The ITC board needs more time to find a successor to Yogesh ‘Yogi' Chander Deveshwar. It has reappointed him for another five years as its wholetime director and chairman with effect from 5 February 2012. That, the board hopes, will give the company enough time to find the right successor. The re-appointment will also make Deveshwar, who took over in 1996, the longest-serving chairman of the company. The problem is the man is a hard act to follow. During his tenure, he has grown the company's topline from Rs 5,000 crore to about Rs 30,000 crore. Under his leadership, ITC also made several diversification moves that transformed it from a tobacco company into a fast-moving consumer goods giant. The board has bought time. Now the task is to find the right man within the next five years to fill a rather big pair of shoes.Oil SlickThis one did not create as big a fuss as its 2G auction report, but the Comptroller and Auditor General of India's (CAG) draft report on the capital costs cleared for the exploration of oil and gas fields by private players has also created quite a controversy. The CAG feels that the petroleum ministry in general and its technical arm — the Director-General of Hydrocarbons (GDH) — in particular have bent rules to allow four private players to make a lot more money than warranted. The CAG particularly came down on the DGH's decision to allow Reliance Industries (RIL) to quadruple its exploration costs in the D6 block of the KG Basin. The petroleum ministry has ruled out any loss to the exchequer on account of RIL raising the capital cost. On its defence, RIL has said it has acted responsibly, and fully complied with the production sharing contracts. The government is now hoping that this does not create as much furore in Parliament as the CAG's other reports.Coal Turns HeadsThe past week has seen the coal sector hogging one too many headlines. On 17 June, coal ministry revoked mining licences of seven blocks of NTPC, Damodar Valley Corporation and Jharkhand State Electricity Board, saying the players were not serious to develop the blocks. Of the seven blocks that got cancelled, five belong to NTPC. The state-run power major has reportedly vociferously expressed its protest against the review by the ministry.On Friday, Tata Steel sold its 26.3 per cent stake in Riversdale Mining to Rio Tinto for $1.12 billion, giving the Chinese major control over the mining firm. LABOUR BLUES: About 2,500 workers of Maruti went on a tool down strike demanding a new union at its Manesar plant (AFP) In an interesting development, state-owned Coal India (CIL) has sought a complete overhaul of the coal policy. CIL's demands include a roll back on the 10 per cent volume limit on coal e-auction, abolition of tapering linkages, and limiting supplies through fuel supply agreements only to consumers by Coal Governance and Regulatory Authority, among others.The latest buzz is that Hyderabad-based GVK is close to picking up controlling stake in the Queensland coal projects owned by iron ore mining magnate Gina Rinehart's Hancock's group. According to reports, GVK will pay close to $3.4 billion to buy the flagship assets of Hancock. Speculation gathered steam as Rinehart, Australia's richest woman, flew down to Hyderabad on Friday to attend the wedding of Mallika Reddy, granddaughter of GVK chairman G.V.K. Reddy.Maruti Strike Fizzles OutThe workers' strike at India's largest car maker Maruti Suzuki ended on 17 June with the workers agreeing to start production. The 13-day strike at the Manesar plant had crippled production by 11,000 units — a loss of Rs 450-500 crore. The workers, backed by All India Trade Union Congress (AITUC), were demanding recognition of a separate union at the Manesar plant, which Maruti rejected. The company agreed to reinstate the 11 workers, which it had sacked for fomenting the strike, but refused to recognise the new union.(This story was published in Businessworld Issue Dated 27-06-2011)
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Ask just about anyone what they use to search for information on the internet, and pat comes the reply. Google. Type "search engine" into Google, and you might land up at Bing, Dogpile or Yahoo. But did you know that there are several other ways to search for information and news, some arguably even offering you a more efficient and innovative experience than Google? Here's my pick of the hidden gems for search, including one you probably know already but don't associate with search.DuckDuckGo: At first, you'd probably mistake DuckDuckGo for Google. That is, if you didn't notice the comical duck with a bowtie in its logo! Unlike Google, DuckDuckGo spells out their biggest draw right on the front page - they don't track you (or your search history) and serve up less 'spammy' results in the bargain. Also unique to DuckDuckGo is their zero-click info, a quick snippet style description of what you're searching for without even navigating away from DuckDuckGo. It also offers disambiguation prompts, which helps clarify what question you are really asking. Are you feeling ducky?Blekko: Search for anything online these days, and a ton of what you see first is sites that are filled with keywords meant solely to capture traffic without providing too much new information. Blekko uses what it calls "slashtags" to group results into several categories and deliver results that are relevant, and you can use the existing slashtags, typically of the form '/India', to say filter only for results that have to do with India (you can even create your own slashtags to help improve the service). Yippy: Meta search engines are those that grab and consolidate results from several other search services, and while they may be waning in popularity, you should try Yippy if you want a meta search engine that does not track or monitor your searches (much like DuckDuckGo).Qwiki: Unlike Wikipedia, which requires you to read whole screenfuls of information to get an overview on a subject, Qwiki lets you search among more than 2 million 'Qwikis' that each tell a story about the subject, in the form of a neatly put together slideshow of images and text accompanied by a computer generated voiceover. It's been called a "movie highlight reel of Wikipedia pages", and that's pretty much what it is. Warning: can lead to a lot of Qwiki-surfing and loss of productivity!Truveo: Specialised video search that spans the most popular video sharing and news sites. Enough said. Also, try Blinkx for more of the same.Isohunt: A Bit Torrent search engine, Isohunt does not host files - it only helps you find files, and therefore is a completely legal service to hopefully help you find legal Bit Torrrent download files. FoodieView: For all those times when you're wondering what to cook for dinner, FoodieView to the rescue. As the name suggests, it is a recipe search engine searching over 175,000 recipes from numerous sources, including AllRecipes.com, The Food Network, Martha Stewart Recipes, and many more. It's also extremely easy to find good recipes on FoodieView that are actually relevant to what your search query is such as if you are looking for a recipe using only certain ingredients.Healthline: No, you do not need an MBBS degree to venture onto Healthline, a medical information search engine. Perfect for the little reading up that you should do to be a more informed patient. Twitter: Wait a minute, isn't twitter for sending and interacting with byte-sized updates? Head over to search.twitter.com and you'll realise it's a great way to find out about the news and interesting links people are talking about right now! Impressive Progeny A successor to the popular Sony NEX line of ultra-compact mirror-less cameras can only be a good thing, and the NEX-C3 lives up to the family name. Packing in 16.2 megapixels in a camera body smaller than the current-gen NEX-5, this is the smallest camera body to sport a full size digital SLR sensor without forsaking performance - this baby shoots at a maximum 5.5 frames per second! URL: http://bit.ly/kVmZ3bPrice: $649 break-page-breakForces To Reckon With With the recent announcement of the PlayStation Vita at E3 recently, there is bound to be renewed interest in the hitherto ageing PlayStation Portable. I've been playing two new games on the console - Patapon 3 and Cart Kings and here's what I think of them.In Patapon 3, you are, much like the previous Patapon games, a warrior deity worshipped by a tribe of tiny warriors, and since it's a musical role-playing game, you end up feeling like the beat-master on your own galley. You use the four face buttons on the PSP to pound out drumbeats in rhythmic four-beat patterns based on whether you want to march, attack, defend, jump, retreat and so on. Do it well, and your warriors are a well-oiled synchronized machine. Slip up and lose the beat, and your army falls into disarray and gets pounded by the enemy instead. There's much to like about this seemingly simple game. I love the shadow-theatre styling to the whole game, with patapons and their foes assuming black silhouettes with little splashes of colour set against gloriously detailed backgrounds. The musical score suits the game to a tee as well. And while the beats and movement become instinctive after a while, using the skills and weapons is a complex activity, so you'd be well advised to take this game slow and read up online before you get too far into the game. This game is as much preparing for the warfare (armor, weapons) as it is about the actual fight, and being prepared is the difference between victory and becoming a dragon's lunch.Additional variety comes with the obstacle races and the tower defence modes, and an impressive list of multiplayer options that are playable both locally and online. Either solo or multiplayer, Patapon 3 delights at pretty much every turn, and the heady mix of the soundtrack, gameplay and the visuals makes this worth much more than the money you pay for the game. Cart Kings is the other extreme. It takes popular characters from Indian comic-lore, such as Shikari Shambhu, Supandi and Tantri the Mantri and puts them into bullock carts in this simple arcade style racing game. It's all Indian - you get to race in locales like Bollywood, Delhi and Tiger land, and the power-ups and weapons include chilly powder, soda bottles, and cow dung! Graphically and visually, the game is very dated and can appeal only to really young children who associate with the characters and don't demand much of a storyline from their games. Rating: Cart Kings: 7/10, Patapon 3: 9/10Price: Rs 699 (CK), Rs 999(P3)URL: http://bit.ly/mGcs5Qtechnocool at kanwar dot nettwitter@2shar
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Foreign direct investment (FDI) flows into India bounced back in April, on an investment surge in services, construction and auto sectors, reversing a steep drop recorded in the previous fiscal year, the government said on Monday.In April, the first month of the 2011-12 fiscal year, FDI into India rose an annual 43 per cent to $3.1 billion, with analysts expecting the year to show an improvement in such flows owing to previously announced big-ticket projects.FDI inflows had fallen to $19.43 billion, down a quarter, in the last fiscal year that ended in March, as foreign investors shunned Asia's third-largest economy over policy paralysis from a series of corruption cases, regulatory hurdles and lack of reforms.That decline has posed worries for the slowing Indian economy and for balancing its trade and current accounts, with Finance Minister Pranab Mukherjee last week saying that the government was in the process of pushing forward reforms, including easier FDI norms, to attract foreign investors.Analysts say FDI inflows could improve this fiscal year on account of big-ticket investments such as the POSCO's proposed $12 billion steel plant and Reliance Industries' $7.2 billion deal with BP.POSCO has been given clearances for the project in Orissa, though progress has been slow due to local protests. Media reports have said the home ministry has approved the Reliance-BP deal.FDI flows may also get a boost if the government opens up the supermarket sector to greater foreign investment, as has been suggested by government officials.The service sector, which saw investments rise an annual 21 percent to $658 million in April, was the top recipient of FDI inflows, the trade and industry ministry said in a statement.FDI in the construction sector, including into roads, was up by 7 per cent to $311 million in April. The automobile sector attracted $266 million, up 5 per cent, while flows into the power sector also grew 5 per cent to $256 million.For the January-April period, FDI flows were down by 9 per cent from a year earlier at $7.1 billion, the government said.(Reuters)
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When G20 farm ministers meet this week France is unlikely to get what it wants - assent to tougher commodity trading rules - although the bloc might agree to share key data on grain supplies to ease the threat of food shortages.Paris has made tighter regulation of commodity markets a priority of its 2011 presidency of the Group of 20 leading economies as President Nicolas Sarkozy has blamed speculators for food price inflation that has fuelled unrest in North Africa and the Middle East.Surging demand for food and fuel will keep upwards pressure on farm prices for years to come, but more transparency on how much grain, rice and other foodstuffs countries are producing could calm supply concerns that drive up prices.While all G20 nations agree that steps must be taken to tackle food inflation, they are split over whether prices should be tamed by regulation or by increased agricultural production."There will be a few concrete measures on relatively secondary issues but what's important is the attention the international community is giving to this issue of agriculture," said commodity specialist Philippe Chalmin. "This is the first time there is such an international meeting on farm issues."Chalmin, who is also an advisor to the French government, said he expected the final communique to dwell on speculation but saw no ground for a deal on regulation given the gap between "Sarkozy's vision and the vision of more reasonable people."Indeed, France's proposals to impose position limits on how much of the market an investor can buy into, or a minimum cash deposit for commodity derivative transactions, have failed to win support from countries such as Britain, which believe speculation is not the root of food inflation.The United States, Brazil and Argentina say that instead of focusing on regulation the G20 should review measures to bolster farm output through investments and the use of new technologies."We need more production, with more farmers and more added-value goods, because that's the only way to provide food for the world," Argentine Agriculture Minister Julian Dominguez said last month.A communique draft obtained by Reuters on Thursday showed farm ministers meeting in Paris on June 22-23 could end up with a watered-down deal limiting decisions to agricultural issues, mainly data or food supplies, not markets.They are expected to pass on the tricky issue of regulation to G20 finance ministers with a statement that "strongly encourages" them to "take the appropriate decisions for better regulation and supervision" in time for the closing summit of France's G20 presidency in Cannes in November.Sarkozy, seeking to impress on the world stage ahead of a tough reelection battle in 2012, set an ambitious agenda for France's G20 presidency with goals ranging from defining ways to reduce economic imbalances to weaning the world off the dollar as its sole reserve currency.French Agriculture Minister Bruno Le Maire said, however, a deal was "not guaranteed at all" and that France would not sign something that does not tackle financial issues.A Global Deal Or Nothing?The draft communique mainly covers purely agricultural issues such as the launch of a database on national farm supplies, a joint research programme on wheat and a rapid response forum between G20 states in case of a food crisis.G20 ministers would also agree to set up food aid reserves and remove export restrictions for humanitarian supplies.But there may be resistance even on these points as China is reluctant to share information it sees as strategic. China also considers, as does India, that giving exhaustive and timely data on stocks would be difficult for practical reasons.Russia, which imposed a unilateral ban on grain exports in the summer of 2010 after a severe drought ravaged its harvests, has been among the countries wary of putting limits on export restrictions, even for humanitarian purposes.Meanwhile, Washington is dragging its feet on a proposal to set up strategic emergency food stocks in emerging markets, as it risks undermining its exports to the countries concerned, and it opposes any curb on biofuel production."This topic is not ripe," for an agreement, Le Maire said on Friday, a position likely to anger organisations such as charity Oxfam which have blamed the growing use of arable land for biofuel production for food security issues."Reforming flawed biofuels policies which divert food into fuel, and helping poor countries build up food stocks to guard against extreme fluctuations in global food prices must be at the top of their agenda," Oxfam said on Friday.(Reuters)
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The world economy is slowing down due to a combination of factors such as the euro zone's debt problems and a weak US housing sector, but it is not headed for a double-dip slump, the head of the OECD said on Monday."We do not believe there is a return to a recession," Angel Gurria, secretary-general of the Organisation for Economic Co-operation and Development (OECD), told reporters when asked if recent signs of a slowdown pointed to a major weakening in the global economy.He cited political turmoil in the Middle East, debt problems in euro zone economies, higher commodities prices, the devastating March earthquake in Japan and fractious US budget negotiations as some of the factors behind the cooldown."There is recovery. There are positive numbers, (although) it is going to be a little softer than we thought initially," he said at a news conference in Seoul on the sidelines of a business conference co-hosted by the OECD.The remarks came as recent data around the world raised concerns that economic momentum was slowing in many advanced countries and in particular the United States, on which many export-reliant Asian economies rely heavily for growth.Gurria also said current talks among euro zone leaders on helping Greece avoid a debt default required a technical approach to make sure legal aspects were well covered, as well as strong participation from the private sector."It has already taken too long. The solutions are on the table. I think the stakes are very high," he said.Euro zone finance ministers kept up intense pressure on Athens on Monday to approve tougher fiscal austerity measures before a final decision is made on a further 12 billion euros in emergency loans. Greece says it needs the money by mid-July or it could default on its debts, which could wreak havoc on global financial markets.The OECD chief also said he expected commodity prices to go up in real terms over the next decade, given supply and demand."But it is also desirable because better prices make farmers invest more, plant more and produce more, and we need to increase productivity in the agricultural sector," he said later at a meeting with a small group of reporters."The trend is up for the next 10 years, which will reverse the trends we have seen so far," he said.(Reuters)
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Regenerative medicine crossed another milestone this week when scientists at the University of Lund in Sweden demonstrated the direct conversion of skin tissue cells into nerve cells. So far, the standard technique in this field has been to convert adult cells (usually from the skin) into stem cells, and then converting stem cells into tissues or organs that have to be transplanted. This method has several risks and has not worked well in humans so far, although a few recent breakthroughs seem promising. The new method skirts the stem-cell route, and so avoids most of the risks associated with it.Regenerative medicine is in some ways the Holy Grail of modern medicine. Damaged organs such as kidney, liver or the retina can seldom be repaired through drugs. The only way out is to transplant a new organ. This works for some time, but brings with it other risks such as rejection. The average life expectancy of a patient with a transplanted kidney, for example, is 10-15 years. Regene-rative medicine can one day provide these people with their own organs, but so far it has not worked to the extent required for field use.Regenerative medicine is useful not just in transplanting organs. Bone marrow transplants are being used to treat leukaemia patients. Many neural diseases can in theory be treated with regenerated cells. For example, Parkinson's disease, caused by degeneration of brain cells that produce a chemical called dopamine (an important neurotransmitter involved in many brain functions) can, in theory, be treated by transplanted brain cells. However, this method has not worked in practice so far.The use of stem cells in regenerative medicine has been dogged by several controversies. The use of embryonic stem cells has been criticised as unethical and has been banned at various times in several countries. Scientists have learned to convert adult cells — particularly of the skin — into a type of stem cell called pluripotent cells (which are capable of differentiating into most organs in the body), but the use of pluripotent stem cells in therapy is dangerous because they sometimes lead to tumours. The current method in Lund avoids this step, and converts cells of one type directly into cells of another type.The Lund scientists have achieved this by reprogramming the skin cell, of a type called fibroblasts. Cells differentiate into different types because different kinds of genes become active in different kinds of tissues. You can use this process to change cells of one type into another. For example, if you shut down the liver genes in the liver cells and activate the retina genes, the liver cells will be converted into retinal cells. Lund scientists, led by Malin Parmar at the department of developmental neurology, found that this technique was much easier than people thought.Parmar and her team activated three nerve cell genes in the fibroblasts, and another two genes involved in dopamine synthesis. This led to the conversion of the fibroblasts into dopamine-producing nerve cells, thereby demonstrating a possible therapy method for Parkinson's disease. This was a major breakthrough because it opened a new avenue of research with immense potential. For scientists to actually use it in a clinical trial, they need to see how the new neurons grow in the brain. They need to optimise their methods with the right kind of starting cell, see how well the new neurons grow in the brain, whether they survive in the long term, and also how well they produce dopamine. Of course, they would also need to see whether the patients get better with the treatment. (This story was published in Businessworld Issue Dated 27-06-2011)
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Amidst panic in the stock market over double tax avoidance treaty with Mauritius, the government on Monday said India "cannot impose arbitrarily" capital gains tax on investment routed through the island nation."How can you do that? There has to be some agreement on that. Right now, it is not there in the agreement. You cannot impose it arbitrarily," Finance Secretary Sunil Mitra told PTI.However, he said the two nations are likely to hold discussions on revision of the double tax avoidance treaty, which has been used for routing third country investment into India for availing of tax exemptions.The BSE benchmark Sensex plunged by over 556 points in intra-day trade on Monday on widespread panic selling by funds as well as retail investors, triggered by reports that the government may impose capital gains tax on investments through Mauritius.There was a recovery in the market in the afternoon, but the Sensex was trading 336 points lower 1450 hours.Asked to comment on the market fall, Mitra said," that is up to the market. What can I say".The Finance Secretary said the process of renegotiation of the tax treaty with the island nation began in 2006 through a joint working group, but got stalled in 2008.New Delhi has suggested dates in July and August for resumption of talks. "They have to give their consent," he said.Under the present treaty, only Mauritius has the right to tax capital gains on investment which is routed through it in India. But it does not levy any tax as per its domestic policies giving advantage to the investors.Most of the foreign direct investment as also the inflows in the stock market are round-tripped through Mauritius. PTI NKD PC(PTI)
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Gaming is no longer for kids. Computer manufacturers are coming up with gaming machines that eclipse the power and performance of your meticulously assembled home and office PCs. And the advocates of the fun and advantages of console gaming have to agree that the visual and aural images that a cross-platform game evokes on a gaming PC are far superior to those on a console.Made for pros, gaming PCs are awe-inspiring monsters that feature only the most powerful and branded components. From the unique exterior down to the inside cabling, they look awesome and cater to a niche but growing number of enthusiasts. We list five such PCs that are custom-built and wow with their lightning fast performance. Expectedly, these are expensive — in fact, more expensive than the average fancy laptop. Courtesy: Digital Storm Digital Storm Assassin"Powerful is an understatement," proudly proclaims the digital storm website. And indeed, the handsome Digital Storm Assassin is more than a powerful gaming machine: the build quality of the system and the manufacturer's dedicated customer service make it a recommended buy for those who can afford $1,627 (Rs 72,978). Featuring 8-GB DDR3 memory and an Intel Core i5 2500K 3.30GHz processor, the Assassin also sports a much-needed 1-TB Western Digital Caviar hard disk drive, while a 1-GB NVIDIA GeForce graphics card makes gaming a visual delight on the black machine. However, the ASUS motherboard with Intel P67 Chipset does not support Scalable Link Interface (SLI), a technology that's meant to increase the processing power available for graphics. Courtesy: Dell Alienware Aurora The science-fiction-inspired designs of the alienware brand of pcs from Dell have always been a big hit, even with those who don't play games. The Alienware Aurora, for example, sports a case that reminds one of an alien's head. Apart from boasting an 8-GB RAM (upgradable to 16-GB!), it also comes equipped with a whopping 2-TB hard drive. The capable Intel Core i5 processor and the 1-GB AMD Radeon high-definition video card give the alien monster all the power it needs to run heavy, graphics-intensive games, be it The Witcher 2 or your old favourite Tomb Raider: Legend. However, the Aurora's processor boosting limit is clocked at 3.3GHz, which, when compared with some of its rivals, looks insufficient. Some of the Aurora's other standard features include integrated 7.1-channel audio, Alienware High-Performance Liquid Cooling and AlienFX lighting. So, if you are game, get ready to shell out $1,299 (Rs 58,097) to catch this powerful monster of a gaming PC. Courtesy: Maingear Maingear ShiftThe sturdy-looking chassis with advanced vertical heat Dissipation of the Maingear Shift is more than a façade. The brushed black aluminium exterior houses a CPU that boasts the power of an Intel Core i5 processor and 8-GB Crucial DDR3 memory. The system also comes equipped with a 64-GB solid-state drive, a 1-TB Samsung hard drive and a decent cooler. However, adding extra hard drives is a big problem, courtesy the pre-wired layouts in the two additional hard drive bays. When it comes to graphics, the Maingear Shift features the staggering 1-GB power of an NVIDIA GeForce GPU. Considering the full specifications, the fact remains that a retail price of $2,040 (Rs 91,239) makes the Shift slightly overpriced as many of its less expensive rivals also deliver similar — and better — performance.CyberPower Black PearlThe Cyberpower Black Pearl is an object d'art in its own right. The machine flaunts a beautiful Azza Hurrican 2000 Full Tower Gaming Case that houses an Intel Core i7 processor and a motherboard featuring an Asus Sabertooth X58 chipset complementing the CPU. The staggering capacity of 12-GB onboard memory and a 1-TB SATA hard drive add to the joys of the dedicated gamer. It also boasts a 1-GB AMD Radeon HD video card and Asetek 510LC Liquid Cooling System, while 7.1 HD audio comes standard with the system. But with the base model itself having a starting price of $1,299 (Rs 58,097), it is no wonder that the Black Pearl will make a sizeable hole in your pocket. Courtesy: Velocity Micro Velocity Raptor Signature EditionIt turns out that the raptor signature Edition from Velocity Micro is one of the most expensive gaming PCs in the market. Its scary price of $4,549 (Rs 2,03,454) aside, it is also one of fastest gaming monsters — the Intel Core i7 Extreme Edition processor and the Intel motherboard with X58 chipset are apt to handle multitasking while the SLI-ready NVIDIA GeForce video card renders high-end graphics. However, given its price and the Signature Edition tag (the system comes with the signature of Velocity Micro's founder and CEO Randy Copeland), the 6-GB memory looks paltry and the loud cooling hardware is something of a downer. Thankfully, it comes equipped with a 2-TB hard drive and a Blu-ray reader. Also, a premium Razer gaming keyboard is supplied with the machine. (This story was published in Businessworld Issue Dated 27-06-2011)
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The recommendations of the high-powered Expert Committee (HPEC) on Urban Infrastructure, set up by former urban development minister Jaipal Reddy, have to traverse some more distance. Constituted in 2008, HPEC submitted its findings last month on the problems of leap-frogging urbanisation and the financial measures necessary to make our cities more efficient and liveable. Kamal Nath, the current minister, has asked the committee to "revisit the report and come up with a concrete roadmap to help implement its recommendations".The HPEC, mandated to estimate investment requirements for urban infrastructure for the next 12 years, was headed by Isher Judge Ahluwalia, chairperson of Indian Council for Research on International Economic Relations (Icrier), and included Nasser Munjee, deputy chairman, Infrastructure Development and Finance Company (IDFC); Hari Sankaran, managing director, IL&FS; and P.K. Srivastava, joint secretary and mission director of Jawaharlal Nehru National Urban Renewal Mission (JNNURM).The HPEC doesn't sound the normal doomsday warnings. Figures show that India — with 30 per cent of its population living in towns and cities — is far behind other developing markets such as China (45 per cent) and Brazil (87 per cent). Unmistakably, though, the growth of Indian cities is striding forward. The number of cities with more than one million people will go up from 50 to 87 by 2020, and India's urban populace will be 600 million by 2031. HPEC sees cities as the future engines of growth. "India's economic growth momentum cannot be sustained if urbanisation is not actively facilitated," and predicts that as much as 80 per cent of the country's GDP will come from the urban sprawls by 2031.The report's recommendations are divided into three parts: First, investing Rs 39.2 lakh crore in urban infrastructure over 20 years with the bulk targeting development of urban roads, water and waste management and for re-housing slums. It also pleads for giving much more importance to urban planning and seeks a hike in investment from 0.7 per cent of GDP in 2011-12 to 1.1 per cent by 2031. Next, it pitches strongly for strengthening of governance particularly of the urban local bodies. The only way urban transformation will happen is when the current bungling and financially bankrupt municipal and local bodies are souped up with efficient and autonomous administration, improved tax collection, and the ability to raise funds from the market for specific programmes and projects.Finally, the Ahluwalia report argues for a programme-based roadmap instead of the current piecemeal project-based approach. In this context, the analysis of the JNNURM implementation is interesting. Kicked off in 2005, the JNNURM was allocated Rs 66,000 crore by the government of India. Of this, less than half — Rs 28,650 crore — has been disbursed so far, and, of the 526 infrastructure projects sanctioned, only 84 have been completed.Asked to comment on Nath referring back the Urban Infrastructure report to the committee, HPEC's chairperson Isher Ahluwalia told BW: "The minister asking for a roadmap is a compliment. The work of the Committee is over but we will constitute a small working group and submit a ‘roadmap' in a month or so."The committee has in fact put forward specific reforms and proposed delivery structures. These include creating an urban affairs ministry and an accountable and empowered Mayor at the level of the urban municipal bodies, pooling of taxes and resources between local bodies, and a suggestion for training 300 IAS officers annually as dedicated ‘urban specialists'.(This story was published in Businessworld Issue Dated 16-05-2011)
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Succession in corporate India has its share of problems, but the same in government-owned companies is strange. Take Life Insurance Corporation of India (LIC), India's largest insurance firm by many a mile. In the past few days, the government announced that Rakesh Singh, an IAS official, would be interim chairman for three months. (He also has additional charge of National Bank For Agriculture And Rural Development, or Nabard). The man he is replacing, T.S. Vijayan, has about two years of service left, but is being demoted to managing director.What is odd is that usually the government has a reservoir of talent it can draw upon. Yet it has been unable to find one that fits the bill for LIC. True, there has been a recent reshuffle of the senior-most bureaucrats in some ministries; also true, the Congress is fighting elections in no less than five states, and is under the microscope for scandals in the conduct of the Commonwealth Games and 2G spectrum allocations, so it may be occupied elsewhere.But LIC is the biggest financial institution in India that collects and invests nearly Rs 60,000 crore each year in insurance premiums. Its investments can move markets, and managing a portfolio of about Rs 12 lakh crore is a gargantuan task. This is more than adequate reason for the government to ensure that a successor to Vijayan is found quickly.What makes this even more complicated is that Vijayan still has two years left before he retires; he joined LIC in 1977 in the marketing division. No rationale for this decision has been provided, though there is considerable speculation about the losses — this is unconfirmed — that some of his decisions may have caused. Exits, like successions, should be graceful.(This story was published in Businessworld Issue Dated 16-05-2011)
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