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Modi's 'maan ki baat' turns into 'dil ki baat' with Obama

Written By Unknown on Sabtu, 31 Januari 2015 | 23.24

R Jagannathan
Firstpost.com

After the morning's pregnant-with-hidden-meaning remarks by Barack Obama on the need for religious tolerance in India, the evening's�Mann ki Baat�featuring him and�Narendra Modi�turned into a veritable love-fest between a US President and an India's Prime Minister.

Efficiently RJ-ed by Modi, the Tuesday night radio programme was carefully choreographed to focus on softball issues that few could misinterpret. It was converted into a veritable�Dil ki Baat�rather than just a�Mann ki Baat.�Not surprising, since� Obama had already spoken what was on his 'mann' at Siri Fort , a� speech that was read differently by Modi baiters and Modi bhakts .

But Modi had no intention of turning his pet programme into a controversial discussion on all kinds of ideas. He deftly anchored the discussion away from hard political topics to gooey, sentimental stuff that could not go wrong.

This is not to cynically dismiss the�Mann ki Baat�as just goody-goody stuff, for we got nuggets of info about Modi that we have never heard of before. Throughout the programme, Modi played generous host to Obama's courteous guest.

Despite the elaborate answers from Obama on everything from bringing up daughters to dealing with obesity to what inspires him to the role of today's youth in a globalised world, it was Modi who dominated the radio show by bringing in his own heroes, his own anecdotes, and generally presenting us with his softer side. This is not the side we usually get to see of�Modi.

His reason for bringing out the soft stuff is best explained in his own words: "If we discuss what comes from the heart, and repeat it, hum it, we get a new energy."�(Read the full transcript of their conversation�here).

Modi's research team obviously must have done some homework before the programme, for he began by trying to give us the meaning of Barack. He said: "In Swahili language, which is spoken in parts of Africa, Barack means one who is blessed. I believe, along with a name, his (Obama's) family gave him a big gift."

The reference to Barack's African lineage allowed him to link an Upanishadic idea with an African one. "African countries have lived by the ancient idea of 'Ubuntu', which alludes to the 'oneness in humanity'. They say, 'I am, because we are'. Despite the gap in centuries and borders, there is the same spirit in�Vasudhaiva Kutumbakam�(the world is one family), which (we) speak of in India. This is the great shared heritage of humanity. This unites us."

When he lobbed the ball to Obama, the latter talked about how Modi and he were making "a lot of history in a short time." It was a reference not only to the India-US nuclear and other agreements of the previous two days, but also to the fact that this was the first ever visit by a US president on Republic Day, and the first-ever joint radio programme involving two top leaders of the world's biggest democracies.

A subtle difference in how Obama and Modi saw the world was the former's efforts to bring in god into the conversation. At Siri Fort, where Obama talked of the need for countries to ensure religious freedom,� he had referred to his Christian faith . He said: "In our lives, Michelle and myself have been strengthened by our Christian faith." In�Mann ki Baat, Obama exhorted everyone to "endeavour to seek God through the service of humanity because God is in everyone."

Modi, despite references to Swami Vivekananda, Mahatma Gandhi and Upanishadic ideas, made no direct references to God. Americans apparently need God more than Indians, despite the ubiquity of temples and mosques in India.

Also interesting was Modi's choice of heroes. He mentioned Henry David Thoreau, who inspired Gandhi's civil disobedience movement, John F Kennedy (Modi liked his personality), Martin Luther King, and, most importantly, Benjamin Franklin, one of the founding figures of America, author, politician, scientist and many other things. Modi had an epiphany after reading Franklin's biography. "I find his life truly inspiring. And I tell you too, if you read his biography, you will find ways to transform your life too."

What Modi liked about Benjamin Franklin was his ability to talk about everyday issues and how to deal with them. Questions like: "If we feel excessively sleepy, how can we reduce that? If we feel like eating too much, how can we work towards eating less? He has addressed such issues in his biography. And I tell everyone, we should read Benjamin Franklin's biography. Even today, it inspires me."

What Modi and Obama found they had in common was their humble origins, with both recounting the time when they looked at the White House from the outside, little imagining that one day they would both meet inside it. One of the listeners to the radio programme apparently remarked that he had seen a photo of Modi standing outside the White House when he had gone there as a tourist. The photo apparently shows Modi looking at the White House from outside an iron fence.

It gave Modi an opportunity to relate a story about Obama's gift to him when he went to the White House last September as an official guest. "When I visited the White House, one thing touched my heart. I can never forget that Barack gave me a book, a book that he had located after considerable effort. That book had become famous in 1894. Swami Vivekananda, the inspiration of my life, had gone to Chicago to participate in the World Religions Conference. And this book was a compilation of the speeches delivered at the World Religions Conference. That touched my heart. And not just this. He turned the pages of the book, and showed me what was written there. He had gone through the entire book! And he told me with pride, I come from the Chicago where Swami Vivekananda had come."

Relating the incident also allowed Modi to repeat his favourite phrase that becoming Prime Minister was never his goal. He said: "For a long time, I have been telling everyone, never dream of becoming something. If you wish to dream, dream of doing something. Don't dream of becoming something, dream of doing something."

Obama, for his part, also talked about his own outside-in look at the White House in his youth.

"When I first went to the White House, I stood outside that same fence, and looked in, and I certainly did not imagine that I would ever be visiting there, much less living there. You know, I think both of us have been blessed with an extraordinary opportunity, coming from relatively humble beginnings. And when I think about what's best in America and what's best in India, the notion that a tea seller, or somebody who's born to a single mother like me, could end up leading our countries, is an extraordinary example of the opportunities that exist within our countries."

The only hint of�Mann ki Baat's�tangentially political messaging came when Modi talked about Communism in the past tense. He said: "Once upon a time, there were people inspired primarily by the Communist ideology. They gave a call: 'Workers of the world, Unite.' This slogan lasted for several decades. I believe, looking at the strength and reach of today's youth, I would say, 'Youth, Unite the world'. I believe they have the strength and they can do it.

That's as subtle a put-down of the Left as you can get.

The writer is editor-in-chief, digital and publishing, Network18 Group


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See further softening in interest rates: Chanda Kochhar

From the sidelines of the World Economic Forum at Davos, Chanda Kochhar, MD & CEO of ICICI Bank , says India is at a point where most of the macroeconomic indicators are positive and it is time to capitalise on all the potential that the country has.

When asked on her view whether the Modi government would deliver on its promises, she was optimistic that Narendra Modi would deliver.

On the interest rate front, she expects further softening, which would be good for the whole economy.

Below is the transcript of Chanda Kochhar's interview with by Susan Li & Geoff Cutmore

Li: We spoke earlier with the State Bank of India chairwoman and she said because of this unleashing, more easing and business stimulus from the ECB - is good for India, your thoughts?

A: Of course it is. The more the liquidity in the market, I think that is good for India but what is of course required for India is to maintain its investment climate so that it continues to remain a great investment destination.

Cutmore: Is Narendra Modi going to deliver? That is the question I keep hearing here, a lot of people are very optimistic about India and there does seem to be a rerating going on here but at some point we are going to have to see some real concrete evidence of reforms?

A: Definitely I think he is going to deliver and I think that direction is correct - everything all the policies that he has articulated are growth friendly, they are business friendly. And also it is not that no action has taken place, a lot of small action has taken place, a lot of opening up of the foreign direct investment (FDI) in various sectors has taken place. So I think a lot of the decisions have already been announced but yes, the impact of all those on the real economy always takes a little bit of time.

Li: So you have two months to go until he finishes off his first year in office but I would say there has been a bit of a flip-flopping from Modi because when he was the head of Bhartiya Janata Party (BJP) and there was another administration in office, he was against introducing goods and services tax (GST) but now he said okay we are going to introduce the GST in India.

A: I think GST is very good for the economy. If it gets implemented, it can add almost one percent to the GDP. GST rationalises taxes. So overall it brings about efficiency in taxes and that is how it adds to the gross domestic product (GDP). So I think it is good for the entire economy as a whole.

Cutmore: Modi has got a wonderful opportunity here because India as a buyer of energy is going to see tremendous benefits from this declining oil price. So if not now then it will be a missed opportunity.

A: Yes, I think in that sense everything is working well for India because we have never seen oil prices being what they are and it has a huge positive impact on India but if you look at it even from the various macroeconomic indicators point of view, India is very well placed. So you are right, this is the time for us to capitalise on the potential we have but we are on the right track.

Li: What about rate cuts because we have got that just as a surprise move from Governor Rajan and some say this is just only beginning because we might be in this deflationary spiral because of the weaker oil price?

A: But in India I don't think it was a surprise move. People were waiting for the rate cut, it was quite anticipated and in fact the 25 bps cut that has happened, it is just the beginning. We should see some more softening of interest rates taking place and I think that is going to be good for the economy.

Cutmore: What does it mean for your business specifically because I know the analysts that have looked at have talked about net interest lending margins could be bigger, could be a bit fatter but will that be easy in a market place where interest rates are coming down?

A: No, I think we should expect that net interest margins would be maintained because gradually cost of funds would come down and the banks would pass that on to the consumer so it should neither expand nor shrink.


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Prabhu pitches for greater investments in Railways

Suresh Prabhu said that Railways' financial health is not good and there is an urgent need of increased investments in the areas of modernisation, safety and security of passengers. "We have decided to increase investment in Railways... We have also decided to connect with various states for this (investment).

Railway Minister Suresh Prabhu pitched for greater investments in railways and said development in the sector will help the country grow. The minister was here to flag off two new trains - Ahmedabad-Chennai bi-weekly express and Ahmedabad-Darbhanga Jansadharan express. He also launched Wi-fi facility at the city railway station.

"It is a matter of pleasure for the country that our economy is on the path of improvement and progress. With this, responsibility of Railways has also increased. We need to work on many levels," said Prabhu.

He said that Railways' financial health is not good and there is an urgent need of increased investments in the areas of modernisation, safety and security of passengers. "We have decided to increase investment in Railways... We have also decided to connect with various states for this (investment).

Railways will fulfil the needs for Gujarat's development as well. I will discuss with the Chief Minister on how to work on larger scale for improvement," he said. Prabhu later met with Chief Minister Anandiben Patel.

The minister also claimed that Railways was priority of the Prime Minister Narendra Modi-led government and the sector can contribute to his mantra of 'Sabka Sath, Sabka Vikas' (participation of all for development of all).

"Development of Railways is on the priority list of our Prime Minister. If railways develop, economy will also be strengthened... and GDP (of the country) will also rise by 2-3 per cent. Though our GDP is growing today, with much efficient railways system it will grow rapidly," he said. The minister said further development in the sector will also create jobs for youths.

Prabhu appealed to people to join Modi's flagship 'Swachh Bharat Abhiyan' and said the mission is associated with country's identity.


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IOB to raise Rs 1k-cr to augment additional Tier-1 capital

"Indian Overseas Bank has launched an issue of unsecured, non-convertible, additional Tier-I, basel III compliant perpetual bonds to the extent of Rs 1,000 crore, including an option of Rs 300 crore to augment additional Tier-I capital", the Chennai-based bank said in a statement.

Public sector Indian Overseas Bank plans to raise Rs 1,000 crore to augment the additional Tier-I capital and also to strengthen its overall capital.

" Indian Overseas Bank has launched an issue of unsecured, non-convertible, additional Tier-I, basel III compliant perpetual bonds to the extent of Rs 1,000 crore, including an option of Rs 300 crore to augment additional Tier-I capital", the Chennai-based bank said in a statement.

Tier I capital is core capital and includes equity capital and disclosed reserves.

The Bond will have a face value of Rs 10 lakh per bond and carry a coupon rate of 10 per cent per annum payable annually.

The bond issue was opened on January 23 for subscription and would close on February 4, 2015, it said.


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Does secular socialist have any meaning in constitution?

R Jagannathan
Firstpost.com

The� two missing words (secular, socialist) �in the Information and Broadcasting (I&B) ministry's advertisement featuring the Indian constitution's preamble, whether through default or design, have served two useful purposes. One is to underline the pointlessness of having them in the preamble in the first place when no government feels constrained by their presence; the other is the reality that these words were not part of Babasaheb Ambedkar's well-thought-out original constitution adopted by the constituent assembly. We need to acknowledge that they were not intended to be there at all even if we don't now do anything to remove them.

To take the second point first, Minister of State for I&B, Rajyavardhan Rathore, said the "photo of the original preamble was a way of honouring the founding fathers of the constitution". He slipped in the fact that these changes were inserted in 1976. That was the second year of Indira Gandhi's infamous internal emergency, and the preamble was modified purely for political purposes.

It is doubtful if these changes could have been made without sending most of the opposition to prison. Mrs Gandhi packed off all major political leaders - from the right-wing Jana Sangh (today's BJP) to the various Socialists and the Left - to jail and passed these and several other constitutional amendments in a handcuffed and tongue-tied parliament. So, in a sense, the amendments went against the spirit of the constitution as all major freedoms guaranteed by Ambedkar's constitution were brutally suppressed at that time. The courts were running scared and the media was in chains when these words were incorporated. Their presence was thus an immoral, if not illegal, entry in the statute book.

In today's world, it is unlikely that these constitutional amendments would have passed legal muster for the simple reason that they were passed when both houses of parliament had been gagged. Even ordinary bills cannot be passed if the houses are not in order (hence the recent Rajya Sabha logjam); so can major constitutional amendments be passed when key members were sent in jail?

The reason why "secular" and "socialist" were inserted in 1976 is worth retelling. With leaders from all ends of the political and social spectrum in jail – ranging from the right-wing RSS and Jamait-e-Islami, which were banned, to various caste-based Lohia-ite, Socialist and Left factions - the government's actions clearly lacked legitimacy. They would have been opposed both by left and right. The word "secular" was inserted to validate the action of sending "communal" leaders to prison and banning their organisations; and the word "socialist" was intended to similarly justify the incarceration of the left. Indira Gandhi bunged in these two words to justify her undemocratic actions against leaders from right to left.

Take the word "secular". What extra idea does the insertion of this word convey when Ambedkar's preamble already guaranteed Indian citizens "Liberty of thought, expression, belief, faith and worship..." among other things. Does the word secularism add one iota of extra freedom to the basic idea of liberty of belief and faith as enunciated in the pre-1976 preamble, and additionally expanded on by article 25 of the constitution, which guarantees "Freedom of conscience and free profession, practice and propagation of religion"?

Of course, with the BJP in power today, it suits the party's political opponents, many of them descendents and proteges of some of the leaders jailed by Indira Gandhi, to pretend that they want "secular" and "socialist" to remain in the constitution. In fact, some constitutional experts now claim that these words can�never�be removed since they form part of the "basic structure" of the constitution that has been upheld by the Supreme Court. Arvind Datar is quoted in� The Economic Times �as saying that "not even a government which wins 543 out of 543 Lok Sabha seats can change this."

This view is probably wrong, for it is fanciful to pretend that elements that were never there in the original constitution can suddenly become part of the "basic structure". It beggars reason why a "basic feature" force-fitted into the preamble 26 years after the country adopted Ambedkar's constitution cannot tinker with it 39 years later.

However, it is not important to change what does not make a difference to how the state conducts social and economic policy. The insertion of the word "secular" did not prevent Rajiv Gandhi from overturning the Shah Bano judgment or offering Haj subsidies and quotas on the basis of religion. Nor did the insertion of the word "socialist" prevent Narasimha Rao from moving away from socialism in 1991 or the Vajpayee government from privatising public sector companies.

The words "secular" and "socialist" have been robbed of all meaning in the Indian context. They are two nonsensical terms inserted by the whims of an autocratic PM, and they remain there on the whims of an intellectually-bankrupt political class.

We need expend no further energy on words that mean nothing.

The writer is editor-in-chief, digital and publishing, Network18 Group


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Obama's speech: Gap between what is said what we heard

R Jagannathan
Firstpost.com

The big question we must ask ourselves when we discuss President Barack Obama's Siri Fort speech on January 27 is this: did we all hear the same speech? Or did we dissect it according to our individual biases?

If one were to take a look at the buzz on social media, the traditional Modi-baiters saw in Obama's speech, and especially his message of religious tolerance and diversity, as an oblique criticism of the government and its Parivar backers. Thin-skinned Modi-bhakts were upset that Obama gave us a lecture on secularism when America is far from being a just society.

In fact, what we try to read in Obama's speech – or, for that matter anybody's speech – tells us more about ourselves than about the person delivering it.

Those who believe that Obama had the Sangh Parivar in mind when he talked about "freedom of conscience and….. right to freely profess and practice and propagate religion" should also ponder another sentence: "In both our countries, in all countries…freedom of religion is the utmost responsibility of the government but also the responsibility of every person."�(Read� here �and� here �for some of Obama's Siri Fort quotes).

He said�both�countries, not only India. He was probably thinking aloud about freedom of conscience, which is endangered everywhere, including America, where Christian fundamentalists are busy demonising Islam.

His intent became clear when he mentioned the� Sikh Gurdwara massacre in Wisconsin .�The fact is the US and Europe probably house more Islamophobes than India. Obama himself has been the victim of a bitter Christian right-wing smear campaign that which saw him as a closet Muslim, thanks to his middle name "Hussain."

On the other hand, the internet Hindus on twitter seemed to recoil with a guilty conscience on his call for religious freedom. One wonders why. "Ghar wapsi" is nothing if not an effort to reconvert people who left the Hindu faith, and surely freedom of religion applies as much here as in the reverse. Surely, Obama could not have meant a one-way freedom of conscience and religion. He may not back "ghar wapsi", but it is logically implied when he said article 25 of the Indian constitution guarantees "the right to freely profess and practise and propagate religion."

Then again, Obama said this: "Every person has a right to practice the faith that they choose and�to practice no faith at all�and to do so free of persecution, fear or discrimination." What is objectionable in this? There are, arguably, more critics of atheism in god-fearing America than in India. Heading towards Saudi Arabia from India, Obama could have been referring to that kingdom's complete absence of freedom of religion and the death sentence for apostasy. Atheism and agnosticism have never been issues in Hinduism, and Buddhism and Jainism are essentially non-theistic faiths. So where did he really criticise us for Modi-baiters to get ecstatic about it?

Or take his reference to diversity. Obama said "our�diversity is our strength" and cautioned both India and the US to guard against sectarianism.

Note: the operative word is "our". He did not say diversity is only America's strength, but of both countries. It's a compliment to us. He also expanded on this theme: "IfAmerica shows itself as an example of its diversity and the capacity to live and work together in common effort and common purpose, and�if�India, as massive as it is with so much diversity, so many differences, is able to continuously reaffirm its democracy so that is an example for every other country…That's what makes us world leaders."(Italics mine)

Here Obama is essentially applauding India's diversity in the past and exhorting it to remain so in the future. Note the "if" in both sentences. He is essentially saying that both US and India are great countries only "if" they can retain their diversity and keep sectarian differences at bay.

We know that the US is hardly the exemplar in racial justice, as the recent� riots and violence over the shooting of a Black youth �by the Ferguson (Missouri) police prove. It is hardly likely that Obama had just Sadhvi Niranjan Jyoti or Sakshi Maharaj or the RSS's efforts to call India a Hindu nation in mind. US right-wingers call America a Christian nation – a nation where� nearly half the population believes �that Darwin was off his rocker by giving us his theory of evolution when, in fact, God created the world through "intelligent design." Religion and the narrowness of religious beliefs is as much a problem in America as in India.

About India specifically, Obama said: "India is defined by diverse cultures, creed, languages. When we were born, people who looked like us couldn't even vote in our country. There were times when I was treated differently because of the colour of my skin. My grandfather was a cook in the British army. Branches of Michelle's family were slaves as well as slave-owners. A young boy delivering lunch on a bicycle, a young girl hauling a bucket of water. Even as we live in a world of inequality, a tea-seller can become Prime Minister. Everyone has a chance."

Does this remotely sound like Obama was just giving us a lecture on how secular and just America is superior to communal India?

Then Obama talked about women's empowerment, the girl child, and safety. We could take this as mild criticism of us, given our daily news fare of rape and sexual harassment. Or we could take it as a challenge we all need to meet. He said: "Every girl's life matters. Every daughter deserves the same chance as our sons. Every woman should be able to go about her day...and be safe and be treated with the respect and dignity that she deserves."

This is hardly something to take amiss, when our own Prime Minister talked about the same issues on I-Day and there is now a�Beti Bachao, Beti Padhao�scheme on the anvil.

On climate change, he said what needed to be said: that we have to learn to grow with far less use of fossil fuels than before. Who can argue with that?

The moral of the story is simple: what we got was a heart-felt message from the US President, but we read it as a condemnation of Modi or the Sangh parivar. It goes to prove a basic human truth: there is a gap between what is said and what we choose to hear.

The writer is editor-in-chief, digital and publishing, Network18 Group


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Report card: 10 things that made or baked your money in January

SLIDESHOW

Sat, Jan 31, 2015 at 17:15

| Source: Moneycontrol.com

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.


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Grasim Industries reports Q3 net profit at Rs 333.61 crore

The company reported consolidated net sales of Rs 7,888.53 crore in October-December period as against Rs 7,063.43 crore during the same quarter of last financial year.

Aditya Birla Group firm  Grasim Industries today reported a consolidated net profit of Rs 333.61 crore for the third quarter ended December 2014. The company had posted a consolidated net profit of Rs 331.93 crore during the same period of previous financial year, Grasim Industries said in a filing to the BSE.

The company reported consolidated net sales of Rs 7,888.53 crore in October-December period as against Rs 7,063.43 crore during the same quarter of last financial year.

The consolidated revenue from its Viscose Staple Fibre (VSF) and Wood Pulp segment was Rs 1,607.26 crore during the quarter under review as against Rs 1,613.45 crore in the same period of last fiscal. Its consolidated revenue from cement division was Rs 5,947.15 crore this quarter. It was Rs 5,169.59 crore in third quarter of FY14.

Revenue from chemicals division was Rs 441.63 crore this quarter as against Rs 259.73 crore in same period last fiscal. Grasim Industries said "figures for the quarter and nine months ended December 2014 are strictly not comparable with previous periods" due to merger of Gujarat cement units of Jaypee Cement with UltraTech Cement , a subsidiary of the company. On the company's performance, Grasim Industries said: "Implementation of growth plans led to significant capacity increase in both VSF and cement businesses.

At the greenfield VSF project at Vilayat, 99K TPA capacity has been commissioned during the year. With acquisition of Jaypee cement units in Gujarat, the cement capacity increased by 4.8 million." On the outlook, the company said VSF sector will continue to face headwinds for some more time due to over capacity and sharp reduction in price of cotton and polyester. Moreover, cement segment would grow as demand growth in the long term is likely to be over eight per cent.

"With additional capacity coming on stream in both the businesses, the company will further consolidate its leadership position," it added.


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Spectrum cannot come cheap, it is super-scarce resource

R Jagannathan
Firstpost.com

The Union cabinet's decision to keep the� reserve price for 3G spectrum at Rs 3,705 crore per Mhz �in the 2,100 Mhz band for auctions scheduled to begin on 4 March is probably the right call. One says probably because no one can predict where prices will go in an auction, or whether the reserve prices are too high or too low. The new reserve price is 35 percent higher than what the Telecom Regulatory Authority of India (Trai) had recommended - which Rs 2,720 crore per Mhz. The Telecom Commission recommended a raise, and this is what the cabinet has now approved.

Predictably, the telecom industry is miffed, with Rajan Mathews, Director-General of the Cellular Operators Association of India (COAI), saying that the Trai price was more reasonable and the higher reserve price would inevitably lead to higher tariffs, reports� The Economic�Times .

A few weeks earlier, the cabinet had approved base prices of Rs 3,646 crore per Mhz of 800 Mhz spectrum, Rs 3,980 crore for 900 Mhz, and Rs 2,191 crore for one Mhz of all-India spectrum in the 1,800 Mhz band. Competition is expected to be keen as spectrum licences for Bharti Airtel are expiring in six circles, for Idea in nine, and for Vodafone and Reliance Communications in seven circles each this year. All of them would want to retain their hold on the versatile 900 Mhz band as far as possible. New players in broadband, like Reliance Industries, could also seek extra spectrum for various voice and data services, or to grab prime bands like 800 Mhz and 900 Mhz from the incumbents. The available spectrum in the 2,100 Mhz band is small - 5 Mhz, with 15 Mhz more promised when defence releases them – which could make bidding in this band sharper.

It is possible that the higher reserve/base prices have been prompted by non-tax revenue considerations, given the stiff fiscal deficit target of 4.1 percent this year. But even if this were the case, it would merely be a right decision taken for the wrong reason. Of the Rs 80,000-1,00,000 crore expected from a successful auction, Rs 25,000 crore could come in this financial year itself. Arun Jaitley will be happy to get this money in the till when tax revenues are sluggish.

However, it is time India's telecom industry accepted the reality that spectrum is a super-scarce resource and that it cannot ever come cheap. Their business models and profitability cannot be built on the presumption that underpriced spectrum will be offered in plenty when the resource is actually going to get scarcer in the coming years, given our voracious appetite for broadband services. India has barely scratched the surface of broadband demand, and usage is going to head for the stratosphere with plans for a Digital India being a key driver.

Here are three reasons why spectrum will always be costly in India and why telcos had better understand the reality.

First, Indian has 1.25 billion potential telecom users crammed into a very small geographical area. The US has three times the geographical area and one-fourth the population of India. This automatically means spectrum must be used super efficiently in India. High prices will pressure telcos to avoid spectrum hoarding and use better technology to pump more data through the same available spectrum.

Second, India, as a late starter in mass telephony, is over-dependent on wireless services as opposed to fixed-line telephony. While the decline in the wirelines is a worldwide phenomenon, India has had a very poor legacy of landlines. Hence our dependence on wireless telephony is very high – and growing in leaps and bounds. Of the nearly one billion telephone connections in India, barely three percent will be wireline.

The worldwide the proportion of wireline to wireless telephony is falling dramatically, thanks to the proliferation of mobiles and hand-held devices, the pressure of spectrum will always increase, and more so in India which never expanded much into fixed telephony.

Third, the spectrum prices cleared by cabinet are for the next 20 years. Assuming that the number of uses for spectrum will only rise exponentially as the country gets richer, with data trumping voice usage, the higher tariffs from pricey spectrum can easily be absorbed by the higher spectrum usage in data – especially in the second half of the licence years. In fact, voice will probably become nearly free in due course as data traffic trumps voice in the coming decade.

The only valid reason for keeping spectrum prices steady is that usage is time-sensitive: unlike coal, which can be mined this year or five years later depending on prices and demand, spectrum not used this year is spectrum wasted. However, this makes out a case for flexible pricing and spectrum leasing, not lower reserve prices overall.

What the government can, and should do, is allow spectrum leasing, spectrum mortgage and easy sale of spectrum between parties, apart from allowing easier mergers between viable and unviable telcos.

But, as I have argued before, there is� no real case of going cheap on spectrum pricing .

The writer is editor-in-chief, digital and publishing, Network18 Group


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Indian rupee snaps its 4-week winning spree

The rupee ended at 61.86 per dollar as against the last weekend's level of 61.42, showing a gain of 44 paise or 0.73 percent. It moved in a range of 61.29 and 62.0350 per dollar during the week. The domestic currency had gained by 215 paise or 3.38 percent in the previous four weeks.

The Indian rupee snapped its 4-week winning spree against the American currency, slipping 44 paise to 61.86 per dollar on month-end dollar demand from importers and banks. The rupee resumed slightly lower at 61.49 per dollar as against the last weekend's level of 61.42 and fell further to 62.03 on good dollar demand from importers and some banks.

However, it recovered afterwards to 61.29 on selling of dollars by exporters in view of strong foreign capital inflows into equity market as foreign portfolio investors (FPIs) infused a net USD 779.85 USD million during the week as per SEBI's record.

The rupee ended at 61.86 per dollar as against the last weekend's level of 61.42, showing a gain of 44 paise or 0.73 percent. It moved in a range of 61.29 and 62.0350 per dollar during the week. The domestic currency had gained by 215 paise or 3.38 percent in the previous four weeks.

Meanwhile, the Indian benchmark sensex dropped by 95.89 points or 0.33 percent to 29,182.95 after hitting an all-time high of 29,844.16. Pramit Brahmbhatt, Veracity Group CEO said," After appreciating for four weeks last week Rupee lost its way and depreciated by one percent during the week. The month end dollar demand from oil importers and corporates forced Rupee to trade weak and close at 61.86".

Also the local equities lost its ground last week and posted first weekly loss in three weeks which further dented the movement of Rupee.


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