Passline magazine nov 15 dec 15, 2015

Nov 15 - Dec 15, 2015

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E v e n t s

Public Relations Council of India(PRCI) Kerala Chapter’s first Thoolika literary award being presented to eminent litterateur N S Madhavan by Cultural Affairs Minister K C Joseph at a function in Kochi. Standing from right are PRCI Kerala Chapter Chairman U S Kutty, P A Hamsakoya, Secretary T Vinay Kumar, Ravi Kuttikatt, S Sathidevi and Treasurer P K Natesh.

Union Finance Minister Arun Jaitley dedicating to the nation FedBook Selfie, India’s first mobile app for bank account opening from Federal Bank, in the presence of Federal Bank MD & CEO Shyam Srinivasan.

V Padmanabham, (M/s SSF Limited, Visakhapatnam, Andhra Pradesh), National President, The Seafood Exporters Association of India

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Shalini Warrier has taken charge as Chief Operating Officer of Federal Bank .

UAE Exchange India has appointed M Narendra and Abraham Thariyan Independent Directors on the board of the company

3 From the Editor

Clear the deck before going for big bang!

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Editor & Publisher

Varghese Paul Kozhikode Vineeth Mukundan 8714986177 Chennai Augustine Joseph Ph: 09381000534 Bangalore Gireesh Gopal +91 7204560000 Adithya +91 9538060591 54, 2nd Main, Vyalikaval Bangalore - 560003 Manager-Marketing Sajan K 09895344485 Keethara Publications Pvt Ltd 38/125 1st Floor, Narakathara Road, Kochi-682 035, Kerala, India. www.passlinebusinessmagazine.com

ur Prime Minister Narendra Modi has made a land mark proclamation last week before he leaves for Britain to attend the G20 Summit . The PM has opened the flood gates for foreign investment in 15 different sectors from banking to defence . Unlike previous reforms pronouncement, the present one is the father of all others. Trade and commerce bodies in the country have applauded the announcement as expected. For them, this is a golden opportunity for their capitalstarved industries to infuse funds. However, the most important area which this time accorded foreign investment status is plantation sector. Previously, the foreign investment was allowed only in tea plantations but, in recent announcement, 100% foreign invest is made possible in plantations like olive, coffee, cardamom and rubber.

The discussions and deliberations are inevitable in Kerala while rubber plantations are also included in the list. We have to think that how far Kerala can grab the opportunity when the 90% of the rubber plantations are small and medium in size. Though the foreign investments were allowed in tea plantations way back there were no substantial investments came so far. The small farmers are in dare straits due to the global phenomenon of increased production and simultaneous low price for the commodity. We can say undoubtedly that strict rules and regulations in land and labour will deprive the investors from the State.

The aim of this time’s reform is to simplify the existing rules for direct foreign investment and changing more investment proposals in automatic route which do not want prior government sanctions . No doubt that this is good move from the government side to woo the foreign investors, for which the government has increased the sanctioning power of Foreign Investment Promotion Board from Rs 3,000 crore to Rs 5,000 crore .

It is true that the foreign investment has an important role in economic growth of the country. Instead of finding the impediments for the growth of each sectors, considering the foreign investment as the panacea for everything is not advisable. India stands in 130 th position in ease of doing business index and 155 th place in starting of business index respectively. Comparing with other fast developing Asian countries, particularly China, India stands at decimal place.

Foreign investments have a small share when we compare with the total investment of the country. Unless we instill confidence in domestic industries and commerce , we cannot achieve economic growth as per our desired level. The expectations that government sharing as regards the foreign investments are not practical as per the common aspirations and thinking. As usual, this time also, the NDA Government has not presented the reforms agenda in the Parliament before it proclaims. The bill like GST, which is expected to make drastic changes in the country, is still lying in front of the Parliament without reaching a consensus. Naturally , the implementation of new reforms are also doubtful. First of all, we should make the deck clear for smooth inflow of foreign investment by removing the hurdles which block the foreign fund . The age old rules and regulations must be corrected and also the mind set of people, politicians and most importantly bureaucrats should undergo a drastic change

Varghese Paul

4

Passline News Service t a quick glance there is nothing peculiar or eye catching for a common man to differentiate between Irinjalakuda Credits & Leasing Company Limited (ICL) and any other Non- Banking Finance Companies ubiquitous in Kerala.

Still ICL stands apart in financial dealings. Because, ICL has simple and viable schemes fit for any type of clients. Ask any of nearly one lakh customers of ICL about the experience they have with ICL, they will script a story of

A

of similar stature of ICL during the two and half decades of its existence.

Incepted in 1991 in a humble way under the registration of Companies Act 1956, ICL was expanded as a NBFC in 1996 with the approval of Reserve Bank of India. Commencing its operations in Chennai and Kerala simultaneously; ICL has grown up with the multipronged business interests such as Hire-purchase Loans, Gold Loans, Home Appliance Loans, MoneyTransfer,

“ NBFCs are playing a vital role in the Indian financial sphere. The gap between the mainstream banking system and the NBFC functions is bridging in an unbelievable pace nowadays. Both the sectors are dealing in almost the same products and services in this competitive era. The prospects of the NBFC are evident if one who looks at the bottom lines of the NBFC”. satisfaction and security always, which is the most important factor for the tremendous growth of ICL , that is more than what can be established by an organization

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Forex , Travel & Tourism, Business Loans and Advances, both personal and business. As of now, ICL has 23 branches spreading both in Kerala and Chennai with its Administrative Office at Irinjalakuda in Thrissur district and the Registered Office at ValLINE

Nov 15 - Dec 15, 2015

sarawakkam, Chennai. In Kerala, ICL has presence in Trichur, Ernakulam, Kottayam, Alappuzha, and Palakkad districts .

The institution is headed by a young and enthusiastic personality -- K G Anilkumar as CEO and Managing Director. Anilkumar, who hails from one of the oldest and reputed families of Irinjalakuda Erekkath home.

His father, Erekkath Govinda Menon, is a freedom fighter and towering personality who fought against Sir C P Ramaswamy and has undergone jail terms several times. The proud son, of a great patriot who is at his Ninety plus now, is explaining comprehensively about his future plans both in his business and his commitments towards society. “ My father is a man of principles and moral ethos and he is my role model. He groomed his children in such a way that we all are always compassionate and reasonable towards fellow human beings. In all my endeavors I try my level best to follow my father’s principles and advices.

That is the only reason for the steady progress of ICL with a such a big customer base and

the branch network. The significant success of ICL succeeded during the last three consecutive years. Now we are in the right track and I have drawn up many plans and strategies already for the future goals. By 2020, ICL will make its pan India presence with Rs 1000 crore business and 2000 employees. At this stage I do not forget the hard work and integrity of our General Manager and Finance Director Uma Devi Anilkumar who is also my better half. She is just three- year old in our business and you can easily notice our business graph heading north ever after her involvement in the group. She is in charge of the entire administration and finance matters. She is also entrusted with the onus of ICL Cultural & Charitable Trust , which has earmarked a number of programmes and activities for the near future. I am sure that Uma with the strong support of our professional and dedicated workforce will achieve the 2020 target easily”. “ NBFCs are playing a vital role in the Indian financial sphere.

The gap between the mainstream banking system and the NBFC

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functions is bridging in an unbelievable pace nowadays. Both the sectors are dealing in almost the same products and services in this competitive era. The prospects of the NBFC are evident if one who looks at the bottom lines of the NBFC. Most of them are running in good profit including us. ICL is always in black right from inception itself. Even then we will switch over to microfinance sector in the very near future. Our ultimate aim is to convert ICL into a small bank. We have already started the initial work for it. Ours is an ISO- certified com-

ber of Chennai branches from four to ten immediately”. “ We have number of products fine- tuned for the common man in society. In our gold loan segment, we have usual gold loan schemes and gold purchase loan scheme. The latter is a novel one.

In this scheme, the company will lend 75% of the total amount as loan. The interest rate is only 12% and the customer can remit

pany and it will be rated by the rating agency CRISIL very soon.

We expect it in a month’s time, at the maximum. We are planning to repositioning by changing ICL into ICL Fincorp Ltd. The logo and the colour scheme will change. Our plan to start a Nidhi company is also on the anvil.

ICL will reach 50- mark milestone in branch net work and Rs 100 crore in business volume respectively in this fiscal. To achieve the target, we will increase the num-

Anil Kumar

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Mission “Our mission is to provide the best & trusted financial solutions to our clients and

Umadevi Anil Kumar

strives to build long-term relationships

with

them

taking into account their needs as well as the changing market dynamics.” the amount in easy installments.

In gold loan segment, the interest rate is only 9% below the industrial bench mark and we have 18- month EMI scheme for the repayment and also daily collection facility. In the business loan category, we will provide loans up to Rs 1 lakh without any security with 15% interest. The maximum amount of the loan is Rs 5 lakh. You can repay the loan on daily basis. For Rs one lakh, the customer has to pay only Rs 350 daily. Even before the commencement of gold loan business, we were indulging in leasing and hirepurchasing

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business. In this scheme, we are funding to buy new vehicles with 13% interest. In this category, we are planning to slash the interest rate to 6% from January 2016 onwards. There are products like debentures and equities ( private placement) for our customers to grow with ICL. ICL debenture is providing high income for its

investors. Over a period of two decades the company has been issuing debentures with easy redemption facility. We are giving 12.5 to 14 % interest for debentures. The investment will become double within 58 months .

We have strong presence in business like Chits, Money Transfer and Foreign Exchange. These segments contribute a major volume to the flagship company – ICL. We have

separate team of employees for each segment and they are monitoring it carefully. As regards our diversification, other than financial business, is ICL Tours and Travels, ICL Builders and ICL Cultural and Charitable Trust”.

ICL Tours & Travels “ ICL Tours & Travels is a new entrant in ICL group. The firm is three years old and it is performing extremely well with the sup-

7 port of our team members. We undertake A to Z services in travel industry - Flight Ticketing, Visa processing, Passport related services, Car rentals, Tourist bus booking, Cruises and Hotel bookings apart from inbound and outbound tourism services. ICL Tours and Travels was recently honoured in India International Travel Mart for its excellent performance in the industry. We focus in the product quality and affordable pricing in this segment. We have a number of high net worth individuals as our customers who travel quite often for their business and leisure.

Package tours are our specialty.

Whenever we draw plans for a new trip we used to get the same customers who have travelled with us in the previous trip. This indeed is the biggest recognition for us , that too from the happy and satisfied customers. In this package also, ICL has launched several travel schemes, including EMI scheme for hassle free travel, for our esteemed customers”.

ICL Builders “ ICL Builders has ventured into this field to provide new building methods, world class amenities and real value for the investment of its customers. Within a short period ICL Builders occupied a prominent space in the realty business. We are concentrating in villa projects with high class living standards. Initially our proj-

ects will be launched at Arkonam in Chennai and Thrissur in Kerala.”

‘ICL has impeccable HR policies and strategies’ ‘’ ICL has very good HR plans and strategies, “ said Lekha Ajith HR Manager. “ All our branches are net worked and we have highly qualified and trained work force suitable for each areas. We always keep employees stand by for five branches at least by giving them rigorous training. It is a hard task to manage around 300 employees in an NBFC company like ICL without pragmatic and highly professional HR policies.

Our team is well- equipped for achieving our management goals and targets by the end of 2020,” she added.

Fan of APJ Abdul Kalam “Our former President late APJ Abdul Kalam’s thoughts and speeches always motivated me, says Uma adding that his appeal to the youngsters in the country was to dream sky high always to achieve at least something commendable. It is very true in my case as I always dreamt high that eventually ended in fulfilling some of my wishes. As our Managing Director Anil Kumar told you I am just three years being in the affairs of ICL. I was totally a house maker with two children.

But my inner self always urged

me to do something beneficial for society at large. I slowly started attending the office but to my surprise within no time I could prove my mettle in overall administration of the company and my husband entrusted me the whole charge of administration and made me the Finance Director of the company. Business like ours is survived with the trust and promptness. Not only ours , all NBFCs are like that only. I am prepared always to be available for the service of our customers so that my working time is flexible. it will end up even in midnight perhaps. Reason: we have a new toll – free number now.

So I have to attend phone calls even from abroad late night. We can’t insist the time for the calls at our convenience. I am enjoying it. But the only worry is that I am not available for my children whenever they needed me. We have two children, Amaljith A Menon and Krishnendu A Menon. Son is in 12th standard and daughter is in 8th. Anil and I are trying our level best to be with them whenever we are able to do so.” ``Amassing wealth is not the only mission in our life. Though my parents are very rich and I hail from rich family, I always have fondness towards the downtrodden and poor people. I am not talking tall myself . Even from childhood days I was a generous girl. I always care my friends

those who come to school from poor families sharing them my pocket money and dresses. Now God has given me an opportunity to do something to the poor and orphan. I am heading ICL Cultural and Charitable Trust , which is an offshoot of our parent company , exclusively for social service. Our group is already sponsoring a number of children for their study needs as well as for their livelihood. I love older people very much. My husband Anilkumar’s parents are still alive and I love to care them whenever I get time . It is my ambition to start an old age home and ‘Pakal veedu’ for aged and the work is progressing at tremendous pace to fulfill it. It is not like any other old age homes we used to see with shabby surrounding and mismanagement. It will be a state- of- the- art one with all the facilities including doctor, nurse , ambulance etc for caring the hapless one. Our family will have a room to stay with the inmates.

Whenever we want to be with them we will be with them and dine together. By God’s grace my husband and children are also kindhearted, particularly my daughter.” ``ICL ‘s growth was all on a sudden. God has given us plenty and almost all our dreams came true.

I am sure that our dream for Vision 2020 can easily be achieved with our hard work and God’s grace”.

Vision

“Our vision is to brand ourselves globally and become the most preferred and trusted financial institution, excelling in the customer service delivery through committed, caring and empowered employees.”

Nov 15 - Dec 15, 2015

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ECONOMY

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World Trade Organization K Vijayachandran

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The failure to deliver

two-day National Conference was organized by the Institute for Studies in Industrial Development (ISID) and their affiliates on September 22-23 on the theme, WTO Negotiations, Free Trade and Investment: Implications for Development Policy Space: It was held in the well-equipped conference hall of ISID at Vasant Kunj and attended by some eighty delegates from professional bodies, NGOs and Trade Unions. This writer was invited to the conference as an observer.

World Trade Organization (WTO) was founded on January 1, 1995 in the unipolar environment, soon after the dissolution of USSR and the demise of socialist camp. United Nations Conference for Trade and Development (UNCTAD), established in 1964 under the initiative of G77, was its harbinger: WTO has been trying to develop a global market economy, jointly with the International Monetary Fund (IMF) and World Bank. This TRIO, independent of the UN System and its Security Council, is held together by the developed countries and the Organization for Economic Cooperation and Development (OECD).

How far the concept, framework and practice of WTO could succeed in achieving the declared objective of building an orderly global economy, during the last two decades, is planned to be examined by the 10th Ministerial Conference of its 161 member countries, scheduled for December 2015, at Nairobi. The issues to be hammered out in the Ministerial Conference are being finalized in the Doha rounds of consultations among various interest groups. ISID conference was organized in this backdrop, PASSLINE

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and mainly intended to articulate Indian concerns about the new round of regulations that are being proposed for the WTO meet by the year end.

nomic Partnership (RCEP) with the ten ASEAN Countries plus Australia, China, India, Japan, the Republic of Korea and New Zealand.

sessment studies especially from a human rights or development perspective. Neither is there parliamentary oversight, or consultation with state governments.

The conference was over-represented by Delhi-based institutions and experts. There were one

…..Another mega FTA, the Trans-Pacific Partnership Agreement (TPP) is being used as a

…..What is at stake are livelihoods, incomes and labour rights; agriculture, seeds and the right to food; access to affordable medicines; environmental protection; access to essential services such as health, education, water, and energy; conservation and peoples control over natural resources.”

And, we may add to this long listing: collapse of the manufacturing sector, chaotic roads and power systems, break-down of infrastructure in general, farmer suicides, rapid increase in crime rates, galloping corruption, and rapid decline in the quality of governance all around. In brief, WTO was being used as an instrument for forcing down the unwilling throats of our people all sorts Free Trade Agreements, without any rhyme or reason.

or two foreign delegates, but participation by mass organizations, rural communities and non-Delhi states was scanty. Geographical vastnesses as well as cultural diversity of our country inhibit national movements but our elite classes continue to underestimate the gravity of this bottleneck.

Nevertheless, the conference papers presented as well as the discussions thereon were reflective of the larger Indian concerns.

The statistical data and information revealed in the conference intro-paper, circulated by the Secretary General of ISID, were quite disquieting: “India has signed some 14 FTAs and is negotiating 16 more. The most controversial amongst these include the EU-India FTA and the Regional Comprehensive Eco-

benchmark for standards on IP and this will have an impact on RCEP and other FTAs. With the growing coverage of trade agreements spanning agriculture, industry, services, intellectual property, investment, government procurement and other areas, the interactions between provisions in the sector/area and specific liberalization policies are becoming more complex.

These interactions have to be fully understood for their likely impacts on future policy space… ….Further India’s trade policy continues to be undemocratic and opaque, especially in case of FTAs and BITs. Negotiating texts are secret, consultations with affected groups are limited to the big industry bodies, and there are no publicly available impact as-

Picture at the global level was not different according to the ISID report: “…trade and investment landscape has expanded in the past two decades in a big way through the execution of FTAs. As of 2015, some 406 Free Trade Agreements (FTAs) are in force according to the WTO. Further, UNCTAD estimates that there are more than 2200 Bilateral Investment Treaties (BITs) currently operational…ability of national governments to pursue independent macro-economic and development policies on a range of issues from agriculture, industry, services and the environment has been compromised. Global institutions and forums are today crucial in determining people’s access to decent jobs, incomes, food, essential services and natural resources.”

9 It is, now, more than obvious: Attempts to regulate and expand the global economy in a crisisfree manner through Free Trade Agreements under the supervision of WTO have proved to be grand failure. The current year (2015) report of ILO on World Employment and Social Outlook had noted that the global economy had failed to recover the output levels of pre-crisis trends: “Employment creation is still not sufficient to close the jobs gap that opened up with the crisis.

Indeed, there were more than 61 million fewer jobs in 2014 than would have been expected had the crisis not struck….. ….Global

employment

grew

at an average annual rate of 1.7 per cent between 1991 and 2007.

However, since the outbreak of the economic crisis, employment growth has slowed to 1.2 per cent per annum between 2007 and 2014. On current trends, unemployment will continue to rise as the labour force expands. Going forward, job creation is expected to remain at this lower growth rate over the medium term, causing a widening of the global jobs gap to around 82 million jobs in 2019.

If new labour market entrants are taken into account, 280 million jobs will need to be created over the coming five years to close the crisis-related global jobs gap and to absorb the increase in the labour force.”

Trade and Development Report of UNCTAD of 2014 (50th Anniversary) had made this important observation: “…Markets require a framework of rules, restraints and norms to operate effectively.

As such, the market economy is

indirect if not the direct consequences of the conquest of policy spaces in developing countries, using WTO as a cover.

Under the direct and indirect impact of WTO, India’s education system is in a total crisis, today:

Political economy of Greece, the citadel of millenniums old civilization, is under serious repair: With two-thirds of its people voting against economic policies, its political economy had collapsed contributing to the rapidly swelling ranks of refugees in Europe. Reports by the UN High Commission for Refugees (UNHCR) indicate that the number of refugees under its care has already crossed the post-war record of 60 millions. always embedded in a legal, social and cultural setting, and is sustained by political forces. How

and to what extent the framework of rules and regulations is loosened or tightened is part of a complex political process specific to each society, but it cannot be dispensed with without threatening a breakdown of the wider economic and social order.”

In fact, this sort of breakdown of economic and social order or breakdown of political economies of nation-states has been widespread among the developing countries of almost all continents. Destabilization of the state, internal strife, stage-managed colour revolutions, military interventions and cultural invasions, all reminiscent of the trade expansion through colonial wars of the earlier centuries, were the

With the spread of English medium, starting from KG and pri-

mary, we have shifted away from the time-tested culture of neighbourhood schools. Quality education is a luxury and perceived as a passport for migration: anarchy prevails at all levels, starting from KG classes. Worst is yet to come, according to a campaign paper presented in the Delhi Convention, by All India Forum for Right to Education (AIFRTE): “The offer of ‘Market Access’ to higher education under General Agreement of Trade in Services (GATS) will turnout to be a commitment in perpetuity”.

Political economies of several Afro-Asian and Latin American countries have collapsed under the impact of mindless globalization presided over by WTO. Political economies, the Southern

partners of EU, are under strain.

Political economy of Greece, the citadel of millenniums old civilization, is under serious repair: With two-thirds of its people voting against economic policies, its political economy had collapsed contributing to the rapidly swelling ranks of refugees in Europe.

Reports by the UN High Commission for Refugees (UNHCR) indicate that the number of refugees under its care has already crossed the post-war record of 60 millions.

The desire for cultural autonomy of nationalities and nation-states is quite logical and legitimate: Peaceful coexistence and mutual cooperation are the basic building bricks of UNO: But the tempo of globalization forced on the member countries, using the WTO mechanism, is being resisted today not only by developing countries but even by developed countries. Even the United Kingdom of Great Britain is facing dissent from within: People of Scotland have won their demand for autonomy and the new leader of Labour Party has announced several policy initiatives to strengthen the local governments.

WTO has failed in delivering its commitments to the global community. The promise of accelerating global economic development through free trade, FTA etc has not been fulfilled. It has failed in ensuring the optimum use of the technologies already available. Its contribution to improve work participation rates and creating new jobs has been negative. It has disrupted the political economy of several nation-states, creating a massive refugee problem reminiscent of the post-war years.

UNO and the several institutions created under it for mutual cooperation among its members have been rendered dysfunctional during the two decades of WTO. There are hardly any statistics or logic in support of its continued existence. It is time to think of getting back to the UNCTAD days and winding up this white elephant.

Nov 15 - Dec 15, 2015

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Passline News Service

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y enlisting ESAF Microfinance in the RBI ‘s maiden list of 10 ‘small finance banks’ in India, Kerala has reached yet another milestone in banking. ESAF Microfinance which is in the 14th place in Global ranking and 4th in the National ranking is the first NBFC from the State getting the ‘small finance banking’ licence in 1992 to start ESAF society as an NGO. In 1995, ESAF Microfinance became operational under Micro Enterprises Development Project. Ecstatic Chairman and Managing Director of ESAF Microfinance, K Paul Thomas, told Passline, “for ESAF this is an extension from being an RBI- approved NBFC to the status of a bank. We take this as our first step on our way to become a reputed banking institution. I know that we still have a long way to go but I am confident that the full team of ESAF will be equal to the task of countering future challenges.” Paul Thomas was influenced by the Gramin model of lending designed by the Nobel Laureate Prof Muhammad Yunus; and modified the Gramin model clubbing joint liability group of four to five members borrowing from EMFIL. Started in a humble way at Mannuthy , Thrissur district, ESAF ( Evangelical Social Action Forum) aims to empower the rural people who have been left marginalized by the new economic status. So far ESAF has enriched the lives of more than 7,50,000 poor rural folk of India spread across 9 states and 74

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districts to help themselves create a better socio- economic order for themselves. Today, ESAF has presence in Kerala, Tamil Nadu, Maharashtra, Madhya Pradesh, Chhattisgarh, Karnataka, Jharkhand, West Bengal, Bihar and Pondicherry. “ We impart traini n g for the women to sec u r e selfe m ployment a n d K. Paul Thomas a l s o help them market their finished products by eliminating the middlemen. This paved the way for the very existence of ESAF in north Indian states. At present we have 224 offices and 2,500 employees. We have given financial support to nearly 8 lakh women.

We are the implementing agency for the Swalambhan Yojana National Pension Scheme; and the responsibility of implementing Sanchar Sakthi Programme was also entrusted to ESAF. We are sure that the recognition of ESAF in principle for the commencement of ‘small finance bank ‘ is the honour for ESAF for its financial intervention among the

poorest of poor in the country,” said Paul Thomas.

“We are sure that we can fulfill all the nitty-gritty and specifications of RBI for forming a ‘ small finance bank’ within 18 months.

After becoming ‘small finance bank’ , we can function like any other bank in the country . The only rider in the RBI order is we have to keep half of our loan portfolio below Rs 25 lakh. When we get the final nod from the RBI we will start branches in villages aiming maximum intervention for the financial need of poor people,” Paul Thomas added . Along with the microfinance, ESAF is actively participating in social service too. ESAF is running 30 schools for the poor and downtrodden children in Jharkhand.

Many International agencies took ESAF’s services as their case study.

The services of ESAF are being funded by renowned financial houses and government agencies of the country. Including NABARD, there are 45 financial institutions funding ESAF. DIYA Vikas Capital, the subsidiary of Opportunity International, Australia, and Manaveeya Holdings, the subsidiary of Oiko Credit International, Netherlands, have equity partnership in ESAF microfinance. The organization has won several recognitions like Micro Insurance Award instituted by ING Netherlands and Planet Finance in 2007; received the prestigious MF transparency award in recognition of ESAF Microfinance’s commitment to transparent pricing in 2013, STAR MFI - Socially Transparent and Responsible MFI from Mix Market in 2014, Truelift Aspirant certificate for developing systems adhering to pro-poor principles from Truelift, USA; Disability Inclusion Award in 2014 and European Microfinance Award in 2014. Paul Thomas bagged the Emerging Entrepreneur of the year award from TIE-Kerala in 2014.

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ACHIEVEMENT

12

Faizal Khan

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13 Passline News Service

H

ow far a medical institution, that too from a village, can grow ? It can grow beyond the boundaries. NIMS Medicity at Neyyattinkara in Thiruvananthapuram district is an example.

Its promoters have a different outlook in the management of the institution. Unlike other hospital managements, their prime motive is to render yeoman service to the community particularly to the downtrodden. No wonder that hardly within a decade of its existence, NIMS Medicity has become a class hospital among its peers in South India for the state- of-the art facilities and contributions towards health care.

The accolades and admirations have been pouring upon the institution. But the recent achievement is the father of all others and also envious. NIMS findings on cardiac surgery by using green energy were much acclaimed world over and endorsed by the UN Organization to be adopted by its member-countries. Now this hospital is formulating new schemes and measures which have to be watched and followed. Thus, NIMS set a record to notch a place in the medical map of the world.

NIMS Medicity has become a role model for the health care industry by using green energy in their cardiac catheterization laboratory. In a classic example of how to harness solar energy for industrial purposes, Mitraa Samyoga Energy, an industrial entity under Noorul Islam Group of Institutions, has established a 130 kw solar power plant as phase one expanding to 500 kw in NIMS Medicity, the 350 –bedded super speciality hospital under the Group.

Electricity generated from the solar plant, sprawling over 22,000 sq ft area in the 20- acre hospital campus will be used to empower the cardiac catheterization lab making it Asia’s first Green Cardiac Catheterization Lab. The world has recognized the institution by providing an opportunity to Faizal Khan, young and dynamic Managing Director of NIMS Medicity, and Pro-Chancellor, Noorul Islam University, to participate as a key speaker at the recently held UN conference on sustainable energy for all in New York. He presented the case study on NIMS Medicity’s success in using renewable sources of energy for empowering health interventions. He vividly highlighted the solar cell installations which constitute the principal sources of energy supply, ushering in uninterrupted power supply thereby enabling NIMS Medicity to avoid problems caused by intermittent power cuts of the national power grid and thereby grant extension of life to thousands of patients who count on NIMS Medicity’s impeccable medical treatment. He also talked about NIMS Medicity’s determination to diversify renewable sources of energy by opting for wind energy as an additional source.

To this end, NIMS developed a new device based on vertical axis-based wind mill which rotates even if the wind blows at very slow speed. NIMS endeavours to scale up and replicates the device for making optimal use of wind flow in NIMS. Faizal Khan’s candid presentation was highly commented and his rapt attention and apt response to questions were highly appreciated by the participants and organizers of the Conference.

As a mark of appreciation, the organizers gave him a unique opportunity to be at the podium of the concluding session held in the UN General Assembly Hall. During the session, he focused on viable avenues of replicating NIMS Medicity’s best practice with practical insight and foresight.

Faizal Khan, the son of Dr A P Majeed Khan who made Noorul Islam Educational Trust a university with high UGC recognition; and the owner of a big business net work leads a humble life style though he became a person of global repute with the presentation of the theme in UN. He became the third Malayalee in the league of Dr Sasi Tharoor, E Ahmed, who have spoken in UN General Assembly; and Faisal Khan appeared in UN without any endorsement of Central government or any state government or Indian Ambassador. Faizal Khan opens his mind to Passline about the project conception and his experiences in UN below....

Modi the inspiration `` I thought only of introducing an exemplary project run by means of sustainable energy. It was serendipity that I was selected to present the subject in the General Assembly. With the takeover of the project by UN, NIMS has got the privilege of implementing the scheme in other countries like Africa facing power shortage. Obviously, it is the Prime Minister Narendra Modi who was the inspiring force to launch the project. As reported in newspaper that while Modi was the Gujarat Chief Minister he used the solar power in industrial houses only to light the bulbs and rotate the fan. No one tried to distribute power from or operate any high power machine. Instead of making thousand houses solar installed it is ideal to distribute solar power to 10,000 homes from a single grid. If it became reality it will help to make aware people and other industrialists about the wide possibilities of hybrid renewable energy.

That made us to use renewable energy to perform the intricate heart surgeries in NIMS by means of solar powered catheterization lab”.

Nov 15 - Dec 15, 2015

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A game of life and death “The technology used by Mitraa Samyoga was developed under the guidance of Padma Vibhushan Dr G Madhavan Nair, former ISRO Chairman, who cautioned of the risk involved if the machine became defunct or defaulted power supply threatening life span leading to jail term for the promoters; and advocated a new technology. As per his suggestion, students of the Noorul Islam University became a part of the project. The technology enables direct connection of solar power to the grid eliminating the need for storage batteries. This reduces the overall cost of investment and maintenance. The advantage of such a mechanism is that the organizations could fully utilize the last watt of power generated from the Sun. Overall delivery efficiency is better under this mechanism, compared to many other existing ones. No other hospitals in Asia dared fully to depend on solar energy to function their equipment. That compelled us to find our own way to proceed further. Ultimately, we found a company from Gujarat who liked our project and reached the hospital with the solar equipment. Consequently, Mitraa Samyoga Energy Pvt Ltd forayed into solar energy consulting and implementing large scale industrial projects.

New challenges ``We met KINFRA MD Gopala Pilla to talk about the inauguration of the catheterization lab. The virtual question by him, about the sun setting by 6.30 pm and whether such an innovative project is made for that 12 hours only, opened our eyes because surgeries are performed at nights also. His apt question enlightened us to think of wind energy and wind mill to run the catheter lab. We can generate power from wind mills; but ordinary wind mills will function only by strong wind and those wind mills are in horizontal axis. The wind mills with vertical axis will rotate even with a feeble breeze. We approached a Coimbatore party who arranged China-made wind mills as required by PASSLINE

Nov 15 - Dec 15, 2015

us and connected 10 wind mills with catheter lab. This was fixed with solar panels by means of hybrid technology. Hence, even after sun set power can be available for catheter lab functioning by means of wind energy. Thus, NIMS hospital became the first hospital in Asia having hybrid renewable energy catheter lab”, reminisces Faizal Khan.

Officials visit “Former UN official Dr Japamani and conventional energy expert K Damodaran happened to be at the hospital. They monitored the project details and prepared a note which was sent to UN. Interested in the project, UN Under Secretary General Kandeh Kolleth Yumkella landed at the hospital during his tour of India.

Later, a letter from UN addressed to Aralum Mood P O, Neyattinkara, hinted about the selection and extended the invitation via email to attend the conference of UN to present the topic. Total 12 countries attended. India represented by one. In an eight member- panel my turn was the last. The countries like Barcelona, England, Spain, Italy presented their topic describing the ways and means of converting renewable energy into electricity by dint of modern technology, Neither of these was in vogue; but to be tested in future”.

India’s presentation “I was allowed five- minute talk on how to use catheter equipment to perform heart surgery by using renewable energy. Hardly the talk ended when questions were galore. How did you execute the project?

What are the machines? What’s the technology etc? Britons ridiculed the mechanism. Barcelona queried its technology. UN authorities also posted some questions while confirming my presence for the next UN assembly to be held the other day”.

15 The D - Day “The D-Day I reached the UN General Assembly hall. After undergoing tight security check entered the UN mansion. In the conference hall, several country heads are seated. As soon as I occupied the rear row then the UN Undersecretary approached and quipped about the chance of the project to be selected. The session of PMs and Energy Ministers concluded following ambassadors’ meeting. Then the presentation meet on `sustainable energy for all,’ the theme adopted at the previous UN international meet; started. Loudspeakers blared the names of the countries Barcelona, Italy, America…India. The voice `India’ allured me because I got the chance on behalf of my country to present the project in the Global legislative assembly. Even before the euphoria settled down the voice uttered` you may present your theme in the UN stage for two minutes…get ready’. The scribbled note of presentation was handed over to the Censor committee. With their nod only the note can be read. They deleted the State’s name, village name, hospital name and briefed to speak out on energy project only. With the pounding heart of a school boy at his final exam ‘I boarded the podium often adorned by world leaders like US presidents and with the soliloquy `for my country’ read the note. The elite audience hailed the words with prolonged applause.

NIMS’ energy project received UN approbation forthwith. Thereto, if any country approaches UN for sustainable energy project our project will be among the first four projects to be submitted. This historic feat showcases India’s capability on par with other developed countries on the energy front. Also, UN’s financial aid will also be extended to other countries for executing such project.”

A word of gratitude “It was the urge to do something exemplary to the world that led me to accomplish the feat. We spent two years on this project. Trial run

began in 2014. NIMS Heart Foundation head Dr Madhu Nair along with the electricians at Neyyattinkara was the team behind the project.

Solar scam poured cold water on the morale of the functionaries. Solar turned a sarcastic word then. Gandhi Memorial Foundation Chairman Gopinathan Nair extended unstinted support to our effort and my father Dr Majid Khan instilled the spirit to go ahead. The compliance and prayer of all well- wishers at Neyyattinkara village reached the project to UN. Charismatic politician Sasi Tharoor MP’s tweet went viral over the world through Twitter and Face Book heralding NIMS’ achievement”.

Satellite to forecast calamities “ We are on the anvil of making a satellite to forecast the natural calamities like Tsunami and earthquake; and also for the studies regarding fishing by this satellite. Renowned scientists including A E Muthunayakam and the students of Noorul Islam University are associating for this project. The project needs crores of rupees as expense for which NASA is readily agreed to extend all its support.

For launching the satellite in India, Sriharikotta launching station has given the time. Thus the Noorul Islam University will adorn the cap of the first university in India which launches the satellite.” .

Biogas electricity “NIMS is also to add another achievement to its credit. It is to produce electricity from biogas. It requires abundant bio-waste and giant gas cylinders. Hospitals, like NIMS, are likely to get electricity for three hours generated from this gas.

Free casualty treatment ``It is the policy of my father insisting on a charity wing with any new department opened. When I felt that it is meaningless to acquire foreign fund for charity purposes I launched `Sahyadiri’ mineral water plant. Purified water will be sold in the brand name of `Sahyadiri’. Its whole profit is utilized to help the marginalised. Now, there is a move to make casualty treatment free in all hospitals like NIMS hospital where as MD of the hospital I take the responsibility of any patient without a standby. Emergency life-saving treatment costing lakhs of rupees will be done free. First priority is however to save the life. This scheme named `Raksha’ is a challenge to other hospitals. Casualty treatment is the right of the victim. It is worthless to insist on remitting fixed amount for the treatment. All hospitals must adhere to the norm.

NIMS aims to install first-aid boxes at all vulnerable points and give training to people,” recollects Faizal Khan.

Faizal Khan - proud son and ardent follower of his father

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he great visionary and venture-some Dr A P Majid Khan never dreamt that one day he will carve a niche in the education and health care sector when he started an Industrial Training Institute(ITI) at Neyyattinkara way back in 1956. His hard work and insight has brought remarkable change in the sector. Today he reigns over a dozen educational and healthcare institutions spread over Kerala and the Southern districts of Tamil Nadu. His son and Managing Director of NIMS group of institutions Faizal Khan had kept the lamp, lit by his father, burning more brighter. The growth and progress of the group which we witness today has happened only because of his able stewardship and his team members’ hard work. The group always cares the down- trodden and poor in society right from its inception; and Faizal Khan thoroughly believes that whatever milestone the group has reached so far is only because of the strong commitment to the poor and weaker sections in society.

Dr A P Majid Khan

Family: Faizal and family stay near NIMS Medicity. Kasargod native Mijas is his wife. Suhara and Sohaib are children

Nov 15 - Dec 15, 2015

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IN PERSPECTIVE

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lobally, inflation is at very low levels.

In fact, in most developed countries the real V K Vijayakumar problem now is deflation. This very low level of inflation is likely to continue for the foreseeable future. India has been experiencing high levels of inflation, particularly during 2011 to 2013. Now inflation is trending down. CPI inflation, which was 10% in 2012, is now at 3.66%. WPI inflation is negative for 10 months in a row. The decline in inflation is mainly due to the crash in commodity prices and partly due to the anti-inflationary monetary policy which the RBI has been following for an extended period of time.

The decline in inflation has emboldened the RBI to cut interest rates. Repo rate (the rate at which RBI lends money to commercial banks) has been cut by 125 bp (1.25%) in four rate cuts this year. Banks have not passed on the benefits of rate cuts completely to the borrowers. This is mainly because, the banking sector, particularly the PSU banks, are saddled with huge NPAs. It is the poor asset quality of the banking system that is standing in the way of monetary transmission.

Since the banks have reduced the interest rates on vehicle and housing loans, borrowers will benefit. Interest is the cost of capital.

When interest rates come down, consumption and investment will PASSLINE

increase. Lower interest rates will to note that decline in inflation MIPs over the last 3 and 5 year stimulate the economy through doesn’t mean that prices are com- periods. higher consumption demand and ing down: it only means that the Apart from yielding superior rehigher investment. This is the rate at which prices are increas- turns, MIPs are highly tax-effieconomic logic of rate cut. ing is coming down. So, how can cient. The long term tax rate (if But, there is a section of the pop- savers manage this difficult situ- held for minimum 36 months) ulation that will be adversely af- ation of declining interest rates is only 10 % without indexation and 20 % with indexation. Infected by the rate cut. These are and increasing cost of living? the savers who will be getting Most of the households put money dexation allows the investors to lower interest on their deposits. in bank deposits to yield a regular nullify the effects of inflation.

Already the interest rates on 1 and dependable return. Bank de- For instance, if the return from year deposits have been reduced posits are the favored asset class investment is 10 % and inflation 29 to 7.75 % by most banks. Econo- of large number of senior citi- during the period is 7 %, then the mists argue, and rightly so, that it zens. This group of savers should 20 % tax need be paid only on the inflation doesn’t mean that prices are comingnow down: it only means theclasses rate at which prices return (10-7= 3). Thus deflated consider other that asset is the real interest rate that matter. are increasing is coming down. So, how can savers manage this difficult situation of the declining effective tax liability of the Real interest rate is nominal rate that yield similar or better returns. interest rates and increasing cost of living? tax payer will be only 0.6 %. This minus inflation. Real rates are Investment in debt mutual funds is highly attractive, particularly betterthe now thanpattern they were 3 years is an attractive investment option.

Change saving ago. In 2012the 1 year deposit The level of awareness about for tax payers in the high income taxreturn. bracket. A tax payer in the Most the households in bank these deposits to yieldisa very regular and dependable products low. rateofwas around 9 put % money and infla% tax bracket will get a postBank favored number seniorsuperior citizens. returns This group 30 of savers People whoofneed tiondeposits was 10are%.theThus realasset rateclass wasof large tax return should now consider other asset classes that yield similar or better returns.

Investment in debt of only 5.65 % on his negative: (9-10= -1). Now CPI can consider investing in debt 1 year mutual fundsisis3.66 an attractive The level awareness aboutgood these products is bank deposit (7.75-2.1= funds.

Debtof funds yield inflation % and 1investment year de-option. very low.rate has come down to 7.75 returns when interest rates are 5.65%) while he will get around posit 9.4 % post-tax return on his MIP trending down.

The superior re- yield good %. Thus real superior rate is: returns 7.75- 3.66= People who need can consider investing in debt funds.

Debt funds if it yields 10 % return during the are duereturns to thearerising 4.09.when Therefore, it can argueddown.turns returns interest rates arebe trending The superior due to price the risinginvestment price of period of more than of bonds. prices move in- income may that depositors better off now, bonds.

(Bond pricesare move inversely to interest rates.) (Bond People who need regular 3 years. The disadvantage of the versely to funds interest People80 % of their than they were twoIncome yearsPlans). ago, These consider MIPs (Monthly are debt thatrates.) invest around MIP is that if the investor opts for who need regular income when nominal rates were higher. corpus in high quality bonds and debentures. The balance 20 % is invested inmay blue chip stocksmonthly payments, it will regular consider Income But is poor consolation for The that givethis superior returns in the long run. followingMIPs table (Monthly shows the average annual returns attract dividend distribution tax. theMIPs savers, particularly elderly from over the last 3 and 5 year periods.Plans). These are debt funds that This will lower the return. MIPs invest around 80 % of their cor- are highly attractive for investors Scheme HDFC MIP- LTP Growth RIL MIP- Growth ICICI Pru MIP 25-Growth Franklin India MIP- Growth Birla Sunlife MIP 11- Growth

3 year return % 12.39 12.19 13.04 13.01 15.48

5 year return % 9.48 9.87 10.42 10.18 11.16

who can lock in the funds for a minimum 3-year period.

Therefore, savers who depend on their interest income may consider switching a part of their deposits to MIPs or other debt retired people, who depend on pus in high quality bonds and funds that can yield superior reApart from yielding superior returns, MIPs debentures.

The 20 long%term rate (if The balance is taxturns. their interest income for living. are highly tax-efficient.

This will compensate for held for minimum 36 months) is only 10 invested % withoutinindexation and 20 % with indexation. blue chip stocks that the lower interest income from For them, the absolute monthly Indexation allows the investors to nullify thegive of inflation.

For instance, if the return from returns in the long returns will be lower and the de- effectssuperior bank deposits. investment is 10 % and inflation during the period is 7 %, then the 20 % tax need be paid only on run.

The following table shows cline in inflation is not reflecting (Dr Vijayakumar is Investment the deflated return (10-7= 3). Thus the effective tax liability of the tax payer will be only 0.6 %. in lower prices. It is important the average annual returns from Strategist, Geojit BNP Paribas) This is highly attractive, particularly for tax payers in the high income tax bracket. A tax payer in 30 % tax bracket will get a post-tax return of only 5.65 % on his 1 year bank deposit (7.752.1= 5.65%) while he will get around 9.4 % post-tax return on his MIP if it yields 10 % return during the investment period of more than 3 years. The disadvantage of the MIP is that if the

Nov 15 - Dec 15, 2015 the

PROPOSALS

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t the onset of the United Nations turning 70, former Indian Ambassador to the T P Sreenivasan UN T P Sreenivasan, lists 10 things in which the UN needs to become more relevant and effective. According to him, “ the credibility of the UN has been eroded by the fact that the Security Council does not represent the political realities of the world today”. The ambassador shares a few thoughts with the readers to improve the state of affairs at the UN. Reform the Security Council The 50th and the 60th anniversary of the UN have passed without any meaningful Security Council reform and the 70th does not hold any promise. The exercise that began in 1979 on the initiative of India is still bogged down not only by the P-5, who want to preserve their privileged positions but also by many others, who do not want to accept the reality of the current geopolitical scene. Today, there is no formula, which can command the number of votes necessary to amend the charter to expand the Security Council.

Moreover, in a recent communication, China, the United States and Russia have indicated their position that they are not in favour of a meaningful expansion.

But, if this is prolonged, sidelining of the UN and even the emergence of a rival organisation cannot be ruled out. It is reform or perish for the UN! Abolish the veto The veto is the most controversial attribute of the permanent members, which has brought the UN a bad name. There have been occasions when a single vote has reversed the will of the entire international community.

Vetoes have been cast to legitimise unjustifiable actions by the permanent members or to protect friends and allies. The decisions of the Security Council should be taken on the basis of a 2/3 majority of the membership without any veto.

Make election of the SecretaryGeneral transparent & democratic The present system of selection rather than election of the Secretary-General leaves much to be desired. The P-5 normally go for the most pliable person with a ‘butler image,’ not necessarily the most energetic, imaginative or efficient person and expect him to serve their interests, rather than of the entire membership.

The mysterious emergence of an acceptable candidate from the Security Council and his automatic endorsement by the General Assembly make the whole process undemocratic. The Security Council should appoint a search committee and suggest three names to the General Assembly to choose from after they place their agenda before the general membership.

The best man or woman should be found without rotational blessings. Only the General Assembly should have the power to change the Secretary-General. The Secretary-General should have a single term of six years so that he does not spend the first term to please those who can get him a second term.

Strengthen the General Assembly The General Assembly is the only universal body of the UN, which has become ritualistic because of its inability to enforce its decisions. Its agenda has also become unwieldy, as it is easier to add items rather than delete them from it.

The agenda should be rationalised in clusters and considered

together, if they cannot be eliminated. There should be a mechanism of penalties to members for repeated defiance of the General Assembly. Repetitive statements should be avoided and time and money should be saved on conference hours. More restrictions must be imposed on length of speeches and documents.

Make financial contributions for development mandatory on the basis of capacity to pay, not voluntary Financing for development never reaches targets as they are voluntary in nature. Unpredictability of funds and reduction of contributions from year to year have made development activities shrink.

Development financing should be mandatory like contributions to the UN budget, fixed on the basis of capacity to pay, as voluntary funding is used to control activities or to direct them to activities of interest to the donors.

Make members commit troops to the UN, which can be deployed at short notice Peacekeeping has become one of the major activities of the UN, which has a bearing on international peace and security. But the mounting of operations is cumbersome and time consuming as member states take time to make troops available.

A standing force for the UN is unacceptable, but member States should earmark and equip peacekeeping units, so that they can be deployed at short notice.

The troop contributing countries should be consulted at every stage. Payment of compensation for casualties should be the same for all nationalities.

Withdraw peacekeeping operations, which have become outdated and irrelevant Some of the peacekeeping operations are maintained simply because of the insistence of one party or the other, even after their

relevance has diminished. The United Nations Military Observer Group in India and Pakistan is a case in point. It should have been withdrawn when the two parties converted the cease-fire line to the Line of Control. Such sunset operations must be identified and withdrawn to reduce cost and to enhance the value of current operations.

Eliminate UN bodies which have either lost their relevance or become uneconomical Some UN bodies are less relevant today than before, but they are maintained, while new bodies do not receive adequate financing and personnel. A review is necessary to identify such bodies and to streamline them.

Remove the national quotas for recruitment to the Secretariat The efficiency of the Secretariat is affected by the requirement that all member states should be represented. Nationality, rather than competence, becomes the criterion for selection. A transparent and non-discriminatory recruitment and promotion system should be devised.

Reduce strength of Secretariat personnel to the barest minimum When then secretary-general Boutros Boutros-Ghali was asked as to how many people worked at the UN, he said, ‘about half.’

The situation seems to remain the same even today. An exercise should be undertaken system wide to study the workload and to eliminate unnecessary posts.

Appointment of consultants and casual staff should also be reviewed.

(T P Sreenivasan is a former Ambassador of India to the United Nations and Governor for India at the IAEA; Executive ViceChairman, Kerala State Higher Education Council and Director General, Kerala International Centre).

Nov 15 15 -- Dec Dec 15, 15,2015 2015 Nov

PA AS SS SL LI IN NE E P

ISSUES

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INDIA-EU FTA: Time for a fundamental rethink?

Considered as India’s most ambitious bilateral pact, the IndiaEU FTA is marred with contentious and controversial issues.

By Kavaljit Singh ndia and EU would soon resume negotiations on the stalled India-EU free trade agreement. In a joint statement issued by Prime Minister Narendra Modi and German Chancellor Angela Merkel in New Delhi recently, both leaders expressed their “strong commitment to the EU-India Broad Based Trade and Investment Agreement and committed to bring about a resumption of the negotiations as soon as possible.” With political leadership now backing the proposed agreement, the trade negotiators will sit down at the table again to thrash out the remaining issues.

I

The joint statement was released just hours before the US, Japan and 10 other Pacific Rim nations reached final agreement on the Trans-Pacific Partnership (TPP), the largest regional trade pact in history as these economies together account for 40% of global GDP and one third of world trade.

Like the TPP, India-EU

FTA has undergone more than dozen rounds of negotiations between 2007 and 2013. Thereafter, a change of government in Delhi as well as EU’s negotiations with the US on Transatlantic Trade and Investment Partnership agreePASSLINE

Nov 15 - Dec 15, 2015

ment delayed the negotiating process. The negotiations were expected to resume this year but got stalled in August 2015 when the EU imposed a ban on the sale of 700 drugs clinically tested by GVK Biosciences, an Indian drug company.

Highly ambitious accord In the case of India, the proposed FTA with EU is the most ambitious bilateral pact as it covers

much public scrutiny. In India, civil society groups as well as business associations (such as Society of Indian Automobile Manufactures – representing car and vehicle industry) have expressed concerns over this agreement being negotiated in deep secret and lack of public consultations.

EU’s broad-based agenda

The proposed agreement has been facing hurdles on sev-

Currently the EU does not offer a work permit with validity for the entire EU. India is also seeking 50000 extra working visas a year for its citizens but the EU is unlikely to accept this demand due to higher youth unemployment rate, which reached 23% in 2013. In addition, New Delhi wants the EU to recognize India as a “data secure” nation which would immensely help the country’s IT industry to gain greater access to the European markets. But the EU is unlikely to accept this demand. higher levels of commitments in trade in industrial goods and agricultural products, services and investment liberalisation, intellectual property rights and government procurement. In comparison, India’s existing FTAs are far narrower in scope. The India-

eral contentious issues. To begin with, India is resisting demands from the EU to drastically cut tariffs on automobiles, wines and spirits, and dairy products. The EU is seeking greater market access in the services sector such as banking, retail trade, telecom-

EU FTA would cover 1.7 billion people, almost 20% of the world population, and therefore the potential impacts (both positive and negative) would be far reaching than other agreements signed by India. That’s why, it has evoked

munications, legal and accounting services. In the banking sector, for instance, EU is seeking removal of barriers to market access (commercial presence, cross-border supply and con-

sumption) and grant of national treatment commitments. The European firms and service providers are interested in the opening up of government procurement markets but India has only committed transparency in the conduct of government procurement processes. A stringent intellectual property rights regime is another contentious issue as New Delhi has apparently not accepted TRIPS (the Agreement on Traderelated Aspects of Intellectual Property Rights)-plus provisions sought by Brussels. Besides, India is reluctant to include labour and environment standards under the proposed agreement.

Narrow economic gains Under this FTA, India is largely expecting gains in the services, especially IT and ITeS (Information Technology Enabled Service). India is seeking a significant relaxation for the movement of its skilled professionals (for short-term assignments) within the 28-nation bloc. This would enable Indian IT and ITeS industry to move professionals freely from one country to another within the EU. Currently the EU does not offer a work permit with validity for the entire EU. India is also seeking 50000 extra working visas a year for its citizens but the EU is unlikely to accept this demand due to higher youth unemployment rate, which reached 23% in 2013. In addition, New Delhi wants the EU to recognize India as a “data secure” nation which would immensely help the country’s IT industry to gain greater access to the European markets. But the EU is unlikely to accept this demand.

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Angela Merkel

Investment conundrum

Apart from these longpending issues, some new ones have cropped up recently which would further delay the negotiating process. Take the case of investment protection measures which represent almost the other half of this agreement. India has substantially revised its Model investment protection treaty text early this year after several foreign investors served arbitration notices to India for the alleged breach of its bilateral investment treaties. Now onwards, India would negotiate its future bilateral investment treaties and FTAs based on this new Model text.

The draft new Model text adopts a narrower definition of investments [limiting it to only FDI (foreign direct investment)), removes MFN (most favoured nation) clause, and restricts the scope of national treatment and fair and equitable treatment clauses. It only allows investors to initiate international arbitra-

Narendra Modi

tion once they have pursued domestic legal remedies to resolve the investment dispute. In all likelihood, the EU would be reluctant to re-negotiate the entire investment chapter of the FTA as per India’s new Model text.

A win-win deal?

Domestically, the Indian government will find it difficult to sell this agreement as a winwin deal and in the best interest of farmers, workers and producers. One cannot deny the fact that the larger gains from lowering tariffs on agricultural and industrial goods will be made by Europe due to higher import duties imposed by India. While Indian products are unlikely to gain much by further reduction of import duties by EU. In the case of cars, for instance, India’s import duty range from 60 to 100 percent while the EU charges a flat rate of 10% on imported cars.

In addition, this FTA would have profound implications on local employment and

manufacturing in India. The cheaper import of agricultural and manufactured goods due to lowering of import tariffs will negatively affect several labour intensive sectors. Unlike Europe, 93% of India’s workforce is employed by unorganised sector with abysmally low wages and no social security.

The cheaper import of finished goods will also undermine local value addition which drives employment growth and promotes enterprise development. Needless to say, India badly needs both. In many important ways, the proposed FTA would run counter to ‘Make in India’ initiative launched with much fanfare by the present government. Hence, the Indian authorities need to undertake a holistic overview of the potential gains and losses from the proposed FTA with the EU and initiate consultations with all stakeholders.

Whither geo-political gains?

Is India pursuing FTAs

with the EU and other nations purely for trade and investment?

Are there other policy objectives?

Since 2004, the successive Indian governments have maintained that their FTA strategy helps in the pursuit of geo-political objectives, without elaborating any further. During the past years, no efforts have been made by the authorities to explain how India stands to gain geo-politically by engaging in bilateral trade and investment pacts.

Some commentators argue that there is nothing per se wrong in pursuing geo-political objectives through bilateral trade and investment agreements but where is the evidence to substantiate that India’s enhanced geopolitical rise in the world over the past decade has been made possible largely due to such agreements? – Third World Network Features. ( Kavaljit Singh is Director of Madhyam, a policy research institute based in New Delhi.)

Nov 15 - Dec 15, 2015

PASSLINE

SUSTAINABILITY

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uoyed by the raft of recent research demonstrating how local control is often a boon for forest health, a UN agency calls for greater investment in smallholder farmer organizations.

nomically and ecologically influential. The reports recommend investment in them as part of the solution to rural poverty, loss of forest, and rising carbon levels in our atmosphere.

By John C. Cannon

“As we’re looking for investments for the future” – the title of this year’s World Forestry Congress is Investing in a Sustainable Future – “it’s an opportunity to say, ‘Let’s direct the investments finally to those who have the biggest stake in making sure that we achieve our objectives,’” said Jeffrey Campbell, a contributor to one of the reports and manager of the Forest Farm Facility (FFF) at the United Nations’ Food and Agriculture Organization (FAO). FFF teamed up with several other international organizations to produce and publish the research.

When small-scale farmers and producers of forest products band together, they can help rural economies grow, and they constitute a critical but often unrecognized line of defense against global problems such as deforestation and climate change, according to new research.

With dozens of case studies from around the world, a pair of reports released at the recent World Forestry Congress in Durban, South Africa, seeks to show that the world’s 1.3 billion smallscale agriculturalists and foresters, including indigenous groups and local communities, are ecoPASSLINE

Nov 15 - Dec 15, 2015

Campbell said that having the forestry conference in Africa (for the first time in the event’s 90-year history), combined with the release of the UN sustainable development goals and the upcoming UN Conference on Climate Change (COP21) in Paris, makes this a critical time to highlight the importance of an oftenoverlooked segment of society.

Private investment is increasingly seen as a development solution for countries beset with poverty. As a result, focus has been on investment in largescale, plantation agriculture, sidelining the massive smallscale private sector, Campbell said. But smallholder agriculture and forestry compare favorably with big plantations in terms of the environmental and economic benefits they provide, he added.

“It’s a big wakeup call from my perspective,” he said in an interview with mongabay.com.

Traditionally, the case for large-scale agriculture, which typically centers on the production of a single crop and can come at the expense of standing forests and land that once supported many small-scale farmers, has been built on the idea that it’s more efficient.

But efficient at what? The drive behind large-scale agriculture is mostly for higher profits, usually for just a handful of people, Campbell said. Small-scale agroforestry, on the other hand, tends to be more equitable – that is, profits find their way into the pockets of more people.

“I would argue that [profit] distribution in the context of sustainable development goals is a key part of efficiency that’s been totally ignored,” he added.

“And if we look at the degree to which smaller scale enterprises

21 distribute income, profits, benefits, and livelihood, we can probably argue they’re much more efficient.”

The research suggests that local populations’ vested interest in protecting the forest that provides their livelihoods is one reason they’re better stewards, Campbell said. “They have a much more localized stake in the ongoing sustainability.”

Also, most small agroforestry produces a suite of products, not just one, Campbell said.

As a result, local economies that rely on the harvest of such products as timber, honey and fruit, and charcoal are more robust and less subject to swings in market demand and disrupting forces like drought than those that have doubled down on a single crop or commodity.“A diversified rural economy makes a lot of sense,” Campbell said.

Another positive is that these products can be collected without destroying the forest.

Hence, the small-scale approach often outdistances large-scale plantations in its environmental benefits. Biodiversity stands a better chance, and more trees

left standing mean more carbonsiphoning photosynthesis, thus holding the line in the battle against climate change.

But this global group of “forest and farm producers” still needs help, even though they collectively add up to a seventh of the world’s population.

“Smallholders have to struggle to be recognized,” said Geoffrey Wanyama, director of the Farm Forestry Smallholder Producers Association of Kenya.

FF-SPAK, as the organization is known, is designed to build the capacity of some 10,000 smallholders in six regions in Kenya and “give them a voice” in policy decisions.

“It gives them strength in numbers,” Wanyama said. “It also gives them some kind of platform where they can engage in issues around farm forestry.”

FF-SPAK, with support from international organizations, helps forest farmers develop business plans, a skill that requires training and enables the farmers to turn their work into a meaningful profit.“They have many ideas, but maybe of those ideas are not

bankable,” Wanyama said. “They don’t often have the skills to make good business plans.”

The Forest Farm Facility (FFF) similarly provides a yearlong market analysis training programme, with similar goals of helping small-scale entrepreneurs understand market demand and start viable businesses. Currently, the organization works in 10 countries, but Campbell said that 40 others are eager to join forces with FFF.

Financing for forest farmers is also a concern, so groups like FF-SPAK work to ensure loans are available, Wanyama said. In Kenya, beekeepers and tree farmers don’t have the same access to funding from banks that may be available to small-scale corn or tea farmers.

The organization also holds technical trainings, for example, on how to start and maintain a tree nursery. That’s particularly important to help meet the demand for firewood in Kenya, Wanyama pointed out, where some 80% of the population depends on it for cooking.

Kenya is setting an example in this area, Campbell

said. “The push from government to help farmers plant trees has helped transform the landscape in a way,” he added. Worldwide, 2.5 billion people use fuel wood to cook their food. By helping them to plant trees and earn a living, governments can transform a group that could be causing deforestation and instead help them become a solution to the problem, according to Campbell.

“If you’re going to meet targets for restoring tree cover, you’ve got to involve smallholders,” he said. And that’s the idea behind this latest push to empower in these forest and farm organizations.

“This is where investment could have big payoff, and there’s an opportunity to look at smallholder producers and appreciate the scale at which they operate,” Campbell said. “Locally controlled forest businesses, [as well as] forest and producer organizations, are an absolutely important part of the solution.” – Third World Network Features. ( John C. Cannon is an American journalist and writer based in Africa.)

Nov 15 - Dec 15, 2015

PASSLINE

ANALYSIS

22

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n August 11, in a move that stunned the financial markets , China devalued the Yuan by 2 % . The devaluation of the Chinese currency has been on hot demand from the developed economies, particularly by the United States and it was expected to happen at any time. However, the devaluation of Chinese Yuan seems to have happened at an unexpected time.

The global trade has been declining. The Chinese authorities might have been Dr Rajagopalan Nair compelled to do this exercise because people react strongly to losses than to gains and Chinese exports have been falling consistently for quite some time now. The exports from China declined by 8.3% in July, the biggest drop in four months. The Government agencies however put this move a correction to “ relatively large deviation “ between the Yuan’s spot rate in the market and the daily midpoint fixing by the Central Bank. China allows the Yuan to rise or fall a maximum of 2% from a day’s midpoint. China has stated that its currency devaluation is only a free market reform measure and denies allegations that it has initiated a competitive currency devaluation between countries to help the Chinese exporters .

The Chinese government has allowed its currency, the Yuan, to decline in value by about 4 % against US Dollar till now, in stages . This will rekindle the debate again whether a cheap Yuan will be beneficial or detrimental to the business interests of the greenback. For many years, Chinese Yuan has been a convenient villain for US currency experts . Now that China has stopped making its currency artificially cheap , the US currency experts have to look for another reason to explain the maladies of the US Dollar .

But whether the devaluation of Yuan by the Chinese is a tactical move or something done under pressure? In the wake of the 2008 financial crisis, the move by the Chinese government making their currency artificially cheap drew a lot of criticism .

However, the move by the Chinese government to make Yuan cheap to make the Chinese exports cheap and gave their exporters a comparative advantage over US business interests worked well. However, the situation is different now with US economy much in a better shape than earlier. The Chinese economy was not doing well . The Yuan was already under pressure of its own. The US Federal Reserve is now in a better position to handle the Yuan devaluation. A cheap Yuan strengthens the case for the Federal Reserve to keep the interest rates low. China has maintained that the revamp in its foreign currency rate was just an effort to let the market forces set the country’s currency rate .

For many years , the over capacity that has plagued the developed economies of the world has started affecting the emerging economies as well and their export growth has been sluggish.The countries which were heavily dependant on the exports, have been hit by the slowdown in the growth of international trade. In this backdrop pegging Yuan to US Dollar became a burden for them . Their exports to US have declined by 1.3 % while their exports to Europe fell by 12% and to Japan shrunk by 13% .

The recent devaluation of Yuan will help the Chinese exports to gather momentum as it will become cheaper for the outside world , which will accelerate the export sales .When the Yuan becomes cheaper by 4 % it is as if every Chinese exporter has reduced the price of his commodities by 4 %. This is expected to increase their export sales boosting the economy .

The Dollar Yuan exchange rate has been pegged by the Chinese government though it was under heavy market pressure. There PASSLINE

Nov 15 - Dec 15, 2015

23 has been a continuous flight of capital from China which had put an upward pressure on the Dollar Yuan rate. In order to dampen this pressure there has been heavy selling of US Treasury bills in recent times. By this devaluation, the Chinese have joined in the competitive devaluation game. The rationale and the method of revaluation of Chinese Yuan have been in a different way and it has so far not given any indication of a trade war. China , instead of adopting an arbitrary value for Yuan , decided to give up their artificial peg to US Dollar . In fact this can be seen as a step towards moving towards a fair market determined exchange rate for the currency.

People often consider a currency devaluation as something creating a favourable impact for the devaluing country and unfavourable for the countries whose currency becomes more valuable.

Hence people in the countries other than China are worried that further decline in the Yuan could weaken economic growth outside of China. The Yuan devaluation has two important implications. Chinese move towards a market determined fair price for their currency make it difficult for other countries to retaliate in a similar fashion . Most of the Chinese competitors are already in a free float system and it will be difficult for them to reject free market rates to peg their currencies to a cheaper rate . The second implication is that after all devaluation of the Chinese Yuan has been a major demand of the trading countries and China has now positively responded to it.

Most of the developed countries , including the United States allow the market to set the exchange rate for their currency .

The country’s policies may affect the exchange rate of its currency but the day to day value of the currencies are determined by the free play of demand and supply forces .

The engineered fall of the Yuan is likely to cause political ripples around the world. The criticism of China’s tight control over Yuan’s exchange rate within the US government is that the Yuan has already lost most part of its value but the government is setting it at an artificial rate to make the Chinese exports cheap in the global market. China’s present move affect the US in another way also when the FED is preparing for an interest rate hike later this year . A strong US Dollar which is squeezing the exports and to keep the inflation at a targeted level of 2 % pose a real challenge to the Federal Reserve. A cheap Yuan will add fuel to fire to these concerns. However for the Chinese the real test is going to be when there is an upward pressure on Yuan .

The Impact on various economies China’s neighbouring countries have been already under pressure for some time. The Chinese move will impact in all the markets around the world, not just in Asia. The deflationary trends exported by China will affect the markets in all regions of the world . Commodity exporters to China and economies which are competitors to China will be the biggest losers due to the devaluation of Yuan by the Chinese government. The currencies of Taiwan, Malaysia and Korea are likely to come under pressure as these countries export more than 10 % of their gross domestic product to China whereas US Exports to China are hardly 0.7%.

In the domestic capital market, China shares wavered between positive and negative territory after the announcement, a day after Shanghai posted its largest daily percentage gain in a month. The Shanghai Composite Index was flat at 3929.26 while the Shenzhen market was up 0.7% at 2290 . The Hang Seng Index in Hong Kong moved up by 0.1%. The greenback strengthened against

most of its 16 major peers. The New Zealand , Australian , Singapore and Taiwanese dollars tumbled by at least 0.7 % along with South Korea’s Won .

The offshore Yuan which is freely traded was down 2.9% against the dollar and was trading at 6.3943. In the nearby markets, the Thai Baht fell 0.8% to trade at 35.36 to US Dollar and the Singapore dollar fell 1.3% to 1.40. The Philippine Peso also fell to its weakest level in 5 years to 45.865 per US Dollar. Indonesian rupiah and the Malaysian ringgit edged 0.4% and 0.7 % lower respectively closing at its lowest levels since the Asian crisis 17 years ago. The impact of the devaluation of Yuan has been more pronounced on the South Asian currencies against US Dollar. A weaker Yuan would threaten these economies pros-

pects in the international market than others. We have to wait and see whether the Central Banks of these neighbouring countries would also be prompted to move in the same direction to safeguard their business interests. If this happens, it will give rise to a trade war between these emerging economies to find their space in the international market. India , one of the strongest economies in the Asian region, has more or less cleared safe, but the Indian rupee also got hit and is volatile till now. The economic fundamentals of the Indian economy are much stronger and a stronger impact on its currency is not expected .

(The author is a financial expert holding a Doctorate in Financial Management and currently heading a financial institution based in UAE )

Nov 15 - Dec 15, 2015

PASSLINE

PROJECT OPPPORTUNITIES

24

Prof Job K T

ndia is a heavily populated country and this is the only reason for enormous wastes being produced regularly out of household & industrial activities like peeling and cutting of raw fruits and vegetables prior to processing, eating and cooking.

Serious environmental and health problems are related to inadequate waste disposal. Garbage dumped in open places cause heavy pollution due to soil, groundwater and surface waters. Fruits and vegetable waste (FVW) is generally stale or spoilt, not fit for human consumption. These materials are usually high in fiber content and are of different sizes and forms. Vegetable wastes have a high moisture content of 80-89%.

Three fourth of the total solids present are volatile solids. Their biodegradability varies accordingly with the state of hardening and kind of waste material.

India produces around 50 million tonnes of fruits and vegetable wastes per annum. The quantity of municipal solid waste generated in India is estimated to be 30 million tonnes per year. Simultaneously, 760 million tonnes of potato residue is also available for use as manure. Thus, there are enough raw materials besides

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PASSLINE

Nov 15 - Dec 15, 2015

remains of fruits and vegetables which can be used for production of organic manure.

Presently much of the waste is used for landfills thereby producing greenhouse gases into the atmosphere. One tonne of waste produces around 80 m3 of biogas per day and about half a tonne compost.

The production of fruits and vegetables from the markets in Kerala is estimated to be around 2 million tonnes per annum. The disposal of the waste is a paramount problem for the local bodies.

National Project on Organic Farming offers a Capital Investment Subsidy Scheme for Commercial Production Units for Organic/ biological Inputs.

Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India is implementing the scheme. NABARD/NCDC is the nodal agency administering the Scheme. Under this, Fruit and Vegetable Market Waste Compost units are promoted. As per the scheme, fruit and vegetable waste compost production unit will be provided with a subsidy @ 33% of the capital cost of the project subject to a ceiling of Rs 63.00 lakh. As per the model project report, the estimated capital cost is Rs 200.00 lakh for a unit having capacity to process 100 TPD, working on single shift basis. The remaining cost will be met through term loan (42%) from banks and margin money

(25%). The subsidy will be credit linked and back ended.

Compost prepared from fruits and vegetable waste and other agro waste offers several benefits namely: • Enhances soil fertility and soil health, improve water holding capacity of soil.

• Improves soil biodiversity • Support vigorous growth and high quality yield thereby increases productivity • Rich source of plant nutrients • No pesticide residues, weed seeds, heavy metals, sand, termite, wax, plant root diseases, etc.

• Reduces the requirement of land for disposal of fruit and vegetable waste in near future.

• Create better environment, thus reduce ecological risk • Stop wastage of rich raw material presently dumped into landfills and the same is being used for making compost.

• Avoidance/reduction of disposal and soil amendment costs.

Generally, the Composting methods are as follows: (a) aerated, (b) un-aerated, (c) covered and (d) uncovered. The composting methods include passive piles, windrow composting, static piles and in-vessel composting. It has been found for Indian conditions, the Aerobic windrow composting with the help of microbes is the most effective and efficient method. Recently vermin-composting

process has also been found to be effective and can be used. In this method the waste is partially decomposed microbiologically followed by feeding to earth worms to obtain vermin-compost.

The raw material can be fruit and vegetable waste. In the absence of sufficient quantity of fruit and vegetable waste, agricultural wastes, crop residues, agrowastes and kitchen waste can also be used.

The suitable materials for composting are: vegetable and fruit scraps, fallen leaves and dead flowers. The unsuitable materials for composting are : meat and dairy products, diseased plants, metals, plastic, glass, fat magazines, large branches, weeds that have seeds or underground stems, bread or cake, bones, any other material containing either heavy metals or pathogens.

The garbage received is subjected to segregation of non bio-degradable materials such as plastic, glass etc. before arranging in windrows.

The windrow composting involves placing mixed materials in long narrow piles and turning or agitating them regularly. Windrows are typically 1m to 3.6 m. high, 3 m to 3.6 m wide and hundred metre long, formed by using front-end loader or auger and are turned with special equipments or specialized turning device. For accelerating the compositing process, special microbial cultures or inoculants such as cellulytic and

25 lignolytic or cowdung slurry are with desired specifications and loader or inclined conveyor / au- marketing of compost. However, added. However, the fruit & veg- devoid of toxicity. The end prod- ger, tipper, tub grinder, sieving it is always desirable to enter into etable waste usually contains the uct, the enriched manure is there- and stitching conveyor, screen some buy back arrangement with micro flora necessary for decom- fore safe for use in agricultural sieves, JCB, tractor, weighing pre-determined price. machine, packing machine, lab- No hazardous effluents are generposition; the addition of inocu- and horticultural crops. lants/culture is optional. Various About 2 hectares land will be oratory equipments with glass ated from a compost production useful microbes like Azotobacter, needed to set up 100 tonnes per wares and chemicals and mini- unit using fruit and veg waste. phosphate solubilizing bacteria/ day (TPD) fruits and vegetable mum tools etc. All machinery is The cost of project to set up 100 fungi etc. are also added for en- wastes processing unit. The cen- manufactured in the country.

TPD fruit and vegetable marriching the compost. tre shall have site for staging, The site needs development for ket waste per day is estimated at The turning operation mixes the windrows, screening area shed, construction of structures and Rs200.00 lakh, as indicated becompositing materials and en- building / shed for finished prod- development of roads/ paths for low: hances the aeration. The frequen- uct, office, laboratory and green easy movement of raw materials As the subsidy will be credcy of turning depends upon the belt/buffer zone. The investor and finished goods, fencing in the it linked and back ended, the rate of decomposition, moisture may have his own land or may be periphery with gate to prevent amount is expected to be released content etc. Greater the frequen- purchased or taken on lease for a trespass by animals and unwant- along with the term loan. Hence, ed elements. Provision for green the Bank may provide a total ficy of turning, quicker is the pro- minimum period of 15 years. cess of conversion in to compost. Windrows composting is one of belt and buffer zone development nancial assistance of Rs150.00 During decomposition process, the composting method where and environmental requirements lakh. the temperature rises and reaches decomposition of organic matter if any may also be considered. around 65-70 degree C, which takes place in windrows. These The raw material for the unit is The techno economic paramcreates optimum conditions for windrows are periodically turned fruit and vegetable waste which eters of the project are found to certain microorganisms and kills using a bucket loader/front/end is presently transported / dumped be favorable. The benefits to cost all unwanted pathogens. Water is loader/ auger. Water is sprayed for land fill by the Municipality ratio (BCR) is 1.29, net present sprayed as and when required to over the windrow to control tem- by their vehicles. This raw ma- value (NPV) is Rs166.90 lakh keep the moisture content in the perature and moisture content. terial may be transported to the and internal rate of return (IRR) is 31.31%. The debt service covdesired range of 40 - 65%.

For a 100 TPD composting unit, unit by the free of cost. In case, 6 not able to supply erage ratio (DSCR) is 1.646. The Composting is usually completed it is desirable to have 2000-4000 municipality is entire bank loan can be repayable within 7 to 8 weeks and from sq m of concrete yard. It is desir- 6 raw material, the company may in eight years including two years windrows in con- take up the responsibility of colthe semi-processed compost, the able to raise Sl.No. Components Cost ( Rs.in lakhs) grace period during which only 6 Sl.No. Components Cost ( Rs.in lakhs) wastes like plastic, glass etc. are interest Land 20.00 will be recovered. The again separated manually which 1 Land1 20.00 economics have been worked out Sl.No. Components Cost ( Rs.in lakhs) ensures clean job and makes 2 andFencing and Roads/ Path 10.00 the subsidy component.

2 Fencing Roads/ Path 10.00 without mechanization highly feasible.

1 Land 20.00 With subsidy, the viability and 3 Buildings 70.00 3 Buildings 70.00 The compost thus obtained is 2 Fencing and Roads/ Path 10.00 bankability for the unit will be then fed to the screening ma4 Machinery &Machinery Equipment & Equipment 86.00 4 86.00 better.

3 Buildings 70.00 chineries of different mesh size 6 Preliminary & Pre-operative expenses 4.00 6 The4.00 proposal for processing of 4 Machinery &Preliminary Equipment & Pre-operative expenses 86.00 to produce different grades of or5 Working Capital 10.00 100 TPD of fruit and vegetable ganic manure. The finished prod6 Preliminary & Pre-operative expenses 4.00 5 Working Capital 10.00 Total 200.00 market waste to produce compost uct is uniformly dark brown with 5 Working Capital 10.00 Total 200.00 is found to be technically feasible a pleasant earthy aroma. The Total 200.00 and financially viable. Kerala has compost can also be enriched The proposed capital structure of the project is as follows sufficient fruits and vegetable with rock phosphate, bio fertilThe proposed capital structure of the project is as follows market waste to start a few numizers and other prescribed addiThe proposed capital structure of the project is as follows ber of units. The investment in Sl.No. Particulars Cost ( Rs.in lakhs) tives. this project is a step towards con1 Promoters’ Contribution 50.00 Before packing, the product is Sl.No. Particulars ( Rs.in lakhs) Sl.No. Particulars Cost ( Rs.in lakhs) Cost servation on nature and protecttested in a lab for its organic qual2 Term Loan from Bank 87.00 ing the next generation.

1 Promoters’ Contribution Contribution 50.00 1 Promoters’ 50.00 ity such as humus content, organ3

Subsidy from NABARD

63.00

2 Term2Loan from 87.00 (Professor ic carbon, nitrogen, phosphorus, TermBank Loan from Bank 87.00 Job K T is a retired SeTotal 200.00 nior Faculty of Centre for Manpotassium and micro nutrients in3 Subsidy from NABARD 63.00 3 Subsidy from NABARD 63.00 Development, Thiruagement cluding the population of useful Total 200.00 vananthapuram and approved bacteria, fungi etc. The compost 200.00 As the subsidy will be creditTotal linked and back ended, the amount is expected to be consultant by Coconut Developis also tested for pathogens, presreleased along with the termerosion loan. Hence, the Bank may provide a total financial lecting the wastes from the Mucrete yard to prevent of As the subsidy will be credit linked and back ended, the amount is expected toment be Board, Kochi. Presently he ence of inert material and odour. nicipality. and smooth operation assistance ofthe Rs.150.00 lakhs. is the is Director, Enterprise The compost is then packedreleased in nutrients As subsidy will be credit linked and back ended, the amount expected to be Develalong with the term loan. Hence, the Bank may provide a total financial of machinery.

Marketing of the product is an imopment Service, ThiruvananthaHDPE/LDPE bags. The imporassistance of Rs.150.00 lakhs. released along with the term portant loan. Hence, theinBank may provide a total financial component setting up Equipment requirements depend tant feature of this composting The techno economic parameters of the project are found to be favorable.puram, The offering training, consulthe fruits and vegetables wastes the technology used. For a of Rs.150.00 lakhs. tancy, asset valuation and Quality method is the controlled fermen- onassistance benefitswindrow to cost ratio (BCR) is 1.29, net present value (NPV) is Rs.166.90 lakhs and compost unit.

Marketing linkages operation, the equipThe techno economic parameters of the project are found to be favorable.

The Management System services to tation/degradation, resulting in internal rate of return (IRR) is 31.31%.

The debt service coverage ratio (DSCR) is need to be developed for effective ment might include a front end small and medium enterprises. production of enriched compost benefits to cost ratio (BCR) is 1.29, net present value (NPV) is Rs.166.90 lakhs and The techno economic parameters of the project are found to be favorable.

The 1.646. The entire bank loan can be repayable in eight years including two years grace internal rate of return (IRR) is 31.31%. The debt service coverage ratio (DSCR) is Nov 15 - Dec 15, 2015 PASSLINE benefits toonly cost ratio (BCR) is 1.29, net present value (NPV)grace is Rs.166.90 lakhs and period The during which interest be recovered. economics 1.646. entire bank loan can bewill repayable in eightThe years includinghave two been years worked

out without the subsidy subsidy, the and have bankability for the internal rate of return (IRR) is 31.31%.

The debt service coverage ratio (DSCR) is period during which onlycomponent. interest willWith be recovered.

Theviability economics been worked

HOME FINANCE

26 Construction-linked payment plans

Passline News Service

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wning a house is the dream of everyone. But those who do not have own resources have to opt either the bank or any NBFC . But there are cases of builders themselves offering innovative payment plans to fulfil the dreams. We should be careful whether those offers are suitable for us. Find out which one suits you the best.

When James booked a flat in Kochi four years ago, the builder promised possession in 78 months. He offered a 9% discount if James paid the entire amount up front. James opted for a lesser discount of 2% and paid 30% of the price. ``The rest is payable when I get possession. The project is still not finished and there is no sign of getting possession,” he says. Not everyone is lucky.

Housing project delays are common. Faced with a slowdown in sales, real estate developers are luring prospective buyers with innovative payment ideas and freebies. Below given patterns of payment will enlighten the buyer when he chooses to buy a shelter.

Payment linked with work progress In this category, the first 2-3 instalments are calendar- based and subsequent payments are linked in progress in work of building.

You may pay 5-10% within three PA AS SS SL LI IN NE E P

Nov1515--Dec Dec15, 15,2015 2015 Nov

months a n d 20% in six months.

The balance 6070% is paid when the construction reaches prefixed milestones. Dinesh chose a construction-linked payment when he booked a 3 BHK flat in Kozhikode in 2013. Till date, Dinesh paid only 30% of the cost.

The rest will be paid in tranches of 10% when the construction completes specified milestones.

Construction was supposed to start from the 13th of the month; but two years gone, even during the digging he opted to pay the entire amount instantly by taking a loan. The delay would have pinched him more if he was also paying a hefty EMI.

What to do?

Construction- linked payment plans suit buyers who are not in a position to make a huge financial commitment. Banks usually give two types of loans for such plans.

First, the loan is for the initial contributions and only pre-EMIs are charged. The loan increases with each instalment to the builder and the pre-EMI amount goes up. Regular EMIs start only after the final instalment was made.

Since the pre-EMI plan is lesser in earlier years, this suits buyers who expect their income to rise in the next few years. They can also use the pre-EMI period to repay loans taken for the down payment. In the second type, EMIs are based on the entire loan amount lent even though only a portion is disbursed. The interest is very small in initial years and a bigger sum goes into repaying the principal.

Builder pays the EMIs

What to do?

Much like a construction-linked plan the buyer makes a small down payment of 10-30% at the time of booking. The difference is that he also takes a loan for the remaining amount, though the builder pays the EMIs till possession. The lender pays the builder construction-linked payments on behalf of the buyer. For the buyer, EMIs start either on possession or after a specific period. Such schemes are not all that great.

The interest cost absorbed by the builder during the subventions period is passed on to the customer by way of higher prices. The price per sq ft under this option is higher than what you would pay under construction linked plan.

As interest rates are expected to fall, instead of selecting such schemes, bargain with the builder to lower the price of the property.

What to do?

Just like construction-linked plans, these suit buyers who don’t have too much surplus cash. However, don’t get enticed by offers of small down payment.

If construction is in limbo, there is the risk of the builder defaulting interest payment to the bank.

Builder funds the purchase Here, the builder funds the purchase. While the absence of the EMI might seem like an advantage, this option has its shortcomings. When you take a loan from a bank, it does its due diligence.

The buyer benefits from this research. Buyers also need to make sure that all approvals are in place and work is going on smoothly.

Builder offers rent Another innovation is the assured rent offered by builders to a buyer who makes the full payment.

This can be for a fixed term of 2-3 years or till possession. The rent is usually 1% of the price of the property. If you buy a property worth 50 lakh, the builder will give you 36 post-dated cheques of 50,000 each. This means a return of 12% on investment. After all, you are paying 9.5% on a housing loan. By the time you get possession, the price of the property would appreciate by at least 1520% to 58-60 lakh. The catch is the builder has effectively taken a loan at 12% through the buyer.

Here, the liability of timely repayment rests with the buyer, not the builder. If the buyer misses EMIs, the bank will caution him. If the builder reneges on the agreement, the buyer can take him to court.

The reality is that if the cheques bouncing, there is little you can to do recover dues.

What to do?

This option is useful because it takes care of the EMI for 2-3 years. However, be sure about the builder’s credentials before you sign on the dotted line.

What to do?

Gifts and freebies

This suits HNI buyers who don’t need loans. If you have cash and can make a larger down payment, builders would be willing to offer higher discounts.

Indians like the gifts and freebies that come with purchases. This is why some builders are luring them with gold coins, furniture and even foreign holidays. Be extra careful when you see such offers.

Waiving interest on loan The schemes are for projects that are ready for possession or nearing completion. The waiver could be for 1-3 years. For instance, though home loan rates are close to 9.5%, some builders have tied up with lenders to offer loans at 7.5% for three years. Most of the tie-ups are with NBFCs.

What to do?

These freebie offers and add-ons are marketing gimmicks. Do not let an investment of 50-60 lakh be influenced by the offer of a free AC worth Rs 20,000-25,000 or a coin worth Rs 26,000.

POLICY

27

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one are the days that Kerala youth who possess higher education hunting for plum posts in government or multinational companies in the State or elsewhere abroad.

The aversion to the enterprises and entrepreneurship beOommen Chandy come past history of the State. Kerala was once the largest exporter of the human resource. Now, slowly but steadily, becoming a state of highly educated youth who indulge in entrepreneurship and self-employment. Thanks to the changed mindset of parents and the unstinted support of the government.

It is a welcome feature witnessing in Kerala that an industrial climate has descended on the horizon of Kerala. The employment scenario has changed a lot that majority of talented and ambitious educated youth adopt a technically viable entrepreneurship, especially in IT, electronic and communication stream. This is because the route to entrepreneurship has been cleared by way of government policies and programmes. Remember that the quantum jump in the attitude of the youth to the new culture happens at a time when the government and educational institutions arrange for the eligible students to avail education loans; and tie-up with other institutions for placements after education. The government policy has hit the nail on the head as we see nowadays that many an enterprising youth abandon high profile jobs and resort to incubation centres or startups.

Today’s educational policy is also supportive to inspire the pupils and test his/her innovations at school or college level experiments. At this juncture, it is to be noted that some NRKs become

high-profile entrepreneurs in alien lands as example and inspiration for the novices here. But make sure that the entrepreneurship spirit should not confine only in computer science, electronics and communication industry, but extends to other fields such as agriculture, tourism, culture, education etc. For Kerala to become an entrepreneurial and industrial state like Gujarat or Maharashtra, this transformation in the mindset of students is must which makes them job creators, instead of job seekers.

This transformation has taken place in Kerala because of the efforts taken by the government, nodal agencies and other organizations. Thanks to the B2B meets, SME conclaves taking place in the State alluding to the policy change of the ruling coalition starting with the emerging Kerala meet. Three years back in emerging Kerala in 2012 the Government announced the country’s first student entrepreneurship policy that created a revolutionary mindset change amongst youth to become job creators and not job seekers. The policy was implemented within 30 days of announcement.

The Kerala government plans to make technology entrepreneurship P H Kurian a key part of engineering education in the State.

This was announced by Chief Minister Oommen Chandy while inaugurating YES CAN 2015, the second edition of Young Entrepreneurship Summit (YES). YES is Kerala’s flagship entrepreneurship event, organized by Kerala State Industrial Development Corporation (KSIDC).

The goal set during YES 2014 has been attained in terms of creating an enabling ecosystem congenial to startups through creation of the startup policy, interventions at schools and colleges, enhancing the infrastructure for incubation,

provisioning easy funds for startups, and arranging for mentorship and guidance. KSIDC has already set up a Business Incubation Centre at Geo Infopark in Kakkanad, Kochi. The first phase of 4600 sq ft centre with 124 seats is complete and 14 startups have started operations there.

“For Kerala to become a developed state, the most important thing is to create a positive and entrepreneurial mindset among youth, especially students and with this intention we are now going to make entrepreneurship a key part of B-Tech degree education,” Chandy said.

In world class universities like Stanford, Harvard, MIT (Massachusetts Institute of Technology) etc students can learn Major in one subject like Computer Science, Electronics, Mechanical etc with Minor in another subject.

Mark Zuckerberg had a Major in Computer Science with a Minor in Psychology, which enabled him to create Facebook.

The Chief Minister also said that the Technopark TBI and Technology Innovation Zone would be upgraded to world class incubators so that the students and youth have the best facilities in the world. The State used to say ‘No’ to new concepts earlier. “But now the situation has changed. The response to the Student Entrepreneurship Policy was beyond our expectations. 300 companies have started since then and many youngsters have come up with ventures not just in IT and industry, but in fields such as agriculture, tourism, culture, education etc. We have the confidence today that we will succeed,” the Chief Minister said adding that the State government’s aim was to make sure that the state’s youngsters get opportunities here itself.

Minster for Industries and Information technology, P K Kunhalikutty said that a big change is happening in Kerala. “Kerala society is on par with any devel-

oped society. The challenge is to understand that and go to the next level,” he said.

The Minister also said that Kerala is using IT in a different manner and stands first in e- P K Kunhalikutty Governance. “We are the pioneers in startups and are ahead of other states in this. Kochi and Thiruvananthapurm have good facilities for startups.

Kozhikode will be developed as the next destination for startups,” he added.

P H Kurian, IAS, Principal Secretary (Industries and IT) said that Kerala’s startup initiative has already attracted national attention.

“The State had the right base in terms of an equitable, literate and globalised society. We have to use this to develop entrepreneurship,” he said adding that different departments have taken it as a mission to promote entrepreneurship in Kerala.

Dr M Beena IAS, Managing Director, KSIDC, said that the State has succeeded in achieving the goals set during YES 2014. It has set up a vibrant startup ecosystem through creation of a startup policy, interventions in schools and colleges, enhancing the infrastructure for incubation, pro- M Beena visioning funds for startups and arranging mentorship and guidance.

The theme of this year’s Young Entrepreneurship Summit was Collaborating and Networking.

Around 1,500 student entrepreneurs and startups participated in the Summit. YES CAN 2015 aims to interlink the startups in the country and connect them to angel investors.

Nov Nov 15 15 -- Dec Dec 15, 15,2015 2015

P PA AS SS SL LI IN NE E

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n Kera l a , Kochi is the most vibrant city, the happening place, the industrial hub, the C P Jose fashionable Paris and above all the No 1 Metro. It is also referred to as the “Queen of Arabian Sea”.

Despite all these special superficial references, Kochi has still not emerged as a modern city. To convert Kochi to the most vibrant city, we have to do away with many of our illusions, amend existing obnoxious customs and rules and consciously imbibe in society a feeling, a desire to change and keep evolving.

As US President Obama coined the phrase during the last election, “We Can”, yes, “We can change”. We must. Here, I would concentrate only on night life of Kochi though there are innumerable other areas to mention.

Why people should retire after 10 PM? Is it a decision by the State or the Police or the individual concerned or a combination of all to shut down everything and go to bed after , say, 10 PM? Will law and order collapse if people come out of their houses after 10 PM? If so, then there is something terribly wrong with our system.

Let’s delve into little inside.

PASSLINE

Nov 15 - Dec 15, 2015

What is night life?

There were reports in the media that Kochi Corpn likes to introduce night life here and for that purpose they have zeroed in on a few locations like Durbar hall ground, Broadway, Fort Kochi etc. This in effect means, other than the spots finalized by Corporation, there will be no night life at other places. What kind of a night life is this?

No one should identify locations for night life. Authorities concerned only should create a conducive atmosphere for night life backed by efficient policing and transport net work. Night life will, on its own, flourish here if the atmosphere is conducive.

It is pertinent to note here that recently night life was revived in Mumbai city – India’s financial capital and No1 Metropolis. We also should follow suit.

What Corporation or Govt should do to revive night life?

I would envisage night life as a replica of day life. Like day life, there will be business, shopping, eateries, entertainment, Offices, work, public transport and sport.

You name it, you have it.

Politics It is high time that certain guidelines are issued to political parties and politicians by the government so that they all function in a disciplined manner without affecting the common man.

Before reviving night life, ban hartals and strikes during night.

On a second thought I feel hartals, rail- road blockades etc should be banned permanently as we aspire to change and these forms of protests are unacceptable in a modern civilized society.

Ban on alcohol We should have a rethink on ban on alcohol. We all know that through public awareness campaigns, anti tobacco drive became a roaring success as many people abandoned smoking when they understood that it is health hazard. Similarly, family planning programmes could be effectively implemented despite resistance from some religious groups.

In the same way, excessive consumption of alcohol could be reduced and its adverse effects on the health of the people could be highlighted through awareness campaigns. Ban is not a panacea for all the so-called social evils.

Lift the alcohol ban.

In a modern society, let people decide what they should eat, drink and wear. Governments or municipal corporation or police or public at large should not assume the role of moral police.

Moral policing might have been there during medieval period but in a modern society moral policing is unacceptable as it will end up in cultural fascism.

Public Transport Authorities should ensure modern reliable public transport -

bus-train-autos-cabs-boats etc to ferry people 24 x 7. For vehicles meant for hire, digitalized meter, uniform for the drivers/ cleaners etc should be strictly enforced. The way modern technology was effectively used by some private taxi service providers, mobile phones and related modern technology should be put to maximum use in this sector. Unscientific and unsafe way of parking of vehicles on public places/roads can be avoided by apt implementation of the present day technology.

Entertainment Entertainment sector needs to be considered as a part of growing industry. Here, we should change the orthodox mind set through public awareness campaigns and remove all hurdles.

Changing mores of a modern society should be accepted as a reality. Societies and cultures keep evolving. From pre-historic period till date, a sea of change has taken place on earth. Do not ban anything as long as it does not physically and mentally hurt fellow human beings.

Governments/civic bodies should not get carried away by the homilies or sermons delivered by religious/caste groups. Religions/ castes can give sermons to their own flocks to keep them together but not to Government as elected governments are supposed to go by the Constitution.

29 Crime and sin Re-write what crime is. I think the physical and mental agony/ torture inflicted on another person can be termed as crime and should be dealt with as per the law. The word ‘sin’ should not be there in the lexicon of a government and many of the present day ‘sins’ described by religions should not be viewed through the prism of crime.

Minimum police and maximum policing – Smart Police For policing, it is not the number of police but the quality that matters. Replace corrupt and inefficient people by smart and intelligent ones capable of using modern technology. If need be, their pay and perks should be enhanced and kept as the best in the country/world so that they do not fall to temptations but remain loyal to their job and the society.

Government should introduce

three shift rota for police stations and in each shift sufficient number of quality police personnel with equal number of women should be deployed. In an era of equality and gender parity, women-only police stations should be done away with. This is one area where we can put to use modern technology and gadgets to the maximum use and reduce physical presence of police at every spot. A wrong doer should have the feeling that “I am being watched by Smart Police” though they are not physically present at every place and naturally the law abiding citizen should be able to walk around freely thinking that nothing will happen because of our smart police.

In our society the crime rates go up because hardly any criminal is getting punished here. Majority of the wrong doers manage to escape.

What are the advantages of night life ?

Business, trade and commerce People invest money to do business and make profits. We should not confuse profit with stashing away money to Swiss Bank or such illegal or unethical activities or tax heavens. From small traders to high end business men, let everyone come and flourish here.

It is the duty of the government to create a conducive atmosphere - 24 x 7- for business, trade and commerce. When economic activities increase, it will generate more employment and more revenue for government/local bodies.

When people – aam admi- find it difficult to make both ends meet, we should not create hurdles and bottlenecks to strangulate their life further.

Tourism Undoubtedly, truism will be a beneficiary if night life is intro-

duced. The hospitality sector has a major say in the revival of our economy. Tourism is the back bone of our progress and growth.

All tourist spots/heritage sites/ public parks should be spruced up and should be accessible to public/tourists 24x7. I understand, Thailand and some western countries do everything to promote tourism there. It is also to be noted that a sizeable number of tourists from India visit Thailand. We only need to change our mind set. Tourism is a major source of employment and revenue which can’t be wished away just like that.

Let the authorities concerned create a conducive atmosphere for night life, rather than identifying some locations for night life, and withdraw to the background.

Night life will take wings and take off on its own.

Nov 15 - Dec 15, 2015

PASSLINE

HEALTH

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Passline News Service People, particularly aged 40+, are scared to eat calorie enriched food nowadays. This is because of the apprehension haunting them of heart diseases at a young age. Systematic and careful living with ample exercise and workout is inevitable. But cultivating an aversion towards the calorie- content food is unwanted. Here is the right tip to make a balanced menu for a healthy lifestyle. et’s compare your body to a top notch luxury car-- a Lamborghini, an Aston Martin, a Ferrari... take your pick!

Now think about this: What sort of fuel would you use for your car? Will you settle for adulterated, cheap fuel? Obviously not!

And why so? Because it will end up damaging your car. In order to maintain it, you will not only have to take good care of it but also opt for the best fuel available. Now think about yourself.

Do you pay as much attention to your body?

Like the car, you must also consume good quality food items to keep your body healthy and yourself happy. Best quality does not mean expensive food, but local, natural, fresh produce that helps your body work beautifully. This means, home cooked meals. They are lighter and fresher than restaurant/readymade food.

Your body is a complex machine and needs food to function. It needs vitamins and minerals to help in functions like producing blood cells and hormones, strengthen bones and teeth. A correct proportion of fat helps in insulating the body and transport vitamins. Protein-rich foods initiate repairing and building muscles. And water helps the body to absorb and transport oxygen and nutrients to the organs.

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PASSLINE

Nov 15 - Dec 15, 2015

In order to make your body function properly, intake of certain food items on a regular basis is important. It is simple, Good food = Good performance. This is the reason why athletes are always on a strict meal plan. How do you feel when you have eaten unhealthy foods? Apart from the mental guilt factor, your body responds by getting sluggish, slowing down all the functions inside, resulting in a drop in energy levels.

Your body craves for a wholesome, well balanced meal. Then, why deny it? Every time your body signals that it is hungry, it needs the right kind of fuel function in the right way. If you choose to eat right, you won’t put on weight. Let’s take a look at what can you eat in a day to keep yourself fit. Bear in mind you want to eat fresh, nourishing food items that are wholesome and satisfying. They should be freshly cooked and negligibly processed. Plan a good, mouth watering menu for yourself.

Breakfast After a long duration of sleep and no food, your body wakes up hungry. The body requires a good source of energy and nutrients.

So let’s plan for a rich source of carbohydrates. You can either opt for a bowl full of oats, wholegrain bread, whole wheat pancakes, or chapathi. Add more carbohy-

drates in the form of fruits. This will also give your body a good amount of vitamins and minerals.

Don’t miss out on having fibrous food items like dry fruits. An egg or unprocessed cheese also gives the body the necessary proteins.

Enjoy it with your tea or coffee.

Mid Morning As you go about your morning routine and energy gained from your breakfast starts getting used up, you need to refuel to keep going. Pick a fruit, a handful of nuts or a cup of yoghurt along with your tea or coffee.

Lunch Our Indian thali is actually a very well- balanced meal and makes for the best lunch -- chapathi, veggies, dal and rice. Yes, you can eat rice. Opt for brown rice to make the meal healthier. You can also have a sweet dish (dessert), but only a small portion of it.

Evening Snack Tea or coffee, along with fruits, nuts, raw veggies with a dip like hummus or yoghurt. A slice of banana bread or wholegrain bread with a spread of your choice.

Dinner Round of your day with a warm, hearty bowl of lentils, chicken or fish along with a serving of salad and some chapathi, bread, rice or pasta. Finish off with a good dessert like poached pears or apples, a serving of fruit and custard perhaps.

Now think about how you eat your food. Eating should be an enjoyable process. Always relish your meal. Once you start following a healthy food chart, both your gut and your mind will be content and cravings for unhealthy food will also reduce gradually.

Do note that nowhere in the meals is ‘diet’ or ‘low fat’ food written.

That is because your body doesn’t need it when you eat a balanced meal. Isn’t that great? Just as you have to keep the car running every day, you also need to do the same with your body.

But given how sedentary our lifestyle is, compensate by walking whenever possible. Take the stairs instead of the lift, walk to work, walk for your errands… get the drift? The idea is to get at least half an hour of intense physical activity a day.

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ON THE ROADS

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Passline News Service

ndian roads will witness a revolution in coming days . Renowned car makers including Mercedes is hitting the road with new models of vehicles. Among the list the prominent ones are Mercedes Maybach S600, Renault KWID, new Ford Figo and the Mahindra TUV300 .

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No doubt, the Indian automotive industry has been one of the strongest across the globe. Early this month, a couple of popular models were launched with fresh upgrades in the country – the first ones to be launched were the new Maruti Ciaz Ciaz SHVs (Smart Hybrid Vehicles) and the Skoda Rapid Anniversary Edition, soon followed by Land Rover Discovery Sport, Audi A3 petrol and the Mercedes AMG C63 S. With an amazing start some of more interesting models are also in the beeline.

The Mahindra TUV300 has been one of the most awaited launches for this year. The vehicle has been

engine that would generate about 80bhp of power.

The vehicle shall be offered in five-speed manual and automated manual transmission (AMT) variant. The TUV300 is expected to be offered at a price range from Rs 5 lakh to about Rs 7 lakh.

Renault KWID The Renault KWID is expected to be powered by 800cc, BR-8, 3-cylinder DOHC petrol engine

For safety, the vehicle may get EBD (electronic brake-force distribution), ABS (anti-lock braking system), and dual front airbags (top-model might get 6 airbags). The vehicle may be offered around the same price tag.

Mercedes Maybach S600 that would generate a power output of 57bhp and 74Nm of torque and will likely return a classleading mileage figure of about 25km/l.

Apart from 5-speed manual transmission, the company may also offer AMT (automated manual transmission). The vehicle is expected to be offered around Rs 5 – 7 lakh segment.

Ford Figo

spotted on numerous occasions undergoing road test in the country. Expected to be well under 4-meters, it is likely to emerge as a competitor against Ford’s Ecosport. The compact SUV is powered by 1.5-Litre mHawk diesel

VCT petrol and a 1.5-litre TDCi diesel engine that would produce a maximum power of 86.7bhp and 98.6bhp respectively. Some of the features that could likely feature in the new model would be SYNC 2 multimedia infotainment system, automatic climate control, multi-function steering wheel, and reverse parking sensor.

The upcoming Figo hatchback shall be offered in 1.2-litre Ti-

The Mercedes Maybach S600 shall get 6-litre, V12, bi-turbo engine that would be mated to seven-speed automatic transmission. The powerful engine would generate about 523bhp of power with 830Nm of torque.The vehicle shall get about 200mm lon-

ger wheel base than the standard variant. The sedan would also be about 207mm longer than the regular S-Class. The new trim gets redesigned grill and new alloy wheels. For the rear seat passengers they get adjustable backrests. Moreover, the Maybach logos can be seen embossed across multiple places in the upholstery to stand to its upmarket image.

Nov 15 - Dec 15, 2015

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one each in Bangalore and business development practices. he NeST Group in Wisconsin, USA. The The certification thus covered the has become one Kochi units – NeST In- entire gamut of services rendered of the first comformation Technologies, by various NeST Group entities. panies in the world to Kalamassery, NeST Tech be certified as per ISO The quality journey of the Group, Park, Edachira and SFO 9001:2015 Standard, which is celebrating its Silver Juwhen five of its facilities Javad Hassan Technologies - JKH Tech- bilee in 2015, began with the first nologies Centre R & D, passed the audit conducted by ISO 9001 certification for its softBureau Veritas Certification (In- CSEZ - are engaged in software ware business in 1997. The jourdia) Pvt Ltd. The 2015 version design and development, projney has included many of the ISO 9001 Standard was ect management, design, firsts and spans other published by the International development and protostandards like ISO 27001, Organisation for Standardisation typing of sub-level asISO 13485, ISO 26262, only last month and the NeST semblies and high level AS9100C, etc covering assemblies, for domains Group, with its single-minded the various verticals. as diverse as GIS, Insurfocus on enhancing process and ance, Banking, Health- N. Jehangir “At NeST, our quality product quality, had moved fast care, Communications, Automo- focus merely reflects our comin its adoption, thus achieving tive and Aerospace. While NeST mitment to customer satisfacthis rare distinction.

Aerospace, based in Bangalore, tion. When you are dealing with The five Group entities that got certified for aeroplane black the world’s best and the biggest achieved this distinction in- box data analysis services, the corporations like Michael Baker clude three based in Kochi and US office made the grade for its International, Verisk Analytics,

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roma Group of Companies is expanding its premium-luxury hotel brand -- Fragrant Nature Hotels and Resorts -- in Fort Kochi and Munnar, following the successful launch of Fragrant Nature Backwater Resort & Ayurveda Spa in Kollam as part of the company’s plan to strengthen its presence in India.

The two five-star projects, with a total investment of Rs 250 crore, were inaugurated in Fort Kochi.

‘Fragrant Nature Kochi’ was inaugurated by The Most Rev Dr Philipose Mar Chrysostom, Valiya Metropolitan, and ‘Fragrant Nature Munnar’ was unveiled by cine actor Padmashree Bharat Mohanlal.

“Aroma Group ventured into hospitality business in 2008 by establishing a 4-star hotel near the backwaters of Kollam. I am extremely happy to point out that PASSLINE

Nov 15 - Dec 15, 2015

it is the first time in Kerala that two five-star hotel projects are being launched simultaneously.

Our next hotel project will come up in 10 acres at Mararikkulam,

he added. Aroma Group was started in Dubai two decades ago and now has strong roots in India & Europe. Elaborating on the projects, Anne Sajeev, Managing Director, Aroma Group of Companies, said, “After the Mararikulam project, which is expected

Ace actor Mohanlal after the inauguration of Fragrant Nature Munnar, a fivestar hotel project of Fragrant Nature Hotels & Resorts Pvt Ltd, at Fort Kochi .

near Alappuzha, with a paid up capital of Rs 100 crore,” said Sajeev P K, Chairman and CEO, Aroma Group of Companies.

“The company is also building an Ayurveda Village in Kollam,”

to be completed by end-2016, we are planning to expand the Fragrant Nature chain of hotels and resorts beyond Kerala and India.

Our hotels are constructed by strictly adhering to quality stan-

Barclays Bank, etc, one has to constantly raise the quality bar”, said Nazneen Jehangir, Executive Director of the NeST Group, commenting on this remarkable achievement.

Besides software and electronics design and manufacturing, the NeST Group also has presence in Infrastructure, Food & Beverages and Education & Training. Javad Hassan, Chairman of the Group, is a decorated technocrat who had served leading US multinationals like IBM in senior positions, while N Jehangir, Vice Chairman & Managing Director, looks after strategy and operations that are spread across the US, Europe, Middle East, India, Japan and Australia. dards and norms. Another major characteristic of Fragrant Nature Hotels is its eco-friendly designs and green interiors.”

The hotel, situated on the same locale where the erstwhile East India Company had established their office, houses a period Trompe L’Oeil art work in the lobby by two of the best Trompe L’Oeil artists of the United Kingdom (UK). The first of its kind art work in India, signifies the sociocultural ethos of Fort Kochi and its surroundings, and has tremendous significance in the history of Kerala.

The Fort Kochi hotel will boast a premium spa, two restaurants, coffee shop and a swimming pool on the top floor. The speciality restaurant will serve European cuisine, besides Indian flavours.

The Fragrant Nature Munnar, styled similar to the local planter bungalows, is located at Pothamedu. One of the major highlights is that all of its 43 rooms offer unhindered view of the beautiful hill ranges of Western Ghats. This is the first five-start project in Munnar.

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Chairman and Managing Director of HLL Dr M Ayyappan handing over the dividend cheque to Union Minister for Health and Family Welfare Jagat Prakash Nadda, in the presence of Secretary Health & Family Welfare B P Sharma; Additional Secretary & Financial Advisor (MoFHW) Vijaya Srivastava; Additional Secretary N S Kang, Joint Secretary Dharitri Panda, and HLL Directors R P Khandelwal and Dr K R S Krishnan.

HLL pays Rs 466 lakh dividend to Union government

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LL Lifecare Limited (HLL) has paid Rs 466 lakh as dividend to Government of India for the financial year 2014-2015.

This is the fourth consecutive year that HLL has crossed Rs 1,000 crore business from its operations. The total volume of business handled by the company has grown from Rs 1,590 crore in the last financial year to Rs 1,678

crore this year.

At a function in New Delhi, Chairman and Managing Director of HLL Dr M Ayyappan handed over the dividend cheque to Union Minister for Health and Family Welfare Jagat Prakash Nadda, in the presence of Secretary Health & Family Welfare B P Sharma; Additional Secretary & Financial Advisor (MoFHW) Vijaya Srivastava Additional

Secretary NS Kang, ; Joint Secretary Dharitri Panda, and HLL Directors R P Khandelwal and Dr KRS Krishnan.

Nadda commended the HLL team for its consistent growth over the years. “This year, we have seen a significant growth of 12.35 per cent in revenues from operations; from Rs 941.68 crore in 20132014 to Rs 1,058 crore this year,” said Dr Ayyappan. “HLL has

crossed Rs 1,000 crore last year, exclusively from our manufacturing and services businesses.”

The company also witnessed a 9.46 per cent growth in its gross operating margin and a 6.7 per cent growth in its net worth compared to the last fiscal.

HLL, with its registered and corporate office in Thiruvananthapuram, is a Mini Ratna Public Sector Enterprise, under the Union Ministry of Health & Family Welfare.

Stark Communications bags awards Logo unveiled for SME meet tark Communications picked up the top awards for the fifth consecutive year, including Agency of the Year title, at the Bangalore Advertising Club’s Big Bang Awards for Excellence in Communication and Media in South India.

The leading ad campaigns agency also received four gold medals for its creativity for Kerala Tourism, Malayala Manorama and Heera Homes; six silvers and two bronzes. The other medals were for its work for Aster Medcity and Kerala Blog Express.

The competition was tight with 72 agencies from across India putting forward about 980 entries in 58 categories. The online judging panel included 46 senior advertising, marketing, media, PR and digital professionals, as well as health-care specialists and techno-entrepreneurs from India and the Far East.

Stark Managing Director Roy Mathew said the company was happy that its work is being consistently judged the best by advertising industry leaders. The two-decade-old Stark Communications with 150-strong staff had, earlier this year, won a slew of medals at the Pepper Awards 2015, the MADDYS 2015 and the prestigious IAA Olive Crown Awards.

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arking the progress in the run-up to Kerala Businessto-Business Meet 2016, State Industries Minister P K Kunhalikutty has launched the logo in Thiruvananthapuram for the mega three-day meet, exclusively for the small and medium enterprise (SME), slated to be held at the CIAL Trade Fair & Exhibition Centre at Nedumbassery in Ernakulam district from February 4 next year.

The logo is bearing the slogan “Opportunities Face 2 Face for SMEs”—alluding to the aim of creating a buyer-seller network that enables one-to-one interaction.

The February 4-6 meet will focus on seven key sectors in the state: food-processing; handlooms, textiles and garments; rubber; woodbased industries; Ayurveda,

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health and cosmetics; engineering, electrical & electronics and handicrafts.

The Directorate of Industries & Commerce will identify and select 200 SMEs for the meet, while apex trade body and the event’s ‘trade & industry partner’, the Federation of Indian Chambers of Commerce & Industry,will bring in 300 national and 50 international buyers.

The event, with Kerala Bureau for Industrial Promotion(K-BIP) as the nodal agency, is being organised in association with the Directorate of Industries & Commerce, the Directorate of Handlooms & Textiles, the Kerala State Industrial Development Corporation (KSIDC) and the Kerala Industrial Infrastructure Development Corporation.

Nov 15 - Dec 15, 2015

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Federal Bank bags IDRBT award that includes FedBook Selfie, the first-of-its-kind mobile App for account opening and Scan N Pay, the innovative mobile based Payment app which has the capability to scan the QR code, facilitating payments at merchant outlets & ecommerce websites as well as person-to-person fund transfer.

Federal Bank is winning the

IDRBT award for the 5th consecutive year. In 2013-14, the Bank was recognized as Best Bank for Use of Technology for Financial Inclusion, Best Bank for Social Media and Mobile Banking, Best Bank for Business Intelligence Initiatives and Best Bank for Best IT Team.

Federal Bank posts Rs 1.25 lakh crore business Federal Bank Executive Director Ganesh Sankaran receiving the IDRBT Banking Technology Excellence Award 2014-15 from RBI Governor Raghuram G Rajan. ederal Bank has won the received the award from Dr Raprestigious IDRBT Banking ghuram G. Rajan, Governor, ReTechnology Excellence Award serve Bank of India. Instituted in 2014-15 for Digital Banking, 2001, the IDRBT Banking TechAnalytics and Big Data in the nology Excellence Awards are mid-sized banks segment. The meant to recognize and honour award was presented to the Bank the best innovative use of inforat a function held at the Institute mation technology to enhance the for Development and Research in levels of customer delight.

Banking Technology (IDRBT), The IDRBT Award is recognition Hyderabad. Federal Bank Exec- for the series of digital initiatives utive Director Ganesh Sankaran undertaken by the Bank this year

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Federal Bank registered an Operating Profit of Rs 336.57 crore and a Net Profit of Rs 161.28 crore for the quarter ended September 30, 2015. The Operating Profit and Net Profit for the half year ended September 30, 2015 stood at Rs 703.78 crore and Rs 302.67 crore respectively, according to the Unaudited Financial Results.

Backed by a 14.28% increase in Total Deposits, the Total Business of the Bank registered a Y-oY growth of 10.28% to reach Rs

124649.87 crore as on September 30, 2015. The Total Deposits increased from Rs 64563.86 crore as on September 30, 2014 to Rs 73783.20 crore as on September 30, 2015. Total Advances grew from Rs 48466.14 crore to Rs 50866.67 crore, up by 4.95%.

NRE Deposits of the Bank registered a 28.75% growth from Rs 21140.14 crore to Rs 27217.34 crore. CASA Deposits grew by 19.16% Y-o-Y to reach Rs 23513.17 crore.

Seaplane to connect Kochi-Lakshadweep uest Kodiak 100 amphibian, which is the first aircraft purchased by Seabird Seaplane Private Ltd, an initiative of two technocrats and financially supported by an associate company of INKEL Limited, is readying for connecting destinations in Kerala and Lakshadweep.

A second aircraft of the company is currently undergoing special modifications for water operations in the United States. It is expected to arrive within a month.

Quest Kodiak has arrived at Co-

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Nov 15 - Dec 15, 2015

chin International Airport. The ten-seater will be based at Cochin International Airport Lim-

ited.

Flown by two Kochi-based pilots, the aircraft took off from South St

Paul airport in United States on September 27. Flying over four continents — North America, Europe, Africa and Asia—in weather conditions varying from -20 deg Celsius to +50 deg Celsius, it flew for more than 80 hours before arriving in Kochi.

En route, it stopped in 20 places for refueling: three stops in Canada, two in Greenland, one each in Iceland, Faroe Islands, Scotland, two stops in France, one each in Italy, Greece, Egypt, two stops in Saudi Arabia, one each in Bahrain, Oman, Pakistan and finally two in India.

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GKSF: Massive shopping spree from December 1 to January 15

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he stage is set to take the and Commerce, Finance departmega shopping festival of ment and Local Self Government Kerala in the Departments. The grand success of country to the the event has made centre stage.

GKSF an annual The State is event that shoppers organising the Grand Kerala even from abroad visit the mammoth Shopping Fesevent. As the Tourtival (GKSF) ism department’s from Decemcampaign is gober 1 to Januing on welcoming ary 15 in order tourists to Kerala; to bolster the business esthis year GKSF has been christened tablishments, M Muhammed Anil as Mega Season 9. traditional industries , tourism sector. The GKSF Mega Season- 9 inaugurashopping festival is held under tion will take place on December the aegis of Kerala Tourism in 1 in Kollam. co-ordination with the Industries As the country’s main merchant

Muthoot Fin net up

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uthoot Finance Ltd posted increased net profit at Rs 174 crore for the quarter ended September,2015 as against Rs 171 crore in the previous year quarter. Retail loans registered an increase of Rs 464 crore at 2% during the quarter and Rs 3071 crore at 14% during the last 12 months. Total weight of gold jewellery pledged is 144 tonnes in H1 FY 16. Branch network is 4249. Gold loan outstanding is Rs 24285 crore. Branch network is 4249. Number of employees is 22929 in F1 FY16 The Sri Lankan subsidiary, Asset Asia Finance PLC, has made considerable increase in the lending portfolio. The loan portfolio has grown by 52% as on September 30, 2015 at LKR 5.4 billion as against LKR 3.6 billion in the previous year. The profit after tax for the same period has increased by 40% at LKR 76.8 million and LKR 55 million respectively.

Commenting on the results M G George Muthoot, Chairman, stated, “An economy where optimism is yet to become reality, Muthoot Finance could grow its loan portfolio by Rs 464 crore during the quarter and deliver good profits.

We are rolling out various customer friendly schemes which we hope to bring in new set of customers as well as newer usages for gold loan. Board of Directors is glad to declare an interim dividend of 40% resulting in a payout of Rs 191crore including tax.”

Speaking on the occasion George Alexander Muthoot, Managing Director, said, “The acquisition of 100% equity shares of Muthoot Insurance Brokers Private Limited (MIBPL) will diversify the company’s business activities. This will enable the company to meet insurance cover needs of its large customer base. We expect the insurance broking activity to excel by becoming a 100% subsidiary of Muthoot Finance .”

and trading community is cooperating with the mela and shopping experience this is an ideal time for conducting the shopping festival, said G K S F Director K M Muhammed A n i l .

Commercial entities in premium, silver wings remitting Rs 25,000 and Rs 5000 registration fees respectively can participate in the event. Shops in general category

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can participate without registration fee.

Handicraft sector has been given priority in the festival.

Orphanages, old age homes, hospitals inmates can liberally shop in the mela. The scheme `Shopping for others’ can be utilized to buy and sell products for them.

Various establishments have given over Rs 10 lakh offers for this scheme, said Anil.

Hues of amazing gifts and surprising prizes are awaiting the participants. Kerala State Backward Classes Development Corporation has granted Rs 25 crore loan this season, in place of Rs 12.5 crore loan last year.

Eastern Condiments targets 30L retailers

astern Condiments, the flagship of Eastern Group, targets 30 Lakh retailers by 2020. Our unique direct distribution model, our servicing of retailers and our quality of products has seen great acceptance across the country”, said Firoz Meeran, Managing Director of Eastern Group, after announcing the company’s second quarter performance.

In the second quarter ended September, the Kochi-headquartered company reported revenues of Rs 192 crore, a growth of 21 per cent from the same period last year.

The growth was led by its mar-

kets outside Kerala, which grew at 48% to Rs 55 crore.

Eastern Condiments, already India’s largest spices exporter, grew exports by 2% in the second quarter while continuing to grow its mature home market of Kerala by 17%. This marks a record 10th consecutive quarter of uninterrupted quarter on quarter revenue growth, said Firoz Meeran.

Eastern Condiments, which reported a turnover of Rs 700 crore in 2014-15, has been awarded the largest exporter of spices by Spices Board of India for the last 15 years consecutively.

Eastern Gurukuls moots vocational training in Kerala-based Engineering Colleges

T

he 950-crore Eastern Group, as part of its Corporate Social Responsibility initiatives, is starting a flagship programme namely “Eastern Gurukul” at engineering colleges in Kerala with an aim to bridge the employability gap existing in engineering college students.

Engineering Colleges which join the “Eastern Gurukul” initiative will be offered a free of cost technical skill training programme by name “Margadarshi” for its students and a capacity development programme namely “Gurudakshina” for its faculties.

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