BRICS cannot help Goa Tourism

First appeared in  the Goan Everyday

The Chief Minister of the State has made a statement that the BRICS summit to be held in Goa latter this month will help tourism in the State. Most likely he made this statement to try and get some stake holders especially those in the Coastal belt to support some issues viz: mobile towers for improved connectivity. He must have felt that, with a lot of them depending on tourism for a lively hood they would relent and not oppose the last minute activity if they believed it would benefit them.

What is BRICS? BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa.  The BRICS members are all leading developing or newly industrialized countries, but they are distinguished by their large, sometimes fast-growing economies and significant influence on regional affairs. The stated objective is to focus was on means of improving the global economic situation and reforming financial institutions, and how the countries could better co-operate in the future or make an impact on global issues.

It is clear that BRICS has no role to play in the local economy let alone give tourism a boost in Goa. At most it will test Goa’s ability to hold an important Global conference in terms of venue, availability of hotels and connectivity. Not for the Heads of State, they will fly in on special aircraft but for the others, especially the world press. So it is good if Goa gives a good account of itself, one of the areas Goa wishes to position itself is MICE (meetings, incentives, conferences and exhibitions) tourism.

Despite knowing in March 2016 that the BRICS Conference was scheduled for Oct 2016, nothing much seemed to be done. If some planning had gone into the organising of the Conference would the hotmixing have to be done in a hurry, from the Aiport to The Taj Hotel. The shoddy work will come apart in a few months and the public money spent will be wasted. Hotmixing was done on the surfaces not prepared, while it appears nice, will it last. The widening of the Colva road was started a couple of months ago. Could it not have been delayed till after the Conference. Now, lots of dressing is being done obviously in a hurry and at an extra cost. This will have to be redone later and money spent again.

Does the “life” of the local also mean nothing, assuming that public money is of no consequence to the powers that be. All speed breakers have been removed, why were they put in the first place. Surely, if the Government wishes to remove the speed breakers for the duration leading up to the conference they would have additional police handling the traffic especially near educational institutions to ensure smooth and safe flow of traffic. It remains to be seen how quickly the speed breakers and rumblers are reinstalled post the Conference. More money will be wasted. I cannot believe that speed restricting devices would have been removed in a developed country just because the Head of State is going to pass. The quality of the work done near Carmel college means that the Head of State is going to feel the bump for sure.

A lot of effort and threats have flown past citizens like the waters of the Mandovi with regard to mobile towers. Does this mean that citizens are supposed to get a better service only because the Conference attendees need connectivity. Most likely each, Head of State will have his own communication system and surely not going to depend on BSNL or any other private operator. Mobile towers are required but using the Conference to shove it down the throats of the Citizens is not an answer.

If the Government is serious about pushing Tourism then it is not piggy back on the BRICS conference, but focus on a few couple of other things especially infrastructure.

Public Transport. Nowhere in the world where Tourism is a mainstay will you arrive at the airport and find yourself at the mercy of taxi drivers. Taxi’s are an option, and so are private shuttle services, public buses or trains. While a “train/metro” may or may not be an option in Goa, surely private shuttle service or KTC bus service is easy to implement. The industry association has already gone to Court to force the Government to get the Taxi’s to install meters. This shows that the Government is unable to implement a decision which will have a positive impact on the whole economy because of a seemingly negative effect on a limited vote bank segment. The irony is that if tourism booms even the taxi drivers automatically benefit.

Clean Beaches and public areas. One aspect that puts many a tourist off is filth. They associate filth rightly with unhygienic conditions and thus sickness. No tourist wants to fall sick on a holiday. Unfortunately, the Government spends crores of Rupees every month on contractors tasked with cleaning and there is not one beach which can be classified at the cleanest beach in Goa. For BRICS the large metal dustbins along the highway have been removed and the highway is being policed by specially paid contractors to ensure there is no garbage and it does look clean. Why cannot this system be in place all year round?

If the Government of Goa focuses on just infrastructure creation to ease transport woes and on Garbage, Goa will be surely be what God wanted it to be “a paradise” not just for tourists but also for the local inhabitants.

GST: Finally at India Inc’s doorstep

First published in the Herald

Wow, finally a decision, it took a good 20 years but it has arrived at the doorstep of India. The much awaited Goods and Services Tax has finally seen the light of day. There are still a few things that need to be done before implementation but no turning back now. India Inc., has to prepare for its rollout, anytime after 1^st April 2017.

The Government is surely going to pull all stops to ensure timely implementation; the Bill needs to be ratified by Lok Sabha and atleast 15 States have to adopt it before getting the assent of the President. All States bar Tamil Nadu are on board so there should be no hiccups. The reason TN is opposing it is because it is traditionally a manufacturing State and benefited under the current tax regime. GST is different in that sense as it is a destination tax and accrues to the consuming State and thus addresses an existing anomaly in the system.

The back bone that is being set up is GST Network or GSTN. This will be the interface between Center State, Banks and Companies and with electronic credit matching; compliance requirements could be pretty stringent. Private IT systems will now have to begin the task of becoming GST compliant, with details still being worked out, not much can be started so there will be a rush a little later. This will be the key to ensuring that those who make fake bills are shown up as all transaction have to be uploaded immediately.

In the foreground the GST law making process will take center stage and surely will not be easy. The key issue everyone is look at is the Revenue Neutral Rate, which will be decided by the GST Council. Currently 18% is being talked about. This council will subsequently also oversee the States demand for change in rates. As such it will not be easy for States to make arbitrary changes in rates as is the case at present.

The model law at present is attempting to widen the input tax base, but it will need tweaking as currently its provisions are more skewed to a lesser input tax regime or imposes restrictions on taking input credit in some situations, to ensure seamless credit more work needs to be done.

GST is a game changer. It is not just a new tax but will affect every aspect of business, including cashflows, pricing, supply chain, accounting, IT systems etc. It will change the way business is done. Take the example of a factory having warehouses in different States. Today they stock transfer and there is no tax till it is sold from that point. Under GST, the tax will have to be paid for stock transfers, the advantage is the credit in the books is also transferred to the stock point where it can be used at the time of sale. This means that a Company in Goa will benefit if it sells most of it goods outside Goa. Earlier the credit accumulated in their books and could not be used. In such cases the companies preferred to buy from vendors outside Goa paying 2% CST rather than from Goa with paying VAT at 12.5% and having funds blocked. Now manufacturers will have to consider if it is useful to have warehouses and stock points purely for tax purposes. Vendors from outside a State can be more competitive as there will be no 2% CST or C form hassle.

Another significantly different approach is that one can take credit on receipt of invoice, however if the seller has not deposited the tax within 90 days with his quarterly return, the buyer will have to reverse the tax credit with interest. So the onus of ensuring that the tax is paid is on the buyer. While this sounds harsh, it actually moves the policing away from the department to the buyers. If a credit is disallowed the buyer will refrain from using this supplier, and hence only those suppliers who comply will be able to operate in the long run. Tax evasion and avoidance will be curtailed automatically if not eliminated. Without bill transactions should be a thing of the past.

Once GST kicks in there will be transition of unused credits, so the tax paid on inputs on stock will be allowed to be carried forward as input tax credit under GST. Questions will remain till the details are ironed out. What happens to the CST paid under current tax regime, will it add to the tax credit or will it lapse as before?

Valuation will be based on the existing Central Excise and Customs rules with arm’s length and related party transactions being the guiding principle. But surely this is one area where litigation will be rife. Under GST even free samples or promos will attract tax, so what happens to loyalty points then?

Companies will have to prepare a road map for the switch over. Big or small an impact analysis will help understand in which areas costs will increase or decrease, how will cash flow be impacted and what IT changes will be needed in existing systems etc. For this each Company will have to set up a core team, who will study the impact and if required they must be ready with their representations when the GST Law is in draft stage. They must get copies of the statutory registers and records that will be needed so as to plan for their implementation. Employee training will be a must. Finally, everyone must put their heads together and decide what part of the existing business model has to be reworked.

Make in India, sell anywhere in India. If you get it right, your business can benefit from GST.

Public Money is not for wasting

First Appeared in The Goan Everyday

The recent BRICS summit in Goa has brought into focus the spending on sprucing up the State when it comes to organising a big event. There is no doubt that an event of the stature of BRICS will give a small state like Goa, prominence. The fact that the summit will end with a declaration to be called the Goa Declaration will add to the value brand Goa. By all accounts it is going to be a successful summit and that will add to India’s stature. PM Modi, right from the word go has been pushing an aggressive diplomatic policy and this is will be another feather in his cap.

However, can we learn from this event? Can we look at what could have been done better? So that after all the dignitaries have gone home and the dust has settled, Goa would have benefited a little in real terms, on the ground and not just hype.

The CM Parsekar has stated that the State has spent between 70 to 75 crores on making Goa BRICS ready. The Center was supposed to allot 200 crores for this purpose. Did they reduce the budget? Was the State forced to shell out money from its already stressed finances? Wonder if there will be any account given or will asking for an account make one anti national? After all national pride is involved.

If one looks at the list of works done they are all mainly in the realm of maintenance. Shifting poles, transformers, fixing lights, etc. So technically we spent 75 odd crores on make up. The widening of the Colva road is widely believed to be part of the BRICS preparation, if it really was, it is an ambitious project to undertake given the time span available. Ofcourse as Putin and Co zipped past, they may not have noticed it is incomplete. They cannot be blamed because good money was spent on ensuring it looked complete, this needless expenditure will have to be wasted in order to actually complete the road.

Black topping the roads, the Colva road was given two coats, especially when it was raining was a bad idea. Hopefully the surface which has already started crumbling will be good enough to give Putin and Co a relatively smooth return journey. Else, we can expect the PWD to give a fresh coat just before they leave their hotel for the airport. So it is clear the work done on the roads is not only hasty but also shoddy and will not last too long. However, public memory is short so nothing to worry about.

The stretch from Airport to Mobor had lines painted on the road, the kerb stones painted yellow and black, the missing road dividers replaced, rumblers removed, potholes repaired and all the electrical poles painted. Question is how was the work tendered and who supervised the same. Take the example of the poles which were painted. The workers simply painted the poles over the rust, dirt and holes. Was that specified in the tender or was it mentioned, first paint primer and then two coats of blue paint. Consider the Verna Bypass, it is partially done in some stretches, basically patch work. How will the contractor raise the bill, for patch work or for the whole road.

Is replacing rumblers part of the tender or will that be another tender and how long will it take. The rumblers/ speed breakers are there because of safety issues, so will the Government act quickly to replace them or will it be replaced only after a couple of accidents. Ideally it should have been part of the original tender ie removal and replacement of speedbreakers/rumblers. If the leaders needed a smooth ride, could they not have been taken to the hotel by a chopper or by boat like the IFFI delegates?

Coming to issue of tenders, we all know that the State Government got a firm confirmation about BRICS around March 16. Were the tenders for the different works issued in time or were they “short tender”, meaning urgently required so checks and accountability are bypassed with this type of tendering.

The banners, bill boards were plastered around the route. Wonder how they get accounted for and who does this job of checking “ordered v/s delivered” before the payment is released? Would be interesting to know.

There was a budget for the refreshments of the police personnel on bandobast duty. They did a good job and were on their toes continuously. Reports indicated that they were forgotten about and one of them suffered a heart attack. There was a small pickup going around distributing tea, not sure what else. Contrast this with the army style. At Trinity beach, where an antiaircraft gun was positioned, an army truck came by with dinner for the guard detail. Very impressive.

While most of the work appears to be cosmetic, there is one job that will benefit Goa in the years to come. It was long pending. The airport road has been illuminated. They did the job in a few days, so why was it not done for so many years?

The preparation and execution of the various jobs in such a short time points to the fact that if required the administration can get its act together and can deliver. What should now be added to this capability is planning. Imagine the same jobs delivered in time for BRICS but planned and executed. It would have ensured better and more efficient utilisation of public funds. Something that was lacking and needs to be addressed.

New Education Policy: Backward or Forward

1st appeared in the HERALD

The shifting out of Former Education Minister Smriti Irani was probably the best thing that could have happened for education. Among the first things the new Education Minister Prakash Javadekar’s did was extend the deadline for seeking public opinion.

Not known to many, the NDA II government is currently drafting a new education policy “to meet the changing dynamics of the population’s requirement with regards to quality education, innovation and research”. This would be a perfect starting point for a noble cause given India’s push to become an intellectual super power on the back of an IT boom.

However, some things were just not right, why was this path breaking initiative kept under wraps, in fact only 43 pages of the entire report were circulated. Surely anyone studying such a condensed version would have more questions than clarity. Considering the report is in two volumes. The first, in 230 pages, contains nearly 90 suggestions; the second has over 100 pages of annexures, these suggestions supposedly evolved out of extensive grassroot study.

The panel has recommended significant interventions such as amending the Right to Education (RTE) Act to bring back detention of students after Class V, elimination of unviable schools and making minority schools reserve 25% seats for candidates of economically weaker sections (EWS). The last provision tramples the rights of the minority institutions (linguistic and religious) which is enshrined in the Constitution.

Thankfully this has been corrected with the release of the complete version and extension of the date. However, no visible effort is seen to make the policy widely available to schools, colleges etc for allowing proper debate.

We have had two NEP’s, 1968 and 1986, under Indira Gandhi and Rajiv Gandhi. The National Education Policy (NEP) of 1986 was revised in 1992 when P V Narasimha Rao was PM. So it not something that is not or cannot be changed. What would be watched is the process and that has ruffled some feathers, especially the minority institutions who run many educational institutions and whose views should be considered given their experience. Hopefully under the new Minister this too will be considered.

From the official website, the NEP was formulated with a time bound BOTTOM UP approach and different from previous exercises which were supposedly TOP DOWN. Also rather than have experts this time the ministry opted for discussion village education committees across all 2.5 lacs Grampanchayats. Was Goa left out as nothing was reported or maybe Goa does not count. Not many in the education sector have heard of this new policy, which would mean the fault of the sector or the ministry?

The Ministry feels that previous policy consultations took between 3 months (really) to 6 years, hence this policy is going to be time bound. However time bound does not mean not doing things as planned in the “Consultative Framework”. The consultations with National education bodies was done over one day each. Considering the themes listed out in the Consultation document, it is too little time given the importance of the subject.

The themes are no doubt very good, especially focus on teacher training and quality.

Fatorda MLA Vijai Sardesai raised the issue of “neighbourhood school” as envisaged under the RTE Act, it was not being implemented, kids travel more than 1 km to get to school. Under the NEP this will be done away with. Schools which are small or are not viable will be consolidated. MLA Vijai is unaware that the NEP is already proposing to do away with what he is asking to be implemented.

Education is a State subject and the NEP will provide broad guidelines for the States to follow, should not the States be well aware and contributing so that the States plans and the National Policy do not oppose each other?

The current Minister is a product of student politics. Will he agree to the view that student politics is a distraction that should be eliminated from every campus. Will it be possible to prevent as envisaged, formation of student groups on the lines of religion or caste or politics, would it not violate the fundamental right of a student. Did the recent unrest or rather ham handed handling in the JNU campus have an effect on getting this issue included in the policy?

The most important issue to my mind that needs to be discussed is this. The guiding principle for the recommendations made in the NEP ….more than economic objectives, education should aim to “develop pride in India and in being Indian / with roots embedded in Indian culture etc”. So did the panel findings include the fact that those produced by the current education system are less nationalist or cultural misfits and hence this problem has to be addressed. Then contrast it with an objective of NEP, make student more employable, do corporates employ students who are culturally sound or those who have the necessary skill sets to do the required job. Where is the focus?

The NEP has raised more questions than provided solutions. The method of discussion or dissemination or consultations have left mush to be desired. There seems to be a knee jerk reaction to various happening and above all a scant regard for constitutional rights. It appears that the current draft policy has hidden agendas.

It would be therefore imperative for the Minister Mr. Prakash Javadekar to review the process and once again go back to having proper nationwide consultations with actual stakeholders so that the revised draft meets the minimum expectation of improving the quality of education and enhancing the employability, and in his own words, A STUDENT CENTRIC POLICY.

Taken for a ride: by a taxi

1st appeared in the Goan Everyday"

The literal meaning of “taken for a ride” is cheated. In Goa, that is happening day in and day out, if you take a taxi, you are going to be taken for a jolly good ride. The worst part is, this happens with the blessings of the administration. The solution is blowing in the wind but the will is missing as votes are more important.

The taxi drivers know that they are on the wrong side of the law. But with political patronage they stand nose to nose with any authority and demand brazenly that they will install GPS meters only if illegal taxis are stopped and two, hotels and airlines do not charge high fares. This amounts to saying, I as a citizen will follow the laws provided there are no murders in Goa. Can such conditional acceptance of the law of the land be allowed, and should the authorities be mute spectators to such an audacious demand?

There are three types of taxis that operate in Goa, Black and Yellow: Usually found at prepaid stands at airport and stations. That is there domain. The private taxi is next, usually white cars. They operate from home ie anywhere or hotel gate (their turf) or important corner in village or town. The last is the illegal or unauthorised taxi. They are basically private cars on hire. The owners are usually Government servants and this is their extra income. One can now understand the blind eye by officials to this activity.

The taxi trade has to be counseled to realise that they cannot compare themselves to the hotel or airline industry. There is no alternative to taxis, a pity but if there is no public transport the only other options is your own vehicle and it shows in the growing no of registrations. Hotels, each offers different rooms, amenities and service levels, if one hotel prices itself above its level it will loose customers to another Hotel, in case of airlines many choose not to fly if the fare are too high.

The average profile of a taxi driver is school drop out and usually it is owner driven. Some owners do have drivers or more than one taxi, but all the drivers move on to becoming owner drivers sooner than later. The taxi business is usually operated from the house or nearby hotel or tinto. Most airport taxis owners are usually from around the area, radius of 10-15 kms. There are a few biggies who have a fleet of cars and they usually do not operate from the airport or station.

Now, with the above profile and collectively having associations based on North and South. One will not expect too much in terms of understanding either business, operating policy or expanding customer base. This lack of knowledge drives the taxi stake holders to the worst possible mediators, the politicians. The politicians is usually a long term player, but the term he is considering is his own reelection. So the focus is on short term decisions which do not need any thinking and definitely will not take the politicians time.

Thought must be given to the following and educating taxi drives about their impact and benefit must be part of the process. First and foremost is to pick low handing fruit, ie illegal operators. That ofcourse is the most difficult as it would mean authorities have to take action against themselves.

The next is the fact that taxi owners/drivers have to embrace technology. Today, there are customers waiting for taxis and taxis waiting for customers and the twain do not meet. Technology can change that and once the taxi trade accepts this, business will explode. But the Government should not wait, they should implement, it is good for taxis and customers. That is the mandate of Governance, see all sides.

This brings us to the root cause, one can argue which comes first, the customer or the price, in this case both have to be addressed simultaneously or it will not work and that is “GPS with meters”. The conventional meters are easy to fiddle with, lower air pressure increases mileage done or the tax can make unnecessary loops. GPS based system cannot be tampered and extra loops can be eliminated.

The Meter, eliminates the need for using the current area wise charts, eg: if there are two passengers headed for Verna, one going to industrial estate (11 km) and other to the Udear spring, (17km), both are charged the same Rs 530/-. While both 48/km or 32/km resp., is exorbitant, it is good for neither the passenger or the driver. For passenger one is paying more and for the driver he is getting less every time he drives deep into the area. Most times this results in arguments as the driver feels the customer has mentioned a closer destination to get the benefit of a lower fare.

They drive back empty and rashly just to get back into the queue again. Had they been using an “app”, it is possible that there is another passenger who wishes to go to the airport or in that direction, rather than empty and haggling, the driver can first become aware of such a customer and two, because of the meter a fair charge is payable.

The TAXI which is an asset is used more, the price comes down, the reputation goes up and the customers increase. The ordinary TAXI METER with GPS backed by a taxi hailing “app” will change the way Goa sees taxis, everyone will happily go for a ride.

Where is the “ease” in doing business?

Goa is in the news again and for the wrong reasons. It is ranked 21 among all the States and Union territories. The ASSOCHAM report which similarly stated that Goa needed to do a lot more was brushed aside by the Government and an Industry body came to the Governments rescue. The Industry reaction was viewed with suspicion as it did not reflect the ground realities but pandered to the Governments need for support. This report prepared by the Center in conjunction with the World Bank cannot be brushed aside and only highlights the fact that “all is not well” when it comes to helping business function easily.

The much touted IPB (Investment Promotion Board) formed under the Investment Promotion Act, lost it legs a few days ago when the Chief Minister declared it was not a single window for investment in the State as was given to believe. The statement coming on the heels of questions raised by the High Court only proves that acting in haste and trying bulldoze the opposition to accept projects without thinking, ends up in actually delaying projects and increasing the tension of doing business in Goa.

The statement by the Chief Minister is also surprising. If this was the case why was the “in principle” approval assumed to be fait accompli and why was the impression that IPB subsumed every other statutory body eg: TCP, GSPCB etc given. Why was this clarification not issued earlier. Actually, the reason real reason for creating the impression that it was a single window was to convey to the other arms of governance that there should be no questions asked and the applications have to be fast tracked irrespective of the situation, the IPB has seen the power point presentation and approved.

The IPB drafting committee did not have a single hotel industy expert, after its formation it was decided that the “investment’ in IPB would include hotel projects, originally it meant manufacturing and services. Hotels, are an investment, question is what prompted their inclusion.

If one studies the hotel projects approved (now reverted to in principle approval) by the IPB and study the details of when the properties were purchased, one will surprisingly note that the properties were purchased before 2012, however none of these properties could have seen the light of day as hotels because they were all either Kazan, orchards, fields or no development zones as per the Regional plan. Once the IPB came into existence, all these properties immediately submitted their plans for hotels and were immediately approved. Now we will have to wait and watch what happens in court as other than TCP, IPB cannot make a zone change.

The IPB has to follow the IP Act which lists thrust areas. It was surprising to note and see that an alcohol manufacturing unit was accorded approval in an orchard. Alcohol is not a thrust area, new alcohol manufacturing projects are banned in the industrial estates. One Government, two rules. Should alcohol manufacturing be allowed or not is not part of the discussion, why different interpretation by different arms of the same Government. This project also had the distinction of needing support of a notification which classified all the toddy tappers in the State as grasshoppers by declaring coconut trees were not trees.

The IPB has many mandates, approve projects is one, what about others. The IPB is supposed to recommend or decide how business can be facilitated. These has two aspects, infrastructure building and administrative reform. It is not only land that is scarce and needs to be provided, what about electricity and water.

The IPB in its wisdom actually rejected a project of a steel processor, this decision was over ruled by a cabinet decision despite a cabinet decision banning new steel mills. The electricity department assured the project 10MW of power, yet industry is crying for power for expansion and there is none. Should the IPB not be studying the power and water scenario and recommending to the Government ways to augment the same.

Administrative reforms are what industry has been harping on and this was just the right place to make a difference. The IPB application could have been designed so that when one applies to the IPB all information required for other departments concerned in also included and any department can process the same applicaion. The investor makes only one application to the IPB and the IPB passes it on to the respective departments and gets their approval or objections based on which the IPB gives its own in principle approval. The difference here is the investor is not following up with the departments but the IPB. This way post the in principle approval, departments cannot raise any new issues or decide against the project.

The “Ease of doing Business” ranking is very objective with 325 plus issues that need to be reformed by a State, these could have been discussed by the IPB and recommendations made to Government to reform areas like, inspection, online submission, multiple applications, increased use of IT for uploading returns etc. The IPB did nothing of this and the result is clear to see. RANK 21.

Going forward the IPB has to sit back and take stock of the situation...THINK. The best place to start is the ranking report. Being objective it gives clear guidelines as to where and what has to be done, let the IPB start doing this, forget giving rushed and dubious clearances, they will anyway get delayed when aggrieved citizens approach the court. Keep politicians out, bring in domain experts, clean up the business environment and the good projects will come. Goa is a great State and if the system supports, it will be a great State to do business.

The Reluctant Entrepreneur: Travel

Today, a budding entrepreneur came to me for some advice. She felt that because she was starting small she did not have to think ahead. It is at the start up stage that she has more time to think, once the project is rolling there will be less time. By sheer chance when I started I got a chance to travel abroad for a conference. There was no doubt that in my mind thoughts that this was wasteful expenditure were flying all over.

Once in Singapore during the conference breaks, I contacted various moulders listed in the yellow pages and got myself three invitations to visit their factories. The visits were learning experiences. Consider this example. Back in India, I had seen moulding machines set up each with individual spaces and possible its own overhead crane. Here in a place where space was a premium, they were laid out side by side, just a meter gap between each, one crane serviced all 25 machines, similarly they was a another line on the other side. The corridor in the middle was used to service each machine, supply new moulds or take away ready parts, above the corridor was a platform with the RM feeders. In a space where in India I would have seen 6 to 8 machines, 50 were operational.

We used this thinking to good effect as we added machines in our factory. One vendor assuming we had no space refused to quote when asked. Later, he came to see how we had installed the machine we purchased from his competitor. The initial expenditure considered wasteful was actually an investment.

Over the years, this has become apart of my training. Visiting factories in different parts of the world and even India. India is also up there with the best compared to 20 years ago. When buying a large machine my french counter parts felt that we would have to also buy an automatic platform to load unload the moulding arm as was done in Europe. These systems are known to cost as much as the machine. A visit down under changed that perception. Australians seem to be more like Indians, have a jugaad mentality...they like us make it work with the most inexpensive means. In Australia they ran even bigger machines without the platforms, rather that climb up and work on an arm at a height, they inverted the arm and worked on it from the ground, brilliant. So my new machine does not have a fancy unloading station, we just work from the ground.

On the same trip, I noticed that after using a pneumatic gun to loosen the bolts, the nuts did not fall to the ground on the other side. Curious, since I had worked on retaining the nut in place without success earlier. These guys had over come my problem, I had tried to hold the nut in place by welding, however when the nut got damaged it was difficult to replace. They welded a sleeve instead and put the nut inside the sleeve, once damaged only the nut was replaced. Eureka.

Before I left for the Philippines to study, to me a factory had to be dirty, wires hanging grease on the walls floors, if there were pipes they had to leak and if there were oil sumps it had to drip. During the course I had an opportunity to visit factories practicing the concept of Kaizen. That was my moment of enlightenment, and I have never been the same again. I saw factories which were as clean as hospitals workers in white overalls. The advantage of white overalls was that if your overall got dirty it was a sign that there was a part of the factory that was not clean. I came back to India with a different perception, “FACTORIES CAN BE CLEAN”

The point I am trying to make to budding or seasoned entrepreneurs is travel and when I say travel I do not mean to sight see only, but travel to get a feel of how others do it and adapt accordingly. Get to a new place and thumb the yellow pages, there are always a few fellow entrepreneurs willing to host you, all you need to do is ask. The moral of the story travel is a great teacher. Bon Voyage

NOT JUST INTROSPECTION, ACTION REQUIRED,

• A variation to the same concept articulated earlier

Fr Savio's “Need for Introspection” in the Herald dated August 23 2013 makes interesting reading. I agree our education system needs some serious work, he highlights important issues but no solutions. The Catholic Bishops Conference of India (CBCI) has brought out an “Education Policy” which the Bishop is struggling to implement. The policy is aimed at delivering good quality education.

I disagree with his criticism of the no fail policy. It is a good system badly implemented. Fr. Savio actually provides the solution when he states that our “one size fits all” policy is the culprit. Unfortunately it contradicts his earlier position that allowing a student to drop an uncomfortable subject will hamper his growth later. The reason kids are not interested is because they have no interest in what is being taught. He asks, why are right brain subject being marginalised.

The only reason we have Apple and it famous “I” products is because Jobs took a course in calligraphy, the rest is history. Mr. Newman, the former Principal, famously said that he has no interest in maths and only uses it to ensure that he gets the correct change back after he has paid for his goods. So learning compound interest, constructions in geometry etc were water on a ducks back.

The Goa Board has addressed this issue through circular no 55. Only one school to my knowledge, Regina Mundi has actually implemented it. So far, three students have been allowed to drop an inconvenient subject and take another. How many Principals are willing to adopt this system which allows for tailoring of the course to fit the child.? How many are aware it exists.?

This is the basis of the National Open School where they offer both right brain and left brain subjects. The reason for Principals or Head masters shying away from tailoring is also mentioned by Fr, Savio. The school has to many administrative jobs, bal rath, midday meal, election duty and the like. This surely takes away the academic focus. Why not sub contract these jobs to an outside agency. Each school complex can be managed by one set in a centralised manner which is not impossible with mobiles, internet and computers.

Once the children begin to enjoy school they will stop misbehaving and labeling of “useless or duffer” will stop and along with it the rebelling. I recall when there was a “fail policy” coming to a new class and being joined by a few kids who had failed once or twice before and actually had no hope of ever clearing. It was a matter of time before they dropped out either because they began bullying and were rusticated or because they just grew old.

Now rustication is not an option and it is frowned on by Fr Savio. When it was available did it stop misbehaviour. We have laws, jails and courts do we have less crime. Bad behaviour is a symptom and not the cause. The cause is clearly wrong fit or choice of subjects offered. So we need rules and calendars just as we cannot do away with laws because there is crime.

What we as a society should be focused on is ensuring that the child is sufficiently trained to face life. Not all want or can become Doctors and Engineers. So if a child cannot or does not want say maths or language, so be it. Let him choose something else. Without maths he cannot choose engineering later, but surely such a student is sure he does not want that career choice, he may just want to become a good Principal, let him.

The Government needs to support Circular No 55 with options for courses in lieu of the standard menu. Once this is done, drop outs will reduce and smiles will be back.

The Reluctant Entrepreneur: What’s in a name

First published in The Business Goa

At the recently concluded Konkan Fruit Fest we tested our new positioning of placing many products using the brand name SHAKTI under a single umbrella. “SHAKTI for your home”. With this positioning many hitherto disparate products were aligned for the first time. While SHAKTI water tanks had a very high recognition and association with the brands values, viz: good quality, right price and timely delivery. Other products within the SHAKTI stable derived no such benefit. Infact feedback indicated that customers did not even associate the Brand with any product except tanks.

The concept trial was very successful and we learned that just using a well known brand name without a plan, even if it is your own does not guarantee transfer of brand value automatically. What we did essentially was point to the fact that SHAKTI also makes tanks, and emphasised the other products placing them around a home with the tank on the top as it is usually placed. In this way we were able to link the septic tank, the compost bins, dust bins, grease trap and planters using the line “SHAKTI for your Home”.

Before we did this we had decided to split our website into two websites, linked internally. While one set of customers know SHAKTI, they rarely relate to the Company name GMI Zarhak Moulders. On the other hand our OEM (original equipment manufacturer) customers viz:John Deere, VOLVO, Putzmiester, Atlas Copco, Godrej etc never refer to our brand and know only the Company name.

Earlier searching for our website shaktiindia.com was easy for our home products customers but the website made no sense to our OEM customers. This obviously led to confusion. Another aspect kicked in once a person reached our website, difficult to separate custom moulded parts which cannot be sold or specifications cannot be given due to restrictions on one hand and regular products on the other. Here again we see the complexity caused by brand and company name. We have decided to address this issue going forward by having two websites shaktiindia.com and GMIZarhak.com, both linked internally but each having information relevant to the customer segment it addresses.

The aspect of choosing a brand name was peculiar for us as it will be for everyone who chooses a brand name. We could have used some name associated with Goa, eg coconut or Maad or Talav or even SEATEX for that matter but we choose SHAKTI keeping in mind that the name implies strength/long lasting and is easily recognisable pan India which would be our long term goal. At the fruit fest there were many selling wines and pickles without a brand name, how does a customer who wants a repeat experience find the product later or recognise it in a shop. One brand name seemed to be associated with a famous cartoonist given the name and typeface, is there a connection?

For a start up it would be good if they can consider these lessons right at the beginning so that like us they do not waste valuable time before they figure out through experience. The first thing is to choose a brand name, better in my opinion if the name has some relevance to the values the brand wants to inculcate. These days it is advisable to use the internet to ensure your chosen brand name does not infringe on anyone else’s rights. Decide early if the brand and company name have to be linked, then design brand communication accordingly. When launching new products, decide early if you need new brand name or you will use the existing name and then tailor brand communication early, biscuit companies are a good example of using a different brand name for each category of product.

The bottom line is there is a lot of value in names brand as well as company, think hard and long early on, so that you enjoy the fruits for a long time.

NOT JUST INTROSPECTION, ACTION REQUIRED

• This was written in response to a comment by an educationist.

I agree our education system needs some serious work. I disagree that the no fail policy under RTE is suspect. It is a good system badly implemented. The “one size fits all” policy is the culprit. So allowing a student to drop an uncomfortable subject will not hamper the students future growth. The reason kids are not interested is because they have no liking for what is being taught. Why are right brain subjects marginalised in this day and age.

The only reason we have Apple and it famous “I” products is because Jobs took a course in calligraphy, the rest is history. Mr. Newman, the former Principal, famously said that he has no interest in maths and only uses it to ensure that he gets the correct change back after he has paid for his goods. So learning compound interest, constructions in geometry etc were water on a ducks back.

The Goa Board has addressed this issue by allowing students to take alternative subjects if the student cannot cope with a regular subject. A path breaking initiative. This is really the basis of the National Open School system, where they offer both right brain and left brain subjects. How many Principals are willing to adopt this system which allows for tailoring of the course to fit the child.? How many are aware it exists.? Only one school, Regina Mundi has actually implemented it. So far, three students have been allowed to drop an uninteresting subject and take another. The drawback is lack of study and testing centers approved by the Goa Board. The reason for Principals or Head masters shying away from tailoring is the fact that the school has to many administrative jobs, bal rath, midday meal, election duty and the like. This surely takes away the academic focus. Why not sub contract these jobs to an outside agency. Each school complex can be managed by one set in a centralised manner which is not impossible with mobiles, internet and computers.

Once the children begin to enjoy school they will stop misbehaving and labeling of “useless or duffer” will stop and along with it the rebelling. I recall when there was a “fail policy” coming to a new class and being joined by a few kids who had failed once or twice before and actually had no hope of ever clearing. It was a matter of time before they dropped out either because they began bullying and were rusticated or because they just grew old.

Under RTE, rustication is not an option and it is frowned on by all. When it was available did it stop misbehaviour. We have laws, jails and courts do we have less crime. Bad behaviour is a symptom and not the cause. The cause is clearly wrong fit or choice of subjects offered. So we need rules and calendars just as we cannot do away with laws because there is crime.

What we as a society should be focused on is ensuring that the child is sufficiently trained to face life. Not all want or can become Doctors and Engineers. So if a child cannot or does not want say maths or language, so be it. Let him choose something else. Without maths he cannot choose engineering later, but surely such a student is sure he does not want that career choice, he may just want to become a good Principal, let him.

The Government needs to support the Board in implementing its decision to “tailor” courses as per the students likes and dislikes, with options for courses in lieu of those on standard menu. Rather than duplicate effort, the Goa Government can allow students to pick subjects from the Open School Menu. Once this is done, drop outs will reduce and smiles will be back.

Portuguese Nationals of Goan Origin : A solution

First appeared in the Goan Observer

The 2012 elections opened the proverbial pandora's box. A losing candidate decided to test the law with regard to her rival's citizenship status. The idea being that if the citizenship rule could be used to disqualify the winning candidate then automatically as the runner up she could get promoted. Am not sure if the election rules allow such a promotion but till date there is no clarity. Wonder what would have happened if the complaints were against the winning candidates belonging to the opposition.

The current status is that the government has decided to drop the dual status citizenship cases against all involved for lack of evidence. Lack of evidence is surely euphemism for “buddy we want to do nothing”. Strangely after searching ( if they did search) for evidence for three odd years and not finding any against 500 odd suspects, the Government decided to open a fresh case against another individual who has been a thorn in their flesh. Does the government feel that pursuing a single case they have a better chance of getting evidence. Most likely it is a case of vindictiveness, different strokes for different people.

Goans feel that it is their birthright to acquire a Portuguese citizenship or passport because the rules in Portugal permit it. Portugal has allowed citizens and their progeny of its former colonies to acquire Portugal citizenship. Unfortunately or fortunately this was not thought of or allowed by the crown, read UK. Most inhabitants of Pondicherry have also got this facility from their french rulers and till today they vote by postal ballot in french general elections, despite being “indian” citizens. Most likely they vote in Indian elections too. No one has bother to upset the apple cart so in Pondicherry every one lives happily.

Goa too enjoyed this comfortable situation where many registered their births and followed the process of acquiring Portugal Citizen ship with no intention of actually settling down in Portugal. In recent years, the European Union has made access to the UK relatively a cake walk with a Portuguse passport. This prompted many Goans to move to what they see as El Dorado, a place of milk and honey. They have flocked there and this number is increasing day by day. This means that people from outside Goa have rushed in as they see Goa as a land of milk and honey, about this another time, it is another story. While it is understandable if those going to find their pot of gold our youngsters fresh out of college and looking at more opportunity. However those leaving are not necessarily young and whose range of possibilities in a new land are severely limited in addition to the handicap of acclimatising to harsh winters. This is a challenge for any Government to try an stem this exodus. Again another story.

This window of opportunity is not going to last long with the UK most likely going to stop this free entry by opting out of the EU. With the terrorist attack in Paris, the EU itself is considering closing the borders and restricting free entry throughout the EU. Border checks will be back. So this will once again mean that Goans with Portuguese passports are only going to use it as a status symbol and not actually leave the shores. The current situation does not allow them to use it as a status symbol, least their neighbour files an FIR as a means to hit back due to some domestic dispute. Recall the latest FIR's in a lawyer v/s lawyer row.

What can the Government do now, now that the issue has been raised by a selfish politician (are there unselfish politicians, another story) for selfish ends. The issue has to addressed. The Governments ostrich type (head buried in the sand) response is not going to help. Also using the situation to keep rivals in check or MLA's from the party loyal is not a long term strategy. Clarity has to be first priority of the State government as the situation effects many.

First we have to acknowledge we have a problem. India does not allow dual citizenship and that will not change, not in a hurry for sure. The central Government has already made its stand clear. Once a person takes up another citizenship, he automatically ceases to be an Indian citizen, there is no question of applying to be deregistered. Currently we have knowingly or unknowingly many foreign nationals of Goan origin residing in Goa/India but enjoying illegally the benefits of an Indian citizen. The problem with enjoying these benefits illegally is that it makes the beneficiary vulnerable to criminal prosecution.

Let the Government of India, citizenship is a central subject. Our Defence Minister can take up the case on behalf of these foreign nationals of Goan origin residing in India. Offer a six month amnesty and at the same time create an awareness about what the person can and cannot do, eg: surrender voter id, passport ration card etc. Undertake a drive to allot Overseas Citizen of India (OCI) card to such people so that they can now live peacefully without any issues like any normal Indian citizen but without voting rights or the ability to but agricultural land. Even if an amnesty is not feasible immediately, the NRI cell which is already in existence should and can be utilised to help those with Portugese passports to get an OCI card.

Another possibility is to give an option to those who did not realise the consequences of becoming Portuguese citizens, Show the how to apply again for Indian citizenship if they wish, fast track such cases. Obviously just throwing your Portuguese passport away will not be the best solution as it would make the person liable to future criminal prosecutions.

While holding the proverbial “Sword of Damocles” may have advantages in the short run, the Government of the day will surely reap many brownie points if they actually go out and assist this section of Goan society and pave the way for their continued peaceful living in Goa.

Defexpo: Why oppose

First Appeared in Goan Observer

Today in Goa there are many issues. We have the silly amendment deleting the coconut tree from the list of trees under the Tree Act, we have the IPB being used to bypass all rules and foist upon Goa projects which would otherwise not seen the light of day. We have the MOI issue awaiting a decision. Despite all these pressing matters we have decided that our time and enery is best spent opposing the Defexpo at Betul.

The land at Betul would have been transferred to scamsters long ago by Babu under the guise of setting up a food park. At that time there were no protests? Now, the land is idle and if it can be used for a few days why not? The proposal to have the Defexpo at Betul was discussed at the GIDC board meeting. The details were sketchy at best. However, to my mind it was a good idea, better than giving it to some mega project which would take the land at a subsided rate and then transfer it to another at a hefty profit, a la Metastrips. As per the rules the metastrips land should revert to GIDC.

The Defexpo will draw businessmen who will spend money alot of on Hotels, Taxis and restaurants. They will also not do drugs or create a nuisance with loud music. Should it not be more preferable to the Sunburn or Supersonic festivals. No one suggested alternative sites or questioned why North Goa and not some other site in Bangalore etc. This despite the fact that there are fears of drugs and most of the visitors would surely be financially less well off than those who will come for the defexpo.

Ofcourse we know that the “fees” the EDM festival organisers pay is directly proportional to the opposition. Finally it happens, There were no jail threats issued to the protestors or those opposing the EDM's, so why did the Government decide to do it for the Defexp protestors is a mystery. Good sense has prevailed and the Government had changed tracks and is now having a Defexpo Education presentation to convince the opposition and address their concerns. This is better late than never.

While it is no one's case that Goa will directly benefit from orders generated at the defexpo given that the participants may be limited to just 2 or 3 companies. What is possible is that local players can meet those who are visiting and get subcontract jobs. Given that Goa Shipyard is in Goa, manufacturers of some components may prefer to subcontract to reduce transportation costs for some items. There is also a possibility that if the GSL orders are large enough and they can be given the order book position, some suppliers may decide to make locally to derive logistic advantages.

A large no of visitors will be foreigners, surely once they visit Goa, they may decide to return again with their families, so it can give a boost to tourism. To my mind, holding the defexpo has advantages which cannot be ignored. It is also a three day event and not something year round which would all for infrastructure to be set up.

The opposition is using the mistrust created in the minds of the population by the series of U turns taken by the ruling dispensation. So if people believe that the Defexpo is a precursor to something more sinister or having a hidden agenda, can they be blamed. The Government changed the tree Act to accommodate a booze manufacturing Company. The Government used a back door, the Investment Promotion Board to push through projects under the guise of eco tourism, by allowing change of land use prohibited under the TCP Act. They even passed a booze project which is not a thrust area as per the mandate of the IPB and that too in an orchard zone. The government of the day suffers from a trust deficit. Having the education presentation will be a step in repairing or building trust with the citizens, however a lot more will have to be done.

One will notice that Babu who is the sitting MLA is not very vocal, he is around but he is not leading from the front, that is being done by others, why? Simple. He has too many skeletons in his cupboard and so he has to be careful. Very careful. After all he was the one who wanted a food park in that land.

The other component that is driving the opposition to the Defexpo is the church. They are asking the faithful to oppose the Defexpo because they were not taken into confidence. Oh really now. Did the Church take into confidence its own flock when they alienated large tracks of land. Did they respond transparently to the questions of their flock or did they do what the Government tried, brazen it out. The church has lost it moral authority to question land deals, Vaxim is church property which is being converted for eco tourism using the backdoor called IPB. Does the Church feel responsible, can they stand with placards in Vaxim as they are doing in Betul. The church has to introspect hard inwards and then come out with all humility and accept it goofed up. They must agree that mistakes have been made in the past and in future more care will be taken and transparency will be the key. Then they will have the moral right to lead the flock against the unjust ways of the Government of the day.

There is lots of work to be done and lots of areas where we as citizens are being short changed, let us focus on those areas and not get distracted and waste our efforts on small things. Defexpo does not deserve to be opposed just for the sake of opposition.

The Reluctant Entrepreneur: Credit

FIrst appeared in Business Goa

Recently I went to a store where I go regularly to get consumables. This time I need some items which were more capital in nature. I asked the owner if he would accept my cheque. He said he does not accept cheques but I could go to the ATM next door and withdraw cash.. Since it was upward of 20K I was reluctant and two, I am ATM challenged. So I did the next best thing, I drove to another store, a few kilometers away, he accepted my cheque and concluded the business.

Is this not a dilemma entrepreneurs face day in and day out. Are there any easy answers? Is it dependent on an ability to take risk especially when the supplier has no way of checking credit worthiness of the customer quickly. In the above case on can say the the first supplier lost business, on the other hand what if the first supplier has burnt his hands giving credit. That would explain his reluctance to give credit or accept a cheque, he may have decided it is better not to give credit and lose the business (read profit) rather than give credit and lose money (read cost and profit).

Bad creditors add another dimension, ie heart burn. One has to keep calling them up, a non value adding activity. Relationships usually sour if the time taken to recover is more than what was committed. Very often we see a sign announcing credit is given to only those above 80 yrs accompanied by both parents. Does this mean “Credit” is a bad word?

First we have to accept CREDIT is part of the business system. How we handle, how much credit to give and for how long is dependent on experience and policy and can vary. There is a myth that supplier credit is the cheapest as there is usually no cost. Believing this myth everyone tries to maximise it by delaying payments which is not the best way to do business or build trust. Ask any defaulter, they will have a hard time getting suppliers to give them material, and if they do it will be at a higher price.

There is a big cost but unseen. Customers who misuse the credit system are most likely to get effected in times of shortages with the supplier preferring better paying customer. Suppliers factor the delayed payment and adjust prices accordingly. A customer who delays payment usually scarfices his ability to negotiate. More importantly the customer should expect his consignments to be delayed. In short supplier credit is not cheap.

We have seen suppliers support us during the times we had cash flow issues because in good times we ensured payments were made in time. Once the cashflows eased we would bring the payment schedule back on track. It actually works both ways. We believe in doing anything for our customers, and customers must do one thing for us, PAY IN TIME. This must be applied to the supply chain, there the company is a customer and supplier is looking for ontime payment.

The best way to do business in in cash. At the end of the day when you close your sales book there is no outstanding. The second best way is to give credit. Be clear of the payment terms you are offering. We used to give our dealers a credit limit based on monthly sales, what we forgot to add was “Rs30,000/- or 30 days which ever is earlier”. A few dealers when asked for payment would say but we have not crossed the limit even if the payment was outstanding more than 30 days. BE CLEAR

Customers agree to pay on a certain date. If there is a default, then next time the credit facility is withdrawn with the clear remark that earlier promise was not honoured. A PDC is another way to go. This is because the laws are now more in favour of the depositor in case of dishounour.

The chinese method which also acts as an instant credit check with an unknown customer is by offering a discount say 2% for cash payment in lieu of 30 days credit. This translates to an interest cost of 24%. If the the customer cannot go out and borrow @ less than 24% p.a (today interest rates vary from 12 to 18%) from those who know him, it means you were better off not giving him credit.

An entrepreneur must know that the decision to give or not to extend credit should not be made at the spur of the moment, it must be well thought out and must become “policy” for that Company. This ensures that employees know exactly how things work and what has to be done. Do not change the policy based on the size of the order. The owner who refused to accept my cheque had a policy in place and more importantly respected it, irrespective of who and how much.

Vanxim: Where is the tolerance of the Church

This first appeared in The Goan Everyday 3 Jan 2016 in response to a press release by the Church in Goa

I have been called mischievous over the years but never malicious. There is always a first time. The Catholic church has decided to label all those who asked questions on the Vanxim land sale as malicious and mischievous. Manohar Parrikar calls all those who question his pet projects as anti development, name calling seems to be a general pastime. The general tone of the unsigned press release is condescending at best but more importantly seems to suggest that it is the final word to nosey or noisy laity. Where is the “tolerance” the Archbishop spoke of the other day when addressing our netas during his annual Christmas address. Is the sermon only for our Netas and not for the clergy?

Wonder why the Archbishop uses the Diocesan Centre for Social Communications Media when people directly involved in these matters are the Financial Administrator and Secretary of the Section of Confraternities and Fabricas who should answer the queries of the people. Should not the statement should come from their respective offices?

The press release is a little different from the information posted on the Archbishop's website, it gives more insight but as usual not enough. The details of the Mamlatdar's order were not mentioned earlier. It means that because the Church felt their land would go to tenants at a cheap price of Rs 0.36/sqm they preferred to transfer their rights to others who could squeeze out a better deal. If aggrieved why was a legal challenge not mounted directly. Yet the same social justice ministry is up in arms pushing for Baina squatters to be accommodated. Surely by endorsing such positions the social justice ministry loses its moral right to

In the website, the land was sold to Gaunakar, in the press release he is referred to as “one Gaunekar” someone unknown. Really. Did the committee that chewed on his offer not consider for one moment, how an offer exactly equal to the one suggested by the valuer was received. Valuation is based on many factors, one being last sale deed of the piece of land nearby and only on the official declared price. Most land deals have a cash component. The church cannot take cash so the cheque portion should increase. No one sells their land at the price it is valued by valuers unless it it is a distress sale. The value is taken as a reference point. Every seller will attempt to get more. The simplest mechanism available was an auction. Maybe that was not feasible as secrecy was key.

The stated reason for the sale was because the Santa Monica Fund which owned the land needed funds for the ever growing maintenance needs of the Santa Monica Convent One of the worst reasons to sell land. Surely today the monastery requires funds for repairs which lands will be sold, how will the repairs be funded? Did the finance committee not think of this future requirement? Who are the worthies that make up this committee, are they financial or spiritual gurus? If the mega retreat center could be funded by donations of the faithful, so could Santa Monica be repaired by donations without selling land.