ANIL PANDE says that the Madhya Pradesh CM is trying to win on the development plank. But his critics say that the strategy, if not inclusive, can prove to be worthless
Last year, in October, when corporate honchos were
inking deals at the Indore Global Investors Summit, a substantial number of activists were protesting near the bust of Mahatma Gandhi at Regal Crossing, not far away from the investment summit. Among others, they were joined by activists from Narmada Bachao Andolan, and displaced farmers and tribals, who lost their land due to development projects in Neemach and Riwa districts. Needless to say, their feeble voices had no takers. The voices of the investors were amplified by the promised investments of Rs.120,000 crore.
The reason: in the last couple of years, development and good governance have emerged as vocal election planks. The days of ‘social engineering’ and ‘booth management’ have passed. Now, even people voting along caste lines expect a certain level of governance from their elected representatives. And, for a change, “governance” is determined on the basis of overall development. Poll pundits predict that as more youth participate in the electoral process, the development plank will continue to take a frontal position. At present, more than half of India’s population is constituted by people under-25 years.
In fact, development was one of the reasons why the BJP returned to power in Madhya Pradesh. Poor infrastructure did Digvijay Singh-led Congress government in. But now, the tables have turned. The BJP has completed four years in power. What’s more, development will once again be the frontal rhetoric in the forthcoming polls. Naturally, the BJP is worried. It wants to present a good report card to the voters. It wants development and the only way it can be done, says the BJP, is by inviting foreign capital.
That is why CM Shivraj Singh Chauhan is busy with his single agenda program. He has been successful in signing MoUs for projects worth more than Rs.225,000 crore in 2007 alone. Noted economist Alok Puranik finds foreign capital as the only way to initiate developmental projects in the state. Nevertheless, he wants the development to be inclusive. He predicts: “State governments focusing on investments in agriculture and manufacturing sectors have strong chances of returning back to power.”
To boost foreign investment, the CM organised a 2-day summit for global investors last year, where 102 MOUs were signed. Under these, foreign capital will flow in areas like power, IT, , food processing, education and health. As many as 550 investors from various countries participated in the summit. Although skeptics have expressed reservation on these proposed projects, works on 38 of them has begun.
Experts believe that if all these projects are implemented, Madhya Pradesh will break into the league of 5 most developed states in the next five years. Already, the state is pegged to become the ‘power capital’. Similarly, there are lofty plans to make the state an educational hub. New investments will boost per capita income in real terms and GDP. In fact, experts believe that the state’s revenue receipts will increase by 250%.
The sector that will benefit the most is power generation. Reliance Energy has inked a deal of Rs.50,000 crore. Jayant Mallaiya, Minister for Industries, believes that power generation is the key to development. He explains, “Our primary aim is to make Madhya Pradesh self-dependent in power. In fact, we believe that in the coming years, we will have surplus power with us. It will also boost the state’s economic development.”
Nevertheless, there is another face of development. Compared to power and food processing sectors, investments are meagre in agriculture. Most of the benefits from investments are likely to be wrested by the upper classes. Sunil, a noted social activist, says: “Foreign Capital will lead to destruction and not construction. Fertile land is being sold to industrialists at throwaway prices.” But CM Chauhan thinks otherwise. He assures that the benefits will trickle down to all classes. He adds, “The only way to eradicate poverty and bring prosperity is through investments. The agriculture sector is heavily burdened and it will be illogical to increase it any further. We need revenues. We are for balanced development. We will give equal priority to agriculture and manufacturing.”
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
Last year, in October, when corporate honchos were
inking deals at the Indore Global Investors Summit, a substantial number of activists were protesting near the bust of Mahatma Gandhi at Regal Crossing, not far away from the investment summit. Among others, they were joined by activists from Narmada Bachao Andolan, and displaced farmers and tribals, who lost their land due to development projects in Neemach and Riwa districts. Needless to say, their feeble voices had no takers. The voices of the investors were amplified by the promised investments of Rs.120,000 crore.The reason: in the last couple of years, development and good governance have emerged as vocal election planks. The days of ‘social engineering’ and ‘booth management’ have passed. Now, even people voting along caste lines expect a certain level of governance from their elected representatives. And, for a change, “governance” is determined on the basis of overall development. Poll pundits predict that as more youth participate in the electoral process, the development plank will continue to take a frontal position. At present, more than half of India’s population is constituted by people under-25 years.
In fact, development was one of the reasons why the BJP returned to power in Madhya Pradesh. Poor infrastructure did Digvijay Singh-led Congress government in. But now, the tables have turned. The BJP has completed four years in power. What’s more, development will once again be the frontal rhetoric in the forthcoming polls. Naturally, the BJP is worried. It wants to present a good report card to the voters. It wants development and the only way it can be done, says the BJP, is by inviting foreign capital.
That is why CM Shivraj Singh Chauhan is busy with his single agenda program. He has been successful in signing MoUs for projects worth more than Rs.225,000 crore in 2007 alone. Noted economist Alok Puranik finds foreign capital as the only way to initiate developmental projects in the state. Nevertheless, he wants the development to be inclusive. He predicts: “State governments focusing on investments in agriculture and manufacturing sectors have strong chances of returning back to power.”
To boost foreign investment, the CM organised a 2-day summit for global investors last year, where 102 MOUs were signed. Under these, foreign capital will flow in areas like power, IT, , food processing, education and health. As many as 550 investors from various countries participated in the summit. Although skeptics have expressed reservation on these proposed projects, works on 38 of them has begun.
Experts believe that if all these projects are implemented, Madhya Pradesh will break into the league of 5 most developed states in the next five years. Already, the state is pegged to become the ‘power capital’. Similarly, there are lofty plans to make the state an educational hub. New investments will boost per capita income in real terms and GDP. In fact, experts believe that the state’s revenue receipts will increase by 250%.
The sector that will benefit the most is power generation. Reliance Energy has inked a deal of Rs.50,000 crore. Jayant Mallaiya, Minister for Industries, believes that power generation is the key to development. He explains, “Our primary aim is to make Madhya Pradesh self-dependent in power. In fact, we believe that in the coming years, we will have surplus power with us. It will also boost the state’s economic development.”
Nevertheless, there is another face of development. Compared to power and food processing sectors, investments are meagre in agriculture. Most of the benefits from investments are likely to be wrested by the upper classes. Sunil, a noted social activist, says: “Foreign Capital will lead to destruction and not construction. Fertile land is being sold to industrialists at throwaway prices.” But CM Chauhan thinks otherwise. He assures that the benefits will trickle down to all classes. He adds, “The only way to eradicate poverty and bring prosperity is through investments. The agriculture sector is heavily burdened and it will be illogical to increase it any further. We need revenues. We are for balanced development. We will give equal priority to agriculture and manufacturing.”
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
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IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
Top Articles on IIPM:-
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The Hindu : Education Plus : Honour for IIPM
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administration. Nitish Kumar, who had been at helm in various ministries at the Central Government, finally realised his dream in 2005, when NDA finally emerged as the victorious combination in the November elections. Nitish had earlier got an opportunity to get ensconced on the CM’s chair in 2000, however, this lasted only for seven days, when Laloo Prasad Yadav, his erstwhile friend, snatched away the opportunity from him. Earlier in 2004 too the opportunity had eluded Nitish by a whisker, when the President’s rule was finally declared in the state. A civil engineer by profession, Nitish has image of honest politician. During the days of Emergency in the 1970s, following the call from Jai Prakash Narayan, Nitish had plunged himself into politics. From 1974-77, he remained in the forefront of student politics in Bihar. In 1974, he was jailed under the Maintenance of Internal Security Act (MISA).
for a multi-million dollar project in Gurgaon and Dubai’s Limitless Holdings for a gigantic $15-billion township near Bangalore, DLF, which posted robust revenues of Rs.32.5 billion for the quarter ending September 2007, has just diluted 49% equity stake in eight of its residential projects to Merrill Lynch & Brahma Investments. That’s well in sync with its strategic objective to focus on home business & of course, to grasp a whopping Rs.16.85 billion (interestingly, the exact value, which it had locked while acquiring a 38-acre land from DSCL recently). While the company is observing a silent mode on these moves, R. K. Gupta, MD, Taurus MF told B&E, “DLF is now leveraging its huge land bank across top-tier growth cities for equity sharing. Definitely a move that will not only add to its growth story but will also mitigate the risk involved with the projects.”
that “there are huge inequities in the world. Even better-off citizens in most of the developing world face worse opportunities than the poor in rich countries. The fact that the country of birth is a key determinant of people’s opportunities runs counter to our view of equity.” Whatever the WB thinks of equity, it is at best only half-true. A close scrutiny will clearly exemplify that inequality has helped less developed nations to achieve economic growth and prosperity. Had it not been for the fact of inequality of income and cost of living, none of the billions of dollars of investments that has been pouring in China and India for over a decade now would have come. It is because of the relative backwardness and the consequent low cost that inspired the Western world to outsource most of its IT related work and production to India. It not only has helped India climb up the ladder faster than otherwise but also allowed it the leeway of time and energy to learn from such technology and business models to develop its own version of multinational companies. All this, thanks to the sheer inequality that existed, and is still existing between the First and the Third World. After all, even water doesn’t flow from a waterfall unless there’s difference in altitude. Hail inequality at times.
laptops have revolutionised the concept of working from home as well as working on the move? Year wise, the growth that the Indian PC market is experiencing is tremendous – across all form factors in the IT industry, fuelled by robust demand from large enterprise, SMBs, government & education segments. “2008 will see more escalation in the demand for notebooks”, avers Rajan Anandan, VP & GM, Dell India.
10% of the industry’s retail profits are realised from just 10 big cities across the country. “There are less than 1,500 offices of all AMCs put together while SBI alone has over 10,000 branches. Moreover, with only around 60,000 ARN holders (persons authorised to sell MF Units) as compared to 20 lakh insurance agents, the situation is really poor,” agrees Sudip Bandopadhyay, CEO, Reliance Money. No doubt, the margins are less from rural business but it’s indeed one area from where the growth would be flowing in. As such the industry now needs to focus on increasing the touch points with the customers in rural areas along with Tier-II and Tier-III cities in order to tap in the real growth. Nevertheless, with mounting competition, tapping the untouched avenues is now a matter of compulsion rather than choice! The industry experts too believe that until fund houses realise this, it’s very hard for them to sustain in the long run. And why not? With more and more players biting into the same pie of urban investors, the industry definitely seems heading towards a deadly war zone.
are out there buying assets and brands in the name of M&As. As compared to even the first two months of 2008, the price per deal during March-April 2008 has fallen by a heavenly 11.18% to touch $46.40 million with even the total deal count falling by a huge 22.53% to just 141 (as per Grant Thornton’s DealTracker) – a clear antithesis of inflation in recent times.
platform through which the company can sell its higher segment cars. Maruti definitely has the capability as far as technology is concerned; perception is perhaps the only impediment. To Maruti’s huge credit, the SX4 brand’s success is part of a branding which has been distinct from the company’s prior efforts. The value packed sedan mesmerised the market with its unique masculinity, features and value; being a Maruti was just an add-on and not the USP. If I were to utilise the same argument, a brilliant product like the Grand Vitara will be justified better with a newer, more upmarket brand. Namita of ICMR adds, “Even future products like the updated 3.6L V6 XL7, Forenza & the concept Kizashi will need specific branding exercises, which the standard Maruti platform definitely cannot provide. Suzuki’s technology more than deserves a newer upmarket, zippy brand for higher segment products; at least for the Indian market.” 
In a scenario where over 50% of the population is estimated to be “under 25”, youth is god, revered, hymned, celebrated, worshipped and generally perceived as the hottest target group for marketers. What about – er – oldies... the fifty-plus crowd? Nah, chadde, mock the greedy hawkers of products and services dismissively and emphasise that zooming-in on the low hanging fruit called ‘youth’ – symbolising aspiration, want and purchasing power – is where its at. The oldies, they claim, are a boring, washed-up and irrelevant lot, without excitement, adventurous spirit to experiment or desire to live the good life. They are also, usually, broke like hell, which makes them a totally un-sexy constituency!
pesky similii. And why not! Wasn’t Emami Group Ltd in the business of making people lovelier and ‘fairer’? Metaphorically (I just had to quench this pest of an argument that I had churned up an evening before), how ‘fair’ could Emami be in its own HR out‘look’ and structure? How ‘fair’ was it towards its people? How ‘fair’ was it is in managing its human resources? Was Fayol in their HR personnel’s minds while the sales personnel were making unstoppable efforts to remove fatigue, headache, tension, sleeplessness (through their famed Navratna Oil)? Were they able to remove the same afflictions in their own employees as successfully? I knew my cup of truant questions were running over (and could have cost me the interview itself), but Ratna Sinha, Head, HR, Emami Group Ltd, was surprisingly totally supportive in answering all of them...and much more.
estate player, Devasthali, ethnic wear brand, Tantra, and Aureole Inspecs, an eye wear brand to name a few. “We’ve a limited portfolio of non-Hyundai clients and those are to provide our people with certain amount of creative variety,” avers Srivastava. Working on the same category over a period of time becomes monotonous. This gives creative people a chance to flex their creative muscles in other directions and get more experience in other sectors. He further adds, “For us non-Hyundai business is not for revenues. We’re looking at it purely from a creative & strategic satisfaction point of view.”