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Hillary Visit:HISTORIC, OVER-ARCHING DIPLOMACY,Prof. Chintamani Mahapatra, 22 July 2009 |
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Round The World
New Delhi, 22 July 2009
Hillary Visit
HISTORIC, OVER-ARCHING
DIPLOMACY
By Prof. Chintamani
Mahapatra, JNU
After months of near marginalization,
the Obama Administration sprang a pleasant surprise by sending Secretary of
State Hillary Clinton to India
on a five-day visit. This trip is as important as the five-day path breaking
visit paid by her husband President Bill Clinton in March 2000 to India.
The significance of this visit is clearly
reflected in the fact that never before in history has a US Secretary of State
come to India for such a long duration of time; met with such a vast
cross-section of people, come with such wide-ranging agenda items and signed
three significant agreements. Never before a top US administration official was so
warmly greeted by the business community, academia and political leaders and
threw so much positive energy into the bilateral relations, as Hillary Clinton
did.
During her visit, Hillary announced
a firm date, 24 November, for the first State invitation to a head of government
to visit the White House. Although many commentators alluded to her skipping India during her maiden visit to Asia as
Secretary of State and complained that she put only China
and Indonesia
on her itinerary, this July visit here more than compensates what she would
have missed.
One of the newest initiatives of
Secretary Clinton during her visit was to go beyond traditional meetings with
the Government officials and engage in over-arching public diplomacy. Significantly, she chose to land first in the
nation’s finance capital, Mumbai, and interacted with business tycoons, such as
Mukesh Ambani and Ratan Tata.
It signified the need for an Indo-US
economic cooperation at a time of global recession and unprecedented US economic
crisis. Apparently, India’s
economic success stories in recent years and a positive growth rate amidst the recession
has drawn the US’ attention
to the need for a more robust engagement with India in trade and investment
cooperation.
More importantly, India has of
late become one of the largest arms bazaars in the world. Its intention to buy
126 fighter aircraft is a business involving billions of dollars. The American companies,
particularly Lockheed Martin and Boeing have shown much interest to sell their aircraft
but they of course would have to compete with Russia and a few European
countries.
However, the Obama Administration views
the ‘126 deal’ as a timely effort that could partly assist meeting the current
crisis in its national economy. But this would not be possible, unless the two
countries sign an “end-use-monitoring” agreement that would ensure that the US equipment
and technology would not be diverted to unintended sectors or destinations
abroad. Indeed, Secretary Clinton was able to persuade New Delhi to sign such an agreement.
Like the 126 deal, implementation of
the 123 Agreement, relating to the civilian nuclear cooperation too has the
potential to uplift the US
economy. It so happens that while the American nuclear industry has been in
doldrums, India’s
nuclear energy market is worth over $30 billion. Moreover, successful US-Indian
nuclear energy cooperation has the potential of creating about 20,000 jobs in
the US.
There were, however, anxious moments
in certain quarters in New Delhi that the Obama
Administration could soft-pedal the 123 Agreement and some even went to the
extent of reading the G-8 summit statement on non-proliferation as an additional
pressure on India
to sign the NPT and CTBT. But Secretary Clinton made it amply clear on Indian
soil that the US
is very much interested in timely implementation of the 123 agreement. India, on its part, announced two places —Andhra
Pradesh and Gujarat—as nuclear energy parks earmarked for the US companies to
set up power generating nuclear reactors.
Two other important highlights of the
Clinton
initiatives to make US-Indian relations broader and deeper were in the field of
educational and agricultural cooperation. Her interactions with college
students both in Mumbai and Delhi
were unprecedented efforts by the US State Department to engage directly with the
Indian public.
These steps were intended to generate
goodwill for the US
among our masses. The UPA Government’s pro-farmer policies are by now well-known
and by proposing agricultural cooperation between the two countries, Clinton sought to touch an
issue which would relate directly with the Indian masses.
This apart, an international issue
that bitterly divides the two nations, is that of climate change. India along with other developing countries
opposes an effort by the US
and other advanced countries to put a compulsory cap on carbon emission.
Hillary Clinton has sought to convince New
Delhi the need for a compromise solution before the
Copenhagen Summit of this December. While no concession appears to have been
made so far, this being a multilateral issue, the two countries need not lock
horns beyond a certain point.
Yet another major issue that was
addressed by Secretary Clinton was Indo-Pakistan relations and terrorism. Clinton urged India
to assist Islamabad
in combating terrorism. While New
Delhi has been in the forefront of fighting terrorism
in the region, it is concerned about official Pakistani connection with
Pakistan-based anti-Indian terrorist networks. And as such, the UPA Government had
announced that it was unwilling to restart the composite dialogue process with Pakistan,
unless the perpetrators of Mumbai 26/11 were brought to justice.
Significantly, a few noteworthy
developments took place a little before Clinton
arrived and during her stay. Prime Minister Manmohan Singh met his Pakistani
counterpart in Egypt
and a joint statement was issued. Islamabad
showed some evidence that it was taking appropriate steps to apprehend the
alleged culprits of 26/11. It then admitted that the LeT was involved in 26/11
terrorist attack in Mumbai. In addition, Kasaab, the lone surviving and
captured terrorist suddenly confessed that he was part of the whole conspiracy
to strike Mumbai on 26 November 2008.
Importantly, all these developments
must have pleased the US
Secretary of State. Overall, it turned out that the visit resolved many doubts
about the Obama administration’s approach towards India. The apprehensions that this
administration would not walk the extra mile to further elevate the
relationship with India,
from where his predecessor had left, proved to be misplaced.
While Condoleezza Rice characterized
India as an emerging global
power, Hillary Clinton engaged India
as one of the major global powers. This recognition and the intention to engage
India
in a strategic dialogue make it evident that the bilateral relationship is on
the right track. --INFA
(Copyright,
India News and Feature Alliance)
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Ayurveda Goes Digital:SAFEGUARDING PIRACY BY WEST, by Suraj Saraf,21 July 2009 |
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Sunday Reading
New Delhi, 21 July 2009
Ayurveda Goes
Digital
SAFEGUARDING PIRACY
BY WEST
By Suraj Saraf
Two important developments have recently taken place for
streamlining practice of the Indian System of Medicine (Ayurveda, Siddha, and
Unani) and to curb massive copying of its long practiced formulations by the West.
Indeed, it comes as disturbing and shocking news that till now this piracy has
resulted in 15,000 patents of medical plants by the westerners. There would be
a threat of losing 2000 more every year.
However, in order to safeguard and curb this huge loss of
traditional medicinal knowledge of the country, a massive exercise has been
undertaken by the Union health department of AYUSH (Ayurveda, Yoga &
Naturopathy, Unani, Siddha and Homoeopathy) and the Indian Council of Scientific
and Industrial Research (CSIR) to document 2,33,000 formulations belonging to
ISM viz 81000 Ayurvedic, 1.4 lakh Unani and 13,000 Siddha formulations.
It has taken eight years of hard and dedicated work. Two
hundred scientists and researchers from the CSIR and the department of AYUSH
had scientifically converted information of traditional Indian medicine from
Hindi, Sanskrit, Arabic, Persian, Urdu and Tamil to five international
languages i.e. English, French, Spanish, German and Japanese. The CSIR has thus
created TKDL (Traditional Knowledge Digital Library), without which India would lose
1000 new patents every year.
In the past, patents have been granted by the European Patent
Office (EPO) on the use of 385 Indian medicinal plants such as papaya, Indian
long pepper, Kali Tulsi, Pudina, ginger, potato, isabgol, aaenla, jira, soyabean, tomato, almond, walnut and methi. Thus, New Delhi decided to ink a landmark agreement
with the EPO, so that TKDL’s database would be available to the patent examinees
at the EPO “for establishing prior art”, in case of patent applications based
on ISM.
However, the Traditional Knowledge Digital Library’s information
would be restricted only for patent research and examination purposes. The EPO
will not be able to disclose it to a third party. While New
Delhi will help EPO with search assistance, the latter will, once
every three months, inform India
about what information was used as citation from the Traditional library.
The patent battle however, is a long-drawn procedure. According
to CSIR’s Director-General Prof Samir Brahamchari, on an average, it takes five
to seven years to oppose a granted patent internationally and cost anything from
a whopping Rs one and three crore. Therefore, cost of protecting all ISM
formulations in the absence of TKDL, would be staggering and completely
unaffordable.
Thanks to the digital library, people will now think twice
before even applying for dubious patents. The library will ensure that
traditional Indian knowhow is safe, used by Indian companies for the benefit of
Indians. Till now AYUSH has documented 8,1000 Ayurveda, 1.4 lakh Unani and 13,000
Siddha formulations. Encouragingly, the TKDL has also become a model for other
countries wanting to defend their traditional knowledge from misappropriation. South Africa, African Regional Property
Organisation, Mangolia, Nigeria, Malaysia
and Thailand have already
asked India
to help them replicate TKDL.
The decision to create the library was taken in 2001 in the
aftermath of wrong patents granted by the US Patent and Trade Mark Office on
wound-healing properties of Turmeric and an antifungal property of Neem granted
by the European Patent Office, even though the plants were being used for
centuries under ISM for such benefits. Well, if TKDL had existed earlier, then the
country would have been spared the international disputes regarding patenting
of Neem, Turmeric and Basmati.
In a study conducted in 2004, the Americans had granted 4896
patents on medicinal plants, 80 per cent of which were of Indian origin. In a
study of 760 such plants, it was found that 850 patents never have been
granted. Over 300 to 500 such patents are granted every year, mainly due to
lack of access to documented knowledge in India.
In another important development, Ayurvedic doctors who do
not possess requisite qualifications prescribed under the Indian Medicine
Central Council Act (IMCCA) can not practice anywhere in India as they like, as
per a Supreme Court ruling in the first quarter of the year. The judgement came
in a case wherein Ayurvedic Enlisted Doctors’ Association had challenged the Maharashtra
Government’s decision to prosecute those practicing Ayurveda without being registered
with the IMCCA.
The plea of the appellants in the case was that they were
registered as practitioners under the Bihar Development of Ayurvedic and Unani System
of Medicine Act and argued that though they did not hold any degree or diploma
or certificate of any recognized institution, they possessed sufficient
knowledge and skills requisite for educational practice of medicines and
surgery.
However, according to the Supreme Court if the Ayurvedic
practitioners are registered in a particular State they could not automatically
practice in other parts of the country too. Such doctors can only practice in
other parts of the country provided their qualification is recognized under the
IMPCO, said a supreme court Bench of Justice Arijit Pasayat and Justice
Mukundakam Sharma.
Under section 15 of IMPCCA the right to practice anywhere in
the country is restricted and permissible only if the name of the practitioners
finds places in the central register as per the qualifications prescribed under
section 2(1)(h) of IMPCCA. Section 8(1) (h) prescribes the qualifications and
institutions recognized by the Council for the purpose of imparting training in
Ayurveda.
The Apex Court
rejected the argument that such restriction violates the Fundamental Right
under Article 14 of the Constitution i.e. no discrimination between citizens.
The appellants had argued that they fulfilled the conditions imposed by the
regulations of Bihar
State and their names
were entered in the Bihar State Council’s register. As such Maharashtra
government could not ban their practice on the ground that their names were not
registered in the IMPCCA, as such a restriction violated Article 14 of the
Constitution. But the Apex court rejected the plea saying that under article 19
(6) of the Constitution, the government can always put “reasonable restrictions”
on a citizen’s fundamental right.
With the Ayurvedic practitioners getting a legal dose, there
is a growing confidence that the 5,000-year-old Indian traditional system of
medicine is getting the attention it deserves. After all Ayurveda is gaining
the reputation of being one of the most important systems of mind-body medicine
and natural healing.—INFA
(Copyright,
India News and Feature Alliance)
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Drought Situation “Serious”:CENTRE ASSURES AID TO STATES, by Insaf, 23 July, 09 |
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Round The States
New Delhi, 23 July 2009
Drought Situation
“Serious”
CENTRE ASSURES AID
TO STATES
By Insaf
Acknowledging that the monsoon situation was “very serious”
in the food bowl of the country, the Centre has finally assured financial help to
drought-hit States. While the Finance Ministry is preparing a back-up plan,
affected States would need to start identifying pockets of distress and declare
“drought conditions” to get assistance. So far Punjab
has had a 60 per cent rain shortfall, with 40 of the 71 districts close to
drought. Bihar
has had only one-third normal rainfall with 38 districts mostly going dry. The
other States hit badly include Madhya Pradesh, Haryana, Rajasthan, Orissa,
Uttarakhand and Chhattisgarh. There has been a critical delay in sowing of the
Kharif crops like rice, groundnut, soyabean and cereals and the power shortage
has added to the farmers’ woes.
Chances of monsoon revival look bleak and the rain clouds
may well pass through July too. In fact, even the North East has had a record
rainfall deficiency in three decades. Nagaland has had 67 per cent less
rainfall, Assam
34 per cent and Arunachal Pradesh 29 per cent. Incredibly, enough, Cherapunji,
the wettest place on earth, has had less than half its share of rainfall! While
the Government has already put a ban on export of foodgrains, it has assured the States of raising their respective allocations
under the National Food Security Mission and the Rashtriya Krishi Vikas Yojana.
Affected States have been advised to be flexible with the utilization of the
funds depending upon their plans.
* * * *
Poor Show of NREGS
In States
It’s now official. The much-touted National Rural Employment
Guarantee Scheme (NREGS) of the UPA Government is not delivering. A large
number of States have not been able to provide the near full employment for a
full 100 days. Figures given to the Lok Sabha by Minister for Rural Development
CP Joshi reveal that only nine districts in the North East provided the
requisite employment. Worse, States, including Maharashtra, Madhya Pradesh, West Bengal, Orissa, Kerala and Manipur were defaulters
and had to pay compensation. Interestingly, the Left-ruled Bengal,
which swears by its pro-poor image, shows a dismal rating of an average 14 days
of employment in 2006-07, 25 in 2007-08 and 26 in 2008-09. Adjoining Bihar’s report card is similar with the average number of
days being 35, 22, and 26 for the same period. Has poverty declined or is it that
figures are fudged? Time for the States to answer.
* * * *
Modi Gets A
Drubbing
Gujarat’s Narendra Modi has reason to
worry. The BJP has suffered a major upset in the Junagadh Municipal Corporation
election, with its rival, the Congress winning 26 of the 51 seats. Its own
strength has slumped from 35 seats to 21. Modi had made the elections, the
first since his party’s poor performance in the Lok Sabha, a prestige issue.
Party Ministers, MPs and MLAs all camped there for the campaign. The BJP even
distributed booklets of the Sachar Committee report --- which is otherwise
criticized --- to highlight how the Muslims were doing well in Gujarat. The party even went in for its first-ever
experiment in Gujarat of fielding five Muslims
with an eye on the 15 per cent Muslim vote bank.
Apparently, Modi’s experiment of discarding the hardliner
hindutva image has failed to work. He even removed 29 of the 35 sitting BJP
councillors and put up new faces. Of these all the five Muslim candidates lost
badly. Nor did the fresh faces muster a majority. In fact, his calculated move
to woo the “nationalist Muslims” boomeranged and Junagadh with a traditional
hindutva votebank deserted the BJP. On hindsight, Modi also failed to see the
writing on the wall, after his party lost the Rajkot parliamentary seat, for the first time
in two decades. Is it the beginning of the end of the Modi era, as claimed by
Congress leaders. Guess, Modi will have to concentrate on State politics rather
than eye the national platform.
* * * *
New Incumbents In
Raj Bhavans
Last week saw a change of guard in five Raj Bhavans. Some
well-thought out planning appears to have gone into the appointments of the new
Governors. Retired civil servant B L Joshi, who was initially handpicked by 10
Janpath as Delhi’s
Lt Governor, was moved from Uttarakhand to politically-sensitive Uttar Pradesh.
Veteran Congress leader and a Constitutional lawyer Devendra Nath Dwivedi has
been sent to BJP-ruled Gujarat. Margaret Alva,
who lost the recent parliamentary elections, has been accommodated in
Uttarakhand. Congress veteran and former Rajasthan Chief Minister Jagannath
Pahadia, is the new governor of Haryana. Yet another Congress old hand Sibtey
Razi has been shifted from Jharkhand to Assam
and likewise, K Shankarnarayanan from Nagaland to Ranchi. With these posts taken, all eyes are
now on the prized Governorships of Maharashtra and Goa.
* * * *
BSP-Cong War In UP
Hots Up
The turf war in Uttar Pradesh between the Congress and
Mayawati’s BSP continues to get uglier. Back in her ransacked and burnt house
in Lucknow, State
Congress Chief Rita Bahuguna Joshi, who is out on bail has warned of launching a
statewide agitation against the “high-handedness” of the UP Government. Her and
Rahul Gandhi’s regret over the comment “Will Mayawati settle for a compensation
of Rs 1 crore if she were raped,” appears to be best forgotten. Importantly, she
has lodged a fresh petition in the Allahabad High Court seeking a CBI inquiry
into the arson at her residence. The move is obviously aimed at exposing
Mayawati’s wayward ways-- of rewarding a trusted worker, Lucknow BSP chief
Intezar Abidi Hussain, accused in the same case. On Sunday last, Behenji appointed him as Chairman of the Lal Bahadur
Shastri Ganna Kisan Sansthan, which entitles him to a Minister of State rank, a
monthly salary of 30,000, an official car with a red beacon and security guards!
Who will have the last laugh?
* * * *
Batla House Lie
Nailed
The communally-motivated controversy over the Batla House
encounter in Delhi
a week after the serial blasts in the Union Capital last September has
mercifully been laid to rest. The National Human Rights Commission has given a
clean chit to the Delhi Police, stating that “the police party engaged in the
encounter had fired at the alleged terrorists in self-defence.” Remember, two
Muslim youth, Ameen and Saijid, occupants of a flat in Batla House, were killed
in the encounter. The Commission conducted the probe on a complaint of NGO Real
Cause questioning the police vision and asserting that it was a plot to malign
the Muslim youth. The Commission has also held that Inspector Mohan Sharma, who
died leading the encounter, was killed by the terrorists’ bullets and not as a
result of inter-departmental rivalry. A mischievous lie has been nailed.
---INFA
(Copyright,
India News and Feature Alliance)
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Chandrayaan-I Snag:SPACE AGENDA MAY NOT BE HIT, by Radhakrishna Rao,20 July 2009 |
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EVENTS & ISSUES
New Delhi, 20 July 2009
Chandrayaan-I Snag
SPACE AGENDA MAY NOT BE HIT
By Radhakrishna Rao
The snag that hit India’s
ambitious maiden lunar mission, Chandrayaan-1 resulting in the curtailment of
the scope of some of the experiments and a possible reduction in its active
lifespan is by no means an isolated incident. Due to the uncertainties in outer
space environment, highlighted by violent fluctuations in temperature, many of
the deep space missions, including planetary probes meet their premature end.
However, sources in the Indian Space Research Organization (ISRO) say that
Chandrayaan-1, India’s
first deep space probe, has accomplished most of the mission objectives set for
it and the upcoming space projects will by no means be affected by the glitch.
What is that went wrong with the Rs 4,000-million
fully home-grown Chandrayaan-1 spacecraft featuring 11 mission payloads—five
Indian and six international? As pointed out by ISRO, the failure of the vital
star sensor designed to determine the position and attitude of Chandrayaan-1
spacecraft, detected on April 26, forced the space scientists to devise an
alternative strategy to keep the lunar probe in a “safe and stable mode”. As it
is, by looking at stars, this important sensor, which is basically an
electronic device, can determine the position of the spacecraft. The loss of
this sensor has been attributed to the excessive thermal radiation.
Following the loss of the star
sensor, ISRO activated the onboard gyroscopes, an electro mechanical system, to
stabilize the orientation of Chandrayaan-1 spacecraft. However, gyroscopes,
which are also used in IRS earth observation and INSAT multi-purpose spacecraft
constellation not only need regular intervention but are also far more
vulnerable to extremes of outer space environment vis-à-vis the star
sensor. ISRO has stated that “other than
the failure of the star sensor and one of the bus management units, the health
of the spacecraft is normal”.
All said and done, the use of
gyroscopes along with antenna pointing information and images of specific
location of the lunar surface for determining the orientation of Chandrayaan-1
spacecraft is considered far from foolproof strategy. Whether the failure of the
star sensor could lead to a reduction in the lifespan of Chandrayaan-1, no
clear-cut indications are available. However ISRO Chairman G.Madhavan Nair
points out that the life of Chandrayaan-1 is not dependent on the star sensor
but is determined by a number of factors including onboard fuel availability.
Even so, the loss of the star sensor
nudged ISRO to boost the orbit of Chandryaan-1 to 200-km from 100-km. This
exercise was aimed at sheltering the spacecraft in a “more benign environment”,
and in the process help reduces the extent of maneuvers which involve the use
of onboard fuel. However, the drawback is that the data and images transmitted
from this orbit will not be of “expected quality”. Incidentally, in early 2009,
when the temperature within the Chandryaan-1 spacecraft had touched 80 degrees Celsius,
the Indian moon mission had faced the problem of thermal heating.
Meanwhile, ISRO scientists have shared
good news that Chandrayaan-1 data is stored safely and images transmitted by
the lunar craft are received on a regular basis. However, of one of the Indian
payloads onboard Chandrayaan-1, the High Energy X-ray Spectrometer could not
accomplish its mission due to the low solar activity at the time Chandryaan-1
was placed in its 100-km orbit around the moon. For this, the payload is
dependent on solar radiance for its operations. But then as observed by Nair,
the three other Indian payloads --- the Terrain Mapping Camera, the Hyper
Spectral Imager and Moon Mineralogy Mapper --- have already collected much of
the data.
“We have completed 90 per cent of
the observation. Going by the orbital plans, nine months are enough to complete
the mission. But we decided on keeping the mission on for 18 months and set
satellite’s lifespan for two years,” explained a confident Nair. The other
Indian payload, the Moon Impact Probe (MIP) weighing over 30kg with Indian
flags painted all around, made a successful crash landing on the lunar surface
on the night of November 14.
The 1380-kg cuboid shaped
Chadnryaan-1, originally designed for a lifespan of two years was launched by
means of an augmented version of the four-stage Indian trusted space work horse
PSLV(Polar Satellite Launch Vehicle) on the morning of October 22 from the Satish
Dhawan Space Centre (SDSC) in Sriharikota island, about 100-kms to the north of
Chennai. This one single achievement made India
the third Asian country after China
and Japan
to send a probe to the moon.
Further, the launch and positioning
of Chandrayaan-1 spacecraft into a 100-km orbit around the moon catapulted
India into the ranks of the elite league of space faring nations---the US,
Russia, European Space Agency (ESA) and China and Japan—which have a
wherewithal for the successful accomplishment of a lunar mission.
The point to be driven home is that the
lessons learnt from the snags that affected Chandrayaan-1 would provide
valuable inputs for hardening the instrumentation packages and electronics
devices going into the follow-on lunar mission Chandrayaan-II, slated for
launch in 2013. Chandrayaan-II, which will be launched by means of the three-stage
Geosynchronous Satellite Launch Vehicle (GSLV) featuring an indigenous upper
cryogenic engine stage, will carry a robotic rover that would land on the lunar
surface to study samples of soil and rock. In contrast to Chandrayaan-1, Chandrayaan-II
will be an Indo-Russian project.
However, the biggest hurdle involved
in the successful accomplishment of Chandrayaan-II mission is to find a way to
ensure that robotic rover lands safely on the lunar surface. Due to the absence
of atmosphere in the moon’s periphery, the option of parachuting the rover is
ruled out. The Rs.4250-million Chandrayaan-II will also carry international
payloads along with the Indian experimental packages.
Meanwhile, Chandrayaan-1 has
completed 3,000 orbits around the moon and has made available more than 70,000
high-quality imageries some of which provide a breathtaking view of lunar
mountains and craters, especially craters in the permanently shadowed regions
of the moon’s poles. Going further ISRO also claims that Chandrayaan-1 has
successfully accomplished most of its mission goals, including building and
launching spacecraft followed by the insertion of the spacecraft into a
circular orbit of 100-km around the moon.
Other achievements of Chandrayaan-1
were: placing the Indian tricolor on the moon, carrying out the imaging
operations of the lunar surface and collection of data on the minerals on lunar
surface and realizing the deep space tracking network as well as the
operational procedures for travel into deep space. There is a silver lining
after all. ---INFA
(Copyright, India
News and Feature Alliance)
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Aviation Sector Misdeeds:CRASH LANDING IMMINENT, by Shivaji Sarkar,17 July 2009 |
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Economic Highlights
New Delhi, 17 July 2009
Aviation Sector Misdeeds
CRASH LANDING IMMINENT
By Shivaji Sarkar
The aviation sector is in a crisis. Or
should we say in a mess. In particular it signifies a growing tendency to
burden passengers for the supposed losses thanks to inappropriate policy
decisions. Indeed, construction has become big business at the people’s cost.
The capacity to meet it with actual business generation does not seem to be
anybody’s goal. Both the policy and decision makers are getting away with hyped
assessments.
The so-called public-private partnership (PPP)
is a rewarding experience for the private sector. They are rewarded for their
misjudgements, inefficiency or what may be termed as planned failures. And, the
aviation sector seems to be mastering this art, with the people being forced to
pay for one after another disastrous failures.
Else, how one would one justify levying
of the Airport Development Fee (ADF) being charged at the rate of Rs 260 per
passenger in Bengaluru, Rs 275 at Hyderabad and similarly proposed levies at
other airports being supposedly developed by the private sector, which is, recent
national and international experience suggest, good at fudging figures, be it
losses or profit, to suit their needs. They would engineer profit in the books
for bright projections in the stock market, but when it comes to fleece the Government
or the people they manufacture losses.
The Government’s decision to give airport
“developer” DIAL, which took over the properties of Airport Authority of India,
Delhi for a
song, Rs. 1800 crore bonanza, needs a scrutiny. It is expected to raise the so-called
gap in “funding” by imposing the ADF of over Rs. 200 on a domestic passenger
and Rs. 1200 on an international passenger.
In its response, the civil aviation
ministry has stated that it was being done because the traffic was less than
projected. A specious plea, for if it was the case then why is the ‘gap’ not being
charged from those who had miscalculated and instead burdened the nation with
white elephants? What was the need to acquire precious land and construct new
airports when these cities were already being served with at least national
level, if not world class, airports?
Sadly, it is a regressive step. Why
should Delhi,
which accounts for over 40 per cent of the air traffic, ask passengers to pay
that extra? The objective for having a PPP model is to create a world-class
terminal with professional management and large investments. This may or not be
the case, but people are being forced to pay for the private players’ greed. So
here we are in an interesting situation, wherein the Government instead of
infusing the shortfall through its own guarantees or the promised source from the
infrastructure development fund has preferred to burden the passenger.
DIAL, had originally envisaged an
investment of about Rs 8,000 crore, but then escalated it to over Rs 12,000
crore. Surprisingly, the Ministry well-versed with the situation permitted the
clubbing of Phase I and Phase II of the project, to create a facility of 37
million passengers in one go, obscuring the sheer viability of the project
itself.
This was done while being fully aware
that ground realities had reversed with passenger growth projections falling
drastically and real estate prices reaching an all-time low. Clearly, the projected
traffic growth is negative with no signs of recovery in the near future. However,
our policy makers have preferred to sweep their folly under the carpet and add
to the woes of the passengers already burdened with unaffordable tickets.
Let us take another glaring example-- of
the new runway constructed by DIAL investing a thousand crore. It has a
displaced threshold (unutilised landing strip), almost one-third of the new
runway length, which lies wasted, and the cost of which is ultimately being borne
by travelers. Worse, no one is being made answerable. Undoubtedly, there is a
case for removing the private players immediately and handing over all assets
back to the Airports Authority of India. The losses, like any good business
model must be borne by the private player.
In these past couple of years, air
travelers were made to believe that neither the airlines nor the Government
were to be faulted for the high fares. The devil was in the astronomical fuel
prices internationally, prompting airlines to spike the fares 12 times in almost
24 months.
However, despite the international fuel
prices hitting an all-time low, the airlines did not bring down their fares.
The Government’s claim that crude prices were responsible for high fares is thus
outlandish and unacceptable. Jet fuel which had peeked to around Rs. 73,673 a
kl has now stabilized to around Rs. 33000 a kl. On the contrary, the air fare instead
of falling by half has witnessed a hike of over 50 per cent.
Indeed, the fault lies in the failure to
address the core issues of so-called reforms initiated in the civil aviation
sector and the abysmal policy incentives to the industry. In the absence of any
new additional incentives and policy support in the past couple of years, the
aviation industry has entered a negative growth regime which is expected to
plummet further and round off negatively causing huge unemployment and distress
in the industry.
Similarly, the decision of the Government
to merge Indian Airlines and Air India has again turned out to be a major
disaster where the new entity NACIL is gasping for a huge bail out package to
make up for its incessant losses and all-time negative balance sheet. The
merged company is plagued with major HR anomalies, seniority synchronisation
defaults, high salary and emoluments to buy peace with unions, clashing
employees and poor performance.
The civil aviation ministry has also not
stepped in to check cartelization, a reason that has landed NACIL in distress. The
era of low-cost airlines and cheap fare introduced post 2003 has been eliminated.
Air Deccan was bought over by Kingfisher, Sahara
was purchased by Jet, and now Jet is cozying up to Kingfisher and calling it a
strategic alliance. By choice the competition has been jettisoned. The
consolidation looks distant and crash landing of the aviation sector looks
imminent. ---INFA
(Copyright, India News and Feature Alliance)
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