Price pooling of coal is a bad ideaThe decision by the Cabinet Committee on Economic Affairs to, "in principle", approve the price pooling of imported and domestic coal to be supplied to power plants may be described as a temporary step, but is nonetheless one in a dangerous direction. The details are yet to be worked out  they need to be "fitted to the principles" according to one report  but the choice now, essentially, is between a bad outcome and a terrible outcome.The terrible outcome, one that would further dent India's credibility as a state able to enforce contracts, is if those who had set up power plants that depended on a particular price of imported coal are in essence handed a bailout by the government. It is worth remembering that about 15 per cent of India's coal requirement is currently met through imports. In recent times, major coal suppliers  particularly Australia, Indonesia and Mozambique  have in various different wa

A step backward

Business Standard

LAST WEEK WE ASKED:  Do you think vacancy of seats in B-schools will be a long term cause of worry amid rising number of management institutes?

Student's corner

Former Rajasthan chief minister Vasundhara Raje might have been made the state president of the Bharatiya Janata Party but her past experiences have made her realise that the state unit is riddled with differences. To unite the state leaders, Raje has coined a new slogan before the Assembly elections â€” â€œEk Jut Bhajpa, Congress Lapataâ€.

Unity is strength

Home Minister Sushilkumar Shinde was close to becoming a huge embarrassment for the ruling United Progressive Alliance government with his repeated gaffes â€” the most damaging being his â€œHindu terrorâ€ remark at the partyâ€™s crucial â€œChintan Shivirâ€, where he accused the Bharatiya Janata Party and the Rashtriya Swayamsevak Sangh of running terror camps. The political fallout of his remark was such that the government had to spend the next few weeks trying to defend the minister. Therefore, it came as no surprise that the home minister of late has been a bit off colour â€” he even refused to respond to questions on the governmentâ€™s inaction on Vishwa Hindu Parishad leader Praveen Togadiaâ€™s hate speech. Unconfirmed reports also said Shinde had been pulled up by the party high command. Against this background, Afzal Guruâ€™s hanging has come as a much-needed shot in the arm for the beleaguered home minister.

Political gaffes

In capital market which lives in the instant, five years is a long time. But in the long life of a stock exchange, which is usually built for the eternity, time can shrink; more so when you look back. A journey that began in 2008 will conclude for MCX Stock Exchange (SX) in Mumbai today as Finance Minister P Chidambaram flags off equity trading. Another one will begin as a Motilal Oswal report expects SX to capture a quarter of the equities market by 2015. Not very long ago, this day seemed very far away as it was engaged in a bitter and protracted legal battle with Sebi over ownership issues. A look at the rugged road SX rode and the one that lies ahead for it

A bourse is born

India's farm trade policy must strike a balance

Knee-jerk reactions won't do

The UPA's mismanagement of the economy laid bare

Down to five

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) may turn member-less next week. It has already been headless for over two months now. The tribunal, which was set up under Section 14 of the Telecom Regulatory Authority of India (Trai) Act, is meant to protect the interests of service providers and telecom consumers. TDSAT must have a chairman and two members, according to the Trai Act. But it functioned with just a chairman and one member for several months. Then, since the last chairman, S B Sinha, retired in November 2012, only one member (technical), P K Rastogi, has been holding the fort. But his term ends on February 16. Although the TDSAT site is flashing tenders for hiring housekeepers and cleaners and a notice for appointing a joint advisor on deputation basis, thereâ€™s silence on the top jobs at the tribunal that came into being in May 2000.

TDSAT: Blank call

In Indian courts, as elsewhere, people are required to stand up when judges walk into the courtroom. But even though heâ€™s not a judge, lawyer Ram Jethmalani appears to enjoy a spontaneous stand-up when he enters a courtroom. Arguing for bail for an accused in the Sohrabuddin encounter case recently, there were many who had come to the Bombay High Court only to hear him. So when he entered after lunch, several senior lawyers and their juniors stood up. The hustle caused in the courtroom gave the impression that the judge had walked in after the lunch break, as a result of which some petitioners started rising from their seats as well.

A stand-up act

As the Budget nears, questions on expectations from the finance minister are put to all and sundry, whether they are businessmen and economists or not. One unlikely candidate was actor Kareena Kapoor-Khan, who was asked what she expected from the Budget at her book launch event in Mumbai on Wednesday. Initially, Kapoor-Khan appeared surprised at the question and then said, â€œI am only concerned about the budget of my films. As long as they make money, I have no complaints.â€

Budgeting for the box office

This refers to the report â€œSteel policy on cards to iron out woesâ€ (February 5). A new steel policy was long overdue owing to the recent and not-so-recent issues, including land acquisitions, mining rights and enviornmental clearances, taking a toll on the industryâ€™s growth rate. With India expected to become the second-largest producer of crude steel in the world by 2015 and the capital-intensive nature of the steel industry with a long but lasting realisation cycle, due attention must be given to dispose of problems hindering its progress.M L Kabir, KolkataLetters can be mailed, faxed or e-mailed to:The Editor, Business StandardNehru House, 4 Bahadur Shah Zafar Marg New Delhi 110 002 Fax: (011) 23720201  Â·  E-mail: letters@bsmail.inAll letters must have a postal address and telephone number

Letters: Much-needed steel policy

This refers to Aditi Phadnisâ€™ column â€œJat pride & Chautala dilemmaâ€ (Plain Politics, February 2). Convictions and arrests of Om Prakash Chautala and his eldest son Ajay Chautala of the Indian National Lok Dal (INLD) have left Haryanaâ€™s political circles shocked. They may not be able to contest in the coming Assembly or Lok Sabha elections but it makes one wonder whether the INLD will now float on a sympathy wave and whether non-Jats will also turn against the Congress. The developments will be watched with interest. The incident also reinstated that Indian politics till date is structured around caste.Jacob Sahayam, ThiruvananthapuramLetters can be mailed, faxed or e-mailed to:The Editor, Business StandardNehru House, 4 Bahadur Shah Zafar Marg New Delhi 110 002 Fax: (011) 23720201  Â·  E-mail: letters@bsmail.inAll letters must have a postal address and telephone number

Letters: Caste-based politics

Apropos Mihir S Sharmaâ€™s column â€œSRK, HMâ€ (Ticker, February 3), the writer seems to favour virtually unfettered freedom of expression for people. However, in a democracy like India, this could spell chaos. Article 19 (2) in the Constitution makes people accountable for their use of the freedom of expression, and sets a limit to the grounds of actions taken by those offended. These restrictions appear unduly reasonable because of its misuse by protestors and the failure of the State to curb them. Ironically, these protestors are a small group of vociferous elements masquerading as representatives of their communities. Moreover, as the writer indicates, the State is selective in its role as â€œenforcerâ€ and â€œprotectorâ€ of free expression. It shows its might in targeting peaceful citizens, angry with the brutal rape of a young woman, with water cannons, but bans a movie cleared by the Censor Board, instead of hauling them up for infringement of law and peace.Y G Ch

Letters: Restricting free expression

This refers to the report â€œOne step ahead, two steps backâ€ (February 3). While businessmen are eyeing opportunities of Indo-Pakistan trade wistfully, recent tensions on the Line of Control have been a dampener. The 65-year-long hostility between India and Pakistan has only brought losses and miseries to both sides â€” but more so to Pakistan. Nevertheless, because this hostility increases the relative importance of the Pakistan Armed Forces and the Directorate for Inter-Services Intelligence (ISI), it may not be easy for Pakistan to give up. The Armed Forces and ISI may be hoping that the coming US withdrawal from Afghanistan will increase their importance in the region in the eyes of the US â€“ and thereby increase their strength relative to Indiaâ€™s â€“ though itâ€™s hard to imagine in what manner. If so, all that India can do to improve relations is to wait patiently (in line with what it has been doing in the past) for such pipe dreams to subside.Alok Sarkar,  Kolk

Letters: Pakistan's 'pipe dreams'

Sector-wise allocations in January 2013Software & services sector attracted the most investments, accounting for 33.33% of the total investments in terms of deal volume with an aggregate of $20.21 million. Healthcare equipment & services sector was second, attracting $29.64 million (13.33%) across six deals. (Click on graphic)

A Snapshot of pe activity & deals

Nearly all categories of luxury goods (fashion apparel, shoes, watches, jewellery and perfumes) saw an increase in demand. Of the total money spent on these luxury goods, jewellery still remains the biggest across income categories. However, the mean value of purchase went down in each category other than jewellery. This is exactly the opposite of 2011, which saw people buying more expensive items, according to the India Consumer Survey 2013 by Credit Suisse

Luxury goods: Value of purchases  down

Spectrum sharing should be the next stepBharti Airtel, the countryâ€™s largest telecom services company, has decided to buy out Alcatel-Lucentâ€™s 74 per cent stake in Alcatel Lucent Managed Network Services India, the company that manages its all-India broadband and fixed-line network. After the buyout, Bharti Airtel has said, it would share this network with other companies. These companies could also pick up a stake in this network. To what extent others might be interested is not clear. Reliance Communications recently signed a network outsourcing deal with Alcatel. Vodafone and Idea Cellular have a limited presence in broadband and fixed-line telephony and, therefore, may not be too enthusiastic about joining in. And state-owned BSNL and MTNL may shy away from participating in the equity of such a venture.Still, this is a clear indication of the shape of things to come in a sector that is struggling with falling profits and rising costs. Tariffs in India ar

Telcos share infra

Film actor Priyanka Chopra got an endorsement for her singing talent from an unexpected quarter â€” Kiran Mazumdar-Shaw, chairperson of Biocon. Mazumdar-Shaw, who is probably one of the most prolific tweeters in the Indian business community, says she watched Chopraâ€™s latest music video â€œIn My Cityâ€. And, she says, Priyanka can be Indiaâ€™s Kylie Minogue, the Australian actor and hit singer. Thatâ€™s certainly a big boost for Chopra whose acting career appears to be in limbo.

India's Kylie

The 7th Brand Summit held in Bangalore on Tuesday revealed an unknown facet of Bhaskar Bhat, managing director of Titan Industries, to the general public. Introducing him, the emcee said Bhat was a good mimic and had won many accolades for it in his student days. One of the speakers, a retired Indian Administrative Service officer K Jairaj, turned to Bhat and asked: â€œWill you display your talent now to the public?â€ Pat came his reply: â€œI wonâ€™t do it for nothing. How much will you pay me?â€ drawing laughter from the audience.

Copy that

The desire to own a VIP mobile number can sometimes prove costly â€” especially if it was formerly used by a celebrity. About two years ago, a senior police official got himself a VIP number and has regretted it since. To date, he is inundated with phone calls from celebrity magazines and newspapers seeking for comments on social issues from the Mumbai-based socialite-columnist who previously used the number.

Wrong number

This refers to the editorial â€œCharge of the think tanksâ€ (February 1). The entry of world-class think tanks in India far from being a â€œworrying developmentâ€ is a positive augury for the  development of the sector. The fear of â€œunequal competitionâ€ between foreign and Indian think tanks  is pure Luddite and needs to be scotched at its first sight. If Indian think tanks have earned their reputation of being septic tanks, the protectionist attitude is only to worsen the situation. Continuing the logic to its logical end, oppose entry of foreign educational institutions, foreign law firms, and so on. Should we then be prepared to remain content with the Hindu rate of growth? And why should we worry about competition, when the competition watchdog is in place?K D Singh  New DelhiLetters can be mailed, faxed or e-mailed to:The Editor, Business StandardNehru House, 4 Bahadur Shah Zafar MargNew Delhi 110 002Fax: (011) 23720201E-

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