No to Chinese workers in Indian Power sector…

Yes, India’s Home Minister P. Chidambaram has stated that India is home for skilled and semi-skilled worker. So India doesn’t need Chinese workers coming to India in Power Sector. Home Minister has asked companies to recruit Indian workers instead of Chinese workers.


On the other hand, Chinese Government is furious over India’s decision of not providing visas to Chinese workers. Some years back Indian Power Sector opened up for foreign players. India allowed foreign companies to bid for Indian Power Sector. The result was introduction of two Chinese companies “Shanghai Power” and “DongFang Electronics” bidding for Indian Power sector. Chinese Government has stated that Chinese workers are skilled to handle Chinese boilers and turbines so let them work.


But P. Chidambaram has taken a strong stand of not allowing them visas to work in India. It’s good to see that Indian politicians taking strong stands but it will be interesting to see how long they will be able to withstand this decision. But I don’t understand one thing. Reliance power also asked Shanghai Powers to serve power sector in India, but they strictly said that they will employ Indian workers only. So why can’t Indian Government state such thing while signing the pact only?

India: Then and Now…

Date: 05 July 2007.

Scene 1: Corporate office of some Multi National Corporation.

Mr. HR: Mr. CEO, we need some fresh minds coming out of graduation schools right away. This will help us getting the work done smoothly. We have too much of work load and deals to be carried out smoothly. So I want permission from you to recruit some more fresh minds.

Mr. CEO: Mr. HR, I can see the current condition. If you feel the need to recruit some more employees, I don’t see a point in denying the proposal. So I am happy to grant you the permission and I am happy to see the work going fine. Today the market condition is so stupendous that we will not have any problem recruiting some more fresh minds. So, go for it.

Mr. HR: Thank you sir.

Scene 2: Mr. Aaditya is a proud father of one son. He works with a big IT firm.

Son: Dad, I want PS3 gaming station. You have promised me to give that on this birthday. So , are going to keep your word???

Dad: Sure boy, Tomorrow I’ll get it for you. I remember the promise I have made to you. I have no problem in presenting that to you.

Son: Thank you dad, you are awesome. I love you dad.

Dad: I love you too son.

Scene 3: Mr. Ketan – working with a MNC.

Kirti (Ketan’s wife): Darling, we both have enough financial backing now. Don’t you think we should go for 4 BHK flat now? Plus I want a golden jewelery. You haven’t gifted me anything since past 4 months. And everything is going fine these days. Indian economy is rising like anything and there seems to be no problem.

Ketan: Sure darling, all your wishes will be granted sooner than you think. I will right away apply for housing loan, and I don’t see any problem in getting the loan passed within 7-9 days. And we will soon buy a flat of your dreams. And as far as your jewelery is concerned, we will go in market this evening only. Are you happy now???

Kirti: You are such sweetheart honey. I love you. 🙂

Scene 4: Party office of National political party “India Glitz”.

Party leader: Mr. Party Worker, this year spend as much money as you wish. Because this year, the taxes from Indian working class is on higher note. Plus we have so much of money to spend. Make this party branding and publicity the biggest ever. Don’t worry about money, we will flow the money like water.

Party Worker: OK sir. Don’t worry about the publicity and campaigning, we will make it a grand and successful campaign.

Scene 5: Production House of Cute Panda Vehicles Pvt. Ltd.

Mr. CEO: Mr. Production Manager, roll out as many vehicles you can this year. Stretch the capacity to the fullest and make some modifications if needed. Because this year, there is tremendous boom in Indian Economy. People are earning like anything and our production will not go in vain. Because people have the capacity and eagerness to go for it.

Mr. Production Manager: OK sir. This is true that Indian Economy is booming. I will try and roll out as many vehicles as I can using fullest production capacities.

Scene 6:

Stupid common man’s home

Wife: Now as economy is going good. We are getting some benefits from it. So we can repay back the loans quite easily. Now our son can also have higher education, and our daughter’s marriage will not turn out to be a nightmare.

Husband: Yes. The situation is looking good. Lets pray to God that the situation remains same.

Scene 7: Poor slum-dwellers

Wife: Now we can invest in some domestic schemes and get some better money out of it. Returns have increased so we can get something from it.

Husband: Indeed. I am also thinking of investing in some scheme so that I can buy grocery for a whole month. And life will be fine.

Date: 05 July 2008

This is just one year from the previously mentioned date. The scenes that we have discussed above have taken new turns. See how the things have turned out.

Scene 1: Corporate office of MNC.

Mr. HR: Mr. CEO, how are we going to pay for the current employee base that our company is having? We don’t have that much funds, deals and outsourcing has reduced remarkably. So what solution you will suggest??? There seems no escaping from cost cutting.

Mr. CEO: Indeed Mr. HR. There is no escaping from cost cutting. Adding to what you are saying I will suggest you to reduce our employee base. This way we will reducing on our pay out liabilities. Additionally, cut back the payments to 60% directly and cut down on the stationary and all.

Scene 2: Mr. Aaditya, who works in big IT firm.

Son: Dad, I am into 10th standard now. I want a good mobile dad. My old one is almost dead.

Father: Sorry son. This month buying a new handset for you is not possible for me. I have so many liabilities. And plus I now get pretty less salary and running our house on that salary is looking like a circus these days. So I am extremely sorry. You will have to carry on with your old one for some days.

Scene 3: Mr. Ketan working with MNC.

Kirti: Ketan, what is this going on??? You had promised me to buy a 4 BHK flat and gold jewelery. What happened???

Ketan: Darling, try to understand. Now my salary is almost half. Thank god that our home is running fine and without any hassles. The loan I had taken for buying 4 BHK flat is now growing like a monster. The EMIs seem to be burgeoning like anything. I am unable to repay it even. Forget about the Gold jewelery for next one year. I am very sorry.

Scene 4: Production House Cute Panda Vehicles Pvt. Ltd.

Mr. CEO: Mr. Production Manager. Stop the production of vehicles for next 2-3 months. We have so many vehicles lying in the stock that even if we don’ produce for next 3-4 months, our inventory and stock will not get over and cleared.

Mr. Production Manager: I agree with you sir. I will stop the production right away.

Scene 5: Stupid common man

Wife: Look, the sky has broken on us again. There looked a silver lining in the black sky in previous year. We were building so many sweet dreams and what has happened with us. The sky has broken on us. We don’t have money enough to run our house. After the EMI payment of our loan, we hardly have anything to live upon. How our lives will go on???

Husband: Calm down Mrs. Let us pray God and he will suggest some way out of this. What else can we do about this??? Rich people play with money and market. And who suffer for their ill-doings is we. But what else can we do??? Try and manage with this tiny amount only.

Scene 6: Poor slum-dwellers

Wife: Hey God. What wrong we have done? Why are you trying us? We were already living penurious lives, but somehow in the previous year, you showed some ray of hope. But now, everything has been snatched from our hands and destiny. And what are you doing sitting up there??? Just watching the massacre??? Help Lord, Help.

Husband: Don’t blame God dear. He hasn’t done any wrong. But the rich people and politicians are playing with out lives. God is also helpless. Let us go back and enjoy our penurious life again. That was the life we are destined to. We are not destined to get better returns fro anything. We are ignored people and will remain ignored.

Scene 7: Party Head office of National Party “Indian Glitz”

Party Leader: Mr. Party Worker. This year too like previous one, spend money like water, but don’t fail to make the campaign a grand and successful event. Don’t worry about money.

Party Worker: OK sir. Don’t you worry. I will not fail in my duty.

Looking at and going through various conversations and situations, what do you all feel??? Do you feel like being one of them and going through the same situation at some time or other??? This is INDIA: THEN AND NOW. But have you people noticed the difference in above conversation and situations?

In all situations except the Party Office one, the incidences have turned topsy-curvy. Once very happy families are feeling the heat of Financial Crisis. But only politicians are not affected by it. This year in 2009, the Election Budget is somewhere around Rs.100 Thousand Crore. Do you see and figure out how many zeros on 1??? This is really a very huge amount. How can Indian Government sustain amidst all these economic turmoils and grant so much of money to Election??? This huge amount can be used as “Bail-Out Package” effectively. This is very pathetic face of Indian Government and Politics. This needs to be changed. And what are you going to change this scene???

Disclaimer: The names and incidences discussed here are purely fictitious and is work of my mind. Any resemblance with live or dead is purely coincidental. If you find any resemblance of these incidences, blame it on Financial crisis, not me.

Go DESI Way…

Yesterday, when I laid back on my bed, I was thinking what made financial biggies like Lehman and Merril Lynch  file for bankruptcy? Unknown till this time, or rather never thought this will ever happen. Lehman being one of the four major, big Investment Banks, failed to keep the proceedings. The important principle of perpetuity in the process of corporate world has seized to work in case of Lehman Brothers.


And on the other hand, Indian companies, though felt some shocks or tremors of US Economy, sustained  their existence. After going through Media and Newspaper I came to know that, RBI had tightened the screws well in advance, in 2005-06, by going for Securitization.  I also came to know what made the debacle happen in the case of Lehman and Lynch.


After going through this, I felt good being a citizen of India. Being close to those who were craving for MNCs and Foreign Jobs, I was also attracted to it at first. But after careful study and thinking, I thought India is having a huge potential. When I was due for deciding whether to opt for MS degree from Foreign University or PG from Indian University, I decided to opt for “DESI WAY”. Why not??? Doesn’t India provide good education? There are foreign universities who are trying to venture into India now, seeing the potential and knowledge base here. So why follow those who seek Us??? Why not to go “DESI WAY”??


Now after US economy slowdown and debacle of Lehman Brothers and lot of other companies in US failing to keep their existence, India will surely surge ahead of them. Though there are talks that due to debacle in US, recruitments world wide will see recession. I don’t think that will happen. MNCs are still a good option. It is not that every MNC will suffer or all MNCs will suffer. So not to panic about those things.


But the thing I will be doing is “GO DESI WAY”. I will definitely opt for any Indian Company. Because these are the set ups, which will strive through anything. I see the Mantra hereafter should be “GO DESI WAY”. Why not we all come together and make India bigger than US. If we all opt for Indian companies, we will surely surpass US in coming years.


So when are you going “DESI WAY”???


Prasad B. Kulkarni

ITM B School

India in need of Structural Reforms…

Recently I came across some articles from the magazine Business and Economy. I was forced to think on the issue whether India needs Structural Reforms or not? Like categorised in the magazine I am on the side who support the Structural Reforms. 


Some of the facts mentioned in the articles were as follows:

1) 50% Indians don’t have access to banking.

So why should Indian Government think of letting foreign banks open their branches in India? That problem can be solved by making Indian banks reach to those public rather than asking somebody else to do that. Otherwise as suggested by IIPM Think Tank, let Indian Post start a new arm into Banking sector so that automatically almost all the citizens will get access to the banking. By asking Indian Post venture into Banking sector almost about 130,000 banks will be open.


2) Indian Railways is run by 1.4 million i.e. 14 lakh employees. The network of Indian Railways span over about 63,000 kms, around 18,000 railways run daily to nearly 8,000 stations. So this makes Indian Railways with more manpower than Indian Army. So structural reforms in Indian Railways will bring catalystic revolution in Indian Economy.

But currently the situation is bad. An live example of this is: A Kolkata-Delhi flight takes 1 hr 45 mins while the same distance travelled by fastest train takes about 17-18 hrs. On the contrary, A Barcelona-Madrid flight journey takes about 1 hr 15 mins and same by train counts about 2 hrs 40 mins. So we can better understand where we stand in the global standards.







We should learn something from France, China. We can see how technologically advanced they are. Corporatisation and Structural reforms are must for Indian Railways to prosper.


There are various other factors like Poverty, Unemployment where we can work for Structural Reforms. The Education sector today is most corrupted sector. There are so many malpractices in Education Sector. But nobody takes pain to solve such issues. Politicians are busy in extracting money and filling their bags, media is also running on the same path by not following main issues and making government take serious steps towards reforms. Just today I read some news about Politicians grabbing the money which was meant for Bihar Relief Fund. Such a pathetic is the situation in India. All everybody cares about is “Me and Myself”. “I don’t care about others” is the attitude everybody possesses.


There are various other issues in India, about which if I start to talk then time and space both will not be sufficient. Other factors are upto you people to decide and discuss. But this is thinking time for India. And I think India should opt for Structural Reforms keeping individual interestes.


Prasad Kulkarni

ITM B-School,

Navi Mumbai.

Oil Prices – which way they gonna go???

Right from the past 7-8 months, from Jan 2007 to be precise, the world is experiencing recession or slow down. This is mostly because of the credit crunch in US. At first, India or rather Asian countries were looking isolated from the crunch, but along the time, they also felt the heat and crunched down. 


But in this whole scenario, Oil prices were more hitting to Indian economy than anything else. As India is mostly banking on Oil Import for its energy needs, the variation in oil prices hit economy like anything. It jeopardises the whole condition. Thankfully, the condition was not that bad and India is recovering from the oil shock. Oil prices are receding slowly towards $100 mark from $147, the highest ever.




The question remains here is what is the guarantee that oil prices are going to come down. There are two things, either it will go up again or it will come down.


Recently I read an article by Manas Chakravarty in Mint 08 Sept. 2008. He said as the world faced with recession in early 1990’s and in around 2001, oil prices came down by around 40%. And if now the prices come down by 44% again, then the level of oil prices will be around $80-90 per barrel. For this theory he got the support of current recession. And he further says, if the recession stays for even longer time, then oil prices will further recede.


But on the very next day, i.e. on 9 Sept. 2008, there was a news which said that countries like Venezuela, Libya and Iran are thinking over reducing the oil production henceforth. And Venezuela, Libya and Iran are doing this reduction in price so that oil prices don’t fall below $100.  And though OPEC Countries like Saudi Arabia are mute about this decision, they might be silently supporting the decision and will eventually end up in cutting down the production level “silently”. And if this happens, then the oil prices will not come down below $100 mark.


So finally, the question remains unanswered. In the coming future, where we can see oil prices going? Up or Down? And is this scenario pointing towards something else? Has the time come for the World to think over other source of energy other than OIL???


Prasad Kulkarni.

11:49 P.M.

ITM B School,


Navi Mumbai.