Showing posts with label iipm news. Show all posts
Showing posts with label iipm news. Show all posts

Saturday, October 13, 2012

Not ambidextrous enough?

To form a government that pleases one and all, Netanyahu must discard some of his rigid ideologies

A whiff of fresh air is being experienced in Israel, after days of painful hostilities in the Gaza strip earlier this year. But apparently, the powers that be in Israel and the rest of the world are not too happy about these winds of change.

After Israeli President Shimon Peres invited Benjamin Netanyahu, the leader of the Likud party, to form the cabinet, the latter would be wondering if he was indeed the 'fortunate one'. Although he has been chosen, Netanyahu has six weeks to form his coalition government. And he needs a broader coalition to win international legitimacy. “We are all conscious that a right-wing religious alliance will put Netanyahu under pressure from the western nations, and he knows it as well. It’s not at all surprising that he is for a broad coalition,” Shmuel Sandler, an expert on the Israeli political system at Bar-Ilan university, told B&E.

However, all Netanyahu’s efforts to convince Kadima party head Tzipi Livni and Labour leader Ehud Barak to join his coalition have failed. One of the key reasons is his staunch, headstrong approach on contentious issues, like he seems to be rejecting the two state solution to resolve the Israel-Palestine conflict, which was endorsed by the world, including Israel itself in 2002.


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
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Thursday, October 11, 2012

Heavy weight champ

Telang’s background in operations and his experience with the successful Commercial Vehicles business will be an asset

As Jack Welch once said, “If you pick the right people and give them the opportunity to spread their wings and put compensation as a carrier behind it you almost don’t have to manage them.” Ratan Tata has done exactly the same in Tata Motors, which is one of the key reasons why the company is the market leader in the Commercial Vehicles segment and more importantly, produces almost half of the Commercial Vehicles sold in the country. Well, P. M. Telang, Executive Director (Commercial Vehicles), Tata Motors would have a lot to do with that, for he is the man standing behind this success.

A Mechanical Engineer and an MBA from IIM-Ahemdabad, Telang has over three decades of experience in the automotive industry as he has been with Tata Motors since 1972. In his previous role as President (Light & Small Commercial Vehicles), Telang played a major role in ensuring a turnaround in the company through cost cutting and e-procurement. He is also serving as Senior VP (Operations), Pune currently. Overshadowing the success that the company achieved under Ravi Kant’s leadership will certainly not be a cake walk for anyone succeeding him. However, if we talk about the Commercial Vehicle segment of Tata Motors, Telang has been able to take its growth story forward very efficiently. And industry insiders believe that if Telang takes charge; it will surely set the stage for the next phase of growth for Tata Motors. And as auto expert Murad Ali Baig asserts, “The person taking charge of Tata Motors after Ravi Kant leaves should have an in-depth knowledge of the automotive industry apart from the basics of management and finance.”


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face

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Thursday, August 30, 2012

Are there more Satyams around?

Although extensive reforms have been set in motion by corporate watchdogs like Securities and Exchange Board of India, Company Law Board, et al, in the last few years, there remain significant lapses in its implementation and enforcement. by Manish K. Pandey

It was January 2009 when the Satyam fiasco revealed the dark underbelly of Indian capitalism. It not only questioned the integrity of promoters but also the levels of corporate governance in India. Though it was not for the first time that such a thing had happened (like Satyam, Sterlite too was alleged to adopt fraudulent practices to bag a tender floated by GAIL in 2008. Bearings, promoter of BFL, too, a few years back, was abstained from voting when its business was getting acquired by MphasiS. And how can we forget the Global Trust Bank!), Satyam scandal made sure that Indian policymakers sit up and rethink corporate governance norms prevailing in the country. But do they really have?

It has been over one and a half years and the country’s biggest corporate fiasco (the Rs.70 billion plus Satyam scandal) hasn’t even reached the trial stage. And this, when the main accused, B. Ramalinga Raju, the former chairman of Satyam, initiated it all with what he called “relieving the burden on his conscience”, or if we put it simply – a confession. In fact, if industry rumours are to be believed, the scandal is probably on its way to the burial ground. All the accused, except Raju, are already out on bail. Even Raju’s attorneys are now believed to be making way for his quick release. Buzz is high that he might also not stand to his initial statement made on January 7, 2009. So, does that mean Satyam fiasco has failed to wake up the corporate watchdogs? Do they need a bigger bang than Satyam? What’s more? The recent KPMG India Fraud Survey Report 2010 too reveals that there is a rise in the incidence of fraud in India Inc. with ineffective control systems and diminishing ethical values being the key contributors to this trend, particularly over the last two years (see charts).

No doubt, over the last decade, change has come to corporate India – from family-owned businesses that were involved in issues such as nepotism, mismanagement, lack of transparency, et al, to a scenario where companies are professionally managed – but the pace of it has been really slow. Even today still more than half of the companies on the benchmark indices Sensex and Nifty are family-controlled which hampers the evolution of corporate governance in India. “Indian corporate culture is still in a nascent stage as opposed to their US and European counterparts. Moreover, a deep integration with global environment has quickly come to them. But, Satyam fiasco made sure that corporate governance matures in India,” Naresh Gupta, MD, Adobe India tells B&E.

In fact, an assessment of India’s corporate governance reforms shows that although extensive reforms have been set in motion by corporate watchdogs like Securities and Exchange Board of India (SEBI), Company Law Board (CLB), et al, in the last few years, there remain significant lapses in its implementation and enforcement. Moreover, most of the reforms that have been adopted fail to address fundamental areas of concern such as the relationship between controlling and minority shareholders, the role of promoters, and issues with director independence (The Promise and Challenges of India’s Corporate Governance Reforms by Afra Afsharipour, Associate Professor of Law, University of California).

However, there are still many who believe that though the Satyam debacle raised some serious issues, the standard of corporate governance is still intact in India. “As far as corporate governance is concerned, we are still better off than the West. After Enron, US Securities and Exchange Commission (SEC) had put a lot of pressure on American companies. In spite of that subprime crisis happened. Compare that to India. We are still vibrant when worse could have happened,” B. Sai Chandravadhan, VP, Chess Management Services, a legal audit and compliance services consultancy, tells B&E.

But that does that not mean regulators, auditors or independent directors, shouldn’t be held responsible for any corporate mishap? No doubt in the case of Satyam and Sterlite they responded to what shareholders demanded, but what about smaller companies? Since 2006 more than 20 companies have been blacklisted by SEBI for violating corporate governance norms. Leave aside convictions, no one knows about the progress of these cases as of now. In fact, India has one of the poorest conviction rate when it comes to corporate frauds (just 5%). More than 50,000 cases related to corporate frauds are still pending in courts. In comparison, a corporate fraud task force set up in US in 2002 (post Enron fiasco), secured 1,236 convictions in the next five years. “US has strict regulations. If a company commits fraud it’s punished in no time. India too needs such stringent rules,” agrees Gupta of Adobe.


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Monday, August 13, 2012

DEFENCE TECHNOLOGY: VERSUS SOCIAL COST

Investments in defence at the cost of social good are unpardonable 

Even as recently as the last decade, when countries were ratifying the Chemical Weapons Convention, Albania, Libya, Russia, US and India have declared over 71,000 mt of chemical weapon stockpiles. The developing nations are no less in their over eager attempts to defend their borders. $32 billion is the 2010 investment for India in defence. Pakistan is $8 billion. China is $78 billion.

While it cannot be denied that a nation’s spending on defence technology is necessary due to various imperative and unavoidable reasons (mostly conflict with unreasonable neighbours), it is clear that if the same nation were to be equally committed towards eliminating poverty, the world could have surely been a better place. The funny part is, this is no Holmesian secret, and the nations involved know the discreet logic quite comprehensively. Then why don’t they simply eliminate poverty? Unpardonable...


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Friday, August 10, 2012

BHUPINDER SINGH HOODA, CM, HARYANA

“On the fast track of growth”

Haryana Chief Minister Bhupinder Singh Hooda shares his success story with Pramod Kumar

What has your government done for the availability of electricity to the rural masses as well for the general public?

Electricity is one of the core sectors for the state. As you know Haryana is the biggest grain contributor. To keep pace our priority is to ensure regular supply of electricity in rural areas so that the farmers should not get affected.

What has the Haryana government achieved in the area of constructing new roads and highways?

Road construction is one of our topmost priorities. We are working on a plan to connect every village. In fact, road connectivity is the backbone of the prosperity of the state which encourages tourism, and the movement of grains.

What is Haryana’s position in the matter of potable water?

In Haryana, almost all the 6,759 villages and 78 towns have got the facility of drinking water.

Are you satisfied with the law and order situation in your state?

There has been peace in Haryana. There have been no terrorist or extremist attacks in the state despite intelligence inputs to the contrary.


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Friday, August 03, 2012

“There isn’t a level playing field for SJVN.”

R. P. Singh, Chairman & Managing Director, SJVN Ltd.

SJVN Ltd. (formerly Satluj Jal Vidyut Nigam Limited) was incorporated on May 24, 1988 as a joint venture of the Government of India and the Government of Himachal Pradesh to plan, operate & maintain hydro-electric power projects. And since then, there has been no looking back for it. In fact, during the last two years SJVN has easily crossed the set targets which has resulted in incentive payment of Rs.2.16 billion from the government. In an exclusive conversation with Latika Sharma, R. P. Singh, CMD, SJVN, reveals the secret of company’s success and the way forward from here.

B&E: SJVN’s return on assets (ROA) increased from 12.30% in 2009 to 15.48% in 2010. How did you leverage resources to achieve the same?
R. P. Singh (RPS): SJVN’s return on assets increased from 12.30% in 2009 to 15.48% in 2010 due to decrease in net block of fixed assets, from Rs.73.19 billion in 2009 to Rs.69.34 billion in 2010 as there was charging of depreciation during the year. Further, decrease in interest and finance charges from Rs.3.05 billion in 2009 to Rs.1.50 billion in 2010 due to repayment of loan and better management of funds also helped us in achieving better return on assets.

B&E: It is mandatory for central public sector undertakings (CPSUs) like SJVN to undertake projects through Memorandum of Understanding (MoU) route only. Do you think this poses a significant setback when it comes to compete with private players in the same sector?
RPS: State governments are allotting the projects through bid proposals whereas CPSUs such as SJVN are under the obligation to execute the projects through MoU route only thereby leading to a non-level playing field. However, in this regard, certain policy initiatives are already being undertaken at the Government of India level.

B&E: What are the other challenges, in terms of policy and infrastructure, which create hindrance for hydro-electric project developers in India?
RPS: Environmental concerns, resettlement and rehabilitation issues, land acquisition problems, regulatory issues, long clearance and approval procedures, the dearth of good contractors, very remote and difficult mountainous areas, non-availability of facilities such as road network capable of handling the movement of heavy plant and machinery, shortage of availability of power equipments, the lack of indigenous manufacturing capacity are some of the the major challenges which create hindrance for hydro-electric projects developers in India

B&E: SJVN is also venturing into the wind energy field to promote and develop renewable resources of energy. How has been the progress so far?
RPS: SJVN is venturing into the Wind Energy field with an initial addition of 50MW of wind energy by the end of 2012 to promote and develop more renewable resource of energy. In pursuit of the above mission SJVN has already started surveying the various potential locations in India where the wind energy can be exploited economically. In fact, the consultant for this new venture (of setting up of the 50MW wind Power Project) has already submitted the feasibility report for establishing the project with advantages of various locations.


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Friday, July 27, 2012

Just Keep Those Costs Down

Rec has seen its Numbers Grow at a Steady clip in The Past Few Years, but will have to now Tackle Increased Competition

Being the nodal agency under the Government of India in charge of financing rural power projects in India, the challenge for Rural Electrification Corporation is always about managing the opportunity, rather than looking for it. Unsurprisingly, the company has been experiencing y-o-y growth of 15-20% on an average over the past decade.

For FY 2010-11, REC reported a growth in net profit by 28.4% to reach Rs.25.70 billion, which has catapulted it to rank 33 in the B&E Power 100 list from 38 last year. Revenue grew by 26.09% to reach Rs.81.09 billion. Strong return on equity with low cost of funding allowed REC to generate superior spreads, which is currently around 4.34% despite the zooming interest rates. REC was able to maintain this margin largely because of the fact that they had gone for international borrowing of $1.2 billion & also set domestic borrowings to the G-Sec benchmark. Cost of borrowing for last year on an incremental basis was around 7.25%; whereas overall cost of borrowing was around 7.62%. Furthermore, REC successfully brought NPAs down to 0.03% due to the escrow mechanism and managed margins of 4.3% despite high cost of funds. The major bad news this year was the resignation of CMD J. M. Phatak, who joined the company in June 2010. Phatak is accused of playing a role in the Adarsh society scam when he was Municipal Commissioner of Mumbai.

The role of REC comes only when all delays & clearances, particularly environmental clearances & securing of coal linkages issues are accounted for & finalized. Last year saw loan sanctions of Rs.664.21 billion (growth of 46.44% y-o-y) but disbursals were just Rs.245.19 billion, a growth of 16.03% y-o-y. REC is now focusing on creditworthy projects by turning their attention towards power generation projects rather than exclusively on the transmission & distribution sector When asked about the shift, H. D. Khunteta, CMD, REC told B&E, “It was a natural shift to all the parts of the power sector & the Ministry of Power has expanded the mandate for REC to include generation projects.” The power generation share in the outstanding loan book has almost doubled from 26% in 2007-08 to 48% in 2010-11 and the private sector is also playing a huge role.


Source : IIPM Editorial, 2012.

An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

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Management Guru Arindam Chaudhuri
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Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
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Friday, July 02, 2010

‘Hope floats’

Looks like the "Ms Congeniality" actress, Sandra Bullock has a proposal coming her way. Her ex-husband, Jesse James, has been spending time with his daughter, and is apparently using her to get Sandra back in his life. Meanwhile, the bombshell Michelle McGee, who poses nude regularly in tattoo magazines, had once said that Sandra should be grateful to her for revealing that Jesse was having an extramarital affair, has now been sending the actress apology letters for causing her pain. Well, the girls should probably join hands and together bring down the culprit of their lives!

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Tuesday, June 22, 2010

Poor sporting spirit!

Sporting events come heavily on the marginalised population

The upcoming FIFA World cup 2010 in South Africa is seen as a major breakthrough in sporting history. Not only because it’s after a long struggle that an African nation succeeded in grabbing the opportunity of hosting such a mega sporting event, but also as it is expected to refurbish South Africa’s economy. Amidst South Africa’s preparation to make this event a major success, the poorest citizens of the country are being largely neglected. In order to bring up world standard stadiums, the government has ordered massive eviction. In simple words, to make space for stadium and games infrastructure, the South African government has evicted low income housing areas and informal traders. More than 70,000 workers employed on World Cup projects have raised their voices for better wages and conditions. In contrast to 500,000 jobs promises, only 22,000 jobs have been created with occupational health and safety survey giving negative rating to 52 per cent of World Cup construction sites.

The construction of N2 Gateway housing project (construction of rental housing for the 2010 World Cup) led to the removal of over 20,000 residents from the Joe Slovo settlement. The government has also came up with the Elimination & Prevention of Re-Emergence of Slums Act to eliminate slums and put homeless shack dwellers in transit camps during the games. Without any apprehension, this mega sporting event would not only will help the country to upgrade their infrastructure but would also help them tap economic gains. But then, the major pie of the profit will eventually go to big business houses and to FIFA.

This is not for the first time that a mega sporting event would create major hurdles for the underprivileged population of the nation. During 1988 Olympic Games, more than 15 per cent of the population of Seoul, Republic of Korea, was evicted and 48,000 buildings were reduced to ruins to accommodate game’s infrastructure. Similarly in 1996 Olympic, around 1,500 social housing units for the poor were destroyed in Atlanta, in 1992 in Barcelona, 200 families were evicted, in Beijing mass evictions were executed, 6000 were made homeless in Sydney in the run-up to the Olympics and similar eviction is predicted to happen in Rio de Janeiro for the 2016 Olympic Games.

Besides direct impact such as mass eviction and trade bans, indirect displacement due to gentrification and escalating housing costs can also be led to social crisis. After Olympics, prices of houses rose by 28 per cent in Seoul, by 131 per cent in Barcelona, by 500 per cent in Sydney — to name a few incidents. Many governments went to an extent of criminalising the homeless and marginalised pockets of populations. In Seoul, local authorities created a list of places where homeless people were banned and in Atlanta, homelessness was made illegal. Recently, to address such inhuman issue and rush to the rescue of marganised people, the UN has asked the games organiser to properly scrutinise the host cities and introduce housing provisions in hosting agreements. These nations and host countries should learn from their counterparts like Los Angeles, who uplifted the local economy and permanent housing and an Olympic village.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Wednesday, June 16, 2010

Has consumerism overtaken creativity in new-age Kolkata?!

A special report from Monojit Lahiri in Kolkata

Once upon a time – maybe up till the end seventies, even early eighties – Kolkata and creativity were the made-for-each-other blend! More than any other city, it loved, admired, respected, revered, fostered, nurtured, protected and celebrated its creative community as no other. This was an accepted and acknowledged fact. Kolkata may not have had Delhi’s power or Mumbai’s glamour but the magic and mystique, clout and charisma of its creative quotient invariably worked as a magnet to anyone, anywhere, blessed by the spirit of creativity. In Kolkata 2010, does the creative person still enjoy the same kind of recognition and respect?

Kunal Basu is first off the block. The Oxford-based academician (who leads an exciting double life by teaching management while continuing to pursue writing as a calling and presently winning kudos for his short story, "The Japanese Wife," made into an awesome film by Aparna Sen), says that for a long time he proudly boasted to his friends in the West that Kolkata was one city that still had her heart in the right place. He elaborates, “During an adda with pals, if a millionaire friend or a Fortune 500 CEO buddy dropped in, he would be greeted with nothing more than a casual 'Hi'. However, if it was a poet, painter or musician, there would be general and genuine excitement. It’s simple. There was a huge premium to be in the arts! That has mostly disappeared. The city’s vibrant, exciting, intellectual spirit of enquiry is under siege. However, Basu confesses all is not lost. “My personal book-reading experience in Burdwan, for example, was a startling and heartwarming eye-opener!”

Distinguished and respected social scientist and commentator Ashish Nandy refuses to believe that Kolkata has either abdicated or disowned its umbilical connect with creativity. “The Kolkata Book Fair is the best proof. Until two years ago – when it played in the maidan – it attracted an audience (over three lakhs everyday) that was a hundred times more than the ones at either Frankfurt or Paris! It was difficult to enter some of the stalls! I have seen over a hundred fans follow Tasleema Nasreen because she was perceived as a literary star. Would that happen in Delhi or Mumbai?”

Up next is Bengal’s iconic film maker Aparna Sen. “Let’s face it. We live in a totally media-driven era. Having worked closely with both, a publication house and a TV channel, I can tell you that media is in constant need of fodder to survive and therefore does something which would have been considered both shocking and vulgar in an earlier era … manufacture its own band of celebrities!

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Tuesday, June 15, 2010

Nepal Conundrum

The Maoists are mounting pressure on the PM to resign

The red colour draped around the bodies of 1.25 lakh men and women on the streets of Kathmandu is nothing new. The Maoists, under the leadership of Prachanda, have begun their indefinite strike but this time it is not going to be a simple event as stakes are high for both, the Maoists and the ruling parties.

Since 1996, activities initiated by Maoists, including strike and complete closure have regularly added to the woes of this beleaguered nation where the per annum income is not more than $400. But then, this bandh is at a juncture where politics in Nepal has turned a full circle. What began with the ceasefire of 2006 and the consequent government under the leadership of Prachanda shifted into the hands of Madhav Nepal. Maoists are yet again determined for a change and are demanding for the resignation of Prime Minister Madhav Nepal has been put forth.

Nepal has a support of 22 parties out of 25 which in effect has 350 Members of Parliament with them in the House of 601. But the truth is that even today the government remains limited to the towns and zonal centres. This also means that development is just a word which might sound alien to more than half the population that has been ravaged with blood and gory murders. The poor common man is finding himself at the crossroads.

With the ceasefire, the cadre of Maoists were sent into barracks at seven division headquaters and the reign of the government was handed over to Prachanda. But then, nothing was done on the part of returning the property which was captured by the Maoists and they did not finalise the rehabilitation of the Maoists cadre into various security, paramilitary and police forces. People are scared that they may get embroiled into violence yet again which had claimed about 13000 lives and a displacement of around 1.5 lakh. What about the constitution which was supposed to be completed by May 28, 2010 ? Here lies the faultline.

This entire scene is the result of primarily two issues. It all started as both sides took strong position on the demand for rehabilitation of Maoists cadre in army and the drafting of the constitution. “The differences cropped up when Maoists demanded for the completion of the drafting of constitution and then rehabilitate its cadre whereas the other parties wanted to finish the rehabilitation of Maoists into the security forces and then complete the drafting of constitution,” says Nihar Nayak, Associate Fellow, Institute for Defence Studies and Analyses. Here, the important thing to note is that if the exercise of drafting constitution is not completed by May 28, 2010, then the Assembly may get dissolved and the Maoists will lose thair majority status in case Madhav Kumar Nepal resigns or steps down as Prime Minister in between. "Thus, the entire exercise to adopt pressure tactics is to somehow get some decision in favour (of Maoists) and get to rule the government”, adds Nihar Nayak. The Maoists had claimed to gather about 400,000 cadres in Kathmandu but the reports clearly states the number not more than 130,000. Now, once they have congregated such a huge number they should have prepared for logistics of the cadres which the sources say has not been done and this is causing a lot of trouble for the cadre. The National Congress has also made it clear that the solution could be reached with dialogue instead of using bandh and pressure as tactics. With 22 parties making it clear that they are with Madhav Nepal's government, it is going to be a long drawn tug of war. The Maoists know that if they will not be able to get a decision in their favour, then they may face disenchantment amongst the cadre. The ruling parties are of the view that they will not let Maoists succeed in their tactics, as this will only lead to a situation where Maoists will get everything done for their benefits.

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Source : IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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