Life without mobile

Till the other day, I didn’t know that life without mobile is so beautiful. It has happened one day. My mobile battery was totally discharged and cell got switched off. That morning, it was so pleasant and stress less and I didn’t understand why. When I saw my mobile later, I understood the reason for this serenity. It was off. I didn’t know that life with out it will be so serene and peaceful. Therefore, I decide to switch it off everyday, in the morning, till I reach my office.

By Polls - AP, a patient in ICU needs procrastination or action?

Politics and economics are inseparable and they are interwoven. We can not pinpoint where the line, which divides both, will exactly lie. So are the results of AP by polls. Polls indicate passions are burning. It has both economic and political ramifications. It is a clear Message to all those who are concerned. Clear verdict. It is straight and loud to those, who are sitting at the helm. A simple message, we want Telengana.

What we need to do is to face the unavoidable. Now the division, I feel, is unavoidable unless situation drastically changes. In other words, passage of time shall douse these fires. May be or may be not. In the given scenario, action is much needed than procrastination to put out these fires. A patient in ICU needs immediate and proper attention. So is the situation in AP. It is already in critical condition and needs immediate and proper attention and action.

The Investors will primarily look for stability and security. Naturally, when such a big decision is taken and separation is being made, normal life does get affected. We can not expect things to be normal and business as usual.

But policy makers and politicians must ensure that the talk of division shall not become poisonous. As it is, the situation in Andhra Pradesh and especially in Hyderabad is deteriorating. No investments are forth coming and existing players are in two minds whether to stay or to shift to a safer place. The procrastination shall not cuase such an irreparable damage and situation shall not deteriorate to such a level wherein nothing can be salvaged.

I can clearly see, the economic situation of AP is already in ICU. It needs intensive care to make it normal. The only remedy, as it appears today, is to precipitate the action. Slightest procrastination on the part of politicians, one can draw parallels to an unattended patient by a doctor at the ICU.

Silver lining

It is a general economic theory that post separation or post war situation throws up lot of opportunities. Investments will come back and come back in big way provided the division is smooth and the peace reigns. To see that day, we need to act now. What happens otherwise? Let’s pray the god.

Of late, other things have kept me busy. Added to this, there was no significant activity around, therefore, I was mum for some time.

Finally when I saw RBI is in for increase of rates, I felt I shall share my feelings.

Increase in interest rates – A Tuglaq’s move

It is natural that once inflation is high, it reflects both in gold as well as in interest rates.

Gold is an antidote and works against inflation. People park money in gold as it constantly negates inflation and abnormally increases in value during inflation.

The Interest rates will be hiked to increase deposit growth rate. The emphasis will be on savings. Objective is to take money out of the system and put it in the bank. This reduces availability of money in the system and value for money increases and it drives prices down and consequently inflation will also cool down.

This is economics and it is only one side of the coin. But situations will not be similar to what they describe in the text books.

What we are facing here is a peculiar situation wherein both inflation as well as industrial slow down is present. To counter industrial slow down and create jobs, we need to push production up. So that supplies will increase. More and more supplies bring prices and inflation down. In order to do this, Industry needs cheaper credit. If interest rates are increased, there will be a direct threat to industrial growth. That means lower interest rates.

I am quite surprised when I saw what this great man has done. Generally a priest does that. He simply followed text book and has left everything to act of god to rectify the situation. Most of the banks are reluctant to implement. This transitional failure will surely create confusion and will never achieve the purpose.

RBI governor’s statement on this move

I am eagerly waiting for rains. (Hoping rains will increase food supplies and production and these supplies will bring down prices and inflation)

His statement Earlier on slow down:

2009 is tough and 2010 will be tougher

A policy maker shall make policy decisions keeping prevailing situation and economic conditions in view. A policy maker work starts by assessing situation and not by christening what situation is.

Metro

As expected Metro is making news. We need to see where will it lead. For the time being I understand it will be purely a railway project not a real estate one. It will take some more time to see whether speculation ghost will raise its ugly head once again

Rupee Symbol – We too

It is a significant development. Much awaited results are out. Mumbai based IITian’s design was approved.

In the international arena, it will give us a chance to stand along with few others. It, in fact, symbolises our policymaker’s vision. Cause it will give us a chance, apart from other benefits, to brand our symbol and promote it in the international financial circle. It will increase trading in our currency and it will also have positive bearing on investment inflows. Domestically, the promotions to familiarize the symbol will be on. With this we have joined in elite club of those countries which have symbol.

The Unicode process has begun; soon this symbol will appear on our mobiles, laptops, conversion tables etc subject to some approvals from Unicode consortium of which India is the member.

The Indian government has categorically declared that it will not print symbol on our currency

Symbol, Plastic currency and what is next?

Recently RBI has called for global tenders to print our currency in plastic. The plastic currency, compared to paper currency, will endure longer and is difficult to counterfeit. Going by pace, one wonders after, symbol and currency, what is next?

The Andhra Pradesh Housing Board (Amendment) Bill, 2010 – Money to Burn

The bill is to facilitate the sale of assets of housing board or to get into Public Private Partnership for the development of lands of Housing Board. The AP Government has failed to introduce the Bill. It is blocked. The opposition was successful. This happens whenever a new radical bill is introduced. Next time, it will silently sail through. The Bill, had it been passed, would have generated money for government to burn.

Now the question is, is it wise to sell assets? Purpose, is the only justification for this kind of act. If assets are sold for genuine reasons, that is to say, for reinvestment or for creation of another asset, then, we can deduce that the sale is justified. But, take a look at our expenditure. You will find that substantial part of our expenditure is in the nature of revenue and going into unproductive areas. It is not creating any assets leave alone productive. Means, we are selling assets to run our routine. One wonders, what happens once you exhaust all your assets.

I presumed assembly is meant for debate – Jaya Prakash Narayan. (Hinting sarcastically that assembly proceedings lack discussion)

Again our self proclaimed intellectual and constant craver, has tried to distinguish himself from other legislatures, by declaring that his ideal world is different and he is totally dissatisfied. The best way to express that dissatisfaction is to stay way from it than sulking and getting suffocated like this. If you are not satisfied with the proceedings, please stay away from it and nobody, in this democracy stops any one from resigning from any post. Will he resign? I say, he wont, cause constant cravers need something to hang on, cause, they want to crave, constantly.

Entry of Foreign Universities – a classic case for Management of Change

Be aware of two room universities – Chukka Ramaiah, popularly known as IIT Ramaiah is an Indian educationist and MLC of Andhra Pradesh, commented, on his return from US, about entry of two room foreign universities

We are all aware that there is a policy shift towards entry of Foreign Universities (FUs). Now FUs are permitted to impart education in India.

The debate is on. Whether it is good? When whole world is praising our intellectuals and our academic system, do we require it? What is lacking in our education system that necessitates our doors to be kept open in the name of globalization? Will it not kill our much prided heritage and culture upon which our unity in diversity rests?

Whenever there is major change in policy, there will be questions and answers. Whether for good or bad, Indian Government took its first cautious step towards it. We call it cautious, because so many strings are attached to it. FUs shall keep huge corpus fund and the operations shall be on strictly non profit basis. Further, non repatriation clause is made applicable to it. That means, they can not take money back to the host country.

So far so good, What is the next step?

Is this first step, is part of the process that is aimed at management of change to differ, divert and dilute the genuine concerns that are expressed in some quarters. Fear, based on past experience and the arm twisting tactics of Foreign players, there is every possibility, that these strings will be silently diluted with out causing much attention. This is latent.

Apart from this, the concerns expressed by Sri IIT Ramaiah, Learned Scholar, that there is a danger that two room universities might step in.

Apart from all this, once the fine print is out, there will be attempts by the intellects, to take advantage of the gray areas that might lurk under the regulations.

By looking at all this, as well as the huge investments that are required by FUs, the initial moves, are they plain and does not require much reading or is it another deliberate attempt to manage change. We need to wait and mmm……………………. see

Andhra Pradesh Industrial Policy - Focus is on SMEs

As expected much awaited Industrial policy 2010-2015 is out. Naturally Government has projected an ambitious figure of Rs 15,000 Crores as investments to flow in annually. Since, SMEs is now a thrust area nationa wide , Whole state policy, as it appears, is hovering around SMEs. IT sector, where we AP is now in fourth place, received enough attention. Aim is to climb up in this rating. In this direction, government wants to constitute a Business Advisory Committee under the Chairmanship of Honble CM. Lets hope it will have best of best brains from the Industry and not to become another political rehabilitation centre filled with sympathizers. Recognition of Tier II and Tier III cities is a very significant development. Increased focus on manufacturing sector, if implemented as planned, would push growth rate to 17% form 12% and generation of employment which is estimated aroung 500000 new jobs in various sectors

Over all, we can say that it is positive and good. It shows that State Government means business.

But what is needed further, apart from having a sound policy, what we need to have, for stable Industrial growth and Investment flows, a congenial industrial environment. It is time now, our political leaders shall question themselves, can they carry their respective agendas with out effecting core economic factors which are vital for State Industrial Growth. Irrespective of their political stand, can they impartially support and give unbiased acceptance to what is good to the state and create an atmosphere that is conducive for growth and investments. Lets hope for the best

Policy document – where is it

We shall be happy, our government website promptly displayed AP state policy. Funny thing is, if we click that link for policy document, a message gets displayed or an press realease not the document