Monday, November 30, 2009

IIPM News - Joota Maro Andolan

Machendranath Suryavanshi
Joota Maro Andolan

Machendranath has become an idol for people who either throw or approve of throwing shoes at corrupt babus and despotic leaders. When the Iraqi journalist hurled shoes at President George W. Bush months ago, a detachment from FBI flew down to India to question Machendranath as to whether he was any way connected to the incident or had inspired the Iraqi journalist. A resident of Latur district in Maharashtra, Machendranath started it when a corrupt official asked for money to transfer in his name the land that has been allotted to him. In no time, Machendranath started getting nationwide acknowledgement.

To give it a rather all-India feel, he shifted to Jantar Mantar in April, 2006. He has continued his crusade against corrupt bureaucrats since then. His demand is dismissal of corrupt officials. “When I came to Delhi three years ago, I was alone. Today, many organisations and individuals have lent me support and are in some ways or other associated with me. People who come to protest in Delhi offer me moral support,” says the man.

He has a future course of action prepared. “I am currently preparing a list of corrupt officials. And it will be followed by a shoe-lobbing spree,” he says rather candidly. Well, babus better watch out.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative



Friday, November 27, 2009

More Fireworks!!!

India is still not ready to fight fire at large scale

The pink city of India was engulfed by fire on October 29. Thanks to the fire that broke out at the Indian Oil fuel depot. This massive fire at IOC’s Sitapura unit killed more than eleven people (the death toll is expected to rise, as search for the bodies are still on!) and led to a direct loss of Rs 500 crore. Not only the factory but the nearby areas also felt the heat. The fire was so intense that even the fire-fighters were unable to reach the ground zero and limit the loss. So much so, that the temperature of the site and its vicinity rose by staggering 7 degree celcius. Horrifyingly, neither the IOC’s fire fighting system nor the state’s fire-fighters were able to minimise the blaze.

This incident is not one of its kinds but actually is in line with numerous similar incidents that occurred in the recent past. Fire outbreak is not any jaw-dropping phenomenon but is actually an annual affair. To put things into perspective: how can one forget fire that enveloped the Haldia Petro’s naphtha plant in July this year resulting to a loss of over Rs 300 crore! Last year, more than 2000 shops were reduced to ashes at a wholesale market (Nandram market) in Burrabazar, Kolkata. The fire lasted for nearly a week despite the efforts by 300 firefighters. Almost every year, Burrabazar witnesses similar fire events. In another incident, in July 2005, number of people died due to fire outbreak in Mumbai High. A devastating fire at the ONGC platform at Mumbai High destroyed the Bombay High North platform, which used to produce 80,000 barrels of oil every day - boils down to 1,27,17,600 litres of oils every day!! As per industry estimates the financial loss was upto the tune of Rs 35,000 crore. Beside these major incidents, numerous other fire hazards happen round the year. Be it a fire explosion at cracker factory or the infamous fire at a Kumbhakonam school (killing 75 children) or oil pipeline blast in Assam or similar other events. Most of the accidents that happen are a result of human error and ignorance. Thus, in spite of state-of-art fire fighting techniques, these bizarre incidents takes place every now and then across the length and breadth of the nation. To minimise losses due to fire hazards, we must ensure that population are kept well outside the vicinity of these units - especially outside the vicinity of oil related units. But then, above all we must ensure and put in place a highly and comprehensive (encircling all possible units/departments of a company) fire fighting system to reduce the probability of such human-error-based-fire-hazard! Furthering this initiative, government must make these laws mandatory and legally abiding as well. Other wise many more similar incidents will lead to many more unwanted fireworks!

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative



Thursday, November 26, 2009

Chicken scam busted

Chicken traders involved in multi-crore tax rip-off

Chicken may become dearer in Kerala after the officials busted the multi-crore Nadupunni tax evasion fraud. The authorities cancelled registration of some 12 chicken traders after coming to know that they were issuing fake cheques towards advance tax in the guise of pay orders.

This will have an adverse impact on the local chicken market, resulting in spiralling prices. Kerala is the only state where tax is levied on chicken and they are mostly transported from Tamil Nadu.

The number of vehicles carrying poultry has been reduced after the Kozhinjampara incident. The police seized some trucks that were transporting chickens from Tamil Nadu through by-routes without paying taxes. The seizure was part of an operation to root out corruption at Naduppuni checkpoint on the Kerala-Tamil Nadu border in Palakkad district and the Muthanga checkpoint in Wayanad. Some chicken traders, officials and fake document makers were involved in the tax rip-off.

The modus operandi was simple: Cheques were issued in the guise of pay orders and were handed over as advance tax for vehicles transporting chickens from Tamil Nadu and Karnataka to Kerala. After that they were forwarded to the Treasury from where they were presented at State Bank of Travancore (SBT), Chittur, and then sent by post to Palakkad.

From there they were parcelled to the clearing house and then to the issuing banks. The process was cumbersome and would take 30- 45 days. This was exploited by the fake cheque mafia. Official sources say the SBT is to pay around Rs 16 crore to the government. The loss incurred by Muthanga checkpoint is reported to be Rs 8.5 lakh. The branch manager of the Chittur branch of State Bank of Travancore has already been suspended for not releasing cheques on time. Some 30 officials have been suspended.

Learning a lesson from the fraud, the government is now busy putting in a foolproof mechanism so that tax evaders can by fixed. Hoping to rectify their mistakes, the government has again introduced demand draft system for transportation of chickens through checkpoints.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Wednesday, November 25, 2009

Delhi set to charge the maoist Red rag

Operation Tri-Junction to involve 7,000 commandoes, pramod kumar reports

P Chidambaram is known for maintaining a regular report card of the ministry he is concerned with. More often than not, they reflect the real situation in the ministry. Therefore, it is not surprising that last week during a Cabinet meeting on security, he admitted that in the last three years, Naxalism has made its presence felt in as many as 20 states and 223 districts. Their spread runs through the jurisdiction of nearly 2,000 police stations. Calling it “a matter of grave concern”, the Union home minister also added that it will take anything between 11 and 30 months to considerably lessen their influence. In good measure, while complaining about non-cooperation from certain state governments, he also confirmed the finalisation of a new strategy to deal with this problem. It has been curiously named “Tri-junction”. The strategy includes planned deployment of Central forces in the affected region.

In the meeting, Prime Minister Manmohan Singh was of the belief that strong-arm tactics alone will not work in this particular case. There is more to this matter than mere law and order or security, he added. Singh stressed that the Adivasis did not find themselves benefiting from the developmental projects and the trickle down effect has gone missing. This has led to a massive imbalance in the developmental index. He also inquired about the status report on the implementation of the provisions of Forest Rights Law. He was promptly told that the respective state governments did not take the matter as seriously as it was ought to be taken.

For example, as many as 2.5 million tribals from all over the country had asked for ownership right over land. Three years have passed from the day the demand was raised. Only half a million tribals have got ownership rights. The data coming in from West Bengal, Chhattisgarh, Jharkhand and Madhya Pradesh is startling and appalling at the same time. The Prime Minister was of the belief that if the state governments implemented the provisions of the law positively, it would help in considerably blunting the angst that tribal have against their respective state governments. It will, at least, make them view their governments as non-hostile entities. A meeting of all chief ministers has been called to discuss the nuances of the matter as also the roadblocks in the implementation process.

According to the minister of state at the PMO, Prithviraj Chauhan, the PM has directly intervened in matters concerning escalating incidents of violence by the Maoists. Talking to TSI, Chauhan stressed that on the matter of Maoism, the PM advocated a clear-cut strategy that is two-pronged. “He has made it amply clear that only policing won’t do and we need to make sure that tribals benefit from development. If tribals are happy, it will become extremely difficult for Maoists to lure them,” he said.

As far as the Centre is concerned, it has kickstarted the “Tri-Junction” programme which will include intense combing of the Naxalite-affected areas of Andhra-Maharashtra-Chhattisgarh, Orissa-Jharkhand-Chhattisgarh and West Bengal-Jharkhand-Orissa. Apart from the 40,000-odd personnel of Central forces, as many as 7,000 commandoes, specially trained by the Army in jungle warfare, will be deployed.

Heeding the special demand by the state governments, the Union home ministry has agreed on a sum of Rs 153 crore that will be used for modernisation of police forces. Chidam-baram has suggested to the chief ministers of West Bengal and Orissa to ask the Maoists to first renounce arms and then come forward for talks.

Former chief minister of Madhya Pradesh and Congress general secretary Digvijay Singh has also sent some suggestions to the PMO, citing his prior experience as a chief minister. The suggestions include amendment in the Forest Act of 1927 that will allow tribals to put their trees as mortgage items against loans. Another suggestion is amendment in the Mining Act of 1957 that will allow a share to the real owner, apart from the royalty rights of the current owners. Third and the most important is the change in the Land Acquisition Act that will assure regular monthly payment for few years to the tribals whose land are acquired. This is besides the lump sum payment they will receive as compensation. Talking to TSI, Singh confirmed that the Prime Minister has taken his suggestions positively and has forwarded it to the ministry concerned. Singh also stressed on strengthening of local bodies in the tribal belt.

On the other hand, CPM’s Mohammad Salim says that it will be callous to single out the West Bengal government for a dressing down. According to him, these incidents stem out of disenchantment and all the state governments have to work closely to deal with the situation.


For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative


Tuesday, November 24, 2009

Use of force a cardinal mistake

The govt has walked into the Maoist trap, writes dr. Sharit K. Bhowmik

The incidents in Lalgarh bring to light the chaotic situation created by the government in trying to control a handful of Maoists. The modern State is the most powerful institution because it controls all aspects of its citizens' lives. Moreover, it has the monopoly over the use of coercion. The State is therefore expected to provide a peaceful atmosphere where its citizens can live and work with freedom. Unfortunately, the reality is quite different.

The bloody outcome in Lalgarh confirms what I had feared in an article in the Bengali edition of this magazine just when Operation Lalgarh began. The State’s violence, I had written, would push common people into the Maoist fold. The State beats up, arrests and punishes people who may not be Maoists or even support them. Following their experience, they invariably start hating the State. The State walks into the Maoist trap.

Unfortunately, Left-ruled West Bengal looks after affluent people alone while its benevolent role towards the working poor becomes increasingly invisible. The State is oppressor to the toilers. In urban areas, slum dwellers and vendors know of the State and its officials as entities that extort money from them or frequently deprive them of their dwellings or their livelihood.

Over the years, especially post-liberalisation, the state has withdrawn from areas where it should have intervened. West Bengal is no exception. The public health system is in shambles as district hospitals do not have basic facilities. Poorer patients from the districts flock to state-run hospitals in Kolkata. The parallel private hospitals remain inaccessible to the working poor.

The education system has witnessed similar degradation. Government-run schools are in a mess. Most schools in rural areas do not have infrastructure, including school buildings, classrooms, furniture or even books and blackboards. Teachers are mostly appointed on the basis of their political affiliation. Imperatives like provision of drinking water, agricultural inputs to small farmers, irrigation facilities and land redistribution to the rural poor are shelved.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative