February 23, 2010

life in general & financial markets: (part 2) excessive-consumerism-driven ugly mining

(continued from part 1 posted in October 2009...)

Mining of natural resources is the most problematic area with fake capitalists, in conjunction with corrupt government functionaries (politicians and bureaucrats) and local thugs, exploiting the lax environmental laws of countries like India either openly or through the loop holes.

Early this month, a news report (an entire cut-and-paste copy is given at the end below) stated that some mining officials in the eastern Indian state of Orissa (in the northern part of the state, just south of the state of Jharkhand) stumbled upon 600 tonnes of iron ore that was illegally mined from surrounding forest areas (see the red-circled portion in the first map below).

These were stockpiled in two railway yards in the state at Banspani in Keonjhar district and Juruli in Sundergarh district. Among several mining sites, Tata Steel and one Aditya Birla group company have their mining plants around Banspani (see the second map below). Now, a news report (also reproduced entirely at the end below) states that these massive tonnes of iron ore have disappeared.

Quite likely, the state government, with tacit understanding of the central government, is involved in this theft.

(click on the maps below to see them enlarged & clear)




1]
http://sify.com/news/600-tonnes-of-iron-ore-seized-in-Orissa-news-National-kcdq4bjhadj.html
600 tonnes of iron ore seized in Orissa
2010-02-03 16:30:00
Mining officials have seized at least 600 tonnes of iron ore in Orissa's mineral-rich Keonjhar district in a continuing crackdown on illegal mines, an official said Wednesday.
'The ore was seized from Thakurani reserve forest area. About 200 tonnes of iron ore was seized today (Wednesday), 400 tonnes of ore was seized Tuesday,' Deputy Director (mines) U.C. Jena told IANS.
Investigations into illegal mining in Orissa by various state and central agencies started after some politicians alleged in July that some mines were operating without licences.
Jena said the mining officials have seized more than five lakh tonnes of iron ore worth about Rs.50 crore from various places in mineral-rich districts of Keonjhar and Sundergarh since July. The officials have also seized about 6,000 tonnes of manganese ore from the region.
The district head quarters of Keonjhar is located at a distance of about 235 km from state capital Bhubaneswar. Sundergarh is its nearby district.

2]
http://www.asianage.com/index.php?option=com_content&view=article&id=3253:illegally-lifted-iron-ore-disappears-in-orissa&catid=35:india&Itemid=60
Illegally lifted iron ore disappears in Orissa
Sunday, 21 February 2010 02:59
Bhubaneswar, Feb. 20: At least 3,600 metric tonnes of iron ore illegally mined from forest areas and stockpiled at two railway sidings — Banspani in Keonjhar district and Juruli in Sundergarh district — has mysteriously disappeared.
The precious mineral — roughly estimated to be worth Rs 150 crores — is suspected to have been lifted by a big racket allegedly having political patronisation.
Although Joda deputy director mines (DDM) has written separate letters to inspector-in-charge of general railway police station Rourkela and Bhandhamuda police station, no one action has been taken against to identify the culprits.
What raises doubt about the state government’s seriousness to apprehend the criminals is its complete silence over the issue. Although on January 21, the DDM, Joda, stumbled upon the illegally lifted mineral stocked at Bansapani and Jurui, he did not seize it. Instead, he kept mum on the issue and informed the police nine days after on January 30, allowing the plunders to transport iron ore to the targeted destinations. Sources said the illegally dispatched iron ore was lifted from forest areas and some mines which were recently shut down after much hue and cry by the Opposition.
"I think no amount of exposes can awaken the Naveen Patnaik government to check the ongoing indiscriminate loot of the state’s mineral resources. He does not care to act. This exposes the real man in Naveen," senior BJP leader Bijoy Mohapatra told reporters at a crowded press conference here.
He reiterated his demand for a probe into the multi-crore mining scam by the CBI.
Akshaya Kumar Sahoo

February 21, 2010

life in general: bt brinjal & other GM foods


Many sections of the Indian media have been plugging for Monsanto and other companies that are into genetically-modified (GM) food seeds. Indian Express newspaper, self-declared upholder of journalism of courage, has been the most miserable, highlighting the support for GM food by notorious crooks and corrupt politicians such as Sharad Pawar and Kamal Nath


The claims of high-yield and pest-resistant of genetically-modified food such as brinjal are not necessarily true or sustainable. Worldwide experience, such as that with BT cotton, suggests that yields do not stay high and that pest attacks are not eliminated.

Since there is no adequate surety of the benefits one has to look at what harm can be caused. The biggest harm of BT foods is the strangulation of bio-diversity. A former managing director of Monsanto, TV Jagadisan, in an interview in a latest issue of a weekly magazine (Tehelka) (the entire interview from Tehelka is presented at the end below) had this to say about the risk of GM foods on India's bio-diversity:

"India’s biodiversity will be gravely tampered with. For example, we have more than 2,400 varieties of brinjal in the country. Brinjal is a highly cross-pollinated crop. So if you have Bt brinjal growing in some field, its pollen can easily get transferred by wind or insects to other fields. Monsanto has itself filed suits against many people in Canada for growing Bt cotton without license, but for no fault of theirs. It’s the wind and insects that had carried pollen and created Bt cotton in their fields! Monsanto vs Schmeiser is just one famous case in Canada. The court judgment went in favour of Schmeiser. The same thing will happen here in India. They say 30 meters is sufficient to separate BT and non-BT brinjal. I don’t believe that. There’s no way anyone can control the gene flow because you cannot control wind and where insects will fly. And once that cross-contamination takes place, our entire biodiversity will be at stake. Our native brinjal has a wonderful property – it can control Type II diabetes. We don’t even know what properties Bt brinjal will have once its genetically transformed."

GM food, in my view, is likely to cause much more harm than any potential benefit. What is worse is that the government of our country is not making it mandatory for any GM producer to label their food as 'GM'. At the very least, we, the consumers, have the right to be informed of the type of food we buy.


Here, then, is the interview in Tehelka magazine:



‘Go Aheads Came On Monsanto’s Data’

Of all the voices that opposed the introduction of Bt brinjal, one was most significant — that of 84-yearold TV Jagadisan, the former MD of Monsanto India. Talking to SHOMA CHAUDHURY at his Bengaluru flat, Jagadisan, who was with the company for 18 years and served as managing director for South Asia for eight years, spoke of all the reasons to fear Bt brinjal. He may have retired 20 years ago but here’s an industry insider talking about the disturbing way in which corporates and governments function. Excerpts:

How long were you with Monsanto and what position did you hold there?
I was with the company for 18 years. I joined as a marketing and development manager and was promoted to general manager. In my last eight years with them, I was the managing director for India, Sri Lanka, Nepal, Bhutan and Pakistan. I retired about 20 years ago.

At Minister Jairam Ramesh’s public consultation over BT brinjal, you expressed serious concerns about the way government regulatory bodies give clearances. Can you elaborate? In your time as MD, Monsanto India, what products were cleared?
I was responsible for introducing several herbicides in India. Butachlor, which is a rice herbicide (brand name Machete); Alachlor (brand name, Lasso); Triallate (brand name Avadex BW). For all these we had to submit data to the Central Insecticides Board for approval. None of these government regulatory agencies have the facilities, time or resources to do the testing themselves, so they routinely rely on company data. This was true not just for Monsanto but all companies. When regulatory bodies rely on company data to give clearances, naturally companies like the data to appear favourable to themselves.

With something like BT brinjal, this becomes very disturbing. Unless long term tests are held independently by bodies like the ICAR and IARA, there should be no hurry to introduce it. In my opinion, in fact, there’s no need for BT brinjal. India cultivates brinjal in about half a million hecatres and produces over eight million tons every year, so there’s no problem of low production. Yes, there is pest incidence, the fruit and shoot borer no doubt does cause damage, but there are other methods for controlling that. Simple home remedies like neem oil emulsion can control this pest. There is absolutely no need to move towards BT brinjal.

These industries are very opaque. What was the internal culture of Monsanto like? Did you really conduct any internal tests at all?
Yes, as far as herbicides are concerned, we did do some internal tests, but sometimes we used to just produce foreign data -- not location specific Indian data -- and the Insecticides Board just accepted it. They had no means of verifying what we gave them. We did some demonstrations, but we never had any controlled plots for research or anything elaborate like that.

Would you say any data was fudged during your time?
Not in my territory, or jurisdiction; what happened abroad I cannot say. But you can generally take it that any company that’s got to give data for getting approval for its own product will naturally like to make it appear favourable. That’s common psychology.

Bt cotton must have been developed during your time. Did you have doubts about that as well?
It was being developed in St Louis while I was there but it was introduced in India after I left, so I don’t know that much about it. But it’s public knowledge, that it’s not all roses. Some farmers say their yields have doubled; others have committed suicide because it failed. There have certainly been failures after its commercial release. Particularly in 2002, the crop failed, the pest incidence increased. They said the wrong variety of cotton had been chosen for BT technology and, later on, they improved it. But you see nature will take its own course. If you try to control something, something else will proliferate. Bt cotton was engineered to control the bollworm, but mite incidence went up. Other pests proliferated. Even bollworm has developed a resistance. So pesticide use came down in the beginning but has started going up again.

There is concern about farmers having to buy new Bt seeds every season.
Exactly. The terminator gene. This is supposed to be a gene that allows seeds to grow only once, and seeds coming out of the crop cannot be resown and will not germinate. I don’t know if Monsanto really put that into Bt cotton or which crop it was introduced into, but it’s public knowledge that with Bt cotton, farmers have to buy seeds every season at a very heavy cost. That’s against Indian culture. In Indian agriculture, farmers generate their own seeds for the next season. With Bt, he can’t do that – he has to go back to the company to buy new seeds.

As MD, weren’t you privy to these things?
When I talked to colleagues, they spoke of this terminator gene. But I can’t say for a fact. What one does hear now is that Bt cotton seeds are much more expensive and I hear Monsanto has got 63 companies which produce Bt cotton seeds and it collects royalty from them. That is published information. I have no first hand knowledge of it.

Monsanto creates herbicides and pesticides; Bt seeds are supposed to resist them. Isn’t that a conflict of commercial interest?
Monsanto developed a herbicide called glyphosate to kill weeds in crops but found that it destroys soyabean also. So they created a genetically altered soyabean that can resist glyphosate. So you make a herbicide to kill the weeds, then you make a seed to resist that herbicide -- so it’s making money on both sides! (Laughs) Later I heard even that soyabean is not so successful. Yields are coming down. That’s what published information says.

Apart from dangerously inadequate government clearances, what are your other concerns about Bt brinjal?
A whole lot of concerns. For one, India’ biodiversity will be gravely tampered with. For example, we have more than 2,400 varieties of brinjal in the country. Brinjal is a highly cross-pollinated crop. So if you have Bt brinjal growing in some field, its pollen can easily get transferred by wind or insects to other fields. Monsanto has itself filed suits against many people in Canada for growing Bt cotton without license, but for no fault of theirs. It’s the wind and insects that had carried pollen and created Bt cotton in their fields! Monsanto vs Schmeiser is just one famous case in Canada. The court judgment went in favour of Schmeiser.

The same thing will happen here in India. They say 30 meters is sufficient to separate BT and non-BT brinjal. I don’t believe that. There’s no way anyone can control the gene flow because you cannot control wind and where insects will fly. And once that cross-contamination takes place, our entire biodiversity will be at stake. Our native brinjal has a wonderful property – it can control Type II diabetes. We don’t even know what properties Bt brinjal will have once its genetically transformed.

So we are back to inadequate testing and malafide government clearances?
Yes, we need independent long-term trials, thorough research and peer reviews to get a clearer idea of harm and good. In this case, it’s the first time such technology is being introduced into a regular food crop. Yet there have been no trials for birth defects in successive generations. Lab rats fed on GM soyabean have apparently developed ulcers and tumours in their kidneys and liver. That’s what published research says. Approving Bt brinjal for commercial release the way the GEAC was set to was like letting a genie out of a bottle.

In your opinion, is there any need for Bt brinjal at all?
No, BT brinjal’s entry point is itself suspect. The Knowledge Initiative Commission set up under the PM has got three companies as permanent members, among them Monsanto and Dow Chemicals. So naturally they push their point of view. Bt Brinjal was just the entry point. There is talk of BT rice, wheat, potato and what not. If this had gone through, very soon the whole country would have been Bt-ed! When Hillary Clinton came recently, she made no bones about the fact that she was here with the sole purpose of bending India’s agriculture policy to American interests.

Defenders of Bt crops say it’s necessary for our food security. Two decades ago we were applauding the Green Revolution. For a while, with increased pesticide use, crop production went up. But then the land degenerated and we now think of it as a mixed experiment if not complete failure. So it’s not good to think of all this only in terms of short term gain. You remember the thyladomide case? Foreign companies would like to introduce a product as quickly as possible, make money as quickly as possible and get out as quickly as possible. It is our government that has to be more cautious and protect our interests. That’s where our government and regulatory bodies fail to do their duty.

Why are you speaking up now? Why not earlier?
There was no occasion for me to talk until Jairam Ramesh held his public consultations. I have not spoken against Monsanto per se, but against BT technology. I have a lot of doubts about it. I am expressing this as an Indian citizen.

WRITER’S EMAIL
shoma@tehelka.com

From Tehelka Magazine, Vol 7, Issue 07, Dated February 20, 201





February 18, 2010

life in general: al-queda/taliban & maoists are the other side of the terrorism coin

One side of the terrorism coin is the state itself. The other is the private, renegade groups on the lines of Al Qaeda/Taliban and India's Maoists. Both are doomed to fail as human qualities of goodness and peace increases and sustains.

In the last one week, the violence by such groups have killed innocents. Just today, according to one news report among many, India's Maoists have murdered about 10 villagers in the eastern state of Bihar. A few days back they had gone a killing spree, shooting dead around 20 policemen, in a town in the eastern state of West Bengal.

A few days back, a high-intensity bomb exploded in a bakery in Pune city in the western state of Maharashtra and killed around 10 people, mostly college students. This was, very likely, an act of a new recruit of the Taliban-like extremist groups operating mostly out of Pakistan. Al-Queda is also active in its plans and American cities are still at risk (although I do not think 11 September 2001 involved only Al-Qaeda and I think there was an involvement of the Bush regime to bring down three buildings on that day).

These renegade groups put forth the rationale of revenge -- say, something like "your country/government has killed our innocent people and we are only seeking justice". But what these private groups forget that justice is not got if served on those who are not directly responsible for the pain of the people they claim to represent. What they indulge in is nothing but murder and is nowhere close to being any kind of justice.

These groups will not succeed. What will succeed, however, is a persistent and non-violent approach to seeking justice. The same amount of money and passion used by extremists if channeled in non-violent and legal direction then a positive outcome is guaranteed.

February 11, 2010

shareholders of mcx, bse & nse

I have compiled a list of shareholders of two equity exchanges and one commodity derivatives exchange in India. Here they go:

SHAREHOLDERS OF MULTI COMMODITY EXCHANGE OF INDIA AS OF JULY 2008

Shares* % of total

(in million) shares
Financial Technologies (India) Pvt. Ltd. (Bombay) 25.45 31.38
Fid Funds (Mauritius) Ltd. 7.20 8.88
State Bank of India 4.20 5.18
Euronext N.V (London/Paris/Brussels) 3.91 4.82
Merrill Lynch Holdings (Mauritius) 3.91 4.82
Citigroup Strategic Holdings Mauritius Ltd 3.91 4.82
Corporation Bank 2.84 3.50
MCX Esop Trust (Bombay) 2.60 3.21
The National Bank for Agriculture an Rural Development (Bombay) 2.50 3.08
ICICI Trusteeship Services Ltd (Bangalore) 2.48 3.05
Passport Capital Llc (where from??) 2.34 2.89
IL&FS Trust Company Ltd (Bombay) 3.91 4.82
National Stock Exchange of India 2.00 2.47
GLG Financials (Bombay) 1.56 1.93
Bennet Coleman and Company (Times of India Group) 1.51 1.87
611 other entities/individuals 10.77 13.28
Total equity capital 81.08 100.00
* - having face value Rs 5 per share



SHAREHOLDERS OF THE BOMBAY STOCK EXCHANGE AS OF AUGUST 2009

Shares* % of total

(in million) shares
Deutsche Boerse AG (Germany) 5.10 4.96
Singapore Exchange Ltd (Singapore) 5.10 4.96
State Bank of India 5.02 4.88
Life Insurance Corporation of India 5.02 4.88
Acacia Banyan Partners Ltd (where from?) 4.02 3.90
Dubai Financial Group LLc 4.02 3.90
Caldwell India Holdings Inc (where from?) 4.02 3.90
Atticus Mauritius Ltd 4.02 3.90
Bajaj Holdings & Investment (Bombay) 3.01 2.92
MSPL Ltd (Bombay) 1.20 1.17
Nadathur Holdings & Investments Pvt Ltd (Bangalore) 1.13 1.10
Bank of India 1.06 1.03
Central Bank of India 1.06 1.03
Bennet Coleman and Company (Times of India Group) 1.06 1.03
S. Gopalakrishnan (Infosys official) 1.06 1.03
Isheta Investment Pvt Ltd (Bombay) 1.06 1.03
Blue Star Diamonds Pvt Ltd (Bombay) 1.06 1.03
TGS Investment & Trade Pvt Ltd (Bombay) 0.53 0.52
Suryaprakash Singapur (Bangalore) 0.40 0.39
First Global Stockbroking (Bombay) 0.39 0.38
Bang Equity Broking Pvt Ltd (Bombay) 0.39 0.38
Arjav Diamonds India Pvt Ltd (Bombay) 0.29 0.28
Kotak Securities (Bombay) 0.26 0.25
Anagram Stockbroking (Bombay) 0.26 0.25
2,663 other entities & individuals (mostly BSE broker-members) 52.35 50.89
Total equity capital 102.88 100.00
* - FV Rs 1 per share



SHAREHOLDERS OF NATIONAL STOCK EXCHANGE OF INDIA AS OF SEPT. 2009

Shares* % of total

(in million) shares
Life Insurance Corporation of India 5.17 11.49
State Bank of India 4.70 10.44
Infrastructure Development Finance Company (Bombay) 3.69 8.20
Stock Holding Corporation of India (Bombay) 3.08 6.86
IFCI (Bombay) 2.32 5.16
NYSE Group (New York, US) 2.25 5.00
GA Global Investments Ltd (where from) 2.25 5.00
GS Strategic Investments Ltd (Goldman Sachs, US) 2.25 5.00
SAIF II-SE Investments Mauritius Ltd 2.25 5.00
IDBI Bank 2.24 4.98
SBI Capital Markets 1.95 4.33
Azim Premji (chairman of Wipro) (Bangalore) 1.35 3.00
MS Strategic Mauritius Ltd 1.35 3.00
Norwest Venture Partners Mauritius 0.95 2.11
Citigroup Strategic Holdings Mauritius Ltd 0.90 2.00
General Insurance Corporation of India 0.74 1.64
National Insurance Company (Calcutta) 0.64 1.42
New India Assurance Company (Bombay) 0.64 1.42
Oriental Insurance Company (Delhi) 0.64 1.42
United India Insurance Company (Madras) 0.64 1.42
Canara Bank (Bombay) 0.62 1.38
Financial Technologies (India) (Bombay) 0.45 1.00
Bank of Baroda 0.39 0.87
Saturn India Ltd 0.36 0.80
Indian Bank 0.30 0.67
HDFC Standard Life Insurance Company (Bombay) 0.22 0.49
Narendra Baldota (of MSPL, Hospet) 0.22 0.49
Fidelity India Special Situations Fund 0.20 0.44
MSPL Ltd (Hospet) 0.19 0.42
Union Bank of India (Bombay) 0.18 0.40
S. Gopalakrishnan (of Infosys) (Bangalore) 0.17 0.38
Kotak India Growth Fund 0.15 0.33
Fidelity International Opportunities Fund 0.15 0.33
Oriental Bank of Commerce (Bombay) 0.14 0.31
M3 Investment Pvt Ltd (Vapi, Gujarat) 0.14 0.31
JM Financial Ltd (Bombay) 0.09 0.20
JM Financial Ventures (Bombay) 0.09 0.20
Saturn South Asia Ltd 0.09 0.20
Reliance Strategic Investments Ltd 0.08 0.18
15 other companies 0.77 1.70
Total equity capital 45.00 100.00
* - Face Value Rs 10 per share

February 07, 2010

life in general: surreal-looking afghanistan-iran mountains

Around a year ago, 30 January 2009 to be exact, as I was in a flight from Bombay to London for an 1-week official trip to London, I saw the mountains that come in the border region of Afghanistan and Iran. They looked surreal; as if they were from some other planet.

I share below two pics I took of these mountains from the plane window along with one pic I took of the flight path, at that time, on the TV screen near my seat.





February 01, 2010

life in financial markets: mini-bubble bursts, at least for the time being

I wrote about the mini-crash in stock markets worldwide last week. Here goes:

Mini-bubble bursts, at least for the time being


It is becoming a quarterly feature. Global equity markets had crashed between 5% and 10% in the second half of October 2009. The second half of this month has seen the exact same story. The BSE Sensex and Hong Kong's Hang Seng index were the worst hit with a crash of a little over 7% in a week (see graph below, click on the image to see it enlarged & clear).




A jittery Chinese central bank, uncertain stimulus packages and un-inspiring corporate fundamentals were the major driving factors. But an actual liquidity shake-up was the turning point that made the markets fall continuously for about six trading sessions. "Emerging economies like India had attracted significant foreign equity flows in 2009 and reversal of a part of these flows have likely contributed to some correction in the Indian markets." says Dipen Shah, senior VP-private client group research at Kotak Securities.


The first half of January saw staggering net foreign institutional investor (FII) inflows, collectively on the NSE and the BSE, of Rs 3,042 crore on a single day on 11 January, and an aggregate net inflow of Rs 5,447 crore for the month till 11 January. The tide turned dramatically thereafter and the next 11 trading sessions saw Rs 8,855 crore worth of net outflows. The domestic institutional investors picked up Rs 6,509 crore worth of these outflows but the Sensex still tanked by about 7% in a week as of 27 January.


High global liquidity had sustained the equity markets for over two months till mid-January. There were warnings in November last year that 'dollar carry trade' was causing the liquidity overflow and may not sustain for long. Donald Tsang, chief Executive of the Hong Kong Special Administrative Region of the People's Republic of China, had stated in November last year that the US Federal Reserve’s policy of maintaining near-zero interest rates near zero was leading to excessive speculative capital which could cause the next global crisis.


Warning of the dangers of 'dollar carry trade' Nouriel Roubini, professor at New York University’s Stern School of Business, in a column in London's Financial Times, wrote that "traders are borrowing at negative 20 per cent rates to invest on a highly leveraged basis on a mass of risky global assets that are rising in price due to excess liquidity and a massive carry trade."


Many Indian market participants, however, rubbish the speculation that fears of an unwinding of 'dollar carry trade' due to a strengthening dollar (against other currencies) will lead to further liquidity outflows from global markets. "The equity markets run their own temperatures and had perhaps come too far too fast," says Jamal Mecklai, head of Mecklai Financial, a forex consultancy firm. But, cautions Saurabh Mukherjea, head of India equities at Noble Group, a global equity research firm, "Yes, money will flow out from global equity markets if the US Fed chairman, Bernanke, were to really say that this it the end of low interest rates in the US."


Domestic corporate fundamentals have been neutral. An Enam Securities research, dated 20 January, revealed that out of 41 top companies that had disclosed their quarterly figures for December 2009 about 15 companies saw a decline in net profits as well as net sales. The remaining saw a lukewarm growth.


"Even around the world there were high-profile corporate cases of earnings disappointment and valuations had come to a juncture where earnings had to grow a lot to sustain the high stock prices," says Mukherjea.


Global markets, including India, had recovered on Thursday, 28 January, but the next few weeks will see subdued levels and choppy conditions.

January 28, 2010

life in general: like racism elsewhere, casteism has to stop in india

Some Indians are experiencing violent form of racism in Australia in the last one year. To read the many newsreports on it just do an internet search.

Even in a progressive city like London, some form of racism is seen sometimes. I say this from my own experience in London when I visited the city in endofJanuary-earlyFebruary 2009. I was at Oxford Street and wanting to cross to the other side I was waiting for a pedestrian signal to turn green. I was standing near a lamp post when suddenly a group of British teenagers came up to my right, screamed loudly some gibberish sounds in my right ear and ran away. Now, I did not see such a thing happening to fair-skinned Britishers and Europeans. So, I presume my Asian look invited that kind of behaviour. Racist, was it? Anyway, those teenagers will learn sooner or later that their racist behaviour is not conducive for their growth as good human beings.

Even some local Chinese practise racism against brown-skinned Asians and Africans on the streets of Hong Kong.

Then, you have casteism in India where some Hindu Indians indulge in discrimination and other un-civil behaviour against Dalits and other scheduled castes and tribes. Below is a story on a recent incidence of casteism in the state of Karnataka in India. Finally, the extreme forms of violence perpetrated against Muslims in Gujarat in March 2002, in Bombay in January 1993 and at other times at other places is also a form of racism. Some Hindus (who are extremists) pick on any man, woman and child who happens to be a Muslim.

Here is the story on casteism:

http://www.indiatogether.org/2009/dec/soc-norelief.htm

The unkindest cut of all
Post October floods in North Karnataka, Dalits find themselves in a greater predicament. A century of struggle for equal rights and worse, fundamental faith in human progress, is at stake, writes Savita Hiremath.

http://www.indiatogether.org/2009/dec/soc-norelief.htm

24 December 2009 - On September 30, hours dragged by and the black shadow of calamity brooded over Hachcholli of Koppal taluk. People looked up into the sky heavy with scudding clouds and misled themselves into thinking that it would be just another downpour. A day later, they were in the midst of an unprecedented tragedy as the rain-swollen Tungabhadra and Hagari rivers swept mercilessly everything that came in their way.

A Dalit in front his house in Kakkaragol of Koppal taluk. Pic: Savita Hiremath.

They now know what it means to have houses submerged, fertile fields stripped, bales of cotton soiled, sacks of rice soaked, cattle dead, and women and children turned to starve.

A ghastly trip home

Once the waters receded, it was a ghastly trip home. For some there was no trace of home at all, just a clean sweep of the past. Once the government launched emergency relief measures and installed some sheds, things began to fall in place - caste was the first priority. Although there was no semblance of order or discipline while distributing food and relief material, isolation of Dalits was achieved with utmost urgency and sincerity. The fringes were neatly delineated and that’s where they were sent back again.

“In some villages, they weren’t even allowed to take shelter in temples and schools,” says Basavaraj Kowtal, convenor of Human Rights Front for Dalit Liberation-Karnataka.

This segregation came easy in Hachcholli. Post 1992 floods, a sizable SC/ST population was housed in sheds put up a kilometre away from the village. This time the rest of the Dalits were told to move in with others. This distance has cost them dear. A huge portion of relief material reached the upper caste, well-to-do families while 300-400 families living on the periphery remained unaware of the goings-on.

Marthamma (50) rues that relief material including plates, tumblers, blankets, lanterns, and kerosene stove didn’t even reach them. “Only some NGOs helped us. Officials do not visit us. Even if they come, they just talk to some people at the entrance and go back.”

Gruel centres

When I visited Hachcholli and Shridharagadde of Bellary 45 days after the floods, casteist politics at gruel centres (ganji kendra) was striking. With the curtain of prejudice keeping them automatically away from the overcrowded centres; invariably, it was the dalits who returned hungry.

Kowtal, who toured worst-hit Bijapur district, says nowhere did he come across a single centre set up in a Dalit colony. The officials set up one centre for 2-3 villages and none for Dalits despite being aware that casteism is intense in villages.


• Everybody loves a good flood
• Devastated and drowned

Kowtal, who toured worst-hit Bijapur district, says nowhere did he come across a single centre set up in a Dalit colony. The officials set up one centre for 2-3 villages and none for Dalits despite being aware that casteism is intense in villages. “The possibility of Dalits eating food with the rest simply does not exist. In Kowligi (Bijapur), Dalits were told to get their own plates although they had none. Even hungry children weren’t spared.”

Survey based on 1992 records

The bias cuts so deep that in Anjotigi of Indi taluk, 25-30 Dalits are living in only five sheds of 10x10 dimensions. Life inside is far beyond any reasonable endurance. These shacks can house only hostility - not humans by any stretch of imagination. Ramesh K, member of Bijapura Shoshithara Abhivriddhi Vedike (a newly constituted forum to fight discrimination against flood-hit Dalits), confirms that “people are being stuffed into these sheds like cattle”.

Grave errors have crept in, with officials refusing to survey Dalit colonies. The errors appear deliberate. "They are using the 1992 records to fix compensation. Many new houses have come up since then but they weren’t given proper property records. And those who did own have lost them to the floods. Now these records are a must to get relief,” says Kowtal.

Death brings no relief

Dalit-colony: Segregated Dalits in Hachcholli of Koppal district. Pic: Savita Hiremath.

In Hachcholli, Dalit youths showed me some unsigned bearer cheques and a slew of unacknowledged petitions seeking relief for damaged houses. One unique case was Sathveerappa’s, whose mother Venkamma was the only villager washed away in the flash floods. Despite repeated pleas, the Rs.1 lakh compensation announced by the government was elusive. “When we asked for compensation, they said ‘what do we do if someone dies’? Later they told me to get a death certificate. Now they are not even ready to sign on it.”

When contacted, Siruguppa Tahsildar Geetha N R said she was not aware of such cases and would look into it personally. But she was quick to mention that these people were frittering away their time and relief money at arrack shops. Reacts Kowtal: “How long will this money last? Why can't the officials give cheques to the women if they are so concerned?”

Religious politics in full swing

If the system is dehumanising the Dalits over their identity, religious heads are trying to strip them of the same - the most unkindest cut of all.

Be it Marthamma, Ramesh, or Sathveerappa, the only thing that the floods could not take away from them is their identity. Not so anymore with religious forces in particular exploiting the situation under the guise of charity.

Kowtal says in Hulgunchi of Raichur district, local seer Ram Krishna Swamiji offered to adopt the village provided it is named after him. He also insisted that the victims deposit their relief money into his bank account and he would add his own to build a new colony. “These religious heads are trying to push us back into the same Hindutva mould we have been keeping at bay for centuries. Now we have to live in Hindu colonies and walk on Hindu roads. Back to 100 years - all over again.”

They feel the atrocities committed against Dalits so far were isolated and individual instances on certain people or villages. “But now they have it in bulk. This is an opportunity for the casteist people to put their deepest prejudices against Dalits to work and co-opt us by giving food and shelter when we are down on our knees.”

Kowtal is also critical of the state government’s willingness to involve RSS-backed Seva Bharati which allegedly left Muslims and Dalits out of its rehabilitation schemes after the Gujarat earthquake. “Basically it’s a casteist government and a majority of those who run it are also casteist. Obviously their interests are protected.”

On December 13, their nightmare came true with Chief Minister Yeddyurappa announcing that the shelters built by the Mutts and private firms would be named after them.

Suspended between the predicament of losing their identity and the nasty persistence of the bureaucracy, religious generosity to hem them into their own ideology, the plight of the dalits untangles many a sordid tale wound into a skein by the ravages of the floods.

Floods spared them, but not bureaucrats

Karnataka's bureaucracy eliminated what even the worst floods of the century spared. Patelgalli - a declared slum dominated by 500 Dalit families in Bijapur - will remember the October floods for a different reason altogether. The slum, perching on an elevated land, escaped the fury of the floods with minimal losses only to be flattened by three bulldozers, pressed into service by the district administration, in just 2-3 hours. The victims’ protests to save over 500 houses turned futile as did their efforts to salvage their belongings.

Led by police personnel alone in the conspicuous absence of bureaucrats, Ramesh says people were told to pack up within an hour to be shifted out of their 20-year-old dwellings. When they protested, they were lathi-charged, loaded into trucks, and dumped into sheds 9 kms away from Patelgalli - a barren land with no basic amenities including drinking water. “Initially, all the 4000-5000 people were forced to live in only 50 sheds of 10x10 size. They installed 60 more following our protest march. Nearly 4-5 families are living in one shed. One short circuit, and we will all perish,” adds Ramesh.

Kowtal and Ramesh, who met the District Commissioner Shantha Kumar along with thousands of protesters, say how the DC ticked them off terming it “orders from above” and washed his hands of saying he was on leave during the demolition. They feel the administration couldn’t think of a better time and excuse as the floods gave “an excellent opportunity” to push the Dalits over the edge.

Kowtal adds: “The entire operation was so swift and well-planned. No parallel arrangements were made nor enough time given to pack things up. What was the need for all this? Even if their version was true, it could have been handled in a humane manner.”

Privatising welfare?

Prof T R Chandrashekar of Hampi Kannada University, who led a team of seven intellectuals and research assistants to eight flood-hit districts, finds it quite beyond the pale to see religious groups and corporates manage relief operations on their own. While appreciating their indirect involvement, he argues that the victims will not be able to question anything even if something goes wrong. “This is our basic contention. The entire flood relief programme should be formulated from the human rights perspective. Not charity.”

He advocates involving local panchayats, human rights groups, and the victims themselves to design their own relief schemes. “If the private firms and Mutts are so compassionate, let them donate the money to the government. If people have to live with dignity, it should be the government’s concern.”

Adds Ramesh: “enough of pity. We don’t want to live on obligation forever.”

Savita Hiremath was formerly features editor at the New Indian Express.

January 27, 2010

mutual funds in india

I was crunching the Assets under Management figures of the mutual funds in India and here are the results (click on the images below to see them enlarged & clear):

January 26, 2010

life in general: truth helps, not hurts

'India protests BBC film as poverty porn', states the headline of a newsreport in today's edition. I read the newsreport and realise that it is self-defeating for my country's government to resort to objections of this kind. A British media series 'Grand Designs' sent its main main, Kevin McCloud, to Dharavi, a very large slum in the centre of Bombay.

Kevin stayed inside the slum with a local family, and made a film/documentary. Read some more about Kevin's film and experiences in another recent newsreport, that I have cut and pasted in its entirety below.

There must be at least 20 million staying in slums in cities and towns of my country. These Indian citizens would stand to benefit if the Indian government's politicians, bureaucrats and police force can just stop meting out injustices of various kinds.

The objection of Indian government includes the fact that Kevin had not disclosed accurately of his film while taking permit from the Indian High Commission in England. Well, if Kevin had disclosed the fact then he would not got the visa to travel to India at all. And, his film is not negative about the slum life. What happens inside the homes of many affluent Indians is also not necessarily clean and hunky dory.

Here then is Kevin talking about his experience in Dharavi:

http://www.telegraph.co.uk/culture/tvandradio/6952436/Kevin-McCloud-on-his-trip-to-India.html

Kevin McCloud on his trip to India
This Indian shanty town has Kevin McCloud rethinking some of his grand designs.
By Kevin McCloud
Published: 4:49PM GMT 08 Jan 2010

Imagine a town of a million people living in dark, cramped shanties and tenements. Their homes are rudimentary, tiny, spotless, with minimal sanitation. Five people inhabit each room. Every morning this industrious population rolls up its beds and in an instant transforms tens of thousands of living spaces into an informal network of freelance workshops, making and selling almost anything imaginable. This is the Mumbai district of Dharavi, Asia’s largest slum and the supposed setting for Danny Boyle’s Slumdog Millionaire.

But Dharavi is also an economic miracle, and its one square mile of shanties has a turnover of an estimated billion dollars. Plague, cholera and TB abound, but its citizens are among the happiest and most beautiful I’ve seen. If there were a world prize for best-dressed neighbourhood with special award for dazzling teeth it would go to Dharavi. When I went to film two programmes for Channel 4 about how Dharavi has organised itself, I felt the scruffiest person there.

Architects and urban planners are apt to celebrate Dharavi’s 80 neighbourhoods as a “proto-city”, in formation like an economic supernova. They like the chaotic, plan-free and dynamic way in which the people there organise their lives. Before I went I did not share their enthusiasm. I’ve always considered the design process as highly efficient and proven; the planning of space as important. Their enthusiasm begged the questions: what are the essential requirements for human beings to get on together and become happy? How dense can communities get? What, for that matter, is a community? Does privacy matter?

Kevin McCloud in a Mumbai shanty town
Kevin McCloud in a Mumbai shanty town Photo: Channel 4

I found surprising answers to these questions when I stayed with families in Dharavi. In the ramshackle potteries district, where potters set fires in fuming, open kilns right outside their front doors, I lodged with Veni Patel, her husband, Anand, and the 19 other members of their family. Grandma lumps pots and clay around their tin shack workshop cum living room cum bedroom; Monica and Akhshay go – immaculately dressed and coiffed – to local schools, funded partly by the economic success of Dharavi. Monica wants to be an air hostess; Akhshay could follow his cousin into IT or even his neighbour, Dev, who’s a banker.

The complex lifestyle of these extended families that reaches across not just Dharavi, but Mumbai (with which the slum has a symbiotic relationship), revealed how flexible people have to be when living cheek by jowl in such tiny spaces. We, meanwhile, take for granted things like a bedroom — in other words, a room with just one designated role. As a Dharavi social worker put it: “Virtually every home doubles up as a productive space. Work at home if you can afford it. If you can’t then live at work.”

Privacy in the West is linked to physical space whereas to the average Dharavian it resides in the mind. It has to. The threshold of the home, the point between public and private space moves throughout the day with the use of that space. The potters in the family will also invade the alleys and squares with trays of their freshly turned pots before firing, claiming public space as their own for a short while. Over here they’d be fined for causing a health and safety risk. There it’s just part of the give and take – sharing.

It is this give and take that allows people there to live together in such large numbers. We live far more formalised and rigid lives, insisting on immutable thresholds to our homes, on fetishistic levels of cleanliness, light and space that Veni Patel would find risible. And yet, if we’re going to be living low-carbon lives in low-carbon houses in Britain, we’re going to have to figure out some very extensive ways of being flexible: sharing the resources we have to make them last.

Sharing is something that families in Dharavi do very well. The family is also the nucleus of social life, meaning that its members may know other households around the square but be oblivious to residents just one street away. After all, why bother to get to know another streetful of people when 19 of your relatives live in your house – when those same relatives greet you at the end of a back-breaking day in the sweatshop with a smile? The family, it seems, makes a huge contribution to the overall happiness of people in Dharavi and in India in general.

These were all intriguing revelations perhaps too woven into life in Dharavi to translate into the sustainable and ecological housing schemes that my company, Hab, and others are trying to realise in Britain. But there are wider lessons to learn: from the way Veni’s family share the public realm outside their front door and graciously accommodate their neighbours’ needs; from the car-free life they lead in which everything they need is available within a five-minute walk; from the lack of interest in material excess in favour, perhaps, of time shared. Not all these can be designed into a newbuild British scheme, but they can be given an opportunity to take root and flourish, as they have done in other European model communities.

Meanwhile, as the social observer Robert Neuwirth points out, a billion people currently live in slum conditions. That’s a sixth or so of the world’s population. By 2050 it will be three billion, a third. If you want to know what the worldwide city of tomorrow is, Dharavi is it.
- Kevin McCloud: Slumming It is on Channel 4 on Thursday at 9pm

January 24, 2010

life in financial markets: fundamentals versus market prices

The financial system was in a deep crisis in 2008 and using taxpayers' money governments (including Indian government) rushed to bail out the banks and other investment firms either directly or indirectly. As a result, liquidity in the global financial system was very high in 2009 and that led to a 60-100% rise in equity prices worldwide.

I think the bailouts were un-necessary and will only encourage reckless leveraging and mis-behaviour among the large market participants.

Anyway, late last month (December 2009) I contributed a news analysis story on the Indian listed companies' fundamentals not keeping pace with the sharp rise in market prices. Last week has seen much-needed correction in stock prices but it is still not enough.

Here goes:

Will India Inc. chase the market rabbit?

Barring the scary late-October crash, the last three months has seen the stock market on an automatic gear driving the steady flow of foreign institutional investor (FII) investments. But the second half of this month (i am referring to January as readers would be reading our new issue not before 1/2 Jan) will see fundamentals come in to the limelight once again as the listed companies' financial results for the December 2008-ended quarter start pouring.


Valuation of stocks by FIIs and domestic institutional investors have risen sharply and sustained ever since net profits and earnings per share rose sharply in the last quarter of the 2008-09 financial year.


The Price to Earnings ratio of the 50-stock S&P CNX Nifty index shot up by 40% during April-June this year after the previous quarter's (January-March 2009) Nifty stocks' aggregate EPS grew by a healthy 7.8% over the October-December 2008 quarter (see table) and aggregate net profit grew by a hefty 28% in the same period.


(click on the image to see it enlarged & clear)

The first two quarters of the current financial year (2009-10) have bought out the difficulties India Inc is having in sustaining high growth in profits as they stuttered. Yet the Nifty P/E has continued crossing 23 on Christmas eve. In the last five years (see graph below) it had peaked at 27.9 on 11 January 2008 before the big crash of that year. Global liquidity has prevented prices from falling but it has also meant that valuations have got stretched.


"What we believe is that that most of the consensus earnings upgrade forecasts for next 2 years is based on looking at sharp revival of growth in second half of the current financial year and that is why the December 2009 quarter figures will be watched very closely," says Gaurav Dua, head of research at Sharekhan. Dua is clear that these results will not only have to meet Dalal Street's expecatations but also be much ahead.


(click on the image to see it enlarged & clear)

That the Indian equity market, like a few other emerging markets in Asia, has always been considered expensive have never deterred FIIs. "Global investors focus more on their confidence back home in their western economies and if that is good they come to emerging markets notwithstanding high P/E ratios," says Saurabh Mukherjea, Bombay-based head of India equities at Noble Group.


But if corporate earnings falter, or do not meet street expecation, then any liquidity-driven sustained rise in prices will lead to the Nifty P/E touching stratospheric leves of 25 and above. In its October 2009 India Strategy report, Enam Securities had looked at what can happen next and indicated that the Indian market would see a sharp upward spike "if global liquidity continues to seek strong domestic growth and 'thematic investing' starts overlooking valuations."


The suspense will be over once the Q3 results start coming in.