Metro Mania

Kolkatta, Delhi and now it was turn of Bangalore and Mumbai to go the Metro way. After the ostentatious inauguration of the Metro Project in Bangalore on 24th of June, the city was high in spirits. The city has greeted the decision with pomp and joy. The Bangalore Metro project is estimated to cost a whopping Rs. 6300 crores.

The metro project aims at reducing the congestion in the technological and software hub of the nation. The Bangalore metro will have a 33 km elevated and underground rail network with 32 stations for Phase I of the project. The work is scheduled to start in September in full swing and the first of the trains will run in three years.
Similarly, the Mumbai metro rail project is all set to lighten the government treasury by a gargantuan 19,500 crores. The first phase will provide a much needed connectivity between eastern and western suburbs of the city. The swanky and plush metro rails are set to make the city more accessible and congestion free.
In a developing country like ours where for 20 percent people live below the other alternatives must be thought upon. The Bus Rapid Transit system provides an excellent alternative to the expensive metro rails. Moreover the amount of work needed to be carried out, the risk of corrupt contractors and delay for the completion of the project is negated to a considerable extent. The Bus rapid transit has been successfully executed in about 35 countries of the world. The Gujarat government has taken a step ahead by not joining the metro race and promising Ahmedabad a world class BRTS system. This certainly seems the most viable and sensible option.
A comparison between BRTS and MRTS will indeed be justified here. BRT attempts to combine the advantages of a metro system (exclusive right-of-way to improve punctuality and frequency) with the advantages of a bus system (low construction and maintenance costs, does not require exclusive right-of-way for entire length). On a single route basis, the capacity of BRT and normal buses is smaller compared to metro trains. Typical buses are 40 feet long, articulated buses 60 feet. Metro trains can be 800 feet long. Metro Rail tends to provide a smoother ride and is known to attract significantly higher passenger numbers than road-based systems. An advantage of BRT, however, is that its maintenance facilities can be located anywhere, whereas for rail there must be a facility for each separate line. An important advantage of BRTS is its flexibility. Like in Ahmedabad, the system can first be implemented over a 10 km stretch. The time taken for the initial phase to be in operation is less than 2 years. In Ahmedabad the first phase is a 10 km stretch between Naroda and Thakkar Bappa Nagar which will be completed in 18 months, once the work commences.
The most important fact is the cost factor. The comparison between the costs of implementation between the two systems can be given by an illustrative example. The entire Delhi Metro rail project phase I had been for 64 km and cost around Rs. 10,500. That is a mammoth 165 crores a km, where as the 10 km stretch of BRT in Ahmedabad will cost around 75 crores. That comes to about 7.5 crores a km. That is a massive cost saving.
Higher costs of metros are acceptable for the kind of facilities and ease they provide, but only if they are benefiting and improving the current infrastructure woes. But building huge metro systems will certainly hinder the traffic in the city in a big way. Also DMRC expected around 15 lakh passengers to use the metro rails in 2005. But only 4.5 lakh passengers currently use it regularly.
All in all a cheap and a cost effective solution to the traffic problems in major cities of India can prevent the government from burdening its pockets.

SEZzling Reliance

On June 19th, the Chairman of Reliance Industries announced a Rs 250 billion mega deal buying 25000 acres of land from the Haryana Government. If this was not big enough, we are expecting two massive SEZs across 14,000 hectares in Navi Mumbai and Maha Mumbai in collaboration with the Mahrashtra Government.
An SEZ, or a Special Economic Zone, is like a foreign territory within a country. An SEZ is governed by a special set of rules to facilitate foreign direct investment for export-oriented production. SEZs are free trade zones and customs authorities do not supervise them.
These zones are typically marked by minimum bureaucracy, best infrastructure, generous tax holidays, unlimited duty free imports of raw, intermediate and final goods as well as capital goods. Basically, governments look to SEZs to overcome difficulties in bureaucracy and fiscal measures.

Advantage to units located in a SEZ

• 100 per cent FDI allowed through automatic approval
• Sales to hinterland of India permitted with incentives on achieving positive net foreign exchange
• Sub-contracting allowed to units in domestic tariff zone
• "Public utility" status to in-zone units preventing flash strikes by workers
• 15-year income-tax exemption on export profits
• Imports exempted from customs duty and local taxes
• Freedom to retain foreign exchange earnings

Incentives to developers and co-developers

• Generation, transmission and distribution of power in SEZ allowed
• Full freedom to allocate developed plots in SEZ on commercial basis
• Income-tax exemption for a block of any 10 years in 15 years at the option of the developer
• Exemption from service tax
• Developer can import without payment of duty for the development, operation and maintenance of SEZ

Incentives to developers in the state

• Developers exempt from stamp duty and registration fees
Developers can sell surplus electricity outside the SEZ zone; also permitted to distribute other utilities like water, gas, telecom within the zone
Developers to be declared the "Special Planning Authority" for planning, and the "Township Authority" for the development, management operations and maintenance of the SEZ

On the face value, the concept seems to be a great one. We can surely repeat the success story of rival global locations like Dubai's Jebel Ali, or Malaysia's Bandar Nusajaya Industrial Park, or even SEZs in China. But is the Government loosing more in lurch for more lucre? Only time will tell...

Aaj (tak) ke Star (news) !

Jurm, Vardat, Sansani, FIR, and the list goes on...No, not the names of forthcoming bollywood masala films, These are some of the programs telecasted every day on plethora of news channels we have at our bay. The television screens in India are witnessing a sea of change after deluge of news channels have hit the screens in last few years. The remote fights for daily soaps and sports channels might seem to be obsolete today. The (so called) news channels are giving a tough competition. With TRP ratings and viewer ship statistics ruling the roost, the electronic media is in overdrive to prove their mettle.
This entire week has been festive time for news channels like aajtak and starnews. Reason is certainly not the start of 2nd Soccer World Cup of the century. But it is glam girl Rakhi Sawant being kissed. Well, yes this has been the biggest news story in this week. The fact that some one is being kissed openly is so important for these news channels that they have not hesitated to telecast 30 minutes of prime time story to explain the intricacies of kissing and the relationship of the two persons. The titles given to the news stories are most appropriate for thriller films. “Yeh item Ashlil hai”, “Kissa kiss ka”, are just some of the examples. The scenes are repeated again and again. The words being used to describe story are even more objectionable and pejorative. The reporters aggravate the situation. The connotation of the questions being asked is only to show for their lewd mindsets. The every day dose of Bollywood film programs, showcasing the latest affairs is presented as if carrying out a great social service. Aajtak –Sabse Tez and Star News – Apko Rakhe Aage now should be read as Aajtak – Sabse Obscene and Star News – Apko Rakhe Andha. Sting operations, exclusive reports, breaking news, Flash news, just in etc. are all a part of tawdry and sleazy vocabulary used in an attempt to beguile the notions of the people of the nation. A small issue is blown out of proportion. Attempt to sensationalize the facts is leading to vilification of truth.
The mass media has long been conferred with the title of being the fourth estate on which the basic foundation of a nation and its people rest. It is based on the notion that that the media's function is to act as a guardian of the public interest and as a watchdog on the activities of government.
The reasons for debasement and perversion of the electronic media may be numerous. The stratospheric pressure to be the first, to give the inside story (read as glamorization), maintain the viewership, please the government and most importantly please the viewers. After all balancing itself on this multi-edged chopper is proving to be a tough job for the news channels. Hence leaning on the wall of glamorization seems to be the most viable option.
But where is the Media Responsibility. Besides commercial aspirations, Media has a primary duty of protecting the basic rights of the people and providing the viewers with authentic information. These all has been lost. Lost in midst of glamour, page3, celebrities and cheap publicity.
The very foundation of the media has been shaken. The necessary restraint needs to be exercised or in the absence of any countervailing forces, the media conglomerates have used the last few decades to create a cesspool of messages about licentiousness, murder, violence, short-sighted selfishness, drug use, alcohol use, tobacco use, immorality, glorification of greed and force, and much more that is objectionable and we have been given no choice but to live within smelling distance of it. The power lies with us. It is high time to use this power and help perverted minds and souls rediscover and redeem their lost conscientiousness.

DRUGS are not child's play

Thus read the slogan for the 2006 campaign to be launched on 26 June, the international Day against Drug Abuse and Illicit Trafficking by United Nations Office on Drugs and Crime.

The latest estimates indicate that 200 million people, or 5 per cent of the global population age 15-64, have consumed illicit drugs at least once in the last 12 months. But what about kids? What about children (aged 4 to 10)?

Although they are seldom the object of national and international studies, children of all ages are affected by drug abuse and illicit trafficking. Street children, working and living in dire conditions, are vulnerable, as are boys and girls whose family members are buying or selling illicit substances. At school, the situation may not be any better. Teenagers and peers may be pressuring kids to smoke cigarrettes and drink alcohol, at first, and then to try marijuana. Other types of drugs may follow.

The environment is really conducive for street kids to walk on the footsteps of Diego Maradona, Fardeen Khan and Rahul Mahajan now. There are a number of causes for the spurt in Drugs industry, if we may call it so. Actions need to be taken not only at the ends but also through out the supply chain. Realising the need for extensive data and information on the issue, the Ministry of Social Justice and Empowerment and the United Nations Office on Drugs and Crime published in 2004 one of the most comprehensive baseline studies, "The Extent, Pattern and Trends of Drug Abuse in India: National Survey". According to the report, apart from alcohol (62.46 million users), cannabis (8.75 million users), opiates such as heroin, opium, buprenorphine and propoxyphene (2.04 million users), and sedatives (0.29 million users) are the drugs most abused. The pie chart shows the distribution of the types of drugs consumed in terms of percentage. The NCB(Narcotics Control Bureau) of India is officially responsible for anti narcotic operations all over the country and it checks the spread of the contraband as well as the cultivation of drugs.

Looking at a broader picture cultivation of drugs is going on at large scale in Latin America and other African Nations. US has financed a number of projects in Columbia and even given Military aid to stop the cross border traficking of drugs. But as usual Venenzuela is a thorn in the plans. Some parts of Africa are major exporters of Drugs for Europe. As the Drug abuse heads its way to the east a decisive plan needs to be drawn to control if not eradicate the deadly disease completely.

Comprehensive development projects should be implemented which address the broader economic situation of farmers who cultivate drug crops due to rural poverty, lack of access to markets for legal products and unsuitable soil for many other crops. Also Law Enforcement project should be put into place so that common laws which address issues at large can be enacted. UNODC projects seek to limit the cultivation, production, trafficking and distribution of drugs.

Efficient and Effective Implementation is the need of the hour, if we are to stop more Rahul's cropping up in the system. This issue should be taken as a stern warning and not some adhoc instance. Lets see, if we can learn lessons from this and march forward to build a society in a "real sense".

The inevitable Ghost!

Call it ghost or spoof, but the chimera of reservation arrived with its sound foot steps and sky-high determination. The reservation imbroglio doesn’t seem to give the country a break. After a lot of protests and clamor, the union HRD minister Arjun Singh had his own way and the die was cast. He decided to have 27 % reservations for the OBCs in centralized institutions from next year. The bill for the same will be tabled in the monsoon session of the parliament. The decision has all the potential to prove it to be MADAL II.

But there has to be consensus on some things. But these things are often most difficult. Feeling of narrow mindedness is indeed one thing to which every Indian has opened doors at some point of time in his life. The real problem occurs when the feeling becomes deeply embedded in the very thinking of the person. The proposed hike in the reservations will also mean that institutions which are commensurable to jewels of crown India and are often known to be Centers of Excellence like IITs and IIMs will also be engulfed in waves of reservation. As far as the statistical knowledge of the concerned government and union HRD minister who represents the government is concerned, it is one thing that surprises many like me. Shallow and pathetic are too soft words that can be used. A recent interview by Karan Thapar for CNN-IBN of Mr. Arjun Singh showed how insensitive the policy making process in the country is. In answer to question which asked the reason for reservation, in spite of so many seats remaining vacant, the benighted minister says that he is a servant of parliament and he has to do whatever his government tells him to. This is where the protests are justified.
Whether reservation should be allowed or not is a million dollar question. I think it is a classical case of decision wrongly arrived rather than a wrong decision. The way in which this decision was taken exemplifies what is wrong with the policy making process in our country. A major decision affecting the career prospects of lakhs of students every year was taken without careful deliberation and transparent procedures that could have inspired some confidence. There has to be national debate on this. Otherwise how could we justify ourselves to be a democratic, sovereign republic?. The medicos took to the streets to protest against this fragile democracy. But all was falling on deaf ears. The calculation of Mr Arjun Singh is really very good when he masterminded the maneuver. State power can crush students and doctors. The overwhelming majority of Other Backward Classes (OBCs) would ensure an electoral sweep if polls were held. Having a look at statistics, the latest figures claim 52 percent of India’s population as being OBC. As per National Sample Survey (1999-2000)], it is 32%; the National Family Health Statistics (1998) estimates this at 29.8%. There are some 3743 castes included. There is also a creamy layer for these OBCs specially the YADAVAs and CHAMARs who would take a big chunk of the cake. The emphasis must be on the will to get the proper data required for taking such far-fetched and imposing decision.
The government has agreed to increase the number of seats in order to accommodate the reservation. As it is the cake is too small to share between such large amounts of people. Hence increase in the seats is inevitable. But is this the solution to the problem? This is left to the readers to decide.
The government spends just 2.8 billion rupees every year in primary education. More needs to be done on this front. The teacher absenteeism varies from 14% to 40% in some schools. The problem needs to be solved at the grassroots level. More money needs to be pumped in primary education.
Though comparing with US in this matter would not be wise, there are many lessons that could be learnt. The AA (Affirmative Action) which favors the African Americans is voluntary and not mandatory. But there have been success stories, most famous being the celebrated present US secretary of state Condoleeza Rice and her predecessor Colin Powel. Though many of the states have now abolished the AA as it is not mandatory, the social initiatives taken by the government make sure that African Americans do not loose out.
All in all to establish a level playing field and stability in the nation the grounds of reservation, requires compulsory primary education in standardized government run schools. Even if the cost of the implementation would mean that the budget goes awry, the results will be justified. Or else the democratization of the society is not justified.

The Salute says it all

When India's Defense Minister Pranab Mukherjee signed a MoU with Chinese counterpart General Cao Gangchuan, history was being rewritten. We were again trusting the same old neighbour who peeks inside the glass house and attacks when you are asleep. Was it a good move or should a sceptic raise his voice. Only time will tell.
But the big picture of Hindi-Chini bhai bhai should be put into perspective. Future planing should drive present actions. And so should it be. The relationship between the two countries has improved over the past years because of the rosy place they now occupy on the world map2. They are pinned down to be the twin engines of growth by our Union Commerce and Industry Minister Kamal Nath. But the Engines need to be synchronised and with India's trade with China soaring from well below $1Billion a decade ago to $18.7 Billion, now things are chugging along. For Global players, the question is no longer, 'India or China?' You have to be in both," says Meera Shankar, Indian Ambassador to Germany.

So, How do the two nations stack up.
SWOT: The Big Picture (Indian Perspective)

Strength
-India has a better regulatory Environment and stronger financial system.
-India with average age of 24 years against China's 32 years, is younger.
-India has better corporate governance and offers better returns on investments.
-India has better pool of English-speaking workers.
Strong services Industry.

Weakness
-China's GDP per Capita is now 2.2 times higher than India's in Dollar terms.
-China has moved ahead of India in all social indicators.
-China's strong physical infrastructure gives it a substantial cost advantage over India.
-Infrastructure has made china a more attractive destination for investors.

Opportunities
-India is promoting private and foreign investments in more sectors.
-Given the high levels of foreign investments already, China is likely to see its investment ratio decline.
-India is more advanced in institutional infrastructure.
-India's financial market is strong, while chinese banks are burdened with bad loans.

Threats
-The chinese economy is much more integrated with the world econmy through international trade and investment.
-Manufacturing sectors share in GDP in china is around 35%(India's 16%).
-China has good number of "Closet billionaires" who can bring much more to the already booming economy.
Courtesy by :- Outlook Business (5 June 2006)

Add to this, by 2020, India will be youngest country in the world with around 547 million people below the age of 25. Also, many global economists believe that china will grow old before it becomes rich. But growing and reaping is a different ball game altogether. Let's see what is more delicious. Serving Indian curries or Making Chinese noodles.