Some moments in history happen and others are planned & created, like this one by the house of TATAs. While the leader RATANji hogs the limelight as he truly deserves, this moment is the culmination of the efforts of the numerous dedicated engineers and workers, both with in the house of TATAs and those who over the years have reposed faith and extended unflinching support to the effort.
By any standards, an investment bet of Rs.1700 crores on an innovative product is no small bet. It again goes to the credit of the TATAs indomitable spirit, who believe in their convictions and to their social commitment of envisioning a world where an ordinary Indian need not drive in two wheeler with his two children! It was interesting to read about a few of the the very difficult choices they had to make in the process of finally deciding on the various components of the nano, which they did, to reach this stage of launching the product and honoring their promise. With such display of unflinching commitment of the team, the stake holders in this mega enterprise have reason to be proud of their association and ownership at this moment.
The launch of nano signifies amongst others, the coming of age of our design capability in the domain of the so called western world. That this has happened in India signifies that there is more to come. It also means that others can aspire to emulate and follow the foot steps of Narayan Murthy, Ratan Tata and the like. The government should recognize the revolutionary nature of this launch and support the product by way of rationalizing the tax structure and providing incentives for early recovery of the investments committed by the TATA house. That this is truly a people's care and caters to the basic modern day needs of the common man has its own political significance and the day is not too far when the politicians would catch it for credit irrespecive of their idelogies.
TATAs are special and we as Indians are truly proud of this Indian Multinational, who also make cars!!
KARNATAKA FIASCO
The Karnataka coalition drama has provided an opportunity to the administration, the protectors of the constitution and the well wishers of the Indian constitution to re look at the issues that affect the Indian polity today.
Given the increasingly fractured verdict which the Parliamentary system of selecting the representative is throwing up, coupled with voter''s apathy, it is time constitutional experts got their act together to preserve the intent and main aim of the provisions in the constitution regarding constitution of the governing machinery; namely provide stable governance.
Citing judgments of decade old cases in politics, is akin to citing the Red Herring to decide the course of next action. We need to look at the political realities of the day and take decisive actions to provide the bench mark for the future, lest future generations are compelled to live by what our fore fathers decided.
If the current combination of BJP - JD(S) is allowed to form the government, it will set a bad precedent. They have gained power at the first instant based on numbers, but with the solemn promise that they will provide stable governance. Now that they have failed, the Executive must exercise his powers to reject this alliance which has failed to stick to its original commitment made to the people and the constitutional authority in words (!) and spirit.
If the opportunistic alliance is once again allowed to assume power, be that as it may be for a few weeks, it will embolden those elements who think that merely winning a seat to the legislative assembly, guarantees them power and opens up many revenue streams. It would also encourage further splitting of the Parties and render the coalition exercise a mere number game. Coalition politics by intent and practice should not be degraded to a number game as it is being made out to be.
This opportunity shall be exploited by the administration and the judiciary to spell out clearly what is the form of Coalition government, that is acceptable to provide a stable governance. Opportunistic alliances can not be handed over power just because a judgment says that it should be decided by the numbers.
Given the increasingly fractured verdict which the Parliamentary system of selecting the representative is throwing up, coupled with voter''s apathy, it is time constitutional experts got their act together to preserve the intent and main aim of the provisions in the constitution regarding constitution of the governing machinery; namely provide stable governance.
Citing judgments of decade old cases in politics, is akin to citing the Red Herring to decide the course of next action. We need to look at the political realities of the day and take decisive actions to provide the bench mark for the future, lest future generations are compelled to live by what our fore fathers decided.
If the current combination of BJP - JD(S) is allowed to form the government, it will set a bad precedent. They have gained power at the first instant based on numbers, but with the solemn promise that they will provide stable governance. Now that they have failed, the Executive must exercise his powers to reject this alliance which has failed to stick to its original commitment made to the people and the constitutional authority in words (!) and spirit.
If the opportunistic alliance is once again allowed to assume power, be that as it may be for a few weeks, it will embolden those elements who think that merely winning a seat to the legislative assembly, guarantees them power and opens up many revenue streams. It would also encourage further splitting of the Parties and render the coalition exercise a mere number game. Coalition politics by intent and practice should not be degraded to a number game as it is being made out to be.
This opportunity shall be exploited by the administration and the judiciary to spell out clearly what is the form of Coalition government, that is acceptable to provide a stable governance. Opportunistic alliances can not be handed over power just because a judgment says that it should be decided by the numbers.
Sub Prime Mortage Fall out
We are reading different reports of the impact of the US Sub Prime Mortgage fall out on developing markets and emerging economies. The reports unfortunately have to rely on information which are handed over to you by the administrations and regulators, who have the powers to remain opaque.
Given the levels of visibility reached through satellite imaging techniques such as Google Earth, it is surprising that in large financial transactions running to billions of dollars, opacity stares at you. The crisis which is purportedly created by a few banks, seem to have had regulatory sanction, as you find the Regulators coming out openly in support of them, with the public fund. The Regulator in UK has come out openly to save a bank and the US Fed is reportedly injecting billions to allow some of the entrenched entities to move out in a more orderly manner. In a mature functioning capital market, it is indeed strange that we are seeing certain Regulatory actions, which can be clearly interpreted to be in support of defined entities who have abused the rules.
In such circumstances, given the opacity of the transactions, it is but natural that one would come to the logical conclusion that the excesses committed by these entities, have been enjoying the Regulators tacit support all along. No wonder, RBI governor in his inimitable manner has warned of surprises and indicated recently his resolve to take "unconventional" actions as necessary.
All these point to more major events in the immediate future. The tremors of Sub Prime Mortgage, are still traveling through the depths of integrated global economy sea. One is not sure where it is heading and which is the shore it is going to hit. There are no sensors to track this "Tsunami"(financial) and predict land fall.
Planners may be warned to plan for the landing and put in place emergency mechanisms to evacuate and provide "First Aid"
Given the levels of visibility reached through satellite imaging techniques such as Google Earth, it is surprising that in large financial transactions running to billions of dollars, opacity stares at you. The crisis which is purportedly created by a few banks, seem to have had regulatory sanction, as you find the Regulators coming out openly in support of them, with the public fund. The Regulator in UK has come out openly to save a bank and the US Fed is reportedly injecting billions to allow some of the entrenched entities to move out in a more orderly manner. In a mature functioning capital market, it is indeed strange that we are seeing certain Regulatory actions, which can be clearly interpreted to be in support of defined entities who have abused the rules.
In such circumstances, given the opacity of the transactions, it is but natural that one would come to the logical conclusion that the excesses committed by these entities, have been enjoying the Regulators tacit support all along. No wonder, RBI governor in his inimitable manner has warned of surprises and indicated recently his resolve to take "unconventional" actions as necessary.
All these point to more major events in the immediate future. The tremors of Sub Prime Mortgage, are still traveling through the depths of integrated global economy sea. One is not sure where it is heading and which is the shore it is going to hit. There are no sensors to track this "Tsunami"(financial) and predict land fall.
Planners may be warned to plan for the landing and put in place emergency mechanisms to evacuate and provide "First Aid"
TNEB through the Years
Tamilnadu Electricity Board (TNEB) , from the days of independence has always been at the fore front of managing the state's Power requirements fairly well. Especially so, when compared with like enabled boards and organizations, who also operate in similar regulatory environment. There are interesting lessons available in the recent initiatives of the board for those who are propagating the PPP, Public Private Participatory model.
Till the late eighties, the entire investment plans for the Power network, be it Generation or Transmission & Distribution (T&D) was fully managed by the state entity. Given the socialistic approach then practiced that limited the return to just 6% on your investment, the planners, realised the need to bring in robust billing and collection systems. This ensured that billing is done for the services used and what is billed is collected. Default in payment resulted in punitive action of disconnection, which has been practiced over the years. This helped build a good culture, where the consumers built a healthy habit of paying electricity bills. This is similar to the situation where no one questions, why one should buy a ticket when you board a bus.
Having built a system for strong revenue collection, the board could go about the task of implementing capacity additions to the generation and distribution network. Here again the planners understanding of the requirements and deciding on technical merits is there for all to appreciate.
There are Hydel stations, Thermal (coal & lignite) based stations, Nuclear stations, eco friendly Wind mills and sugar mills based co generation plants. These are spread across the geography of the state to assist in overall development of the state. The selection of Mettur which is land locked thermal station based on Indian coal is a case in point. There are coastal plants as well, which are not hampered by the conditions of local availability of coal. In the early seventies, it would have been unthinkable for any one to plan for import of coal given the impression of abundant availability of local coal and the controlled Export - import regime then prevailing.
Similarly the T & D network is built to deliver the generated power across the state. There are no un electrified villages in the state and there are not many instances of power connection being denied for protracted periods of time in the state.
During the Enron era of the nineties, the state also jumped in to the band wagon of liquid fuel power stations. The move was mainly due to the collective hype around these stations and Tamilnadu was not wanting to be left behind. Like other boards, TNEB also suffered. But here again, the board has distinguished itself from others by at least partly putting to use the majority of these plants.
Around this time the concept of Private enterprise building Utility assets was gaining momentum and TNEB adopted it. The main reason being the perceived in capability of the state government to fund capital expenditure of the board. But the board realised that it was being asked to explain their business model to the investor who was looking to maximise the returns on their investment with minimum risk. But the entire exercise has left the board poorer, but richer by experience.
When the signs of economic growth was visible in the mid 2000 and the board started seeing significant demand growth (over 14% in some pockets), they decided to look at alternate models for finding the investment. They have gone about the task in a very commendable manner and have also prepared a scheme for other states to emulate. They have encouraged Wind Power, reactivated dormant schemes and have signed joint development scheme with central organizations. Given the experience of the nineties, the board has this time placed its bets on Public sector entities rather than private enterprises. Plans are in place to double the installed generation capacity through these efforts in the next 8 years.
One awaits a similar approach to increase investments in the T & D Segment. New models, be it the franchise model of PPP (Public Private Partnership) or transfer of assets to joint venture, have to be put in place quickly to fully deliver the large quantum of Power that will be generated in the state. Otherwise one runs the risk of exporting this power to neighbouring states to earn short term profits.
Till the late eighties, the entire investment plans for the Power network, be it Generation or Transmission & Distribution (T&D) was fully managed by the state entity. Given the socialistic approach then practiced that limited the return to just 6% on your investment, the planners, realised the need to bring in robust billing and collection systems. This ensured that billing is done for the services used and what is billed is collected. Default in payment resulted in punitive action of disconnection, which has been practiced over the years. This helped build a good culture, where the consumers built a healthy habit of paying electricity bills. This is similar to the situation where no one questions, why one should buy a ticket when you board a bus.
Having built a system for strong revenue collection, the board could go about the task of implementing capacity additions to the generation and distribution network. Here again the planners understanding of the requirements and deciding on technical merits is there for all to appreciate.
There are Hydel stations, Thermal (coal & lignite) based stations, Nuclear stations, eco friendly Wind mills and sugar mills based co generation plants. These are spread across the geography of the state to assist in overall development of the state. The selection of Mettur which is land locked thermal station based on Indian coal is a case in point. There are coastal plants as well, which are not hampered by the conditions of local availability of coal. In the early seventies, it would have been unthinkable for any one to plan for import of coal given the impression of abundant availability of local coal and the controlled Export - import regime then prevailing.
Similarly the T & D network is built to deliver the generated power across the state. There are no un electrified villages in the state and there are not many instances of power connection being denied for protracted periods of time in the state.
During the Enron era of the nineties, the state also jumped in to the band wagon of liquid fuel power stations. The move was mainly due to the collective hype around these stations and Tamilnadu was not wanting to be left behind. Like other boards, TNEB also suffered. But here again, the board has distinguished itself from others by at least partly putting to use the majority of these plants.
Around this time the concept of Private enterprise building Utility assets was gaining momentum and TNEB adopted it. The main reason being the perceived in capability of the state government to fund capital expenditure of the board. But the board realised that it was being asked to explain their business model to the investor who was looking to maximise the returns on their investment with minimum risk. But the entire exercise has left the board poorer, but richer by experience.
When the signs of economic growth was visible in the mid 2000 and the board started seeing significant demand growth (over 14% in some pockets), they decided to look at alternate models for finding the investment. They have gone about the task in a very commendable manner and have also prepared a scheme for other states to emulate. They have encouraged Wind Power, reactivated dormant schemes and have signed joint development scheme with central organizations. Given the experience of the nineties, the board has this time placed its bets on Public sector entities rather than private enterprises. Plans are in place to double the installed generation capacity through these efforts in the next 8 years.
One awaits a similar approach to increase investments in the T & D Segment. New models, be it the franchise model of PPP (Public Private Partnership) or transfer of assets to joint venture, have to be put in place quickly to fully deliver the large quantum of Power that will be generated in the state. Otherwise one runs the risk of exporting this power to neighbouring states to earn short term profits.
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