One size-fits all-solution for small enterprises?

The Government has conceded that Indian economy runs on the wheels of the micro, small units. It has accepted the fact that MSME sector accounts for about 45% of the manufacturing output, 40% of the total exports of US $ 185 billion, providing roughly employment to an estimated 60 million workers spread over 26 million registered and unregistered enterprises. The Government has reckoned that out of the 1.5 million registered units, 95 % of the units are micro enterprises (investment in plant and machinery up to Rs 25 lakhs) and 4.7% are small enterprises (investment upto Rs 5 Cr). It means only 0.3 million units are in the medium category (between Rs 5 cr- Rs 10 Cr investment level).

The prime Minister’s task force on MSME which submitted its report in January 2010 has nailed the claim of the banks that there was no impediment for these small and tiny units to avail bank Credit. As a matter of fact, the greatest problem faced by the MSEM enterprises was availability of Credit for investment, improvement and working capital. The Government concedes the superlative performance of the sector to the GDP and employment Growth against all odds including accessing funds at the right time unlike large companies who have various avenues like primary market, ssecondry market, debentures, commercial paper, foreign depositary bonds, listing in London/NY stock exchanges, etc.

The Indian government has accepted the view of the task force that commercial banks which include nationalized banks mainly give priority to the corporate sector with better credit rating and provide easy credit at sub prime rates. For this, one of the RBI Dy Governors said that the Banks were not loathed to give credit to these micro and tiny units. Their spread was in villages which were unbanked areas, as the Indian banking system covered only 25% of the districts in India.

It has to be seen how far the banking sector would provide Credit at affordable rate of interest that is after the introduction of the ‘base rate’ which should have come about. Already the big brother of Banks, State Bank of India has begun to murmur that the conditionality of fixing ‘base rate’ must be extended by at least an year for all the Banks to switch it, because the present borrowers would insist on the BPLR rate of interest be applied to their accounts. Surely, when the sub-committee of RBI meets on July 27, 2010, this amendment would be made in the notification because you cannot have two sets of interest rates for Credits.

Banks dependence on SIDBI to promote the SME industry has been found to be inadequate. Even the SHG concept of SIDBI, Cluster level funding etc have not been successful because SIDBI is yet to have a grip on the spread of tiny and micro industries. Their problems are not even, with different problems for different sectors. The expertise to provide escort service is not available with SIDBI. Government is also talking about NABARD which had focused on rural enterprises. Ditto is the problem here.

The SME-CDP programme of the Minsitry of Micro, Small and Medium Enterprises have been found to be a non starter for the SME Clusters. The basic problem with the Scheme is its inability to stretch to a geographical location having similar lines of segmentation of the enterprise. Its divisions like Development, Commercial etc are only theoretical abstracts, as any cluster should be a profit head by itself and it should have a commercial objective, otherwise it will fail. No body has bothered to evaluate the Scheme, because it is largely governed by the UNIDO Concept of Clusterization, even though India requires a different concept and model to create growth oriented Clusters.

It is an unfortunate fact, that MSMEs are not aware of the various developmental schemes, geographic specific interventions, and sector specific initiatives. It is true that the entire paradigm of development has changed and inclusive growth has to be achieved by participatory growth. The Ministry of Micro, Small and Medium Enterprises, need a total rehaul, if nearly half of India’s export and manufacturing output need to sustain the vigours of international and national competition.

In India, small businesses were an awesome lot, and the government and the Banks shunted it. But in the United States, the Government was keen to making credit accessible to sound small businesses which were crucial to their (US) economic recovery and so should be front and centre among our (US) current policy challenges. In India, the Bankers hold a grudge against SMEs as unviable.

The Federal Reserve had brought in capital from the securities markets to small businesses through the Term Asset-Backed Securities Loan Facility (TALF programme). In the United States, around 8, 50,000 small business loans were financed in part by securities whose issuance was supported by TALF.

While Indian Banks were keeping Crores of rupees in their currency chests, in the US, loans to the tune of $ 710 billion granted in the second quarter of 2008 had come down to $ 670 billion in the first quarter of 2010.

An important but difficult to answer question is, How much of this reduction has been driven by weaker demand for loans from small businesses, how much by a deterioration in the financial condition of small businesses during the economic downturn and how much by restricted Credit ability. United States is thinking of additional effective action hearing first hand from knowledgeable people who can speak with diverse perspectives about the challenges facing small businesses. The term ‘small business’ encompasses a heterogeneous mix of enterprises, so that one should be wary of one-size fits-all-solutions. But in India, knowledgable advice is unwanted. Secondry solutions are enough.

Finance Minister's Chicken Egg Economics?

On the one hand there is a clamour against price rise. On the other are various restrictions on imports. This way, prices will remain high and we will continue to see more and more tinkering with interest rates. The problem is that high interest rates raise the cost of capital and, therefore, discourage investment. When the rate of growth in investment reduces, growth suffers. Lower rates of growth are clearly unacceptable, so are high prices. But with high tariffs and high/vague protectionism, we will not be able to help neither the slowdown in growth nor increase in domestic prices.

Look at the recent hike on June 25, 2010 in Petroleum prices. The increase was (+) Rs 3.50 for petrol, (+) Rs 2/- for diesel, Rs 3/- more for kerosene, and (+) Rs 35/- per LPG Cylinder. The increase is across the board. According to Government, subsidizing Petrol companies which show book profits on sales price of petrol + Government subsidies which causes 5 digit profits cannot be afforded by the nation. The subsidy burden is transferred to the people, whom the Government feels, have paying capacity so that vulnerable sections who do not have paying capacity can be helped through specialized subsidy schemes. India is after all a benign socialist democracy. Economic pundits and intellectual economists who have been advising the Government have averred that the hike in petroleum products will have an impact less than 1% on headline inflation which is hovering around 10.16% making it rise to 11%. The disparity between the Wholesale Price Index and Consumer price Index which was very high has been narrowed down, and the food inflation has been brought down to 12.92% from 16%. To further counter check inflation, RBI has increased the repo and reverse repo rates which today stand at 5.5% and 4% respectively.

The Finance Minister’s cautious budget had placed fiscal deficit at 5.5% of the GDP. His expenditure was estimated at Rs 11.09 lakh Crore, while tax and non tax revenue were expected to yield the state Rs 6.82 lakh Crore. Fiscal deficit for 2009-10 was 6.9%. Rolling targets for fiscal deficit for 2011-12 and 2012-13 has been expected to come down to 4.8%. Very commendable progressive budget compared to the deficit finance budget of earlier years. Forget, it was the Congress that ruled the country and the Finance minister was from one of its ranks.

Who said that the Public Distribution System is not in order? The 57% of the targeted 652.03 lakh Below Poverty Line people are covered for which an outlay of Rs 64,929 Cr was ear-marked. The Government has fixed Central Issue Prices (CIP) for APL at the purchase price of FCI, so that BPL could be supplied at 50%of FCI’s economic cost. But with all this spending the incidence of poverty should have come down. But it has gone up. Government wants to preserve money for the Food Security Programme to obliterate poverty by providing one square meal a day. Already 100 days compulsory employment programme has emancipated the capacity of many, claims Government. There are many who want to remain ‘voluntarily’ unemployed. These people are in the ‘you can take horse to water but cannot make it drink’. According to the study conducted by Dr B K Chaturvedi Committee, it was found that 39% of PDS was diverted and 18% reached the hands of those who used it for adulterating petrol. The Committee also observed that rural use of kerosene for lighting has come down to 40% to 51%, and hardly 1% is used by BPL families for cooking purposes. A shock assessment was that 24% of rural consumption going to states for lighting where there is 100% electrification. Often kerosene oil reaches the hands of the unintended. The difference between APL and BPL prices provide strong incentives for illegal diversions to the market. The number of BPL families varies according to the State list, Planning Commission figures, NCAER, etc. A new study-the multidimensional poverty index(MPI)- by Oxford Poverty and Human Development-UNDP initiative revels that there are 421 million MPI poor spread across Bihar, Chittisgarh, Jharkhand, MP, Orissa, Rajasthan, Uttar Pradesh, West Bengal(in India) compared to 410 million in the 26 poorest African countries put together. The MPI assesses poverty on the deprevations on a host of key factors. How can BPL inspite of heavy subsidizing multiply? Is Malthusian theory at work?

The prices of vegetables and other food items have been going up steadily. The manufacturing growth has been accelerating. Share market is steadily galloping. However, there is a short term shift is noticed from equity and reality markets to risk free, capital guaranteed deposits in India. This is the reason, that despite the purchasing power among the middle class, white collared, ethnic population, etc, invest in Fixed Deposits though the returns are marginal having eroded due to government’s wild fetched theory of low interest regime. When interest is lower than inflation, it is not a healthy sign, forgot the Economics studied rulers and advisors in the Government.

Surpringly for Government, Spectrum auction brought Rs 70,000 Cr to its coffers. Petroleum hike reduced the subsidy burden on the Government. Base rate will enable the Banks to squeeze the common man, advantage multinationals, so that more paper interest will accrue, and the balance sheet will be green. Even though all the bank top executives shook their head together when an internal committee of RBI had recommended replacement of erstwhile BPLR system with base rate regime. Now Bankers started having second thoughts. If the borrower refused to accept the ‘base rate’, there would be two set of interest bearing loan accounts- one with the old rate, and one with the base rate. The bankers have requested RBI to add a sunset clause to its earlier notification asking banks to benchmark lending rates on the base rate effective from 1 July 2010. It was announced that the RBI will give the Banks an extension of a year to follow the base rate. Should not the notification anticipate legal problems, before the announcement? Government bodies become wise after the event. That is what Harshad Mehta taught the Government. Limping export sector is grouping in the dark, awaiting Domiciles Sword at any time. Half of the Stimulus outlay will be removed says grapevine from Delhi. That would add to available surplus. Finance Minister has already announced disinvestment to the tune of Rs 24,000 Cr. Another shedding of 2.5% in the nationalized Banks, Insurance Companies and navaratnas would easily fetch him Rs 25,000 Cr. With all these monies on his chest, the Finance Minister is sitting on a chest of money. If P Chidambaram can write off Rs 70,000 Cr as farm loan waiver, why can’t his successor do much more? Provide Food Stability to the extent of Rs 1, 00,000 Cr?


Has the Finance Minister heard of Nils Gilman, who authored the ‘Deviant Globalization theory?’ In our economy, there are illegal unrecorded transactions like flow of unaccounted money, black money transactions in financial, real estate, energy, drugs, organs, hawala transactions, which can torpedo meticulous planning in the controlled economy. Swiss Bank accounts? Every body promises to bring the money, but nobody has. We need to vigilantly and vigorously pursue the agenda that we have written. Finance Minister should be slow when undertaking the exercise of taxation which he thinks is the only way to bring sunshine to India’s fragile economy, a philosophy exploded by Dr Montek Singh Aluwahlia at the Devil’s Advocate programme.

Kochi Port, harbinger for Progress

We talk about Imports and Exports. We talk about shipping capacities. We also talk about containerization. Seldom is break bulk cargo shipped, as the modern ships are not built to carry break bulk cargo. Mother ships call at various Ports. There are voyages to Europe and United States once in a week. As transshipment Ports were not available, the Indian cargo bound for Europe/America had to go through hub Ports like Sri Lanka and/or Dubai, and then they are dispatched to Europe/USA. What happens in such situations is, the turn round time for cargo diversion is more, making shipping costs high, and the time schedule in respect of receipt of Cargo also about a month. The feeder vessels who make journey to and fro Colombo and/or Dubai, will be costlier compared to the shipping cost, if the merchandise is conveyed through a mother vessel. There is also no break off time at the hub Port.

Cochin Port is one of the best ports, an all-weather Port in India. With the fact that there were regular visitors through sea to Kerala from time in memorial, sea routes have been designed, mapped, and virtually available. Yet, in terms of income from cargo, why is Kochi lagging behind other Ports like Tuticorin, which was set up in 1985 only. People attribute it to the labour strife. But the fact of the matter is, labour strife is prevalent but the more important aspect is political apathy to the development of Cochin Port. The Port authorities are vexed that around 60 lakh tones of Palmoil is imported into India; but its import through Cochin port is banned. Inspite of the territorial ban, palm oil is abundantly available in Kerala. Why to deprieve revenue for the Cochin Port only. On what basis or logic? What is Cochin’s loss is Mangalore, Chennai and Tuticorin Ports gain.

Kerala historically is a neglected state. There have been top political bosses in Kerala who had a hand in running the Government of the day. Shri R K Shanmugham Shetty, the last Diwan of Cochin was India’s first Finance Minister. Another great name was that of Shri V K Krishna Menon, who was left and right hand of Mr Nehru.. Kerala had surplus electricity, which it sold to neighbouring states. The income from sale of electricity was a revenue head in the State budget. Kerala has 44 rivers, and water everywhere. Today, in terms of per capita consumption of water, it is in the 20th place, lower down to Rajasthan. The National Highway stretch is very bad compared to the stretches elsewhere.

Kerala’s more than 1.5 million educated have migrated to West Asia, Europe, America, etc. Around 0.7 million are working in different parts of India. According to Government’s statistics, of 20 million expats from India, 8 million are in West Asia (most of them from Kerala). The remittances from West Asia are higher in volume (no of transactions) while United States NRIs lead in absolute value. It is also a fact that India account for about 20% of remittances to developed countries. A recent phenomenon noticed is that the people abroad do not use the money in share market operations and real estate deals, though valuation are at such amazing levels, but invest in risk free capital guaranteed deposits in banks. That is why, despite the low interest rates offered, the Deposits in Banks are swelling. AP (IT) accounts for 22% of the remittance, Maharashtra has 15%. Kerala constitute the highest 55%. RBI acknowledges that $ 40.296 billion is the inward remittance which in value is higher than the Foreign Direct Investment in India.

New generation ships are not coming to India, least of all to Kerala. Newer ships coming on-line are able to hold 2/3 times as many TEUs as ships as old as a decade. New ships are faster, undertaking more voyages than the older ships. The number of containers sucked up by new ships is manifold compared to the older ones.

There are destination wise Ports. Ports which have imports and exports in tandem. Some are only Ports having export consignments. There are some other Ports which have import priority. There are Internal Container Depots and Container Freight stations. ICDs are beyond 100 Kms of a Port while CFS is set up adjoining the port also to avoid congestion. Now, if the two ways (Import/Export) from a Port is brisk, then the problem of availability of Containers is not a problem. Otherwise, the container gone, or the container that has been off loaded, has to be transferred in an empty state, for which railways charge freight, if by Road transport it is uneconomical. Ages of the containers are also going down. So, there can be a compartitative cost only if the net imported container trade in volume compares well with net export portion.

The problem of Ports is compounded by the interpretation of tertiary policing agency like the Customs, Central Excise, DGFT, etc. Indian government publishes tariffs and import tax rates, but they are not transparent. There is no single official publication that includes all necessary information. Importers must consult separate tariff and excise tax schedules as well as any applicable additional public notifications and notices to determine current tariff and tax rates. Furthermore, different classification nomenclatures for tariffs and excise taxes cause confusion, even though they are aligned at the 4 digit and 6 digit levels. . India continues to maintain a negative import list. The negative list is currently divided into three categories: (1) banned or prohibited items; (2) restricted items which require an import license; and (3) "canalized*" items, importable only by government trading monopolies subject to cabinet approval regarding timing and quantity. India has liberalized many restrictions on the importation of capital goods. The government allows imports of second-hand capital goods by actual users without license, provided the goods have a residual life.

The laws governing customs duties are the Customs Act, 1962 and the Customs Tariff Act, 1975. The Customs Act, 1962 is the basic Statute which empowers, under Section 12, duties to be levied on goods imported into or exported from India. The categories of items and the rates of duties which are leviable have been specified in two schedules in the Customs Tariff Act, 1975. The first Schedule to the said Act specifies the various categories of import items in a systematic and well considered manner, in accordance with an international scheme of classification of internationally traded goods – termed ‘harmonized system of commodity classification’. Different rates of duties are prescribed by the legislature on different commodities/group of commodities mentioned in the first Schedule. The duties are levied both on specific and ad-valorem basis, while there are few cases where at times both specific and ad-valorem duties are also collected on imported items.

The Government of India applies discretionary customs valuation criteria to import transactions. U.S. exporters have reported that India’s customs valuation methodologies do not reflect actual transaction values and effectively raise tariff rates. Indian Customs requires extensive documentation. Processing delays often occur. In large part the delays are a consequence of India’s complex tariff structure and multiple exemptions, which may vary according to product, user, or specific Indian export promotion programme. The Government of India fixes minimum import prices for certain imported products.

The exporter/importer may have to study a lot of theory to do foreign trade. Our government, even though the export value had quadrupled from $ 44 billion in 2003-4 to US $ 185 billion in 2009-10, fails to give importance neither to the export sector nor improving its logistics and infrastructure.

Government of Contradictions throw planning awry

Indian economy has withstood the torrential economic crisis of 2007-9. That is what the Government wants us to believe. Double dip growth cruve, we are at the fag end of the curve, and what remains is an inclined growth. It is raining cats and dogs, and our agricultural growth looks promising. In the end of the last fiscal, contrary to the Planning Commission’s expected growth of (-) 0.20% while, the agricultural growth posted (+) 0.20%. Quite often, planning commission’s growth figures are not only wrong but goes astray notwithstanding that they are only supposed to Plan, write the guidelines, question the achievable or nonachievables, after including it in the funding, unable to ear-mark actual funds due to funds volatility or shortage. Like sure sciences, economic planning is subject to rational or irrational human behaviour which can be contradictory to what could have been imagined. What are Plans? Mere estimates or one’s real assessment of growth, development in mathematical form.

The Union Finance Minister when he unveiled the budget, pictured a scenario of modest to good growth based on his premise that the world economy was growing, blooming, and zooming. However, in view of the carry over of the crisis-riddled economy, he had to impose certain taxes, increase certain surcharges, maintain the equilibrium in some areas, be considerate in some other areas, and be tight fisted in areas where lot of help has been given. The first step was when the prices of petroleum products were increased in March. The feeble voice of the Opposition, who became men of straw, did not have the vigour to shout. Hence kept quiet. Emboldened by this silence, again, on June 25, the Group of Minsiters (like the proverbial monkeys- see me not, hear me not, no speak) decided to increase the petroleum prices at the rate of Rs 3.50 per petrol, Rs 2.00 per diesel, Rs 3/- per kerosene and Rs 35 per LPG Cyclinder. Government’s argument was, though the oil companies showed profit in their balance sheets, it was factoring the subsidy given by government, which was causing a drain on the exchequer. Why not use it for some more productive exercises. And even after this added pricing, the inflation would enhance by less than 1%. Headline inflation was 10.16%, which government corrected as 11%, while food inflation touched 12.92% falling from 16%. No doubt, ONGC got a whopping Rs 5,400 Cr by way of bonanza because of this raise while Oil India’s additional income is expected to rise by Rs 800 Cr. In addition government got a share of central levies at the raised prices. The Railways would incur heavy losses while gas based power would have to incur an additional of Re 1/ unit (kWh).

The Fiscal deficit envisaged by the Finance Minister was 5.5% of GDP. He had budgeted an expenditure of Rs 11.09 lakh crore, while tax and non tax revenue was expected to yield Rs 6.82 lakh Cr. He had to resort to borrowing of Rs 3.81 lakh Crore. He was on a strong wicket, as his deficit pitched at 5.5%, while 2009-10 (6.8%) (revised 6.9%). The Finance Minister had proudly announced that the rolling targets for fiscal deficit was plugged at 4.8 %( 2011-12) & (2012-13). Finance Minister is in a tearing hurry to jump the fence.

The first casualty of the guillotine of the stimulus was the Technology Upgradation Fund of the Textiles Ministry which has been withheld temporarily. He may cut down DEPB, reduce DDB, and other fiscal stimulus offered to various segments of Exports which did exceptionally well in spite of several shortcomings.

Under the targeted Public Distribution System, only 57% of the 652.03 lakh BPL families (up from 596.23 lakh) are covered by it. The amount of subsidies for food, fertilizer and petroleum is expected to be Rs 64,929 Cr. Central Issue price (CPI) for Above Poverty Line will be 100% of the commercial FCI’s commercial cost, while 50% subsidy was provided for Below Poverty Line people. The difference between APL and BPL prices provide strong incentives for illegal diversions to the market. The Government had identified BPL families through select geographical targeting which they found unrealistic.

Dr Montek Singh Ahluwalia, Dy Chairman, Plg Commission when questioned the rationale, replied that the Government is not supposed to subsidies the oil companies. Somebody has got to pay for it (cheaper kerosene and LPG)- either through general revenues or from jacking up petrol prices. Subsidies need to be utilized for building schools, education, hospital, etc. He candidly said that people building roads should build roads, while Planning Commission members provided guidelines, econometrics, and implementation strategy. But the implementation was by some other body. He concurred that the Planning Commission had targeted 7000 Kms of National Highways @ 20 kms per day. But funds have to be found for it. He said regarding building of Delhi Airport, the role of the Commission selecting the Operator.

Regarding the point that under Road Transport, Planning Commission had targeted 7000 Kms of national highways without allocating funds would mean, that the non availability of planned allocation would halt the project. There cannot be discussions on it. Secondly, the Planning Commission deputy chief should be aware that around Rs 70,000 Cr were pumped to the Government account by the Spectrum auction. The expected and anticipated bringing down of stimulus for sectors which had done well last year, would yield another Rs 50,000 Cr. Already the announcement of ‘base rate’ would help the Banks to mobilize more money and more income, which would be pro rata given back to the Government as dividend. If Indian Oil Corporation has been patronized through subsidies and if they had made profits to the extent of Rs 10,220 Cr in 2009-10, how much of it was granted to government by way of dividend. In Rs 10,220 Cr, what was the percentage of subsidy that the Government shelled out? Dr B K Chaturvedi Committee appointed by the Plg Commission has clearly pointed out that subsidy for BPL families in 100% electrified villages found way to black market, and 26% of the total kerosene was used to adulterate diesel, what action did the Planning Commission or Government of India do?

Government had serious concern for Indian labour. If they had, why EPF interest is still retained at 8.5%. Why don't you make it 10%.

If the Plg Commission was so concerned for money, why is Indian Government importing Crude Palm oil at ‘nil’ Customs duties and edible palm oil at 7.5% which account for a loss of income to the tune of Rs 24,000 Cr. Further 3 lakh tones of Palmoil is distributed through PDS by subsidizing 1 litre of Palm oil by Rs 15/- which amounts to around Rs 4000 Cr. Planning Commission targets a growth rate, then mid-course changes it, and at the end of the year alters it, and what is achieved is a different percentage? How does Planning Commission Chairman endorse this? Accountability rests with the Commission. It cannot absolve/abdicate itself of the responsibility.

Public speaking, a profession or an art?

There are number of highly paid Public Speakers around the World? Why have the celebrities, politicians or business tycoons entered the domain of Public speaking? The Politicians, who were bosses, running their country from exalted positions, why have they become highly preferred strategists, planners and Public relation experts? Would a musical feat by a celebrated singer or a dance and music show by Michel Jackson or a solo performance of a noted dancer, cost as much as a lecture on public or theoretical themes of Public speakers, however gifted they may be?

If Dale Carnegie were alive today, he would have written a Book, “How to Speak, win audiences and to make more money?”

William Jefferson Bill Clinton, the 42nd President of America (Jan20-1993-Jan20, 2001) is one of the most sought after Speakers around the world. He has addressed 197 meetings spanning across 45 countries of the world earning US $ 65.5 million. 1 speech is expected to fetch him around $ 1, 50,000. He was remunerated US $ 4,50,000 for a Public Speech he made after recouping from his bypass surgery in 2004 (where his performance was practically nil). This is stated by his wife, Ms Hillary Clinton, on her assuming charge as Secretary of State regarding spouses income submitted to the Government. A President who was on the verge of being impeached but for his acquittal by the US Senate, has been spending his time usefully spreading his philosophy, sharing his expertise, and Planning strategy [which did not make a major difference to the Country during his Presidency]. His successor Bush Jr made $ 1, 50,000 during 2009-10 after vacating the White House.


Tony Blair, former Prime Minister of England, is the highest paid Public Speaker in the world today. He was paid $ 6, 16,000 for a Public lecture during 2009. He was able to garner 12 million pounds over the past one year, 6 times of the income he earned during his entire period of his stay at 10, Downing Street. He charged around $ 2, 50,000 for a 90 minute speech.

Ronald Regan, made $ 2 million from just one assignment in 1987, helping a Japanese Company to improve their Public Relations. Al Gore, Nobel Prize awardee, charged $ 100,000 per speech.

Sarah Palin was unknown outside Alaska till the Presidential election of 2008. The Presidential race where she was nominated as the Vice President by the Republican Party and loads of media attention heaped on her, secured for her royalties worth $ 12 million. She charged $ 1, 00,000 or more for a Public speech, after she demitted the office of the Governor.

Mikhail Gorbachev, the USSR leader who saw the collapse of the United Socialist Soviet Republic, though he tried his best to reform the stagnating USSR economy, was in great demand as a ‘Public Speaker’ and he was rated highly. He was also rewarded fees to the tune of $ 2, 00,000 per speech.

These great Politicians who played with the destiny of the Countries when they were at the helm, left the governance scene, and became noblesse oblige of sharing their thoughts with the World. As rightly advised by a famous author, the Comfort Zone of each individuals should be stretched (Comfort zone is referred as the area in which one is comfortable operating) because outside the ‘comfort zone’ is where great opportunities are waiting.

Taking a leaf from these outstanding statesmen and Politicians, Indian Politicians who are above the age of 60 would do well to retire and give way to the youngsters, second line leaders, and preach the philosophy and their experience before audiences across the world to enrich themselves with Dollars which can be exempt from any tax. Instead of trying to push their outdated, obsolete and discarded theories which they learned in School or in College, they would do a world of good, if they gracefully adumbrate their counterparts in England and America, and spread their philosophy and Utopian theories. Instead of thrusting their theories on the people of India, let them captivate the world audiences – Ayodhya the land of Rama, what is meant by Indian dose of Secularism, the functioning of the bureaucracy, how to increase illiteracy and poverty, tell the world about non violence, Roadside bundhs, sidewalk bundhs, hartals, etc.

Justice delayed, justice denied

Chief Justice of India, Justice S H Kapadia, hit the nail right on the head when he bemoaned that many cases could have been solved through negotiation, arbitration and mediation, instead of being filed under one section or the other, and goes up to Supreme Court for no reason. He regretted that unnecessary prolonged delay in delivering justice because of mountain of Cases that were at the hearing stage, or admitted and where stay was given, took a long time for adjudication. . An ordinary citizen of India is vexed at the delay, making justice denied as far as he was concerned. If lucky, may be, his son may get justice, after long winding years.

Supreme Court will crumble under the weight of pending cases, one Chief Justice remarked. Justice Chandrachud, who was CJ for seven long years, expressed distrust at the legal delivery system in India, even though he held the top-most post of the Judiciary for a record term.

Everybody is seriously concerned about the judicial system. Parliament is concerned, lawyers are concerned, and litigants are frustrated, judicial officers are anxious to settle the cases. The suffering litigants feel dejected because of the delay in the adjudicatory process and the high cost involved in it as well as the inflexibility of the process.

The Motor Vehicle cases, third party settlement cases, insurance cases, where the mighty organizations are on the one-side prolong the case as much as possible, causing untold distress. After a long time after a claim is filed, finding some loophole and absurd reason, they reject the claim. There are many hit and run cases, where proper compensation is not got, because of grave miscarriage of justice. Insurance Companies act like an arbitrary forum. They have haste in thursting a Policy, and never about the settlement of a Claim. The cases that come under the Compensation for land acquired by the Government, goes upto the Supreme Court. Why can’t there be an arbitrator channel, where the case is decided once and for all. From what could have been cleared at the District Consumer Forum, the case is appealed and appealed until it reaches the Supreme Court after inordinate delay, and the judgment given by the lowest forum is upheld by the Supreme Court. Why should Court accept appeals which neither have any unique point of law which requires judicial interpretation at a higher level, or when some gross miscarriage of justice has happened. Like Jessica Lal case, Ruchika case, and some other well known cases like Olga tellis, Bhagalpur blinding, Airhostess case (discrimination as they were retired at 40, while men worked up to 60). The Bhopal Gas tragedy case took quarter century for the Hon’ble Court to give judgment, that too the Court of original jurisdiction- Chief Judicial Magistrate’s court. Now appeal against this will lie in the High Court, and further to the Supreme Court, and the accused are having money bags. How many more years the case will take, the turn it will take, only God knows. Speedy justice should be the maxim rather than the rule.

Chief Justice of India was right in saying that, “we must understand the value of time. This is one of the areas we need to focus on how to promote that culture.” He cited the example of a case which was for recovering Rs 5, the litigant spent 15 years in Courts.

It is not that we don’t have people who are experts in the art of negotiation. There are excellent mediators who know the law and can adjudicate disputes methodologically, and legally. Arbitration is one fora where the disputed parties questioning an interpretation of a Contract, or failure to supply goods within the stipulated time, or the supplied goods were defective so asked for compensation etc.

The Government is the greatest litigant. For anything and everything, the bureaucrat when confronted with a problem writes that the matter may be referred for judicial scrutiny. I have heard many Government servants, including top bureaucrats telling me that if he adjudicated the case honestly in one way or the other, some body will blow up the Case and CBI will come into the picture, and his embarrassment will start. To be clear and clever, if he can pass on the buck to somebody, he is free from trouble. There is Income-Tax cases which does not have an iota of argument in referring to Courts, Sales/Commercial Tax cases, Customs cases, Central Excise cases, Commercial disputes, tenancy problems, insurance cases, administrative, etc. These can be settled locally, and the consensus implemented. In foreign countries, people preferred Mediation, and the cases were solved in no time. In Tirupur in Tamilnadu, Tirupur Exporters Association took up arbitration, cases amongst members, cases against workers, even foreign buyers complained to the body to settle. This experiment has been found to be very successful. Why can’t other apex Chambers of Commerce and/or other bodies sort out the issue amicably through their apex organization, instead of dragging it and stretching it upto Supreme Court.

If cases are appealed against for silly and unsustainable reasons, higher Court of Appeal should reject appeals at the introduction stage itself. Granting of stay, a weapon used by the rich litigants, must not become universal. It must be sparingly given on merit.
The Lok Adalt movement must be revived. It can settle a number of cases where intricate law points are not involved. The disputes can be settled amicably. The Courts, should take the first step, to prevent filing of cases, revision petitions, appeals, etc.

My Cochin remembrances

Kochi had a distinct past, has a marvellous present and glorious future. We have been Cochinites, from the early part of the 20th century, and three generations comprising of my grandfather, grandmother, my father, and myself, my brother and sisters formed a part of this chain, having been in Cochin for more than a century.

We were part of the mainland Kochi, which had the fortune to see a typical pan-Indian nature by the substantial presence of ethnic cosmopolitan culture, please do not mistake it with cosmopolitan Club at Anavathil where India’s greatest singer Mohammed Rafi, came and conducted a ‘ganamela’ to the enthrallment of the entire Cochinites. Gandhiji had visited this place; Smt Indira Gandhi visited the place atleast two times; Dr B Radhakrishna Rao, Governor, had come here a number of times. The Pais of Manipal, who gave life to Manipal as a centre of learning, and they are the pioneers in the privatization of Education, often visited Cochin. Sankaracharya of Singeri and Sankaracharya of Kanchipuram, used to visit this beautiful place. The plastered mouth Jain sanyasis and sanyasinis used to come; the Godwa Saraswat Mathawacharya Swamijis also visited the Thirumala Devaswom temple atleast twice in a year, there were regular visits by different pontiffs of Christiana and Islam faith. But the people of Cochin always welcomed them with warmth and made them feel Cochin was their world. Cochinites included Yesudas, Antony, Rani Chandra, and many drama artistes. V R Krishna Iyer used to visit the Star talkies along with his wife Smt Janaki Krishna Iyer to see the latest English movies screened there.

If you travel the lanes and bylanes of Cochin, you would accost Muslims, Christians, Menons, Nairs, Tamil Brahmins, Tulu Brahmins, Godwa Saraswaths, Mdhavachars, Bengalis, Maharashtrians, Buddhists, Jains, Gujaratis, Marwaris, Biharis, Bengalis, Andhraites, Kanareese, Punjabis, Parsis, people from UP, Anglo Indians, and the like. Cochin is a mini India. There was a prosperous Jewish community settlement here (Jew Town) you can also see that these people not only come here, they bring their family, their tradition and culture. The Gujarathis play the ‘garba’ dance watched by their Malayalee neighbours. Holi and Diwali are celebrated with gaiety, while Onam and Vishu are celebrated by people of all faiths and religions. Christmas, Easter, Eid ul-Fitr, Milad-e-sherif is celebrated with devotion by the communities. Cochin carnival is conducted at Fort Cochin annually in the last week of December of every year. The thalapalli at Pazhayannur Bhagavati temple and the ten-day festivities at the Thirumala Devaswom Temple at Cherali draw huge crowds from Cochin’s multi ethnic composition. . Festivals and festivities form a part of the routine of a Malayalee. The children look forward to these festivals with eager anxiety.

If you are an avid eater, you can taste the multi dimensional food that is served on plantain leaves with two curries, porridge, payasam, avizal, thoran, pachadi, pappad, banana chips, three types of pickles, sambar, rasam and curd, which would be sumptuous and part of the cuisine during festivals, marriages and other celebrations. There will be abundance of Coconut and spices, coconut oil used extensively in the fried preparations, as Kerala is the land of ‘Kera’ or ‘land of Coconut’. I had the opportunity to serve this industry as Export Consultant to the Coconut Development Board, which was set up exclusively to develop the Coconut industry. When it was declared as an Export Promotion Council, my services were sought, and I assisted them. I have authored the ‘Coconut Export Manual’ which is a composition directed at export formalities, procedures and documentation. Chinese and North Indian cuisines are also available. Fast Food Culture has taken off in a big way. Another unique wayside hotel in moving carts known as ‘thattukada’ also sells preparations for the wayside crowd. The parippuwada and tea are very famous, and a familiar eatable of the Kerala folk. In the early days, it is used to be eating parrippuwada, then drink tea and smoke a beedi, a trait of the Communist.

A unique feature of Cochin people is to visit temples in early mornings. Christians will not miss their Sunday masses and the Muslims their prayers on Fridays. People are religious, they are deeply proud of their religion, but would respect all regions. The people of Cochin are highly fashion conscious. Even though the traditional Kerala ware is very popular, western clothing has been slowly taking over. Naturally when their cousins are in Persian Gulf, halfway across the world in Europe, New Zealand, Australia, America, etc. dress transformation will be taking place in tune with the times.

Cochin in the good old days had many typing institutes. They also taught shorthand. Gopalakrishna master’s institute at New Road, Mallayas institute was upstairs of Dwaraka hotel while there was another Institute on the side of the hotel. There were institutes at Amaravathi, and other areas as well. After studying shorthand and typewriting, the boys armed with a SSLC/Pre-degree certificate in the sixtees used to leave for Bombay in search of a job which they would invariably get. Chembur, Matunga, Sion, Koliwada are Kerala bastions. Many of these youngsters have risen in their ranks and have retired as MDs of the Companies of which they joined as Typists/Stenographers.

Cochin bears the burnt of monsoons. South west monsoon with lighting and thunder used to lash the Kerala especially Cochin between June and September (also known as (‘Edavapathi Rains), as this place is situated on the windward side of the Western Ghats. During October-Dec (Thulavarsham) the northeast monsoon used to bring rains to Kerala as it lies on the leeward side of the Country. Average rainfall is around 274 Cms, spreading over 132 rainy days. Cochin typically is a Tropical Monsoon climate (According to Koppa Climate classification). The usual temperature hovers between 17 degrees Celicious and 35 degree Celicious. Cochinites spent their leisure time in strolling on the vast Fort Kochi beach. Fort Cochin was an English county, houses built in various European styles, and Portuguese, Dutch, English style houses can be seen here. Parade Maiden is a historic ground where many football and cricket tournaments used to be held. On one edge of the ground is the famous St Francis Church, where Vasco-da-Gama’s body was interned. There is a cenotaph announcing this. The wayside to the Beach is filled with Chinese fishing nets, which showed Cochin’s link with the Chineese, from early years of the Christian era. Dutch cemetery, the Mattancherry Bazar, the Coonen Cross in the heart of Mattancherri, Dutch Palace (built by the Portuguese), are historical relics of the Past which had played a prominent role in Indian History. But the history of the place is shrouded in darkness, as no body had come forward to write a chronicle. There were no English newspapers published from Kerala, at that time. The only paper was a weekly which was brought out by Mr John Mampilli. His office was situated opposite to St Mary’s Convent Anglo Indian School. Little later, he shifted to Ernakulam north. Indian Express started printing their Cochin edition in 1970 or so. The Hindu also brought out a facsimile edition from Vyttila. I wrote a Book, “Saga of Cochin” and Vestige of a Grand Past which was released by Hon’ble Shri M N Govindan Nair, the then Minsiter of Electricity in the Govtof Kerala. I and the publisher of the book had gone to the Guest House at Ernakulam to invite Shri A C George, then Dy minister of Foreign Trade, GoI to release the Book.

Cochin was merged with Pallurthy, Fort Cochin, Ernakulam, and Edapally, and the Corporation of Cochin was born. Ernakulam got the name Cochin, even though it is only a part of greater Cochin, with the mainland Cochin being our Cochin which had a chequered history of its own. When the Councilors gathered, it was the LDF which had majority in the Cochin Corporation. Ironically, even though Shri M M Lawrence, CPM leader and a good man was slated to win, when the votes were counted the Mayorship went to Shri A A Kochunni(who was known as Kochuni master). When the shell-shocked Congressmen ran helter and shelter to get a few garlands, they were not successful in so much as the entire garlands made at Ernakulam, and Cochin were booked in advance by the CPM. Shri L G Pai, a good friend of ours and who owned a Tutorial College at Cherlai became the Dy Mayor. We conducted elocution classes every Sunday in master’s tutorial college. Then there have been great Mayors like Shri A C Jose, who was the youngest Mayor but for Mr Subhash Chandra Bose, Mr A C Seshadri and the like. But the formation of Cochin Corporation saw the decline of the original Cochin- Mattancherry.

Those of us, who studied in the Maharajas College, were deemed to be Gentlemen and comparison with Gentlemen of Presidency College is not out of place. One person who comes to my instant memory is Prof N R Kunjikuttan, who was lecturer, professor of History, later Principal of Maharaja’s College. Though our relationship was on a spiritual plane, it developed to closeness. Kunjikuttan Sir as he was called was venerated by his students like A K Antony, India’s Defence Minister, Vayalar Ravi, many distinguished personalities, who were his students. He had brilliant memory and has authored many books. I used to take my scripts to him for correction, and after lot of argument about the accuracy of events, their dates, quotes, I used to get the articles back, which were published by many mainstream papers and periodicals. I also got his help, for getting around 40 write-ups on various places, personalities, events, history, etc. When I had taken a team of American businessmen to Trivandrum, I met him near the Padmanabhaswami temple. Thereafter, I have no news of Kunjukuttan Sir.

I had the misfortune to be the Secretary General of an association dealing with Rubber. I had to fight for the users, as a result bulk quantity was imported into India, at nil rates, yet under Open General licence. This resulted in the collapse of Rubber prices, even though, at a much later period, the Rubber prices stabilized. I atoned for it by getting benefits for the Coir and Coconut industry in the 21st century.

My friends, admirers, lecturers, teachers, have left their indelible marks in my life one or the other time. When I was about the begin the welcome address for a Foreign Exchange seminar at Chennai, a friend of mine who studied with me 20 years ago, waved his hand. I could not recollect him, but later intimate conversation resulted. Another friend of mine had become Chairman and Managing Director of a nationalized Bank. He recognized me immediately and spent some time with me, even though he had a tight schedule. A union minister who was my friend would always see me whenever I go to Delhi and request for a meeting without appointment. The list can go on. I can add on. But memory is like the ebb of the wave; it never stops. So also memory. Cochin or Kochi is one place which I visit with nostalgia. It brings back to me, the memorable past. The great past.