Monday 21 August 2017

For a bigger international role.

As the Chinese government is incrementing its bellicose strategies and with its intrepid belligerence at the border posts along the India-China border are certain causes of great worry for now. Though the prospects of a direct war are completely bleak but still an off the border was must be fought with the disputation neighbor.
Since the whole world has now turned over to gruesome direct wars to surreptitious ‘machiavellian’ tactics, the new age PRC has too shifted its goalposts. The new tenet to become a global power is to become the ‘big brother’ and Chinese policies lucidly speak of this belief’s dispositions. The One Belt One Road (OBOR) project, China’s continuous pestering in the South China Sea as well as its initiative to irrupt into the East African market after Chinese military base stationing in Djibouti pellucidly exhibits how the overarching tentacles of the 21st century Mandarin thought.
Though we too have observed a cosmic transmutation in our 70 years but still the tendency to remain insular remains mores in the common Indian ideology. This fact is clearly expressed when the opposition parties repeatedly try to ensnarl the current Prime Minister in their stricture against his foreign visits. But, leaving out the political part, there is no skepticism that a radical change needs to be inducted into the system. Fortunately, we have already started. Although our some of the programs are inchoate, they are extremely propitious to become successful in the upcoming future. One such program is the newly announced Indian entry in the East African countries. Finally, New Delhi and Tokyo have prepared the blueprint for the development of the Special Economic Zones (SEZs) in Africa. The first SEZ, of which Indian countries are going to be a part, is to come up near the Mombasa port in Kenya, which is currently being developed with the Japanese assistance. Mombasa, which is the gateway to the East African countries, can certainly lead to huge change in the Indo-African relationship and as the African Union has 54 member countries in the UN, our bid for permanent seat in the UN can also be strengthened to a much bigger extent provided the substantial power of the African nations.

Apart from this, the SEZ program, which has already garnered the support of 10 major Indian corporate houses, can do wonders for a poverty-stricken Africa. Development of economic zone in Africa nations can engender huge employment, a source of income, and a huge trade between India and African nations. Moreover, infrastructure development and the introduction of state of the art technology can lead to an unprecedented change in the lives of African people. The excessive poverty and harsh living conditions have till now left no stone unturned in alienating the African people from the mainstream world. Besides this, being devoid of modern technology has affected the lives of millions of African negatively. The development of these SEZs will surely allocate employment to poor African workers, lead to excessive development in fields of economics, infrastructure, trade, and engineering. The skills of Indian and Japanese company matched with the huge labor available in the African market can surely help the whole of the Africa to a much bigger extent.

This pioneering project is certainly a win-win situation. Through this project we are aiming at entering into the global arena and on the other hand the great wonders that the project can do in Africa can be indeed paragon. The parochial approach was obviously the only choice back in the 1900s but this 21st century India is destined for a much bigger role in the international market and political lobbies. If we are to become a developed country and a super power then we must embrace the challenge to mould ourselves to the growing international demands and must take special interest in the global affairs.  As we are getting poised to be internationally accepted as a globally significant country, we must also not shy away from taking up the cards on the worldly tables.

JAI HIND, JAI BHARAT
JAI MA BHARTI


Tuesday 8 August 2017

Why banks are not the victims in NPA generation?

Stakes regarding NPA (Non-Performing assets) are at its record high and perspicuously if there is anything pivotal in the economy after G.S.T, that thing is NPA. In July this year, the government of India passed the Banking Regulation (amendment) bill which cued the RBI (Reserve Bank of India) to direct all the banks to initiate stiff loan recovery processes against big loan defaulters in order to recover ‘bad loans’ from the NPAs. Further this month only Finance Minister Mr. Arun Jaitely announced that the requisite proceeding against 12 big load defaulters has already kicked up.

As the processed commenced, the banks projected themselves as mere victims and are demanding their money relentlessly. But are banks really the actual victims? This needs a lot more clarification because it is not a hidden facts and banks do encourage risky industrial ventures to pump up their lending.

Bhushan Steel was once a very well known name in the steel industry of the nation. When India’s automobile industry was incipient, in the year 1987 Brij Bhushan Singhal and his two sons - Neeraj and Sanjay – acquired a loss incurring steel factory at Sahibabad. In the 1980s the whole steel business was controlled mainly by the state owned company and Bhushan Steel saw a big opportunity there. Having imported the latest technology from Japan, they started the production and soon the profits of the company shot up. Though they had become a famous name in the steel circles, but still their control was much confined and hence following the stellar performance, the company decided to build an integrated steel plant in Odisha.  Big automobile companies like Maruti Suzuki and Mahindra and Mahindra wanted to set a firm foot in Indian industries and hence those were the golden days of steel industry when the steel was sold at around $1300/tone. With big corporate houses in their order books, Bhushan steel was a perfect contender to get huge bank loans and its new to-be plant at Odisha made the company a most promising company in the nation. The prosperous days were still not over. For the 2008 Olympics, Beijing’s need for steel soared to an all time high and steel was the insurmountable king of the industry. Bhushan Steel Ltd. made net profits of Rs 3.13 Billion and exported goods worth Rs. 12.57 Billion. By 2007 the company had already established itself as India’s biggest auto-grade steel maker.

But things took a complete 360-degree reversal after the 2008 Olympics. The whopping demand from China tapered and prices kissed the nadir as fast as they had hugged the summit. The construction of the Odisha plant had only started in 2005 and was to take eight years and hence the company had no option but wait. By 2010, the industry was bearing a debt of more than Rs. 11,400 crore, still it banked heavily on the prospects of its Odisha plant and continued its borrowing spree. Then came 2012, the worst year for the industry. Steel prices touched an all time low with just $300/ton and Bhushan Steel was now amid a huge disaster. At this point, banks could have easily ceased any further lending and would have played safe by taking their money out of the gamble but everyone played facetiously and pinned their hope on the upcoming Odisha plant. In November 2013, the newly prepared plant failed miserably in testing stages only. The plant’s furnace blasted off which left 32 people injured; three of them succumbed to the injuries. This incident marked the final fatal blow to the Bhushan Steel. In 2014, the company was paying an interest of Rs 1600 crore and contrasting was making an abysmal profit of Rs. 62 crore.
After such a disaster, any company would have started extracting its money out of the debt-ridden company but banks further issued fresh loans of up to Rs. 18000 crore. Notwithstanding knowing that the stocks of the company could never pay such humongous loans, the banks still preferred to secure the loan through the stocks which were then at an all time low. 

Today banks continue to project themselves as the victimized ones but veritably they have tried to play with risky projects and have shunned any business sense related to lending. It had become clear that the company was borrowing from one bank to pay the interest rate of the other and this was a very well known fact in the banking circles. Still, banks continue to fund the such a disastrous venture and these hapless victims continued to flounder common business sense up to last year in March 2016, the company was under a debt of Rs. 42062 crore (which is the total amount of money that the government aims to spend on school education this year).

All this is a lucid portrayal over a how everyone makes profits from the rise and fall of companies- only the players change not the profits. Initially, the company rode huge waves of success and now the banks are having their time when they will take back such a huge amount along with interest worth hundreds of crore. Nobody is a victim in this process; it’s just about time and luck. This must always be kept in mind as to how the bank deliberately continued to hike up their lending in spite of being aware of the fact that the company would never be able to pay such a huge loan.

Everything is actually a trap. Some day or the other everyone has to pass through this, but it’s all about turn is currently going on.

JAI HIND, JAI BHARAT

JAI MA BHARTI

What your parents never told you about?


None, but a parent is the veracious preceptor of a child. Our parents are the inexplicable great beings who induce us into this world, introduce us with the characters of this stage, and then prepare us to become good characters ourselves. The core existence that we carry is definitive just because of our parents who forget each and everything after they see the countenance of their children, the ones who learn to sacrifice their needs so that the money could be spent on our toys, the ones who learn to forget about their own requirements so that we could be sent to a good school. They are the ones who forget that they used to have a life when we weren’t in this world, and hence there can be no one as much wonderful and incredible as our parents. Words fall short to describe their essence because, if we weren’t allocated with these two beautiful people, our life would carry no meaning at all. And hence these words are just abysmal in front of the grandeur of love our parents shower on us.
Indubitably, they try to prepare us to become immaculate denizens of this world and do something different, but because of the excessive love that they have for us in their heart, they keep many things covert. With great love comes a great sense of protection, and in this safeguarding they conceal many things from us. Though we can’t blame them for this act because this benign act is out of pure love, but still one must unravel some things that one is not told about by one’s parents.
1. LIFE IS HARD: Parents will always protect their children and let them live in their own realms but not telling them how cruel this life is; by not telling them how much cut-throat competition is out there in this world. Their veritable love just restrains them from telling us about this cruel world. They will never teach their children that life is not a Cinderella’s dream, because they don’t want our innocence to recede into a constant alertness against this world. They will always try to affect that life is a rose-laden carpet but will always curb themselves from adding that post script that roses has thorns too.
2. YOU WON’T ALWAYS GET WHAT YOU WANT: When we are growing up, we get used to getting everything we desire for. We get used to be treated like kings in our small castle – our home. No matter how much things were difficult, we always got what we wanted, and we effected the opinion that life is also going to bless us with the things we want – even before we want those things. But our parents never told us that life was going to hit us hard and fling us down to the ground. That many a time failure will strike us hard and no matter how much we try, we won’t be able to get back up again, that Rome was not built in one day, and that some of our wishes will never come true.
3. THERE ARE NOT ALWAYS HAPPY ENDINGS: As toddlers, we all loved listening to various wonderful fictional fables or stories from our parents. We used to blossom up when the story would end at a happy note and our parents also told us only one thing – every ending is a happy ending. But unfortunately life doesn’t correlate with them. Not every ending are meant for a happy face, so endings take tears; not always will you get what you want in the end, sometimes you have to compromise with what you have got; not all dreams come true, sometimes a weeping heart has to console itself with a defeat.
4. HOW HARD IT IS TO EARN MONEY: When we are children, nobody talks to us about money. We start believing the money is for granted because our parents never made us wait to get toys, chocolates, school bags etc. We start believing that money is not at all important because our father never told us how many nights he had to wake up to meet the deadline set by his boss, and because our mother never told us how many times she wanted to buy things for her own but couldn’t because she had to save money for our tuition fee. As we grow up, we realize that the money which we deemed secondary is actually the most pivotal things sans which this world doesn’t work. Believe it or not – you parents ingeniously prevaricated this issue and fooled you to believe that money is always there.
4. HOW TO LIVE WITHOUT THEM? : Our parents teach us so many things but never tell us how to live without them. How to help ourselves when our mother would no longer be there to care if we have eaten our lunch? How to help ourselves when our dad’s shoulder is no more to give us a place to weep and let our heart out? How to sort out things when there seems no way out? How to laugh when the one who gave us this countenance is no more to feel it?
The pious bond that we share with them obviated them telling us the truth, but they were right at their own place since if the gardener told the seeds how ruthlessly their flowers will be plucked when grow up, the seeds would never germinate.

“YOU SHOULD NEVER TELL A CHILD THAT DREAMS ARE FAKE, IT WOULD BE A TRAGEDY IF THEY KNEW.” – PAULO COELHO