Friday 25 January 2013

Is Pakistan Our Real Enemy?

"The World's one of the most disputed border,  Indo-Pakistan border"

From where you Evolved-Pakistan?

Pakistan,it all started when Pakistan was given a independent status on 14th August 1947 from British India.But the partition of India and Pakistan failed to bring peace as Pakistan demanded for extending its territory beyond its tail till Kashmir stating that 75% of population of Kashmiris are Muslims.As a result there were Four wars fought between the two counter parts.

 Pakistan-Where you stand:-


    As mentioned earlier since independence India and Pakistan have fought Four wars[Indo-pak war 1947,Indo-pak war 1965 and Kargil War 1999] and Indo-Pak war 1971 is significant as the war was fought for East pakistan [Now Bangladesh].Which saw massive troops of pakistan army surrounding to indian army.
All wars have been in favour of India .Though Pakistan proclaim themselves that they have defended India's Invasion in 1971 War.The war of 1971 saw nearly 90,000 POW[Prisoners Of War] of Pakistan soldier to India. Ok Let me not go much deep into history,i will limit myself to the present and future prospects.
  

 Pakistan hand in supporting terrorist group like Lashakar-e-Taiba,Al-Qaeda,Hizb-ul-Mujahideen,Jaish-e-Mohammed was evident from Kargil war,Parliament attack,Mumbai train blast ,Mumbai attack and the list goes on.It is also known that pakistan spends major portion of its budget in military expansions.The funds which were donated by U.S for the development of Pakistan's education were also spent on encouraging terrorism over India . Nearly 10 people from either side of army die every month.
  Pakistan is backed by China for their defence & upgradation of their military weapons,Though china does not support pakistan directly,China has its hand on all nuclear test done by Pakistan. But reliability of such weapons are always questionable.

India-Where we stand:-

Globally India ranks at Fourth in world's largest and powerful military in the world.Special thanks to pakistan for making us this powerful.Even pakistan occupies 14th position.But main difference is the advancement and innovation in Indian Military is never matched  by its opponent pakistan.India on international basis is largely supported by Russia and many other countries of the world,with her ties dating back centuries has earned a friendly and peace loving country. Economically,both india and pakistan started their growth story on same grounds but GDP of India is nearly 10 times greater than Pakistan.India has a GDP of $1.8 Trillion when compared with Pakistan's $250 Billion[Source:IMF].This difference can never be matched.
Taking all these into account,Pakistan lags india on several grounds.So,Pakistan alone on its own does not pose any threat to India.

Here comes the Red Country:-

Red Country-China.Why India and Pakistan tensions will always make China happy?

1)The growth of India will slow down due to more funding towards defence.
2)Competition for outsourcing of products will decrease.
3)India will need to spend lot of their budget on protecting their boundary and upgradation of weapons rather than development.

4)India's growth story is always not a good news for china.
5)Pakistan will stretch their arms for weapons to china thus increasing their supremacy.

China has already set its base all round India, on East by bordering itself,In west Pakistan and in south Sri lanka.One question which i would like to ask myself is why do china need to help Srilanka and Pakistan???In no way they are helpful to china and they are not a large entity.But several bases have been dedicated by these countries to china.Many surveillance are also carried out by china on regular basis in Indo-China border.
So,who is our real enemy.I am not saying any conclusion in this.Its you who could come to a conclusion.

How government Responded to recent incident:-  

Most recently two Indian Jawans were brutally mutilated near pooch region leading to escalated tension in India-Pak border.There were lot of "War of Words"took place between India and Pakistan.India responded strongly to the inhuman act.And in response to the action there were continuous exchange of fire between the borders.Voices were raised all through the nation in favour of war due to brutal act of pakistan.

How Veeriyam sees these events:-

It is evident that government will not act against Pakistan mainly due to two primary reasons.
Waging a war with pakistan will lead only to tension,Loss of property and Loss of valued Human life.
Secondly,the most important thing is government is afraid of losing Minority vote bank.It is a bitter truth that some [Not all] areas of our bharat rejoices a cricket match victory of Pakistan over India(I really dont know how to call them as).it is nothing but a act of religion ism rather than nationalism.India in some cases have internal terrorist rather than external one(I dont mean any community or religion).If it is the case of just a sport.Then  no doubt that those people may revolt against the government who engage a war with a Muslim country.So government will not act by force at least till next year.
   The war between India and Pakistan will be everlasting,Untill the word "Brotherhood"finds its meaning between us apart from religion.But the infiltration of Islamist Militants should be crushed Iron-handed.India need to prepare for her economical stability.
The dreams of several Indians are ever-growing and Pakistan need not be destroyed by india as it has its own potential to destroy itself.If at all Pakistan likes to taste the power of our missiles,they India will respond in American style(as India will never disappoint anyone who have come to her in need of want) reply as it did during WW2 to japan.
                                         "They asked for it ,We gave it"-
                             America's Reply on dropping atom bomb on Japan

Saturday 19 January 2013

Veeriyam-Koodankulam-A Necessity?

Power Demand In India:-

Electricity consumption in India, currently at some 600 Tera Watt hour (TWh) annually, is set to double by next decade, surpassing the Russian levels in the process.
      KPMG's Global Advisory Practice released a power industry research published under the title, "Think BRIC ! reveals that in order to supply this extra electricity, total generating capacity should jump by 90 giga watt (GW) to 241 GW, with an increased emphasis on nuclear, clean coal and renewables, including solar and small-hydro.
The survey finds that while the state and federal governments have initiated reforms, legislation designed to supply electricity to all consumer groups, conservative elements and social programmes, the 'systemic weaknesses and contradictions within frequently combine to stifle progress.'Additionally, factors like increasing economic activity, wealth and population, an improved standard of living and infrastructure developments are all expected to underline a continuous increase in demand for power in the next decade. "A rural electrification programme in the 1980s brought electricity to 200,000 villages for the first time."
"Generation capacity hit 150GW in 2006, a 40 per cent increase on the 2000 figure, after reforms in 2003 initiated a much needed restructuring of the power sector. However, one respondent of our survey estimated that at least 500 million Indians still have no access to electricity.""With per capita GDP rising by about eight per cent per year during 2000-2008, the growth in energy demand is enormous".As private sector investment in power generation was increasing, India could face challenges until 2020 to comfortably meet its demand. According to the study, country's peak power capacity deficit was expected to widen in 2013 to 15.6 per cent of total capacity, up from 12.3 per cent last year.

Besides generation deficit, there were inefficiencies in transmission and distribution systems and electricity theft. To combat this, some respondents expressed confidence in government assurances on formation of an independent regulatory system which would support growth in private investment and in public-private partnerships.Private investors have already made a start in building independent power plants and the share of privately generated power currently was around 13 per cent of the total production, Agarwal said.Coal, which already provides almost 70 per cent of India's power, would remain the dominant primary fuel, holding out commercial opportunities to those producers who are global leaders in high efficiency, clean-burn plant.The respondents surveyed also felt that India is an attractive destination for foreign capital investment. The survey also reveals that as compared to other BRIC countries, India had the second highest growth rate between 2000 and 2008 with an electricity consumption of 5.7 per cent.Despite this, the country has the lowest electricity consumption per capita out of the BRIC countries. India's power consumption per capita was expected to be roughly 841 kwh in 2020.

Power Demand In Tamil Nadu:-

Availability of power is one of the biggest inputs necessary for the sustained growth of any economy. This becomes even more important for a state like Tamil Nadu, which is one of the most industrialized and urbanized states in India.  
Over the last few years, Tamil Nadu has been facing massive power deficits. According to the CEA, the state was expected to have a power deficit of around 18% in 2010-11. As a result, the state is now facing huge power cuts. On an average, 3-4 hours of power cuts are being experienced by consumers in the state. The impact of this power shortage is being felt mainly by the industries, leading to a loss in efficiency and production. 
The first step is to analyse the requirement and availability of power in the different states and identify the extent of power deficits. 
 Requirement versus Availability of Power:-
Tamil Nadu is expected to have a deficit of around 18%, which was the highest among all the States considered. Maharashtra and Andhra Pradesh are also expected to have a high deficit of 11% followed by Gujarat with an 8% deficit. Rajasthan and West Bengal on the contrary are expected to perform well with Rajasthan displaying a perfect balance and West Bengal having a large surplus of 16%. 

The reason for the huge deficits in Tamil Nadu is due to the lack of power availability. Anticipating a huge increase in demand, driven by economic growth, states such as Maharashtra, Gujarat and Andhra Pradesh put in added efforts to increase the availability of power. This was done both by increasing own capacity and by encouraging private investment in power generation. On the contrary, such a long term vision to increase availability of power was absent in Tamil Nadu. 

Sources of Power Supply:-

There are five main sources of power in a state – own generation, central allocation, power purchased from IPPs, short term power from the exchange and other sources (including wind mills). The sources of power for the various states under study are given in the figure
As can be seen from the above graph, among all the states, Tamil Nadu is the most dependent on outside sources. Own generation of the Tamil Nadu Electricity Board is among the lowest of all the states considered. 
 A large portion of power supply in the State (around 30%) is allocated to it from Central Generating Stations (CGSs). Another significant portion of power (15%) comes from other sources, which includes wind power generation. Dependence on wind power generation, which is highly seasonal in nature, is another reason for the massive power deficits in Tamil Nadu. Further, with 6% of its power coming from the power exchanges, Tamil Nadu has the highest dependence on short term power sources among the states considered. 
How Veeriyam Sees Koodankulam:-
As mentioned above factors for the necessity of power,Veeriyam sees Kudankulam as a essential source of power Generation.Some koodankulam so called protesters say that a Nuclear plant build will result in mass destruction of life and property in case of accidents and they take case of  Russian "Chernobyl Disaster .There is a basic difference between Cherbyl and Koodankulam Plants.
Chernobyl Disaster is due to the uncontrolled increase in the furnace temperature.  This dispersed large quantities of radioactive fuel and core materials into the atmosphere. and ignited the combustible graphite moderator. The burning graphite moderator increased the emission of radioactive particles, carried by the smoke, as the reactor had not been encased by any kind of hard containment vessel. The accident occurred during an experiment scheduled to test a potential safety emergency core cooling feature, which took place during a normal shutdown procedure.This case in entirely different from kudankulam 
kundankulam Opponents have brain washed the localities by saying and showing the pictures of Chernobyl and World war photos too.

I read an interesting article in a Newspaper,When the journalist asked the locals of kudankulam about the reason why they oppose the plant,some replied that it may bring them diseases.And you what they told about the disease???,they said the plant  may bring them "Malaria,Dengue!!!"Such is their ignorance.

Let me discuss about the Kundankulam opposition Bullet point :-

1)KO(Kundankulam Opponents):-Only Nuclear generation can create power??why not renewable source of energy ??
Veeriyam :-Yes,indeed renewable energy are better than Nuclear,but not consistent.In india even renewable energy are encouraged in large extent.If there is lack of such development then Govt.would have developed many kudankulam.
Consider,Wind power generation,the power generation depends upon the speed of wind and intensity too.So the power genearated is not constant.Solar generation,The amount of energy developed through solar is neglible it can satisfy power required for a house not for a country.

2)Kudankulam plant is expandable it can produce power to about 3000Mw whereas other source of power generation do not fulfill this capacity.

3)People who oppose the Kundankulam power generation,will they not use the power when it is generated saying it is nuclear???

4)Where were the groups when kudankulam was build,why only oppose when it is built fully??It is foreign christian institution who generates the nuisances to hold the development of country.

5)Where was Udayakumar when construction was in process?-May be canvasing funds with christian institution.

6)Many people who oppose kudankulam now ,they even doesnt know that there is a plant built before a year or so.

7)KO stick to a point that when Tsunami hit japan,their Fukushima plant got hit and if they same situation happens to kundankulam,what will happen????
Veeriyam:-Kudankulam is not located in Earth quake prone zone therefore such tsunami do not occur.
So,Whole Heartely Veeriyam Supports Kundankulam power plant,Provided that all the safety measures has been already in place before commissioning!!! 

Friday 18 January 2013

FDI IN RETAIL


FDI-How The World Define:
      An investment made by a company or entity based in one country, into a company or entity based in another country.
The investing company may make its overseas investment in a number of ways either by setting up a subsidiary or associate company in the foreign country, by acquiring shares of an overseas company, or through a merger or joint venture.

FDI in India:-
         The fast and steadily growing economy of India in majority of its sectors, has made India one of the most famous and popular destinations in the whole world, for Foreign Direct Investment. India's ever-expanding markets, liberalization of trade policies, development in technology and telecommunication, and loosening of diverse foreign investment restrictions, have further collectively made India, the apple of investors'eye, for most productive, profitable, and secure foreign investment. India has conspicuously emerged out as the second most popular and preferable destination in the entire world, after China, for highly profitable foreign direct investment.
   At present, the most lucrative business sectors for FDI in India are, Infrastructure (Power, Steel, Railways, etc.); Telecommunications; Hospitality sector; Education; Retail; Real Estate; Retail sector, Petroleum and Petroleum Products; Biotechnology; Alternative Energy, etc.

Moreover, according to the Asian Investment Intentions survey released by the Asia Pacific Foundation in Canada, more and more Canadian firms are now focusing on India as an investment destination. From 8 per cent in 2005, the percentage of Canadian companies showing interest in India has gone up to 13.4 per cent in 2010.





India attracted FDI equity inflows of US$ 2,214 million in December 2012. The cumulative amount of FDI equity inflows from April 2000 to December 2012 stood  at US$ 202.79 billion, according to the data released by the Department of Industrial Policy and Promotion (DIPP).


What Ruling Party Says:-
A day after winning Parliament’s approval to allowing FDI in retail, Prime Minister said the move will benefit farmers and consumers and help introduce new technologies in agri marketing. He also said the decision to allow FDI was “supported” by farmers’ organizations. he said FDI in retail will help introduce new technologies in agri marketing, and will “benefit farmers and consumers”.

Government had won the approval of Parliament to its controversial decision of allowing FDI in multi-brand retail with a motion against it being defeated convincingly in Rajya Sabha, as BSP voted in favour of UPA. 123 members had voted against the motion while 109 voted in favour after a debate during which the opposition had attacked the proposal to allow 51 per cent FDI in multi-brand retail, while the government had strongly justified it saying it was in the best interest of the country.He said agriculture supply chains in India are fragmented and stressed the need for development of efficient and vertically integrated supply chains.Stressing that investments in backend infrastructure can help cut down loss of perishable crops, he asked the states “to take the lead in best practices of crop management”.Singh also hoped that Punjab will fare better as 12th five-year plan has for the country as a whole “targeted 8.2 growth in the GDP and 4 per cent in agriculture”.

What Opposition Says:-

BJP opposes the proposal for opening the multi-brand retail for several reasons, some of which are stated below:
1. In the first instance, manufacturing sector jobs will be lost in India. Domestic retail primarily sources locally. International structured retail sources internationally, leading to a drop in domestic manufacturing. This is all the more significant since India has not carried out significant manufacturing sector reforms.
2. International structured retail doesn't create additional retail jobs, it merely displaces existing jobs.
3. Only 18 per cent of the Indians are in structured jobs, 51 per cent of India's working population is self-employed. Along with agriculture, retail trade constitutes the largest fountain of self employed jobs. Structured international retail will be harmful to job creation in India.
4. Fragmented markets serve maximum interest much more than the consolidated markets. FDI in retail will consolidate the retail market and restrict only to end consumer interests.
5. The oft' quoted example of China is misconceived. China as a low cost economy is the predominant & the largest supplier to the big retailers. It can't be argued that goods manufactured in China will not be sold only in China.
6. International retailers proceed on the principle of 'buy cheap and sell costlier'. The initial low prices facilitated by the deep pockets result in eliminating competition and then raising prices.
7. It is a myth that the middlemen will be eliminated & the benefits will go to the producer/farmers. The benefits of elimination of middlemen goes to the retailer and not the farmers/producers.
8. The argument that back-end operation such as cold chains and transport facility will benefit from international retailers is baseless. Building cold chain is not rocket science; why can't building cold chains, rural farm roads co-exist with Mahatma Gandhi National Rural Employment Guarantee Act.
9. Basic principals of trade negotiations have been ignored while making concessions to the US and the EU by agreeing to their proposal without any corresponding quid pro quo.
10. That an option has been given to the states to implement FDI policies is a myth being spread to mislead people. 'FDI investment' is a central subject and not a state subject.
International treaties on investment to which India is a party, require a 'national treatment'.
The deception is a trap for future litigations for the FDI to spread to the rest of the country

How veeriyam sees FDI in retail:-

When FDI started flowing in India in 2000’s.The flows of finds are seeing its peak since 2007.As investment were made in many sectors including Defence,Engineering etc.,were able to absorb the money spent on them and could very well reflect back to those Foreign investors making them to invest more.So,India started its Reign “Millennium of Asia”.

India proved herself as a major player in global front in economies.The amount of money invested in india also promised for her development in all-round development from basic Medical to infrastructure. It also paved way for healthy growth in service sectors. So.Veeriyam Supports FDI as a whole.

But,FDI in retail is objectionable.FDI in retail is not needed in India as the profits earned by Foreign institution is never reflected in the wealth of the nation.Profits earned by those institution are profitable only for their individual firm.FDI in retail may very well develop Agriculture,Employablity only when Concrete steps are taken to ensure that the products developed by the firm is only through the raw materials generated from India. As no such conditions are burdened on the Foreign institutions it does not ensure the security of farming sector as well as employability. When raw materials are imported from other countries for the production of a particular product it may result in Imbalance in Trade balance.

The International Farm Companies Network data shows that in the US a milk producer gets 38% of every consumer dollar spend.

In the United Kingdom, this figure is 36 per cent. In India, riding on the strength of the cooperative movement, milk producers get 70 per cent of every rupee spent by the consumer. If farmers in the United States and UK have become prosperous due to retailers, why does the USor the European Union subsidise their farmers to the extent of US $400 billion annually? This is a staggering Rs 5,000-6,000 crore daily.

Many small scale may retailers may be loose their jobs as the Foreign institution may acquire products from china, which in nature has “High productivity,Low cost”.Let the western powers realise that the biggest reforms required are in:
• Elimination of agricultural subsidy
• Removal of restrains on outsourcing
• Removal of unreasonable restriction on visas
• Dismantling of unfair trade barriers on products of smaller economies.

The government had an option of large numbers of domestic economic reforms which are pending. There is a broad consensus on these reforms. The government has chosen to ignore these reforms but implemented a decision which will hurt national interest.