Wealth Creation or Crony Capitalism?

from nano to sezs; from aviation to telecom, india inc. is a tale of state patronage

Some time during 1998, the media went into a tizzy. For the unthinkable had happened. First, the Delhi Police raided the office and residence of the Group President of Reliance Industries Ltd. V. Balasubramaniam. There were allegations that Balasubramaniam (or Baalu as the legendary lobbyist of the late Dhirubhai Ambani was famously known) had ‘violated’ the Official Secrets Act. Then again, officials of CBI raided the office of Reliance at Nariman Point in Bombay and even the fabled residence of the Ambanis called Sea Wind. All sorts of rumours flew thick and fast at that time. There were dark whispers that Baalu was in trouble because someone finally had the guts to nail him for getting access to the Union Budget even before it was presented to the Parliament. Most business journalists presumed that to be true; even though the allegations have never been proven. More than the raids, it was the political context of the time that had raised eyebrows across all and sundry. A government led by the BJP with Atal Bihari Vajpayee as Prime Minister was ruling India. Hacks, lobbyists and pundits were writing and talking extensively about how the rise and rise of the BJP and the decline and fall of the Congress had dealt a crippling blow to the ‘connections’ that Dhirubhai Ambani could boast of in New Delhi. Many had thought that the salad days of Reliance Industries, when it comes to getting ‘favourable’ back door benefits from the government at the centre were over.

They were conclusively proven wrong. It was under a BJP-led government in 2001 when Reliance made a classic back door entry into the mobile telephony sector of India – without a valid license! Mobile phone service providers like Bharti cried foul and loudly complained against this unfair treatment and asked for a level playing field. The matter went to the Supreme Court and Reliance was effectively given a back dated license after it agreed to pay a license fee. Then again in 2008, rivals cried foul when Reliance Communications, now led by Anil Ambani, was given licenses for launching GSM services across India. This time under the UPA government, but as we said, that debate is no longer relevant. 

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Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM - FLP (Flexi Learning Program)

From CM to PM in one jump?

Mayawati is now eyeing to become the Prime Minister. Her records show that it would be difficult to stop her

Uttar Pradesh Chief Minister, Mayawati was never known for her courteous or suave behaviour. She always had a reputation of being an arrogant and ruthlessly ambitious politician. She recently added another chapter to her reputation by refusing to lend land for construction of a Rail Coach Factory (RCF) in Rae Bareli – the parliamentary constituency of UPA Chairperson, Sonia Gandhi – barely two days before Sonia Gandhi was supposed to lay its foundation stone. Though she returned the land to railways five days later – primarily because of a new legislation that authorises Railways to acquire any land for development purpose – she once again demonstrated she cared two hoots if she needed to prove a point. In fact, she baffled political observers in 2003, when after falling out with coalition partner, BJP, within a year of taking over as CM, she decided to dissolve the State Assembly. The BJP then propped up her bête noire, Mulayam Singh Yadav as CM. An unfazed Mayawati, bereft of trappings of an official post – campaigned hard for three years and secured a clear majority on her own in 2006. People might wonder about sagacity of her political decisions, but she is never in doubt about what she was doing and the consequences.

Her fourth innings as CM was bound to be stormy and more ruthless than ever since this is the first time her government didn’t need BJP’s crutches. She started off by ordering inquiries into decisions taken by Mulayam Singh. But that was just the beginning. As Left Front withdrew support from the UPA government at the Centre and Mulayam’s party extended support to the UPA, Mayawati seized the “opportunity of her life.” In the run up to the Vote of Confidence at the Centre, she found a host of leaders – from Left stalwarts Prakash Karat & AB Bardhan to TDP’s Chandra Babu Naidu and from Janata Dal (S) Chief, HD Deve Gowda to Rashtriya Lok Dal Chief, Ajit Singh, queuing up at her doorstep.

Read more.......

Source : IIPM Editorial, 2012.

An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM - FLP (Flexi Learning Program)

Renewed rhetoric

ANIL PANDE says that the Madhya Pradesh CM is trying to win on the development plank. But his critics say that the strategy, if not inclusive, can prove to be worthless

Last year, in October, when corporate honchos were inking deals at the Indore Global Investors Summit, a substantial number of activists were protesting near the bust of Mahatma Gandhi at Regal Crossing, not far away from the investment summit. Among others, they were joined by activists from Narmada Bachao Andolan, and displaced farmers and tribals, who lost their land due to development projects in Neemach and Riwa districts. Needless to say, their feeble voices had no takers. The voices of the investors were amplified by the promised investments of Rs.120,000 crore.

The reason: in the last couple of years, development and good governance have emerged as vocal election planks. The days of ‘social engineering’ and ‘booth management’ have passed. Now, even people voting along caste lines expect a certain level of governance from their elected representatives. And, for a change, “governance” is determined on the basis of overall development. Poll pundits predict that as more youth participate in the electoral process, the development plank will continue to take a frontal position. At present, more than half of India’s population is constituted by people under-25 years.

In fact, development was one of the reasons why the BJP returned to power in Madhya Pradesh. Poor infrastructure did Digvijay Singh-led Congress government in. But now, the tables have turned. The BJP has completed four years in power. What’s more, development will once again be the frontal rhetoric in the forthcoming polls. Naturally, the BJP is worried. It wants to present a good report card to the voters. It wants development and the only way it can be done, says the BJP, is by inviting foreign capital.

That is why CM Shivraj Singh Chauhan is busy with his single agenda program. He has been successful in signing MoUs for projects worth more than Rs.225,000 crore in 2007 alone. Noted economist Alok Puranik finds foreign capital as the only way to initiate developmental projects in the state. Nevertheless, he wants the development to be inclusive. He predicts: “State governments focusing on investments in agriculture and manufacturing sectors have strong chances of returning back to power.”

Read more.......

Source : IIPM Editorial, 2012. An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
 
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links  
IIPM : The B-School with a Human Face