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Ramblings of a citizen and experiences of an entreuprener

This is about my way of life. It has two parts, one is related to the world around me and the other part is my experiences as an entrepreneur. Check out our website www.shaktiindia.com

Monday, September 26, 2011

The Cancer Within Industry



Radiagate had a profound effect on me. My role model, Mr. Ratan Tata was dragged into the mess. I pray that in the days ahead Mr. Tata comes out unscathed. There are many Radia’s in India and Goa. They are called by different names, “Dalal” “Fixer” “Broker” or even the clichéd euphuism “Consultant”. Mind you here consultant is not going to get you any efficiency in operations, he simply suggest you ways to grease your application/files so they land where they have to quickly but for a price, It is another matter if that the price will be actually paid to the government servant or not.

The bigger danger comes when these “Consultants” work from inside, like a cancer, they eat away from the inside. This happens when an industrialist converts to a “Dalal”. The most obvious reason for doing so is that the main business is failing and broking provides an easy source of income. This situation can be a frustrating experience for his industry colleagues as there are existing relationships.

The other type is less harmful but dangerous all the same. This type discusses and decides a course of action in the group but goes out and does just the opposite. Or worse will go out and spill all the plans to the Ministers to get some browie points.

I remember when I had just joined Verna Industries Association and we had decided to start a Corporate Social Responsibiity project with the six schools around the estate. This would effectively mean that come election time there would be no funds for politicians but it would be channeled to the CSR project. While the decision was welcomed whole heartedly, at least two went back to their masters and also paid their dues but did not contribute to the CSR project. To their mind, the CSR project would not be good return on investment. It is another matter that once their mentor finished his term, their protection evaporated and then even the small fry made them dance.

Another example from my days as President of Verna Industries Association comes to mind. While we were trying hard to eliminate monthly payments, there were some who wanted the same to continue. Why? Simple, because of economics. If “X” was the demand, they would inform their employers it was actually “Y”. The difference they pocketed. Everyone was happy.

The nature of the “Dalal” job is such that to survive they need confusion. If things are open, transparent who would need their services. Therefore it is the nature of their business to propagate confusion, ambiguity and above all anarchy. This serves their purpose.

On the other hand pressure groups like industry associations try hard to simplify the rules, make changes to make things transparent and remove ambiguity. Therefore, Dalal and industry associations work at cross purposes. Neither one is good for the other. But since industry associations work for the good of many, it is imperative that the association writ wins irrespective of what the dalal wants. Therein lies the problem and why I said that the worst kind of dalal is the one that is inside industry and especially industry associations. They must be weeded out.

To my “Dalal” industry friends, if you feel the above cap fits you wear it and think what you can do to get out of the business. To my friends especially those among the MNC’s, please relook at your policy for hiring “consultants”. India/Goa are different today, you will find your work can get done through your HR or administrator without paying through your nose. Apart from the fact that the rules are far more transparent, there are many Government employees who are honest and who want to do a good job. Alternatively, you have strong industrial associations who can take up your cause free of cost. Give these government employees and the country a chance to avoid the evils of “grease money”.

Jai Hind.

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