Passline Business Magazine May-June 2011 by Passline Business Magazine

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SVSâ&#x20AC;&#x201D;education for the new era

ocusing on the all-round development of the students, the SVS Group of Institutions has introduced S.Chandrasekaran Chairman the latest achievements in the educational sector in its institutions. Established in 2009 with the objective of providing value-added education, SVS has set up advanced study centres for students. Managed by the Velammal Subbiah Educational Trust, Coimbatore, and promoted by Mr S Chandrasekaran, Chairman, an eminent industrialist, SVS has widened its wings to provide quality and holistic education, research and training facilities for the youth. The first self-financing group in Coimbatore, the SVS institutions are affiliated to Anna University, Coimbatore, and also have the ISO 900:2008 certificate from TUV Rhineland. Under the celebrated brand of SVS, courses

come centres of excellence in the fields of engineering and technology, management, architecture and computer applications. Aggressive about quality and academic devotion, the institutions are trying to be ranked as the best in the field of higher education. SVS offers undergraduate courses such as BE in computer science and engineering, electrical and electronics engineering, electronics and communication engineering, mechanical enDr T Kannan, M E, Ph D, Principal gineering and civil engineering and BTech in information technology along such as engineering, management studies, com- with MCA, MBA and BArch. Principal is Dr T puter applications and architecture are being offered Kannan, M E, PhD. in its various colleges. SVS institutions can be contacted at SVS EduThe vision of the institutions is to promote char- cational Institutions, J P Nagar, Arasampalayam, acter and value-based education and empowerment Coimbatore-642 109. Contact No: (0422) 2619300of students to excel in life. Their mission is to be- 3, 90470 19993. Email: info@svscolleges.org.

From the Editor Who will reap the advantage? M

Editor & Publisher

VARGHESE PAUL Kochi Correspondents

SUBIN MANANTHAVADY Ph: 9946903949

JINESH M.D. Ph: 9037435272

Chennai

Both Hazare and Ramdev want a complete cleaning up of our administrative system. But where the two differ is in the kind of followers each has: in Hazare’s case the participants were from all sections of society— from street dwellers to the rich elite living in bungalows. They include highly literate people, professionals, industrialists, company CEOs, Government employees, teachers, students, housewives… But at Ramdev’s venue were illiterate villagers from his native village, people who do not even know about corruption, black money and inflation. Hazare’s venue was the dusty street of Jantar Mantar where he could bring all classes of people. Ramdev’s was one where luxury and opulence were in evidence, including air-conditioners. While people from all religions participated in Hazare’s protest, what Ramdev conducted was a political jamboree. The Ramlila Grounds stage was shared by members of the Sangh Pariwar and also his followers, including the rabid communalist Sadhwi Rithambara. The UPA Government alleged that what the yoga guru conducted was a political get-together aimed at instigating the people against the Government, not a campaign against corruption. “The presence of Sadhvi Rithambara gives credence to the Government’s view that the ‘yoga camp’, which the swami had said he wanted to hold at the venue, was nothing of the sort,” said the Government.

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ahatmaji very effectively used the hunger strike against the British Raj for the country’s independence, and it was acclaimed worldwide. And Gandhiji’s nonviolent struggle and his tolerance brought independence to us. Since then several people have used the tool—hunger strike—for several causes, some trivial, some serious. Two hunger strikes that attracted all-round attention recently were those undertaken by social activist Anna Hazare and yoga guru Baba Ramdev. The issues raised by the two were almost the same and are indeed highly reasonable and affect all sections of people, though there were significant differences in the nature of the protests. While the Hazare fast was amicably settled to the satisfaction of his side and the UPA Government, that by the flamboyant billionaire Baba Ramdev ended in a fiasco with the police coming down heavily on it dispersing the swamiji and the crowd that had assembled on Ramlila Grounds forcibly. Though the UPA ministry in both cases harped on the theme that political motives guided those behind the agitation, there is no doubt that crimes like corruption and black money involving billions of rupees will make a dent on our economy and have become issues beyond considerations of party politics or ideology. Since both the protests have become the most-debated among the media and the general public, the matter has given many sleepless nights to our policymakers. I strongly believe that we should analyse both the agitations with respect to their goals, nature or the people who are going to have the advantages. Who will have the last laugh—the people, political parties, the Government or some others?

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Moreover, the credentials of Ramdev are also questionable. The Government is saying that Ramdev and some senior ministers in the Cabinet had a fruitful discussion at which the latter had agreed to most of his demands and in return Ramdev had agreed to withdraw his hunger strike. But he backtracked and went on with the agitation without disclosing the outcome of the discussion to his followers. The Government also says that Ramdev did not have the permission from the authorities to organize a strike in a high-security area like the Ramlila Grounds, and hence the police swoop on the swami and party. Hazare was reluctant to express solidarity with Ramdev initially because he (Hazare) said he is doubtful about the swamiji’s agenda. Verbal attacks and counterattacks have polluted the atmosphere and things are getting murkier and murkier. There is, however, no doubt that if we spoil this time and atmosphere to mend things, it is the dark forces of society who will have the last laugh.

Readers' views

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Queering the pitch Sir, The article ‘Inventions and innovations: India’s bleak future’ by Mr K Vijayachandran is astonishingly enlightening. It is a shame for India that the Korean Republic, with hardly 5% of the population of India, had 1,66,189 patent applications compared with India’s 24,505 in 2006. The Chinese were nearly 25 times more inventive compared with the population if we go by patent statistics with regard to new inventions and patenting activities. It is now clear that population alone brings no development to a nation. It is the work culture and political atmosphere that determine economic growth. See how well China had organized the Olympic Games whereas the Commonwealth Games in India was mired in controversy and corruption which has eroded our reputation globally. According to the Central Board of Direct Taxes (CBDT), taxmen have seized black money worth a whopping Rs 30,000 crore in the country in the past two years. This is only the tip of the iceberg. If the rulers are capable of recovering the money involved in scams, the unaccounted funds in foreign banks and evasion of income tax, India may become the most economically developed country in the world, surpassing Japan and China. Indians are living in a situation where ‘the fence is eating the crops’! Anoop Unnithan, Abu Dhabi.

Letter box & PIN Code Sir, Kudos for the write-up ‘Letter box @inbox in mobile’ by Mr K K Devis (April-May 31) reminding people of the significance of the PIN Code in the address and the letter box at the front gate of the addressee. Dixon A D, Bandra, Mumbai.

Varghese Paul

Change of attitude needed Sir, This has reference to the article ‘Ads growth: Why is Kerala lagging?’ (April-May 31). It is a fact that many companies don’t have a presence in the national advertising scene as was evident from the IPL cricket match held in Kochi recently. Not only that, the World Cup Cricket win has enabled players like Mahendra Singh Dhoni, Sachin Tendulkar, Yuvraj Singh and Gautam Gambhir to raise their endorsement rates for being brand ambassadors to promote various products of a single company to the Rs 100crore club (not Sachin alone as has been wrongly reported in your column). Our work ethics and political interference through union activities hamper the State’s economic growth so that many giants are reluctant to set up their projects here. That is why Kerala is lagging in this field. Jayan A R, Taliparamba, Kannur.

COVER STORY

The UDF has won the support of Keralites, albeit with a small margin. Now it must convince them and the outside world of its legitimacy. The nearsmooth

succession

should be reason for the state to feel relieved. The advent of the new ministry undoubtedly presents an opportunity which, everyone hopes, it will use in the right way.

PASSLINE

May 31 - June 30, 2011

By Subin Mananthavady

he people of Kerala have always changed their government after every election. This time too they have done it, but can the Government change the state? That is the question consuming Kerala’s chattering classes now that Oommen Chandy, of the Congress, has swept to the leadership of the United Democratic Front.

brought new hope to millions of voters who have for the past five years been desperate for a credible alternative to the Left Democratic Front that had governed since 2006.

Can the mild-mannered Oommen Chandy steer his party and the other UDF constituents from the many criticisms that they have come to symbolize? With his pledges of the state’s economic emancipation and the big push that he intends to give to its industrialization along with more jobs for its unemployed youth, Mr Oommen Chandy seems bent on appropriMr Oommen Chandy’s ascent ating the role of champion of the underdog. to the Chief Minister’s poKeralites have now plunged into a debate about the state’s sition has transpriorities for the next five years. Though the LDF Government formed Kerala’s initiated many measures intended for the development and political landgrowth of the state’s economy it cannot be said to have sucscape and ceeded in accomplishing much. For Kerala to progress it needs strong institutions along with a strong government and a strong leader. Seldom in modern Kerala history has a political outfit come to power with such a thin majority as the UDF. Given the several problems that the state faces—many of them urgent—as well as a strong and determined Opposition led by master crusader V S Achuthanandan, the Oommen Chandy Government must pursue prudent approaches that will foster quick economic growth. This undoubtedly is job number one of the Government of the state of 33.1 million people. The electorate’s antipathy to some of the policies of the previous Government was reflected in the results.

PASSLINE

May 31 - June 30, 2011

6 The CM appears to have tackled the ambitious demands of his main allies and has fixed the Cabinet strength without serious problems. But a unilateral announcement by the Muslim League of the fifth minister’s name from the party has suddenly created confusion. Business is looking to the new Government for policies that encourage growth rather than simply redistribute money from one group to another. So one area in which the Government can do immediate and immeasurable good is to vigorously declare for a strong and bold investment front. Another front on which it should concentrate is energy. Though ministers in successive governments had been speaking of investing millions of rupees in alternative energy sources, nobody seems serious about it. Kerala is one state which suffers seriously from power shortage and the situation will worsen in the coming years.

initial phase. The Kochi metro rail project is entangled in administrative bottlenecks. While the state Government wants it to be implemented with financial support from the Centre, the Planning Commission is adamant that a public-private participation (PPP) model should be implemented. It is time the Kerala Government took a decision on the project and went ahead with it. The people are least bothered whether it is going to be in the public sector or in the private or even in both. Some other projects too need immediate attention from the Government. The second-phase development of Infopark, the electronic park proposed at Kalamassery, the LNG terminal project scheduled to be commissioned in 2011 but which got delayed further, the city piped gas project and the second phase of Vyttila Mobility Hub, the Trade and Convention Centre at Udyogamandal, the Industrial Corridor and the High-speed Rail Corridor are among these. The task before the Government is to ensure that these projects take off in the stipulated time. Kerala needs many new reforms too, like energy reform (the state faces an acute energy deficit, as stated above), financial reform, industrial reform and Government reform. Though the state has been staggering along with practically no growth or investment worth the name under successive regimes, there is little that the UDF or the LDF has promised on industrialization and infrastructure development. So the

people want a government that works not a front that doesn’t. “The UDF has just romped home after a stiff and close battle. The majority is 72 against 68. But as the Chief Minister has put it, victory is victory and the margin is not important. In the past, in Kerala, governments which enjoyed slender majorities had completed their terms successfully. Though the CM and his colleagues may draw consolation from this, the dark clouds on the horizon are not a good sign. The CM appears to have tackled the ambitious demands of his main allies and has fixed the Cabinet strength without serious problems. But a unilateral announcement by the Muslim League of the fifth minister’s name from the party has suddenly created confusion. Mr Oommen Chandy may solve this problem also somehow. But soon the coalition partners will start mounting more pressure and it remains to be seen how long the CM will be able to continue”, says Mr P C Cyriac, a former IAS official. “In this context, the best policy for Mr Oommen Chandy will be to play the IPL game: hit out from the start and score as many runs as possible before the rain comes and stops the game. Whenever it happens, he should have enough runs in his pocket for defence. He should have enough achievements to parade in the event of a sudden election and then to be able to win a fresh mandate and get back to the saddle. The fast decisions taken by the Cabinet at its first sitting show that he is determined to make the most of the opportunity and deliver results. Athivegam, Bahudooram is a slogan still relevant,” says Mr Cyriac. The Confederation of Indian Industry (CII) has suggested an effective law and order mechanism and transparency in governance. It has prepared a common minimum economic agenda for Kerala which the new Government should consider on a priority basis for employment generation and the sustainable development of the state. According to the CII, the Government should create a land bank for industrial purposes and permit vertical industrial estates and industrial corridors like the KochiCoimbatore corridor. In the agricultural sector, 10% of the existing plantations should be earmarked for cash crops. This will create employment and generate wealth. Five percent of the total land should be permitted to be used for eco-tourism. Kerala should be targeted among the top three Indian states on productivity for key crops, along with promoting organic farming and modern techniques in farming to increase productivity.

Above everything else the people want a stable and progressive government, especially one that is transparent, corruption-free and development-oriented. The Chief Minister and his Cabinet colleagues must remember that a majority of people feel that nothing is going to change in Kerala whichever front or party rules it. Many others think that the waferthin majority of the UDF means that the Congress will have to appease every coalition member while making policy decisions. So not everything is going to be hunky-dory for Mr Oommen Chandy. The Congress and its allies should remember that there is much to be done to take the state forward. We have a sagging economy, an army of educated unemployed youth, a plethora of unfinished projects and a host of problems that cry for immediate solutions. There is no assurance on when exactly longdelayed projects will actually take off. There has only been the usual talk of comprehensive development of infrastructure projects being taken up in right earnest. Though potential areas of growth have been identified by successive governments, the question is how fast and how much the Government will do. In IT, delays have cost us dearly. For example the completion of the Smart City project in time would have taken the state well ahead of many others. But alas, not only has it not been completed, it has not even started the preliminary work. Now the Chief Minister says there will have to be certain changes in the agreement entered into between the Government and Tecom, its promoters, raising fears that the project may be delayed further.

The CII says special attention should be paid for the development of urban infrastructure and effective ways of mobility should be provided to the people. With Rs 4,800 crore spent on infrastructure in the last few years, there is a need to create a special package of Rs 6,000 crore for improvement of roads, inland waterways for effective mobility and also development of industrial infrastructure. Better transportation and other civic amenities should be in place and with rapidly increasing urbanization, plans must be

Kochi, the commercial capital of Kerala, expects the Government to take up the long list of major projects that are in various stages of completion and others that are yet to take off in and around the city. The first and foremost, of course, is Smart City. Five years after the project was mooted, it is still in its PASSLINE

May 31 - June 30, 2011

7 drawn up to provide housing for all and recreational spaces and service areas. There should be effective use of inland waterways for both passenger and cargo movement within cities. A North-South corridor should be developed for the speedy movement of cargo and passengers and also a highspeed rail corridor between Thiruvananthapuram and Kasargod. A uniform special economic zone (SEZ) policy, similar to other states, is needed to help the overall development of the private sector. The Government has to encourage development of small-scale industries in a big way as it will generate huge employment opportunities. The labour laws should be simplified so that employment generation is given adequate importance. “Keralites have never been satisfied with the performance of any government so far. That is the reason why they change governments every five years. This time the state witnessed one of the closest election battles ever in its history. The UDF’s thin margin of victory might turn beneficial to the people because the Government will be cautious and will be inclined to do good to the people as otherwise it stands the chance of being toppled easily. All political parties ought to learn a lesson from this election. The leaders should realize that people won’t tolerate a front that lacks transparency and earnestness. Everyone now sees the Oommen Chandy Government as reform-friendly,” says Mr John K Paul, President of TIE Kerala. “Industry has great expectations from this Government. But the question is: Will it deliver? Infrastructure should be its focus area. The state needs better roads and flyovers in towns facing traffic congestion. We need more projects like metro rail. Priority should be given to tackling waste management. The Opposition should allow the elected government to do its best without creating any obstacles,” says Mr John Paul, who is also the President of the Kerala Automobiles Dealers Association. “The required infrastructure should be provided to start world-renowned educational institutions in order to make the state an educational hub. International universities should be invited to offer specialized courses and programmes through tie-ups with local institutions. There should be a policy to promote ‘education for all’ thereby helping economically weaker sections,” says Sujin, an engineering student in Kochi. According to senior journalist K M Roy, there should be fair play in administration and empathy with the poor and the downtrodden. At the same time investment and development should be promoted in a transparent manner. Tourism, he says, is a booming industry in Kerala and tapping its potential will ensure the state’s development too. “Cleanliness is very essential. We should be a model for the rest of India. But what is the situation now? Till a few years ago people had to visit cities like Singapore to see huge buildings. Now we can see such buildings everywhere in Kochi. But Kerala’s scenic beauty is much greater than that of any other place. The Government should exploit this with a slew of measures to attract tourists. All facilities should be given to foreign tourists, especially transportation facilities. We can’t think of a Kerala without strikes or hartals. In Bengal the Government makes special travel arrangements for tourists and IT employees during hartals.”

“The Government should improve infrastructure facilities. Good roads and ample electricity are very essential. The roads and highways in Kerala are in bad shape and are an absolute disgrace. How is industrialization possible without electricity? Since only 2,600 MW of power is available from all sources in the state, the Government should consider promoting more hydroelectric power projects. We need a transparent and corruption-free administration. The previous LDF Government was at least not corrupt. There are also no economic offences against it. There was hardly any power cut during its regime. Both the LDF and the UDF have their own hidden agendas on the Smart City project. Now everyone can get any information through the Right to Information Act. So the Government should implement open policies for development and take care to avoid scandals”, adds Mr Roy. “Projects like Vallarpadam and Vizhinjam will not bring Kerala any advantage without proper infrastructure. Availability of power and better roads is essential for these projects. Otherwise they will become useless. So the Government should act with foresight. I think the UDF will complete its tenure. There is no possibility of a crossover to the LDF from the

but all in a haphazard fashion. Commodity prices are currently booming and reaching all-time highs. But Kerala farmers benefit little from the price surge. There has been large-scale diversion of land for construction purposes. Besides, there are replanting problems, low productivity, shortage of labour and reluctance of youngsters to enter cultivation. All this nullifies the effects of most of the gains that growers are supposed to derive from the record prices their products fetch. Our state is going to take the back seat in agriculture. Paddy cultivation has also declined here. Increasing productivity is the only solution. It is difficult because of the land shortage. Plantations are being filled and houses built on them. The Government should take steps to stop the diversion of agricultural land for other purposes and ensure that it is used for agricultural purposes only. Now nobody has any interest in agriculture because of the lack of motivation. Youngsters should be motivated to come into the field. For this the Government should raise the subsidies immediately. Methods of cultivation should also be modernized. Now the sector remains totally neglected. The Kuttanad, Idukki and Palakkad packages have not been implemented so far. Kerala should be helped to remain an agricultural state. Otherwise the state will disappear from India’s agricultural map,” says Mr Radhakrishnan. “The Government should promote eco-friendly industrial investments. But how is industrialization possible without expansion in any sector? Many environmentalists oppose industrial development. Their attitude must change. The Government should hold discussions with experts and take decisions suiting the current situation. Industrialization, which only will create employment opportunities, must get a boost,” Mr Radhakrishnan says.

UDF,” says Mr Roy. Mr N Radhakrishnan, Adviser, Cochin Rubber Merchants Association, who was also the association’s President for 13 years, says the Government should come forward with some innovative steps in the field of agricultural development. “The LDF Government had done several things in the agricultural sector, PASSLINE

May 31 - June 30, 2011

The UDF has won the support of Keralites, albeit with a small margin. Now it must convince them and the outside world of its legitimacy. The near-smooth succession should be reason for the state to feel relieved. The advent of the new ministry undoubtedly presents an opportunity which, everyone hopes, it will use in the right way. The famous advice to physicians, “First, do no harm,” might well be given to the Chief Minister and his colleagues.

SCHOOL ACCESSORIES

Kids climb the brandwagon Passline News Service

D With the entry of branded giants to our cities and towns trends among schoolchildren have changed tremendously. They want only a branded one from a heap of bags or water bottles. Branded items from abroad have reached the state in recent years offering higher quality and durability than those available domestically. Students are mostly influenced by the advertisement hype in the media.

PASSLINE

o you think that your child at LKG will give their nod to your selection of their accessories? If you think they will, you have wrongly judged their tastes. Children today are trendier than their parents have even been in their choice of thingsâ&#x20AC;&#x201D;whether their dresses or school bags.

With the entry of branded giants to our cities and towns trends among schoolchildren have changed tremendously. They want only a branded one from a heap of bags or water bottles. Branded items from abroad have reached the state in recent years offering higher quality and durability than those available domestically. Students are mostly influenced by the advertisement hype in the media. Interestingly, parents seem ready to spend any amount on accessories for their children. Bags, the most common and essential part of a kidâ&#x20AC;&#x2122;s schooling carrying celebrated labels of international giants, filled shop spaces on the eve of the opening of schools this season. Samsonite, Wildcraft, American Tourister, Genius, Carton, Harrison, Fantasy, VIP, Liviya, Sapphire, Carbon, Giordano and Adidas were among the most common available on the market. Samsonite, an American company

May 31 - June 30, 2011

famous for all kinds of bags, topped in prices which ranged from Rs 2,000 to Rs 3,490 in Kochi. American Tourister, also an American company, had bags in the range Rs 790-Rs 1,500. VIP, famous luggage manufacturer, had sold school bags throughout the city from Rs 2,000 to Rs 3,400. Wildcraft bags, noted for their five-year guarantee and costing from Rs 700 to Rs 1,500, had perhaps been the most-sought-after this season perhaps because of the guarantee offer. Liviya, an Indian company, found a big market with products in the Rs 600-Rs 1,300 range. With comparatively low prices (Rs 525-Rs 945), Genius could

penetrate the market well. Harrison bags were available at between Rs 800 and Rs 2,500. Adidas had bags in the range of Rs 1,200 to Rs 3,000. The company’s representatives claimed that many children liked sporty bags. The company mostly offered backpacks and shoulder bags. There were also pink and light blue ones that were very popular with girls and black bags that attracted boys. And for the really sporty kids there were Adidas gym sacks ideal for carrying gym kits to school. These are also very nicely designed. “American Tourister bags are well manufactured with tough rip stop fabric and have features like space for keeping pens, pen drives and CDs,” according to the company. Samsonite bags came with shock absorbers, laptop protection facilities and comfortable leather handles and flaps to protect zipper closures. Shopkeepers acknowledge that the change of trend witnessed by the school bag industry is due to the appearance on the scene by multinational companies. The boom in sales was not only due to advertisements resulting from the brand culture among children but also because the products are durable and of fine quality. Bags came with guarantees of one year to five years. “The prices have registered an increase of 20% to 50% this year. This however has not made a dent in sales”, said a shopkeeper. Water bottles had also undergone changes during the last few seasons. Children were familiar with the latest models from branded companies. Leading sports accessory sellers Adidas and Nike had come out with their costly water bottles. Adidas had priced them at between Rs 500 and Rs 1,300, while Nike’s cost Rs 450-Rs 900. Wildcraft had on display an array of attractive water bottles with a minimum price of Rs 245. Milton and Genius are the other two big brands in the water bottle market with the prices charged being Rs 110 and Rs 240, respectively. Students also had their own choices of branded pencil boxes and rain coats besides lunch boxes and umbrellas. Adidas had on offer five varieties of rain jackets for schoolchildren at a price of 2,700, which are usually found in the UK and many other foreign countries. Most common varieties of rain coats were from Reliable and Real, the prices quoted being Rs 1,080Rs 1,800 and Rs 200-Rs 500, respectively. Pencil boxes became costly when brands invaded the field. The prices varied from Rs 60 to Rs 250. Super Man priced them in the Rs 50-Rs 150 range and Wildcraft Rs 50-Rs 245. Milton and Cello are also leading brands. Umbrellas and notebooks had also not escaped from the brand culture. The usual familiar local brands reported brisk sales.

PASSLINE

May 31 - June 30, 2011

THE JOB MARKET

Social media The bottom line: In today’s competitive job market, it will be the ..................................................................................................................................................................................................................................................................................................................................................................................

resourceful and self-motivated participant in social media that ..................................................................................................................................................................................................................................................................................................................................................................................

will find the perfect job. And rather than sitting at home waiting ..................................................................................................................................................................................................................................................................................................................................................................................

for the phone to ring, using an array of interactive ..................................................................................................................................................................................................................................................................................................................................................................................

Web opportunities to meet decision-makers and stay on top of ..................................................................................................................................................................................................................................................................................................................................................................................

what’s going on is important. Make it easy for employers to find you!

By Krishna Kumar

hen you’re conducting a job search, you need to make it easy for employers to find you online. Employers, who can be inundated with resumes when they post jobs, often seek passive candidates (qualified candidates who aren’t necessarily looking for work, but who may be interested if the right job comes along). Anyone who doesn’t want to pass up what could be an excellent opportunity should make their professional credentials readily accessible online.

Use social media carefully: Social media, including sites like Twitter and Facebook, can help you find a job and connect with people who can assist you with growing your career. However, it works both ways. Social media when used the wrong way can backfire and jeopardize a job offer or even your current job. It’s important to be careful

and consider what you shouldn’t do, as well as what you should do, when using social media to job-search. Be straightforward: Does the employment history on your resume match what’s on your LinkedIn profile? Does the information you have on your Facebook page (if it’s public) match up with the information you have elsewhere online? It’s fine if you rework your job descriptions, for example, because targeting your resume is a good thing when applying for a job. What’s not okay is if your job titles, companies and dates don’t jive. That’s a red flag for prospective employers. Employers are checking out candidates on Facebook, Twitter and other social media sites. If you post it, one can guarantee that someone will read it and that very well could be the wrong person, ie a hiring manager. Posting company business (good or bad) and posting inappropriate information on Facebook are just a couple of examples of what can get you in trouble, or even cost you your job, especially when you do it from work. Be really careful what you tweet: You don’t know who might read it. Search Twitter for “I hate my job” for an example. Hiring managers and bosses

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for professionals are using Twitter, too, and if you say it someone will probably read it. Tweets show up in Google search and you don’t want to lose your job because you didn’t think before you tweeted, even if you hate it. Use privacy settings of Facebook: Here’s an example of what can happen when you aren’t careful about your privacy settings on Facebook. I received photos of a third party from one of my Facebook friends. She was able to send me photos of her friends, because they didn’t limit who their photos were shared with. I was able to see photos of someone I didn’t know simply because the person wasn’t careful about her privacy settings. If I was an employer, I wouldn’t have been impressed—she was having a really, really good time. Start early: Build your network well in advance of when you need it. Make connections in your industry and career field. Follow career experts.

Job postings: LinkedIn allows employers to post jobs on the site. The jobs are usually high-quality, professional jobs. Email: When I was first laid off, I sent a large email to everyone in my LinkedIn network, letting them know of my situation, and asking for any help or people they could put me in touch with them.

In a nutshell, give to get. Networking works both ways—the more you are willing to help someone else, the more likely they will be to help you. Take some time every day to reach out to your connections. Write a recommendation on LinkedIn, offer to introduce them to another connection, share an article or news with them. Giving to get really does work—your connections are more

wouldn’t be the first (or the only) person to do so. Many people jobsearch from work, but given the way companies monitor employees it’s not wise to use your work computer or email account for job-searching. Or, if you do, be really careful how you do it. LinkedIn essential for professionals: If you’re not already on LinkedIn, you definitely need to be. Basically, it’s a site that allows you to connect to people you know. It also allows you to see profiles of anyone else on LinkedIn, and gives you ways to connect to them. There are a few ways you can use LinkedIn in a job search:

Talk to your contacts on Twitter or the other networking sites. Join Groups on LinkedIn and Facebook, post and join the discussion. Be engaged and proactive in your communications. By building a network in advance, you won’t have to scramble if you unexpectedly lose your job or decide it’s time to move on.

likely to return the favour when you’ve offered to help them. The temptation, of course, when you’re job-searching is to spend time looking at job postings, perhaps uploading your resume to apply, talking to contacts or posting about the trials and tribulations of your job search on Facebook page. If you were to do that, you certainly

PASSLINE

Company search: One of the best ways to use LinkedIn is if you have a very specific company you are interested in. You search on that company, and hopefully find people who are connected to other people you know. Then you can ask your personal contact to connect you. Or, if you pay $30 a month, you have the opportunity to email people who you don’t have a contact in common with.

May 31 - June 30, 2011

Blog link: LinkedIn now gives you the ability to link your blog post to your profile. So every time I post a new blog post, it updates on my profile, so anyone looking at my profile will see what I’m writing about. It also includes the updated post in the weekly update emails that go out to your connections. Facebook advice: Notes for blog posts: Create a ‘note’ for each blog post. As mentioned above, notes stay on people’s screen’s longer. Some people may be more likely to read it if the text is right there on the screen rather than having to click through to the blog. Also, if they comment on it on Facebook, it becomes even more viral. Tag your friends: If you write a blog post that includes a reference to a friend on Facebook, tag them. That way, their friends will be alerted to your post, and your message will spread more quickly. (The author is Co-founder and CEO of GreenPepper Consulting India Private Limited| www.greenpepper.in, a social media-enabled HR services firm):krishnakumar@greenpepper.in)

PERSONAL INVESTING

The youth in Kerala are yet to learn about the various forms of savings and to park their surplus income in reasonable and innovative schemes. They are still reluctant to invest either in the share market or in mutual funds mainly because of ignorance and lack of time. However, real estate investment has gained much more acceptance among the youth. A majority still pin their hopes on conventional savings options like fixed deposits and insurance policies.

Shares, MFs yet to catch youth’s fancy By Jinesh M D

our grandfather made his money in banks. You had struck it rich in, again, banks. And you? You can score big with several phenomena. But do you?

surplus income in reasonable and innovative schemes. They are still reluctant to invest either in the share market or in mutual funds mainly because of ignorance and lack of time. However, real estate investment has gained much more acceptance among the youth. A majority still pin their hopes on conventional savings options like fixed deposits and insurance policies.

its ‘exceptional customer service’. “Depositing in banks gives maximum security to our investment and there is no risk or fear of loss,” she says. Besides saving in banks, Lakshmi also invests money in chits. She has only been saving seriously for the last four years mainly after she started earning royalties from books she has written. She thinks that investment in the share market is risky and keeps away from it. Nor does she buy gold either as ornaments or as an asset. She however keeps a small amount apart for joining insurance schemes.

Looking back over the past few years, it’s clear that different savings avenues have appeared on the scene which offer terrific A few young professionals and others opportunities for the investing class. Savshare with PASSLINE their opinions about ings are riskless, but investment savings and what means has always a risk factor. This conthey have chosen for it. tradiction perhaps shapes the Lakshmi Nayar, a culimindset of the people in the mat“I have been depositing in banks nary expert who presents ter of savings and investing. Though for the last couple of years when a television programmes on in the beginning of banking and thought arose in my mind that it recipes, says she prefers to share market operations people would be the right time to begin savinvest in banks as fixed dehad looked upon them with suspiings”, says Thanuja Bhattathiri, posits even though she cion and kept a distance from writer and granddaughter of thinks investment in land is those institutions either because Lalithambika the best option for benefits. Thanuja Bhattathiri litterateur Lakshmi Nayar of rumours or ignorance, the situAntharjanam. Thanuja says she Being preoccupied with her ation remains the same in respect of the puts her money only in banks “as I have tight work schedule she has no time to think latter option. little time because of my tight professional of alternatives. She has been having a and literary life schedule.” She is working in The youth in Kerala are yet to learn about longstanding association with IDBI Bank a hospital. the various forms of savings and to park their which, she says, she chose impressed by

PASSLINE

May 31 - June 30, 2011

13 Thanuja, who says she never thought of any savings until a few years ago as she believed in ‘enjoying life a bit’, prefers nationalized banks to keep her money with because she feels ‘nervous’ about depositing in new-age banks. State Bank of India and Indian Bank are her favorites. Thanuja believes that insurance policies are also good and possesses LIC policies. “As a hospital employee, I have always felt that insurance policies are a Deepu Karunakaran must, having witnessed many patients benefiting from them,” she says. Though she is aware of share market operations and the ups and downs of shares, “I don’t find the time to invest in shares.”

According to Asif Ali, an actor noted for his recent films, there are many avenues for saving but his preference is for banks. He saves his surplus income in fixed deposits. “Of course, I often buy gold coins too,” he says. He is interested in the share market but prefers to keep away from it, again “because of the busy schedule.” He may invest in shares in the future. Asif feels gold is the safest bet and thinks its price will not fall soon. Asif, just 23, started his savings after he debuted in films. Vinu Mohan who has played lead roles in some films has a good perspective on and knowledge about the prevailing investment opportunities. He plans to concentrate more on savings though he has some in banks and as gold coins. A graduate in English language and literature, Vinu sees land and gold as precious and valuable savings avenues. “The share market play is gambling,” says Vinu, and adds that he constantly watches the changes occurring there but keeps away because “followup is diffic

Mr Gerorge Briston, of Kaloor, another practising advocate, says more people are seen coming to the share market nowadays. “Apart from buying shares from companies, I also apply for shares when companies come out with public issues,” he says. He also has deposits in banks, besides insurance policies. Anand, another advocate, who beVinu Mohan longs to Kalamassery, has decades-long experience with many savings schemes. He however has a bad experience with the share market as he lost Rs 5 lakh on it a decade ago. “Buying shares is completely risky and is mere gambling,” he says. Buying plots of land is the safest form of investment, he says. He owns plots across the state. “The real estate sector is growing fast. Gold is subjected to fall in prices, and saving money in banks and in life insurance schemes fetches comparatively low returns,” he says.

Up-and-coming film director Deepu Karunakaran says he prefers to invest in land and gold even though he also uses the conservative way of depositing in banks. Deepu says both gold and land will not lose their value ult.” “Trends in the share and will scale heights. Just like many othmarket change every second. ers the busy director is unable to invest in We need to be updated on these shares or mutual funds. He thinks investchanges and can get the best ments in property need huge amounts results only through proper while other avenues can do with lower study and post-investment work. sums. Investments in the share market However entrusting these forneed careful study, follow-up and dedicaSooraj Chandran, a young IT promalities to brokerage firms is a tion for results. The young man behind the fessional working as a programmer good option”. Asif Ali S Joseph camera has a decade-long banking expein a leading company at Kochi’s Playback singer Afsal finds no alternative to rience. Infopark, prefers shares as he thinks they investing his money offer better growth opportunities. Though he in property. However is conscious of the risk involved in investhis investment has ing in shares, he firmly believes it could be never been profit-seekprofitable if there is enough time to spend ing but depends purely on on follow-up. His next preferences are mureligious beliefs and faith. “I tual funds, gold and EPS. buy land whenever I am able to. Deepthi Vijay, also working at Infopark, But I always make sure that a cerfeels that shares are a better choice as they tain percentage of the cost is given to offer higher returns and are ‘innovative’. Gold deserving people as sakkath.” and property are her other choices. “Bank Afsal says that interest-based banking deposits give only nominal interest rates system is against the preaching of Islam, while shares give more profit,” says she. his religion. That is why he never associates himS Joseph, poet and professor of self with it. Malayalam at Maharaja’s College, Kochi, Eldose Kunnappilly, President, Ernakulam Jilla has a different view about saving: he thinks Panchayat, who is a practising advocate, says provident funds are the best. He has he started savings from his school days. invested in various insurance Though he has fixed deposits in banks schemes including postal insurance. and some life insurance policies, Eldos’ Joseph says he is not against investpreference is for investing in property and ing in either land or gold. gold. He justifies this by saying that the The opinions of different people capital so invested increases by the day from all spheres of life show that a and there is no fear of a possible fall in the large number of people are still ignoEldose Kunnappilly prices. rant about share markets and the like Eldos shares his experience as an enwhile many have not enough time to spend trepreneur. He started a franchise of a share with the share market even though they are broking company in 2001 at Kakkanad. But, aware of it. There is another reason also says he, he had his finger burned even in the for a majority of people preferring to keep initial stage and he had to wind it up. their money in banks as deposits—secuDr Shaju, psychiatrist, Lourdes Hospital, is a rity concerns. The number of people makkeen observer of the economy and invests at the ing investments rather than putting their right time with the right perspective. He says money in banks is increasing as they think both property and shares give maximum that it helps the country’s development. But return on investments while bank the fact remains, however, that they as also deposits fetch comparatively limthose investing in shares and mutual ited returns. Dr Shaju says funds are very few in number. The gold too is good to invest in PASSLINE interview has also as its price rules stable and clearly shown that our people even continues to rise. He need immediate education does not directly buy shares on the share market and rebut does it through mutual lated activities. funds. PASSLINE

May 31 - June 30, 2011

.............................................................................................................................

ENERGY

By K Vijayachandran

The State Government has disbanded KSEB. A company by name KSEB Private Ltd has been registered and kept ready and waiting for the green light from the Centre. It is tough time ahead for this public utility and it is facing a manifold crisis: administrative, managerial, operational and of course legal and financial.

inister A K Balan had a comfortable time in managing the Kerala State Electricity Board: there were no serious power cuts and breakdowns during his tenure, and good monsoons helped to keep tariffs low. Towards the end of his term, he was busy with total electrification campaigns for panchayats, Assembly constituencies, taluks, revenue districts etc and distributing free CLF lamps for saving electricity and helping to solve the climate problem. He was even promising electricity connection just for the asking for anybody and everybody. But that seemed to be a tall order for KSEB, considering capacity constraints, quality problems, organizational inefficiencies, and then the confusions and complications created by the power sector reforms of the Union Government.

1970s. However, during the last two or three decades or ever since the Silent Valley controversy and the subsequent fall of credentials and degeneration of KSEB, power generation capacity in Kerala has almost been stagnant. In sharp contrast, generation capacity in the country as a whole has more than doubled to 167 GW during the past 20 years, adding every year some 5,000 MW on average. According to the latest Central Electricity Commission report, capacity addition in 2009-10 was 9,585 MW: 3,418 MW from the state sector, 2,430 MW from the Central sector and 3,437 MW from the private sector. Kerala’s performance in capacity addition has been dismal for the last several years and its share in generating capacity has been rapidly declining.

With the commissioning of major hydro power stations like Idukki and Sabarigiri in quick succession, Kerala had turned power surplus by the late

Power Generation Capacity As On 31-03-2010Source: CEA Annual Report India

Kerala

% Share Kerala

Thermal

108,363

783

37,367

1,933

5.2

4,560

Nil

0.0

16,787

0.2

167,077

2746

1.6

Hydro Nuclear Renewable Total

As on March 31, 2010 total generating capacity in Kerala was only 2,746 MW and the share of it was only 1.6% of the all-India capacity (see table). On a per-capita basis, generation capacity of Kerala PASSLINE

May 31 - June 30, 2011

today is less than half of the national average. In 2009-10 electricity generation within the state was only 7,240 MU and the import from other states was 10,200 MU. During 2009-10, Kerala had imported 58% of its electricity needs from other states. The situation would have only worsened during the last fiscal and there are already signs of financial distress due to the high cost of imported power. KSEB has been resorting to unscheduled power cuts during recent months for containing imports. An early and rich monsoon this year could possibly help to postpone an inevitable crisis by a couple of months or a year. Seventy percent of Kerala’s own generating capacity is hydro, which is mostly owned by KSEB. This extremely low-cost energy source is the backbone of KSEB’s finances and helps it to hold the price line of power in Kerala However, around twothirds of the hydroelectric potential of Kerala remains unutilized even today. Proposals for several hydroelectric projects put up by KSEB are denied permission by the Union Government. Despite Kerala High Court orders, the Central Ministry of Forests and Environment is blocking the Chalakudy project in the name of preserving the precious ecosystem of the Western Ghats. According to Mr Jairam Ramesh, Central Minister, environmentalists of Kerala are to be blamed. On the very same Western Ghats, Karnataka is presently building four hydro power stations with a total capacity of 2,014 MW— three 150-MW units and three 135-MW units in Nagjhari, ten 103.5-MW units in Sharavati Phase-B, two 50-MW units in Supa and two 12-MW units in Bhadra.

15 Silent Valley, Pooyankutty, Chalkudy etc are, in fact, smaller and far more economical than these Karnataka power plants, thanks to their closeness to population centres. All these indicate that either the KSEB management is inefficient in handling environmental issues, compared to their Kranataka counterparts, or the environmentalists of Kerala are taking undue advantage of their influence over the Centre, and their success in unceremoniously killing the Silent Valley project, which was not vetoed by the K G K Menon Commission, appointed by Indira Gandhi in the early 1980s. It is strange that environmentalists the world over are now supporting hydroelectric projects as an environment-friendly renewable energy source. The only objection that could hold a hydro project in the Western Ghats today is the biodiversity argument or the endangered species. M G K Menon had categorically stated that the objections raised on these counts were not at all sustainable. He had granted 25 years for finding fresh evidence in this

Amazon v Silent Valley In the late 1970s, KSEB had proposed the 120-MW Silent Valley Power Station on the Kunthipuzha, a tributary of the Bharathappuzha. The project did not materialize because of environmental disputes. The M G K Menon Commission that studied the issue could not find any scientific evidence against the dam. However, as a matter of abundant caution, Menon recommended postponing the project for 25 years for facilitating detailed biodiversity studies. However, no serious studies have been taken up so far. Around the same time, Brazil had started planning a power plant on the Xingu River, a tributary of the Amazon. After long years of debates, Brazil’s environmental agency cleared the project on June 2, 2011, just a few days ahead of the World Environment Day. The Amazon has no comparison with Silent Valley in size or complexity. However the agency report on this latest Amazon project, reproduced below, will be of interest to readers. Brazil approves world’s third largest hydro dam project BRASILIA, June 2 (NNNMERCOPRESS): Brazil’s environment agency has approved the construction of the Belo Monte hydroelectric dam, a controversial $17-billion project in the Amazon that has drawn criticism from native Indians and conservationists. The environment regulator, Ibama, issued licences to the consortium in charge of Belo Monte to build the massive dam on the Xingu River, a tributary to the Amazon, Government sources said. The Government has said the 11,200-megawatt project, due to start producing electricity in 2015, is crucial to provide power to Brazil’s fast-growing economy. It will be the world’s third biggest hydroelectric dam after China’s Three Gorges and Itaipu on the border of Brazil and Paraguay. In January, Ibama had issued a preliminary licence allowing the construction site to be set up. Since then the project has been halted and resumed several times due to court injunctions obtained by environmentalists and native Indians opposing the dam.

regard but nothing of that sort has been discovered so far despite the massive research budgets. Possibly that is why the Western Ghats of Karnataka are bubbling today with activities related to not only power projects but also mining projects. It is time that KSEB and those responsible for power development in Kerala had a fresh look at the environmental arguments that had killed Silent Valley some 30 years ago. Lessons from Karnataka indicate that new initiatives are possible with regard to our hitherto-unused hydroelectric potential, and the Kerala Government need to be persuaded to act in this direction. KERAL A POW ER SYST EM ST ATIST ICS 2 00 0 /20 10 So urce : Econ om ic R evie w o f State Pla nn ing Boa rd 31/03/2000

31/03/2010

% Increase

Installed capacity MW

2391

2746

Maximum system demand -MW

2177

2998

Generation -MU

7656

7240

-5

Import-MU

4275

10200

139

9813

13971

220 KV Line-CKM

1955

2701

110KV Lines-CKM

2911

3970

11KV Lines-CKM

28672

45541

180499

260670

179

330

Distribution transformers Nos

29638

52724

Distribution transformers-MVA

3864

6708

Villages electrified Nos

1384

0 62

Export-Mu Energy sales Losses as % of available f sales

LT Lines CKM EHT Substations -Nos

Consumers Lakh Nos

Connected load -MW

8150

15828

716390

1148220

Street lights Nos

Norte Energia, the consortium that won the auction to build and operate Belo Monte, is made up of state-run utility holding company Eletrobras, Brazil’s second-largest pension fund Petros and local construction companies.Originally conceived 30 years ago, progress on Belo Monte has been slowed over the years by protests, including an incident in 2009 in which Kayapo Indians armed with clubs and machetes attacked a state electricity official.Critics from singer Sting to Hollywood director James Cameron and environmental group Greenpeace have said the dam will damage the environment and harm thousands of people living in the region. The 6-km-long dam will displace 30,000 river dwellers, partially dry up a 100-km stretch of the Xingu River and flood large areas of forest and grass land. (Source: http://www.namnewsnetwork.org/v2/print-ad.php)

Renewable energy including mini-micro hydroelectric power, wind power etc was the pet alternative suggested by the environmentalist opponents of Silent Valley. Despite the massive efforts and patronage extended by the Kerala Government and agencies like ANERT, the share of Kerala in renewable energy was less than 0.2% as on March 31, 2010. KSEB had set up a diesel plant at Brahmapuram which is only sparingly used because of high fuel costs. The case with Reliance power plant at Pathalam is not different. Only NTPC Kayankulam which accounts for half the thermal capacity in Kerala has been contributing in any substantial measure to the state’s power pool. Possibly, with the commissioning of Petronet, the situation may change, but that is no reason to neglect the far more valuable underutilized hydro potential. In the absence of any worthwhile generation projects to be pursued, KSEB has been virtually directing its investible surpluses and plan funds on the expanding and strengthening of its transmissiondistribution network. The transmission-distribution network was developed in a big way to meet the PASSLINE

May 31 - June 30, 2011

increase in demand (38%), number of consumers (62%) and connected load (94%). Compared to this large increase in demand, installed generating capacity had increased only marginally (15%) and actual generation had marginally decreased (-5%) in 2009-10 compared to 1999-2000 (see chart on Kerala Power System Statistics). The steadily increasing demand was met entirely by massive imports, which have more than doubled during the ten-year period. There was a marginal reduction in T&D losses which, however, was far below the target set by the state regulatory commission. The massive investments on the T&D gear were made for improving the system efficiency as well as the quality and reliability of the supply. The fundamental objective of any power utility is to provide good-quality grid power with minimum or no interruptions at minimal cost to the customers. But this basic objective has not yet caught up with the organizational culture of KSEB, even today. Despite massive investments in T&D gear with IBRD and ADB loans, power interruptions are frequent even in Kochi and other cities. To page 25

ISSUES

The century-old land acquisition law in India, The Land Acquisition Act, 1894, is considered as an outdated piece of legislation. Many of the provisions By Bobby John Pulickaparambil

of the Act are considered as inadequate to cater to the requirements of present-day society.

Land acquisition

High time to change policy and law A

cquisition of private land for public purposes has been a subject of heated debate, political drama and legal battle in the last decade. The peril and pain of evictees who are forced to sever the bond with their land and the need for development have made many acquisitions burning issues. Land acquisition generally evokes criticism such as lack of â&#x20AC;&#x2DC;public purposeâ&#x20AC;&#x2122;, discrimination in the selection of land for acquisition, inadequacy of compensation etc. The centuryold land acquisition law in India, The Land Acquisition Act, 1894, is considered as an outdated piece of legislation. Many of the provisions of the Act are considered as inadequate to cater to the requirements of present-day society. Finally, the Government has acceded to the long-pending de-

mand for a new comprehensive land acquisition Act. It is expected that the new bill be introduced in the monsoon session of Parliament. Often land acquisition causes prolonged litigation up to the Supreme Court. A wide range of issues, from mala fide in notification for acquisition to inadequacy in compensation, are agitated vehemently before courts of law. The Supreme Court has time and again emphasized that the fixation of compensation under the Land Acquisition Act involves an element of rational guesswork. Interestingly, in a recent case, ie Nelson Fernandes v Special Land Acquisition Officer, the apex court held that the state must take into consideration the purpose of acquisition while fixing the quantum of compensation. FacPASSLINE

May 31 - June 30, 2011

tors like market value, location of the land, the loss of income suffered by the landowner and availability of basic amenities such as water and power supply should also be considered. This judgement will have great impact in future litigations in this regard, particularly with respect to the land acquired for developing special economic zones (SEZs). The legality and desirability of acquiring land in the guise of public purposes and transferring it to private entrepreneurs for setting up industrial units is a widely discussed topic and has led to serious allegations and agitations. In several cases vast acres of land beyond requirement have been acquired and subsequently sold at high prices. Rehabilitation of displaced families is another

According to the existing law, the preliminary notification is the first step for acquisition of land. The notification has to be published in the official gazette and also in two daily newspapers having circulation in the locality. Apart from that, the notification has to be affixed in conspicuous places of the locality. The purpose of this preliminary notification is to give an opportunity to the affected parties to file objections against the proposed acquisition. They are supposed to file their objections within 30 days from the date of the preliminary notification. Thereafter, the land acquisition authority will consider the objections. If the objections are found unsatisfactory a final declaration will be passed rejecting it within one year from the date of issue of the preliminary notification. It is also to be published as specified in law. Passing the award fixing compensation is the next step. After the passing of the award, the authority will take possession of the land. The affected persons who are not satisfied with the award can submit an application before the authority concerned requesting it to refer the matter to the competent civil court. The civil court shall decide the issue on the basis of available evidence. If the affected person is still unsatisfied, the matter can be carried to the High Court concerned in appeal and even to the Supreme Court. Further, the land owner is entitled to the additional compensation and interest. The new bill is expected to make a sea change in the existing law in land acquisition. Though it is in pre-legislative stages, indications available show the Governmentâ&#x20AC;&#x2122;s intention to have effective reforms in this area of law. Generally, there will be a huge difference in the price of land on the day of notification and on the day it is actually acquired. According to the present scheme of things, it will take years for actual acquisition. Now the proposal is to fix compensation for the price of land on the date of the final notification. Further, a high-level committee headed by the Chief Secretary should assess the requirement to ensure that only the essential extent of land is acquired. Another interesting suggestion is to return the land to the owner if the acquired land is not utilized within five years. Another suggestion is to spare fertile land and make sure that only barren land is acquired. Yet another attempt is to minimize the Governmentâ&#x20AC;&#x2122;s role in acquisition of land for starting private industries. It was

earlier suggested to acquire land in a 70:30 ratio, with a company wanting land for an industry buying 70% of the required land directly from farmers, and the state government concerned acquiring the remaining 30%. Now the thinking is to give discretion to the states concerned to determine the ratio at which private companies and the Government would acquire land and the compensation. Further there will be provisions for earmarking a portion of jobs created by the project to the displaced persons. Another interesting suggestion is to give landowners an attractive package of market value of land: 60% of the land value as bonus, annuity for 30 years and share in profit earned by the developer. It is widely expected that the new law will have provisions for better

WA N T E D

burning issue. Unlike in the past, it is not easy to relocate to another place, utilizing the compensation received for acquisition, considering the high price of residential plots. This is an area which requires the special attention of the lawmakers.

PASSLINE

Another interesting suggestion is to return the land to the owner if the acquired land is not utilized within five years. compensation, rehabilitation of displaced families and a speedy mechanism for settlement of disputes.

PASSLINE, Keralaâ&#x20AC;&#x2122;s only business magazine in English, with a 16-year track record, needs professionals for the following posts:

Reporters Assistant Advertisement Managers (Thiruvananthapuram, Kochi, Kozhikode)

Marketing Executives (all districts)

Keethara Publications Pvt Ltd 38/125 Ist Floor, Narakathara Road, Kochi-35. Ph: 0484 4027002 Email: passline.com@gmail.com; May 31 - June 30, 2011

mail@passlinebusinessmagazine.in

MEDICAL INSURANCE

One should take a medical insurance policy after serious By Shinin Sunny

homework to understand the medical risks of the family and after identifying the right product.

Choose the right health policies M

edical insurance, popularly known as mediclaim insurance or health insurance, is getting increasingly popular these days. Health risks and the cost of hospitalization increase day by day. Unforeseen health expenditure results in financial hardships to the family.

One should take a medical insurance policy after serious homework to understand the medical risks of the family and after identifying the right product. The following points will help one to guard against one’s medical risks in a foolproof manner. One should prepare a chart containing the family members’ name, age, preexisting diseases, congenital defects, present medical expenses and their frequency. If there is a mediclaim insurance scheme provided by the employer, note down the extent of cover and the people covered in it. It is very important to note down the exclusions in the policy provided by the employer. If the cover is an ESI scheme, one should opt for a mediclaim scheme for the dependent children at least three years before they attain the age of 21. It will also be good if a medicalim floater policy like the Universal Health Insurance Policy is taken for the whole family even if one is covered under the above-mentioned schemes. They are cheap and will help in situations where the employer’s insurance fails because of complications in using it. One is advised to have a private mediclaim policy from one’s middle age so as to be of help after retirement. When one PASSLINE

May 31 - June 30, 2011

gets older the chances of one running into health problems increase. Maybe, at the time of retirement or at an age when you desire to have an insurance cover, diseases may become a hindrance. Many feel that it is not possible to take mediclaim policies for elder members of the family. The fact is that it is possible but a bit complex. There are policies available for the aged. Deciding the extent of cover is a very important step in procuring a medical insurance policy. Plan so as to increase the cover year-on-year based on your financial capacity. This means that one should not go for a high sum assured in the initial years of the policy if the age of the m e m - bers and the medical history are not adverse. It is a common scene that people who do not incur claims tend to discontinue the policy. They forget the risk factors while marching forward. Mediclaims cover the medical expenses incurred while one is hospitalized for 24 hours or the expenses incurred during approved day care procedures (the ones which do not require hospitalization because of the advanced equipment and technologies used). Remember that there are sub-limits which restrict the claim amount due to the compartmenting of expenses based on its nature. (For example the room rent may be restricted to 1% of the sum insured, surgery expenses to 30%, specialist fee to 5% etc). The companies offer attractive premiums based on the complexity of the sub-limits which the buyer often ignores. Most buyers look only at the competitiveness of the premium and the sum insured. These points are mentioned along with the risk factors since they also form a risk if they are not chosen judiciously.

LIC’s ‘Jeevan Arogya’ health plan launched L

ife Insurance Corporation of India has launched ‘Jeevan Arogya’, a new non-linked health insurance plan, from June 1. According to LIC, besides offering comprehensive hospitalization benefits for the whole family of the principal insured, it also offers to cover the parents-in-law of the principal insured and spouse, minor children and parents. There is a provision for inducting additional members or removal of existing members in case of any change in family circumstances of the principal insured. “Jeevan Arogya’ is a ‘defined benefit policy’ meaning that benefits are fixed in terms of policy conditions and are payable irrespective of the actual amount spent on treatment. Moreover, the benefits are payable regardless of the life insured getting reimbursement under any other scheme from his/her employer or any other insurance company, on the basis of certified photocopies of the original bills. The minimum age at entry for principal insured is 18 years and the maximum age at entry 65 years for self and spouse while it is 75 years for

parents and parents-in-law. For children, the minimum age at entry is 91 days and the maximum 17 years. The plan provides for continuing health cover of major family members up to age 80 and for minor children up to age 25. It offers various benefits to cover the different hospitalization needs of the insured’s family.

Another unique feature of the plan is that it offers to cover all surgeries. Hospitalization in case of non-surgical treatment beyond 24 hours is covered under hospitalization cash benefit. If hospitalization is for seven days or more, payment is made for these 24 hours as well. The policy can be taken for an initial daily benefit of Rs 1,000, Rs 2,000, Rs 3,000 or Rs 4,000. The major surgical benefit will be 100 times the daily

benefit. The maximum lifetime benefit applicable to each insured is eight times the major surgical benefit sum assured. Day care procedure benefit will be five times the daily benefit. A maximum of three surgical procedures in a year are covered subject to lifetime benefit of 24-four surgical procedures in respect of each insured. The other surgical benefit in respect of each insured is two times the daily benefit per day for up to 360 days during the policy term. To provide for increase in cost of medical treatment, the benefits shall increase by 5% every year up to a maximum of 1.5 times the original benefit. If no claim is made under the policy for a period of three years, the benefits payable under the policy will be further enhanced by 5 % without any upper limit. The premium will depend on one’s age, gender and the health cover option one has chosen, whether one is principal insured or other insured, life and the mode of payment. The premiums can be paid regularly at yearly, half-yearly, quarterly or monthly (ECS mode only) intervals over the term of the policy.

analyse all the factors mentioned above. It is important to disclose the facts of the pre-existing diseases. If one misrepresents these facts it may result in the repudiation of the claim or even cancellation of the policy. One should ideally purchase a policy from the company which could give coverage as desired by you. Once it is through with the above-mentioned steps, fill the proposal form with accuracy. The policy documents should be checked thoroughly for mistakes.

The next area is the coverage you wish to use for critical illnesses. A critical illness can be chosen as an add-on cover to the mediclaim policy. You can also choose for daily cash benefit, weekly benefit and other add-on benefits based on your financial capacity. It is better to choose personal accident benefits as a stand-alone policy. This will help to manage the overall claim ratio and reduce the chance of loading. Mediclaim insurance policies are sold by almost all the general insurance companies and the three health insurance companies—Star Health and Allied Insurance Company, Appollo DKV and Max Bupa. As mentioned earlier, the policies offered by various companies differ in the constitution of sub-limits and other features. Some companies offer maternity cover after continuous renewal for two or three years which otherwise is available in group mediclaim policies. Whatis more, some offer outpatient benefits. The premium will be higher if more features are opted for. The services of the insurance companies are extended to the beneficiaries through intermediaries like development officers, agents and brokers. The service record of the company and the intermediary is a very important point to verify before purchasing a mediclaim policy. The continuity of the policy is what fetches you benefits at the time of risk. One should compare the policies of different insurers and

A third party administrator is an intermediary who is responsible for the settlement of claims. They analyse and keep records of the claims. You should keep the copies of all the policies you have continuously renewed and send them to the TPA along with the claim. This is essential to understand the relevance of exclusions applicable to you. By furnishing the details of previous policies the TPAs can settle claims faster. One should try to intimate the claim within 48 hours of hospitalization (TPAs should have provided you with the toll-free/phone numbers for intimation). It it is a planned hospitalization; there is an option to take prior approval from the TPA even before getting hospitalized. Similarly it is important to intimate them and get prior approvals before undergoing a daycare procedure. The TPAs issue an ID card which can give you the benefit of cashless hospitalization. While using that facility one should keep the following things ready: 1. Furnish the card at the insurance department of the networked hospital. 2. If the ID card does not contain a photograph, keep a valid photo identity proof ready. 3. Disclose all facts related to your ailment to the doctor and get the pre-authorization request form filled by her/him. (This step is very important. The TPA might issue an authorization based on the request form. They may not sanction the claim if there PASSLINE

May 31 - June 30, 2011

are differences in the discharge summary.) 4. Make sure that you give sanction to issue the IPD sheets to the TPA if requested by them. This will be required in case of complicated treatment procedures. 5. Do not try to use cashless treatment/reimbursement where an active line of treatment is not required. It is seen that many hospitals misuse the cashless facilities of the patients. The TPA might deny cashless facility if adequate data is not provided to them. This does not mean that you are not eligible for treatment or claim. You can submit the claim form to get the bills reimbursed. You should submit the claims within seven days of discharge from the hospital. Delay beyond 30 days may result in the rejection of claims. The recent guidelines of IRDA have asked the insurance companies to take stringent measures to ensure that the claims are paid within 30 days of submission. Very few know that they are eligible for compensation if a claim without a shortfall is delayed beyond 30 days. Disputes can be resolved by contacting the branch where the policy was issued. If the matter is not solved one should contact the grievance redressal department of the company concerned. If not resolved the matter can be taken up with the IRDA through its grievance cell.

BANKING & FINANCE

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According to available data, the four privatesector banks in the state—Federal Bank, South Indian Bank, Catholic Syrian Bank and Dhanlaxmi Bank— had noteworthy business in the last financial year, especially in the final quarter (Q4). And all these banks have targeted to increase business during the coming fiscal, which will be reflected in the next first quarter (Q1).

Kerala banks Passline News Service

hough the performance of the banking sector in the country during the previous year overall was not very impressive, what with the largest bank, state-owned State Bank of India, making a net loss, banks in Kerala had put up a good show. According to available data, the four private-sector banks in the state, all based in the Aluva-Thrissur belt, had noteworthy business in the last financial year, es-

pecially in the final quarter (Q4). And all these banks have targeted to increase business during the coming fiscal, which will be reflected in the next first quarter (Q1). A peep into last year’s Q4 results of these banks shows that Aluva-based Federal Bank had registered a net profit of Rs 171.72 crore (Rs 116.85 crore in the previous quarter). The net profit for 2010-11 amounted to Rs 587.08 crore, the highest in its history. Total income, total business and total deposits for the entire fiscal had also increased, besides income on interest. Advances went up. Average cost of deposit slumped in March 2011. There was increase in corporate loans and in SME loans. Retail loans reached Rs 9,436 crore. Loans to the priority sector accounted for 41.2% of the total loans. An amount of Rs 3,749 crore was disbursed to the farm sector. NPA recovery improved. Capital adequacy ratio

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May 31 - June 30, 2011

(BASEL II) was 16.79% as against the Reserve Bank norm of 9%. Income per share was also higher than that of last year. In the previous fiscal the bank started 71 new branches and 73 ATMs, taking their total number today to 743 and 804, respectively. In the current fiscal it is planning to start 200 new branches and ATMs in selected centres. South Indian Bank (SIB) made a net profit of Rs 293 crore for the year as against Rs 234 crore in the previous year. A higher dividend

has been recommended this year than in the previous year. Total business, deposits and advances went up. Total income was Rs 2,642.71 crore as against Rs 2,144.18 crore in the previous year. The capital adequacy ratio is healthy (under BASEL II). The bank plans to raise a capital of Rs 1,000 crore during the current fiscal. SIB has 641 branches as of today, having opened 61 new branches and 124 ATMs during the year. The total number of outlets has

21 Abraham Chacko new ED of Federal Bank

fare well

Mr Abraham Chacko is the new Executive Director of Federal Bank. He joins the bank after having worked with leading multinational banks in India and abroad across West Asia, Sri Lanka and South East Asia where he has gained significant experience in wholesale banking, transaction banking etc for over 30 years.

crossed 1,000. The branch network now covers 26 states including Fareast regions like Assam and Meghalaya giving it a pan-India profile. It plans to open 60 more branches during 2011-12. SIB’s Certificate of Deposits carries the highest rating of ‘PR1plus’ by CARE ratings. It was selected recently as the ‘best bank in the private sector’ in the Business World PriceWaterhouse Coopers survey and also by the Kerala State Forum of Bankers Club. The bank is planning to float an NBFC as a subsidiary company. It is also to commence bullion trading during the first quarter of the current fiscal.

A master’s in Business Management from XLRI, Mr Abraham Chacko established the foundations of his banking career through a 15-year stint with HSBC. During the mid-1980s he spearheaded the computerizing of HSBC operations at Kolkata and launched the first ATM in Eastern India. Moving on to ABN AMRO in Dubai, he rose to the rank of Deputy Country Manager overseeing wholesale banking, transaction banking and the financial institutions divisions, covering the UAE, Qatar and Oman. In 2000, he moved to Sri Lanka as Country Manager. In spite of the fragile political climate that pervaded the country, profits doubled in the 18 months that he headed the bank there. In his new role in Federal Bank, Mr Chacko is expected to establish a best-in-class wholesale banking franchise, with focus on corporate banking, treasury, mid-markets, SME and new streams of syndication, debt markets and other strategic opportunities.

Catholic Syrian Bank (CSB) registered impressive growth during 2010-11, its total business having crossed Rs 15,000 crore. The bank could effectively deploy its surplus funds, which were earlier parked in Government securities, which resulted in more than doubling the net interest income (NII). Net profit also registered growth. The bank’s net worth as on March 31, 2011 stood at Rs 470.14 crore, up from Rs 308.83 crore as on March 31, 2010. The CRAR also improved. Dhanlaxmi Bank announced a net profit of Rs 11.2 crore for the fourth quarter ended March 31, 2011, from Rs 5.6 crore for the cor-

CSB MD and CEO V P Easwardas, Chairman S Santhanakrishnan and Director T S Anantharaman on the occasion of announcing the fincial results.

responding period in the previous year. Strong growth in net interest income and overall growth in business led to improved margins and profitability, according to the bank. Total business grew for the quarter ended March 31, 2010. The bank’s loan book witnessed sharp growth largely because of a greater thrust to the retail segment and diversification across regions. Total advances and total deposits continued to rise during the quarter registering year-on-year growth. Mr Bipin Kabra, the bank’s Chief Financial Officer, says: “Our focused approach to improving productivity across all business verticals resulted in a significant increase in profits. It marks the beginning of a sustainable turnaround in our financial performance. With strong fundamentals and a robust business portfolio we are confident of delivering long-term growth for our customers and shareholders.” Total income and non-interest income rose as a result of the focused thrust to fee-based businesses. Net interest margin (NIM) improved for the quarter ended March 31, 2011, compared with the corresponding quarter of last year. The gross NPA ratio declined on March 31, 2011. NPAs worth Rs. 10.41 crore were recovered during the year.

Muthoot Fin posts 117% growth in net profit Muthoot Finance Ltd registered a growth rate of 117% in its net profit to Rs 494 crore for the financial year ended March 31, 2011 compared with Rs 227 crore in the previous financial year. Total income stood at Rs 2,316 crore (Rs 1,089 crore), growth of 112%. For the full financial year 2010-11, earning per share stood at Rs 15.78. Retail loan assets under management increased by 113% to Rs 15,868 crore. Profit before Tax (PBT) was at Rs 761 crore, up by 120%. Money transfer tie-up: Muthoot Finance can now offer Western Union Money Transfer facility throughout the country. With this, international money transfer consumers across India will now be able to receive their Western Union Money Transfer transactions from Muthoot Finance. The agreement to offer Western Union services was entered into between existing principal agent Paul Merchants Limited, subagent Muthoot Finance, and Western Union at a function held in Kochi. Muthoot Finance will start offering Western Union services from 2,800 locations linking them to Western Union’s network of more than 4,00,000 locations in over 200 countries and territories across the world.

The board also recommended a dividend of 5% for the year ended March 31, 2011 subject to Reserve Bank of India approval.

India continues to be the largest remittance receiving country in the world with an estimated $55 billion received during 2010. PASSLINE

May 31 - June 30, 2011

SME SECTOR

By G Rama Mohanan Nair

The Ministry of Finance is of the view that the $250-billion sector no longer needs incentives like the DEPB. It is planning to abolish the scheme from June 30, 2011, onwards. Exporters of the sector feel that this move will hit them hard in the context of their just recovering from the global slowdown. According to them, the Rs 8,000crore reported annual revenue loss of the Government on this account is too small an amount compared with the benefits exports bring to the country.

Popular DEPB scheme comes to an end; SME exporters panicky T

he Union Government is all set to withdraw the Duty Entitlement Pass Book (DEPB) scheme which has been in existence for the past 14 years. The Ministry of Finance thinks that the $250-billion sector no longer needs such incentives and is planning to abolish the scheme from June 30, 2011 onwards. Exporters of the sector feel that the move will hit them hard in the context of their just recovering from the global slowdown. According to them, the Rs 8,000-crore reported annual revenue loss of the Government on this account is too small an amount compared to the benefits exports bring to the country.

benefit to some other importers for a consideration. The duty drawback scheme is also similar to the DEPB scheme, which came into force according to the Customs and Central Excise Duty Drawback Rules 1971. An exporter would have paid customs duty on imported raw ma-

terials and/components and excise duty on items manufactured indigenously. Such duties will be refunded to the exporter on the export being completed. For claiming the drawback the exporter should file with the customs the triplicate copy of the shipping bill within 60 days of the shipment. On fortnightly basis the drawback to which the exporter is entitled will be credited to his account with his bank. According to a revised version of this scheme which came into force from 1976, in case of inordinate delay for any reason in getting the payback, the exporter can use an interest-free loan from his bank to tide over his financial difficulty.

Exporters get refund of duties on the import content of their export products under DEPB which is an export incentive scheme consisting of postexport and pre-export DEPBs. The pre-export DEPB scheme was abolished from April 1, 2000. Under the postexport DEPB, which is issued after exports, the exporter is given a duty entitlement passbook at a pre-determined credit on the FOB value. They can use this credit for payment of duties relating to future imports or even transfer the

Mr Sunil Mitra, the Revenue Secretary, said recently that the export sector in our country is healthy enough and needs no such incentives any more. The Government reimburses about Rs 80 billion a year on this account. There have been several attempts in the past to stop this scheme but because of the strong lobbying of this sector on all such occa-

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May 31 - June 30, 2011

23 sions, all such proposals had to be dropped. According to him, the export community already has the duty drawback scheme and hence too many such schemes are not needed.

puttupodi, appampodi, idiappam podi, roasted rava and roasted vermicelli, puttu, Kerala halwa, Kerala laddu, Kerala jilebi, palada, ada Prathaman, ulli theeyal, avial, kaalan, vattayappam, spices and curry delights, fresh and raw vegetables, stationery goods, beverages, confectionery products, dentistry products, guar gum, beef extract, yeast extract, pharmaceutical products, food products and pharmaceutical bulk drugs, desiccated coconut, spray-dried coconut, coconut milk powder,

The exporters feel that such an abrupt move to withdraw the scheme will seriously affect their profit margins because they have already done the costing of international contracts based on the existence of the DEPB scheme. This leaves no room for the exporters to negotiate with buyers for better costing. They feel a long-range strategy should be followed for such a move. A spokesperson for the exporters says that it should be continued at least until the Goods and Services Tax (GST) is introduced. They also feel that achievement of the export target of $500 billion by 2014 will be a Herculean task. Further, exports from the country have just started recovering from the setbacks of the global economic recession and with no DEPB scheme the sector can land up in a precarious position yet again. With the trauma of the recession on the one hand and the increase in interest rates from 7% to 10.5% on the other the exporters are definitely going to have a rough road to drive on. In the context of input cost rising and bank finance hard to come by, the Government should have supported the sector with more liberal sops. Instead, it is withdrawing already available incentives.

chitin and chitosan raw rice, boiled rice and basmati raw, potato wafers, potato chips, tapioca chips, Kerala mixture, Mumbai mixture and roasted channa, roasted peanut, seafood like yellow fin tuna loins, coir, umbrella, footwear, ladies bags and so on. The list is mindboggling. We have quite a lot of industries engaged in exports.

India’s exports amounting to $70 billion could be affected by withdrawal of the DEPB scheme.

Mr Sugato Sen, a senior director at the Society of the Indian Automobile Manufacturers

According to some neutralists, under the WTO guidelines except duty drawback all other schemes should have been abolished long ago. It is alleged that some corrupt traders in collusion with the DGFT officials boost the export value and get incentives in the form of a DEPB certificate which is freely usable by anyone. Before 2002, DEPB certificates were not online and the unscrupulous merchant exporters made a lot of money illegally and became millionaires.

(SIAM), told a private news agency recently, “This is going to hurt the auto industry tremendously’’.

Let us have a look at the list of products being exported by the SMEs

They expect that Commerce Minister Anand Sharma who is presently busy with the Indo-African Forum Summit, as soon as his return to India, will convince the Finance Minister to continue the scheme.

of Kerala: tea, coffee, cashew, spices, curry powder and rice powder, readyto-eat food products like parotta, chappathi, appam, palappam, unniappam, neyyappam, parippuvada, cake, chakka ada with leaf of edanna, samosa, vegetable cutlet, mango from mallussery, kappa, fish like local bral, wales etc, land mutton, pappada vada, kuzhalappam, achappam, fried items, masals dosa, uzhunnu vada, sukhiyan, coconut powder, food snacks, processed food snacks like banana chips, jackfruit chips, diabetic rusks, mixtures, murukku,

The Federation of Indian Export Organizations (FIEO) added, “Especially exporters of two-wheelers and small and medium commercial vehicles, which are exported in significant numbers, will be hard hit.” Industry stalwarts say that about 25% of

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May 31 - June 30, 2011

Mr N N Menon of Trade Track, Kochi, who has been a consultant on foreign trade for the past four decades, says the majority of industries in Kerala have opted for the DEPB scheme. Rates have been fixed for about 5,000odd products in each of the schemes. For our cashew, seafood and foodbased industries it is advantageous to go by the DEPB route. For example a seafood exporter gets 8% on the FOB value as payback according to the allindustry rate. If they go by the duty drawback scheme, he is eligible only for 1%. So unless and until a unification of benefits under both schemes is formulated, abolishing the DEPB scheme will seriously affect the profitability and competitiveness of the SMEs which have presently opted for that scheme. (The author is a former General Manager, Kerala SIDCO, and Chief Consultant, Industrial Consultancy Services, Kochi)

CAPITAL MARKET

24 The rise in price of fuel, increase in inflation and the interest rate increase by banks will drastically hit the share market prices of commodities and products. So the uncertainty in the stock market is likely to linger longer.

Uncertainty pervades stock markets Passline News Service

he stock market went downwards at the start of the month caused by factors such as spurting crude prices, high inflation and weak global cues. But this is not likely to rub off on its future prospects that continue to be robust in the long term. For market experts who track trends on charts to predict stock market prospects, a key technical indicator is signalling protracted gloom for Indian equities in the near future. On a micro-basis, it is a good idea to start looking at midcaps which have corrected 40%-50% and are not likely to face liquidity issues and have stable brands. As inflation comes down and rates start falling, midcaps will come back the hardest as they have corrected for over two years. While large caps could have some more downsides, midcaps selectively have started coming back. The main indices finished marginally higher after swinging both ways at the fag end of May. The Sensex ended 0.60% or 110.38 points higher and Nifty 0.74% up. The CNX Midcap Index was stronger with a gain of 1.49%. The market saw an intermediate uptrend in May end, with the Sensex getting past 18,450, Nifty past 5,525 and CNX Midcap past 7,925. The uptrend can now be said to have started from the Sensex’s May 25

bottom, when it bottomed out at 17,786. Stocks went into a decline shortly after the uptrend was confirmed, but the damage has so far not been heavy enough to threaten the uptrend. The Sensex would fall into an intermediate downtrend should it breach its May 25 low of 17,786, the equivalent for Nifty being 5,328 and the CNX Midcap 7,745, according to experts. Existing portfolios should be held on to as we are probably still in a relatively new bull market. Stocks which fell to their lowest in three months or more should be swapped for those which are at least 20% above their 2011 lows. Further investments can be made now, but stocks which fell to their lowest levels in 2011 should be avoided. Quite a few banks belong to that list. Global markets are in mixed intermediate downtrends. A few of the Asian markets besides ours are seeing an uptrend, while the downtrends in Europe and the US have been gathering some momentum. For investors and traders who track technical charts closely to back their trading decisions, India’s benchmark indices may be nearing the cusp of rapid, but brief, one-way moves, either way. Though a larger section of the market participants are betting on a decline from current levels, analysts will wait for the benchmark indices to break select levels to confirm a trend. PASSLINE

“Charts are still pointing to a weak market in the short-term, but if Nifty manages to reach 5,550 soon, there could be huge short-covering that may take the markets up in the short term”, says a technical expert. Even though the monsoon has arrived in time it is yet to be seen whether Kerala will receive enough rain. If the rain does not provide sufficient water for irrigation needs, it will affect the farm sector, the commodity market and the share market too.

increase by banks will drastically hit the share market prices of commodities and products. So the uncertainty in the stock market is likely to linger longer. And the state of the market will remain the same as mentioned earlier— downward trends at the start of the month caused by factors such as spurting crude prices, high inflation and weak global cues.

P U Jose passes away

Predictions about the share market are often compared with weather forecasts. It is the same about the rate of inflation and the prices of petroleum and oil. The Reserve Bank of India very frequently holds meetings to determine the rate of interest on deposits, repo rates and reverse repo rates to rein in inflation. After several meetings of the central bank the inflation rate does not reach a manageable level. The price rise of fuel, the rise in inflation and the interest rate

May 31 - June 30, 2011

Proprietor of JNB Marketing India(P) Ltd and Founderleader of Kerala Merchants Union P U Jose, 64, has reached heavenly abode. He was a well-known business man in Kochi for more than three decades. Mr Jose had been honoured by the State Government for his exceptional contributions to the field of tax law. He had won the national award for the best tax payer for five consecutive years from 1994 to 1999 and also bagged award for the same once from the State Government. He had also served as the President of Stationery and General Merchants Association, Founder- president of the Socio-economic Forum, Promoter of the Malayalam Communications Channel, President of the Kunnamkulam Charitable Trust, President of the Apex Council of Commerce and Trade and Chairman of the Joint Action Council of Industry and Trade Organizations. He leaves wife Baby Jose, children Nimmy, Mini and son-in-laws Deepak Paulose and Dr. Reju Joseph.

Planned and unplanned shutdowns regulatory commissions, as stipulated by the new Electricity Act, could hardly be expected to regulate and discipline power utilities in the prevailing socio-political environment in the country.

From page 15

Two or three interruptions a day are the rule for most LT consumers. Newspapers run a daily column for announcing local power shutdowns. These relate to planned shutdowns, and unplanned ones far exceed them in number. Voltage variations and high harmonics levels are a common experience with LT consumers. Voltage stabilizers, UPS units, inverters and stand-by DG sets have a big market and these gadgets add substantial costs to consumers. It appears that the massive T&D investments have failed to achieve their targets on all the three fronts: loss reduction, supply quality and supply reliability. HT and EHT consumers have argued that KSEB need to be penalized for this failure, for the failure has led to much larger energy imports and consequent additional costs of more than Rs 1,000 crore in 2009-10. The state regulatory commission has more or less accepted this ar-

Kerala has been postponing or even resisting the reconstitution of its SEB all these years despite the several ultimatums by the Union Government. The LDF Government had also refused to implement the recommendations of its own high-power committee to reconstitute the board with equal representation for users, employees and the Government through a state-level piece of legislation.

gument and has asked KSEB to bear a major part of these extra costs of imported energy and it is being disputed by KSEB. The commission has

also objected to the high incidence of wage costs and this has attracted the wrath of employees. These unseemly disputes have now led to the en-

PASSLINE

gagement of external consultants to recommend norms and regulations for containing such cost escalations. It is becoming more and more clear that

May 31 - June 30, 2011

NEWS

FACT reports Rs 41-crore loss K ochi-based Fertilizers and Chemicals Travancore (FACT) has posted a net loss of Rs 41.32 crore in the 2010-11 fiscal. The loss was mainly due to an additional provision of Rs 68 crore for enhanced gratuity limit and the Rs 17-crore loss made on sale of fertilizer bonds. If the loss on sale of bonds is reimbursed by the Government, additional compensation for increase in naphtha prices approved and subsidy on ammonium sulphate recognized, there will be substantial difference in the financial figures. The huge increase in cost of raw materials, coupled with low production levels due to shortage of phosphoric acid, affected the financial performance last year. The price of naphtha has been increasing and the additional compensation notified by the Fertilizer Department for use of naphtha was found inadequate as it was based on naphtha prices of October 2010. Since then naphtha prices have increased by Rs 13,260 per tonne as of March 31. This will have an additional impact of Rs 2,650 per tonne on Factamfos and Rs 2,600 per tonne on ammonium sulphate. Total sales turnover in 2010-11 was Rs 2,527 crore

as against Rs 2,150 crore in the previous year. Sale of caprolactam increased to 44,136 tonnes compared to 38,253 tonnes during 2009-10 and that of gypsum to an all-time high of 4.75 lakh tonnes. Total fertilizer production is 8.44 lakh tonnes as against 9.32 lakh tonnes in the previous year. Production of Factamfos, at 6,43,000 tonnes, could not come up to expectations because of shortage of raw materials, but that of ammonium sulphate was considered good at 200,000 tonnes. The Udyogmandal complex of the company has been adjudged the winner of the outstanding safety performance award in the category of large-size chemical industries by the National Safety Council (Kerala Chapter) and the petrochemical division has been adjudged third among large industries for the safety award instituted by the Directorate of Factories and Boilers, Kerala.

Sheela Thomas

Spices Board chief Rubber Board Chairperson Sheela Thomas has been given additional charge as Spices Board chief in place of incumbent Chairman V J Kurian.

The company has achieved a new record in the production and sale of bio-fertilizer with sales touching 74.89 tonnes during the year surpassing the previous best of 56.39 tonnes in the previous year.

Rousing response to GKSF sponsorship meet The

organizers of the ‘Grand Kerala Shopping Festival’ (GKSF), Kerala’s biggest shopping extravaganza, are all set for its Version-5. GKSF is going at full throttle with the experience it has gained from the previous years. The recent sponsorship meeting held in Thiruvananthapuram as a prelude to the GKSF fifth edition received wide response from the representatives of 48 reputed brands within Kerala and outside. Besides the existing sponsors, Air India, Emirates Travels, Ithihad, Britannia, Amul, Dabur, Whirlpool, Samsung, TVS Honda, Crompton Greaves, SBT, South Indian Bank, Syndicate Bank, Dhanlaxmi

Bank, Manappuram Finance, V-Guard, Finolex Cables and Prestige were represented at the sponsors’ meeting. As a novelty, there are offers from five film companies for becoming the official entertainment partner of the shopping festival. Shopping Festival General Convener T Balakrishnan presented the approach paper for the Version-5 at the sponsorship meeting. Dr Ratan Kelkar, GKSF Director, described the benefits gained by the sponsors and the experience offered by the shopping festival to the shopping community of Version-4.

Oberon Mall wins award Kochi’s Oberon Mall won the Most Admired Shopping Centre of the Year (Non-Metros—South) Award at the India Shopping Centre Forum 2011, organized by the Images Group in Mumbai recently.

‘12th Plan needs aggressive approach’ The country’s Twelfth Five-year Plan needs a more aggressive approach to Inclusive development, especially in the context of the current global crisis, though it has put forward a ’strategy triangle’ involving a role for the micro, small and medium enterprises (MSMEs), says ‘India MSME Report 2011’, brought out by the Kochi-based Institute of Small Enterprises and Development (ISED). The report, brought out at the Commonwealth-India Small Business Competitiveness Conference held in Bangalore recently, is the outcome of the Institute’s year-long research, overseen by an international advisory team. The report forms part of its larger programme, India MSME Communication (IMCP), and had the Commonwealth Secretariat and the Central Bank of India as its key partners. IMPC has been implemented with the active partnership of NABARD and several other leading financial institutions and promotional agencies, apart from the Union Ministry of MSME. The aim of the MSME Report is to put forward an independent and scholarly view of the state of MSME sector on a yearly basis, says an ISED press release. This year’s report puts forward several new ideas, such as entrepreneurship budgeting, eco system, financing models, responsible business and inclusive industrialization. PASSLINE

Lions Club International District 324 E4 awards for life-long achievements by top industrialists in different fields being presented by Justice Benjamin Koshy. Mr T A Varkey, Dr Jessy John, Dr Benoy Mathai, Mr C A Abraham Panjikaran and Mr Sivanandan are also seen.

Lions Club awards presented Lions

Club International District 324 E4 awards for life-long achievements by top industrialists in different fields were presented to the winners by Mr Justice Benjamin Koshy. See Blue Shipyard Limited Managing Director O C John, Dr K R Jayachandran, Dr Savitha Prabhakar, Rajeswari Group of Business Managing Director V S Ramakrishnan, Coastal Line Terminals and Logistics Managing Director Sebastian Kurisingal were the recipients. Dr Benoy Mathai, Lions District Governor, and Mr T A Varkey and Mr Sivanandan, Lions Vice-District Governors, spoke. Cochin Lions Club President Umanath Pai, Cochin Elite Lions Club President M M Augustine, Kochi West Lions Club President E K Muralidharan and Kochi Midtown Lions Club President Gireendrababu also attended the function. May 31 - June 30, 2011

FILM WORLD

Salim Kumar: The changing face of Mollywood Passline News Service

alim Kumar who won both the national and state awards for best actor has been in the Malayalam film industry for more than 15 years and has done roles ranging from those of a comedian to a hero. Considered to be one of the finest comedians in Mollywood, he shone as Tabala Bhaskaran in Gramophone, Amu Elayappa in Perumazhakkalam, Samuel in Achanurangatha Veedu, Srank in Mayavi, Manavalan in Pulival Kalyanam and Advocate Mukundan Unni in Meesamadhavan. Every once in a while, Salim Kumar surprises his audiences with memorable roles. He won the best actor awards for his performance as Abu in Adaminte Makan Abu, a film directed and produced by Salim Ahamed, which was also named the best feature film at both the national and state levels. The film chronicles the efforts of an elderly Muslim couple, enacted by Salim Kumar and Zarina Wahab, who wish to perform the Haj pilgrimage. Abu, the character Salim Kumar plays, is a vendor who roams the

streets of Malabar selling Unani medicines and ‘athar’ in order to make the money he needs to go for the pilgrimage. “Being mostly seen as a comedian, I approached the role of Abu very seriously with a lot of preparation. I even asked the director whether he wanted to cast me. His response was that he wanted to make a good film. I am rewarded and I thank God,” said the 42year-old actor, who has appeared in more than100 films so far, in a telephone interview.

mances will be honoured if they act with conviction.” Salim Kumar said awards won’t make a big difference in his choice of roles in the future. “I always accept a character purely on its merits,” he added. He has also been featured in the music album Coffee @MG Road, which has become quite a sensation. Starting his career as a mimic, Salim Kumar made his debut on the silver screen in a small comedy role in Ishtamanu Nooruvattam in 1996. He

“The film is an artistic attempt to project the essential goodness and nobility in humans beyond the barriers of religious divides. My character is that of a 75-year-old Muslim and has been presented in quite a different way. As an actor, I observe people all the time. This certainly helped me in making the role convincing,” he said. He hopes that the honour will help break his ‘comedian mould’. “It may also inspire other actors and give them confidence that their perfor-

PASSLINE

May 31 - June 30, 2011

was noticed for the role and there has been no looking back ever since. He became a much-soughtafter comedian. After establishing himself as an essential part of Malayalam comedy films, he earned the reputation of a character actor and then became a hero after his role in Lal Jose’s Achanurangatha Veedu. For his role as Samuel in the film he had won the second best actor award in 2005.

28 PASSLINE

May 31 - June 30, 2011

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

IAS achiever’s tips to aspirants for success

Hard work, determination A

bhiram G Sankar, the enterprising youth from Attingal, Thiruvananthapuram, who secured a civil service berth at the very first attempt (he had Geography and International Relations as optional subjects), has kindled new hopes in young aspirants in the state to fulfil their dream of achieving their goal. Ranked fourth in the exam, Abhiram, 23, son of Mr Girisankar R, Manager, Federal Bank, and Mrs Meena Sankar, a homemaker, has a younger brother, Akshay G Sankar, a BTech student. Abhiram who had his schooling at Sree Chithirathirunal Residential Central School and Arya Central School, both of Thiruvananthapuram, and took his BTech (Computer Science) from Thangal Kunju Musaliar College of Engineering, Kollam, attributes his distinction to hard work, grit and determination. In an email interview with PASSLINE, Abhiram, who has chosen the Indian Administrative Service (IAS), speaks of his dreams and plans and the preparation he made for the exam. Excerpts from the interview:

governance, health and nutrition, employment generation, literacy, poverty eradication and environmental protection. How do you view political interventions in various service sectors? Any interference, irrespective of its source, that is detrimental to public interest needs to be opposed. What is your opinion about development with special reference to the economy? Development should happen in such a way that its fruits are enjoyed by all. All sections of society, especially the poorest, must derive benefit from it. Development should not be at the cost of the poor or our environment.

Madam provided me with valuable guidance and notes. Interview: I prepared my biodata in depth for the interview. Name, place of birth, home state and district, hobbies, family, academic background, optional subjects etc were the various aspects I concentrated on, apart from regional, national and international issues. I was given interview training by the Kerala State Civil Services Academy in Thiruvananthapuram. I attended some mock interview sessions at the Kerala State Civil Service Academy, Shankar Academy (Chennai) and Naipunya Academy (Kochi).

As an IAS officer, what would you prefer to do for society?

What are the probAbhiram G Sankar lems in the country that Do you think that changes are need the most urgent attention to be needed in the pattern of exams or insolved? terviews? Poverty, illiteracy and corruption are Yes. Changes are needed in some three of the several issues that demand aspects of the exam, and the UPSC an urgent solution.

I think the most important thing would be to discharge all the duties entrusted to me faithfully, sincerely and efficiently with the larger interests of society in mind.

Why do candidates from highly literate and educated Kerala still lag behind, say, those from states like Bihar, considered ‘backward’ in literacy and education, in the civil service exams?

What do you think about the recent mode of development through PPP (public-private participation) especially in the wake of the big cry for it?

One of the reasons, I believe, is that awareness about the exam is lower in Kerala than in some North Indian states. But the trend is changing and more and more Keralites have been clearing the exams for the last few years, that too with good ranks.

The PPP mode is essential today as it is not possible for the Government to perform all tasks of development alone, especially in the case of very big projects. What will be the amicable solution to land acquisitions in Kerala against the backdrop of proposed development projects like the metro rail and statewide highway? An efficient and transparent land acquisition policy, along with timebound compensation for and rehabilitation of the people who give up their land, is needed. If you were in charge of a district what steps would you take to strengthen the relations between politicians and civil servants during confrontations between the two? I don’t believe ‘confrontations’ exist as such. But misunderstandings may occur in any job. This can be rectified through better communication between the politician and the civil servant. What are the areas which need special consideration in the country? It is not possible to identify any specific issue or issues as the top priority. But some of the areas deserving high priority, in my opinion, are good

(Union Public Service Commission) is already implementing a big change this year by substituting the optional paper in preliminary exam for a common aptitude paper (CSAT). But I don’t think there is a need for change in the personality test (interview). What is your advice to the civil service aspirants in the state? I can tell from my experience that success in the civil service exam is not related to marks scored in school or college exams. If one is determined and ready to do hard work, then one can surely succeed in this exam. Why did you choose IAS from other options in the civil service exam? It is my desire to do something concrete for the needy in society. Being an IAS officer gives a person an enormous opportunity to work in various fields and contribute to the overall betterment of human lives. Moreover, I am a nature lover and I believe that development and conservation of our environment should go together. The above factors persuaded me to select IAS as my career choice.

Tell us about your preparation for the exam. What things did you focus on more when you were approaching the exam? I passed out of college in June 2009. I completed reading almost 70%-75% of the syllabus of both optional subjects and the General Studies paper before joining the coaching course at Shankar IAS Academy (Chennai) in October 2009. Prelims: For current affairs, I prepared my own notes from The Hindu and followed the Civil Services Chronicle magazine. I revised the self-made notes once in a month. Regular tests conducted by Shankar Academy helped me a lot. NCERT books and standard texts were the other sources of information. Mains: For general studies and current affairs, I relied on The Hindu, Frontline, World Focus, Chronicle, Yojana, Kurukshetra and Civil Services Times. I read only select articles and took cutouts from The Hindu. Teachers in the academy helped me polish my answer writing skills. For geography, I mainly relied on Shankar Sir’s classes apart from textbooks. For political science, Balalatha

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