Editor’s Desk


Author has worked with a leading industrial development & financial institution at a senior management position and has more than 38 years experience in industrial finance, project appraisal & implementation, resource planning, govt. approvals, loan recovery and legal aspects. He can be contacted for consultancy on matters concerning finance, project formulation, debt settlement and other issues with banks and financial institutions.

Author’s Column:

Cluster Pulse to suggest solutions for Competitiveness for four industry clusters

Micro, small & medium enterprises (MSME‘s) contribute 40 per cent to Indian economy and provides large employment in the country but suffer from many challenges. Small Industries Development Bank of India(SIDBI) has awarded a project to CLUSTER PULSE, an Ahemdabad based economic development agency,  to suggest solutions for competitiveness in five sectoral clusters in the country.

They are: Jammu & Kashmir Tourism Cluster (Jammu, Kashmir & Ladakh), Alleppey (Kerala) Coir floor covering cluster, Dehradun pharmaceutical cluster, Panipat carpet cluster and the Indore pharmaceutical cluster.

The objective of this project is to carry out detailed analysis in the five clusters with a view to identify non- financial gaps and suggest appropriate measures to achieve the desired competitiveness.  The major focus will be on non-financial issues, infrastructure and marketing aspects.

The project includes Analysis Of Business Operations (AOBO) of cluster, SWOT (Strengths, Weaknesses, opportunities and threats) analysis, vision for the cluster (both short term and long term), present pain points and actionable points on these.

The project will also include infrastructure related issues which are affecting the growth of the cluster. They include spatial issues — basic cluster infrastructure (roads, industrial space, power, gas), common facility centre, marketing infrastructure, water and effluent treatment infrastructure.

It will also look at cloud / IT services infrastructure, Government linkages including Public Private Partnership (PPP), environmental degradation related issues, renewable energy sources, technical requirements, & international market linkages.


Banking Transaction Tax Suggested by Yoga Guru Sh. Ram Dev

In his Press Conference at Talkatora Stadium, Delhi recently Ram Dev suggested abolition of all present taxes and their replacement with a single Banking Transaction Tax. Sounds great but lacks practicality keeping in view the complexities of Indian economy. What Ram Dev has forgotten is the magnitude of parallel economy of black money where no banking transaction takes place. It is this segment of Indian economy which jeopardizes the effectiveness of major economic policy decisions. All economic statistics lose relevance when a huge volume of production, services and money supply are not accounted for.  A major portion of sales consideration in property transactions comprises of black money. Who are the custodians of black money? We all know the truth. These people will never implement a system which aims at eradicating the evil of black  money. Even in countries where the menace is quite small, such taxation system has not been attempted for obvious reasons.

Business sectors which showed good YOY growth in 2013

Present economic scenario and Indian and global market conditions are beneficial for some business sectors, however, some sectors are not doing well and struggling to sustain. The sectors which have shown considerable YOY growth are the following:

Technological Sector-Software, E-commerce, Gaming, Internet.

Telecommunication Sector-Mobile & Fixed-line telecommunication.

Basic Material Sector-Paper & Specialty Chemicals.

Health Care Sector-Biotech products, Drugs & Pharmaceuticals, medical suppliers.

Consumer Goods Sector-Consumer Durables, Home Construction, Distilleries.

Consumer Services Sector-Airlines, Entertainment, Home improvement Goods, Media.

Industrial Sector-Building materials & fixtures, Training & Employment, Support Services, Packaging Industry.

Grabbing/hoarding land  offers better opportunity for stacking black money than Swiss banks

Politicians, Business Houses, bureaucrats have lately awakened to the potential of land/property for parking black money, hence the spate of  frauds, scams, grabs involving large, prime chunks of lands being high lighted in the news papers,  accusing all who have the opportunity and influence to grab. Builders are hand-in- glove with the govt.to corner large chunks of land around townships for urbanization at their own pace and price. SEZs provided a golden opportunity to business houses to grab large chunks of arable land. How many SEZs have come up? Politicians are partners in the spoils.

This is the reason,  the role of  the govt in  urban housing development is decreasing. The process is simple. The Govt notifies land for acquisition. Prices crash. Politicians buy land cheep and later urban schemes are launched on these lands or these are sold to builders to earn big money.

Rates fixed for registration are at least 60% lower than the market rates. Those who fix these rates are the most intelligent and know all bureaucrats. You may ask why?  Simple,  it suits their mentors. Gains are manifolds. You can park your black money without any hindrance by the Govt. agencies,  because you will be asked about the source of money to the extent only for which the sale Deed is executed. Secondly you save on stamp duty which will be charged only on the consideration as shown in the sale Deed. Thirdly, you will save on under hand payment to the revenue authority for getting sale deed registered, because this is also charged on the consideration mentioned in the sale Deed.

No fuss about taking money out of the country by hawala or otherwise. No Ram Dev insisting on bringing back black money.

Lucrative na?

Modi’s Gujarat model of Development?

Mr. Narendra Modi, Chief Minister of Gujarat and BJP’s PM candidate as well as BJP are crying hoarse over Gujarat model of development. But what is it actually? Can anybody elaborate for the common man. Does it mean putting all resources  at the feet of big industrial houses and dancing to their tunes. Does he has anything to boast of  for the upliftment of common man. Gujrat is far behind in welfare parameters for the masses.  In none of its much publicized rallies he has ever enumerated his Gujarat model, nor he has ever outlined his vision for the whole country.  He has started underplaying his Hindutava agenda as well much to the discomfort of RSS. He is trying to forge new friendships in all states to market himself. He is trying to hack the legacy of great national leaders like late Sardar Vallabh Bhai Patel, who was from Gujarat forgetting all other national leaders. How the construction of a statue at a cost of  2500 crores will help in the country’s development and its downtrodden. Modi’s vision seems limited to seeing himself as PM and he seems to be in a hurry. I think by the time elections are announced he will stop sounding like BJP’s Modi or Hindutava icon of RSS.  Congress is contesting his development claims on various fronts with solid statistics. How long he can get applause for bashing Gandhi family in his theatrical style. Corruption is a strong issue, of course, but in a country where almost everybody is corrupt, will it help him win people to his side, and how many? In India the majority of electorate who vote sincerely(I am not talking about the educated vocal class, because they do not represent the majority) do not understand development models, they understand atta, daal chawal only. Does Modi have any plan for their up liftment. At least he should have something to show in his own state which he is running for almost 15 years. Huge spends on rallies and high tech campaigning will not reach the voters struggling for their daily bread.

Powered by WordPress | Designed by: theme for wordpress | Thanks to Tim McGraw Tour, Körkortsteori and Wicked Fort Lauderdale