Thursday, June 06, 2013

The Curious Case of Imran Khan

Years ago when Imran Khan decided to join the political fray in Pakistan, he acted and sounded like a novice. More like a starry eyed teenager eager to please everyone than a seasoned cynical politico who knows the nuances of the game. Almost two decades later now, he has barely changed. But the political contours of Pakistan have. And that is why, just days before the historic general elections in Pakistan, Imran Khan has turned relevant, and uncomfortably so.

While the jury is still out whether Imran Khan and his PTI will manage to win the election or at least do well, what is certain that he will not remain at the sidelines as he was in the previous polls. In a nation where frenzies are whipped as easily as it can be, Imran Khan indeed expanded his base after years of dedication. The so called Imran Khan Tsunami that people are talking these days started with barely registered ripples in Pakistan’s otherwise volatile political water.

So, what has made Imran Khan so relevant? The answer is, changing times and demography. Asif Ali Zardari’s PPP indeed became part of the history by becoming the only elected government in Pakistan to complete its term. However, apart from that, it has pretty little to show or talk about. Its five years tenure has been marred by an economic freefall, spate of bombings and suicide attacks, energy crisis and more. Meanwhile, a whole new lot of youngsters have blotted the electoral rolls. This new, urbane and upwardly mobile, group has decidedly different aspiration from its preceding generations. But like most of the other places in the world, this generation is also dangerously apolitical, and proud about it. For such a generation, Imran Khan came as an obvious choice.

A man with the supposed magic-wand. A man who dwells on the surface of a problem and refuse to probe deeper. A man who gives simple (or rather simpleton) solutions to complex problems. In short, suitably suited for this generation.

For example, while he is a vociferous opponent of Drone attacks in Pakistan, he is clueless about what alternative options can Pakistan choose to replace this. Or, while he is a great advocate of dialogue with Taliban, he fails to mention how previous attempts to engage them in dialogue have only given them time to regroup and strengthen their position. Every uneasy answer is buried. No surprise that he caught the fancy of this generation.

But that is not to say that Imran Khan is merely a construct of circumstances. To insinuate that would be callous. If Imran Khan has made himself relevant in the ethnicity ridden South Asian politics, it says a lot about the man’s character.

“As such, Khan is a departure from leaders who hail from political dynasties, such as the Bhuttos or the Sharifs, and boast immense rural landholdings. Since the PTI boycotted the 2008 general elections and has no representation in parliament, the party's record is also clean. Khan is thus better positioned than the PML-N to denounce the corrupt practices of "Mr. Ten Percent," as Pakistan's President and co-chairman of the ruling Pakistan People’s Party (PPP) Asif Ali Zardari is widely known,” says noted Pakistani political commentator, Huma Yusuf.

Your correspondent had a chance to see his impact in Karachi, a city that epitomises ethnic fissures in Pakistan. In a city where voters have traditionally voted either for MQM, ANP or PPP depending on whether they are ethnic Urdu speakers, Pashtuns or Sindhi, and where voting away from the ethnic line is considered even worse than betrayal, Imran Khan has attracted votes across ethnicity. Although he is still expected to bag more of Pashtun votes than those of Mohajirs, it is no surprise that he has made a mentionable dent in both ANP as well as MQM’s vote.

It is because the issues he raises are of national and international importance and affect average Pakistanis in more ways than one. Take for example his opposition to America’s involvement in Pakistan in particular and the region in general.

“Anti-American rhetoric is common among Islamist hard-liners and religious party leaders, but Khan’s urbane appeal as a former cricketer who won international acclaim means he can reach a wider, less religious audience and position himself as the acceptable face of anti-Americanism,” says Badar Alam, editor of Pakistan’s Herald Magazine. “When mullahs talk, people don't stop to listen. "But when a Western educated clean-shaven man does the same, it does suit them.”

Also, compared to both Zardari and Nawaz Sharif, Imran Khan can actually brag his selflessness. For example when Parvez Musharraf asked him to become the Prime Minister of Pakistan, he promptly refused. It was a rare gesture in a region where seasoned statesmen have been known to become Prime Minister for as less as 13 days even when it was clear to them that they will not be able to gather the requisite numbers to survive.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Tuesday, June 04, 2013

The unputdownable!

Subrata Roy Sahara should come out winning on all fronts in the current face-off with SEBI! And why the erroneous Supreme Court judgment against Sahara goes beyond Parliamentary Acts and is being misused by SEBI to its own benefit! BY Arindam Chaudhuri

There are a few things about Subrata Roy Sahara that even his harshest critics accept. That the man is a visionary – his mammoth investments in media, housing, hotel, sports and other industries being compelling evidence. That his open assertions of being a patriot have their weight in the various behemoth social initiatives undertaken by his group – with no apologies to the slanted English media in India which, I feel, hypocritically slanders anyone who represents the ‘other’ India (lest you should forget, it was this very media that shamelessly reported gossip a few years ago about him being ‘critically ill’ and on his deathbed; no surprises then that the same English media chose to ignore reporting how sprightly he was while meeting UK Prime Minister David Cameron a few weeks back in a closed door meeting discussing educational and research initiatives). And yes, that the man religiously knows his numbers and has a financial acumen that is better than the combined intellect of all Indian regulators in the industries where he operates.

There are a few things about India that even its damnedest supporters don’t deny. That the License Raj era spewed out a few handfuls of family businesses that shamelessly chewed away the very idea of India, criminally sucking it hollow by monopolising industries, encouraged by corruption soaked politicians – and encouraging them in return. That this venomous combination over the decades led to a jaundiced India that today has hundreds of millions of illiterate people below the poverty line; that has no global brands to speak of, but many billionaires borne out of the excesses of the License Raj era (I call most of them ‘blood billionaires’, given that they’ve made the money on the blood of Indians). That the same group of blood billionaires, in cahoots with a similar group of corrupt bureaucrats (regulators included) and politicians, have fought and will fight tooth and nail, criminally and illegally, to ensure that there is no new honest and ethical claimant to their industry space, especially if such an entrepreneur were from the proletariat.

That Subrata Roy Sahara titles himself as the Managing Worker of his group only adds to the ire of India’s caustic bourgeoisie, which, hand in hand with the English media, would be loath to have such an unabashed community representative of workers amongst their well ‘oiled’ and ‘greased’ group. So every time Subrata Roy Sahara and his likes attempt to tread the path of diligent and astute effort – assuming the same equated to returns – they’re pulled down acerbically and vindictively by the group representing the old, feudal India. You see, this group believes that only they know how India should be run and by whom. Look around and you’ll see many examples strewn across India of how honest upstarts have been trampled upon by the powers that be before they could gain ground – wherever there has been anyone attempting to improve the condition of India, they’ve had a horde of regulatory, tax, police and judicial bodies running up their door to initiate the so-called enquiries and ‘search’.

The current face-off that Subrata Roy Sahara has with SEBI actually exemplifies all this too well. A group that has issued OFCDs (Optionally Fully Convertible Debentures) since the year 2001 with all relevant government permissions, and which has regularly submitted all details as required by the concerned government authorities, suddenly gets a prohibitory order from SEBI in November 2010 against the OFCDs issued by two unlisted group companies (Sahara Housing Investment Corporation Ltd. and Sahara India Real Estate Corporation Ltd.) – and this despite the fact that just seven months before that, SEBI had, through its own communication to Ministry of Corporate Affairs, commented that as these were unlisted companies and had not filed a draft red herring prospectus with SEBI, any complaint with respect to these two companies should be handled by the Ministry of Corporate Affairs. What changed between April and November 2010 that led SEBI to issue such expansive orders without appropriate investigation? Especially when, as per SEBI’s own rules, they had and have no role to play in the case of unlisted companies that have no intention to list in the future. Was it that the Commonwealth Games scam and the telecom scam (both of which reached their zenith in mid-to-late-2010), was getting too hot to handle for the parties in power and they needed diversionary tactics?

SEBI was undone by some scrupulous individuals within the system itself. In December 2010, the Department of Legal Affairs, Government of India, noted in its official report (FTS No.4140/LS/2010), “The company in the given case being [an] unlisted company and not intending to get its securities listed...cannot be said to have gone in the fold of SEBI by merely becoming a group company of an unrelated separate company which has no intention to get its shares listed...” Ministry of Corporate Affairs, in its written submission to the Allahabad High Court in 2010, mentioned, “The issuance of OFCD [by] the petitioner company after the registration with the Registrar of Companies has been permissible under law. The Central Government remains the regulating authority for the company.” The Additional Solicitor General of India, Mohan Parasaran, in his official opinion note dated February 8, 2011, confirmed with extreme clarity after documenting multiple pages of logic, “For the reasons mentioned above and in my considered view, SEBI has no jurisdiction over unlisted companies like the Sahara Group of Companies, which are not intending to get themselves listed.” Two days later, in an official noting, the Minister of Corporate Affairs, Veerappa Moily, noted, “I agree with [the] Additional Solicitor General Mohan Parasaran.” It should be noted that Parasaran is now the Solicitor General of India.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Monday, June 03, 2013

Bogged down by capacity constraints

Given the growth in cargo traffic and maritime trade, ports in India are in urgent need of capacity augmentation in order to meet the country’s growing economic needs and also to grow its share of international trade.

India, which has a long and meandering coastline stretching 7,500 kms, expects its ports – 13 major ports and around 200 non-major ones spread across the nine maritime states that dot its western and eastern corridors – to demonstrate efficiencies to sustain the demands of its growing international trade. About 95% by volume and 70% by value of the country’s international trade is carried on through maritime transport. Over the past decade, Indian ports have seen a sharp surge in traffic, which grew four-fold to 9.7 million TEU (One TEU represents the cargo capacity of a standard intermodal container, 20 feet long and 8 feet wide or 6.1 m long and 2.44 m wide) in 2011, from 2.4 million TEU in 2001 – a staggering growth of 395%.

Unfortunately, India’s ports are ill-equipped to meet this surge in traffic demand as they have not been able to significantly ramp up their capacity and efficiency. Several port projects in the PPP as well as private mode are facing delays on account of regulatory approvals. Take, for instance, projects such the mega container terminal of Chennai, 4th container terminal of JNPT, Vizhinjam port project of Kerala, Rewas port of Maharashtra and the offshore container terminal of Mumbai port, all of which have been delayed. Delays in getting the security clearance, complicated bidding process, poor response of developers and legal issues are the major factors holding up these projects.

Among the PPP port projects that have been hit worst by delays include the construction of six riverine jetties at Kolkata port with 4.5 million tonnes capacity worth Rs.3 billion. Besides, at the Paradip port Trust, construction of the new coal terminal is still in limbo due to want of certain clearances. Some of the other projects awaiting security clearance include conversion of berth No. 8 as Container Terminal at V. O. Chidambaranar (Tuticorin) port. Private players in infrastructure like the Adanis and Punj Lloyd have been denied security clearance for the coal import terminal at the government-controlled Mormugao port in Goa. Similarly, Lanco Infratech has been denied permission for developing a container terminal project for cargo berth facility at Tuticorin port.

As a result of these project delays and unwillingness on the part of the government to award private players port development projects, India has not been able to achieve the target of its capacity expansion. According to the Planning Commission, the capacity of Indian ports will have to nearly double to 2,302 million tonnes (MT) over the next four years to be able to handle the fast growing cargo traffic. The total capacity of the port sector is envisaged to be 2,301.63 MT, to meet the overall projected traffic of 1,758.26 MT by 2016-17, as per the 12th Five Year Plan (2012-17) document. The Planning Commission estimates that cargo traffic by the end of the 12th Plan would be 943.06 MT and 815.20 MT for the major and non-major ports respectively, with corresponding port capacities of 1,241.83 MT and 1,059.80 MT respectively. In light of the fact that our port-handling capacity is way short when compared to the throughput of major ports globally, the Planning Commission has set a target of expanding the annual capacity of major ports to 1229.24 MT by the end of March 2017.

However, till date, no Indian port is capable of handling large container vessels. Most international cargoes are off-loaded at Colombo or nearby ports and then transported to India in bits and pieces. This incapability robs Rs.10 billion from traders. Worse, the turnaround time for ships entering our ports is inordinately high, aggregating 4.67 days and leading to high levels of congestion. The high turnaround time at our ports also leads to pre-berthing delays for ships, which can vary from 2 hours to 40 hours, depending on the port and cargo with the overall average for FY12 being 11 hours.

Addressing concerns related to turnaround and pre-berthing time calls for urgently ramping up our port infrastructure. Already, the dilatoriness in resolving such issues is beginning to impact our cargo trade adversely. Traffic at Indian ports grew by just 2% in 2011-12 (a sharp contrast from 9.2% CAGR recorded during 2005-06 to 2010-11), points out Prof. Sham Choughule, Visiting Faculty, Mumbai University and Member, Port and Logistics Committee of Maharashtra Chambers of Commerce & Industry. Clearly, innovative solutions are needed to stem the tide of declining port traffic. L. Radhakrishnan, Chairman, Jawaharlal Nehru Port Trust, suggest that alternative means of transport such as coastal shipping and inland water transportation should be promoted inviting PPP along with larger viability gap funding by the Government. He also warns about how the tariff guidelines of TAMP (Tariff Authority for Major Ports) are harming private initiative. “The tariff cuts enforced on private terminal operators by TAMP are not benefitting exporters/ importers but are actually getting passed on to international shipping lines.” He suggests that this anomaly needs to be corrected since no authority similar to TAMP exists anywhere else in the world.

To boost capacity augmentation of our existing ports and develop newer ones to meet the demands of growing trade, the Indian government has come out with an action plan spanning ten years. The Maritime Agenda 2010-2020 envisages an investment of Rs.1,650 billion in the port and shipping sector by 2020, of which the majority will be from private investors. The Ministry of Shipping also proposes to build an overall port capacity of 3200 MT by 2020 to cater to the projected traffic demand. This near tripling of capacity in less than a decade’s time is proposed to be achieved by undertaking upgradation of existing ports and development of new major ports.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Saturday, June 01, 2013

Beyond Matryoshkas & Marshrutkas

With its fabulous museums, rich cultural life, breathtaking architecture and history in every nook and corner, Moscow, beyond doubt, will remain forever etched in your heart. By Saurabh Kumar Shahi

Sheer mention of the word Moscow evokes myriad of imagery among the Indians of all age group. For the people in their mid-50s and beyond, Moscow evokes the best of Soviet Union days. A mishmash of culture, literature, politics—both cladestine and otherwise—heritage and much more. For children, Matryoshka Dolls and Nikulin Circus evokes pleasant memories. But then, there is a sudden blackout. As USSR disintegrated in the early 90s and India started looking for greener pastures, the affect was seen widely. The flights between Indian cities and Moscow dwindled as their national carrier, Aeroflot, started making news for the wrong reasons. Lured by the post-Cold war Europe and further West, tourists started looking for more options. Amidst all these, Moscow started slipping from the radar. A decade or so later, it remained a shadow of its former self.

However, as it is said that one bounces back after hitting the rock bottom; the same stood true for Moscow as well. The over exposure of Western cities, the desire to explore what is near and the plain nostalgia has put Moscow back on the travel map. Meanwhile the city has added so much to its profile that a fresh look has become necessary.   

Basics first. If there is one carrier that has completely reinvented itself in the last few years, it is Aeroflot. Gone are the days of rickety planes, soggy food and torn carpets. Aeroflot now boasts of one of the youngest fleets of aircrafts in the world served by Boeing, Airbus and indigenous Antanov and Ilyushin. It has direct connections to almost all the big metropolises in India and has a sector leading luggage allowance.

Moscow, because of its sheer size and importance, is served by as many as four international airports. However, without exception, if you are not planning to take your private jet or sneak inside a commercial jet, you are most likely to use either Sheremetyevo or Domodedovo International Airports. The flights from India lands at the former, which is new and splendidly equipped.

AeroExpress serves the connection between airport and Belorussky Railway Terminal in the city centre that are half an hour apart. This is the cheapest and the easiest way to reach Moscow downtown. You can take taxi too but it is costly and will take much longer time amidst traffic snarls especially during peak hours.

Going around in Moscow is a breeze. The city boasts of one of the most efficient and widespread metro networks in the world. The lines are laid out in such a way that one can see the entire city without being away from the metro station anywhere. There are cards for multiple trips and transfers are free. Stations, as well as the city, have destinations and roads written in both Cyrillic as well as Roman scripts, and maps are readily available.

Muscovite are interesting people. While at the first look they might appear as reserved, the people are actually very forthcoming and any request for assistance of any kind is enthusiastically accepted. The younger lot is more expected to know English than the older people.

Moscow is a huge city and is widely spread with attractions dotted all over the map. Therefore sightseeing needs a bit of planning and commonsense. Unless you are stopping there for, say, at least a week, it is advisable to make a priority list of attractions so that you fully enjoy them by spending time which they demand. While there are many tour operators who have customized itinerary to help you out, the more daring ones can go independently relishing the city.

The first place to start is of course Red Square. Right in the heart of the city, Red Square is city's biggest and the most important city square. Known for stunning parades during (and after) Soviet Union days, the place attracts lots of tourists any time of the day. Apart from the square itself, the place also has the iconic St. Basil Cathedral at one of its corners towards the Moskva river.

Cathedral's stunning onion-shaped domes have become a sort of establishing shot for the city and one needs to spend some time to fully enjoy its architecture from both inside and outside.

Right in the middle of the square, overlooking the long brick walls of Kremlin is the mausoleum of Vladimir Lenin, where his body is preserved. A visit is a must for everyone enthusiasm in history or a lack of it notwithstanding. At the opposite end of the Cathedral is the State History Museum.  The museum has a treasure trove of centuries of artifacts that will steal your breath. You also has an option to have your photos clicked wearing a Czar or Cossack dress.

The Kremlin, the seat of Russian executive, is another must. Situated at a walking distance from the square, the place itself needs a full day to fully appreciate. Particularly interesting is the antique weapons and gems collection in the Armory. One also has an opportunity to visit several beautiful churches that dot the landscape. There are ballet shows to catch as well. One can also spend time by just sitting in one of its numerous gardens and witnessing the time fly by. Another place to spend some quality time is the nearby Old and New Arbat streets. There are numerous eateries and cafes where one can spend time.    
       
Moscow is the city of museums and galleries. While it is impossible to visit all of them, one can pick some of the most important ones such as Pushkin Museum and Park Pobedy. Pushkin Museum and its annexe is dedicated to western art and has arguably one of the world's best Impressionist and Post-Impressionist collections. Park Pobedy or Victory Park is dedicated to World War II and has impressive collection from the era. This museum also boasts of some of the world's best Diorama by some of the best masters in the craft.

If you want to relax and spend sometime with your loved ones, Gorky Park is Moscow's trendiest place to be. Dotted with cafes, open air theatres, cinema halls, theme rides and what not, the park is a must visit if you have children accompanying you. Bibliophiles on the other hand will give their right hand to visit Moscow State Library and take a look from inside. At the end, you wont be able to decide whether the impressive collection of books or the intimidating architecture that left you stunned.

Of the cathedrals, Christ the Savior Cathedral and Novodevichy Convent are the most important one. The former was detonated during the Communist era, but following the collapse of USSR, it was re-erected exactly on the old design. It is on the banks of Moskva river so one can see the panoramic view of Kremlin from here.

Novodevichy Convent on the other hand was tolerated even during Stalin years and hence survived. Taking a stroll inside the convent is heavily recommended, but even more recommended is the adjoining cemetery. Apart from the Kremlin necropolis, this is probably the most famous cemetery in the world if one considers the profile of those buried. From comedian Nikulin to author Gogol, from Chekhov to Ilyushin, from Nikita Khrushchev to Boris Yeltsin; the cemetery is full of people who were not only respected in Russia but all over the world.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education