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ANUSANDHANIKAISSN 0974 Refereed Research Journal of Commerce & Business Management- 200XVolume III Number I January 2011Contents1. Some aspects of financial performance ofIndia’s iron and steel industry- A postliberalization period snapshotSarbapriya Ray 12. Institutional Credit, Indebtedness and Suicides Dr. Radha Raman Das 6in Maharashtra3. Global Recession: Opportunity and Challenges Dr. M.K.Singh 11Sonal Sharma4. Impact of Business Process Outsourcing Tarique Sajjad 18(BPO) In Service Sector with specialReference to CMPDI5. Indian Gems & Jewellery Industry – Dr. Rajesh Kumar 26Problems and Prospects6. Manpower Planning and Management in New Rakesh Kumar Dhar Dubey 33Economic Era in CCL7. Operating an efficient and sustainable agriculture Dr. G.C. Singh 37market information system: The FAO strategies Ashutosh Mishra8. Rubber plantation: A source of multiple incomes Sukanta Sarkar 43for rural people in Tripura9. Integrated Water Resources Development and Dr. Vijay Prakash 46Management - Its StrategiesDr. Mahadeo Prasad10. Corporate- Governance : Philosophy & Reality Sumita Roy 5111. Industrial relations and globalization Dr. B. K. Mehta 56Kumari Anamika12. Management : A Tool of Success Dr. Shahid Akhter 6113. Philosophy of Man-Management : Indian Dr. S. N. L. Das 67PerspectiveDr. Prabhat Kumar Pani14. Consumers' satisfaction in using plastic Tapas Kumar Mallick 70money : An analysis15. Network Marketing - An emerging profession O.P. Khandelwal 74Dr. G.P. Trivedi16. Aiming Zero Waste in the 21st century : Shabbir Hussain 78Idealistic dream or realistic goal?17. Aviation Safety Management - A dire need Brajesh Kumar 8518. Management of Inventory in Indian Iron and Anand Prakash 94Steel industry : A case study of Sail and Tisco Shyama Nand Singh19. Green Computing- A New Horizon of Energy Manisha Kumari 100Efficiency and E-Waste MinimizationJai Ram Agrawal20. Impact of globalisation on Indian women : Dr. Kamini 104Reflections21. Role of Insurance in uplifting- The life-styles Dr. Jayant Chakraborty 108of the tribals of Ranchi District

ANUSANDHANIKAISSN 0974 Refereed Research Journal of Commerce & Business Management- 200XVolume III Number I January 2011Contents22. Communication challenges for budding Chetna Sinha 112Managers23. The Importance of Customer Application Priya Srivastava 116Documentation process in Telecom24. Marketing strategy of S.B.I. Credit Cards Dr. Md. Nezamuddin Zubairi 119Tanweer Alam25. Buying Behavior of Consumers in AC Industry Jay Prakash Verma 122in India26. Outsourcing Results in Turnaround in BCCL Dr. Pramila Choudhary 12927. Talent Management in Recession Dr. Sanjiv Kumar Singh 134Krishna Prasad28. Indian Banking: Towards Better Future Dr. Anil Kumar Jha 138Dr. Bhushan Kumar Singh29. Revival of Regional Rural Banks in Jharkhand Anirban Gupta 141Dr S.B. Say30. Dimensional Modeling-A viable technique for Dipak Kumar Shukla 148the development of a Data Warehouse31. The Merger of Indian Airlines and Air India:- Dr. Vikas Kumar 154Open new horizons for Indian aviation sector Sweta Jha32. Prospects of packaged drinking water industry Dr. Jitendra Sonar 158in India with special reference to Jharkhand Mohammad Tauseef Ali Ahsan33. The Outsourcing in India : An intellectual Dr. Md. Moazzam Nazri 162prosperty perspectiveDr. Deepa Sharan34. A study of Wage Administration and job Dr. Indramani Das 167evaluative procedure in Mecon, Ranchi35. Scenario of Industrialization in Jharkhand Dr. Tarun Chakraborty 17136. Food Security In Jharkhand State- Status of Rahul Kumar 173the Social Security Schemes in Jharkhand37. Importance of Induction in Employee Retention Subhash Adhikari 17738. National Rural Employment Guarantee Act - Sarika Sinha 180A tool of Rural Development39. Goods and Services Tax and Its Relevance in Dr. B.N.Singh 185Indian EconomyDr. Anuradha Verma40. Economic Value Added : An additional Dr. G.P.Trivedi 191Approach to Risk Aggregation of Banks for Avinash SinhaCapital Adequacy Requirements41. A world without Mouse Sumit Kumar Sinha 19442. Role of Media in Disaster Management: Manisha Prakash 198A case study of floods in Bihar in 2008

Anusandhanika / Vol. III / No. I / January 2011 / pp. 1-5ISSN 0974 - 200XSome aspects of financial performance of India’s ironand steel industry- A post liberalization period snapshotIntroductionSarbapriya RayAssistant Professor, Department of CommerceShyampur Siddheswari MahavidyalayaCalcutta University, West BengalThe new industrial policy adopted byGovernment of India has opened up the ironand steel sector for private investment byremoving it from the list of industries reservedfor public sector and exempting it fromcompulsory licensing. Imports of foreigntechnology as well as foreign direct investmentare freely permitted to the certain limits underan automatic route. This, along with the otherinitiatives taken by the Government, has givena definite impetus for entry, participation andgrowth of the private sector in the iron and steelsector. While the existing units are beingmodernized or expanded, a large number ofnew and green field steel plants have alsocome up in different parts of the country basedon the modern, cost effective and state of theart technologies. Increasing demand bysectors like infrastructure, real estate andautomobiles, at home and abroad, has putsteel industry on the world map.Each and every industry is continuouslytrying to assesss its own performance in viewof various targets, past financial achievements.Business decision and policy formulationmostly depend on such economic indicators.Some financial ratios and economic indicatorsAbstractThis paper seeks to measure performance of Indian iron and steel industry in view of some financialindicators during post- liberalized scenario. The paper points out that the steel industry has been passingthrough turbulent phases characterized by enhanced debt burden, low utilization of assets, industry-widelosses and above all huge liquidity crunch, excess supply and demand crunch situation. There is an urgentneed for developing a comprehensive plan for iron and steel industry in India so that it can survive in the postliberalizedIndian environment and make its presence global.Keywords: Iron and steel industry, liberalization, financial performance-1-are comprehensively recognized as advancedpointers of industrial performance which havebeen used here in evaluation process.Materials and MethodsIn this study, an attempt has been made tomeasure the performance of Indian iron &steelindustry in the light of some financialindicators. The present study is based onindustry-level time series data taken fromseveral issues of Annual Survey of Industries,National Accounts Statistics(NAS) andEconomic Survey , Statistical Abstracts(various issues), RBI Bulletin on Currency andFinance, CMIE( Financial aggregates andratios) etc covering a period commencing from2000-01 to 2007-08.Results and DiscussionsThe long-term financial performance ofIndian iron and steel industry has beenanalyzed from 2000-01 to 2007-08.Thesample for analysis includes 42 companies likeSAIL, Tata steel, Essar, Ispat Negametc.Important performance indicators likeDebt-Equity ratio (D/E), Return on Investment(after tax), Fixed asset- turnover, profitability,liquidity and earning power ratios havecalculated and depicted in Table 1.

Table-1Performance indicatorsYear / indicator2000-012001-022002-032003-042004-052005-062006-072007-08D/E ratio 2.70 3.81 3.30 3.15 9.31 8.02 2.86 4.73ROI=PAT/Net Worth -1.57 -3.67 -5.07 -11.63 18.75 5.03 9.53 1.62FixedAsset turnover= 1.15 1.24 1.03 1.11 1.64 1.35 1.49 1.28sales/fixed assetProfitability=PAT/Sales -0.86 -2.37 -2.87 2.63 -2.03 3.43 6.67 4.6Liquidity=CA/CL 0.85 0.90 0.52 0.56 0.75 0.96 1.24 0.82Earning power ratio= -0.86 -1.3 -1.93 1.6 3.43 3.07 5.9 1.41PAT/Total assetSource: CMIE, Financial Aggregates& Ratios, (various issues), compiledTable-1 reveals the rising trend of D/Efrom 2.70 in 2000-01 to 4.73 in 2007-08 whichindicates that the industry is shouldering anincreasing debt burden which involves moreinterest burden and repayment liability. Returnon investment ratio, being a good indicator ofjudging the utilization of resources and capitalof the industry, indicates a sharp decline of -11.63% in 2003-04 from -1.57% in 2000-01before making a partial recovery of around 2%in 2007-08.This, in general, signifies that its networth is gradually depleting and henceindustry is becoming unattractive to the equitystakeholders. The industry should try toincrease the ratio gradually at least at a levelover and above the standard bank interest rateto cover the risk involved. Slight improvementin fixed turnover is noticed which implies thatthe industry is trying to utilize its assets in anefficient manner. Profitability ratio, an indicatorof operational efficiency, exhibits thedecreasing profit levels from -0.86% in 2000-01 to a low of -2.04% in 2003-04 and to someextent recovered in 2005-06 onwardendangering the survival of the unit andindicating heightening of competition in theindustry. Low liquid ratio implies that there existinsufficient current assets to meet currentliability inducing instable solvency position ofthe industry.Export performanceAlthough India started exporting steel wayback in 1964, exports were not regulated anddepended largely on domestic surpluses.However, in the years following economicliberalization, export of steel recorded aquantum jump. Iron and steel constitutesapproximately 8% of the total export in 2007-08. Indian steel industry’s share in the globalmarket has been showing a distinctimprovement since mid-nineties’. But, duringthe period commencing 2007-08, it is showinga dismal declining export scenario. Total exportof steel declined from 5123thousand tonnes in2006-07 to 2348 thousand tonnes in 2007-08and further declined to 1753thousand tonnesin 08-09(upto Dec,08).In spite of the fact thatIndia has considerable export potential in bars/rods/ structure etc. export performance showsduring the current financial year 08-09 a sharpdecline as meltdown affected steel sector.Surprisingly, it has been noticed that fall indemand of Indian steel abroad, especially inIndonesia, Malaysia, Italy, Japan, Nepal andUK etc.join hands to decline further the exportof Indian steel.Demand DoldrumsOn the demand side, it is estimated thatthere is a fall in finished steel demand by nearly27 million tonnes in the year 2008-09(up toDec.‘08 ) implying a sharp decline of 57.3%over previous year. A slowdown in economicactivities engulfed almost all the industrialsegments leading to a steep drop in the growthrate of steel consumption. Apparentconsumption ( i.e. Production + import – export+ / -variation in stocks) of finished steel, yearwise, has been shown below. Apparentconsumption represents the actual demand ofsteel in a particular period/year.-2-Anusandhanika / Vol. III / No. I / January 2011

Year 96-97Table-2Apparent consumption of finished steel (carbon) (in million tones)Apparent consumption of finished steel(carbon) (in million tones)97-9898-9999-00Apparent 22.12 22.63 23.15 25.01 26.87 27.35 28.9 31.17 34.39 38.15 43.74 47.02 20.06consumptionGrowth(%)* - 2.3 2.3 8.03 7.44 3.1 5.32 7.88 10.33 10.9 14.65 7.5 -57.3(*The figures indicate the percentage increase over the previous year)00-01Steel demand started displaying softeningtrend as the off take declined from the userindustry especially the infrastructure firmsduring the monsoon season (June-July) whichlead to marginal easing of rates in the domesticmarket. The demand for the Indian steelproducts also went down in the Middle Eastwhere construction activities slowed down dueto excessive heat in the period. Steel pricescontinued the downward trend as marketsentiments continued to deteriorate mainly onbad news in form of sub prime lending crisisand then the worsening Wall Street scenario.Tremors of failure of US-based merchant andcommercial banks were felt across the globeand the world was faced with an apparentliquidity crunch. Infrastructure sector globallywas hit hard due to lack of credit availability toundertake projects, which also hithertoimpacted the demand for steel in the steelindustry in India also. On the whole, demandfor steel has not been improved in a significantmanner over the couple of years.As a result, domestic steel prices followedthe global trend as major producers in Indiaincluding SAIL, JSW Steel, and Essarannounced a cut in prices and production by asmuch as 30 per cent during 2008-09.This hasnot happened in a day . The long term failure totap overseas market is responsible for that tosome extent. The countries which haveachieved major growth including growth insteel industry, like Japan, China and SouthKorea have largely used their trading housesto embed their market abroad. Indian steelsector failed to make its presence felt even inthe neighboring countries due to lack of profit01-0202-0303-0404-0505-06Source: Steel Guru: www.steelguru.com,compiled06-0707-0808-09(Up toDec 08)motive, wrong scale of assets, no coordinationbetween market and plants, poor investmentdecision etc.Excess supply scenario: On the supplyside, there were troubles of versatile naturewhich stem from investment and capacityrelated problems. It is to note that there hasalways been a tendency to relate thesespecific problems to shrinkage of demand.Despite well known global excess capacity,enormous investments were made inGreenfield steel projects in India with the hopeof attaining the massive prospective gain fromthe industry there. The fact is that steelcapacity was continuously increased inspite ofthe so-called well known excess capacity in theindustry because of some futuristic belief.First, this may perhaps be due to thereasons that there existed plenty of capital toinvest and having no potential avenues toinvest, it compelled investors to invest in thesteel sector with cheap and assured source ofcapital.Second, the steel sector is always wellthought-out as an ever prospective industrywith a permanent future, irrespective of itsrecent dismal earning potential and currentdifficulties and speculated that long term boomof prosperity will wipe- out the prevalent crisisin the industry but on the contrary, shortenedboom period exaggerated the intensity ofcrisis.Third, the demand for steel is a deriveddemand and the purchase quantity dependson the end-use requirements. Recent volatilityof demand affects the integrated steel-3-Anusandhanika / Vol. III / No. I / January 2011

manufacturers because of their inability to tunetheir production in line with the market demandfluctuations because of its inherent nature ofbeing a high fixed cost industry. On the otherhand, total export of steel during this meltdownsituation is showing dismal display andtherefore, the industry is forced to undercutprices to maintain market shares.Fourth, there are several other reasonswhich can not be ignored in creation of excesssupply in the Industry. Decreasing import dutyon steel, dumping of steel by developedcountries; high quality products from developedcountries available for import at verycompetitive prices join the race in creatingexcess supply.Table-3Excess supply scenario (in million tones)Year Production Import Apparent Exportconsumption1991-92 17.23 1.043 14.84 0.373 3.0692-93 18.65 1.115 15 0.895 3.8793-94 19.85 1.153 15.32 1.605 4.07894-95 24 1.936 18.66 1.272 6.00495-96 28.54 1.864 21.43 1.32 7.65496-97 31.07 1.822 22.12 1.922 8.8597-98 32.08 1.815 22.63 2.383 8.88298-99 31.91 1.637 23.15 1.944 8.45399-00 35.23 2.2 25.01 2.998 9.42200-01 38.25 1.632 26.87 3 10.01201-02 40.1 1.375 27.35 3 11.12502-03 45.87 1.51 28.9 4.966 13.51403-04 49.49 1.65 31.17 5.922 14.04804-05 53.57 2.109 34.39 4.903 16.38605-06 58.99 3.765 38.15 4.7 19.90506-07 70.12 4.1 43.74 5.125 25.35507-08 79.84 5.9 47.01 2.348 36.38208-09 66.47 1.14 20.02 1.753 45.84(upto Dec.’08)ExcesssupplySource: Steel Guru, www.steelguru.com, compiled. (Excess supply is calculated by adding production and import and deducting there from apparent consumptionand export)Finally, situation of oversupply has notcreated from demand shortage but from theinitiative to keep capacities utilized to thefullest possible inspite of the fact that theredoes not exist adequate demand for theproduct. As a result, in order to capturesubstantial market share, steel producersinvolved themselves into self induceddeclining price net that compels many of themto incur huge losses. Such a situation is arguedto be plausible only if there exists excesscapacity. This may so happen because thesteel capacity comes in bulk and cannot befragmented and therefore it is not possible tokeep just as much capacity idle as is sufficientto meet the current demand.ConclusionFrom the above analysis, these aboveindices considered together exhibits that thesteel industry has been passing throughturbulent phases characterized by enhanceddebt burden, low utilization of assets, industrywidelosses and above all huge liquidity crunch-4-Anusandhanika / Vol. III / No. I / January 2011

excess supply and demand crunch situation,declining export scenario. There is an urgentneed for developing a strategic plan for theIndian Iron and Steel industry to get rid of crisis.Development of a comprehensive plan formodernization of all existing steel plantsshould be given priority in order to becompetitive in global perspective. Frequentdownturns in the steel industry reflectingintense competition in the industry made theindustry cost conscious which induces costreducing strategy. In order to ensurecompetitive advantage and to be ahead ofcompetition, steel maker should lay stress oncost reduction through reduction in workingcapital cost, operating cost, reduction in unsoldinventory, improving techno-economic parameteretc. As result of lowering down of import andexport duties, development of a triggermechanism against dumping of iron and steeland also allied products is of crucial need.Merger may be a strategy against dumping ofdomestic market. Financial restructuringwould invite improved financial health of thesteel producers because where the industry isin deep financial crisis, it will ensure profitabilityof the producers through reduction of interestand depreciation as well as efficientdeployment of capital. It will also help inmitigating the financial risk by reducing thedebt-equity ratio and improving debt servicingcapability of steel industry. Iron and Steel beinga full-grown industry offers many goodopportunities of expanding business throughthe chain of acquisition and merger as aretaking place worldwide. This strategic tie-upwill assist industry to fight against technologicalobsolescence by strengthening assets andabsolute liquidity position.It is worth-mentioning that the industry isnot hoping against hope as the steel sectorfaces certain cyclical slowdown, which gotcoupled with the credit-induced economicslowdown. The future is uncertain, butchallenging, and holds great promise if theright steps are taken because of the inherentqualities of domestic steel.References1. Chairman JPC, Indian Steel Industry-ARetrospective, Iron and steel Review,Vol.45, No1, March, pp13-162. Christmas I, The Future of steel, Iron andsteel Review, October, 2001, pp13-303. CMIE database-5-4. Dasgupta S, Globalization and the futureof Indian Steel Industry, Iron and steelReview, December, 2000, pp26-365. Data available www.indiainfoline.com andpublished Annual Report6. Dastidar S.G, New Challenges and optionfor the Iron and steel industry, Iron andsteel Review, Vol. 45, No 5,October, 2001,pp 5-67. Dastidar S.G, Reform and Restructuringin Global Steel, Iron and steel Review,December, 2001, pp13-158. Firoz A.S, Steel Industry in Turmoil,Economic and Political Weekly, April 12,2003, pp1493-15049. Friedman M, More on Archibald versusChicago, Review of economic studies,Vol. 30, 1963, pp 65-6710. Khandelwalla P.N, Innovative CorporateTurnaround, Sage Publication, New Delhi11. Maclean A, Paths of Progress in an age ofchange, Iron and steel maker, Vol. 25,No 9, 1998, pp 55-6012. Mitra P.S, Role of service center inpromoting Indian steel Industry, IndianIron and steel Review, May, 2002, pp 21-2213. Ray Sarbapriya and Pal M.K, Impact ofliberalization on capacity utilization ofIndian iron and steel industry, IndianEconomic Journal, Vol. 57, No1, pp158-7514. Ray Sarbapriya and Pal M.K, Trend in totalfactor productivity growth in Indian ironand steel industry under liberalized traderegime: an empirical analysis with adjustmentfor capacity utilization, Journal of AppliedBusiness and economics, Vol.11, No 3,June, 2010, Washington D.C, USA15. Steel Guru, www.steelguru.com16. Steel World, January 18, 200917. Santiono J and T Anggraeni, SteelmakerRestructuring: Why and how?, Iron andsteel Review, June, 2002, pp 38-4018. Srinivasan P.V, Excess Capacities inIndian Industries: Supply or Demanddetermined?, Economic and PoliticalWeekly, November 7, 1992, pp 2437-4119. Uchikawa S, Investment boom and Underutilization of capacity in the 1990s,Economic and Political weekly, August 25,2011, pp 3247 – 3253Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 6-10ISSN 0974 - 200XInstitutional Credit, Indebtedness and Suicidesin MaharashtraDr. Radha Raman DasReader, P.G. Center of CommerceMarwari College, Ranchi, Jharkhand.(An Autonomous College of Ranchi University)Keywords: Credit to Agriculture, SHG-Bank linkage, Small and Marginal Farmers, Rural povertyIntroductionwhile the productivity of the land remained atthe same level and sale price of farm produceIn developing country like India, thehas not commensurately increased. Thesedevelopment of agriculture sector is imperativefactors have driven farmers to the debt trapfor a variety of reasons. Agriculture is still theand have caused distress leading to suicide.prime source of livelihood for majority ofFarmers need much more capital than theypeople in rural areas and this livelihood needscan afford to save. Credit is a condition thatto be made sustainable for many. In urbanenables a person to extend his or her controlareas it provides raw materials demand for over ownership of resources. It representsindustrial goods and in India, whenever mobilization of the savings by intermediariesagriculture sector has grown to 3 to 4 percent; as government from the people and throughindustrial sector has grown at more than 6 such credit operations financial savings arepercent. In the last 58 years Indian agriculture transformed into capital. However credit is nothas significantly contributed in terms of income capital, the money obtained from creditand employment generation. Even today the provides a command over enough funds to24 percent of the total GDP (Gross Domestic exploit opportunities. Credit plays the role of anProduct) originates from the agriculture sector accelerator in the agricultural developmentand 62 percent people find direct and indirect provided it is adequate in quantity, cheap andemployment in the agriculture sector in India. development oriented.Due to rapid growth of rural populationand division of families the farmland hasundergone rapid fragmentation. Presently80% of the farmland holdings are with the smalland marginal farmers owning land up to 5acres. For these categories of farmers cost ofproduction by way of farm inputs has increasedAbstractAgriculture is the prime source of livelihood in rural areas. In urban areas it provides raw materials demand forindustrial goods. Due to growth of rural population in the farmland has gone rapid fragmentation and farmerscost of production has increased. Farmers need much more capital. This arise the need for institutionalcredit arrangement for agriculture. The institutional involvement in the sphere of agricultural credit originatedwith the enactment of the co-operative societies Act in 1904, setting up of RBI, Nationalization of commercialbanks and setting up of regional banks. The SHG bank linkage programme has been launched by thegovernment of India and the pioneering efforts has been made by national banks for agriculture and ruraldevelopment (NABARD) with the lack of framing policy for rural credit. The revival of agricultural credit wasinspired by the announcement by the central government in 2004 and the flow of agricultural credit would bedoubled between 2004-05 and 2007-08. There has been a sharp growth of agricultural finance that is urbanin nature. In 2008, the share of rural and semi-urban branches in total agricultural credit was 66 percent. InMaharashtra, almost half of the total agricultural credit from commercial banks in 2008 was provided bymetropolitan branches and in the state with the largest number of suicides by farmers.-6-Materials and MethodsThe present study is entirely based onsecondary data. The data were obtained fromReserve Bank of India (RBI) Bulletin, Economicsurveys, National Bank for Agriculture and RuralDevelopment (NABARD) : The Hindu aNational Newspaper.

Results and DiscussionsThe demand for agricultural credit risesdue to (i) the time lag between the realization ofincome and operation of expenditure (ii)unevenness of investment in fixed capitalformation; and (iii) increasing movements incapital needs and savings that accompanytechnological innovations. The credit requirementis highly related with the expenditure pattern ofthe farmers. They generally spend 32 percentof the borrowings on capital expenditure and13 percent on current expenditure on the farm.But, other 47 percent is mostly consumedby them on family expenditure and the rest 8percent in other non-farm expenditures. Thisdraws the poor Indian farmers in indebtednessand so they require more and more credits togo for agricultural production (PraffulaChandra Mohanty 2007).Under the impact of new developments inagriculture science and technology, andincreasing commercialization of farmingagriculture is becoming costlier for cultivators.Over the years, prices of fertilizers, seeds,diesel and inputs have gone up.Indian agriculture has undergonestructural changes in recent times. The natureof Indian agriculture has geared towards smallfarms; Indian agriculture has also undergonechanges in its own output mix and therebyinput mix.These changes were reflected by the shiftin area from food grains to non-food grains andwithin food grains from coarse cereals to finercereals. This shift towards non-food grains hasbeen observed across states with theexception of Bihar, Haryana, Jammu &Kashmir, Karnataka, Punjab, Uttaranchal,Uttar Pradesh and west Bengal. The maximumshift away from food grain crops was visible inKerala followed by Jharkhand, Gujarat, Orissaand Assam. These crops have strong links withthe market. The credit requirement also goesup with these changes. Inputs like fertilizers,insecticides, mechanical power and improved-7-seeds were vital parts of the input structure.Hence farmers have to take option of credit to amuch larger extent than in the part forpurchase of inputs. Indigenous systems ofcredit have been developed as a consequenceof seasonal needs and fluctuations in order tofacilitate smoothing of the consumption patternof farmers.Institutional credit to agricultureEarlier Indian rural credit system wasdominated by the private money lenders, largeland owners, traders, relatives and friends.The interest charges by the lender used to beunduly high and the land or the other assetswere kept as collateral. This gave rise to theneed for institutional credit arrangement foragriculture.The friction of institutional credit toagriculture could be broadly classified into fourdistinct phases – 1904-1969(predominance ofcooperatives and setting up of RBI), 1969-1975(Nationalization of commercial banks andsetting up of regional rural banks), 1975-1990 (setting up of NABARD) and from 1991onwards(Financial sector reforms).SHG Bank LinkageBank linkage has been launched by thegovernment of India as a strategy of povertyalleviation and rural development. Thepioneering efforts at this has been made byNational Bank for Agriculture and ruraldevelopment(NABARD) which is vested withthe task of framing appropriate policy for ruralcredit, provision of technical assistancebacked liquidity support to banks supervisionof rural credit institutions and other developmentinitiatives.The SHG Bank linkage programmeintroduced and encouraged by NABARD, isnow being implemented vigorously by morethan 30000 branches of commercial banks,regional rural banks(RRBs) and cooperativebanks is over 520 districts in 30 states andunion territories.Anusandhanika / Vol. III / No. I / January 2011

As on March 31At the end of March 2004, as many as 10.8lakh SHGs are now linked with banks and 2800NGOs are associated with the scheme.According to the All India Debt andInvestment Survey (AIDIS), the share of totaldebt of cultivation households taken fromformal sources fell from 64 percent in 1992 to57 percent in 2003. In the same period theshare of total debt taken from money lendersalmost doubled from 10.5 percent to 19.6percent.In 2000s, however, there was a reversalfrom the slide in agriculture credit flow. Fromthe early 2000s, growth of credit to agriculturebegan to pick up. Commercial banks andregional rural banks (RRBs) played a majorrole in the revival of agricultural credit.The revival storyTABLE 1 : SHG-Bank linkage: cumulative progressNo of SHGs(Cumulative)The growth of agricultural credit fromcommercial banks and RRBs, which was 1.8per cent between 1990 and 2000, increased to19.1 percent between 2000 and 2007. Theshare of credits supplied by commercial banksand RRBs in total agricultural credit increasedfrom 30.1 percent in 2000 to 52 percent in2007.In part, the revival of agricultural creditwas inspired by the announcement by thecentral government in 2004 that the flow ofagriculture credit would be doubled between2004-05 and 2007-08. Three distinct featuresof the revival story are worth noting.First, a significant proportion of theincrease in agricultural credit from commercialbanks was accounted for by indirect finance toagriculture. Indirect finance refers to loansNo. of SHG financedby banks1999 33000 33000 572001 263830 149000 4802003 717360 255000 20502004 1079090 361730 3900Source: RBI: Trend and progress of banking, 2003-04, P107-8-Bank Loandisbursed (cumulativeRs. Crores)given to institutions that support agriculturalproduction, such as input dealers, irrigationequipment suppliers and non-bankingfinancial companies (NBFCs) that on-lend toagriculture.Second, a number of changes were madein the definition of agricultural credit under thepriority sector. The definitional changesbroadly involved (a) the addition of new formsof financing commercial, export-oriented andcapital intensive agriculture; and (b) raising thecredit limit of many existing forms ofagricultural financing. To cite an instance,loans given to corporate and partnership firmsfor agriculture and allied activities in excess ofRs. 1 Crore in aggregate per borrower wasconsidered as priority sector lending underagriculture, from 2007 onwards.These definitional changes were initiatedfrom around the mid 1990s, during the periodof financial sector reforms. According to Y.VReddy, former governor of the reserve bank ofIndia (RBI), “…coverage of definition of prioritysector lending has been broadened significantlyin the recent years, thus overestimating creditflows to actual agricultural operations in recentyears”.Third, much of the increase in the totaladvances to agriculture in the 2000s was onaccount of a sharp increase in the number ofloans with a credit limit of Rs. 10 crores andabove, and especially Rs. 25 crore and above.Even within direct agricultural finance,which goes directly to farmers, there was asharp rise in the number of loans with a creditlimit above Rs. 1 crore. It seems likely thatthese large loans were advanced towardsAnusandhanika / Vol. III / No. I / January 2011

financing the new activities added to thedefinition of agricultural credit.Agricultural Credit is Urban in NatureRecent data on banking has brought out afourth disturbing feature of the revival inagricultural credit. There has been a sharpgrowth of agricultural finance that is urban innature. Between 1995 and 2005, the share ofagricultural credit supplied by urban andmetropolitan bank branches in India increasedfrom 16.3 percent to30.7 percent. The share ofagricultural credit supplied by metropolitanbranches alone increased from 7.3 percent in1995 to 19 percent in 2005. While there was amoderate decrease in these shares between2006 and 2008, urban and metropolitanbranches continued to supply about one thirdof the total agricultural credit in 2008.Concurrently, there was a sharp fall in theshare of agricultural credit supplied by ruraland semi-urban branches from 83.7 percent in1995 to 69.3 percent in 2005. In 2008, theshare of rural and semi urban branches in totalYearIndiaShare of agricultural credit from bank branches classified by population groups,India and Maharashtra, 1990-2008, in per centRural Plussemi urbanbranchesOnly ruralbranchesUrban plusmetropolitanbranchesOnlymetropolitanbranchesAll brances1990 85.1 55.5 14.9 4.0 100.01994 83.4 54.6 16.6 5.6 100.01995 83.7 52.7 16.3 7.3 100.02005 69.3 43.0 30.7 19.0 100.02006 62.4 37.1 37.6 23.8 100.02008 66.0 38.4 34.0 20.0 100.0Maharashtra1990 82.4 59.7 17.6 - 100.01994 76.8 52.9 23.2 - 100.01995 70.5 46.5 29.5 - 100.02005 41.8 26.1 58.2 48.5 100.02006 31.6 18.4 68.4 61.3 100.02008 42.4 25.7 57.6 48.3 100.0Source: calculated from basic Statistical returns of Scheduled Commercial Banks in India.agricultural credit was 66 per cent.Inside MaharashtraLet us now take Maharashtra, whichboasts of strong banking development and yetis the state with the largest number of suicidesby farmers. In Maharashtra, almost half of thetotal agricultural credit from commercial banksin 2008 was provided by metropolitanbranches. Mumbai alone had a share of 42.6per cent in total agricultural credit supplied inMaharashtra as a whole in 2008. As a result,there has been a widening of the gap betweenthe rural and metropolitan areas ofMaharashtra in the provision of agriculturalcredit. Rural branches provided only 25.7percent of the total agricultural credit inMaharashtra in 2008.It may be argued that credit taken,whether in metropolitan or rural areas, wouldultimately benefit the agricultural sector. Whatis missed in this argument is that an urban andmetro-centric supply of agricultural credit-9-Anusandhanika / Vol. III / No. I / January 2011

would only benefit large corporations with theirheadquarters in cities and engaged inagricultural production.The actual farmer in the villages, particularlythe small and marginal ones, would benefit theleast from the non-rural nature of growth ofagricultural credit. Regionally speaking,farmers from Vidarbha in Maharashtra, theregion from where a large number of farmers’suicides have been reported, are likely to bethe section that has the least benefit.The increasing concentration of agriculturalcredit in the urban and metropolitan areasoffers a missing link in the discussion on thepersistence of agrarian distress despite therevival in agricultural credit in the 2000s.ConclusionIn the nineties, the commercial bankscredit to agriculture registered a slow growth.Since 2000-05 the growth of commercialbanks credit to agriculture has pick up due tothe implementation of government policy ofdoubling agricultural credit. The RRBfunctioned well in the beginning for more than adecade after their establishment in 1975.Since 2002, it has been improving primarily asa result of their linkage with SHGs. The linkagehas also enabled them to revert back to theiroriginal mandate of serving the rural poor. Theconcentration of agricultural credit should be inrural areas also.References1. Reddy Y.V., Indian Agriculture and reform:concerns, issues and agenda, RBIBulletin, 2001, p 52. Ministry of Agriculture, Agricultural creditin Annual report: 2006-07, New Delhi,20073. Government of India, Economic survey,Ministry of Finance, New Delhi, 2005-06,p 1604. Economic and political Weekly, Revival inagricultural credit in 2005: An explanation,Dec 29, 20075. ‘The Hindu’ National Newspaper, Friday,August 13, 20106. Datt Ruddar and Sundharam K.P.M.,Indian Economy, S. Chand & Company,New Delhi, 2008, p 5867. The Indian Economic Association, Dec.2009-10-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 11-17ISSN 0974 - 200XIntroductionGlobal Recession: Opportunity and ChallengesDr. M.K.SinghDirector, MBAUniversity Department of Commerce & ManagementVinoba Bhave University, HazaribagSonal SharmaResearch ScholarUniversity Department of Commerce & ManagementVinoba Bhave University, HazaribagThe proximate cause of the currentfinancial turbulence is attributed to the subprimemortage sector in the USA. At afundamental level, however, the crisis could beascribed to the persistence of large globalimbalances, which, in turn, were the outcomeof long periods of excessively loose monetarypolicy in the major advanced economy duringthe early part of this decade.Global imbalances have been manifestedthrough a substantial increase in the currentaccount deficit of the US mirrored by thesubstantial surplus in Asia, particularly inChina, and in oil exporting countries in theMiddle East and Russia (Lane,2009). Theseimbalances in the current account are oftenseen as the consequence of the relativeinflexibility of the currency regimes in Chinaand some other EMEs. According to Portes(2009), global macroeconomic imbalanceswere the major underlying cause of the crisis.AbstractAs we know the intensifications of the global financial crisis following the bankruptcy of Lehman Brothers inSeptember 2008, has made the current environment a very difficult time for the world economy, the globalfinancial system and central banks. Every country in every part of the world has been affected by the crisis,although through different channels and to different degrees. It is, therefore, very important that we indentifythe causes of the current crisis accurately so that we can then find, appropriate immediate crisis resolutionmeasures and mechanism. Second, understand the differences among countries and how they are impactedand finally, think of the longer time implications for monetary policy and financial regulatory mechanisms. Inthis paper authors will attempt on sub-prime of financial crisis in USA, how it affect us ; why the Indianfinancial sector has been able to weather the crisis relatively well. Is global recession an opportunity for Indiaand this crisis has also been intellectual challenges because it has thrown up a number of issues. Out of allthis churning, lessons are being drawn and applied to policy and institutional reforms, so that a legion of bothpolicy makers and scholars are at work analysing the causes of the crisis and findings both immediate andlong term solutions.Keyword - Global recession, Lehman Brothers, de Larosiere report, The farner Review-11-These saving-investment imbalances andconsequent huge cross-border financial flowsput great stress on the financial intermediationprocess. The global imbalance interacted withthe flaws in financial markets and instrumentsto generate the specific features of the crisis.In 2008, the United States experienced aserious financial crisis which turned into amajor economic recession. Both events alsospilled over to the rest of the world.A globalrecession may be called global economicslowdown. The International Monetary Fund(IMF) defining global recession as globaleconomic growth of 3 percent or less isequivalent to a global recession. In globalrecession global per capita output growthbecome zero or negative. A recession is ageneral slowdown in economic activity over asustained period of time, or a business cyclecontraction. During recessions, manymacroeconomic indicators vary in a similarway. Production as measured by Gross

Domestic Product (GDP), employment,investment spending, capacity utilization,household incomes and business profits all fallduring recessions. Sub-prime crisis which wasthe main theme of post and the prime reasonthat eventually sparked a worldwide recessionis at best an immediate cause of the recession.The second main cause of the global recessionis credit creation. The bank creates moneysupposedly up to ten times what they have ondeposit and capital. The basis of the bankingsystem is fundamentally fraudulent. Themoney we assume the bank has on our behalfis in fact not there. The business of fractionalreserve banking is based on faith andconfidence therefore this is known as aconfidence trick. It's fraudulent because banksare lending out money held on deposit which issupposed to be "on demand" and areeffectively making money on money they donot have, and have no right to use. Due to thisfraudulent behaviour most banks have failedbecause depositors suddenly show up towithdraw all their money which the bank doesnot have. Moreover since Central banks werecreated as the "lender of last resort”, creditcreated through their policies gives rise to anartificial boom, which is inevitably followed by abust. Therefore Central banks manipulate themoney supply at will, by controlling allelements of the fractional reserve process, byaltering the reserve requirements and the totalmoney supply as and when deemednecessary.Materials and MethodsThis study is mainly based on the use ofavailable literature in the form of books,journals, reports etc. The approach followed inthis paper is purely textual. The materials usedhave at times been drawn from the website andextreme care has been taken to be objective inapproach.Results and DiscussionsHousing Finance & Securitization ofMortgages: Expanded the depth of mortgagemarkets by popularizing securitization ofmortgages: pooling together mortgages into alower risk, marketable security.Subprime Mortgage Market: The-12-explosive growth of the subprime mortgagemarket was due primarily to the ability tosecuritize and sell off those loans asCollateralized Mortgage Obligations (CMOs).Shadow Banking System: Shadow Banksas financial institutions not subject to bankregulations.Credit Crisis: Contraction of lending due touncertainty about the liabilities borrowersmight be holding.US Economic CrisisUS Recession: The recession formallystarted in December 2007; there were signs ofeconomic slowdown as far back as early 2006.Recession So Serious: The current USrecession is so serious because it originatedwith the financial crisis.Sub-Prime crisis in United States ofAmerica is termed as “the second greatdepression” because of the enormousdislocation it has created across continents. Itis the resultant of a multiplicity of factors. InUSA, borrowers are rated as prime orsubprime. Prime means good creditworthiness of borrowers and subprime loanmeans borrowers capacity to pay loan hasbeen below par. Loans to borrowers who donot qualify for normal interest rates. They haveproblems with their credit history. Interest ratehigher than other loans due to the increasedrisk. Variety of credit instruments, includingSub-prime mortgages, Sub-prime car loans,and Sub-prime credit cards, among othersdefined by U.S. Department of Treasuryguidelines issued in 2001,"Sub-primeborrowers typically have weakened credithistories that include payment delinquenciesand possibly more severe problems such ascharge-offs, judgments, and bankruptcies.They may also display reduced repaymentcapacity as measured by credit scores. Theseloans were backed by mortgage of the propertyfinanced. So, if the borrowers defaulted, bankscould always foreclose the property, sell it andrecover their loan. They paid no heed toprudential norms. As the Federal Bank (theUSA bank equivalent of RBI) startedincreasing interest rates, these subprimeAnusandhanika / Vol. III / No. I / January 2011

orrowers started defaulting. Stock prices inthe $6.5 trillion mortgage bundled securitiesmarket collapsed, leading to the collapse ofstock prices for many in the subprimemortgage industry, and drops in prices forsome large lenders like Countrywide Financial.This led to major declines in stock marketsworldwide, several multi-billion dollar hedgefunds have become worthless, Record dollardevaluation, coordinated national bankinterventions, Contractions of retail profits, andBankruptcy among several different mortgagelenders. The effect of the meltdown has spreadbeyond housing. It has disrupted globalfinancial markets as investors, largelyderegulated foreign and domestic hedgefunds, and was forced to re-evaluate the risksthey were taking and Consumers lost theability to finance further consumer spending,causing increased volatility in the fixed income,equity, and derivative markets.At the extreme, Indian corporations couldface higher costs of borrowing through thischannel due to increasing credit marketspreads. Firms would have to tap into thedomestic credit market as an alternative,thereby exerting upward pressure on domesticborrowing costs. This could whittle down theeconomic growth rate. These are the possiblechannels through which the US crisis couldaffect the Indian economy. Precise estimatesof these repercussions would need a morethorough analysis, which is premature giventhe short life of the crisis. In sum, the spill-overeffects of the US financial crisis to the Indianeconomy may not be significant enough tooverwhelm the positive economic momentumalready in place. The sub-prime crisis did notaffect India directly. Indeed, the initialexpectation was that robust growth in Chinaand India would rescue the global economy asemerging markets had ‘decoupled’ sufficientlyfrom OECD countries. This resulted in an influxof capital, currency appreciation and a stockmarket boom. However, once the credit stormin western markets combined with the spike incommodity prices to coalesce into a ‘perfectstorm’ of faltering growth and high inflation, thesecond round effects appear ominous.Impact of Global Recession on IndiaIn the age of globalization, no country canremain isolated from the fluctuations of worldeconomy. America is the most affected countrydue to global recession, which comes as a badnews for India. Recessions are the result ofreduction in the demand of products in theglobal market. Recession can also beassociated with falling prices known asdeflation due to lack of demand of products.Recession in the West, especially the UnitedStates, is a very bad news for our country. Ourcompanies in India have most outsourcingdeals from the US. Even our exports to UShave increased over the years. Exports forJanuary have declined by 22 per cent. There isa decline in the employment market due to therecession in the West. There has been asignificant drop in the new hiring which is acause of great concern for us. Somecompanies have laid off their employees andthere have been cut in promotions, compensationand perks of the employees. Companies in theprivate sector and government sector arehesitant to take up new projects. And they areworking on existing projects only. Projectionsindicate that up to one crore persons could losetheir jobs in the current fiscal ending March.The one crore figure has been compiled byFederation of Indian Export Organizations(FIEO), which says that it has carried out anintensive survey. The textile, garment andhandicraft industries are worse affected.Together, they are going to lose four millionjobs by April 2009, according to the FIEOsurvey. There has also been a decline in thetourist inflow lately. The real estate has also aproblem of tight liquidity situations, where thedevelopers are finding it hard to raise finances.IT industries, financial sectors, real estateowners, car industry, investment, banking andother industries as well are confronting heavyloss due to the fall down of global economy.Federation of Indian chambers of Commerceand Industry (FICCI) found that faced with theglobal recession, inventories industries likegarment, gems, textiles, chemicals andjewellery had cut production by 10 per cent to50 per cent. The impact of global financial-13-Anusandhanika / Vol. III / No. I / January 2011

crisis is “stronger and longer than expected”and there is a need to weather its negativeimpact on the domestic economy. The globalfinancial crisis originating in the US economy,the consequent economic slowdown and nowrecession in the US, the European Union andother developed country markets, and theassociated impact upon exports in India.The recession in the US market and theglobal meltdown termed as Global recessionhave engulfed complete world economy with avarying degree of recessional impact. Worldover the impact has diversified and its impactcan be observed from the very fact of fallingStock market, recession in jobs availability andcompanies following downsizing in the existingavailable staff and cutting down of the perksand salary corrections. Globally the financialsector sacking the existing base of employeesin high numbers in US, the major examplebeing CITI Group same still followed by othersin hospitality industry Jet and KingfisherAirlines too. The cut in salary for the pilotsbeing 90% can anyone imagine such a hugecut in salary.In the globalized market scenario, theimpact of recession at one place perculatedown to all the linked industry and this can betruly interpreted from the current marketsituation which is faced by the world sinceapprox two month and still the situation is not incontrol inspite of various measures taken tofight back the recession in the market. Thebadly hit sector at present is being the financialsector, and major issue being the "LiquidityCrisis" in the market.Global economic meltdown has affectedalmost all countries. Strongest of American,European and Japanese companies are facingsevere crisis of liquidity and credit. India is notinsulated, either. However, India’s cautiousapproach towards reforms has saved it frompossibly disastrous implications. The truth is,Indian economy is also facing a kind ofslowdown. The prime reason being, worldtrade does not function in isolation. All theeconomies are interlinked to each other andany major fluctuation in trade balance andeconomic conditions causes numerousproblems for all other economies.-14-Several crucial sectors of Indian economyare likely to face serious problems in comingmonths. Foremost among them is real estatesector. The demand for houses have reducedsignificantly and property prices across Indiahas registered 15-20% fall. The woes of realestate have spread to construction industry aswell. Because of less demand for houses,construction companies are going to suffer bigtime. Financial services segment is also likelyto be a major victim of economic slowdownbecause of less demand for credit and reducedliquidity in market. Industrial slowdown will alsoaffect transport services. Transport companiesare likely to witness drastic fall in their businessand profits. Global recession will also lead toless tourists coming to India. That willnegatively affect tours and travels industry.Recession will have its plus point and minuspoints. The minus points are that, there will bejob scarcity; retrenchment will be all time high,liquidity in the market will be low; export marketwill be severely hit etc. The plus point is thatcost of living will come down. Things we wereexporting will be forced to be sold locally,bringing the price of products down. Realestate which was out of reach for the commonman will be within his reach. The major impactof global economic recession in India oreconomic slowdown is with the small exportersand importers in the country as most of themare facing the problem of heavy duties.Everything is slowing down. Due to recessionmarkets are down, sales have decreased nowjust imagine products manufactured in India forexports, will not be sold in international marketdue to recession so it has affected exports andour industries are suffering.Effects of Global Recession on IndiaShare markets were/are falling.Due to recession, banks faced shortage ofliquidity; they started to withdraw theirinvestments from India.The Indian currency got weakenedagainst dollar: Before recession, bankscontinued to buy stock from India but nowthey are selling. The same stock thusconverting Rupee into Dollars andweakening our currency.Anusandhanika / Vol. III / No. I / January 2011

Banks faced huge shortage of funds andsoon collapsed.Global Recession - An Opportunity for IndiaNear recession in the US and the globalmeltdown will, of course, have its impact onIndia's high-tech industry, as it is one of thegreatest financial crisis of our globalized times.But it also presents an opportunity for Indianservices vendors to improve their marketshare, while forcing them to diversify and deriskacross sectors and geography. Smallworkers are allowed to get united. It is definitelya period of labour reforms. Global financialcrisis accelerate the industrial restructuringexercise. Corporate governance also comesout into a picture. Global recession providesIndia with an inflection point to leverage itsposition as a relatively safe destination forinvestment and to tap the inflow of capital forstrengthening the domestic economy. Globalrecession has offered two options, to go andget more education in any field or still better, orstart one own concern and create more jobs.-15-The current worldwide recession is aunique and excellent opportunity forentrepreneurs to establish their businesses.Recession should not threaten the newgeneration; instead, it should be taken as anopportunity to practise new principles andacquire new skills. Opening up of thegeographical boundaries of the Europeanmarkets has provided opportunities for manycountries such as China and India to dobusiness. Recession rather than a threatshould be seen as blessing. It is forcing them tohave a re-look at their existing IT infrastructureand how they can fine tune it to streamlineprocesses, improve productivity and help theirenterprises reduce costs. Recession willgenerate new opportunities for low-cost highquality services, especially the mergers.Arecession is all the more reason to cut costsand become more competitive on quality.Hence, more need to outsource and offshore.Many companies who were not outsourcingcertain processes will increasingly be forced todo so.The US Congress approved a revised$700 billion package to bail out the US financialsector. This means major opportunity for Indiabasedservices companies. Indian servicesvendors have an opportunity waiting. Thereare factors in their favor. The dollar has swungvery hard in the other direction now. India'sbrand image and reputation of servicesexpertise in a range of areas, beginning withfinancial services but now extending totelecom, engineering services and medicineand more is on the rise. And then there is thislarge untapped market - a long tail ofcompanies and processes that do notoutsource that may be forced to open up toreduce costs. An economic downturn is like amild ice age, with the survival of the fittest. Takethe airlines industry shakeout today: the fittestwill survive. This as an opportunity rather thandoom.Various steps taken by RBI to curb thepresent recession in the economy and counteract the prevailing situation. The sudden dryingupof capital inflows from the FDI which wereinvested in Indian stock markets for greaterreturns visualizing the Potential HigherReturns flying back is continuing to challengeliquidity management. At the heart of thecurrent liquidity tightening is the balance ofpayments deficit, and this NRI deposit moveshould help in some small way. The RBI willcontinue to initiate liquidity measures as longas the current unusually tight domestic liquidityenvironment prevails. The current step to curbthese being lowering of interest rates andreduction of PLR. However, the big-picturestory remains unchanged – all countries in theworld with current account deficits and strongcredit cycles are finding it difficult to bring costof capital down in the current environment.India is no different. New measures do notchange our view on the growth outlook.Indeed, we remain concerned about thebanking sector and financial sector. TheBalance of Payment deficit (BOP) at a timewhen domestic credit demand is very high isresulting in a vicious loop of reduced access toliquidity, slowing growth, and increased riskaversionin the financial system.In total, the recession have turned downthe growth process and have set the minds ofeconomists and others for finding out the realsolution to sustain the economic growth andAnusandhanika / Vol. III / No. I / January 2011

stability of the market which is desired for thesmooth running of the economy. Completebusiness or industry is in dolled rum situationand this situation persist for a longer durationwill make the small business to vanish as theyhave lower stability and to run smoothly requirecontinuous flow of liquidity which is drived fromthe market. In present situation down a fall inone sector one day leads to a negative impacton the other sector thus altogether everyonefeel the impact of the Financial crises with theresult of the current recession which started inUS and slowly and gradually due to linkedglobal world have impacted everyone. Solutionfor the problems still remain at the top of themind of every one, still everyone facing theimpact of recession but how long, this is themajor question.Collapse in Commercial Activities andBusiness set ups of the Economy. Theeconomy is facing a sheer drop in the businessactivities due to lack of demand and indicationsgiven by the existing market forces. Many bigfirms are following a mind numbing trend ofemployees’ layoff that has made the othersector labour force to fear for their job lost.Further, the lack of solubility has lead to manybank failures that in turn led to shutting downmany job opportunities. Employmentdegeneration, the employment sector is oneamong the majors that get affected by thesituation of economic failure and depression.The situation of unemployment in the economyhas deserted the people from satisfying theirbasic requirements for survival. LessPurchasing power the economic recessionperiod deprived people of income generationsources that in turn affect their purchasingpower. They tend to spend less and save morethat too in non-investment sources. Thekeeping back of money affects the monetaryflow in the market that led to the inflation forcesenter the scenario. Inflationary forces theinflation gets invited that alone becomesenough to worsen the whole situation further.The economy has not to wait for its collapse assoon as it is engrossed by inflation. The awfulsituation then leads to rise in oil prices, foodand basic expenditures that challenge the-16-survival of many sections of society. Suchsituation needs to be controlled in its initialstages so that the economy gets preventedfrom recording ‘The Great depression’ in theglobal history once again. Tax cuts aregenerally the first step any government takesduring slump. Government should hike itsspending to create more jobs and boost themanufacturing sectors in the country.Government should try to increase the exportagainst the initial export. The way out forbuilders is to reduce the unrealistic prices ofproperty to bring back the buyers into themarket. And thus raise finances for theincomplete projects that they are developing.The falling rupees against the dollar will bring aboost in the export industry. Though the buyersin the west might become scarce. The oilprices decline will also have a positive impacton the importers.ConclusionUndertake large private participationprojects with extremely tight deadlines todeliver better infrastructure including roads,telecommunications, electricity, banking,hospitals, river interlinking projects etc. This isreally the time to set out on ambitious andchallenging projects that can improve nationalproductivity and increase investor andconsumer confidence by inspiring throughunbelievable results. Invest and regulateeducation with a twofold objective first Improvethe quality of India's huge population presentlyin working age group and second undertakeeffective and radical reforms to ensure allchildren visit at least part time school.Encourage a regime to encourage taxationmainly at the hand of the seller of final good.Increase tax net and improve collections.Fourthly, improve transparency on tax moneyusage to encourage well meaning citizens topay taxes honestly. Crack down on corruption.Empower the Vigilance Commission and setup an executive body. To increase availabilityof working credit to segments represented byrural areas and persons below poverty lines.Improve patent laws to attract patents fromworld over in India. Be part of any global moveAnusandhanika / Vol. III / No. I / January 2011

that eliminates discriminatory tariffs based onorigin of produce and service and encouragesa world order of letting the consumer choosewhat is best for them.References1. Pelaez Carlos M, Global Recession Risk:Dollar Devaluation and the WorldEconomy, Palgrave Macmillan publisher,London, 20072. Dow Christopher, Major Recessions:Britain and the World, 1920-1995, OxfordUniversity Press, New York, 20043. Knoop Todd A, Recessions andDepressions: Understanding BusinessCycles, Praeger Publishers, New York,20044. Reddy Y.V., India and the Global FinancialCrisis: Managing Money and Finance,Orient Blackswan, Hyderabad, 20095. Vij Madhu, Management of FinancialInstitutions in India, Anmol Publications,New Delhi, 19916. Shrivastava R. M., Dr. Divya Nigam,Management of Indian Financial Institutions,Himalaya Publisher, New Delhi, 20037. Financial Genworth Financial, The Futureof Long Term Care in America BookDescription Chlopak Leonard Schechterand Associates, 2007-17-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 18-25ISSN 0974 - 200XImpact of Business Process Outsourcing (BPO)In Service Sector with special Reference to CMPDITarique SajjadSr. Manager, Department of Electronics,CMPDI,RanchiCo-ordinator, IGNOU Study Centre, Kantatoli,RanchiKeywords: Outsourcing, BPO, IT & IT Enabled ServicesIntroductionService Sector is a part of industry orbusiness, which deals with the marketing andselling of intangible products rather thanphysical goods. The service sector consists ofthe "soft" parts of the economy such asinsurance, tourism, banking, retail, education,and social services. In soft-sectoremployment, people use time to deployknowledge assets, collaboration assets, andprocess-engagement to create productivity(effectiveness), performance improvement,potential and sustainability.India’s Growing Services SectorIn India the service sector mainlycomprises of Information Technology (IT) & ITEnabled Services(also called web enabledservices or remote services or Tele-working),Engineering Services, Travel & TransportServices, Advertising Services, ManpowerRecruitment Services, Management Consultancy,Franchising, News Media, Hospitality Industry(e.g. Restaurants, Hotels, Casinos etc),Consulting, Legal Practice, Healthcare/Hospitals, Waste Disposal, Real Estate,Personal Services, Financial Services such asBanks, Insurance, Business Services andmany more.According to Report on India’s GrowingServices Sector by Federation of Indian ExportOrganisation, (FIEO), New Delhi, India.Service Sector in Indian Economy contributesAbstractBPO industry is a young and nascent sector in India and has been in existence for a little more than five years.Despite its recent arrival on the Indian scene, the industry has grown phenomenally and has now become avery important part of the export-oriented IT software and services environment. It initially began as anactivity confined to multinational companies, but today it has developed into a broad based business platformbacked by leading Indian IT software and services organizations and other third party service providers. BPOin Central PSU such as CMPDI may give fruitful result but it should be incorporated with utmost care keepingin view the larger interest of employees. This paper looks into how BPO is going to benifit CMPDI and whetherthere is any risk involved in it while introducing.-18-to around 55 percent of India's Gross DomesticProduct (GDP) during 2006-07. This sectorplays a leading role in the economy of India,and contributes to around 68.6 percent of theoverall average growth in GDP between 2002-03 and 2006-07. The service sectors of Indianeconomy that have contributed major portionof GDP are Information Technology (the mostleading service sectors in Indian economy), IT-Enabled services (ITES), Telecommunications,Financial Services, Community Services andHotels and Restaurants etc.India’s services sector has maturedconsiderably during the last few years and hasbeen globally recognized for its high growthand development. As per FIEO Report.Service sector has been growing at an annualgrowth rate of about 28% during the last 5years. There has been rapid growth in theservices exports from the year 2002. Theexports have grown up from US $ 19.1 billion toUS $ 73 billion in 2006. India’s share inworldwide service export is expected to almosttriple itself from current 2.3 % to 6 % by 2012, ifthe present annual growth rate of 28% hasbeen maintained.Today, Indian companies are offering avariety of outsourced services ranging fromCustomer Care, Transcription, Billing Servicesand Database Marketing to Web Sales/Marketing, Accounting, Tax Processing,Transaction Document Management, Telesales/Telemarketing, HR Hiring, Insurance Claims

Processing, Financial Management Services,Content Development Service sector such asEngineering and Design Services, Digitisation(GIS), Animation, Network Management andBiotech Research.Materials and MethodsResources has been taken from bothPrimary and Secondary sources ofdata/information. The material/information onthe topic has been taken from Annual Reportsof Coal India, Report of the Committee onIntegrated Coal Policy (Chari Committee),Corporate Plan of Coal India Limited, SankarCommittee Report and the various web sites.Data thus collected from both Primary andSecondary Sources is being integrated,analyzed and interpreted to develop a systemto achieve the objective of this Research.Results and DiscussionsThe idea of outsourcing has its roots in the'competitive advantage' theory propagated byAdam Smith in his book 'The Wealth ofNations' which was published in 1776. Overthe years, the meaning of the term'outsourcing' has undergone a sea-change.What started off as the shifting ofmanufacturing to countries providing cheaplabour during the Industrial Revolution, hastaken on a new connotation in today'sscenario. In a world where IT has become thebackbone of businesses worldwide,'outsourcing' is the process through which onecompany hands over part of its work to anothercompany, making it responsible for the designand implementation of the business processunder strict guidelines regarding requirementsand specifications from the outsourcingcompany. This process is beneficial to both theoutsourcing company and the service provider,as enables the outsourcer to reduce costs andincrease quality in non-core areas of businessand utilize his expertise and competencies tothe maximum. Outsourcing promises toreduce costs, achieve efficiencies, and providenew capabilities that economies oftechnological scale offer. It enhancesproductivity, access to latest technologies, andthe ability for organizations to free themselvesof administrative burdens and focus more onstrategic activities.According to National Association ofSoftware and Services Companies of India-19-(NASSCOM) Report “BPO exports have beenthe fastest-growing segment of the Indian IT-BPO sector. They have grown from $3.1 billionin fiscal 2004 to $11 billion in 2008 andcurrently account for 37% of the globalbusiness process outsourcing. They sustainan employee pool of more than 700,000.”NASSCOM and Everest India haverecently launched their Study on the IndianBPO sector, which evaluates the country’scurrent standing in this sector and its Roadmapuntil 2012. The Indian BPO sector, at its currentmomentum, can reach around US$ 30 billion inexport revenues by 2012. However, the sectorcan set itself a stretch target of US$ 50 billion(that is, approximately five times its presentsize) in export revenues by 2012. A five-foldgrowth in the Indian BPO market will addnearly 2.5 percent directly to India’s GDP fromexports earnings and provide directemployment to about 2 million people.BPO in IndiaBPO is a broad term referring tooutsourcing in all fields. A BPO differentiatesitself by either putting in new technology orapplying existing technology in a new way toimprove a process. Business ProcessOutsourcing (BPO) is the delegation of one ormore IT-intensive business processes to anexternal provider that in turn owns, administersand manages the selected process based ondefined and measurable performance criteria.Business Process Outsourcing (BPO) is one ofthe fastest growing segments of theInformation Technology Enabled Services(ITES) industry.Few of the motivation factors as to whyBPO is gaining ground are:Factor Cost AdvantageEconomy of ScaleBusiness Risk MitigationSuperior CompetencyUtilization ImprovementGenerally outsourcing can be defined as -An organization entering into a contract withanother organization to operate and manageone or more of its business processes.Different Types of Services Being OfferedBy BPO's1. Customer Support ServicesOur customer service offerings create aAnusandhanika / Vol. III / No. I / January 2011

virtual customer service center to managecustomer concerns and queries throughmultiple channels including voice, e-mail andchat on a 24/7 and 365 days basis.Service Example: Customers calling tocheck on their order status, customers callingto check for information on products andservices, customers calling to verify theiraccount status, customers calling to checktheir reservation status etc.2. Technical Support ServicesOur technical support offerings includeround-the-clock technical support and problemresolution for OEM customers and computerhardware, software, peripherals and Internetinfrastructure manufacturing companies.These include installation and product support,up & running support, troubleshooting andUsage support.Service Example: Customers calling toresolve a problem with their home PC,customers calling to understand how to dial upto their ISP, customers calling with a problemwith their software or hardware.3. Telemarketing ServicesOur telesales and telemarketingoutsourcing services target interaction withpotential customers for 'prospecting' like eitherfor generating interest in products andservices, or to up-sell / promote and cross sellto an existing customer base or to complete thesales process online.Service Example: Outbound calling to sellwireless services for a telecom provider,outbound calling to retail households to sellleisure holidays, outbound calling to existingcustomers to sell a new rate card for a mobileservice provider or outbound calling to sellcredit or debit cards etc.4. Employee IT Help-desk ServicesOur employee IT help-desk servicesprovide technical problem resolution andsupport for corporate employees.Service Example: of this service includelevel 1 and 2 multi-channel support across awide range of shrink wrapped and LOBapplications, system problem resolutionsrelated to desktop, notebooks, OS,connectivity etc., office productivity toolssupport including browsers and mail, newservice requests, IT operational issues,product usage queries, routing specificrequests to designated contacts and remotediagnostics etc.5. Insurance ProcessingOur insurance processing servicesprovide specialized solutions to the insurancesector and support critical business processesapplicable to the industry right from newbusiness acquisition to policy maintenance toclaims processing.Service ExampleNew Business / PromotionInbound/outbound sales, Initial Setup,Case Management, Underwriting, Riskassessment, Policy issuance etc.Policy Maintenance / ManagementRecord Changes like Name, Beneficiary,Nominee, Address, Collateral verification,Surrender Audits Accounts Receivable,Accounting, Claim Overpayment, Customercare service via voice/email etc.6. Data Entry Services / Data ProcessingServicesService ExampleData entry from Paper/Books with highestaccuracy and fast turn around time (TAT)Data entry from Image file in any formatBusiness Transaction Data entry likesales / purchase / payroll.Data entry of E-Books / Electronic BooksData Entry : Yellow Pages / White PagesKeyingData Entry and compilation from Web siteData Capture / CollectionBusiness Card Data Entry into any FormatData Entry from hardcopy/PrintedMaterial into text or required formatData Entry into Software Program andapplicationReceipt and Bill Data EntryCatalogue Data Entry.Data Entry for Mailing List/Mailing Label.Manuscripting typing in to wordTaped Transcription in to word.Copy, Paste, Editing, Sorting, IndexingData into required format etc.Data Conversion ServicesService Example-20-Anusandhanika / Vol. III / No. I / January 2011

Conversion of data across variousdatabases on different platformsData Conversion via Input / Output forvarious media.Data Conversion for databases, wordprocessors, spreadsheets, and manyother standard and custom-madesoftware packages as per requirement.Conversion from Page maker to PDFformat.Conversion from Ms-Word to HTMLformatConversion from Text to Word Perfect.Conversion from Text to Word to HTMLand AcrobatConvert Raw Data into required MS Officeformats.Text to PDF and PDF to Word / Text / DocData Compilation in PDF from SeveralSources.E-Book Conversion etc.8. Scanning, OCR with Editing & IndexingServicesService ExampleHigh speed Image-Scanning and Datacapture servicesHigh speed large volume scanningOCR Data From Scanned page / imageScan & OCR paper Book in to CD.ADOBE PDF Conversion Services.Conversion from paper or e-file to variousformats9. Book Keeping and AccountingServicesService Example:General LedgerAccounts Receivables and AccountsPayableFinancial StatementsBank ReconciliationAssets / Equipment Ledgers etc.10. Form Processing ServicesService ExampleInsurance claim formMedical Form / Medical billingOnline Form ProcessingPayroll Processing etc.11. Internet / Online / Web ResearchService ExampleInternet Search, Product Research,Market Research, Survey, Analysis.Web and Mailing list research etc.Activities to be Outsourcedi) Finance and accounting services whichincludes billing, collection, tax preparation,claims processing, statutory reporting,equity research, and patent writing andevaluation.ii) Data entry and conversion services,including medical transcriptionsiii) Customer interaction centers i.e. callcenters, contact centers etc.iv) Architectural servicesv) Translation servicesvi) Insurance servicesvii) Distance learning servicesviii) Marketing, advertising and PR servicesxi) Legal servicesBenefits of OutsourcingThe outsourcing may be fruitful andadvantageous for small & medium sizeorganisations in the following manners:Reduce and Control Operating Costs:Outsourcing may be a powerful way to reduceadministrative and production costs. Byleveraging an outsourcing company's size,specialization and lower wage rates, small andmid-sized companies can drive down costs intheir non-core business functions.Improve Company Focus: By concentratingresources on core businesses, a companymay become more efficient, drive costs furtherdown, provide better service and expand itsmarket share.Gain Access To World-Class Capabilities:BPO may take non-core administrativefunctions and make them their corebusinesses. They are experts in such businessprocesses as Human Resources, Sales,Marketing, Finance, Accounting, CustomerService, Procurement, Business Administrationand IT infrastructure, eCommerce, Data Processing,Network Management, Telecommunications,Data Security and Software Development. Awell funded outsourcing company may investheavily in people, technology and processengineering to provide state of the art servicesto their clients. This level of investment and-21-Anusandhanika / Vol. III / No. I / January 2011

commitment is beyond the abilities of mostmiddle market companies.Free Internal Resources For OtherPurposes: Outsourcing frees key managementfrom day to day routine and permits them tofocus on priorities. Staff utilizes more of theirskills; they have more interesting work andoverall productivity may increase. Boredom isthe biggest enemy of productivity.Resources May Not Available Internally:In 2005, Bill Gates complained aboutMicrosoft's difficulties in finding skilledprogrammers and opened Microsoft India.Finding qualified skilled workers is also aproblem for small and mid-sized companies.Outsourcing permits a company to rapidly fieldan expert team and implement financial,marketing, manufacturing and distributionprograms. As a result the BPO sector is veryfast growing in IT & IT Enabled Services inIndia due to very cheap, efficient and skilledmanpower in IT Sector.Accelerate Reengineering Benefits:Sometimes an executive needs to make amajor change to save an organization and thestaff does not have the skills or the interest toexecute a plan in a timely manner. Outsourcingoffers immediate access to qualified staff thatmay be more experienced and receptive tochange.Function Difficult To Manage/Out OfControl: Executives often seek to reduceexcessive costs for IT, legal, marketing,customer service and HR. The costs can bemeasured in hard cash and the time that thesenon-core businesses take to manage whichcan take focus away from the core business.Before a non core business becomes abottleneck to growth, it may make sense toscale back and outsource.Make Capital Funds Available: Whenproperly implemented and executed,outsourcing improves cash flow in four ways:Outsourcing may be cheaper than running theoperation internally. By focusing moreresources on the core business it becomesmore efficient and profitable. Capitalexpenditures and fixed costs are lowered andare transformed to variable costs driving upoperating margins and lowering break evenpoints. Because outsourcing increases thevalue of a business, the capital markets place ahigher multiple on future earnings.Share Risks: A well thought outoutsourcing partnership may provide for theoutsourcing company to adopt newtechnology, methods and productivityincreases. Small and mid-sized companiescan develop a partnership with a betterfounded provider who shares the risk ofinnovation.Cash Infusion: Some outsourcingcompanies may purchase staff andinfrastructure for cash in exchange for a longterm outsourcing commitment ranging from 7to 10 years.Risks of OutsourcingThere may be some risks factors involvedin implementing the BPO without takingprecautionary measures. The followingdisadvantages/risks may happen whileincorporating BPO:-Risks and dangers of transferring toomuch managerial power to one partner.Companies fear to be too dependent on oneoutsourcing partner because its failure to meetcommitments may result in large losses foroutsourcing company. To reduce such riskscompanies may diversify them, selectingseveral BPO vendors for partnering, in additionto thorough geopolitical analysis.Danger for senior management tobecome obsolete. When part of functions istransferred to offshore partner, it usuallyresults in lay-offs. This may become a seriousobstacle for companies willing to outsource, asthey may face strong opposition from its ownpersonnel and labour unions. In both casesindecisiveness and delays in acting may resultin low effectiveness or even unprofitablenessof outsourcing.Danger of becoming dependent fromoutsourcing provider. When consideringoutsourcing possibility, the companies shouldassess the consequences of vendor failure.The results of such analysis may vary greatlyfor different companies. To reduce possiblerisks of failure to carry out delivery schedules,companies shall work out legally bindingagreements with tough conditions and heavypenalties.Protection and security of confidentialinformation. Most mature BPO vendors enjoy-22-Anusandhanika / Vol. III / No. I / January 2011

more impressive security practices thaninternal ones of the outsourcing companies.However, the risk of commercial data theft orsecurity breach significantly increases whenworking in international business. Althoughthis issue rarely presents a serious obstacle tomaking a decision to outsource, it should notbe underestimated, the requirements must bedocumented and the methods and integrationwith vendors defined.Outsourcing results in knowledge transferto outside party and vendors personneltraining. There is an ever-present pressure toretain functions perspective for outsourcingwithin the company, even if it means increasingstaff and training new personnel. The mostcommon argument is that there is always apossibility of returning functions that havebeen outsourced back into the company.Companies must carefully assess theirbusiness knowledge and determine whetherits spreading might compromise companies’practices and hinder achieving strategic goals.Outsourcing is not just making a decision andenjoying the benefits of it. It is an ongoingprocess of strategic analysis and vendorsrelations management. Company must clearlyidentify its strategic goals, and decide whetheroutsourcing part of its functions will bebeneficial or it may hinder its strategicdevelopment.Brief Background Of Cmpdi & ItsActivitiesCentral Mines Planning & Design InstituteLimited (CMPDIL) was established in 1975 asa wholly owned subsidiary to provide in houseconsulting services to Coal India Limited (CIL).This Planning & Design Company wasestablished to prepare the techno-economicfeasibility reports of different projects for theseven coal producing subsidiary companiesnamely Eastern Coalfields Ltd. (ECL), BharatCocking Coal Ltd. (BCCL), Central CoalfieldsLtd (CCL), Western Coalfields Ltd (WCL),South-Eastern Coalfields Ltd (SECL),Northern Coalfields Ltd (NCL) & MahanadiCoalfields Ltd (MCL). It has now diversified itsactivities in several areas and undertakenseveral overseas projects under its new unit of“Coal Videsh”. Its Corporate headquarters is atRanchi and it has seven Regional Institutesattached with each of the subsidiary of coal-23-producing company. It renders services to CILand subsidiaries, directly to Ministry of Coal(MoC) and also takes up specific jobs forcompanies other than CIL as consultancyservices.The services rendered by CMPDI todifferent clients are listed below:A) For Coal India Ltd. (CIL)Exploration including drilling andpreparation of geological reports.Preparation of pre-feasibility reports,advance action proposals, feasibility/project reports, revised cost estimates fornew and reconstruction projects.Annual operational plans for large opencast mines.Preparation of project reports and workingdrawings for Coal Washeries, CoalHandling Plants and various infrastructurefacilities.Bid documents for Coal Handling Plants(CHPs), Workshops, Sub-Stations andother infrastructural facilities.Annual assessment of mine capacity andHeavy Earths Moving Machines (HEMM)/equipment performance for all mines ofCIL.Technical services related to blasting,ventilation, support design, non-destructivetesting, etc.Laboratory testing services for coalcharacterization, washability, air/waterquality, physical-mechanical properties ofrocks, etc.Management services for ISO certification.Energy audit/conservation studiesMining electronics and repair/testing ofelectronic components of equipment.Third party inspection of quality checkingof materials and random testing ofexplosives procured by subsidiaries.Contract Management Manual (CMM)related services.Special reportsNodal agency for CIL, Research &Development (R & D) projectsB) For Ministry of Coal (MoC)Promotional exploration and detaileddrilling for non-CIL blocksNodal agency for other Central SectorAnusandhanika / Vol. III / No. I / January 2011

schemes, viz Research Projects underScience & Technology (S&T) schemes .Identification and evaluation of captivemining blocksTechnical services including preparationof special reports.C) For Outside ClientsThe above listed services are beingprovided to companies outside CIL alsodepending upon specific job orders andbased on open market bidding or specificrequisition for such services.BPO in CMPDITo meet the growing demand of coal bypower, steel and cement sectors, CMPDIL, theexploration subsidiary of the country’s largestcoal producer Coal India Ltd., is going tooutsource about 10 lakh meters drilling task toother companies. CMPDIL is going to sign amemorandum of understanding (MoU) withMECL for conducting coal drilling projects of 1lakh meters. For this Central Mine Planningand Design Institute (CMPDIL) already joinedhands with Mineral Exploration Corp (MECL)to fast-track the process of coal exploration inthe country. The tie-up will help CMPDIL toinvolve MECL in undertaking its drilling workswithout inviting tenders. The purpose of thisstep is to accelerate coal exploration activitiesby saving time lost in the tender processingsystem. After signing the MoU with MECL,CMPDIL will not require to outsource drillingprojects to MECL via tendering process. Thecompany plans to enhance coal explorationcapacity from 2 lakh meters per annum to 10lakh meters per annum by 2011-12. MECL willdrill up to 1 lakh meters, outsource 5 lakhmeters to private players and increase inhouseexploration capacity 4 lakh meters.With a positive response from variouscompanies across the globe for the globalexpression of interest (EoI) floated for detailedexploration, the company is optimistic that itwill be able to take its capacity to 10 lakhmeters in the near future. In the current fiscalthe company has outsourced 3.87 lakh metersof drilling task for eight blocks across thecountry that may be developed by CIL orallotted as captive blocks. CMPDIL is in theprocess of finalising another deal foroutsourcing 6.5 lakh meters drilling with privateplayers. The exploration is likely to be carried-24-out in another five years.The ministry wants to enhance the presentdrilling capacity of CMPDI to 10 lakh metersper annum as soon as possible. For that, it islikely to invest Rs 1500 crore in terms ofrunning revenue for enhancing its drilling in theEleventh Plan period. The company isplanning to replace the old drilling machinesand bringing new technology to enhance itsdrilling capacity.Moreover, the coal exploration agencywould have to work on resource evaluation anddocumentation for investment and exploitationdecisions as more coal mines develop andbegin production in eleventh plan period.Government has also asked CMPDI toincrease its mapping capacities to match thespiralling demand for raw materials. CPMDI iscarrying out detailed exploration through 20camps and 47 drilling machines and around 2lakh meters of drilling is done every year, whichis the company's existing drilling capacity. CoalIndia Ltd (CIL) has recently assigned CMPDIthe exploration of 165 billion tons of unprovencoal deposits out of the total domestic reservesof 264 billion tons. The company has a totaldrilling target of 3.4 lakh meters for the fiscal2008-09. Out of this, drilling work for morethan1 lakh meters is already outsourced while5000 meters will be done by state governmentagencies.The company plans to carry out a total of23.44 lakh metres of drilling in five years of theEleventh Plan period through in-house drills aswell as outsourcing services.ConclusionCMPDI may be made an autonomousbody with powers to independently hire subcontractorsor bid out exploration work so as toenhance its drilling capacity from 3 lakh metersper annum to 10 lakh meters per annum by theend of the 11th Plan. A list of recognizeddomestic and foreign contractors can bedeveloped to enhance the number of players inthe field of detailed exploration in India.CMPDI’s current capacity of drilling 3 lakhmeters per annum may be raised to at least 15lakh meters per annum by involving all eminentagencies within the country and outside byoutsourcing.The most urgent measure to augment coalsupplies and increase the number of players inAnusandhanika / Vol. III / No. I / January 2011

coal mining would be to ensure the full and fairuse of the provisions for captive coal-miningunder the current legal framework, especiallyby those public and private power generatingcompanies with the necessary financial andmanagement capabilities to quickly realize thefull potential of captive blocks. The currentprovisions for increasing the level ofcompetition in coal mining through captivemining and outsourcing may be able to meetthe target of CMPDI.In order to increase the proven category ofreserves CMPDI may speed up detailedexploration by engaging institutions/companies which could take up exploration ofthe blocks under the Indicated and Inferredcategories. Awards may be made on the basisof competitive bidding and CMPDI should begiven the necessary funding for this purpose.This may lead to higher costs of exploration ascompared to CMPDI. But when such blocksare given for captive mining, all the data andinformation collected could be transferred tothe allottee on collection of all the costsincurred in the exploration.BPO in CMPDI may provide few of thebenefits as mentioned above and the targetmay be achieved to compete in the globalmarket. But introducing outsourcing in publicsector is not so easy task. Government hasdifferent objectives than the private sector,thus, it cannot blindly follow the private sector’slead. Many elements must be taken intoconsideration, including political climate,unions, local economies, employmentsituation, and the investments required andavailable. Management must carefully weighthe potential negative consequences—jobloss, skills transfer, unemployment costs, anddisruption of local economies—against thepromised benefits.References1. Source Federation of Indian ExportOrganisation (FIEO), New Delhi, India2. Report on The Domestic BPO Market -The next frontier for India's outsourcingindustry? By: Knowledge@Wharton 1stAugust, 20083. Sour NAG, B.2004/05. Business ProcessOutsourcing: Impact and Implications.Bulletin on Asia-Pacific Perspectives4. Newman Robert, 10 Benefits Of OffshoreOutsourcing For High Growth Companies,New York, USA - May 28th, 20065. NASSCOM-Everest India BPO Study,20086. Coal Insights7. Mishra Harsh, Mantra for CorporateEfficiency Company Secretary (ACS14822) Ahmedabad8. TOP 10 REASONS TO OUTSOURCE,John Parker, New York, NY, USA - June17th, 20069. Sankar committee Report, The ExpertCommittee on Road Map for Coal SectorReforms, Ministry of Coal, Government ofIndia, New Delhi, December 200510. Different Web sites and portals related toBPO-25-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 26-32ISSN 0974 - 200XIndian Gems & Jewellery Industry –Problems and ProspectsDr. Rajesh KumarFaculty, MBAUniversity Department of Commerce & Business AdministrationT.M.B.U., BhagalpurKeywords: Export, Import, Foreign Trade Policy, Mercosur Preferential Trade AgreementIntroductionPolished Diamonds: India is one of thebest markets in the world in the polisheddiamonds for its world-class quality ofdiamonds as well as exquisite cuttingskills. Surat and Jaipur are famous asworld class polishing and designingcenters.The gems and jewellery industry occupiesan important position in the Indian economy. Itis an integral part of Indian tradition a legacypassed from one generation to another. Thecomponents of jewellery include not onlytraditional gold but also diamond and platinumaccompanied by a variety of precious andsemi-precious stones. It is a leading foreignexchange earner and also one of the fastestgrowing industries in the country. Before theliberalization of the Indian economy in 1991,only the Minerals and Metals TradingCorporation of India (MMTC) and the StateBank of India (SBI) were allowed to importgold. The abolition of the Gold Control Act in1992, allowed large export houses to importgold freely. Exporters in export processingzones were allowed to sell 10 percent of theirproduce in the domestic market. In 1993, goldand diamond mining were opened up forprivate investors and foreign investors wereallowed to own half the equity in miningventures. In 1997, overseas banks and bullionsuppliers were also allowed to import gold intoIndia. These measures led to the entry offoreign players like DeBeers, Tiffany andCartier into the Indian market.The Gems and Jewellery sector basicallycomprises of sourcing, processing,manufacturing and selling of precious metalsand gemstones, such as platinum, gold, silver,diamond, ruby and sapphire. The sector canbe classified as :AbstractGems and Jewellery have been a part of the Indian civilization since its recorded history, the significance ofthe Gems and Jewellery industry in the Indian economic scenario is a development of the last three or fourdecades. This paper attempts to provide an insight about the problems and prospects of Gems and JewelleryIndustry. This paper discusses about export trends of various classifications – Gold, Diamond, SyntheticStones and Gem Stones. Demand, Recent developments in this industry, actions taken by the governmentand future prospects of this industry are also discussed.-26-Gem Stones: This category refers to thestones other than diamonds. Thesestones come under two basic categoriesthat are precious stones and Semiprecious stones.Gold and Jewellery: This categoryrepresents the gold and jewellery, which isused in the manufacturing of variousornaments.Synthetic Stones: Synthetic diamond isdiamond produced through chemical orphysical processes in a laboratory. Likenaturally occurring diamond it is composedof a three-dimensional carbon crystal.Synthetic diamonds are also calledcultured diamonds. Synthetic diamond isnot the same as diamond imitation, whichcan be made of other material.IndustryStructureGemstonesPearlDiamondsColoured StonesSemi-preciousStonesJewelleryPlain GoldStuddedSilverCostume

India is one of the fastest growingjewellery markets in the world and is the largestconsumer of gold (around 20-22 percent ofglobal consumption) and also the largestdiamond processor (around 90 percent bypieces and 55 percent by value of the globalmarket). The industry is highly unorganizedand fragmented with around 96 percent of thetotal players being family-owned businesses. Itis estimated that the country has around450,000 goldsmiths, 100,000 gold jewelers,6,000 diamond processing players and 8,000diamond jewellers. The major players in thissector are Rajesh Exports, Classic Diamond(India) Ltd., Shrenuj & Company Ltd., GoldiamInternational Ltd., Gitanjali Gems, SubhashishDiamonds and Tanishq. The major marketsinclude the US, Hong Kong, UAE, Belgium,Israel, Japan, Thailand and the UnitedKingdom.India is a leading exporter of jewellery,especially diamonds and diamond jewellery, tothe world and to the United States. In 2006, theUnited States imported $5.9 billion worth ofjewellery from India, or 25.5% of all importsfrom India. Of this, $3.3 billion (55.5%) werediamonds and diamond jewellery and another$2.4 billion (41.0%) was precious metaljewellery.Materials and MethodsThis study is mainly based on the use ofavailable literature in the form of books,journals, reports etc. The approach followed inthis paper is purely textual. The materials usedhave at times been drawn from the website andextreme care has been taken to be objective inapproach.Results and DiscussionsThe depletion of many of India’s diamondmines has pushed its industry to source itsdiamonds from overseas. In 2005, Indiaimported nearly $10.6 billion worth ofdiamonds. This has raised concerns about thepossible import of so-called “conflictdiamonds.” In January 2003, India, the UnitedStates, and 53 other countries endorsed a UNinitiative called the Kimberley CertificationProcess that certifies that the diamonds do notcome from Angola, Liberia, Sierra Leone, and-27-Congo. In 2005, India considered lowering theFDI limit for diamond mines from 100% to 74%in an effort to close a possible back door for theimport of “conflict diamonds.” However, thereare claims that uncut “conflict diamonds” arestill finding their way into India, especially intothe markets in Surat. If true, then there is highlikelihood that “conflict diamonds” could alsobe making their way into the U.S. consumermarket.SWOT Analysis – Gems & JewelleryStrengthsi. About one million craftsmen are associatedwith this industry. Their skills can beutilized for designing and making modernjewellery.ii.iii.Availability of abundance of cheap andskilled labor in India.Presence of excellent marketing networkspread across the world.Weaknessi. Small firms lacking technological / exportinformation expertise.ii.iii.Low productivity compared to China,Thailand and Sri Lanka.As the major raw material requirementsneed to be imported, companies normallystock huge quantities of inventoryresulting high inventory carrying costs.Opportunitiesi. New markets in Europe & Latin America.Growing demand in South Asian & FarEast countries.ii.ThreatsRupee value depreciating resulting in awindfall increase in the profitabilityindustry moving from a phase ofconsolidation.i. China, Sri Lanka and Thailand’s entry insmall diamond segment.ii.iii.Infrastructure bottlenecks, absence oflatest technology.Unusual increase in the prices of gold andrough diamonds.Export TrendsThe Indian gems and jewellery industry isAnusandhanika / Vol. III / No. I / January 2011

competitive in the world market due to its lowcost of production and the availability of skilledlabour. In addition, the industry has set up aworldwide distribution network, of more than3,000 offices for the promotion and marketingof Indian diamonds.According to the investment commissionof India the industry is expected to have a 65 %share of the global market by the end of 2010.In terms of domestic sales, branded jewelleryis likely to become the fastest growingsegment and is expected to witness a growthof 40 % per annum to US $ 2.2 billion by 2010,as per McKinsey. The export of gold jewellerywas valued at Rs. 3642.5 million in 1990-91.This increased to Rs. 11,486.9 million in 1993-94. The progressive trend in export of gold isshown in Annexure II.• As per the latest Gems & Jewellery ExportPromotion Council (GJEPC) release, theindustry registered exports worth US $ 15billion in April-December 2008 (Provisional),compared to US $14.9 billion in thecorresponding period of 2007, registeringa growth of .59 %. Further, the total gemsand jewellery exports from India stood atUS $ 20.8 billion in the financial year 2007-08, against US $ 17.1 billion in theprevious year, witnessing a growth of22.27 %. The sector accounted for 13.41% of India’s total merchandise exports.• Out of the total US $ 20.88 billion exportsgenerated by the Indian gems andjewellery sector, the United States andHong Kong accounted for the largestimport, with a share of 26 % each,followed by UAE at 21 %.• Gold jewellery exports increased from US$ 5.2 billion in 2006-07 to US $ 5.6 billion2007-08.• Export of cut and polished diamonds grewfrom US $ 10.9 billion in 2006-07 to US $14.2 billion in 2007-08, witnessing agrowth of nearly 68 percent.• Export of colored gemstones increasedfrom US $ 246.4 million in 2006-07 to US $276.42 million in 2007-08.• The export industry mainly comprises ofsmall-to-large units based in variousspecial economic zones (EPZs) inChennai and Noida and SantacruzElectronics Exports Processing Zone(SEEPZ) in Mumbai, supplying primarilydiamond-studded jewellery. More SEZsare on the anvil.With the US economy beginning torecover and the US consumers typicallypurchasing about half the world’s diamondsand diamond jewelry, retail prices are movingupward. The economies of other diamondconsumingcountries are also showing signs ofrecovery so the global demand for polisheddiamonds is expected to rise in 2010.At the end of January 2010, there was anindustry wide price increase for diamonds over3.0 carat weight with price increases rangingfrom 1.5% to 3.5% depending on carat weight,color and clarity. In mid-February, anotherindustry wide price increase occurred for rounddiamonds in the 1.00 to 1.99 carat range with atleast H color and VS2 clarity and had increasesin the 1.0% to 5.0% range depending on caratweight, color, and clarity.Changing ScenarioYESTERDAYUnbrandedSilver & Gold jewelleryInvestmentTraditional designMarriage & festival is peakseasonTODAYBrandedGold & Diamond jewelleryInvestment + FashionFashionable & innovativedesignWearability and giftsGold versus Diamond investment – comparisonGold is not as rare as diamond. Diamondis a thousand times rarer. There is more goldexplorable at the earths surface. Gold is a longtime precious metal, since ancient times. Goldspeculation, i.e. trading gold without the actualgoods, makes the metal exchange volatile andspeculative.The high degree of rarity of a diamondmakes up its value. In addition diamond has ahigh value for its very low weight, it is easy totransport. Obviously the buyer will need areliable source to purchase the diamond, adiamantaire who is able to guarantee abuyback at the exchange rate of the day.-28-Anusandhanika / Vol. III / No. I / January 2011

Demand: Gold and JewelleryThe increasing independence of womenin developing countries like India and shifts inattitudes and behaviours, combined with asignificant increase in their personal wealth,have led to enormous growth in the potentialmarket for gold jewellery. Research revealedtoday by the World Gold Council points tomajor cultural changes in developing societiesthat have influenced women to take moreresponsibility in their own appearance andindependence in their purchases - a pattern setto continue as the wealth of developingcountries continues to grow.The World Gold Council (WGC), themarketing organization for the global goldmarket, researched over 9,000 women acrossall six key gold jewellery markets: China, India,Italy, Saudi Arabia, Turkey and the USA. Withthe exception of the USA and Italy, wheresamples reflected the entire female population,all other markets were representative of theurban population only, and the data wasweighted to reflect this. The research wasconducted with women aged 15–65 years.Commenting on the research, PhilipOlden, Managing Director, Jewellery andMarketing at the World Gold Council, said:“Developing countries have historicallyaccounted for the majority of gold jewellerydemand, and the research points to anincreasing appetite for gold amongst theemerging middle class. This is driven not onlyby increased wealth but also a greater sense ofindependence and significant changes inconsumer attitudes, whereby gold jewellery ismuch more desirable now to women aroundthe world than it was three years ago.“It is clear from the research that goldjewellery markets should not be simplycategorised as either “investment” or“adornment”. We are seeing much moreconvergence. The emotional attributes andbenefits of gold, as well as its practical orfinancial benefits, play important andcomplementary roles to women around theworld. The rise in the gold price over the pastthree years has added to gold’s desirability, buthas also provided a stronger justification forwomen to buy gold jewellery.”-29-In India, rural areas are a major consumerof gold. In 2006, 60 percent of the demand forgold came from rural India as they have fewinvestment options than people in urban areas.In the first half of the year 2007, goldconsumption rose to 70 percent over thecorresponding period of 2006. The first sixmonths saw gold consumption of 528 tonnes,compared with 307 tonnes in the correspondingperiod of 2006. The southern region aloneaccounts for 40 to 45 percent of country’s golddemand. India’s import of gold fell by almost 50percent to 101 tons during the first quarter of2008. India imports about 90 percent of goldfrom South Africa and the rest from Australiaand Russia. To summarize,India accounts for 20 percent of the worldgold consumption, the largest in the world.The country consumes nearly 800 tonnesof gold, of which nearly 600 tones go intomaking jewellery. Further, India is alsoemerging as the world’s largest tradingcentre for gold targeting US $ 16 billion by2010.The Indian diamond jewellery industry isthe third largest consumer of polisheddiamonds after US and Japan. Diamondjewellery consumption is likely to jump tonearly 80 percent in 2010 and over 95percent between 2010 and 2015.Problems and ExpectationsThe sector has seen one of the mostdifficult year in 2008, with more than 100,000skilled and unskilled laborers’ being laid-offdue to poor demand from the USmarket–which is reeling under the currentglobal economic downturn. In fact, India’sjewellery sales to the US declined over 20percent even during the holiday season, i.e.Christmas and New Year. Furthermore, thedomestic jewellery demand has alsodecreased by over 20 percent. To counter thesituation the industry has demanded for aseparate bailout package from the governmentin ther third stimulus package (White Drums,2009).On 11th July 2009, Mr. Vasant Mehta,Chairman, Gems and Jewellery ExportPromotion Council (GJEPC) held discussionswith the Honorable Finance Minister, ShriAnusandhanika / Vol. III / No. I / January 2011

Pranab Mukherjee on recovering the industryfrom recession. The charter of expectationssought government intervention as under:Increasing the flow of dollar liquidity to theindustry which has a projected need of atleast $ 3-4 billion in the coming year. Suchadditional dollar finance may be madeavailable from the foreign exchangereserves of the country (White Drums,2009).Domestic funding at internationallycompetitive rates (LIBOR based) asopposed to the high interest rates beingcharged by the Banks at present. This canbe facilitated with an interest subventionof 2% (White Drums, 2009).Citing the peculiar nature of the Industry,characterized by daily price fluctuations,as a major cause for taxation dispute, theGJEPC has proposed the levy of a flat 1%turnover tax in place of all forms of currentdirect taxes, thereby doing away witharbitrariness, confusion and delays infinalization of tax returns. Owing torecessionary pressures, income on exportearnings should be made tax-free for thenext two years (White Drums, 2009).Export credit limits sanctioned by thebanks as on 1st April 2008 to exporters ofthe Gem & Jewellery Industry should becontinued till 31st March 2011 (WhiteDrums, 2009).The lack availability of duty free gold inmany parts of the country severelyconstrains small exporters who find itdifficult to procure their primary rawmaterial and are unable to be competitivein the International markets. As a relief tothem, the introduction of a duty draw backscheme for Gold Jewellery exports hasbeen proposed by the GJEPC (WhiteDrums, 2009).In another meeting called for byHonorable Minister of Commerce & Industry,Shri Anand Sharma, Mr. Mehta tabled some ofthe measures required to provide relief to theIndustry. These include reduction in importduty on machinery from 10% to 5%; reductionin import duty on Plain Gold Jewellery below22k form 10% to 5%; removal of import duty onRhodium and Rough Coral; and Reduction inimport duty on Precious Metal Scrap from Rs.257.50 per 10 gram to Rs. 100 per 10 grams(White Drums, 2009).In order to revive the Indian economy fromthe current global economic downturn, thegovernment announced a stimulus packageon December 7, 2008. Some of the measuresannounced in the package that might benefitthe gems and jewellery sector include:Increasing the Post-Shipment RupeeExport Credit Period from 90 days to 180days with effect from November 28, 2008.Increasing the Pre-Shipment RupeeExport Credit Period from 180 days to 270days with effect from November 15, 2008.Providing an interest subvention of 2percent up to March 31, 2009 subject tominimum rate of interest of 7 percent perannum, to make pre and Post-shipmentexport credit for labor intensive exports,such as gems & jewellery, more attractive.Allowing exporters to avail refund ofservice tax on foreign agent commissionsof up to 10 percent of FOB value ofexports. They will also be allowed refundof service tax on output services whileavailing benefits under Duty DrawbackScheme.Recent DevelopmentsIn the recent years, Indian manufacturerssuch as Gitanjali have forayed overseas bytaking over the jewellery retail outlets in the USand at the same time several large overseasplayers have outsourced jewellery design andmanufacturing to the players having their unitsin the special economic zones in Surat andMumbai.DVN Traders, a Mumbai based jewelleryexporter and manufacturer leveraged use of ITfor their business. They found online B2Bmarket places such as Alibaba.com andTradekey.com for selling their products to thecustomers spread across the world.Foreign Trade Policy (2009-2014)In the new foreign Trade Policy (2009-2014), Honorable Union Minister of Commerce-30-Anusandhanika / Vol. III / No. I / January 2011

Shri Anand Sharma announced somemeasures for gem & jewellery sector:To neutralize duty incidence on goldjewellery exports, it has now been decidedto allow Duty Drawback on such exports.Import of Diamonds on consignment basisfor Certification/ Grading & re-export bythe authorized offices/ agencies ofGemological Institute of America (GIA) inIndia or other approved agencies will bepermitted.To promote export of Gems and Jewelleryproducts, the value limit of personalcarriage have been increased from US$ 2million to US$ 5 million in case ofparticipation in overseas exhibitions. Thelimit in case of personal carriage, assamples, for export promotion tours, hasalso been increased from US$ 0.1 millionto US$ 1 million.The number of days for re-import ofunsold items in case of participation in anexhibition in USA has been increased to90 days.In an endeavor to make India aInternational Diamond Trading Hub, it isplanned to establish “Diamond Bourses”.With an objective to meet the Dollar Creditneeds of exporters, a Committee has beenconstituted consisting Finance Secretary,Commerce Secretary and Chairman IBA.India – Mercosur Preferential TradeAgreementMercosur is a trading bloc in Latin Americacomprising Brazil, Argentina, Uruguay andParaguay. Mercosur was formed in1991 withthe objective of facilitating the free movementof goods, services, capital and people amongthe four member countries.As a follow up to the FrameworkAgreement, a Preferential Trade Agreement(PTA) was signed in New Delhi on January 25,2004. The aim of this Preferential TradeAgreement is to expand and strengthen theexisting relations between Mercosur and Indiaand promote the expansion of trade bygranting reciprocal fixed tariff preferences withthe ultimate objective of creating a free tradearea between the parties. This came into effectfrom June 1, 2009.Anant Diamond Jewellery – India DiamondJewellery PromotionAnant – Indian diamond jewellerypromotion is a joint undertaking initiated by theGems and Jewellery Promotion Council, GoldSouk, Rio Tinto, International GemologicalInstitute and All India Gems and JewelleryTrade Foundation. GJEPC will promote Anantin print, electronic and outdoor media.Prospects: Investment ScenarioPositive govt. policies such as 100percent Foreign Direct Investment (FDI) ingems and jewellery through the automaticroute has further provided an impetus to thebooming gems and jewellery industry. Some ofthe major developments include:Reliance Retail is planning an aggressiveentry into the jewellery retail market. It willopen between 400 to 500 jewellery retailoutlets across the country.D’Damas India, part of one of the largestjewellery retail outlets in the world, isadding 16 new stores to the 12 stores itcurrently has in India.The Gitanjali Group has bought ‘Nakshatra’,the premium brand of jewellery promotedby Diamond Trading Company (DTC).Gitanjali Gems, a diamond and jewellerymanufacturer has entered into anagreement with the Mineral and MetalTrading Corporation of India (MMTC), aleading bullion trader, and would investUS$ 12.69 million in the first phase of thejoint venture.Thai company Pranda Jewellery isforaying into retailing in India and will beinvesting US$ 21.15 million towards retailexpansion in the country.Geneva-based luxury watch and jewellerybrand de Grisogono is firming up its plansto foray into the Indian market. It has setup its first flagship boutique for US$ 5.29million. The company will be adding sixmono-brand outlets by 2011.-31-Anusandhanika / Vol. III / No. I / January 2011

The Road AheadThe Indian gems and jewellery sector isexcepted to cross US$ 26 billion by 2012,driven by availability of a huge base of skilledlabor and improving lifestyle, according to anew report called "Indian Gems and JewelleryMarket - Future Prospects to 2011", byRNCOS, published in September 2009.According to the same report, the Indiangems and jewellery sector is expected to growat a compound annual growth rate (CAGR) ofaround 14 per cent from 2009 to 2012.According to industry experts theconsumption of diamond jewellery in India isexpected to touch US$ 6.41 billion in 2012.State-run National Mining DevelopmentCorp (NMDC) plans to produce close to100,000 carats of diamonds from the Pannadiamond mines in Madhya Pradesh by 2010-11.ConclusionGold is a time tested asset. Even when theprice rises, people continue to buy it. The realvalue of gold for investors lies not its priceperformance but in its reliable diversificationreturn. Jewellery designers will have to workon innovative design concepts that will addsome utility value to the luxury jewelleryproducts and help them to stay afloat. TheKPMG report titled “The Global Gems andJewellery: Vision 2015: Transforming forGrowth” has projected that global jewellerysales will grow at 4.6 percent on year to yearbasis to touch $ 185 billion by the year end of2010 and $ 230 billion in 2015. Hence theoutlook for gold looks extremely bullish.References1. Sundaram Satya I., Gems and Jewellery:Towards a Turnaround, Facts for You,September 2009, pp 7-92. Sundaram Satya I, Gold: Elusive Attraction,Facts for You, December 2008, pp 17-183. Gandhi G. P., Global Markets for IndianGems & Jewellery, Facts for You,November, 2008, pp 21-263. Sharma Onkar, A Jewellery ExporterExpands through Online Marketplaces,Benefit September 2009, pp 16-184. Drums White, Gems and JewelleryIndustry seeks Budgetary Relief, June 12,2009, http:/whitedrums.com, 20095. Industry Watch, Gems and Jewellery,Economywatch.com6. Sectoral Overview, Gems and Jewellery,CII – imsme (Indian MSME ecosystem),February 2009, imsme.org7. Gems and Jewellery Export PromotionCouncil, http://www.gjepc.org8. http://gold.org9. http://import-export.suite101.com/article.cfm10. http://indian-gem.blogspot.com11. http://www.goldprice.com12. http://www.kitco.com13. http://diamonds.blogs.com/diamonds_update/diamond-prices14. http://www.ibef.org/industry-32-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 33-36ISSN 0974 - 200XManpower Planning and Management inNew Economic Era in CCLRakesh Kumar Dhar DubeyResearch ScholarDepartment of Commerce and Business ManagementRanchi University, RanchiKeywords: Outlay, ore, fossil, overman, quantumIntroductionCoal in India has a glorious history. It is themost valuable gift of nature. Warren Hastingsinitiated commercial coal mining at Raniganj1(West Bengal) in the year 1774 AD . Theworking of the mines first began in 1814 butextensive operations started in about 1825.Large coal mines in Burdwan district of Bengalwere worked in 1832 AD to the extent of 140002or 15000 tones annually. The opening ofmines at Raniganj marked the beginning ofcoal mining in Bengal. Car Tagor and3company took over Raniganj mines in 1835.Bengal Coal Company was formed in 1843 toexplore and expand local mining in publicsector. Its progress was retarded till 1854 whenthe East India Railway reached the field. Theoutput rose from 293443 tones in 1857 to1019793 tones in 1880. The industry showedand accelerated growth between 1895 and1909. The number of joint – stock coalcompanies was 128 in 1909 of which 119 werein Bengal, the total paid up capital stood at Rs.47,31,12,842.A large labour force had the opportunity tofind employment in the coal industry, thenumber of miners who were recruited fromagricultural classes rose from 28,438 in 1887AbstractThere is a definite system of manpower planning at corporate level in CCL in the new economic era. It is acombined effort of different departments dealing with manpower management in which service departmentplays the lead role. A scientific manpower planning has a definite result in increasing efficiency and higherproductivity. There is much difference of manpower planning and management in CCL in pre and postliberalization. The exercise of manpower was earlier done by the manpower planning using of personneldevelopment of the organization and it was observed that manpower development has more historicalreason and no serious thought has been paid to include other factors like production target etc. similarlyanalysis of development in various collieries of CCL reveals that for the production level and other similarconditions the number of workers varies considerably. Accordingly the manpower planning wing in theirreport suggested the manpower assessment for every 100 tons of underground productions 63.0 to 72.0miners / loaders are deployed. It is lamentable that in all subsidiaries of coal India including CCL manpower isreducing and as such the manpower will be below the requirement.-33-5to 119546 in 1909. In Bengal the privateenterprises had their hold over the coal fields.The government had direct control over thecoal mines. The government policy wasdetermined according to the needs of the stateRailways. The capital expenditure wasincurred by the government though on a smallscale on the working of the mines. Thegovernment participation made the working of6the mines more efficient.The Warora mine was opened in 1871,capital outlay in 1871 amounted to Rs. 51183,the total capital outlay expended upto 18997was about 18 lakhs. The output of the collieryrose from 60,000 tones in 1881 to 155,3368tones in 1902. Though the coal industry hadmade much progress its development was inthe initial stage. W. R. Dustan of the imperialinstitute gave some excellent report on theIndian coal industry and highlighted scope forthe further development of the industry. Dustannoted that “only small proportion of total knowncoal ore was being worked”, the industry was‘hardly out of its infancy’ the Indian output was9about 1/35th of that of Great Britain. Foreigncapital dominated the coal industry, a10beneficiary of government spending.The Railway collieries were transferred to

the coal board in the year 1944. After the Indianindependence i.e. 1947, a great need for coalproduction was felt in the First Five Year Plan.In 1951 a working party for the coal industrywas setup, which suggested for theamalgamation of small and fragmentedproducing units. In the pre – nationalized eracoal mining was controlled by private owners,and suffered from their lack of interest inscientific methods, unhealthy mining practicesand sole motive of profiteering. The minerslived in sub – standard conditions as well. In1956 the National Coal Development11Corporation (NCDC) was formed with staterailway collieries with task of exploring newcoal fields and expediting development of newcoal mines.11 After nationalization of non -coking coal sector in 1973 NCDC became theCentral Division of Coal Mines Authority Ltd.(CAML). Again in 1975 with recognition ofCAML as Coal India Ltd, Central Division ofCAML was known as Central Coalfields Ltd.12(CCL). CCL is one of the four coal producingsubsidiaries of Coal India Ltd. (CIL) which wasformed in 1975 as a holding company. It islocated with its registered office at DarbhangaHouse, Ranchi. The Indian energy sector islargely dependent on coal as the prime sourceof energy and coal is the most abundant fossilfuel in our country which is the valuable gift ofnature.At present CCL has 11 area, 65 mines (26UG and 29 O/C), 7 washry (4 medium cokingcoal and three non - coking coal),1centralworkshop and 5 regional workshopsand 2 central hospitals spread over 26 hundredsquare kilometers of Ranchi, Hazaribagh,Giridih, Bokaro, Chatra and Palamau havingcoal reserves of 33.562 billion tones (mediumcoking coal 14.023 billion tones and non –13coking coal 19.359 billion tones). Coal meetsnearly 68 percent of total commercial energyrequirements of the country. The coalproduction of India currently is around 250million tones which meet about 98 percent ofcoal needs of the country. Nature hasbestowed India sufficiently with large reservesof coal 200 billion tones according to presentestimate which will last for coming 280 years atthe current rate of consumption.-34-Materials and MethodsManpower planning and management inCCL in new economic era is an important topicfor discussion. The author has attempted toprepare this research article with the help ofhuge materials collected from various sources– both primary and secondary. Journals,periodicals and bulletins of CCL constitute themine of information. Besides, the reportspublished from CCL also serve the purpose ofsource material. Books of reputed authors bothindigenous and foreign have been used assecondary source to write this research article.The news papers and interviews have alsobeen judiciously utilized.Results and DiscussionsCCL is the major employer in the nationhaving manpower of 70651 (35% belonging toSC/ST). the company is also providing directemployment to over 2 Lakh people in a year inloading, transportation, civil construction,small industry, coke ovens manufacturingagencies, ancillaries etc. it was elevated with14Nav-Ratna status in 2008 and is expected tobe elevated with Maha-Ratna status shortly.The company is managed by a board ofdirectors and is headed by the Chairman – cum– Managing Director (CMD), assisted by agroup of staff officers looking after differentdepartments. The functional Directorscomprise of Director (personnel), Director(finance), Director (technical), Director (projectand planning) and Director (technical andoperation).In the new economic era the liberalizationand globalization process, which has comeover the Indian economy in the last 20 years,has given birth to a fair number of enterpriseswhich hope to gain legitimacy and foster rapidgrowth, by setting up a Human Resource15Department. Thus the role of the manpowerplanning and management in new economicera has become the most important in CCL too.Modern organizational setting is characterizedby constant changing relations to environmentalfactors and human resource or manpowerplanning. The competitive force that is facedtoday will continue to be faced in futuredemand organizational excellence. The timeshave changed and the role of manpower alsoneeds a change. It is human resource’sAnusandhanika / Vol. III / No. I / January 2011

esponsibility to lead the organization intapping the remaining sources. In today’sglobal economy every one can have the latest16information technology.During 1990s a new human resourcemanagement has emerged specially as aresult of globalization and liberalization. Theeconomy and policy of India are fast changingin the wake of new economic era. Todayamong all the resources of production likemen, material, money and motive power, themost important ‘M’ is for men or humanSl.No.Table – Iresource. Manpower is essential to put theplans of the organizations into action. Planningis significant as it helps determine future17personnel needs.In CCL manpower inventory is a recordwhich indicates the existing strength / positionof human resources segregating into differenttypes / standard / trade / grade wise onparticular date. It is prepared at project / unitlevel. The table given below indicates thesanctioned existing and proposed group wise18manpower in CCL.Particulars Sanctioned Existing Proposed1 Executive 3557 3257 35432 MR 20060 18200 205083 Daily Rated 48872 47698 500234 Piece Rated - 21652 147875 Casual - 434 -6 CMWO - -7 Trainers - 274 -Manpower budget is equally important asother budget like the cost / finance budget,material budget etc. Manpower budget is an adhoc manpower forecast for the ensuing year toascertain the additional, total requirement andmode of filling with clearly identifying thesurplus hand. It is based on productionprogram and different activity/jobs so as to19achieve higher level productivity.Table – IIThe comparative figure of executive and non-executive in CCL for20different years are as follows.Year1992-93 1993-94 1994-95 1995-96 1996-97 1997-98Executive 2991 3095 3265 3333 3313 3543Non - executive 95841 93895 92411 91079 98503 85310The manpower planning and managementin CCL in new economic era has been criticallyanalyzed by adopting the following processes:- i. visit of mine, ii. Discussion with minemanagement, iii. Collection of data, iv. Jobnomenclature, v. fixation of quantum of work,vi. A total time determination, vii. Net availabletime determination, viii. Manpower method ofworking etc.There is a need to strengthen the traininginstitute of CCL so that a large number ofpersons who are capable of being absorbed indiversified jobs could be trained. Those mineswhich have a very poor should either be closedor merged with other mines to improveproductivity. Similar rational approach foroptimal utilization of the manpower force maybe extended to the other mines of organizationfor improving the production by adjusting thesurpluses to the shortages.-35-Anusandhanika / Vol. III / No. I / January 2011

ConclusionManpower planning and management inCCL in new economic era has become animportant tool of finance, production, plant andequipment, sales and dispatches etc.Manpower is needed in CCL in order to identifyareas of surplus personnel or areas in whichthere is shortage of personnel. It is needed tostrike a balance between a manpower demandand supply, to increase production andproductivity to achieve the corporateobjectives in CCL. No appointment in thecompany has been made since 1972, nosupervisor nor technicians have beenappointed science 1989. Though in the lastfinancial year 32 appointments against thepost of over man, 13 against the post of minerswere made in CCL but no appointment ofsurveyors was made. At present only 633 overman, 667 miners and 64 surveyors are workingin the company. Manpower of 1641 related tosecurity are needed to be appointed in CCL.On the whole in CIL the post of 15000manpower in the security department is lyingvacant. This is also a fact that by year 2014 –15 about 90 percent of miners will retire and assuch the manpower will be below therequirements.References1. Sen S. K., An Economic History of ModernIndia, Burdhan Press, Calcutta, 1984, pp.68 – 692. Ibid3. Banarjee H., The House of Tagore, p 114. O’Malley S.S., Bengal District Gazetteers,Howrah, Government Press, Calcutta,1972, p 1085. Dutta Romesh, The economic History ofIndia under early British Rule, vol. –II,London, 1905, p 287, see also Evidencein the House of Commons, Report of 1830-31, Digest6. Note on the production and consumptionof coal in India, C. D. Industrial,December, 19107. Ibid8. See the return9. Report of R. Words Rathi, 1899 – 1900,C.D. Coal and Iron, Oct. 190010. Annual Report of the colliery of C.C.L.200011. CCL Annual Report, 200012. Ibid13. Ibid14. Ibid15. Mahapatro B.B., Human ResourceManagement, New Age InternationalPublishers, New Delhi, 2010, pp 398 – 9916. Ibid17. CCL Annual Report, 200018. Ibid19. Ibid20. Ibid-36-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 37-42ISSN 0974 - 200XOperating an efficient and sustainable agriculturemarket information system: The FAO strategiesKeywords: Agriculture Market, Information System, FAOIntroductionAccording to the Food and AgricultureOrganisation (FAO) of the United Nations, theMarketing Information Service for Agricultureis:“A service, usually operated by the publicsector, which involves the collection on aregular basis of information on prices and, insome cases, quantities of widely tradedagricultural products from rural assemblymarkets, wholesale and retail markets, asappropriate, and dissemination of thisinformation on a timely and regular basisthrough various media to farmers, traders,government officials, policy makers andothers, including consumers ”There are changeable names given toprocedures that broadly fit in with the abovedefinition. FAO has settled on the use of“Market Information Services” in order todistinguish “market” information from “marketing”information, the subsequent being a muchwider understanding which is likely to includedetails on possible market channels, paymentnecessities, packaging, quality and a wholeAshutosh MishraDepartment of ManagementBirla Institute of Technology, RanchiDr. G.C. SinghPG Department of EconomicsRanchi University, RanchiAbstractToday, in an increasingly complex marketplace, competitive advantage of any market player is dependent onthe quality of the market information it has, its utilization for decision making, and responsiveness to themarket. Thus, competitive pressure, the cost of making a mistake and the complexity of markets all contributethe need of information for any organization to sustain. The purpose of an efficient agriculture marketinformation system is to aid towards more intelligent production with the essential objective of achievingeffective distribution and fair pricing of farm produce both for producers and the consumers. With thisbackdrop, the paper aims to highlight the strategic aspects for an efficient and sustainable agriculture marketinformation system, as pointed out by FAO . The users and planners must be acquainted with the informationthat will help them make better decisions, how the data must be attained, how the data should be ordered, thefashion in which the data should to reported and the schema and the plan according to which the data shouldbe delivered.cluster of information required by a producer tomake a lucrative sale, including marketinformation.Concisely, agriculture market informationusually refers to market price information, andin some cases includes information onquantities. Whereas marketing information is abroader concept, including information onmarketing channels, buyers, quality standardsetc .Materials and MethodsThe research method used in the work isprimarily a Qualitative Research. Manyqualitative researchers, prefer the term“empirical materials” to the word ”data” sincemost qualitative data is non numeric. Thetechniques used here for the collection ofempirical materials are: Documents, Texts,Articles. It is realized that although a cleardistinction between data gathering and dataanalysis is commonly made in quantitativeresearch, such a distinction is problematic forthe qualitative research. Thus it is moreaccurate to speak of “modes of analysis” ratherthan “data analysis” in qualitative research.-37-

The mode of analysis here in this work islargely, the “written textual analysis”, used foranalyzing and interpreting the qualitative data.Results and DiscussionsStudies relating to market news frequentlyinclude surveys to discover where farmers getmarket news, how they use this informationand how it might be improved. Farmerstypically are found to have access to severaldifferent sources of short terms market newsinformation (Dodds and Marvin[1954] andGerald[1960]). Radio and to a lesser extent,television are important sources of marketnews(Bohlen and Beal[1967],Dodds andmarvin [1954], Guither[1970] and Purcell[1959]).Coverage of prices at local grain marketsis often inadequate. McCormick [1954] foundthat daily newspapers and information onbulletin boards were the dominant sources ofgrain market information as surveyed in 1950.Findings relating to how farmers usemarket news for decision making and decisionprocesses of farmers appear in numerousstudies. Bohlen and Beal[1967] and Doddsand Marvin[1954], for example reported thatradio market news was most helpful.Telephone calls to buyers, on the otherhand were the greatest help in deciding on thebuyer. Kohls and Gifford [1957] found thatnearly one half of the producers surveyedobtained price information from only onemarket prior to sale. Dodds and Marvin [1954]reported a nearly identical finding. P.L.Farris[1956] found that many producers probably didnot shop around though pay prices differed.Kohls and Gifford [1975] concluded thatproducers are more interested in trying to timethe sale properly than in ascertainingadvantage of different points of sale.Gerald[1960] found that Michigan producerssurveyed used market news more for after saleevaluation of the price received than fordeciding when or where to sell. It wasremarked that almost 40% of the producerssurveyed sold when cash was needed forexpenses and almost 50% sold when theythought that the market was right . Anannotated bibliography by Kroupa, Burnett andJohnson [1976] contains additional referenceson the use of market news and other types of-38-market information for decision making.In general, findings on the use of marketnews for decision making support a hypothesisthat farmers fail to use some marketinformation which is readily available to themand that factors other than purely economicconsiderations often dictate choice of markets.Advanced in various studies were thefollowing suggestions for increasing the valueto users of market of market news information1distributed by government agencies marketnews for local markets should be high (Mc2Cormick[1954]) reports of future prices shouldbe increased in areas where large scale cashgrain are important (Kroupa and Walker3[1974]) radio and television market newsbroadcasters should be better informed aboutagricultural markets to improve listener4interest and comprehension written marketnews reports should be presented in aninteresting and simple style to Increase5readership. Market news price reports shouldbe given for the full range of product gradesnormally marketed and not just for the top6grade. ways should be found to increasefarmer’s knowledge of terms used in mass7media market reports outlook informationcould be included with market news to providea comprehensive market information program8and more market news could be provided forconsumers.Due to the important role of prices inresource allocation and as a key variable in theagricultural market liberalization reforms, pricehas been a key and important variable inMarket information systems (Goetz et al.,1986). From the experience of marketinformation services in Mali, Mozambique,Zambia, Kenya and Malawi (Weber et.al 2005,Tollens 2005) six factors have beenconsidered necessary for successful MIS.These are: (1) Political commitment to servingboth public and private sector marketparticipants so that information is made freelyavailable to all participants, (2) Sustainablefunding mechanisms through cost recoverymechanisms such as membership andcommissions by users. National andinternational donor financial assistance isneeded but needs to be supported by costrecovery mechanisms; (3) Constant targeting,Anusandhanika / Vol. III / No. I / January 2011

eassessment of user needs, feedback fromusers and analysis to ensure that theinformation generated and disseminatedmeets the needs of the users; (4) Strong localcapacity to acquire and use marketinformation. This is because if the marketinformation generated were not used locally itwould be a waste of resources. (5) Stronghuman resources for managing and running aresults orientated MIS because if theinformation generated is not result oriented thesystem could end up generating informationwhich has no value; and lastly (6) an effectiveinstitution which could maintain and providetimely services. Various types of MIS (CTA,MISTOWA, RATES, RATIN, Foodnet) pilotedin Africa following advancements in the digitalcommunication systems such as radio, mobilephones, internet, and satellites, have tremendouslycontributed, to timely dissemination ofinformation (Tollens, 2005). MIS help infacilitating the interaction of private sectorbuyers and sellers in agricultural marketing(Weber et al., 2005). Questions howeveremerge as to how far MIS services should go interms of involvement in linking farmers tomarkets (Poulton 2006). Kenya AgricultureCommodity Exchange (KACE) and MalawiAgriculture Commodity Exchange (MACE)combine price information with tradefacilitation service (Tollens 2005). Tradefacilitation service involves linking farmers orsellers with buyers of agricultural commodities.Putting into place sustainable marketinformation systems to provide timelyinformation, which is, easily accessible toeveryone with information on marketrequirements, is not an easy task because oflack of mechanisms for users to pay for theservice (Weber et al., 2005). One feature ofMIS in sub-Saharan Africa is that no realimpact evaluation had been made, thus it hasbeen impossible to determine whether MISservices have contributed to improvedagricultural markets efficiency (Tollens 2005).In theory, though being very muchadvantageous, no MIS should be planned forexecution without evaluating and understandingthe possible obstructions that might come inthe acceptance of the new system. It is alwaysmarked, that changes have each time givenbirth to troubles and it is as well very muchclear that developing an efficient , relevant andsustainable MIS is not at all an easy job. Whilethe benefits of such services appearunarguable, the failure of many countries tomanage reliable, accurate and lasting servicesdefinetly requires closer examination.Obviously, problems with operating an MIS inagriculture are numerous. In the past,mistakes have undeniably been made insetting up an MIS, but they can definetly beavoided in the future.The strategies: As per the recommendationsof FAO of the UN, the concerned areas of themarketing system and information needs, thatare to be analysed at the commencement , foran efficient and sustainable MIS are :Suitable Organizational Arrangement:The most perfect organisational setting for anMIS will depend upon various factors and thattoo will vary from country to country and stateto state. If at all possible, the StatisticsDepartment of the Government, may beutilized as they generally tend to have in placea network of trained Data Collectors. But themajor problem that may arise in most casesare the lack of speed of collecting data which isnot suitable for daily price dissemination,commitment towards timeliness, lack ofresources for operating expenses and.Training etc. The solution is to have adedicated and specifically trained personneland obtain a commercial support for an MIS byattracting advertisements and sponsorshipsbesides Government finances to meet theoperating cost involved in data collection anddissemination.Ensuring Sustainability: It has beensurveyed that several Marketing InformationServices that has been established by aid orfundings, have later run into problems once thedonor or funding agency have left. Steadyrevenue generation through means likeinviting advertisements and sponsorship fromthe industry, needs to be attended. Theearnings from industries who are directly orindirectly associated with the agriculturalsector, can be the best solution to meet therecurrent expenses for this project and willprovide it with provisions.Analysing The Information Needs : Adetail survey of the marketing system should-39-Anusandhanika / Vol. III / No. I / January 2011

e performed in order to assess the exactinformation requirement of each category ofparticipant in the system. These involvesfarmers, traders and commission agents,exporters, retailers, consumers, extensionservices and Government departments. As perthe recommendations of FAO of the UN, theconcerned areas of the marketing system andinformation needs, that are to be attended toare:Products And Markets- More thereporting of market with useless data, the morelikely it is that an MIS will have anuncontainable amount of data to handle, staffwhose salaries need to be paid and whosetraining and monitoring need to be afforded.The most recommended idea should be tostart the MIS with information on prices in a fewwholesale market, progressively expanding toinclude other wholesale centers and assemblymarkets. It is better for the market informationservice to cover five produces well, than to tryto cover 50 produces and do so badly for all.Collection of Market Information- Marketinformation should ideally be gathered bypeople who both have the time available to dothe job perfectly and have the interest inensuring the success of the service. Price datacollectors should preferably be engaged fulltime on the job and they should havedeveloped a good relationships with thefarmers , traders and market officials. This isexpected to result in better quality datacollection than by unwilling employee, who issent to the market at intervals as an addedresponsibility. The role of data collectors,becomes very crucial for the success of theMIS and thus they should be dedicated ,sincere and intelligent enough to conveyaccurate information.Methods Of Collecting Price Data-Prices in the market can be gathered byinterviewing the market vendors, byinterviewing the buyers, or by observation oftransactions between the buyer and the seller.Put into practice, a blend of all three methods isneeded although, wherever possible, it isbetter for the data collector to observetransactions between the buyer and the seller.In this way the accurate price at which theproduce is traded is obtained without having to-40-rely on the recollections of the vendors or thebuyers and without independent checkingleading to errors.Frequency of Collecting Information-Particularly, information on grain marketsneeds to be collected less frequently than theinformation on perishables. Important thanensuring data collection during the peaktrading period is to have the data collection atthe same time everyday in order to haveuniformity to permit assessment from day today. Thus a collection time must be adhered toand the MIS needs to arrange for closeadministration of data collectors to ensure thatthis is done.Product Varieties- For efficient MIS, it isalso needed to be decided on the varietieswhich are to be reported on because in manycases there will be noteworthy differencesbetween prices for different varieties of samecrops. If resources and other concerns limit thenumber of crops that can be reported on, then itis very much required to select the mostimportant varieties of each product.Product Quality- In any of the market, anextensive range of quality of a particularproduct is likely to be available at one time, andthe prices for different qualities could very wellvary widely. MIS should aim to collect anddisseminate prices for produce of fair standardquality or quality most in demand.Weights And Measures- It is a generalproblem that the marketing system do not usestandard weights expressed in terms ofKilograms. Farmers sell and traders trade bythe bag, carton, box, bundle or tin. Under thiscondition, the provision of accurate andmeaningful market information can be veryrisky. Where the farmers and traders fullyunderstand units of weight then it should befeasible to disseminate information aboutprices on a per kilogram basis or else withreference to the standard trading measure.Quantity, Stocks and Other Information-Quantity information can help farmers andtraders to make informed estimation aboutlikely trend in prices. The main difficulty here isthat such information can be time consumingto obtain and accuracy can almost beimpossible to accomplish. The method usuallyadopted is therefore for the data collector toAnusandhanika / Vol. III / No. I / January 2011

give an indication of the relative volumes of thedifferent commodities, using terms such as:“limited quantities available, market undersupplied.”“very good quantities available.”“market over supplied, more sellers thanbuyers.”“poor supplies.”Data Accuracy- Data accuracy is a majorarea of significance and concern for anefficient MIS. Extensive consideration needsto be paid to make sure that the data collectorsare fully trained in price and data collectionmethods with proper format and instructions.Proper arrangements are also to be made formonitoring and prompt transmission of datafrom collectors to processors and on to theusers.Data Transmission and Processing-Delays in transmitting, processing anddisseminating price data can undermine thereliability of an MIS. Out of date marketinformation is of little significance to marketparticipants. With sophisticated communicationsystem and basic equipments like computer,internet, fax etc in place, problem can becountered. The system should be designed insuch a manner that generation of daily, weeklyand monthly reports with meaningfulassessment between different time periodsand markets are perfect. Problems with thesecurity of data also need suitableconsideration and appropriate data securitytechniques should be used to preventunauthorized access and manipulations.Dissemination- Substantial attentionneeds to paid to the way in which the data isdisseminated. So that the reach is maximum.Price information should go together withsome analysis of market situation andopportunities. The service should be precededwith guidelines to the farmers in order tointerpret the offered information.Language- Information should bepresented so as to be commonly understood .The layout and comprehension is important tofocus but most importantly the medium ofdissemination should be in the language whichpeople can comprehend and to solve this-41-problem, a multilingual translation servershould be considered. The first step is todevelop a multilingual dictionary of agriculturalterminology and a multilingual thesaurus. Thesecond step is to combine the thesaurus with aweb-based automated translator .Utilization Of Data - This indicates thatconsiderable care needs to be taken to makesure that the type of price information providedis that which the user finds most valuable.Utilization of MIS information by farmers canbe improved if data collectors are in a positionto advice them on how to interpret the pricesand seasonal price trends. Information likequantities available at the market or in majorproducing areas, supply-demand movementand problems with transport etc should be thepart of MIS. It must be established that properutilization of data ensures the success of anyMIS.Suitable Technology: The proposed MISshould always use the technology that bestsuits the local constraints and feasibility.Infrastructure requirements like power andcommunication services besides the financialaspect should be evaluated and accordingly asustainable system should be considered. Theintended technology should be a suitableblend in terms of the objective and workable interms of technology.Interferences In Acceptance : It is truethat MIS can augment the bargaining power offarmers and it follows in this aspect that ,atleast MIS can lead to a cut in tradersmargins. As a consequence traders may resistan MIS which will result in their financial losses.Further, large traders may be against an MISbecause they have invested in obtaining theirown information and an MIS will reduce theircompetitive position in relation to small traders.Setting up the MIS thus needs to have its ownbenefits shared and communicated properly inorder to have its acceptance without anyresistance.ConclusionWhile the benefits of an efficient marketinformation system for agriculture isunarguable, the failure of many countries tomanage reliable, accurate and lasting servicesdefinetly requires closer examination. As perthe recommendations of FAO of the UN, theAnusandhanika / Vol. III / No. I / January 2011

concerned areas of the marketing system andinformation needs, that are to be analysed atthe commencement , for an efficient andsustainable MIS are : Suitable OrganizationalArrangement, Ensuring Sustainability,Analysing The Information Needs : Productsand Markets. Collection of market information-Methods of collecting price data- Frequency ofcollecting information- Product varieties-Product Quality- Weights and Measures-Quantity, Stocks and other information- Dataaccuracy- Data transmission and processing-Dissemination- Language- Utilization ofData.,suitable Technology, Interferences InAcceptance etc.References1. Asaba J.F, Bridging the Information andKnowledge Gap between Urban and RuralCommunities through Rural KnowledgeCentres: Case Studies from Kenya andUganda, IAALD Quarterly Bulletin, 2006,pp 143-1512. Besemer H. and Addison C., Coherence inAgricultural Information, Report of anexpert workshop, Lexington, USA, 20053. Bonnen J.T., Improving Information onAgriculture and Rural Life, AmericanJournal of Agricultural Economics, 1975,pp 753-634. Chisenga J., Keizer J., Rudgard S.,Onyancha I. and Zwart R.P., FAO’sCapacity Building Initiatives in Accessing,Documenting, Communicating, andManaging Agricultural Information. IAALDQuarterly Bulletin 51(3/4), 2006, pp 170-1765. FAO, A new direction for FAO's informationservices”, Food and AgricultureOrganization of the United Nations, 19986. www.ilo.org7. www.fao.org8. www.faostat.fao.org-42-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 43-45ISSN 0974 - 200XRubber plantation: A source of multipleincomes for rural people in TripuraSukanta SarkarLecturer, Department of EconomicsICFAI University Tripura, Agartala, North East IndiaKeywords: Employment, Intercropping, Latex, Poverty & Rubber sheetIntroductionThe state of Tripura is located in theextreme southwest of the North Eastern regionof India with a geographical area of 10,492 sq.km. Rubber was introduced in Tripura in 1963by the Forest Department. Further expansionof rubber cultivation in the state was assignedto Tripura Forest Development PlantationCorporation (TFDPC) in 1976. Laying specialemphasis for the rehabilitation of the tribals,Tripura Rehabilitation Plantation Corporation(TRPC) was established in 1983. With 35760ha. under rubber, Tripura is the second biggestrubber growing state in the country, next only to1kerala.Rubber has now become the mostaccepted and commercially viable crop inTripura. Apart from its commercial value,rubber planting has been recognized as a keyeconomic activity around which the rehabilitationprojects for ‘shifting cultivators’ has been setup. Rubber based welfare programmes inTripura are well acclaimed as an exceptionalexample towards upgradation the livingstandard of the tribals. The monthly income ofthe growers rises from Rs. 200/- to 2000/-when they start tapping the trees. Consideringthe multiple benefits of rubber, such asgeneration of employment and income, andprovided a tree cover for the denuded land, thestate government is giving great importance torubber development schemes.AbstractThe study makes an attempt to assess the different sources of income from rubber plantation. The resultindicates that rubber plantation shows various sources of income for rural people. It is evident from the studythat rubber production in Tripura is expanding speedily. Farmers can earn from both immature plantation andmature plantation. Intercropping is the main source of income from immature plantation and rubber sheetfrom the mature plantation. Rubber plantation provides large employment opportunities for rural people.Thus, the paper suggests that rubber plantation is the probable instrument for solving unemployment andpoverty problems in rural areas.-43-The basic objectives of this paper are toreview the possibility of various kinds ofincomes from rubber plantation.Materials and MethodsThis study is mainly based on the use ofavailable literature in the form of books,journals, reports etc. The approach followed inthis paper is purely textual. The materials usedhave at times been drawn from the website andextreme care has been taken to be objective inapproach.Results and DiscussionsRubber plantation can be divided into twotypes, mature plantation and immatureplantation. Those rubber gardens whose ageis more than six years than that garden iscalled as mature garden. People can getincome from both types of plantation. Fromimmature rubber plantation people can getincome through intercropping. During the initialyears of a plantation when the interspacesreceive plenty of sunlight, a variety ofintercrops can be cultivated. The mostcommon intercrops are listed below,1. Pineapple : Pineapple can be grown asintercrop during the initial four years. Twoor three rows of pineapple suckers areplanted along the interrows in trenchesduring the year of planting of rubber. InNorth-eastern states the cultivar ‘Queen’is popular Rubber was spaced 2 x 8 or 2.5

x 10 m, whereas intercropping spacing forpineapple was 0.5 x 0.7 x 1.0 or 0.4 x 0.5 x0.8 m and in this intercropping system,rubber and pineapple each took half of thetotal area. Some pineapples wereharvested from the second year afterplanting. The yield increased graduallyyear after year and reached its peak at theage of four to five years.2. Vegetables: Many vegetables likecowpea, cucumber, ladies finger,amarsnthus etc. can be grown during theinitial 2-3 years with proper addition oforganic manures.3. Medicinal Plants: Some shade tolerantmedicinal plants can be grown in rubberplantations. Strobilanthus haenianus,Adhatoda vasica and Plumbago rosea are2found suitable for this.4. Lemongrass: Lemongrass plant cannotgrow well under shade. It was planted atthe same time as rubber trees with aspacing of 0.8 x 1.0 or 0.5 x 0.7 in betweenrows of rubber trees; and harvested five orsix months after planting, then once everyfour or five months. Each time 10 - 15tons/ha of fresh leaves were collected andturned into 100 - 150 kg of citronella oil.5. Banana: Non ratoon types like Nendranare suitable as intercrops during the initialtwo years. During the first year 1200plants/ha can be grown in a double rowsystem at 2 x 2 m spacing in rectangularsystem of planting. In the North-Easternstates cultivars like ‘Sabri’ and ‘Champa’which are ratoon type are popular.Spacing for the former was 2 x 8 or 2 x 10m, the latter 2 x 2 m. Tending, irrigatingand fertilising were carried out to promote3their growth.6. Sugarcane: Sugarcane is usually plantedbetween rows of rubber trees with aspacing of 0.3 x 0.8 m. Once planted, thesugarcane can be harvested three or fourtimes.7. Coffee: Coffee can be interplantedbetween rubber trees before or afterrubber tapping with a spacing of 1.5 x 1.5or 1 x 2 m. The best area ratio between-44-coffee and rubber is 30% and 70%. Threeyears after planting, coffee was harvestedand the yield increased gradually for threeor four years until it reached its maximum.8. Tea: Rubber and tea trees are usuallyplanted at the same time. but either ofthem can be planted one or two years afterthe other. Because tea plant can toleratesome shade between rows of rubber treesand can coexist harmoniously for a longtime. Rubber trees were spaced at 2 x 12or 2 x 15 in whereas intercropping spacingfor tea trees was 0.4 x 0.6 or 0.4 x 0.5 x 1.0m. In addition, 1.5 - 2 m of space alongeach side of rubber trees was kept for theconvenience of tending, fertilising andrubber tapping. Tea was collected threeyears after planting, and its yieldincreased gradually year after year, untilits peak at six or seven years.9. Ginger and turmeric: Since throughdigging of the soil is required for thecultivation of these crops they may begrown only on level and near lands. Heavyapplication of cattle manure or compostand organic mulches are important. They4may be grown for the initial two years.10. Agar plantation: Rubber farmer beneficiaryunder Tripura Rehabilitation PlantationCorporation (TRPC) are motivated toraise agar plantation as shelterbelt forrubber plantation.11. Bamboo Plantation: Bamboo is raised inpure plantations in the land of tribalbeneficiaries and as one of the speciesmix in shelter belt of the new rubberplantations with financial assistance fromTripura Bamboo Mission since 2008-09.From mature plantation people can earnincome from various ways: latex, rubber sheet,branches of trees, rubber wood, rubber seed,rubber honey, rubberized bitumen, biogas etc.1. Latex: Hevea latex in the latex vessels oftapped trees contains 30-40% rubber inthe form of parties. Latex is a hydrosol inwhich the dispersed particles areprotected by a complex film. Farmer candirectly sell latex in processing centre andcan earn money.Anusandhanika / Vol. III / No. I / January 2011

2. Rubber Sheet: Latex is coagulated insuitable containers into thin slabs ofcoagulum and sheeted through a set ofsmooth rollers followed by a grooved set,and dried to obtain sheet rubber.Depending upon the drying method, sheetrubbers are classified into two, ribbedsmoked sheets and air dried sheets. Drysmoked rubber sheets are sold by theproducer in the market.3. Fire wood: Branches of rubber trees canbe used as firewood for domestic purposeand farmers can earn money by sellingthose in market.4. Rubber Wood: The TFDPC has set up alaboratory for testing rubber wood and itsproducts at Anandanagar, near Agartala.Various furniture are produced by usingrubber woods. Objective of setting up thelaboratory is to make available the testingfacilities to the processors, consumers,researchers and decision and policymakers to evaluate the suitability ofrubber wood for various applications andto improve the quality and acceptability ofrubber wood in the domestic as well as in5the international market.5. Rubber Seed: Rubber seed is a minorsource of non-edible oil. Seed productionis not stable every year. The availabilitywill be more if there is no continuous andheavy rain and severe attack ofphytophthora disease.6. Rubber Honey: Rubber tree is a richsource of nectar. It is found at the extrafloralnectar glands at the end of thepetiole where the leaflets join. About 15hives can be placed in a hectare of rubber.About 10 kg of honey is obtained from onehive. Honey is a saturated solution ofsugar. Rubber honey contains mainlyglucose and fructose that are easilydigestible. The sucrose content is less, sohoney does not have the bad effects ofcane sugar. Proteins and all essential6amino acids are present in the honey.7. Rubberized Bitumen: Flexible pavementswith bituminous surfacing are widelyused. However, high traffic intensity andover-loading of vehicles may lead todistress symptoms like undulations,rutting, cracking, deformations and potholing.The wide variation in temperaturecould also affect road surfacing. Thepavements tend to become soft insummer and brittle in winter. This maylead to bleeding and cracking. Theproperties of the bituminous mixture canbe improved by the incorporation ofmodifiers.8. Biogas: Biogas can be produced by usingthe water of latex which is left afterproduction of rubber sheet.ConclusionAmong the rubber producing states,Tripura occupies the second position afterKerala. In Tripura, there are many governmentagencies (like TRPC, TFDPC, Rubber Board)working for the development of rubberplantation. People can earn from both matureand immature plantation. From matureplantation people can get income from variousthings like latex, rubber sheet, rubber wood,rubber honey, biogas, firewood etc.Intercropping between rubber with variousvegetable or fruits is the main source ofincome. Rubber plantation is the tool whichgovernment used to rehabilitate the rural poor.Therefore, it is useful for creating employmentopportunities in rural areas.References1. Bhattacharya Suchintya, From Jhumingto Tapping, Directorate of Research,Govt. of Tripura, Agarlata, 1992, pp 72-732. Sathees Chandran Nair M.G. & SatheeshKumar K.G. (Ed), Rubber GrowersCompanion, 2009, Rubber Board,Kottayam, p 333. Ibid., p 324. Ibid., p.335. Ibid., p.1026. Ibid., 103-45-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 46-50ISSN 0974 - 200XIntegrated Water Resources Development andManagement - Its StrategiesKeywords: Water Resources, NWP, Drinking Water, Agro- Industries, IrrigationIntroductionThe variety of benefits that can be derivedfrom a water resources system is dependentupon its overall management. Any watersystem does not stand alone but is an integralpart of its surrounding. The best utilisation ofwaters of a basin cannot be ensured throughseparate individual decisions, specially whenwater is scare compared to the need of thesociety. Only a system of unified basinmanagement can co-ordinate the differentpossible uses of the water and direct the waterto the most beneficial use. Our National WaterPolicy, therefore rightly recognizes river basinas the basic unit for water resources planningand management. The policy further lays downthat all individual developmental projects andproposals should be formulated andconsidered within the framework of such anoverall plan, keeping in view the existingagreements/awards for a basin or a sub-basic,so that the best possible combination ofoptions .can be selected and sustained. TheDr. Vijay PrakashFaculty of CommerceG.C Jain Commerce CollegeChaibasa, JharkhandDr. Mahadeo PrasadFaculty of CommerceG.C Jain Commerce CollegeChaibasa, JharkhandAbstractWater is one of the most important natural resources and is a key element in the economic development of acountry. When properly developed it can substantially augment food and water supplies, improve transport,provide energy and develop industries. The demand for water is continuously increasing due to populationgrowth and development in industrial and agricultural sectors. It has been estimated that the total waterrequirement of India, by the year 2050 would become between 1220 to 1680 BCM which would be much inexcess of total utilizable average water resources of 1086 BCM. The available surface and ground waterresources are inadequate to meet all the water requirements for all purpose. So the demand for water hasincreased over the year. The interpretation of satellite data in conjunction with sufficient ground truthinformation makes it possible to identify and outline various ground features such as geological structures,geomorphic features and their hydraulic character that may serve as direct or indirect indicators of thepresence of ground and surface water.various aspect of river basin development andthe systematic planning process are beingdiscussed here and certain vital issues ofintegrated development highlightened.The important factors in the developmentof water resources are its availablility itspresent and future needs, and its relationshipwith other resources that are integral part ofany overall planning. The purpose of preparingriver basin plans for development of waterresources may be enumerated as follows :i) To prepare a long term perspective riverbasin master plan for the development ofwater resources.ii)iii)To develop a comprehensive andintegrated approach to the developmentof water and other natural resources,using water with due regard to constraintsimposed by configuration of wateravailability.To identify and set priorities for promotingwater resources development projects.-46-

iv)To formulate a short term action plan,consistent with the financial allocationsand priorities of Government action plans.v) To contribute towards the formulation of along term national master plan for waterresources development.The plan must maximise the use ofavailable natural resources. It should notpreclude the future utilization of potentialswithin the basin. It should also enhance theenvironmental conditions within the basin. Theprocess of planning is carried out in severaldistinctive phases and in a sequential mannerin order to realize optimal utilisation of theresources for the long term benefit of thepeople of the region. These phases are :-(i)(ii)Objectives and Framework for Evaluation.Inventory of Conditions and Resources(iii) Needs and Potential for Development(iv) Analysis of Existing System(v)Identification of Plan Elements(vi) Formulation and Analysis of FullDevelopment Alternatives(vii) Multi-objective Evaluation and Planselection(viii) Implementation, Monitoring and OngoingPlanning.Materials and MethodsFor the purpose of in depth study thecontents have been taken from relevant booksand articles from Journals. The approachfollowed in this paper is purely based onsecondary data. The materials used have attimes been drawn from the website andextreme case has been taken to be objective inapproach.Results and DiscussionsThe various objectives relevant in thedevelopment of the basin are fixed during thisphase which provides the direction needed toguide the planning process. It is a well knownfact that all development works are aimed atincreasing the welfare of the society. While thisis the major goal to be achieved, workingobjectives have to be set down for the studies.Thus there is a need to identify the problems-47-facing the basin in order to select theobjectives for integrated river basin plan. Ifimproving the quality of life of the society is theprimary objective, one can think of a number ofsub objectives to achieve this primaryobjective. Various plans can than bedeveloped to emphasize these sub objectives.Finally a single plan can be developedsynthesizing the different plans for thefulfillment of the primary objective. Some of theprobable sub objectives are discussed below :-Provide water for domestic demand - Thisis the most important sub objective forimproving the quality of life. There should bedrinking water available throughout the yearand throughout the basin. It should beeconomical and of good quality. It should takeinto consideration the growing human andlivestock population in urban and rural. areasand should also cover the commercial andindustrial centres. A well planned water supplysystem will certainly improve public healthconditions and provide safety against waterborne diseases.Maximize food production - With thepopulation growth, the demand for farmproduce increases. Moreover, there are deficitregions elsewhere in the country demandingfood produces. Both area under productionand productivity in the basin should bemaximized for improving the quality of life,keeping in view the socio-economic and otherconstraints.Maximize return to labour - For this,integrated use of surface and ground watershould be attempted. The allocation of thesetwo, judiciously, can help in maximization ofreturn to labour and capital and ensure wellbeing of the population of the basin, especiallyengaged in the field of agriculture.Maximize energy production - If there isample scope for generation of hydel power inthe basin, its full development can helpincrease the quality of life. Possibilities ofinstalling mini, micro and small units for powergeneration, alongwith major projects shouldalways be explored.Improve the environmental conditions -While increasing the area under cultivation,Anusandhanika / Vol. III / No. I / January 2011

there is a need to preserve the available forestwithout denudation. Also the watershedmanagement needs to be extensively carriedout in order to minimize soil erosion. Theproblem of water pollution, water logging,salinity and floods in the basin requiringmanagement measures should also beaddressed suitably in order the improve thequality of life of the population.Framework for EvaluationOnce the objectives are fixed, thealternative plans are formulated fordevelopment, giving emphasis to eachobjective, one at a time. An unplannedalternative is also formulated which provides abenchmark plan for comparison. All thealternative plans are then evaluated. Theframework for evaluation is mainly dictated bythe guidelines in the National Water Policy.The National Water Policy lays topmostpriority to drinking water. Attempt is thereforemade to improve the supply of domestic waterto the fullest extent, possible in terms of qualityand reliability. Other purposes such asirrigation hydro-power, ecology, agro-industries,non-agricultural industries, navigation,recreation etc. are considered as and whereopportunities exist, however, their prioritiescould be modified as warranted by the regionspecific considerations. The most importantbenefit other than drinking water is irrigation.The benefits and costs in irrigated agricultureis expressed in monetary terms and constitutean important factor in plan evaluation. Nonmonetary factors are carefully identified andexpressed in. suitable format for consideration.The possible evaluation criterion with varyingimportance co-efficient may include safety,groundwater development, economicdevelopment, local participation, water quality,water conservation, flood control, erosioncontrol and drought management.Inventory of Conditions and ResourcesDuring this phase the relevant datarequired for planning is collected andorganized for easy retrieval. The collected datacover existing demography, topography,hydrology, geology, groundwater, floods, waterquality, water supply, nutritional supply,-48-environmental conditions, social and culturalinformation on agricultural conditions, existingpower systems, existing water resourcesdevelopments and a variety of other topics. Alldata necessary to determine the existingcondition and to project the future potential arecollected. The level of details of the collecteddata, however, will depend upon the level ofdetail required. Excess collection of datashould be avoided.Identification of Needs & Potential forDevelopmentDuring this phase of planning, the needsof the basin for different scenario of theplanning horizon are analysed. The potentialavailable for development to meet suchdemands are also analysed. This may includenew storage sites, watershed developmentprogrammes, augmentation of groundwaterand water harvesting, water recycling andreuse, interbasin transfer of water, etc. Whatshould be considered as legitimate requirementof water in the basin and which basin shouldreceive priority in allocation of surplus waterneed through deliberations. A variety ofengineering disciplines, besides social andnatural sciences are used in this process. Thedemand forecasts are made on the basis ofpopulation studies arriving at future need,future potential and future opportunities fordevelopment. Existing and future land use arealso analysed. The regional requirements forwater supply and water needs are defined.-Within the basin, the site specific studies areperformed based upon available resourcesand the forecast needs.Anaylysis of Existing SystemThe existing system forms the commonbase for all the development alternatives. It isthe scenario at the beginning of the planninghorizon and should be used as a bench markfor the evaluation of the alternative basindevelopment plans. This existing system isgenerally simplified into a networks of nodesand links. Such a representation helps inapplying the systems analysis techniques andcarrying out optimization and simulationstudies.Anusandhanika / Vol. III / No. I / January 2011

Identification of Plan ElementsOnce the existing system is analysed theplan element are identified. The plan elementsare the structural and non structural measuresrequired for addressing different objectives.This may give rise to different plannedalternatives, each giving emphasis to one ofthe desired objectives. The three possiblealternatives, could be :a) Economic Development alternative formaximizing economic returnsb) Foodgrain Production alternative formaximizing foodgrain outputc) Employment Generation alternative toencourage employment in the basin.Creativity and ingenuity is necessary toarrive at an implementable basin plan. Thewater storage sites, canals, irrigated areas,cropping pattern etc are all plan elements,forming either a supply node or a demandnode. These are integrated with the link andnode diagram of the existing system. To makethe process simpler the possible dam sites,diversion structures, irrigated areas, waterneeds etc for different plan scenario during theplanning horizon should be first tabulated andthen incorporating in the alternate plans.Environmental characteristics must beconsidered in the preparation of alternatives.The economics related to each alternativemust be evaluated. This is specially importantwhile including high capital intensivetechnologies like rehabilitation of old projects,land leveling and scientific preparation offields, canal automation, treatment ofmunicipal and industrial effluents and theirrecycling etc. The ability of preserve futureoptions within the plan and maintenance offlexibility of the plan are critical elements in theformulation of plan alternatives.Formulation and Analysis of FullDevelopment AlternativesIt was earlier mentioned that the identifiedplan elements are combined into systems andsub systems to form components of the plans.Making use of these components, alternateplans, giving emphasis to different objectives,are formulated. The alternatives formulatedneeds to be tested to determine their ability tosatisfy the needs, set objectives and ultimategoal. This step of evaluation of alternatives isan iterative process in combination with theformulation step. Each alternative must beevaluated with respect to the evaluationcriterion originally identified. Included in theevaluation of alternatives, is the economiccomparison made among themselves and alsowith the unplanned alternative. The unplannedalternative serves as a basis of comparison todetermine which of the evaluated alternativescome close to and satisfy the overall objective.In addition to the quantitative evaluation,qualitative evaluation regarding environmentaland other subjective issues are also made.Multi Objecttve Evaluation and PlanSelectionDuring this phase the advantages anddisadvantages related to alternative plansshould be presented before media, Commissionor Boards. This will enable representatives ofthe public to judge the plan, keeping in view thepublic sentiments. This should be done toinvolve public participation and for the socialacceptability of the development envisaged.After discussion trade offs will have to becarried out to cater for the public and legislativeacceptability and then only the optimal planamong the various alternatives selected. Thisplan can then be documented as the preferredplan to guide for future growth of the riverbasin.Implementation, Monitoring and OngoingPlanningOnce the plan is finalised, it isimplemented. The important activities for theimplementation may includes.a) Organisation set up for implementation ofprojects and plansb) Procurement of adequate funds, conductingfinancial analysis and procuringnecessary sanctionsc) Preparation of engineering designs,estimates, specification, awardingcontracts, engineering supervision, landacquisition, worker training and otherservices-49-Anusandhanika / Vol. III / No. I / January 2011

d) Monitoring, review of constructionschedule.While the plan is implemented new databecome available and conditions also dochange, necessitating updating of plan to suitthe changed conditions. The basindevelopment plan should therefore bereviewed and updated at least every five yearsor so.ConclusionThe earlier concept of project by projectdevelopment is now losing relevance due tothe temporal and spatial variation in theavailability of water. The efficient utilisation ofwater resources calls for a holistic approach toplanning, development and managementwithin the prescient of natural hydrologicalboundaries. The water resources developmentshould not only aim at beneficial use of waterbut also at achieving it in a manner compatiblewith social economic and environmentalinterests. The integrated river basin planningand management helps in understandingresources system as a whole with emphasis onthe inter actions and inter dependenciesamong its part. It provides a broad view ofobjectives and criteria by which the alternativeplan can be evaluated and provides aframework to guide specific actions. It offerssystematic and effective ways to deal withcomplexities making use of multiobjectivedecision making process. Integrated waterresources development with river basin as aplanning unit has been recognized andpropagated all over the world. So far it hasachieved only partial success, but the ongoingexchange of experiences between differentriver basin organisations will certainly lead tomany success stories in near future.References1. http://www.waterencyclopedia.com/Hy-La/Integrated-Water-Resources-Management.html2. Implementing integrated water resourcesmanagement in central Asia, By PatriciaWouters, Viktor Abramovich Dukhovnyi,Andrew, published by Springer, pp 3- 83. Kurukshetra – A Journal on RuralDevelopment vol. 57, March 2009, pp 26 -284. www.oas.org/dsd/waterresources.html5. Water resources development andmanagement, H. Chandrasekharan, R. K.Sharma, K. V. Sundaram Pulished By-Krishna Mittal for Mittal Publication, NewDelhi, pp 63 – 656. Yojana, November 2009-50-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 51-55ISSN 0974 - 200XCorporate- Governance : Philosophy & RealitySumita RoyLecturer, Department of CommerceSt. Xavier’s College, RanchiKeywords: Transparency, Social-Accountability, Governance-Mechanism, ProtectionIntroduction‘Success is not the art of making mistakeswhen nobody is looking at, true success istruthful expression of the performance when itis measured.’Corporate governance is the system, setof processes, customs, policies and laws bywhich the corporations are directed andcontrolled. The corporate governancestructure specifies the distributions of therights and responsibilities among differentparticipants in the corporation, such as, theboard of directors, management, shareholders and other stakeholders (includeemployees, suppliers, customers, investorsand other lenders, regulators, the environmentand the community at large) and spells out therules and the procedures for making decisions1on corporate affairs. By doing this, it alsoprovides the structures in which the companyobjectives are set and the means of attainingthose objectives and monitoring theperformance.While recent high-profile corporategovernance failures in developed countrieshave brought the subject to media attention,the issue has always been central to financeand economics. The issue is particularlyimportant for developing countries since it iscentral to financial and economic development.Recent research has established that financialdevelopment is largely dependent on investorprotection in a country-de jure protection (theprotection offered in the laws) and de factoAbstractWhile recent high-profile corporate governance failures in developed countries have brought the subject tomedia attention, the issue has always been central to finance and economics. The issue is particularlyimportant for developing countries since it is central to financial and economic development. Recentresearch has established that financial development is largely dependent on investor protection in a countrydejure protection (the protection offered in the laws) and de facto protection (to what extent the laws areenforced in real life).-51-protection (to what extent the laws areenforced in real life).With the legacy of theEnglish legal system, India has one of the bestCorporate Governance laws but poorimplementation together with socialisticpolicies of the pre-reform era has affectedcorporate governance.Concentrated ownership of shares,pyramiding and tunneling of funds amonggroup companies mark the Indian corporatelandscape.Corporate governance therefore calls forfour factors:-1. To build-up an environment of trust andconfidence amongst those havingcompeting and corporate interest.2. Transparency in decision making.3. Accountability which follows fromtransparency because responsibilitiescould be fixed easily for taken or not taken.4. The accountability is for the safeguardingthe interest of the stakeholders and the2investors of the organization.Corporate governance in India- EvolutionIn the third century B.C. in the city ofPataliputra (Patna) Kautilya (Chanakya ) wrote‘Arthashastra’ or Law of Economics. Historyrecords Patliputra the Capital of MauryanEmpire as a city “astonishingly well organizedand administered according to the principles ofGovernance”.Kautilya further elaborates on the fourfoldduty of a king as :-1. RAKSHA-Protection

2. VRIDDHI-Enhancement3. PALANA-Maintenance4. YOGAKSHEMA-SafeguardThe substitution of a state with theCompany, the king with the CEO or the Boardof a Company Subjects with the Shareholders,brings out the spirit of Corporate Governance.The four principles of corporategovernance are:-Protecting shareholder's wealthEnhancing the wealth through properutilization of assetsMaintenance of that wealth and notfrittering away in unconnected and nonprofitable ventures through expropriation,and above allSafeguarding the interest of the3shareholders.Purpose of corporate governance1. To enhance the reputation of a business/entity, which is in the public sector includeexpectations of model behaviors frompublic entities.2. To comply with the laws and Acts.3. To make the business entity more efficientand effective and to avoid disasters.Players in corporate governance1. Board of executives,2. The management teams,3. Shareholders,4. Other stakeholders5. Government.Excellence through corporate governanceGood governance provides stability andgrowth to the companies.Good governance system, demonstratedby adoption of good corporate practices,builds confidence.Effective governance reduces perceivedrisks, consequently reducing cost ofcapital.In the knowledge driven economy,excellence in skills like management willbe the ultimate corporate houses toleverage competitive advantage in thefinancial market.Adoption of good corporate practicespromotes stability and long termsustenance of stakeholder relationship.A good corporate citizen becomes an iconand enjoys a position of pride.Potential stakeholders aspire to enter intoa relationship with enterprises whose4governance are exemplary.Factors influencing corporate governance1. The ownership structure :Our corporate sector is characterized bythe co-existence of state owned, private andmultinational enterprises. Specifically, theshares are held by (except those belonging toa public sector) :-The term lending institutions,Institutional investors, comprising government- owned mutual funds, Unit Trust of India andgovernment owned insurance companies,Corporate bodies, Directors and their relativesand Foreign investors. Apart from theseholdings, there is a sizable equity holdings by5small investors.2. The structure of company boards.3. The financial structure.4. The institutional environment.Mechanisms of corporate governance1. Companies Act : - Companies in ourcountry are regulated by the companiesAct,1956 with 658 sections and 14 schedules.But to ensure corporate governance Actconfers legal rights to shareholders to :-Voteon every resolution placed before an annualgeneral meeting; To elect directors who areresponsible for specifying objectives andlaying down policies; Determine remunerationof directors and the CEO; Removal ofdirectors; Take active part in the annual6general meetings.2. Securities law :i.e. SEBI Act Since itssetting up in 1992.3. Discipline of the capital market.4. Nominees on company boards.5. Statutory audit.6. Codes of conduct.Materials and MethodsThe works of various authors, journalsperiodicals and interviews have been used inthis paper with the help of huge materialscollected from variety of sources, both primaryand secondary. Various books concerning‘Corporate-Governance’ were consulted. Thematerials used have at times been drawn from-52-Anusandhanika / Vol. III / No. I / January 2011

the website and extreme care has been takento be objective in approach. Consultations andInterviews with eminent scholars in the fieldhave shaped the present discussion.Results and DiscussionsCorporate governance has been a centralissue in developing countries long before therecent spate of corporate scandals inadvanced economies made headlines. Indeedcorporate governance and economicdevelopment are intrinsically linked. Effectivecorporate governance systems promote thedevelopment of strong financial systemsirrespectiveof whether they are largely bankbasedor market-based- which, in turn, have anunmistakably positive effect on economicgrowth and poverty reduction. There areseveral channels through which the causalityworks. Effective corporate governanceenhances access to external financing byfirms, leading to greater investment, as well ashigher growth and employment. As for equityfinancing, the ratio of stock marketcapitalization to GDP in the countries is thehighest quartile of shareholder right enactmentand enforcement is about four times as large7as that for countries in the lowest quartile.Hence poor corporate governance alsohinders the creation and development of newfirms. Good corporate governance also lowersthe cost of capital by reducing risk and createshigher firm valuation once again boosting realinvestment. Effective corporate governancemechanisms ensure better resource allocationand management raising the return to capital.The return on assets (ROA) is about twice ashigh in the countries with the highest level ofequity rights protection as in countries with thelowest protection. Good corporate governancecan significantly reduce the risk of nation-widefinancial crisis. There is a strong inverserelationship between the quality of corporategovernance and currency depreciation.Indeed poor transparency and corporategovernance norms are believed to be the keyreasons behind the Asian-Crisis of 1997.Suchfinancial crisis have massive economic andsocial costs and set a country several yearsback in its path to development.Finally, good corporate governance canremove mistrust between different stakeholders, reduce legal costs and social andlabour relationships and external economieslike environmental protection.Making sure that the managers actuallyact on behalf of the owners of the company-thestakeholders-and pass on the profits to themare the key issues in corporate governance.Limited liability and dispersed ownershipessentialfeatures that the joint-stock companyform of organization thrives on- inevitably leadto a distance and inefficient monitoring ofmanagement by the actual owners of thebusiness. Managers enjoy actual control ofbusiness and may not serve in the best interestof the shareholders. These potential problems8of corporate governance are universal. Inaddition, the Indian financial sector is markedwith a relatively unsophisticated equity marketvulnerable to manipulation and with rudimentaryanalyst activity; a dominance of family firms; ahistory of managing agency system; and agenerally high level of corruption. All thesefeatures make corporate governance aparticularly important issue in India.Systematic problems of corporategovernance:-Demand for information: A barrier toshareholders using good information is thecost of processing it, especially to a smallshareholder. The traditional answer to thisproblem is the efficient market hypothesis(EMH) asserts that financial markets areefficient and suggests that the shareholder willfree ride on the judgment of larger professional9investors.Monitoring costs: In order to influence thedirectors, the shareholders must combine withother form of a significant voting group whichcan pose a real threat of carrying resolutions orappointing directors at a general meeting.Supply of accounting Information :Financial accounts form a crucial link inenabling provider’s finance to monitordirectors. Imperfections in the financialreporting process will cause imperfections inthe effectiveness of corporate governance.This should, ideally, be corrected by theworking of the external auditing process.What Companies should do?Companies need to take steps to preventharm to their reputation and also pacify theactivist group by taking basic steps like-53-Anusandhanika / Vol. III / No. I / January 2011

meeting all corporate norms and regulations.They should be in a transparent manner.Companies these days reward employees formeeting sales targets, achieving profits etc.but somewhere down the line we haveneglected ethical conducts and transparency.Those who achieve excel but by the doubtfulway should face negative consequences notrewards. This may not sound well but long termreward for good corporate governance will bemuch higher. There is also need for thesuccession planning for the employees in the10organization.Corporate Governance Practices by InfosysThe grand story of Infosys foundationstarted with its mentor Narayana Murthyhaving borrowed a princely sum of Rs.10,000.From his wife Sudha Murthy (Today, thechairperson of Infosys). This man with visionbut zero capital is then responsible for whatInfosys is today. In fact he boldly proclaims,”Leaders must by example”.Infosys has accepted the recommendationsof the CII (Confederation of IndianIndustries published a code of corporategovernance in the late 1990s) and therecommendation of the code of corporategovernance by Kumar Manglam BirlaCommittee of SEBI.Infosys has an executive chairman andchief executive officer (CEO) and a managingdirector and chief operating officer (COO).TheCOO is responsible for all day to dayoperational activities, achievements of annualtargets in client satisfaction, sales, profits,quality, productivity, employer empowermentand employee retention. The CEO, COO,executive directors and the senior managementmade periodic presentations toAnnual-Report on their targets, responsibilitiesand performance. Infosys adopted the toughUS Generally Accepted Accounting Practices(GAAP) many years before the othercompanies in India did. To maintaintransparency, Infosys provided details on highor low averages of share prices in all the stockexchanges on which the companies sharewere listed. Narayan Murthy believed incommitment to values, ethical conducts ofbusiness. He made a clear distinction betweenpersonal and corporate funds so that memberstook only salaries and dividend and did nothave other benefits from the company. By thelate 1990s, Infosys Technology Ltd had clearlyemerged one of the best managed companiesin India. In 2000, Infosys had been awardedthe“ National Award for Excellence inCorporate Governance” by the Governmentof India. In 1999, Infosys had been selected asone of Asia’s leading companies in EasternEconomic Review’s. REVIEW 2000 surveyand voted it as India’s most admired companyby the Economic Times. As a way ofdischarging corporate-responsibility thecompany has pledged a part of its wealth awayto charities involved in basic health care,education and nutrition.Conducts of Satyam: Mockery ofCorporate GovernanceThe failure of corporate governance isbest exemplified by the Satyam Saga. Theexplosion of its success story brought into lightthe myth of ‘asatyam’ that had built around theIT Company and its founder and CEO B.Ramlinga Raju . The failure of the corporategovernance, the blindness of the legal systemof the country and the criminal complicity of thefinancial regulatory authorities not onlypitiably affected the stakeholders but sentshock-waves through the length and breadthof the country. "Satyam” it is a Sanskrit wordwhich means the truth but the Satyam case isone of the biggest untruth in India’s corporatehistory. B. Ramalinga Raju, Founder & CEOof Satyam Computers proved that SatyamComputers had been feeding investors,shareholders, clients and employees diet ofth‘asatyam’. January7 , 2009 will go down as ablack day in corporate India for this was theday, Ramalinga Raju, the founder & formerchairman of Satyam admitted the companyhad been falsifying its account for years. Whathad shocked analysts is that the money, thatsupposed to be fictious later, had been rollingSatyam’s balance-sheets and books ofaccount that had been audited by theinternationally reputed auditors, Price-Waterhouse-Coopers(PWC).The entire episode ofattempt to purchase of Maytas by Satyam wasnothing but making mockery of the concept ofcorporate governance in India, the verydefinition of which ie. Fairness, Transparencyand Accountability have failed here. SatyamComputers episode has raised a question on-54-Anusandhanika / Vol. III / No. I / January 2011

the role by independent directors and whetherthey all need to be regulated. This case is aneye-opener to the extent to which theindependent directors are performed well theirrole.ConclusionThe terms of philosophy and reality wecan compare both the companys’ honestylevel, accountability level and of coursetransparency level. These are the pillars ofCorporate Governance.When one talk about Infosys, we find itstrong in all aspect and above all the companythinks employee first then about anything else.Because, the founder of the CompanyNarayan Murthy thinks that employees are thebiggest assets for the company.Nevertheless, if we talk about Satyam, wefind holes everywhere. Company’s founderRaju never thought about employees and thecode of Corporate Governance. He made amistake that he falsified the books of accountsfor last several years. And then anothermistake for trying to overcome the first one byattempting to purchase Maytas Infrastructureand Maytas Properties.So, we find that Infosys had not onlyacquired a best position for itself but by its bestcorporate governance practices it has made agreat perception of investors about IndianCompanies in Indian market.On the other hand Satyam Computers hadlost the trust of itself, other Indian Companiesand International Market by its bad CorporateGovernance conduct.So, it can be said that fulfilling the needsand requirements of Corporate Governance isnot the choice but it’s a compulsion forcompanies. Ethics, Efficiency and Accountabilityare most important for long term survival andprosperity for the organization. So, Companiesshould follow the way Infosys has followed andstop following norms which Satyam took.References1. Bae.K.H.J.K. Kang and Kim J.M.,Tunneling or Value Addition? Evidencefrom Mergers by Korean BusinessGroups. Journal of Finance 57(6):2695-740, 20022. Bertrand M. P. Mehta. and S. Mullainathan,Ferreting out Tunneling: An Application toIndian Business Groups. QuarterlyJournal of Economics 117(1):121-48,20023. For a good overview of the differenttheoretical perspectives on corporategovernance see chapter of Dignam, A andLowry, J Company Law, Oxford UniversityPress, 20064. Chhibber P.K., and Majumdar S.K.,Foreign Ownership and Profitability:Property Rights, Control, and thePerformance of Firms in Indian Industry,Journal of Law and Economics, 42, 19905. Das A. and Ghosh S., CorporateGovernance In Banking System: AnEmpirical Investigation, Economic andPolitical Weekly, March20,2004, pp.1263-12666. Goswami Omkar, Corporate Governance inIndia, Taking Action Against Corruption inAsia and the Pacific ( Manila: AsianDevelopment Bank ), Chapter, 20027. Sarkar, J. and Sarkar S, LargeShareholder Activism in CorporateGovernance in Developing Countries:Evidence from India, International Reviewof Finance, 20008. La Porta R., F. Lopez-de- Silanes, A.Shleifer, R. Vishny, Investor Protectionand Corporate Valuation, Journal ofFinance, 20029. Whittington G., Corporate Governanceand the regulation of Financial Reporting,Accounting & Business Research, vol.2,1993, Corporate Governance SpecialIssue, pp 311-31910. Bhalla V.K, S. Shiva Ram, InternationalBusiness Environment and Management,7th Edition Publication pvt. Ltd. New Delhi2003, pp. 655-685-55-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 56-60ISSN 0974 - 200XIntroductionIndustrial relations and globalizationDr. B. K. MehtaDean and Head, Faculty of CommerceJamshedpur Women’s College, JamshedpurKumari AnamikaLecturer, Faculty of Commerce,The Graduate School College for Women, JamshedpurIndustrial Relations (IR) has vastlyemerged as a vital field of study and today itoccupies a significant place in the modernbusiness world. Earlier industrial relations didnot exist the way it does at present. Infact, thegrowth of industrial relations is directly linkedwith the industrial development and thecomplexity of the work organization. As theorganizations grew in complexity, size andnumber, industrial relations emerged veryrapidly1.Industrial relations has become one ofthe most delicate and complex problems ofmodern industrial society. Industrial progressis impossible without co-operation of labourand harmonious relationships. Therefore, it isin the interest of all to create and maintain goodrelations between employees and employers.The term ‘Industrial Relations’ comprisesof two terms: ‘Industry’ and ‘Relations’.“Industry” refers to “any productive activity inwhich an individual (or a group of individuals) isAbstractIndustrial Relations is the composite result of attitudes and approaches of employers and employeestowards each other with regard to planning, supervision, direction and coordination of the activities of anorganization with a minimum of human efforts and frictions with a spirit of cooperation and regard for thegenuine wellbeing of all the members of the organization. The field of Industrial Relations includes the studyof workers, trade unions, management, employers’ associations and the state institutions concerned with theregulation of employment. The growth of Industrial Relations is directly linked with the industrialdevelopment. Higher the industrial development higher will be the complexities of Industrial Relations. Newdimensions have been added to the complex concept of Industrial Relations in the era of globalization andliberalization. Industrialization strategies affect society and labour and influence human resource andIndustrial Relations policies at both the macro and micro levels. Globalization has led to several changes inthe industrial strategies and policies and in the wake of these changes it’s a big challenge to ensure thateconomic and industrial development is in harmony with social and human progress. Here, the role of tradeunion as a channel between the management and the employees is very crucial. The stumbling trade unionsrequire new vision, mission, strategy and philosophy, effective communication and ability to correlateindividual goals with the goals of the enterprise to establish efficiency and competitiveness of theorganization in the era of globalization. The present article attempts to develop an overview on the variousfacets of Industrial Relations in the era of globalization, its present and future challenges, IR policies and therole of trade unions.Keywords: Industrial relations, globalization, trade unions, human resource, liberalization-56-(are) engaged”. By “relations” we mean “therelationships that exist within the industrybetween the employer and his workmen.In the common perception, industrialrelations connote the complex web ofrelationship that exists between the employerand the employees and the State being in theposition of the third actor as a regulatoryauthority. Industrial relations affect not merelythe interests of the two participants-labour andmanagement, but also the economic andsocial goals to which the State addressesitself. To regulate these relations in sociallydesirable channels is a function which the2State is in best position to perform. Industrialrelation is quite complex and multi-dimensionalin nature and it rests upon economic, historical,social, psychological, ethical, political, legaland other variables. It includes everything thatpeople do in the world of work, their actionsand reactions which affect not just a companyor an industry rather the entire economy.

It is a well known fact that dynamicchanges take place in various fields whether itbe social, economic, political, cultural or anyother. In the economic sphere ‘Globalization’represents the significant change. Globalizationcan be defined as a process of rapid economic,cultural, and institutional integration amongcountries. This unification is driven by theliberalization of trade, investment and capitalflow, technological advances and pressures forassimilation towards international standards.Globalization has reduced barriers betweencountries, thereby resulting in intensification ofeconomic competition among nations,dissemination of advanced managementpractices and newer forms of work organization,and in some cases sharing of internationallyaccepted labour standards. Globalization is acommon characteristic of today’s economicorder. Globalization has had and is continuingto exert a variety of influences on the variouseconomic aspects. It is not at all surprising thatglobalization impinges on industrial relationsas well. This is so because globalizationsignificantly contributes to structural changesresulting from new forms of organization ofwork and production within and between firmsand also because it subjects national labourmarkets to increased pressures from foreign3economic influences.Materials and MethodsThe materials presented in this article arebased on relevant books, magazines, journals,reports and websites. The materials are mainlyof secondary nature. A descriptive andanalytical approach has been adopted. Also,efforts have been made to maintain objectivity.Results and DiscussionsIn the preliminary stages of industrializationindustrial relation was not accorded the dueimportance it actually deserved. It was merelyused as an ad-hoc managerial response indealing with a problem ie, just a patch up job.However, the recent spate of changes in theeconomies of the world by the creation ofWTO, economic liberalization and trendtowards globalization have brought many4changes in the modern organizations.Increasing levels of globalization, ruling theworld economy has thrown a spate ofchallenges in the field of industrial relations.Today, it’s unimaginable that IndustrialRelations (IR) and Human Resource (HR)professionals are at a liberty to ignore theconsequent changes led by globalization in thefield of IR. Rather it’s a compulsion on their partto design and execute innovative mechanismsof developing skills and competencies ofhuman resources and adopting relevantstrategies to combat the challenges whichinclude:• Rapid advancement of technologiesleading to obsolescence of present skillsand techniques;• Elimination of long established jobs onaccount of technological advancement;• Changing profile of workers, such asincreased education, rising share ofwomen in the work force, increasedemphasis on fulfillment of psychologicalneeds, increased awareness, greaterdegree of skill and mobility, higheraspirations etc.;• Increased number of mergers andacquisitions leading to redundancy ofthousands of workers;• Increased pressure on organizations tocontract out the various services likehouse-keeping, security, gardening andpara-clinical;• Frequent changes in the requirement ofdifferent patterns of experience andeducation from the employees;• Economic and industrial policy changesleading to tough competition frommultinational corporations;• Ever increasing needs and expectation ofemployees from their employers.The aforesaid challenges in the field of IRdefinitely call for the change in the perspectiveof the IR managers. Today it is being realisedthat human resource is the greatest asset andpolicies like competence building, job rotation,improved working conditions, job security,financial and non-financial incentives, etc arebeing adopted by the organizations. Greaterstress in being given in the field of labourwelfare and social security with increasedforced retirement benefits like healthinsurance, provident fund, pension etc. Themanagers are being compelled to evolveappropriate techniques to satisfy the higher-57-Anusandhanika / Vol. III / No. I / January 2011

level needs of workers in order to motivatethem to survive and grow in the highlycompetitive market and to face the challengesthrown upon by globalization. Managementsacross the world have started adoptingparticipative style of management whereworkers are delegated responsibility and areinvolved in the day to day decision makingprocess.Industrial policy and globalizationPrior to 1991, the industrial relationssystem in India sought to control conflicts anddisputes through excessive labour legislations.These labour laws were protective in natureand covered a wide range of aspects ofworkplace industrial relations like laws onhealth and safety of labours, layoffs andretrenchment policies, industrial disputes andthe like. The basic purpose of these laws wasto protect labour. However, these protectionistpolicies created an atmosphere that led toincreased efficiency in firms, over employmentand inability to introduce efficacy. With thecoming of globalization, the 40 year old policyof protectionism proved inadequate for Indianindustry to remain competitive as the lack offlexibility posed a serious threat to manufacturersbecause they had to compete in theinternational market. With the advent ofliberalization in 1991, the industrial relationspolicy began to change. Now, the policy wastilted towards employers. Employers opted forworkforce reduction, introduced policies ofvoluntary retirement schemes and flexibility inworkplace also increased. Thus, globalizationbrought major changes in industrial relationspolicy in India. These changes may besummarized as follows:• Collective bargaining in India has mostlybeen decentralized, but now in sectorswhere it was not so, are also facingpressures to follow decentralization.• Some industries are cutting employmentto a significant extent to cope with thedomestic and foreign competition. On theother hand, in other industries where thedemand for employment is increasing areexperiencing employment growths.• In the expansionary economy there is aclear shortage of managers and skilledlabour.• The number of local and enterprise levelunions has increased and there is asignificant reduction in the influence of theunions.• Under pressure some unions andfederations are putting up a united fronte.g. banking.• Another trend is that the employers havestarted to push for internal unions i.e. nooutside affiliation.• HR policies and forms of work areemerging that include, especially in multinationalcompanies, muli-skills, variablecompensation, job rotation, etc. Thesenew policies are difficult to implement inplace of old practices as the institutionalset up still needs to be changed.• HRM is seen as a key component ofbusiness strategy.• Training and skill development is alsoreceiving attention in a number of industries,especially banking and informationtechnology.Trade Unions and Industrial relations inglobalizationIt was proposed earlier that there are threekey actors in modern industrial relationssystems-the employers, the labour unions andthe government-wherein none of theseinstitutions could act in an independentmanner and that they are shaped to someextent, by the market, technological andpolitical contexts under which they operate.However, recent decades have witnessedprofound changes in the said “contexts”-wheretrade unions operate, threatening their presentday relevance. The sources of these changesare well known-globalization of the worldeconomy, ascent of new technologies andchanges in workforce demographics. Thesechanges in the environmental contexts haveresulted the expansion of marginalizedworkers of the economy and with theirtraditional approaches and strategies, theyhave remained outside the purview of tradeunions, leading to their decline over the pastyears.Trade unions have been importantinstitutions of industrial society. Apart frombeing successful in legitimizing the workers’-58-Anusandhanika / Vol. III / No. I / January 2011

struggle, they have helped deliver significantoutcomes in terms of empowering theirmembers and fighting for equity and justice toworkers. The advent of the 21st century hasproved to be the defining moment for tradeunions. There have been immense changes inthe political and economic spheres which havehad negative effects on their position andinfluence.Globalization of the economy is theforemost cause of such a development. It hasbrought about heavy pressure on the localindustries to become globally competitive.Heightened global competition has disposedenterprises to adopt greater flexibility bothfunctional and numerical.-in terms of labourutilization. Functional flexibility on the onehand includes “broadening of job designs,mobility across tasks, enlarging the scope ofindividual skills and extensive training andretraining programs.” Numerical flexibility, onthe other hand, entails practices such aslabour subcontracting, changing work-hoursand hiring casual, part-time, temporary andcontract workers. These practices arenowadays considered typical by increasingnumber of people and now have gained‘legitimacy and political support in the climateof economic liberalism.’ The even sadder partis that these practices are easily employed bycapitalists without much reaction from workersas they are left with no choice but to agree dueto limited employment opportunities.Globalization has also affected the wayemployers see their employees. In their eyeslabour has become a commodity and not apartner for progress. They constantly try tokeep on creating cheap labour market tomaintain low prices with high profit margins.Due to intense competition they prefer to avoidobstruction in their production processes, thusthey adopt anti-union practices.Apart from globalization, technologicaladvancements too have affected the role oftrade unions. Advancements in technology hasled to geographically dispersed productionunits. It is no longer necessary for people towork closely and be physically located in thesame place. Computers have facilitated onlinework execution. Truly, with technologicaladvancements, the term virtual office hasbecome a reality. Another phenomenaassociated with new technology is theautomation of business process. Companieshave been resorting to the substitution oflabour-intensive operations by machineprocessedoperations.The composition of workers is alsochanging and they are increasinglydifferentiated by their competence. At thehigher end of the spectrum, workers “tend to bebetter educated, career minded, individualisticand less motivated by class interests andsolidarity. Also majority of workers belong tothe lower end of the scale, usually employed inservice industries and occupations and theyare mainly women and migrant workers.The above trends in the realm of labourand employment have had the general effect ofweakening trade unions, demarcating theirorganizing and bargaining opportunities. Thechallenge to trade unions, therefore is totranscend their traditional approaches inmobilizing and organizing workers. Todaywhen global capitalism has emergeddominantly in the form of MNCs and more andmore organizations are trying to globalize theiroperation and thus exposing them to stiffcompetition, new strategies and constructivepolicies are required to be adopted by the tradeunions. Development of new perception;understanding of organization’s vision,mission, strategy and philosophy; effectivecommunication with the management;establishment and maintenance of cooperativework culture; correlation between individual’sgoals and organization’s objectives etc is theneed of the hour. Particularly, there is a needfor trade unions to establish alliance with otherinstitutions to be able to seek social justice for awider group of workers and consequentlysustain their relevance amidst changing globaland local pressures.Future of industrial relationsThe business environment is changingrapidly and the pressures from various groupsinvolved are starting to get more vocal andintense. In such an environment it will beextremely crucial to maintain harmonious andpeaceful industrial relations for the success ofthe business concerned. The objective ofmaintaining healthy industrial relations is tosafeguard the interests of the labour andmanagement, avoid conflicts, eliminate strikes-59-Anusandhanika / Vol. III / No. I / January 2011

and lockouts and raise productivity. Healthyindustrial relation can be achieved through theexistence of responsible management andtrade unions. The government that plays theregulatory role is also very crucial inmaintaining industrial peace and take thecountry on the path of speedy economicgrowth.Effective management of industrialrelations will continue to demand a very highpriority in the coming era, not just to ‘do well’,but also for the survival of both, theorganization, as well as the employees, jobs.The HR managers will have to develop moreeffective strategies to build understanding andco-operation for this common objective, beforebeing too late. Instead of confronting, partnershipattitudes between unions, employees andmanagement will have to be created. Maturityfrom all will need considerable changes inmanagement styles, impartial attitude buildingexercises and development work spearheadedby the HR managers. Productivity improvement,managing flexibility, rapid adaption oftechnological upgradation and fast responseto market requirements will also warrant theHR managers to manage such changes withminimum disruption- an undaunting task.The scope of industrial relations will bewider in the future and will depend upon thevarious strategies adopted by the concernedparties. The future of the industrial relation liesin the Human Resource Development that laysemphasis on investing in human capitalthrough the development of competencies,multi-skilling, career planning, work that meetsexpectations of workers, and a balancebetween needs of the organization and theneeds of the workers. Undoubtedly, industrialrelations getting complex day by day isexpected to consume more of managerialattention and time.Further, the increasing globalization ofmarket and the emergence of an internationalorder seeking to enforce international labourstandards would add to the complexity ofindustrial relations. Here, it would becomeimperative to upgrade and bring to tune withtimes the labour legislation, labouradministration and labour judiciary. Also,appropriate institutional mechanism for review,simplification and rationalization of labour lawswith a view to removing irritants and stumblingblocks in healthy industrial relation would berequired. By a process of liberal and beneficialinterpretation, the judiciary seeks to expandthe horizon of social justice with the result thatno area relating to industrial relations isimmune from judicial intervention.ConclusionIndustrial relation has undergone a greatdeal of transition and transformation. Withevery passing day, its complexities aremultiplying. It’s a big challenge for both presentand future managers to handle adequately theissues related to industrial relations. Toachieve the goals of efficiency and equity in theindustrial relation, the roles of parties toindustrial relations and their underlying valuesboth needs to be redefined. With the globalinterdependence on the rise, a new outlook, afresh perspective and rational strategies toindustrial relation are required to bring aboutbetter performance, growth and developmentof the business concerns. To sum up, “thestrategic importance of industrial relationsextends beyond the limited frontiers of unionmanagementrelationship and overlaps withfuture prospects for the country on the onehand and the basic concepts and assumptionsof economic development on the other. The setof strategic choices must be made in the midstof economic and political difficulties that thecountry is undergoing.References1. Sen Ratna, Industrial Relations in India,Shifting Paradigms, Macmillan India Ltd.,New Delhi, 2005, p. 22. Report of National Commission onLabour, Govt. of India, Ministry of Labour,1969, p.xxi3. Campbell D, Globalization and StrategicChoices in Tripartite Perspective: Anagenda for Research Policy Issues.International Institute for Labour Studies,Geneva, 19914. Chhabra T N, Principles and Practice ofManagement, Dhanpat Rai and Co.,2000, p. 583-60-Anusandhanika / Vol. III / No. I / January 2011

along these criteria, one inevitably finds it2wanting. ( we say this despite the inroadsmade by market values at the expense oftraditionally professional ones that have beenobservable in both law and medicine in recentyears). This shortcoming, we believe, has adirect bearing on society's ability to demandand obtain responsible conduct fromexecutives, as well as on management's abilityto maintain the public trust required for theoptimal functioning of our economic institutions.While not intending to idealize what we havecalled the bona fide professions, we believethat the comparison we undertake in this paperhas merit as a way of suggesting howmanagement as an institution might bereformed, other than through the bluntinstruments of law and regulation on one handand well-meaning but ultimately toothless callsfor greater individual integrity and ethics on theother. Common body of knowledge resting onwell - developed , widely accepted theoreticalbase.Materials and MethodsThis study is mainly based on the use ofavailable literature in the form of books,journals, reports etc. The approach followed inthis paper is purely textual. The materials usedhave at times been drawn from the website andextreme care has been taken to be objective inapproach.Results and DiscussionsThe traditional professions of law,medicine, and the clergy all have deephistorical roots in another major institution ofWestern society: the university. Roman andcanon law, medicine, and theology, in fact,constituted three of the four faculties of themedieval European university, and theysurvive to this day - in schools of law, medicine,and divinity, respectively - in the modemAmerican university. Law students now learnthe law not as a collection of statutes but ratheras a set of principles, doctrines, and rules thathave evolved over the course of centuries andare said to constitute legal reasoning itself. Thestudy of medicine, for its part, has beencontinually transformed since the Middle Agesby the rise and ongoing progress of modernscience. The development of the germ theoryof disease in the nineteenth century, for-62-example, and of the science of genetics in thetwentieth, have gone into the formation of atheoretical structure that undergirds the bodyof knowledge every medical student is nowrequired to master.Turning to the body of systematizedknowledge underpinning the claim thatbusiness management too is a profession, wefind important difference between managementas a science and the knowledge bases of thetraditional professions. It is not just that thestudy of management was a latecomer to theuniversity which, since the creation of themodem America research university in the lastthree decades of the nineteenth century, hasgained an effective monopoly on professional3education (the first university basedbusiness school in America, the universityof Pennsylvania's Wharton School of Finance,4was not founded until 1881) . The professionalizationof management, which was whatbusiness schools were founded to undertake,began as a quest to delve the practice ofbusiness, with its rule of thumb approach tobusiness problems to discover a set ofunderlying principles that could explaineffective practice These basic principles wereby no means evident to the pioneers ofacademic business education and, as wesuggest, they remain by no means evident5today.During the time that the first businessschools were being constituted, at thebeginning of the twentieth century, scientificmanagement was in the air, as FrederickTaylor's application of scientific methods to thestudy of physical labor had begun to beextended to the organization of industry as wellas to spheres such as higher education and6government. While Taylorism was quicklyjettisoned as the core of the business schoolcurriculum, it made scientific reasoning andmethod appear to be applicable to business,thus helping to legitimize the study of businessas an activity within the university. Yet whatexactly a "science" of management shouldstudy would be puzzled over and debated for agreat many years. There curricular modelsemerged and competed with one another inthe early decades of university businesseducation. The first was a simple aggregationof course taught elsewhere in the universityAnusandhanika / Vol. III / No. I / January 2011

and covering such obviously useful (ifintellectually circumscribed) subjects asaccounting and business law. The secondmodel attempted to organize businesseducation around specific industries such asbanking, transportation, merchandising,mining and lumber. The third modelincreasingly adopted by the 1930s, and still thebasis of the business school curriculum today -was the functional approach, as the groupingof courses began to mirror the differentiation offinance, administration, operations, andmarketing as the major activities of the firm.Thus, the curricular structure evolved as apragmatic response to the challenge of turningout graduates who could perform the tasks that7would be required of them by employers.Economics, in the decades prior to WorldWar II, had occupied a relatively weak positionin the disciplinary pecking order. Yet as thegrowing acceptance of Keynesian theory in thepost - war years gave the subject greaterprestige, and the 1958 reports on the state ofbusiness education in America by theCarnegie corporation and the Ford Foundationled to a greater emphasis on the socialsciences and quantitative method in business8schools economics began to move into theposition of dominance that it enjoys in the MBAcurriculum today. It is undeniable that otherrecent economic theorists have contributedimportant insights into the internal workings offirms that are applicable to managerialpractice. Yet they have also left businesseducation with a dominant theory that, inadhering to many of the individualistassumptions and methodologies of neoclassicaleconomics, is unable to account for much ofthe social environment of business - includingthe social and cultural factors that makethemselves felt within organizations, as well asother essential aspects of the phenomenon9that it purports to explain.System of certificationBesides having failed to develop a body ofknowledge and theory comparable to those ofthe true professions, management differs fromthese other occupations in lacking a set ofinstitutions designed to certify that itspractitioners have a basic mastery of a corebody of specialized knowledge and can apply itjudiciously. In medicine and law, for example,there are institutions that specify theeducational requirements (i. e, the MD or JDdegree) that anyone desirous of practicing theprofession must obtain. Beyond theseeducational requirements, aspirants tomembership in these and other recognizedprofessions must obtain a license to practiceby passing a comprehensive exam designedto test mastery of the knowledge ostensiblyacquired in professional passes that exam, heor she must invest in a certain amount ofcontinuing education in order to stay abreast ofevolving knowledge in the profession and tomaintain a license to practice.Management differs from medicine, law,and other recognized professions in havingneither a formal educational requirement nor asystem of examination and licensing foraspiring members. Although the MBA hasbeen the fastest -growing graduate degree forthe past twenty years, it is not a requirement for10becoming a manager . It is true that for thoseseeking access to senior executive positionsor work in the fields of investment banking orconsulting, an MBA has become a de factorequirement. Yet even in these cases, there isno requirement of passing a standard exambefore being admitted to practice, nor aresenior managers, investment bankers,or consultants required to participate incontinuing education. There is no explicitobligation, for example, for experienced, highlevel managers to know anything aboutinvesting in innovative new financialderivatives or special - purpose vehicles, evenif they serve on boards that are required toapprove such potentially risky transaction. Infact, data on enrollment in executive educationprograms offered by business schools suggestthat those who already possess an MBA arethe least likely to pursue continuing11education.Commitment to specialized knowledge asa public good; renunciation of profitmaximization.To be able to set and enforce standards ofadmission to a profession, determine howprofessional work is done, engage in self -regulation rather than be subjected toextensive regulation from without, and reap the-63-Anusandhanika / Vol. III / No. I / January 2011

economic benefits of a monopoly position inthe marketplace - these are all privileges thatsociety grants to professions in return forcertain social benefits. The creation of thesesocial benefits, in turn, places certainconstraints on professionals. Because theypossess specialized knowledge in areas ofvital concern to society, genuine professionalsare expected to place that knowledge at thedisposal of all who require it and to provideservices in a way that places the maintenanceof professional standards and values ahead ofthe securing of individual advantage. Therenunciation of unabashed self -interest thatsociety expects of true professionals takes avery particular form: unlike actors in themarketplace, as envisioned by classical andneoclassical economic, professionals engagein work out of more than merely economicmotives, and they eschew profit maximization12(as opposed to profit making ) as a goal .Indeed, because of the exemption they havebeen granted from certain laws of marketexchange, professionals are specificallyenjoined from using the laws of the market toreap economic gain at the expense of theirprofessional obligations.Haunted by a belief that scientific,technological, and material progress wasoutstripping society's capacity for moral selfgovernance,and that the professions that hadtraditionally provided social moral leadership(i.e, law and the clergy ) were no longer up tothe task, Donham looked to a new "professionof business" for nothing less than savingmodern, industrial civilization from itself. As theprofessionalization project that had providedthe agenda for American business educationfrom its founding up until the outbreak of worldWar II was abandoned in the postwar decades,expectations of what managers shouldcontribute to society became rather moremodest, to say the least.Today, in place of such notions as the"socializing of industry from within" and theconcept of the business executive as an expertcapable of, and responsible for, solving someof the most urgent problems facing modernsocieties, we find American business schoolspropagating the doctrine of shareholderprimacy and the paradigm of the manager asthe mere agent of the company's "owners".-64-Taken in combination, these two concepts -both outgrowths of the intellectual dominationof American business education by economicsduring the past three decades - makemanagers anything but disinterested expertsoriented toward the needs of society that wetake to be part of the essence of professionalism.The doctrine of shareholder primacy haslegitimized the idea that the benefits ofmanagerial expertise may be offered for purelyprivate gain and that this is equivalent toadvancing societal interests. Having given riseto the notion of making managers " think andbehave like owners" through equity - linkedcompensation, agency theory can now beseen to have led directly to many of the worstprofit - maximizing abuses unmasked in the13recent wave of corporate scandals.Code of ethicsThe fourth and final dimension on which,in our view, management differs significantlyfrom the true professions is that its membersare not governed by a shared normative codethat is reinforced by institutions that promoteadherence to it. Such a normative code,whether known as a code of ethics or a code ofconduct, is a central feature of almost anyoccupational group that desire to be seen as aprofession. Though normative codes existamong "professions" as diverse as librarianshipand plumbing, the true professions go fartherthan simply having a written code by whichmembers are encouraged to abide voluntarily.They teach the meaning and consequences ofthe code as a part of the formal education oftheir members. They test and verify thisunderstanding through licensing exams. Oncelicensed, members are required to adhere tothe code in order to maintain a license. Agoverning body, composed of respectedmember of the profession, overseesadherence to the code by establishingmonitoring mechanisms, reviewing complaints,and administering sanctions - including theultimate sanction of revoking an individual'slicense to operate as a professional.Professions establish these codes, andthe institutions to enforce them, as part of theirimplicit contract with society. "Trust us toexercise jurisdiction over an importantoccupational category," these professionsAnusandhanika / Vol. III / No. I / January 2011

essentially state. "In return, we will make everyeffort to ensure that the members of ourprofession are worthy of your trust, that theywill not only be competent to perform the taskswith which they have been entrusted but willalso adhere to high standards and conductthemselves with integrity." The privilege of selfregulationis granted out of society'srecognition that in cases involving the use ofhighly specialized knowledge, laypersons maynot be a position to pass accurate and fairjudgment on the conduct of specialists.Most normative codes, like the ancientHippocratic Oath for doctors, clearly articulatea profession's higher aims and social purposeand the manner in which these purposes mustbe pursued. Such role definitions have manybenefits; one is that by establishing anormative standard for inclusion, they createand sustain a sense of community and mutualobligation among the member of a professionas an abstract social entity. These bonds ofmembership create the social capital of aprofession, which builds trust and significantlyreduces transaction costs among members ofthat profession and between the professionand society. As we observed at the beginningof this paper, trust in management as aninstitution could not be much lower than it is inAmerican society today. In light of that, thebenefits of a true profession of managementadopting a formal normative code wouldappear to be obvious-particularly in comparisonwith a regulatory regime that could all tooeasily stifle the innovation and risks taking thathave contributed so much to the success ofAmerican capitalism.ConclusionOne way of looking at the problem withAmerican management today, we wouldargue, is that it has succeeded in assumingmany of the appearances and privileges ofprofessionalism while evading the attendantconstraints and responsibilities. Although it isnow fashionable in some quarters, as we havesuggested, to denigrate professionals as elitesenjoying shelters from the rough and tumble ofthe marketplace, do we as a society really wishto surrender the benefits that we rightfullydemand of professionals in return? And giventhe inevitable existence of elite knowledgeworkers, such as managers, in complexmodem societies, ought we not to beconcerned with producing elites who aremotivated by something beyond the pursuit ofself interest under the laws of the marketplaceor the fear of punishment under the laws of theland? A self-interested, self-indulgentcorporate leadership is not inevitable, and amodel for something better lies at hand. Wecan find it the flawed but durable institutionsthat serve society by meriting the label"profession."References1. Andrew Abbott, The System ofprofessions: An Essay on the Division ofExpert labor (Chicago University ofChicago Press, 1988)- Page- 32 and EliotFreidson, Professionsalism: The ThirdLogic, Chicago: University of ChicagoPress, 2001, p 462. Paul Starr, The Social Transformation ofAmerican Medicine, New York: BasicBook, 1982, p 193. Laurence R. Veysey, The Emergence ofthe American University, Chicago:University of Chicago Press, 1965, p 634. Steven A. Sass, The Pragmatic Imagination:A History of the Wharton School, 1881-1981, Philadephia: University ofPennsylvania Press,1982, p 795. Donald A. Schon, The ReflectivePractitioner, New York: Basic, 1983, p 656. Stevens R. Barley and Gidens Kunda,Design and Devotion: Surges of Rationaland Normative Ideologies of control inManagerial Discourse, AdministrativeScience Quarterly 33, September, 1992, p 247. Willard E. Hotchkiss, The Basic ElementsTheir proper Balance in the curriculum of acollegiate Business School: Journal ofpolitical Economy 28, February, 1920 p 898. Frank Pierson, The Education ofAmerican Businessmen, New York:McGraw Hill, 1959, p 312-65-Anusandhanika / Vol. III / No. I / January 2011

9. Sumantra Ghoshal and Peter Moran, Badfor Practice: A Critique of Transaction CostTheory, Academy of Management Review21, January, 1996, p 1310. Jeffrey Pfeffer and Christian T. Fong, TheEnd of Business Schools? Less Successthan Meets the Eye, Academy ofManagement Learning and Education 1,2002, p 7811. Walter Kiechel, Presentation on trends inbusiness press publishing and executiveeducation to Harvard Business Schoolfaculty, Fall, 2002, p 8512. In a recent interview, Harvard UniversityPresident Lawrence Summers noted thatone should not confound private gain withsocietal contribution when examining thevalue of professions: Where ourprofessional schools are concerned, Ithink we all are convinced that value of anactivity or a profession is not measured byhow large a house its practitioners live in,The President's Perspective, HarvardMagazine, January - February, 2004, p 5213. Jeff Madrick, Are Corporate Scandals JustGreed, or a Predictable Result of aTheory? New York Times, February 20,2003, p14-66-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 67-69ISSN 0974 - 200XPhilosophy of Man-Management : Indian PerspectiveDr. S. N. L. DasHead, P. G. Department of CommerceRanchi University, RanchiDr. Prabhat Kumar PaniDepartment of CommerceA. B. M College, JamshedpurAbstractManagement is defined as 'getting things done'. A manager accordingly is expected to get desired resultsfrom and through people. For this purpose, he is expected to motivate, that is 'induce' others such that theybehave in the manner in which he wants them to behave. The need for man-management is felt not only at thenational level but also at the level of individual undertakings. An employer can not effectively managemanpower in his organization or keep control on his human resources in relation to both quantity and qualityunless he is fully aware of the manpower resources of his country. A comprehensive man-managementprogramme will be ineffective and of little use, unless it is implemented and an effective control is maintainedby the Manager. In this article it will be discussed as to shall discuss how to enhance the potential of thosewho are aspiring to be managers or those who are already in a position of manager for effective manmanagement.Keywords: Management, Perspective, ATMAIntroductionIn our management education, we havedepended heavily on the concepts andliterature developed in the west. The truth isthat to-day a stage has come when westernscholars are looking for inspiration from theIndian experience; what is it that has helped usto survive for so long as a civilization. It issignificant that the national best seller in theUSA, 'The 7 Habits of Highly Effective People'by Stephen R. Convey is inspired by the wordsof Swami Sivananda, in the followingparagraph in his book 'Self Knowledge'."You have got a particular way of writing invertical way. This is prarabhda (inheritedsituation, condition or tendency). You canchange that writing into slanting way. This ispurushartha (effort). Take care of yourthoughts. Then action will take care of them.Action follows thought. You sow an action andreap a tendency. You sow a tendency and reapa habit. You sow a habit and reap a characteryou sow your character and reap your destiny.Therefore, destiny is your own creation. If youchange your merits you can become master ofyour destiny."The distillate of entire process was givenout in just four words. It is: TO BE ; TO DO : TOSEE : TO TELL'TO B E' is the inner structure of aneffective manager in terms of manmanagement.'TO DO' is the style of amanager by personal example. 'TO SEE' and'TO TELL' are the action of managers.'TO BE' component is very strong. Firstly itis possible to say, that in the totality of thepersonality a manager should be gentleman inthe true sense of the word. It is of interest tonote that the definition of a gentleman and of'STHITHAPRAJNA' (man of steady wisdom asdescribed in the GEETA) is virtually the same.A gentleman has been described as under by awestern scholar:An honest man;A man with a sense of duties andobligations of his position whatever it may be;A man who tells the truth;A man who gives to others their due;A man considerate to the weak;A man who has principles and stands bythem;A man not too elated by good fortune, andnot too depressed by bad;A man who is loyal;A man who can be trusted."-67-

Secondly, every outstanding manager hasan inner hard core to him which is composed ofcertain universal virtues. If we piece thesevirtues to-gether, then, the integrated structurethat emerges can be diagrammatically shownas Figures 1 and 2.Fig 1Universal Inner Structure of GoodManagersofhandlingpeopleof thejobof selfSelfnessbased onan ideal orvisioncouragetodecideInitiativeto be aselfstarwillpowertopersistFig 2Selflessness CompositionHonestyPurityFaithinGodLoyaltyIntergrity'TO DO' is related to think correctly. Anytricky situation could be handled by themanager if he stops to think just once, beforetaking any action. Indian epics are replete withinstances to illustrate the success of such astrategy and there are enough examples toprove to the contrary too.Materials and MethodsThis study is mainly based on the use ofavailable literature in the form of books,journals, reports etc. The approach followed inthis paper is purely textual. The materials usedhave at times been drawn from the website andextreme care has been taken to be objective inapproach.Results and DiscussionsIn Ramayan LAXMANA was a goodbrother, a very good brother. But he was quickto anger and slow to think. When Surpanakhawas teasing him, why did he have to cut hernose and create problems (never underestimateanyone). If one were him, he would have runaway into the jungles with our thinking cap on.Another time, when BHARATA was coming toreturn the throne to RAM, it was LAXMANAwho got excited so quickly that he startedshooting his arrows and RAM had to order himto wait and find out first what was in the mind ofBHARATA; logical, commonsensical and goodthinking.Now RA VAN A was a very wise man. Theten wisest heads were on his shoulders. But hewas not wearing his thinking cap whenSurpanakha came crying. RAVANA, drunk withpower, did not ask her the right questions andbelieved his cunning sister. May be if we werein his situation we would have gone across toRAM and LAXMANA to ask why LAXMANA cuther nose off? The moral of it is simple, that onemust think the thinkable and unthinkable, anduse one's mind to its full capacity instead oftaking short-cuts and creating long termproblems.'TO SEE' and 'TO TELL' components arethe knowledge and action of managers. Themanager's context and role tend to lead himinto a plan of logical argument, practical detailsand deeds. He is generally less inclined towardsdevotion, spirituality and values. But theGEETA, stresse puts, on an organic linkbetween knowledge and action, through themeditation of values. Now, we try to drawmanagerial lessons from GEETA, whichappear germane to this conundrum ofknowledge and action.The Muni or evolved person reaches thestage of YOGA through- KARMA - action.Having made the ascent through action hestays there through SHAMAN-self control.(Sloka 6.3).A senior or top manager has to work ratherhard with great concentration during his yearsin Junior and middle management. Movingahead he reaches senior / top positions, he hasto detach himself from the details, thetemptation of known areas and give himselftime to think, guide and counsel the entireorganization.UDDHARE THATMANAM- lift up the self.How?ATMANA-By the selfA TMANAM NA A VASADA YETH - Do notdown grade and destroy oneself.Who is-ATMANO BANDHUH- one'sfriend? ATMA EVA - one's own self. Be yourown friend.Similarly, who is one's RIPUH- enemy?ATMA - EVA - Again, one's self. Avoidbeing your own enemy.These four guidelines of Sloka 6.5 giveboth hope and warning. They close al the exit-68-Anusandhanika / Vol. III / No. I / January 2011

outes of externalization of responsibility forone's failures. Some managers have atendency to blame their superiors, subordinates,external forces for their problems. Inreality, many problems may arise from theirown unmanaged or mismanaged self.RAHASISTHITAH (Sloka 6.10) indicatesthat a manager should be able, from time totime, to be by himself, cope comfortably withthe inevitable loneliness of his position. Hewould be in touch with his people, accessible tothem, but avoid familiarity. Some task distanceis useful for objectivity, guidance and control.PRATHISTHAPYA (Sloka 6.11) havingcreated oneself. How should a leader seathimself?NA ATHIUCHRITHAM-Not too high; andNA ATHINICHAM-Not too low.A manager should avoid dominating histeam from a high physical or mental posture;as well as the opposite danger of beingoverwhelmed.DISAH (Sloka 6.13) indicates muchdifferent direction. Once a manager decides ona strategy, organization structure, policy orsystem, it is more effective-to concentrate onits implementation. The focus must be suchthat - DISAH CHA NA AVALOKAYOM- notseeing (and getting distracted by) myriaddirections.JAGRATHAH (Sloka 6.16) means quiteawake, alert. The theme of balance isrepeatedly emphasized in the GEETA. Themanager needs to show the quality of NA ATHISWAPNA - not too much sleep, rest (resultingin a free hand to his sub-ordinates).NA ATHI JAGRATO - nor too wide awake,vigilant (thus, reducing the space for his subordinates).He has to strike a via-mediabetween abdication and interference,internally. With respect to the externalenvironment, this balance would help him notto over or under-react.SHANTA RAJASAM (Sloka 6.27)indicates pacified energy. A dilemma formanagerial leaders is how to retain and utilizeenergetic and ambitious sub-ordinates. Thesame human energy is more effective in a stateof SATTVA (refinement), than in a state ofRAJAS (fever). So, the leader has to firstachieve - SHANTA RAJASAM- peace in hisenergy quality and utilization without in anyway descending into TAMAS' (sloth). Then hecan help his sub-ordinates to pacify, retain andimprove the quality of their work.UBHAYA VIBHRASHTAH (Sloka 6.38)means neither here, nor there; losing at bothends. The manager has the temptation that wecan at least succeed in our goals whatever theprocess. But, if we go for the proper means, isthere a danger that I will neither get credit forperformance nor for the means? He may loseout like - CHINNA ABHRAM TV A - scatteringclouds. In a moral organizational culture, this isan understandable fear. Managerial leadershave the responsibility to establish a corporateculture and reward systems - both material andpsychological - to recognize means and ends.Indian culture and epics have many usefulinsights for those engaged in the world ofaction. Managers have to deal with anunending stream of choices as well as decide,initiate, perform or sanction action. Themessages of this paper may be summarizedas under :- The manager must be a universalinner structure and he should think correctly.The manager must strive to remove eviland establish righteousness jn his organization.Be comfortable in the simultaneity ofaction and thought. Seek and utilizeknowledge for correct action.Be personally unsullied by any actionwhich is organizationally necessary. Be a lightwhich light others.Self-driven and self-managing.Must cultivate and sustain qualities ofevenness, compassion, discretion, concentration,alertness, cheer fulness, and positive attitude.ConclusionTo conclude, let us add that a good manmanagementresults, the development of anorganization. If one possesses all the abovequalities, he may become a good manager andabove all the organization will run smoothlyand in an efficient manner.References1. Fayol Henri, General and IndustrialAdministration, New York, Pitman, 19492. Koontz and O'Donnel, Principles ofManagement, McGraw Hill PublishingCompany, New York, 19553. Rudrabasavaraj M. N, Human factor inManagement, Himalaya PublishingHouse, Bombay, 19804. Singh A. D., Man Management in TataSteel, Jamshedpur' The Tata Iron andSteel Co. Ltd., 19745. The Bhagaved Geeta, Chapter VI6. The Valmiki Ramayan; (Sunder Kanda)-69-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 70-73ISSN 0974 - 200XConsumers' satisfaction in using plasticmoney : An analysisTapas Kumar MallickGuest Faculty, MBA DepartmentRanchi University, RanchiAbstractCredit card is the most popular form of plastic money. It enables a person to purchase goods and serviceswithout having to pay for them immediately. In India The Central Bank set up the first credit card operation in1981. The present study aims to analyse the socio-economic profile of sample SBI Card holders, to evaluateconsumer's satisfaction or dissatisfaction and to suggest the measures for improving the credit card businessin India.Keywords: Plastic, card, consumer satisfactionIntroductionCredit card is the most popular version ofplastic money. It has been designed as arectangular thin sheet of plastic, about the sizeof a visiting card, which enables a person topurchase goods and services without having topay for them immediately. Credit cardsoriginated in the United States in the 1930s. Itsuse was widespread by the 1950s. The originsof bank credit have been traced to John C.Biggins, a consumer credit specialist at theF'latbush National Bank of Brooklyn, NewWork. In 1946. he launched a credit plan"Charge it", The Diners group first broughtcredit card to India in 1964. In real sense it wasnot a credit card, it was only a charge card. TheCentral Bank set up the first credit cardoperation in the country with the help of Mastercard in 1981. The first rush into the businesscame way back in the late 1980s with Citibank;the rush peaked around 1993-1994 whenStandard Chartered, among others, came inwith much flourish. The credit card industry inIndia has never had it so good, in its 20 years ofdoing business in this country, it had issued2.69 crore cards till December 2003. Thisffigure skyrocketed to 4.33 crore in 2004 and isexpected to grow to 20 crores by 201 0.Kotler (2000) described satisfaction as "Itis a person's feelings of pleasure ordisappointment resulting from comparing aproducts' perceived performance (or outcome)in relation to his or her expectations." Howardand Sheth (1969) have defined customersatisfaction as "the buyer's cognitive stage ofbeing adequate) or inadequately rewarded forthe sacrifice he/she has undergone."For customer-centered companies,consumer satisfaction is both a goal and amarketing tool. Companies that achieve highcustomer satisfaction rating make sure thattheir target market knows it.Credit Card Players in IndiaSelected foreign players in credit cards inIndia include Citibank, stanchart, HSBC,AMEX and ANZ Grindlays. The Citibank offersvarious credit cards like Gold card, Silver card,Diners card, Women card and. 10C card.Selected Indian players that offer credit card inIndia are Allahabad Bank. Andhra Bank. Bankof Baroda, Central Bank of India. Canara Bank,Dena Ban, State Bank of India.-HDFC Bankand ICICI Bank. The State Bank of India whilelaunching its SBI visa card declared a target of2 million credit card holders in the next threeyears. The Citibank nearly took 8 years toreach the one million mark. The Bank ofBaroda could make 2, 00,000 plus cards in 13years: The SBI is expected to reach 3 millionwith over 25 million accountholders.Materials and MethodsThe study is based on both primary andsecondary data. The structured questionnairefor the sample cardholders was prepared forvarious key issues like consumers' satisfaction-70-

or dissatisfaction. Direct interview wasadopted in the process of collecting primarydata. For this purpose a sample of 100 SBIcardholders are selected. In order to bring outthe differences among various groups of SBICardholders, sample was selected torepresent different cross-sections of thecustomers, such as employees, businessmenand others. As this study involves measurementof satisfaction, three point scales are alsoused.Results and DiscussionsIn this study, an attempt is made at first tostudy the socio-economic profile of sample SBICardholders. The socio-economic profile ofthe people helps in assessing the people'sliving standards, affordability etc.Apart from the above, this study aims atmeasuring the levels of satisfaction of thesample SBI cardholders with regard to cardfeatures & services provided by SBI cardsdivision. Based on the feedback received datawere analysed, interpreted and has beenreported as follows.Table 1 reveals that 93% respondents ofSBI cardholders are males and 70%respondents are female. This clearly indicatesthe status of men who are the bread winners ofthe family and also of the females who aredependents on their husbands. Dependenceon husband's income restricts taking cards bytheir female counterparts.Marital status of the sample respondentsexplains the credit card business coverage inthe life styles of the people. From Table 2 it canbe interpreted that 60% respondents weremarried and 40% respondents wereunmarried. This clearly shows that only thosewho have married and settled in life are gettingattracted towards the credit cards whileunmarried are less attracted in comparison tomarried respondents.The educational qualifications of therespondents influence the purchasingbehaviour of credit cards. From Table 3 it isevident that the majority of credit card holdersare graduates followed by post graduates &others. An analysis of Table 3 reveals that thereis a close relationship between educationalbackground of card holders and interest incredit cards.Occupation in India indicates theeconomic status of credit card holders. Therelevant data relating to occupationalbackground of the credit card holders is shownin Table 4. The data of Table 4 reveals that themajority of respondents are service holders incomparison to businessmen & others. It isinteresting to note that the businessmen werenot interested in credit cards. When enquiredabout the reasons for the same, it wasrevealed that high interest rate is the reason forunpopularity amongst the businessmen inJamshedpur.Annual income of the family decides thelife pattern and buying behaviour of the familymembers, and consequently influences thecard business. Table 5 reveals that the majorportion of the sample respondents were in themiddle income group of Rs. 2,00,000 to5.00,000 followed by Rs. 5,00,000 and above.Table 6 exhibits the sample respondents'promptness in paying the due amount. It isfound that 92% respondents are regular inpayment of dues whereas 8% are irregular inJamshedpur. This indicates that no finalinterest was collected from majoritycardholders.Level of satisfaction among samplecardholdersMeasuring level of satisfaction is aqualitative aspect and poses differentproblems in the process. Therefore a threepoint scale i.e.A. SatisfiedB. DissatisfiedC. Can's say. has been adopted in the study.About five statements were identified tomeasure the level of satisfaction of samplerespondents as shown in Table 7.Table 7 reveals that majority of creditcardholders, i.e. 72 percent responded that thecash withdrawal from ATMs costs them more.71 percent of them agreed on that credit cardagencies offer nothing free as advertised, 65-71-Anusandhanika / Vol. III / No. I / January 2011

percent respondents agreed that it makesthem to buy more when purchases are madewith the help of credit card.Table 8 exhibits consumers' overallopinion about credit card. It is evident fromTable 8 that there is a dissatisfaction regardingjoining fee. annual fee and interest ratecharged by the credit card agencies.Based on the above findings, andpersonal interview the following suggestionsare recommended:Number of merchant establishmentsshould be reduced.Annual fees should be reduced.Cost of printing currency notes by thegovernment can be done away resulting into agreat saving for the Indian economy.Recurring payments should be moved onthe credit card.To expand the business, credit cardissuers should focus on non-metro cities.More number of ATMs should be installed.They should be net-worked so that a customerhaving credit card issued from one agency canalso make use of it at the ATMs of any otheragency.Table 1Gender wise Distribution of SampleRespondentsGender Total No. of respondents % of TotalMale 93 93%Female 07 7%Total 100 100%Table 2Marital status of Sample RespondentsMarital Status No. of Respondents % of TotalMarried 60 60%Unmarried 40 40%Total 100 100%Table 3Educational Background of SampleRespondentsEducationalQualificationNo. of respondents% of TotalUndergraduate 17 17%Graduate 51 51%Post-graduate 32 32%& otherTotal 100 100%Source : Complied from questionnaire dataTable 4Occupational Background ofSample RespondentsOccupation No. of respondents % of TotalService 68 68%Business 06 6%Others 26 26%Total 100 100%Source : Complied from questionnaire dataTable 5Income-wise distribution of SampleRespondentsAnnual Income(in Rs)No. ofrespondents% of TotalLess than 2 Lakhs 16 16%2 Lakh - 5 Lakhs 62 62%5 Lakhs & above 22 22%Total 100 100%Source : Complied from questionnaire dataTable 6Payment pattern of duesby the Sample RespondentsParticulars No. of respondents % of TotalRegular 92 92%Irregular 08 8%Total 100 100%Source : Complied from questionnaire data-72-Anusandhanika / Vol. III / No. I / January 2011

Table 7Consumer's overall experience as credit card holderStatements A B C1) You have to pay more when purchases are made with the help of credit card 56 27 172) It makes you to buy more when purchases are made with the help of credit card 65 25 103) It always cost you to more to withdraw cash from ATM with the help of credit card 72 6 224) Revolving credit forces to make relatively higher payment to credit card agency 65 20 155) The credit card agency offers nothing free of cost as being claimed by them 71 8 21Source : Complied from questionnaire dataFactorsTable 8Consumer's overall opinion about credit card holderA B CA. Information provided by agency on credit cards 53 14 33B. Usefulness of credit cards 74 12 14C. Joining fee charged 29 49 22D. Annual fee charged 23 34 43E. Interest rate charged 06 60 34F. Administrative facilities given 46 24 30Source : Complied from questionnaire dataNo. of respondentsConclusionTo conclude it can be said that use ofplastic money is widely accepted by the peoplebecause of improved payment infrastructureand grace period. Most Indian banks havebeen widening their networks of AutomatedTeller Machines (ATMs) in order to expandtheir business. But it is suggested to users thatthey should use it with care avoidingoverspending and the issuers should becontrolled with proper regulations fromauthorities concerned.References1. Business India, Coming together, February 23& March 8, 1998, p1162. Business standard, July 5,1999, p 83. Business world, Plastic bombing thehinterland, November 22 & December 6,1998, pp 62 & 874. Business world, What credit cards firmswon't tell you, June 22 & July 6, 1998, pp108-1095. Indian Journal of Commerce, Vol. 54, No3, July - September, 2001, pp 53-646. Reserve Bank of India, Credit cardoperations of banks - Guidelines, Datedst21 November, 2005. http://banknetindia.com7. Business Line, Plastic rules need reform,March 18, 2003, http://blonnet. com-73-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 74-77ISSN 0974 - 200XNetwork Marketing - An emerging professionKeywords: Network marketing, Profession, Multi-level Marketing (MLM)IntroductionMaterials and MethodsToday we are witnessing the steadydestruction of the traditional employmenteconomy, in which workers sell their time to acompany in exchange for money and sell theirexperience in exchange for security. Thistraditional structure is being replaced by asingle, massive interconnected economy inwhich money, people, companies, ideas, andtechnologies are totally fungible. In this neweconomy, spectacular growth and severedislocations are occurring side by side. It is aneconomy that is choking off the moretraditional methods of generating secureincome but at the same time is spawning newopportunities. Business Week recentlyassessed this development and its impact onworkers, “Just as the new Economy isdismantling the old rules of commerce, and thenew workforce is shredding the contractsbetween employers and employees.Employers are giving up rigid wage scales infavor of flexible compensation. They arelearning to live with high turnover andabolishing seniority-based pay. What willremain is an altered employment relationshipin which increasingly independent workersnegotiate their own way through their careers.”Many professionals understand thesechanges and are altering their careers andtheir strategies for generating wealth andincome accordingly.O.P. KhandelwalReader, Department of CommerceL.B.S.M. College, JamshedpurDr. G.P. TrivediReader, Department of CommerceMarwari College, RanchiAbstractEvery year, thousands of men and women leave established, lucrative careers to pursue new opportunities inthe booming network marketing industry- an industry that is now attracting former doctors, universityprofessors, company managers, CEOs, lawyers, real state developers and others seeking independenceand financial rewards. Serious professionals from many fields are taking either their first look or a fresh look,at network marketing. These New professionals are not only changing the face of network marketing but arealso having a broad impact on the business world as a whole.-74-The present research work has beencarried out on the basis of secondary source ofinformation. The secondary source providesthe standard information related to thisbusiness, (most of them written by those whoare a “brand” in themselves in this business ofNETWORK MARKETING.) The Secondarydata relate to the information that is availablethrough various books, magazines, articles,information over the internet and theinformation from the voucher’s of various MLMcompanies.Results and DiscussionsOne of the most exciting trends inbusiness today, “Network Marketing”, alsoknown as Multi – Level Marketing (MLM)“Relationship Marketing” and “Multi-leveldirect selling” is an important component of theDirect Selling Industry. It has proven overmany years to be a highly successful andeffective method of compensation of the directselling firms for distributing products andservices directly to consumers, whichcompensates independent salespersons ordistributors. Network Marketing is a marketingconcept which can be applied to almost anyconsumer product or service. It is not a get richquick scheme rather than it is a get rich quicksystem.Multi-level marketing and networkmarketing are synonymous terms. Industry

folklore documents that multilevel marketingwas the initial title given to this channel ofdistribution in the year 1940s. Multilevelmarketing was descriptive of compensationplans in which commissions were paid onsales made at "multiple levels" or "multipletiers" down a vertically structured salesorganization.The structure is designed to create amarketing and sales force by compensatingpromoters of company products not only forsales they personally generate, but also for thesales of other promoters they introduce to thecompany, creating a down line of distributorsand a hierarchy of multiple levels ofcompensation.Network marketing is the preferred termfor the new millennium because in MLMpersons build their own network. Networking isa process in which individuals help otherindividuals achieve separate goals. It is notteamwork, where each member works towarda common end. In fact networkers need nothave anything in common with each other. Thediversity offers even more opportunity for tradeIf one wants to become rich , you need to learnhow to build a business network . If you reallywant to learn how to be rich, you must begin toknow and understand the power found innetworks. The richest people in the world buildnetworks.Network marketing is a specific type ofnetwork in which an entrepreneur has themerchandising rights to a product or service,and may sponsor (or recruit) others into theassociation, sharing with them the proceedsfrom the business generated. In somecompanies a person may even earn bonusesfor volume generated by the distributers thathis own distributers recruit. The same processmay extend to yet another level of distributors,and another. One signs up Rohit, he signs upRahul, who signs up Vishal, and you earnbonuses from the volume of them all. Within ashort time you could end up with dozens ofdistributors or independent business people inthe network. Each one is earning you yetanother small bonus. Those small bonusessometimes add up to a lot of money.Network marketing places the appropriateemphasis on person-to-person communicationand relationship building and nurturingprocesses at the core of this marketingchannel. Network marketing based oninterpersonal communication can be linkeddirectly to information technology, the focus ondistribution processes related to efficientlyserving consumers and maximizing satisfaction,and the global, multicultural economy, which ishighly dependent on person-to-personcommunications.Network marketing -historically disparagedas pyramid schemes for schemers andsuckers – is today emerging as the mostpowerful distribution method and the mostappealing enterprise model in the neweconomy. It is an approach to sales andentrepreneurship so powerful that traditionalcompanies, struggling to find new ways toreach a fragmented market while containingthe prohibitively high costs of full-time salesforces and national advertising campaigns, arenow borrowing its best features to apply to theiroperations.Network Marketing is a professionalcarrier that offers us to nurture and empowerthe inherent talents of all those persons whomwe sponsor. In this business success meansthe chance to develop spiritually, intellectually,emotionally, and financially, while wecontribute in a positive way to others. Realnetwork marketing is about creating a cultureof integrity, then teaching principles and skillsthat create consistency and developscharacter. The success will come not fromchanging others, but from changing ourselves.Building a large growing network is not aneasy job however it is simple. If one is going tofollow a step – by – step system – one canachieve massive lasting success in NetworkMarketing.Network Marketing business opportunitywill give the opportunity to create that passiveresidual leveraged income, work from yourhome, spend time with family, travel, buildmassive wealth, tax benefits, work with thebest quality of people who are big thinkers, thesupport and training working with a successfulteam of professionals and create the two mostimportant factors which is financial and timefreedom. One must have both of these so onecan really live life on own terms. One withoutthe other is not living a life of freedom.-75-Anusandhanika / Vol. III / No. I / January 2011

Network marketing business opportunityalso will teach not only to become a massivesuccess financially but also how to deal withlife challenges. How to move from living inproblems of life, so that one can start to live inthe solution, like true business professionals.The MLM business industry is growing so fastbecause it teaches people to also grow ashuman beings and to work together formaximum success in all areas of your life. Tothis day a traditional business will never giveyou this many benefits. MLM businessopportunity is creating millionaires muchquicker than a traditional business ever will. Itmay be said that the right concept along withthe appropriate attitude towards the businessof MLM, shall act as not only as a means toattain financial freedom , growth and prosperitybut shall also help in addressing the basicprinciple of human birth, which is ‘Success’, asthe same happens to be the birth right of a soul.People must always be successful withoutdefeating or destroying others and this verybusiness concept works upon the concept ofhelping and growing all those who are attachedto a common goal or aim, i.e. To attain thevirtues of team building, growing together andattaining financial freedom. One thing hauntedthe mind of the researcher as to why people donot have a fair and positive idea about MLMwhen it is an effective way of building one’sfinancial health and in what way and to whatextent it becomes a key to success.ConclusionThe world has finally awakened to the ideathat the Industrial Age is over and we areofficially entering the Information Age. Bigbusiness such as Maruti Motors and TISCOand TELCO are Industrial Age businesses.Franchises such as Mcdonalds are transitionbusinesses. The transition between theIndustrial Age and the Information Age.Network Marketing business are trulyInformation age franchises simply becausemost network marketing businesses runalmost solely on information, rather than land,factories and employees.Our parents always said “Go to school andget good grades, so that you can get securehigh paying job with benefits that are classicIndustrial Age thinking.” Those are all old ideasfrom the industrial Age. Today most of us know-76-job security is a joke and lifetime employmentwith one company is not a reality for mostpeople. Today people need new ideas andsystems via which they can find the financialsecurity our parents once had. NetworkMarketing gives millions of people throughoutthe world the opportunity to take control of theirlives and their financial future. That is why theMLM Industry will take time to grow, eventhough old world thinkers fail to see it. This newform of business is a revolution simplybecause for the first time in history it is nowpossible for anyone and everyone to share inthe wealth that has been reserved only for thechosen few or lucky.References1. Marshal Cohen, Why customers do whatthey do, Who they are, Why they buy, andhow you can anticipate their every move,Tata McGraw-Hill Publishing companyLtd., 20062. Ramaswamy V.S. & Namakumari S.,Marketing Management: Global perspective,Indian context, 4th Edition, MacmillanPublishers India Ltd, New Delhi, 20093. Kotler, Philip, Keller Kevin Lane, KoshyAbraham, Jha Mithileshwar (2009)Marketing Management: A South AsianPerspective, 13th edition, DorlingKindersley (India) Pvt. Ltd., licensees ofPearson Education in South Asia., Delhi,India, 20094. King Charles W. and Robinson, JamesW., The new professionals: The Rise ofNetwork marketing As the Next MajorProfession, Three Rivers Press, NewYork, 20005. Bloch B., Multilevel marketing: What’s thecatch? Journal of Consumer Marketing,13(4), 1996, pp18-266. Peterson R.A. & Jones R.A., What isdirect seling? Definition, perspectives,and research agenda, The Journal ofPersonal Selling & Sales Management,16(4), 1996, pp 1-87. Coughlan A.T. & Grayson K., Networkmarketing organizations: Compensationplans, retail network growth, andprofitability, International Journal ofResearch in Marketing, 15, 1996, pp 401-426Anusandhanika / Vol. III / No. I / January 2011

8. Kiyosaki Robert T. with Lechter. SharonL., C.P.A., The Authors of Rich Dad PoorDad, The Business School: For Peoplewho like helping people, ManjulPublishing House Pvt. Ltd., Bhopal. India,20059. Gage Randy, How to build A Multi-LevelMoney Machine: The science of NetworkMarketing, Manjul Publishing House Pvt.Ltd. Bhopal, India, 200410. Beverly Nadler, Multi Level Marketingreproduced from January 94 issue ofBusiness Connection11. Robert L. Fitz Patrick The Myth of IncomeOpportunity in Multi-Level MarketingRFitzPatrick@PyramidSchemeAlert.comhttp://www.PyramidSchemeAlert.org12. Peterson R. A. & Wotruba T.R., What isDirect Selling? Definition, perspectives,and research agenda, The Journal ofPersonal Selling & Sales Management,16(4), 1996, pp 1-813. Raymond M.A. & Tanner J.F. Jr.,Maintaining customer relationships indirect sales: Stimulating repeat purchasebehavior, journal of Personal Selling &Sales Management, 1996, p 14(3)14. Gage Randy, How to Build A Multi-LevelMoney Machine-The Science of NetworkMarketing, Manjul Publishing House Pvt.Ltd., Bhopal, India, 200415. David Roller David, How to Make BigMoney in Multi Level Marketing, PrenticeHall Press, 198916. Yarnell Mark and Rene Reid Yarnell, YourFirst Year in Network Marketing, ThreeRivers Press, Newyork, Originallypublished by Prima Publishing, California,USA, 199817. Szajna Janusz, Network Marketing theWay of Life” Manjul Publishing House Pvt.Ltd. Bhopal, India. Originally published byProgress Int. Kerns Rd. Burlinton, L-7P1P7, Canada, 200318. Helmstetter Shad, Ph. D., Network ofChampions – What’s Right About AmericaAnd How To Be A Part Of It!, Chapel &Croft Publishing Inc. USA, 199519. The DSA – The Direct Selling Associationhttp//www.dsa.org/20. The MLMIA – Multi Level MarketingInternational Association http//www.mlmia.com/21. The DRA – The Distributors RightsAssociation http//www.mlm-dra.com/22. The FTC – The Federal Trade Commission http//www.ftc.gov/23. The IDSA - The Indian Direct SellingAssociation, http//www.indiandsa.com-77-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 78-84ISSN 0974 - 200XAiming Zero Waste in the 21st century :Idealistic dream or realistic goal?Shabbir HussainDepartment of Commerce & Business ManagementRanchi University, RanchiIntroductionMunicipal solid waste management is oneof the most serious and most neglected areasof urban development which create environmentalhazards confronting municipalities. Municipalsolid waste (MSW), also called urban solidwaste, is a waste type that includespredominantly household waste (domesticwaste) with sometimes the addition ofcommercial wastes collected by a municipalitywithin a given area. They are in either solid orsemisolid form and generally excludeindustrial hazardous wastes. The term residualwaste relates to waste left from householdsources containing materials that have notbeen separated out or sent for reprocessing.• Biodegradable waste: food and kitchenwaste, green waste, paper (can also berecycled).• Recyclable material: paper, glass, bottles,cans, metals, certain plastics, etc.• Inert waste: construction and demolitionwaste, dirt, rocks, debris.• Composite wastes: waste clothing, TetraPacks, waste plastics such as toys.• Domestic hazardous waste (also called"household hazardous waste") & toxicwaste: medication, e-waste, paints,chemicals, light bulbs, fluorescent tubes,spray cans, fertilizer and pesticidecontainers, batteries, shoe polish.AbstractThis article provides a brief introduction to solid waste management. Today, the demands of the new century(let alone the new millennium) require that we find ways to manage our discarded materials in such a way asnot to deprive future generations of an equitable share in those resources. More than anything else ZeroWaste is a challenge to our most positive instincts: individual responsibility, community spirit, creativity andfree enterprise. It won't happen without dedicated hard work from community activists, visionary officials andsmall business entrepreneurs. It won't happen overnight and it won't happen everywhere at once. But it ishappening in some places right now. Education and awareness in the area of waste and waste managementis increasingly important from a global perspective of resource management.Keyword - solid waste management, zero waste, recycling, local government, environment-78-Resource conservation, reduced consumption,product redesign, careful materials selection,new rules and incentives, and materials reuse,recycling, and composting have never beensuch a necessity as they are today. Rapidaction to reduce GHG emissions, withimmediate attention to those gases that pose amore potent risk over the short term, is nothingshort of essential. Methane is one of only a fewgases with a powerful short-term impact, andmethane and carbon dioxide emissions fromlandfills and incinerators are at the top of ashort list of sources of GHG emissions thatmay be quickly and cost-effectively reduced oravoided.The only effective method to preventmethane emissions from landfills is to stopbiodegradable materials from enteringlandfills. The good news is that landfillalternatives such as composting andanaerobic digestion are readily available andcost-effective. Compost has the added benefitof adding organic matter to soil, sequesteringcarbon, improving plant growth and reducingwater use - all important to stabilizing theclimate.Aiming for Zero WasteThe good news is that preventing wasteand expanding reuse, recycling andcomposting - that is, aiming for zero waste - isone of the fastest, cheapest and most effective

strategies available for combating climatechange.We suspect when most people first hearthe term Zero Waste they think the whole ideais 'pie-in-the-sky' or the vision of some hippiecommunity. However, when one learns thatZero Waste policies have been adopted byCanberra, the capital of Australia, 12 cities inNew Zealand, leading corporations likeHewlett Packard, Bell Canada and FetzerWineries, as well as one of the mostconservative counties in California, one'sattitude changes.'Zero Waste' as a term works better than'100% recycling' because the latter visionseems to imply that the community has to doeverything. Zero Waste requires the need fordual responsibility. First, the community has tomaximize reuse, repair, recycling andcomposting and secondly industry has toredesign the objects the community cannotreuse, repair, recycle or compost. And, ofcourse, both industry and the community needto reduce wasteful practices like overpackagingand over consumption.As Bill Sheehan of the Grass RootsRecycling Network and avid promoter of ZeroWaste says, "Zero Waste is a design principle.If we plan for eliminating waste, whether wereach 100% elimination is not the point. Thepoint is to start planning for the elimination ofwaste rather than managing waste." Thisquote nicely summarizes the paradigm shiftfrom 20th Century Waste Management to 21stCentury Resource Management. If you askeda responsible government official in the 20thCentury how waste should be handled, he orshe would probably have said, "To get rid of thewaste in ways which minimize threats tohuman health and the environment." Today,the demands of the new century (let alone thenew millennium) require that we find ways tomanage our discarded materials in such a wayas not to deprive future generations of anequitable share in those resources. Such arequirement is the linch-pin of the concept of'sustainability.' In fact, applied correctly thestrategy for Zero Waste not only drives towardssustainability, but also Clean Production andEnvironmental Justice.Clearly, there is a huge need for the kind ofcreativity that private enterprise can offer inZero Waste strategies. Ironically, one of thedisastrous mistakes that a number ofdeveloped and developing countries areentertaining at present is the 'privatization ofthe waste industry.' This model envisageshanding over all collection and disposal to thewaste disposal industry. Here governmentswill not be encouraging resource recovery butwaste disposal. This kind of privatizationneeds to be fought tooth and nail. It represents'waste' management in the corporate interestas opposed to the community interest.In addition to meeting the globalimperatives of the 21st Century, there are twoenormous pay-offs to the municipalities whopursue the Zero Waste option: a) thegeneration of jobs and b) the generation ofcommunity spirit.As far as community spirit is concerned,there are vast numbers of parents and childrenwho want to play their part in moving towards amore sustainable future for our planet With justa little seed money from governments they canalso provide a tremendous platform in everycommunity to educate the wider public on thesimple habits and activities which can makethe job of local government so much easier,e.g. backyard and community composting.Even more exciting is the creation ofcommunity gardens in our cities. These notonly add colour to grimy parts of the city ("Theearth smiles with flowers") but also represent amarvellous opportunity to use up local organicwaste.Local, regional, and global air pollution;accumulation and distribution of toxic wastes;destruction and depletion of forests, soil, andwater; depletion of the ozone layer andemission of "green house" gases havethreatened the survival of humans andthousands of other living species, the integrityof the earth and its biodiversity, the security ofnations, and the heritage of future generations.Education and awareness in the area ofwaste and waste management is increasinglyimportant from a global perspective ofresource management. It is high- time for us towake up and realize the secret life of garbage,what happens to it when it’s “thrown away” andits impact on the world.-79-Anusandhanika / Vol. III / No. I / January 2011

Materials and MethodsResearchers are continually striving tolearn more about what new action has beentaken up in the area of waste and wastemanagement. The two major sources ofimformation that supply the data related to thewaste management process or perspective ofthis article are primary and secondary sources.The Primary source includes directobservation of practicing of municipalities, theuse of interviews, surveys through questionnaire,speeches and presentation of the officials ofRanchi Municipal Corporation, Ranchi.The secondary sources are publications,research-based as well as popular. Theseinclude academic journals, textbooks on wastemanagement, new periodicals, documentary,proceedings of conferences, governmentpublications, etc. This article will be beneficialfor creating awareness and impartingeducation to one and all in the area wastemanagement and providing civic sense ofresponsibility.Results and DiscussionsWaste management is the collection,transport, processing, recycling or disposal,and monitoring of waste materials. The termusually relates to materials produced byhuman activity, and is generally undertaken toreduce their effect on health, the environmentor aesthetics. Waste management is alsocarried out to recover resources from it. Wastemanagement can involve solid, liquid, gaseousor radioactive substances, with differentmethods and fields of expertise for each.Waste management practices differ fordeveloped and developing nations, for urbanand rural areas, and for residential andindustrial producers. Management for nonhazardouswaste residential and institutionalwaste in metropolitan areas is usually theresponsibility of local government authorities,while management for non-hazardouscommercial and industrial waste is usually theresponsibility of the generatorWaste management conceptsThere are a number of concepts aboutwaste management which vary in their usagebetween countries or regions. Some of themost general, widely used concepts include:mostfavouredoptionleastfavouredoptionPreventionminimisationreuserecyclingenergy recoverydisposal• Waste hierarchy - The waste hierarchyrefers to the "3 Rs" reduce, reuse andrecycle, which classify waste managementstrategies according to their desirability interms of waste minimization. The wastehierarchy remains the cornerstone ofmost waste minimization strategies. Theaim of the waste hierarchy is to extract themaximum practical benefits from productsand to generate the minimum amount ofwaste.• Extended producer responsibility -Extended Producer Responsibility (EPR)is a strategy designed to promote theintegration of all costs associated withproducts throughout their life cycle(including end-of-life disposal costs) intothe market price of the product. Extendedproducer responsibility is meant to imposeaccountability over the entire lifecycle ofproducts and packaging introduced to themarket. This means that firms whichmanufacture, import and/or sell productsare required to be responsible for theproducts after their useful life as well asduring manufacture.• Polluter pays principle - the PolluterPays Principle is a principle where thepolluting party pays for the impact causedto the environment. With respect to wastemanagement, this generally refers to therequirement for a waste generator to payfor appropriate disposal of the waste.Methods of DisposalDiagram of the waste hierarchy1. Integrated waste managementIntegrated waste management using LCA(life cycle analysis) attempts to offer themost benign options for waste management.For mixed MSW (Municipal Solid Waste) anumber of broad studies have indicatedthat waste administration, then source-80-Anusandhanika / Vol. III / No. I / January 2011

separation and collection followed byreuse and recycling of the non-organicfraction and energy and compost/fertilizerproduction of the organic waste fractionvia anaerobic digestion to be the favouredpath. Non-metallic waste resources arenot destroyed as with incineration, andcan be reused/ recycled in a futureresource depleted society.2. LandfillDisposing of waste in a landfill involvesburying the waste in abandoned orunused quarries, mining voids or burrowpits. A properly designed and wellmanagedlandfill can be hygienic andinexpensive. Poorly managed landfillscan create adverse environmentalimpacts such as wind-blown litter,attraction of vermin, generation of liquidleachate, greenhouse gas (mostlycomposed of methane and carbondioxide), which can create odourproblems, kill surface vegetation.3. IncinerationIncineration or "thermal treatment" is adisposal method common in countriessuch as Japan in which solid organicwastes are subjected to combustion so asto convert them into residue and gaseousproducts. This method is useful fordisposal of residue of both solid wastemanagement and solid residue fromwaste water management. This processreduces the volumes of solid waste to 20to 30 percent of the original volume.4. RecyclingRecycling refers to the collection andreuse of waste materials such as emptybeverage containers, copper such aswire, steel food and aerosol cans, old steelfurnishings or equipment , polyethyleneand PET bottles, glass bottles and jars,paperboard cartons, newspapers, magazinesand light paper, and corrugated fiberboardboxes collected from general waste usingdedicated bins and collection vehicles, orsorted directly from mixed waste streams.PVC, LDPE, PP, and PS (see resinidentification code) are also recyclable.These items are usually composed of asingle type of material, making them-81-relatively easy to recycle into newproducts. The recycling of complexproducts (such as computers andelectronic equipment) is more difficult,due to the additional dismantling andseparation required.5. SustainabilityThe management of waste is a keycomponent in a business' ability tomaintaining ISO14001 accreditation.Companies are encouraged to improvetheir environmental efficiencies eachyear. One way to do this is by improving acompany’s waste management with anew recycling service. (such as recycling:glass, food waste, paper and cardboard,plastic bottles etc.)5.1. Biological reprocessingWaste materials that are organic in nature,such as plant material, food scraps, andpaper products, can be recycled usingbiological composting and digestionprocesses to decompose the organicmatter. The resulting organic material isthen recycled as mulch or compost foragricultural or landscaping purposes. Inaddition, waste gas from the process(such as methane) can be captured andused for generating electricity and heat(CHP/cogeneration) maximising efficiencies.Methods of biological decomposition aredifferentiated as being aerobic oranaerobic methods, though hybrids of thetwo methods also exist.5.2. Energy recoveryThe energy content of waste products canbe harnessed directly by using them as adirect combustion fuel, or indirectly byprocessing them into another type of fuel.Recycling through thermal treatmentranges from using waste as a fuel sourcefor cooking or heating, to anaerobicdigestion and the use of the gas fuel (seeabove), to fuel for boilers to generatesteam and electricity in a turbine.Pyrolysis and gasification are two relatedforms of thermal treatment where wastematerials are heated to high temperatureswith limited oxygen availability.Anusandhanika / Vol. III / No. I / January 2011

6. Avoidance and reduction methodsAn important method of waste managementis the prevention of waste material beingcreated, also known as waste reduction.Methods of avoidance include reuse ofsecond-hand products, repairing brokenitems instead of buying new, designingproducts to be refillable or reusable (suchas cotton instead of plastic shoppingbags), encouraging consumers to avoidusing disposable products (such asdisposable cutlery), removing anyfood/liquid remains from cans, packagingand designing products that use lessmaterial to achieve the same purpose (forexample, lightweighting of beveragecans).Solid Waste Management Facility: RanchiMunicipal Corporation, JharkhandRanchi Municipal Corporation, in Jharkhand,India is struggling to implement its plan to builda solid waste management facility in the statecapital due to problems of finding land. Thecivic body needs 45 acres to build the facility,and has now turned to the district administrationto help it acquire the necessary space. Atpresent, the corporation dumps wastegenerated by the city's household at an 11 acrearea in Jhiri village near Ratu, about 25 kmfrom Ranchi. It also possesses a 22-acre plotin Kanke, which it has not utilised for wastedisposal. Rs 513 million ($11.5 million) hasbeen allocated to RMC under JawaharlalNehru National Urban Renewal Mission(JNNURM) for setting up the plant that willconvert biodegradable waste into biofertilisersand non-biodegradable wastes intobricks. However, the space available with themunicipal corporation is inadequate to set up asolid waste management plant, even whenclubbed together. Besides, they are located indifferent places on the city's outskirts.RMC chief executive officer DipankarPanda has urged the deputy commissioner togive land to set up the plant as soon aspossible. RMC has asked deputy commissionerK.K. Sone to consider handing over a 35-acreplot belonging to the government in Jhiri, toRMC to serve the purpose of installing the solidwaste management plant. The plot housed theCharwaha Vidyalaya earlier, now abandoned.After examining technical bids, the civicbody drew up a list of eight firms which wouldinstall and manage the plant under a publicprivatepartnership (PPP) model. The firmsare:• Hanjer Bio-Tech Energies Pvt. Ltd• IL&FS Waste Management and UrbanServices Ltd• Jusco• Jindal• Urban Infrastructure Ltd• Ramky Enviro Engineers Ltd• SMS Infrastructure Ltd• SPML Infra Ltd• A2Z Infrastructure LtdThe civic body, however, wants to securesufficient land before making a final selection.Time for action is now - A 12-step plan - Inorder for a zero waste strategy to reduce GHGemissions by 406 megatons CO2 eq. per yearby 2030, the following 12 priority policies areneeded:1. Implement 20-year national, state-wideand municipal zero waste targets: Anyzero waste target or plan must beaccompanied by a shift in funding fromsupporting waste disposal to supportingzero waste jobs, infrastructure and localstrategies.2. Retire existing incinerators and haltconstruction of new incinerators andlandfills: The use of incinerators andinvestments in new disposal facilities -including mass burn, pyrolysis, plasma,gasification other incineration technologies,and landfill “bioreactors” - obstruct effortsto reduce waste and increase materialsrecovery. Eliminating investments inincineration and landfilling is an importantstep to free up taxpayer money forresource conservation, efficiency andrenewable energy solutions.3. Levy a per-ton surcharge on land filledand incinerated materials: Surcharges onboth landfills and incinerators are animportant counterbalance to the negativeenvironmental and human health costs ofdisposal that are borne by the public.-82-Anusandhanika / Vol. III / No. I / January 2011

4. Stop organic materials from being sent tolandfills and incinerators: Implement local,state and national incentives, penalties orbans to prevent organic materials,particularly food discards and yardtrimmings, from ending up in landfills andincinerators.5. End state and federal “renewable energy”subsidies to landfills and incinerators:Incentives such as the RenewableElectricity Production Tax Credit andRenewable Portfolio Standards shouldonly benefit truly renewable energy andresource conservation strategies, such asenergy efficiency and the use of wind,solar and ocean power. Resourceconservation should be incentivized as akey strategy for reducing energy use. Inaddition, subsidies to extractive industriessuch as mining, logging and drilling shouldbe eliminated. Instead, subsidies shouldsupport industries that conserve andsafely reuse materials.6. Provide policy incentives for locally-basedreuse, recycling and composting:Incentives should be directed to revitalizelocal economies by supportingenvironmentally just, community-basedand green materials recovery jobs andbusinesses.7. Expand Pay-As-You-Throw (PAYT)programs: Adoption of per-volume or perweightfees for the collection of trash, suchas PAYT, has been proven to increaserecycling and reduce the amount of wastedisposed.8. Make manufacturers responsible forproducts and packaging: Manufacturedproducts and packaging represent 72.5percent of all municipal solid waste. Whenmanufacturers are responsible forrecycling their products, they use lesstoxic materials, consume fewer materials,design products to last longer, createbetter recycling systems, are motivated tominimize waste costs and no longer passthe cost of disposal to the government andthe taxpayer.9. Regulate single-use plastic products and-83-packaging: In less than one generation,the use and disposal of single-use plasticpackaging has grown from 120,000tons/year in 1960 to 12,720,000 tons/yeartoday. Policies such as bottle depositlaws, polystyrene food takeout packagingbans and regulations targeting single-usewater bottles and shopping bags havesuccessfully been implemented in severaljurisdictions around the world, and shouldbe replicated everywhere.10. Regulate paper packaging and junk mail:Reducing and recycling paper willdecrease releases of numerous air andwater pollutants to the environment, andwill also conserve energy and forestresources, thereby reducing greenhousegas emissions.11. Reject climate protection agreementsthat incorporate burning and disposal:Decision-makers and environmentalleaders should reject climate protectionagreements and strategies that embracelandfill and incinerator disposal. Ratherthan embrace agreements and blueprintsthat call for supporting waste incinerationas a strategy to combat climate change,such as the U.S. Conference of MayorsClimate Protection Agreement, decisionmakersand environmental organizationsshould adopt climate blueprints thatsupport zero waste. One example of anagreement that will move cities in the rightdirection for zero waste is the UrbanEnvironmental Accords signed by 103 citymayors worldwide.12. Assess the true climate implications of thewaste sector: Measuring greenhousegases over the 20-year time horizon, aspublished by the Intergovernmental Panelon Climate Change, is essential to revealthe impact of methane on the short-termtipping point. Also needed are updates tothe U.S. EPA's Waste Reduction Model(WARM), a tool for assessing greenhousegases emitted by solid waste managementoptions, as well as new models toaccurately account for the impact of localactivities on total global emissions and tocompare the lifecycle climate impact ofdifferent energy generation options.Anusandhanika / Vol. III / No. I / January 2011

ConclusionBottom Line, by cutting waste, we wouldnot only better protect the planet's climate, wewould also double or triple the life of existinglandfills, eliminate the need to build expensivenew incinerators and landfills, create jobs,build healthier and more equitable communities,restore the country's topsoil, conservevaluable resources and reduce our reliance onimported goods and fuels. More than anythingelse Zero Waste is a challenge to our mostpositive instincts: individual responsibility,community spirit, creativity and free enterprise.It won't happen without dedicated hard workfrom community activists, visionary officialsand small business entrepreneurs. It won'thappen overnight and it won't happeneverywhere at once. But it is happening insome places right now.References1. Brenda Platt, Eric Lombardi: Stop trashingthe climate, Courtesy of Biocycle - AdvancingComposting, Organics Recycling &Renewable Energy , August 25, 20082. J.P.A. Hettiaratchi, J.N. Meegoda, H.N.Hsieh, C.A. Hunte, Sustainable managementof household solid waste, Courtesy ofInternational Journal of Environment andWaste Management (IJEWM), July 7, 20103. Kumar Suresh, Waste to energy plants –management issues and current practices,Courtesy of National Institute forInterdisciplinary Science and Technology,Trivandrum , December 21, 20074. Khajuria Anupam, Matsui Takanori, MachimuraTakashi, Morioka Tohru, Assessment of thechallenge of sustainable recycling ofmunicipal solid waste management inIndia ,Courtesy of International Journal ofEnvironmental Technology and Management(IJETM) , August 2, 20105. Sheehan Bill; Zero Waste - A New Visionfor the 21st Century; Waste Not - TheReporter for Rational ResourceManagement # 463 - August 2000; Lastmodified: October 09, 20086. www.wikipedia.org7. www.ranchimunicipal.com-84-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 85-93ISSN 0974 - 200XAviation Safety Management - A dire needKeyword - Aviation, Accident, Fatalities, Safety, PrecautionIntroductionAn aviation accident is defined as anoccurrence associated with the operation of anaircraft which takes place between the timeany person boards the aircraft with theintention of flight and all such persons have notdisembarked, in which a person is fatally orseriously injured, the aircraft sustains damageor structural failure or the aircraft is missing oris completely inaccessible. An aviation incidentis also defined as an occurrence other than anaccident, associated with the operation of anaircraft, which affects or could affect the safetyof operations. An accident in which thedamage to the aircraft is such that it must bewritten off, or in which the plane is destroyed iscalled a hull loss accident.When measured on a passenger-distancecalculation, air travel is the safest form oftransportation available. A typical statement isthis one by the BBC: "UK airline operations areamong the safest anywhere. When comparedagainst all other modes of transport on a fatalityper mile basis air transport is the safest — sixtimes safer than traveling by car and twice assafe as rail." However, when measured byfatalities per person transported, buses are thesafest form of transportation and the numbersof air travel fatalities per person are surpassedonly by bicycles and motorcycles. This statisticis the one used by the insurance industry whencalculating insurance rates for air travel. Forevery billion kilometers traveled, trains have afatality rate 12 times larger than air travel, whileautomobiles have a fatality rate 62 timesBrajesh KumarFaculty, MBA DepartmentBirsa Institute of Technology Trust, RanchiAbstractAviation safety has come a long way in over one hundred years of implementation. In modern times, twomajor manufacturers still produce heavy passenger aircraft for the civilian market: Boeing in the UnitedStates of America and the European company Airbus. Both have placed huge emphasis on the use ofaviation safety equipment, now a billion-dollar industry in its own right, and made safety a major sellingpoint—realizing that a poor safety record in the aviation industry is a threat to corporate survival.-85-larger. On the other hand, for every billionjourneys, buses are the safest form oftransportation. By the last measure airtransportation is three times more dangerousthan car transportation and almost 30 timesmore dangerous than bus.A 2007 study by Popular Mechanics foundthat passengers sitting at the back of a planeare 40% more likely to survive a crash thanthose sitting in the front, although this articlealso quotes claims that there is no safest seat.The article studied 20 crashes, not taking inaccount the developments in safety after those1accidents . However, a flight data recorder isusually mounted in the aircraft's empennage(tail section), where it is more likely to survive asevere crash.Some major safety devices now requiredin commercial aircraft involve:• Evacuation slides — aid rapid passengerexit from an aircraft in an emergencysituation.• Advanced avionics - Computerized autorecoveryand alert systems.• Turbine engines - durability and failurecontainment improvements• Landing gear - that can be lowered evenafter loss of power and hydraulics.Materials and MethodsWhile preparing this research article focushas been kept on aviation safety and relatedaccidents by different airline carrier ofrespective countries. Both primary as well as

secondary sources of information have beentaken into consideration. Substantial care hasbeen taken to be objective and correct in thepresentation of facts.Results and DiscussionsAir safety is a term encompassing thetheory, investigation and categorization offlight failures, and the prevention of suchfailures through regulation, education andtraining. It can also be applied in the context ofcampaigns that inform the public as to thesafety of air travel. During the 1920s, the firstlaws were passed in the USA to regulate civilaviation. Of particular significance was the AirCommerce Act,1926, which required pilots andaircraft to be examined and licensed, foraccidents to be properly investigated, and forthe establishment of safety rules andnavigation aids, under the Aeronautics Branchof the Department of Commerce.Despite this, in 1926 and 1927 there werea total of 24 fatal commercial airline crashes, afurther 16 in 1928, and 51 in 1929 (killing 61people), which remains the worst year onrecord at an accident rate of about 1 for every1,000,000 miles (1,600,000 km) flown. Basedon the current numbers flying, this wouldequate to 7,000 fatal incidents per year. Thefatal incident rate has declined steadily eversince, and, since 1997 the number of fatal airaccidents has been no more than 1 for every2,000,000,000 person-miles flown (e.g., 100people flying a plane for 1,000 miles (1,600km) counts as 100,000 person-miles, making itcomparable with methods of transportationwith different numbers of passengers, such asone person driving a car for 100,000 miles(160,000 km), which is also 100,000 personmiles),making it one of the safest modes oftransportation, as measured by distancetraveled. A disproportionate number of all U.S.aircraft crashes occur in Alaska, largely as aresult of severe weather conditions. Between1990-2006 there were 1441 commuter and airtaxi crashes in the U.S. of which 373 (26%)were fatal, resulting in 1063 deaths (142occupational pilot deaths). Alaska accounted2for 513 (36%) of the total U.S. crashes.Another aspect of safety is protection fromattack. The terrorist attacks of 2001 are notcounted as accidents. However, even if theywere counted as accidents they would haveadded only about 2 deaths per 2,000,000,000person-miles. Only 2 months later, AmericanAirlines Flight 587 crashed in Queens, NY,killing 256 people, including 5 on the ground,causing 2001 to show a very high fatality rate.Even so, the rate that year including theattacks (estimated here to be about 4 deathsper 1,000,000,000 person-miles), is safecompared to some other forms of transport, ifmeasured by distance traveled.Airline StatisticsThe Geneva-based Aircraft CrashesRecord Office (ACRO) compiles statistics onaviation accidents of aircraft capable ofcarrying more than six passengers, notincluding helicopters, balloons, or fighterairplanes. The ACRO announced that the year2007 was the safest year in aviation since 1963in terms of number of accidents. There hadbeen 136 accidents registered (compared to164 in 2006), resulting in a total of 965 deaths(compared to 1,293 in 2006). 2004 was theyear with the lowest number of fatalities sincethe end of World War II, with 771 deaths. Theyear with most fatalities was 1972, with 3,214deaths.Year Deaths No. of accidents2009 1,103 1222008 884 1562007 971 1472006 1,294 1662005 1,459 1852004 771 1722003 1,230 1992002 1,413 1852001 1,534 2002000 1,582 1891999 1,138 211Source;- http://www.ntsb.gov/ntsb/brief.asp?ev_id=20051229X02026&key=1. Retrieved 2007-07-14-86-Anusandhanika / Vol. III / No. I / January 2011

Navigation aids and Air Safety TechniquesOne of the first navigation aids to beintroduced (in the USA in the late 1920s) wasairfield lighting to assist pilots to make landingsin poor weather or after dark. The PrecisionApproach Path Indicator was developed fromthis in the 1930s, indicating to the pilot theangle of descent to the airfield. This laterbecame adopted internationally through thestandards of the International Civil AviationOrganization (ICAO).In 1929 Jimmy Doolittle developedinstrument flight. With the spread of radiotechnology, several experimental radio basednavigation aids were developed from the late1920s onwards. These were most successfullyused in conjunction with instruments in thecockpit in the form of Instrument landingsystems (ILS) in 1938. A form of ILS wasadopted by the ICAO for international use in1949. “ILS” first used by a scheduled flight to3make a landing in a snowstorm at Pittsburgh.All of the ground-based navigation aids arebeing supplemented by satellite-based aidslike Global Positioning System (GPS), whichmake it possible for aircrews to know theirposition with great precision anywhere in theworld. With the arrival of Wide Area AugmentationSystem (WAAS), GPS navigation has becomeaccurate enough for vertical (altitude) as wellas horizontal use, and is being usedincreasingly for instrument approaches as wellas en-route navigation. However, since theGPS constellation is a single point of failurethat can be switched off by the U.S. military intime of crisis, onboard Inertial NavigationSystem (INS) or ground-based navigation aidsare still required for backup.LightningBoeing studies have shown that airlinersare struck by lightning on average of twice peryear. While the "flash and bang" is startling tothe passengers and crew, aircraft are able towithstand normal lightning strikes. Thedangers of more powerful positive lightningwere not understood until the destruction of aglider in 1999. It has since been suggested thatpositive lightning may have caused the crashof Pan Am Flight 214 in 1963. At that timeaircraft were not designed to withstand suchstrikes, since their existence was unknown atthe time standards were set. The 1985standard in force at the time of the glider crash,Advisory Circular AC 20-53A, was replacedby Advisory Circular AC 20-53B in 2006,however it is unclear whether adequateprotection against positive lightning was4incorporated.The effects of normal lightning ontraditional metal-covered aircraft are wellunderstood and serious damage from alightning strike on an airplane is rare. However,as more and more aircraft, like the upcomingBoeing 787, whose whole exterior is made ofnon-conducting composite materials take tothe skies, additional design effort and testingmust be made before certification authoritieswill permit these aircraft in commercial5service.Ice and snowSnowy and icy conditions are frequentcontributors to airline accidents. The December8, 2005 accident where Southwest AirlinesFlight 1248 slid off the end of the runway inheavy snow conditions is just one of manyexamples. Just as on a road, ice and snowbuildup can make braking and steering difficultor impossible. The icing of wings is anotherproblem and measures have been developedto combat it. Even a small amount of ice orcoarse frost can greatly decrease the ability ofa wing to develop lift. This could prevent anaircraft from taking off. If ice builds up duringflight the result can be catastrophic asevidenced by the crash of American EagleFlight 4184 (an ATR 72 aircraft) nearRoselawn, Indiana on October 31, 1994, killing668, or Air Florida Flight 90.Airlines and airports ensure that aircraftare properly de-iced before takeoff wheneverthe weather threatens to create icingconditions. Modern airliners are designed toprevent ice buildup on wings, engines, andtails (empennage) by either routing heated airfrom jet engines through the leading edges ofthe wing, tail, and inlets, or on slower aircraft,by use of inflatable rubber "boots" that expandand break off any accumulated ice. Finally,airline dispatch offices keep watch on weatheralong the routes of their flights, helping thepilots avoid the worst of inflight icingconditions. Pilots can also be equipped with an-87-Anusandhanika / Vol. III / No. I / January 2011

ice detector in order to leave icy areas theyhave flown into.Engine failureAlthough aircraft are now designed to flyeven after the failure of one or more aircraftengines, the failure of the second engine onone side for example is obviously serious.Losing all engine power is even more serious,as illustrated by the 1970 Dominicana DC-9 airdisaster, when fuel contamination caused thefailure of both engines. To have an emergencylanding site is then very important.In the 1983 Gimli Glider incident, an AirCanada flight suffered fuel exhaustion duringcruise flight, forcing the pilot to glide the planeto an emergency deadstick landing. Theautomatic deployment of the ram air turbinemaintained the necessary hydraulic pressureto the flight controls, so that the pilot was ableto land with only a minimal amount of damageto the plane, and minor (evacuation) injuries to7a few passengers. The ultimate form of enginefailure, physical separation, occurred in 1979when a complete engine detached fromAmerican Airlines Flight 191, causing damageto the aircraft and loss of control.DelaminationComposite materials consist of layers offibers embedded in a resin matrix. In somecases, especially when subjected to cyclicstress, the fibers may tear off the matrix, thelayers of the material then separate from eachother - a process called delamination, and forma mica-like structure which then falls apart. Asthe failure develops inside the material,nothing is shown on the surface; instrumentmethods (often ultrasound-based) have to beused to detect such a material failure. Aircrafthave developed delamination problems, butmost were discovered before they caused acatastrophic failure. Delamination risk is as oldas composite material. Even in the 1940s,several Yakovlev Yak-9s experienceddelamination of plywood in their construction.StallingStalling an aircraft (increasing the angle ofattack to a point at which the wings fail toproduce enough lift), is very dangerous andusually results in a crash unless the pilotquickly reacts in the proper manner and thereis sufficient altitude left to regain adequateflying airspeed, while the plane is losingaltitude. Devices have been developed to warnthe pilot when the plane's speed is comingclose to the stall speed. These include stallwarning horns (now standard on virtually allpowered aircraft), stick shakers and voicewarnings. Most stalls are a result of the pilotallowing the plane's to go too slow for theparticular weight and configuration at the time.There is, however, such a thing as a highspeedstall. That can occur when a plane pullsout of a high speed dive too rapidly, causing theangle of attack of the airfoil to become soextreme that the air flow over the top of thewing is broken up into a turbulent mass, whichdestroys the lift capability of the wings.Notable crashes, caused by a full stall ofthe airfoils:• British European Airways Flight 548, June18, 1972• United Airlines Flight 553, December 8,1972• Aeroflot Flight 7425, July 10, 1985• Arrow Air Flight 1285, December 12, 1985• Northwest Airlines Flight 255, August 16,1987• Delta Air Lines Flight 1141, August 31,1988• The Paul Wellstone King Air Chartercrash, October 25, 2002• Colgan Air Flight 3407, February 12, 2009• Turkish Airlines Flight 1951, February 25,2009FireSafety regulations control aircraftmaterials and the requirements for automatedfire safety systems. Usually these requirementstake the form of required tests. The testsmeasure flammability and the toxicity ofsmoke. When the tests fail, they fail on aprototype in an engineering laboratory, ratherthan in an aircraft.Fire on board the aircraft, and moreespecially the toxic smoke generated, havebeen the cause of accidents. A large amount ofresearch into evacuation and cabin andseating layouts was carried at Cranfield-88-Anusandhanika / Vol. III / No. I / January 2011

Institute to try to measure what makes a goodevacuation route, which led to the seat layoutby Over wing exits being changed by mandateand the examination of evacuation requirementsrelating to the design of galley areas. The usesof smoke hoods or misting systems were alsoexamined although both were rejected.The cargo holds of most airliners areequipped with "fire bottles" (essentiallyremote-controlled fire extinguishers) tocombat a fire that might occur in the baggageholds, below the passenger cabin. In May 1996ValuJet Airlines Flight 592 crashed into theFlorida Everglades a few minutes after takeoffafter a fire broke out in the forward cargo hold.All 110 aboard were killed. At one time firefighting foam paths were laid down before anemergency landing, but the practice wasconsidered only marginally effective, andconcerns about the depletion of fire fightingcapability due to pre-foaming led the UnitedStates FAA to withdraw its recommendation in1987.Bird strikeBird strike is an aviation term for a collisionbetween a bird and an aircraft. It is a commonthreat to aircraft safety and has caused anumber of fatal accidents. In 1988 an EthiopianAirlines Boeing 737 sucked pigeons into bothengines during take-off and then crashed in anattempt to return to the Bahir Dar airport; of the104 people aboard, 35 died and 21 wereinjured.Modern jet engines have the capability ofsurviving an ingestion of a bird. Small fastplanes, such as military jet fighters, are athigher risk than heavy multi-engine ones. Thisis due to the fact that the fan of a high-bypassturbofan engine, typical on transport aircraft,acts as a centrifugal separator to forceingested materials (birds, ice, etc.) to theoutside of the fan's disc. As a result, suchmaterials go through the relatively unobstructedbypass duct, rather than through the core ofthe engine, which contains the smaller andmore delicate compressor blades. Militaryaircraft designed for high-speed flight typicallyhave pure turbojet, or low-bypass turbofanengines, increasing the risk that ingestedmaterials will get into the core of the engine tocause damage.The highest risk of the bird strike is duringthe takeoff and landing, in low altitudes, whichis in the vicinity of the airports. Some airportsuse active countermeasures, ranging from aperson with a shotgun, through recordedsounds of predators to employing falconers.Poisonous grass can be planted that is neitherpalatable to birds, nor to insects that attractinsectivorous birds. Passive countermeasuresinvolve sensible land-use management,avoiding conditions attracting flocks of birds tothe area (e.g. landfills). Another tactic foundeffective is to let the grass at the airfield growtaller [approximately 12 inches (30 centimeters)]as some species of birds won't land if theycannot see one another. Bird strike can alsobreak windshields and wound the pilot.Ground damageAircraft are occasionally damaged byground equipment at the airport. In the act ofservicing the aircraft between flights a greatdeal of ground equipment must operate inclose proximity to the fuselage and wings.Occasionally the aircraft gets bumped orworse. Damage may be in the form of simplescratches in the paint or small dents in the skin.However, because aircraft structures(including the outer skin) play such a criticalrole in the safe operation of a flight, all damageis inspected, measured and possibly tested toensure that any damage is within safetolerances. A dent that may look no worse thancommon "parking lot damage" to anautomobile can be serious enough to groundan airplane until a repair can be made.An example of the seriousness of thisproblem was the December 26, 2005depressurization incident on Alaska Airlinesflight 536. During ground services a baggagehandler hit the side of the aircraft with a tugtowing a train of baggage carts. This damagedthe metal skin of the aircraft. This damage wasnot reported and the plane departed. Climbingthrough 26,000 feet (7,900 metres) thedamaged section of the skin gave way due tothe growing difference in pressure between theinside of the aircraft and the outside air. Thecabin depressurized with a bang, frighteningall aboard and necessitating a rapid descentback to denser (breathable) air and anemergency landing. Post landing examination-89-Anusandhanika / Vol. III / No. I / January 2011

of the fuselage revealed a 12 in × 6 in (30 cm ×15 cm) hole between the middle and forward8cargo doors on the right side of the airplane.The three pieces of ground equipment thatmost frequently damage aircraft are thepassenger boarding bridge, catering trucks,and cargo "belt loaders." However, any otherequipment found on an airport ramp candamage an aircraft through careless use, highwinds, mechanical failure, and so on. Thegeneric industry colloquial term for thisdamage is "ramp rash", or "hangar rash".Volcanic ashPlumes of volcanic ash near activevolcanoes present a risk especially for nightflights. The ash is hard and abrasive and canquickly cause significant wear on thepropellers and turbo compressor blades, andscratch the cockpit windows, impairingvisibility. It contaminates fuel and watersystems, can jam gears, and can cause aflameout of the engines. Its particles have lowmelting point, so they melt in the combustionchamber and the ceramic mass then sticks onthe turbine blades, fuel nozzles, and thecombustors, which can lead to a total enginefailure. It can get inside the cabin andcontaminate everything there, and candamage the airplane electronics.There are many instances of damage tojet aircraft from ash encounters. In one of themin 1982, British Airways Flight 9 flew through anash cloud, lost all four engines, and descendedfrom 36,000 ft (11,000 m) to only 12,000 ft(3,700 m) before the flight crew managed torestart the engines. In 1991 the aviationindustry decided to set up Volcanic AshAdvisory Centers (VAACs), one for each of 9regions of the world, acting as liaisonsbetween meteorologists, volcanologists, and9the aviation industry.The April 2010 eruptions of Eyjafjallajökullcaused sufficient economic difficulties thataircraft manufacturers were forced to definespecific limits on how much ash is consideredacceptable for a jet engine to ingest withoutdamage. In April, the CAA, in conjunction withengine manufacturers, set the safe upper limitof ash density to be 2 mg per cubic meter of airspace. From noon 18 May 2010, the CAArevised the safe limit upwards to 4 mg per cubic-90-10meter of air space. In order to minimize thelevel of further disruption that this and othervolcanic eruptions could cause, the CAAannounced the creation of a new category ofrestricted airspace called a Time Limited Zone11(TLZ). Airspace categorized as TLZ is similarto airspace experiencing severe weatherconditions in that the restrictions are expectedto be of a short duration; however, the keydifference with TLZ airspace is that airlinesmust produce certificates of compliance inorder for their aircraft to enter these areas.Flybe was the first airline to conform to theseregulations and their aircraft will be permittedto enter airspace in which the ash density is12between 2 mg and 4 mg per cubic meter. Anyairspace in which the ash density exceeds 4mg per cubic meter is categorized as a no flyzone.Human factorsHuman factors including pilot error areanother potential danger, and currently themost common factor of aviation crashes. Piloterror and improper communication are oftenfactors in the collision of aircraft. This can takeplace in the air (1978 Pacific SouthwestAirlines Flight 182) or on the ground (1977Tenerife disaster). The ability of the flight crewto maintain situational awareness is a criticalhuman factor in air safety. Human factorstraining is available to general aviation pilotsand called single pilot resource managementtraining.Failure of the pilots to properly monitor theflight instruments resulted in the crash ofEastern Air Lines Flight 40 in 1972 (CFIT), anderror during take-off and landing can havecatastrophic consequences, for examplecause the crash of Prinair Flight 191 onlanding, also in 1972. Human factors incidentsare not limited to errors by the pilots. Thefailure to close a cargo door properly onTurkish Airlines Flight 981 in 1974 resulted inthe loss of the aircraft - however the design ofthe cargo door latch was also a major factor inthe incident. In the case of Japan Airlines Flight123, improper maintenance resulted in the lossof the vertical stabilizer.Controlled flight into terrain (CFIT)Controlled flight into terrain is a class ofaccident in which an undamaged aircraft isAnusandhanika / Vol. III / No. I / January 2011

flown, under control, into terrain or man-madestructures. CFIT accidents typically are a resultof pilot error or of navigational system error.Some pilots, convinced that advancedelectronic navigation systems such as GPSand inertial guidance systems (inertialnavigation system or INS) coupled with flightmanagement system computers , or overrelianceon them, are partially responsible forthese accidents, have called CFIT accidents"computerized flight into terrain". Failure toprotect Instrument Landing System criticalareas can also cause controlled flight intoterrain. One of the most notable CFITaccidents was in December 1995 in whichAmerican Airlines flight 965 tracked off coursewhile approaching Calí, Colombia and hit amountainside after the speed brakes were leftdeployed despite an aural terrain warning inthe cockpit and an attempt to gain amplealtitude in the nighttime conditions. Crewawareness and monitoring of navigationalsystems can prevent or eliminate CFITaccidents. Crew Resource Management is amodern method now widely used to improvethe human factors of air safety. Other technicalaids can be used to help pilots maintainsituational awareness. A ground proximitywarning system is an on-board system that willalert a pilot if the aircraft is about to fly into theground. Also, air traffic controllers constantlymonitor flights from the ground and at airports.TerrorismTerrorism can also be considered ahuman factor. Crews are normally trained tohandle hijack situations. Prior to theSeptember 11, 2001 attacks, hijackingsinvolved hostage negotiations. After theSeptember 11, 2001 attacks, stricter airportsecurity measures are in place to preventterrorism using a Computer Assisted PassengerPrescreening System, Air Marshals, andprecautionary policies. In addition, counterterroristorganizations monitor potentialterrorist activity. Although most air crews arescreened for psychological fitness, some maytake suicidal actions.The use of certain electronic equipment ispartially or entirely prohibited as it mayinterfere with aircraft operation, such ascausing compass deviations. Use of personalelectronic devices and calculators may be-91-prohibited when an aircraft is below 10,000',taking off, or landing. The American FederalCommunications Commission (FCC) prohibitsthe use of a cell phone on most flights, becausein-flight usage creates problems with groundbasedcells. There is also concern aboutpossible interference with aircraft navigationsystems, although that has never been provento be a non-serious risk on airliners. A fewflights now allow use of cell phones, where theaircraft have been specially wired and certifiedto meet both FAA and FCC regulations.Airport designAirport design and location can have a bigimpact on air safety, especially since someairports such as Chicago Midway InternationalAirport were originally built for propeller planesand many airports are in congested areaswhere it is difficult to meet newer safetystandards. For instance, the FAA issued rulesin 1999 calling for a runway safety area,usually extending 500 feet (150 m) to each sideand 1,000 feet (300 m) beyond the end of arunway. This is intended to cover ninetypercent of the cases of an aircraft leaving therunway by providing a buffer space free ofobstacles. Since this is a recent rule, manyairports do not meet it. One method ofsubstituting for the 1,000 feet (300 m) at theend of a runway for airports in congested areasis to install an engineered materials arrestorsystem, or EMAS. These systems are usuallymade of a lightweight, crushable concrete thatabsorbs the energy of the aircraft to bring it to arapid stop. They have stopped three aircraft(as of 2005) at JFK Airport.Emergency airplane evacuationsAccording to a 2000 report by the NationalTransportation Safety Board, emergencyairplane evacuations happen about onceevery 11 days in the U.S. While somesituations are extremely dire, such as when theplane is on fire, in many cases the greatestchallenge for passengers can be the use of theairplane slide. In a TIME article on the subject,Amanda Ripley reported that when a newsupersized Airbus A380 underwent mandatoryevacuation tests in 2006, 33 of the 873evacuating volunteers got hurt. While theevacuation was generally considered asuccess, one volunteer suffered a broken leg,Anusandhanika / Vol. III / No. I / January 2011

while the remaining 32 received slide burns.Such accidents are common. In her article,Ripley provides tips on how to make it down the13airplane slide without injury.Runway safetySeveral terms fall under the flight safetytopic of runway safety, including incursion,excursion, and confusion.Runway excursion is an incident involvingonly a single aircraft, where it makes aninappropriate exit from the runway. This canhappen because of pilot error, poor weather, ora fault with the aircraft. Overrun is a type ofexcursion where the aircraft is unable to stopbefore the end of the runway. A recent exampleof such an event is Air France Flight 358 in2005. Runway event is another term for arunway accident.Runway incursion involves a first aircraft,as well as a second aircraft, vehicle, or person.It is defined by the U.S. FAA as: "Anyoccurrence at an aerodrome involving theincorrect presence of an aircraft, vehicle orperson on the protected area of a surfacedesignated for the landing and take off of14aircraft."Runway confusion involves a singleaircraft, and is used to describe the error whenthe aircraft makes "the unintentional use of thewrong runway, or a taxiway, for landing or takeoff".An example of a runway confusionincident is Comair Flight 191.Runway excursion is the most frequenttype of landing accident, slightly ahead ofrunway incursion. For runway accidentsrecorded between 1995 and 2007, 96% were15of the 'excursion' type. New systemsdesigned to improve runway safety, such asAirport Movement Area Safety System(AMASS) and Runway Awareness andAdvisory System (RAAS), have beenintroduced. AMASS prevented the seriousnear-collision in the 2007 San FranciscoInternational Airport runway incursion.Safety Improvement InitiativesThe Safety Improvement Initiativesare aviation safety partnerships betweenregulators, manufacturers, operators andprofessional unions, research organizations,international organizations to further enhance-92-safety. The major Safety initiatives worldwideare:• Commercial Aviation Safety Team (CAST)in the US. The Commercial AviationSafety Team (CAST) was founded in 1998with a goal to reduce the commercialaviation fatality rate in the United Statesby 80 percent by 2007.• European Strategic Safety Initiative(ESSI)- The European Strategic SafetyInitiative (ESSI) is an aviation safetypartnership between EASA, otherregulators and the industry. The initiativeobjective is to further enhance safety forcitizens in Europe and worldwide throughsafety analysis, implementation of costeffective action plans, and coordinationwith other safety initiatives worldwide.ConclusionImproved air safety to produce airplanesthat are especially designed for commercialairlines helped the number of passengers growfrom only a few thousand a year in 1930 toabout 2 million in 1939 and 16.7 million in 1949.Safety improvements have resulted fromimproved aircraft design, engineering andmaintenance, the evolution of navigation aids,and safety protocols and procedures. It is oftenreported that air travel is the safest in terms ofdeaths per passenger mile. The NationalTransportation Safety Board (2006) reports1.3 deaths per hundred million vehicle miles fortravel by car, and 1.7 deaths per hundredmillion vehicle miles for travel by air. These arenot passenger miles. If an airplane has 100passengers, then the passenger miles are 100times higher, making the risk 100 times lower.The number of deaths per passenger mile oncommercial airlines between 1995 and 2000 isabout 3 deaths per 10 billion passenger miles.References1. David Noland, Safest Seat on a Plane: PMInvestigates How to Survive a Crash.Popular Mechanics. http://www.popularmechanics.com/science/air_space/4219452.html?safe, 20072. BBC News, Flying still the safest form oftravel, 8 May 2000, http://news.bbc.co.uk/2/hi/uk_news/736582.stm,Retrieved2010-01-01Anusandhanika / Vol. III / No. I / January 2011

3. numberwatch.co.uk., The risks of travel,Archived from the original on 7 September2001. http://web.archive.org/web/20010907173322/http://www.numberwatch.co.uk/risks_of_travel.htm4. Hiding requirements, suspicion they'reinadequate, Nolan Law Group, January18, 2010, p 835. A Proposed Addition to the LightningEnvironment Standards Applicable toAircraft, J. Anderson Plumer LightningTechnologies, Inc, 20056. airlinesafety.com7. Watt Nick (17 January 2007). StayingAlive During a Plane Crash. ABC News.http://abcnews.go.com/Nightline/story?id=2619382&page=1. Retrieved 2 December20098. National Transportation Safety Board --Aviation Accidents: SEA06LA033. NationalTransportation Safety Board. 2006-08-29.http://www.ntsb.gov /ntsb/brief.asp?ev_id=20051229X02026&key=1. Retrieved,20079. Volcanic Ash–Danger to Aircraft in theNorth Pacific (http://news.bbc.co.uk/1/hi/uk/8685913.stm)10. http://www.newscientist.com/article/dn18802-engine-stripdowns-establishsafe-volcanic-ash-levels.html11. http://www.caa.co.uk/docs/7/Letter%20to%20NSAs%20re%20Volcanic%20Ash-%20Creation%20of%20TLZ.pdf12. http://news.sky.com/skynews/Home/UK-News/Volcano-Ash-New-Time-Limited-Zone-Introduced-To-Reduce-Flight-Restrictions-Due-To-Ash-Cloud/Article/201005315633952?f=rss13. How to Escape Down an Airplane Slide -and Still Make Your Connection! AmandaRipley. TIME. January 23, 200814. http://www.faa.gov/runwaysafety/ FAARunway Safety webpage, Retrieved2008-12-1415. http://www.flightglobal.com/articles/2008/03/14/222239/comment-safetyexcursions.html"Safety Excursions",FlightGlobal.com, Retrieved 2008-12-15-93-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 94-99ISSN 0974 - 200XManagement of Inventory in Indian Iron and Steelindustry : A case study of Sail and TiscoIntroductionAnand PrakashResearch Scholar, University Department of CommerceVinobha Bhawe University, HazaribagFollowing the pace of liberalization andglobalization initiated since eighties’ thecompetition has been hotting up and industrieshave been compelled to cut the costs byeconomising the use of scarce resources tosurvive and grow. The economic use ofresources is a must to get maximum benefitwith limited financial resources. Sinceinventory constitute the substantial portion ofthe resources of industrial enterprises, it needsto be used efficiently to keep an enterprisecompetitive in the market. So, themanagement has to pay much attention onmanagement and control of inventory.All the materials which are kept in stock tomeet day to day requirement of workshop,machinery and plant are covered under theterm inventory. Inventory is “the aggregate ofthose items of tangible personal propertywhich (i) are held for sale in ordinary course ofbusiness, or (ii) are in the process ofproduction for sale, or (iii) are to be currentlyconsumed in the production of goods and1services" In other words, the resources usedin the form of raw materials which are beingconverted into goods under process and thenconverted into finished goods which whenShyama Nand SinghHead & Dean, Faculty of CommerceVinobha Bhawe Unviersity, HazaribagAbstractThe term inventory means all the materials which are kept in the stock to meet the day-to-day requirement ofworkshop machinery and plant. It is an aggregate of those items of tangible personal property which are heldfor sale in ordinary course of business, are in the process of production of goods and services. Sinceinventory constitutes the substantial portion of the resources of industrial enterprises, it needs to be usedefficiently in order to keep the enterprise competitive in the market. The management has to pay muchattention on management and control of inventory.Keyword - Globalization, Management, Competitive-94-marketed gets cash into the organization areinventory. The operative cycle begins withcash outflow through purchases, storage,processing or manufacturing, sales, collectionof receipts, ends in cash inflow in theorganization.Inventory for a finance manager is an idleand unproductive resource if not investedprofitably. The inventory not only ties up afirm’s precious capital but also costs money tocarry it. On the other hand, the shortage ofinventory is the matter of concern forproduction manager as well as sales manager,as their scheduled operations will be disrupted.G.W.Plosal and O.W.Weight have rightlypointed out that the ‘Inventory in businessserves much as suspension system of anautomobile ups and downs in sales areabsorbed by inventory just as the car springs2absorb bumps in the road. Thus, inventory isthe integral part of business operations. Themaintenance of optimum level of inventory is amust for maximization of wealth of the firm, asboth surplus and shortage are harmful. Formanagement it is essential that optimum levelof inventory is maintained in the firm toeconomies the cost of operation. We haveselected Indian Iron & Steel Industry for thepurpose of study of inventory management.

RationaleThe iron and steel singled out for the studyis the backbone of economic growth of acountry. A strong relationship exists betweenthe level of economic growth and quantum ofsteel consumption. Since India is still muchbehind the developed and some developingeconomies including China in respect of percaita consumption of steel, India needs fasterdevelopment and expansion of the industry. Inpursuit of achieving faster growth, the iron andsteel industry was accorded top priority in fiveyear plans. Accordingly four steel plants atRourkela, Durgapur, Bokaro and Bhilai wereset up which are now under the managementof SAIL, a holding company under publicsector. Besides these four integrated steelplants, there are three steel plants namelyAlloy steel plants, Salem steel plant, andVisvesraya Iron and Steel Company. TheI.I.SCo., Maharastra Electrosmelting, PowerSupply co., Bhilai Oxygen Ltd. Are subsidiariesof SAIL.It has recorded sales turnover ofRs.45,555 crores on stand alone basis in2007-08 and inventory of Rs.6857.23 crores.Besides SAIL, the oldest and largestintegrated steel plant in private sector isTISCO, posing challenge to the former inrespect of relative growth and profitability. Ithas emerged as a flourishing plant due to itsability to transform itself rapidly to meet thechallenges of highly competitive economy andcommitment to become supplier of choice tothe consumers with its quality of products andservices.The constant modernization andintroduction of the state of art technology andinnovative management have enabled thecompany to stay ahead of the industry. Aftertaking over ‘Corus’ the European SteelManufacturer, it has added new feathers to itsalready glittering cap.Inventory forms a large portion of theirresources exceeding nearly Rs.6,857/- croresin SAIL and Rs.2,047/- crores in TISCO, in2007-08, hence, their efficient managementand economic utilization is pre-requisite forany scheme of profit maximization anddevelopment. TISCO has shown consistentlyhigher rate of profitability than SAIL. One of themajor reasons of high profitability may bebetter and more efficient management ofinventory. The committee on publicundertakings was of the view that SAIL likeother public undertakings suffered due tooverinvestment in fixed assets, underutilization of capacity, heavy expenditure onprovision of township and social amenities and3surplus workforce and labour troubles. Thefindings of the committee did not emphasise,the role of working capital, particularly‘inventory’ in the financial well being of anundertaking. The authorities on financialmanagement are of the view that one of thecauses of losses incurred by an enterprise maybe imprudent and inefficient management ofworking capital of which inventory is the most4important.The problems of general managementand organization are procedural in practice,but the problems of transmutation of workingcapital into cash and back into inventory is vitaland dynamic aspect of management. That isthe reason that finance manager’s largestportion of time is devoted to the management5of this segment of capital. The management ofworking capital has assumed addedsignificance in view of the inflationaryconditions prevalent in the economy and policyof credit squeeze frequently being adopted bythe RBI. Tandon committee has correctlyobserved that ‘industrial production has risenat a slow space, but call on bank credit,essentially for maintaining inventories even atthe same level, has gone up with increasing6prices. Thus, relatively low performance ofSAIL in terms of profitability may be on accountof inefficient management of inventory, hencean attempt has been made to evaluate themanagement of inventory in SAIL and TISCOwith comparative analysis.Materials and MethodsTwo enterprises namely SAIL and TISCOhave been selected for the comparative studyof inventory management. The relevant datahave been taken from the balance sheets of-95-Anusandhanika / Vol. III / No. I / January 2011

these companies. The study covers a period of5 years from 2003-04 to 2007-08. The analysishas been supplemented from the relevantreports of Public Enterprises Survey andseveral studies made by various otheragencies. The analysis of secondary data hasbeen supported by the observation made bythe researchers from on the spot study.Results and DiscussionsThe analysis of inventory management inthe selected enterprises has been attempted intwo stages. In first stage analysis is based onaccounting ratios calculated through balancesheets’data.In second phase the studyfocused on practices and convention prevalentin each enterprise for its management.Financial data have been taken from theirbalance sheets from stand alone basisexcluding the autonomous subsidiaries. Theanalysis of balance sheet data have beengrouped under three parts, each part devotedto specific aspect of inventory management.These aspects are (a) study of level ofinventory in relation to others such as CurrentAssets and sales, (b) Circulation or conversionof inventory and (c) inventory holding in thecontext of operational requirement.Level or share of InventoryInventory is the least liquid asset amongother current assets and the excess holdingneither serves the purpose of liquidity, nor ofprofitability of an enterprise. Inventory, on anaverage, formed 32.36 percent of total currentasset in SAIL as against only 21.60 percent inTISCO during the period under review (table -1). Besides the average, year wise percentageof inventory had been much high in the former.On the other hand, TISCO has consistentlyreduced inventory holding and brought downthe share of inventory from 30.07 percent ofcurrent assets to 5.54 percent in 2007-08.Eventhe share of inventory in large companies inprivate sector has been much higher thanTISCO.Inventory in relation to sales had beenconsistently high in SAIL as compared toTISCO (table -2). The comparative analysissuggests that over stocking of inventory exists-96-in SAIL as compared to TISCO, an integratedsteel plant in private sector.Circulation or ConversionThe inventory goes into the process ofconversion from raw material to goods inprocess of production, to finished goods andends in cash. Naturally, the quicker is the timetaken in conversion, less will be requirement ofinventory at the same volume of productionand better liquidity and vice versa. The rapidityof conversion is reflected through turnoverratios. In other words, it can be said that a lowturnover indicates over investment in inventoryand poor management of inventory and highturnover represents under investment andmore efficient use of inventory. The averageturnover of inventory was 9.62 times recordedin TISCO whereas SAIL recorded a turnover of5.80 which has been definitely much lower(table-3) TISCO has also maintainedconsistently higher turnover from 2003-04 to2007-08. From this stand point too, theperformance of TISCO has been far betterthan SAIL.Inventory Holding in Terms of OperationalRequirementFinancial prudence demands that stock ofinventory should be in tandem with theoperational requirement or the cost ofproduction (excluding depreciation andinterest) or less. SAIL has, on an average,maintained stocks equal to 1.78 months’ ofcost of production whereas TISCO has keptthem equal to 1.55 months’ cost of productionwithout sacrificing liquidity and production(table-4). To make the analysis more specificthe stock of raw materials with firms have beenmeasured in terms of months’ consumption ofraw materials in table-5. The average rawmaterial stocks have been equal to 1.26months of total raw materials consumed inSAIL whereas 3.22 months’ of TISCO. Suchcondition could arise on account of the fact thatTISCO has shown in its balance sheet rawmaterials including stores and spares whichinflated volume of stock of raw materials. Thelarger holding of raw materials may also beattributed that TISCO meets the requirementof coal from imports from Australia whereAnusandhanika / Vol. III / No. I / January 2011

transportation lead time is longer.The analysis has further enlarged toevaluate the finished goods inventory in termsof months’ value of sales during the periodunder review. It has been found that SAIL haskept finished goods stock equal to 2.7 months’sales against 0.68 months’ sale in TISCO(table 8). Both enterprises are in the samemarket, hence there should be no reason forkeeping much more stock of finished goods bySAIL. It is also admitted by the concernedofficials that overstock has not been there toearn speculative gains when prices wererising. TISCO has maintained consistentlylower stock of finished goods which is revealedin table.Thus, the above analysis has amplydemonstrated that TISCO has an edge overSAIL in respect of quality of management ofinventory and overstocking relatively doesexist in SAIL eating into its profitability.Causes of overstocking :The causes of overstocking may begrouped under three heads namely(i) organizational set up (ii) planning andprogramming and (iii) controlling techniques.(i)(ii)Organizational set up : In the wholeorganizational structure, the managementof inventory has not been accorded dueand distinct place in SAIL. An ‘IntegratedInventory Management Department’ hasnot yet been created and assigned powerand responsibility under C.E.O. There aretwo departments under different heads toperform these functions. The separationof the functions of indent and purchasinghas to a great extent led to overstockingon account of non-co-ordination ofdifferent functions under common head.Planning and Programming : Planningand programming of materials leavesmuch to be desired which is evident fromthe fact that a large number of orders forpurchasing materials and stores were ofsmall value. The planning exercises aredeficient, as adequate and accurate datato make correct forecasting of demand for-97-materials are not available at subsidiariesand corporate level. Even with regards toitems of regular use, the system ofautomatic replenishment based onminimum, maximum, and reorderinglevels has not been implemented in SAIL.Consequently, supplies are arranged asper the indents of consuming departments.Besides these, the optimum quantity forre-ordering is based on consumption andlead time without taking into considerationthe costs of ordering and carrying ofmaterials. The observation made by ushas been corroborated by 40th Report onMaterials Management in Public undertakings.It has been reported thatprovisioning levels were not fixed properlybased on figures of past consumption.Further, the levels were not watchedregularly and indents were raised after thestocks have gone below the minimum orin most cases long after stocks hadbecome nil. On the other hand in respectof several items, there had beenprogressive additions to stocks year afterand surpluses had accumulated over a7period of time.(iii) Application of Modern Techniques ofControl: Because of defective proceduresbased on breaucrative framework, theadministrative lead time is much longer inSAIL. A compulsory reference to financedepartment at different stages ofpurchasing raises lead time in procurementof materials. The list of suppliers are notbeing updated regularly depending uponchange in technology and productinnovation by the already short listedsuppliers.SAIL has been found deficient in mattersof introducing the modern techniques ofcontrol such as preparation of vocabulary,codification, classification, standardizationand variety reduction. Even A.B.C. techniquebeing implemented is in letter only not in spirit.In contrast to SAIL, TISCO has exhibitedefficient and responsive management usingthe latest techniques control and planning.Anusandhanika / Vol. III / No. I / January 2011

Table 1Inventory of Current Assets in SAIL andaTISCO during 2003-04 to 2007-08(In percentage)Year SAIL TISCO2003-2004 37.57 29.812004-2005 29.75 30.032005-2006 35.72 29.322006-2007 32.64 13.342007-2008 26.06 05.54Average 32.35 21.60(2003-08)a. Adapted from original Balance sheets ofSAIL & TISCO.Table 2Inventory as the percentage of sale in SAILand TISCO during 2003-04 to 2007-08a(In percentage)Year SAIL TISCO2003-2004 14.47 8.622004-2005 14.89 10.512005-2006 22.29 11.442006-2007 19.61 10.412007-2008 17.36 10.40Average 17.72 10.28(2003-08)a. Adapted from Balance sheets of SAIL &TISCO.Table 3Inventory Turnover in SAIL and TISCOduring the period 2003-04 to 2007-08a(In time)Year SAIL TISCO2003-2004 6.91 11.602004-2005 6.72 9.512005-2006 4.49 8.742006-2007 5.10 9.602007-2008 5.76 9.62Average 5.80 9.82(2003-08)a. Adapted from Balance sheets of SAIL &TISCO.Table 4Inventory to Months cost of Production(Excluding Depreciation & Interest)During 2003-04 to 2007-08a(In Month)Year SAIL TISCO2003-2004 1.51 1.172004-2005 1.52 1.702005-2006 2.22 1.712006-2007 1.93 1.572007-2008 1.71 1.59Average 1.78 1.55(2003-08)a. Adapted from Annual Account ofSAIL & TISCO.Table 5Raw Material in terms of months’ value ofraw material consumptionDuring 2003-04 to 2007-08 inSAIL & TISCOYear SAIL TISCO2003-2004 1.51 1.172004-2005 1.52 1.702005-2006 2.22 1.712006-2007 1.93 1.572007-2008 1.71 1.59Average 1.78 1.55(2003-08)a. Adapted from Annual Account ofSAIL & TISCO.Table 6.Stock of finished goods in terms of months’value of sales in SAIL and TISCOaDuring 2003-04 to 2007-08Year SAIL TISCO2003-2004 8.90 0.702004-2005 0.83 0.732005-2006 1.39 0.792006-2007 1.24 0.742007-2008 1.20 0.45Average(2003-08) 2.71 0.68a. Adapted from the figures of Balance Sheet.-98-Anusandhanika / Vol. III / No. I / January 2011

ConclusionThe organizational set up for managementof inventory requires a complete change frombreaucrative structure to responsive structurelike TISCO, a private sector enterprise. An‘Integrated Inventory Management Departmentunder CEO of each subsidiary and manned atlower level by especially trained specialists isrequired to be constituted. Procedures relatingto procurement of materials are to be simplifiedand frequent reference to finance departmentshould be given a good bye. Control linemachinism is to be computerized and moderntechniques need be used.References1. Committee of on Accounting Procedure,Research Bulletin 43, American Instituteof accountants, New York, 1953, p 272. Plossl G.W and Wight O.W., Productionand Inventory control, Principles andTechniques, Prentice-Hall of IndiaPvt.Ltd., New Delhi, 1979, p 47Financial Management in PublicUndertakings, Lok Sabha Secretariat,New Delhi, April, 1966, pp 31-344. O’Donne, Jhon L and Goldberg Miltons,Elements of Financial Administration,Prentice Hall of India Pvt. Ltd., New Delhi,1964-655. Weston J Fred and Brigham E.E.,Managerial Finance, Hott, RinchartWinston, 3rd edition, 1969, p 4406. The Reserve Bank of India, Report of thestudy group to frame guidelines for followup bank credit, 1975, p 117. Committee on Public Undertakings (ThirdLok Sabha), 4015 Report on MaterialsManagement in Public Undertakings,March,1967, p 273. Committee on Public undertakings (1967-68) 1515 Report (415 Lok Sabha),-99-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 100-103ISSN 0974 - 200XGreen Computing- A New Horizon ofEnergy Efficiency and E-Waste MinimizationKeywords: Green IT, Green design, Green use, Energy Star & E-wasteIntroductionGreen computing or green IT refers to anefficient utilization of computing resources withminimum or no negative impact on theenvironment; or we can say “environmentresponsible computing” known as Greencomputing. Green Computing includesefficient and effective environment friendlypractice of designing, manufacturing, usingand disposing of computers, devices,peripherals, networking & communicationsystems. The Motto of green computing are toreduce the electricity Consumption, use ofhazardous materials, e-waste, carbon leveland increase the efficiency and lifetime ofcomputing devices that can result in promotingrecyclability or biodegradability of defunctproducts and factory waste.In 1992, the U.S Environmental ProtectionAgency launched energy star, a voluntarylabeling program which is designed to promoteand recognize energy efficiency in monitors,climate control equipment and other technologies.This label was also awarded to monitors,refrigerators, television sets, air conditionersetc. At the same time the Swedish organizationTCO Development launched the TCOcertification program to promote low magneticand electrical emissions from CRT basedcomputer displays. This program was laterexpanded to include criteria on energyManisha KumariDepartment of MBARanchi University, RanchiJai Ram AgrawalMBA AlumniBIT Mesra, RanchiAbstractGreen Computing or Green IT is a recent trend towards designing, building, and operatingcomputer systems to be energy efficient. While programs such as Energy Star have been aroundsince the early 1990s, recent concerns regarding global climate change and the energy crisishave led to renewed interest in Green Computing. Data centers are significant consumers ofenergy - both to power the computers as well as to provide the necessary cooling. This paperproposes a new approach to reduce energy utilization & e-waste.-100-consumption and the use of hazardousmaterials in manufacturing.Materials and MethodsMany articles and magazines have beenreferred to collect the material and the exactsituation of computing devices. Performancewise,computer design has progressedamazingly well and astonishingly fast butlooking at it from a green perspective, thegreening is not satisfactory. Conventionally,manufacturing computers include the use oflead, cadmium, mercury, and other toxics ingeneral. Lead is used in soldering of printedcircuit boards and other components. It is alsoused in glass for CRTs. Lead can causedamage to the central and peripheral nervoussystems, blood system, kidneys, endocrinesystem and cause negative effects on childbrain development. Electronics contribute40% of the total amount of lead found inlandfills and can make its way from landfills intothe water supplies and has toxic effects onplants, animals and microorganisms.Results and DiscussionsMercury is used in batteries, switches,printed circuit boards, data transmissionequipments, telecommunication equipmentsetc. It is estimated that 22% of the yearly use ofmercury is in electrical and electronicequipment. Mercury spreads out in water

transforming into methylated mercury whichcan easily enter into the food chain through fishand can cause chronic brain damage to theliving organisms.Cadmium is used in resistors for chips,infrared detectors and in semiconductors.Cadmium is toxic and can absorb throughrespiration and also food intake andaccumulates in the human body especially inthe kidneys. Plastics are found throughout thecomputer from casings to hold internalcomponents together. It’s no wonder thatcomputers and other electronics make up totwo-fifths of all landfills which means a methodof solid waste disposal.friendly computer. This eco friendly computerwill not only reduce the health hazards but alsoreduce the burden on the environment and willresult in reduction of global warming.How to achieve green computing:-1. VirtualizationToday computers are very fast. Singleuser can’t use even the 20% capacity of thesystem. Virtual computing can share thesystem performance through virtual clients. Itis the process of running two or more logicalcomputer systems on one set of physicalhardware. With virtualization, several virtualsystems can be connected through a singlepowerful system. This system unplugs thevarious components like CPU fan, Hard disketc., and results in reducing power and coolingconsumption. It can make the most efficientuse of available system resources.Figure 1: E-WasteTo keep servers at the right temperature,companies mainly rely on air-conditioningequipments. The more powerful the machine,the more cool air needed to keep it fromoverheating. By 2005, the energy required topower and cool servers accounted for about1.2% of total U.S. electricity consumption,according to a report released in February bystaff scientist Jonathan Koomey of LawrenceBerkeley National Laboratory and sponsoredby chip manufacturer Advance Micro Device(AMD).According to Gartner by 2010, about halfof the Forbes Global 2000 companies willspend more on energy than on hardware suchas servers. Energy costs is, now about 10% ofthe average IT budget according to someresearch.Faster processors use more power,because they use too much power and theirwaste heat increases temperature for which airconditioning becomes necessary. The wasteheat also causes reliability problems, as CPU’scrashe much more often at highertemperatures.To stop the growing pollution threat allover the world due to the growing use ofelectronic device in general and computers inparticular there is a need to look for an eco--101-User 1Router/SwitchSharedPcUser 2User 3User 4User 5Figure 2 : Virtual Computing Setup2. Power managementUser 6User nGreen Computing also emphasizes toreduce the Power consumption. For thisHardware manufacturer should develop lowpower consumption devices and Softwaredevelopers should develop software tooptimize the power consumption throughproper power management. Power Managementcan be achieved through: -- Prolong battery life for portable andembedded systems.- Reduce cooling requirements like AC,Fans etc.- Reduce operating energy for computing.- Replace CRT with LCD and LCD with LEDThe system can be switched off when notin use especially in night. The monitor shouldbe turned off when the user is going away evenfor shorter duration.The power management can be adjustedusing the control panel to turn off the hard driveand put the system into standby after a setAnusandhanika / Vol. III / No. I / January 2011

amount of time. For more advanced usersremove unnecessary fans and Drives. CableModems, Routers and Wi-Fi Access Pointscan be switched off when not in use / overnight.3. Reusing and RecyclingThis can include finding another use forthe system (i. e. donated to charity), or havingthe system disassembled in a manner thatallows for the safe extraction of the constituentmaterials for reuse in other products.Recycling can keep harmful materials such aslead, mercury, and hexavalent chromium out oflandfills. Obsolete computers are a valuablesource for secondary raw materials, if treatedproperly. Most major computer manufacturersoffer some form of recycling, often as a freereplacement service when purchasing a newPC.Simple Network Consulting receiveshundreds of spent printer toner and inkjetcartridges and batteries a year. Instead oftossing these in the garbage, these can berecycled, saving resources and reducingpollution and solid waste. Refill laser tonercartridges, Ink-jet cartridges or use Ink-tank;it’s cheaper and doesn’t add to landfill. Uselessprinted materials can also be recycled andreused.4. Reducing Paper WasteRather than creating a paperless office,computer use has vastly increased paperconsumption and paper waste. Here are somesuggestions for reducing waste:Print as little as possible. Review andmodify documents on the screen and use printpreview, Minimize the number of hard copiesand paper drafts made.Instead of printing, save information todisk.Recycle waste paper. Buy and userecycled paper in the printers and copiers.Do not print out un-necessary e-mailmessages.Use e-mail instead of faxes or send faxesdirectly from the computer to eliminate theneed for a paper copy.One sided printed papers can be used asscrap papers.W h e n g e n e r a l i n f o r m a t i o n - t y p edocuments can be shared by circulating thesame copy within an office.5. Power SupplyIf a PSU (power supply unit) meets thegreen certification, it will use only the power itneeds at a given load. In other words, it won'tuse more power than it needs. It’s the heart of agreen PC, since it manages the power for allthe other components. For this always useHigh quality SMPS (Switch Mode Powersupply).6. StorageFeatures like the reduced RPM lowpower,idle mode with fixed rotation speed forreduced power consumption has beendeveloped. The second option is to use a solidstate hard drive (SSD). The SSD uses lowpower, Less operating temperature, lesshazardous materials in comparison to normalharddisk drive.7. Video CardA fast GPU (Graphics Processing Unit)may be the largest power consumer in acomputer. It is normally used for High-endgraphics designing, viewing picture andplaying 3D games; but due to lack ofknowledge user get it assembled even if use isnot required. Energy efficient display optionsinclude using motherboard video output, usinga shared terminal, shared thin client, reusingan older video card that uses little power etc.Many new electronics that were sold in theUnited States already meet the EuropeanRestriction of Hazardous SubstancesDirective (RoHS), a standard for banning thegeneral use of six hazardous substanceswhich includes lead and mercury, and manymanufacturers are helping in reducing tofurther use of toxic substance.But in India, the principle of “GreenComputing” is facing a dilemma due to manysocio-economic matters. So far, consumershaven’t cared about ecological impact whenbuying computers, they’ve cared only aboutspeed and price. Now time has come to thinkabout our ecology, consumer should becomepickier about being green, devices that useless and less power while renewable energygets more and more portable and effective.-102-Anusandhanika / Vol. III / No. I / January 2011

ConclusionSo green computing is a mind set thatasks how we can satisfy the growing demandfor network computing without putting suchpressure on the environment. There is analternative way to design a processor and asystem such that we don't increase demandson the environment, but still provide anincreased amount of processing capability tocustomers to satisfy their business needs.Green computing is not about going out anddesigning biodegradable packaging forproducts. Now the time has come to thinkabout the efficient use of computers and theresources which are nonrenewable. It opens anew window for the new entrepreneur forharvesting with E-waste material and scrapcomputers.References1. San Murugesan, “Harnessing Green IT:Principles and Practices”, IEEE ITProfessional, January-February 2008, pp24-332. http:/en.wikipedia.org/wiki/Green_ computing3. http://www.thegreengrid.org4. http://www.seminarprojects.com/Threadgreen-computing-a-seminar-report5. International Journal of of Grid andDistributed Computing,Vol.2, No.3,September, 2009, pp 33-38-103-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 104-107ISSN 0974 - 200XImpact of globalisation on Indian women : ReflectionsIntroductionGlobalization has been one of the mostfrequently used expressions in economic andpolitical discourse over the last two decades.Its merits and demerits, advantages anddisadvantages and as to who would be itsgainers and losers have been debated. It hasbeen the subject of innumerable lectures andspeeches, seminars and workshops.Thousands of papers and articles innewspapers and academic journals; andscores, if not hundreds of books andmonographs have been written on the subject.International Financial Institutions, MultinationalCorporations, Government of most of theDeveloped countries and many influentialintellectuals, economists and politicians havenever got tired of admiring it as a natural andnecessary process with immense potential forthe betterment of humankind. On the otherhand, a number of independent intellectuals,economists, social scientists, trade unions,number of n-government organizations andcivil society groups have expressed seriousreservations, If not opposition, to globalization.They have, in particular, highlighted it asiniquitous on developing countries and under -developed countries, disadvantaged groupsand labour.AbstractWomen’s lives in India and the world over are circumscribed by what can be termed as the ‘five Ps’-patriarchy; productive resources access inadequacy; poverty; promotion advancement insufficiency; andpowerlessness. At the core of this circle of denial of and gender discrimination in their rightful entitlementsof life, education and training for a technological world, health and social security, lies the gross violation ofthe human rights of women embodied in structural and outward forms of violence perpetrated by the tripleconcentric circle of the family, community and society at large, now being compounded by the state underpressure of policy prescriptions of Structural Adjustment Policy (SAP) and Globalization. The authormaintains that the “ gender relationship of dominance and subordination is a political relationship whichderives material sustenance from conditions and structure of production and its legitimacy from a traditionor culture which upholds subordination of women .”In analyzing the impact on women’s lives in general and inIndia in particular, the inherent inequality, discrimination, disinheritance and non-endowment is aggravatedhundred- fold by the trends and tendencies imposed by globalisation.Keyword - Globalisation, Indian WomenDr. KaminiLecturer, Department of CommerceJamshedpur Women’s, College, Jamshedpur-104-Now since the process of globalizationhas gone on for over two decades – our ownexperience in India has been of almost twodecades- it is possible to see the extent towhich real situation reflects the viewsexpressed by its proponents and opponentsAuthors highlights some of the aspects whichare commonly ignored in India.Globalization of economic relations aimsat increasing production, enhancing efficiency,creating employment and providing socialsecurity benefits. Various reforms areintroduced to attain these goals. The NewEconomic policy (NEP), General Agreementon Trade and Tariffs (GATT), renamed asWorld Trade Order (WTO) from January, 1995,liberalization and privatization are some of themechanism / agencies which are supposed tobe influencing the change process in thisdirection. But the reforms are being severlycriticized as most of the them are pro-rich. Thesurplus only makes the rich richer instead ofbeing channeled for poverty alleviation (Dhar,1995). In fact. Reforms should not deprivemajor or significant section of population oftheir source of income, without providing thema viable alternative (Ranade, 1995).

Materials and MethodsThe present study is exclusively based onthe secondary data collected from differentpublished sources such as Articles, The HinduNational Paper, Various reference papers, etc.the objectives of the study have been verifiedusing secondary data.Results and DiscussionsA crucial fallout of modernization andglobalization is their adverse consequencesfor the women in the third world countries, Anyimpact on the society’s economy, whether it isrecession and inflation, cut in jobs, destructionof the handicraft industry, ruin of the selfemployedsector or impoverishment in general–all tend to hit the women first, Similarly spreadof women values and commodity forms alsotargets the women first. Ever since the crowingof Indian girls as Miss Universe and Miss Indiain the same year and the holding of an“Indianized” version of the Miss Worldcompetition in India two years later, there hasbeen a surfeit of beauty contests , catwalksand modeling shows in India. Beauty hasbecome a business with more and more girl’swanting to be models or beauty queens. Andfor those who feel there is nothing alarmingabout this let us remember that the idols ofthese girls are not the Sushmita Sen andAishwarya Rai of India but the (Supermodels)Claudia Schiffers and Noami Campbells of theWest. Also the consumer products related tothe fashion and beauty industry aremanufactured primarily by the West andmarketed to the “modernizing” societies. Allthis is being overlooked by the indigenizationperspective which is basking in the warmth ofthe glamour and optimism attached to theprocess of globalization and modernizationSabbarwal (1999).An increasing trend of consumerism, violence,individualism and sexual promiscuity is likely tohave dangerous consequences for the societyand especially for women. Increasing vilence,both outside and within the household, alsohas disastrous consequences, increasing-105-trend to crime against women, especially thesex related crimes, points towards a furtherdeteriorating situation. According to theinformation provided by the crime recordbureau of the Home Ministry, a women israped every 47 minutes, another is kidnappedor abducted every 44 minutes, while a third issubjected to cruelty by her husband orrelatives . Nearly 17 dowry deaths are reportedevery day (Kaur 1999).The strategy of development was totallyreversed in 1991 when we adopted theNational Economic Policy. Now, more andmore social sectors like health, education,transport and communication are beingprivatized. No subsidies will be available inthese sectors hence forth. All social welfaremeasures are going to be stopped and peoplehave to pay for all these services. Theemphasis is on the free market, exportpromotion and globalization. The arrival ofmultinationals has promoted the introductionof sophisticated technology and automation.This has resulted in unemployment increase inthe unorganized labour force, faminization ofpoverty, and the winding up SSI's that employwomen in large numbers. This change fromwelfare development to economic developmentwill make women the victims and their positionin society will deteriorate Ramanamma (1999).In the modern era of emulative competitionand the age of globalization and privatization,the handloom sector has been facing hurdlessometimes menacingly insurmountable,notwithstanding the fact that Assam tops themap of India with 6.94 looms which is 16.4 percent of the national total of 42.24 lakh looms(Ghosh;1994). The general trends ofmarginalization and weakening of the smallscale and cottage industries as a sequel toglobalization and economic reforms wouldhave drastic consequences in the North-Eastas its total dependence is on the small scaleindustry. This will have a wide ranging effect onthe women of the region who have all alongbeen very active participants in this industry.Anusandhanika / Vol. III / No. I / January 2011

Thus Economic reforms have had an adverseeffect on the life of women weavers ofSualkachi, Assam (Mohanta & Sonowal.1999).The process of globalisation of agriculturehas raised serious concerns of displacementand loss of livelihood for agricultural workers inthe country because of labour displacingmechanization and other new technologies, asalso changes in crop patterns. This is one ofthe major findings of a research projectcommissioned by the International Union ofFood and Agricultural Workers (IUF) to studythe impact of globalisation on farm workers inIndia. Although labour has tried to cope withthe situation by resorting to increasedmigration and entry into non-agricultural work,opportunities for doing so seem to be limited,the report observed. Land owners seem toprefer women as they are able to pay less andfind them a docile and dependent workforce.Thus wage discrepancies between menand women have continued. Agricultureseems to have become a sector where thecomparatively less privileged women workersare being used increasingly as marginalizedworkers (Chandrasekhar, 2008).ConclusionThere are the consequences of thetransfer of technology for women. Are alleconomic and technological developmentsbeneficial for all segments of the population? ifnot, who should take the decision to introducenew social policy? Who should decide whatkind of technology needs to be introduced andfor whom and in which occupations?Increasing consumerism which is intentionallypromoted in the market-oriented globaleconomic policy, further devalues thehousehold role of women. Globalization for anIndian women could have been interpreted asamelioration of women’s status decline in herfertility obligations, a reduction in her mortalityand contraception burdens, her empowermentso that she could overcome her predicamentsand her active participation in all thedemocratic institutions of society to ensureequity and justice. Historically, there have-106-been a few Indian women who enjoyed suchstatus but they are exceptions and not the rule.The stark reality is that Indian women havebeen and remain backward, looking illiterature,overburdened with excessive child bearing,carry excessive mortality and contraceptiveburdens, and work mainly in the primary sectorof economy. Globalization further helps tofeminize their poverty by bringing them to thelevel of poorest among the poor. They arevictims of social neglect and crime, and sufferlife-long injustices, inequalities and discrimination.Their standing in the globalized society willfurther deepen their miseries. Fortunately,some of women can achieve high status,demographic advancement, literacy andeducation at much lower levels of economicdevelopment. The position of women dependsmore on social development, and policies andpriorities of the state. The governments at theState and national levels have been adoptinghalf-hearted, piecemeal policies for womenand their priorities are the last in the list.Women have to overcome social, and politicalbarriers by prioritizing democratic decisionmaking to bring equity and justice at the locallevels and then at the global level. Themovement of the empowerment of women hasto go a long way.As the various strategies adopted do notaddress to the problem of the poor, fewalternatives need to be looked into, such asupliftment of human life as a whole, emancipationof women and the rights of women, improvementfor sustainable development and preservationof environment and emancipation of labourforce.References1. Chhandrasekhar G., Study on impact ofGlobalization: women agricultural workforce,a discriminated lot. Vikashini , Vol. 23(3),2008, p 152. Dhar Ranjit, Liberalization and povertyalleviation, The Hindu 28th march, 19953. Ghosh Jayanti, Gender concerns inmacro-economic policy. Economic &Political Weekly , Vol. 29, April 30, 1994Anusandhanika / Vol. III / No. I / January 2011

4. Geetha R., Towards an alternaiveperspective on globalization The review,Vol.11,(11) December, 19935. Rajput Pam (ed), Women and globalization,Ashish pub. House, Delhi, 1994, p 3936. Ranade Sudhansshu, The viability ofreforms, The Hindu 7th February, 19947. Sethi Raj Mohini, Globalization, cultureand women’s development, Rawat, Delhi1999, p 3688. Sabbarwal Sherry, Indigenization ofmodernity : cultural globalization and thethird world. In Globalization, culture andwomen’s development edited by RajmohiniSeth, Rawat, Delhi, 1999, pp 77-89-107-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 108-111ISSN 0974 - 200XIntroductionRole of Insurance in uplifting-The life-styles of the tribals of Ranchi DistrictInsurance is an Rs.400 billion business inIndia and together with banking services itadds about 7% to India’s GDP. Gross premiumcollection is about 7% of India’s GDP and isgrowing between 15% and 20% per annum.The total investible funds with LIC of India arealmost 8% of the GDP. Though, India has thehighest number of life insurance policies inforce in the world, yet more than three-fourth ofthe India’s insurable population has no lifeinsurance cover.LIC was established on 1st September1956 to take over the assets and the liabilitiesof the erstwhile insurers and to carry on lifeinsurance business in the country, and so wasthe GIC. It was proposed that the insurancecompanies have to work for the betterment ofthe society especially the backward classes.However, the insurance companies today arebeen diverted from the original path and arebeing running totally on the commercial lines.The economically backward classes arelargely ignored. There are several policiesdesigned for them such as Jivan Rekha Policy,Gramin Janta Personal Policy, GraminPersonal Policy, Bima Sandesh and evenspecial tribal packages. But, unfortunately,Dr. Jayant ChakrabortyLecturer, Department of CommerceSt. Xavier’s College, RanchiAbstractIn this new millennium, everyone wants to get assured as well as insured in every way, then why leave thetribal and that also just because they do not earn well. The tribal too have their own society, which is rich ionevery way so why are they being left out in securing their life and earnings? This paper is mainly aimed atmeasuring the role of insurance in uplifting the quality of life of the tribal of the Ranchi district. The fastchanging political and economic scene of the ChotaNagpur area requires proper study of the tribal life. It is ahigh time to review the tribal situation, especially related to the economic and social problems, which arefused into one. This is the time now, to shape their life to survive and compete with other races in the changingera stepping into the next millennium. The study would help the insurance companies and the governmentsthat they can do something that can help the tribal realize how valuable their life is. It would assist to explore awide market for the nationalized insurance companies as well as the multi-national companies about how toapproach the insurance market on account of privatization of the insurance sector.Keyword - Urban Agglomeration, Red- Tapism, Administrative Reforms Committee-108-none of them have been successfullyimplemented nor have been able to explore themarket in that segment just due to the problemfaced in the collection of premium and alsobecause it seems to be a low profitablesegment for them. The major cause of failure ofthe insurance companies in this segment isdue to the following facts: (a) unawarenessamong the tribal and other backward classes(b) Economic backwardness (c) Lack ofcommunication (d) Fatal mindset among themasses (e) The marketing people are notinterested to go there due to low premiumcollection (f) Illiteracy among masses (g) Lackof personal approach (h) Problem of “Red-Tapism” and government officials (i) Lack ofcaliber in the marketing professional (j) Lack ofcompany initiative (k) Ethics of the company.Materials and MethodsThe contents have been taken fromrelevant books and brochures related to thedifferent policies set up by the insurancecompanies for the benefit of the tribal.Intensive fieldwork in the interiors and theoutskirts of the district has been taken for aclear understanding of the problems of tribals.The rural development offices and the tribalinstitutions have been consulted for moreassistance.

Results and DiscussionsThe district of Ranchi with a population of2214048 persons is divided into 43 communitydevelopment blocks consisting of 3783inhabited villages out of a total of 3195 villagesincluding 103 with the constituent units oftowns in the district and 10 towns. With 4.39per cent of the total population of the statecomprised within the district, it ranks 5th in thestate in order of population.It would be seen from the given data thatthe variation in the distribution of populationamong the C.D Blocks are very wide. Kankeblock emerges as the most populous blockaccounting for 19.47 per cent of the districtbecause it contains Ranchi urban agglomeration(consisting of Ranchi Municipal Corporation,the district headquarters and Kanke town). Theurban population content in Kanke block is tothe extent of 84.11 per cent of its totalpopulation.The average population of a developmentblock in the district is 71405. Ranchi district hasan urban population of 642409 comprising20.92 per cent the state population. The districtis much ahead of the state in the matter ofurbanization. Besides extensive industrializationand mining as also other socio-economicfactors, the constitution of Ranchi MunicipalCorporation involving the extension of theurban limits of Ranchi city may also beresponsible for this.Table showing numbers and percentage of people in Ranchi districtArea18331 sq.kmBorder Shared North HazaribaghSouthWest SingbhumEastWest – Bengal BorderWestPalamu, Lohardaha,GumlaTotal Population 2214048 Men: 1152736 Women:1061312Total Rural Population 1483393 Men: 759740 Women: 723653Total Urban population 730655 Men: 392996 Women: 337659Total Population of 123239 Men: 64292 Women: 58947Scheduled CastePercentage of 5.57%Scheduled Caste InTotal PopulationTotal Population of 964422 Men: 490510 Women: 439127Scheduled TribesPercentage of 43.56%Scheduled Tribes InTotal PopulationPopulation Growth 1971-81 23.68%Rate 1981-91 21.42%Density of Population 1981 2371991 288Male –Female Ratio 1981 928(Every 1000 males) 1991 921Literacy 51.52% Men: 613949 Women: 313816Sub-Division Ranchi Sadar Khunti-109-Anusandhanika / Vol. III / No. I / January 2011

Table showing population figures and no. of villages of Ranchi district, 1981Name of Dev.BlockPopulationTotalPopulationMalePopulationFemaleNo. ofVillagesKanke 94995 49833 45162 131Namkum 74722 38562 36160 121Ratu 77603 39462 38141 91Bero 59355 303348 29007 114Lapung 39933 19697 20236 79Chanho 48568 24731 23855 67Mandar 58627 29588 29039 69Burmu 79452 41893 37559 98Ormanjhi 48375 24592 23783 91Angara 74825 37811 37014 92Silli 72930 36867 36063 113Khunti 51620 23151 26166 159Murhu 54946 27138 27358 141Rania 29342 14165 15177 67Torpa 57153 28035 29118 95Karra 67329 33367 33962 178Bundu 40154 20113 20041 90Sonahatu 74616 37224 37393 101Tamar-1 85091 43288 41803 120Arki 55385 27702 27683 128Simdega 71912 35312 36570 96Kolehira 45969 22843 23126 53Bano 58891 29098 29793 93In consonance with the recommendationsof Administrative Reforms Committee, LICdevised special schemes and recruited localpeople and trained them for the procurement ofthe rural business. The corporation introducedRural Career Agent Schemes in February1979, which envisaged recruitment andtraining of the rural agents -Annual Reports ofLIC Schemes were designed to cater to theneeds of the rural population which increasedrural business. Thus, the corporation’s ruralinsurance includes individual insurancepolicies to the break –off section of the ruralpopulation and low premium based on groupinsurance policies and subsidized groupinsurance policies for the weaker sections ofthe rural population. The various schemes runby LIC to provide security to the economicallyweaker section of the society through aninsurance cover are as follows:1. Social Security Group InsuranceSchemesThe government of India with an objectiveto provide security to the weaker section of thesociety, set up a social security fund in the year1998—1989 to provide subsidy up to 50% ofthe premiums under group insurance schemescovering such sections. The following 24occupational groups have been approved sofar for this purpose : Leather and TanneryWorkers, Lady Tailors, Handloom and KhadiWeavers, Handloom Weavers, HandicraftArtisans, Hamals, Fishermen, Cobblers, BrickKiln Workers,Beedi Workers, Papad Makersattached with SEWA, Physically HandicappedSelf-Employed Persons, Primary MilkProducers, Rickshaw Pullers/Auto Drivers,Safai Karamcharis, Salt Growers, Tendu LeafCollectors, Urban Poor, Forest Workers,Sericulturists, Toddy Tappers, Powerloom-110-Anusandhanika / Vol. III / No. I / January 2011

Workers and Women in hilly areas. It may thusbe seen that we have covered only 12% of thepotential, leaving a big group yet to be tapped.2. Landless Agricultural Labourer’s GroupInsurance (LALGI)Landless Agricultural Laborer is definedas an agricultural labourer, whose name doesnot appear as a landholder in Revenue recordsand he has no inheritable right to agriculturalland and his wage is paid in agricultureirrespective of the mode of payment i.e cash orkind. Under this scheme, heads of families whoare landless agricultural labourers, agedbetween 18 to 60 years are insured for a sum ofRs. 1000which was increased to Rs.2000 w.e.f10.01.1992. No premium is being chargedfrom the insured person. The claims are paidthrough the Social Security Funds.3. Integrated Rural Development Programme(IDRP)Under the Government’s IRDP, assistanceis given to member living below poverty line,who takes up self-employment in agriculture,horticulture, animal husbandry etc. The claimpaid under this scheme is not used to repay theloans, but goes to the beneficiaries of thedeceased. An amount of Rs.5000, w.e.f01.01.1994 is paid to the deceased nominee.There is Double accident benefit also.4. Swarnajayanti Gram Swarozgar Yojana(SGSY)A new programme known as SWARNAJAYANTI GRAM SWAROZGAR YOJANA(SGSY) was launched on 1st April, 1999. Thisis a holistic programme covering all aspects, ofself employment such as organization of thepoor into self-help groups, training credit,technology, infrastructure and marketing. Thispolicy ensures that a family has a monthly netincome of at least Rs.2000, subject toavailability of funds, the effort will be to cover30% of the poor families in each block duringthe next five years.5. Rural group life insurance (RGLIS)SchemeThe objective of this scheme, which cameinto effect from 15.08.1995,is to provide lifeinsurance protection to the rural masses.Persons aged 20 years or more but less than50 years are eligible to enter the schemes. Aperson aged 20 years or more but less than 50years who belongs to a household below thepoverty line will be eligible for the subsidy. Theannual premium is Rs.60 if he is aged 20 yearsor more but less than 40 years on the date ofjoining the scheme and Rs.70, if he is aged 40years or more but less than 50 years on thedate of joining the scheme.ConclusionThe following steps to make theseschemes more popular can be proposed in alogical manner. Marketing officials of P&GSand also the designated branch managersshould be involved in these schemes for betterprogress. One village under each division willbe selected where all the eligible personsunder RGLIS, both general and subsidized,should be covered. The name of such a villagewill be reported in various publicity media andthe Surpunch/Village Pradhan will behonoured. We shall honour the village levelworkers who have the maximum number ofpeople under these schemes under eachdivision of a function to be held at BlockHeadquarters. Closer liaison with the stategovernment should be aimed at, during theyear, for their added involvement. Designatedbranch managers of life insurance branchesshould meet at respective divisionalheadquarters for a review of performance.References1. Mohanty P K, Encyclopaedia ofScheduled Tribes in India, GyanPublishing House, New Delhi, 20082. Singh Sunil Kumar, Inside Jharkhand,Crown Publications, Ranchi,20053. Jharkhand Office of the Registrar Generaland Census Commissioner, 20074. Annual Report 200-2003, Ministry ofTribal Affairs, Government of India5. Tribal Development in the Fifth Plan:Some Basic Policy Papers, Vol. I and II,Ministry of Home Affairs, Government ofIndia, New Delhi6. Report of the Working Group forEmpowering the Scheduled Tribes Duringthe Tenth Five Year Plan, 2002-2007,Government of India, Ministry of TribalAffairs, New Delhi, 20017. Sadhak H, Life Insurance in India:Opportunities, Challenges and StrategicPerspective, Sage Publications, NewDelhi, 2009-111-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 112-115ISSN 0974 - 200XCommunication challenges for budding ManagersKeywords: Communication, Globalization, Culturally-diverse, Team-basedIntroductionOne can have the greatest technical skillsin the world, but without solid communicationskills, who will know and who can understand?Communication skills are an ever-evolving skillset you never have enough practice (KelvinJettson, President of Genisys ConsultingServices, 2005). Clearly, effective communicationskills are crucial for success in today’sworkplace. Competent writing and speakingskill can not only get one hired but also helphim to perform well and even earn promotions.If one decides to go into business, writing andspeaking skills can help obtain venture capital,promote your product, and manage employees.Walk through the halls of a contemporaryorganization – no matter whether it’s a smallstart-up entrepreneurial firm, a fortune 500global giant or a not-for-profit organization –and what do you see? Managers and otheremployees reading reports, drafting emailmessages, attending meetings, conductinginterviews, talking on the telephone, conferringwith subordinates, holding business lunches,reading mail, dictating correspondence andmaking presentations. In short, we see peoplecommunicating.Effective communication becomes all themore important during times of crisis or radicalchanges within the organization and acrossthe globe that occur as a result of mergers, sellouts,re-definition of strategies, deployment ofnew organizational structures, changes in theorganizational culture or top management,changes that result from innovations in productsChetna SinhaFaculty of English & CommunicationsICFAI University Jharkhand, RanchiAbstractThe benchmark for excellence at all levels in today’s workplace, especially managerial, is not how much oneis intellectually qualified but rather how one can communicate and relate oneself with and to each and everylevel of work and people. All the job vacancies today, undisputedly, ask for one thing in common and that is asound and effective communication skill. Against this backdrop, this article provides a brief introduction tosome major developments in the workplace that are intensifying the need to communicate effectively andimposing a challenge to the managers to develop their communication skills in order to sustain and grow inthe current scenario.-112-or processes, divestments, downsizing orexpansions.In the current context of ever changingworld, communication skills have become notonly the fundamental ability to functioneffectively as a social and a professional beingbut also a necessity for every individual. If wethrow a cursory glance at the various recruitmentadvertisements of major companies as well asseveral minor players in the corporate sector,we can clearly notice how specifically they allask for persons with excellent communicationskills (and also interpersonal skills) beside therequisite ‘skill set’ in areas of specialization.However, communication is yet anaffliction than skill in India. It is a matter ofconcern that most of the graduates coming outof Indian universities are unemployed becauseof their lack of communication abilities. If wedelve deeper and be specific to the youngmanagers coming out of the managementinstitutes, this is a stark reality which may affectcurrent progress and also hamper our futuregrowth. Industry-relevant managers are yet tobe produced to meet the requirements ofIndian corporate and business world. Thetrinity of academic institutions, corporatebusiness houses and the government alongwith the individual candidate can no moreafford to ignore this stark reality.Management, as we all know, is acomplex practice of communicating with otherpeople, the importance of communicationcannot be confined to any one area. Formanagement as well as organizational

theorists, communication is a key element andtheoretical construct, respectively, fordescribing and explaining organizationalphenomena (Blake & Mouton, 1976). In hisclassic study, Mintzberg (1975) demonstratedthat communication in its various forms is oneof the key tasks of the managerial role.Moreover, effective communication in anorganization can:1. Foster greater commitment (Dutton et al,1994; Kane, 1996)2. Increase job satisfaction (Miles et al,1996)3. Act as a conduit for promotion anddevelopment4. Facilitate the diffusion of teamwork (Pettit,1997)5. Improve internal control and facilitatestrategy development (Steinberg, 1998)Trends of globalization, market liberalization,deregulation and technical evolution arerestructuring global market and challengingtraditional approaches to gaining competitiveadvantage (Haevel, 2000). Businessexecutives and management students wishingto be dynamic and effective players in theglobal economy of the 21st century mustacquaint themselves with the variousperspective of communication.Career uncertainties, rightsizing, thepressure of working in a multicultural environmentand the pressure of reaching out to thestakeholders through corporate communicationchannels have vitalized the importance ofcommunication.In this context we need to understandcertain basic things about communication –the process of sending and receivingmessages – sometimes through spoken andwritten words and sometimes through suchnon-verbal means as facial expressions,gestures, and voice qualities. However,communication is effective only when themessage is understood and when it stimulatesaction or encourages the receiver to think innew ways. The ability to communicateeffectively increases productivity of bothindividuals and organizations. The figurebelow clearly illustrates what an effectivecommunication can do.-113-Steadier workflowStrongerdecision makingClearerpromotionalmaterialsQuickerproblem solvingEffectiveCommunicationWithout effective communication, peoplemisunderstand each other and misinterpretinformation. Ideas misfire or fail to gainattention, and people and companies flounder.In fact, studies show that on an average, 14%of each 40-hour work-week is wasted becauseof poor communication between staff andmanagement.Whether an organization is large, small, orvirtual, sharing information among its parts andwith the outside world is the glue that binds theorganization together. When one joins acompany, you become a link in its informationchain. Whether one is a top manager or anentry-level employee, one has information thatothers need in order to perform their jobs, andothers have information that may be crucial forthe former. In fact, communication is thelifeblood of an organization. It includes theinternal and external structure through whichmessages pass and the way information ispresented, as well as the actual context ofmessages themselves.As one exchanges information withpeople inside and outside the organization, weuse a variety of formal and informal forms ofcommunication as shown below:FORMALINFORMALImprovedstakeholdersresponseINTERNALPlannedcommunicationamong insiders(letters, reports,memos, emails) thatfollows the companychain of command.Casualcommunicationamong emplyees(email, face-to-facecommunication,phone calls) that donot follow thecompany's chain ofcommandIncreasedproductivityStrongerbusinessrelationshipsEnhancedprofessionalimageEXTERNALPlannedcommunication withoutsiders (letters,report, memos,speeches, websitesand news-release)Casualcommunication withsuppliers,customers,investors and otheroutsiders (email,phone calls)The above chart clearly shows how theformal and informal modes of communication,both internal and external are the key to anybusiness.Anusandhanika / Vol. III / No. I / January 2011

Materials and MethodsThis study is mainly based on the use ofavailable literature in the form of books,journals, reports etc. The approach followed inthis papers is purely textual. The materialsused have at time been drawn from the websiteand extreme care has been taken to beobjective in approach.Results and DiscussionsGood communication skills have alwaysbeen important in the workplace and in an agewhen a lot is being experienced inorganizations in terms of career uncertainties,rightsizing, the pressure of working in amulticultural environment, and the pressure ofreaching out to the stakeholders throughcorporate communication channels, the needfor good communication skills is beingincreasingly felt at all levels.In the above contexts, communicationskills have become not only the fundamentalability to function effectively as a social and aprofessional being but also a necessity forevery individual. They are even more vitaltoday, when the changing work place hasbrought various communication challenges forthe business world: advanced technology,globalization, increasing culturally diverseworkforce and the adoption of team-basedorganizational structures.Advances in TechnologyTechnological advances, such as internet,email, voice mail, faxes, pagers and otherwireless devices have revolutionized the waypeople communicate. They have increased thespeed, frequency and reach of communication.People from opposite ends of the world canwork together seamlessly, 24 hours a day fromanywhere even out of their office – cars,airports, hotels and even home. Technologyhas created an expectation for instantanswers. Not only is it unrealistic foremployees to ignore a crucial project or a spateof email messages asking for additionalinformation, but it’s quite common forprofessionals to find themselves constantlytied to work. They make calls on their cellphones as they commute. They check theirpagers and voice mail at business meetings, intheir kitchens and at the grocery stores. Theytake work home and plug into their companyintranet in the evening. Even when they are onvacation, some find it easier to take an hour out-114-of their day to check e-mail and quicklyrespond than to return to work and tackle over1,000 email messages. “I’d be lost onMonday”, notes a manager, “if I didn’t spend anhour or so on Sunday evening cleaning up mye-mail”. However, this increased use oftechnology requires employee to communicatemore effectively and efficiently. Technologyshowcases your communication skills – yourwriting skills are revealed in every e-mailmessages, and your verbal skills are revealedin audio and video teleconferences.Furthermore, intranets and extranets facilitatecommunication among employees, managers,customers, suppliers and investors. Thechallenge of communicating with people insideand outside the organization is magnified asmore businesses install such networks and asthey increasingly engage in electroniccommerce.Globalization and a culturally diverseworkforceMore and more businesses today arecrossing national boundaries to compete on aglobal scale. Successful management oftoday’s global firms demands an altogetherdifferent mindset, which is sensitive to thecultural differences that exist among nations.For any global firm, there is no single productthat satisfies all customers across nations or asingle way of motivating the workforce that willwork in all nations or a single way of runningthe business. The most important factor thatchallenges the global firms is ‘culturaldifferences among nations’. A growingpercentage of workforce are made up ofpeople with diverse cultural and ethnicbackgrounds, a trend that will continue in theyears ahead as diversity will have profoundeffect on our lives and will pose a growingchallenge for managers.Increased globalization and workforcediversity mean that employees mustunderstand the laws, customs and businesspractices of many countries and be able tocommunicate with people who speak otherlanguages.Team-based organizationsIn today’s fast paced, e-commerceenvironment companies no longer limitdecisions to a few managers at the top of aformal hierarchy. Instead, organizations useAnusandhanika / Vol. III / No. I / January 2011

team and collaborative work groups to makethe fast decisions required to succeed in aglobal and competitive marketplace. Althoughworking in team has many advantages, it alsooffers many challenges, as team membersoften come from different departments,perform different functions, and come fromdiverse cultural backgrounds. And hence, inorder to function in a team-based organization,you must understand how groups interact,reach decisions, work collaboratively andresolve conflict along with being able to listenand to understand others, give balancedfeedback, explore ideas and credit others’work. Doing so requires a basic understandingof the communication process in organizationalsettings.ConclusionIn the light of the above facts, it is clear thatimproving one’s business communicationskills is the key to creating lean, efficientmessages. People with good communicationskills have definitely an advantage asachieving success in today’s workplace isclosely tied to the ability of employees andmanagers to communicate effectively witheach other and with people outside theorganization. With good communication skillsthey can anticipate problems, make decisions,coordinate work flow, supervise others,develop relationships and promote productsand services. Understanding how communicationworks in business and how to communicatecompetently within an organization can helpone participate more effectively in everyaspect of business. Hence, it is very importantto know and understand the basics ofcommunication and develop effectivecommunication skills for the budding managersin order to overcome various challengesimposed by today’s vast and changingeconomy. In the words of Brian Tracy“Communication is a skill that you can learn.It’s like riding a bicycle or typing. If you’rewilling to work at it, you can rapidly improve thequality of every part of your life”.References1. Reddy Sumati, Training and Development:perspective from the Service Sector,ICFAI University Press, Hyderabad, 20072. Mishra Dharmesh, Soft Skills: AnEssential ingredient for Success, ICFAIUniversity Press, Hyderabad, 20083. Ober Scot, Contemporary BusinessCommunication, Biztantra, New Delhi,20054. Stephanie Armour, Failure to communicate– Costly for Companies, USA Today, 19985. Bovee, Thill, Schatzman, BusinessCommunication Today, Pearson Education,New Delhi, 20056. Sterller Jay, Overload, Across the Board,19967. Dutta Suparna & Chander Mohan, TenCommandments of Effective Communication,Science tech Entrepreneur, 20058. Sen Leena, Communication Skills,Prentice Hall of India, New Delhi, 20049. Raymond Lasikar, Basics of BusinessCommunication, Homewood, Inc. Illinois,198210. Ronald B. Alder & J.M Elmhorst,Communicating at Work, McGraw HillCompanies, Inc. Toronto, 199611. Wiseman Richard & Shuter Robert,Communicating in Multicultural Organizations’,Sage publications, New Delhi, 199412. Gary L. Kreps, Organizational Communication,Longman, London, 1996-115-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 116-118ISSN 0974 - 200XThe Importance of Customer Application Documentationprocess in TelecomKeywords: Prepaid connection, Checklist, Activation, CAF Scanning & StorageIntroductionCustomer Application Form is veryessential in Telecom industry. Thereforespecial emphasis is on the filling up of the CAF(Customer Application Form) by the customer,verification done before the CAF goes forstorage. Customer visits nearest retailer pointfor a prepaid connection. The documentationprocess happens thereafter. The RetailerChecklist on CAF Submission by the customer.Activation of the SIM card happens thereafter.The distributor back end activity happensfollowed by the activation in the system and thefirst call is made by the customer. CAFscanning and storage is done finally.Materials and MethodsThe present study is based on primary aswell as secondary sources. Primary data hasbeen collected through personal interviewswith the help of questionnaire schedule andobservation. Secondary data has beencollected through available literature in form ofbooks, Journals, reports and websites.Results and DiscussionsRetailer explains the plans available andrecommend as per customer usage, to thecustomer when he visits the retailer point forthe subscription. Retailer also explains thePriya SrivastavaFaculty Member, ICFAI UniversityRanchi, JharkhandAbstractThe telecom market in India is growing with each passing day. With the advent of new players, this growth isbound to sustain.The Indian economy, despite the global slowdown, is also pegged to grow in excess of 6% inthe next financial year. With tremendous amount of scope for expansion in the subscriber base, it is alsoimperative that we have a sound and robust structure to sustain this huge data base within the telecomorganizations. This is mandatory to have a free flow customer service as well as for social security reasons forthe country. In order to have the above system in place, we should have a flawless documentation policywithin the organization. At the same time, it should also be emphasized upon on ease of activation for thecustomers, so that his experience of onboarding in telecom is good and with ease. He does not have to gothrough the cumbersome process of documentation. He should have a hassle free activation process whichalso takes into consideration the things which are mandatorily required in the national and the customer’sinterest. As there is a stiff competition, it is tried by the telecom companies that their customers undergo avery smooth activation process and in their endeavor to achieve this are ready to walk that extra mile toachieve customer delight.-116-documentation process to the customer. Acustomer needs to fill the CAF completely.Customer are required to submit thefollowing documents1. Clear Photograph (passport or StampSize Color/ B&W) affixed on CAF with selfattestation (as per circle VTM consent).2. Clear Photocopy of Photo ID Proof (Listavailable with FOS as per VTMguidelines).3. Clear Photocopy of Address Proof (Listavailable with FOS as per VTMguidelines).Retailer to ensure the following beforeactivation of number1. Completeness of CAF.2. Photograph ( passport or Stamp SizeColor/ B&W) properly fixed on CAF withself attestation3. POI/POA ( Proof of Identity/ Proof ofAddress as per DOT-TERM guidelines4. Retailer sign & stamp on the CAF ,POI/POAPost completion of documentation,retailer to initiate activation request. Retailer tocompose a messageActMSISDN. Retailer to send this

message to a specified no as per thecompany’s rules. (Toll free). This process mayvary from company to company.On receipt of Activation SMS, System willdo the validation wthether Retailer is anauthorized retailer in EVD Distribution Tree ornot.1. Validation to check the Retailer is anauthorized retailer for doing GSMActivations2. Is GSM launched in this circle or not?3. Is this the first message received in thesystem for that MSISDN?4. Does Customer Mobile No have 10 digitsor not.5. Does customer Mobile No belong to GSMor not.6. Does the Retailer belong to the GSMrolled out circles or not.7. Does Customer Mobile No and theRetailer Mobile No belong to the samecircle or not.8. Basic validation on CAF Number shouldbe of 6 digitsAfter Successful validation, prepaidsystem will activate customer in blocked statuson following platforms:1. Mobile No will be created on the billingplatform in VALID state with the sameprofile for which the starter packgenerated.2. Mobile No will be created for the SMScharging.3. Mobile No will be created in the HLR(Home Location register) in Barred State.After the subscriber being in blockedstatus, SMS server has to initiate 3 activities asfollows:1. Send one confirmation SMS to retailerconfirming receipt of the request.2. Send an SMS to Sales Executive attachedwith concerned retailer to collect CAFfrom the retailer.3. Send an SMS to concerned distributor forconfirming the activation request with theCAF number.If the validations returns failure response,SMS will be sent to Retailer only with thespecified text and no action will be initiated i.e.Mobile No will not be activated on any of theNetwork Elements.-117-Note: The activation process will varyfrom company to company. The above processoutlines the basic process of activation.After Successful validation, prepaidsystem will activate the customer Postactivation; customer initiates the first call, andconnects to IN IVR for language selection. IVR(Interactive Voice response) announceslanguage selection in the same language.Customer selects the language of choice andthereafter, IVR confirms the current balanceand the validity and call routes to dialeddestination number.The distributor sends his sales guy to theretailer point for the CAF collection. All theCAF’s are collected at the distributor pointwhich further goes to the Data ManagementAgency for entry in the system. Non CompliantCAF’s to be sent to retailer for rectification.Distributor to prepare the list of AcceptedCAF’s.Post order entries in the system, thedocuments are sent for Scanning. Postscanning, documents to be sent for indexingand Filing in warehouse. CAF and documentsare assigned unique numbers for tracing forwhat-so-ever reason later on.Agency runner returns the rejecteddocument to same TATA outlet/ Distributorduring pickup. Return of document from DMS(Data Management Agency) agency would bedone for those documents where correctioncan be done at distributor point only. Distributor/ Showroom Executive examines the rejectionreason. Sales Executive to resubmit thedocument after correction.Must Know Important Informationregarding Prepaid Documentation & Activationis as follows:1. Local referee/ Local address to obtain onCAF for issuing connection to ForeignNational Customers2. Over-writing and cross-cutting are notallowed on CAF and other documents.3. Authorization letter of the authorizedrepresentative of company with passportsize photograph on letter head required ifconnection is to be issued in the name ofcompany4. Post completion of documentation,retailer to initiate activation requestretailer sends a messageAnusandhanika / Vol. III / No. I / January 2011

ActMSISDN to a Company’s specified number.(toll free)5. Post activation, Customer needs to do anyMobile originating activity (be a call orsms) and Billing status State will changefrom Valide to Active. However, if no talktimeis available then customer can makecall to IVR.6. Outgoing services will be barred on the 7thDay from date of activation incase we donot receive customer’s CAF by then7. Barring is restricted on Sundays andNational Holidays8. Premium numbers are not given asprepaid connections9. CAF Should be submitted to DMS agencywithin 7 days of activation for Cluster Townand 10 days of activation for UpcountryTown10. Photograph on The CAF should be selfattested11. Retailer should be an authorized retailer toactivate a customer and should beauthorized for doing GSM activations12. After Successful validation, prepaidsystem activates customer in blockedstatus on following platformsConclusionThe above is done very stringently so thatno mistakes happens. After all this is a veryimportant aspect from the customer happinessperspective as well as for social securityreasons. For example if there is an externalthreat to the country or some terrorist act, it canbe very well traced by the telecom company.This can only be possible if we have aneffective and a stringent documentation policy.Thus we can say the adoption of the abovemeasure for documentation will give a smile onthe customer’s face as he can use the servicessafely in an uninterrupted way. This will enablehim to have a good "moment of truth”experience with the company and theCompany’s objective of having a satisfied anda loyal customer will also be attained.References1. Anderson Kristin, Great Customer Serviceon the Telephone, Amacom Publisher,New York,19622. Evenson Renee, Customer ServiceTraining, Amacom Publisher, New York,20103. Bacal Robert,Perfect Phrases forCustomer Service,McGraw Hill, NewYork, 20054. Annabel Z Dodd, Essential Guide toTelecommunications, Prentice HallPublisher, 20055. Leon T Knauer,Telecom Act Handbook: AComplete Reference, GovernmentInstitutes Inc.,U.S., 19966. Ray Horak,Communications Systems andNetworks, M & T Books,New York,2000-118-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 119-121ISSN 0974 - 200XIntroductionThe credit card had its beginning in anembarrassing incident that took place in theearly 1950’s in America. The story goes thatMr. McNamara, a New York businessman tookhis friends out to dinner. At the end of meal hediscovered that he had forgotten his wallet athome, the proprietor was kind enough to allowhim a later settlement of bill. As McNamarastepped out of the restaurant he had thebrainwave for the introduction of creditmultibillion dollar plastic money businesscards - system of availing instant credit uponconfirming the identity of card holder. Thus wasborn the Diners Club Cards, the pioneer oftoday’s credit cards.Credit CardsMarketing strategy of S.B.I. Credit CardsDr. Md. Nezamuddin ZubairiSenior LecturerUniversity Department of Commerce & ManagementRanchi University, RanchiTanweer AlamResearch ScholarUniversity Department of Commerce & ManagementRanchi University, RanchiCredit cards are primarily seen as ameans of convenience in meeting onesexpenses. A person who holds a credit cardneed not pay in cash at the time of everyexpenditure. Instead he can deposit a lumpsum in the bank or the agencies of which heholds the credit card, to meet the expenditure.Some banks offer even flexible paymentoptions under which a card holder may berequired to pay as low as 10% of the amountAbstractIn the advancement towards a paperless transaction the credit card is a milestone. The 1950s plastic moneyof U.S.A. started with the nomenclature of Diners Club Card is now every ones need. The credit ofpopularization of credit cards in India largely goes to public sector banks. The State Bank of India played avital role in development and popularization of credit cards in India. The present article discusses about themarketing strategy of credit cards of State Bank of India.Keyword - Plasticmoney, Creditcard, Marketingstrategy, ATMs-119-due in the month. Thus though credit cardsstarted as a substitute for cash and theresultant safety and convenience, thecompetition in this business has made creditcards a source of short term finance also forindividuals.About SBI Cards1998 saw a new vista opening for theIndian credit card users. GE Capital Services,the largest issuer of private label credit cards inthe world and State Bank of India, the largestIndian bank created a company to address themarket. The State Bank of India Cards andPayment Services Ltd. (SBICPSL) and thetechnological processes and servicecapabilities of GE Capital to offer products thatare value for money and supported by qualityand service. The State Bank of India creditcards was set up in joint venture of State Bankof India Cards and payment services Ltd(SBICPSL) and GE Capital Business Processmanagement Services ltd. (GECBPMSL) toleverage the brand equity, customerrelationship and the unparalleled network. SBICards and Payment Services (SBI cards) is thesecond largest issuer of credit cards inIndia.GE Money and SBI had pumped in Rs.

200 core in the credit card business. This is amatter of great concern for the firm. As on 31stDecember 2007, the Non Performing Assets(NPAs) of SBI cards stood at 16.28% which ispossibly highest among the credit card issuersin India.In an email response, Archana Handa,Vice-president, Corporate communications,GE Money, said: "SBI Cards continue to be theNo. 2 credit card player in India, despite thetough market environment for consumerfinance. In our effort to continue being aleading player and face the industrychallenges in the coming year, some of ourstrategic initiatives include launching innovativenew products to meet the needs of differentcustomer segments, increasing penetration inthe SBI customer base, and further enhancingthe customer experience of every SBI creditcard holder."An executive who does not want to beidentified said, "Till recently, SBI Card wasadding around 25,000-30,000 new cards amonth, but a mandate was given to the topmanagement to raise this level to 100,000. Asa result of which, the company compromisedon the quality. But the loans that have turnedsticky are so small that it's not worth filing legalcases against the borrowers, as the cost offighting such cases will be more than themoney involved."Materials and MethodsThe present study is based on primary aswell as secondary data. The primary data willbe obtained from Company personnel, Salespersons, and end users (customers).Secondary data is collected from theCompanies websites, Magazines, Journalsand Newspapers. The study is contain bothexploratory as well as conclusive approach.Results and DiscussionsMarketing strategy is a process that canallow an organization to concentrate its limitedresources on the greatest opportunities toincrease sales and achieve a sustainablecompetitive advantage. Marketing strategyshould be centered on the key concept of-120-customer satisfaction.Carrying cash can be cumbersome anddangerous at times. But, plastic money or acredit card makes life a lot simpler. Thesecards can be swapped at almost anyestablishment around the globe. You can alsowithdraw cash on your credit card. Credit cardsare fun; but a best practices list could be handy.A credit card from VISA, MasterCard, orany other network allows paying for purchasesor services by borrowing from the credit cardcompany. The repayment is made throughmultiple option installment payments towardsthe amount borrowed. The facilitator need nothave to repay the whole borrowed amount infull at one go.Then there are charge cards, such as theAmerican Express card, that require fullpayment of the borrowed amount each month.Either way, the credit card is a very convenientalternative to paying by cash.Essentially a credit card allows you to :Purchase products or services whenever andwherever you want, without ready cash andpaying for them at a later date.Have the option of paying only a part of thetotal expenses. The balance amount can becarried forward, with an interest charged.Withdraw cash whenever, wherever youare, through ATMs and other withdrawalcenters.Enjoy a revolving credit limit without anycharges for a limited period (mostly 20 to 50days)Transact money of more than onecurrency, from one country to another. Otherfacilities afforded on a credit card includereward points on card usage, insurance coveragainst air and road accidents, loss ofbaggage, and so on. All credit cards have builtinsafety features like signatures and personalidentification numbers.Choosing the right credit card to suit thecustomer needs and making it workable is acomplicated exercise. The credit limit offeredby a credit card should be examined first. ThisAnusandhanika / Vol. III / No. I / January 2011

efers to the maximum amount the consumermay incur on his/her credit card before makinghis payment to the card issuer. Then, there isthe time period, also known as an interest-freeor grace period, which could range from 30 to45 days. Credit cards also come with differentcharges like interest costs on outstandingbalances, annual charges, and lost cardcharges. There are benefits too. Many cardscome with insurance, ATM facilities, stolencard protection and reward programs.Issue of credit cardsUsually, only banks are permitted to issuecredit cards. However, with special permission,even large travel houses or other companiesmay be permitted to issue credit cards, subjectto various approvals in their country ofoperation.Procurement of credit cardsThe procurement of credit cards involvesvarious steps.Identification of the credit card is the firststep. Then comes the filling up of theapplication form correctly with all the requisiteinformation. Provide supporting documentslike proof of income, copy of bank statement ofthe last six months transaction. Then it shouldbe send it to the credit card issuing companyeither through their authorized agent or directlyby courier to the designated address.Then after the company will process thecredit card application based on theinformation and the supporting documents. Ifthe documents are clear and to the satisfactionof the company, it would issue a credit card.Normally, it takes about 3 to 4 weeks fromthe date of application. The credit card isalways sent through a reliable courier and isdelivered only to the applicant. It cannot bereceived by anybody else. The duration of thecard is normally one to three years.How long does it take to issue a credit card?Normally, it takes 3 to 4 weeks from thedate of application to get a new credit card.However, some credit card companies give aservice guarantee to issue a card within 14days. For an add-on card, it takes about 3 to 4weeks.Reasons for rejection of credit cardapplication.Credit card application could be turneddown if : Any default made on loan repaymentsto credit card companies in the past.Non compliance of income criteriaspecified by the card issuing bank/company.Non availability to the credit investigatingagency representing the card issuing bank/company.Non compliance of some other specificcriteria of the credit card issuing bank.ConclusionThe banking sector is in booming stageand various International Banks are alsoentering the Indian Market and there is a toughcompetition among them in the credit cardmarketing. For the individual customer it isadvisable that before deciding on a particularcard, to carry out a quick survey of the featuresoffered by various credit cards. For those whoplan to pay their balance immediately everymonth, a card with a lower annual fee, a higherinterest rate and a longer interest-free period isthe best. Try and match is the rule.References1. www.sbicards.com2. www.encyclopedia.com3. Marketing management by Philips Kotler4. Marketing management by Saxena5. Marketing management by Ranjan6. Journals and Magazine on BankingManagement7. Search Engines, www.google.com-121-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 122-128ISSN 0974 - 200XBuying Behavior of Consumers in AC Industry in IndiaIntroductionChange is an integral part of our life. Thismay not sound amusing, but what is ofsignificance today is the pace at which changeoccurs in any society. Ideas become obsoletebefore getting internalized, while productsenter the decline phase even before gettinginto the maturity phase.Markets all across the world have beenwitnessing this trend-India being no exception,particularly after 1991. We can say thatcustomers are the pivot around which all theMarketing elements cluster. To understand thebuyer and to create a customer out of him,through this understanding, is the purpose ofbuyer behavior study. It is therefore imperativethat the firm understand the structural changestaking place in its market and also long termimpact of these changes on its products andother elements of the Marketing Mix. The firmmust also understand how the buyer decides infavor of one brand or product, what motivateshim/her to select an alternative, and whoinfluences him/her to buy product or brand.The marketers need to focus on the “how” andJay Prakash VermaResearch ScholarUniversity Department of CommerceRanchi University, RanchiAbstractThe study of consumer behavior has become one of the most important disciplines of Marketing. The lastfifteen years have seen explosive growth in competition at all levels. This intense competition has ledorganizations to shift their focus from Mass Marketing to Individual Marketing. For many organizationssurvival is at stake. The biggest challenge in the 21st century for Marketing Organizations is to increase theirmarket Share and also increase the profitability. For achieving this objective, everyone in the MarketingOrganizations needs to understand the customers and his needs. In a sense, every customer is different andunique. Yet there are some common traits in these customers that need to be understood effectively andConsumer Behavior is an effective tool for doing this. The Indian Air Conditioning Industry is a competitiveindustry. After 1991, we have seen a lot of players venture forth in this sector. Again, with a consistent rise inthe disposable income of the consumers and other factors conducive for growth of this consumer durableproduct, we have seen this industry to a take a long stride and still it is growing in leaps and bounds andoffering new challenges and competitiveness to the firms to compete. The Indian Air-conditioning Industryhas an annual turnover of approximately US$ 821mn. A number of Indian companies in the organized sector,a large number of assemblers in the un- organized sector, and quite a few multinationals are operating in theindustry. Even after the increase in competition, the penetration of the AC in Indian Market is very low (lessthan 2 %).Keyword - Air-Conditioning Industry, Strategy, Prospects, Marketing, Consumer-Behavior-122-“why” of total experience consumers have withthe products and services. Unfortunately, mostmarketers tend to look at only a few aspects ofexperience and build the complete strategyaround it. Marketers need to focus ondiscovering the “why” of an experience. Theyalso need to understand that large samplesbased surveys are no guarantee of havingdiscovered the “truth”. What is needed is adeep understanding of Consumer Behavior.Without such an understanding, marketerscannot accurately anticipate consumerresponses to product designs, features andmarketing ideas.An air conditioner (often referred to as AC)is a home appliance, system, or mechanismdesigned to dehumidify and extract heat froman area. The cooling is done using a simplerefrigeration cycle. In construction, a completesystem of heating, ventilation and airconditioning is referred to as "HVAC". Itspurpose, in a building or an automobile, is toprovide comfort during either hot or coldweather.The Indian Air Conditioning Industry is a

competitive industry. After 1991, we have seena lot of players venture forth in this sector.Again, with a consistent rise in the disposableincome of the consumers and other factorsconducive for growth of this consumer durableproduct, we have seen this industry to take along stride and still it is growing in leaps andbounds and offering new challenges andcompetitiveness to the firms. The Indian AirconditioningIndustry has an annual turnover ofapproximately US$ 821mn. A number of Indiancompanies in the organized sector, a largenumber of assemblers in the un- organizedsector, and quite a few multinationals areoperating in the industry. As a result there issurplus capacity and the presence of a largenumber of players, and the competition in theindustry is fierce.There has been a substantial growth indemand for air-conditionings in recent years.Growing industrialization, an expandingmiddle class with increasing disposableincome and reductions in price consequent toreduction in excise duties have led to thisgrowth in the industry. The 5 years 2005 and2010 saw rapid growth in the industry, at aCAGR of over 35%. Currently, environmentalenergy concerns are influencing the industrysignificantly and the product range on offer isreflection to this reality. The Consumerdurables recorded a growth of 31 per cent inOctober 2010.According to the Consumer Electronicsand Appliances Manufacturers Association(CEAMA), the consumer durables andelectronics sector has registered a 12-13 percent growth in 2010. According to the industrybody, the total size of consumer durables andelectronics sector is around US$ 7.85 billion.The sales of display category products such asFlat Panel Displays -- LCDs, PDPs rosephenomenally by 45 per cent this year, whilethe sales of air conditioner and homeappliances surged by nearly 12 per cent and23 per cent respectively. The Indian consumerelectronic industry represents immensegrowth potential for years to come. Theindustry is expected to grow at a CAGR ofnearly 19 per cent during 2010-2013 to US$9.5 billion, according to a research report“Global Consumer Electronics MarketForecast to 2013”, by RNCOS.-123-Materials and MethodsWhile preparing this research article,focus has been kept on competitive strategiesfor overall AC Industry and the marketing mixof the AC companies to lure the customers.Both primary and secondary sources ofinformation have been taken into consideration.Extreme care has been taken to be objectiveand correct in the presentation of facts.Results and DiscussionsThe new means of information haschanged the way consumers look at productsand services. The customer is extremelydemanding and has become fully “valueoriented”. This has resulted in a reduction in“Brand Loyalty “. The lifestyles are changingand the cultural values are also getting refined,although, the core cultural values remainintact. It is pertinent to note that ConsumerBehavior lacks a unified, well – defined, andestablished theory. The relevant ideas ofBuying Behavior that we have are based on thestudies of Economics, Psychology andPsychoanalysis, and Social Science. Thisproblem gets more complicated and multipliedin highly diverse, multi-ethnical, and multiculturalcountries like India.Consumer behavior is defined as “thedynamic interaction of affect and cognition,behavior, and the environment by whichhuman beings conduct the exchange aspect oftheir lives”. This means that the buying actionsof consumers are greatly influenced in theirbuying actions by various factors like opinion ofothers. Marketing stimuli like product, advertising,packaging, and product appearance. It isimportant here to understand that consumerbehavior is dynamic, involves interaction, andinvolves exchanges.During the days of protected economy inIndia, Companies rarely looked at theconsumers and were focused only towards themaximization of profits through massproduction. The consumers, who had nochoice, were focused to buy whatever wasmade and was available in the market. Forexample, the same scooter and cars were soldfor more than thirty years till the governmentallowed Suzuki to enter India through Maruti.The success of Maruti, TVS Suzuki and HeroHonda etc. has been partly because of theirbetter understanding of their Indian companiesAnusandhanika / Vol. III / No. I / January 2011

to think differently. This was essentiallybecause of the increasing competition that thesurvival of these organizations was at stake.Today, these companies have to compete withthe transnational organizations, and tocompete, they need to basically understandtheir customers. Those who failed to do thishad to close down their operations. The focushas now shifted to the consumer’s needs andthe value perception. Such a change in focushas partly contributed to making Indiancompanies become global players.The second major reason to shift tofocusing on the consumers is the dramaticincrease in the quality of the consumer andmarketing research. In the past, companiesoften did not have information on the actualpurchases and uses of their products. A fewcompanies in the past did ConsumerResearch. However, this was not a continuousprocess and did not identify their actual users.The advent of electronic and informationtechnology has opened new avenues incollecting data on actual users. This is both fastand accurate. Both Manufacturers andRetailers can now carefully track consumerresponses to products and services andevaluate marketing strategy better. Today, withthe help of scanners, large retailers likeWestside, Spencer’s, etc are in a position tocapture consumer buying data immediatelyand send this back to the manufacturers.The third reason for the shift to focusing onconsumers is the development of ConsumerBehavior Research. There has been asignificant increase in the number of behaviortheories, concepts and models in recent years.The high level of sophistication in the consumerbehavior process helps understanding anddescribing consumer behavior much better.The analysis of consumer behaviorassists the marketing fraternity to establishwhat the needs and wants of the costumers areand how they like to satisfy these needs. This isdone in order to allow them to implement amarketing strategy that will result in a betteroutcome for the marketing plan whenimplemented. Consumer Buying Behavior canbroadly be described as the process thatindividuals follow to search for, select,purchase, use, and dispose of goods andservices, in the course of satisfying their needsand desires. During this process consumermakes different decisions. These consumerdecisions are the method by which consumersidentify their specific needs, collect relevantinformation, evaluate alternatives, and finallymake a purchase decision based on theoutcome of the process.These activities are determined bypsychological and economical factors, and areinfluenced by the environmental factors suchas cultural, group and social values. TheBuying Behavior of consumers consists of thecombination of processes, actions anddecisions of all the people involved in theacquiring and using of particular products.Buying Behavior is the decisionprocesses and acts of people involved inbuying and using products.Need to understand:• Why consumers make the purchases thatthey make?• What factors influence consumerpurchases?• The changing factors in our society.Consumer Buying Behavior refers to thebuying behavior of the ultimate consumer.A firm needs to analyze buying behaviorfor:• Buyer’s reactions to a firms marketingstrategy has a great impact on the firm’ssuccess.• The marketing concept stresses that afirm should create a Marketing Mix (MM)that satisfies (gives utility to) customers,therefore need to analyze the what,where, when and how consumers buy.• Marketers can better predict howconsumers will respond to marketingstrategies.Stages of the Consumer Buying Process1. Problem/Need RecognitionHow do you decide you want to buy aparticular product or service? It could be thatyour AC stops working and you now have tolook for a new one. So you have a problem or anew need. For high value items like a AC or acar or other low frequency purchased productsthis is the process we would take. However, forimpulse low frequency purchases e.g.-124-Anusandhanika / Vol. III / No. I / January 2011

confectionery the process is different.2. Information SearchSo we have a problem, our AC no longerworks and we need to buy a new one. What’sthe solution? Yes go out and purchase a newone, but which brand? Shall we buy the samebrand as the one that blew up? Or stay clear ofthat? Consumer often goes on some form ofinformation search to help them through theirpurchase decision. Sources of informationcould be family, friends, neighbors who mayhave the product you have in mind, andalternatively you may ask the sales people, ordealers, or read specialist magazines likeWhat AC? To help with their purchase decision.You may even actually examine the productbefore you decide to purchase it.3. Evaluation of different purchaseoptionsSo which AC do we purchase? Shall it beLG, Samsung, Voltas, Blue star, etc.?Consumers allocate attribute factors to certainproducts, almost like a point scoring systemwhich they work out in their mind over whichbrand to purchase. This means thatconsumers know what features from the rivalswill benefit them and they attach differentdegrees of importance to each attribute. Forexample performance maybe better on theBlue star product and feature of the Samsung,but aesthetics is more important to you thanthe power consumption. Consumers usuallyhave some sort of brand preference withcompanies as they may have had a goodhistory with a particular brand or their friendsmay have had a reliable history with one, but ifthe decision falls between the Samsung orBlue star then which one shall it be? It could bethat the review the consumer reads on theparticular Samsung product may have tippedthe balance and that they will purchase thatbrand.4. Purchase DecisionThrough the evaluation process discussedabove consumers will reach their finalpurchase decision and they reach the finalprocess of going through the purchase actione.g. The process of going to the shop to buy theproduct, which for some consumers can be asjust as rewarding as actually purchasing theproduct. Purchase of the product can either bethrough the store, the web, or over the phone.5. Post Purchase BehaviorEver have doubts about the product afteryou purchased it? This simply is post purchasebehavior and research shows that it is acommon trait amongst purchasers of products.Manufacturers of products clearly want recentconsumers to feel proud of their purchase; it istherefore just as important for manufacturersto advertise for the sake of their recentpurchaser so consumers feel comfortable thatthey own a product from a strong and reputableorganization. This limits post purchasebehavior. i.e. you feel reassured that you ownthe latest advertised product.Types of Consumer Buying BehaviorTypes of consumer buying behavior aredetermined by: - Level of Involvement inpurchase decision, Importance and intensity ofinterest in a product in a particular situation.Buyer’s level of involvement determines whyhe/she is motivated to seek information abouta certain product and brand but virtuallyignores others.Regardless of the size of the business, orindustry, understanding consumer buyingbehavior can help one to make importantdecisions about the business. Decisions suchas pricing, promotion, distribution and how tocreate your product or which services to offerare greatly impacted by how and whycustomers purchase products or services fromone company. There are several types of buyerbehavior.Types of buying decision behaviorSignificantdifferencesbetweenBrandsFewdifferencesbetweenbrandsHighinvolvementComplex buyingbehavior(E.g. Air-Conditioner)-125-Dissonancereducingbuyingbehavior (E.g.Extension cord)Four types of buying behaviorLowinvolvementVariety-seekingbuying behavior(E.g. Breakfastcereal)Habitual buyingbehavior(Cereal crops)1. Complex buying behavior – Consumerbuying behavior in situations characterizedby high consumer involvement in apurchase and significant perceiveddifferences among brands.Anusandhanika / Vol. III / No. I / January 2011

2. Dissonance-reducing buying behavior –Consumer buying behavior in situationscharacterized by high involvement but fewperceived differences among brands.3. Habitual buying behavior – Consumerbuying behavior in situations characterizedby low consumer involvement and fewsignificant perceived brand differences.4. Variety-seeking buying behavior –Consumer buying behavior in situationscharacterized by low consumerinvolvement but significant perceivedbrand differencesSources of influence on the consumerThe consumer faces numerous sources ofinfluence.INFLUENCES ON AND OF CONSUMER BEHAVIORPERCEPTION/SENSATIONCOGNITIONAFFECTBELIEFSSOCIAL AND OTHERINFLUENCEMARKETRESEARCHSTRATEGYCONSUMERINFOSEARCHCHOICESPREFERENCESCOMMUNICATIONMajor Factors Influencing Buyer BehaviorA. Cultural Factors1. Culture - values, perceptions, andpreferences that are the most fundamentaldeterminants of a person’s wants andbehavior.2. Subcultures - nationalities, religions,racial groups, geographical regions3. Social Class - hierarchically ordereddivisions in a society; members sharesimilar values, interests and behavior.B. Social Factors1. Reference groups - all groups that havean influence on attitudes or behavior.2. Family - the most influential primaryreference group.3. Roles and statuses - activities a person isexpected to perform and the statusassociated with each.C. Personal Factors1. Age and life cycle stage - people buydifferent goods over their lifetime.-126-2. Occupation and Economic circumstancesa. blue collar v. white collarb. Spending income, savings andassets, debts, borrowing power, andattitude toward spending versussaving --- all impacts product choice.3. Lifestyle - pattern of living as expressed byactivities, interests, opinions4. Personality and self-concept. - Eachperson has distinguishing psychologicalcharacteristics that influence buyingbehavior.5. Psychological Factorsa. Motivation - correlated to thestrength of a need (Freud, Maslow,Herzberg)b. Perception - selective attention,selective distortion, selectiveretentionc. Learning - changes in behaviorarising from experience.d. Beliefs and attitudes - a belief is adescriptive thought a person holdsabout something; an attitude is aperson’s enduring favorable orunfavorable evaluations, emotionalfeelings, and action tendenciestoward some object or idea.Indian Air-Conditioning MarketThe size of Indian air-conditioning andrefrigeration market is estimated at US$ 821mn. A number of MNCs from Korea, US,Japan, Europe have entered the Indianrefrigeration market. Leading MNCs present inIndian air-conditioning and refrigerationmarkets are from US, Japan, Korea, Finland,Denmark and Germany.A potential Indian market which is likely todraw foreign investors in longer terms is thecold chain network. Despite being the secondlargest food producer in the world, the countrydoes not have any cold chain network. Therefrigerated existing transportation infrastructurefacilities are substantially inadequate comparedwith the growing requirement of the facility.Today, the Air Conditioning industry inIndia is witnessing increased expectations bythe customers. Technology, designs, coolingcapacity, energy efficiency & Service levels areseeing new highs. Companies are aligning theAnusandhanika / Vol. III / No. I / January 2011

est of international standards and local needsto have excellence in products and services.Industry is progressing from premium productimage to a diversified market due to changes inlifestyle and rapid economic growth.Companies have recognized consumerbehavioral changes and are now directing allthe activities to meet their demands and createa distinctive brand image. Companies areinvesting in a new manufacturing facility andResearch and Development. They nowbelieve in the Indian market and want to serveit with products made in India and moreimportantly, made for India, hence theycontinue investing in expanding manufacturingbase in India.Hitachi was the first Japanese company toset up any manufacturing unit in India and isnow the only company who is expanding itsproduction facilities. With encouraging growthprospects in Air Conditioner market andincreasing demand of quality products,The major players in AC Industry in Indiainclude the Companies like-LG, Samsung,Voltas, Hitachi, Diakin, Videocon, Haeir,Onida, Godrej, Lloyd, O General, Whirlpool,Carrier, etc. As the number of Companies isincreasing and the customers are gettingaware of all the offerings of the companies, thecompetition in the market is getting more andmore complex. Companies are now payingmore hives in understanding the consumersand penetrating deep into the Indian Marketthat offers a huge potential to the Companies.Few factors are playing favorable role as well,for the growth of the market, which includesclimaticchanges with rise in mercury, increasein disposable income, better communication,good performance of the domestic economy,etc.To differentiate itself from the othercompanies, and creating a favorable frame ofreferences in the minds of the consumers,companies are positioning themselves in moreinnovative manner than before. Companieshave improved the delivery mechanism,increase the value addition, providing newtechnologies, paying more hive in after salesservice, creating and maintaining better longterm relationship with its customers, and in anutshell making the offering as value formoney.-127-Companies now understand the importanceof a thorough knowledge of the segments theyare targeting. Spending more resources ingaining Consumers’ insight in the MarketResearch process helped them to modify theirmarketing mix strategy to lure the customers.Now we can see some of the most innovativefeatures like- Samsungs’ Bio-fresh AC;Onida’s Message enabled Ac; Hitachi’s NoiseFree Ac; Whirlpool’s Instant Cooling Ac; Bluestar’s Eco-Friendly AC, Godrej’s EON AC; etc.at the best prices and the effective promotiontools.ConclusionHence, we can conclude that a thoroughunderstanding of the consumer behavior hasbecome imperative for the companies tosurvive in present scenario. The pace withwhich the market is changing is reallyalarming. We have seen the shift in theconsumer’s trend in the last one decade. Letus conclude with the Shift in Trends inconsumer buying behavior-First, consumer luxuries have gotdemocratized during this decade. Productsthat were considered for a few started to reachlarger and larger masses of consumers — fromcolas to shampoos to ready wear to mobile toairlines. Categories that started in the 90sbegan to expand their footprint and became apart of mass life. Consumption and consumerismreached more people than it did in the 90s.Social inequity continues to be part of India’seconomy, but the capitalistic principle that“open up from the top to a few, and the benefitswill flow down to many” has come true.Consumerism is truly mass!Along with this, has come a culture ofupgrade and step movement rather thanlifetime ownership and gradual movement.Technology, mobile handsets in particular,made consumers get used to constant change —buying a new product even when the old onewas “functional”, thus breaking the barrier ofthe “replace when it’s broke” mindset. And thenthis extended to other categories in life — fromclothes to televisions to homes. Every Indianmarket presents an opportunity to marketers toget consumers to move up. As technologyimproves and consumers’ disposable incomeincreases, the willingness and propensity ofconsumers to make leaps from unbranded tobranded and pay significant premium is alsoAnusandhanika / Vol. III / No. I / January 2011

increasing. There is no longer “lifetimeownership”, but “lifetime consumer value’!Third, there has been a shift from productto services and experiences. And this is takingplace across categories. Coffee has becomeCafes, beauty products are transiting intoParlors — and this is going into small towns toowith local “aunties” sensing businessopportunities opening parlors and beautycounseling centers at home — and homevideos have become multiplexes. And in everycase, it provides marketers an opportunity toextract more value.According to a McKinsey Global Institute(MGI) study titled 'Bird of Gold': The Rise ofIndia's Consumer Market, the totalconsumption in India is likely to quadruplemaking India the fifth largest consumer marketby 2025. Urban India will account for nearly 68per cent of consumption growth while ruralconsumption will grow by 32 per cent by 2025.India ranks first in the Nielsen GlobalConsumer Confidence survey released inOctober 2010. “India is one of the fastestgrowing markets in the world and the currentconsumer belief that recession would soon bea thing of the past has filled Indians withconfidence,” said Piyush Mathur, ManagingDirector, South Asia, The Nielsen Co. With 129index points, India ranked number one in therecent round of the survey, followed byThailand (117) and Australia (115). Accordingto recent reports, the Indian consumer sector isattracting more interest from both privateequity (PE) and mergers and acquisitions(M&A).However, there has been an increase inprices of AC and appliances due to highcommodity prices such as copper, steal, etcand hike in VAT by few state governments.Despite the price increase, almost all thecategories recorded handsome growth. TheIndian consumer durable industry hasexperienced substantial change for the lastfew years on account of several factors.Among these factors, greater affordability andchanging lifestyle, boom in housing and realestate and commercial advertising have beenthe major factors that bring revolution in theIndian consumer behavior pattern. Accordingto a research report “Global ConsumerElectronics Market Forecast to 2013”, byRNCOS, the Indian consumer electronicindustry represents immense growth potentialfor years to come. The industry is expected togrow at a CAGR of nearly 19% during 2010-2013 to US$ 9.5 Billion.References1. Philip Kotler, Marketing Management;Analysis, Planning, Implementation andControl, Prentice Hall of India, 2005, pp249-3632. Saxena Ranjan, Marketing Management,Tata McGraw Hill Education privateLimited, New Delhi, 2009, pp 345-3903. Peter J.P. and Olson, J.C., ConsumerBehavior and Marketing Strategy, 4thEdition, Irwin, Chicago, 19954. Cobb, C. J. and Hoyer, W. D.(1986),”Planned Versus Impulse PurchaseBehavior”, Journal of Retailing, Vol. 62No.4, pp 384-4095. Kollat, D. T, and Willett, Ronald. P. (1967),“Customer Impulse Purchasing Behavior,”Journal of Marketing Research, 4(February), pp 21-316. Rook D. W. (1987),”The buying Impulse,”Journal of Consumer Research, Vol. 14(2), pp 189-1907. Jacob Hornik and Giulia Miniero, SynchronyEffects on Customers’ Responses andBehaviors, International Journal ofResearch in Marketing 26, No. 1, 2009, pp34–408. Moorthy K.S., Theoretical Modeling inMarketing, Journal of Marketing, Volume57, April 1993, pp 92-1069. Kacen J. J. and Lee J. A., The Influence ofCulture on Consumer Impulse Buying,200210. www.marketingworld.com11. www.aiacra.com12. www.financialexpress.com.-128-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / 129-133ISSN 0974 - 200XIntroductionOutsourcing Results in Turnaround in BCCLBharat Coking Coal Ltd (BCCL), a CoalIndia Ltd (CIL) subsidiary, has resumedoutsourcing of equipment for digging coalbeneath the abandoned Dhanbad-Patherdihrailway track in the Jharia coal-belt nearDhanbad, where high-grade coking coal worthRs.10,000 crores is burning into ashes.Macintosh Burn Ltd, appointed by BCCL tostart lifting coal, was scheduled to begin workon September 24,2010. But the work could notbe started as the local Congress member ofParliament and his supporters opposed it,alleging that Burn’s appointment was anattempt at privatization. “The work ofoverburden removal has just started. Thanksto cooperation from various quarters. Coalextraction would start in a couple of monthsand the benefit of it would be available from thenext financial year,” BCCL.The above news came recently in “TheFinancial Express.” This reminds us ofoutsourcing in coal mines. Outsourcing iscontracting out non-critical and no-corefunctions to an outside agency for carrying outthe operations of an organization in a moreeconomical way which if carried out by theparent organization, will entail cost over-runand time over-run . In other words anoutsourcer can do it in a way that is beneficialfrom the organizational point of view speciallyfrom the efficiency angle. And at the sametime it would be profitable for the outsourcerbecause no business activity will be sustainablewithout earning profit. That is why organizationshave started resorting to outsourcing, Thispractice of getting work done by other agencyAbstractPublic Sector undertakings in this country started with a view to ensuring all round and balanced regionaldevelopment under five year plans. They worked well in the beginning but then, save some, others startedincurring losses. Outsourcing has been deemed to be a way out . It is being adopted in abundance abroad.In this country also it is being found useful. Bharat Coking Coal (BCC)bears testimony to this approach. Thisarticle examines recent resumption of outsourcing in BCCL.Keyword - CIL, Outsourcing, NCWA, BIFRDr. Pramila ChoudharyHead, Department of CommerceSSLNT Mahavidyalaya, Dhanbad-129-i.e. outsourcing, has been in existence in someform or other in all forms of orgainsationssince long . But this has gained acceptanceonly after globalization of market whencompetition became very keen andorganizations have to not only find out betterproducts and services but also to operate atcompetitive rates in the present economy.There is now a question of “Produce orPerish”. But produce at what cost and produceof which quality ?. From these two angles,outsourcing has been found to be a better andmore economical way out to helporganizations in the present scenario, becauseit helps organizations to improve theirperformance.An organization is not a gift of God, it is aman-made and contrived system which takesbirth to serve a social purpose whichindividuals themselves cannot achieve unlessorganized. Since there are various socialneeds and objectives, different types oforganizations come into being. They all aim atachieving their ultimate objective of servingsocial purpose for which they have beencreated . But since organizations operate withlimited resources, they cannot survive if theydo not operate efficiently and generatesurplus. In other words, an organization has tobe both effective and efficient at the same time-.both in the short run and also in the long run.Organisations operate in different types ofindustries in public sector, private sector andmixed sector even.Materials and MethodsThis study is mainly based on the use ofavailable literature in the form of books,

journals, reports, news papers etc. Theapproach followed in this papers is purelytextual. The materials used have at time beendrawn from the website and extreme care hasbeen taken to be objective in approach.Results and DiscussionsAfter gaining of independence in 1947,public sector undertakings came intoexistence in this country with the sole objectiveof ensuring balanced regional economicgrowth. For achieving this social objective fiveyears plans came into existence. In thebeginning these public sector undertakingsworked well and gained the appreciation of allconcerned because they started generatingemployment and creating infrastructuralfacilities for further economic and industrialdevelopment of this country. But after sometime ,save and except some “NavratnaCompanies” others started incurring heavylosses and some even went to the extent ofeating their capital and going “RED” and wereregistered under BIFR. Bharat Coking CoalLtd.( B.C.C.L.) – a subsidiary of Coal India Ltd.( A Govt. of India Undertaking ) also followedthe same track. During the period from 1971-80,its performance was satisfactory. Duringthe period 1999-2000 its net-worth becamenegative and was registered under BIFR videNo.502/2001 in February,2004. Earlier in1994-95 it was registered as a sick unit videRegn No.504/95 dt 18/2/1995.Its accumulatedlosses came to around Rs.10,000 crores. Totide over this situation BCCL took a number ofsteps including outsourcing and as aconsequence for the first time it recorded aprofit of R,156.11 crores in 2005-06 against thetarget of Rs.175 crores after accounting foryear end adjustments and statutory audit hasworked out to Rs.254.53 crores as against aloss of Rs.959.43 crores incurred during theprevious year. This was for the first time afterits inception in 1971 that the companyrecorded profit. This figure took into accountthe impact of wage revision under the NationalCoal Wage Agreement (NCWA). In theimmediate previous year BCCL had suffered aloss of Rs.959.43 crores. Consistent with thetrend of incurring reported loss of Rs.569.85crores and cash loss of Rs. 209 crores in 2003-04. The turn around is less than two years nearbankruptcy situation has been made possiblethrough the sustained pursuit of a revivalstrategy focused on (a) enhancing productionof high value coking coal and washed coal (b)internalizing premium on coal marketed tonon-core sector through e-marketing and(c)arresting/reversing the trend of persistentdecline in coal production since 1999-2000.The company came out with thedeclaration to wipe out the accumulated lossesof Rs.7,044 crores by 2011-12, Measuresadopted were “increase the production” and“decrease the cost”. In this exercise adoptionof outsourcing played the major role ofrejuvenation of course CIL support was amajor point because CIL promised to write off aloan amounting to Rs.3,400 crores.The first turnaround is attributed tooutsourcing in a number of areas in BCCL. As aresult it recorded a 4.4% higher production in2005-06. At present BCCL operates 76 cokingcoal mines, out of which 74 are in Jharia andtwo in Ranigunj fields. The following tableshows the financial status of BCCL before andafter it started outsourcing.Performance in Key areas during 2005-06 to 2009-10ItemYear / Production2009-10 2008-09 2007-08 2006-07 2005-06Coal Production 27.512 MT 25.514 MT 25.215 MT 24.205 MT 23.311Growth (+)7.83% (+) 1.19% (+)13.8$Overburden 61.63 M Cu 53.60 M Cu 50.61 M CuM 43.958 MCuM 39.604Removal (OBR)Wagon Loading 2339 FWs/day 2337 FWs/day 2372 FWs/day 2385 FWs/day 2333 FWs/dayCoal Off-take 25.079 MT 24.60 MT 24.60 MT 24.008 MT 24.234-130-Anusandhanika / Vol. III / No. I / January 2011

ItemYear / Production2009-10 2008-09 2007-08 2006-07 2005-06Supply of washed 16.93 MT 17.27 MT 17.61 MT 17.50 MT 24.28Coal to Steel SectorProductivity 1.85 T 1.68 T 1.88 T 1.18 T 1.45 T(OMS)Overburden removal and coal productionhas increasing trends during the period underreview above. The growth in coal production isto the tune of 7.93% in 2009-10 as comparedto the previous year of 1.19% growth in thisarea. Similar improvement is also visible in allother sectors like coal off-take and wagonloading.ItemHigh-lights of BCC Financial Performance after adoption of OutsourcingFinancial Years2009-10 2008-09 2007-08 2006-07 2005-06 2004-051. Profit Rs.794.10 (-)Rs.1380.47 Rs.86.620 Rs.49.58 Rs202.67 (-)Rs.959.43(in Crores)2. Cash & Rs.92301.76 Rs.77289.22 Rs.96097.25 Rs.96-97.25 Rs.61373.56 Rs.24788.bank balance (March)3. Loss in Coal 14.644 17.186 26.39 23.49 12.01 31.05Production(in lakh tones)4. Payment to Rs.557.31 Rs510.58 Rs.437.06 Rs.441.65 Rs.458.25 s.441.65ExchequerSince its inception in 1971 BCCL recordeda profit of Rs.202.67 crores for the first timeduring 2005-06 and since then the trend hasbeen continuing ,of course there has beenreverses in the recent years but it is a purelytemporary phenomenon. Outsourcing is saidto have played a major role here. The increasein net loss in 2004-05 of Rs.959.43 crores ismainly due to (a) provision for NCWA-VIIarrear payment to the extent of Rs.822.35crores and (b) provision for interest on thedelayed payment of PF of Rs.79.79 crores.This means that improvement in financialresults between in 2004-05 and 2005-06 on alike to like basis is Rs.560.28 crores. Loss incoal production during the period under reviewhas an increasing trend and this is good signwhich certainly has contributed to improvingfinancial turnaround.So far as payment to the exchequer –central and state in the form of taxes isconcerned , there has been increasing trend(from Rs.441.65 crores in 2004-05 toRs.557.31 in 2009-10).This is an index ofturnaround in financial performance and ofoperational efficiency.Outsourcing is considered as a majorcontributory factory to the turnaround inBCCL. . This is because the down-ward trendstarted reversing only after the adoption ofoutsourcing strategy. This is also theperception of almost all sections of theorganization. This has been established by theinterview responses generated from crosssections of employees and also from thosedealing with BCCL in some way or other.The recent outsourcing vendors operatingin BCCL are as under :--131-Anusandhanika / Vol. III / No. I / January 2011

1. Dhansar Engg Co. Private Ltd., It has manpowerof 1000 and is working in all the 3shifts i.e. round the clock .Collieriesattached to this are Kusunda, Ghanudih,Lodna and Beniadih, Its production is3,55,000 MT/month2. Indian Iron Steel Co.(IISCO), headquartersat Durgapur. Collieries attached areChasnala mines, Its production capacityis 3,55,000 MT/month with a manpowerof1,500.3. Calcutta Industrial Supply Co.(CISC),Durgapur. Its production capacity is3,60,000 MT/month .It has manpower of1200. The collieries that come under it areRajapur with production of 4,20,000 MTand Jamuria with that of 6,00,000MT/month.4. Sainik Mining & Allied Services is thefourth outsourcer5. Brahmaputra Outsourcing Co. is operatingat Katras and Kankani6. (BLA) Bhowra Banwarilal Agrawal isanother outsourcer operating in Bhowraarea with production capacity of 700 to800 MT/month.7. Sharp Pariwahan is operating at Bhowra8. Ujjawal Transport another outsourceroperating is in Gopali Chuck10. K.R.R. is another outsourcer in AkashKinareOf the total production of coking coal inBCCL approximately 40% is contributed byoutsourcing agencies.ConclusionAnnual Accounts of BCCL indicates thatthe company earned a net profit of Rs.6.03crore. But in the subsequent two years i.e.2008-09 and 2009-10 it suffered loss.Duringthe year 2009-10 it again recorded a profit ofRs.797.55 crores. This is the period whenBCCL again resumed outsourcing in its mines.The work ofoutsourcing was resumed, as thecoal ministry and a state minister couldsuccessfully intervene following reportspublished in the Financial Express and later inThe Indian Express.There has been protestand resentment on the part of local politiciansand trade union leaders against outsourcing asthey apprehend that this may lead toprivatization of the coking coal mines andreversing the process of nationalization. Publicsector undertakings have full fledgedorganizational set-up with large investment inmachinery and equipment and there isperhaps no shortage of funds because thepublic exchequer comes to its rescue. Its solepurpose is not to earn profit but to contribute tosocial welfare and economic development ofthe country by providing infra structuralfacilities. But generating surplus from thecapital employed is also necessary and itcannot be ignored because after all the capitalinvested in public sector undertaking has comefrom public exchequer. And not earning duesurplus will be a social irresponsibility. Thus, abalance between earning profit and socialwelfare is to be maintained. Had scarcity offund been the sole cause of going into RED of apublic sector unit, HEC which ran for a numberof years on heavy losses , would have beenliquidated. Now the question arises why apublic sector unit like BCCL which is engagedin mining metallurgical grade coking coalshould run at loss and why only when anoutsourcer is employed , it starts recordingprofit. It clearly goes to indicate thatsomewhere in the organizational functioningthere is problem, which needs to be looked intoat length and remedial measures be taken.Outsourcing agencies concentrate only onincreasing production and ensuring delivery ofthe target ,they may ignore the long terminterest of the industry and economic wealth ofthe country. Using outsourcing has no doubtshown good results in BCCL in the short run,but will it be in the interest of national interest tocontinue this stop-gap measure when largeorganizational set-up with necessary facilitiesare in existence. If outsourcing is to continue,-132-Anusandhanika / Vol. III / No. I / January 2011

its side effects have to be examined. Labourlegislations should not be ignored in anenthusiasm for increasing profit especially in ademocratic welfare state like India.References1. The Financial Express,17th December,2010, Mumbai Edition2. The Hindustan daily dated 18thDecember, 20103 Outsourcing Wikipedia, the freeEncyclopedia4. HTTP://www.outsourcing.Org5. Coal Industry in India,-Nationalisation &Tasks Ahead, M.K.Mangalam6. Business Process Outsourcing- SarikaKulkarni, 2006 Jaico Pub. House, Mumbai7. Turn Around Story- BCCL Magazine8. BCCL Annual Report 2004-05 ,2005-06,2006-07, 2007-08, 2008-09, 2009-109. Dainik JAGRAN, Dhanbad dated 7thApril, 200610. The Hindu ,Chennai, dated 07-04-200611. Pioneer, New Delhi,14th May, 200612. Business Standard, 11th April, 2004-133-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 134-137ISSN 0974 - 200XTalent Management in RecessionDr. Sanjiv Kumar SinghLecturer, Department of CommerceJsr. Co-operative college, Kolhan University, ChaibasaKrishna PrasadLecturer, Department of commerce,Jsr. Co-operative college, Kolhan University, ChaibasaIntroductionManaging talent can be a complex issueat best of times. During periods of economicinstability and recession it can seem almostimpossible. Managers shouldn’t forget abouttalent management in times of crisis however,instead they should take the time to carefullyreassess their talent management strategyand ensure they are using their biggest assettheirstaff-as effectively as possible.Talent Management has risen up themanagement agenda since 1991 and, moreimportantly, the business environment in whichorganization now operates has changedconsiderably .For business and managers,many of whom were not in senior position in1991,there are contrasting factors to consider.Cost cutting exercises are likely to be on theagenda, yet some areas of business are likelyto be expanding. Businesses may wish toreduce staff numbers, but are still facing skillsshortages; and many are typically far leaner interm of staff numbers and productivity thanAbstractManaging talent can be a complex issue at best of times. During periods of economic instability andrecession it can seem almost impossible. Managers shouldn’t forget about talent management in times ofcrisis however, instead they should take the time to carefully reassess their talent management strategy andensure they are using their biggest asset-their staff-as possible. Talent Management has risen up themanagement agenda since 1991 and, more importantly, the business environment in which organizationnow operate has changed considerably. For business and managers, many of whom were not in seniorposition in 1991, there are contrasting factors to consider. Cost cutting exercises are likely to be on theagenda, yet some areas of business are likely to still be expanding. Business may wish to reduce staffnumbers, but are still facing skills shortages; and many are typically far leaner in term of staff numbers andproductivity than they were 20 years ago, meaning there is less fat to trim. Developing and sticking to acomprehensive talent management program can help resolve some of these contrasting factors and provideguidance to managers and CEOs in times of economic uncertainty.Keyword- management agenda, contrasting factors, cost cutting-134-they were 20 years ago, meaning there is lessfat to trim. Developing and sticking to acomprehensive talent management programmecan help resolve some of these contrastingfactors and provide guidance to managers andCEOs in times of economic uncertainty.Definition of talent management tends tofocus on four key areas of interaction betweenan organization and its staff- Recruitment,Development, Reviewing, and Retention.These four areas can be used to develop acomprehensive talent management, coveringsenior staff or all staff within an organization,depending on priority levels and budgets.While many talent management programmesfocus on senior staff only, it is worthremembering that staff with lower levels ofresponsibility may also benefit from being partof a tailored talent management programme.There are six talent management strategies,which may help managers understand howtalent management can be used to achieve theobjectives of their own organization :

Process perspective- The future successof a company is based on having the righttalent, so managing and nurturing talentis part of the everyday process oforganizational life.Cultural perspective - Talent managementis a mindset, where the performance ofeach individual is dependent on the talentof that individual. As a result, theorganization appreciates each individual’stalent and allows talent to be developed asa matter of course.Competitive perspective - Organizationsmust identify talented people, find outwhat they want they want and give it tothem in order to keep the best talent withintheir organization. Competitors will alsobe following this perspective, withwhoever has the best talent being bestplaced to succeed.Development perspective- Talentmanagement is about accelerateddevelopment paths for the highestpotential employees. The samedevelopment process is applied to allemoloyees, but “talented” employees gothrough the process more quickly.HR planning perspective- Talentmanagement is about having the rightpeople matched to the right jobs at theright time.Change management perspective- Talentmanagement is used as the driver forchange in the organization, normallybeing an embedded part of theorganization’s culture.Materials and MethodsThis study is mainly based on the use ofavailable literature in the form of books,journals, reports etc. The approach followed inthis papers is purely textual. The materialsused have at time been drawn from the websiteand extreme care has been taken to beobjective in approach.Results and DiscussionsA structured talent management programmecan achieve all of the above. But it may behelpful to priorities which of the perspectivesbest fits the needs of your organization at a-135-specific time, in order to understand whereyour talent management programmes deliverfar greater long term benefits, Thus thinkingabout what your organization needs in the longrun is vital to creating a suitable talentmanagement programme. This long termmindset is crucial to talent managementprogammes in periods of economic instability,with the need to cut costs in the short termhaving to be balanced with the benefits oftalent management in the long term-in otherwords, there’s no point surviving a recession ifyou’re not prepared for the good timesafterwards!Recruitment and staff levels- The first stepin talent management program is ensuring youhave talent within your organization, recruitmentmay be the last thing on manager’s minds, butin reality it may be a very good time to recruit. Ifyour competitors are making staff cuts it maybe worth looking at who they are cutting andwhether they would be of value to yourorganization. However it is also worth askingwhy your competitor is letting these particularstaff leave. In time of widespread budget cuts itmay even be possible to recruit skilled staffdirectly from your competitors by offering morecompetitive benefits, particularly if yourcompetitors are making budget and trainingcutbacks. Again you should consider whetherstaff leaving competitors in times of difficultyare loyal enough to work for you in the long run.Key to recruitment talent (in times ofeconomic instability as well as in times ofeconomics wellbeing ) is to understand exactlywhat skills your organization needs at eachlevel, where these skills exist in the labourmarket, whether there are skills shortages inyour industry, and what skills you are likely toneed in the future. If there are skills shortagesin your industry then recruiting in times ofeconomic downturn may be far less costly (andeasier) than attempting to do so when yourindustry is booming. Staff shortages canquickly curtail any growth opportunitiesavailable post-recession.The key to talent management in time ofcut back is, unsurprisingly, ensuring talentedAnusandhanika / Vol. III / No. I / January 2011

members of staff are kept within theorganization if at all possible. This may meanmoving staff around departments or evenchanging their job specifications if necessary,but with communication from managers totalented staff explaining why specific actionare being taken, these are likely to be betterreceived in periods of economic downturn thantimes. Striking a balance between ensuringshort term survival and long term success isdifficult, but it should be remembered that therole of managers and Human Resources is tomake sure your organization survives ANDthat it grows and recovers faster than thecompetitors when economic recovery occurs.Development-Staff development need notbe put on hold during periods of economicinstability. Cost cutting exercise havefrequently targeted training and developmentbudgets in the past, but managers in thecurrent climate should ask themselveswhether this is necessary and whether thereare alternative actions that might be taken.Understanding the value of training anddevelopment is often the first step in making adecision on whether to continue with training ornot. It is generally agreed that the correcttraining provides more value than it costs; andthis holds true whether a recession is occurringor not. In terms of management training, theManagement standard centre’s report on thevalue of management Qualification is a usefulresource for comparing views on the value ofmanagement qualifications.Three question to ask yourself regardingtalent development in periods of economicinstability are: who would benefit the most fromtraining or development activities; what alternativemethods of training and development areavailable; and, if I don’t train and develop mystaff,will thay continue to be motivated andstay with the organization? Studies haveshown that employees highly value thedevelopment of their own skills, with talentedemployees likely to do so more than others.Cutting back on training and development islikely to reduce morale and act as a demotivatorfor your staff, and may even be areason for leaving for some.Reviewing- Staff appraisals and thereviewing of employees skills should takeplace within all organizations, and it can be aparticularly useful tool in developing talentmanagement programmes. Reviews can beused to find both the ‘talent’ within anorganization and those who can be easilyreplaced or let go of. A review of current staffskills required by your organization now and inthe future will go some way to determiningwhere existing or likely future skills gaps existwithin your organization. A review of the labourmarket in your industry alongside this will alsoshow where any future skills shortages arelikely to exist. These reviews can be used todetermine which individuals in yourorganization have the potential to be promotedto senior roles in the future (the traditionaldefinition of talent management literature),which individuals have scarce redundantshould staff cuts need be made in periods ofeconomic downturn. Finally, a review ofcurrent staff skills and the current needs ofyour organization will be of use if anyrestructuring activity is needed for theorganization to enable it to cope with theeconomic downturn.Retention- The issue of staff retentionoriginates from the previous themes touchedupon by talent management. If recruitmentprocesses, staff development and staff reviewsare all undertaken in line with an overarchingtalent management programme, staff retentionshould be a high priority, since staff currently atorganization will be the high of quality, welldeveloped staff. The key to staff retention is toensure those staff you wish to keep aremotivated, engaged and have high morale allproblem areas in times of economic instability.Having reviewed your staff, industry conditionand external labour market, it should be fairystraight forward to determine whom to retain.The next stage in the retention process is tocommunicate with your workforce. Let talentedindividuals know they are considered keyassets in the organization and ask them whatfactors are the most important to them in termsof employee engagement and retention.Remember that pay is not necessarily a keyfactor in determining employee engagement,-136-Anusandhanika / Vol. III / No. I / January 2011

although it can be a key factor in creatingemployee disengagement and low morale.Managers need to determine what factors areimportant to their staff and work towardsensuring these factors are viewed in a positivelight by employees(both talented employeesand others) Not only will this help to promotethe service-profit chain within your organization,it will help to retain key talent.The role of Manager- Talent managementprogrammes can turn organizations intomarket leaders if undertaken correctly, butneed the buy-in of managers to succeed.Managers need to ensure talent managementseen as a business management strategyissue, not just an HR issue. Businessmanagers need to work with HR managers todevelop and realize a suitable talentmanagement programme for their organizationand undertake the numerous tasks discussedabove in order to see the fruits of a welldeveloped talent management programme.The following National OccupationStandards will be useful to managersdevelopment and running a talent managementprogramme within their organization:Manage your own resource and professionaldevelopmentMap the environment in which yourorganization operatesDevelop a strategic business plan for yourorganizationPut the strategic business plan into actionProvide leadership for your teamProvide leadership in your area ofresponsibilityProvide leadership for your organizationDevelop the culture of your organizationLead changePlan changeImplement changeRecruit, select and keep colleaguesPlan the workforceProvide learning opportunities forcolleaguesSupport individuals to improve developand maintain their performanceManage redundancies in your area ofresponsibilityCommunicate information and knowledgeConclusionA useful source of information formanagers is the National OccupationalStandards for Managers and Leaders. Thesestanderds break down the role of managersinto a number of subject areas and thebehaviours, outcomes and knowledge andunderstanding required to underpin effectiveperformance.References1. Edward E. Lawler, Talent: Making PeopleYour Competitive Advantage, JosseyBass Publisher, San Francisco, 20082. William A. Schiemann, Reinventing TalentManagement, John Willy & SonsPublisher, New Jersey, 20093. Allan Schweyer,Talent ManagementSystem, John Willy & Sons Publisher,NewJersey, 20044. Berger Lance A., The Talent ManagementHandbook, Tata McGraw-Hill Education,New York, 20045. Pradhan Satish, Talent Management,Excel Book Publisher, New Delhi, 2004-137-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 138-140ISSN 0974 - 200XIntroductionIndian Banking: Towards Better FutureDr. Anil Kumar JhaDepartment of CommerceJamshedpur Co-operative College, JamshedpurDr. Bhushan Kumar SinghDepartment of CommerceJamshedpur Co-operative College, JamshedpurAt the time of independence i.e., in theyear 1947, India had a fairly well-developedcommercial banking system. The ReserveBank of India was established in 1935. Whilethe Reserve Bank became a State-ownedinstitution from 1st January, 1949, the BankingRegulation Act was enacted in 1949 providinga framework for regulation and supervision ofcommercial banking activity. However, thebeginning of the planning era saw theemergence of public ownership of one of themost prominent of the commercial banks,There was a feeling that though the IndianBanking System had made considerableprogress in the 50’s and 60’ it established closelinks between commercial as well as industryhouses, resulting in cornering of Bank credit bythese segments to the exclusion of agricultureand small industries.Nationalization of major CommercialBanks in 1969 was a major landmark in thehistory of the Indian Economy. CommercialBanks have been nationalized in our country inorder to support the planned developmentprogramme and to serve the wider section ofour people and the regions of our country. The28 public sector Banks of our country togetherwith their subsidiaries Regional Rural Banknumbering 196 have brought about silentrevolution particularly in the rural areas. Nodoubt that nationalization events of 1969 asAbstractNationalization of major commercial banks in 1969 was a major landmark in the history of Indian economy.Since then, the banks have supported the planned development programmes and have served the widersections of our people in the country with the gradual implementation of the financial sector reforms, thebanking sector is improving its management and profitability. The Indian banking system has a bright future.Keyword - Nationalization, planned development, Bright future, Goiporia Committee-138-well as 1980 heralded a new era by combiningcommercial banking with Social objectives andby transferring class banking into massbanking. The countryside and the rural townserving as marketing centers for the peasantsand landless labourers have witnessed aperiod of renaissance and reform. The publicsector banks have assured the noble role ofmissionaries and gave shape to the ideals whofirmly believed that the heart as well as soul ofthis country lies in rural areas where majority ofpopulation live and depend on agriculture andallied activities for their livelihood.Thus, the step of nationalization forcedthe banks to change their concept, role andapproach constantly as commitments increasedunder social banking with introduction ofscheme after schemes devised by theGovernment.In the post nationalization era banks wereperforming their social responsibilities in thedesired direction. But geographical expansionof the banks and priority sector lending haveposed severe threat to the profitability as wellas productivity of the banking sector as awhole. The rural branches are the majorsource of loss in respect of revenue income tothe bank. Besides that the priority sectorlending also loss in the added to the bankingsector. Gross profits have been declining forthe banking system over past decades and in1989-90 such profits were no more than 1.10

per cent of inadequate provisioning in respectof sticky advances and against loan losses, thesituation cannot but because of concern whilethis represents the average for the system.There are several banks in whose case theincremental cost of operation per rupee ofworking funds was higher than the incrementalincome per rupee of working funds. Therefore,the profitability and productivity of the bankssuffered severely. This led to the thinking ofFinancial Reforms in India.Materials and MethodsWhile concentrating on the topic variousbooks of eminent scholars journals bulletinswere consulted. Recourse has also been takento make an in depth study of the publishedworks of the author. Reviews of the works byeminent scholars and critics have also beenwidely consulted.Results and DiscussionsDuring the late eighties, severaldistortions have crept into the financial systemof the Indian economy and certain rigidities aswell as weaknesses were found to havedeveloped in the Indian Banking system as aresult productivity and efficiency of the systemhave suffered profitability has been erodedand its portfolio quality has operating costs asvery high. Against this background thecommittee on Financial System, under thechairmanship of Sri M. Narashimham wasappointed on 14th August, 1991 and asked toreview various facts of the system including itsstructure, organization, profitability, capitaladequancy and supervisory arrangement.Committee’s RecommendationsThe Narashimham Committee went along way in recommending far reachingchanges in the Indian Banking scene. TheCommittee has made several recommendationsamong other things, on modifying the ruralbanking structure, interest rates on agricultureloans and directed programmes of rural creditwhich will have direct bearing on the future ofagriculture credit system. The directedinvestments were opposed and banksprofitability was put as the main criteria for anybanking activity. The committee has furtherrecommended to reduce the StatutoryLiquidity Ratio (SLR). Cash Reserve Ratio(CRR), Priority Sector Lending (PSL) andencourage the Public Sector Banks to provideterm finance to industry improving recoveryperformances by constituting tribunals relatingbanks rate to the market forces and phasingout the concessional interest rates and so on.The Committee was of the opinion that if SLR,CRR, and PSL are reduced, it leaves moremoney with the banks, which could be investedon commercial basis. Similarly, if commercialbanks lend at market rate for industrial andother activities and improve recovery performance.The committee has also recommended thatthe loss making banks improve recoveryperformance. The committee has alsorecommended that the loss making banks andbranches are to be closed or merged. TheGovernment already made a step towards inthis connection by merging Bank of India withthe Punjab National Bank. The other suchbanks are on the card. Even the loss makingbranched of the same bank are to be closed orto bemerged with the nearer branches thus,main thrust of the recommendation is on theprofit of the banking sector along with theproductivity of the sector.Goiporia CommitteeThe Reserve Bank of India constituted aCommittee headed by Sri M. N. Goiporia inSeptember, 1990 on making recommendationsfor consumer service improvements in banks.The Committee submitted its report onDecember 5, 1991. The chief recommendationswere as below.a) Extenstion of banking hours for all worksexcluding cash paymentb) Stop deposit of outstation cheques of Rs.5000/- (instead of existing 2500/-) in Bankaccounts.c) Increase in bank interest rates on savingaccounts.d) Providing tax benefit to bank depositamounts.e) Re- adjustment of bank opening time forstaff so as to ensure start of work at bankcounters well in time.-139-Anusandhanika / Vol. III / No. I / January 2011

f) To ensure optimum use of powersavailable with Bank Staff. No doubt thatthe recommendations given by theCommittee are very useful from servicepoint of view and will be helpful toencourage as well as attract theconsumers for their business. But theserecommendations are still underconsideration of the Government includingRBI.ProspectThe future of Banking System is bright inthe present changing and dynamic environmentof globalization era. With effect from February,2005, Public Sector Banks have been grantedmore freedom of action to make acquisitions ofbusiness, pursue new lines of business, closeor merge unviable branches and take alldecisions regarding HRD. Now, public sectorBanks got the freedom acquiring the Stateownedand Private banks finance companiesand other businesses without seeking anypermission from the Government. But theseactivities will be limited to those prescribed inthe Banking Regulation Act. For usingmanagerial as well as functional autonomy, theGovernment has put four preconditions forbanks which are- (i) a tract record of threeyears consecutive profit, (ii) capital adequacyratio of over 9 per cent, (iii) net non-performingassets of less than 9 per cent and (iv) minimumowned funds of Rs.100 Crore.ConclusionTo conclude one can say that with thegradual implementation of the Financial SectorReforms and by accepting and implementingthe recommendations of Goiporia Committee,the banking sector of India will improve itsmanagement and profitability too. These stepswill obviously lead to a bright future of IndianBanking System.References1. Kumar Ranjana, A New Beginning TheTurnaround Story of Indian Bank,NaviPublications, New Delhi, 20082. Toor N.S., Advanced Bank Management,Navi Publications, New Delhi, 20103. Parameswaran R and Natarajan S, IndianBanking,S Chand Group,New Delhi,20094. Toor N.S. and Singh Arundeep,BankFinancial Management, Jain Book Depot,New Delhi, 20105. Uppal R,Indian Banking in the GlobalisedWorld, New Century Publications,NewDelhi, 20066. Toor N.S. and Singh Arundeep, BankingProblems Rationales and SituationAnalysis, Navi Publications, New Delhi,2010-140-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 141-147ISSN 0974 - 200XIntroductionRevival of Regional Rural Banks in JharkhandDr S.B. SayEx. Professor, Head and DeanUniversity Department of Commerce & Business ManagementRanchi University, RanchiAnirban GuptaResearch Scholar, Department of CommerceRanchi University, RanchiFor many Europeans, India evoked apicture of Maharajas, Snake-Charmers, and1the rope-trick. But it is not a true picture-“Indiais essentially Rural India and Rural Indiais virtually of the cultivators, the village2handicraftsmen and the agricultural labourers.”During different five year plans industrialdevelopment and agricultural developmentwas accorded priority for the development ofIndian economy. But with the outset of greenrevolution increasing public awareness andthe given priority to the development ofbackward areas and reduction of disparities ofincome and wealth, agriculture and ruraldevelopment received major attention, andafterwards plan reports give emphasis to creditplanning. The sixth five year plan observes:“the aim of the sixth plan is to secure high rateof rural credit expansion to serve theproductive needs of all, with priority beinggiven to the credit needs of various economic3groups among the poor.The banks are the hub of the economicdevelopment of a society. Therefore aneconomy to be stronger, always presupposesthe existence of a vibrant and strong bankingsystem. The banks functions as the provider offinancial nucleus to the economy. The RRBswhich have been propounded with specificAbstractThe banks are the engines of economic growth of the country. The Regional Rural Banks (RRBs) werebrought in the ambit of financial intermediaries of the country to help expeditiously in the development of ruralIndia which suffered a lot on account of the paucity of funds needed for agricultural development. But theRRBs failed to catch up the spirit on account of declining deposits, poor recovery of debts, rising NPAs etc.The Regional Rural Banks were restructured and consolidated in Jharkhand. Out of six RRBs only two i.e.Vananchal Gramin Bank and Jharkhand Gramin Bank were created to strengthen their viability.Keywords: Non Performing Assets, Recovery of debts, Green revolution, Credit deposit ratio-141-purposes and to discharge limited functionsneed to be more vibrant. The RRBs werestarted with much fanfare and expectationsand the co-operative sector and commercialbanks failed to boost up the Indian ruraleconomy where nearly 70% of the Indianpopulation lives and thrives almost entirely onagriculture to eke out its bread. The agriculturesuffers from several maladies but the lack offinance with the farmers assumes first andforemost importance. The RRBs wereenunciated with the sole objective of providingtimely and sufficient finance to the farmers.The RRBs have been established to dischargethe following functions :-1. To cater the agricultural and credit needsof small and marginal farmers.2. To create a chain of banking channels inunbanked and under banked rural areas.3. To participate actively in various schemeslaunched by the state and centralgovernment for improvement of rural poor.4. To meet the big credit gap created onaccount of failure of commercial banksand co-operative banks in the overalldevelopment of rural and backward areas.5. To reduce the rate of interest charged tothe farmers on farm finance.6. To reduce the distance of bank branchesfrom the farmers. The commercial banks

and co-operative banks had their locationmainly in big cities and towns where thefarmers could not reach for availing thebank finance.The RRBs get their capital from R.B.I.sponsored banks and state government incertain proportion. They have, infact, limitedfunds with which the unlimited financialrequirements of the rural farmers are to be met.Further RRBs are expected to provide financialassistance only to the poorest of the poor inorder that they can utilize their craftsmanshipand earn their bread. These banks give outloans to farmers and expect an early recoveryof loans so that the process of recycling offunds becomes easier.It has recently been witnessed that theoperational activities of the RRBs have notbeen very satisfactory. As a result of this manyRRBs are having their red financialstatements. In other words the proportion ofNPA is increasing beyond their maximumtolerance limits and in some cases theirexistence itself is being threatened.RRBs are basically required to rejuvenatethe Indian rural farmers who are characterizedby illiteracy, poverty and lack of awareness.Very importantly they constitute nearly 68% ofthe total population. Therefore any neglect tothe rural sector of India will not help developingthe entire economy with speed.The RRBs have been started with theexpectation of being sole provider of finance tofarmers. Their non- viability will adverselyimpact the growth and development of the ruralareas. RRBs are in bad financial health. Theclosure of RRBs will result into the following:-1. Agricultural credit will not be served.2. Rural credit gap will get enlarged.3. Regional imbalances and increase in ruralunemployment.YearA threadbare discussion about increasingthe viability of RRBs requires the study of itsdeposits. Deposits are the actual source offinance available with RRBs. They do not havemuch money of their own to provide financialaccommodation to the farmers. Thereforelarger the deposits mobilised greater is theability to provide financial aid to the farmers.The deposit mobilisation hinges on twosituations :a) Confidenceb) Saving potentialityMaterials and MethodsIn the course of identifying the reasons forbad financial health of RRBs the authorbasically utilises the published materials(secondary data) available from differentRRBs and institutions. The public documentsissued by these RRBs have been accepted asthey are. Of course the free interaction(primary data) was sought with some RRBs,borrowers and scholars to elicit theirrespective opinions.Results and DiscussionsFactors leading to non viability of RegionalRural Banks can be gauged from the followingfactors.1. Credit Deposits Ratio of Regional RuralBanksThe C/D ratio is the relationship betweenthe amount of deposits mobilized and amountlent out in a particular locality where bankbranch is situated. The higher C/D ratioindicates higher investments of depositsraised from the respective area and vice versa.The RBI also instructs that the C/D ratio wouldnot be less than 60%.Factors leading to non viability of RRBs can be gauged from the following factorCommercial Banksin JharkhandTable-3Poor Credit deposit RatioJharkhand GraminAll India RRBsBankVananchal GraminBank2005-06 37.59 56 29 30.432006-07 40.83 58 30 31.342007-08 45.32 60 29 31.672008-09 43.68 58 26 29.21Source- Annual Reports of NABARD, Vanachal Gramin Bank and Jharkhand Gramin Bank-142-Anusandhanika / Vol. III / No. I / January 2011

Looking to the C/D ratios of RRBs inJharkhand it is seen that it is much less thanthe directive given by R.B.I. It is further a matterof activity that the C/D ratios of all RRBs ofJharkhand are still declining. It was 29% and30.43% in 2005-06 in case of JharkhandGramin bank and Vananchal gramin bankrespected which reduced to 26% and 29.21%respectively in 2008-09. During the sameperiod the C/D ratio of RRBs in India was 56%and 58% respectively. It means the nationalaverage C/D ratio is very close to the directivesof R.B.I whereas the RRBs in Jharkhand arelagging behind.2. Deposits of Regional Rural BanksDeposits are the heart of bankinginstitutions. It is the deposit on which thevolume of lending depends. The deposits arethe outcome of two things- confidence of thepeople on the strength of the institution and the4saving potentiality of the people. Although thedeposit of the RRBs in Jharkhand has beenincreasing but the increase is not satisfactory.The growth in deposits is unsatisfactorybecause even the commercial banks operatingin the area have also almost the equal rate ofgrowth in their deposits. The RRBs ofJharkhand need to develop closer relation withthe people. It has been a known fact that theincome of the people of rural areas hasincreased significantly because of variousrural development programmes. Theincremental income of rural people shouldincrease the deposits of RRBs.Further a large chunk of rural population isstill unaware of the banking system and theirbenefits. The RRBs are expected to bring themin their fold. This will develop their bankinghabits and even smaller savings will be placedwith the RRBs.Table-1Statement of deposits of All India, Jharkhand Gramin Bank and Vananchal Gramin Bank( Rs in lakh)YearAll IndiaJharkhand GraminBankVananchal GraminBankCommercialBanks in JharkhandAmount%changeAmount%changeAmount%changeAmount%change2005-06 7132883 14.78 97974.81 14.27 91515.59 22.06 32017802006-07 8314355 16.56 106073.63 8.27 92516.11 1.09 3768780 17.712007-08 9909346 19.18 122193.83 15.20 106029.79 14.61 4347644 15.362008-09 11431745 15.36 146036.43 19.51 131790.76 24.30 5138507 18.90Source-: Annual Reports of NABARD, Jharkhand Gramin Bank and Vananchal Gramin BankThe following table shows deposits of AllIndia RRBs, Jharkhand Gramin Bank,Vananchal Gramin Bank and JharkhandCommerical Banks starting from the year2005-06 to 2008-09. The total deposits of AllIndia RRBs increased from 7132883 lakh in2005-06 to 11431745 lakh in 2008-09 and thatof Jharkhand Gramin Bank from 97974.81 lakhto 146036.43 lakh in 2008-09 and that ofVananchal Gramin Bank from 91515.59 lakh in2005-06 to 131790.76 lakh. Similarly thedeposits of Jharkhand Commercial Banks alsogrew from 3201780 lakh to 5138507 lakh. Thepercentage growth in case of both RRBs inJharkhand as well as All India RRBs has beenfluctuating. The percentage growth wasmaximum for All India RRBs in 2007-08 whichstood at 19.18% while that of JharkhandGramin Bank stood at 19.51% in 2008-09 andthat of Vananchal Gramin Bank which stood at24.30% in 2008-09. The percentage growth ofcommercial banks in Jharkhand wasmaximum in the year 2008-09 which stood at18.90%.-143-Anusandhanika / Vol. III / No. I / January 2011

The table 2 shows average deposit perbranch of Jharkhand Gramin Bank, VananchalGramin Bank and All India RRBs. It is clearfrom the table that average deposits of All IndiaRRBs, Jharkhand RRBs is increasing. Thoughthe deposit per branch in case of Jharkhandand Vananchal Rural Banks are increasing butit is yet to take measures to reach the nationalaverage level. This will require the followingsteps to be takena)Creating more awareness among the ruralpeople of the state of Jharkhand.b) The confidence of the people towards thebank has to be increased.Table-2Average Deposits per Branch (Rs in lakh)Year All India RRBS Jharkhand Gramin Bank Vananchal Gramin BankDepositsNo ofBranchesAveragedepositperbranchDepositsNo ofBranchesAveragedepositperbranchDepositsNo ofBranches3. Recovery of Regional Rural BanksAveragedepositperbranch2005-06 7132883 14494 492.12 97974.81 210 466.55 91515.59 178 514.132006-07 8314355 14520 572.61 106073.63 210 505.11 92516.11 178 519.752007-08 9909346 14761 671.32 122193.83 211 579.12 106029.79 178 595.672008-09 11431745 15235 750.36 146036.43 215 679.24 131790.76 186 708.55Source- Annual Reports of NABARD, Vananchal Gramin Bank and Jharkhand Gramin BankYearAll financial institutions including theRRBs are the providers of supplementaryfinance to the process of development. Therecovery rate of RRBs manifests theircapability of getting loans. Heading of ruralcredit portfolio of several millions of loanaccounts involves gigantic task of creditmonitoring, follow up and recoveries. Due toconscious and concentrated efforts to designappropriate strategies for improving therecoveries and keeping the over dues underproper control, the bank performance has5improved in this respect over the period.Table-4Percentage Recovery of Loans by All India RRBs, Jharkhand Gramin Bankand Vananchal Gramin BankAll India RRBsJharkhand GraminBankVananchal GraminBank2005-06 79.80 60.68 48.862006-07 80.49 60.51 37-992007-08 80.81 61.71 42.662008-09 77.76 75.24 60.12Source-: Annual Reports of NABARD, Jharkhand Gramin Bank and Vanancal Gramin BankLooking to table 4 it appears that therecovery rate of RRBs in Jharkhand has beenvery disappointing. The average recovery rateof loan by RRBs in Jharkhand has clearly beenimproving but it is not very satisfactory. Therecovery rate of Jharkhand Gramin Bank wasonly 60.68% in 2005-06 which has gone upto75.24% in 2008-09 but during the same periodrecovery rate of loans of vananchal graminbank had been 48.86% and 60.12%respectively. While this recovery rate iscompared with the All India RRBs recoveryrate, the dismal picture of Jharkhand Bankappears. In the year 2005-06 the all IndiaRRBs recovery rate was 79.80% and 77.76%during 2008-09 but during the same period theRRBs of Jharkhand ( Jharkhand Gramin Bankand Vananchal Gramin Bank taken together)had a recovery rate of 54.77% and 67.68%.-144-Anusandhanika / Vol. III / No. I / January 2011

The poor recovery rate happens becauseof less productivity, rain depended farming,non-mechanisation of cultivation because ofpoverty and illiteracy and above all politicalreason. They defray payment of their loans onthe expectation of getting their loans waivedduring the ensuing election.The economics should not be mixed withpolitics. Both have different areas to operate.The economies should be allowed to operateindependently. The political mileage shouldnot be sought at the cost of economies.Otherwise RRBs in particular will suffer a lotand genuine credit demands of farmers will notbe met. The contribution of rural sector ineconomy will be retarded and the dreambecoming the best nation in the world at thebest possible time will not be realised.4 Non Performing Assets of RegionalRural BanksTable-5Statement of NPA of Jharkhand Gramin bank and Vananchal Gramin bank (Rs in lakh)YearJharkhand Gramin BankVananchal GraminBankJharkhand CommercialBanksAmount % change Amount % change Amount % change2005-06 2597 8.97 3577.76 59.07 683712006-07 2213 6.83 5691.02 21.62 66623 -2.562007-08 2213 6.83 5533.66 17.34 12962 -80.542008-09 1538 4.00 1538.50 4.14 77138 495.11Source- Annual Reports of NABARD, Jharkhand Gramin Bank and Vananchal Gramin BankSince RRBs are rated on the parametersof profitability in the recent past there has beenmounting pressure on the profitability of thesebanks. Profitability is considered as financialhealth and hence much attention is beingfocussed on profitability of RRBs. It measuresthe overall efficiency of banking, finance andadministration. Indeed it is essential on the partof RRBs to earn sufficient revenue to meet therising cost of funds and staff. Earning adequaterevenue is a pre-requisite for survival andgrowth. As NPA are affecting the profitability ofbanks any further escalation in their quantumwill drain away the profits and erode capitalbase of these banks causing anxiety.Table 5 speaks of the NPA position inRRBs of Jharkhand. It is satisfying to note thatthe volume of NPA in Jharkhand RRBs hasbeen improving. The effort of the VananchalGramin Bank has been very appreciable. Itwas 3577.76 in 2004-05 which reduced to Rs1538.50 in 2008-09 almost the NPAs in bothJharkhand Rural Bank and Vananchal ruralbanks has been equal. But still efforts have tobe made to reduce NPAs to the minimum tostrengthen the financial viability of thesebanks. The origination of NPAs in the Indianbanking landscape can be broadly discussedin two stages:1. Pre-liberalization era and2. Post-liberalization eraBanks usually classify as nonperformingassets any commercial loans which are morethan 90 days overdue and any consumer loanswhich are more than 180 days overdue. It iscalled such as while it is an Asset, it does notbring substantial income to its owner or is justdormant. Call it white elephant if you wish. Inliberalizing economy banking and financialsector get high priority. Indian banking sectorhaving a serious problem due non isperformance. The financial reforms havehelped largely to clean NPA. Which wasaround Rs 52000 cores in the year 2004. Theearning capacity and profitability of the bank'sare highly affected due to this. NPA is definedas an advance for which interest or repaymentof principal or both remain outstanding for aperiod of more than two quarters. The level ofNPA act as an indicator showing the bankerscredit risks and efficiency of allocation ofresource.-145-Anusandhanika / Vol. III / No. I / January 2011

YearTable- 6Statement of outstanding Advances of All India, Jharkhand Gramin Bankand Vananchal Gramin BankAll India5. Outstanding Advances of RegionalRural Banks in India and in JharkhandAdvances mean loans granted by RRBsfor the overall development of rural areas.Rural credit is essential for the following purposes;1. For purchase of farm implements vizindigenous wooden implements, improvediron implements, agricultural implements,hand tools etc.2. For purchase of tractors with accessories,power tillers.3. For purchase of oil engines, electricalengines, pump sets, construction of wellsfor irrigational purposes.4. For the purpose of construction andrepairs of farm buildings viz bullock sheds,god owns animal farm and farm store.5. For purchase of seeds, fertilizers,manures, pesticides.6. For meeting capital expenditure andworking capital on dairy, poultry etc, forconstruction of buildings, purchase ofanimals, equipments, feeds, medicinesand vehicles.The main objective behind establishmentof RRBs is to provide financial assistance tothe people of rural sector especially to smalland marginal farmers, agricultural labourers,artisans, small entrepreneurs. As perprovisions of Regional Rural Bank Act 1976,every Regional Rural Bank in generalundertakes the following types of business inJharkhand GraminBankaddition to one or more forms of businessspecified in subsection (1) of Section 6 andclause 6 of Section 5 of the Banking RegulationAct 1949.6 Due to the nature and direction ofpublic policy in the first three five year plans,non instructional agencies occupied adominant place in the rural credit structure.According to the All India Credit Survey Report,the share of institutional agencies, comprisingof the government, the cooperatives and thecommercial banks in financing the borrowingof the rural household was 7.1 percent in 1951-52 whereas the corresponding share of privatemoney lenders alone was as high as 68.67percent. As Charan D.Wadhwa pointed outthe poor villagers are permanently trapped inthe net of the money lenders because ofvicious circle of poverty in which theirexpenses exceed their income every year.8Therefore it is suggested that the RegionalRural Banks should be established to free therural poor from the clutches of moneylendersand provide loans to rural poor at concessionalrate of interest.ConclusionVananchal GraminBankAmount % change Amount % change Amount % change2005-06 3971257 28816.64 27844.642006-07 4849259 22.11 31295.68 8.60 28993.59 4.132007-08 5898427 21.64 34877.84 11.45 33582.63 15.832008-09 6584078 11.62 37551.82 7.67 38502.52 14.65Source- Annual Reports of NABARD, Jharkhand Gramin Bank and Vananchal Gramin BankThe thrust of revival of Regional RuralBanks in Jharkhand calls for multidimensionaleffort. The RRBs have to be clear and clean intheir efforts on the one hand and the ruralpopulation of Jharkhand, which is characterisedby poverty, illiteracy, ignorance have to betaken into confidence on the other hand. TheRRBs of Jharkhand need to be friends,philosophers and guide to the farmers ofJharkhand.-146-Anusandhanika / Vol. III / No. I / January 2011

References1. Thapar Romilla, A History of India,Penguin Books, England, 1996, p 152. RBI, The committee of direction of the AllIndia Rural Credit Survey, the generalreports Vol-II Bombay 1954, p 53. Government of India Planning Commission,Sixth Five Year Plan 1980-85, New Delhi,p174. Srivastava P.K., Banking Theory andPractices, Himalaya Publishing House,Mumbai 2007, p 2145. Joshi G.V. and Gariappa S., Problem andProspects of Rural Banking In India,Mangalore University Press Mangalagothri,p 916. The Regional Rural Bank Act, 11th edition2001, Eastern Book Company, Lucknow,p197. Reserve Bank Of India, All India CreditSurvey, Volume II, Bombay, 1954, p.178. Wadhve D. Charan, Rural Banks for RuralDevelopment, Macmillian Company ofIndia ltd, Madras, 1980, p 2-147-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 148-153ISSN 0974 - 200XDimensional Modeling-A viable technique forthe development of a Data WarehouseKeywords: Business process, Data Mart, Dimensional modellingIntroductionA data warehouse is designed accordingto a set of relevant business subjects and eachof these subjects center around a businessprocess. These relevant business subjects arealso known as data marts. A data warehouse isdeveloped to answer the questions beingasked everyday, based on the overall businessprocess. Decision making requires metricswhich are used in every organization toevaluate and monitor business processesaccording to the goals of the business.In this article dimensional modelingapproach is considered for the development ofa data warehouse. Dimensional modeling is afavorite modeling technique in data warehousing.Dimensional model constitutes a model oftables and relations which optimizesmeasurements for the outcome of thebusiness processes being modeled.Dimensional modeling efficiently handles enduser queries in a data warehouse becausedimensions are the entry points to a datawarehouse. In designing data models for DWthe most commonly used schema types arestar schema and snowflake schema. It isadvisable to create a star version of the snowflaked dimension for presentation to the userswhich is best accomplished by creating anindexed view across the snow flakeddimension. Some dimension table may beDipak Kumar ShuklaIT FacultyICFAI Universiy, JharkhandAbstractIn recent years data warehouse projects have become popular to most Indian companies. A data warehouseimplemented properly helps in efficient decision making as it is an approach which additionally focuses ongoals and strategies of the organizations. A data warehouse is a repository of organizations’ electronicallystored data and the dimensions are the entry points to the data warehouse. The dimension model uses star orsnowflake scheme that are useful for end user query. The dimensional model uses not only dimensions andfact tables but also business labels familiar to end users. Dimension modeling ensures the more effectivemodeling for data warehouse structures. This article navigates through the main ideas of dimensionalmodeling giving the concept of dimensional modeling technique for the development of a data warehouse.-148-used to contribute data to different data martswhich are known as conformed dimensions,generally done for a large enterprise andmemory space utility. Dimensions may be ofdifferent types based on its usability, say,slowly changing dimensions, degeneratedimensions, and junk dimensions, etc.TerminologiesData WarehouseA data warehouse is a subject-oriented,integrated, non-volatile and time-variantcollection of data that helps management inefficient and effective decision makingprocesses.The terms stated in the sentence can befurther defined as:Subject Oriented: Data that signifiesinformation about a particular and relevantsubject instead of about a company's ongoingoperations.Integrated: Data that is accumulated intothe data warehouse from a variety of sourcesand merged into a coherent whole.Time-variant: All data in the datawarehouse being identified with a particulartime period.Non-volatile: Data is added in a datawarehouse from time-to-time and are neverremoved constituting the historical data.

Data MartA data mart is a logical subset of thecomplete data warehouse structure.Dimensional ModelIt is a logical design model composed ofone table with a multipart-part key i.e. the facttable and a set of smaller tables calleddimension tables. Every dimension tablecontains a single part primary key thatcorresponds exactly to one of the componentsof the multipart key in the fact table.Dimension TableIt is a table having textual attributes alsobeing a set of companion tables to a fact table.Each dimension table is defined by the primarykey that serves as the basis for referentialintegrity with any given fact to which it is joined.[Referential Integrity: Referential integrity is asystem of rules that uses to ensure thatrelationships between records in related tablesare valid and that one cannot accidentallydelete or change related data.]Fact TableA fact table is a table in each dimensionmodel containing measurements of thebusiness.Conformed DimensionA dimension becomes a confirmeddimension when it means the same thing withevery possible fact table to which it is joined.Junk DimensionIt a dimension containing convenientgrouping of random flags and attributes to getthem out of a fact table into a useful dimensionframework.[Flag: It is a special indicator to a fact tablerecord to show that the status of that accounthas just changed or is about to change.]Degenerate DimensionThese usually occur in line item-orientedfact table designs.Slowly Changing DimensionsThe data warehouse has three main options1) The dimension record is overwritten withthe new values losing the original history.2) A new additional dimension record iscreated using a new value of the surrogatekey.3) An old field in the dimension record iscreated to store the immediate previousattribute value.[Surrogate key: A surrogate key is a keywhich is substituted for the natural primary keyin a data warehouse. It is a unique identifier ornumber for each row that is utilized for theprimary key to the table. A Surrogate key isalways an integer or a numeric value.]Building Dimensional ModelThe dimensional model building processis based on the sequential steps ofinvolvement of people and methods applied:PeopleBesides the project manager, all the teammembers in the data warehouse developmentespecially the data modeler and the databaseadministrator must be honest in understandingthe dimensional model building process. Thebusiness systems analyst must understanddimensional modeling to help the data modelertranslate the business requirements into thedatabase design.MethodsMatrix MethodThe matrix method is considered in thissection. As the dimensional model constitutesthe logical design of the data warehouse, so atop-down planning approach is used to builddimensional models. This is known as datawarehouse bus architecture matrix. Here amatrix of data marts and dimensions is builtand the intersections are marked where adimension exists for a data mart. An example incase of a telephone company is depicted in thefigure 1.-149-Anusandhanika / Vol. III / No. I / January 2011

TimeCustomerServiceRate CategoryLocal Service ProviderCalling PartyCalled PartyLong-Distance ProviderInternal OrganizationEmployeeLocationEquipment TypeSupplierItem SuppliedWeatherAccount StatusCustomer # # # # # # # #BillingService Orders # # # # # # # # # # #Trouble Reports # # # # # # # # # # # # # #Yellow Page Ads # # # # # # # #Customer Inquiries # # # # # # # # # # # #Promotions & # # # # # # # # # # # # # #CommunicationBilling Call Detail # # # # # # # # # # # # # # #Network Call Detail # # # # # # # # # # # # # # #Customer Inventory # # # # # # # # # # # #Network Inventory # # # # # # # #Real Estate # # # # #Labor & Payroll # # # #Computer Charges # # # # # # # # # # #Purchase Orders # # # # # # #Supplier Deliveries # # # # # # #Combined Field # # # # # # # # # # # # # # #OperationsCustomer # # # # # # # # # # # # # # # #RelationshipManagementCustomer Profit # # # # # # # # # # # # # # # #Figure 1: The Data Warehouse Bus Architecture matrix for a telephone company(Source: Ref. 1; Page 271)The matrix is also a kind of map of thepolitical process that has to be undertaken toget all the groups to agree on the commondefinition of the dimension. A real matrix for areal data warehouse design can be larger and2more complex than as shown in the figure.Method to Design the Fact TableWhen the data marts that are pragmaticcollection of related facts and their associateddimensions have been identified then thedetailed logical and physical design ofindividual tables are stated. The steps used fordesigning the fact tables are-150-Anusandhanika / Vol. III / No. I / January 2011

Choosing the data martDeclaring the grainChoosing the dimensionsChoosing the factsSome miscellaneous detailed design tipsfor the above mentioned four steps to designthe fact table areThe labels that are used to identify thedata marts, dimensions, attributes, andfacts will probably be the standardbusiness names that will be displayed tothe end users. Hence, these should bechosen carefully.An attribute can live in one dimensionagainst a fact that can be repeated inmultiple fact tables.If a single dimension appears to reside inmore than one place then the roles shouldbe uniquely named and are to be treatedas separate dimensions.A single field in the underlying source datacan have one or more logical columnsassociated with it.Every fact should have a defaultaggregation rule, say, sum, min, max,latest, semiadditive, special algorithm,etc.The on going dimensional modelingproject takes into account the data warehousebus architecture matrix, the fact table diagramand its detail and the dimension table detail.The data warehouse bus architecture matrix isvery useful as a high-level introduction todesign and after its preparation a logicaldiagram of each completed fact table isprepared.Besides this, the fact table detail providesa complete list of all the facts available throughthe fact table including actual facts in thephysical table, derived facts presented throughDBMS views, and other facts that are possibleto calculate from the first two groups.Aggregate rules should be provided witheach fact for the reviewer. Finally thedimension table detail shows the individualattributes within a single dimension having aseparate diagram. The dimension table detailexplains the attribute cardinality and allowsusers to quickly browse multiple hierarchiesand relationships between the attributes. Eachdimension attribute should have the following:Attribute nameAttribute definitionCardinalitySample dataSlowly changing policyExample of the fact and dimension tabledetails are depicted in figures 2 and 3respectively.Customer Billing Line Item Fact TableBilling_Month_keyCustomer_keyService_keyRate_Category_keyAccount_Status_keyLocal_Service_Provider_keyLomg_Distance_Provider_keyLocation_keyline_item_amountline_item_quantityaverage_line_item_price*line_item_rate_category_discountFigure 2: Fact table detail diagram showingdimension keys, basic facts, and derivedfacts (marked with asterisks)(Source: Ref. 1; Page 280)MultipleHierarchies(1) Fiscal Year Calendar Year (1)(4) Fiscal Ouarter Calendar Ouarter (4)(12) Fiscal Month Calendar Month (12)(52) Fiscal Week Calendar Week (52)FutureAttribute(14) HolidayPossible FutureDimension GrainDay Day of Week (7)Hour(8,760)Dimension GrainFigure 3 : Dimension table detail diagram (relativecardinalities shown in parenthesis)(Source : Ref. 1 : Page 281)-151-Anusandhanika / Vol. III / No. I / January 2011

Dimensional Modeling stepsThe development of the dimensionalmodel is an iterative process. An initial daft iscreated that contains possible data martsidentified, possible dimensions identified, thematrix filled at the intersection of existingdimension and a data mart, the dimensionsidentified that apply and the grain for each datamart and the specific base business factidentified for each data mart. Based on therequirements of users base facts as well asderived facts are used. The derived facts canbe of two types, the former being the additiveas well as the latter being non additivecalculation. Too often, the basic databasedesign is completed and then no thought is putinto the derived facts until the team is ready tobegin developing the end user applications.The derived facts can be identified based onthe requirements of the business users.Identifying the sources for each Fact Tableand Dimension TableIn the data source definitions the followinginformation should be included:Source: The name of the source system.Business owner: The name of theprimary contact within the business who isresponsible for this data.IS owner: The name of the person who isresponsible for this source system.Platform: The operating environmentwhere this system rune.Location: The actual location of thesystem. The name of the city and thespecific machine where this system runs.Description: A brief description of whatthis system does.Mapping Data from Source to TargetMapping data from source to target isdone in the data staging process. The columnsmainly being included areTable nameColumn nameData typeLengthTarget column descriptionSource systemSource table/fileSource column/fieldData transformDimension/data martAttribute/factUsing a data modeling tool to develop thephysical data model could be beneficial as ithas got its own advantages.Myths about DM (modified from thesource: Ref. 1; Page 150 – 151)There are a few myths about dimensionalmodeling:Myth #1 Implementing a dimensional datamodel leads to stovepipe DSS.Myth #2 Dimensional modeling is difficultto understand as no one understands it.Myth #3 Dimensional model works onlywith retail databases.Myth #4 Dimensional modeling is analternative to snow flaking.Reality against these Myths can be putforward as:#1 Every ER-model has an equivalent set ofdimensional models that contain the sameinformation. In the case of organizationalchange and end-user adaptationdimensional model is highly appreciableas its form is not being altered.#2 There is designers who are well adaptedand find dimensional modeling easyextending from the packaged goods retailand manufacturing industries. Dimensionalmodeling is being used during the lastthirty decades.#3 The current-day reality of DM proves that itis being applied to many business areas,including retail, banking, commercialbanking, property and casualty insurance,health insurance, life insurance, brokeragecustomer analysis, telephone industries,advertising, oil company fuel sales,government agency spending, manufacturingshipments, health care, and many more.#4 Snow flaking is a process of removing lowcardinalitytextual attributes fromdimension tables and placing them insecondary dimension tables attached tothe parent one. Snow flaking is as anembellishment to the simplicity of thebasic dimensional model.[ER-model: A data model based on aperception of a real world that consists of aset of basic objects called entities, and ofrelationships among these objects.SQL: Structured Query Language.]Benefits of DM1) The dimensional approach can beconsidered independent of the database-152-Anusandhanika / Vol. III / No. I / January 2011

as it does not require the database to berestructured when any new data isintroduced into the data warehouse andalso when the relationships among dataelements are revised.2) Dimensional model is a standard andpredictable framework where reportwriters can make strong assumptions tomake the user interfaces more predictablemaking the processing more efficient.3) The star join schema can withstandunexpected changes in the userbahaviour in dimensional modeling.4) New data elements and design decisionscan be easily accommodated indimensional modeling.5) The aggregates containing summaryrecords that solve performance problemscan be easily formed in dimensionalmodeling.ConclusionDimensional modeling is an effectiveapproach to make user interfaces moreunderstandable while making the processingmore efficient as business requirementsdetermine the data needed to addressbusiness users’ analytical requirements. Theconstruction of a matrix represented keybusiness processes and their dimensionalityserving as a blue print to ensure that the datawarehouse is extensible across theorganization over time. Dimension modelingcan be emphasized mainly as predictableframework being gracefully extensible wherenew data element and new design decisionsare easily accomodable making it a successfulapproach for the development of a datawarehouse.References1. Ralph Kimball, The data WarehouseToolkit (Wiley Computer Publishing, JohnWiley & Sons, Inc., 1998).2. W. H. Inmon, Claudia Imhoff, and RyanSousa, Corporate Information Factory(New York, NY: Jonh Wiley & Sons, Inc.,1998).3. Len Silverston, W.H. Inmon, and KentGraziano, The Data Model ResourceBook (New York, NY: John Wiley & Sons,Inc., 1997).4. Douglas hackney, Understanding andImplementing Successful Data marts(Reading, MA: Addison-Wesley, 1997).5. Silberschatz, Korth, Sudarshan,Database System Concepts, 4th Edition,McGrawHill6. http://www.rkimball.com/html/ articles_search/articles1997/9708d15.html7. www.lifecycle-toolkit.com/ bookinfo/chapter1.htm-153-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 154-157ISSN 0974 - 200XThe Merger of Indian Airlines and Air India:-Open new horizons for Indian aviation sectorKeywords: Aviation industry, Competition, National carrier, StrategyIntroductionThe last two decades after independencehas witnessed growth of industrialization in thiscountry. Tourism and civil aviation as anindustry has been able to establish its foot holdand had substantially contributed to thisgrowth. The potentiality and ability of thisindustry in connection to its contributiontowards the national exchequer as well asearning of foreign exchange can not bequestioned. In 1953, The government of Indiadecided to nationalize this industry on therecommendation of Mr. P.C Mahlonbiscommittee. The government nationalized nineairline companies vide the Air corporationact,1953. Accordingly it established the Indianairlines corporation to cater to domestic airtravellers passengers and air India internationalair travel passengers. The assts of the existingairlines companies were transferred to thesetwo corporations. This act ensured that Indianairlines and air India had a monopoly over theIndian skies.The origin of Indian civil aviation industrycan be traced back to 1912, when the first airflight between Karachi and Delhi was startedby the Indian state air services in collaborationwith the UK based imperial airways.Dr. Vikas Kumarlecturer, P.G Center of CommerceMarwari College, RanchiSweta JhaResearch ScholarP.G Department of Commerce and Business ManagementRanchi University, RanchiAbstractFor long decades after its independence, India was served by two states run aviation companies.Air India which served the international market and Indian airlines which served domestic market.Even though the two were started with a lot of capital and initial performance was nothing short ofremarkable, it was not long that the two companies started to feel the restriction and stress of asocialistic shackled system. In the recent years, the opening of Indian aviation sector for privateplayers meant that the competition was getting too much for them . The solution was found by theIndian government in the form of merger of both the entities. Following the merger, a new entityknown as the National aviation company of India limited was formed and finally the flag carrier ofIndia is coming back to the days of its old glory.-154-The history of air India and the history ofIndian aviation industryIn 1953 JRD Tata founded Tata airlines,the first Indian airlines . on 29th july1946, Tataairlines was converted into a public company,under the name of air India . on march 8 , 1948,air India international limited was formed tostart air india international operations. On June8, 1948, air India started its internationalservices, with a weekly flight from Mumbai toLondon via Cairo and Geneva with a Lockheedconstellation aircraft. In early 1950s,deteriorating financial condition of variousairlines, the government decided to nationalizeair transport on August 1, 1953, twoautonomous corporations were created .Indian airlines was formed with the merger ofeight domestic airlines to operate domesticservices, while air India international wasestablished to operate the overseas services .The word ‘International’ was dropped in 1962.With effect from March 1, 1994, the Airlines hasbeen functioning as air India limited.Indian airlines flights free run over theIndian skies ended with the entery of privatecarriers after the liberalization of the Indianeconomy in the early 1990’s when many

private airlines like jet airways , air Sahara,east-west airlines and Modiluft entered thefray. The entery of low cost airlines like airDeccan , kingfisher airline and spice jet hasrevolutionized the Indian aviation scenario.Indian has been a pioneer in the aviation scenein India. It was the first airlines in India tointroduce the wide- bodied A300 aircraft on thedomestic network, the fly-by-wire A320 , walkin flights and easy fares continuousupgradation in the fleet of Indian airlines hasbeen going on , ever since its inception.Materials and MethodsFor the purpose of in depth study thecontents have been taken from relevant booksand articles from journals and websites. Themethods used is analytical and descriptive.Both primary as well as secondary sources ofinformation have been taken.Results and DiscussionsIn the year 2005, India witnessed anumber of re branding initiatives, taken bysome of the big names in the corporate world.One such noted move was made by Indianairlines limited, which changed its name to‘Indian’. The decision was a part of thepromotional programme, done to revamp theimage of the airline. The advertisingcompaigning of Indian airlines was a hitamongst the common masses. The ‘turbanmaharaja’ mascot of ‘Indian’ clicked the mindsof the people in the country . The compaigninghelped ‘Indian’ to become a household namein the country . in Feb. 2007, the government ofIndia proposed the plan of Indian’s merger withair India.Air India and Indian airlines mergerThe government of India, on March 1,2007, approved the merger of air India andIndian airlines. Consequent upon the above, anew company viz national aviation company ofIndia limited (NACIL) was incorporated underthe companies act , 1956on 30 march 2007.The certificate to commence business wasobtained on 14 may , 2007.The authorised and paid up share capitalof the merged entity will be Rs. 1500,05,00,000and Rs. 145,00,00,000 respectively. It hasbeen decided that post merger , the new entitywill be known as “Air India” while “Maharaja”will be retained as its mascot. The logo of thenew airline will be a red coloured flying swan-155-with the “Konark Chakra” orange placed insideit. The flying swan has been morphed from airIndia’s characteristic logo “The centaur”whereas the “konark chakra” was reminiscentof India’s logo. The new entity has seen anumber of changes in its operating model. It ismuch restricted by Government control and isthere for much more agile and can churn betterreturns than the two different entities. Anotherspecial thing to be noted here is that since thetwo companies have come together, they havealso been able to bring together their bestpractices and reduce the over all operationalcost as well as administrative by aconsiderable margin. The merger of air Indiaand Indian airlines was expected to create oneof the biggest Airlines in the world in terms infleet size placed the merged entity amountingto top ten Air lines in Asia and the top thirty inthe world.Synergy FactorsMerger of the transferor companies withthe transferee company, along with acomprehensive transformation programme, isimperative to improve competitiveness. It willprovide an opportunity to leverage combinedassets and capital better and build a strangersustainable business specifically, the mergerwill1. Create the largest air line in India andcomparable to other air lines in Asia. Themerger between the two state run carrierswill see the beginning of the process ofconsolidation in the Indian aviation space– the fastest growing in the world followedby china , Indonesia and Thailand.2. Provide an integrated international /domestic foot print which will significantlyenhance customer proposition and alloweasy entry in to one of the three global airline alliances, mostly start alliance withglobal consortium of 21 Air lines.3. Enable optional utilization of existingresources through improvement in loadfactors and yields on commonly service ,routs as well as deploy, ‘freed up’ aircraftcapacity on alternate routes . the mergerhad created a mega company withcombined revenue of Rs. 150( 3.7 billion )and an estimated fleet size of 150. It had adiverse mix of aircraft for short and longhaul resulting in better fleet utilization.Anusandhanika / Vol. III / No. I / January 2011

4. Provide an opportunity to fully leveragestrong assets, capabilities and infrastructure.5. Provide a large and growth orientedcompany for the people and the sameshall be in large public interest.6. Potential to launch high growth &profitability businesses (ground handlingservices, maintenance repair andoverhaul etc.)7. Provide maximum flexibility to achievefinancial and capital restructuring throughrevaluation of assets.8. Provide an increased thrust and focus onairline support businesses.9. Economics of scale enabled routesrationalization and elimination of routeduplication. This results in a saving ofRs.1.86 billion ($0.04 billion) and the newairlines will be offering more competitivefares, flying seven different types aircraftand thus being more versatile and utilizingassets like real estate, human resourcesand aircraft better. However the mergerhad also brought close to $ 10 billion (Rs.440 billion) of debts.10. Traffic rights- the protection enjoyed bythe national carriers with regard to thetraffic right entitlements is likely tocontinue even after the merger. This willensure that the merged airlines will haveenough scope for continued expansion,necessitated due to their combined fleetstrength.The merger effects1. The Nacil’s Product Quality Is Bound ToImprove With The Induction Of More NewAircraft.2. In these days of high costs, the merger willenable the new air India to rationalisecosts by synerging operations . not onlycan separate offices and man power beavoided , many other facilities such asengineering, inventories, IT, etc. Can beintegrated, leading to large savings.3. Air India and Indian airlines wereencouraged to think differently and actdifferently. The two organisationscompeted with each other, rather than cooperateand offer better services to theirpassengers. Now there is a chance to-156-change all that and offer the advantageand strength of two large domestic andinternational networks working as onesingle entity. The vastness and reach ofthe new air India , as result of the mergerand membership of the star alliance willbe truly impressive.4. Both in terms of revenue and wastes,therefore , the merger can help thenational carrier. For this two materials, theprocess of merger has to be carried to itslogical conclusion. Merger is not easy noris it painless. It will take time and there willbe teething troubles: there could besetbacks and constant irritants these areall part of the merger process and have tobe seen and accepted as such, andsolutions found.5. The merger will provide integratedinternational and domestic footprint,which will benefit passengers significantly.domestic and international flights willseamlessly integrate, allowing passengerto check in for their international flight fromany domestic point in India.Benefits of merger of air India and Indianairlines :-Though in dire need of yet another dose ofequity infusion the government and stillgrappling with problems of total integrationpost air India –Indian airlines merger, the turnaround plan adopted by air India during 2010-11 has started showing results. The turnaround plan of air India has resulted inimprovement being reported across allperformance parameters. During the periodApril- November 2010,, air India recordednetwork revenue of Rs. 7,250 crore ascompared to the revenue of Rs.5,911 croreachieved during the corresponding period ofthe previous year, thus showing a growth of22.6%out of the total network revenue, Rs.4,401 crore was recorded on internationalflights as compared to Rs. 3,801 crore in theyear ago period, showing a gain of 15.8%network revenue on domestic flights jumped35% from Rs. 2,110 crore in April – Nov. 2009to Rs.2,849 crore in April-Nov 2010.Passengers continued to repose theirfaith in the airline and overall, air India wasranked 28th among the top 50 service brands,ahead of leading banks, insurance companies, food changes and airlines. In AprilAnusandhanika / Vol. III / No. I / January 2011

–November 2010, 9.05 million passengersflying the air India network as compared to 7.99million in the previous year during the sameperiod. On its international network, passengertraffic improved to 3.74 million passengers ascompared to 3.61 million passengers in theyear ago period , an increase of 3.5% on itsdomestic network , passenger traffic was up at5.32 million passengers from 4.38 million in theyear ago period, an increase of 21.4%.The airline registered an overallpassenger load factor of 66.3% during April-November 2010, up from 63.1% achieved inthe previous year. On its international network,the passenger load factor increased to 65%from 62.2% while on its domestic network, thepassenger load factor increased to 70.4% from66.2% during this period yield per revenuepassenger kilometre on the air India networkincreased by12.2%. on its internationalnetwork, yield per revenue passengerkilometre increased by 8.7% , while on thedomestic network the yield per revenuepassenger kilometre was up by 14% . themreger also provides an opportunity to fullyleverage strong assts, capability, infrastructureand skilled and experienced man poweravailable with both the companies to theoptimum potential. It also provides a large andgrowth oriented company for the people in thelarge public interest: provide maximumflexibility to achieve financial and capitalrestricting through revaluation of assts andprovide an increased thrust and focus anairline support business. New fleet brings in aproduct and service level that is the best inclass, and now it includes in-flight entertainment,better service and enhanced in –flight services. a combined schedule means betterconnectivity to the largest international airlinein India as well as improved service to variousdomestic points in India . the consumer is aclear winner in the merger, having a muchimproved product and superior service quality.ConclusionAviation industry in India is one of thefastest growing aviation industries in the world.With the liberalization of the Indian aviationsector, aviation industry in India hasundergone a rapid transformation. From beingprimarily a government owned industry, theIndian aviation industry is now dominated byprivately owned full service airlines and lowcost carriers. Earlier air travel was privilegeonly a few could afford, but today air travel hasbecome much cheaper and can be afford bylarge number of people. Following the mergerof air India and India airlines, a combinedidentity involve and the operational brandname of the company remains air India and themaharaja continues as the mascot of the newairline. The new entity has seen a number ofchanges in its operating model. It is much lessrestricted by government control and istherefore much more agile and can churnbetter returns than the two different entities.Another special things to be noted here is thatsince the two companies have come together,they have also been able to bring together theirbest practices and reduce the overalloperational cost as well as administrative costby a considerable margin. Finally the flagcarrier of India is coming back to the days of itsold glory.References1. Business line, December 26, 2010, TheHindu2. Air India annual report. 2009-10. www.airIndia .com3. www.googal.com4. www.india_airlines.nic.in5. www.wikipedia.org-157-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 158-161ISSN 0974 - 200XProspects of packaged drinking water industry in Indiawith special reference to JharkhandIntroductionAmong all the relevant issues of the globalworld, the most important issue is the watermanagement i.e. safe drinking water becauseavailability of pure drinking water stands as thebasic requirement for healthy living. Nowadayswater is one of the primary concerns forsustaining life, health and for the existence oflife. Water is most important for human bodyand its importance in human body can be wellrealized when we observe the fact that even ifthe water in human body is reduced by just 1-2%, we feel thirsty. A reduction of 5 % of water inhuman body may cause skin shrinkage anddifficulty in movement of muscles and at thesame time a reduction of 10 % of water maycause death. Though the world is surroundedat 75 % of its parts by water, but it is awful thatout of the total water available in world, only 2.5% is fresh water for drinking; and major part of itis locked up in glaciers or deep under ground. Itis also regretting fact for specially thosecountries which are on the stage ofdevelopment or underdeveloped, due to lackMohammad Tauseef Ali AhsanLecturer, Department of MBA/BBAMarwari College, Ranchi University, RanchiDr. Jitendra SonarReader, Department of CommerceMarwari College, RanchiAbstractAs we know that drinking water is the most essential thing to sustain human life on the earth, Pure and safedrinking water has always been a necessity for all human beings. The importance of water can be assessedonly when we know that the reduction of water by 10 % in human body may cause death. It is but essentialthat the quality of water which we consume must be suitable for our health. In other words purity of water isessential for good health otherwise this may lead to poor health resulting into death. The failure ofgovernment to provide safe drinking water to the people has opened doors to the private companies toprovide packaged water. The tendency of having pure and safe drinking water has brought tremendousdevelopment in the field of packaged drinking water industry abroad as well as in India. Now a days India hasalmost 100 companies whose production is 424 million litres of bottled water approximately and the annualturnover is almost 200 Crores. People in urban areas now a days have resorted to packaged drinking wateras one of the options to meet their daily requirement. As a result, this industry has emerged as a businessopportunity throughout the whole world. However there are some challenges before this industry in respect ofprice, quality standard, distribution channels, infrastructure etc. If all these problems are handled carefullyand the government pays proper attention for the development of infrastructure, no doubt there is widerscope of growth of this industry.Keywords: Earthern pots, Chlorination, Ozonisation, Superstores, Glaciers-158-of infrastructure and finance, adequatequantity of safe drinking water is not availableto the people. In earlier days, water availablefrom wells, ponds and rivers used to beconsidered safe and it was stored in houses inearthern pots, and brass containers. Thestored water was used for drinking by themembers of the family and it was also served toguests and visitors. But this tradition haschanged during the last few decades and theintroduction of packaged drinking waterspecially in urban areas has occupied itsposition. This has emerged packaged waterindustry in the industry.Packaged drinking water today is one ofthe fastest growing industries and is earningextra ordinary profit built on the foundation ofthe bad governance, inequity and blatantexploitation. The basic source or raw materialof these industries is underground water andthese companies bear a production cost ofmerely Rs 2- Rs 4 per litre, whereas they areselling purified water at Rs 10 to Rs 18 per1litre.

Sometimes it is confused that packageddrinking water and mineral waters are thesame. Actually there is difference between thetwo. Bottled water containing not less than 250parts million total dissolved solid may belabeled as mineral water. The U.S. FDAclassifies mineral water as “water containing250 parts per million total dissolved solids,originating from a geologically and physicallyprotected underground water sources”2. Thusmineral water is distinguished from other waterby its constant level and relative proportionsand trace element at the point of emergencefrom the source.Materials and MethodsResource has been taken to both primaryand secondary sources of information. Variousreference books have been consulted andmaterials and data on the topic available on theinternet too have been taken into consideration.Attempts have been made to be objective andanalytical.Results and DiscussionsPackaged water is the drinking waterwhich is packaged in a variety of forms. Thesevarieties may include pouches, glasses, 500ml bottles, 1 litre bottles, 2 litre bottles and even20 to 50 litres bulk water packs. People living inurban areas are increasingly looking towardspackaged water as a means of meeting theirrequirements for drinking water, only becauseit is safe to drink, it is readily available and canbe carried from one place to another placeeasily. Owing to these qualities, packagedwater industry is fast em.erging as a businessopportunity nowadays.Packaged water fall under two categories :a) Packaged natural mineral water (PNMW)b) Packaged drinking water (PDW)Packaged natural mineral waterPackaged natural mineral water is thewater which contains either naturally orartificially added minerals. The substance thatcan be dissolved mostly in water are salts,sulfur compounds and gases. According toNational Seminar held on ‘Packaged waterindustry in India’ “PNMW or Packaged naturalmineral water (governed under IS : 13428 :1998 amendment 1-5 upto 15th Oct 2004)water is drawn from natural sources, conformsto composition listed under the standard and isbottled without altering the composition. Somebrands available are Danone’s Evian,-159-Ferrarelle, Nestle’s perrier and San Pellagrinoetc. They are being retailed in the range of3approx Rs 80 – Rs 100”.Packaged drinking waterPackaged drinking water is the purifiedform of water in which ordinary form of water istreated to meet certain quality standard as setby Bureau of Indian standard. The water for thepurpose of packaging undergoes various formsof treatment process including Chlorination,Sand filtration, Carbon filter, Ultra filtration,Reverse osmosis, Ozonisation, Ultra violetfiltration. According to the National Seminar onPackaged water industries in india “PDW orPackaged drinking water (governed under IS :14543 : 2004) in this case, any of theprocesses of filtration/disinfection listed underthe standard can be utilized, altering thecomposition of subject water and finallybottling. Simply speaking it is ordinary watertreated to meet certain quality standards.Some popular brands are Kinley, Aquafina,Hello, Prime etc. 1Ltr variants are being sold atapprox Rs 10. This segment is where theaction is. Due to inefficiencies in the presentdistribution system, PDW is fast emerging asan alternative drinking water supply, especiallyin urban areas. The main consumers ofpackaged water are no longer restricted to theupper class and lower- middle class families as4well”.Packaged drinking water industries in IndiaSo far as India is concerned, India ranks10th largest consumer of packaged drinkingwater in the world and today, it is one of thefastest growing industries here. Packagedwater market in India has its seeding as, earlyas 1968-69 when Parle group launched bottledwater along with soda water. But at that time,the concept of buying water in bottled form wasnot accepted by the Indian public and as aresult the market remained dormant for aperiod of approximately 20 years. But in theearly 1990s when Govt of India declaredliberalization policy most of the companies likeCola, Thumps up, Gold spot, campa etcjumped into the Indian market. Due to variousfactors like exposure to media, exposure tointernational life styles, deteriorating levels ofpotable waters, increase in a number of waterborne cases, increase in awareness abouthealth and hygiene led to the acceptability ofthe concept of packaged water by Indianmarket. Today there are thousands ofAnusandhanika / Vol. III / No. I / January 2011

packaged drinking water industries in Indiaamong which this industry is dominated by bigplayers like Cocacola, Parle agro, Bislery,Pepsico, Mohan meakin, Kinley, Aquafina etc.There are more than 200 brands, nearly 80%of which are local. It is estimated that rate ofgrowth of this industry is 40% in India and it isalso estimated that the growth of this industrywill go upto Rs 4000 – Rs 5000 crores at theend of 2011. At its early stage of development,packaged drinking water was mainly availableat railway stations, but nowadays it hasoccupied place in superstores, grocers, hotels,restaurants and even panwalas. This is agrowing market in India as quality consciousnessamong consumers is on the rise. From a mere60 towns in the year 1997, it is predicted thatpackaged drinking water is today available inmore than 1000 towns and cities across India.In the words of Azaz Motiwala, “in my view,thanks to all these factors the Indian bottledwater industry will be booming in coming yearsand do not be surprised if today’s bottles water5industry becomes next oil industry by 2025”.Packaged Drinking Water CompaniesEarn Extraordinary Profits40% of bottled water comes from thesame source as tap water, but is sold back toconsumers at hundreds of times the cost, saysthe website of the North American "Thinkoutside the Bottle" campaign. Companies earnextraordinary profits by selling water at 10 - 12rupees (24 US cents) or more per liter after aproduction cost of 25 paise, or 0.25 rupee perliter. It can be shown with the help of Fig 1.Cap Cost Rs. 0.25Bottle Cost Rs. 1.50-2.50Treatment Cost Rs. 0.10 - 0.25Label Cost Rs. 0.15 - 0.25Cartoon Cost Rs. 0.50Transportation Rs. 0.10 - 0.25CostOthers Rs. 0.25Total Cost (excludinglabour, Marketing & Tax) Rs. 2.84 - 4.25Selling Cost Rs. 10 -12.00Source: Primary source(FIG 1 : Cost of production per litreof Packaged Drinking water)Scope of packaged drinking waterindustries in JharkhandAs we know Jharkhand is the 28th state ofIndian Union and this has come into existenceon 15 Nov 2000 by the Bihar ReorganisationAct. Jharkhand meaning ‘forest tract’ is theancient name given as a whole, to the forestedupland geographically known as thechotanagpur plateau forming the north-easternportion of the peninsular plateau of India. Thisstate is famous for its rich mineral resourceslike Uranium, mica, bauxite, granite, gold, coal,iron ore, copper, dolomite, fireclay, quartz etc,but as ill luck would have it there is scarcity ofsafe drinking water. The entire rural populationof Jharkhand do not have access to safedrinking water as the water source containsfluoride, arsenic and iron, owing to thesethings, people living in rural area and also inslum areas of the towns suffer from waterbornediseases. Some programmes such asacceleratd rural water supply (ARWS),Swajaldhara and total sanitation campaignhave been launched to serve the ruralpopulation with water and sanitation relatedservices all across the state.BrandsProductionsper Year(Litres)Sale perYear(Rs)Hi-Tech 60,00,000 7,20,00,000(Approx) (Approx)Tans 30,00,000 3,60,00,000(Approx) (Approx)Aquafina 36,00,000 4,32,00,000(Approx) (Approx)Kempty 27,00,000 3,24,00,000(Approx) (Approx)Nirmal Jal 28,50,000 3,42,00,000(Approx) (Approx)Bislery 33,00,000 3,96,00,000(Approx) (Approx)Source: Primary sourceMarket size by volume and value inJharkhand:Various leading brands available inJharkhand are as follows:The markets of packaged drinking water inJharkhand include:i. Theaters, cinema halls and multiplexes.ii. Corporate sector.iii. Caterers.-160-Anusandhanika / Vol. III / No. I / January 2011

iv. Hotels, resorts and restaurants.v. Colleges, schools and other educationalinstitution's canteens.vi. General stores.vii. Railway station, bus stands and airports.viii. Urban house holds.The present population of Jharkhand is2.69 crores approximately and theconsumption of drinking water is about 5.48crores litres per day. In Jharkhand the marketsize of packaged drinking bottled water is veryhuge. Only few of the leading players such asHI-Tech, Tans, Nirmal Jal, Kingfisher, Bislery,Aquafina etc are here in Jharkhand andproducing approximately 2.5 crores litres ofdrinking water every year, but these are notfully capable to fulfill the requirement ofdrinking water to the masses of Jharkhand.Hence there is great potential for this industryin this state.ConclusionAlthough a number of manufactures havejoined this industry, yet there is a gap betweendemand and supply of packaged drinkingwater. The per capita consumption of bottledwater in India is less than ½ a litre per year ascompared to 11 litres in France and 45 litres inUS. Hence there is requirement of setting up ofmore producing units in the country so that thelocal demand in institution, hotels, restaurants,sponts, offices, tourist and house holds can bemet easily. A manufacturing plant can belocated at any suitable place where availabilityof clean water, power supply, bottles andmarket access is ensured. Besides somemalpractices like not treating water properlybefore storage, filling tap water in used bottlesand reselling them are also prevalent. Thegovernment should take steps to check allthese malpractices, so that the trust of thepeople can be won; Besides the quality of thepackaged drinking water should be improved.When the product is ready for distribution,storage condition should be improved as welland the final product must mention the detailslike batch number, date of manufacturing andbest use before. Researches should beencouraged to improve the quality andreducing the price to make it affordable for thepeople living in rural areas as well. As there isstiff marketing competition between localbrands and the global brands, the governmentshould develop infrastructure for this industry.References1. www.bottledwaterindia.org.2. FDA, US Food and drug administration,Regulation of bottled water: Appendix“Mineral water” – 28/03/2010.3. National Seminar on ‘Packaged waterindustries in India’- 30th June 2009, ITCWindsor, Bangalore.4. National Seminar on ‘Packaged waterindustries in India’- 30th June 2009, ITCWindsor, Bangalore.5. Azaz Motiwala- Bottled water set tobecome billion-dollar industry, EconomicTimes-29th Sep 2009.-161-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 162-166ISSN 0974 - 200XThe Outsourcing in India : An intellectualprosperty perspectiveKeywords: outsource, benefits, growth, advantageIntroductionOutsourcing can be generally defined as ameans of “marrying efficiency with innovation,which requires managers to consider thefollowing; time-cycle and cost reduction,levering scale and scope, reduction ofresource, partners as role model for changeand reduction of risk”. It refers to an enterprisemaking an arm’s length alliance with one ormore entities or enterprises, to performcarefully selected operations and day- to-daybusiness processes that were previously donein house.The idea of outsourcing has beenpropagated by Adam Smith in his book ‘TheWealth of Nations’ which was published in theyear 1776. Over the years the meaning of theterm ‘outsourcing’ has undergone a seachange.What started off as the shifting ofmanufacturing goods to countries providingcheap labour during the industrial revolution,has taken on a new connotation in today’sscenario. In a world where informationtechnology has become the backbone ofbusiness worldwide, ‘outsourcing’ is theDr. Md. Moazzam NazriLecturer, Department of CommerceKarim City College, Jamshedpur, JharkhandDr. Deepa SharanLecturer, Department of CommerceCo-ordinator, MBAJamshedpur Women's College, Jamshedpur, JharkhandAbstractOutsourcing implies obtaining goods or services by contract from an outside source. Especiallywith the growth of information technology (IT) outsourcing has acquired an internationaldimension and it has intensified in recent times. The main services which are being outsourcedfrom India by developed countries are: voice- based business process (known as BPO or CallCenters), banking services, railway enquiry, record keeping, accountancy, music recording, booktranscription, clinical advice, and teaching etc companies developed countries find it moreprofitable to contract services in developing countries like India. The cost for these services indeveloping countries is much less than in the developed countries. India has become an importantdestination for global outsourcing because of low wage rates and availability of vast skilledmanpower. This is a big achievement by the Indian IT industry as it has proved its competitivestrength in the world.process through which one company handsover part of its work to another company,making it responsible for the design andimplementation of certain business processunder the requirements and specification ofthe outsourcing company. This outsourcingprocess is beneficial to both the outsourcingcompany and the outsourcing service provider.The IT industry in India has existed sincethe early 1980s, it was and amid 1990s, thatsaw the emergence of outsourcing. One of thefirst outsourced services was Medicaltranscription, but outsourcing of businessprocess like Data processing, Medical billingand customer-support began towards the endof the 1990s when MNCs established whollyowned subsidiaries which catered to the offshoring requirements of their partnerCompanies. Some of the earliest players in theIndian outsourcing market were AmericanExpress, GE Capital and British Airways.Outsourcing is divided into two parts:• Technology Services, which includesinformation technologies(applicationhosting, telecommunication(voice and-162-

data) logistics, etc); electronics(semiconductor chips; high value microprocessor); electronics, commerce, etc;and• Business processing outsourcing (BPO),which deals with differentiated activitiessuch as finance and accounting,procurement and supply, customercontact(customer relations management),human resources, security, etc.Materials and MethodsThe study is based on secondary data.The information has been collected fromjournals and newspapers and from websites.The collected data analyzed by using simplestatistical tools like percentage and table etc.Results and DiscussionsToday, outsourcing has almost becomethe order of the day. India has been a pioneer inproviding outsourcing solutions and has beenproviding a range of outsourcing services tocountries across the globe. Today, India can becalled as the world’s outsourcing hub.Outsourcing to India can help the organizationbenefit from cost-effective services, highqualityservices, reduced operating costs,greater flexibility and faster-time-to-marketamongst others. These are just a few reasonswhy companies outsource to India. Anotherreason why outsourcing to India makes goodbusiness sense is because India has high-endtechnology and best-of-breed infrastructure.India has now become the world’s mostpreferred outsourcing location. India is also theglobal hub for software enabled services andsoftware development.The following are a list of reasons whycompanies outsourced to India.1. Cost-effective servicesThe numerous reasons why globalorganizations outsource to India are becauseIndia offers cost-effective services. Outsourcingto India can help in save more than half ofoperating costs. India has a large educated,trained and technically skilled manpower andthis number only keeps growing every year.Unlike the west, where technical talent is rare,India has a large pool of high-skilledprofessionals. Having a large technicallyskilled manpower has enabled India to providecost-effective services without compromisingon quality. Outsourcing to India, can help insave operating costs, while increasingproductivity, quality and efficiency.2. High-quality servicesIndia uses the latest in software,technology and infrastructure to provide globalcustomers with high-quality outsourcingsolutions. India has proved that it is technicallysuperior when compared to other countriesthat provide outsourcing solutions. Sooutsource to India can be assured that the besttechnology and software would be used forservices. India has the largest Englishspeakingaudience after the U.S. India alsohas a highly educated manpower that istalented, educated, experienced, technicallyskilledand computer literate. Outsource toIndia and be assured of high -quality services.3. Time Zone AdvantageThe time zone advantages between Indiaand countries in the U.S and U.K has proved tobe another important factor why companiesoutsource to India. Organizations who wish toprovide their customer with 24x7x365 dayscustomer support or helpdesk services can outsource to India.4. India’s stable governmentIndia has celebrated more than 60 yearsof democracy and has one of the world’s moststable governments. Building up the IT sectorhas been a top priority for the Indiangovernment. India has a ministry ofinformations technology that quickly approvesthe implementation of IT projects andstreamlines regulatory processes. The Indiangovernment has even released a bill termed asthe “IT act 2000”. India has been rated to havethe most excellent investments potentials inthe coming years. The Indian government hasgiven complete support to the IT and ITESindustry in India. With ample support from thegovernment, Indians have been able to buildhigh-tech IT parks which has the best intechnology and infrastructure. The Indiangovernment has even permitted 100% foreignequity.5. The Indian AdvantageCost-effective services are one of theprimary advantages that India offers, but it is-163-Anusandhanika / Vol. III / No. I / January 2011

not the only advantage of outsourcing to India.Outsourcing to India can be helpful toprofessional and skilled solutions within a fastturnaround time. By outsourcing to India, anorganization can concentrate on core businessactivities and save on time, effort, manpowerand infrastructure. More than 20 Indiansoftware companies have achieved theprestigious SEIS-CMM level. India also hasthe highest number of ISO-9000 softwareorganizations.6. Global organizations’ most preferredchoiceIndia has been the most preferred choiceamong global organizations when it comes tooutsourcing. In the U.S alone, more than 80%have ranked India as their first choice, whenoutsourcing software and IT services. The U.Shas also recognized India as an outsourcingsuperpower. The number of organizationsoutsourcing services has been increasing overthe years.Benefits of Outsourcing Jobs to IndiaToday, communication can be madebetween two countries without any difficulty.The development in communication andtechnology has broken down the barriers.There are no longer any barriers betweencountries and this has made job outsourcing toIndia possible.1. Faster and Better CommunicationJob outsourcing has only becomepossible because of the improvements incommunications. Since communication hasbecome so fast, easy and simple, distance isno longer a barrier between two organizations,no matter where in the world the organizationsare located. Advancements in calling, e-mailing and chatting have made communicationthroughout the course of a project easy. Today,even video conferencing is possible andpeople can see each other, although they aremiles apart. Companies no longer hesitate toopt for job outsourcing to India because of suchadvancements in communications. Organizationsin India can send the completed work toorganizations in the U.S for reviewing manytimes and work can go back and forth withease. This is yet another reason why joboutsourcing to India has become an idealchoice for out sourcers.-164-2. The Advent of GlobalizationGlobalization brought along with it severalfactors such as, lower costs of communication,transportation and production. Globalizationhas also broken down barriers such as tradebarriers, cultural barriers, language barriersetc. with the coming of globalization, therelationship between countries has improvedand the world has become a much smallerplace with no boundaries and no distinctionbetween countries. With the advantages thatglobalization has brought in, job outsourcinghas been on the rise.3. Time Zone AdvantageEarlier the distance between countrieswas a barrier, but today this distance hasbecome an advantage! India for example has adifferent time zone when compared to U.S andEurope. This has also increased the volume ofjob outsourcing to India. For India, this is amajor advantage as jobs sent during theevening in the U.S can be completed in Indiaduring the day and sent back to the U.S. thishas increased delivery time and organizationsin the U.S are happy about this. The time zoneadvantage between India and US hasincreased job outsourcing to India.4. The “NEW” IndiaWith this excess of job outsourcing toIndia, India has emerged as a new nationregarding the following factors which earliercrippled India’s growth in business. Withdemocracy, support from the government,more freedom for business, fewer restrictionsand regulations, lesser interest rates and fewerrestrictions concerning outsourcing, India hasbecome a more ideal place for job outsourcing.5. Human ResourcesBefore outsourcing, India’s large populationwas a major disadvantage to the country’sgrowth. But with the coming of outsourcing, ithas proved to be a boon to India. The people inIndia are satisfied to work for lesser salariesand what people earn from the outsourcingindustry is much higher than what they will earnelsewhere. The large number of humanresources has enabled India cater to evenlarge volumes of job outsourcing. India canthus meet any need that job outsourcing offerswith its readily available human resources.India’s human resources are skilled,professional, highly-educated and talented.Anusandhanika / Vol. III / No. I / January 2011

This advantage of India has attracted a lot ofjob outsourcing in the recent years.6. The “English” AdvantageIndia has the highest number of Englishspeakers among other developing countries.In India, English is taught in schools andIndians start conversation in English right fromschool. This has proved to be an advantage toIndia, because with the coming of outsourcing,and the internet as the medium, Indians couldreadily cater to the outsourcing industrybecause of their fluency in English. In mostEnglish-medium schools in India, studentsstudy other foreign languages such as French,German, and Spanish etc. This is anadvantage over the English language.Growth of Outsourcing in IndiaThe ITES or BPO industry sector in Indiahas been in existence for a little more than tenyears. Despite its recent arrival on the Indianscene, the industry has growth phenomenallyand has now become a very important part ofthe export oriented IT software and seriesenvironment. It initially began as an activityconfined to multinational companies, but todayit has developed into a broad based company’splatform backed by leading Indian IT softwareand services organizations and other thirdparty service providers. The ITES/BPO marketexpanded its base with the entry of Indian ITcompanies. The ITES market of the presentday is characterized by the existence of theseIT giants who are able to leverage their broadskill-sets and global clientele to a widespectrum of services. The spectrum ofservices offered by Indian companies hasevolved substantially from its humblebeginnings. Today, Indian companies areoffering a variety of outsourced servicesranging from customer care, medicaltranscription, medical billing services anddatabase marketing, to Web sales/marketing,accounting, tax processing, transactiondocument management, telesales/ telemarketing,HR hiring and biotech research.Looking at the success of India’s ITindustry, the central government identified theITES sector as a key contributor to theeconomic growth that prioritized the attractionof FDI in this segment by establishing‘Software Technology Parks’ and ‘ExportEnterprises Zones’. Benefits like tax-holidaysgenerally enjoyed by the software industry-165-were also made available to the ITES/BPOsector. The National Telecom Policy (NTP) wasintroduced in the year 1999 and thederegulation of the telecom industry openedup national, long distance and internationalconnectivity competition. The governments ofvarious states also provided assistance tocompanies to overcome the recruitment,retention, and training challenges, in order toattract investments to their region.India offers multiple advantages1. India is talent-rich country.2. India exports software to 95 countriesaround the globe and has expertise inglobal methodologies.3. India enjoys the confidence of globalcorporations. 82% of the U.S companiesranked India as their first choice forsoftware outsourcing. Bill Gates says thatIndia is an IT superpower. His Microsofthas struck strategic alliances with WIPROand Infosys to develop applications on the.Net platform. Jack Welch has opened a$130 million technology Centre inBangalore. GE’s largest R&D centeroutside the U.S has celebrated 10 years ofGE Medical Systems in India.4. India has state-of-the-art technologies fortotal solutions. An offshore assignmenthas moved up the value chain – from dataentry to large and complex turnkeyprojects.5. The IT act passed in 2000 brings E-commerce within the preview of law andprovides for stringent punishment to“cyber criminals”. With this, India hasjoined a select band of 12 notations thathave cyber laws.6. Software Technology Parks of India offerworld-class infrastructure and variousincentives and concessions to encourageforeign investment and promote softwaredevelopment in India e.g. 100% foreignequity is permitted and approved underthe Automatic Route with tax holiday until2010.ConclusionThus outsourcing in India is the key factorfor economic growth advancement in highAnusandhanika / Vol. III / No. I / January 2011

technology sector. They are good for business,benefit the public at large and act as catalystsfor technical progress. Outsourcing to Indiaoffers significant improvements in quality andproductivity. The outsourcing trend hasbrought with it a vast number of opportunitiesto India. India has become the world’soutsourcing hub and has become the mostideal place for offshore outsourcing. This trendof sending jobs to India has been termed as‘job outsourcing”. Job outsourcing has broughtplenty of jobs from U.S and other Europeancountries. With this excessive job outsourcingto India to reduce cost there has been a loss ofjobs in the U.S. The existing ITES/BPOoperations of major multinationals are alsobeing ramped out to cater to the everincreasing demand for better and speedierservices. Almost all of the India’s topITES/BPO giants have announced some formof expansion and are in the process of hiringmanpower to fill in the additional seats. India’scompetitive advantage lies in its ability toprovide huge cost saving thereby enablingproductivity gains and this has given India anedge in the global ITES/BPO market place.References1. Abramov sky, Laura, Griffith, Rachel,Sako, Mari (November 2004), Off shoringof Business services and its impact on theU.K economy, Advanced Institute ofManagement Research (AIM). www.aimresearch.org2. Economic Policy Institute (2003), Offshoring Issue Guide, http://www.epinet.org3. Economist Intelligence Unit., Scatteringthe Seeds of Invention: The globalizationof R&D, www.eiu.com4. Foreign Trade Policy, ministry of trade andcommerce, GOI (2004-2009)5. Internet Centre for Management andBusiness Administration, Outsourcing ValueChain Activities. http:// www.netmba.com6. Kirkpatrick, David (sepetember30, 2004),An Outsourcing Provider Sets His Sightson Global Giants, Fortune Magazine7. Ministry of Finance, Govt. of India,Economic Survey of India, 20078. National Association of Software andService Companies (NASSCOM). SMEsoffer unparallel focus and nichespecialization, http://www.nasscom.org9. National Outsourcing Association,www.noa.co.uk/index.php10. The Outsourcing Centre, http://www.outsourcing-centre.com/11. Prahlad, C.K and Ramaswamy,Venkatram (November 2001), TheCollaboration Continuum, The OptimizeMagazine, www.optimizemag.com12. Small and Medium-sized EnterprisesDivision of the World Intellectual PropertyOrganization (WIPO), http://www.wipo.int/sme13. The Economics Times of Kolkata(different issues of September-October2008)-166-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 167-170ISSN 0974 - 200XA study of Wage Administration and job evaluativeprocedure in Mecon, RanchiKeyword - out put, Job evaluation, human resource, work experienceIntroductionThe primary monetary compensation inbasic pay is in the form of wages. In popularusage a distinction is drawn between these twowords. The word 'wage' is used to denotepayments to hourly - rated production workers.Economists have developed a number oftheories which try to explain how wages andsalaries of the enterprise are determined. TheSubsistence theory of wages states that thereal wages of unskilled workers always remainat or very little above the subsistence level. Ifreal wages rise more than enough to provide abare subsistence, the population wouldexpand at a greater rate than the increase offood and other of workers seeking jobs and thepressure of the big supply of labor would forcewages down can only be temporary. Thistheory has considerable validity in the heavilypopulated countries with high birth rates in Asiaand Africa. The wages of the great majority ofworkers in these countries are still on thesubsistence level and may continue to be sountil development programmes there causethe rate of productivity growth of thesecountries to become considerably greater thanthe rate of population growth.In sum, we can say that the wage theoriesfor the most part do not have much real bearingon the problem of attracting and maintainingadequate labor force. They are more academicDr. Indramani DasHead, Department of commerceK.T. College, RanchiAbstractGood compensation plans, well administered, have a salutary effect on the entire enterprise. Employees arehappier in their work, co- operation and loyalty are higher, productive output is up and quality is better. In theabsence of such plans compensations are determined subjectively on the basis of haphazard and arbitrarydangerous sources of friction and low morale in an enterprise. Today, most employers are Interested inpaying a just and fair wage to the employee. This can be achieved by establishing a sound primarycompensation structure with Internal and external alignments or job evaluation procedure.-167-than real. Today, most employers areInterested in paying a just and fair wage affectto the finances on the employee. This can beachieved by establishing a sound primarycompensation structure with Internal andexternal alignments or job evaluation procedure.Internal alignment or job evaluationprocedure means that there should be a properrelationship between the wages and salaries ofvarious positions within the enterprise. Jobevaluation procedure is concerned with theconcept of equity. If for example, the salary of aforeman, though above the average rate in thecommunity, is lower than that of hissubordinates, the foreman is not being paidfairly. The internal alignment or Job evaluationof rates is not correct. There is inequity in rates.In other words, the relative wages of anemployee are almost as important for him ashis absolute wages, unfair differentiation in paylower his morals and often result in highturnover. Management answers to the problemof pay inequities through job evaluation. Thecontrol purpose of job evaluation is todetermine the relative worth of the job of aenterprise.Materials and MethodsThis study is mainly based on themanuals, books, Jounals, available in Meconlibrary and reports from other journals. Thematerials used have at times been drawn from

the web site and extreme care has been takento be objective in approach. Also for thepurpose of adoption of wage Administrationboth primary and secondary data has beenapplied.Results and DiscussionsThe wage policy should be conducive toa) a high rate of economic growth and theinternal savings necessary for thepurposeb) the maintenance of price stability andc) the narrowing of unjustified wagedifferentials.If these objectives are achieved,enlargement of employment opportunities willbe facilitated by the steady economic growth.The real purpose of wage policy is toprotect workers against exploitation or undulylow wages, improve worker's efficiency andperformance, encourage acquisition of newerskills, provide an incentive to labor mobility andacceleration of the nation's developmentprocess. As an instrument of economic policy itwas considered as a means of promoting:1. investment2. internal price stability3. worker efficiency4. a more effective distribution of the laborforce5. the international competitiveness ofeconomy and6. an influx of foreign capital.As an instrument of social policy, it waswidely known or acclaimed;i. as an alternative to social securitysystemii. as a means of achieving industrialpeace andiii. as vehicle for securing social justice.The International Labor Organizationpublication has enumerated the followingobjective of a wage administration policy indeveloping countries including India: (1) to-168-abolish malpractices and abuses in wagepayment; (2) to set minimum wage for workerswhose bargaining position is weak becausethey are unorganized accompanied byseparate measures to promote the growth oftrade unions and collective bargaining; (3) toobtain for workers a just share in the fruits ofeconomic development, supplemented byappropriate measures to keep workersexpenditure on consumption of goods in stepwith available supplies so as to minimiseinflationary pressure; and (4) to bring about anefficient allocation and utilization of manpowerthrough wage differentials and more appropriatesystems of payments by results.The formulation of a proper wage policyconsistent with the requirements of adeveloping economy is beset with numerousdifficulties. There are innumerable obstacles inthe way of evolving such a policy and these arefurther compounded by population pressure,growing inequalities of income, historical past,dualism in the economy, increasing unemploymentand low rate of growth.No policy can work by itself, more so awage policy imposing restraints and controls.Moreover, an effective wage policy cannot beworked without continued research on variousimportant matters such as, productivity,incentive systems, job evaluation, wagedifferentials, etc. It was rather a pathetic sightto see different wage boards deciding to carryout job evaluation projects, time and motionstudies, etc. and to evolve rational wagestructures and yet finding themselves thwartedin doing so for want of funds and technicalassistance. These important technical matterscannot be handled by the Labor Ministry orDepartment sitting at the helm of affairs. So aseparate National Wage Policy Commissionand corresponding State Wage PolicyCommissions should be set up to elaborateand implement the settled wage policy. TheseCommissions should evolve rules, procedures,norms, standards etc. and arrange for thecarrying out of necessary studies andinvestigations bearing on these matters, butotherwise . should not be burdened with theactual fixation of wages and evolution of wageAnusandhanika / Vol. III / No. I / January 2011

structures. For the latter purpose otheragencies such as, tribunals, and wage boards,etc. would have to be constituted as in the past.The Wage Policy Commissions should bepermanent and continuing bodies and notadhoc ones. The Chairman and Members ofthese Commissions should be whole timeemployees responsible for the implementationof policy under the ultimate control of theCentral and State Labor Ministers, but theyshould mostly function independently withintheir area of responsibility without having tosubmit every proposal and project for theMinistry's approval. Hence men of status whoare acknowledged authorities in their fields ofspecialization should man them. Special anddetailed legislation will be needed to ensureauthority and support for both the wage policyand the processes and authorities concernedwith implementation.Wage Administration Policy in the Indiancontext is influenced by a number ; of forces,economic and social. Without controlling nonwageincomes and unaccountable incomes,which have a suffocating impact on theeconomy, evolution of a wage policy would bedifficult. It necessarily involves a delicatebalance between numerous conflicting goalsand interests. The Government has to exercisereasonable control over different forces andtake into account not only the interests of thelabor, but those of the consumers and theentire economy. Generation of employmentand need-based minimum wage are the twoimportant considerations that should form thebasis of such a policy. Various aspects of wagedetermination at both the enterprise andnational level will have to be constantlyreconsidered in the light of changing socioeconomicenvironment and technologicalimprovements. Every organization must frameits own wage policy keeping in mind theinterests of the management, the employees,the consumers and the community in general.In order to make the wage policy moreeffective, it should be carefully formulated,must be communicated not only to themanagerial staff but also to the workers andtheir trade unions. It should be examined,evaluated and reviewed periodically to meetthe changing needs of the organization.Increasing emphasis has to be given forrationalization of the wage structure keeping inview the goal of higher productivity in the yearsto come. Further a wage policy must be gearedto achieving the best prices, the best wagesand the best profits. Of course, the best pricesare not the highest prices, but the prices thatstimulate the largest volume of production andlead to the largest volume of sales. The bestwages are not the highest wages, but thewages that lead to full employment and thelargest possible pay rolls. The best profits arenot the lowest profits, but the profits thatencourage most persons to becomeemployers and to prove jobs. Prices, wagesand profits must be thought of together. Onlywhen we have achieved the best balanceamong them can the economy function at itsfullest.If we try to force one of these elements outof relationship to the others, we must reduceproduction and hurt everybody and sometimesmost of all the very groups we are most eagerto help.ConclusionIt is to conclude that a well-consideredwage policy is indispensable to a developingcountry for various reasons, particularly thoseconnected with national development andstability of the economy. The country candevelop a scientific informative base on wageand productivity situation. Linkages of wageand productivity are important tools forimproving productivity at enterprise levels. Thefollowing are the factors for linking wages withproductivity. Linking wages with productivitycan increase the rate of margin for theemployer and at the same time can fill- up thepoor boxes of wages of the workers. Anothercomprehensive gain for linking wages withproductivity can develop and establish thelegal base for bargaining how to increase wagelevel and productivity for the common interestof workers and employers. Linking wage withproductivity can easily reduce the unfavorabledisparity of wage. Linking wage withproductivity can minimize the conflict between-169-Anusandhanika / Vol. III / No. I / January 2011

employers and th e workers As a result theycannot blame each other without informativeculture of wage and productivity situation.Certainly, the productivity linked wage systemmust be developed for practicing productivitylinked wage system in the industrialenterprises of India like MECON, which willhopefully improve the habit and culture ofproductivity promotion in industries and firmsof the country.References1. Alford L.P. & Beatty H.R, principles ofIndustrial Management, Revised, Ronaldpress, New York, 19812. American Management and MarketingSociety, Techniques of MarketingResearch, McGraw Hill, New York, 19873. Corson D.W., Business in the HumanSociety, Tata McGraw Hill, New Delhi,19714. Ernest Pale : Planning and Development,the Company Organization Structure,American Management Association, NewYork,19525. Harold Koontz & Cyril 0' Donnall,Principles of Management, SecondEdition, Tata McGraw Hill, New Delhi,19576. Herbert G. Hicks : A Systems and HumanResources Approach, Second Edition,Tata McGraw Hill, New Delhi, 19727. Srinivasan G.: Executive Development inIndia, Journal of Management, Vol.6, No.2, Ronald Press, New Delhi8. Walter D. Scott., Personnel Management,McGraw Hill Book Company. New Delhi,19879. www.meconlimited.co.in-170-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 171-172ISSN 0974 - 200XScenario of Industrialization in JharkhandDr. Tarun ChakrabortyLecturer in Commerce, K.C.B. College BeroRanchi University, RanchiAbstractThe state of Jharkhand is widely acclaimed as the region of the future, having immense potential forindustrialization with its large deposits of minerals, which could provide a firm launching pad for variousindustries. It is one of the richest zones of minerals in the world. The State is the sole producer of coking coal,uranium and pyrite. It ranks first in the production of coal, mica and copper in India. The geological explorationand exploitation of gold, silver, base metals, decorative stones, precious stones, etc. are the potential areasof future. Government intends to set up an SEZ along Jamshedpur - Ranchi National Highway, Ranchi,capital of Jharkhand, was once the summer capital of Bihar. Situated at a height of 2100 ft above the sea levelRanchi was one of the most important cities in Bihar.Keywords: Industrialization, Minerals, exploitationIntroductionIndustrialization has a major role to play inthe economic development of the developingcountries like ours. It is a process whichaccelerates economic growth, increaseincome, brings about structural changes in theeconomy, creates employment opportunities,gives impetus to foreign trade and inducessocial change. Finally, industrialization is acontinuing process of industrial development.Jharkhand is a state where Mother Nature haspoured life into every cranny and crevice.Where natural abundance forms a bedrock ofprogress on all fronts. People and theresources combine to drive the engine to thefuture growth. Geography was kind enough toJharkhand endowing it with enormous mineralresources around which high growth centerslike Ranchi, Jamshedpur, Bokaro, andDhanbad have flourished.Further, Jharkhand the newly born state ofour union has the potential for development ofboth agricultural as well as industries. Thestate is well known for vast potential of mineraland needless to emphasize here thatavailability of minerals has a unique distinctionof influencing the course of economicdevelopment of a developing country like ours.Iron and steel, aluminum, cement, coal,petroleum and fertilizer industries have a vitalrole in the economic progress as with highlinkage effects they create conditions for largescale industrialization and thus enable acountry to reach a high level of development.Materials and MethodsThe focus of the study is to examine theprospect of industrialization in Jharkhand whilepreparing this article, both secondary andprecious reading information have been takeninto consideration. Extreme care has beentaken to be objective and appropriate in thepresentation of data.Results and DiscussionsWhile developing industrial centers inJharkhand, its industrial developmentpotentials provided by the major industrieslocated in Ranchi, Jamshedpur, Sindri, Bokaroand the forest and minerals resources of thestate offering opportunities for the establishmentof a variety of new industries may well beclassified into:Ancillary industries - with a number ofcomponents going in to production of truck,Tata motors located at Jamshedpur, cansupport a wide variety of ancillary units whichcan produce automobile parts and components,such as engine group, fuel and injectionpumps, clutch group, carburetor, castingexhaust group, spark plugs and ignition coils,transmission system, starter motor andgenerators, electrical items, brake and brakebooster, propeller shafts and universal joints,front axles and rear axles, steering, windscreen wipers, etc. Tata-Robin-Fraser (TRF)which manufactures equipments for bulkhandling of goods can off-load some of its jobsto the smaller units.By-products industries - a steel plantlike Tata iron and steel limited, located at-171-

Jamshedpur and Bokaro steel Limited,Located at Bokaro provides scope for startinga number of by-products industries. Blastfurnace slag can be utilized for themanufacture of cement, fertilizers and slagwool. New industries can be set-up to furtherprocess the by-products available from thecoke-oven. Other big companies can also giverise to new units to produce finished goods outof the products of these major industrieslocated in our state.Consumer Industries - In view of thereasonable high consumption power of a largenumber of people in our state, a host ofconsumer industries can be started in thestate. The following are some of the lines ofmanufactures suggested: bakery, plastic,household goods, electrical and engineeringgoods, cycle tyre and tubes, rubber hose pipe,transistors, amplifiers, battery charging units,motor winding and repair of electricalappliances, tyre retreading, cycle and cycleparts, printing press, soap, aluminum ware,utensils and engineering parts, beveragebottling, panel door and furniture, ready-madegarments, pine and gem clips, pencil, safetymatch, coke briquetting, electrodes, switchesetc.Allied Industries - A large number ofindustries closely linked to the majorindustries, particularly in Jamshedpur can bestarted. Some of the lines suggested are:fabrication and structural soaps (heavy andlight), foundries (iron and steel), non-ferrousfoundry, light forging, cements pipe manufacture,transformer and electrical equipment, materialhandling equipment, mineral pulverizing,safety appliances, tools and dies, insulatingmaterials and tapes, repair of motors,generators and transformer, wire drawing,electroplating industrial fasteners, brazing andsoldering sticks, hydraulic fitting, lubricatingequipment oil and grease pumps, greaseguns, power metal component etc.Other Industries- As it has beenmentioned earlier also that this state issurrounded by forest hence, forest basedindustry, Lac industry etc. and a number ofagricultural based industries like soup, sauceand pickle industries.ConclusionThe Government is committed to facilitaterapid, accelerated and planned industrialgrowth of the region. It shall provide therequired infrastructure, simplified mechanisms,sensitive and proactive Governmentmachinery and a friendly atmosphere forindustrial growth in the State. It is determinedto bring the Industrial Development ofJharkhand at par with leading industriallydeveloped states of the country.References1. Jharkhand tourism, handout published bythe Government of Jharkhand, Ranchi.2009.2. Mishra, S.K. and Puri, V.K.; IndianEconomy (Himalaya Publishing House),Bombay, 1983.3. Sharma, A.N. and Gupta, S: Biharstagnationor growth (Spectrum PublishingHouse, Patna, 1987.)4. http://portal.jharkhandtourism.in/-172-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 173-176ISSN 0974 - 200XIntroductionFood Security In Jharkhand State- Status ofthe Social Security Schemes in JharkhandRahul KumarResearch ScholarP.G. Department of Commerce and Business ManagementRanchi University, RanchithJharkhand, the 28 state of the IndianUnion was brought into existence by the Biharreorganization Act on November 15, 2000 –the birth anniversary of the legendaryBhagwan Birsa Munda. Jharkhand is famousfor its rich mineral resources like Uranium,Mica, Bauxite, Graphite, Gold, Silver,Graphite, Magnetite, Dolomite, Fireclay,Quartz, Feldspar, Coal (32% of India), Iron,Copper (25% of India) etc. forests andwoodlands occupy more than 29% of the statewhich is amongst the highest in India. But thisis only one side of the picture. People in manyrural areas live in extreme poverty, hunger anddestitution. Judged from all acceptedindicators of development which includesLiteracy, Mortality rate, Infant Mortality rate,Unemployment and Nutritional status, level ofpoverty ,hunger etc. it is at the bottom of theladder in the country. Both micro and macrostudies and continuous reports of hungerdeaths from the marginal areas like Palamu,Santhal Pargana and Kolhan region confirmthe degraded status of state in terms ofavailability, access and consumption of fooditems by the rural mass of the state. Thereports of hunger deaths are clear indication ofthe fact that a considerable number ofpopulation is suffering from malnutrition,hunger and destitution.In recent times a number of food securityAbstractIn recent past, there has been considerable concern in India regarding the fact that on the one hand themassive stocks of food grain is piling and rotting in the godowns of FCI and on the other hunger, malnutritionand starvation deaths continue to stalk the length and breadth of the country particularly in the areas,inhabited by Adivasis and Dalits. The constitution of India guarantees Right to Life as the fundamental right.This right cannot be guaranteed without right to food and right to work. The government of India as well assome state government, show initiated a number of schemes pertaining to food and nutritional security,Employment generation and poverty alleviation.Keywords: Food Security, Public Distribution Scheme, Food Insecurity, Schemes.-173-and social security schemes have been launchedin the country the proper implementation ofwhich is very crucial for the state likeJharkhand. The improper implementation ornon-implementation is clear violation of thefundamental rights of the people in the area.Materials and MethodsThe paper is based on data obtained fromvarious departments of the Government ofJharkhand and a sample survey of 11 blocks(Chaterpur, Manatu, Lesliganj, Satberwa,Panki, Manika, Koderma, Musaboni, Rania,Angara, and Murhu) in 5 districts (Palamu,Latehar, Koderma, East Singhbhum, andRanchi) of the State. While the districts andblocks were purposely selected, the villageswere selected randomly from selected blocks.The data was collected through a wellstructuredschedule. There were two sets ofschedules - village and household schedules.The data was collected by trained investigatorsbelonging to 7 various NGO partners involvedin this study.Results and DiscussionsSustainable food security involvesstrengthening the livelihood security of allmembers within a household by ensuring bothphysical and economic access to balanceddiet including the needed micronutrients, safedrinking water, and environmental sanitation,basic health care and primary education. Thefood should originate from efficient and

environmentally benign production technologiesthat conserve and enhance the naturalresource base of crops, farm animal, andforestry, inland and marine fisheries.The following are some schemes run bythe Government of India to provide foodassistance to the poora. Target public distribution scheme (TPDS)& Public distribution system (PDS)b. Food for workc. Mid-day meal programmed. Integrated child development scheme(ICDS)e. Annapurnaf. AntyodayaStatus of the Social Security Schemesin JharkhandAs it is known, the food, nutrition andsocial security schemes can be divided intofour parts namely schemes which guaranteeemployment and wage payment both in cashand kind, scheme which gives grains atconcessional rate or free of cost like TPDS,Antodaya and Annapurna, National SocialAssistance Programme that includes NOAPS,NMBS, NFBS and nutritional security schemeswhich include ICDS and mid-day mealprogramme. The present section discussesthe allotment and utilization of funds by thegovernment of Jharkhand. There is alsogrowing realization that these programmescan only be effectively implemented throughthe PRIs having effective control of GramSabha.Target public distribution scheme (TPDS)& Public distribution system (PDS)Under the targeted public distributionsystem each poor family is entitled to 10 kg. offood grains per month (25 kg. from July 2001)at specially subsidized price. The identificationof the poor is done by the state government asper the poverty estimates of planningcommission. A total of 22.21 lakh householdswere identified in the state of Jharkhand on thebasis of population projections for 1996.During the year 2000 the central governmentrevised the projections on the basis of thepopulation as on the 1st April 2000 and thetarget for revised to 23.94 lakh householdsbelow poverty line.The public distribution system states that-174-a large proportion of what is lifted does notreach at the card holders. The PDScommodities arrive late or irregular if at all. Thevillagers are partly informed. The poor do nothave sufficient cash when food grains arrive.The dealer was found to stock only what he cansell for one or two days.Food for workNational Rural Employment GuaranteeAct came into force on 2 February 2006. UnderNREGA, every state government is bound tolaunch a Rural Employment GuaranteeScheme within six months of the Act cominginto force. NREGA has been initiated within theframework of the earlier National Food ForWork Programme (NFFWP) and SampoornaGrameen Rozgar Yojana (SGRY), based onthe Operational Guidelines issued by theMinistry of Rural Development in January 2006as well as further State guidelines. Thebeneficiary of National Food For Work get foodgrains as daily wages. Employment guaranteehas also been a lively issue for people’sorganizations and social movements such asMazdoor Kisan Shakti Sangathan, AkalSangharsh Samiti and Rozgar Evum Suchnaka Adhikar Abhiyan. In Jharkhand, by contrast,NREGA still has low priority on the politicalagenda. For instance, very little progress hasbeen made towards framing a RuralEmployment Guarantee Scheme forJharkhand, as required under the Act.Opposition parties and people’s organizationshave also failed to take the government to taskfor its apathy in this regard.Mid-day meal programmeThe MDM programme was launched inerstwhile Bihar in 1995. It aimed at providinghot cooked meals of qduivalent calorie value of100 gms. Of wheat/rice per child per day or 3kgs. Per student per month food grains subjectto 80% attendance for 10 months. Theprogramme is running in all districts of thepresent Jharkhand state. The total number ofchildren covered under MDM programme is22,53,576 whereas the number of enrolledunhidden between age group 6 to 14 years is38,73,212.The ground realities show that ineffectivedelivery mechanism has resulted in low reachaccess, distribution of food grains is irregularand at times inadequate. Food grain isAnusandhanika / Vol. III / No. I / January 2011

consumed by the entire family or resold in themarket, so child is not the safe beneficiary.Teachers are not paid transportation charges.By mere distribution of food grain the principleobjective of nutrition support to child in dilated.It is very alarming because it has no substantialimpact on enrolment, attendance andretention. Inadequacy data of allotment, lifting& distribution and delays in reimbursement oftransportation cost are some features whichshow that MDM has failed to put impact.Integrated child development scheme(ICDS)An ICDS center (popularly known asAnganwari center) has to be available in everysettlement having a population of 1000. Theservice of this scheme includes supplementarynutrition, immunization, health check-up,referral services and non-formal pre-schooleducation. Children up to the age of 6 years areintended beneficiaries of this programme. Thescheme also covers pregnant and lactatingmothers and adolescent girls.These centers are basically made for theclose monitoring of the need of calories andprotein per day of children up to age 6 years,adolescent girls, and pregnant & lactatingmothers. Jharkhand stands 16th at the HungerIndex *.AnnapurnaThe national old age pension scheme wasintroduced as a 100 per cent centrallysponsored scheme on 25th August 1995.Under this scheme old people get monthlypension ranging Rs. 100 to 250 per month.However, in Jharkhand the benefits weredistributed once in two months and in someothers there was no fixed frequency fordistribution. After revision of programme, oldpeople get only 10 kg. of grain, either wheat orrice free of charge every month. This schemewas somehow did not take off for manyreasons. In Jharkhand 34,929 people getbenefit of the scheme. The irregulardistribution of grains makes the programmeworthless in Jharkhand.AntyodayaUnder the scheme the poorest get wheatat Rs. 2 per kg. and rice at Rs.3 per kg.Identification of the poorest has still not beendone as the criteria for selecting the poorest isnot objective. In Jharkhand 22,90,425 people-175-are officially covered under the scheme.Financial outlay in the year 2009 was 9450lakh. As the price is very attractive blackmarketing of the food grain is common inJharkhand.Some important findingsDistribution of the food grains had startedonly in 56% of sample villages.Beneficiaries of the programme makecomplaint about the quality of grains whichwas supplied to them.Most of the beneficiaries were not awareabout the government price.The poorest families in many districtshave not received cards yet.People have to return back because of theignorance and lack of information.Shopkeeper makes false entry in the card.People are not getting 35 kg .of grainsregularly.Food grains quality is very poor.Some of the beneficiaries havecomplained that dealers keep the cards intheir custody.Ration shop of Bishaypur, is 6 km far fromthe village the distance demotivatespeople to utilize the scheme.Some beneficiaries complained that thedealer provides only 32 kg. of food graininstead of 35 kg.Most of the Villagers do not know aboutthe scheme.There is not any fixed time of opening ofPDS shop so the beneficiary has to visitmany number of times to the ration shop.Beneficiary does not get information of thearrival of food grain.People do not get food grains everymonth.ConclusionPoor governance is at the root of many illsassociated with food administration, as well asother programmes for the poor. More transparencyand better accountability combined with moreeffective supervision may help in improvingperformance of these schemes.The schemes are hardly helping the poor.This is because Jharkhand government doesnot lift all its quota due to bad administrativearrangements, and a substantial portion ofAnusandhanika / Vol. III / No. I / January 2011

lifted grain is black marketed. So, to minimizethe malfunctions at upper level, it is essential toinvolve community for the monitoring of theongoing programmes at the grass-root level .Inevery panchayat, there should be decent andcompetent peoples institution that will lookafter the social security schemes and deliverysystem of the programmes.Since supreme court has empoweredGram Sabha and panchayti raj institutions tomonitor about the effectiveness and properfunctioning of all the social security schemes.References1. Agriculture and Food—AgriculturalProduction Indices: Food production percapita index, World Resources Institute.2. Robert Fogel, The Escape from Hungerand Premature Death: 1700-2100;Cambridge University Press, 2004.3. http://www.telegraphindia.com/1100411/jsp/frontpage/story_12327543.jsp4. http://www.mail-archive.com/jharkhand@yahoogroups.co.in/msg04184.html5. http://www.sccommissioners.org/pdfs/statereports/jharkhand/jharkhandhunger.pdf6. http://www.jharkhand.gov.in/Schemes.html7. http://www.indianexpress.com/news/jharkhand-mismanaged-job-schemecag-report/290363/8. * = Source: India State Hunger IndexReport 2008-176-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 177-179ISSN 0974 - 200XIntroductionImportance of Induction in Employee RetentionSubhash AdhikariResearch ScholarP.G. Department of Commerce and Business ManagementRanchi University, RanchiIt is process of bringing/ introducing/familiarizing a new recruit into the organization.This program familiarizes the new employeeabout the culture, accepted practices andperformance standards of the organization.It has been proved in one of the surveysconducted by the Centre for CreativeLeadership (headquartered in Greensboro,North Carolina, US), that a fresh hire does notmeet the expectations of an organization forthe first few months. The issue of productivityof new hires has to be defined individually byevery organization. Fresh hires are able tolearn the process as quickly as possible if theinduction efforts are right and they can be veryproductive if their induction has is been done ina proper manner.Materials and MethodsThe focus of the study is to examine therole of induction in modern context of humanresource retention. The study conducted indifferent parts of the world by the professional,Personal conversations with differentemployee of many employers are used asprimary data as well as secondary data. Theconcepts have been taken from relevant booksand articles, from journals and websites. Themethod used is analytical and descriptive.Results and Discussions"What will happen if we do not train newrecruits in the organization and they stay on".While keeping the above statement inmind, One has to think the importance ofinduction program.AbstractInduction is the first step towards gaining an employees' commitment, it is aimed at introducing the job andorganization to recruit him or her to the organization. It involves orientation and training of the employee in theorganizational culture, and showing how he or she is interconnected to (and interdependent on) everyoneelse in the organization.Keywords: Induction, Employee Retention, Organizational Culture, Organization, ProductivityInduction training is very essential for anycompany because it helps an individual/newrecruit to grow within a company and motivateshim/her. It inculcates in the employee moreconfidence to progress. It is during inductionthat a new recruit gets to know about theorganization's employment philosophy,physical work environment, employee's rights,employee's responsibilities, organization,culture and values along with key businessprocesses.A new entrant should culturally fit in anorganization. Interaction at this stage shapesan individual's disposition and outlook for workand motivation levels. The importance ofinduction cannot be underestimated.Involvement in Induction programs(should be’s)Induction program must/should include allthe aspects of the organization and present forthe awareness of the new employee. Likeemergency procedures, facilities, safetyissues, right's of the employee, what to bepaid, no harassment, equal opportunity,grievance procedures, employee responsibilities,times, conduct standards, job function, dressrequirements, organizational structure, what itdoes, how they fit in, who is their Manager, thefunctions of different departments, how theemployee will be managed, what theperformance management process willinvolve, and his/her role in that process, are thefew concerned areas during an Inductionprogram.Induction should be conducted on the firstday of the new recruit from the gate of the-177-

organization itself. For induction only highermanagement or Head of HR or Senior shouldbe addressing the new entrant. It should alsoinvolve the employees of the new entrantdepartment. An effective induction helps a newemployee feel assured and comfortable in thenew environment, which is critical for earlyuptake in the new role. Induction shouldalways be interactive. It also provides anopportunity to the new entrant to engrain theoriginal values and ethics as well as the style offunctioning. Escorting a new entrant will be oneof the best and most impactful induction steps.It should always be interesting and must holdthe attention of the new employee.Involvement in Induction programs (notbe's)First of all Induction program must not/should not include much of theoretical part.Bad induction leads to stress and demotivation.Arriving for a new job a badinduction can leave a new starter worried,anxious and unable to perform their duties.More work for longer as the new entrantstruggles to become an effective member. Itincreases the workload, all the wrongmessages given to the new starter and candamage long-term implications.Signs of bad Induction program are TooShort - during induction a new entrant shouldjust not give the mobile numbers or small briefas always remember either a person shouldhave or should not have knowledge, halfknowledge leads to disaster. Too Hasty - A tenminutes brisk walk and making himfamiliarizing about the exit or entry should notbe the part of induction. Too Boring - All thetheoretical and long presentation with highfigures involved is a bad sign of induction.Impersonal - Avoid hours of speeches andpresentations and voluminous policy manualsor information packages. Too personal - Itshould not be related to the complete life cycleof a new entrant. Neglectful - whosoever takesthe induction should have completeknowledge of the new entrant participation theinduction program, Isolated and embarrassing.Difference between effective and noneffective Induction Programs.Effective induction decreases thechances of attrition v/s bad inductionincrease the attrition.-178-It makes employees more energeticwhereas non effective inductiondemoralizes the new entrant.It makes positive impact v/s it possessesnegative impact.It reduces cost v/s it increase the cost.It increases team work ability v/s itreduces team work ability.To be more precise let us follow up theexample:-Two employees were recruited in 2004 at'X' company as a technical recruiter. Employee'A' was appointed in August whereasemployee 'B' was appointed in December 04.'A' went through bad induction program asmentioned above and employee 'B' wentthrough good induction program inculcating allthe necessities. 'A' was very confused aboutthe organization policies; environment, cultureetc whereas 'B' was clear about all aspects ofthe organization. After two years 'B' waspromoted at a senior level position whereas 'A'was still confused and was unable to givehis/her fullest to the company and was not at allcomfortable with the environment of theorganization. In, result after the promotion of'B' he resigned the company reason beingsenior in terms of joining from 'B'.With the above example it becomes veryclear about the kind of difference bad and goodinduction can make. As bad induction does notonly cost to employee but organization as well.Impact of Bad induction programBad Induction = AttritionBad induction program does not only leadto confusion, stress and de-motivation, but oneof the most disastrous effect is the attrition.Losing a new entrant staff and having toreplace those costs about 25% of theirsalary/wage. Providing too much, too soon; theinductee must not be overwhelmed by a massof information on the first day. Bad Inductionprogram generates unreasonable expectationsby being more interesting and more excitingthan the job itself.Good induction programGood Induction = RetentionInduction programs help in reducingattrition rates. The first impression is veryimportant when a person comes into a neworganization and how one interacts with theseAnusandhanika / Vol. III / No. I / January 2011

new entrants plays an important role in howthey discharge their duties later. It was foundthat employees who received an effectiveinduction were more engaged, compared tothose who rated the quality of induction asbelow average. The thought of leaving theorganization creeps in at early stage in caseswhere the induction is not done with passion. Agood induction prepares an employee better tocompete in fiercely competitive market place,which has a direct impact on the early successand hence motivation, he adds. It is true thatonly good induction does not keep the attritionaway but it plays a big role.In many organisations, HR is seen as justa support organization that comes to the frayonly when some "people" based action/projectneeds to be implemented. It becomes hard foran employee to know who the people they canget in touch with Hence it’s imperative that HRforms a part of the induction program not onlyas a presenter but as a convener.Having a good brochure designed, placingimportant information on the desktop wallpaper,and creating a ready to use flash presentationis self durable are to be considered as the newtrends of communication.In induction the employee should find it asinvolving as possible. They should be made tobelieve that they have made the right decisionby choosing the organization. They should feelthat they are aware of the culture and hencecan easily blend in.The best person to communicate inInduction, The HR Asst. Manager, HRManager, HR exec! However one has to makesure that if there is a group or even a singleperson induction, then the head honcho vizpresident, CEO, CLO, CFO should meet thenew employees.ConclusionThe induction process sets right the scenefor the remainder of the employmentexperience. This is a critical phase in theemployment process. Induction programsshould be implemented in a structured mannerand applied uniformly across the organization.Best practice involves a very structuredapproach to the induction process.References1. Human Resources Administration: ASchool Based Perspective, Author-Richard E. Smith2. http://www.thehindubusinessline.com/2009/02/06/stories/2009020650851700.html3. http://www.citehr.com/research.php?q=induction-programe-of-tata-steel4. http://www.citehr.com/218513-importance-hr-induction-new-employeeorientation.html#ixzz1AeVfwPKb5. "Onboarding - How to Get Your NewEmployees Up to Speed in Half the Time",George Bradt and Mary Vonnegut (JohnWiley & Sons, 2009) - ISBN 04704858176. Browning, Guy (15 July 2004) New kid onthe block People Management Magazine-179-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 180-184ISSN 0974 - 200XNational Rural Employment Guarantee Act -A tool of Rural DevelopmentSarika SinhaResearch ScholarUniversity Department of Commerce and Business ManagementRanchi University, RanchiKeyword - IRDP, TRYSEM, IAYIntroductionRural India is at the centre-stage of allgrowth in the future. However it continues tosuffer from lack of basic infrastructure. Caughtin the vicious poverty-cycle, rural India, inabsence of adequate infrastructure, rural Indiafinds it difficult to undertake activities that canaccelerate economic growth. Home to close to69 per cent of India’s total population, ruralIndia faces the daunting task of providingsustainable income and employment opportunitiesto a major section of the population, especiallythe lower-income households. In absence ofinfrastructure facilities, there is lack of marketaccessto rural population, slow growth inorganised retail and thus, limited livelihoodopportunities, stagnation in agriculture andaggravation of rural poverty-levels. Absence ofinfrastructure also makes rural marketsfragmented, characterised by high costs oftransactions and high information asymmetry.The retail sector offers unprecedentedopportunities for rural India, and the only thingthat can hold this sector back is the lack ofinfrastructure. Two-thirds of India’s consumerslive in rural areas and a little more than half thenational income is generated here. Therefore itis not surprising that that rural markets form anAbstractThis paper looks at the National Rural Employment Guarantee Programme (NREGP) in India that waslaunched in the year 2005 as a social security measure aimed at providing employment security to the poor invillages. The NREG was also meant to use this labour to construct rural infrastructure that is clearly wantingin India. The National Rural Employment Guarantee Act guarantees 100 days of work to all households. Thisanalysis looks at the direct and the indirect effects that the NREGP has on employment generation andpoverty reduction in a local. For this, a detailed survey in a specific village was undertaken to highlight theimpact of the NREGP. This survey covered a poor agricultural village with 400 households, nearly 2500people. The survey recorded income and expenditure levels by type of household (large, small and marginalfarmers, agricultural labour, services etc). The survey also recorded production activities undertaken by theinhabitants.-180-important part of the Indian market. In morethan 630000 villages, there are almost twice asmany 'lower middle income' households inrural areas as in the urban areas. At the highestincome level there are 2.3 million urbanhouseholds as against 1.6 million householdsin rural areas. Middle and high-incomehouseholds in rural India are expected to growfrom 80 million to 111 million by 2008. In urbanIndia, the same is expected to grow from 46million to 59 million2. The size of the ruralmarket therefore will soon be more than doublethe size of the urban market.In the modern world where technology istradable and factor markets (labour andcapital) have become integrated both locally(farm labour moves from Bihar to Punjab) andglobally (through foreign direct investment),infrastructure plays an enabling role in bringingworld markets to local areas. Since infrastructureenables growth, any growth strategy mustactively plan for producing the necessaryinfrastructure to support growth targets.Indeed, instead of trying to engineer growththrough interventions in the production ofgoods and services, governments are betteroff providing for the infrastructure that supportssuch growth.

Materials and MethodsThis study is mainly based on the use ofavailable literature in the form of books,journals, reports etc. The approach followed inthis papers is purely textual. The materialsused have at time been drawn from the websiteand extreme care has been taken to beobjective in approach.Results and DiscussionsIn the supplementary budget thegovernment of India has allotted 30,000 croresfor the implementation of NREGA. Governmenthas also made a plan to implement NREGA inurban slum areas. It has been long recognizedthat access to minimum level of infrastructurefacilities must be an integral part of the strategyfor improving the quality of the people and foreradicating poverty. Over the last decade,considerable progress has been made inimproving access to primary health carefacilities, improvement in standard of life,increment in per capital income, ruraldevelopment and increase in employment forthe livelihood of general rural citizen, primaryeducation, safe drinking water and shelter asreflected in an expansion of coverage and alsoimprovements in the indicators of humandevelopment.The primary responsibility for provision offunds for these sectors and for planning andimplementation of specific programmers lieswith the State/Union territory government.However, there has been recognition that theStates do not have adequate resource toprovide the basic minimum services to theirpopulation. In specific areas, CentrallySponsored Schemes (CSS) were introducedto complement the efforts and resources of theStates. In 1996, a conference of Chief Ministerwas held to review the situation with regard tothe availability of basic minimum services tothe people, the conference identified sevenbasic services for priority attention, namely,primary health care, universalization ofprimary education, safe drinking water, publichousing assistance to all shelter-less poorfamilies, nutrition, connectivity of all villagesand habitations by roads, streamlining of thepublic distribution system with a focus on thepoor. The Conference recommended thatcoverage of entire population should be donein a time-bound manner. In response to therecommendations of the Chief Ministersconference and in recognition of the fact thatStates are facing financial constraints, thegovernment of India decided to provide someadditional funds to supplement the rousourcesof the State. A separate budget head wasintroduced in 1996-97 with provision forAdditional Central Assistance (ACA) for basicminimum services. States had flexibility inallocations of their Additional CentralAssistance between the sectors as per sectorsas per their own needs and priorities.The strategy under basic MinimumServices was to mobilize resources and directefforts to achieve 100 per cent coverage of thepopulation with access to these basicminimum services in a time bound manner.The guidelines also ensured an adequate levelof investment for the Basic Minimum Servicessectors earmarked in the Annual plan of a sate.Any shortfall in the actual expenditure againstearmarked outlays, attracted proportionatecurtailment of Central assistance in thefollowing year.Since 1996-97 in each year, additionalcentral assistance has been provided for BasicMinimum Services in the Central Budget.While in 1996-97, the allocation was Rs 2,24Crores, in 1997-98, in was Rs. 3,100 Crores,which was, further increased to Rs. 3,400Crores in 1988-99 and to Rs. 3,700 Crores in1999-2000, while Rs. 3,700 Crores are in formof additional central assistance, theStates/Union territories spend approximatelyRs. 12,000 Crores from within their own plans.In addition, the basic minimum servicessectors are also served by several Centrallysponsored Schemes and it is estimated thatabout Rs. 8,000 Crores are annually allocatedfor these areas.While comprehensive monitoring formatsfor assessing both the financial and physicalprogress under Basis Minimum Services weremade and circulated to the State Government,the information received was far fromsatisfactory. While the utilization against-181-Anusandhanika / Vol. III / No. I / January 2011

allocations was forthcoming the problem waswith the reporting of the physical achievements.This could be attributable to the fact that therewas on one places where the monitoring of theBasic Minimum Services took place. Therewas considerable overlap between provisionsfrom the three sources and there waslikelihood of substitution of funds from onehead to the other. To illustrate in the case ofshelter, there is Centrally Sponsored calledIndira Awas Yojana (IAY) wherein free costhousing is given to the families living belowpoverty line. The Centre conteibutes 75 percent and the States are required to the creationof additional new houses. Therefore, thephysical achievement cannot be correctlyassessed and it would not correspond to thetotal financial provisions provided fewer thanthree separate heads.Alleviation of poverty has become themain object of India's Five Year plans since1970. The Sixth Five Year ploan declaredGaribi Hatao' as the main object of the plan.From the sixth Five year plan, a massiveexpenditure is being incurred for direct attackon rural poverty. The various programmesundertaken for elimination of rural povertyhave been of two categories: (a) Programmesto provide wage employment to the rural poor;and (b) programmes to provided incomegeneratingassets to the poor. Both theprogrammes are supplementary to each other.The poverty exists in rural area because of lackof adequate wage employment through out theyear and they also lack income generatingassets. But there has been a controversy in thecountry whether the government shouldassign more importance to the wageemployment programmes or to the incomegenerating programmes. This controversy hasarisen because income generating programmes,such as, Integrated Rural DevelopmentProject (IRDP), Training for rural youth & Selfemployment(TRYSEM) has not met with greatsuccess. The objective of those programmeshas been to lift the poor families above thepoverty line, but various report suggest thatvery low percentage of IRDP and TRYSEMbeneficiaries would succeed in crossing thepoverty line. However, the method ofmeasuring the success of the programme interms of number of beneficiaries crossing thepoverty line as used in various studies havebeen criticized by prof. K. Subba Rao.Suggests that whether a family would cross thepoverty line or not depend on his initial incomeand amount of financial assistance. If the poorbeneficiaries have moved to an upwardincome ladder, this itself indicates the successof the programmes. It is not necessary thatfamily should cross the poverty line with oncefor all help. Thus, The methodology ofmeasuring the success of the programme hasbeen a subject of controversy against thebackground of the small success of incomegenerating asset. Some economists havesuggested giving a great preference toemployment generating programmes.In order to achieve the objective ofsustainable human development at the villageleve, a new initiative in the form of The NationalRural Employment Guarantee Act, 2005(NREGA) has been introduced in the Annualplan. This would focus on the creation of socialand economic infrastructure in five criticalareas with objective of improving the quality oflife our people especially in rural areas.Schemes related to health, education, drinkingwater, housing and rural roads would beundertaken within this programme. AdditionalCentral Assistance would be provided to theState the Union territories for this purpose.This would replace the Additional CentralAssistance being provided for Basic MinimumServices, thus far.The national rural Employment GuaranteeAct, 2005 (NREGA) guarantees 100 days ofemployment in a financial year to anyhousehold whose adult members are willing todo unskilled manual work. The Act will comeinto force initially in 200 districts, and will beextended gradually to other areas notified bythe Central Government. It will cover the wholecountry within five years.The National Rural Guarantee Act is a"people's Act" in several senses. The Act wasprepared through a wide range of consultationwith people's organizations. Second, the Actaddresses itself chiefly to working people and-182-Anusandhanika / Vol. III / No. I / January 2011

their fundamental right to life with dignity. Third,the Act empowers ordinary people to play anactive role in the implementation of employmentguarantee schemes through gram Sabhas,social auditis, participatory planning and othermeans. More than anyother law, NREGA is anAct of the people, by the people and for thepeople. This Act is an important step towardsthe realization of the right to work. It is alsoexpected to enhance people's livelihoods on asustained basis, by developing the economicand social infrastructure in rural areas. Thechoice of works seeks to address the causes ofchronic poverty such as 'drought deforestationand soil erosion. Effectively implemented, theemployment generation under the Act has thepotential of transforming the geographyNREGA calls for the formulation of a ruralemployment guarantee Scheme (RREGS) byeach State Government within six months ofthe date of commencement of the Act. Thepurpose of the Scheme is to give effect to thelegal guarantee of work, by providing at least100 days of guaranteed employment to everyrural household whose adult membersvolunteer to do unskilled manual work subjectto the conditions of this Act. Each ruralEmployment guarantee Scheme is required tohave the minimum features specified inSchedule I and Schedule II of the Act.Section 4 of the Act also provides that untilsuch a Sechme is notified by the StateGovernment, the Annual of perspective plan ofthe Sampoorna Grameen Rozgar Yojana(SGRY) or the National Food for workprogramme (NFWP), whichever is in force inthat area, shall be deemed to be the action planfor the Scheme for the purposes of the Act.These Guidelines have been formulatedto facilitate the design and implementation ofRural Employment guarantee Schemes. Theyshould be interpreted as a broad operationalframework, around which further provisionsmay be built, taking into accout the state'seconomic, social and institutional context.The basic objective of the Act is toenhance livelihood security in rural areas byproviding at least 100 days of guaranteedwage employment in a financial year to everyhousehold whose adult members volunteer todo unskilled manual work. This workguarantee can also serve other objectives;generating productive assets, protecting theenvironment, empowering rural women,reducing rural-urban migration and fosteringequity, among others.The central government shall notify theareas in which the Act will come into force fromsuch date as may be appointed in thenotifications, and different dates may beappointed for different States or for differentareas in a state. Each state government(where the Act is notified) shall formulate anemployment guarantee Scheme. This isrequired under Section 4 of the Act.The Act defines the legally non-negotiableparameters within which the state governmenthave flexibility of drawing up the employmentguarantee scheme, and schedule 11 definesthe entitlements of workers employed underthe scheme. In addition, Annexure 1-l of theseguidelines suggests the essential points thatthe state scheme should cover. The Schemeso formulated will be called the State(Jharkhand) Rural Employment GuaranteeScheme (JREGS). In these guidelines, it isreferred to as the Rural EmploymentGuarantee (PREGS) or simply 'the Scheme'.The State Government will also make rulespertaining to those aspect of the Act thatdetermine the functions of the Stategovernment.ConclusionIn order to ensure guaranteed employmentto the households, intensive IEC activitieshave been undertaken to generate greaterawareness among rural households abouttheir legal rights under the Act. It has beenemphasized upon the States to employdedicated staff in the implementing agencies.Salary of such dedicated staff is met out of theadministrative expenditure admissible underthe Act. States have also been directed toensure that adequate number of works areavailable to meet the labour demand.Implementation of NREG Act is monitored onregular basis. National level Monitors (NLMs)and Area Officers visit various districts to-183-Anusandhanika / Vol. III / No. I / January 2011

oversee the progress of the Act. Professionalinstitutions such as IIMs , IITs , AgriculturalUniversities and other Social SciencesInstitute have been engaged to assess theimplementation of NREGA in the States.Payments of wages to unskilled workers isthrough the Banks and Post Offices has beenone of the important tools in the act to ensuretransparency. A comprehensive Web-basedMIS www.nrega.nic.in places all data in publicdomain and a Citizen information Board hasbeen introduced for display at all prominentplaces. A grievance redressal mechanism andNational toll-free telephone Helpline underNREGA have been set up to receive thecomplaints and queries relating to NREGA.States have also been requested to set upsimilar helplines. The act has beeninstrumental in coming to the help of the ruralmasses people and with further improvementsit is poised to play a vital role in times to come.NREGA has helped the rural people andhas changed their lives. Now for seekingemployment, they don’t have to migrate to thecities. They are able to earn their livelihood intheir own areas or villages. They are able tospend their time with their families andchildren. It is able to fulfill their aspirations anddreams. Due to this scheme, now the childrenof the poor people are able to attend the schooland these people are able to earn their dailybread without any problem. Thus, NREGA canplay a vital role in fighting against unemploymentand eradicating poverty. It can also help tochange the face of the rural areas.References1. Ahluwalia I.J., Productivity and Growth inIndian Manufacturing, Oxford UniversityPress, New Delhi, 19992. Ahluwalia Montek, Economic Performanceof States in Post Reforms Period,Economic, and Political Weekly, May,20003. Brahmananda PR and VR Panchamukhi(ed), The Development Process of theIndian Economy, Himalaya PublishingCompany, Delhi, 20064. Canning D. and Bennathan E., The SocialRate of Return on Infrastructure Investments,Policy Research Working Paper Series,World Bank, 20005. Das Keshab, Endowments and RuralInfrastructure: Issues Today, IndiaInfrastructure, Report: Issues in Regulationand Market Structure, Oxford UniversityPress, New Delhi, 20016. Government of India, Report of theFinance Commission, Ministry of Finance,Government of India, 20007. Srinivasan T.N., Eight Lectures on India’sEconomic Reforms, Oxford UniversityPress, New Delhi, 20008. Diamond P. and J. Mirrlees, Optimaltaxation and public production, I: Productionefficiency, and II: Tax Rules. AmericanEconomic Review, 20019. Diamond P. and J. Mirrlees, Privateconstant returns and public shadowprices, Review of Economic Studies, 197510. Drèze J. and N. Stern, The theory of costbenefitanalysis. In Handbook of publiceconomics, ed. A. Auerbach and M.Feldstein, Amsterdam: North-Holland,198711. Drèze J. and N. Stern, Policy reform,shadow prices and market prices. Journalof Public Economics, 199012. Feldstein M., Distributional equity and theoptimal structure of public prices.American Economic Review, 200413. Kakwani N., Income inequality andpoverty: Methods of estimating and policyapplications, Oxford University Press,New Delhi, 2006-184-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 185-190ISSN 0974 - 200XGoods and Services Tax andIts Relevance in Indian EconomyThe Indian Tax system was archaic withcomplex and cumbersome procedure, multiplicityof rates, numerous exemptions and largeareas of discretion, all of which had acompelling desire for evasion by the taxpayerand harassment by the tax authorities. it was,therefore, necessary to have a system whereinall these loopholes are suitably plugged inorder to reduce tariffs, harmonize state taxes ,widen tax net and , above all, increase thebudgetary support for developmentalpurposes.About 140 countries have adopted GST.Different models of GST exist, each having itsown peculiarities. In many countries, standardGST rate ranges between 15-20%.In India ,VAT was introduced at the Centrallevel on selective basis in terms of MODVATwith effect from March 1, 1986, and slowly itwas extended to all commodities in terms ofCENVAT in 2002-03. Service tax was alsoadded to CENVAT in 2004-05. Introduction ofVAT in the States started from April 1, 2005.Now all the states and Union Territories haveimplemented VAT.Introduction of the Value Added Tax (VAT)at the Central and the State level has beenconsidered to be a major step and an importantDr. B.N.SinghLecturer, Department of CommerceP.G. Center R.S.P.College, JhariaDr. Anuradha VermaLecturer, Department of CommerceG.S. College for Women, JamshedpurAbstractNow–a-days our country is following the unitary system for collection of Indirect Taxes levied on manufacture,sale and consumption of goods as well as services in order to create a suitable reform in Indirect tax from bothdomestic and foreign investment perspective – thereby reducing burdensome compliance, high cost oftransaction and nagging uncertainty in tax liability for a business. The budget speech of 2006-2007 includeda proposal for commencement of Goods and Service Tax (GST) and in the budget speech of 2009-10 it hasbeen said again that the introduction of GST would be accelerated with effect form April 01, 2010. (It is nowlikely to be introduced w.e.f. April 01, 2011). GST model is outlined with a dual GST consisting of a Central anda State GST. To relieve the pressure on States, an assistance of Rs. 1,000 crore will be provided to them forGST implementation.Government of India is studying tax reforms that include many other Central and Statelevel direct and indirect taxes, excise duties , service tax and luxury tax, and replace them with a single Goodsand Service Tax (GST). Customs duty will be levied out of GST and is likely to be replaced by VAT on imports.Keywords: Taxation , Production, TransactionIntroduction-185-break through in the sphere of indirect tax reformsin India.If the CENVAT and VAT are a majorimprovement over the pre-existing Centralexcise Duty at the national level and the salestax system at the State Level, respectively,then the Goods and Services Tax (GST) willindeed be a further significant improvementthenext logical step towards a comprehensiveindirect tax reforms in the country encompassingboth commodity and services tax under a fullfledgeddestination based VAT regime.The Central focus of the transition to GSTis to introduce an efficient, effective and taxpayer friendly system of taxation of goods andservices in the country, in line with internationalbest practices as well as the specialcharacteristics of the Indian economy. Keepingthis objective in view, an announcement wasmade by the Union Finance Minster in thecontext of Budget 2007-08 to the effect thatGST would be introduced w.e.f. 1st April 2011.Materials and MethodsThis study is mainly based on the use ofavailable literature in the form of books,journals, reports etc. The approach followed inthis paper is purely textual. The materials usedhave at times been drawn from the website andextreme care has been taken to be objective inapproach.

Results and DiscussionsConcept of GST- Goods and Services Tax(GST) is a tax on goods and services which islevied at the point of sales by the seller from thepurchaser. In other words GST is a broadbased and a single comprehensive tax leviedon goods and services consumed in aneconomy. GST is levied at every stage of theproduction –distribution claim with applicableset-offs in respect of the tax remitted atprevious stages. It is basically a tax on finalconsumption. To put at a single place, GSTmay be defined is leviable at each point of saleor provision of service, in which at the time ofsale of goods or providing the services theseller or input credit of tax which he has paidwhile purchasing the goods or procuring theservice.GST is applicable on goods as well as onprovision of services, where VAT is onlyapplicable on goods but not on services. GSTis a tax on only value addition at each stage. InGST , the seller of goods and services providercan claim the input credit of taxes which he hasalready paid at the time of purchasing of goodsand services. Thus the tax burden finallycomes on the shoulder of the consumers orlast users of goods and services. The followingexample makes clear the concept of GST orhow the GST works: let us suppose that GSTrate is 10% with the manufacturer makingvalue addition of Rs. 300 on his purchasesworth Rs. 1000 of input of goods and servicesused in the manufacturing process. Themanufacturer will pay net GST of Rs. 30 aftersetting-off Rs. 100 as GST paid on his inputs(i.e. Input Tax Credit) from gross GST ofRs.130. The manufacturer sells the goods tothe wholesaler. When the wholesaler sells thesame goods after making value addition of(say), Rs. 200, he pays net GST of only Rs. 20,after setting –off of Input Tax Credit of Rs. 130from the gross GST of Rs. 150 to themanufacturer. Similarly , when a retailer sellsthe same goods after a value addition of (say)Rs. 100, he pays net GST of only Rs. 10, aftersetting –off Rs. 150 from his gross GST of Rs.160 paid to the whole seller. Thus, themanufacturer, wholesaler and retailer have topay only Rs. 60 (Rs. 30+Rs. 20+ Rs. 10) asGST on the value addition along the entirevalue chain from the producer to the retailer,after setting-off GST paid at the earlier stages.The overall burden of GST on the goods is,thus, much less. This is shown in Table-1. Thesame illustration will hold in the case of finalservice provider as well.From the above it is clear that the wholesystem is developed in such a way thatcascading effect can be avoided and final taxburden is on final user of goods and services.The seller or service provider –collect taxesfrom their customers and deposit it to theexchequer after adjusting their input credit.This system is very similar to the existing VATsystem but only difference is that VAT isapplicable on only goods but GST is on goodsas also on service.In GST , the rate of taxes on most goodsand services are uniform but some goods andservices can be declared as excepted or zerorated goods and service. Export can beconsidered as zero rated and exporters returnall taxes paid by them which they paid at thetime of purchasing of raw materials or othermaterials or inputs to make export morecompetitive.Table-1Value of timeoftransferringthe goods andservices atnext stageStage ofSupply chainPurposevalueof inputsValueadditionGSTRateGST onoutput ofGoods &servicesInputTaxCreditNet GSTPayable =GST onoutput tax-GST oninput taxcreditManufacturer 1000 300 1300 10% 130 100 130-100= 30Wholesaler 1300 200 1500 10% 150 130 150-130= 20Retailers 1500 100 1600 10% 160 150 160-150= 10-186-Anusandhanika / Vol. III / No. I / January 2011

Why GST is preferred tax structurei) G.S.T. is a quite simple tax structurebecause under GST just one or two ratesare charged on all goods and services andit is a uniform single tax across the entiresupply chain.ii) GST increases tax revenue due to widerbase and better compliance. GSt allowsfull credit for all input taxes across supplychain and across States within a taxjurisdiction.iii) GST structure promotes exports accountof its zero rating and refund of tax paid oninputs used in export production andservices exports.iv) It ensures better compliance as aggregatetax rate reduces.v) It reduces distribution cost as there is notax barrier in GST for inter –Statemovement of goods, which encouragesstate –wise branches and deportsinvolving additional supply chain cost.vi) GST is unbiased tax as it is neutral tobusiness processes, business models,organization structure, product substitutesand geographic location.vii) It brings uniformity of tax rates across theStates.viii) It reduces the overall tax compliance costfor government and can concentrate onGST.GST Model in IndiaMany countries are following single GST.India is a federal country where both theCentre and the States have been assigned thepowers to levy and collect taxes throughappropriate legislation. Both the levels ofGovernment have distinct responsibilities toperform according to the division of powersprescribed in the Constitution for which theyneed to raise resources. Keeping in view thereport of the Joint Working Group on Goodsand Services Tax, the views received from theStates and Government of India, a dual GSTstructure with defined functions and responsibilitiesof the centre and the States is recommended.An appropriate mechanism that will be bindingon both the centre and the States would beworked out whereby the harmonious ratestructure along with the need for furthermodification could be upheld, if necessarywith a collectively agreed ConstitutionalAmendment.The proposed Dual GST model will havetwo components:1. CGST- Central goods and service tax forlevied by Central government.2. SGST-State goods and service tax leviedby state government.There would have multiple statute onCGST statute and SGST statute for everyState. The Central Board of Excise &Customers (CBEC) shall be responsible forimplementing the CGST and the State Taxadministrations will be separately responsiblefor implementing the SGST.Taxes to be subsumed under the GSTCENTRAL TAXES to be subsumed1. Central Excise Duty.2. Additional Excise Duties3. The Excise Duty levied under theMedicinal and Toiletries Preparation Act.4. Service Tax5. Additional Customer Duty (CVD)6. Special Additional Duty of Customs (SAD)7. Surcharges8. Cesses.Stage ofSupplyChainPurchaseValueValueAdditionThe Working of GSTSaleValueAssumedGST RateGST onOutputInputTaxCreditNet GSTRs. Rs. Rs. Rs. Rs. Rs.Manufacturer 100 50 150 10% 15 10 5Wholesaler 150 30 180 10% 18 15 3Retailer 180 20 20 10% 20 18 210-187-Anusandhanika / Vol. III / No. I / January 2011

STATE TAXES AND LEVIES to besubsumed1. VAT/Sales Tax2. Entertainment tax (unless it is levied bythe local body)3. Luxury Tax4. Taxes on lottery, betting gambling5. State cesses and surcharges relating tosupply of goods and services.6. Entry tax not it lieu of Octroi.Taxation of inter –State transactions ofGoods and ServicesCentre would levy IGST which would beCGST and SGST on all inter –statetransactions of taxable goods and services.The inter –state seller will pay IGST on valueaddition after adjusting available credit ofIGST, CGST, and SGST on his purchases. Theimporting dealer will claim credit of IGST whiledischarging his output liability in his own state.It can be seen from the above table thatManufacturer, Wholesaler and Retailer payRs. 10 (Rs. 5+3+2) as GST on the value chainfrom the producer to the retailer, after settingoff GST Paid at the earlier stage.The working of GST with respect tomanufacture, dealer and consumer can beseen in the illustrations given below:Input tax paid by the manufacturerDescription Amount Tax Paid@ 12%Raw Material Rs. 40 lakh Rs. 4.80 lakhPacking Rs. 10 lakh Rs. 1.20 lakhMaterialStores & Rs. 10 lakh Rs. 1.20 lakhSparesServices Rs. 10 lakh Rs. 1.20 lakhTotal input TaxRs. 8.40 lakhOutput tax charged by themanufacturerDescription Amount Tax Paid@ 12%Sale Rs. 120 lakh Rs. 14.40 lakhTotal output TaxRs. 14.40 lakhDescriptionTotal output TaxTotal input TaxNet GST PayableNet tax payable by themanufacturerAdvantages of GSTAmountRs. 14.40 lakhRs. 8.40 lakhRs. 6.00 lakhVAT has been accepted worldwide as abuoyant source of revenue to the Government.It has been considered as the broadening taxbase system and neutral to patterns ofproduction and consumption decisions due tominimum tax rates and minimum exemptions.GST may bring down rates of tax and still mayincrease the total revenue. SignificantAdvantages of a comprehensive GST Modelare:a) Reduces the effective rate of tax to one ortwo bas floor rates.b) Abolition of multiple rate structure relatingto sale, manufacturing of goods andprovision of services on all India basis.c) Reduces cost of compliance andincreases voluntary compliance.d) Removes the cascading effect of taxationand all distortions in the economy.e) Enhances manufacturing and distributionefficiency, reduces the cost of productionof goods and services.f) Increases the demand, production ofgoods and services.g) Makes all the goods & services morecompetitive in global competitive fieldleading to more export of goods &services.h) Shall promote more economic efficiencyand see stainable long term economicgrowth since GST is neutral to businessprocesses, business models, geographiclocations and product substitutes.i) Reduces litigation, harassment andcorruption.j) Bring –in ‘e’- Governance and electronicdata based environment replacing the-188-Anusandhanika / Vol. III / No. I / January 2011

age-old conventional system of taxmanagement and administration.k) Widening the tax base and tax networkand thereby enhancing the revenue of theCentre as well as State Governments.l) Reduces administrative cost of theGovernment.m) Moving towards internationally comparableand compatible tax structure and taxadministration.High tax rates do not generate morerevenue- rather discourage compliance andgives rise to economic distortions. The historyof our tax system is evident that the peak basisrate of customs duty has been reduced to 10%in 2007-08 from 300% in 1990-91 onmanufacturing non-agricultural products. Also,the basic excise duty has been reduced to 14%from 110% in the same period with an objectiveto encourage more voluntary compliance.Drawbacks of GSTi) First, it does not specify the list ofexempted goods and services. The lis ofexempted goods and services is yet to befinalized and it is quite likely that somediscretion may be allowed to individualStates.ii)iii)iv)Second , two rates are proposed for theSGST- one a low rate for essential items,and another – a standard rate for theremaining goods and services , it alsoadvocate a similar approach to CGST.This increases both administrativecomplexity and compliance costs,besides creation classification disputes.At the State Level, the proposal still leavesopen the possibility of levying entry tax inlieu of octoi as also octroi. Similarly, it doesnot include stamp duties and registrationfees. Furthermore, entertainment tax, iflevied by local bodies (Kerala) willcontinue. Thus, while the proposal goes along way in unifying multiple taxes, it stillleaves out some taxes.This is the opportune time to correct someof the design faults that exists in theprevailing. State VAT. One of the problemswith the present design is the distinctionmade between inputs and outputs andlevying the tax on the former at 4% and thelatter at 12.5% even as it is well known thatthe essential principle of VAT is providingcredit for input taxes.v) The concept of “declared goods” in theGoods of Special Importance Act, doesnot have a place and the only criterion forrate differentiation to be followed , if at all,is on the basis of income elasticity ofdemand.Justification of GST in Indian ContextDespite the success with VAT, there arestill certain shortcomings in the structure ofVAT both at the Central and the State levels.The deficiency in CENVAT of the Governmentof India lies in non-inclusion of several centraltaxes in the overall framework of CENVAT,such as, additional customs duty, surcharges,etc; and thus keeping the benefits ofcomprehensive input tax and service tax setoffout of reach for manufacturers/dealers.Moreover, no step has yet been taken tocapture the value-added chain in thedistribution trade below the manufacturinglevel in the existing scheme of CENVAT,resulting in a significant loss of opportunity ofrevenue gain for the centre. The introduction ofGST at the Central level will not only includecomprehensively more indirect Central taxesand integrate goods and service taxes for thepurpose of set-off relief, but may also lead torevenue again for the Centre through wideningof dealer base by capturing value addition inthe distributive trade.In the existing State-level VAT structure,there are, even now, several taxes which are inthe nature of indirect tax on goods such asluxury tax, entertainment tax, etc. and yet notsubsumed in the VAT for set-off relief.Moreover, in the present State-level VATscheme, CENVAT load on the goods remainsincluded in the value of goods to be taxedunder State VAT, and contributing to that extenta cascading effect on account of CENVATelement. This CENVAT load needs to beremoved. Further-more, any commodity, ingeneral, is produced on the basis physical-189-Anusandhanika / Vol. III / No. I / January 2011

inputs as well as services, and there should beintegrated of VAT on goods with tax on theservices at the State level as well. This is theessence of GST, which will be a furtherimprovement on goods-based VAT in theState. However for this GST to be introduced atthe State-level, it is essential that the Stateshould be given the power of levy of taxation ofall services. This power of levy of service taxeshas so long been only with the Centre. AConstitutional amendment will be necessaryfor giving this power also to the States. TheGST at the State-level is, therefore, justified for(a) comprehensive set-off relief (involvinggoods as well as services) for trade, industryand agriculture, (b) removal of cascadingeffect of CENVAT load, and (c)additionalpower of taxation of services of the States.The GST at the Central and State-level willthus give more relief to trade, industry andagriculture through a more comprehensiveand wider coverage of input tax and service taxset-off relief, further removal of cascadingeffects and more powers of taxation to theCentral and the States. If this GST is properlyformulated with appropriate calculation ofrates, then there may eventually be revenuegains for both the Central and the States. If thepotentiality of these revenue gains issignificant, there may also be a likelihood ofreduction of the overall incidence of taxes fromthe existing level, and yet retaining the revenuegains. This possibility of reduction of thisoverall incidence of taxes may mean a gain totrade, industry and consumers. In other words,there is a possibility of a collective gain for theCentre, the States, trade, industry, agriculture,and also the common consumers.Finance Minister Pranab Mukherjeeasked to introduce Goods and Services Tax(GST) ”as early as possible”, amidspeculations that the indirect tax reform maynot be implemented from the scheduled date ofApril 1, 2010. Some states, including MadhyaPradesh, Rajasthan, and Tamil Nadu, want theGST implementation to be delayed as thereare issues relating preparedness. In fact,Mukherjee had also said that it might not bepossible to introduce GST from April 1,2010.Finance Minister Pranab Mukherjee said in the-190-Union Budget 2010-11 that he hoped toimplement the GST from April 1,2011.ConclusionSuccessful implementation of GST inIndia is a challenging task for the government.This will need constitutional amendmentsgiving power to the states to levy tax onservices, fixation of GST rates for variousitems, issues like inter-State movement ofgoods and services, development of properinformation & technology system and otheradministration infrastructure required forsuccessful implementation of GST. Infect, withmultiplicity of tax regimes in India, it is thesecond-most complex country in the world.-after Brazil-as noted by Anthony Mc-Clenaghan, the global indirect tax leader.Therefore, for successful implementation ofGST, the country should take lessons fromother countries of the world. The comparativepicture depicted above would guide us to adopta system which is most befitting for our federalpolity and, at the same time fulfilling theregional fiscal aspirations in finally regionalgrowth of fiscal revenue.References1. Service Tax Weekly, Taxman Publication ,New Delhi.2. www.yahoo.com3. Journals of ICWAI4. Discussion paper of EmpoweredCommittee on GST.5. Bhargave Sanjay, Getting Ready for GST,The Management Accountant, 44 (2) 992-994, 20096. News Report on GST/VAT7. Govind Rao M., “Goods and Services Tax.Same progress to words clarity.”E c o n o m i c a n d P o l i t i c a l w e e k l y(December) Vol. XLIV No. 51, 2009, pp 9-108. Jandial Dheeraj, GST for a buoyantEconomy, The Sentinel 9th May, 2010, p 59. Ananda Bazar Patrika, Kolkata May 22,201010. The Times of India, Kolkata May 28, 2010Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 191-193ISSN 0974 - 200XEconomic Value Added : An additional Approach to RiskAggregation of Banks for Capital Adequacy RequirementsKeywords: Weighted Average Cost of Capital, Capital Adequacy Ratio, Profit & Loss Account.Introductionfeature of empirical research as after a criticalappraisal of the current Basel-II norms andEconomic Value Added (EVA) is a residualtheir applicability in the banking sector, a newincome measure that suggests subtracting thecushioning approach has been tried to becost of Capital from the operating profits afterevolved which is assumed to be supportingtax generated by the business. In other words,the current 'CAR' calculation under Basel-II.EVA measures - whether the operating profitSecondary data have been used for theafter tax is enough to meet the total cost ofpurpose. For calculating Economic ValueCapital. Unlike the traditional measure ofAdded, Net Operating Profit After tax (NOPAT)accounting profit, where only a part of the costand weighted average cost of capital,of capital (Cost of debt) is deducted. EVAinformation have been collected from therequires full cost of capital. The concept of EVA'Profit & Loss Account' and the Balance sheetcan be applied in the banking sector as a tool toof State Bank of India (Group) given in itsrisk aggregation parallel to that prescribedannual report for the year 2007-08.under Basel-II.EVA approach facilitates - comparisonbetween estimated Capital requirement underBasel-II & actual capital Requirementaccording to EVA approach.For the purpose of research secondarydata have been considered. The data havebeen obtained from the annual report of SBI,(2007-08), AS-1 issued by ICAI, and text bookon financial accounting, ICFAI University pressetc. The research is descriptive as the currentBasel-II norms have been critically studied anepitomized. The research also carries theDr. G.P.TrivediReader, Department of CommerceMarwari College, RanchiAvinash SinhaLecturer, Department of ManagementBIT, Mesra, RanchiAbstractRisk management has become all pervasive across sectors and banks are no exception. The widespreadcrises in the last two decades have resulted in a number of recommendations to prevent such occurrences.There are four ways to provide their assurance- adequate bank capital, deposit insurance, lender of lastresort and subordinated debt. Prior to 1988, bank regulator in different countries tended to regulate bankcapital by setting minimum levels for the ratio to capital to total assets.BIS Accord was the first attempt to setinternational risk based standards for capital adequacy. The current Basel-II norms are based on threepillars: capital adequacy, supervisory review process and market discipline. In this paper, in the light ofvarious complications of the current Basel-II norms for maintaining capital adequacy, a new framework hasbeen designed and developed to cushion the existing practice under Basel-II. The suggested model is basedon the concept of Economic Value Added as a measure of capital adequacy requirements. The model will bean assisting model for CAR calculation and will be outside the purview of regulatory requirements and willfacilitate internal control process of the banks.-191-Materials and MethodsThis study is mainly based on the use ofavailable literature in the form of books,journals, reports etc. The approach followed inthis papers is purely textual. The materialsused have at time been drawn from the websiteand extreme care has been taken to beobjective in approach.Results and DiscussionsCalculation of Capital Requirement (CAR)-under Economic value Added (EVA) approachon the basis of the information given in the

annual report of SBI for the year 2007-08, ofthe group, capital requirement can becalculated as follows:-A. Cost of Capital : (in Rs. Crore)a. Cost of equity - 135.76(Proposed dividend)b. Interest on Deposit - 41,713.20(Assuming interest on demanddeposit to be a negligibleproportion of the total interest).c. Cost of Debt - 3,026.40(assuming major amount underthe head other interest Expendedrelates to Debts)Total Cost - 44,875.40B. Group Profit - 8,960.61C. Hence EVA (B-A) (-)359, 14.78 CroreTherefore, the Capital requirement as perthe 'EVA' approach is Rs.35, 914.78 Crores.The amount of negative EVA - indicates a realpressure on the Capital hence can beconsidered as the required capital to mitigaterisk on actual basis.(II) Capital requirement under (Rs. Crores)BASEL_II (2007-08)(i) Capital Requirements for - 59241.33credit Risk(ii) Capital Requirements for - 4260.58market Risk(iii) Capital Requirements for - 4531.79operational RiskTotal Capital Requirement - 68033.70EVA can be explained as the differencebetween net operating profit after tax (NOPAT)and weighted average cost of capital (WACC).Credit risk is taken care of by properprovisioning as prescribed by the RBI. Undersubstandard assets category, a generalprovision of 10% and in addition a provision of10% for exposures which are unsecuredabinitio (where realizable value of security isnot more than 10% abinitio). Under doubtfulassets category for secured portion 20%provision has been prescribed for loans fromone to three years and 100% for loans - morethan three years. For unsecured portion underdoubtful category 100% provisioning isrequired. Under loss assets category, 100%provisioning is prescribed. In case of marketrisk, profit on sale of investments in “Held tomaturity” category (Banking Book) should befirst taken to the Profit and Loss account andthereafter be appropriated to the capitalreserve account ' loss on sale' will berecognized in the Profit & Loss account. Profitor loss on sale of investments in both 'Held fortrading (HFT) and 'Available for sale' (AFS)categories (Trading Book) will be taken to theprofit & loss account."Operational Risk" automatically findsplace in P& L Account. At present, banks aredisclosing their exposure to derivativetransactions as off-balance sheet items. Theseinclude currency and interest rate swaps rupeeoptions and forward contracts. At present thereare two sets of guidelines issued by the ICAI inrespect of 'Equity Index Futures' and AS-II[Accounting for effects of changes in foreignexchange (revised 2003)] relating to forward -exchange contracts only.The RBI guidelines on 'Forward RateAgreements/Interest Rate Swaps' issued on7th July, 1999, recommend the followinggeneral principles for accounting of derivativestrading transactions by banks.(i)(ii)Trading FRAs/IRs should be marked tomarket with changes recorded in incomestatement.Income and expenses related to theeswaps should be recognized on thesettlement date.(iii) Fee should be recognized as immediateincome on expenditure.(iv) Gains or losses on the termination of theswaps should be recorded as immediateincome or expense.In this way 'credit risk', 'market risk' and'operational risk' get reflected through Profitand Loss Account and get absorbed in theconcept of economic value added.-192-Anusandhanika / Vol. III / No. I / January 2011

Risk aggregation under EVA approachgives more realistic estimate of the Capitalrequirement and facilitates comparisonbetween estimated capital under BASEL-IIand the actual capital required according toEVA approach.One often misses the important view thatcapital is not supposed to absorb normallosses. Provisions and reserves should takecare of that. The abnormal losses exceedingthe provisions and reserves are meant to beabsorbed by the Capital. The result ofhypothesis testing indicates that riskaggregation under Economic Value Added(EVA) approach gives more realistic estimatesof the Capital requirement and facilitatesComparison between estimated Capital underBasel-II and the actual Capital requiredaccording to EVA approach.Economic Value Added (EVA) model forrisk aggregation is not an alternative to thecurrent capital adequacy calculation underBasel -II, but it is in addition to the currentpractice (Basel II) to facilitate comparisonbetween the estimated capital requirement asper Basel II and actual capital requirementaccording to economic value added (EVA)approach. This will help the banks to stress ondeveloping risk reduction strategies fordifferent types of risks to converge towards theactual capital required as per economic valueadded approach.ConclusionAs the current CAR calculation underBasel II is more subjective in nature and lacks aframework for developing risk reductionstrategies. We have tried to develop anadditional risk aggregation model to facilitatethe variance analysis of capital requirementssuggested by Basel II and EVA approach. Thismay further facilitate the banks to developstrategies and tools to reduce different types ofrisks in order to converge the capitalrequirement under Basel II, towards thatrequired as per EVA approach. As thesuggested EVA approach is not subject to anyregulatory compliance it can easily be appliedby banks to strengthen their internal riskmanagement practices.References1. SBI Annual Report, 2007-082. Paul Justin, Suresh Padmalatha, Managementof Banking and Financial Services,Chapter 14, 403-425, 2nd edition,Pearson Education3. Financial Accounting, Chapter 20, ICFAIUniversity Press4. Accounting Standard-1(Disclosure ofAccounting Policy), ICAI5. Risk Management, A New ApproachNeeded, The Analyst, Journal of the ICFAIUniversity Press, October 2005, pp 35-386. Accounting Standard-11 (Accounting foreffects of changes in foreign exchangerevised, 2003), ICAI7. RBI Guidelines on Forward Rate Agreements/Interest rate Swaps issued on 7th July,1999-193-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 194-197ISSN 0974 - 200XKeywords: Mouse, Keyboard shortcuts, Key purpose, Dialog box, keyboard shortcutsIntroduction“Education system has got dramaticchanges from “guru-sisya” system to classroom teaching. In present times it has movedtowards E-learning”.“Business & trade now find themselves asa the corporate now businessmen keep theirrecords not only in books of account but also insoftware like tally, NEX generation next &SAP”.It means all the business sectors areexpanding like anything and they need to haveentire information and communication throughcomputer so, here they require an extraordinaryprofessional who can operate the computerelegantly, perfectly with time effectiveness.So, this article explores informationseeking various shortcuts in operatingcomputer and also how to operate computer inabsence of mouse.Main ThrustA fine morning of 22nd of December 2010when I enter the classroom of IBS (MBA) ataround 8:55 A.M to take the class ofAccounting for Manager that day the sessionwas regarding International AccountingStandards so I was ready with my power pointpresentation.A world without MouseSumit Kumar SinhaFaculty Member/Exams Co-ordinatorICFAI University JharkhandAbstractThe cat will not survive, Lord Ganesh will become immobile the Immortal story of the pied piper ofHamlin would not have been written. But learned software and hardware friends can still survivewithout their pet, mouse. Now matter is that we are discussing about which mouse. What ismouse? The Mouse is the device one uses for most of the interactions with the PC. It is primarilyused to move the pointer arrow around the screen and to select and activate options. The mousebuttons are used to interact with whatever is on the screen where the pointer is located. The leftmouse button is the one we will use most often. Clicking this tells the PC to select an item and iscalled 'left-clicking'. To activate an item and use it, we will often need to click the button twice or'double-click'. Sometimes we don't want to use our mouse, we find keyboard shortcuts faster, maybe lose our mouse, or it breaks, so here in the article, how to fully use the computer using thekeyboard. (Other than regular typing).-194-When boot computer, then all of a suddendiscovered that the mouse of the computerwas not working. I had an urgent/ importantclass immediately. I got panicked, “Whatshould I do now? I could not finish my classdelivery without this.” Even there is not enoughtime to call a system administrator to fix thisparticular problem. Suppose this same thinghappens to you. Then what will you do? Relax;there is nothing to be afraid of, if it happens toyou also. Here is a solution. No, I am not goingto teach you how to fix your mouse in a shorttime. Instead, I am going to tell you about somekeyboard shortcut keys which could be used inplace of normal mouse operations. Theseshortcut keys given from the keyboard performthe same as of a mouse. All mouse operationscan be individually done by the keyboard also.Does it sound interesting? So do not beworried when your mouse fails to work. Youcan carry on your work with your keyboardwithout using the mouse. To do this you need tolearn these keyboard shortcut keys aboutwhich I am going to discuss next. Here we willdiscuss about some commonly used keyboardshortcuts used in Windows operating system.Please note that other operating systems likeUNIX, Linux, Mac OS etc and the differentapplications which run under these operatingsystems have their own set of keyboardshortcuts which are not discussed here.

Experts believe that by the efficient use ofkeyboard shortcuts we can speed up our workto a great extent as compared to normal mouseoperations.The following are some of the keyboardshortcuts which will help us in a great manner.KeysCTRL+CCTRL+XCTRL+VCTRL+ZDELETESHIFT + DELETECTRLF2 keyCTRL+RIGHTCTRL+LEFT ARROWCTRL+DOWN ARROWCTRL+UP ARROWCTRL+SHIFTSHIFTPurposeCopyCutPasteUndo(Delete)Delete the selected itempermanently withoutplacing the item in theRecycle Binwhile dragging anitem (Copy the selecteditem)(Rename the selecteditem)ARROW Move theinsertion point to thebeginning of thenext wordMove the insertionpoint to the beginningof the previous wordMove the insertionpoint to the beginning ofthe next paragraphMove the insertionpoint to the beginningof the previousparagraphwith any of thearrow keys (Highlighta block of text)with any of thearrow keys (SelectKeysCTRL+AF3 keyALT+ENTERALT+F4ALT+SPACEBARCTRL+F4ALT+TABALT+ESCF6 keyF4 keySHIFT+F10ALT+SPACEBARALT+LEFT ARROWALT+RIGHT ARROWPurposemore than one itemin a window or onthe desktop, or selecttext in a document)Select allSearch for a file ora folderView the propertiesfor the selected itemClose the activeitem, or quit the activeprogramOpen the shortcutmenu for the active windowClose the activedocument in programsthat enable youto have multipledocuments opensimultaneouslySwitch between theopen itemsCycle through itemsin the order that they hadbeen openedCycle through thescreen elements in awindow or on the desktopDisplay the Addressbar list in My Computeror Windows ExplorerDisplay the shortcutmenu for the selected itemDisplay the Systemmenu for the active windowGoes back a Windowwhile using WindowsExplorerGoes forward aWindow while using-195-Anusandhanika / Vol. III / No. I / January 2011

KeysCTRL+ESCDialog box keyboard shortcutsPurposeIf you press SHIFT+F8 in extendedselection list boxes, you enable extendedselection mode. In this mode, you can use anarrow key to move a cursor without changingthe selection. You can press CTRL+SPACEBAR or SHIFT+SPACEBAR to adjustthe selection. To cancel extended selectionmode, press SHIFT+F8 again. Extendedselection mode cancels itself when you movethe focus to another control.Windows ExplorerDisplay the Start menuALT+Underlined Display the correspondingletter in a menu name menu. Underlined letterin a command nameon an open menu(Perform thecorresponding command)F10 keyRIGHT ARROWLEFT ARROWF5 keyBACKSPACEESCSHIFTCTRL+SHIFT+ESC(Activate the menubar in the active program)Open the next menuto the right, or opena submenuOpen the next menu tothe left, or close a submenuUpdate the active windowView the folder one levelup in My Computer orWindows ExplorerCancel the current taskwhen you insert aCD-ROM into theCD-ROM drive (Preventthe CD-ROM fromautomatically playing)Open Task ManagerKeysALT+Underlined letterENTERSPACEBARArrow keysF1 keyF4 keyBACKSPACEPurposePerform thecorresponding commandor select thecorresponding optionPerform the commandfor the active optionor buttonSelect or clearthe check box if theactive option is a check boxSelect a button ifthe active option is agroup of option buttonsDisplay HelpDisplay the items in theactive listOpen a folder one levelup if a folder is selected inthe Save As or Opendialog boxMicrosoft Internet Explorer navigationKeysCTRL+BCTRL+ECTRL+FCTRL+HCTRL+ICTRL+LCTRL+NCTRL+OCTRL+PCTRL+RCTRL+WPurposeOpen the OrganizeFavorites dialog boxOpen the Search barStart the Find utilityOpen the History barOpen the Favorites barOpen the Open dialog boxStart another instanceof the browser with thesame Web addressOpen the Opendialog box, the sameas CTRL+LOpen the Print dialog boxUpdate the currentWeb pageClose the current window-196-Anusandhanika / Vol. III / No. I / January 2011

Though mouse is having universal,acceptance even then the keyboardusefulness in true sense cannot denied. Inabsence of mouse we can operate the PC butwithout key board it is hardly possible tooperate the PC.So, now we have to see how we can workonly with keyboardAt the mean time I got a query withoutmouse how I can operate a cursor, I recalledthose day when I use to have full time videogames on my computer mainly car race when Iwant to take left I press 4 like that 6 for rightand so on.Similarly we can use the numeric keypadas a control panel for cursor.So, the prime way of doing this, is by usinga feature that is built in by windows calledMouseKeys. To turn on MouseKeys, go onControl Panel, click on Accessibility Options,click on the tab that says Mouse, and check the‘Use MouseKeys‘ box. Alternatively, you couldturn on MouseKeys by pressing Left ALT + LeftShift + Num Lock at the same time. Pleasenote that this only works with the LEFT alt andshift, as if you try it with the right side, it will notwork.Hereunder is the control, provided thatyou have numeric keypad, to run MouseKeys.Key PadControls1 move diagonally bottom left2 Move Down3 Move Diagonally Bottom Right4 Move Left5 Simulate Mouse Single LeftClick6 Move Right7 Move Diagonally Top Left8 Move Up9 Move Diagonally Top Right(+) Simulate Mouse Double Click(-) Simulate Mouse Right Click(*) Simulate Both Mouse ButtonsClick At OnceBy trying such mode of control you will findthat there is a very slow speed of cursors, soaddition to above matter you need to havespeed up also for that you just go into setting,and change the speed.So, there you have it, easy and effectiveways of using computer, even if our mouse hasdied.ConclusionWisdom & Knowledge is walking in andout of the institution all of the time andinformation is being added to multiplerepositories in amounts that are well intogigabytes each day. A good domain knowledgeand perfection with shortcut methods, properlygoverned and resources with technology thatis appropriate to the requirements, will make asignificant difference to the achievement of theorganizational and personal goals.References1. http://support.microsoft.com/kb/1264492. http://support.microsoft.com/kb/3015833. http://www.computerhope.com/shortcut.htm4. http://free-reference.com/images/WindowsKeys.pdf5. http://pallas.ex.ac.uk/pallas/faq/winkeys.html6. http://www.networkclue.com/os/Windows/commands/shortcut-keys.aspx7. http://office.microsoft.com/en-us/help/HA011407361033.aspx8. www.online-tech-tips.com-197-Anusandhanika / Vol. III / No. I / January 2011

Anusandhanika / Vol. III / No. I / January 2011 / pp. 198-201ISSN 0974 - 200XRole of Media in Disaster Management: A case study offloods in Bihar in 2008IntroductionManisha PrakashResearch ScholarUniversity Department of Commerce and Business ManagementRanchi University, RanchiDisaster has been occurring since timeimmemorial in every part of the globe and withevery community. People have witnessed itand lived with it. We invariably consider theseevents as 'Wrath of God'. When 'evil' takesover 'good', God brings in the process ofannihilation - the Kalki in Hindu philosophy.Even Malthus, the celebrated populationtheorist, went a step further to rationalize it asnature's own forces to reduce unabatedgrowth of population. Of course, what he wrotea century ago still holds good in a differentsense. For most disasters are man made,caused or abated by expanding populationvictimizing ultimately them only.The concern to tackle disaster has alsobeen the subject of research for both physicaland social scientists (also for moral scientistswho have been speaking on the subjectthrough sermons, scriptures and discourses).The physical scientists are engaged inidentifying the cause by examining variouscomponents associated with the event as alsolocating its strength and place of occurrence.The social scientists have been researching onthe consequences of disaster. In the domain ofsocial sciences, the first attempt was made bySamuel Prince when he investigated theammunition ship's explosion in Halifax harbourAbstractDisaster is a sudden, calamitous event bringing in its wake great damage, loss, destruction and devastation.Disasters have been occuring since times immemorial. The concern for tackling disasters too has been thesubject of research for both social and physical scientists. These studies have led to creation of a plannedprogramme of disaster management throughout the world. There is now a global concern to mitigatedisasters. Bihar has been the worst - affected state in India with 17 percent flood prone areas and 36 percentof the flood affected population. Media has allegedly remained insensitive in dealing with the disaters likeflood which occured because of the breach in the Kosi embankment. In stead of sensible and senstitivetreatement of the human interest stories of the flood, media has resorted to clitches and stereotypicalrepresentation of the flood victims. The media can communicate information to the people and the concernedauthorities well in advance thus enabling them to take necessary steps to prevent and minimize the loss oflives and property.Keywords: Disaster, Floods, media, embankment, global concern, Warth of God.(Novascotia) in 1917. In this work, hediscussed at length the social effects of thedisaster and provided a few stimulating ideas.Since then a number of social and behaviouralscientists throughout the world have beencontributing to the social and behaviouralaspects of the disaster. However, since theSecond World War, collective action and statesupportresearch on disaster gathered greatmomentum. A noted state support study wasU.S. sample survey of Japanese and Germancities subjected to bombing during the 2ndWorld War. This study is known as U.S.Strategic Bombing Survey, 1947.Some of the major studies conducted withempirical evidence were those of Tyhurst ofCanada in 1951, Mark and Fritz of USA in1954, Logan and Killar in 1952, University ofOklahama and Maryland University PsychiartyInstitute Study conducted under the leadershipof Powel in 1954, University of Texas study(Moore) in 1958, Disaster Research Group ofNational Academy of Sciences Studies(Disaster Study Service) between 1956 and1963.These studies led to the significantcontribution of creation of a plannedprogramme of disaster management in almostevery country. Creation of ministries anddepartments to combat disaster appeared-198-

everywhere. In India too, we have a DisasterManagement Fund and in every state aSpecial Relief Commissioner (SRC) headedby a senior bureaucrat.There is now a global concern to mitigatethdisaster. On 11 December 1987, the UNGeneral Assembly passed a resolution whichndwas adopted on 22 December 1989 toobserve the decade beginning 1990 as NaturalDisaster Reduction Decade throughout theworld. The idea behind the resolution was togive exclusive attention to programmes andactivities designed to reduce loss of life,damage to property and reduce or minimizethe disruption caused to economic and sociallife.Materials and MethodsThis study is mainly based on the use ofavailable literature in the form of books,journals, reports etc. The approach followed inthis paper is purely textual. The materials usedhave at times been drawn from the website andextreme care has been taken to be objective inapproach.Results and DiscussionsDisaster management is the discipline ofdealing with and avoiding risks. It is a disciplinethat involves preparing, supporting, andrebuilding society when natural or humanmadedisasters occur. In general, anyEmergency management is the continuousprocess by which all individuals, groups, andcommunities manage hazards in an effort toavoid or ameliorate the impact of disastersresulting from the hazards. Actions takendepend in part on perceptions of risk of thoseexposed. Effective emergency managementrelies on thorough integration of emergencyplans at all levels of government and nongovernmentinvolvement. Activities at eachlevel (individual, group, community) affect theother levels. It is common to place theresponsibility for governmental emergencymanagement with the institutions for civildefense or within the conventional structure ofthe emergency services. In the private sector,emergency management is sometimesreferred to as business continuity planning.The scope of disaster management andpost reconstruction covers both natural andman-made disasters, including seismicevents, drought, flood, war and famine. TheWorld Bank's Hazard Management Unit aimsto reduce human suffering and economiclosses caused by natural and technologicaldisasters through providing a more strategicand rapid response to disasters, andpromoting the integration of disasterprevention and mitigation efforts into the rangeof development activities.Generally, disasters are of two types -Natural and Manmade. Based on thedevastation, these are further classified intomajor/minor natural disasters and major/minormanmade disasters.The International Decade for NaturalDisaster Reduction, which began in January1990, embraced efforts to reduce death, injuryand property losses stemming from rapidonsetof natural disasters. The expandingscience and technology base made possiblethis concerted cooperative international effort,and communications has been a central part ofthat effort — for public education, earlywarning, evacuation and coordination of postdisasterrelief. Mass communication isinextricably entwined with disasters andhazard mitigation.Reflecting the public's great interest andconcern, the electronic and print mediaextensively cover natural disasters andsignificantly affect how and what the publiclearns about and how it perceives naturalhazards. Improving the linkages between themedia and disaster-mitigation researchers andpractitioners could prepare the public to actpromptly on warnings, helping to mitigatedisasters. This could also accelerate the shiftof the societal emphasis from post-disasterrelief toward pre-disaster initiatives.In the "professional way" of disseminationof warnings also media, especially ofelectronic type, can play important role indissemination of warnings to the public. Theway media treats the Disaster stories andwhether there is a need to change the kind ofattitude to more socially responsible andcommitted approach to the issues has alwaysbeen a matter of discussion.This study will utilise survey research todescribe and explain the role of the media indisaster preparedness and response duringthe unprecedented floods in Bihar in 2008. Anadministrative case study will also be utilised,based on an extensive review of Bihargovernment documents and interviews withkey personnel of the Disaster Management-199-Anusandhanika / Vol. III / No. I / January 2011

Department and other relevant governmentofficials. Based on the perceptions ofemergency managers and media reporters,the study will provide recommendations onhow to improve capability in agencycoordination and disaster management. Thestudy will find out if continuous training byemergency response coordinators couldimprove the state and country disasterpreparedness, and whether coordination withthe media reporting on disasters could beimproved.Disaster Hazards in BiharAs Bihar is vulnerable to different kinds ofdisaster due to its geographical andtopographical location, it is prone to Flood,Drought, Fire and Earthquake. According toseismic zoning, some parts of the State are inZone-IV & Zone-V, which can causedevastation as bad as BHUJ (Gujrat) andLATUR (Maharashtra).Bihar is the worst flood-affected state inIndia. About 17% of the flood-prone areas and36% of the flood-affected population of thecountry belong to this state. The state's sharein total average annual flood damage in thecountry is about 23%.Of all the river basins in the state, the ratioof flood-prone to catchment area within thestate is maximum in the Kosi basin (89%).Floods have been a chronic and a seriousproblem for the state, particularly for northBihar. It has forever remained in discussion,but last year's (2008) breach of the easternafflux embankment of the Kosi at Kusaha (inNepal) has caused unprecedented damageand attracted widespread attention andconcern.In 2008, due to floods in the river Kosi, thedistricts of Madhepura, Araria, Supaul, Purniaand Saharsa were badly affected. About 50-60percent of the cropped area in the abovedistricts was under submerged conditions.The Kosi River eroded its embankment inNepal about 12 k.m. upstream of the barrageas a result of which the embankment breachedon August 18th, 2008 and the river startedflowing on an entirely new course. The waterspread along the new course was 15 km wideand headed straight down south. More than 25lakh people and their houses fell in the path ofthe new course. The people along the newcourse took shelter on whatever high groundthey could find and on roof tops.Media was said to be insensitive in dealingwith the disasters like the flood which occurredbecause of the breach in the Kosi embankmentThere were voices in the society which saidthat instead of sensible and sensitivetreatment of the human interests' stories of theflood, media resorted to cliches andstereotypical representation of the floodvictims. Nonetheless, media played a vital role.Number of districts affected - 5No. of Blocks Affected - 35No. of Villages Affected - 993Population Affected (In No.) - 3329423Livestock affected (In No.) - 997344Area Affected (Lac Ha) - 3.68No. of Persons Evacuated - 993992No. of Human Death - 527No. of Livestock Death - 19323(Source - Department, of Disaster Management, Govt, of Bihar)Role of Media during the floods in Bihar- Uncovered the lost link with country side- Generated awareness amongst massesto join the fight against floods- Ensured that relief materials reached theneedy- Tried to prevent any negligence on part ofGovernment or NGO officials.- Generated funds, clothes, medicines, dryfood items and circulated this throughright channel- Use their manpower and telecommunicationpower to facilitate the relief work.- Ensured that relief material should bedistributed to all without any prejudice andirrespective of religion, caste and economicstatus.- Tried to put a curb on corruption andinjustice in the name of relief work- Uncovered any malpractice or corruptpersonnel through their investigativejournalism.ConclusionThe rapid world population growth is likelyto further boost the impact and severity of anydisaster. Disaster management, as such,needs to be placed within a holistic setting toinsure that each and every disaster is viewedas a shared responsibility. To this end, it isimperative to consider a number of influences,which include "economic, social, cultural,-200-Anusandhanika / Vol. III / No. I / January 2011

institutional, political, and even psychologicalfactors that shape people's lives in disastersituations. Public education affords a majorway to transfer knowledge to communities.Natural disasters have a low probability ofoccurring with a high probability of effects.Public education is essential in mitigationprogrammes. In public education, even simpleinstructions play a vital role in disastermitigation. One of the most challenging tasksthat security professionals have to carry out isto act as media relations officers after anewsworthy event. This is not an easy jobbecause they must ensure that the informationreceived by news sources is factual andproperly managed. Otherwise, the informationcould be misinterpreted by the media andeventually harm the company's reputation.Security personnel can avoid or at leastminimize the risk of bad press by adopting awell-planned communications strategy.References1. Goel S. L., Encyclopaedia of DisasterManagement , Deep & Deep PublicationsPvt Ltd, New Delhi2. Ghosh G.K., Disaster Management,A.P.H. Publishing Corporation, Delhi3. Singh R.B., Disaster Management, RawatPublications, Delhi4. Ahmad Ayaz, Disaster Management:Through the New Millennium,AnmolPublications, New Delhi5. Dave P.K., Emergency Medical Servicesand Disaster Management: A HolisticApproach, Jaypee Brothers MedicalPublishers (P) Ltd, New Delhi6. Narayan B, Disaster Management, A.P.H.Publishing Corporation, Delhi7. B C Bose Modern Encyclopaedia ofDisaster and Hazard Management,RajatPublications, New Delhi8. Kumar Nikuj, Disaster Management,AlfaPublications, Delhi9. Kumar Arvind, Disaster Management-Recent Approaches, Anmol Publications,New Delhi-201-Anusandhanika / Vol. III / No. I / January 2011