

136**

105***

Gross storage: Million Cubic Meter

443

147

144

Net storage: Million Cubic Meter

299

8591

4678

Area submerged: Acres * Design level

** As fixed by SC in 1979

dam. This columnist, who had pleaded for Kerala accepting with grace the Supreme Court verdict of 2006 on its merit, was considered an untouchable in media debates. Even the views of a reputed senior Malayalee engineer like Dr. Thomas, former Chairman of CWC who had studied MPD in every detail under instructions from the Supreme Court, were not sought by Kerala media and politicians. Only the Kochi edition of Deccan Chronicle had showed the courage to publish his ex-

*** Off-take level

changed and distorted the distribution pattern through the canal grid. Groundwater storage and consumption in the upper ayacuts, as in Theni district, had increased substantially, at the cost the ayacuts in the outreach districts like Ramanathapuram or Tirunelveli, where farmlands were sold out at distress prices during the 1980s following the Supreme Court verdict of 1979. Kerala investors made use of this grand opportunity by launching all sorts of plantation projects and innovative farms in these areas; many of them were, as

things turned out later, were nothing but speculative misadventures. It is for the future historians to attempt a detailed mapping of the social and economic impacts of the past three decades of Supreme Court intervention on MPD operations. However, the main contours of this transformation are clear from an emotion-charged war-like situation that has emerged. On one side are a large number of poor peasants fighting for their livelihood and supported by almost all political parties of Tamil Nadu. On the other side are the emotionally charged people living close to MPD, who keep asking the question: Why should we risk a water-bomb for irrigating the farmlands? Vested interests who have a big stake in the continued low-level operation of MPD had played a crucial role in building up this fear psychosis, and they were inadvertently supported by diverse streams of opportunist politics. Let me conclude this by quoting from my column published in this journal exactly four years ago: “Maybe the century-old dam could be there for all centuries to come, like the Great Wall of China, as a living memory of TamilMalayalee friendship and cooperation, and serving the people of the region on both sides of the mountain divide.....We are sure to find surprisingly pleasant solutions if we are prepared to pool the expertise of our great country and seek the best of technological and aesthetic solutions under the sun not only for ascertaining and ensuring the safety of the dam but also for ensuring enough water for our farmers on the other side of the divide. Let us stop petty politicking, seek broader solutions outside the narrow legal framework and start asking some of the more basic questions: How much water for the farmers and when? And, who is afraid of raising the water level and why?”

Kochouseph’s proposal for dam safety V

-Guard Managing Director Kochuouseph Chittilappilly has donated Rs 5.5 crore as part of the estimated cost of implementing his technical

proposal to improve the stability of Mullaperiyar dam. This unique proposal is intended to be an immediate remedy for protecting the lives of 35 lakh people against a natural calamity, according to Mr Kochouseph. The question whether a new dam is to be constructed or not is to be decided by the Supreme Court now that a related case is pending in the apex court. A new dam will also take a long time to complete, including the time taken to secure environmental clearances. The estimated cost of implementing his proposal is Rs 55 crore. The crossed cheque for 10% of it, ie Rs 5.5 crore, was handed over to Mr Ramachandran, Senior Partner of Deloitte Haskins and Sells, and Mr Satyanarayanan of Varma & Varma, chartered accountants, together. Mr Kochuouseph believes that the largehearted people of Kerala and Tamil Nadu will follow his path and that collecting Rs 55 crore may not be a problem. PASSLINE

January 31-February 29, 2012

Mr Mithun Chittilappilly, Executive Director of V-Guard, the son of Mr Kochouseph, has clarified that it was his father’s personal wealth, not from the company’s funds. This was a joint decision by all the members of the family and had all their support, he says. The unique proposal and its drawings have been sent to Kerala Chief Minister Oommen Chandy and the Minister and officials concerned.

EDUCATION:

FISAT F

ederal Institute of Science And Technology (FISAT) is now on the threshold of a momentous occasion—the celebration of its decade-long existence. Since its establishment in 2002 at Mookkannoor, the birthplace of the visionary founder of Federal Bank, the late K P Hormis, FISAT has been designed and developed to become a ‘Centre of Excellence’ in professional education. With the motto ‘Focus on Excellence’, FISAT has consistently made significant contributions to the professional education sector of the country by providing quality Engineering and Management education. In the meantime it has bagged numerous nationallevel recognitions to its credit. FISAT had been selected in 2009, 2010 and 2011 for the national award for the Best Student Branch of the Computer Society of India. Professional bodies like ISTE, IEEE and ISA have also won national awards for Best Students’ Branches in the past. After the final phase of the centralized allotment of engineering seats for the 2011-2012 academic year by the Entrance Commissioner, Government of Kerala, FISAT has emerged as the most preferred engineering college in the self-financing sector of Kerala. Academics: The decade witnessed tremendous growth of FISAT into a full-fledged academic centre with six BTech programmes, ie Electronics and Communication Engineering, Computer Science and Engineering, Electrical and Electronics Engineering, Electronics and Instrumentation Engineering, Mechanical Engineering and Civil Engineering. Other programmes being offered are MTech in Communication Engineering, Computer Science & Information Systems, Power Electronics and Power Systems and MCA. FISAT Business School under the ambit of FISAT offers PG programme in Busi-

NEW HORIZONS

10th year of consistent excellence

ness Administration (MBA). FISAT has carved a niche for itself in the education world, eloquently demonstrated by excellent academic results, record placements and outstanding achievements in sports and arts. The very first batch of BTech students graduated in 2006 with an overall pass percentage of 93 with three ranks. The success story has been repeated year after year. This year it has secured outstanding results in the university with three top ranks in BTech and first rank in MCA. Such accolades in a relatively short span of time demonstrate the passion for excellence and the relentless pursuit of quality. However FISAT does not wish to rest on its laurels. Placements: The Placement and Training Cell has an exemplary track record in placement facilitation and employer satisfaction. There is a continuous college-industry interface. Special efforts are made to groom the students to meet the standards of industry. PTC prepares students better in knowledge, skills and winning attitudes. Every student is made to go through a series of soft skill enhancement training programmes during their course totalling about 200 hours, which prepares them to face the challenges of this new era. FISAT probably has one of the best trained student group in the state and this is clearly indicated by the high acceptability of its graduates in the industry. Its students have also been successful in bagging more offers in the combined recruitment drives conducted by various companies. The cell has been successful in placing almost all the eligible students in multinational companies. The fact

that our students are placed over 75 MNCs like Microsoft, IBM, TCS, Infosys, Keane, Satyam, L&T, Wipro, CTS and IBS, Government and public sector companies like BARC, ONGC, Power Grid and Delhi Metro and commercial banks like Federal Bank and Bank of Baroda speaks volumes about the quality of its students. During the current year, 260 FISAT students have been placed in

P V Mathew, Chairman

reputed companies like Microsoft, TCS, Accenture, UST Global, Tata Elxsi, Mphasis, IBS, Syntel, Ernst & Young, Wipro etc. The visit of IT giant Microsoft for recruitment was a landmark in the annals of FISAT. Infrastructure: A team of eminently qualified faculty with rich experience and high exposure is the backbone of the college. The faculty has been the finest and picked from the best based on merit and experience. The institute has excellent infrastructure facilities like academic blocks, workshops, faculty rooms, auditorium, seminar halls, fully equipped laboratories, wellstocked computerized library with modern accessing facilities, research centres etc. Sports facilities of international standards like acrylic basketball court, volleyball court and tennis court, fitness centre, PASSLINE

language lab, internet cafe, WiFi, counselling centre, fullfledged bank branch, ATM etc are some additional amenities available on the campus. Value additions: Professional student bodies like ISTE, IEEE, ISA and CSI and technical forums like Thyra, Echo, Electra, Idea, Matrix, Forum, MCA Association and FFSC are very active in the college. The campus vibrates with top-class curricular and co-curricular activities like national and international conferences, technical fests, workshops, seminars, invited lectures, Industry-institute interactions etc that provide students with a professionally accomplished educational experience. Research centres: An educational institution is judged by the extent and level of research activities being carried out on campus. Since its inception, FISAT has gone far beyond the classrooms, laboratories and workshops. To nurture research and development, the college has so far established the following research centres: Centre for High Performance Computing (CHPC): It is an autonomous research centre under the Department of Computer Science, FISAT, and focuses on research and consultancy work in cluster computing using free and open source technologies. Through the indigenously built high performance super-computing system, Dhakshina Cluster-II, the centre provides a muchsought-after computing resource to the student community thereby paving the way for cutting-edge research. Apart from creating an environment

January 31-February 29, 2012

of continuous learning, the centre provides facilities for doing BTech, MTech and PhD projects for students in FISAT as well as other institutions. It also aims for canalizing on industry-academia linkage. FISAT is the only engineering college in Kerala to have its own super-computer. Instrumentation Research and Consultancy Centre (IRACC): Realizing the growing importance of automation in process industries, IRACC is established under the Electronics and Instrumentation Department for promoting research in process instrumentation. The centre has facilities to simulate process plants, distribute computer control systems and implement control techniques. Facilities are extended for doing projects by the students in FISAT and other institutions. Centre for Research and Innovations in Signal Processing (CRISP): Signal processing techniques have come to occupy central place of importance in engineering and technology as evidenced by the plethora of electronic devices available in the market and which employ simple to complex signal processing operations. This points to the opportunities available for research in signal processing. CRISP aims to be a host to research in signal processing with particular emphasis on digital signal processing. Its mission is to translate inhouse research into innovation in electronic devices and methods. FISAT-BSNL pact: FISAT has executed an memorandum of Association (MOU) with BSNL to share knowledge resources and work together in research and development areas of telecommunication. FISAT will soon become a Telecommunication Centre of Excellence (TCOE). BSNL will provide the entire gamut of telecom services to FISAT on To page 20

GPC : Private colleges should be allowed EDUCATION:

NEW HORIZONS

to function as centres of excellence

“For unaided institutions, it is not possible to levy the same fee that the Government is levying from students in the Government and aided colleges. Self-financing colleges are not getting any support from the Government and they are funded from their own resources. We need huge amounts for infrastructure, maintenance and other activities. We are ready to give 50% seats to the Government but the Government should consider our survival as well,” says Dr Nayar. Passline News Service

hange in government in Kerala has never made any difference in the state’s self-financing education sector, says Dr G P C Nayar, Chairman of the SCMS Group of Educational Institutions, Kochi, and national President of the Federation of Associations of Private Unaided Professional Colleges. There have been unsolved issues in the sector ever since they commenced functioning. Successive governments in the state have failed to solve the issue on a permanent basis, even while the self-financing institutions were willing to cooperate. Both the Government and the unaided institutions have been sticking to their stand on certain vital issues like fee structure, sharing of seats and timing of the admission process. “It was hard to deal with the LDF Government in its early days in its last tenure, but the tension gradually eased in the coming years, especially during its last days. The Government and the Kerala Self-financing Engineering College Managements’ Association (KSFECMA) had come to terms temporarily on various issues. Some major issues have remained unsolved,” says Dr Nayar, who has a vision of how to deal with these. For SCMS, it is all about providing quality education to aspirants that helps better placements. “We are committed to imparting excellent education to those who have been admitted to our institutions. For us and those in the unaided professional higher education segment, 50% allotment through merit is not the issue. We voluntarily gave the seats to the Government,” says Dr Nayar. “We at SCMS run the institutions in the most ethical way. Huge amounts of money by way of capitation or other means will not tempt us to deviate from our principles and tenets of morality. All admissions to our institutions are based on merit alone. We too need money but we have no love for it as we are not greedy,” says Dr Nayar. Dr Nayar, who has a commitment towards sustainable growth and development of the intellectual capital, is a man who manages things in pragmatic ways. According to him, the major issues troubling the sector, as stated earlier, are the fee structure and the timing of the admission process. The Government insists that the self-financing institutions should levy the fees that the Government-run colleges are levying. “For unaided institutions, it is not possible to levy the same fee that the Government is levying from students in the Government and aided colleges. Self-financing colleges are not getting any support from the Government and they are funded from their own re-

sources. We need huge amounts for infrastructure, maintenance and other activities. We are ready to give 50% seats to the Government but the Government should consider our survival as well,” says Dr Nayar. “It is preposterous to say that while the Government is spending more than Rs 1,40,000 for a student of engineering a year from the public exchequer, we who have no access to the public exchequer should collect only a meagre

resources and manpower, ie the resources people who can handle it. The country should churn out more technocrats and management professionals to push the economic growth rate. It is impossible for a country to gain economic momentum neglecting either of these. “If you go through the economic growth statistics of the country you will find that the pace of the growth has been rising since 1995 after the deregulation of the education sector,

Dr G P C Nayar

“It is preposterous to say that while the Government is spending more than Rs 1,40,000 for a student of engineering a year from the public exchequer, we who have no access to the public exchequer should collect only a meagre amount from students and run the college the way the Government is running its institutions.” amount from students and run the college the way the Government is running its institutions.” The proposal KSFECMA has put forth includes the raising of the fees to Rs 90,000 for the students allotted by the Government from the present Rs 60,000 and a provision for increasing them by 15% to 25% once in every two or three years. Dr Nayar has also suggested withdrawing of subsidy in Government colleges and raising the fee structure realistically. The Government also can have enough funds to provide financial help to economically weaker sides of the community by this method. “We are not asking for any increase in the fee of management quota seats.” Dr Nayar says education is vital to human resource development and empowerment in the stages of the growth of a nation. The economic growth rate of a nation consists of two major things, PASSLINE

paving the way for private parties to enter it,” says Dr Nayar. The opening up of the higher education sector to private parties has also caused higher levels of foreign currency flow into the state, helping to provide a source of livelihood for many individuals and their families. “Earlier, most of those who used to leave the state for the Middle East were labourers, drivers or skilled workers. The picture has changed after the opening up of the education sector. Today, engineers and skilled manpower are being exported to all parts of the globe thanks to change in Government policy, paving the way for foreign currency flow to the state,” Dr Nayar says explaining the change that the self-financing institutions have brought about in society. Moreover, it has helped people to change their perception of higher education. The awareness of the changed

January January31 31-February - February 29, 29, 2012 2012

circumstances among parents has made them think about their children’s education. At one time, engineering and medical education was inaccessible to, or was not in the reckoning of, ordinary people and it was left to the elite in society to pursue it. Today, the situation has changed and higher education in management, engineering and medicine is accessible to the financially weaker sections too. “People have now started thinking of value education. With the Government’s financial support for the poor in education, the living standards of lakhs of families have risen helping to push up the country’s GDP growth rate,” says Dr Nayar. It is obvious that unaided institutions have created enormous job opportunities in the country, directly and indirectly. Since higher education is all about moulding the calibre of the young, more investment is pouring into the sector. Even foreign institutions are also planning to try their luck in the country. The Government has already created the atmosphere for their arrival, though the country’s private players do not much anticipate their presence in a big way. “There will not be any impact on our system of education even if foreign institutes arrive. It will take time for them to compete with our educational players. Since foreign institutions are entitled to levy higher fees on a par with their parent institutions, most students in our country can’t afford to go to them,” says Dr Nayar. About his foreign and domestic endeavours, Dr Nayar says, “We have scheduled to start an MBA programme in the SCMS London School of Business which will be operational in June 2012 and a business school and an engineering college in Whitefield in Bangalore. Things are being processed. We have appointed a Director in the UK. Students from here can study there as well. We have always given importance to excellence and quality, and not money. Once we commence operations in London, Indian students can do an MBA programme at a very affordable cost in one year and four months.” SCMS is widely recognized as one of the best in the country for management and engineering education in the self-financing higher education segment. Over the years it has set the standard for total excellence by combining the disciplines of the West and the values of the East. For years the institution has been consistently ranked as the best in management education in Kerala. Today, the SCMS brand name stands for excellence thanks to the relentless effort made by Dr Nayar and his management team.

EDUCATION:

NEW HORIZONS trips to Thiruvananthapuram and Bangalore where he is in the process of establishing a major academic campus. “The Rolls Royce was airlifted to Mumbai and from there it was driven to Kochi. I felt very comfortable during the 40-hour journey from Mumbai to Kochi,” says Dr Nayar. For dealing with so many cars for personal and official uses one ought to have some knowledge of automobiles, at least of cars. However, Dr Nayar doesn’t have this. He has only the same amount of knowledge as the common man has. “You don’t need to have knowledge of the mechanics of cars for buying and using one or even driving them. I have been driving them for several years now. All these cars are already tested for their worth by the manufacturers,” says Dr Nayar. The computer is a high-tech piece of equipment. Does any user know the technology? Modern gadgets including vehicles are user-friendly, says Dr Nayar.

‘Rolls Royce will enhance SCMS’ prestige’ W

ill a car elevate the prestige of an institution? Or will an institution ever be known because of an expensive car in its possession? Yes, it will, believes Dr G P C Nayar, Chairman of the SCMS Group of Educational Institutions, one of the premium groups in the country. Now Dr Nayar is the second proud owner of the Rolls Royce model Ghost—Extended Wheel Base (EWB). Industrialist Ravi Pillai and Mr Krishna Kumar of Nikunjam Construction, Thiruvananthapuram, have the regular model of this world’s most expensive car in Kerala. Ironically he does not have a craze for cars, says Dr Nayar, though his group owns a fleet of them, including luxury ones. “I am not at all passionate about cars but had a desire to own a Rolls Royce ever since I read the advertisement copy written by David Ogilvy, which stated about Rolls Royce as “At 60 miles an hour the only sound that comes out of this car is the tick of the clock”. The company rewarded him with a cheque for one lakh pounds in 1944.” That is what he says in his biography, says Dr Nayar. “Imagine the 1960s, particularly in Kerala, when cars were few and a car was a symbol of prestige. I was a member of a middle-class family. I could probably afford to buy a car in those days. But I had no resource to maintain it. However, I dreamt of owning a car of my own all the time. And in 1967, when I felt I could afford it I bought a second-hand Morris Minor. A friend of mine had a Morris Minor during our college days and I learned driving on it. I wished to have a car like the one my friend had the moment I could afford to maintain it.” says Dr Nayar.

From the Morris Minor in 1967 to the Rolls Royce now he has owned a range of cars. In 1974, he shifted to an Ambassador which he bought for Rs 15,000 after selling the Morris Minor. “It would have taken several months for me to get a new Ambassador as there was heavy booking for it and the price was Rs 20,000 in 1974. Because of that the demand for a used Ambassador was also high. I managed to gain a used one at Rs 15,000,” he says. Besides the Ambassador, Dr Nayar bought a Maruti Omni in 1984. “In those days AC cars were not available. I bought my first AC car in 1987, a Maruti 800, after disposing of the Omni” he says.

the cities because of its small size. He has a Nano for his local trips. Today he prefers the Rolls Royce for long

Dr Nayar bought a 1982-model EClass Mercedes Benz in 1992 from a car broker. Later he possessed Benz varieties from time to time and replaced each one of them with advanced models until 2007 when the group bought a S350 model, a premier car of the Mercedes Group. Now his group has, besides the Rolls Royce, a Jaguar and a few non-luxury cars. The group gets several visitors from abroad on account of the tie-up with foreign universities and the existing fleet is not sufficient at times. The SCMS Group has an international focus and this tie-up and faculty and student exchange programmes with these universities considerably help our students to get a global focus of international business and economy. Cars help to keep our image. “The cars are not bought in my name—they are all in the name of the SCMS Group,” says Dr Nayar. For Dr Nayar, the Morris Minor or a similar car is the best for a drive in PASSLINE

January January31 31-February - February 29, 29, 2012 2012

“There are lots of people who can afford to buy Rolls Royce or other luxury vehicles in Kerala. But they don’t. We have a need for luxury cars as we have to make long trips quite often. Our guests also need them. I want SCMS to be known for its excellence in every respect in the country. We bought all these in the righteous and transparent way. We have a clear and transparent system. Morality and ethics are matters of great concern for us. That is why we do not resort to capitation or any other dubious means to make money,” concludes Dr Nayar.

20 Bharata Mata Institute of Manage-

EDUCATION:

NEW HORIZONS

ment (BMIM), Thrikkakara, Kochi, came to be recognized as one of the premier B-schools in Kerala very soon after it came into being. Affiliated to M G University, Kottayam, and approved by the All India Council for Technical Education (AICTE), BMIM provides the best ambience for nurturing and nourishing entrepreneurial spirit among its students.

Fr Dr Varghese Kalaparambath Director

Says Fr Dr Varghese Kalaparambath, Director, BMIM: “The main objective of our MBA programme is to mould highly professional entrepreneurial leaders.” There is a need to build more confidence among the students so that they start their own industry after passing out, he says. “We focus more on interactive learning through case studies, group discussions, seminars and other related activities. We are also planning to innovate our students’ training programme by providing them with more practical industry exposure. The idea is to permit every student to spend a day every week in an industry. This

BMIM helps mould entrepreneurial leaders will help the students build more confidence to start an industry themselves,” he says. Apart form the summer internship programme, live projects are assigned for almost every subject providing ample opportunity for the students to have industrial experience. Another speciality of BMIM’s MBA programme is that in addition to the regular curriculum, the institute imparts various certificate courses to equip the students with recent developments in the field of business administration.

“The faculty members at BMIM strive to impart and nurture outstanding performance. The emphasis is on building strong leadership, positive attitudes and ethical behaviour to enable an individual to boldly face the challenges of the future. We make sure that every student has a special bond with the teachers and the college. We are also planning to increase the number of seats,” Fr Varghese says. Being a nationally accredited institution of higher learning, the growth of Bharata Mata College (BMC), estab-

lished in 1965, was phenomenal. BMIM, the sister institute of BMC, owned and managed by the Archdiocese of Ernakulam-Angamaly, is hemmed in on all sides by a picturesque township renowned for its proximity to the industrial hub of Kerala. South Indian Bank, HSBC, HDFC, ICICI Prudential, Federal Bank, CIPLA, Geojit, IBS and the Kotak Group are some of the major companies that come for recruitment every year. Cardinal Mar George Alencherry is the patron of the college.

10th year of consistent excellence From page 17

a most-preferred client basis. Through National Knowledge Network, the services of the High Performance Computing Centre at FISAT can be used by other colleges and universities. Resources persons from BSNL will conduct technical seminars, workshops and conferences at FISAT to enhance the skill levels of students. Inplant training will be imparted to students in telecommunication areas of switching and transmission. Students can do projects and can take shortterm training courses at the training centres of BSNL across the country. Extracurricular activities: The college provides its students with numerous opportunities for development of extracurricular activities to enrich their cultural interests. There is an annual inter-class arts competition, ‘Arangu’, and the winners of these events represent the college in the university competitions. ‘Arangu 2011’ was held on September 29 and 30, 2011. Altogether 1,000 students participated in various events and winners were presented with certificates.

FISAT’s students have won laurels for their excellent performances in arts and cultural activities associated with the Youth Festival conducted by Mahatma Gandhi University by bagging the second runner-up trophy. FISAT has earned a prominent place in the sports arena also. Many national, state- and university-level tournaments were conducted on its campus to provide exposure to the students and to promote budding sportspersons. Its teams have won many prizes in university- as well as state-level championships. Community services: For every student, commitment to the nation’s development is essential. The institute has been carrying out outreach activities with students’ participation that enhances the quality of life. A massive IT literacy programme to train 10,000 young people and women in rural areas is being implemented with the support of local youth clubs. A campaign to make Mookkannoor an addictionfree panchayat is also under way. FISAT is the first institution which implemented the Tuition Fee Waiver Scheme in the State. Students with PASSLINE

high academic results and hailing from economically backward families are granted full fee concession. The selection is made purely on the basis of the Kerala Entrance Examination rank list. Presently 168 students are the beneficiaries of this scheme. Apart from this, the college offers full tuition fee waiver for meritorious students who secure ranks up to 3,000 in the entrance examination. Various student clubs like Society for Communication and Overall Personal Enhancement (SCOPE) aim to carry out community development programmes. ‘Kazhcha’ is a charity programme of SCOPE. The nature club SWAN aims at creating a new generation of youth, which can appreciate the importance of preserving nature and create eco-friendly and green solutions as engineers. The Road Safety Club INSIGHT is working to create awareness among students regarding road safety measures. A rehabilitation centre for cerebral palsy-affected persons is also coming. Management: FISAT aspires to be among the best professional colleges January 31-February 29, 2012

in the country through a series of strategically crafted moves, precisely calibrated action plans and an unwavering commitment to the pursuit of excellence. Managed by Federal Bank Officers Association Educational Society, a trade union on a ‘not-for-profit’ basis, FISAT is distinct from other institutions. It is committed to society and focused on excellence. The leadership is truly visionary and inspirational. It was able to fulfil the overwhelming trust and faith that has been reposed on them by thousands of students and their parents. The achievements of FISAT and the beauty of the campus are the manifestations of the dreams of educational society. These could not have been possible but for the superb guidance and support extended by the dedicated team led by Mr P V Mathew, Chairman, Mr Anthony Johnson, Vice-Chairman and Ms P Anitha, Treasurer. Dr K S M Panicker is the current Principal. Spread over 40 acres of lush green campus, this ISO 9001-2008-certified institution, approved by AICTE and affiliated to Mahatma Gandhi University, provides a truly conducive atmosphere where the students can excel.

EDUCATION:

There are two types of schools in the UK. One is the ‘grammar school’, where students who excel in academics are admitted. The rest of students are admitted to ‘comprehensive schools’. Students in the age group of 11-18 years who excel in academics enroll in the grammar schools. (The grammar schools have nothing in comparison with our perception of studying the nuances of languages). The students have to pass a written examination for admission to grammar schools. The less fortunate students enrol in the comprehensive schools. By Suresh Kumar

he craze of students and parents in India for courses like engineering and medicine has astonished a group of students and teachers from the UK who visited Kochi recently. They were on a tour as part of a cultural exchange programme, stayed as guests of the teachers and students of Bhavan’s Varuna Vidyalaya, Thrikkakara, Kochi, and had a detailed interaction with the host members on the nuances of education, career and teaching in both countries. “Only the cream 5% of the sixthform (our plus two) students in the UK get admission to engineering and medicine. There are a variety of courses like mastering in teaching, fashion technology, journalism, physiology, social work, law, psychology, economics, accountancy and pharmacy and for careers in teaching in schools and universities, insurance advisers and social activists both in the Government and private sectors, theatre activists, journalists, accountants, marketing executives in multinational companies etc “The pay and perks and the social status of these professions are no less than those in the engineering or medicine fields in the UK,”, said Duncan Pallant, a teacher at Gravesend Grammar School, Kent, a member of the team. There are two types of schools in the UK. One is the ‘grammar school’, where students who excel in academics are admitted. The rest of students are admitted to ‘comprehensive schools’. There are a myriad of grammar schools where students in the age group of 11-18 years who excel in academics enrol. (The grammar schools have nothing in common with our per-

NEW HORIZONS

Nuances of education and career in India and UK employment. The UK team was aghast when they saw students hankering for engineering/medicine courses attending coaching classes during Sundays, holidays and on working days after school time. In the UK students give preference to their sixth form examinations. The team was also surprised to note that students sacrifice a year after plus two to focus on entrance coaching, rather than pursuing degree courses.

ception of studying the nuances of languages). The students have to pass a written examination for admission to these schools. The less fortunate students enrol in the comprehensive schools. Still some students fail the sixth form exams at grammar schools. “They will pursue careers in fashion, sales, hairdressing etc. A few who excel in the sixth form at comprehensive schools pursue their career in engineering and medicine. However there is no mad rush for these courses in the UK as is the case in India,” says Duncan Pallant. The social status of a hairdresser in the UK is no less than that of a doctor. Education up to the sixth form is free in the UK. The Government gives money to the trust in each school to run the institution. On the other hand every UK citizen is bound to pay heavy tax to the state exchequer, irrespective of their income, which in turn is used by the Government for welfare activities. According to the UK team, the Indian curriculum is examination-oriented. So the students have no time to spend on other activities. In the UK, there are no compulsions on students by the parents and teachers to pursue

a particular course and profession. It is for the students to decide their career. The tight schedule of private tuitions, coaching classes and special classes cannot be seen in the UK. The high career prospects of all courses and the low competition among students have made many students there lazy. The unemployment rate is low. The Government’s giving doles to the unemployed has also made them less active. Although physical punishment is not prevalent, naughty children are detained in school for an hour or more, Duncan said. Weak students are given special attention through special classes. Such classes have only four or five students. The strength of each class is a maximum of 30. About the fear of Indian students for mathematics, he said, “Unlike arts subjects, mathematics is practical. You have to do the exercises and practise continuously. Even if the final answer to a problem is an error, you can score some marks if the steps and methods are correct.” Unlike in India where teachers do more lecturing, in the UK it is left to the students to have more say in the class. Also, unlike in India, the UK has no kind of reservation in education and

Job opportunities for arts and science graduates in India have increased. Integrated postgraduate courses like MSc (Microbiology) have many takers now. Before the recession, seats had been lying vacant in arts and science subjects in Kerala’s colleges. Now those who score higher marks only get admitted to BA (English) and BA (Economics) in rated institutions like Maharaja’s College, Kochi. PASSLINE

January 31 - February 29, 2012

Back home in India, since the rush for engineering/medicine courses was huge, arts colleges used to be left with vacant seats till some years ago. Now the situation is changing. “The demand for arts and science subjects in rated colleges has increased because of several factors. The global recession in 2008 had hit the computer-IT field badly. The quantum of perks received by professionals has also declined. The stressful working conditions in the software field also paved the way for students turning to arts and science subjects”, said Mary Metilda, Principal, KKTM Government College, Kodungalloor. Job opportunities for arts and science graduates have also increased. Integrated postgraduate courses like MSc (Microbiology) have many takers now. Before the recession, seats had been lying vacant in arts and science subjects in Kerala’s colleges. Now those who score higher marks only get admitted to BA (English) and BA (Economics) in rated institutions like Maharaja’s College, Kochi, said Mary Metilda, who is a former Vice-Principal of that college. Unless you are recruited by reputed MNCs through campus selection, the engineering graduates may suffer. Campus interviews are conducted only at rated engineering-management colleges. Many engineering graduates are now recruited for clerical and office jobs in various firms including banks. Apart from parents, peer pressure is another problem faced by aspiring Engineering students in the country. The 16-member UK team consisting of 13 students and three teachers interacted with the host teachers and students of Bhavan’s Varuna Vidyalaya. History teacher Geoff Wybar and geography teacher Sheila Garner from Gravesend Grammar School were also in the team. More details of Gravesend Grammar School are available at www.gravesendgrammar.kent.sch.uk and www.gravesendgrammar.eu (The author is a freelance writer)

22 EDUCATION: In its motto ‘Challenge Meets Success’ is enshrined

NEW HORIZONS

the CMS Group of Institutions’ radical idealism and inventiveness of a few Malayalees of Coimbatore and their continuous struggle to overcome the challenges they had to face. The CMS Educational and Charitable Trust, established in 1988, was the progeny of the Coimbatore Malayali Samajam. Initially, the trust had nothing substantial to build on except a moderate capital and plenty of self-confidence. But it had a clear vision which saw education not only as a vehicle for progressing in a multilingual and multicultural situation but also as a crucial instrument for survival in the knowledge society of the future. Hence the trust started CMS College of Science & Commerce. The naming of the college as ‘College of Science & Commerce’, instead of the usual practice of naming a college ‘College of Arts and Science’, was a significant pointer that the trust was willing to traverse roads less travelled by. Moreover, it clearly foresaw that if our country has to progress into the 21st century, we need science and commerce more than anything else. The achievements of CMS College of Science & Commerce for the past 23 years have been remarkable. From an institution that offered just three undergraduate (UG) courses, the college has grown into one that offers 17 UG and 14 postgraduate (PG) courses. In 1988, it had fewer than 50 students in make-shift classrooms at Ganapathy, Coimbatore. By 2007 it had more than 3,500 students on an expansive 36-acre campus with state-of-the-art infrastructure at Chinna vedampatti, a suburb. Further, the college has become an autonomous institution, accredited at the ‘A’ level by NAAC and with ISO 9001: 2000 certification. By 2007 when the students’ strength equalled that of a university, diversification became necessary. It was here that the sagacity of the Chairman of the trust, Mr M P Gopalakrishnan, and the Secretary, Mr C K V Nambiar, came into play. Both had the foresight to consider higher education not as a luxury but as something essential for national, social and economic development.

M P

Remarkable achievements for CMS

city. Thereafter his career graph took an upward tra- of the city. During his lengthy tenure as the Secrejectory making him not only a successful chartered tary of Coimbatore Malayali Samajam, he worked accountant but also a corporate consultant and di- ceaselessly for the establishment of CMS College rector of several companies. He is keenly interested of Science and Commerce. in social and cultural activities The first step of the two stalwarts was and is associated with several to diversify the CMS Educational & Chariorganizations. But his crowning table Trust and to make the CMS Institute glory came when the Governor of Management Studies a stand-alone inof Tamil Nadu nominated him as stitution. The success of this venture a member to the Syndicate of prompted them to start one more B-school, Bharathiar University in recogniCMS Academy of Management and Techtion of his service rendered to the nology, in 2009. In the same year the trust cause of education. started an engineering college. CMS ColGOPALAKRISHNAN C K V NAMBIAR

Born in Coimbatore, Mr Gopala krishnan at 23 became the youngest chartered accountant of the

Mr Velayudhan Nambiar, popularly known as C K V Nambiar, though born at Thalassery, chose Coimbatore as his ‘Karma Bhoomi’. He is also intimately connected with many social organizations

lege of Engineering and Technology has shown tremendous progress in a short time and has become a popular destination for those who aspire for technical education.

n this world of race, De Paul Institute of Science & Technology’s (DIST) boundless academic cluster is prinking with its architectonic beauty as a complement to the magnificence of Angamaly, a strategic, commercial and industrially developing city in Kerala, a call away from Cochin International Airport. DIST’s goal is the Vincentian mission, ‘Liberation through Education’ and the selfless Vincentian fathers are endeavouring to achieve it. Now DIST is leaping to its committed aim of creating advanced studies, research and social welfare programmes. DIST is a professional college affiliated to M G University, Kottayam, is approved by the All India Council for Technical Education (AICTE) and is ISO 2008-certified. Run by the De Paul Education Trust owned by the Marymatha Province of the Vincentian Congregation, DIST offers four prominent postgraduate degree courses—MBA, MCA,

DIST: ideal centre for professional education MHRM and MSW— and two undergraduate courses— BCom and BCA. The salient features of DIST are: serene and peaceful cam-

pus; well-equipped most modern lab with the latest computers and other paraphernalia; spacious library with latest reference books, PASSLINE

journals, periodicals and membership of All India Library Network; add-on management software courses; 24-four hour

January 31-February 29, 2012

high bandwidth Internet facility; Wi-Fi-enabled campus; qualified and experienced faculty; best-known visiting faculty members; international certification programmes in association with DePaul University, Chicago, US; vibrant platform for extracurricular activity; career guidance and placement assistance; hostel facility on the campus in a peaceful environment; special coaching for effective communication, language skill and personality development; student counselling programme and DePaul Centre for Research and Development (DCRD). DIST is a real piece of greenery of the intelligentsia and is the ultimate forum for professional education. As they say, “Winners are not quitters and quitters are never winners.” Fr Dr Sebastain Mappilaparambil, Principal DIST. Fr Daison Vettiyadan is the Vice Principal & Director Finance for DIST.

EDUCATION:

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ducation primarily moulds human character, leading to quantum changes in a human being’s quality of thinking. This changed entity is better placed to successfully relate to cohabitants of the medium that he is a part of. Thus, education is a task that needs to be handled with care, as it is a process that defines an entire gamut of generations to come and is a herald to the ‘not so distant future’.

Epitome of success A few years ago, a well-educated, highly determined and self-motivated individual gave serious thought to this task and decided to put his thoughts into action. That was the beginning of Garden City College. Dr Joseph V G, Chairman, Garden City Group of Institutions, insisted on shaping GCC into an institution that instils in every young mind, who has spent a few years at GCC, all ingredients that make him/her a success in every facet of life. The institution has, in the past decade, brought about innovations that strengthen and build an ambience for learning. GCC has always striven to stand apart, and be counted among the trend-setters in the field of education in the country. At GCC, no stone is left unturned in ensuring that quality education is imparted with passion. As the young ones take their stride along this journey of life, we can only hold their hands and be a facilitator in their journey to success. As they march along the present, we apprise them of the possibilities that the future holds. We inspire them to aim higher and imbibe in them the skill to capture their dreams. About Chairman: Dr Joseph V G is the Founder of Garden City Group of Institutions, which has carved a niche for itself by providing quality education in India. Today students from 70 countries and from all the States and Union Territories of India have made Garden City College their home for knowledge. The reason is that this visionary genius implemented highly efficient academic practices at a very young age. The principles of Garden City College laid down by him, with The 'Emphasis On Life', have made it one of the most-sought-after institutions for higher learning. In the last two and a half decades Dr Joseph V G has crossed several milestones in the arena of education and has stood witness to the immense growth of Garden City Group of Institutions, becoming its major inspiration. A thought to establish an institution that would serve mankind for hundreds of years crossed his mind during 1985 which sowed the seed for the beginning of Garden City Education Trust. The Trust was established in 1992 with the intention of establishing institutions of global standards. Garden City College was the first institution that had shaped up from his vision to serve the needy with quality education. His intention was to eliminate unemployment to the maximum

GCC-the trendsetter extent and thus introduce job-oriented courses. His emphasis was always on quality education and hence in 1995, Garden City College witnessed the introduction of highly acclaimed courses in Science and Management Studies with new combinations that are apt for the industry and a new syllabus has seen light after a long gap.

Facilities @ GCC GCC Library: The library at GCC offers you access to printed items across all subjects and several periodicals, an extensive and rapidly expanding collection of electronic resources including thousands of electronic journals and materials in audio-visual formats.

from around the world. GCC’s basket of nine hostels addresses the insecurity by completely understanding the fears of the students and parents. GCC has taken sincere efforts to bring the best of facilities to their hostellers with the provision for storing valuables in their individual lockers. Besides, there is medical help and counsellors on call, saloons, internet stations, convenience stores, pharmacy kiosks, multi-activity playing grounds and a fleet of buses connecting the city. Security on the hostel campus is tight. ATMs are present for quick access to cash. The hostels here cater to the needs of students, both in terms of board and lodging. Laundry facilities are available. Hot showers are a given, with Bangalore having cool temperatures for the greater part of the year.

GCC HospiThe library, a tal: The GCC modern state-of-theHospital, a unit art building on of Garden City campus, College of comprises Physiotherapy, collections has been funcin all subDr Joseph V G tioning for a dejects. There Chairman, cade. The hosare large Garden City Group of Institutions pital not only collections caters to the 4,500 students of GCC of print and electronic reference mateGroup of Institutions but also serves rial. The library aims at tailoring serthe socio-economically weaker secvices to the needs of the users. The tions of people hailing from an area of library is open late into the day to en5-km radius around the institution. The able students to have access whenhospital is not confined to local serever they require. vices alone, it has also extended serHostel: A home away from home, vices and help to people affected by that’s the GCC hostel for students who natural calamities such as the tsunami have come from across India and even in Tamil Nadu and Kerala, rain-flooded PASSLINE

January 31-February 29, 2012

areas in villages of Tamil Nadu and earthquake-affected populations in Kashmir. Transportation: A fleet of well-kept buses ply to and fro to the campus and to all GCC hostels from different parts of Bangalore. These buses are also available for all academic-related work. Placement Cell: At the end of the day, what counts is the student’s potential to be placed in the finest organizations as a first step towards a longer career development. The placement cell conducts support programmes that enhance their chances for a smooth transition from a Student to an Executive. The Placement Cell holds workshops for the final-year students to zero in on their skills and aptitudes, strengths and weaknesses, fine-tune presentation techniques and network with the GCC alumni and the leaders in industry to provide them with the opportunity to find a suitable placement. The Placement Cell has been successful in bringing the best of organizations to the campus head hunting and is a matter of pride that GCC alumni can be found working for the best corporates in the country and outside.

The Gardenia Fest talent in full bloom The annual fest of Garden City College, Gardenia, always lives up to its promise as the biggest fest on the college calendar of Bangalore. Being a nationwide buzz, colleges across India take part in the events with students coming from far-flung places like Delhi, Mumbai, Chennai and Coimbatore giving the fest a national outlook.

EDUCATION:

NEW HORIZONS dustrial Drives and Control. RSET has an ICT-enabled teaching learning process, awards for talented students, remedial programme for weak students, national-level recognition for students’ projects, RSET special electives, skill development programmes, distinguished lecture series by eminent scientists and industrialists, international/national-level conferences, continuing education and also the Rajagiri Research & Consultancy Centre(RRCC).

RSET: excellence at play

ajagiri School of Engineering & Technology (RSET) is one of the premier educational institutions in Kerala. Established in 2001, the institute is an endeavour of the Sacred Heart Province of the Carmelites of Mary Immaculate (CMI), which has been for years a pioneer in the field of education. At present, the CMI mission of education comprises 448 institutions—including over 200 schools, 14 university-affiliated colleges, one engineering college, 12 technical institutes, one university, one medical college, three BEd colleges, five special schools, 18 non-formal educational institutions and 17 cultural centres spread all over India and beyond.

RSET shares the campus with Rajagiri School of Management, one of the top business schools in India. The institute is affiliated to Mahatma Gandhi University, Kottayam, and approved by the All India Council for Technical Education (AICTE) and is accredited by NAAC, with top rank by Data Quest, RECCANIT, Mint etc. RSET has a distinguished array of faculty members drawn from nationally and internationally reputed technical institutions, like IITs and RETs, who teach, guide and lead the students to an unparalleled level of excellence. Rev Fr Jose Alex, founder and Director of RSET, himself is a veteran educationist and has been instrumental in taking the Rajagiri flag beyond the country’s borders and facilitated international tie-ups.

Located on a sprawling 90-acre campus Rev Fr Jose Alex on the banks of the Chitrappuzha, Kakkanad, The institute offers four-year BTech RSET is in close proximity to a large number of industries programmes in several subjects. There are postgraduate in the large and small-scale sectors of the industrial belt programmes (MTech) of Kerala. Kochi Refineries Ltd, VSNL, FACT, Cochin Spein VLSI Design & Embedded Systems, Computer Scicial Economic Zone (CSEZ) and Kinfra Export Promotion ence & Information Systems, Signal Processing and InIndustrial Park are some of the immediate neighbours.

Its industry interaction includes training programmes for industry, concurrent industrial exposure for students and faculty, industrial training for students, MOUs with industries, incubation centre, entrepreneurship development cell, FDP with TCS, campus connect with Infosys, Mission 10x with Wipro, college connect with Mphasis and internship with companies like Arbitron etc. The infrastructure includes wellequipped labs, well-stocked library with e-journals, digital library and institutional repository, multimedia hall with video-conferencing facilities, Wi-Fi-enabled campus, fitness centre, hostels, cafeteria, bank, ATM, post office, student facility centre, stadium, tennis court, basketball court etc. It has excellent faculty student ratio, very high pass percentage among engineering colleges of the state, 23 University ranks in five batches, Strong alumni & PTA, Continuous faculty development programmes, Collaboration with leading overseas universities and international faculty and student exchange program and Community & Social Service.

Padmashree stands for academic quality The main aim of the Padmashree Charitable Trust, formed in 1994, was to provide quality education. Being the first one to start a physiotherapy institute in Bangalore, the group now has several colleges under its umbrella.

National Law School of India University and Ambedkar Institute of T e c h n o l o g y . Thecourses are affiliated to Rajiv Gandhi Institute of Health Sciences, Bangalore, and Bangalore University.

The Padmashree Group offers a wide range of courses from health sciences to life sciences including Physiotherapy, Nursing, Medical Laboratory T echnology, Biotechnolog Apart from the state-of-the-art educay , Microbiology, Genetics, Biochemistional complex the institutions have tie-ups try, Plant Tissue Culture and Computer with reputed hospitals to impart clinical Applications. Today, the group has made training to paramedical students and close tremendous progress under the able links with biotech companies/research inleadership of its Managing Trustee, Dr stitutes for providing training to the biotech Dr Ashwanth Narayan C N Ashwanth Narayan C N. Situated at students. There is also a special course to Nagarbhavi in Bangalore, the institute has an overall teach the student English and train those students academic atmosphere as it is in close proximity to who plan to take their IELTS/TOFEL and other board Bangalore University campus at Jnanabharathi, the exams. PASSLINE

January 31-February 29, 2012

The group also provides postgraduate courses. The library of the institute has the unique distinction of having over 10,000 volumes comprising various medical and general books of foreign and Indian authors, reference books, journals etc. It is maintained in a serene atmosphere to disseminate knowledge to students. Padmashree also offers merit scholarships to all students who excel in university examinations and secure distinctions, and organizes several conferences, seminars, workshops and national conferences. 0151

PLANNING

12 Plan th

By Job K T

he Kerala Government came out with the draft outlines of the approach paper on the 12th Five-year Plan in October last. It was placed in the public domain for suggestions from the people. This was followed by public consultations with experts, academics, NGOs, media representatives, economists, peopleâ&#x20AC;&#x2122;s representatives etc for further improvements. It is a good idea placing the paper at a wider forum for public opinion and support. The Government has estimated an outlay of Rs 1,05,000 crore for the Plan (2012-2017) period against Rs 40,442 crore during the 11th Plan. An investment of Rs 3,00,000 crore is also expected from nongovernmental institutions. However, the approach paper is silent on ways of attracting such a level of investment. To make the Plan much more meaningful and effective, a pragmatic approach is needed. Some suggestions put forward are:

Pragmatic approach needed The Government has estimated an outlay of Rs 1,05,000 crore for the Plan (2012-2017) period against Rs 40,442 crore during the 11th Plan. An investment of Rs 3,00,000 crore is also expected from nongovernmental institutions. However, the approach paper is silent on ways of attracting such a level of investment. nant and that unemployment is rising, attaining the projected growth rate seems to be slightly ambitious. 3. We have had several five-year Plans in the State and each Plan document had spelt out targets that were to be achieved by the end of the period. In many cases, the achievements were far below the targets. Hence

it is imperative to frame an institutional mechanism to monitor and evaluate the implementation of the schemes or programmes on a continuous basis so that correction can be made then and there. 4. As the economic environment is so dynamic, it is

a welcome idea to review and revise the Plan targets periodically incorporating the muchneeded data obtained from feedback on monitoring and evaluation. It is also pertinent to have a continuous dialogue/ consultation with industry, academia and policy-makers to understand the requirements of stakeholders. The approach paper may put a begin-

1. The approach paper should align with various statements declared/to be declared by the state Government. It is pertinent to mention that the Government has come out with a Vision 2030 document. The Industrial and Commercial Policy is being finalized. Similarly it is expected to have an information technology policy soon. The approach paper should find a place for these aspects.

ning to have a permanent platform for consultation processes. 5. Women constitute more than 50% of the stateâ&#x20AC;&#x2122;s population and they are highly educated and exposed to worldly affairs and, knowledgeable. About 25% of the micro, small and medium enterprises (MSMEs) in the state are owned by them. Their entrepreneurial potential can be exploited further provided suitable schemes/programmes are declared for them. The approach paper may address the issue of women entrepreneurship. 6. Getting clearances/ approvals/licences is still a hindrance to starting an enterprise in Kerala. This is a major bottleneck for ventures. There have been repeated promises by the Government on simplification of procedures and selfcertifications to set up industries. However, the effectiveness of the existing system has to be evaluated and further modifications are to be formulated. The approach paper may mention the steps to be taken for the effective implementation of simplification of procedures and self-certifications. 7. There are about 60 state public enterprises in the manufacturing/production sector. Their production and process technologies are obsolete, rendering the productsâ&#x20AC;&#x2122; quality poor and productivity low resulting in high production costs. There is need to upgrade the technology of such enterprises in a phased manner to make it competitive. This has to be addressed. The development agenda of the 12th Plan has been placed before the stakeholders for comments. The approach paper should be put to constant and vigorous scrutiny to achieve the desired targets. It should initiate an institutional mechanism for periodic monitoring and evaluation and a forum for consultation with industry, academia and policy makers to make the Paper much more meaningful and effective.

2. The Government has projected an average growth rate in gross state domestic product (GSDP) for the Plan of 14.5%. The means of achieving this rate requires further explanation. However, according to the Economic Review of the State Planning Board, the real achievement of GDSP growth rate during the 11th Plan was only 11%. Considering that agriculture and industry are more or less stag-

(Prof Job K T is a senior faculty member at the Centre for Management Development, Thiruvananthapuram, and can be accessed at jobkt012@gmail.com)

The Government has projected an average growth rate in gross state domestic product (GSDP) for the Plan of 14.5%. The means of achieving this rate requires further explanation. However, according to the Economic Review of the State Planning Board, the PASSLINE

real achievement of GDSP growth rate during the 11th Plan was only 11%. Considering that agriculture and industry are more or less stagnant and that unemployment is rising, attaining the projected growth rate seems to be slightly ambitious. January 31-February 29, 2012

INFRASTRUCTURE

26 Road flyovers have an added advantage that they help create additional road space overhead, minimizing the acquisition of built-up lands on either side, which is costly and time-consuming, besides causing great hardship to those affected. In the matter of occupation of ground space, two-lane flyovers are the most economical since they are carried on a series of columns along the central divider or median, except for short lengths at either end where the ramps are located.

Impact of flyovers on road development A note of caution By M N Prasad

s most of us are aware, road flyovers are an essential feature of urban road development initiatives the world over. These are also resorted to extensively on the highways for ‘grade separation’, ie avoidance of crossings at the same level. In advanced countries multi-level flyovers are also resorted to, allowing uninterrupted criss-cross movements of through traffic in different directions. In India too road flyovers have been built in large numbers over the past four decades, both on major highways and in the cities, with the metropolitan cities of Delhi, Mumbai and Chennai leading the way. Even in Thiruvananthapuram a belated start has recently been made with the commissioning of an underpass at Palayam and a flyover at Bakery Junction, with all the attendant benefits. Road flyovers have an added advantage that they help create additional road space overhead, minimizing the acquisition of built-up lands on either side, which is costly and time-consuming, besides causing great hardship to those affected. In the matter of occupation of ground space, two-lane flyovers are the most economical since they are carried on a series of columns along the central divider or median, except for short lengths at either end where the ramps are located.

Unfortunately, road development in Kerala has been woefully slow because of a lackadaisical attitude of the planners and decision-makers and ineptness of the executing agencies. As a result, the road networks, especially the major highways and urban road systems, have not been able to cope with the fast-growing vehicular traffic, leading to slowing down of movements and creation of traffic bottlenecks. The most important among the pending works are the four-laning of the coastal stretches of NH-47 and NH-17 and the completion of bypasses around towns en route. Road development works in cities have been dragging on at a snail’s pace.

From what has been explained above, it may be appreciated that development of road infrastructure, whether in urban areas or on highways, is primarily dependent on use of the airspace above. It would be disastrous to allow the same airspace to be occupied by any other transport system, leaving the road below to choke and face damnation as the traffic builds up. Unfortunately, road development in Kerala has been woefully slow because of a lackadaisical attitude of the planners and decisionmakers and ineptness of the executing agencies. As a result, the road networks, especially the major highways and urban road systems, have not been able to cope with the fastgrowing vehicular traffic, leading to slowing down of movements and creation of traffic bottlenecks. The most important among the PASSLINE

January 31-February 29, 2012

pending works are the four-laning of the coastal stretches of NH-47 and NH-17 and the completion of bypasses around towns en route. Road development works in cities have been dragging on at a snail’s pace. Strangely enough, everyone seems to be reconciled to the fact that road development is hard to achieve in this State, which perhaps explains why even the successive governments have lately shown more interest in developing alternative modes of transport like the Kochi Metro linking the city with Aluva in the north and Thrippunithura in the south (for which the Centre’s clearance has already been obtained), a new High-Speed Rail Corridor between Kasargod and Thiruvananthapuram (for which a study has been got done by the Delhi Metro Rail Corporation) and a Monorail system between Attingal and Balaramapuram along the original National Highway alignment passing through the heart of Thiruvananthapuram city (for which a study by NATPAC has recently been ordered by the Government, attracting considerable media coverage). What is even more surprising is the fact that both Kochi Metro and the proposed Monorail system are to be carried on columns erected along the medians of existing National Highways, including the main arterial roads of Kochi and Thiruvananthapuram cities, respectively. As for the proposed High-Speed Rail Corridor, it is not known whether and to what extent it will impinge on the existing road system of the State. Regardless of whether any of the aforesaid rail-borne transport systems comes into being, it will be no substitute for development of the highways, or the urban road network, since the vehicle population will continue to grow and create more and more of traffic bottlenecks, slowing down movements and affecting the economy. Hence it is imperative that road development works are taken up without further delay and got completed on a war footing. Common sense dictates that in the matter of utilization of the airspace above existing roads, the future needs of road development should receive the topmost priority and this should be taken into account while planning any other transport system, whether Metro or Monorail, or a conventional railway, which uses the same airspace. It must be borne in mind that a large number of flyovers would need to be built on our highways, as well as on the arterial roads in cities,

27 I

t will be prudent to plan for a new six-lane super-highway running north-south through the hinterland, so as to cater to the anticipated future growth of inter-state and other fast traffic, both passenger and goods. This could be on the same lines as had already been mooted 10 years ago. For taking up the long-overdue four-laning of NH-47, along with that of NH-17, NHAI announced the following preconditions:

The work shall be done on BOT terms, entailing toll liability for the users.

A minimum ROW (land width) of 45m shall be made available throughout.

Although the state government ultimately acceded to these stipulations, public resentment against it still persists because of the grave hardships the people would bne put to on account of the toll liability and large-scale acquisition of built-up property. NHAI’s stand is that:

Execution by BOT is the national policy and

The utmost consideration has already been shown to Kerala in reducing the ROW to 45m,

series of nodal centres serving the areas on either side of the highway. Urbanization of these nodes is a continuing process. Suggestion: At all such urbanized locations provision of two-lane flyovers above the existing road would be the proper course, being far cheaper and speedier than acquisition of extra land width. (It must be remembered that the standard norm of 60m and even the reduced ROW of 45m were really applicable only to open country and not to urbanized areas).

one having any special problem, or a case history that calls for special care or dispensation. National Highway development in coastal Kerala is one such case. Outlook and recommendations for the future: It is unlikely that NH 47, even after four-laning, will suffice to meet the growing needs of both regional and interstate traffic, because:

The coastal belt, totalling over 550 km, is home to nearly half the state’s population and half of the vehicle population with a wide mix of vehicles ranging from two-wheelers to tanker and container lorries/trailers, and with numerous nodal points en route, the speeds attainable will continue to be much lower than on other national highways.

Density of the continued traffic, both regional and interstate, has already reached the optimal capacity for a four-lane highway on certain stretches. Hence four-laning will not suffice for the future traffic growth, which will be very substantial.

Note: If the suggestion is accepted, a question will arise how the extra cost of flyovers at locations not covered in the DPR could be met. Suggestion: It would be rational to share it between the NHAI and the state government in the same proportion as the cost saved by them on land acquisition and resettlement, respectively. (b) Both NH47 and NH17 had been serving as arterial roads of the coastal region, with free access for people residing on either side, long before they were designated NHs.

It will, therefore, be prudent to plan for a new

Highway development in coastal Kerala

as against the general norm of 6Om for a fourlane highway. For a fair solution, the following suggestions were offered:

Wherever the available ROW is only 30m because of urbanization, two-lane flyovers would help avoid costly acquisition of built-up property; Toll liability may be limited to those who use the flyovers and the bypasses around towns.

But there was no favourable response to it. The state government appeared firmly determined to honour the commitment already made to NHAI to ensure 45m ROW all through. Now they have all set to start the acquisition proceedings. Why a re-look is called for: It would be in the public interest if the decision-makers do some rethinking on the subject even at this late stage and agree to a course correction, aimed at cost reduction, speedier execution and lessening of the hardships of those affected. The main points to be considered and suggestions for solution: (a) Coastal Kerala is an urban continuum, characterized by “ribbon development”, with a to provide grade separation at junctions and also to create additional road space overhead to minimize acquisition of roadside lands. This is in sharp contrast with cities like Delhi and Chennai where the provision of flyovers had mostly been completed

The southern part of the new super-highway between Angamaly and Thiruvananthapuram, which will serve as a combined bypass for both NH 47 and M C Road, may be planned for completion by 2020. Once the new highway is commissioned, NH 47 with four lanes should suffice to meet the needs of the coastal region on a long-term basis.

six-lane super-highway running north-south through the hinterland, so as to cater to the anticipated future growth of inter-state and other fast traffic, both passenger and goods. This could be on the same lines as had already been mooted 10 years ago.

Improvements to these roads in the later years by realignment etc have been hurtful to the people in various ways.

The southern part of the new super-highway between Angamaly and Thiruvananthapuram, which will serve as a combined bypass for both NH 47 and M C Road, may be planned for completion by 2020.

Hence any further marginalization by restricting access, or by levy of toll, will be strongly resented. Suggestion: There is justification for some special concession to local users, by way of either:

The whole super-highway project may be done on BOT terms, with commensurate toll liability on the users. Besides inter-state traffic, regional fast-moving traffic, passenger and goods, can also be served, subject to levy of toll.

Once the new highway is commissioned, NH 47 with four lanes should suffice to meet the needs of the coastal region on a long-term basis.

Reduced toll charges, or

By limiting the levy of toll to the users of flyovers and bypasses.

Footnote: The rationale of the aforesaid proposals may be got verified through a proper techno-economic study so that further action may follow for project implementation.

To cite an analogy, a good doctor would know how to distinguish between normal patients and

(The writer is former Chairman of the Railway Board)

before the Metro construction was taken up. The writer, a retired public servant and civil engineer, firmly believes that the state’s bureaucracy and the technical departments, especially at the senior levels, should deem it part of their duty to think out PASSLINE

January 31-February 29, 2012

and initiate whatever is good and necessary for the state and the people, and to offer the right advice at the right time to the powers-that-be on all matters concerning them; not merely to implement whatever direction comes from above. Development of the

INDUSTRY

By G Rama Mohanan Nair

ndia had shown good resilience against the 2008 economic crisis thanks to our policies. The country felt that it was high time it took adequate precautions to circumvent such situations and was working on a draft National Manufacturing Policy (NMP). The draft had been in circulation for quite some time and finally the Cabinet approved the policy on October 25, 2011. This is the first of its kind in the history of our country. The share of the manufacturing sector in the gross domestic product (GDP) has been remaining stagnant at 16% since 1980. The aim of this policy is to increase this share to 25% over a period ending 2022. The Indian manufacturing industry was reeling under various constraints like inadequacy of infrastructure, complex regulatory environment, shortage of skilled labour and sustained monetary tightening, resulting in increased cost of finance. China has already got the label as the manufacturing hub of the globe. Taking lessons from our neighbour, India too is determined to strengthen the country’s manufacturing muscles. “We don’t want to sit behind the door any longer. We have a dream … to make India the workshop of the world,” said Mr Anand Sharma, Industry and Commerce Minister. The objectives of NMP are: to increase manufacturing sector growth to contribute 25% of the nation’s GDP from the present 16% over the next decade; increase the rate of job creation in manufacturing to create 100 million additional jobs by 2022; create appropriate skill sets among the rural migrant and urban poor to make growth inclusive; increase domestic value addition and technological ‘depth’ in manufacturing; enhance global competitiveness of Indian manufacturing through appropriate policy support and ensure sustainability of growth, particularly with regard to the environment, including energy efficiency, optimal utilization of natural resources and restoration of damaged/degraded ecosystems. The main strategy is strong infrastructure support combined with relaxation of rules and regulations. Mr Sharma’s new plan revolves round creating hubs and zones to focus Government support on manufacturing industries. The main thrust is the creation of large industrial areas called national investment and manufacturing zones (NIMZs) having an extent of 5,000 hectares and above. NIMZs will encompass all support systems like electricity, water, roads, shopping malls, service centres, schools, hospitals and residences. They will be self-contained townships with green environments.

The National Manufacturing Policy (NMP) is the first of its kind in the history of our country. The share of the manufacturing sector in the gross domestic product (GDP) has been remaining stagnant at 16% since 1980. The aim of this policy is to increase this share to 25% over a period ending 2022. The Indian manufacturing industry is reeling under various constraints like inadequacy of infrastructure, complex regulatory environment, shortage of skilled labour and sustained monetary tightening, resulting in increased cost of finance. China has already got the label as the manufacturing hub of the globe. Taking lessons from our neighbour, India too is determined to strengthen the country’s manufacturing muscles.

NMP: bid to make India 'workshop of the world' At present an entrepreneur has to procure two to three dozen clearances to start an industry. In the case of NIMZs, a blanket clearance is enough for the entire zone in most cases. There will be a special-purpose vehicle (SPV) under a CEO to grant such clearances and time limits on granting them. If a clearance is not granted within this time frame it will be deemed as if the clearance is granted. The advantages of clusterization and aggregation will be there for all the units in the zone. It enhances supply chain responsiveness, provides easier access to market, talents etc and substantially lowers logistic costs. Every job created in manufacturing has a multiplier effect of creating two to three additional jobs in related activities. Therefore a thrust to manufacturing is integral to the Government’s inclusive growth agenda. The difference between SEZs and NIMZs is that the former are exclusively for export-oriented industries. SEZs are ‘deemed foreign territories’. NIMZ units will not be exempted from paying income tax. Unlike SEZs, the full onus of acquiring the land will be placed on the state government. The developers in NIMZ are likely to get low-cost loans To solve the problem of shortage of skilled labour, the policy proposes a three-tier structure: skill building among large numbers of minimally educated workers; relevant vocational and skill training through establishment of industrial training institutes (it is) in the public- private participation (PPP) mode and specialized skill development through establishment of polyPASSLINE

technics and establishment of instructors’ training centres in the NIMZs. SPVs will undertake skill upgradation in coordination with the National Skill Development Corporation (NSDC). ITIs can be started on the premises of each NIMZ depending on the specific needs of industries there on build-own-operate (BOO) basis. The Union Government will provide the viability gap funding for both ITIs and specialized polytechnics according to the VGF guidelines of the Finance Ministry. Access to finance has been an everburning problem for MSMEs. To provide some relief to them in this area, the NMP has some proposals, which include: Enabling large numbers of entrepreneurs to sell their ancestral property to invest in the new businesses they are planning to start, granting rollover relief from long-term capital gain tax. Liberalization of RBI norms for banks investing in venture capital funds with focus on SMEs in the manufacturing sector to be taken up in consultation with the RBI. Setting up of a stock exchange for SMEs. SEBI has already made some headway in this direction. Implementation of the recommendations made by the task force on MSMEs presented to the Prime Minister on January 31, 2010. Inclusion of lending to SMEs engaged in manufacturing as part of ‘priority-sector’ lending to be considJanuary 31-February 29, 2012

ered depending on the recommendations of the committee set up to look into priority-sector lending. It is proposed that one or more service organizations will be considered for undertaking the responsibility of collection of dues from companies and making the necessary payouts in return for a charge linked to the wage bill of the SMEs. The policy guidelines have addressed many problems that MSMEs face and that hamper the growth of the manufacturing sector. But some apprehensions still remain. Land acquisition was the biggest problem even with the SEZs. NIMZs are envisaged to be vaster terrains and hence in states like Kerala acquiring such vast expanses of contiguous land is definitely going to pose big problems. The majority of concessions and benefits are directed to the occupants of such extensive zones only. Regarding liberalization of rules and regulations, bureaucrats of departments other than Industries are going to resist the move as they consider Industry as somebody else’s baby. Any liberalization, they feel, is cutting into their prerogatives. It is also felt that more innovative and aggressive strategies are needed to solve the MSME entrepreneur’s woes regarding accessing capital. (The author is a retired General Manager of Kerala Small Industries Development Corporation and Chief Consultant, Industrial Consultancy Services, Kochi. He can be contacted at ramamohanan@gmail.com)

Industrial policy must be realistic By Job K T

The Government of Kerala has placed the draft Industrial and Commercial Policy 2011 in the public domain for eliciting valuable comments/ suggestions to make it much more vibrant and dynamic. At the outset, the policy has tried to capture many of the areas of industrial development of the state. It has set the target of becoming one of the top three states in the country in terms of per capita income.

The Kerala Governmentâ&#x20AC;&#x2122;s draft Industrial and Commercial Policy 2011 has tried to capture many of the areas of industrial development of the state. It has set the target of becoming one of the top three states in the country in terms of per capita income.

Successive governments in Kerala have been successful in bringing out industrial and commercial policies to woo investments. However, after the grand release of the policy, no effective steps are being initiated by the Government and its departments to get the stated objectives materialized and thus practically the policies have become rituals.

Investor information centres: The draft Industrial and Commercial Policy 2011 envisions transformation of Kerala into a vibrant entrepreneurial society. This will require tremendous efforts by the Government and governmental agencies to attract entrepreneurs. Though the state has many advantages, it is unable to utilize its full potential.

Prioritize the focus: The draft policy states a variety of objectives. It will be desirable to have a focus on priorities so that the Government can mobilize the resources to achieve them. Establish objectively measurable targets:

Institutional mechanism for monitoring and evaluation: Many of the earlier policies were not able to get the extent of stated objectives materialized, the major reasons being the absence of an institutional mechanism

Skill development programme: The state is experiencing the major problem of providing employment to around 43 lakh job-seekers registered with various employment exchanges. Among these, some 33.30 lakh have qualifications below the SSLC. Employability for such unskilled people is difficult. At the same time, the employment market is fast expanding, demanding specific skill sets. The Government can evolve a strategy in the policy to tackle the situation by developing/strengthening the existing network of industrial training institutes (ITIs) or establishing skill development centres in line with the Union Governmentâ&#x20AC;&#x2122;s National Skill Development Corporation.

An industrial and commercial policy should instil confidence in the minds of investors and ensure an atmosphere of providing guarantee for their investment return. To make it much more meaningful and real, the Government may focus on the following points:

Whatever may be the stated objectives, these should be quantitatively measurable targets achieved towards each year and finally at the termination of the policy period. This will enable the Government to understand the shortfalls and take timely corrective actions.

about 10 yearsâ&#x20AC;&#x2122; time to recoup his investment by way of return. Hence, the pressing demand of industry is for the policy to have a minimum validity of 10 years.

in the Government to monitor, liaison and evaluate the progress achieved on an ongoing basis and suggest remedial measures. The present policy should institute a mechanism to resolve

this issue. Validity of the policy: The earlier policies were found to be valid during the tenure of the incumbent government. Normally any investor will require

January 31-February 29, 2012

A one-stop shop for dissemination of investment opportunities and support facilities and institutional networking are important to attract entrepreneurs. Hence investor information centres will be a solution to woo investments. The Kerala State Industrial Development Corporation (KSIDC) Ltd, Kerala Industrial Promotion Bureau and Directorate of Industries and Commerce are to be strengthened in line with the model of Udyog Mitra in Karnataka. Strengthening of Kerala Venture Capital Fund: Kerala Venture Capital Fund (KVCF) is a Rs 20-crore capital fund conceptualized by (KSIDC), Kerala Financial Corporation (KFC) and Small Industries Development Bank of India (SIDBI). The fund is useful for enterprises in high-technology sectors such as information technology and biotechnology and tourism. Its functioning is to be strengthened and that should be included in the policy. Exit policy: Unviable enterprises should be allowed to close down by a suitable exit programme of one-time settlement (OTS) of Government dues such as sales tax and electricity charges. The policy requires tremendous effort from all the stakeholders. The mere announcement may not achieve the objectives. The opinions of the public are to be incorporated to make the state one of the top three in per capita income

NEWS

Geojit Q3 PAT Rs 4.30 crore The consolidated revenue of Geojit BNP Paribas Financial Services for the third quarter of the fiscal year ending December 31, 2011, is down by 29% from Rs 82.71 crore to Rs 58.78 crore. Profit after tax (PAT) for the comparable period has come down by 65% from Rs 12.20 crore to Rs 4.30 crore.

W orld

Malayalee Council founder leader and Advisory Board Chairman Andrew Pappachen was sworn in as Environmental Commissioner of Montville Township, New Jersey, where he lives, for a further twoyear term on January 2. An environmental engineer, who took a Master’s degree from Stevens Institute of Technology, New Jersey, Mr Andrew is now working as the Director of Operations at Newark Watershed Conservation and Development Corporation. He is an active community leader in New Jersey and is the Chairman of the Asian American Heritage Council.

Nominated Mr Ismayael Rawther, Managing Director, Fine Fair Group, UAE, has been nominated to the Board of Directors of NorkaRoots.

Marzook Kerala Chamber Chairman Mr

K N Marzook of the Colombo Group has been elected Chairman of the Kerala Chamber of Commerce and Industry (KCCI). The other office-bearers are: Vice-Chairmen—M P Deepak Kumar Shetty (Jay Narayana Shipping Company) and Antony Thomas (Kottaram Trading Company); Finance Director—P Unnikrishnan Nair (Speed and Safe Courier Services).

For the nine months ended December 31, 2011, the consolidated income has come down by 16% from Rs 218.54 crore to Rs 184.16 crore. PAT for the comparable nine-month period has come down by 42% from Rs 25.47 crore to Rs 14.66 crore. Here too, for the same reason as stated above, the company’s share of the JV’s loss of Rs 7.15 crore is reflected in the quarterly results. Mr C J George, Managing Director, Geojit BNP Paribas, says: “The company’s performance in this quarter closely mirrors the broader market trends. The decline in market activity, in particular the decline in delivery volumes, has affected the company’s performance. We, however, expect the markets to gain significant momentum once the interest rates come down after the easing of inflationary pressure.” Geojit BNP Paribas Financial Services (www.geojitbnpparibas.com) is one of the leading retail stock brokers in India with strong presence in the Gulf countries. Listed on the National Stock Exchange (NSE) and on the Bombay Stock Exchange (BSE), it has more

WANTED

Andrew Pappachen reappointed

Although the company has, in principle, decided to sell its full shareholding in BNP Paribas Securities India to BNP Paribas for Rs 40.5 crore, the transaction is yet to be completed. Therefore the company’s share of the joint venture’s loss of Rs 2.16 crore is also reflected in the quarterly results.

than 6,33,000 clients and a network of over 546 offices and manages assets worth over Rs 11,027 crore. BNP Paribas is its main shareholder. Geojit BNP Paribas has an extensive presence in the Middle East region via joint ventures and partnerships. Barjeel Geojit Securities, its joint venture with the Al Saud Group, has its headquarters in Dubai, UAE, and owns branches in Abu Dhabi, Ras Al Khaimah, Al Ain and Sharjah. Aloula Geojit Brokerage Co., the joint venture with the Al Johar Group in Saudi Arabia, is headquartered in Riyadh with branches in Dammam and Jeddah. BBK Geojit Securities KSC, located in Kuwait, is a joint venture with Bank of Bahrain and Kuwait and JZA. Geojit Qurum Business Group Financial Services LLC is the joint venture with the Qurum Business Group (QBG) and National Securities Co and based in Oman. BNP Paribas Securities India Private Limited is the company’s joint venture with BNP Paribas for institutional brokerage. BNP Paribas (www.bnpparibas.com) is one of the bestrated banks in the world (rated AA- by Standard & Poor’s) with presence in more than 80 countries and 2,00,000 employees, including 1,60,000 in Europe. It ranks highly in its three core activities: retail banking, investment solutions and corporate and investment banking. In Europe, the group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail banking model across the Europe-Mediterranean zone and boasts a large network in the western part of the US. In its corporate and investment banking and investment solutions activities, BNP Paribas also enjoys top positions in Europe, strong presence in the Americas and solid and fast-growing businesses in Asia.

PASSLINE, Kerala’s only business magazine in English, with a 17-year track record, needs professionals for the following posts:

Reporters Assistant Advertisement Managers (Thiruvananthapuram, Kochi, Kozhikode)

Marketing Executives (all districts)

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PASSLINE

January 31-February 29, 2012

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RHEOVERSITY Research centre for human perception We come across a lot of schools for learning, training and researching. 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. RHEOVERSITY is a research centre for human consciousness which aims at the study of the psychology of consciousness according to the precepts of mystery school. The objective is to transform an ordinary human being into an evolved being. T h e r e f o r e , 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. Intention: Everything we do has an intended pur-

pose. Interconnection: Everything, from surroundings and tone of voice to distribution of material, conveys an important message about learning. The learner becomes actively aware of the relation between part and the whole. Experience: Students make meaning and transfer new content into longterm memory by connecting to existing schemes. Learning is best facilitated when students experience the information in some aspect before they acquire labels for what is being learned. Appreciation: Acknowledgement of each student’s effort encourages learning and experiment. Appreciation is a high form of energetic connection to enhance learning.

Quality management is the company’s primary priority and this is what earned it the ISO9001:2008 certification. The products are branded under the trademark of ‘ECOWORTH’. Enviroworth Ecosolutions’ international business associates are Earth Smart Solutions, Canada, and United Alacrity, Singapore. The company markets the products made up of ‘pat-

From page 13

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.

the coming years. To contribute to the development of the country’s economy and to its overall growth people should invest in the stock market. They can invest in the stock market through mutual funds, can buy large-cap funds or start SIPs which give good return in the coming years. If one has time to spare, one can start trading with a demat account through a good broker and can invest directly in good companies. Almost all brokers have good research teams and they give advice on investing.

Three forums for children under smile: Genie kids forum (7-9 years); Wiz kids forum (10-13 years); Young leaders’ forum (14-17 years);

One can also opt for portfolio management services. All major brokers and some exclusive portfolio advising firms provide this service.

Celebration: Celebration provides feedback regarding progress and increases positive emotional associations with the learning.

Enviroworth Ecosolutions makes environment clean

Enviroworth Ecosolutions Pvt Ltd has established excellence with natural, biodegradable and ecofriendly products and services. Enviroworth mainly focuses on products for waste water treatment, solid waste treatment, chemical-free products for households and agriculture as well as safe products. Partnered with the best-in-class manufacturing facilities worldwide, the products are designed to give clients safe and better results. All the products have been designed to ensure the care for humans, animals and especially Mother Nature.

A major and return-giving investment segment is the stock market. It is always better to keep a minimum 10%- 20% of your savings in the stock market. Indian stock markets are expected to give good return in the coming years. To contribute to the development of the country’s economy and to its overall growth people should invest in the stock market. They can invest in the stock market through mutual funds, can buy large-cap funds or start SIPs which give good return in the coming years.

Usually all investors start to invest on the last leg after seeing others invest and take profit. Better try to avoid this practice. Always do the investment regularly and in a balanced way. Keep investment in different segments and at different periods. Don’t be overconfident or panicky. Keep investing and do profitbooking as usual. So this is the ideal time to start investing. Plan your savings, time frame and targets and start investing in 2012 and the coming years. In 2010, FIIs were the major buyers in Indian equities, but in 2011 they turned major sellers. In 2012, however, the market expects good inflow of funds into Indian equities. In January, till now, they have remained buyers, buying about Rs 2,000 crore worth of shares from Indian stock markets.

ented cultured bacteria ‘capable of liquefying septic sediments, declogging of mainline, combating oil spill, municipal waste etc. This process provides the biological activity necessary to remove accumulated organic matter, which naturally eliminates embarrassing odours and reduces mosquitoes. The products are: Ecoworth septic systems cleaner, Ecoworth Ecolatex (for rubber farmers), Ecoworth pet-deodorant,

Ecoworth odour eliminator, Ecoworth car shampoo, Ecoworth wind shield and glass wash, Ecoworth dish wash, Ecoworth toilet and bath cleaner, Ecoworth floor wash, Ecoworth waste water management, Ecoworth compost starter, Ecoworth hydrocarbon degrader, Ecoworth phenol treatment, dairy waste treatment, Ecoworth algae eliminator and Terracotta pots (bio-composting for households).

PASSLINE

January 31-February 29, 2012

Investors are advised to buy and hold good largecap shares with a minimum one-year target. Existing investors can buy shares to average their holding value. Indian stock markets are now very attractive. Short-term investors can buy at every decline and sell at rise. Recurring deposits and SIPs are best for low risk-taking investors like those who want monthly returns and small investors. Sectorwise, FMCG, pharma and IT are expected to be positive in 2012. Large private banks and some PSU banks are good. If interest rates are reduced good growth can be expected in the auto sector. The best shares to invest in in 2012 are Godrej Consumer, Ajanta Pharma, Sun Pharma, TCS, HDFC Bank, Federal Bank, Bajaj Auto, M&M, Hindalco, Balrampurchini Mills, Hind Zinc and Coal India. (The writer is the Regional Head—Kerala, Nirmal Bang Securities Pvt Ltd)

32 SIB net Rs 102.24 cr South Indian Bank (SIB) has achieved its highestever net profit of Rs102.24 crore for the quarter ended December 31, 2011. The total business has increased 27.49% from Rs 46,186 crore to Rs 58,883 crore on year-to-year basis While deposits have gone up 25.32% to Rs 33,834 crore from Rs 26,998 crore, advances have increased by Rs 5, 862 crore to Rs 25, 050 crore (Rs 19,188 crore), a growth rate of 30.55%. The bank’s CASA has increased by Rs 1, 235 crore to Rs 7, 280 crore (Rs.6, 045 crore), a 20.43% increase. The net interest margin has increased from 3.03% as on December 31, 2010 to 3.05% as on December 31, 2011.Annualized earnings per share (EPS) increased from Rs 2.48 as at December 31, 2010 to Rs 3.29 as at December 31, 2011. The capital adequacy ratio stood at 12.03% (under BASEL II standards) against the regulatory requirement of 9%. Provision coverage ratio improved to 75.18%.

Solenergees Managing Partner Brijesh K P receiving the award from Minister Aryadan Muhammed at Mascot Hotel in Thiruvananthapuram.

Solenergees bags state award Solenergees, Palakkad, has received the state energy conservation award from the Kerala Government Energy Management Centre for the year 2011-2012. The award, consisting of a certificate and a citation, is in recognition of Solenergees’ contribution to promoting energy- saving solar, LED and CFL lights in local bodies and its notable service in this sector. Mr Brijesh K P, Managing Partner, Solenergees, received the award from Electricity Minister Aryadan Muhammed on the Energy Conservation Day (December 14) in Thiruvananthapuram.

According to Managing Director and Chief Executive Officer V A Joseph, the robust growth in business coupled with low NPA enabled the bank to attain the present level of performance.

FedBank raises NRE term deposit rates Federal Bank has raised the interest rates on NRE deposits. The revised rate for one-year deposits is 9.50%, and that for one year to three years and above three years 9.25% and 8.75%, respectively. The raised rates are applicable from January 1, 2012.

Amrutham Bio enters solar power field A mrutham Bio Organic Research and Development Center (Amrutham Bio) is coming up with a 100% green energy solution to tackle the energy crisis and to contribute to making India greenish.

pany developed its own bio-fertilizer and organic manure and owns Asia’s largest microbiology lab. The organic chain of Amrutham Bio Organic Research and Development Centre was first established in Palakkad and later extended to all the districts of Kerala. It has branches in Tamil Nadu, Karnataka and Andaman Nicobar Islands. Amrutham has spread its wings to Oman, Uganda and Saudi Arabia also and is the only company which exports bio-fertilizer and organic manure to foreign countries from India.

“The project is ready for implementation and it has got acceptance from various mobile phone companies,” says Mr Amrutham Reji, Managing Director of Amrutham Bio. Mr Reji, who envisaged the project, also says that mobile phone companies can use this technology to power their cell sites, thus making communication posAmrutham Bio is the Amrutham Reji sible for even the remotest only company exporting villages of the country which lack electricity and other forms of coco-peat, an important basic material used for making meadows basic infrastructure. Amrutham Bio is the leading and gardens in desert sands, to the producer and exporter of organic UAE. Amrutham’s hi-tech microbimanure and bio-fertilizers. The new ology lab makes Azotobacter which technology comprising solar pan- can convert atmospheric nitrogen els and lithium ion batteries will be to ammonia, azospirillum and rhizoable to provide a wide range of ser- bium which convert nitrogen to vices which includes 100 hours’ ammonia with the help of nitrogcontinuous supply of power. enous enzyme and also phosphobacterium which makes Amrutham Bio began its venture with the production of organic ma- phosphorus available to roots of nure and its distribution. The com- plants for their sustainable growth. PASSLINE

January 31-February 29, 2012

IN CONVERSATION

ajeev Nair, an icon for many Indians, was born and brought up in a middle-class family in Kerala. With Master’s degrees in Analytical Chemistry and Business Management, he put his skills to work in companies like Malayala Manorama, Cipla and Bharat Petroleum for a period. Later he proved his entrepreneurial talents at Amway Corporation, the $8.2-billion global direct selling giant. He left Amway recently and joined MonaVie, pioneer in liquid nutritional supplements or functional health beverages. More than the business and its profits, Sajeev values the life-changing education and training he is able to acquire. In 2005 he founded the Nature Zone Jungle Resorts of which he is currently the Concept Director. Later he launched Bramma Hotels and Resorts under which there are now three ‘experience hotels’. Bramma Learning Solutions Pvt Ltd was founded in 2008 with the aim of bringing about a positive transformation in people and organizations. This training and consulting division has created magic in the lives of many people. Sajeev is also the founder of the unique concept ‘Thought Process Re-Engineering’ (TPR), also in 2008. This concept has been a driving force in Sajeev’s life from the beginning. A certified NLP practitioner too, Sajeev is a much-in-demand motivational trainer and success coach for corporate giants. Excerpts from an interview with him: Why did you leave Amway? Amway is a company with great products and it will continue to bring out great products. Who in the world will not appreciate its commitment to quality? But to succeed in network marketing, having the greatest products is not enough. According to Robert Kiyozaki, business education system plays a major role in network marketing. What made me or many leaders successful in this business is not Amway but the business education systems associated with the business. As long as a company wants to remain a ‘100% network marketing company,’ it should not try to reduce the significance of business education systems. Another important factor which decides the success of a network marketing business is the compensation plan. For people who join the business to achieve financial freedom,

‘People most important in any business’

Sajeev Nair

Amway offices in Kerala. Even some distributors had to go through police inquiries and I was totally disappointed with the approach the company took during this time. In short I didn’t take this decision for me, rather I took it for the thousands of people who have taken this business as a full-time career or profession. In your view, what exactly led officials to raid Amway?

there should be an attractive income. Especially in a country like India where the economy is growing at high speed, where salaries have grown by five times over the last 10 years, the compensation plan should be really rewarding. Yes, Amway is a good part-time business opportunity. But how far can it help one to grow with the economic boom in this country? Moreover the legal issues Amway has been facing in India right from 2002 have been quite disturbing. In 2002 Amway’s Kerala offices were sealed by the Drug Control Department and in 2006 the Andhra Pradesh Government banned its operations in the state. While all these cases are still pending in the court, three months ago the regulatory authorities raided and sealed

It’s quite unfortunate that a company of the size of Amway goes through such legal issues. The raid or legal actions have never been only against Amway; it is against all the companies operating in the network marketing industry in Kerala. Though direct selling is one of the largest industries in India providing entrepreneurial opportunities to millions of people, it is quite unfortunate that there are no regulations for this industry in this country. As a result many companies are operating in Kerala as well as in other states as MLM (multilevel marketing) companies. In reality, however, a majority of them are nothing but fast money pyramid schemes. Pyramid schemes or money chains are banned in India through the Prize Chits and Money Circulation Banning Act 1978. As there is no Act or law regulating the MLM industry, and as there are thousands of fast money pyramid scheme companies operating in the name of MLM, investigating authorities are finding it tough to differentiate even genuine network marketing companies from money chains. What are the products MonaVie offers and how are they different from those of others? MonaVie has got some high-quality wellness products, which the company developed by investing millions of dollars in research. It has already PASSLINE

invested more than $250m in product research. All products are patent-protected. To guarantee the quality, MonaVie offers 100% money back. MonaVie is the pioneer in liquid nutritional supplements or functional health beverages—glucosamine HCL, omega 3, multivitamins-multiminerals, immunity boosters etc, all in the antioxidant-rich acai berry juice. Liquid nutrition provides easy consumption and better absorption. MonaVie RVL is a highly effective weight management product, containing soy protein Isolate and whey protein. MonaVie has exclusivity in the nutritional energy drinks category. eMV nutritional energy drinks are endorsed by most of the well-known athletes and sportspersons. MonaVie also has nutrition bars. In India MonaVie is bringing out an exclusive range of personal care and skin care products based on ayurvedic formulations. The range includes soaps, shampoos, under-eye creams etc. What are the benefits distributors and customers get from MonaVie? MonaVie is a young and dynamic company creating a huge wave in the wellness industry. It was started in 2005 in the US and is now operational in 20 countries, with an accumulated sales turnover of over $3 billion. Mr Dallin Larsen, the founder Chairman, has got more than 25 years’ experience in the direct selling industry. MonaVie is the fastest-growing company in the direct selling industry and has broken all industry records. MonaVie has its India corporate office in Chennai and is opening 10 company-owned offices in major cities. It is opening more than 100 distribution centres all over the country before January 31, 2012. Shipping cost is included in the MRP and hence no extra cost is to be borne by the distributors. Business/compensation plan: MonaVie has the most remunerative income plan in the industry, where evJanuary 31-February 29, 2012

ery minor effort is being paid. It is a volume-based compensation plan where one’s income is directly proportional to one’s business volume and hence there are no limits to one’s earnings. (In breakaway plans like that of Amway, one’s income is limited as after certain volume the downline group volume is not counted). MonaVie has a patented hybrid plan where there is a convergence of the goodness of all the best plans. As a result MonaVie has created more than 100 millionaires in the world in just six years. Seventy-five out of the top 200 earners in the direct selling industry are from MonaVie. Four out of 10 top earners in direct selling are from MonaVie. One can develop a global network by taking distributorship in just one country. There is no joining fee, no renewal fee. Income is purely based on the business volume. What are the strategies you adopt for mutual benefits in your new endeavour? People are the most important factor in any business, and this is more significant in direct selling. Hence all my strategies will be around developing quality entrepreneurs who can help many others to lead a meaningful life. We already have a well-designed training and development system for this. As MonaVie allows the distributors to develop a global distribution network, which was not there in Amway, I along with the senior leaders will be developing some strategies for global business expansion. As MonaVie has got plans to expand to the Gulf and Middle East countries in 2013, we will be developing a core team for new market development. Moreover MonaVie is launching a global business support system called MVP, which will have its headquarters in India. We will have more clarity on our business development strategies once the MVP plans are rolled out.

NRI SUCCESS STORY

PROSI

Passline News Service

Catering for Austrians’ tastes

e are familiar with Malayalees imbibing Western cultures and lifestyles easily. But it is very hard to find a Malayalee who could create his own culture on alien land and make the people there adapt to it. Here is one who has been making the summer festival in Vienna, Austria, an unforgettable experience not just for Austrians but for the entire population of the city— Prince Pallikunnel hailing from Malappuram. When the temperature reaches its zenith during summer in Vienna, its streets will be agog with great excitement and revelry for two days. This has been so for the past 11 years under the inspiring leadership of Prince. Performers and artists from all parts of the world converge there turning the festival into a mini-global gala. To add spice to the whole affair, cuisines of various countries will be on display. The festival called Strasensfest fills the minds of the people of Vienna with sparkles of joy. Prince Pallikunnel is the Managing Director of PROSI Exotic Supermarket & Cosmetic World, the first exotic supermarket in Vienna, started in 1999. Though it is not easy to succeed in a foreign country, PROSI is an example of how devotion, perseverance, politeness, respect, obedience, service and intimacy can achieve one’s goal. Born in an ordinary farmers’ family, Prince got a chance to pursue higher studies in Austria while he was teaching at a higher secondary school at Balussery in Kozhikode after passing his MCom. In 1992 he started a grocery shop with a partner to sell Indian spices and vegetables and also newspapers. Initially it was profitable but the eatery started later with it went into losses, leaving the entire business in the doldrums. Prince then tried a travel agency which also turned out to be a fiasco. After landing in a foreign country as a student and tasting failure in business one would naturally curse that country and its people and decide to leave the place for good for one’s motherland. But destiny had something strange and different in store for Prince. In 1994 he got a job in a Vienna insurance company. The entrepreneurship trait in him had not died down.

Prince Pallikunnel

In 1999 Prince started PROSI. What is meant by PROSI? Before christening the name Prince had pondered over the special features that his supermarket should have. So he adopted for inclusion in the name the virtues that are vital

for the success of a business venture. They were a mix of human qualities which he had nursed during the time he had to pass through difficulties. He decided that his venture should imbibe these valuable human attributes and choose

Prince Pallikunnel is the Managing Director of PROSI Exotic Supermarket & Cosmetic World, the first exotic supermarket in Vienna, started in 1999. Though it is not easy to succeed in a foreign country, PROSI is an example of how devotion, perseverance, politeness, respect, obedience, service and intimacy can achieve one’s goal. the first letters of these—Politeness, – Respect, Obedience, Service and Intimacy. And thus was born PROSI. But fine qualities alone won’t make a venture complete. It required money. His dream project materialized

when his father offered $100 as capital. This was of course a small amount, he knew. But with it he opened a shop in a 120-sq m room. Sticking to the principles on which the store was based, he worked hard and made PROSI the largest exotic international culinary joint in Vienna in just 11 years! When he left his village Karuvakundu in Malappuram for Vienna the PG degree in Commerce was the only material possession he had. Later he mustered the courage and self-confidence to face any eventuality that he might have to face later in life. It was this mental prowess that added glitter and glitz to his life. From the bitter experiences he had in life Prince had learnt how to turn failures into successes and converted the first exotic supermarket in Vienna into a business empire called PROSI Exotic Supermarket & Cosmetic World.

Prince with his brothers (from left) Sirosh, Siji and brother-in-law Shaji.

PROSI today is a vital part of the people of Vienna. It offers for sale 6,000 items from 60 countries. The staff includes, besides Indians, people from the Philippines, Nepal, Bangladesh and Africa. PROSI serves recipes that suit the tastes of customers from different parts of the world and simultaneously holds cooking and yoga courses weekly for Viennese customers who warmly welcome these programmes now. For the last four years PROSI has been conducting cooking classes on its premises. There are a maximum of 14 students in a batch, mostly Austrians. Chefs from different countries take classes. PASSLINE

January 31-February 29, 2012

35 Prince was born to George and Mary at Karuvakundu in Malappuram as their eldest son. After completing MCom from N S S College, Manjeri, he started his career as a VHSC teacher at Balussery. Later he came to Austria as a computer student and got a job in a Vienna insurance company in 1994. In 1999 Prince started PROSI Exotic Supermarket & Cosmetic World. There is always a force behind every individual’s success. In Prince’s case it was his wife, brothers and sister

Family support who gave him unstinting support for his venture. His wife Shiji, younger brothers Siji and Sirosh and sister Betty are always with him, helping him in his efforts. With the marriage of his brothers and sister PROSI grew in strength and manpower. Siji’s wife Shiny, Sirosh’s wife Rani and Betty’s husband Shaji also play vital roles in enabling PROSI to scale heights. Prince handles the complete administration of the business, public relations and also conceives new ideas. He of course discusses ideas and problems with his brothers before implementing them. Shiji is in charge of the cosmetic section and Siji and Sirosh manage the purchase department. Betty and Shiny are in charge of the restaurant, PROSI Food Magic. Rani looks after the total

His dream project materialized when his father offered $100 as capital. This was of course a small amount, he knew. But with it he opened a shop in a 120-sq m room. Sticking to the principles on which the store was based, he worked hard and made PROSI the largest exotic international culinary joint in Vienna in just 11 years!

in a batch, mostly Austrians. Chefs from different countries take classes.

Prince with his brothers, sister Betty, brother-in-law and their families.

accounts of the business. Shaji oversees the counter sales of the supermarket. Prince is also actively engaged in different cultural and social activities in Vienna. He is an office-bearer of WMC European region. Kala Vienna is a prestigious and the largest organization of Malayalees in Eu-

rope. Prince is is its patron and soul. Prince has served as the Austrian representative of the World Chamber of Commerce, President of the WMC Austrian Province and WMC Europe President. He has bagged the best businessman award and the best achievement award.

Prince and paupers Back in India, the tribals of Semili village in Madhya Pradesh can never forget Prince’s charity—he lived with them for three weeks to build houses for them in place of their dilapidated, leaky shelters. What inspired him to do this was a chance meeting he had with the Bishop of Indore Mission diocese, Mar Chacko Thottumarikkal, from whom he came to know of the plight of the tribals there. Prince decided to make Semili village his centre of activity. Semili village is a mission centre of Indore diocese which is inhabited by about 150 tribal families, 15 of them

Christian. There is a church in the name of St Arnoldenar and a boarding house for boys in the area. Various mission activities take place there. It also has a dispensary. Fr Cyril Koottino, an SVD congregation member, is the parish priest. Sisters Sofia, Josaartho and Andro, members of the Franciscan Clara Congregation in Bhopal province, serve as missionaries. Prince could build houses only for five deserving tribal families from the fund set apart from the PROSI Charitable Project. He is said to be longing to build more such houses.

PROSI is also running a restaurant on its premises where both vegetarian and nonvegetarian delicacies are served. South Indian snacks like uzunnuvada, parippuvada and samosa are also available. Indians’ choice masala dosa is one of the hottest and most favourite dishes among Austrians and expatriates from other countries. By offering delicacies that immigrants like, PROSI creates an atmosphere of nativity among all. Moreover, foreigners get a chance to know the Indian mode of cooking. The biannual street festival is hailed by Vienna’s people as a global festival. Artists from different parts of the world take part in the cultural programmes held with this festival. Foreigners get acquainted with Indian culture through the food festival, and yoga and dance classes. A protagonist of arts and cultural programmes, Prince has formed an organization called ‘Kala Vienna’ to promote international arts and culture in Vienna. There is an arts and cultural centre as a wing of PROSI, the objective of which is to encourage cultural activities of different countries. Indian dance forms are also a major attraction during the cultural fete.

Prince with brothers and brother-in-law at a promotional event

PASSLINE

January 31-February 29, 2012

WOMAN ENTREPRENEUR

PASSLINE

RN 65561/94 Reg. No. KL/EKM/116/2009-2011

January 31-February 29, 2012

Sheejas IT Mall

All IT products under one roof T

he dynamic Sheeja Jaimon is the first woman entrepreneur in the IT hardware business in Kerala and Sheejas IT Mall is the model enterprise which has introduced the concept of all the branded laptops, desktops, smart phones, tablets, peripherals etc under one roof for the first time in Kerala. Sheejas IT Mall is the retail initiative of the Noveon Group, the leading IT hardware and software distributor in Kerala, started in 1997. It was Sheejaâ&#x20AC;&#x2122;s sheer undaunting hard work, positive attitude and superb motivational skills coupled with her firm faith in God that enabled her to climb various levels in business, especially in the areas of credit management, where many of her competitors had seen the end of the road. She managed to meet these challenges head on and was able to come out with flying colours to don the mantle of the Managing Director of one of the most successful IT enterprises in South India.

Kerala, connected through its offices at Thrissur,Kozhikode, Kannur, Thiruvananthapuram, Kollam and Muvattupuzha besides the head office at Kochi.

Sheeja Jaimon

brainstorming sessions every day. This forms the bedrock of her success story that is evident from the creditable profit the firm made even during the lean recessionary times. The group has now touched an impressive turnover of Rs 100 million and has the widest network of more than 1,000 dealers throughout

This IT Mall provides streamlined service even in the remotest areas of Kerala and is perfectly fine-tuned to meet the dynamics of providing the most cost-effective and flexible IT solutions to the prospective clients to meet their bottom line goals. Sheejas is professionally committed to providing the highest standards of service and attends to even the minutest of details. This is reflected in the regular update training given to its service engineers that enables it to tackle the technical snags that may crop up from your latest gizmos within the lowest time frame. At Sheejas IT Mall, customers are seen as the cornerstone of its success.

Sheejas IT Mall, which is the result of the remarkable courage and ability of Sheeja, is the first such initiative in South India showcasing all the leading international brands under one single roof. It displays the widest range of IT brands like Samsung, Sony, Apple, HP, Acer,Toshiba, LG, Lenovo, Dell, Belkin, Logitech and Microsoft. This option to choose from all leading international brands under one roof, along with unmatched, impeccable after-sales service at reasonable cost, had led to the saving of valuable time and money by prospective customers lest they should run around various brand shops for price and feature comparison before buying any. Sheejas provides excellent after-sales service support, manned by personally handpicked courteous service staff who would answer even your silliest queries with outmost courtesy, patience and dedication. Sheejaâ&#x20AC;&#x2122;s success is to a great extent due to the creation of such a personally groomed and positive-minded dynamic sales and service team, with whom she interacts and often has 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