Monday, March 4, 2013

Why the pundits keep getting it wrong on Narendra Modi


The near-coronation of Narendra Modi as the BJP’s prime ministerial candidate well ahead of the general elections shows up the poor quality of Indian political punditry. No matter whether you think of Modi as hero or villain, genuine punditry needs dispassionate analysis, not biases couched as insight.
This is why we get electoral and political surprises. The people aren’t surprised, only the pundits are.
Everyone predicted that Modi had too many detractors inside the BJP to be made numero uno. In fact, they had forecast huge factional infighting between pro- and anti-Modi factions. But politicians are smarter than columnists: they saw the writing on the wall when they observed how ordinary BJP workers were responding to Modi. Which is why once Modi won in Gujarat, they saw they had a choice: either align with a rising power or be consigned to the sidelines.
This is why the likes of Rajnath Singh, Arun Jaitley and Yashwant Sinha have clearly moved to recognise reality and joined forces with Modi. It is not that they lack ambition; but they know that in politics momentum is everything, and opposing Modi now will damage their careers rather than make it. The history of political parties in India shows that the electorate seldom spares party poopers. And right now, Modi has the tailwind aiding his rise.
Now that the much-ballyhooed infighting has not happened, the next conjecture of clichéd punditry is that Modi will not find secular allies among regional parties.  “A Modi-led BJP continues to be seen as un-coalitionable by many of these players and his continuous and conspicuous silence on the accountability for 2002 means that this is unlikely to change,”Modi at the BJP conclave. PTI
Modi at the BJP conclave. PTI
Actually, the only thing this editorial shows is that the pundits are mired in the past. When the rest of the country, and even some sections of Muslims, have moved beyond 2002, the year plays out like a stuck record in their minds.
The Wharton School’s decision to deny Modi a forum to talk to their students will be seen as further evidence of Modi’s unacceptability, but the truth is the opposite: Wharton’s decision is a mere reflection of their own biases, not confirmation of their theories on Modi.
The voting patterns of Muslims in Gujarat in December show that many have now come to accept Modi as a reality and are moving towards accommodation and compromise. This might not suit the Congress or some of its favoured columnists who have built a career around Modi-bashing, but the world has moved on.
Consider what former Darul Uloom Deoband Ghulam Muhammad Vastanvi said yesterday on Modi. “If our country makes him (Modi) Prime Minister, there is no reason for us to have any objection (Agar apna mulk unko PM banata hai to hamari taraf se koi inkaar to ho hi nahi sakta).”
This is not to suggest that Muslims are suddenly falling in love with Modi, but they have begun to outgrow the scare-mongering by some sections of the media and politicians. More significantly, this is what Vastanvi said: “For the past 10 years, there is BJP rule in the state. If the BJP government works for Muslims, then Muslims will support it and if it does not, then they will move away.”
This is the real takeout, and this is where our pundits fail to see what has changed. Having won Gujarat convincingly, there is no reason for Modi to play deeply divisive politics any more. In fact, he had abandoned that soon after 2002 itself and reinvented himself as a development icon, but you can’t see this if you don’t want to.
As an intelligent politician, Modi has the advantage of knowing that his hardline image helps with traditional BJP voters; but the same hardline image could allow him to make grand overtures to minorities and still not be seen as appeasing them. Just as it took a Nixon to reach out to China, it is the hardliners who can be soft with perceived rivals. Strength, not weakness, enables compromise.
Look at the small signals emanating from Gujarat itself. According to a Times of India report, Amitabh Bachchan, who is the state tourism brand ambassador, is shooting the next phase of his campaign to talk about Muslim heritage sites in Gujarat.  Says the newspaper: “Bachchan will be shooting his next series of “Khushboo Gujarat Ki” campaign at an Islamic monument, the world heritage site of Champaner-Pavagadh, built by Gujarat sultan Mehmood Begada. Also part of the campaign will be Ahmedabad’s heritage walk, which is known as Mandir se Masjid tak”.
If Modi can walk from Mandir to Masjid in his home state, one wonders why he should find it so difficult to reach out in the coming months to the minorities.
The other myth that 2014 could bust is the one which holds that Modi is unelectable on a national scale due to his alleged inability to compromise. The truth is Modi may not be liked by his detractors, but he has not shown himself unwilling to do deals with his critics. This is why his partnership with Rajnath Singh – they parted on bad terms when Singh was BJP chief  till 2009 – is showing signs of maturing.
Will 2014 be a year of victory for Modi? PTI
Will 2014 be a year of victory for Modi? PTI
Another thing the pundits miss is this: making new allies is the result not of their own biases, but electoral numbers. Everyone, from Chandrababu Naidu to Naveen Patnaik to Mamata Banerjee to Nitish Kumar, has aligned with the BJP when it had the numbers under Vajpayee. They did so even when they knew that LK Advani held the keys to the party and was one of the key players in the Ram Janmabhoomi movement. Nitish Kumar, despite his alleged antipathy to Modi, aligns with another Modi – Sushil Modi – in his home state. He is even said to be very close to Advani, despite the latter’s Babri connection. He surely knows that the BJP partnership has worked and it does not make sense to break it without good reason.
The most important thing some pundits have failed to notice is this: the Indian electorate has changed. It is no longer taken in by mere political posturing. It is demanding governance, and is now willing to give those who deliver a longer stint in power, never mind what the media thinks about them. This is why Modi won thrice, and why the CPI(M) in Tripura won five times.
As MJ Akbar wrote in a recent Times of India column: “Despite the multiple identities of an Indian electorate, voters are no longer disparate. They now vote decisively. Whoever wins, does so by a comfortable distance.”
This is the meaning of the votes in the north-east, Tripura, Gujarat, Bengal, Uttar Pradesh and Tamil Nadu last year and this year.
Thus, while everyone was predicting hung assemblies or messy scenarios, the electorate gave a clear verdict. In fact, this was true even in the 2009 general elections, where the BJP got trounced, and the Congress got an improved mandate. Both Congress and BJP wrongly concluded that the 2009 win was about freebies, but that may not be the case at all.
The farm loan waivers and NREGA spends may at best have been the icing on the cake for voters, not the cake itself. They saw high growth rates and income improvements, and saw no reason to rock the boat.
But 2014 is different, and the electorate may want a shift away from Congress due to its persistent economic mismanagement.
The Congress is probably calculating that the arrival of Modi may polarise minority votes in its direction, but the problem here is that it is stuck in traditional thinking. The Congress has not evolved beyond vote-bank politics, but the minorities may have moved on.
Pradeep Chhibber and Rahul Verma of the University of California and Berkeley suggest in The Indian Express (“Established fake political facts”) the our elections have become unpredictable not because the voter does not know her mind, but because the pundits and political parties choose not to see what may be happening on the ground – especially on caste and communal identities.
“The only explanation for why Indian politicians lose so often is that their calculations of the caste arithmetic are wrong. Why would politicians lose elections if their victory is tied to a particular caste or religious arithmetic in a constituency, and they and the analysts were sure of that arithmetic before the election? Despite this, it is repeatedly asserted that an appropriate caste and religion arithmetic are all that is needed to win an election. This faulty assumption is repeatedly asserted as knowledge and is by now accepted as fact.”
Before the elections, Modi was said to be losing the bulk of the Patel vote in Saurashtra, but the elections proved the pundits wrong.
Chhibber and Verma have this to say: “Many politicians, instead of reaching voters directly, rely on a set of middlemen or brokers to approach their constituents. These concentric circles of middlemen are the source of local knowledge for a politician and party. It is not in the interest of these middlemen to let politicians and parties have direct access to voters and voters’ opinion as that direct knowledge will undermine their position. As a result, Indian politics still relies on the politics of stitching together coalitions based on caste, religion and region without any evidential basis of the value of such arithmetic.”

ALOK KUMAR
PGDM II SEM

04 March 2013 

Ford launches its new car in India

Ford launches the new car with new technologies at Taj Palace in New Delhi

 Ford Fiesta PowerShift
 
Ford India launched the New Ford Fiesta AT at the Taj Palace in New Delhi on Tuesday. Michael Boneham, president and managing director of Ford India, unveiled the car with dual-clutch six-speed technology for the Indian auto market.
The new vehicle instantly garnered an enormous degree of hype in the media since its news about the launch was released. New Ford Fiesta is expected to give firm competition to others in the C segment.
It features technologies like Voice-Control with Bluetooth, Cruise Control, Hill-Launch Assist and Ford Grade-assist and Rear Parking sensors.
"The all-new Fiesta Powershift Automatic really opens up the segment by making the aspirational become achievable. With class-leading features like Voice-control with Bluetooth, Cruise- control and Rear-parking sensors, it offers our customers the next level of comfort and convenience." said Michael Boneham, president and managing director of Ford India at the launch of the Fiesta PowerShift Automatic.
"We are democratizing technology and going further in our efforts to understand what our customers want. The launch of PowerShift technology offers the best in class comfort, fuel efficiency, performance and affordability. The all-new Fiesta Automatic PowerShift, is the right sedan that befits the desired esteem and attitude of our customers, with zero maintenance transmission and hence low cost of ownership, class-leading features and best-in-class fuel-efficiency." Boneham added.
It requires no maintenance for 10 years or 240,000 kms.

IFAT  PARWEEN 
PGDM 2ND SEMESTER

Kingfisher Airlines offers cheapest fares passengers

04 March 2013      

Kingfisher Airline offers cheapest fares to passengers

The Airline replaces GoAir and SpiceJet to provide the cheapest fares in the regular booking category



Travel portals and Airlines are increasingly attracting passengers by providing a scheme that offers the cheapest airfares available on a given route.

But the name of the airline on which the air ticket has been booked is disclosed to the passenger only after he/she makes the payment for the non-refundable ticket.

Some benefited from the scheme while some did not since the scheme was launched about three months ago.

With domestic airfares at an all-time high, flyers doubt whether these schemes work or are they a scam.

"I booked three air tickets on 12 February on the Mumbai-Patna route for travel on April 20 under yatra.com's super saver airfare scheme. After the amount was paid, I was told that I have been booked on Kingfisher," said Ashok Kumar, a HR professional.

Last week, he checked with Kingfisher and found that the airline had stopped operating the flight he was booked on. "When I enquired with yatra.com, they told me the fare will be refunded. That is not the point. I have been cheated, I trusted the portal. They should book me on another airline," said Kumar.

Like Kumar, there could be hundreds of passengers who unknowingly booked on Kingfisher under this blind-booking scheme only to find later that their flights have been cancelled.

But there are passengers who have a different opinion. A passenger who flied to Delhi from Mumbai on Sunday said:

"On Saturday, the cheapest regular fare on offer was about Rs 6,500 on a Kingfisher flight. I did not want to book on this airline, but the next option was on GoAir and it cost Rs 7,400. So I checked makemytrip.com's special fares and found a ticket for Rs 5,700. I was expecting a Kingfisher ticket, but the ticket turned out to be for a GoAir flight," said Jain, adding that in the last one month, he booked at least six flights under the scheme on the Mumbai-Delhi route and all of them turned out to be Kingfisher flights. "But all the flights were operated and so this scheme is a real saver."

The difference between a regular fare and a super saver fare (on an airline other than Kingfisher) can be as high as 50%. This is because Kingfisher has replaced GoAir and SpiceJet as the airline with cheapest fares even in the regular booking category, which was not the case about a month ago.

MD JAVED ALAM
PGDM 2ND SEMESTER
 

KoPT fails to get a replacement for HBT in Haldia

Although the tender floated received two responses, the handling charges quoted were unaffordable for KoPT
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Kolkata Port Trust has failed to get a replacement of India-French joint venture Haldia Bulk Terminmal (HBT) to operate two mechanized berth in its Haldia Port even four moths after HBT's exit citing unsafe working condition.

Although, the tender floated seeking a replacement, received two responses – TM International Logistics Ltd and J M Baxi & Co -- the handling charges quoted was deemed “unaffordable” for KoPT. “It was even higher than the rate suggested by the guidelines of the tariff authority. KoPT can not afford such high charges,” a KoPT official said.

TM International Logistics Limited (TMIL), an arm of Tata Steel Limited, was the lower bidder. But, the handling charge quoted by it was even higher than that of Rs 227 per tonne suggested by tariff authority guideline. “If TMIL is selected KoPT will incur huge loss,” the official said.

Incidentally, Haldia Bulk Terminals, a joint venture between homegrown ABG Infralogistics and French company Louis Dreyfus Armateurs , used to charge the Kolkata Port Trust Rs 75 per tonne of cargo, which was far below than upper limit suggested by the tariff authority.

KoPT officials said, it is yet to take a decision on future course of action to rope in an operator for the berth, earlier operated by HBT.

HBT had signed an agreement with the KoPT to operate two mechanized berths till 2020.  However, HBT found itself in a political turmoil after the berth operator retrenched 275 employees citing low cargo allocation by KoPT. HBT had also alleged “vested interest” in diversion of cargo to the expensive manual berths, run by former Trinamool MP Swapan Sadhan Bose promoted Ripley & Co. This finally culminated HBT's exit from Haldia Dock Complex in November last year.
 
ALOK KUMAR
PGDM IISEM

Bharti Airtel's $1-bn bond issue gets fully subscribed; stock up


Shares of Bharti Airtel were marginally in the green on Monday on reports that the company’s billion-dollar bond issue was fully subscribed.
Shares of Bharti Airtel were marginally in the green on Monday on reports that the company’s billion-dollar bond issue was fully subscribed.
BSE
316.85
5.90 (1.90%)
Vol:323128 shares traded
NSE
316.90
5.80 (1.86%)
Vol:3016532 shares traded
MUMBAI: Shares of Bharti AirtelBSE 1.90 % were marginally in the green on Monday on reports that the company's billion-dollar bond issue was fully subscribed.

According to ET Now sources, the issue has a tenor of 10 years with a coupon rate cut-off of 5.5 per cent.

The stock has been holding firm in trade after Ajaya Sharma, Research Analyst, ET Now, broke the news before market hours about Bharti Airtel's $1billion bond issue for overseas investors.

Barclays, DB, Citi, HSBC, BNP Paribas, StanC and UBS are bankers to the issue.

The issue has been raised via Bharti Airtel International (Netherlands).

According to sources, a major part of the issue will be used for re-payment of older debt. The company has consolidated debt of about $8 billion at 2 per cent average cost.

The company had tried to raise funds through dollar bond in June 2011, but failed to do so.

At 01:50 pp, the stock was at Rs 311.35, up 0.13 per cent, on the BSE. It touched a high of Rs 314.50 and a low of Rs 307.55 in trade today.

AWANISH SINGH
PGDM-11 sem

Panel favours including interest on the tax refund in Budget

Parliamentary committee says there is no reason why the Tax Department cannot make broad estimates of interest liability on tax refunds
A Parliamentary panel has asked the government to make indication of interest on the tax refund in the Budget so that there is greater transparency in financial administration of the country.

"In their considered view reporting of interest liability to Parliament would being greater transparency in financial administration of the country, uphold the constitution, help reduce interest burden and bring efficiency in tax administration," Public Accounts Committee said in a report tabled today.

The panel headed by senior BJP leader Murli Manohar Joshi said there is no valid ground as to why the Tax Department cannot make broad estimates of interest liability on tax refunds based on the studied trends of the past.

Moreover, it said the Constitution and the financial procedure provides for additional or supplementary grants.

Citing example, the report said "during the year 2001-02 under Demand No-34- Direct Taxes, a provision of Rs 92 crore was made under the head 'Interest On Refunds of Excess Tax', a practice which needs revival."

The PAC report is based on the findings of the Comptroller and Auditor General of India (C&AG) relating to expenditure incurred on interest on refunds of taxes.

The Committee noted that the Department of Revenue incurred an expenditure of Rs 37,365 crore in interest on refunds alone in four years (2006-07 to 2010-11).

When the amount of tax paid exceeds the amount of tax payable, the assesses is entitled to a refund of the excess amount. Simple interest at the prescribed rate is payable on the amount of such refund.

The committee has asked the Finance Ministry to work out a proper accounting procedure in conformity with constitutional provisions and financial rules.

ALOK KUMAR
PGDM II SEM

India's fiscal plans realistic, positive for ratings: Moody’


Fiscal consolidation plan is credit positive: Moody’s
Fiscal consolidation plan is credit positive: Moody’s

NEW DELHI: The modest fiscal consolidation plan unveiled in the 2013-14 Union Budget by the Indian government is a realistic effort to correct the country's macroeconomic imbalances against a backdrop of subdued economic growth and upcoming polls and is credit positive for its sovereign ratings, Moody's Investors Service said on Monday.

In his budget for 2013-14, finance minister P Chidambaram kept the fiscal deficit for 2012-13 at 5.2% of gross domestic product (GDP), a shade under the estimated 5.3% and vowed to rein it in at 4.8% of GDP in the next fiscal year

"Fiscal consolidation could pave the way for monetary easing, which would revive growth. The extent of easing would depend on whether the Reserve Bank of India, which has noted that "sustained commitment to fiscal consolidation is needed to generate monetary space," believes that the government has provided evidence of such a commitment in its budget," the global ratings agency said in a report.

"The fiscal 2013 outcome demonstrates the sovereign's commitment to the budget target. Efforts to rein in India's deficits are a step in the right direction because large central government fiscal deficits constrain credit by fuelling inflation, crowding out private-sector access to domestic savings and widening the country's current account deficit," Moody's said.

The government has been battling to avert a ratings downgrade after a series of warning from global ratings agencies last year about the state of the country's public finances. Moody's has a stable outlook on India's sovereign rating while Standard & Poor's and Fitch have a negative outlook.

A ratings downgrade would have hurt capital flows, made it expensive for Indian companies to raise foreign loans and hurt overall sentiment at a time when growth was slowing. But a series of policy measures since September and a clear commitment to fiscal goals by the finance minister has helped reverse the gloomy predictions and nurse the economy back to its growth path.

Moody's said that the 2014 budget growth assumptions may be optimistic and called for a similar effort next year to tame the deficit.

"The Indian government will need a similar commitment and implementation capacity to meet its fiscal 2014 deficit target of 4.8% of GDP, but we consider many of its assumptions optimistic," Moody's said.

"The fiscal 2014 budget assumes nominal GDP growth of 13.4% and total revenue growth of 23.4%, including a doubling of revenue from divestments. It also anticipates total expenditure growth of 16.4%, with 29% growth in planned spending and a 10% reduction in subsidy spending," the agency said.

It said achieving such targets will be challenging. "In particular, India's divestment revenues have generally been lower than what the government has budgeted," Moody's said.

"Furthermore, there are still no indications that GDP growth (and hence tax revenues) will accelerate to the extent the government expects. Finally, the subsidy bill is likely to overshoot budget estimates, as it has done the past seven years," teh agency said.



Awanish singh
PGDM 11se3m