Rise like Lions
"Rise like Lions after slumber
In unvanquishable number –
Shake your chains to earth like dew
Which in sleep had fallen on you –
Ye are many – they are few.’
- Percy Bysshe Shelle
That is what Uninor might be thinking right now. Uninor is the Indian arm of Telenor, Norway. Uninor procured a 2G license and spectrum during the tenure of now indicted former union minister Mr A. Raja. Supreme court in a recent landmark verdict, annulled all the 122 licenses handed out by then union minister. Uninor was all set to take on the Indian telecom market with extensive service coverage but it has ran out of steroids.
There are no shortcuts to success in personal life or in business. One can grease ones way out of a tough regulation once in a while but that success will not be sustainable. One day the panacea will run out.
In India is a country that faces a lot of socio-economic problems. Our policy makers feel that quota system or direct cash transfers are going to solve the problem. This shows the myopia of the policy makers to the deep rooted problems of our Indian society. We need to address the evils like caste system, illiteracy and corruption. There are no pills for these disease. We need to bring changes at the grass roots level. If anyone thinks that our problems can be solved by prescription drugs, they are wrong. One day the prescription is going to run out.
Euro Zone: Greek Crisis
How it happened.
When Greece joined euro zone, it discarded drachma as its currency and embraced euro , the currency of the union. This made it easy and cheap for Greece to borrow for extravagant events like Athens Olympics and public spending. Public sector wages soared over the years and revenue from taxes were dwindling.
As in any households case – when expenditure exceeded income – debt mounted. Fear of Greek default increased the interest rates at which Greece could borrow. This erased any possibility whatsoever that Greece debt would be repaid.
For a normal country currency devaluation would offer a way out. It will increase the exports and may balance the deficit to some extent but valuation of Euro was not in Greek hands.
European Central Bank purchased Greek bonds worth 200bn Euros.
The only solution is default. Lenders knew that there is always a possibility that Greece might default. So rather that bailing out Greece with European tax payers money, lenders should be forced to take the burn.
Since ECB holds a major portion of the Greek debt, in case of a default ECB might go bankrupt. This will destabilise Euro and entire Union. Many people doesn’t want this to happen.
Extract from The Hanging
It is curious, but till that moment I had never realized what it means to destroy a healthy, conscious man. When I saw the prisoner step aside to avoid the puddle, I saw the mystery, the unspeakable wrongness, of cutting a life short when it is in full tide. This man was not dying, he was alive just as we were alive. All the organs of his body were working — bowels digesting food, skin renewing itself, nails growing, tissues forming — all toiling away in solemn foolery. His nails would still be growing when he stood on the drop, when he was falling through the air with a tenth of a second to live. His eyes saw the yellow gravel and the grey walls, and his brain still remembered, foresaw, reasoned — reasoned even about puddles. He and we were a party of men walking together, seeing, hearing, feeling, understanding the same world; and in two minutes, with a sudden snap, one of us would be gone — one mind less, one world less.
-Orwell
For the girl with a sunny smiling face.
You gave me countless smiles
You gave me sleepless nights
I asked for your number thrice
Never gave me my bumper prize.
Forests: Our Lifelines
“Forests are poems written by God on earth”
The word ‘forest’ conjures up an image of green hills framed by a blue sky with birds of all colours singing lullabies to the tune of a nearby stream. It warms up the heart to a feeling of nostalgia for the ancient home of all mankind. Beneath this postcard image, forests hide a biological system with distinct, myriad interrelationships of the living part of the environment (plants, animals and micro-organisms) to each other and to the non-living parts (soil, climate, water, organic debris, rocks). This biological system, which occupies nearly 30% of total land, with its complex interrelationships forms an essential element in human existence on this planet.
Classification of Forests
Forests are classified into five basic groups depending on the type of trees
Temperate and Boreal Needleleaf
Temperate and Boreal needleleaf forests occupy sub arctic zones and higher latitudes. The flora mainly consists of evergreen coniferous forests. Boreal forests are also known as Taiga and are found in Canada and Northern Russia.
Temperate Broadleaf and Mixed
They are mostly found in humid climes of temperate regions of globe. Western and Eastern Himalayan broadleaf forests come under this category. Oaks and rhododendrons predominates this type of forests. Nampadha National park in Arunachal Pradesh falls under this category of forests.
Tropical Moist
This category includes tropical rainforests, deciduous forests and mangroves. Tropical moist forest is a typical characteristic of Indomalaya Ecozone.
Tropical Dry
Tropical dry forests are characteristic of areas in the tropics affected by seasonal drought. The seasonality of rainfall is usually reflected in the deciduousness of the forest canopy, with most trees being leafless for several months of the year.
Sparse Trees and Parkland
Sparse trees and parkland are forests with open canopies of 10-30% crown cover. They occur principally in areas of transition from forested to non-forested landscapes.
Forests – Our Lifelines.
Role in hydrological cycle
Role of forests in hydrological or water cycle is well studied and understood. The cycle of evaporation and condensation are catalysed by presence of lush green forests. Trees extract ground water and release them to atmosphere by evaporation. Forest cover intercepts precipitation and percolates rain water into the soil. This improves the ground water level, prevents soil erosion and flash floods. The roots create micro pores in the soil which aid in the filtration of ground water. The forests play a pivotal role in sustaining a healthy water cycle, which in turn sustains the whole life on this planet.
Soil Erosion
The subterranean half of trees – root have a huge role in preventing soil erosion. Forested areas on slope of hills prevent soil erosion and gully forming. They prevent silting of water bodies and maintain the fertility of the top soil. Thus forests help in maintaining the farm area and increasing the agriculture productivity especially in small holdings.
Home to millions of species
The green blanket of forest is the home for millions of species of animals. Forests provide all essential life support systems for these species to grow and procreate. These complex biomes form critical components of food chains. Decrease in forest cover accentuates process of extinction. More and more species find their way to the endangered list. Large scale extinction will effect a decrease in biodiversity which in turn will erode away the base of the pyramid on which human beings survive.
Spiritual Sanctuary
Forests have played an important and interesting role in Indian spiritual tradition. In ancient India education was imparted in gurukuls usually in deep forest. Students were encouraged to study from nature. Education of Lord Ram under guru Vashisita in Dandakaranya forest and training of Pandavas and Kauravas under guru Drona are examples from Indian mythology. It is also believed that Gautama attained enlightenment became Buddha under a Bodhi tree in forests of Gaya. Forests were also spiritual sanctuary for sages of all ages.
Economic Powerhouse
The silent, sylvan forest plays a pivotal role in economy of developing nations. . The total global trade in forest products was valued at around $379 billion in 2005. A huge part of the population in least developed countries (LDC) depends on timber and other forest products for sustenance. Firewood is a major source of energy for majority of global population. 1% of world gross domestic product (GDP) is through wood production and non-wood products.
Medicines and Herbs
Huge number of plants and plant products from nature are known to be medicinal in nature. Researches are going on to uncover the elixirs hiding in our forests. Indian system of medicine called ayurveda depends on the rich biodiversity of our forests to provide cure for myriad of ailments. Indian epic Ramayan alludes to Mrutsanjeevani which can even resurrect dead shows the importance of forests and forest products in Indian tradition.
Forests and Sustainability
Forests form an integral part of our water cycle, carbon cycle, nitrogen cycle, livelihood and economy. So it only makes sense to ensure that these natural resources are used sustainably. Sustainable use quintessentially implies systematic and scientific utilization of resource such that there is enough for the future generations too.
Eco-Tourism
Forests filled with variety of flora and fauna have always enticed travellers. Ecotourism projects encourage tourism and protecting the forests in tandem. Tourism industry provides economic incentives for protecting these forests. It also provides livelihood for people as tourist guides and in hospitality industry. ‘Periyar Tiger Reserve Ecotourism Project’ is a good example of how wildlife protection and forests conservation can been integrated into a thriving tourism industry. The project provides employment to former poachers as trekking guides. It also ensures that these zones are plastic free and minimally affected by human activities.
In ecotourism, protection of bio diversity of forests is aligned to the goal of livelihood of local population. This decreases poaching and felling of trees. It also educates the travellers about using our natural resources wisely so as to leave a minimal footprint on nature. It is estimated that there are 10 million jobs in forest conservation and management in forests all over the world.
Efficient Utilization and Alternatives.
Timber is the most traded commodity from forests. It is used in manufacture of packaging, furniture and paper pulp. Its main advantage is that it is a biodegradable material. Efficient utilization of packaging can decrease deforestation by 10 %. Use of e-mails and other electronic form of communication can reduce the amount of paper used. Decreasing forest cover calls for efficient utilization of available resources. In cases where efficient utilization is not possible alternatives should be introduced.
Solar power is a viable alternative for firewood in remote villages of our country. If thermal power derived from sun is used in place of timbre, the rate of decrease of forest cover can be arrested.
Conclusion
Nature plays an essential part in social, economic and financial realms. As a provider of livelihood to millions and as a source of thousands of medicinal plants forests are literally our lifelines. Deeper understanding of nature and natural laws has opened our eyes to larger role played by forests in sustaining life on this planet. This understanding should translate into forceful conservation efforts and sustainable utilization.
This essay won me prize in SAIL during the World Environment Day Celebrations on June5 2011
Memories of one who was here.
From a heart in pain flows a song
sweet and sad and pretty long.
memories of one who was here
no she is nowhere near.
tears freeze;the colour is red
freshly made wound is bled.
Darkness gropes
the shattered hopes.
my words can’t tell
but it hurts like hell
Notes on Mao and Orissa.
Rise of Maoism in India is definitely a threat. But not to the our nation, but to the systemic deficiencies of our nation.
Tribal belt of Orissa is an area which is slowing turning into a Maoist stronghold. The government machinery controlled by Indians themselves has been in operation in this land for the past 64 years. The region is rich in Iron Ore, Uranium, Aluminium, hydel power and other natural resources. For such a rich region the development and standard of living is not commensurate with any reasonable expectation.There are no good schools or universal medical facilities other than those setup by Christian missionaries. Given their dire living conditions I can’t blame tribal Indians on nurturing a proclivity for an alternate world vision.
If all the governmental funds directed for the backward had reached them such a situation would never have risen. This points the finger to public servants who has been complicit in siphoning off funds by private contractors. If you look at the condition of roads here, you will know what i am talking about. I feel that huge scams like CWG or 2G does not directly affect the poor. What affects him most is the Rs.100 demanded by the village officer to issue caste certificate or Rs.500 demanded for a new telephone connection. That is a more grievous crime.That is ‘aam admi’ against unorganised poor.
Casteism is another systemic vices that weighs heavily against social acceptance of tribals. The importance of caste rather than merit in career growth in public offices has encouraged nepotism. Tribals have been treated as untouchables for centuries and their respect for their identity has been stolen from them. When they talk about reservation in higher education or public offices, i feel as if i have heard a sarcastic joke.
Maoism is a misnomer. Mao is irrelevant. Only thing relevant is the oppression of the defenceless. People around me tells me that things have improved slowly here.Increased attention from media and general public has slowly decreased the magnitude of corruption. That is a good news with a bitter aftertaste. It implies that public consciousness and government machinery do not heed petitions and appeals; they listen only to bombs. So if a region needs development the most effective step would be procurement of RDX. That is a bad news.
The treatment of Dr. Binayak Sen is a conspicuous example of poor understanding of ground realities by general public. Helping poor tribals is not sedition; it is the most exemplary kind of patriotism. Life imprison meted out on him will discourage other altruistic people from delivering much needed medical care to the poor. We need to adopt a more holistic understanding of the crisis brewing in the heart of our nation.
I am no way supporting violence used by the MCC cadets. Violence is never a sustainable solution (expect in China ,of course) . But i cannot think of any other alternatives when you are pushed against a wall. Nowadays satyagrahs are the intellectual property of the organised class.
So next time lend an ear to a dozen people gathered in front of the state secretariat. Don’ wait till they blow up the bus in which you are travelling.
Mutual Funds–Basics
Schemes according to Investment Objective:
A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows:
Growth / Equity Oriented Scheme
The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.
Income / Debt Oriented Scheme
The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations.
Balanced Fund
The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.
Money Market or Liquid Fund
These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc. Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.
Gilt Fund
These funds invest exclusively in government securities. Government securities have no default risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes.
Index Funds
Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc These schemes invest in the securities in the same weightage comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as "tracking error" in technical terms. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme.
There are also exchange traded index funds launched by the mutual funds which are traded on the stock exchanges.
What are sector specific funds/schemes?
These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time. They may also seek advice of an expert.
What are Tax Saving Schemes?
These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act, 1961 as the Government offers tax incentives for investment in specified avenues. e.g. Equity Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also offer tax benefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growth opportunities and risks associated are like any equity-oriented scheme.
