This is exactly a month since the results of the assembly elections were declared. Some were expected, some were not… In short there was not much surprise in the result! But the results were enough to supply some food for thought, both politically and in general course.
Let see the political picture first.
One may argue that the change of guard in West Bengal is a complete shocker. No it’s not! In 2009, ‘Change’ was seen in respect of vote share. That has multiplied manifold in another two years. West Bengal was going green was anybody’s guess.
34 years is a long time in democratic politics. Consecutive 7 win for the left in this state had actually made them over confident and more importantly complacent. They started moving away from the grassroot and certain hasty steps in land acquisition etc. made them answerable to the mass. ‘Opposition’ led by now-CM Mamata Banerjee didn’t keep any stone unturned to make the Left sit in the opposition!
But here lies the actual surprise. Though Left was routed in Bengal, still it has 41% vote share! After 34 years, managing 41% vote is a difficult task. As some are assuming, Left cannot come back, that might not be true at all. One week is a long time in politics, so 5 years like a light year. Mamata has already started with a faux pas in bringing the Singur Ordinance… So Left will wait for some opportunities to come and encash on the same.
Left has lost Kerala by a whisker. UDF has managed to get 11 lakhs vote more than the LDF. Only 0.89% swing in favour of UDF brought them to power. Kerala didn’t give any mandate for any particular party. The moral victory is for the Left as CPIM is still the biggest party in the Kerala Assembly.
Kerala & WB has played as eye openers to some of the political thought leaders. Elections can’t be won if the party disassociates itself from the mass. ‘Taken for granted’ is a not acceptable by the electorates. Plan the future based on the reality. These are the lessons for the Left in Bengal, whereas Kerala has proved that able and robust leadership coupled with inclusive growth is key to the success.
In the grassroot level, some unwanted people have registered as ‘primary member’ of CPIM. They are nothing but opportunist, the force which want to earn some benefits by using the party name. They should be thrown out in order to make the party more disciplined.
CPIM General secretary Prakash Karat denied any need for leadership change, But I feel that must be started from the top and filtered down the same thereafter. Theorists like Karat cannot win election on its own!! The left must go back to the basic now and understand the realities beyond ‘Das Capital’ & ‘Communist Manifesto!’
Other Southern state Tamil Nadu has given a strong mandate against corruption. The most dangerous social ailments have been rampant in that state. By throwing away DMK (gripped withy 2G Scams), Tamil Nadu wanted a government free from corruption. But the question is how far AIADMK led by Jayalalitha can deliver the same, only time will say! Kerala too has paraded with VS in corruption issues, which almost made them win the election.
Assam & Pondicherry didn’t make anyone surprised. The Only thing with the Assam win, Gogoi-led Congress managed to be in power consecutive for third term, which might help UPA in centre to resolve complicated north-east trouble.
If we analyse the impact of these election in the national context, it is heartening for the UPA. But winning 2014 won’t be easy as Corruption, Price rise and some other core issues are huge concern for the general public. Inclusive growth with equity is the key for any political party with real developmental agenda.
Monday, 13 June 2011
Monday, 6 June 2011
Two Sisters: Winning Streak of Indian Business
India is the most preferred investment destination for last few years for its conducive environment. Many consider 1991 was a watershed year in Indian economic history. Macro economic reforms measure taken by Dr. Manmohan Singh, the-then Finance Minister of Narsimha Rao government, lift the barriers for the foreign investment in India & as thought of Indian economy took a massive turn thereafter.
India is preferred destination for investment for its political stability, natural resources, a large no. of English speaking population, well regulated financial market and tested legal system and above all investor-friendly attitude of the government. Some statistics might help in understanding the same. Cumulative amount of FDI inflows into India from 2000-2011 is
US$ 1, 94,814 million & amount of investment in 2010-11 is US$ 19,427, though it’s a decline from 2009-10 where the invested amount was US$ 25,834. (FACT SHEET ON FOREIGN DIRECT INVESTMENT From AUGUST 1991 to MARCH 2011 of DIPP)
Countries like USA, UK, Netherlands, Japan, Germany, Singapore, Mauritius, France etc. didn’t waste much time to grab the opportunity to tap the potential market in India. As there were (are) several sectoral caps in the foreign direct investment, most of the initial investment was in form of Joint Ventures. With regular changes in FDI norms, nature of investment too has changed. Still, most preferred route for investment in the potential market is Joint Venture.
To substantiate this fact, we might refer to two cases of recent past; yes, you have rightly guessed, those are:-
‘Cairn-Vedanta deal caught in regulatory hurdles’
‘RIL-BP has struck the biggest ever JV in the context of foreign investment & production sharing’
Let’s see the present legal nitty-gritty of doing business in India by examining these two cases.
Cairn-Vedanta Deal
Vedanta Resources wants to buy a 51% controlling stake in Cairn India for $8.5 billion. Vedanta Resources is in talks with Cairn Energy, which has a 62.4% stake in Cairn India, to buy a controlling stake in the unit. Till date, Cairn-Vedanta deal has not been cleared. As one of the JV partners of Cairn India, ONGC has objected the deal and raised the issue of Royalty payment. It has approached the government not to give ‘go-ahead’ to London-listed Vedanta Resources’ $9.6 billion acquisition of Cairn India until the issue of excess royalty it pays on Rajasthan crude oil is sorted out. Government too has upheld ONGC’s stand and it said, ONGC’s consent is required to sell its majority stake in Cairn India to Vedanta Resources. Earlier, the petroleum ministry was ready to give “in-principle” approval for Vedanta provided 11 preconditions were met. Cairn India is the operator of the Rajasthan block with a 70% participating interest and its joint venture (JV) partner ONGC has a 30% participating interest.
RIL-BP Deal
A 50:50 joint venture formed by the RIL-BP for sourcing and marketing gas in India, taking the overall investment in the partnership to $20 billion or Rs 90,000 crore. BP is taking a 30% stake in 23 RIL-operated PSCs in India, including the offshore producing KG D6 block. This is the single-largest foreign direct investment (FDI) flow into India ever and a multi-year commitment. Valuation was justified with analysts having valued RIL’s upstream business at around $30 billion implying $9 billion for a 30% stake.
So, what is a Joint Venture (JV)? Why it’s so important, what’s the purpose behind a JV?
JV as the name suggests is an arrangement between two or more companies either for long term or for completion of a specific project. This is a symbiotic business association whereby the complimentary resources of the partners are mutually shared and put to use. This could be equity-based or contractual. It might be a new business or an existing business which is expected to get benefit from the new partner.
Overall, it is an effective business strategy for enhancing marketing, positioning and client acquisition. The alliance can be a formal contractual agreement or an informal understanding between the parties.
Joint Ventures include Leveraging Resources, Exploiting Capabilities and Expertise, Sharing Liabilities, Market Access & Flexible Business Diversification.
JVs may be classified as equity and contractual JV. An equity JV is an arrangement whereby a separate legal entity is created in accordance with the agreement of two or more parties like in case of RIL-BP. Most common form of Equity JV is 74:26, 51:49 & 50:50, though other forms too are present. Among these 50:50 JV is most dangerous as no single company can pass any resolution without the help of the other partner. In other two cases resolutions can be passed in much easier way. Recently, by issuing a Press Note, government has removed the condition of prior approval in case of existing joint ventures/ technical collaborations in the "same field" for the foreign partners.
The contractual JV is mostly for a limited period where creation of separate legal entity is not needed or feasible. This kind of JV is seen in the areas like:-
• Technology transfer agreements
• Joint product development
• Purchasing agreements
• Distribution agreements
• Marketing and promotional collaboration
• Intellectual advice
• Engineering, Procurement and Construction (EPC) arrangements
In both the above mentioned case, it is equity-based partnership. Unlike RIL-BP deal, Vedanta-Cairn stake sale is facing so much regulatory hurdles as the issue of controlling stake is there. According to SSPA (Share Sale & Purchasing Agreement), acquisition doesn’t need any approval per se. The acquired entity maintains its individuality. But, once a company wants to buy out more than 50% of the equity stake in the target company, it involves a change in the management and control of the company. In the Cairn-Vedanta case, this is exactly the regulatory hurdle. Vedanta wants to 51% controlling stake in Cairn India where change of management is evident.
The terms and conditions on which acquisition takes place are generally Mutual negotiation between the parties without any intervention of the court or other regulator. However if the target company is a listed company, then provisions of the Securities Contract Act, Take Over Code of SEBI etc. may apply in some cases as in Cairn-Vedanta ongoing saga.
Though, Cairn had claimed that its deal with Vedanta was a corporate transaction and not a transfer of stake. So, did not require the permission of government, but reluctantly agreed to it. Moreover, the application did not recognise the rights of partner ONGC. SEBI is yet to give nod on the proposed open offer by the company.
Analysts said the two deals (RIL-BP and Cairn-Vedanta) were completely different. In Reliance, the Indian company was selling a significant minority stake; Reliance will remain in charge of operations and retain a majority stake. On the other hand, Cairn-Vedanta would have involved a transfer of ownership. Besides, the Cairn-Vedanta $9.6-billion deal was a transaction between two London-listed companies and the money would not come into India. The RIL-BP deal, in contrast, will be the single-largest foreign direct investment. Also, there was no company to pre-empt the deal as was the case with ONGC in Cairn.
RIL-BP is important from foreign investment perspective too. Generally, a proposal for joint venture with foreign equity, does not require any approval if it conforms to the industry / product classification and foreign equity limit. But the JVs, which are not satisfying those clauses, fall under the approval route.
Foreign companies come to India as an incorporated entity by floating a company under the Companies Act, 1956 through Joint Ventures or Wholly Owned Subsidiaries. In this case BP requires government nod as it’s a 50-50 JV. According to existing norm, more than 49% investment by a foreign company needs prior approval of FIPB. But RIL doesn’t need any clearance as it is selling only 30% stake to BP & there is no change in management.
Presently there are two ways to invest in India. Those are:-
Automatic Route
Approval Route
Foreign Investment notification is issued by Department of Industrial Policy & Promotion (DIPP) by issuing Press Note annually.
Regardless of the 2 routes, FDI caps for certain sectors are needed to address two main concerns: (i) protection of national security interests (e.g. telecom/broadcasting), and (ii) protection of certain segments of Indian industry and/or Indian consumers (retail/ real estate). Recently 51% investment in multi brand retail is permitted.
FDI is prohibited under Automatic as well as Approval Route for the following sectors:
• Atomic Energy
• Lottery Business including Government /private & online lotteries etc.
• Gambling and Betting
• Agriculture and Plantations (Other than Tea plantations etc;)
• Nidhi company
• Trading in Transferable Development Rights (TDRs)
• Real Estate Business or Construction of Farm Houses
Thus, from the above analysis we can see there is a close connection between the FDI & JV. Companies are exploring Indian market mostly by strategic alliance in form of a JV, where sectoral caps of FDI is taken care of. Vedanta-Cairn cannot discourage other investors as this single case actually involves almost all legal implications. India thus will continue to be the heart of partnership business, be it foreign or domestic.
Courtesy:
The Economic Times
The Hindu Business Line
The Business Standard
The Mint
Nisithdesai.com (for JV Information)
Website of DIPP
Website of RBI
Website of RIL
Website of BP
Website of Cairn India
Website of Vedanta Resource
Website of ONGC
India is preferred destination for investment for its political stability, natural resources, a large no. of English speaking population, well regulated financial market and tested legal system and above all investor-friendly attitude of the government. Some statistics might help in understanding the same. Cumulative amount of FDI inflows into India from 2000-2011 is
US$ 1, 94,814 million & amount of investment in 2010-11 is US$ 19,427, though it’s a decline from 2009-10 where the invested amount was US$ 25,834. (FACT SHEET ON FOREIGN DIRECT INVESTMENT From AUGUST 1991 to MARCH 2011 of DIPP)
Countries like USA, UK, Netherlands, Japan, Germany, Singapore, Mauritius, France etc. didn’t waste much time to grab the opportunity to tap the potential market in India. As there were (are) several sectoral caps in the foreign direct investment, most of the initial investment was in form of Joint Ventures. With regular changes in FDI norms, nature of investment too has changed. Still, most preferred route for investment in the potential market is Joint Venture.
To substantiate this fact, we might refer to two cases of recent past; yes, you have rightly guessed, those are:-
‘Cairn-Vedanta deal caught in regulatory hurdles’
‘RIL-BP has struck the biggest ever JV in the context of foreign investment & production sharing’
Let’s see the present legal nitty-gritty of doing business in India by examining these two cases.
Cairn-Vedanta Deal
Vedanta Resources wants to buy a 51% controlling stake in Cairn India for $8.5 billion. Vedanta Resources is in talks with Cairn Energy, which has a 62.4% stake in Cairn India, to buy a controlling stake in the unit. Till date, Cairn-Vedanta deal has not been cleared. As one of the JV partners of Cairn India, ONGC has objected the deal and raised the issue of Royalty payment. It has approached the government not to give ‘go-ahead’ to London-listed Vedanta Resources’ $9.6 billion acquisition of Cairn India until the issue of excess royalty it pays on Rajasthan crude oil is sorted out. Government too has upheld ONGC’s stand and it said, ONGC’s consent is required to sell its majority stake in Cairn India to Vedanta Resources. Earlier, the petroleum ministry was ready to give “in-principle” approval for Vedanta provided 11 preconditions were met. Cairn India is the operator of the Rajasthan block with a 70% participating interest and its joint venture (JV) partner ONGC has a 30% participating interest.
RIL-BP Deal
A 50:50 joint venture formed by the RIL-BP for sourcing and marketing gas in India, taking the overall investment in the partnership to $20 billion or Rs 90,000 crore. BP is taking a 30% stake in 23 RIL-operated PSCs in India, including the offshore producing KG D6 block. This is the single-largest foreign direct investment (FDI) flow into India ever and a multi-year commitment. Valuation was justified with analysts having valued RIL’s upstream business at around $30 billion implying $9 billion for a 30% stake.
So, what is a Joint Venture (JV)? Why it’s so important, what’s the purpose behind a JV?
JV as the name suggests is an arrangement between two or more companies either for long term or for completion of a specific project. This is a symbiotic business association whereby the complimentary resources of the partners are mutually shared and put to use. This could be equity-based or contractual. It might be a new business or an existing business which is expected to get benefit from the new partner.
Overall, it is an effective business strategy for enhancing marketing, positioning and client acquisition. The alliance can be a formal contractual agreement or an informal understanding between the parties.
Joint Ventures include Leveraging Resources, Exploiting Capabilities and Expertise, Sharing Liabilities, Market Access & Flexible Business Diversification.
JVs may be classified as equity and contractual JV. An equity JV is an arrangement whereby a separate legal entity is created in accordance with the agreement of two or more parties like in case of RIL-BP. Most common form of Equity JV is 74:26, 51:49 & 50:50, though other forms too are present. Among these 50:50 JV is most dangerous as no single company can pass any resolution without the help of the other partner. In other two cases resolutions can be passed in much easier way. Recently, by issuing a Press Note, government has removed the condition of prior approval in case of existing joint ventures/ technical collaborations in the "same field" for the foreign partners.
The contractual JV is mostly for a limited period where creation of separate legal entity is not needed or feasible. This kind of JV is seen in the areas like:-
• Technology transfer agreements
• Joint product development
• Purchasing agreements
• Distribution agreements
• Marketing and promotional collaboration
• Intellectual advice
• Engineering, Procurement and Construction (EPC) arrangements
In both the above mentioned case, it is equity-based partnership. Unlike RIL-BP deal, Vedanta-Cairn stake sale is facing so much regulatory hurdles as the issue of controlling stake is there. According to SSPA (Share Sale & Purchasing Agreement), acquisition doesn’t need any approval per se. The acquired entity maintains its individuality. But, once a company wants to buy out more than 50% of the equity stake in the target company, it involves a change in the management and control of the company. In the Cairn-Vedanta case, this is exactly the regulatory hurdle. Vedanta wants to 51% controlling stake in Cairn India where change of management is evident.
The terms and conditions on which acquisition takes place are generally Mutual negotiation between the parties without any intervention of the court or other regulator. However if the target company is a listed company, then provisions of the Securities Contract Act, Take Over Code of SEBI etc. may apply in some cases as in Cairn-Vedanta ongoing saga.
Though, Cairn had claimed that its deal with Vedanta was a corporate transaction and not a transfer of stake. So, did not require the permission of government, but reluctantly agreed to it. Moreover, the application did not recognise the rights of partner ONGC. SEBI is yet to give nod on the proposed open offer by the company.
Analysts said the two deals (RIL-BP and Cairn-Vedanta) were completely different. In Reliance, the Indian company was selling a significant minority stake; Reliance will remain in charge of operations and retain a majority stake. On the other hand, Cairn-Vedanta would have involved a transfer of ownership. Besides, the Cairn-Vedanta $9.6-billion deal was a transaction between two London-listed companies and the money would not come into India. The RIL-BP deal, in contrast, will be the single-largest foreign direct investment. Also, there was no company to pre-empt the deal as was the case with ONGC in Cairn.
RIL-BP is important from foreign investment perspective too. Generally, a proposal for joint venture with foreign equity, does not require any approval if it conforms to the industry / product classification and foreign equity limit. But the JVs, which are not satisfying those clauses, fall under the approval route.
Foreign companies come to India as an incorporated entity by floating a company under the Companies Act, 1956 through Joint Ventures or Wholly Owned Subsidiaries. In this case BP requires government nod as it’s a 50-50 JV. According to existing norm, more than 49% investment by a foreign company needs prior approval of FIPB. But RIL doesn’t need any clearance as it is selling only 30% stake to BP & there is no change in management.
Presently there are two ways to invest in India. Those are:-
Automatic Route
Approval Route
Foreign Investment notification is issued by Department of Industrial Policy & Promotion (DIPP) by issuing Press Note annually.
Regardless of the 2 routes, FDI caps for certain sectors are needed to address two main concerns: (i) protection of national security interests (e.g. telecom/broadcasting), and (ii) protection of certain segments of Indian industry and/or Indian consumers (retail/ real estate). Recently 51% investment in multi brand retail is permitted.
FDI is prohibited under Automatic as well as Approval Route for the following sectors:
• Atomic Energy
• Lottery Business including Government /private & online lotteries etc.
• Gambling and Betting
• Agriculture and Plantations (Other than Tea plantations etc;)
• Nidhi company
• Trading in Transferable Development Rights (TDRs)
• Real Estate Business or Construction of Farm Houses
Thus, from the above analysis we can see there is a close connection between the FDI & JV. Companies are exploring Indian market mostly by strategic alliance in form of a JV, where sectoral caps of FDI is taken care of. Vedanta-Cairn cannot discourage other investors as this single case actually involves almost all legal implications. India thus will continue to be the heart of partnership business, be it foreign or domestic.
Courtesy:
The Economic Times
The Hindu Business Line
The Business Standard
The Mint
Nisithdesai.com (for JV Information)
Website of DIPP
Website of RBI
Website of RIL
Website of BP
Website of Cairn India
Website of Vedanta Resource
Website of ONGC
Wednesday, 25 May 2011
An Open Letter to Mr. Jairam Ramesh
To
Mr. Jairam Ramesh,
I sincerely believe that when you have doubted the ‘class’ of IIT and IIM faculties, you never meant to reflect the same sentiment of your former cabinet colleague Dr. Shashi Tharoor of ‘Cattle Class’ fame. You wanted to say something which can bring back the focus on you, so you chose two best public funded institutes if the state. Naturally, media is again showing you and running after you. You have successfully reached your target. Congrats.
Now let me say something about your 'class' comment.
Being an IIT alumnus you must know that institutes like IITs & IIMs have been established for a definite purpose. Over the years both these centres of excellence have proved its worth and made a mark in world platform & still counting. Their fame is not only for the students, but for the teachers too.
More importantly, if an institute is capable of producing ‘world class students’ I think their faculty members have to have the capability of nurturing the future world figures. If these talents are not shown the perfect way of unfolding their petals, they won’t even earn a name in India, leave aside world! Bright & the brilliants come to the IIMs and the IITs. Through a very tough selection procedure they made it to these august institutions and (surprisingly enough) the faculty of these institutes only select them!! These future world class students actually know the standard of the faculty as well as the institutes, so they choose these places! Do you think Mr. Minister, a student who aspires to be a world leader would chose a ‘below standard’ faculty as his/her mentor? I think, you know that teaching the brightest and the best is one of the most challenging jobs for a faculty. ‘Inept’ teachers cannot produce world class students, isn’t it so? What’s your take Mr. Minister?
I am associated with Indian Institute of Management Calcutta as a Trainee Teaching Associate. For the professional purpose I have the opportunity to work very closely withy many faculty members of this institute, both seniors and juniors. In almost all the cases I found, they are engaged in research works of very innovative kind or developing a new model. I would rather say, it’s really difficult to find them in campus as they always get invitations to attend various programmes worldwide. Actually ’world’ waits for them to get a pie of their knowledge and experience! Do you really call these faculties ‘incompetent’ in the world platform, Mr. Minister? Unlike the ‘world class’ institutes, students of IITs engage in project works which has long term sustainability and effectiveness. If you don’t believe ne, please do a Google search, you will get the list.
As you know Mr. Minister, India is different from world in many aspects. India still carries the tag of having a substantial percentage of people who don’t get a full square meal regularly. Primary education system is limping. Little number of students comes for higher education and a tiny percentage to IIMs and IITs. Still, India is proud of scientific research, management development, grassroots innovation, student entrepreneurship and many more. So why do IIM faculties need to follow the world model for attaining the status of ‘world class’ performer? If they think of India and research takes that specific direction, where’s the problem? Why does India need the approval of the West to prove its Excellence? Would you kindly explain this, Mr. Minister?
At the end, I want to say that there is always scope for improvement. IITs and IIMs are undoubtedly the best of the institutions and they boast of their faculty and students. But at the same time, complacency must not kill the scope for future development and innovations. Everywhere, be it ‘India’ or ‘World’ there are some people who might not be’ that good’, but experience says, peer pressure transforms them for better. Who knows, one day ‘world’ might adjudge its ‘class’ comparing their performance with the IIMs and IITs? What’s your take on this Mr. Minister?
Sincerely,
Anwesha Banerjee
TTA, IIM Calcutta
Kolkata
PS: Congress party seems to have a problem in ‘class’ structure. First it was ‘cattle classes, then ‘world class’. I think the party needs a ‘class’ of its own!!
Mr. Jairam Ramesh,
I sincerely believe that when you have doubted the ‘class’ of IIT and IIM faculties, you never meant to reflect the same sentiment of your former cabinet colleague Dr. Shashi Tharoor of ‘Cattle Class’ fame. You wanted to say something which can bring back the focus on you, so you chose two best public funded institutes if the state. Naturally, media is again showing you and running after you. You have successfully reached your target. Congrats.
Now let me say something about your 'class' comment.
Being an IIT alumnus you must know that institutes like IITs & IIMs have been established for a definite purpose. Over the years both these centres of excellence have proved its worth and made a mark in world platform & still counting. Their fame is not only for the students, but for the teachers too.
More importantly, if an institute is capable of producing ‘world class students’ I think their faculty members have to have the capability of nurturing the future world figures. If these talents are not shown the perfect way of unfolding their petals, they won’t even earn a name in India, leave aside world! Bright & the brilliants come to the IIMs and the IITs. Through a very tough selection procedure they made it to these august institutions and (surprisingly enough) the faculty of these institutes only select them!! These future world class students actually know the standard of the faculty as well as the institutes, so they choose these places! Do you think Mr. Minister, a student who aspires to be a world leader would chose a ‘below standard’ faculty as his/her mentor? I think, you know that teaching the brightest and the best is one of the most challenging jobs for a faculty. ‘Inept’ teachers cannot produce world class students, isn’t it so? What’s your take Mr. Minister?
I am associated with Indian Institute of Management Calcutta as a Trainee Teaching Associate. For the professional purpose I have the opportunity to work very closely withy many faculty members of this institute, both seniors and juniors. In almost all the cases I found, they are engaged in research works of very innovative kind or developing a new model. I would rather say, it’s really difficult to find them in campus as they always get invitations to attend various programmes worldwide. Actually ’world’ waits for them to get a pie of their knowledge and experience! Do you really call these faculties ‘incompetent’ in the world platform, Mr. Minister? Unlike the ‘world class’ institutes, students of IITs engage in project works which has long term sustainability and effectiveness. If you don’t believe ne, please do a Google search, you will get the list.
As you know Mr. Minister, India is different from world in many aspects. India still carries the tag of having a substantial percentage of people who don’t get a full square meal regularly. Primary education system is limping. Little number of students comes for higher education and a tiny percentage to IIMs and IITs. Still, India is proud of scientific research, management development, grassroots innovation, student entrepreneurship and many more. So why do IIM faculties need to follow the world model for attaining the status of ‘world class’ performer? If they think of India and research takes that specific direction, where’s the problem? Why does India need the approval of the West to prove its Excellence? Would you kindly explain this, Mr. Minister?
At the end, I want to say that there is always scope for improvement. IITs and IIMs are undoubtedly the best of the institutions and they boast of their faculty and students. But at the same time, complacency must not kill the scope for future development and innovations. Everywhere, be it ‘India’ or ‘World’ there are some people who might not be’ that good’, but experience says, peer pressure transforms them for better. Who knows, one day ‘world’ might adjudge its ‘class’ comparing their performance with the IIMs and IITs? What’s your take on this Mr. Minister?
Sincerely,
Anwesha Banerjee
TTA, IIM Calcutta
Kolkata
PS: Congress party seems to have a problem in ‘class’ structure. First it was ‘cattle classes, then ‘world class’. I think the party needs a ‘class’ of its own!!
Thursday, 19 May 2011
Friday the 13th: The ‘Red’ letter day
The Great Fall.
The longest running Communist government in a state has had its end on Friday, the 13th. This might not be as suspense thriller as the Hollywood blockbuster is, but it’s no less than a roller coaster saga for the Left as well as Mamata Banerjee!!
This is very much a predictable result. Opinion Polls and Exit polls have already given almost the same numbers as what the TMC Alliance and Left have got. So, that it would be ‘Left’s poll for exit’ was assumed. Officially though, run up for this moment has begun 2 years back. First phase of ‘Paribartan’ was seen in Loksabha election of 2009. Civic body elections too didn’t give any scope to stimulate confidence in CPIM. For mishandling of Singur, Nandigram and to some extent Rizwanur Rahaman death case, the war cry for ‘Change’ had gradually acquired a strong support base. And the Tsunami called ‘Paribartan’ indeed has washed away the Left even from their traditional strongholds.
The mandate is clear. Bengal has not only voted against the Left but also for the TMC-Congress alliance. Had it been only negative votes, alliance couldn’t have got 2/3rd majority with almost all the standing ministers losing including the CM Budhhadeb Bhattacharya. Alliance was successful enough to convince people that why they should vote for them. Moreover CPIM has continuously lost contact with the grassroot level. Almost three and a half decades in power made them overconfident. By the time they started taking the ‘corrective’ measures, it was already very late. And the ‘Mamata’ factor... In my previous articles (‘Winds of Change’ & ‘Paint it Green’) I have already talked about her: from whimsical to mature, how she transformed herself. Why people have started to see her as the best alternative to Left. With ‘never-say-no’ mentality she actually brought Jasmine Revolution here.
It is learnt from the CSDS survey that richest and the poorest have voted for the agent of change i.e. Didi. Why is it so? Just rewind a bit. Many believe that Higher Education & Industry was destroyed by CPIM. No English education in the Primary Level too has angered the rich & the urban upper middle class. On the other hand, ‘CPIM is taking away land from the poor’ the clever campaign by TMC was enough to make their mind change. They had the ready reference of Nandigram-Singur-Lalgarh.
Many Left sympathizers left heartbroken, the Rightist supporters are falling short of words. Expectation from the new government is enormous. Now, they want to see the actual ‘Change’ as promised in the manifesto. It can be surely said that people won’t wait another 34 years to witness change.
Mamata, by dedicating this victory to ‘Ma-Mati-Manush’ has told that this is the ‘second independence of Bengal.’ Pranab Mukherjee has already promised her a special package for Bengal for economic reconstruction as WB in debt-trap. The other challenge would be how she resolves the on-going ‘Hill’ problems and ‘jangalmahal’ and Maoist insurgency. With the ‘temporary’ end of the Communist era in Bengal, this time industrialists might be surer to invest here. Didi has announced to bring reforms in law and order, education, health and in other sectors. But the first & foremost challenge is definitely to maintain peace everywhere. Rural Bengal has bled long in vendetta politics. This should stop at once. It must be ensured that no one is without shelter in fear of being killed by the political enemies. I hope here it won’t be the beginning of Tamil Nadu way of politics where government and opposition always target each other. I wish CPIM will play the role of a Constructive opposition and won’t protest all the policies of new government like last 34 years opposition did.
State-Centre relation in Bengal too would change now. Predictably, centre will shed off its hostility towards this state. UPA II government has got enough boosters in the just-concluded assembly elections. Other than Tamil Nadu, they have performed well. Though they have won in Kerala by a whisker.
As the biggest ally of the UPA II, Mamata has so long opposed new land acquisition bill, pension bill and some other important bills. As soon as mandate was for her, she told a television channel that she wants new land policy. It is learnt, the bill is due to pass in the next session of the Parliament. Now whether she takes the same stand in these bills, would be a continuing focus. As of now centre won’t go against much of her will, as, if her party withdraws support, UPA II will be in big trouble. In West Bengal TMC has got absolute majority, so they don’t need Congress at all to run the government. Loksabha election is another 3 years away, so Congress has time, so they might adopt ‘Go slow’ policy in these contentious issues.
What is the road ahead for CPIM? As some are saying, is this really the end of Communism in India? I think, no. CPIM has lost contact with people and real issues related to the poor. They have got 5 years of time to go back to the basics from where they had begun. In the grass root level there are corruptions, nepotism and ‘brigades of opportunist members’, this practice must be put to an end. In order to channelize energy and confidence among the party members, CPIM has to start afresh. The Left here has already realised that there were huge percentage of negative voting for them. They have lost 7% of their dedicated vote-bank, whereas TMC has gained 19%. People have the ultimate authority to reject and select, so they have to find out why the electorates don’t want them any more. Organisational capability is not everything.
I believe, the biggest problem for CPIM is the disjunction between the Politbureau and the general mass. Politbureau decision is not always in consistency with the ground realities. Some are merely theoretical. Now Prakash Karats must learn from V S Achuthanandans. Hats off to the octogenarian for his efforts, he has almost done it in Kerala. Many are saying in Kerala, LDF has achieved a moral victory.
However, ‘Change’ is constant in democratic politics. Everywhere in the world and in India there is change of guard in elections. Because West Bengal was an exception, the change has resulted in so much of discussions, celebration, and frenzy.
Getting elected consecutively for 7 terms is history from all aspects. Long term in power always has a negative angle. It gives a certain contentment on the part of the government that the incumbent doesn’t have any alternative and whatever they are doing is good for the people. Electorates are taken for granted.
I belong to that generation who hasn’t seen any other government other than the Left front in my state. I was born when they were already in their second term. So we also don’t know what Green Revolution can bring to us. We have heard the ‘reign of terror’ by Sidhhartha Sankar Ray government from ’72-’77, we have not seen that. So veterans fear the repeating of that dark history.
But I am optimistic, after all Bengal is getting her first woman Chief Minister!! My only scepticism lies in the fact that if Didi remains current version of herself, we will see ‘dictatorship’ of ‘Durga in a crumpled Sari’!! Hope floats, ‘Paribartan’ might be seen in didi too...!!
The longest running Communist government in a state has had its end on Friday, the 13th. This might not be as suspense thriller as the Hollywood blockbuster is, but it’s no less than a roller coaster saga for the Left as well as Mamata Banerjee!!
This is very much a predictable result. Opinion Polls and Exit polls have already given almost the same numbers as what the TMC Alliance and Left have got. So, that it would be ‘Left’s poll for exit’ was assumed. Officially though, run up for this moment has begun 2 years back. First phase of ‘Paribartan’ was seen in Loksabha election of 2009. Civic body elections too didn’t give any scope to stimulate confidence in CPIM. For mishandling of Singur, Nandigram and to some extent Rizwanur Rahaman death case, the war cry for ‘Change’ had gradually acquired a strong support base. And the Tsunami called ‘Paribartan’ indeed has washed away the Left even from their traditional strongholds.
The mandate is clear. Bengal has not only voted against the Left but also for the TMC-Congress alliance. Had it been only negative votes, alliance couldn’t have got 2/3rd majority with almost all the standing ministers losing including the CM Budhhadeb Bhattacharya. Alliance was successful enough to convince people that why they should vote for them. Moreover CPIM has continuously lost contact with the grassroot level. Almost three and a half decades in power made them overconfident. By the time they started taking the ‘corrective’ measures, it was already very late. And the ‘Mamata’ factor... In my previous articles (‘Winds of Change’ & ‘Paint it Green’) I have already talked about her: from whimsical to mature, how she transformed herself. Why people have started to see her as the best alternative to Left. With ‘never-say-no’ mentality she actually brought Jasmine Revolution here.
It is learnt from the CSDS survey that richest and the poorest have voted for the agent of change i.e. Didi. Why is it so? Just rewind a bit. Many believe that Higher Education & Industry was destroyed by CPIM. No English education in the Primary Level too has angered the rich & the urban upper middle class. On the other hand, ‘CPIM is taking away land from the poor’ the clever campaign by TMC was enough to make their mind change. They had the ready reference of Nandigram-Singur-Lalgarh.
Many Left sympathizers left heartbroken, the Rightist supporters are falling short of words. Expectation from the new government is enormous. Now, they want to see the actual ‘Change’ as promised in the manifesto. It can be surely said that people won’t wait another 34 years to witness change.
Mamata, by dedicating this victory to ‘Ma-Mati-Manush’ has told that this is the ‘second independence of Bengal.’ Pranab Mukherjee has already promised her a special package for Bengal for economic reconstruction as WB in debt-trap. The other challenge would be how she resolves the on-going ‘Hill’ problems and ‘jangalmahal’ and Maoist insurgency. With the ‘temporary’ end of the Communist era in Bengal, this time industrialists might be surer to invest here. Didi has announced to bring reforms in law and order, education, health and in other sectors. But the first & foremost challenge is definitely to maintain peace everywhere. Rural Bengal has bled long in vendetta politics. This should stop at once. It must be ensured that no one is without shelter in fear of being killed by the political enemies. I hope here it won’t be the beginning of Tamil Nadu way of politics where government and opposition always target each other. I wish CPIM will play the role of a Constructive opposition and won’t protest all the policies of new government like last 34 years opposition did.
State-Centre relation in Bengal too would change now. Predictably, centre will shed off its hostility towards this state. UPA II government has got enough boosters in the just-concluded assembly elections. Other than Tamil Nadu, they have performed well. Though they have won in Kerala by a whisker.
As the biggest ally of the UPA II, Mamata has so long opposed new land acquisition bill, pension bill and some other important bills. As soon as mandate was for her, she told a television channel that she wants new land policy. It is learnt, the bill is due to pass in the next session of the Parliament. Now whether she takes the same stand in these bills, would be a continuing focus. As of now centre won’t go against much of her will, as, if her party withdraws support, UPA II will be in big trouble. In West Bengal TMC has got absolute majority, so they don’t need Congress at all to run the government. Loksabha election is another 3 years away, so Congress has time, so they might adopt ‘Go slow’ policy in these contentious issues.
What is the road ahead for CPIM? As some are saying, is this really the end of Communism in India? I think, no. CPIM has lost contact with people and real issues related to the poor. They have got 5 years of time to go back to the basics from where they had begun. In the grass root level there are corruptions, nepotism and ‘brigades of opportunist members’, this practice must be put to an end. In order to channelize energy and confidence among the party members, CPIM has to start afresh. The Left here has already realised that there were huge percentage of negative voting for them. They have lost 7% of their dedicated vote-bank, whereas TMC has gained 19%. People have the ultimate authority to reject and select, so they have to find out why the electorates don’t want them any more. Organisational capability is not everything.
I believe, the biggest problem for CPIM is the disjunction between the Politbureau and the general mass. Politbureau decision is not always in consistency with the ground realities. Some are merely theoretical. Now Prakash Karats must learn from V S Achuthanandans. Hats off to the octogenarian for his efforts, he has almost done it in Kerala. Many are saying in Kerala, LDF has achieved a moral victory.
However, ‘Change’ is constant in democratic politics. Everywhere in the world and in India there is change of guard in elections. Because West Bengal was an exception, the change has resulted in so much of discussions, celebration, and frenzy.
Getting elected consecutively for 7 terms is history from all aspects. Long term in power always has a negative angle. It gives a certain contentment on the part of the government that the incumbent doesn’t have any alternative and whatever they are doing is good for the people. Electorates are taken for granted.
I belong to that generation who hasn’t seen any other government other than the Left front in my state. I was born when they were already in their second term. So we also don’t know what Green Revolution can bring to us. We have heard the ‘reign of terror’ by Sidhhartha Sankar Ray government from ’72-’77, we have not seen that. So veterans fear the repeating of that dark history.
But I am optimistic, after all Bengal is getting her first woman Chief Minister!! My only scepticism lies in the fact that if Didi remains current version of herself, we will see ‘dictatorship’ of ‘Durga in a crumpled Sari’!! Hope floats, ‘Paribartan’ might be seen in didi too...!!
Friday, 8 April 2011
8th April- a day to remember
Today i.e. 8th April, 2011 is a very special day. Last year on this date I made a promise to myself. I would observe some people for a year to find out whether I am right in believing that I am merely a ‘use and throw’ or to some extent a ‘recyclable’ object!! & just after a year I am surprised to see that I was very correct.
In last one year so many things happened-good, bad and the ugly. But my position didn’t change. Last April I got a call (which is very rare) from a ‘very close’ friend to know his story of achievement. Later, I realized, it was to prove that even if we start from the same point, only intelligent & meritorious people emerge as triumphant!! After that call, I was simply rewinding and found since the beginning of his journey I have contributed too whenever needed!! Though, predictably, no acknowledgment was there. I didn’t even care as I believe friendship doesn’t ask for such minor details.
Few months later, when we have a talk again, I could clearly remember that I have told him, next year would be his only!! His reply was, ‘no, no. I am so young to be an achiever! ’ In between I had my stint of success(?) & failure about which he was least bothered.
For last few months we didn’t have any talk. Both of us were too much busy… Today evening, I saw something on Facebook, he is indeed the’ young achiever of this yea’r and have climbed up quite a few steps up in the ladder!! Hats off o his dedication and hardwork.I am immensely happy because my prediction was dot on but at the same time shocked too as because he didn’t pick up the phone or replied to the sms!! I am leaving aside that he didn’t even feel to let me know this great news!!
Still, I am happy for you my friend precisely for two reasons. If the first one is for your success, then the second one is of course for me. Surprised? I know I am a recyclable object… and my dear friend has again proved me right!!
In last one year so many things happened-good, bad and the ugly. But my position didn’t change. Last April I got a call (which is very rare) from a ‘very close’ friend to know his story of achievement. Later, I realized, it was to prove that even if we start from the same point, only intelligent & meritorious people emerge as triumphant!! After that call, I was simply rewinding and found since the beginning of his journey I have contributed too whenever needed!! Though, predictably, no acknowledgment was there. I didn’t even care as I believe friendship doesn’t ask for such minor details.
Few months later, when we have a talk again, I could clearly remember that I have told him, next year would be his only!! His reply was, ‘no, no. I am so young to be an achiever! ’ In between I had my stint of success(?) & failure about which he was least bothered.
For last few months we didn’t have any talk. Both of us were too much busy… Today evening, I saw something on Facebook, he is indeed the’ young achiever of this yea’r and have climbed up quite a few steps up in the ladder!! Hats off o his dedication and hardwork.I am immensely happy because my prediction was dot on but at the same time shocked too as because he didn’t pick up the phone or replied to the sms!! I am leaving aside that he didn’t even feel to let me know this great news!!
Still, I am happy for you my friend precisely for two reasons. If the first one is for your success, then the second one is of course for me. Surprised? I know I am a recyclable object… and my dear friend has again proved me right!!
Saturday, 19 March 2011
Moments of Truth
These are few of my personal anecdotes-the good, the bad and the ugly. Some might feel I am a pessimist, to some I might appear as a narcissist and some could see optimism in me. But this is me-the original me!
The Journey begins
In my birth, I was separated from my parents. No, not in the literal sense of the term, but due to medical emergency. It may sound weird, but still it’s a truth. My survival chance was zero as my mother had some infections soon after I was born. So, doctors advised my didan and mashisona (maternal grandmother and aunt) to take the baby home. I came to my home at the age of 6-day and was entirely brought up by them. Mother was there for another month! After that I never stayed with my parents as both of them were working!
I was lonely since childhood. The realization being lonely came much later, but it was there. I didn’t find anybody to spend time with, to play etc. etc. Still, I am lonely. I cannot share my thoughts with anyone. Each time I had tried, the other person took advantage of that!
Learning A-B-C-D
Thanks to my parents, I was admitted to Patha Bhavan , no not an English Medium Convent School but to a school which really helps you to grow as a person and inspires you to nurture your dream while providing quality education. I was selected by Holy Child & Carmel too, but I was fortunate that my parents have chosen the best option for me. Our Montessori (L-Kg & U-Kg) section was at Swinhoe Street, it’s still there. Each time my office bus crosses that place I look at my school. I miss my ‘misses’ wooden blocks, sand shakers, mat everything! In Junior section (1-4) we didn’t have any exam, it was only class performance based on continuous assessment and plenty of fun, music, drawing & activities!! I never felt any burden of studies. Senior section is from class 5. There I found a whole new world. First time I exposed to exams, a little pressure to study. I didn’t have any private tutor/coaching from Kg-PG!! (except a three-month coaching for maths before my 10th). My parents were pretty straight, ‘if you wish to be educated, study on your own!’ That actually paid off, I am proud of the fact that nobody has spoon-fed me, whatever little achievement I have, that’s my very own. My parents were least bothered; they only got to know about their only daughter’s performance through annual PTM!
The Teachers
My teachers have always been a source of inspiration for me. From most of them I have got so much care, concern & love that I cannot even match certain aspects of teacher-student relationship which are very common today. They were the only ones who I got by my side in my hard times as well as when I was elated. One might say, in school this kind of a bond is natural, may be but my university experience too was the same. The professors were no less than a friend, whatever age-difference it might be!! Still, I have contact with most of them. My school teachers call me up as well as my Profs!! I keep ringing them whenever I feel (time is no bar!!)
Jadavpurian
Joining Jadavpur University was my decision alone. I said no to Presidency, Lady Brabourne & I went to India’s 2nd best university. That institution has given me a whole new perspective. It taught me some bitter truth of life as well as opened a new horizon in front of me!! I never stood first, but for some reason I was very close to my professors, though I have a bad habit of calling ‘spade a spade’ irrespective of the place or person concerned.
First step in pursuing my dream
While pursuing Masters in History, I got a call for my first job from ABP. So scared to tell at home, I quietly went to their office at 6, Prafulla Chandra Street and wrote the admission test. It was not that good. Almost after 2-month I got the interview call from the same place & cracked it. Nobody at my home knew that I have already bagged a job. I was fortunate that they have given me an open offer for joining, I joined on 1st June, 2006 whereas I could do that on 11th Jan itself. The gap between last day of my final exam and the first day of my job was less than 24 hours!!
I always have a dream to be a journalist. I was very happy after I got into ABP. But as the days went by, I start realising the various aspects of office politics. I was never a diplomat or image conscious, so I couldn’t compromise with so many practices there. At times I felt, I must run away… I am destroying myself!! There were good people also; I don’t want to take any name… for them only I have survived there for more than 3 years.
An unexpected call
When frustration tore me apart, I got a call from IIM Calcutta for the post of a TTA. Went there, appeared for the test & interview & more surprisingly got selected! So I quit ABP & joined IIMC on 24th August, 2009. It was altogether a different world, the world which was (& is) completely unknown to me. Here some persons in power, question individual’s ‘brand value’, make you realize that ‘general stream’ people are not fit for this institute & so on…
Here I faced certain situations, which I didn’t even think of in my worst nightmare. First time I had to compromise or so to say in a very tactical way I was forced to compromise. That still bothers me, each time I am completely alone I berate myself for that, sometimes start crying. ‘Forget & Forgive’ is actually not that easy!
If I say IIM Calcu____ is incomplete without TTA, that won’t be an exaggeration but it’s a thankless job. Definitely it’s a huge personal learning experience for me, I learnt (at least tried to learn) a lot, but where’s the acknowledgment? Students do acknowledge, but the faculties? Most of them first see your weightage as a brand! If people like me who have come from a very general background, don’t even get the minimum credit she/he deserves! Moreover, sometimes questions were raised about the competency! There are some golden exceptions to this practice those who are very senior or personally have a different outlook. We are like ‘Glorified’ Wage labourer…
Still, I Love the campus. The Lakes, the trees, the colourful flowers & all the people out there have given a different touch to this beautiful place. I know I am counting my days at IIMC, still this short stint with this institute I will remember forever!
My run has already begun for the next big one. Patha Bhavan-JU-ABP-IIMC not that bad & I am happy that I have made to these places with my hard works only.
Search for happiness
I know, my simple, soft (I might appear very tough from outside) nature has been taken for granted by all. Once I left a place, most people don’t even remember me. Still, They know, Anwesha won’t say know if it’s within her reach. Earlier I was a ‘Use & Throw’ article, now with the changing nature have become ‘recyclable’!! Some might like me, some might hate, and some might laugh at me… now I don’t have any expectation from anyone. I just want to be happy with all I have.
I don’t want to make big money, I don’t want to be famous… I just want to stay as simple. Even after so many ups & down, I believe ‘Honesty is the best policy’.
Once I have a dream, it’s still there, I just want to pursue that with grit & determination as I believe there cannot be any shortcut to success!!
Thank you all those who have either positively or negatively help me reach here…
The Journey begins
In my birth, I was separated from my parents. No, not in the literal sense of the term, but due to medical emergency. It may sound weird, but still it’s a truth. My survival chance was zero as my mother had some infections soon after I was born. So, doctors advised my didan and mashisona (maternal grandmother and aunt) to take the baby home. I came to my home at the age of 6-day and was entirely brought up by them. Mother was there for another month! After that I never stayed with my parents as both of them were working!
I was lonely since childhood. The realization being lonely came much later, but it was there. I didn’t find anybody to spend time with, to play etc. etc. Still, I am lonely. I cannot share my thoughts with anyone. Each time I had tried, the other person took advantage of that!
Learning A-B-C-D
Thanks to my parents, I was admitted to Patha Bhavan , no not an English Medium Convent School but to a school which really helps you to grow as a person and inspires you to nurture your dream while providing quality education. I was selected by Holy Child & Carmel too, but I was fortunate that my parents have chosen the best option for me. Our Montessori (L-Kg & U-Kg) section was at Swinhoe Street, it’s still there. Each time my office bus crosses that place I look at my school. I miss my ‘misses’ wooden blocks, sand shakers, mat everything! In Junior section (1-4) we didn’t have any exam, it was only class performance based on continuous assessment and plenty of fun, music, drawing & activities!! I never felt any burden of studies. Senior section is from class 5. There I found a whole new world. First time I exposed to exams, a little pressure to study. I didn’t have any private tutor/coaching from Kg-PG!! (except a three-month coaching for maths before my 10th). My parents were pretty straight, ‘if you wish to be educated, study on your own!’ That actually paid off, I am proud of the fact that nobody has spoon-fed me, whatever little achievement I have, that’s my very own. My parents were least bothered; they only got to know about their only daughter’s performance through annual PTM!
The Teachers
My teachers have always been a source of inspiration for me. From most of them I have got so much care, concern & love that I cannot even match certain aspects of teacher-student relationship which are very common today. They were the only ones who I got by my side in my hard times as well as when I was elated. One might say, in school this kind of a bond is natural, may be but my university experience too was the same. The professors were no less than a friend, whatever age-difference it might be!! Still, I have contact with most of them. My school teachers call me up as well as my Profs!! I keep ringing them whenever I feel (time is no bar!!)
Jadavpurian
Joining Jadavpur University was my decision alone. I said no to Presidency, Lady Brabourne & I went to India’s 2nd best university. That institution has given me a whole new perspective. It taught me some bitter truth of life as well as opened a new horizon in front of me!! I never stood first, but for some reason I was very close to my professors, though I have a bad habit of calling ‘spade a spade’ irrespective of the place or person concerned.
First step in pursuing my dream
While pursuing Masters in History, I got a call for my first job from ABP. So scared to tell at home, I quietly went to their office at 6, Prafulla Chandra Street and wrote the admission test. It was not that good. Almost after 2-month I got the interview call from the same place & cracked it. Nobody at my home knew that I have already bagged a job. I was fortunate that they have given me an open offer for joining, I joined on 1st June, 2006 whereas I could do that on 11th Jan itself. The gap between last day of my final exam and the first day of my job was less than 24 hours!!
I always have a dream to be a journalist. I was very happy after I got into ABP. But as the days went by, I start realising the various aspects of office politics. I was never a diplomat or image conscious, so I couldn’t compromise with so many practices there. At times I felt, I must run away… I am destroying myself!! There were good people also; I don’t want to take any name… for them only I have survived there for more than 3 years.
An unexpected call
When frustration tore me apart, I got a call from IIM Calcutta for the post of a TTA. Went there, appeared for the test & interview & more surprisingly got selected! So I quit ABP & joined IIMC on 24th August, 2009. It was altogether a different world, the world which was (& is) completely unknown to me. Here some persons in power, question individual’s ‘brand value’, make you realize that ‘general stream’ people are not fit for this institute & so on…
Here I faced certain situations, which I didn’t even think of in my worst nightmare. First time I had to compromise or so to say in a very tactical way I was forced to compromise. That still bothers me, each time I am completely alone I berate myself for that, sometimes start crying. ‘Forget & Forgive’ is actually not that easy!
If I say IIM Calcu____ is incomplete without TTA, that won’t be an exaggeration but it’s a thankless job. Definitely it’s a huge personal learning experience for me, I learnt (at least tried to learn) a lot, but where’s the acknowledgment? Students do acknowledge, but the faculties? Most of them first see your weightage as a brand! If people like me who have come from a very general background, don’t even get the minimum credit she/he deserves! Moreover, sometimes questions were raised about the competency! There are some golden exceptions to this practice those who are very senior or personally have a different outlook. We are like ‘Glorified’ Wage labourer…
Still, I Love the campus. The Lakes, the trees, the colourful flowers & all the people out there have given a different touch to this beautiful place. I know I am counting my days at IIMC, still this short stint with this institute I will remember forever!
My run has already begun for the next big one. Patha Bhavan-JU-ABP-IIMC not that bad & I am happy that I have made to these places with my hard works only.
Search for happiness
I know, my simple, soft (I might appear very tough from outside) nature has been taken for granted by all. Once I left a place, most people don’t even remember me. Still, They know, Anwesha won’t say know if it’s within her reach. Earlier I was a ‘Use & Throw’ article, now with the changing nature have become ‘recyclable’!! Some might like me, some might hate, and some might laugh at me… now I don’t have any expectation from anyone. I just want to be happy with all I have.
I don’t want to make big money, I don’t want to be famous… I just want to stay as simple. Even after so many ups & down, I believe ‘Honesty is the best policy’.
Once I have a dream, it’s still there, I just want to pursue that with grit & determination as I believe there cannot be any shortcut to success!!
Thank you all those who have either positively or negatively help me reach here…
Wednesday, 16 March 2011
Compulsory Licensing: A much needed step?
Just few months back, Indian Pharma giant Piramal healthcare Ltd hit the headline for being acquired by US Pharma Company Abbott, the deal worth $3.72 billion. Three years back in 2008, Japanese drug maker Daiichi Sankyo bought Delhi based Ranbaxy Laboratories for $ 5 billion. In every second day, some news of M&A, TakeOver or Slump Sale is coming from Indian Pharma industry and that has bothered the policymakers, especially in post 2005 scenario.
In almost all the cases, Indian companies have been acquired by the overseas companies and that has raised the concern about chances of non-availability of patented drugs locally. Experts believe, this could lead to increase in prices even in the cases of generic drugs. So, DIPP (Department of Industrial Policy & Promotion) is going to implement the Compulsory Licensing for Pharmaceuticals, which is naturally opposed by foreign lobby groups. Now the debate is about, whether at all this Compulsory Licensing is needed & would it affect India’s long term vision in the context of innovation and foreign deals?
Before divulge into any more, let see what is Compulsory Licensing.
“Compulsory licensing is a system whereby the Government allows third parties (other than the patent holder) to produce and market a patented product or process without the consent of the patent owner. Through such interventions, the Governments balance the rights of the patent holder with its obligations to ensure working of patents, availability of the products at a reasonable price, promotion and dissemination of technological invention and protection of public health and nutrition.”
Almost all the developed, developing and under developed countries have Compulsory Licensing provisions. United States of America has six provisions for CLs. Canada practiced the same for a long time. United Kingdom has the proviso in the British Law itself. Italy invoked the same whenever it felt the ‘emergency’. Post Doha round of TRIPS agreement on Public Health, Brazil, Thailand, South Africa, Kenya, Ecuador too have adopted the CL policy.
When the Controller issues a CL on the basis of Central Government’s special notification or of the importing country’s notification or issuance of CLs, they are referred as Category I CLs. The rest falls under Category II where Controller independently takes the call on issuance of CLs.
Under the Indian Patent Act 2005, the issue of CLs has been addressed explicitly in 4 sections. The sections are as follows:-
• Section 84: General CLs (on the basis of application)
• Section 91: Special CLs (on the basis of related patent application)
• Section 92: Special CLs (in the case of National/Extreme Emergency & Public non-commercial use based on notification by Central Govt)
• Section 92A: Special CLs (for manufacture and export of patented pharmaceutical product to any country having insufficient or no manufacturing capacity in the pharmaceutical sector for the concerned product to address public health problems). In addition, use of inventions for the purpose of government and acquisition of inventions by Central Government is clearly mentioned.
There was (and is) argument, whether by bringing the provision of CLs India is violating the TRIPS Compliance. The argument doesn’t have any acceptance as TRIPS has clarified its stand in the context of Public Health in Doha. “In ‘Doha Declaration on the TRIPS agreement and Public Health’ it specifically clarifies that the TRIPS agreement does not and should not prevent Members from taking measures to protect public health. It further affirms the Members rights to protect public health and in particular to promote access to medicines for all.” Article 31 of TRIPS agreement qualifies “other use without authorisation of Right Holder” on 12 specific conditions. Though there is restriction regarding the issuance of CLs in semi conductor technologies, but there’s absolutely no restriction on the issue of public health. TRIPs also stipulate that ‘the right holder shall be paid adequate remuneration in the circumstances of each case, taking into account the economic value of the authorization.’
But the question is, when Strategic Business Alliance in form of M&A, Take Over is common to all industries, why government is only worried about the Pharma sector. Just see the current situation of the industry.
MNCs are taking over the Indian companies. There are increasing concerns by the Government, if such takeover trend continues, an oligopolistic market may develop, which may result in a few companies dictating prices of life saving drugs of HIV/AIDS, Hepatitis C.
• This continuous Takeover trend may weaken the government’s ability in the extreme cases through CLs, because of following reasons:-
• Big Indian pharmaceutical companies, which have been taken over by foreign companies, may no longer be willing to apply for a Compulsory Licence even if eligible.
• When government notifies a public emergency and recognizes the need for issue of a CL for a particular drug, sufficient number of capable drug manufactures may not come forward to apply for CL and work it at a reasonable cost.
• There is a concern that foreign companies may utilize the marketing channels of the Indian companies they take over to sell higher cost patented drugs or branded generics rather than the cheaper ones. This may push up drug prices in general.
• Some of the Indian companies taken over were recipients of substantial grants as well as tax concessions. Thus a significant portion of their market value arose because of state support and they were catering to niche markets for relevant drugs. With their transfer to foreign control, they may no longer be interested in doing so.
And to combat these situations, government has only 4 options.
o By invoking ‘Government Use’ provision or by issuing CLs in case of national emergency
o Invocation Of Competition Act, 2002 to check the market reality i.e. price or availability of a drug, consequence of an anti competitive agreement, abuse of dominant position by a company
o Reviewing the policy on foreign investment for pharmaceutical companies. Presently, investment up to 100% in the pharmaceutical sector is on the automatic route. This could be shifted to the government route so that proposals could be scrutinized by the FIPB. This could be a way of monitoring whether new technology is being brought in by a foreign company while taking over an Indian company.
o More power to National Pharmaceutical Pricing Authority
Indian Patent Act, 1970 did not allow product patent of "substances intended for use, or capable of being used, as food or as medicine or drug." This actually catapulted the reverse-engineering mechanism by Indian firms. It encouraged the local firms to produce copies of the drugs by developing their own process. Before the first amendment of the Patent Act in 1995, Government took two major decisions,
Introduction of ‘DPCO’ to protect the Consumers’ interest
‘ Process Patent’ was allowed
In 1995, India became the member of WTO and signatory of TRIPS Agreement. There on, the business aspect of intellectual property rights took a huge turn, the management of IPRs have become an important discourse in the Indian context too. So let’s see what happened between 1995-2005:
• Exclusive Marketing Rights- This new provision has been incorporated in the Patents Act, 1970 as amended by The Patents (Amendment) Act, 1999 with effect from 1st January, 1995 . EMR will be valid for a period of five years or till the date of grant of the patent or date of rejection of the application for the grant of patent whichever is earlier.
• It is now possible to make an application for patent claiming for a substance itself intended for use or capable of being used as Medicine or Drug, excepting the intermediate for the preparation of drug.
• India joined the Paris Convention and the Patent Cooperation Treaty in 1999.
• Abolition of product patents in chemicals and pharmaceuticals has facilitated the development of local technological capability in chemicals and pharmaceutical industry by enabling the domestic firms in their process innovative activity.
Finally, in 2005, Patent Act was amended and some new provisions were included, those are:-
• Provision related to black box application
• Parallel import, grey imports, ”Exhaustion” of rights
• Compulsory licenses
• Herbal preparations
Now in the present context, it seems CLs is the only way out for a poor country like India. The way medicine prices are increasing, the days are not far away when it would be out of reach for the poor. Already, maximum people are beyond reach of costly drugs of Cancer, AIDS or Hepatitis C. Health Care is one of the sectors where India is giving maximum importance, so its government’s duty to make the healthcare industry an easy access for all by ensuring availability of quality medicines in reasonable price and improving the accessibility of essential medicines.
Industry experts believe, the proposed Approval (Government) Route for foreign investment in Pharma sector is a good idea. It would help even in monitoring new technologies, if any, brought by the foreign companies while striking a business deal with an Indian company. On the other hand, technological innovation might get a boost by way of providing technical know-how.
As of now it seems government is a step ahead, though March 31st will give the final answer.
Courtesy:
• DIPP Draft on Compulsory Licencing
• TRIPS: India - Patent Protection for Pharmaceuticals (Article)
• Journal of Intellectual Property Rights
In almost all the cases, Indian companies have been acquired by the overseas companies and that has raised the concern about chances of non-availability of patented drugs locally. Experts believe, this could lead to increase in prices even in the cases of generic drugs. So, DIPP (Department of Industrial Policy & Promotion) is going to implement the Compulsory Licensing for Pharmaceuticals, which is naturally opposed by foreign lobby groups. Now the debate is about, whether at all this Compulsory Licensing is needed & would it affect India’s long term vision in the context of innovation and foreign deals?
Before divulge into any more, let see what is Compulsory Licensing.
“Compulsory licensing is a system whereby the Government allows third parties (other than the patent holder) to produce and market a patented product or process without the consent of the patent owner. Through such interventions, the Governments balance the rights of the patent holder with its obligations to ensure working of patents, availability of the products at a reasonable price, promotion and dissemination of technological invention and protection of public health and nutrition.”
Almost all the developed, developing and under developed countries have Compulsory Licensing provisions. United States of America has six provisions for CLs. Canada practiced the same for a long time. United Kingdom has the proviso in the British Law itself. Italy invoked the same whenever it felt the ‘emergency’. Post Doha round of TRIPS agreement on Public Health, Brazil, Thailand, South Africa, Kenya, Ecuador too have adopted the CL policy.
When the Controller issues a CL on the basis of Central Government’s special notification or of the importing country’s notification or issuance of CLs, they are referred as Category I CLs. The rest falls under Category II where Controller independently takes the call on issuance of CLs.
Under the Indian Patent Act 2005, the issue of CLs has been addressed explicitly in 4 sections. The sections are as follows:-
• Section 84: General CLs (on the basis of application)
• Section 91: Special CLs (on the basis of related patent application)
• Section 92: Special CLs (in the case of National/Extreme Emergency & Public non-commercial use based on notification by Central Govt)
• Section 92A: Special CLs (for manufacture and export of patented pharmaceutical product to any country having insufficient or no manufacturing capacity in the pharmaceutical sector for the concerned product to address public health problems). In addition, use of inventions for the purpose of government and acquisition of inventions by Central Government is clearly mentioned.
There was (and is) argument, whether by bringing the provision of CLs India is violating the TRIPS Compliance. The argument doesn’t have any acceptance as TRIPS has clarified its stand in the context of Public Health in Doha. “In ‘Doha Declaration on the TRIPS agreement and Public Health’ it specifically clarifies that the TRIPS agreement does not and should not prevent Members from taking measures to protect public health. It further affirms the Members rights to protect public health and in particular to promote access to medicines for all.” Article 31 of TRIPS agreement qualifies “other use without authorisation of Right Holder” on 12 specific conditions. Though there is restriction regarding the issuance of CLs in semi conductor technologies, but there’s absolutely no restriction on the issue of public health. TRIPs also stipulate that ‘the right holder shall be paid adequate remuneration in the circumstances of each case, taking into account the economic value of the authorization.’
But the question is, when Strategic Business Alliance in form of M&A, Take Over is common to all industries, why government is only worried about the Pharma sector. Just see the current situation of the industry.
MNCs are taking over the Indian companies. There are increasing concerns by the Government, if such takeover trend continues, an oligopolistic market may develop, which may result in a few companies dictating prices of life saving drugs of HIV/AIDS, Hepatitis C.
• This continuous Takeover trend may weaken the government’s ability in the extreme cases through CLs, because of following reasons:-
• Big Indian pharmaceutical companies, which have been taken over by foreign companies, may no longer be willing to apply for a Compulsory Licence even if eligible.
• When government notifies a public emergency and recognizes the need for issue of a CL for a particular drug, sufficient number of capable drug manufactures may not come forward to apply for CL and work it at a reasonable cost.
• There is a concern that foreign companies may utilize the marketing channels of the Indian companies they take over to sell higher cost patented drugs or branded generics rather than the cheaper ones. This may push up drug prices in general.
• Some of the Indian companies taken over were recipients of substantial grants as well as tax concessions. Thus a significant portion of their market value arose because of state support and they were catering to niche markets for relevant drugs. With their transfer to foreign control, they may no longer be interested in doing so.
And to combat these situations, government has only 4 options.
o By invoking ‘Government Use’ provision or by issuing CLs in case of national emergency
o Invocation Of Competition Act, 2002 to check the market reality i.e. price or availability of a drug, consequence of an anti competitive agreement, abuse of dominant position by a company
o Reviewing the policy on foreign investment for pharmaceutical companies. Presently, investment up to 100% in the pharmaceutical sector is on the automatic route. This could be shifted to the government route so that proposals could be scrutinized by the FIPB. This could be a way of monitoring whether new technology is being brought in by a foreign company while taking over an Indian company.
o More power to National Pharmaceutical Pricing Authority
Indian Patent Act, 1970 did not allow product patent of "substances intended for use, or capable of being used, as food or as medicine or drug." This actually catapulted the reverse-engineering mechanism by Indian firms. It encouraged the local firms to produce copies of the drugs by developing their own process. Before the first amendment of the Patent Act in 1995, Government took two major decisions,
Introduction of ‘DPCO’ to protect the Consumers’ interest
‘ Process Patent’ was allowed
In 1995, India became the member of WTO and signatory of TRIPS Agreement. There on, the business aspect of intellectual property rights took a huge turn, the management of IPRs have become an important discourse in the Indian context too. So let’s see what happened between 1995-2005:
• Exclusive Marketing Rights- This new provision has been incorporated in the Patents Act, 1970 as amended by The Patents (Amendment) Act, 1999 with effect from 1st January, 1995 . EMR will be valid for a period of five years or till the date of grant of the patent or date of rejection of the application for the grant of patent whichever is earlier.
• It is now possible to make an application for patent claiming for a substance itself intended for use or capable of being used as Medicine or Drug, excepting the intermediate for the preparation of drug.
• India joined the Paris Convention and the Patent Cooperation Treaty in 1999.
• Abolition of product patents in chemicals and pharmaceuticals has facilitated the development of local technological capability in chemicals and pharmaceutical industry by enabling the domestic firms in their process innovative activity.
Finally, in 2005, Patent Act was amended and some new provisions were included, those are:-
• Provision related to black box application
• Parallel import, grey imports, ”Exhaustion” of rights
• Compulsory licenses
• Herbal preparations
Now in the present context, it seems CLs is the only way out for a poor country like India. The way medicine prices are increasing, the days are not far away when it would be out of reach for the poor. Already, maximum people are beyond reach of costly drugs of Cancer, AIDS or Hepatitis C. Health Care is one of the sectors where India is giving maximum importance, so its government’s duty to make the healthcare industry an easy access for all by ensuring availability of quality medicines in reasonable price and improving the accessibility of essential medicines.
Industry experts believe, the proposed Approval (Government) Route for foreign investment in Pharma sector is a good idea. It would help even in monitoring new technologies, if any, brought by the foreign companies while striking a business deal with an Indian company. On the other hand, technological innovation might get a boost by way of providing technical know-how.
As of now it seems government is a step ahead, though March 31st will give the final answer.
Courtesy:
• DIPP Draft on Compulsory Licencing
• TRIPS: India - Patent Protection for Pharmaceuticals (Article)
• Journal of Intellectual Property Rights
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