Monday, November 12, 2012

'Funeral Pyres' to protest land acquisition

 This is an interesting article I came across in Times of India on November 9. It is also interesting to note the relevance of social movements when developing infrastructure project. There was a verdict by the Honorable Supreme Court of India cancelling the Acquisition of farm lands in the name of public benefit which I came across in moneycontrol.com dated September 5th. Both the cases are related considering the fact that the protest  is due to acquisition of farm lands. Once Land Acquisition and Rehabilitation and Resettlement Bill is passed by the parliament, the land acquisition problems are supposed to get worse. "In the proposed bill, the percentage of land owners, whose consent is essential for acquiring land for private purposes, has been raised from 67% to 80%. However, land owners' consent is not required for acquiring land for public purposes." as cited by Times of India. This will make many of the upcoming power projects uncertain.

http://articles.timesofindia.indiatimes.com/2012-11-09/india/35015981_1_protest-land-acquisition-fertile-land-government-land
http://articles.timesofindia.indiatimes.com/2012-10-31/jaipur/34836689_1_land-owners-larr-bill-land-acquisition
http://en.wikipedia.org/wiki/Land_Acquisition_and_Rehabilitation_and_Resettlement_Bill
-Dickins John

Tuesday, November 6, 2012

Growth Potential: Rural Market


                   It is true that 70% of India’s Gross Domestic Product (GDP) is contributed from the urban part of the nation. But what about the rural population, that constitutes 70% of India’s aggregate population?  The rural market group offers an extremely strong potential for growth.
                   India still being an emerging market is on its way to become a major economic power, promising great sustainable industrial growth with compatibility in being environmentally friendly. All left behind, there are still major challenges being faced by the Indian economy-400 million people in India are not connected to the power grid, and more than 800 million are in the need for basic healthcare utilities.
                    The rural-contribution deficit in enhancing the economic growth is faced with barriers; top in the list being the lack of infrastructure services in the rural regions. Villages are sparsely populated and located with minimal infrastructure provisions, with most of the villagers solely relying on the agriculture production. Clearly, better distribution efficiency is imperative for sustainable and profitable growth in the Indian rural markets. 
                  Consider the telecom industry- India is one of the world’s fastest growing telecom sector, with the second largest wireless connectivity; though this peculiar scenario of the telecom industry, India has an untapped market on the rural level, which promises rapid growth in the rural uplift of the nation. Tele-density in the urban regions was nearly 75% as compared to 13% in the rural areas (in 2006); this rapidly widening divide between urban and rural tele-density can be attributable to the barriers that conflict towards the development of the telecom services in rural India, such as the uneven population spread and the huge network coverage required, which requires higher investment costs. These forbidden and untapped regions are being focused through various initiatives being implemented by the stakeholders.  “Wireless is the only way to reach corners of India”- Technologies like HSPDA, WiMAX, UMB, and LTE will play an important role for connecting rural India.
            The Government has been structuring the telecom regulatory environment in India since the incubation of the TRAI in 1997. Roaming charges will no more be applicable-most of you viewing this would have heard about it lately; the National Telecom Policy 2012 has been elegantly articulated taking corrective measures on the backlogs of the previous telecom policies and has aimed to boost transparency and revive growth in the telecom sector. The primary objective of this policy is to provide availability of 'affordable and effective communications' to the citizens. Rather than the direct revenue generation, which now shall be the secondary objective, directed by this policy.
                 The bottom line to this post conveys that the growth potential of the rural community in India can change the paradigm we live in and can serve the nation’s wealth by creating jobs, improving service delivery within and around the rural market, improving the macro-economic reputation of India. To enjoy a rapid growth in such markets, the rural market development must be persuaded, not just by the political decisions, but also through an entrepreneur’s perspective, looking to benefit every untapped opportunity. 

(References:
http://www.medianama.com/2012/06/223-indias-new-telecom-policy-2012-whats-changed-additions-omissions/)

-Abhishek Deshpande

Monday, November 5, 2012

Phnom Penh: Some (two-rupees) Musings

Today's class prompted me to think along these lines.

 Phnom Penh Water Supply Authority (PPWSA) deserve praise for their efforts.

In 1992 it provided poor-quality piped water at very low pressure (0.2 bar) for only 10 hours per day to only 20% of the city's residents. Non-revenue water was extremely high at 72% due to illegal connections, manipulation of bills and physical leakage. Tariffs were extremely low, there was no metering and less than half of the amounts billed were collected. Staff were underpaid and demoralized. The utility then underwent a dramatic turnaround: Staff engaged in corrupt activities were fired, bill payment was enforced, illegal connections were regularized, metering was introduced and the utility gained autonomy from the municipality in financial and personnel matters. In the next fourteen years the customer base multiplied by nine reaching over 90% of residents, service quality improved from intermittent to continuous supply of safe drinking water at good pressure of 2 bar, and non-revenue water was cut to only 6%. Tariffs were increased and the utility went from being bankrupt to making a modest profit. It now has motivated, well-paid staff. According to one observer, in 2012 its "public image is excellent". The key to its success laid in "leadership, professionalism, integrity (and) commitment" as well as "community participation and information sharing (...), good governance, transparency and accountability.  (read more here)

So, does that answer the question regarding whether this can be replicated elsewhere?

Perhaps an easier way to understand this would be with a (rather painful) sports analogy. Apart from Shiv Sundar Das (2 Test match centuries; both against Zimbabwe; both at Nagpur; identical number of boundaries), no other example comes to mind of batsmen being able to reproduce a carbon copy of their efforts. Everything might click on a certain day, while it can all go wrong the next day, despite attempts to ensure that the circumstances are similar.

That precisely is the problem. It is easy to conduct financial analysis in the comfort of one's rooms with advanced modelling software - but the complex social milieu which consists of several inextricably intertwined factors (social, cultural, political, geographical to name but a few) make it extremely difficult to replicate real world situations. What the crude cricketer-example (no offence to S.S. Das) tries to illustrate is that (and I am purloining cricket commentator terminology) 'On any given day, anything is possible'. The best laid plans of mice and men often go awry.  

So, is it then possible to model a solution based on the experience in Phnom Penh, considering how certain things are beyond (even) our control?

That is probably not the question to be asked since such model-based solutions impinge on the space for creative and novel solutions. It is also not just a case of being dealt the best possible hand. A more relevant factor is how one looks at the options available, assesses the risks involved, and perhaps most crucially, plays the cards one is dealt. It can pay off- and people will praise you; or you can end up with egg on your face- and people will vilify you. But ultimately, if you don't sit at the table and ask for the cards to be dealt, you will never know the outcome. It is better to have lived and died than to have not lived at all.

Then what can be learnt from this experience if everything boils down to a high stake game of cards?

Well, (and this is the dodgiest argument of the lot) human resilience in the face of atrocious social conditions, coupled with the exemplary leadership of Ramon Magsaysay Award winner (2006) Ek Sonn Chan, can be seen as that perfect mix of elements that should encompass a successful project (apart from the numbers and economic projections; not to mention the expectations attached to the project). Without Ek Sonn Chan at the helm to orchestrate everything, would everything have panned out the way it did? As mentioned in class, (the delays in the Chennai Metro Rail Project), problems arise in the absence of such a maestro who can pull the strings and ensure steady progress. Capacity building should thus be a priority: Not just for any such singular attempt to be successful, but also to ensure that in the larger scheme of things, the institutional setup is in place to assure the success of future endeavours across all fields. Even if one particular project does not meet targets, a highly motivated and dedicated skilled workforce will be an embarrassment of riches and will never amount to surplus- if you play your cards right.

-Ranjeet

Sunday, November 4, 2012


Ask not what you can do for your country, just shoot…



I came across this article the other day in the Economic Times, highlighting concerns over the toll collection systems generally implemented under BOT models in the transport sector. 



Although the article mainly discusses the larger issue of benefits of these revenue collection systems, I believe the inexplicable actions of an elected representative should not go amiss. As I read this, John F. Kennedy’s famous words come to mind” Don’t ask what your country can do for you but what you can do for your country”, a stark irony in comparison to the existing sentiment in our dearest nation.  At various points we have asked ourselves as to what exactly is India’s problem? What is this seemingly incurable disease that threatens almost every project into the abyss of unending chaos? I believe this general sense of lack of patriotism and national sentiment is part of this larger issue.  In over 60 years of post-colonial independence and democracy, we have managed to completely forget the fundamental principles on which our freedom struggles were founded on.  In the fourth module, we have predominantly been looking at a bird’s eye view of project governance and policy issues. However, I believe the need is for a more bottom up approach, to ensure the compatibility and implementation capacity of all developmental initiatives, infrastructural or otherwise.