Ad Here  
More Shakti to resource mobilisation... Sweet news for TN sugar mills F C Kohli - his concerns all embracing More heat than light Reliance’s TV – 18 ready to launch Tamil News Channel PC’s preference for professionals Moily’s bold thrust Delhi is distant Tribute – UCAL Selvan… Inflation: are we emulating Argentina and Brazil? Welcome focus on core competence Rs.1600 crore paper board plant of TNPL Building loyalty through the stomach Make standards certification mandatory... A proud Madrasi Wanted: a second airport for Chennai Fortune for Indian Airlines Roaring Ro-Ro facility Russi Mody – a tribute The rise and rise of KCP Tough task taking states together Align crops to agro climate endowments… Editor's Notes The brown list of Venkitaramanan Cement prices continue to rise… This scant respect for Law Tatas moving out of urea production... Adharma of opposition politics Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Gay abandon in pricing Secularism and anti-Hinduism Muffled voices for merit… Shale gas and its shallow future Boy, can you beat these? Shaming of Tamils by Tamil farmers at Delhi Lesson from Chandrababu Naidu Bihar – Nitish Kumar adopts the Lalu model L&T- the specialty of special purpose vehicles Shipping woes of Chennai companies CII projects higher growth… Welcome thrust on trade in Modi’s foreign visits... Telangana in top gear… When small is no larger beautiful.. Demise of a media baron... Online not in line with brick and mortar businesses... The few handicaps... Kulandai was a giant A yen for wastage… Air Asia India will set new benchmarks for budget travel The Ports’ Pasha expands into Tamil Nadu Small units prefers to remain small... Streamlining mandatory third party cover TELANGANA at last…BUT Medical costs hit the roof... Poor representation for Kerala and TN in Cabinet Fall in crude prices help in oil sector reform Of course, Gujarat is vibrant Not just in-laws (and outlaws); they’ve renowned academics at the helm! Odisha: spectacular win by Naveen Patnaik Return to king coal for urea... No mega rail project for Tamil Nadu Like Hinduism: many paths to reach God... Another Indian music maestro at the UN ONGC at KG Basin More Shakthi to Das’ elbow A think tank for Chennai More tributes to GR A Grand Finale for SN’s MS centenary at the US… Delhi returns to BJP Sri Lanka votes for change Godspeed, Chief Minister JJ Which side are you, Montek? Infrastructure funding – lessons learnt …and of a popular trade leader Bihar elections - the Rajaji formula worked Valli, they are more marginalised Protest masters... Preserving for the future Liberal imports idling indigenous capacities The nuclear option WTO Meet: resolved to meet again Fuel for thought Don’t seem to feel the pulse… Marketing expert Balagopal is no more An enemy’s enemy is a friend Whistle-Stop Tour of Raghuram Rajan Contrarian cousins Kudos to NDTV... CSR and CMI: promise of another Srinivasan Ramanujan... Put expensive assets created to use... The star of Spencers is no more Excel Generators provide the vital back-up The Jan Dhan bonanza Limit foreign borrowings to hi-tech, export potential projects... Things happen by accident and not by design... Shanti and Sadhana through Music A friendly business group GM Technology at last! Alexa – Talking Wikipedia Maximising the micro pricing … Music happens New IT products of Ramco in the pipeline… CRS, a jewel among managers, is no more. Vibrant Gujarat Revving up the manufacturing sector Tribute – Manikam Ramaswami Solar, solar everywhere … Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated An informal presentation - analytical, forward locking... PPP mode for upgrading Corporation Hospitals The sea- saw battle continues... Cleaning Ganga – relocate tanneries and install electric crematoria Scientists urged to take up farmer-oriented research Towards speedy justice Build close rapport with business leaders Gas is the way forward The ‘Ayyo-yes’ is no more Tax agriculture Computation of GDP – conundrums continue Pharma – overdose of copying Parliament in paralysis... TGS- The king storyteller Land reclamation from sea appears cheaper! All eyes on Sankara Nethralaya Recognition to role of NBFCs.... When TN politicians can emulate Kerala's Making ‘my Amaravati’... Poor quality of university VCs There was flood of milk. Reason: no milk commissioner! Fortune 500 review Nuclear power at the nucleus Waning interest in public discussions… Banning booze... S V Raju – a ‘good’ true liberal Tribute – M V Murugappan Auto components surge… The balancing act The Swadeshi Trump Noble nonagenarians... B H Kothari - a tribute Polls and promises EVM is tamper-proof For whom the MIDS bell tolls? IAS invades NDDB... L&T: focus on infrastructure and more infrastructure… Come elections, come advertisements... Mu Sigma – is no more Haul over the coal Naidu will soon build a new Hyderabad Why this malaise in medical education? No engine for this car TN – agglomerate land holdings without alienating ownership London, London Narayan Eternal support for capitalisation of PS banks Road development slows down Robber barons everywhere R Sridhar steps down as CEO of Shriram Capital Should we change the official year? GNS - 100: our first subscriber Breaththrough in malaria control IPL type auction for VCs? Colour-Chem’s colourful KRVS A Grand Finale for SN’s MS centenary at the US… Airlines in India: cost and space A glass full of corruption For whom the bell tolls? to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Modi and the lady Quality education through the PPP mode Discoms deserve better… Engineering seats go abegging SoA @ 80 When the President was rendered homeless… Silver Years of Madras Musings A professional at the helm of IRDA... Strengthen the base... Delhi is distant… The Gulf aviation boom No Maha Koottani in TN... The rise and fall of Annamalai University An inexplicable neglect TN-leverage strength of BHEL, NLC... IPL - no surprise this scam Insurance companies bleeding, yet no decision on increasing FDI limit! Editor's Says Naidu’s return augurs well for Seemandhra Kinetic Karnataka Permanent secretariat for TN GIM Remembering Indira Sivasailam... Solar thermal shines… Welcome GST Focus on quality of power - its only around 170-180V Tatas moving out of urea production... TN accounts for the largest recruits by the IT sector Intellectual of rare qualities He saved millions from starvation... Cutting the nose to spite the face A C Muthiah – his munificent bequeaths to science Measuring roof tops in terms of KW/MW How Air-India loses customs... Funding the un-funded When online building permits work…. S Ramanathan – a versatile musician, musicologist Wise Presidents Revive development banks... Welcome changes that testify to Jayalalithaa’s return to health Sweeter prospects for sugar The why of tax incentives The ‘Jayanthi Tax.’ A welcome initiative by the judiciary Lalu’s envy, India’s pride Convulsions in The Hindu MHC should not return to its old indisciplined ways Where is Rajaji? Tribute Why land prices zoom in TN? Multi-faceted Venkat Delhi Chalo... Dr C Rangarajan returns to Chennai Diamond jubilee of Egmore Samskrt School Tihar, Puzhal not different from Parappana Agrahara Quality silica from Neyveli Where a state respects its litterateurs… When Ratan Tata visited SRM Paytm karo... EEC at the National Media Centre Adapt Vajpayee dinner diplomacy China invests in India Mersal magnified CIPET hqrs to stay at Guindy – for the present? Five star activism stalls development activity TIAM turns a full cycle Plummeting profits of PSBs Modi storms Silicon Valley The power-full Hindujas He continues the focus on social amelioration Padma Bhushan for A Ramakrishna Readers' Mail West Bengal: mindless malignancy When nations steal growth from one another… Rahman at CIC A more liberated TN… Increasing non co-operation of state leaders A rich pool of talent not utilised….
Editor's Notes

Protest protests

In a highly populated country like India, with a high degree of political consciousness, it has been possible to mobilise support for each and every cause.

Look at the experience of Tamil Nadu over the last year. The prolonged protests against the Kudankulam nuclear plant; groups of Muslims marching into the American Consulate in Chennai, protesting against a film by a little-known American; the agitation against screening of the film Viswaroopam; farmers’ protests against laying of the Kochi-Bengaluru gas pipeline in Tirupur; the clash between Pattali Makkal Katchi and Vidhuthalai Chiruthaigal Katchi on inter-caste marriages; opposition to the divestment of shares of Neyveli Lignite Corporation; the several protests against rights being denied to Sri Lankan Tamils by the Rajapakse government and protests against the visit of Sinhalese to Tamil Nadu. The list is only illustrative.  A recent report mentioned Tamil Nadu topping the list for such agitations thanks to the ability of the leaders to mobilise people, on specific issues.

Activists may justify such protests as an expression of democratic dissent. However, they cause widespread damage to the peace and tranquility of civil society. In several cases, like the Kudankulam agitation, they have huge economic implications. The production loss suffered by the nuclear power plant is valued at Rs 14.4 crore per day.

The three-year delay in commissioning the project exceeds the total cost of the project. The felicity with which parties opposed to the government join hands to voice protests make it difficult for the government to enforce law. There is need for a higher degree of tolerance and appreciation of the other point of view.

Policy change to step up investments

Every time I meet B Muthuraman (BM), Vice Chairman, Tata Steel, I get a sharp perspective on the global steel scene. An incurable optimist, BM also used to be quite upbeat on the prospects for India rapidly expanding its steel capacity. He passionately spearheaded Tata Steel’s expansion of  capacity almost four times in a short period and was part of the company’s illustrious team to help it emerge a global producer. He expanded his horizons when he served as President of CII during 2011-12.

I was, therefore, sad to note his  not being enthusiastic over the current state of affairs. He pointed to delays in getting clearances from the various fronts for new projects. The Odisha project of Tata Steel on which he has been working for close to a decade, is a case in point. Phase I of the 6 MT capacity plant is expected to be commissioned only in 2014.

The experience of the South Korean steel giant Posco Steel for its 12 MT capacity steel plant is worse. Opposition from the local population on land acquisition  has stalled this project with potential investment of over Rs 50,000 crore. This despite strong support from the state government.         There is finally news on the completion of the land acquisition process. For Odisha, a state very rich in minerals, such a project can promise jobs and handsome revenues. Yet, unfortunately, several precious years were lost on just the preliminaries. Posco steel offered to set up another 6 MT steel plant at Gadag district in Karnataka as a follow-up to the Global Investors Meet 2010 organised to solicit large FDI. The company deposited Rs 60 crore towards land acquisition. Three years later, Posco Steel was unable to acquire the needed land.

There was also the paralysis  in administration caused by the mining scam of Karnataka. While the administration was enthusiastic about the prospects for a handsome FDI flow through such large projects, the political leadership has not been able to tackle opposition from the locals. Posco with its bitter experience in Odisha, did not feel equal to facing another prolonged battle. The company has withdrawn its plan to set up its second steel plant in India.

The UPA II government, which has been announcing relaxations in its FDI, has failed miserably in tackling issues at the ground level. Several thousand crores of rupees of promised investments are not being made or are idle through severe policy deficiencies relating to issues like land acquisition and allocation of mines. Tata Steel abandoned a Rs 3000 crore titanium project in southern Tamil Nadu after a ten-year ordeal. Several such examples further depress the enthusiasm of investors to invest in large projects. They will increasingly prefer to look for acquisitions or mergers, which may not add much to investment flows.

I am particularly worried over the impact of such withdrawal of projects by multinationals like Posco and the Tatas in the southern states, which have long been considered progressive and investor-friendly. Over a year ago, S Mahalingam, the then CFO of TCS, mentioned the distinct waning of interest on the part of IT industry to invest in the state due to the very high cost of land. The great enthusiasm with which the southern states welcomed the SEZs has also vanished.

The governments at the Centre and the states would do well to resolve the issues of land acquisition, relief and rehabilitation in quick time.


Revamp agriculture before promising food security...

There have been wide criticism on the Food Security Ordinance, which appears to be a major platform for the Congress party for the forthcoming Lok Sabha elections. FSB requires 80 MT of foodgrains per annum and an outlay of around Rs 120,000 crore. In the light of the slow growth in food production, averaging less than three per cent per annum, procuring and distributing this huge volume of foodgrains will pose a serious challenge. Some 50 years after the setting up of the Food Corporation of India, the public distribution system has not been efficiently managed across the country. There is a problem of identification of the beneficiaries. Tamil Nadu chose the easy option of making the scheme universal: the state offers 20 kg of rice free of cost to all eligible ration-card holders in the state. Again, there are other states that offer rice or wheat at low prices. In this background, the offer of rice at Rs 3 per kg and wheat at Rs 2 per kg is not unique. Voters thus, may not find the new scheme any better.

There is the additional problem of procuring, storing and delivering this large volume, which is much higher  than at the present levels.

With the procurement drive sucking in bulk of the marketable surplus of farmers, there is also the danger of shortages in the open markets leading to higher prices. Even while Tamil Nadu’s experience provides a warning: rice is freely offered by the state, involving a huge annual subsidy of over Rs 4000 crore; but the open market price of rice of finer varieties have shot up in excess of Rs 50 per kg.

Sadly, the obvious solution, of  a massive step up in production, is not receiving the needed attention. With productivity levels so low, there is enormous scope for stepping up production. All it needs is a focus on the application of science, technology and management, along with efforts to agglomerate the small land holdings. The Punjab and Rajasthan governments’ approach of permitting lease of land for over 15 years, without alienating ownership needs to be replicated.

IE reiterates its suggestion of doubling the target of food production to 500 MT by 2020.

Need to focus on manufacturing

“25 per cent of world’s total export is made up of hi-tech capital goods. But India’s share in this is negligible,” said T C A Ranganathan, CMD, Export Import Bank of India.

Delivering a special address at the 177th Annual General Meeting of Madras Chamber of Commerce and Industry, Ranganathan stressed the importance of India emerging strong as a manufacturer of high quality engineering products. He suggested that industry should utilise the present slow down of the global economy to weed out inefficiencies and gear up manufacturing capacity.

I met the Exim Bank Chairman at his sprawling office at the World Trade Centre, Mumbai. For several years in the past, IE has been organising special seminars on trade issues in cooperation with Exim Bank. In these, several companies assisted by Exim Bank presented case studies on Exim Bank’s expertise and assistance.

These have been of value to the entrepreneurs of the region, especially from the medium and small scale sector. Ranganathan’s special knowledge on emerging economies in Africa and Asia will be of special interest.


Can’t compete? Copy.

I have been pointing to the impact both, desirable and otherwise, of Times of India (TOI) on the 136-year old The Hindu. The welcome features include a much better coverage of local issues, particularly those relating to the civic problems of Chennai metro. The recent series of articles in The Hindu under the title Who Cares, pointing to the neglect and encroachments of footpaths, is a welcome effort.

 The sustained campaign of TOI on the bizarre manner of operating auto-rickshaws in Chennai was another welcome effort. For years, auto-rickshaw drivers have been a law unto themselves, fleecing customers and defying law by refusing to charge by the meter. How coolly they had dispensed with the meters! From the usurious capitation fees charged by most private engineering and medical colleges to the plethora of civic issues, TOI has been reporting extensively on issues that impacted severely on the hapless citizens. Happily, the pressure from this peer and leader has influenced the The Hindu, which still accounts for a major share of English newspaper readership in the state.

In another area also one could see the copycat syndrome: of The Hindu massively expanding coverage of film news on the lines of TOI. Of course, TOI has no qualms in presenting a daily fare in its Chennai Times supplement, a portion of which, presumably,  is also paid news.

Press Council Chairman, Markandey Katju, should be looking askance at the full-page analysis in The  Hindu of the Hindi film Raanjhanaa subjecting it to a semantic thesis by several experts spread over a page. I would agree with Katju on the lopsided devotion of space even while a number of burning developmental  issues like a gas pipeline for the south suffers neglect.

I can well understand the impact of TOI - several top managers, including the editor and CEO - are ex-TOI executives.

Former Editor-in-Chief N Ram conceived a sort of ombudsman for the paper: initially ex-employees of The Hindu who had served the paper for decades,were appointed as the Readers’ Editor. The third incumbent, A S Panneerselvam, has better credentials as one from outside. As an active journalist, he seems to perform a greater role as a regular columnist liberally commenting on national and international news relating to media.

Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236