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Patel For Bailout

October 16th, 2008 by admin | Comments Off | Filed in Financial

Patel for bailout
 

Hyderabad/Mumbai, Oct. 15: Civil aviation minister Praful Patel on Wednesday blamed his Cabinet colleagues for not clearing the airline industry’s demand for a Rs 4,750-crore bailout package. Speaking at the Aviation Expo 2008 in Hyderabad, Mr Patel said “other ministries” are not cooperating to reduce the price of aviation turbine fuel (ATF) though he had recommended it several times. The admission seemed to come in reaction to the industry pressing for a package.

Mr Patel said he had discussed measures to bail out the industry with Prime Minister Manmohan Singh. “The government should immediately form an aviation stabilisation fund and take strong steps to address the sustainability of this industry,” said FICCI president Rajeev Chandrasekhar. The Centre is, however, considering a bailout package for Air-India. Sources in the ministry of civil aviation said the Centre may pump Rs 1,000 crore into the beleaguered national carrier since Air India has deferred its IPO plan.

Jet Airways announced in Mumbai that it has sacked a total of 1,900 employees on probation and has reduced its winter schedule by 15 per cent to cut expenses. “The 1,900 employees who are sacked will be given priority in employment whenever the situation will improve,” Jet Airways executive director B. Saroj Dutta said. Maharashtra Navnirman Sena (MNS) chief Raj Thackeray, meanwhile, said Jet flights will not be allowed to fly from any of the airports in the state. After meeting employees laid off by the airline, Mr Thackeray said, “If Jet Airways has sacked 1,900 employees, its flights will be stopped.”

Adiga Tiger burns bright with Booker
 

London, Oct. 15: India-born Aravind Adiga won the prestigious Man Booker Prize for his debut novel The White Tiger in London on Tuesday night. The 33-year-old author is the second youngest writer to win the ΰ50,000 prize. “I would like to dedicate this award to the people of New Delhi,” Adiga said in his acceptance speech, adding that Delhi was “the most important city in the world 300 years ago, and could again become so.”

Adiga said he wrote the book while living in New Delhi and that he is very fond of the city. “All that is good and all that is bad is what comes to Delhi for resolution. I hope the rich and poor come together and make sure what is good wins,” he added. The chair of the jury, former MP and Tory minister Michael Portillo, described The White Tiger as an angry book. “The novel is in many ways perfect. It is quite difficult to find any structural flaws with it,” he said.

“My criteria were ‘Does it knock my socks off?’ and this one did, the others impressed me. This one knocked my socks off,” Mr Portillo said, adding the book showed “the dark side of India” and “shocked and entertained in equal measure.” Mr Portillo said the final meeting of the judges on Tuesday afternoon was a “tough” and “emotional” one. “The judges found the decision difficult because the shortlist contained such strong candidates. In the end, The White Tiger prevailed.”

 

He chose pen over scalpel
 

Mangalore, Oct. 15: Aravind Adiga might have been wielding a scalpel instead of writing a bestseller had he followed his family’s passion for medicine - and India would have been the poorer for a Booker.ῠ Adiga, 34, who comes from a family of famous doctors and topped the state in his high school examinations, worked for a while as a journalist before trying his hand at fiction and striking gold with his first book.

Raghuveer Adiga, the author’s uncle, says the family is not particularly surprised that Adiga won the Booker Prize with The White Tiger. Adiga always had a special talent with the written word, he adds, even though his maternal grandfather, Mohan Rao, father Madhava Adiga and uncle Ravishankar Adiga are all famous doctors.

Adiga, who lives in Mumbai, draws on his experiences with the gritty side of the working classes to create his characters, his uncle says, encounters that he used to invent Balram Halwai, the protagonist of The White Tiger.
“He is a perfectionist,” Raghuveer Adiga says, “We are happy and proud that he has won the Booker.” Adiga, whose family is from Mangalore, was born in Chennai and brought up in Mangalore. He studied at Canara School till Class IV and then at St. Aloysius School.

“Aravind stood first in every subject,” recalls Dr Anil, Adiga’s classmate and neighbour. “He lost his mother to cancer a month ahead of his Class X examinations but still topped the state.” Adiga, whose family migrated to Australia in 1990, studied at Columbia University, New York, and Magdalen College, Oxford. He wrote for Money magazine and Financial Times and later worked with Time magazine before writing The White Tiger, the darkly humorous story of a man bent on escaping impoverished village life for success in the big city.

 

RBI cuts CRR further
 

New Delhi/Mumbai, Oct. 15: The Indian financial system on Wednesday got a liquidity boost of Rs 65,000 crore to combat the effects of the global credit crisis, with finance minister P. Chidambaram and the Reserve Bank of India promising more steps if needed. The RBI announced a cut of 100 basis points in the cash reserve ratio, the mandatory cash deposits banks must keep with the central bank, pumping Rs 40,000 crore into the banking system.

This is on top of the Rs 80,000 crore infused into the markets over the past week. The RBI also announced the immediate release of Rs 25,000 crore as the first tranche under the farm debt waiver scheme. As global financial giants continued to falter, Mr Chidambaram promised Indian banks access to more funds to raise their capital adequacy ratio to 12 per cent from 10-12 per cent currently.

As part of efforts to bring in foreign funds, he doubled the investment limit for FIIs in corporate bonds to $6 billion. The RBI has also raised the interest rate ceiling on FCNR (B) deposits by 50 basis points and the interest rate ceiling on NR(E)RA deposits by 50 basis points to attract investment from abroad.

 

A restaurant for vultures
 

Bengaluru, Oct. 15: Ramgad of Sholay fame inῠ Ramanagar district is all set to house the country’s first “restaurant” for long-billed vultures which are fast nearing extinction in their traditional habitats around Bengaluru. The forest department plans to create a long-billed vulture conservation reserve over a 15 sq km area in Ramadevarabetta in the new Ramanagaram district, about 48 kilometres from Bengaluru.

“An isolated hillock has been identified to open the bird restaurantῠ to attract the vultures. The forest department plans to tie up with the goshalas from where the dead cattle will be used as a meal for the vultures. A similar ‘restaurant’ was a success in Nepal where the vulture population was revived as a result,” says S. Subramanya, a bird expert who floated the idea with another expert, Gopakumar Menon.

The two approached the forest department hoping to save the last surviving population of long-billed vultures in and around Ramadevarabetta.ῠ This is also the last surviving population of long-billed vultures in the country’s inlands. The forest department is expected to send the proposal to the principal secretary of forest for approval from the Centre.ῠ A few years ago, the hillocks around Bengaluru - Savandurga, Ramadevarabetta and Nandi Hills - had many vultures. Today their numbers have fallen to seven or eight in Ramadevarbetta which had 11 in 2005.

 

Kanimozhi quits RS
 
Chennai: DMK Rajya Sabha member Kanimozhi on Wednesday submitted her resignation from the Upper House to partyῠ chief and her father M. Karunanidhi in line with the decision of an all-party meeting to put pressure on the Centre to call for a ceasefire in Sri Lanka. Meanwhile, the Congress party said though it has conveyed the concerns of Tamil Nadu leaders to the Sri Lankan government, the Centre cannot interfere in the Sri Lankan army offensive against LTTE.
 

Deccan Chronicle

The Sachar Report: A Flawed Number Game

October 16th, 2008 by admin | Comments Off | Filed in Company, Financial, Search

The Sachar report: A flawed number game
By Nitish Sengupta

The Sachar Committee Report, an often-quoted 404-page document, is disappointing, both in its method of analysis and in the way it has collected and presented some dubious statistics. A fundamental fact that has been ignored is that almost 95 per cent of elite Muslims in India, who largely depended on jobs, went over to Pakistan after Partition. Those who stayed back in India were, by and large, the rural community, the self-employed and the service providers. A great majority of them, under the influence of powerful mullahs, kept away from modern education and, in consequence, modern jobs and professions. Thus, the figures for Muslim percentage in government jobs practically started from a zero base. This point should have been mentioned in the report’s overall analysis. Its omission is a serious statistical error.

Then again, the Committee conveniently ignored the fact that the social and economic position of a community does not necessarily depend on the jobs that its members hold in the government or the organised sector. If that had been the case, I am afraid the position of Parsees, to take one example, would be extremely backward. The Sachar Committee’s Report completely ignored that there is a much larger number of self-employed people, tradesmen and service providers among the Muslims who do not seek government jobs.

Another area where it has gone completely wrong is in creating an impression that India’s entire educational and economic system has gone out of its way to exclude Muslims. Whereas, in actual fact, we have all gone out of our way to give placement to them wherever they merit selection. There are indeed, some very serious errors, on the statistical front.

Prof A.R. Hashim has pointed out that in looking at the position of Hindus in general, the Sachar Committee first excluded the Scheduled Castes and Dalits from the general Hindu community and then compared them with the Muslim community. The Committee also pointed out that the position of the Scheduled Castes and Dalits is little or no different from that of the Muslim community. To exclude such a big chunk from the Hindu community and thereafter compare the residual Hindu community with the Muslims is a serious oversight.

Another Muslim scholar, Prof Imtiaz Hussain, also trashed the report on the ground that it ignored the status of Muslims in terms of jobs held in all the South Indian states and others like Gujarat and West Bengal. He pointed out that in all the southern states the Muslims are much better off than what the Sachar Report has made them to be. He questioned the statistics presented by the Sachar Committee in relation to the Census data which shows that the Muslims are better off in several states.

Buddhadeb Bhattacharjee, chief minister of West Bengal, has pointed out that the report ignores the Muslim peasantry who benefited from the state’s land reforms programme. Insofar as the organised private sector is concerned, one point which has escaped the Committee’s attention is that many of our business organisations are still dominated by the caste system. Consequently, a company dominated by banias generally looks out for banias. In that process too Muslims and minorities suffer as much as people belonging to other Hindu castes. This need not necessarily be an anti-Muslim bias.

Clearly, Justice Sachar simply chose to ignore available evidence to make out that the Muslim community is not doing any better than the other communities. He should have taken into account examples like Azim Premji, chairman of Wipro, the richest corporate Indian, Habil Khorakiwala of Wockhardt, the Cipla group, or for that matter, people like Habib Rahman, chairman ITC Hotels, Israt Hussain, a top associate of Ratan Tata, and many others. He should also have objectively made a community-wise analysis of the employees of such successful enterprises as Azim Premji’s Wipro. Is merit their main criterion for recruitment? Does this amount to discrimination and anti-Muslim bias? Or do successful Muslim industrialists reserve jobs for fellow Muslims irrespective of their merit?

I also wish the Sachar Committee had taken into account the brass manufacturers and traders of Moradabad, the glass workers of Ferozabad, the textile operators of Bhiwandi, the carpet makers of Kashmir and the Zari workers of Varanasi. Sadly, these people do not find any mention in the Sachar Report which chose to concentrate only on certain levels of government jobs and worked out the position of Muslims only on that account.

That is not all. The Committee has not taken into account the overwhelming eminent position occupied by Muslims in Bollywood, including the fact that almost 50 per cent of top actors and actresses are Muslims, if not more. Does that smack of discrimination?

It remains a mystery as to why the government did not think it appropriate to assign this work to the National Minorities Commission or even to its own department of minority affairs and, instead, chose to appoint a separate committee. Equally mysterious is the fact that without choosing to discuss this matter in the country’s sovereign Parliament or allowing an informal debate, the government has announced that it has accepted all the recommendations of the Sachar Committee.

Neither the government nor the Indian nation at large deserves the accusation by the Sachar Committee that they have been anti-Muslim all along. Indian Muslims occupy a pride of place in our democracy, and Gujarat (2002) and Babri Masjid (1992) are exceptions, not the rule.

Taken all together, one has to come to the sad conclusion that the Committee has erred both in its analysis and its conclusions. Mr Justice Rajinder Sachar has been a very respected friend for many years. But I am afraid, in this report he has side stepped from the position of a judge and taken on the rule of a lawyer who was assigned a certain brief and went on to collect evidence which suited that brief.

n Dr Nitish Sengupta, an academic and an author, is a former Member of Parliament and a former secretary to the Government of India

US financial flight ended with a thud
By Thomas L. Friedman

I have a friend who reminds me that if you jump off the top of an 80-storey building, for 79 storeys you can actually think you’re flying. It’s the sudden stop at the end that always gets you.

When I think of the financial-services boom, bubble and bust that America has just gone through, I often think about that image. We thought we were flying. Well, we just met the sudden stop at the end. The laws of gravity, it turns out, still apply. You cannot tell tens of thousands of people that they can have the American dream - a home, for no money down and nothing to pay for two years - without that eventually catching up to you. The Puritan ethic of hard work and saving still matters. I just hate the idea that such an ethic is more alive today in China than in US.

Our financial bubble, like all bubbles, has many complex strands feeding into it but at heart, it is really very simple. We got away from the basics - from the fundamentals of prudent lending and borrowing, where the lender and borrower maintain some kind of personal responsibility for, and personal interest in, whether the person receiving the money can actually pay it back. Instead, we fell into what some people call YBG and IBG lending: “you’ll be gone and I’ll be gone” before the bill comes due. Yes, this bubble is about us - not all of us, many Americans were way too poor to play. But it is about enough of us to say it is about America. And we will not get out of this without going back to some basics, which is why I find myself re-reading a valuable book that I wrote about once before, called, How: Why How We Do Anything Means Everything in Business (and in Life). Its author, Dov Seidman, is the CEO of LRN, which helps companies build ethical corporate cultures.

Seidman basically argues that in our hyperconnected and transparent world, how you do things matters more than ever, because so many more people can now see how you do things, be affected by how you do things and tell others how you do things on the Internet anytime, for no cost and without restraint.

“In a connected world,” Seidman said to me, “countries, governments and companies also have character, and their character - how they do what they do, how they keep promises, how they make decisions, how things really happen inside, how they connect and collaborate, how they engender trust, how they relate to their customers, to the environment and to the communities in which they operate - is now their fate.”

We got away from these hows. We became more connected than ever in recent years, but the connections were actually very loose. That is, we went away from a world in which, if you wanted a mortgage to buy a home, you needed to show real income and a credit record into a world where a banker could sell you a mortgage and make gobs of money upfront and then offload your mortgage to a bundler who put a whole bunch together, chopped them into bonds and sold some to banks as far afield as Iceland.

The bank writing the mortgage got away from how because it was just passing you along to a bundler. And the investment bank bundling these mortgages got away from how because it didn’t know you, but it knew it was lucrative to bundle your mortgage with others. And the credit-rating agency got away from “how” because there was just so much money to be made in giving good ratings to these bonds, why delve too deeply? And the bank in Iceland got away from how because, everyone else was buying the stuff and returns were great so why not? “UBS bank’s motto is: ‘You and us.’ But the world we created was actually ‘You and nobody’ - nobody was really connected in value terms,” said Seidman. “Parts of Wall Street got disconnected from investing in human endeavour - helping business to scale and take up new ideas.” Instead, they started to just engineer money from money. “So some of the smartest CEO’s did not know what some of their smartest people were doing.”

Charles Mackay wrote a classic history of financial crises called Extraordinary Popular Delusions and the Madness of Crowds, first published in London in 1841. “Money… has often been a cause of the delusion of multitudes. Sober nations have all at once become desperate gamblers, and risked almost their existence upon the turn of a piece of paper. To trace the history of the most prominent of these delusions is the object of the present pages. Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one.”

And so it must be with us. We need to get back to collaborating the old-fashioned way. That is, people making decisions based on business judgment, experience, prudence, clarity of communications and thinking about how - not just how much.

Speed-dating civilisations, courtesy the new Russia
By S. Nihal Singh

The world is conscious of the Davos gatherings, but less familiar is the annual event, Dialogue of Civilisations. Meeting in the salubrious Greek island of Rhodes, it is the other Davos, a Russian-sponsored one to boot, but one encompassing much of the world, including Israel and the United States. Unlike last year, Iranians and Saudi Arabians did not come, but the diversity of representation, numbering in the hundreds, was impressive and the meeting split into panels to wrestle with the issues of the day.

The eminence grise of the conference was V.I. Yakunin, whose co-chairman is India’s Jagdish Kapur. It was, however, the former who laid down the law and when an Israeli launched into an attack on Iran at the concluding session last Sunday, he was administered a slap on the wrist. The conference, he said, was not one of States, but one representing civilisations, and people could not be held responsible for their government’s declarations. But there was plenty of Bush-bashing in the panels, on religion for one, and otherwise. Damir Mukhetdinov, rector of the Islamic Institue of Nizhny Novgorod in Russia, raised the question of the Archbishop of the Orthodox Church of Georgia blessing Georgia in the fighting in South Ossetia.

A Chinese of the Beijing Pedagogical Institute, Baichun Zhang, raised the awkward point of not being an atheist but in the process of “evolving” as a religious man. And the Chinese people, he declared in the presence of uncomfortable Orthodox clerics, could live without God. He held his ground despite protestations of the clergy, one of whose members said that the Chinese civilisation was based on religion. Confucius was sceptical of religion, Mr Zhang maintained.

The setting was enlivened by the splendid robes and flowing beards of the Orthodox clergy, who actively participated in the discussions. Predictably, it was the Vicar Bishop of the Serbian Patriarchate, Reverend Anastasiy, who was harshest in his criticism of the US’ policies towards Yugoslavia and Kosovo. But the American participants were given full play and spoke passionately about their humanitarian projects. Bishop Gregory Holley of the American New Life Foundation was eloquent in how his organisation set about saving people around the world and their souls.

The Russian agenda of the conference was not hidden. For one thing, the Russian World projected its mission to spread Russian culture around the world and connect with the diaspora. The latter task is particularly interesting because Russians who left their country at the advent of Communism were viewed as traitors, unlike now when they are welcomed with open arms. In fact, the motto of Russian World is taken from the famous dissident poetess Anna Akmatova. The point is that it is a new Russia taking its strides in the world after burying Communism and the humiliating years of chaos in the aftermath of the fall of the Soviet Union.

The size of the Russian diaspora is amazing. There are four million in the US, half-a-million in New York City alone. Russian World recognises that Russians abroad have contradictory feelings to their motherland; some are not sympathetic to it. But their love for Russian culture is unconditional, the culture that is untainted by the Communist past. Its spokesman says that the Russian World is not nostalgic about the past; rather, it is all about the future.

Russia has come to the realisation that an attribute of being a great power in today’s world requires not merely economic and military power but also international networking, based on a variety of foundations which include interacting with their counterparts in different parts of the world. It is, perhaps, symptomatic of the Russian attempt at multi-polarity that China was given two days of round table discussions on its past, present and future. India was adequately represented and Europe was very prominent.

An impressive catch of the conference was the presence of the former Georgian foreign minister, Salome Zurabishvili, now the leader of the Way of Georgia Party in opposition to President Mikheil Saakashvili. Inevitably, the Russian-Georgian clashes came into play as did the question of Kosovo. Despite Mr Yakunin’s pleading, national viewpoints could not be obliterated although there were voices of reason seeking a way out of dogmatic positions. The nation state is very much alive.

What then is the value of jamborees such as the Dialogue of Civilisations? There are several. From the Russian point of view - one shared by several other countries - it provides the alternative view to the US-centric and US-led worldview. After all, the Russians are pleading for a multilateral view of the world and see legitimacy in their efforts to show the better side of Russia’s rich cultural heritage. Second, the annual event, the sixth in a row, provides a useful setting for an intellectual discussion of contentious problems such as those of Palestine; it was interesting to hear an Israeli political philosopher, Israel Shamir, talk about the virtues of one State of Israel comprising Jews and Palestinians. An Israeli Palestinian was, however, more predictable in his approach. Jerusalem, he said, “is bleeding”.

Perhaps, the major outcome of the conference was consensus on the present world economic crisis, best summed up by the Austrian chancellor, Gusenbauer. The era of neoliberalism is fading. Confrontational strategies through military means will not work in future. The world has to solve iconological problems together. These ideas are not revolutionary in themselves but the fact that representatives of the North and South and the East and West could agree on the truth of these principles was no mean feat.

There were iconoclasts. Rostislav Rybakkov, of the Institute of Oriental Studies of the Russian Academy of Science, said there was little point in a dialogue between religions if every religion believed that its God was superior to the Gods of others. He believed in the validity of the Indian concept of “unity in diversity”. And what future can a country have, a Lebanese asked, if religion was essential to a citizen’s identity, as it was in his troubled nation.

These skirmishes aside, a pervasive sense among the conference was that there was something rotten in the state of the world. The post-World War II international economic and financial institutions had become outdated and needed change and expansion to bring in countries like India and China.

No dramatic formulae were presented to chart a course for the future, but the conferees left with the feeling that change was in the air as was the end of the era of American economic supremacy. Perhaps, the participants were as wary as Americans are about the shape of things to come.

My conscience is also my God, I always listen to it
By Samir Soni

In a temple, I fail to understand how people connect with God in the presence of thousands of people. Attaining unity with God is a private affair. After travelling a lot in search of God, I experienced Him within me. And I often meet Him when I am sitting alone or watching the sea. My father has taught me that hard work and being good to all are the ultimate ways to find God. Unfortunately, people today are fighting in the name of God.

To me religion is like a finger that points towards heavenly glory. Religion can be a good way to connect with the divine, but it wreaks havoc when people start believing that their way is the only way to reach Him.

Whenever I am unsure of things, I keep chanting “Help me God” till I fall asleep and it works perfectly for me. I feel rejuvenated when I wake up.

Whenever we are in trouble, it is God’s way of testing us. He puts us in an ocean knowing that we can’t swim. And just when we are about to drown, He pulls us back. But then, He repeats the same till we learn to swim. He strengthens us so that we can solve problems. Over the years, my God has taken the shape of my conscience. I listen to my conscience and don’t do what it doesn’t permit to.

(As told to Fozia Yasin)
- Samir Soni is an actor

My Nobel campaign
By Maureen Dowd

I’m not sending Paul Krugman Champagne.

He won the Nobel prize in economics this week, and while I’m sure that’s delightful for him, it has raised the bar to an impossible height for his fellow columnists at the Times. We used to strive for Pulitzers, or simply regional awards, or even just try to top each other on the paper’s most emailed list.

Now we’re supposed to compete for Nobels?

It’s a total disaster. Any minute, Krugman might swagger into the office wearing that big old 24-karat-gold-plated medal around his neck like a World Wrestling championship belt, talking about how beautiful Sweden is.

So I must aim higher. Much higher.

A Nobel in economics is out. I didn’t take economics in college because all the classes started at 8 am. Physics, chemistry and medicine are out. Literature? They’ve given up giving it to Americans. So it’s going to have to be the Nobel Peace Prize.

I tried to think of a horrible war going on that needed my mediation skills. And then it hit me: The conservative donnybrook over Sarah Palin, the peppery debate raging about whether she is an embarrassment who should fade away or an impudent but promising wine picked before its time. Republicans have been slugging it out over whether Palin is dragging John McCain down or whether his campaign is mishandling her. The governor’s favourability rating is now 32 per cent, according to the new Times/CBS News poll, plummeting 8 points from earlier this month, and her unfavourable rating soared 9 percentage points to 41 per cent.

On Tuesday, Matthew Dowd, the former Bush strategist who offered a famous apologia for helping get W. re-elected, offered a scorching assessment of Palin’s not being ready, saying that McCain “knows that in his gut. And when this race is over, that is something he will have to live with… He put somebody unqualified on that ballot, and he put the country at risk”.

Christopher Hitchens endorsed Barack Obama on Slate calling Palin’s conduct “a national disgrace” and writing: “Given the nasty and lowly task of stirring up the whack-job fringe of the party’s right wing and of recycling patent falsehoods about Obama’s position on Afghanistan, she has drawn upon the only talent that she apparently possesses”.

Christopher Buckley endorsed Obama on the Daily Beast, writing of McCain’s embrace of Palin: “What on earth can he have been thinking?” (The endorsement led to Buckley’s resigning from the National Review, founded by his father.)

On The Colbert Report on Monday, the conservative columnist Kathleen Parker stuck by her assertion, which she said caused the base to treat her like a traitor, that Palin should have bowed out. She said she’d gotten some secret emails from Republicans in the White House agreeing with her. William Kristol, a Palin fan who thinks she has been horribly managed, wrote in the Times that McCain should fire his campaign for malpractice. David Brooks, speaking at an Atlantic Magazine event, called Palin “a fatal cancer to the Republican Party,” bemoaning the fact that she did not fit in with the late William Buckley’s desire to have a party that celebrated ideas and learning.

I started my campaign to win a Nobel prize by trying to make peace between the two conservatives at odds on our Op-Ed page. I called Kristol and asked him if he thought Palin could grow into the next Reagan, reminding him that he was outnumbered by conservatives recoiling from her. “Conservative eggheads are my friends,” he said, “but politically they’re a contrarian indicator. If they’re down on Palin, things are looking up for her. With all due respect for my fellow eggheads, they are underestimating the importance of a natural political gift or star quality. It matters a lot”.

He suggested that she has a shrewdness and toughness - “like Andrew Jackson” - beyond what you get with a Yale law degree or Harvard business degree. “That may be hard for my conservative intellectual friends to grasp,” he said. I didn’t seem to be soothing the waters. I called Brooks, who conceded: “Her political delivery skills are incredible”. So you agree with Kristol that she might be a star in the party? Could Palin be the nominee in 2012?

“The short answer is no,” Brooks said. “She has reinforced the worst of talk-radio culture. The party will need a leader to strike out in a new direction, a fiscally conservative President more like a high-tech Teddy Roosevelt. Someone with gravitas”.

So much for brokering a peace accord. I’ll have to leave the eggheads boiling.

 

Deccan Chronicle

FM Sops To Hike Liquidity

October 16th, 2008 by admin | Comments Off | Filed in Auto, Business, Company, Components, Financial, Insurance, Machines, Marketing, System

FM sops to hike liquidity
 

New Delhi, Oct. 15: The finance minister, Mr P. Chidambaram, on Wednesday announced more measures to ease the tight liquidity situation. These include, immediate package of Rs 25,000 crore to banks under farm waiver scheme and increase cap on foreign investment in corporate bonds.ῠ These steps came after a high-powered meeting chaired by the Prime Minister, Dr Manmohan Singh, on Tuesday, which discussed measures further required to be taken in view of the global financial crisis.

“Under the agricultural debt waiver and debt relief scheme, the government had agreed to provide a sum of Rs 25,000 crore as the first installment to the commercial banks, RRBs and cooperative credit institutions . It is felt that this money should be provided immediately,” said Mr Chidambaram.ῠ He said that on the request of the government, the RBI has agreed to provide this amount to the lending institutions immediately. The money made available to the commercial banks is Rs 7,500 crore and to the Nabard Rs 17,500 crore. There will be no requirement of providing collateral, said the finance minister.

Mr Chidambaram said that while Indian banks were well capitalised, they would be given access to funds to raise their capital adequacy ratio up to 12 per cent.ῠ “Our banks are well capitalised. Their CRARs are well above the basel norm of eight per cent and the RBI stipulated norm of nine per cent. No bank has a capital adequacy of less than 10 per cent,” said the finance minister.

He said that the details of the capitalisation scheme are being worked out. Mr Chidambaram said that the limit of FII investment in corporate bonds will be raised from $3 billion to $6 billion. “The Sebi has informed me that it will address any requests for relaxation in the proportion of investment in equity and debt required to be maintained by an FII under current regulations,” he said.

Mr Chidambaram said that after the Reserve Bank of India, the government is also issuing an advisory to public sector banks impressing upon them the need to ensure easy drawdown against sanctioned limits and continued active parti-cipation in the inter-bank call money market.

Sensex tanks 674 pts
 

Mumbai, Oct. 15: Weak global cues saw the market open down 250 points and the Sensex plunge further after the L&T results were out. They were below street expectations and raised fe-ars that the corporate res-ults which are yet to come would be on similar lines.ῠ Short selling in the L&T stock saw the stock loose Rs 110. “The stock was ruling around Rs 950 and a few seconds before the announcement of the results the stock went to Rs 942. There was heavy shorting in the stock and several other stocks like Reliance Infra and RCom,” said Mr Alok Agarwal, head, research, K.R. Choksey Securities.

No merger for Goyal, Mallya
 

Hyderabad, Oct. 15: The Jet Airways chairman, Mr Naresh Goyal and the Kingfisher Airlines chairman, Mr Vijay Mallya, on Wednesday ruled out merger of India’s top two private airlines.ῠ The two airlines account for about 60 per cent of the market share.

“There is no equity swap. Our understanding is for purely commercial all-iance,” Dr Mallya said. Speaking to the media, Mr Goyal said that the alliance is not a marriage of convenience and the consolidation in the aviation industry is inevitable.

He said, “It (alliance) had happened in the US and the Europe and it has happened for the first time in India.” He said that the rationalisation of routes, capacity and costs are essential for survival and that market share was not the answer to profitability.ῠ “There are instances where fighting for market share made the companies go bankrupt in the US,” he added.

Mr Goyal said that the break-even point for the aviation sector is at 90 per cent capacity utilisation, while the companies are operating between 60-70 per cent. “On top of this, international airlines are dumping capacity in India, lowering their prices knowing we cannot match the competition…. therefore we have to work together,” he said. On the lay-off of 850 Jet Airways’ employees, Mr Goyal said those employees were on probation and the company has just not extended the probation.

He said even Air-India can join the alliance, if wants. Later in the day, the Union civil aviation minister, Mr Praful Patel, said the government does not have any details of the deal. “In absence of such details, we cannot comment on it,” he added.ῠ However, he said the government will not have any problem, if the alliance is within the rules and regulations of the aviation ministry.

Crude falls to $76 bbl
 

London, Oct. 15: Oil prices fell on Wednesday to their lowest in 13 months, dragged down by expectations that economic weakness will cut further into demand for crude.ῠ The US crude was down $3.76 a barrel at $74.87 by 11:04 am EDT. It touched a session low of $74.62, its lowest since September last year. London Brent crude was $4.03 down at $70.50 a barrel. Stock markets also fell sharply and the dollar weakened against the yen as global recession fears returned to centrestage after governments around the world pledged trillions of dollars for bank bailouts.

A weak performance from the US retailers provided evidence of the slowdown. The retailers suffered their biggest monthly drop in sales in more than three years in September. Recession in the world’s top consumer the US and other key markets could further dam-pen oil demand.ῠῠ

Lodha’s son to claim Birla assets
 

HARSH VARDHAN Lodha would soon move Calcutta High Court seeking conversion of his father’s proceedings for the over Rs 5,000-crore M.P. Birla group assets, for which late Rajendra Singh Lodha had filed a probate application vide a will by Ms Priyamvada Birla. “Harsh Lodha will apply in the high court for conversion of Mr R.S. Lodha’s proceedings after it reopens following puja vacation,” said Mr Lodha’s counsel, Mr Debanjan Mondal. The Birlas and Rajendra Singh Lodha had been fighting a bitter legal battle over the M.P. Birla group assets with the probate petition pending in the high court.

Tatas to pay Rs 900/sq mt to Gujarat

THE GUJARAT government on Wednesday decided to charge Rs 900 per square meter from Tatas for the 1,100 acre land given for Nano Car Project in Sanand, officials sources said. The state cabinet meeting chaired by the chief minister, Mr Narendra Modi, took this decision on the basis of recommendation of state-level land valuation committee of the Gujarat government. Tata Group will have to pay Rs 400.65 crore for the 1,100 acres of the land at the rate of Rs 900 per square metre.

Tata Motors develops LPG trucks

COUNTRY’S BIGGEST truckmaker Tata Motors on Wednesday said its Korean commercial vehicle subsidiary has developed the prototype of the 4.5 tonne LPG truck in association with the Korean government. “The vehicle was developed by Tata Daewoo in association with the ministries of commerce, industry and energy, Korea Energy Management Corporation and a consortium of 12 organisations,” Tata Motors said in a statement. The first Korean LPG medium commercial vehicle would be of 4.5 tonne payload and would conform to EURO V emission norms, it added. The truck is powered with a Liquid Phase Injection engine.

No tax for RNOR
 
By Kamal Rathi

Q. I was a non-resident In-dian for the last ten financial years (1998-99 to 2007-2008) and stayed in India for only 370 days in that period. Further, I stayed for only 307 days in India during last seven financial years. Consider-ing this, can I avail benefit of Resident Not Ordinar-ily Resident (RNOR) status for three fiscal years?

Can I claim the benefit of tax free (as available to an NRI) interest for three financial year on my investments such as NRE deposits and FCNR deposits in view of my RNOR status. Kindly tell me, if such benefits are for two or three years, if I fulfil both the conditions.

I have to inform my banks to treat me as an RNOR and also treat my deposits as the same.

Do I have to file income tax return as Resident Not Ordinarily Resident (RNOR) showing interest income and claim rebate or filing tax return is not necessary?

Dwarkanath Narayan, Mysore, Via E-mail.

A. According to Section 6(6) of the Income Tax Act, a person is said to be “not ordinarily resident” in India in any previous year if such person is an individual who has been a non-resident in India in nine out of the ten previous years preceding that year, or has during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and twenty nine days or less.

On the above facts, you will not be liable to tax on the income from investments outside India for two financial years 2008-09 and 2009-10, since you will be able to fulfil at least one condition laid down under Section 6(6), namely being a non resident for nine years during the ten years preceding the relevant financial year.

According to Section 139(1), an individual should furnish a return of income in the prescribed form, if his total income during the previous year exceeded the maximum amount which is not chargeable to income tax.

Hence, if your total income exceeds the threshold limit, you need to file income tax return. You will be entitled to claim the admissible deductions permissible under the provisions of Income Tax Act.

(Kamal Rathi is a chartered accountant, representing Rathi & Malani, a Hyderabad-based accounting firm. Readers can mail their queries on income-tax tokamalrathi.ca@gmail.com)

Honda eyes small car biz
 

Kolkata, Oct. 15: The Indian small car market will see yet another player entering the domain with the Japanese car manufacturer Honda designing a car for domestic consumption, the automobile maker said on Wednesday.  “We are designing a small car which will be launched a few years down the line,”said Mr Jnaneswar Sen vice-president (marketing) Honda Siel Cars India, the Indian subsidiary of the Japanese company said here. The car would be placed in the B, B+ segment, Mr Sen said.

The company would launch a premium hatchback model by 2009 summer. The model has been named ‘Jazz’ and would have a engine capacity of 1200 cc, he said.  Launching the new Honda City, Mr Sen said that the company’s second production base was coming up at Rajashthan and would be ready by the end of 2009.  The company would make an investment of Rs 1,000 crore at its Rajashthan plant. The initial capacity would be 60,000 units per annum, which would be expanded up to two lakh units per annum.  Last year, the company sold 62,000 units across all its models.

Quality’s name of game
 

Bengaluru, Oct. 15: While the old slogan of ‘come to us for cost and stay with us for quality’ still holds good for the Indian IT/ITES sector, it has marched way ahead and today plays a distinct role in enhancing the customers’ business outcome. This is accomplished by increasing the customer’s revenue, collections or market share and delivering a great customer experience. The question is, how important is the role of the ‘quality’ in the business of delivering customer delight? While the question seems like a no-brainer, the answer is somewhat startling, as this correspondent discovered, at the fourth edition of the two-day, Nasscom Quality Summit, 2008 which opened in the city on Wednesday.

Says Arjun Singh, CEO (BFSI), WNS Global Services P Ltd: “While it is clear to most people the world over, that by adopting Six Sigma, corporations can save zillions of dollars by allowing for better product development, quicker time-to-market, improved processes and delivering customer delight, the stark reality in the Indian context is that companies in the BPO space score a measly three out of ten when it comes to adopting the power of Six Sigma. The problem lies in the fact that business leaders seldom buy into the Six Sigma strategy, even when it is obvious that it has the power to transform the way businesses are done.” Six Sigma is a business management strategy that uses a set of quality management methods, including statistical methods, which seeks to identify and remove the causes of defects and errors in business processes.

While most organisations continually implement quality practices, they are faced with practical challenges along the way. “One major issue I have to contend with is the fact that the quality team in my company are mere matrix collectors and do not concern themselves with the nuances of delivering product quality. What is actually required is for them to interpret the matrices and for this they need domain expertise. This is rarely the case, as most experts consider the quality function unglamorous,” said Rajiv Mody, chairman, Sasken. Quality is an absolutely strategic function, even in times of a financial meltdown or a storm in a business cycle, because it ultimately reflects in the value delivered to the customer. Even as most companies consider ‘process quality’ an absolute hygiene factor on which ‘product quality’ is built, there is a dire need for quality to be incorporated at every stage in the product development lifecycle.

“Companies create different departments to handle different functions. But quality as a function cannot be the responsibility of one department alone,” said N Chandrasekaran, COO & executive director, TCS.

Bobby Mitra, MD, Texas Instruments, agrees. “If quality is relegated to one department then checks tend to become sloppy. Quality needs to be a part of every deliverable because there is no God at the end to check it for all defects, which get introduced into the product at every level.”

Belt-tightening ahead for IT
 

New York, Oct.15: On Wall Street, the prices of shares in technology companies have been bouncing around even more than most other industry sectors. Tech stocks were battered on Tuesday, driving down the overall market.

The picture is mixed and uncertain. But based on the early readings before quarterly earnings begin in earnest soon. IBM, surrounded by rumours of weakness, announced its third-quarter results in advance last week, beating analysts’ estimates. Oracle, too, says it is holding up fine. But SAP, the enterprise software maker, and Rackable Systems, which supplies server computers to big Web companies and many smaller businesses, recently lowered guidance for the quarter.

Gartner this week presented its information technology spending projections for 2009, and it sees the souring economy taking a toll. Its worst-case projection (incr-easingly likely, it seems) places worldwide growth in technology spending at 2.3 per cent for 2009, down from 5.8 per cent previously. Stronger Asian markets like China are propping up the overall numbers. In North America, Gartner sees spending growth at half a per cent in 2009, down from 5.3 per cent previously.

In an interview, Peter Sondergaard, Gartner’s senior vice president for global research, explained that information technology was now so integral a part of business operations that spending was no longer going to be much higher or lower than the broad economy. “This isn’t like the 2000 to 2002 period, when much of the world lost confidence in IT,” he said.

Horizons will shorten, and projects that can wait likely will. “CIOs have to learn to think like CFOs,” he explained, using the common shorthand for chief information officers and chief financial officers. At a conference this week, Mr. Sondergaard offered a “top 10″ list for squeezing more out of tight budget dollars. In the spirit of the new austerity, we’ll just give you the top five (the bottom five don’t add much):

1. Reduce headcount and freeze hiring.
2. Curtail data center expansions and “virtualise” servers, putting more software loads on fewer machines. 3. Renegotiate with technology and services suppliers.
4. Consolidate functions and systems to achieve greater economies of scale.
5. Outsource commodity services.

It’s enough to warm any CFO’s heart.

Diagnose biz gains traction
 

Bengaluru, Oct. 15: On a computer monitor in his office in the high-tech hub of Bengaluru, Indian radiologist Arjun Kalyanpur examines a scan of the skull of a six-year-old boy who fell off his bicycle. A few minutes later, thousands of miles away, doctors at a hospital in Philadelphia prepare the boy for surgery after receiving an urgent email from Kalyanpur diagnosing a subdural hemorrhage in the child’s brain.

It’s the middle of the night in the United States, but it’s daytime in Bangalore and Kalyanpur and his team of 35 radiologists are reading hundreds of scans sent by hospitals across the United States during the night shift. “ERs in the U.S. find it difficult to staff at night. There’s a radiologist shortage in the U.S. as well,” Kalyanpur said.

Bangalore, the outsourcing capital of the world, is becoming a global center for telemedicine thanks to a pool of Western educated doctors, extensive outsourcing infrastructure, lower costs and a convenient time zone to diagnose medical conditions during the U.S. night. Teleradiologists in India read X-rays, CT scans, magnetic resonance imaging and other medical images of patients in the United States, Singapore and a host of other countries around the world.

It’s ideal for hospitals facing ballooning costs and a shortage of radiologists. And it’s not just teleradiology, experts say just about every area of medicine that does not require direct patient interaction could be outsourced in the future. This could include scans of pathology samples, ECGs, EEGs and other diagnostic systems used to determine a preliminary diagnosis.

“Telemedicine is on the rise,” said Avinash Vashistha, the CEO of Tholon Inc, a private equity advisory firm, who has written a book about outsourcing. “Once it acquires critical mass in 2 to 3 years, we expect the thrust to come from insurance companies as they recognise the cost benefits and lower premiums for the plans that have components of telemedicine.” There are some concerns, though, that it might lead to dangerous misdiagnosis and even those in the industry admit that regulation hasn’t caught up with technology when it comes to medical malpractice, ethics and legal liability.

Liability, privacy and malpractice issues pose challenges as this new industry expands without a supporting international regulatory framework as well as an ethical code of conduct. “In the end the challenge really is when you’re doing something for the U.S. and something happens, who’s liable for it?,” said Vashistha. The business is lucrative and already there are 10 or more teleradiology firms in India as well as several in the United States, some of which are listed companies.

Deccan Chronicle