BW Communities

Good Intentions, But…

BW Online Bureau Nov 08, 2014

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[The Union Ministry of HEIGHT OF IRONY: Hiranandani Gardens at Powai in Mumbai was originally meant to be a mass housing scheme for the poor (Pic by Sanjit Kundu) Housing has proposed that 20 per cent of land in new housing projects be reserved for the poor. To ensure implementation, Kumari Selja, minister for housing and urban poverty alleviation, is wielding both the carrot and the stick. Builders who construct small units for maids and drivers in their townships would be granted additional development rights. And state governments that don't toe the line may find funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) — a hefty Rs 50,000 crore waiting to be disbursed —drying up. The minister's objective is laudable, but the fact remains that housing for the poor remains just an election issue in India, and her scheme is likely to come to naught. For instance, Maharashtra was the first to propose 20 per cent reservation in public and private housing projects in its draft housing policy of July 2007. The proposed legislation is yet to see the light of day. Similarly, builders can be relied upon to cash the sops and then wriggle out of their commitments. Under the now-defunct Urban Land (Ceiling and Regulation) Act 1976, land earmarked for takeover was exempted if builders used it for mass housing. However, builders clubbed several flats internally but executed two or three separate sale deeds to pass muster. For instance, the development of sprawling Hiranandani Gardens, in Mumbai's suburb of Powai, was initially allowed in the 1970s as a mass housing scheme for the poor. Today it is the most expensive address in the city's central suburbs. PHARMACEUTICALS Taro's Twist Sun Pharma's quest to acquire Israel's Taro is getting longer NO TRUCE IN SIGHT: The prospects of an out-of-court settlement with bet- ween Sun and Taro have slimmed (Bloomberg) Mumbai-based Sun Pharmaceutical Industries's battle to gain control over Taro Pharmaceutical Industries is dragging on, as the intentions of the Israeli promoters remain unclear. Even as the Israeli Supreme Court's directive to find an out-of-court settlement ends, going by their last-minute proposal, Taro's promoters, the Levitt family, seem reluctant to renegotiate. Not only does the price of $15 per share asked by Taro represent an 82 per cent premium over the prevailing price on the Pink Sheets electronic system of $8.21 as on 6 January, but the proposal releases the Levitt family from its contractual obligation to transfer its shares to Sun — the very clause that had brought both parties to the court in the first place. On its part, Sun had proposed two options: a new merger agreement at $9.5, or a new tender offer at $9. Both were rejected. But Sun's willingness to pay $1.75 extra per share — it had agreed to buy Taro at $7.75 per share in May 2007 — to seal the deal also brings up some new questions. If as Sun so vehemently argues, there is no evidence of a dramatic improvement in Taro's financials as no audited results have been published in the past three years, why is it so boldly going ahead with a higher offer? Noemie Bisserbe GLOBAL NEWS Even as it is mounting its incessant attack on Gaza, Israel seems to be heading for a diplomatic misadventure. The air and ground attacks — purportedly to stop the rocket firing by Hamas — have left about 600 dead, according to Red Cross. This has further widened Israel’s divide with Muslim countries.   GEMS & JEWELLERY Diamonds Sans Sparkle The Gems and Jewellery Industry's decision to rescind its self-imposed ban on import of roughs has not served its purpose — generate work for diamond polishing workers. The ban, imposed barely a month ago, was to conserve cash for importers hit by overextended positions. The industry imports about $5 billion of rough diamonds annually. The ban was harshly criticised, especially in Gujarat, where about 100,000 polishing workers were left unemployed. Some units have reopened after the ban was revoked, but this has not helped. Workers are paid not on man hours of attendance but on actual volume of work performed. "The global situation has not improved, and the US holiday season retail sales were greatly disappointing," says Vasant Mehta, chairman of The Gem & Jewellery Export Promotion Council (GJEPC). With recession hitting western markets harder, demand for polished diamonds remains abysmal. And so do the workers' future. Gurbir Singh Click here to view 'Factory Orders Fall'   EUROPE’S WOES: Since 1 January, Russia has halted gas supplies to Ukraine, through which a fifth of Europe’s gas transits. In the picture, a seller chops firewood at a wood market near the Bulgarian capital Sofia on 7 January 2009. Bulgaria’s energy ministry says Russian gas supplies are suspended for an indefinite period. (AP)   POLICY Bad Timing The new integrated energy policy has probably come at the wrong time (Pic by Amit Verma) The United Progressive Alliance government (UPA) at the Centre appears to be waking up to reality in its final days in office. After three years of debate, the UPA government finally ratified the Integrated Energy Policy two weeks ago. The policy, aimed at meeting India's energy requirement for the next 25 years, calls for augmenting commercial energy sources. It also recommends the setting up of a national energy fund to finance R&D in the sector. But the moot question is, even if the policy is in the right direction, what is the guarantee that its provisions will be implemented? Especially given that general elections are round the corner, and the fact that energy pricing has always been a politically sensitive subject. Kandula Subramaniam CORPORATE Clearing The Air (Bloomberg) Steve Jobs has finally admitted to his mysterious illness. "My doctors think they have found the cause — a hormone imbalance that has been 'robbing' me of the proteins my body needs to be healthy," Jobs said in a letter to the "Apple Community". For the past few months, there have been rumours about the health of the iconic Apple chief executive. Rumours intensified as Apple remained secretive about Jobs's health. Jobs has clarified that he will remain CEO. Click here to view 'Top 10 Graduate Employers'   SPORTS SRK's Cheery Waltz (ABP) Cost cutting is for the dim. For Shah Rukh Khan, earning opportunities never cease. The actor is turning an expense of his Indian Premier League (IPL) franchise, Kolkata Knight Riders (KKR), into a source of revenue. Instead of parting with about half a crore rupees to hire cheer leaders for IPL's one-and-a-half-months season, he is going to pocket several crores by producing a TV reality show to choose cheerleaders for 2009. Khan also plans to make money from training and recruitment of players. KKR will be conducting training and selection camps for young talent backed by sponsors starting March 2009. No wonder, KKR was one of only two IPL franchises (the other being Jaipur's Rajasthan Royals) that made a profit in IPL's inaugural year. Feroz Ahmed (Businessworld Issue 13-19 Jan 2009)