Prologue
It’s a lazy Sunday afternoon. After a long time, I got a Sunday which was minus the workload. In a way I was relaxed. As I was quietly spending this time with myself only, my mind started rewinding! And it’s IIMC only… campus, classes, invigilation, students, professors, colleagues and many others.
21st June 2009
First time ever I entered the campus of IIMC at the outskirt of the city. Though, didn’t take a stroll as I was there for a written test and an interview thereafter for the post of the TTA. Naturally very tensed, never ever thought of management, and my first tryst was with IIMC-citadel of management education. What I can roughly remember, I wrote the exam very bad (atleast that was not at all satisfactory to me), gave an interview which didn’t make me happy… so I was pretty sure that this day was my first as well as last day at IIMC…
7th July, 2009
It was drizzling. I was with my sister for her first ever class at college. It was a huge crowd outside as most of the parents or others accompanied their kids for the first day of their campus life. A phone call came from an unknown number, asking me whether I was at home. It was a call from a courier company to deliver an official letter, I asked him to leave the same with my father. Then the real surprise… as I opened the same after coming back, it was offer letter from the IIMC!! It was unbelievable… how could I be among the selected few!! History, Mass Comm, Media- nothing could make me a part of IIMC! I was so unhappy with my performance on 21st, how could professors like that…
8th July, 2009
I made my mind to accept the offer. That means I need to resign from ‘Anandabazar Patrika’ the paper where I was working as a sub editor for last three years. I told my boss about the development, he was not ready to let me go. I had a long discussion with him; he reluctantly accepted the resignation letter. Though I was enjoying the news, its fragrance, and its uncertainty until the last date…
18th August, 2009
After serving the stipulated time of notice period, I bade goodbye to ABP (though don’t know whether forever!!). It was a nice farewell and one of the touching moments of my life. I was such a junior, yet my boss and other colleagues (both seniors and juniors) made me feel so special… I don’t know whether I deserve that!
24th August, 2009
Finally, I joined IIMC as a TTA. So unsure about the job profile, colleagues and many other things. One of the major reasons, why I had joined the institute was to get opportunity to study. First day, as expected went in official work. Later, I was shown my office, which was my address for coming two years. All of my colleagues joined before me, so I was the last person to join. That time term I and IV were almost coming to an end, so for first few days I was jobless. Debarati (now an FP and one of my good friends ever), Deepshikha and Archana (both had left long before) were my first friends there, because of a very funny reason. All of us joined at a later date.
Initial days
There were only three PCs and 19 TTAs, so not even a scope of net surfing, twitting or face booking. That gave me an opportunity to know the campus…lush green compound, surrounded by trees, auditorium, Howrah Bridge, jetty-soon became part of my life. I simply loved the campus. Within few days I got my allotment list from PGP Office i.e. what were the courses I need to work with and who were the respective faculties. My allotment was in Communication and PPM group under three professors. One of them was veteran there; the other one too has spent a good no. of years at IIMC, and another one was very new, first time a course was offered.
Two of the professors asked me to attend the classes and one of them asked me to help him in academic works, but not to attend the classes. I started attending the classes, and the learning phase (both in terms of subjects and experience) began for me.
1st September, 2009
The first ever class I attended at IIMC and loved it, though the subject was completely alien to me. It was a PPM group paper taught by a very new professor. As it was a term V course, STEP students too were there, whose understanding of India’s regulatory environment was very different, thus created lot of fun and sometimes even confusion! Before this, I never attended any class with PPTs as I was a student of regular stream and chalk-duster was the mode of communication.
September 2009-June 2011
Work pressure kept mounting up, odd hour classes had been my regular routine, skipping lunch, running from Acad Block to NTB and MCHV to meet various faculties for academic purpose actually made me slimmer a bit :). I love challenges and can deliver on time even if there’s a huge workload, that might had been noticed, as the days and terms progressed, newer subjects came to me. I never had any term since December, 2009 less than five subjects and less than 14 classes a week!!
Still, I loved the job. It was a huge learning experience. Wrongly, I started feeling I am part of IIMC.(Why wrongly I would come later).
In between, for some reasons, a special bond had grown naturally with batch 46/16. Many of them started considering me as their friends and vice-versa, some of them sister. Many a times, I started spending my free time (which I barely got) with them in the campus. Parama, Drishya, Shelly, Amlan, Abhinav, Amit, Ankit and Shreyans to name a few with whom I was (and still am) in touch and close too. Though, getting ‘friendly’ with the students was seen badly by some and later a complaint was raised. But this much I can say with pride, they are real friends who stood by me thick and thin, which many of my ‘close’ and ‘near’ ones didn’t do.
Bonds are natural, that can’t be consciously made. So what I used to share with 46/16th batch, that was never the case with 47/17th or 48/18th. Though some of the students from 47th batch are my friends and I cannot forget the FPs with whom I spent quality time.
Special moments in Campus
I was lucky enough to attend IIMC’s Golden Jubilee celebration last year. As a part 50th year commemoration and Institute Lecture Series, I had the opportunity to hear Gov. of WB M K Narayanan, Prime Minister Manmohan Singh, Finance Minister Pranab Mukherjee, Comrade Sitaram Yechuri and other distinguished guests from different walks of life.
I am happy that whoever faculty I had worked under, almost all of them wished to have me as a TTA again in their courses. I cannot ask for more. This was indeed a proud moment for me. A non-MBA, general background student with no experience in any MBA curriculum could get such an acknowledgement from the faculties of IIMC was like dream come true.
I can still recount the words of a very senior faculty of PPM group, who introduced me to batch 48/18th in his compulsory class of IEPH as, “a young scholar who assists me... She has more power than me & would help you too if she has enough time''. How much this had boosted my confidence I cannot tell, but I surely know it was the greatness of the professor, I don't deserve so much... I am honoured. There were many such moments with some other faculties too.
There were not-so-happy moments too. Some faculties didn’t even feel to say a simple ‘thank you’ after the terms were over, though I didn’t give any lesser efforts in their subjects. Some of the faculties made ‘mountain of a molehill’on some insignificant issues, some felt ‘reluctant’ TTAs should go and many other things. All of these have been learning experiences for me. I realised, giving one’s best is not always the best to the person you are working for. It had given me the opportunity to better my performance.‘
Among many spots, I won’t forget library, staff canteen, Machan, coffee shops at Acad block and at NTB and SBI Joka. In last two years I was a frequent visitor to these places.
4th July, 2011
This was a special day for me, nothing to do with America’s Independence Day. I had learnt the single biggest lesson of my life on this date. Before this, I had paid for trusting people, but this was much bigger in its reach. I called myself a ‘Use and Throw’ object, this name was again proved perfect for me.
22nd August, 2011
Another date I won’t ever forget. Again I paid for my straightforwardness and not being diplomatic. This day had made me feel ‘I am nothing but a useless contractual staff, which would only listen and digest, must not reply back!!’ That very day I realised, time has come to say goodbye to this august institute and decided to leave as soon as possible.
15th September, 2011
I tendered my resignation to PGP Chairman. The decision was not easy to take as I didn’t have any alternative in hand and whatever I earn I have to support my family. I didn’t tell anyone about this as by then (thanks to some great people on campus) I had become unacceptable & unwanted to all, mostly to my colleagues. But news of my resignation had somehow spread, though no one asked me anything!! It had become an open secret.
10th October, 2011
I used to go to campus on my own in the morning. On this day, I deliberately didn’t take the private bus but availed the Office bus from Gol Park, just to feel little special. While entering, I read the signboard, (which is little hidden by the trees) very slowly ‘Indian Institute of Management Calcutta’. I loved this campus more than anything else. So entering there for the last time made me sentimental.
Some of the professors asked me to stay back when I went to meet them to bid adieu. That made me feels good as well as sad. Good because there are some faculties around, who had acknowledged my effort and wanted me in the campus and sad because, I knew it was not possible. I wanted to meet all of my faculties on my final day, but that was not possible, but as a token of gratitude card and e-mail reached to all.
Students of batch 47/17th and 48/18th wrote me on my departure. I was touched by their responses. Some of my colleagues (TTAs) too were there for me.
Before taking the bus in the evening, I took a stroll from Acad Block to MCHV, NTB, Audi, New hostels, Howrah Bridge. Clicked some photos of the beautiful campus. Unknowingly, a drop of tear or two rolling down and I suddenly recalled 21st June, 2009; that day I came alone, in between 2 years 3 month, when I left, I was alone too.
Epilogue
IIMC is a great place to be in. I just want to remember the pleasant moments, because bad moments always get a permanent seat in one’s mind.
I cannot forget the colourful campus of winter with various flowers unwinding their petals, the divine rain which made the campus romantic and more lovable, those reptiles especially the snakes, with whom I had an uncommon friendship, school of fish on the upper layer of the water, chirping of the birds in the evening and L1, L2, L3, L4, small lecture halls at Acad block and NAB during the classes and invigilation. But more importantly IIMC as a whole- one soul called among so much diversity.
My best wishes will be always with you, may you celebrate 500 years of excellence in education like you are doing in your 50th Year. I am thankful to you that you had given me the chance to be with you for more than two years.
My biggest achievement I guess is students love me and at least some of the professors think me of a good TTA. A teaching associate cannot ask for more!
Cheers and Hats off!!
Sunday, 30 October 2011
Monday, 22 August 2011
The Blue Turban
A technocrat in his famous blue turban has done everything what was expected from him. From scope of Management education to Economic Reforms, Double dip in world economy to India’s success story- he touched upon all aspects and cleverly referred Lokpal Bill as ‘a topic of discussion’ under the broader spectrum of governance failure! Politician in him compelled him to say some words on Bengal politics too.
Yes, for the first time ever the Prime Minister of India, Dr. Manmohan Singh has graced the IIM Calcutta’s campus at Joka to deliver the Golden Jubilee speech of the institute. West Bengal Governor Mr. M K Narayanan and West Bengal CM Mamata Banerjee were his companions in the programme. He started his campus touring by planting a sapling. Then straight into the auditorium where guests, faculty, students and staffs were waiting to listen to him.
Nothing ‘unpredictable’ happened in this campus unlike IIT Kharagpur where he went later for the Convocation and students protested before him in support of Anna Hazare and his demands for Jan Lokpal Bill. IIMC was a fort with police and security personnel were busy maintaining the PM’s security!
As expected, the Lokpal Bill controversy has taken a backseat amongst this august audience. He brought the reference of Corruption under governance failure issue, where he touched upon the danger of inefficiency and Cronyism if ‘aam aadmi’ is forced to pay bribes to government agencies. He brought back the memory of Licence Raj and wide spread corruption related to that. Abolition of the same has helped in curbing the unfair practices.
But the name which he carefully avoided is Anna Hazare, the man who has shaken the conscience of the nation. His campaigns, not even for a fraction of seconds found any direct mention in the speech. Rather he welcomed debate on Lokpal Bill inside the Parliament! And those who have (read Anna Hazare) different views must send their representatives to the House to discuss. The underneath message was that Ramlila Maidan is not a suitable place for this. Black money, pending reforms of judiciary all were present when he was telling ‘government is open to discussion for Lokpal Bill, which is now with the Standing Committee.’
He was never an orator, rather he always reads out the rehearsed scripts with his scholarly approach. This time too, there was no exception. Shades of Economist Manmohan Singh came out over and again in his speech. He took silent pride in the fact that twenty years back he advocated and brought in Macro Economic Reforms which is till date yielding ‘great results’ in market economy. That time a controversial step actually had shown India a positive side of growth path by widening the way for more capital investments in form of Foreign Direct Investment, Merger & Acquisition etc.
PM rightly made the audience think the positive side of Japan, Korea and Chinese successes of economic prosperity. As this is an ‘Asian Century’ so this is a high time to think beyond Dollars and Euros, but never write them off. He is confident that India will achieve the objective of sustainable inclusive growth at the 9% rate, though in this year it is a bit slow!
But the real show stealer is Mamata. At her original and spontaneous best she said, “IIMC is first national institute of Bengal (sic)! IIMC was founded on 14th November, 1961. This is not only an asset but foundation of India. Tomorrow is in your hand for its students and research programmes.” This is not a big mistake on CM’s part that Kolkata is proud of Calcutta University (1857) and Jadavpur University (1905) which she has forgotten to mention. In her style, which is known as ‘didism’ she gave back the shawl to a student which was presented to CM as a memento! Clapping continued till the end!
Again to the PM. What was his message to the students, he requested all the future managers to maintain transparency in decision making. He focused on the fact that for IIMC only Kolkata is on the global management map! He fondly recalled the achievements of IIMC alumnus Indra Nooyi in business circuit and Malli Mastan Babu in mountaineering! They would inspire and encourage the future managers what he strongly believes.
Mamata on stage and nothing political about it, how could that be? Dr. Singh emphasized on the fact the ‘lost glory of Kolkata must be reclaimed’ as change of regime has taken place recently. He said that, there were times when Kolkata was known for its creativity and a thriving learning centre. Time has come to rejuvenate West Bengal polity, economy and human endeavours!!
But what was completely remained untouched that how could policy reforms initiate the change in social reforms and when reforms would be seen from a multi dimensional angle, rather than treating it as an economic & financial explanation! Why the government is so busy with 9% growth rate when 40% of the population doesn’t get full square mill every day? I believe too much focus on reforms actually widened the gulf between rich and poor. If poverty is not eradicated, how could India become the numero uno contributor for Asian Century?
The man who is known as ‘the honest’ person of Indian politics is unfortunately nicknamed as ‘Manmohan Singh Ghotala’, thanks to series of scans. Had he been more transparent on the Jan Lokpal Bill today, that might have given him certain edge, though this is what I personally believe.
Yes, for the first time ever the Prime Minister of India, Dr. Manmohan Singh has graced the IIM Calcutta’s campus at Joka to deliver the Golden Jubilee speech of the institute. West Bengal Governor Mr. M K Narayanan and West Bengal CM Mamata Banerjee were his companions in the programme. He started his campus touring by planting a sapling. Then straight into the auditorium where guests, faculty, students and staffs were waiting to listen to him.
Nothing ‘unpredictable’ happened in this campus unlike IIT Kharagpur where he went later for the Convocation and students protested before him in support of Anna Hazare and his demands for Jan Lokpal Bill. IIMC was a fort with police and security personnel were busy maintaining the PM’s security!
As expected, the Lokpal Bill controversy has taken a backseat amongst this august audience. He brought the reference of Corruption under governance failure issue, where he touched upon the danger of inefficiency and Cronyism if ‘aam aadmi’ is forced to pay bribes to government agencies. He brought back the memory of Licence Raj and wide spread corruption related to that. Abolition of the same has helped in curbing the unfair practices.
But the name which he carefully avoided is Anna Hazare, the man who has shaken the conscience of the nation. His campaigns, not even for a fraction of seconds found any direct mention in the speech. Rather he welcomed debate on Lokpal Bill inside the Parliament! And those who have (read Anna Hazare) different views must send their representatives to the House to discuss. The underneath message was that Ramlila Maidan is not a suitable place for this. Black money, pending reforms of judiciary all were present when he was telling ‘government is open to discussion for Lokpal Bill, which is now with the Standing Committee.’
He was never an orator, rather he always reads out the rehearsed scripts with his scholarly approach. This time too, there was no exception. Shades of Economist Manmohan Singh came out over and again in his speech. He took silent pride in the fact that twenty years back he advocated and brought in Macro Economic Reforms which is till date yielding ‘great results’ in market economy. That time a controversial step actually had shown India a positive side of growth path by widening the way for more capital investments in form of Foreign Direct Investment, Merger & Acquisition etc.
PM rightly made the audience think the positive side of Japan, Korea and Chinese successes of economic prosperity. As this is an ‘Asian Century’ so this is a high time to think beyond Dollars and Euros, but never write them off. He is confident that India will achieve the objective of sustainable inclusive growth at the 9% rate, though in this year it is a bit slow!
But the real show stealer is Mamata. At her original and spontaneous best she said, “IIMC is first national institute of Bengal (sic)! IIMC was founded on 14th November, 1961. This is not only an asset but foundation of India. Tomorrow is in your hand for its students and research programmes.” This is not a big mistake on CM’s part that Kolkata is proud of Calcutta University (1857) and Jadavpur University (1905) which she has forgotten to mention. In her style, which is known as ‘didism’ she gave back the shawl to a student which was presented to CM as a memento! Clapping continued till the end!
Again to the PM. What was his message to the students, he requested all the future managers to maintain transparency in decision making. He focused on the fact that for IIMC only Kolkata is on the global management map! He fondly recalled the achievements of IIMC alumnus Indra Nooyi in business circuit and Malli Mastan Babu in mountaineering! They would inspire and encourage the future managers what he strongly believes.
Mamata on stage and nothing political about it, how could that be? Dr. Singh emphasized on the fact the ‘lost glory of Kolkata must be reclaimed’ as change of regime has taken place recently. He said that, there were times when Kolkata was known for its creativity and a thriving learning centre. Time has come to rejuvenate West Bengal polity, economy and human endeavours!!
But what was completely remained untouched that how could policy reforms initiate the change in social reforms and when reforms would be seen from a multi dimensional angle, rather than treating it as an economic & financial explanation! Why the government is so busy with 9% growth rate when 40% of the population doesn’t get full square mill every day? I believe too much focus on reforms actually widened the gulf between rich and poor. If poverty is not eradicated, how could India become the numero uno contributor for Asian Century?
The man who is known as ‘the honest’ person of Indian politics is unfortunately nicknamed as ‘Manmohan Singh Ghotala’, thanks to series of scans. Had he been more transparent on the Jan Lokpal Bill today, that might have given him certain edge, though this is what I personally believe.
Tuesday, 16 August 2011
The Close(d) Chapter
A confession.
Several explanations.
Pleading. Repenting. Crying.
A second thought before taking the final call. It could have been a different story, but forgiving is the best human virtue and the same was done.
This is just the prelude.
The second part is about forgetting. Long back, in a school text there was a piece called “The Forgetting”. The hilarious article catered around why forgetting is a good exercise and the best medicine for human brain. But in reality, one cannot forget everything even if one wishes to.
Many-a-times it happens that an apparently forgotten past becomes alive in the present context; things that were “conveniently forgotten” start occupying a significant space in different circuits under the title of ‘defamation’ and ‘mudslinging’.
Let us see some instances of slander and insult.
• Suggestions to modify the course content and inclusion of certain elements in order to make the subject more lively and enjoyable is considered to be a tool for “defamation”.
• “If there is no politics around, I think you will be the first beneficiary of it”- these words signify, not the belief of a person in somebody’s abilities, but his/her ulterior motive of maligning someone.
• Predicting almost the accurate feedback of a person, based on the observation of what that person is capable of doing, earns the predictor the title of ‘Octopaul’. However, later on as things take a turn, even the congratulatory messages start to be considered as a means to “pull him down” from his popularity.
• The one who listened to and followed the advice of a person in case of any difficulties has been called “two sides of the same coin”. Ironically, it was the same “coin” who categorically stated, ‘NO, THIS CANNOT BE… YOU ARE MAKING A HUGE MISTAKE’, when a nasty allegation against the same individual was raised by mystery phone call. However, the defender was held responsible for it later.
• A request for translating a text in the regional language to English is turned down because of one’s inability to read the native language. But the irony is, the person is most fluent in that language and has a command over the same.
• Several phone calls, sms, chats, e-mails and endless conversations were forgotten by both the people concerned. Likewise, presenting a ‘certificate’ to show gratitude towards the “most deserving” individual on a special day, has been easily forgotten by the addressed, and has been termed as mud-slinging.
• Social Networking is the best invention of 21st century to connect with people. But giving excuses regarding certain “technical difficulties” which cannot be solved from abroad, and thereby rejecting a friend request even after asking to send one was too insulting a circumstance to be forgotten, but the sender had to forget it for bigger professional interests; it was clearly demarcated that a non-branded object cannot find its place among the established brands; that would deface the bigger brands! Another big issue cropped up when a webpage was found in the name of a particular person. However, nothing malicious was written there and surprisingly, the person who reported it, was blamed to have created the page!
• There are certain talks for talk’s sake; Promises of foreign chocolates, treats etc. were forgotten as soon as they were made. It was evident that they were simply some casual words. A ‘mercenary’ can never share the same platform as the General. No General would devalue his status for an inferior, incompetent mercenary soldier
• A discovery was made, that even the official mails could be fake as no one ever ‘choosed’ a particular individual for any professional assistance, although evidences hint otherwise. And surprisingly enough, that particular individual continued to assist till ‘the relieving order’ came. Although, decision of ‘relieving’ was taken much earlier, the assistance was sought till the last moment without revealing the actual fact. Yet, the person was called ‘reluctant.’
This could be called a learning experience, the essential lessons being innumerable. Rediscovering one’s self was probably the most significant one. This could reveal the unknown mischieves, uncover the hidden malice in one’s self and make one aware of the degree of ‘immorality’, ‘credibility’ and ‘professionalism’.
It is very generous of the person to have allowed such an immoral individual to learn so many things, in spite of knowing the malicious intentions right from the beginning. Yet the incident is a ‘closed chapter and a small one’. But, this ‘Closed Chapter’ lingers on in the sub conscious mind and cannot be forgotten ever.This could continue to be a permanent tag with a particular place.
Everyone says ‘time is a great healer’, however, time can only help people get used to the wounds instead of healing them. Many-a-times a ‘Closed Chapter’ becomes a CLOSE CHAPTER.
Yes, this is indeed a CLOSE(D) CHAPTER.
Several explanations.
Pleading. Repenting. Crying.
A second thought before taking the final call. It could have been a different story, but forgiving is the best human virtue and the same was done.
This is just the prelude.
The second part is about forgetting. Long back, in a school text there was a piece called “The Forgetting”. The hilarious article catered around why forgetting is a good exercise and the best medicine for human brain. But in reality, one cannot forget everything even if one wishes to.
Many-a-times it happens that an apparently forgotten past becomes alive in the present context; things that were “conveniently forgotten” start occupying a significant space in different circuits under the title of ‘defamation’ and ‘mudslinging’.
Let us see some instances of slander and insult.
• Suggestions to modify the course content and inclusion of certain elements in order to make the subject more lively and enjoyable is considered to be a tool for “defamation”.
• “If there is no politics around, I think you will be the first beneficiary of it”- these words signify, not the belief of a person in somebody’s abilities, but his/her ulterior motive of maligning someone.
• Predicting almost the accurate feedback of a person, based on the observation of what that person is capable of doing, earns the predictor the title of ‘Octopaul’. However, later on as things take a turn, even the congratulatory messages start to be considered as a means to “pull him down” from his popularity.
• The one who listened to and followed the advice of a person in case of any difficulties has been called “two sides of the same coin”. Ironically, it was the same “coin” who categorically stated, ‘NO, THIS CANNOT BE… YOU ARE MAKING A HUGE MISTAKE’, when a nasty allegation against the same individual was raised by mystery phone call. However, the defender was held responsible for it later.
• A request for translating a text in the regional language to English is turned down because of one’s inability to read the native language. But the irony is, the person is most fluent in that language and has a command over the same.
• Several phone calls, sms, chats, e-mails and endless conversations were forgotten by both the people concerned. Likewise, presenting a ‘certificate’ to show gratitude towards the “most deserving” individual on a special day, has been easily forgotten by the addressed, and has been termed as mud-slinging.
• Social Networking is the best invention of 21st century to connect with people. But giving excuses regarding certain “technical difficulties” which cannot be solved from abroad, and thereby rejecting a friend request even after asking to send one was too insulting a circumstance to be forgotten, but the sender had to forget it for bigger professional interests; it was clearly demarcated that a non-branded object cannot find its place among the established brands; that would deface the bigger brands! Another big issue cropped up when a webpage was found in the name of a particular person. However, nothing malicious was written there and surprisingly, the person who reported it, was blamed to have created the page!
• There are certain talks for talk’s sake; Promises of foreign chocolates, treats etc. were forgotten as soon as they were made. It was evident that they were simply some casual words. A ‘mercenary’ can never share the same platform as the General. No General would devalue his status for an inferior, incompetent mercenary soldier
• A discovery was made, that even the official mails could be fake as no one ever ‘choosed’ a particular individual for any professional assistance, although evidences hint otherwise. And surprisingly enough, that particular individual continued to assist till ‘the relieving order’ came. Although, decision of ‘relieving’ was taken much earlier, the assistance was sought till the last moment without revealing the actual fact. Yet, the person was called ‘reluctant.’
This could be called a learning experience, the essential lessons being innumerable. Rediscovering one’s self was probably the most significant one. This could reveal the unknown mischieves, uncover the hidden malice in one’s self and make one aware of the degree of ‘immorality’, ‘credibility’ and ‘professionalism’.
It is very generous of the person to have allowed such an immoral individual to learn so many things, in spite of knowing the malicious intentions right from the beginning. Yet the incident is a ‘closed chapter and a small one’. But, this ‘Closed Chapter’ lingers on in the sub conscious mind and cannot be forgotten ever.This could continue to be a permanent tag with a particular place.
Everyone says ‘time is a great healer’, however, time can only help people get used to the wounds instead of healing them. Many-a-times a ‘Closed Chapter’ becomes a CLOSE CHAPTER.
Yes, this is indeed a CLOSE(D) CHAPTER.
Friday, 22 July 2011
Hats Off Prof. Sreenivasan
Veni Vidi Vici- ‘I came, I saw, I conquered’. Prof. Sree Sreenivasan could well make it his tagline for his USIS lecture on Social Networking! As a participant, I found his talk no less than mesmerizing.
On 19th July, 2011 American Centre, Kolkata has arranged a session with Columbia University Professor and Dean Dr. Sreenivasan. The discussion was centering on how social networks actually could play a role in democracy.
In recent past, we have seen some popular uprising in Middle East and Egypt, which are popularly referred to as twitter or Facebook revolution. Professor interacted on this in a very lively manner, though the title of the discussion was ‘New Media: Defining Democracy’ but it was never so limited in discussion. In a lively manner, professor through his wonderful presentation took us to the universe of the social networking. What are the countries that are hooked into this, what’s the latest trend in this, can an individual stay really aloof from social networking in present day scenario etc.
In India, I can bet that no institution can ever think of having a lecture period on Facebook, Orkut, Twitter or Google Plus. But Prof. Sreenivasan has been doing this in the Columbia School of Journalism for past few years. Actually, he encourages students on getting into social networking so that actually it ‘ruins their interest’ in it!
Time to time there was snap polls that how many in the audience actually know how to connect on linkedin and twiiter and some other interesting stuffs. The response was really surprising, most of us really don’t know the mechanism of those sites. Large number of school students were present and they made the programme very lively with their continuous participation.
In the course of the discussions, good, bad and the ugly side of the social networking has been focused upon. The renowned digital media from USA emphasized the need for social media practices that balances in perfect tune on & off line status.
How did the professor himself be part of Facebook? That’s co-incidentally a Kolkata connection. He glued into the ‘Scrabulous’ (online Scrabble) – popular game on Facebook, much before Farmville and Mafia became everyone’s darling! It has been developed by St Xavier’s College alumni Jayant and Rajat Agarwala, that attracted him to join it. Though in this city of warmth, this is Professor’s first visit!
In the lively Q&A session, moderated by veteran journalist Snehasis Sur, so many interesting questions came up. One of them was how far face book ‘revolution’ or ‘peace initiative’ can yield result? Isn’t profanity a common practice on the social media platform?
Isn’t social media making us ‘unsocial’ too? He considered the scenario as ‘glass half filled’. He told, “My family is in four countries, so it’s the best platform to keep in touch with each other.” Humorously enough, how so many eyebrows were raised when his FB friends saw he (Prof. Sreenivasan) is now friend with his mother-in-law! But he himself has taken a tough challenge that how for another 5 years he would keep away his kids away from this networking world. His twins will reach teen then.
Though he is for social networking, but he never encouraged fake accounts on networking sites. To keep inquisitive parents and curious cousins at bay, he advocated a real name culture. In his words, “You should have only one account on any social website because then you will be more real. It won’t be a case of split personality…”
He was introduced to us by Acting USA Consul General in Kolkata Clinton S “Tad” Brown as a person who teaches facebook and orkut (In India many would lose their consciousness after knowing this) but the most skeptic of the same. And all I can say the ‘City of Joy’ welcomed him with his skepticism & mastery.
Professor, waiting eagerly to meet you again…
Welcome back to ‘Coolcutta’!
On 19th July, 2011 American Centre, Kolkata has arranged a session with Columbia University Professor and Dean Dr. Sreenivasan. The discussion was centering on how social networks actually could play a role in democracy.
In recent past, we have seen some popular uprising in Middle East and Egypt, which are popularly referred to as twitter or Facebook revolution. Professor interacted on this in a very lively manner, though the title of the discussion was ‘New Media: Defining Democracy’ but it was never so limited in discussion. In a lively manner, professor through his wonderful presentation took us to the universe of the social networking. What are the countries that are hooked into this, what’s the latest trend in this, can an individual stay really aloof from social networking in present day scenario etc.
In India, I can bet that no institution can ever think of having a lecture period on Facebook, Orkut, Twitter or Google Plus. But Prof. Sreenivasan has been doing this in the Columbia School of Journalism for past few years. Actually, he encourages students on getting into social networking so that actually it ‘ruins their interest’ in it!
Time to time there was snap polls that how many in the audience actually know how to connect on linkedin and twiiter and some other interesting stuffs. The response was really surprising, most of us really don’t know the mechanism of those sites. Large number of school students were present and they made the programme very lively with their continuous participation.
In the course of the discussions, good, bad and the ugly side of the social networking has been focused upon. The renowned digital media from USA emphasized the need for social media practices that balances in perfect tune on & off line status.
How did the professor himself be part of Facebook? That’s co-incidentally a Kolkata connection. He glued into the ‘Scrabulous’ (online Scrabble) – popular game on Facebook, much before Farmville and Mafia became everyone’s darling! It has been developed by St Xavier’s College alumni Jayant and Rajat Agarwala, that attracted him to join it. Though in this city of warmth, this is Professor’s first visit!
In the lively Q&A session, moderated by veteran journalist Snehasis Sur, so many interesting questions came up. One of them was how far face book ‘revolution’ or ‘peace initiative’ can yield result? Isn’t profanity a common practice on the social media platform?
Isn’t social media making us ‘unsocial’ too? He considered the scenario as ‘glass half filled’. He told, “My family is in four countries, so it’s the best platform to keep in touch with each other.” Humorously enough, how so many eyebrows were raised when his FB friends saw he (Prof. Sreenivasan) is now friend with his mother-in-law! But he himself has taken a tough challenge that how for another 5 years he would keep away his kids away from this networking world. His twins will reach teen then.
Though he is for social networking, but he never encouraged fake accounts on networking sites. To keep inquisitive parents and curious cousins at bay, he advocated a real name culture. In his words, “You should have only one account on any social website because then you will be more real. It won’t be a case of split personality…”
He was introduced to us by Acting USA Consul General in Kolkata Clinton S “Tad” Brown as a person who teaches facebook and orkut (In India many would lose their consciousness after knowing this) but the most skeptic of the same. And all I can say the ‘City of Joy’ welcomed him with his skepticism & mastery.
Professor, waiting eagerly to meet you again…
Welcome back to ‘Coolcutta’!
Sunday, 3 July 2011
Cyclone: The story of an Individual
Assumption & Prejudice are two deadly words in the English Dictionary. Actually this is what I believe. If a person’s act is driven by assumption and prejudice that cannot be good for anyone.
Just to share, I used to know a person who was in colloquial term can easily be tagged as ‘metro sexual.’ I was pretty open with him almost in every sort of discussions, but that can cause some heart burn in some other places, I never ever even think of. Not even once.
But my inability to understand certain indication of brewing storm actually resulted in a hurricane. Or should I call it a cyclone? Hurricane has a shorter life span than cyclone, so am attributing this as a cyclone.
Why it’s a cyclone? Because it has a far-reaching effect, the immense casualty, massive destruction and recovery (if at all) would take a long time and above all the people who are in face of it (here it’s in a singular term) is Helpless. So I am not finding much difference between the natural cyclone caused by the movement of the wind and the man-made cyclone caused by the movement of certain communication tools!
And this cyclone is based on Assumption & Prejudice. The assumption was that a particular person favours a particular person over others and the very assumption is based on prejudice of a third person. Deadly combination of this prejudice and assumption actually destroyed a firm base of professionalism & healthy working condition.
This is not like actual cyclone that after the rebuilding everything will fade away from memory, but actually this has a huge after effect: THIS CANNOT BE REBUILT. It would definitely fade away from memory of certain individuals who are not directly or indirectly hit in this, but the person who faced 4-fold attack from different direction, for that individual, this would probably continue to stay as ‘The MEMORY’ of a certain place.
Cyclone cannot do any good to anybody, but here the case is slightly different… It actually benefitted all other than an ill-fated individual, who is still in process to find out why of things!!
Just to share, I used to know a person who was in colloquial term can easily be tagged as ‘metro sexual.’ I was pretty open with him almost in every sort of discussions, but that can cause some heart burn in some other places, I never ever even think of. Not even once.
But my inability to understand certain indication of brewing storm actually resulted in a hurricane. Or should I call it a cyclone? Hurricane has a shorter life span than cyclone, so am attributing this as a cyclone.
Why it’s a cyclone? Because it has a far-reaching effect, the immense casualty, massive destruction and recovery (if at all) would take a long time and above all the people who are in face of it (here it’s in a singular term) is Helpless. So I am not finding much difference between the natural cyclone caused by the movement of the wind and the man-made cyclone caused by the movement of certain communication tools!
And this cyclone is based on Assumption & Prejudice. The assumption was that a particular person favours a particular person over others and the very assumption is based on prejudice of a third person. Deadly combination of this prejudice and assumption actually destroyed a firm base of professionalism & healthy working condition.
This is not like actual cyclone that after the rebuilding everything will fade away from memory, but actually this has a huge after effect: THIS CANNOT BE REBUILT. It would definitely fade away from memory of certain individuals who are not directly or indirectly hit in this, but the person who faced 4-fold attack from different direction, for that individual, this would probably continue to stay as ‘The MEMORY’ of a certain place.
Cyclone cannot do any good to anybody, but here the case is slightly different… It actually benefitted all other than an ill-fated individual, who is still in process to find out why of things!!
Monday, 13 June 2011
Result Out: One Month On...
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.
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, 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
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