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Contents

Simplifying knowledge dissemination Cover story:


Managing Editor
Sandeep Manudhane q Egypt rejoice, Mubarak has gone ......................................... 08
Manisha Manudhane
Senior Editor
Mitesh Sanghvi
Kapil Dev Upadhyay Current events
Executive Editor
Manish Saraf q India ........................................................................................ 16
Editorial Correspondents
Vinay Goyal q World ...................................................................................... 24
Correspondents q Business and economy .......................................................... 32
Tarin Mehta
Nimesh Upadhyay
Marketing and Sales :
Manish Saraf - 97555-99509
PT Panorama
Volume 9. Edition 08. February 2011
q The repositioning of Airtel ................................................... 05
Editorial Office
PT education Headquarters,
q Cement industries in India ................................................. 42
Yeshwant Plaza,
Opp. Railway Station Indore - 452001 q Problem-solving skills .......................................................... 48
Ph : 0731-307 00 00
Fax : 0731-3070099
E-mail : preptalk@PTeducation.com
Profiles
© 2008 All rights reserved.
q
Reproduction or translation in any language in whole or in
parts without permission is prohibited. Pandit Bhimsen Joshi ............................................................ 65
Articles and contributions – courier or emails – should be q Jairam Ramesh ....................................................................... 69
addressed to
PREP-TALK DEPT., c/o Mr. B. S. Supekar.
Unaccepted articles may not be returned.

Published by Manish Saraf on behalf of PTETSL,


Yeshwant Plaza,
Regulars
Opp. Railway Station, Indore 452001.
q W. Edwards Deming .............................................................. 40
Disclaimer :
The information given in this magazine is true to the best of q Guestroom: My Guzaarish ................................................... 44
our knowledge. However, PT or any of its associates will not
be responsible in any manner for inadvertent errors that may
have crept into this publication. PT does not take q Facts about Indian Budget .................................................... 46
responsibility for returning unsolicited publication material.
q Brand icon: Wal-Mart Stores Inc.......................................... 51
q General knowledge ............................................................... 54
q Business Trivia....................................................................... 66
q Logo story............................................................................... 68
“To be a world class training and education organisation
shaping careers through innovative products and q Cricket World Cup Trivia ...................................................... 70
services & the use of human technologies.”
q Book review: It’s not about the bike ..................................... 72
Take Quote

Dear Readers, “Champions aren't made in gyms.


Champions are made from
something they have deep inside
2011 has showed signs of being an eventful year, with turmoils and upheavals at them: a desire, a dream, a vision.
one end and spectacular carnival at the other. “The old order changed, giving place to They have to have the skill and the
new and god fulfilled himself in many ways. He knew lest one good custom should will. But the will must be stronger
corrupt the whole world.” These immortal lines of an English poet have proved to be than the skill.”
prophetic! – Muhammad Ali

Monarchy in Egypt is toppled; people's rule has come to be established. Dictators “You can never cross the ocean
are on the run, 'Vox populi' if unheeded, would prove to be catastrophic for the unless you have the courage to lose
incumbent. This is the cover story of the current edition of PrepTalk. sight of the shore.”
– Christopher Columbus
At the brighter side is the World Cup, the cricket carnival, participated by 14
countries across the globe. In a country where cricket is a 'religion' this 'Mahakumbh' “You can avoid reality, but you
is indeed a momentous occasion. The issue devotes some pages for entertaining cannot avoid the consequences of
readers with goings-on in cricket. With the passing away of Pandit Bhimsen Joshi, the avoiding reality.”
country has lost a titan of classical Music, who was a non-conformist and loved to - Ayn Rand
experiment in the realm of Classical Music.
“ When you do the common things
It is important to know certain things about cement industries, their economics in life in an uncommon way, you
and operations, their contribution towards the national economy. Some pages are will command the attention of the
earmarked towards this. The saga of Wal-Mart, a major brand, whose presence is felt world.”
in emerging India, would inspire each one of you. - George Washington Carver

Since many among you would be gearing up to encounter the GD/PI phase of “A friendship founded on business
selection to the IIMs and the B-schools, being equipped with the right arsenal would is better than a business founded
matter. Ideas on Budget, its features, factors behind its formulations, its on friendship.”
presentation, repercussions, fall out in the context of the economy, the finer and - John D. Rockefeller
subtler aspects, et, al, need to be gathered. The issue comes out with interesting
information regarding the budget. “ Research is what I'm doing when
I don't know what I'm doing.”
As always, PrepTalk aims to enrich, enlighten and elucidate on matters, issues - Wernher Von Braun
and concerns of contemporary interest. Many among you would have experienced
the GD/PI phase of selection. Many among you might be waiting for your turn. Life is “Democracy does not guarantee
dynamic. Move on, with full zeal and awareness, ready to take on the next challenge, equality of conditions – it only
unaffected by the outcome of the previous one. guarantees equality of opportunity.”
– Irving Kristol
The full-throated cries of KARKEDIKHAYENGE should fill the air.
“A pessimist sees the difficulty in
Manish Saraf every opportunity; an optimist sees
COO, PT education the opportunity in every difficulty.”
– Sir Winston Churchill

PT’s PrepTalk – February 2010 03


Letters to the editor

India Goes Green English and Trivia connected with


business. The profiles of Tulsi Tanti,
Green Technology is needed for Nitish Kumar, Mark Zukerberg and
sustainable development. This idea Gopalkakrishnan were touching. The
has impressed me. Likewise, Indian compendium of happenings in India
IT industry should aim to become and the world is indeed a good recipe
“Green IT”. This is far-reaching in for strengthening one’s General
nature (PrepTalk, Facets). The Awareness. Snippets and other tit-
handling of the subject was mature. bits of information caught my
Facets contained many articles that attention.
were readable. The reality behind
Reality shows was eye-opening. The issue was complete in coming
Health Awareness in India came out out with information. Tips on doing
with harsh facts, which cannot be well in forthcoming exams
ignored. The article on PDS, the supplemented the rest. Kudos to the
mechanism and the objectives would team for coming out with such rich
certainly make many Indians sit up stuff.
and do something in this field. – Gargi Ekbote, Pune

There is so much happening


around us which calls for the much as they are worshipped and
intervention of each one of us, in our respected. Articles like the Ogre of Price
own capacity. Only that we should
wake up from slumber and strive to do
Rise, Skeletons in India’s cupboard and
the Growth story of China were
FEEDBACK !
something for India. enriching. I enjoyed reading the piece Your comments and
– Bimal Gadhwala, Surat on Entrepreneurship. Facets edition of views on PrepTalk
PrepTalk was truly engrossing. There are needed to help
Exploiting human resources were variety of subjects on which well- Us make it better.
written pieces were made.
Which articles did you like?
I was thrilled to learn that India’s –Charanjit Ghooi, Chandigarh
Which columns do you
populous state need not be a cause to like to read regularly?
ring alarm bells. India’s Demographic India Going to UN Which are the best parts of
Dividend threw sufficient light on the
the magazine?
feature of majority of India’s How nice it would be if India’s claim
Which are not?
population being active, unlike those for a permanent seat in theUN is taken
of China, Europe and America. Only note of. Many leaders have supported How to improve?
there should be literacy among them., this idea. PrepTalk, Facets, gave vivid
Send feedback to:
They should be proficient and skillful. details of this development. At the other
‘Shakti’ has been the main feature of end, the saga of Aung San Suu Kyi was preptalk@PTeducation.com
the Indian way of living. It is no truly inspiring. The edition contained
wonder that women are empowered as useful section on GK. Improving

04 PT’s PrepTalk – February 2011


The repositioning of Airtel
by Sandeep Manudhane

A ll of us have been hit


in the face by the new
logo and brand
identity assumed by Airtel
recently. There is no street,
What has changed, really?
Well, Airtel has evolved with changing times quite rapidly.
From a very small and loss making telecom company in the late
'90s to a mammoth multinational (almost), it has traversed a
long distance. The significant challenges it faced on the way
no traffic junction, no major
were strategic - Mukesh Ambani's entry into Telecom,
hoarding that's left
introduction of CDMA as a rival platform, emergence of newer
untouched by the striking
players, and the need to spread its footprint around the world
red and white combination of
(not restricting to India alone). To the credit of the company's
its unique new design.
founders, so far, the challenges have been met with ample
confidence and style. Reliance could not trample Airtel no
Why is Airtel doing what
matter how hard it tried to, and the myriad and byzantine
it is doing? And how is it
We have arrived, world! legal/regulatory apparatus of Indian Telecom sector did not
doing it? What does it hope to
decelerate its growth. It has also entered into all the new-fangled
gain from this? Here is a detailed analysis.
areas of telecom - broadband, 3G, VAS and all such terms which
most of us fail to fathom! Finally, Airtel rose to the occasion and
What's in a name! spread to Africa, thereby becoming the first true Indian Telecom
Well, nothing really, but surely a lot! The name carries the multinational. So now the Airtel head honchos feel that the new
entire persona of the brand with it. The words used, the colours look of their company must be very modern, smart, youthful and
chosen, and the way the whole thing blends together is a direct bright. Remember that India and Africa are both young regions.
representation of the class of the brand itself. Just like situations So, smallcaps + swoosh + red is the combination chosen.
and circumstances in the real world change, so does a brand's
need to stay relevant and contemporary. The latest major
upgrade by Airtel to its visual brand representation is precisely
Why smallcaps + swoosh + red?
Small caps - because it represents the
this - a desire to stay relevant (in the consumers' minds) in a
internet and email generation, and looks
changed world.
informal
Swoosh - touch of class, speed, modern
A picture speaks a thousand words Red - aggressive, appealing, visible
As said, the logo becomes the
visual depiction of the entire Also, if you look at the Zain logo carefully,
company. The striking visual the element of swoosh (resembling the "a") Swoosh?
becomes the live embodiement is there already. Perhaps, Airtel had to borrow that (as part of the
of everything that the company deal) and fix it into the new existence. So the new airtel is the old
stands for. People may not know Airtel plus the Zain as a shape, plus a striking red.
the company well, or may not be Time for goodbye
its customers, but the logo strikes a certain chord in their heads A problem this creates for Airtel
when they see it, and the company ensures that it (it's brand, that surely is that it is strikingly similar to
is) has ensured a position in the mindspace. At least for now. Vodafone's visuals. But I guess Red was
The large clutter in the brand street also explains why the "red" indispensable, and that's the
was chosen - the human mind is hit hard by red. That's why
Curry for the brain explanation. There are 3 major brands
traffic lights are red too (of course, there's the Physics behind it - now that come to mind that play on this
minimum scattering due to maximum wavelength etc.). Red factor - The Economist magazine, Vodafone and Airtel.

PT’s PrepTalk – February 2011 05


What does this do to a consumer's mind?
Why Africa?
Well, Red being the colour it is, That's the last frontier for capitalism. It's untapped,
the logos' appeal tend to overlap. unexplored and hugely nascent. Any company that has the 21st
When we see "The Economist" century leadership dream on its radar can't afford to miss on that
logo, we may recall instinctively the continent. Also, telecom has proven to be the biggest social
other two as well. And if this trend transforming agent in developing nations. Studies have shown
accelerates, and some more an almost direct correlation between the growth of telecom
mainstream companies decide to density and the growth of that country's GDP. Many African
The original? go red, it'll be trouble. nations understand this and are encouraging the telecom
sector's spread. Airtel (like many others) sensed this and was
Red, red everywhere and not a place to hide.. trying to enter Africa for a long time. It finally succeeded with
the Zain deal.
Operational excellence in executing the change
I would rate the company 9/10 on this. It was amazing to see Money, honey?
that the logo was changed almost "everywhere" simultaneously, a How much would this have cost the company? A better
gargantuan task, given that there must have been be thousand question would be - how much would it have cost if the change
outlets and locations where the old logo was prominently were not made by the company? Many companies delay a change
displayed and the new one had to "suddenly" appear. We all know - it's taxing on top management's bandwidth, after all - and pay a
that telecom companies specialise in such outdoor acrobatics big price. In the world of branding, remember the golden rule -
quite skillfully, but this was a very refined game that Airtel Timely change is priceless, Delayed change is worthless.
played. I carefully saw that even on the smallest of shops
(sponsored glowsigns), the new design was up and running! Having read all this, it's worth reading the company's official
Now that's a fairly complex operation. My guess is that work on line on the change! Taken from their website, we quote
this change must have begun at least 90-120 days in advance, and
a dedicated team of at least 20 to 30 at the Airtel HQ would have airtel unveils new youthful and dynamic global
directed the pan-India transformation. Maybe even more. But identity
the commitment shown towards this change was intense, and
appreciable. Not many companies will do it with such speed and Crosses the 200 million customers landmark, reinforces
aggression. Now, if only Airtel can transfer the same spirit to the leadership position in global telecom
other parts of its operations (customer service, delivery, new
products) it would be good. A R Rahman composes a refreshed airtel signature tune, in
line with the new identity and global outlook
A few pictures will prove this point!
Bharti airtel, a leading global telecommunications company,
unveiled a new identity – a shared worldwide vision across its
operations in 19 countries in Asia and Africa. airtel also
announced that it has crossed the significant milestone of 200
million customers, reinforcing its leadership position in global
telecom. Announcing this, Mr. Sunil Bharti Mittal, Chairman
and Managing Director, Bharti airtel said, “Fifteen years ago
Bharti airtel started its journey in India with a promise of
Bach ke jayega kahan! Every single point of sales delivering world class and affordable services. Today, as we
expand on the global stage, this new brand identity gives us the
opportunity to present a single, powerful and unified face to our
customers, stakeholders and partners around the world. It
reinforces our promise to deliver innovative services and a
superior brand experience to our 200 million customers across
Asia and Africa.” From the birth of the brand as a single city
operation in India, airtel has truly gone global with the creation
of a single and unified identity across the world.

Gamut of services Big time!

06 PT’s PrepTalk – February 2011


The new face of airtel is youthful, downloads, the maestro has once again
international, inclusive and dynamic – delivered a master piece.
representing the journey of the first Indian
brand to go truly global. The new identity The new tune retains the essence of the
underlines airtel's willingness to embrace original but uses an inspiring musical style,
everything that is new. The red colour, which is with a universal appeal, that will be loved by
an integral part of the brand, continues to listeners the world over. The unveiling of the
represent the energy and dynamism that has new identity also marks the 200 million
made airtel the success which it is today. The customers milestone for airtel. airtel crossed 50
new curved addition to the logo is a symbol million customers in October 2007 and 100
which will help ensure instant recognition million in May, 2009. The company added the
across diverse international markets. The airtel next 100 million customers in just 18 months.
signature tune has also been refreshed by A R This further cements airtel's positions as one of
Rahman, making it youthful and dynamic in line world's leading telecom companies. For its
with the new visual identity. Like the earlier customers in India, airtel also announced that it
Not just Africa, tune, which has made history as world's most was on course to launch its 3G services by the
Middle-east too downloaded mobile music with over 150 million end of the year.
a

INS Shivalik:
India's first indigenous stealth warship

I ndia affected a generational shift in its warship-building


capability by commissioning INS Shivalik–the first
indigenously built stealth frigate that is the biggest in its
class in the world. The ship, which is 143 metres long, can
tactically fire weapons even before the enemy detects it.
In future, the Navy is looking
to have a data exchange system
with the IAF's Airborne
Warning and Control System
(AWACS). A system is being
integrated with the AWACS to
The hard-to-detect warship will form a crucial component provide data that may be out of
of the Indian Navy. It is equipped with a mix of Indian, Russian, the range of the ship. This will
Israeli and western weapons and sensors. provide an edge in firing of
weapons.
Two other such ships–INS Satpura and the INS
Sahayadari–would follow soon. Each ship would carry on board The naval satellite to be
long-range surface-to-surface Klub missiles, area defence launched in the near future will also help this ship to coordinate
missiles Shtil and Barak, anti-submarine torpedoes, 100 mm with other ships in the fleet for firing of weapons and will form
mounted gun and six-barrelled 30 mm gun. Ships like these the network centric operations. The combat management
would form the core of the India's battle fleet in the first half of system developed by the Bharat Electronic Systems will give the
this century. ship's captain a view of all weapons and data in one screen.

A 250-member crew, including 35 officers, will man INS INS Shivalik can hoodwink enemy radars, sensors by
Shivalik. The new design features give the ship enhanced concealing its size. It has three-dimensional warfare
operational capabilities in terms of survivability, stealth, sea capability–surface, air, underwater. Its weapons suites have anti-
keeping, ship handling and weapons. ship, anti-submarine and air defence missiles.

The sea king Choppers on board will carry torpedoes to The ship is powered by a unique combination of gas, diesel
target submarines which are out of the ship's ranges. It will have engines and can stay in sea for more than 3 weeks or cover 10,800
an array of sensors and an anti-missile defence for its own km without refuelling. Its filters can protect crew during a
protection and also coordinate the firing of on-board weapons. nuclear, biological or chemical attack.
a
PT’s PrepTalk – February 2011 07
Cover story

Egypt rejoice,
Mubarak has gone

C ries of "Egypt is free" rang out


and fireworks lit up the sky as
hundreds of thousands
danced, wept and prayed in joyful
pandemonium after 18 days of
peaceful pro-democracy protests
forced President Hosni Mubarak to
surrender power to the military,
ending three decades of authoritarian
rule.

Ecstatic protesters in Cairo's


Tahrir, or Liberation, Square hoisted
soldiers onto their shoulders and
families posed for pictures in front of
tanks in streets flooded with people
streaming out to celebrate. Strangers
hugged each other, some fell to kiss
the ground, and others stood stunned The 82-year-old leader epitomized the complex trade-off
in disbelief. the United States was locked into in the Middle East for
decades: Support for autocratic leaders in return for stability, a
Chants of "Hold your heads high, you're Egyptian" roared bulwark against Islamic militants, a safeguard of economic
with each burst of fireworks overhead. interests with the oil-rich Gulf states and peace – or at least an
effort at peace – with Israel.
"I'm 21 years old and this is the first time in my life I feel free,"
an ebullient Abdul-Rahman Ayyash, born eight years after The question for Washington now was whether that same
Mubarak came to power, said as he hugged fellow protesters in arrangement will hold as the Arab world's most populous state
Tahrir Square. makes a potentially rocky transition to democracy, with no
guarantee of the results.
An astonishing day in which hundreds of thousands
marched on Mubarak's palaces in Cairo and Alexandria and At the White House, President Barack Obama said
besieged state TV was capped by the military effectively carrying "Egyptians have inspired us." He noted the important questions
out a coup at the pleas of protesters. After Mubarak's fall, the that lay ahead, but said, "I'm confident that he people of Egypt
military, which pledged to shepherd reforms for greater can find the answers."
democracy, told the nation it would announce the next steps
soon. Those could include the dissolving of parliament and The United States at times seemed overwhelmed during the
creation of a transitional government. upheaval, fumbling to juggle its advocacy of democracy and the
right to protest, its loyalty to longtime ally Mubarak and its fears
Mubarak's downfall at the hands of the biggest popular that the fundamentalist Muslim Brotherhood – or more radical
uprising in the modern history of the Arab world had stunning groups – could gain a foothold. Mubarak's fall came 32 years to
implications for the United States and the West, Israel, and the the day after the collapse of the Shah's government in Iran, the
region, unsettling rulers across the Mideast. prime example of a revolution that turned to Islamic militancy.

08 PT’s PrepTalk – February 2011


The protests were started by a small core of secular, liberal
youth activists organizing on the Internet who only a few months
earlier struggled to gather more than 100 demonstrators at a
time. But their work through Facebook and other social network
sites over the past few years built greater awareness and
bitterness among Egyptians over issues like police abuse and
corruption.

When the online activists called the first major protest, on


Jan. 25, they tapped into a public inspired by Tunisia's revolt and
thousands turned out, beyond even the organizers' expectations.
From there, protests swelled, drawing hundreds of thousands.
The Muslim Brotherhood joined in. But far from hijacking the
In Egypt, persecuted democracy activists frequently protests as many feared, it often seemed co-opted by the
denounced the U.S. government for not coming down harder on protesters, forced to set aside its hard-line ideology at least for
Mubarak's rights abuses. Washington's mixed messages during now to adhere to democratic demands.
the crisis frustrated the young protesters. They argued that
while the powerful Brotherhood will have to be allowed to play a About 300 people were killed in the course of the turmoil.
future political role, its popularity would be diminished in an Police attacked the first protests with water cannons and gunfire
open system where other ideologies are freed to outweigh it. and then a force of regime supporters believed to be paid thugs –
assaulted Tahrir trying to dislodge the protesters, only to be
Neighboring Israel watched the crisis with unease, worried beaten back in two days of pitched battles.
that their 1979 peace treaty could be in danger. It quickly
demanded that post-Mubarak Egypt continue to adhere to it. Wael Ghonim, a Google Inc. executive who earlier this year
secretly created a Facebook page that became a crucial protester
Any break seems unlikely in the near term. The military organizing forum, said he "went mad" when he heard the news of
leadership supports the treaty. Anti-Israeli feeling is strong Mubarak's ouster.
among Egyptians, and a more democratic government may take
a tougher line towards Israel in the chronically broken-down "I expect a bright future. I trust in 80 million Egyptians,"
peace process. But few call for outrightly abrogating a treaty that Ghonim, who was arrested immediately after the protests began
has kept peace after three wars in the past half-century. and held for 12 days, told The Associated Press.

From the oil-rich Gulf states in the east to Morocco in the Mubarak, a former air force commander came to power after
west, regimes both pro- and anti-U.S. could not help but worry the 1981 assassination of his predecessor Anwar Sadat by
that they could see a similar upheaval. Several of the region's Islamic radicals. Throughout his rule, he showed a near
rulers have made pre-emptive gestures of democratic reform to obsession with stability, ensuring control through rigged
avert their own protest movements. elections, a constitution his regime wrote, a ruling party that
monopolized the levers of state, and a hated police force accused
The lesson many took: If it could happen in only three weeks of widespread torture.
in Egypt, where Mubarak's lock on power appeared unshakable,
it could happen anywhere. Only a month earlier, Tunisia's
president was forced to step down in the face of protests.

"This is the greatest day of my life." Nobel Peace laureate


Mohammed ElBaradei, whose young supporters were among
the organizers of the protest movement, told The Associated
Press.

"The country has been liberated after decades of


repression," he said adding that he expects a "beautiful"
transition of power.

Perhaps most surprising was the genesis of the force that


overthrew Mubarak.

PT’s PrepTalk – February 2011 09


He resisted calls for reform even as public bitterness grew position as president of the republic," he said. "He has mandated
over corruption, deteriorating infrastructure and rampant the Armed Forces Supreme Council to run the state. God is our
poverty in a country where 40 percent live below or near the protector and succor."
poverty line.
The question now turned to what happens next. Protesters
Throughout the crisis, Mubarak backpedaled with on Friday had overtly pleaded for the army to oust Mubarak. The
concessions, replacing his government, purging his ruling party country is now ruled by the Armed Forces Supreme Council,
and moving to prosecute some of its most unpopular figures. But consisting of the military's top generals and headed by Defense
the moves did nothing to diminish the regime's power – and did Minister Field Marshal Hussein Tantawi
not satisfy the steadily swelling protests.
After Mubarak's resignation, a military spokesman appeared
Up to the last hours, Mubarak sought to cling to power, on state TV and promised the army would not act as a substitute
handing some of his authorities to his newly appointed Vice for a government based on the "legitimacy of the people."
President Omar Suleiman, while keeping his title.
He said that the military was preparing the next steps
But an explosion of protests on Friday (February 11, 2011) needed "to achieve the ambitions of our great nation" and would
rejecting the move appeared to have pushed the military into announce them soon. He praised Mubarak for his contributions
forcing him out completely. to the country. Pointedly, he did not salute his former
commander-in-chief. Instead he stood at attention and raised
Hundreds of thousands flooded the main squares of cities his hand to his cap in a salute to protesters killed in the unrest.
around the nation. Soldiers stood by, even threw cookies and
biscuits to protesters who massed in front Abdel-Rahman Samir, one of the
of Mubarak's palaces in Cairo and protest organizers, said that the
Alexandria, chanting for him to go. movement would now open negotiations
Others blockaded the towering State with the military over democratic reforms
Te l e v i s i o n a n d R a d i o B u i l d i n g but vowed that protests would continue to
overlooking the Nile River in Cairo, ensure that change is carried out.
blocking employees from entering.
"We still don't have any guarantees yet
Ahmed Kassam, an engineer, said – if we end the whole situation now, then
that he marched with crowds for two it's like we haven't done anything," he
hours across Cairo from Tahrir to the said. "So we need to keep sitting in Tahrir
Oruba palace. "We were shouting at until we get all our demands."
people standing in their balconies and
they came down and joined us. We have thousands behind us," But, he added, "I feel fantastic. .... I feel like we have worked
he said. "Today I feel that something is going to change. I feel so hard, we planted a seed for a year and a half and now we are
very, very powerful." now finally sowing the fruits."

Protesters stormed the main security headquarters in For the moment, concerns over the next step were
southern Egypt's main city Assiut, and two were killed by police overwhelmed by the wave of joy and disbelief – and an
opening fire before the province's governor was forced to flee, overwhelming pride that they had waged a peaceful campaign
escorted to safety by the army. crowned with success.

The ousted Mubarak himself flew to his isolated palace in In Tahrir Square, the crowds of several hundred thousand
the Red Sea resort of Sharm el-Sheikh, 250 miles from the watched and listed to Suleiman's speech on televisions and on
turmoil in Cairo. mobile-phone radios. When he finished, they burst into wild
cheers, waving flags and chanting "Allahu akbar," or "God is
Suleiman – who appears to have lost his vice president's post Great" and "the people have brought down the regime."
as well in the military takeover – appeared grim as he delivered
the short announcement on state TV Friday night that Mubarak Spontaneous lines of dancers threaded through the packed
was stepping down. mass of people. One man kissed the ground and thanked God
while others screamed, "Hosni is gone, Hosni is gone." Around
"In these grave circumstances that the country is passing the capital of 18 million, cars honked their horns in
through, President Hosni Mubarak has decided to leave his celebration.

10 PT’s PrepTalk – February 2011


Born in 1928 in Munofiya governorate in the Nile River delta,
Mubarak exhibited a leaning toward the military. A graduate of
the Air Force academy, he served as its director between 1966
and 1969.

In 1972, Sadat appointed him as Air Force commander; he


later received accolades from the late president over the
Egyptian Air Force's accomplishments during the conflict with
Israel.

In 1975, Sadat appointed Mubarak to the post of vice-


president and gave him his first taste of mainstream politics as a
senior member of the ruling National Democratic Party (NDP).

It was not clear why Sadat chose Mubarak, although some


believe it was in reward for Mubarak's effective tenure as chief of
the air force.

Outside the Oruba presidential palace, one man sprawled on


Sadat's assassination
the grass in shock amid the cheers. Others handed out sweets
Talaat Sadat, the late president's nephew and current
and waved their hands in V-for-victory signs. The crowd then
member of parliament, alleged that Mubarak was about to be
began to march in a sea of Egyptian flags back to the protest's
dismissed from his post a few days before Sadat's
heart, Tahrir.
assassination.
Throughout the night, Tahrir Square and the surrounding
In 2006, marking the 25th anniversary of his uncle's death,
downtown streets were transformed into a massive party.
Sadat accused unnamed generals in the Egyptian military of
Thousands streamed in from across the city, jamming bridges
masterminding the assassination plot.
over the Nile. Army checkpoints surrounding the square for days
melted away as some soldiers threw themselves into the throngs.
The military strongly denied the allegations and a military
In the streets, parents took pictures of their children posing with
court sentenced Sadat to one year in prison for defaming the
Egyptian flags.
national army.
State television, a bastion of unwavering support for
Mubarak, had an almost instant change of tone. After EGYPT'S ISOLATION
disparaging the protesters as foreign-backed troublemakers for
days, it began reporting the celebrations as a victory for freedom. When Mubarak assumed power, Egypt was isolated from
Egyptians, one reporter outside Oruba palace proclaimed, "are Arab and Muslim countries, many of whom had broken off
able to move the waters that have been still for 30 years.” diplomatic ties after Sadat signed a peace treaty with Israel in
1979.
History
In one of its greatest diplomatic defeats, Egypt was kicked
Incumbent President Hosni Mubarak, a long-time out of the Arab League and its headquarters were moved from
heavyweight in the Middle East, was re-elected in Egypt's first Cairo to Tunisia.
multi-candidate presidential election, the Presidential Election
Commission announced on Sep. 9, 2005. Mubarak's first foreign policy mandate was to bring his
country back into the Arab fold and to resume ties with major
Hosni Mubarak, Egypt's longest-serving ruler since players in the region.
Muhammad Ali in the early 19th century and one of the longest-
serving leaders in the Arab world, succeeded Anwar Sadat, who His first success was in building a relationship with the then
was assassinated on October 6, 1981 while attending a military influential Arab leader Saddam Hussein, the Iraqi president,
parade to commemorate the 1973 Arab-Israeli war. whose country was locked in a bloody war with Iran.

PT’s PrepTalk – February 2011 11


Egypt signed on as Iraq's ally in the conflict, providing CRACKDOWNS
military assistance and expertise to Baghdad.
While Mubarak's foreign policies long dominated the Middle
By the time the Iran-Iraq war ended in 1988, Egypt had East, his domestic record was not nearly as successful.
successfully emerged from its isolation. In 1990, in a move
spearheaded by Iraq and Yemen, the Arab League headquarters Mubarak refused to lift a martial law decree, in force since
were returned to Cairo. Sadat's assassination, which allowed security forces to detain
civilians without warrants and to try them in military courts.
But the Arab rapprochement was short-lived as Egypt
opposed Iraq's invasion of Kuwait in August 1990. Mubarak Opposition groups say that the decree has allowed the
urged Saddam to withdraw his forces from Kuwait; when government to crack down on political expression.
Baghdad failed to do so, Egypt joined the US-led international
effort to drive Iraqi troops out of Kuwait.
In June 1995, Mubarak survived an assassination attempt on
his motorcade while he was attending an Organisation of African
ECONOMIC GROWTH Unity Summit in Ethiopia.

Egypt's military and logistical role in the US-led coalition Egyptian authorities accused al-Gama'a al-Islamiyya, a
during the first Gulf War violent group which had targeted Egyptians and tourists in
earned for it Washington's previous attacks in Egypt in a bid to overthrow the government,
favour, which, in turn, of orchestrating the attack.
pressured G8 countries to
write off much of Cairo's Shortly after Mubarak's return to Cairo, the authorities
foreign debt. cracked down on Islamist groups, imprisoning hundreds,
leading human rights organisations to accuse the government of
The 1990s saw an increase in US financial aid to Egypt and human rights violations.
revived US-Egyptian strategic talks. The talks resulted in a
strategic alliance between the two countries and the
implementation of the US-Egypt Science and Technology
POLITICAL REFORMS
Cooperation Agreement.
In February 2005, Mubarak
The agreement was vital for Egypt, which is known to have called on parliament to amend
considerable high-calibre manpower, but suffers enduring Article 76 of the constitution to
financial problems. allow multiple candidates to run
in elections scheduled for later
One of the main objectives of the US-Egyptian alliance was a that year.
commitment to the peace process in the Middle East.
Throughout the 1990s, Egypt became the main peace broker However, opposition groups
between the Israelis and Arabs, including the Palestinians. said that the reforms imposed
new restrictions on independent
In 1994, Jordan followed Egypt's diplomatic route and signed presidential candidates that were not fielded by the ruling NDP.
a peace treaty with Israel.
Nevertheless, elections were held in September 2005, and
In successive years, the Egyptian resort of Sharm El Sheikh, for the first time, Egyptians were able to vote for multiple
which lies on the southern tip of the Sinai Peninsula - an area candidates. Mubarak won the elections with 88% of the vote.
seized by Israel in 1967 but returned in the 1980s as part of the
peace treaty - hosted several peace summits. Since his win, opposition and civil rights organisations have
accused Mubarak of planning to pass the presidency on to his
Arab press metaphorically nicknamed the resort the Arabian youngest son Gamal, who was appointed in 2002 as secretary-
Camp David. general of the NDP's policy committee.

In 2008, Mubarak managed to draw up a lull between Hamas The Muslim Brotherhood, an Islamist movement founded
and Israel. Mubarak's government is also currently playing a in 1928, is considered one of the most effective and popular
major role in Hamas-Fatah talks in Cairo for Palestinian national opposition groups in Egypt and is perhaps Mubarak's greatest
reconciliation. anathema.

12 PT’s PrepTalk – February 2011


Banned as a political party, the Brotherhood has persistently This accusation has been denied by the NDP's economic
called for political reforms and voiced strong opposition to committee which claims that the government managed to
Mubarak's continuing presidency. Hundreds of its members, reduce the number of unemployed Egyptians from 2.5 million in
including senior leaders, have routinely been arrested. 2003 to 1.9 million in 2008.

POVERTY AND CORRUPTION MEDIA FREEDOMS


Mubarak has also come under severe criticism for cracking
down on the local press. Despite some progress - the press,
theatre and cinema have become bolder in touching on issues
once considered taboo, including serious criticism of the
government and ruling party - critiquing the president is still
considered a red line.

In September 2007, several opposition journalists and


editors were arrested for "harming the public interest" by
publishing articles which a judge said implied that the NDP was
dictatorial.

Mohammed Sherdy, the deputy editor of Al-Wafd newspaper,


told Al Jazeera in 2007 that the sentencing stands as a message to
writers and journalists in Egypt that they are not allowed to
exercise their right to criticise the government.
Under Mubarak's liberal economic policies, business in
Egypt has experienced an unprecedented boom in the past few Ibrahim Eissa, the editor of the opposition newspaper al-
years, most notably in the real estate sector. Dustour, was arrested in March 2008 and imprisoned in
September for publishing reports suggesting that the president
However, Egypt is still plagued by rampant unemployment, was ill. Eissa's arrest cast doubts over just how free the Egyptian
with millions living in poverty. press really is.

The dichotomy of classes in Egypt has exacerbated criticism Although pardoned by Mubarak, Eissa went on to criticise
that Mubarak, and his son Gamal, favour a group of the lack of press freedom in his country.
businessmen within the NDP.
"This verdict isn't just about freedom of the press and
Opposition groups say that the NDP's business cartel have freedom in this country. This proves that anything concerning
used their authority to monopolise the country's wealth, while the president is a sacred and untouchable matter," he said.
most of the Egyptian people are living in despair.
"In this country, it's normal for journalists to be jailed while
The NDP has denied these accusations repeatedly and businessmen are freed," he said in reference to an acquittal in
stressed that the party is open to all Egyptians. August of five defendants over a 2006 ferry sinking, in which
more than 1,000 people died.
Egyptian opposition groups also blame Mubarak's
government for not doing enough to fight corruption. According
to the corruption perceptions index compiled by Global
Coalition Against Corruption, Egypt ranked 105 in the list of
least corrupted countries in 2006, tied with Burkina Faso and
Djibouti, and 115 in 2008.

Mubarak is also accused by opposition groups of failing to


fulfil the promise he made during his 2005 election campaign to
increase job opportunities. Victory March

PT’s PrepTalk – February 2011 13


VICE-PRESIDENT: OMAR SULEIMAN
Omar Suleiman was appointed as vice president in January
2011 amid a popular uprising against the government and given
the task of opening talks with the opposition.

The post is the one that President Mubarak occupied before


he was promoted to the presidency, but which he kept vacant
until 2011.

Mr Suleiman has been intelligence chief since 1993 and has


played a prominent public role in diplomacy - including in
Egypt's relations with Israel and key aid donor the United States.

As head of intelligence, he was said to be the mastermind


behind the fragmentation of Islamist groups which led the
uprising against the state in the 1990s. He is described as a long-
term confidant of Mubarak.

PERSONAL LIFE:
Born May 4, 1928, north of Cairo in Monufia governorate,
r Al-Ahali - opposition
where Sadat was also born.
r Al-Wafd - opposition
Married to Egyptian-Welsh Suzanne Mubarak. They have r Al-Messa - pro-government
two sons: Alaa, a businessman not involved in politics; and r The Egyptian Gazette - pro-government daily
Gamal, a banker who has reportedly been groomed to succeed r The Daily News Egypt - private daily
his father. Mubarak is in his 83rd year.
r Egypt Today - English-language monthly
EGYPT FACTS:
r Full name: Arab Republic of Egypt Television
r Population: 84.5 million (UN, 2010) r Egypt Radio Television Union (ERTU) - state-run,
r Capital: Cairo operates domestic and satellite networks, including Nile
r Area: 1 million sq km (386,874 sq miles) TV International and Nile TV thematic channels
r Majorlanguage: Arabic r Dream TV - private satellite network, operates Dream 1
r Majorreligions: Islam, Christianity targeting young viewers and Dream 2, an entertainment
r Lifeexpectancy: 69 years (men), 73 years (women) (UN) channel
r Monetary unit: 1 Egyptian Pound = 100 piastres r Al-Mihwar - private, via satellite
r Mainexports: Petroleum, petroleum products and cotton
r GNIpercapita: US $2,070 (World Bank, 2009) Radio
r Internationaldiallingcode: +20 r Egypt Radio Television Union (ERTU) - state-run,
operates eight national networks and external services
The press Radio Cairo and Voice of the Arabs
r Al-Ahram - state-owned daily, the oldest newspaper in the r Nile FM - private, Western pop
Arab world r Nogoum FM - private, Arabic pop
r Al-Ahram Weekly - English-language
r Al-Jumhuriyah - state-owned daily News agency
r Al-Akhbar - semi state-owned daily Middle East News Agency (MENA) - state-run
=
14 PT’s PrepTalk – February 2011
What is the 2G spectrum
scam about?
H ere is a background on the 2G spectrum controversy
that resulted in Communications and IT Minister A.
Raja of DMK resigning.

The issue dates to 2008, when nine telecom companies were


issued scarce airwaves and licences for second generation (2G)
mobile phone services, at Rs.1,658 crore (less that $350 million),
for a pan-India operation. As many as 122 circle-wise licences
were issued.

The opposition said that by giving the


airwaves cheap, that too in the controversial
manner of first-cum-first-served basis, the
exchequer had lost billions of dollars. The cut-
off date for applications was also arbitrarily
advanced. The opposition further stepped up its attack with two
examples on 2G auction:
Later, based on the auction of airwaves for third generation
(3G) services, which got nearly $15 billion to the exchequer, and Ø A new player, Swan Telecom, bought licences for 13
that for broadband access, which fetched over $8.5 billion, the circles with the necessary spectrum for $340 million but
notional loss was estimated at $38 billion to the exchequer. managed to sell a 45-percent stake in the company to UAE's
Etisalat for $900 million. This swelled its valuation to $2 billion
But Prime Minister Manmohan Singh himself defended without a single subscriber.
Raja's decision and said that all that his Communications
Minister had done was to implement a policy already in place and Ø Another new player, Unitech, paid $365 million as
none of the norms was flouted. licence fee but sold a 60-percent stake to Norway's Talenor for
$1.36 billion, taking its valuation to nearly $2 billion, again
without a single subscriber.
2G (or 2-G) is short for second-generation wireless
telephone technology. Second generation 2G cellular telecom Similarly, another licensor, Datacom, later became Videocon
networks were commercially launched on the GSM standard Mobile and S Tel now has large stake by Baharian Telecom. The
in Finland by Radiolinja (now part of Elisa Oyj) in 1991. Three other companies are Tata Tele, Idea Cellular, Loop Telecom,
primary benefits of 2G networks over their predecessors were Shyam Telelink and Spice.
that phone conversations were digitally encrypted; 2G
systems were significantly more efficient on the spectrum As recently as last month, the Supreme Court asked the
allowing for far greater mobile phone penetration levels; and solicitor general why the prime minister had not responded to
2G introduced data services for mobile, starting with SMS the representation by the opposition to sanction proceedings
text messages. against Raja.

First downloaded media content was also introduced in 2G The final blow came after the Comptroller and Auditor
phones. Ringtones were downloaded and paid for. Mobile General of India said that the entire process of spectrum
advertising was also introduced when SMS was used for allocation was undertaken in an arbitrary manner and that the
sending advertisementsand short headlines of news. advice of the industry watchdog was ignored and misused.
=
PT’s PrepTalk – February 2011 15
Current events

India
GOVT SCRAPS ISRO-DEVAS DEAL ON S-BAND VETERAN VOCALIST PT BHIMSEN JOSHI DEAD
SPECTRUM ALLOCATION
Legendary vocalist Pandit Bhimsen Joshi, who enthralled
The controversial S-Band spectrum generations of connoisseurs with his renditions of Hindustani
deal between ISRO's commercial arm classical music, passed away at a city hospital, Pune after a
Antrix and private firm Devas prolonged illness. He was 84.
Multimedia was scrapped.
A recipient of Bharat Ratna, the highest civilian award, Joshi
The decision to annul the deal was had been put on life support system, following old age- related
taken at a meeting of the Cabinet ailments leading to kidney and respiratory failure after his
Committee on Security (CCS) chaired by Prime Minister admission to hospital on 31st December, his family said.
Manmohan Singh on the basis of a recommendation from the
Space Commission. Joshi, the most-celebrated exponent of 'Kirana gharana' of
Khansahib Abdul Karim Khan, leaves behind three sons and a
The annulment comes in the wake of a raging controversy daughter.
over the deal for handing over 70 MHz of S-Band spectrum to
the private firm for Rs 1,000 crore on which the CAG has already A pall of gloom descended on the city as the news of his
initiated action. demise spread, with people making a beeline to his residence to
pay their last respects to the singer who was the most powerful
According to certain estimates, this deal may have resulted figure on the Hindustani music concert platform of 'khayal gayki'.
in a loss of Rs two lakh crore to the exchequer.
tututu
After news reports about the possible revenue loss appeared,
the Government and ISRO said the project was already under ALL SPECTRUM DECISIONS SINCE 2003-08 WERE
review and action has been initiated for termination of the WRONG: TELECOM PANEL
contract.
All decisions on spectrum allocation since 2003 by
The Prime Minister said that the deal had never been successive govts, including the UPA, were procedurally wrong,
operationalised and rejected suggestions that his office had held concluded the one-man committee, which probed into the
"backroom" talks with Devas after the Space Commission's procedural lapses following the telecom scam.
decision to scrap the deal.
Unveiling the report of the Shivraj V Patil committee,
He had said that if there has been delay in scrapping the deal, Telecom Minister Kapil Sibal said in New Delhi that the
this has been "only procedural". findings on procedural lapses are being sent to the Central
Bureau of Investigation, which is looking into the criminal
Devas Multimedia had termed as "disturbing and culpability in the scam.
inappropriate" the government's "unilateral" decision to
terminate the agreement and threatened to take legal action. Addressing a press conference after the arrest of former
telecom minister A Raja, Sibal said his predecessor had said that
It said the government had reached the decision "without he had "not deviated from the previous policies (the NDA
due investigative process and without following the principles of government) but the problem was that the previous policies
natural justice". were wrong."

16 PT’s PrepTalk – February 2011


Quoting the report, Sibal said that the committee found that "The process to get the C-17 heavy-lift aircraft is in the final
original spectrum allocation was "bad" and procedures were not stages. We are not satisfied with six C-130J only." Defence
followed both during the NDA government till 2004 and the UPA Minister added.
government up to 2008.
With its 20-tonne payload capacity, the aircraft will also help
It also said the DoT did not follow the advice of the Law the IAF bridge the gap in load-carrying capabilities of the
Ministry or the views of the Finance Ministry over pricing of Russian Ilyushin-76 and Antonov-32, which can ferry loads up to
spectrum. 40 tonnes and 8 tonnes respectively.

The committee has also recommended reforms in allocation The contract with the US includes training of aircrew and
of spectrum and penalty on hoarding of the scarce natural maintenance technicians, spares, ground support and test
resource. equipment, servicing carts, forklifts, loading vehicles, cargo
pallets and a team of technical specialists who will be based in
The former telecom minister has been arrested by CBI, India during a three-year initial support period.
which is investigating the case under the supervision of the
Supreme Court. The Super Hercules is a highly integrated and sophisticated
configuration, primarily designed to support India's special
tututu operations requirement.

IAF INDUCTS 'SUPER HERCULES' TRANSPORT Equipped with an Infrared Detection Set (IDS), the aircraft
AIRCRAFT can perform precision low-level flying, airdrops and landing in
blackout conditions.
After four decades, the Indian
Air Force (IAF) inducted an But in absence of defence agreements such as the CISMOA,
American origin aircraft, the C- the C-130Js will be without some of the critical communication
130J 'Super Hercules' transport equipment that is fitted on the American aircraft.
plane, augmenting its special
operational capability. The USAF, which is executing the government-to-
government deal, had taken possession of the first C-130J at a
Defence Minister A K Antony ceremony at Marietta near Atlanta on 16th Dec last year and
formally commissioned the handed it over to the IAF the same day.
aircraft into the newly formed 77 Squadron of the IAF by
handing over the keys of the aircraft to Unit Commanding The IAF along with Lockheed Martin has modernised the
Officer (CO) Group Captain Tejbeer Singh at Hindon air base home base of the C-130Js and created infrastructure for housing
near UP. 12 such aircrafts there, along with creating servicing and
operations facilities for the aircraft.
"C-130J will help the IAF to maintain its qualitative edge and
enhance its war fighting capabilities," Antony said in his address The company has also reinvested over USD 260 million into
at the induction ceremony. Indian defence sector under the offsets clause, which mandates
investment of at least 30 per cent of the worth of deals over Rs
Besides the Defence Minister, IAF chief P V Naik and the 300 crore in Indian defence companies.
American Ambassador to India Timothy J Roemer were also
present at the ceremony. Referring to the growing defence relationship between the
two countries as a key component of the US-India strategic
The C-130Js, the latest version of Hercules, with four partnership, the US ambassador said, "The sale of six C-130J
powerful engines and around 20-tonne payload-carrying aircraft strengthens our bilateral military relationship and
capacity, will enhance India's rapid reaction capabilities since enhances joint regional security efforts between our two
the rugged aircraft can land on unprepared. democracies."

Asked if the IAF would exercise the option of procuring Roemer also mentioned that the US President Barack
another six aircraft, the Defence Minister said, "We will increase Obama also, while addressing the Parliament during his India
the number of aircraft in the transport fleet of the IAF". visit, referred the two countries as "two global leaders".

PT’s PrepTalk – February 2011 17


The verdict also leaves some questions unanswered since
INDIAN FIRM GETS COURT NOD FOR ISLAMIC BANKING the current laws do not permit Islamic banking in the country,
CONCEPT because of which Prime Minister Manmohan Singh had asked
the Reserve Bank of India last October to study this issue in
The Kerala High Court gave detail.
the green signal to a company
registered under the tenets of "There have been from time to time demands for
sharia to start operating a experimenting with Islamic banking in the country," the Prime
financial institution based on Minister had said in Malaysia during an official visit there in
the principles of Islamic October last year.
banking with the participation
of a state-run firm. Such "I would certainly recommend to the Reserve Bank of India,
institutions cannot charge which is looking into this question, to look at what is happening
interest. in Malaysia in this regard," the Prime Minister had added.

Dismissing the petitions of Janata Party leader Subramanian As per estimates, nearly $1 trillion is currently being
Swamy and others, a division bench headed by Chief Justice J. managed by about 400-odd Islamic banks worldwide.
Chalameshwar gave the go ahead to Al-Baraka Company to start
the institution, with Kerala State Industrial Development Corp "However, Islamic banking is possible through a separate
as an investor. legislation." Swamy had objected to Al-Baraka's concept on the
principle that since public money was involved, with a state-run
agency proposed as a partner, the application would favour one
Al-Baraka has 14 promoters who have contributed Rs.4.20
particular community in a secular country.
crore toward its capital and a 17-member board, with prominent
Gulf-based businessmen P. Mohammed Ali as Chairman and
Islamic banking has been a major demand of Muslims in
C.K. Menon as the Vice-chairman.
India, who number more than 160 million – the third-largest
such population in the world, after Indonesia and Pakistan
Kerala State Industrial Development Corporation will have a where they number 200 million and 175 million respectively.
11-percent stake in the firm, which will have to follow some
strict rules that specify which areas or businesses money can be In Kerala, Muslims form the second largest community, with
extended. The company also cannot charge interest as per close to 24 percent of the 32 million populations. According to a
sharia laws. study done by Prof. S. Irudayarajan of the Centre for
Development Studies, out of 1.85 million non-resident Keralites
"We welcome the honourable court's order. We will very in 2007, nearly 50 percent were Muslims and accounted for half
soon convene a meeting of our board of directors and discuss the remittances into the state.
the future course of action to begin operations," member and
another prominent businessman E.M. Najeeb said. tututu

"The basic principle which our company would follow is: 2G CASE: FORMER TELECOM MINISTER A RAJA
There will be no interest charged, no interest taken. There are
ARRESTED BY CBI
many people who are willing to put in their money and need no
interest. We will pool this money and invest in infrastructure Former Telecom Minister A Raja has been arrested by the
projects," Najeeb added. CBI in the 2G Spectrum case while his former aides R K
Chandolia and Sidharth Behuria have been also arrested.
Al-Baraka Company, accordingly, will not operate as a bank
and extend loans, but make direct investments into such Earlier, CBI questioned A Raja for the fourth time in
projects, after which profits would be shared in the form of connection with the funding and allegedly showing favours to
dividends and not as interest. some telecom companies in granting 2G spectrum between
October 2007 and 2008.
In its interim judgment last year the bench had asked the
state government and agencies under it to keep off from the Raja, who was questioned earlier on 24th December and
proposed bank but said in its final order that there was nothing 25th December 2010 and 31st January 2011, was called to the
wrong in granting permission. CBI office and quizzed.

18 PT’s PrepTalk – February 2011


CBI has also questioned former Telecom Regulatory
Authority of India (TRAI) chief Pradip Baijal, a 1966 batch IAS
officer of Madhya Pradesh cadre, and former Telecom
Secretaries Siddarth Behura and D S Mathur in connection with
the case.

tututu

25P COINS TO BE HISTORY AFTER JUNE


The Reserve Bank of India has
asked state-run banks and some
private lenders to accept 25 paise
coins for exchange until end-June
2011.

The DMK MP would be confronted with some questions The humble 25 paise coin
and documents recovered from the computers seized during representing 'four annas' of a bygone
raids conducted by the investigation agency earlier at his era will soon be history. The RBI has
premises. said that coins with a denomination of
25 paise and below will be pulled out of circulation by June 2011
Raja was on earlier occasions questioned at length on the after which they will cease to be legal tender.
circumstances leading to spectrum allocation which has been
criticised severely by the Central Vigilance Commission and the Raging inflation has reduced the monetary value to such an
Comptroller and Auditor General (CAG). extent that it will not buy even the cheapest lozenge. Also, the
cost of minting these coins is higher than their value because of
He was also asked about his conversations with corporate which they are no longer minted. Although many traders already
lobbyist Niira Radia and the reasons of advancing the cut-off refuse to accept payments in small change below 50 paise, these
date of allocation of the spectrum in 2007. coins are currently legal tender and it is an offence to refuse
them.
Raja was forced to resign on November 14 last year in the
wake of the CAG report which held that the spectrum allocation The RBI has for some time now been working on a strategy
at undervalued prices resulted in a notional loss of Rs.1.76 lakh for the reverse flow of coins from circulation before withdrawing
crore to the state exchequer. them as legal tender. Having now put in place a process, the RBI
has asked 45 banks, including all government-owned banks,
Raja got the telecom portfolio on 18th May, 2007 and was re- which maintain small coin depots to arrange for exchange of
elected as a Member of the 15th Lok Sabha and continued as coins.
Telecom Minister from 31st May, 2009, till 14th November, 2010
before he tendered his resignation. The general public can exchange small denomination coins
at any branch of these banks.
The Supreme Court has asked CBI and Enforcement
Directorate to submit status reports on their investigations into The government had earlier under Section15A of the
the 2G spectrum case to it by February 10 when the case will Coinage Act, 1906 decided to withdraw the coins of
come up for further hearing. denomination of 25 paise and below from circulation, with effect
from June 30, 2011. From this date, these coins shall cease to be
In its FIR, CBI mentioned the loss as Rs 22,000 crore based legal tender for payment as well as on account.
on CVC findings which had referred the case to it.
Some time back, the RBI had recommended that the
Radia was quizzed by CBI as she had come under the government should withdraw coins below 50 paise. The central
scanner after her tapped telephonic conversations with various bank had also asked for coinization of low-denomination notes
influential people including industrialists, politicians and of up to Rs 10, since these are high velocity notes and have to be
journalists became public. replaced very frequently.

PT’s PrepTalk – February 2011 19


ANAND FINISHES SECOND IN TATA CHESS; GOVT GRANTS CONDITIONAL CLEARANCE TO POSCO
NAKAMURA WINS
Environment ministr y
Five times winner Viswanathan approved South Korean
Anand had to be content with a POSCO's plans for a $12 billion
second place finish, following a draw steel plant in Orissa, a boost for
with Ian Nepomniachtchi of Russia the foreign investment climate
in the 13th and final round of 73rd after several setbacks for big
Tata Steel Chess tournament in the ticket industrial projects.
Netherlands.
The long-delayed clearance
The World Champion could for India's biggest foreign direct
draw a big consolation from the fact investment – as long as the company meets a series of
that he would be the number 1 environmental standards – follows a year in which Environment
ranked player all over again as the Minister Jairam Ramesh has blocked several projects, raising
results proved that he will be criticism that he was jeopardizing India's growth story.
overtaking world number 1 Magnus Carlsen of Norway in the
next rating list. "Undoubtedly, projects such as that of POSCO have
considerable economic, technological and strategic significance
Hikaru Nakamura of United States owns the title after for the country," the statement said. "At the same time, laws on
drawing his final round game with Wang hao of China. environment and forests must be implemented seriously."

For the records, Nakamura tallied 9 points in all, a half point The plant in eastern Orissa state has been delayed by
more than Anand in this category-20 super tournament between criticism that it would ruin lives of thousands of poverty-stricken
14-players. people, who say the plant will disrupt their betel leaf plantations
and forest-based livelihoods.
The American not only performed way beyond his rating of
2751 but also finished ahead of the world's top four ranked India, one of the world's fastest growing major economies,
players. needs foreign capital to boost infrastructure and allow its
economy to grow at near double digits. But projects have met
Anand got the better position with his black pieces but could with protests from local farmers in this densely-populated
not find a breakthrough AS Nepomniachtchi simply got an country.
impregnable position in the end game arising out of a Sicilian
defense game. A government panel had earlier said that there were no
ecological concerns over the plant and the final decision was
The Indian ace settled for a draw in 37 moves. with Ramesh.
“Disappointing," said Anand after the final results were out.
Posco is among several corporations, including Vedanta
"When I reached a plus-four score (Four wins and rest Resources, which have come under scrutiny from Ramesh,
draws), I felt I was well on my way to a final victory but Hikaru putting his ministry in conflict with others in the government
just kept winning, picking up six points in a row, which was quite who are pushing for rapid industrialization.
amazing.
tututu
"But I'm not unhappy; it's difficult to be unhappy with a plus-
four score. It's a pity I didn't manage to win the tournament but I
think I performed above my rating, which isn't bad at all," the
CBI REGISTERS CASE IN ADARSH HOUSING SOCIETY
World Champion said. SCAM

The third place was shared by Magnus Carlsen and Levon The Central Bureau of Investigation registered a case
Aronian of Armenia who both scored 8 points apiece. The last against some retired Army officials and bureaucrats of
round of the tournament turned out to be a damp with all the Maharashtra Government in connection with the Adarsh
games ending in draws for the first time in the event this year. housing society scam.

20 PT’s PrepTalk – February 2011


The case was registered after SIBAL DELINKS SPECTRUM FROM LICENCES; NEW
the CBI received flak from the TELECOM POLICY SOON
Bombay High Court for its tardy
probe in the case. In a major shift in
spectrum allocation policy,
It was not immediately clear
Telecom Minister Kapil Sibal
whether the name of the former
announced that henceforth no
Maharashtra Chief Minister, Mr
licence would be issued
Ashok Chavan, figures in the FIR
bundled with spectrum and
registered at the special designated court in Mumbai.
also the operators would have
to pay a market price for an
The CBI FIR names two former senior Army officials of the
additional spectrum.
rank of Major General and Brigadier, sources said. The agency
had registered a preliminary enquiry into the scam in November
He also said that for new
last year.
operators, the contracted
amount of spectrum would be 4.4 Mhz and for the incumbent
The decision to register a case was taken after seeking a legal
players like Bharti, Vodafone and Idea, the limit would be 6.2
opinion on the evidence which had favoured registering of a case
Mhz.
against some people for allegedly forging the documents and
abusing official position.
"In future, the spectrum will not be bundled with licence.
During hearing of a petition in the Adarsh case, a Division The licence to be issued to telecom operators will be in the
Bench of Mr Justices B.H. Marlapalle and Mr U.D. Salvi had nature of 'Unified Licence' and the licence holder will be free to
asked CBI why it had not registered the case. offer any of the multifarious telecom services," Sibal said.

“It has been more than two months since CBI has been "In the event, the licence holder would like to offer wireless
conducting a preliminary inquiry into the case. Why have you services, it will have to obtain spectrum through a market driven
(CBI) not registered FIR as yet?” it had asked. process," the minister said.

Two former army chiefs Gen. Deepak Kapoor and Gen. N.C. This means the new operators, if their licences are held
Vij and ex-navy chief Admiral Madhavendra Singh owned flats in valid, would have to pay a market price for the additional 1.8 Mhz
the scam-hit society building in upscale Colaba. However, the of 2G spectrum and this may make their operations financially
former top chiefs have claimed that they have now surrendered unviable.
the flats.
While the old operators, who are holding spectrum beyond
The Union Ministry of Environment and Forests had on 6.2 Mhz, would have to pay market driven price for the extra
January 16 ordered demolition of the building within three airwaves.
months, holding it as “unauthorised” and built in violation of the
spirit of coastal regulations. These changes would be implemented with immediate
effect, Sibal said.
Apart from violating the CRZ norms, the society is alleged to
have got clearances from various authorities through dubious "We need to seriously consider the adoption of an auction
means. process for allocation and pricing of spectrum beyond 6.2 Mhz
while ensuring that there is adequate competition in the auction
The plush housing society, built on prime defence land has process," Sibal said.
been constructed in alleged violation of rules. The building was
originally meant to be a six-storey structure to house Kargil war He also announced that there would be a uniform rate of
heroes and their kin but was later extended to 31 floors without revenue share to be paid by the operators as spectrum charge to
mandatory permission. the government, as part of level playing field for all players.

Mr Chavan had resigned as chief minister in the wake of the These changes would be part of new telecom policy being
scam. framed by the Department of Telecom.

PT’s PrepTalk – February 2011 21


NCC STRENGTH TO RISE TO 15 LAKH: PM Speaking to journalists after
Cabinet reshuffle, Mr. Pawar said
The strength of the National Cadet only Maharashtra and Gujarat had
Corp will increase to 15 lakh, with Prime agreed to the decontrol proposal.
Minister Manmohan Singh announcing “Unfortunately, many States are
the government's nod for addition of two not ready for it. If only three or four
lakh cadets. States accept, it is difficult to
implement. And Prime Minister
"I am very happy to inform you that in has always said that for this kind of
recognition of the good work done by the policy, States should be taken into
National Cadet Corps, the Government the confidence.”
has sanctioned an enhancement in its
authorised cadet strength from 13 lakh to 15 lakh," Dr. Singh Asked if this meant the proposal would be put on the back
said addressing the NCC Rally in New Delhi. burner, Mr. Pawar said, “You can't say. If there is more
production and prices come down, then States may rethink and
The NCC is a voluntary organisation which recruits cadets accept.”
from high schools, colleges and universities all over the country.
Referring to the proposed National Food Security Bill, Mr.
The increase in the number of cadets will facilitate the Pawar said the Ministry had not received either the
raising of five new group headquarters and 40 NCC units. recommendations of the National Advisory Council or the views
of the C. Rangarajan Committee that examined the NAC
The Prime Minister said that the NCC was a proud symbol suggestions.
of national integration and of the values of discipline, patriotic
service and team work. The Minister said the two considerations would be
availability of marketable surplus and the subsidy that would
"I believe that value education is a vitally important part of accrue when wheat was given at Rs. 2 a kg and rice at Rs. 3, the
our upbringing and organisations such as the NCC should show economic cost to the government being estimated at Rs. 16 and
the way forward. NCC cadets should set an example of working Rs. 22. “Even now when States have been given an additional
with local communities," he said. allocation at 50 per cent of the economic cost, the lifting is not
even 30 per cent.”
Dr. Singh asked the cadets to imbibe the inspiring teachings
Mr. Pawar, who is the president of the Nationalist Congress
of Swami Vivekananda by trying to achieve excellence in
Party, said that he was “much relieved and happy” that Prime
whatever fields they choose in life.
Minister Manmohan Singh had lightened his burden. “I had
been asking the Prime Minister for more than a year that my
Observing that the young cadets come from every corner and
burden should be eased.” Relieved of the charge of Food and
community of the country, he said, "You speak different
Consumer Affairs, he will now handle only the Ministry of
languages and profess different faiths. The work of the NCC
Agriculture and Food Processing.
shows that diversity in our society does not cause differences but
rather is a source of strength and vitality. The multitude of
Expressing confidence that the agriculture growth rate this
talent, experience and learning in the NCC are a great resource
year would be 3.5 per cent (from 0.2 per cent the previous year)
for the country," Dr. Singh said.
as good production of wheat, rice, pulses and sugarcane was
expected, Mr. Pawar said: “Not production, but storage of
tututu
foodgrains will be an issue in the coming months.”

STATES NOT READY FOR SUGAR DECONTROL: SHARAD Up to 10 per cent of paddy crop had suffered in quality due
PAWAR to weather conditions in Andhra Pradesh and Orissa but no
drop in output was expected. As for cotton, he said that
Decontrol of the sugar industry (from levy and monthly free production this year was estimated to be more than last year,
sale quota obligations) will seem “difficult” as several producing but whether more exports should be allowed before cotton
States, including Uttar Pradesh, Punjab, Karnataka and Tamil from the United States hit the global market would have to be
Nadu are not ready for it, Union Agriculture Minister Sharad decided by the Empowered Group of Ministers, headed by
Pawar said in New Delhi. Pranab Mukherjee.

22 PT’s PrepTalk – February 2011


PRIME MINISTER HAS UNDERMINED MGNREGA, SAY The Prime Minister's stand belied his promise of not
allowing anyone to sleep on a hungry stomach, the signatories,
SOCIAL ACTIVISTS who included Aruna Roy, Jean Dreze, Nikhil De, Annie Raja,
Yogendra Yadav and Medha Patkar, alleged.
Expressing distress at the
Prime Minister's refusal to pay
The statement demanded that the government uphold the
the statutory minimum wages to
fundamental right of the poorest of workers and declare a
workers under the employment
national floor-level need-based wage, below which no legal wage
guarantee programme, a group of
could be paid.
150 social activists has criticised
the government's decision to
tututu
merely allow an index-linked rise
in current wages.
NIRUPAMA RAO CONCLUDES NEPAL VISIT
They accused the Prime
Minister of further undermining Foreign Secretary Nirupama Rao
the Mahatma Gandhi National Rural Employment Guarantee wrapped up a three-day official visit to
Act (MGNREGA) by delinking the remuneration from the Nepal, which focused on the country's
Minimum Wages Act that too after the Ministry of Rural political situation and bilateral
Development arbitrarily froze the wage at Rs. 100 a day in relations.
January 2009.
During the visit, she met Nepal's
The present controversy stems from the Prime Minister's entire top political leadership,
letter to the National Advisory Council chairperson Sonia including President Ram Baran Yadav,
Gandhi in response to her request for payment of minimum Prime Minister Madhav Kumar
Nepal, and Unified Communist Party
Nirupama Rao
wages to MGNREGA workers.
of Nepal (Maoist) chairman Pushpa Kamal Dahal ‘Prachanda.'
The Prime Minister turned down the proposal but agreed to
link the wage rate of Rs. 100 a day with the Consumer Price Index Elaborating on Ms. Rao's meetings, the Indian Embassy in
for Agricultural Labour to cover erosion in real wages due to Kathmandu said in a statement: “The political leaders of Nepal
inflation. stressed the importance they attached to close relations between
Nepal and India.”
Indexation resulted in a rise in MGNREGA wages between
17 and 30 per cent in most States, but still fell short of the The Foreign Secretary “stressed to all the leaders that India
statutory minimum wage in 11 States stands for a democratic, stable, peaceful and prosperous Nepal.
She also assured them of India's support to the constitution-
Describing the Prime Minister's action as “immoral,” the drafting process while strengthening inclusive multi-party
signatories alleged that it amounted to denial of Constitutional democracy in Nepal, and also for successfully concluding the
and legal protection to the lowest stratum of workers. Nepali-led peace process.”

The statement expressed surprise that the Prime Minister During her meeting with Mr. Prachanda, Ms. Rao is learnt to
had ignored not only an Andhra Pradesh High Court ruling have asked him about his party's “anti-India” stance. Mr.
suspending the notification freezing wages for workers under Prachanda clarified that the Maoists were not anti-India but felt
MGNREGA, but also the opinion of the Additional Solicitor that “certain historical issues like treaties” had to be looked at
General and the Labour Ministry that non-payment of “in a new manner,” sources said.
minimum wages was a violation of the Constitution.
The Maoist leader asked Ms. Rao about India's position on
Even the pleas of United Progressive Alliance chairperson government formation in Nepal and expressed concern that
Sonia Gandhi failed to influence the Prime Minister, who also India may be seeking to “isolate” the Maoists. She stressed that
ignored the request of Andhra Pradesh Chief Minister to abide this was entirely up to Nepal's political parties and that India was
by the High Court ruling. willing to work with any government in Nepal.
=
The World Tourism Day is observed on September27.
PT’s PrepTalk – February 2011 23
Current events

World
ASEAN TO DISCUSS THAI-CAMBODIA SKIRMISHES Thai Prime Minister Abhisit Vejjajiva has sent a letter to the
UN Security Council saying Thailand's action during the
OVER SHRINE DISPUTE clashes in recent months with Cambodia was appropriate and is
in line with international principles.
As tension continues to simmer
on the Thailand and Cambodia
UN Secretary-General Ban Ki-moon has urged both the
border over a 11th century Hindu
countries to come up with mechanisms to solve their disputes
Shiva temple, a concerned Asean
and end armed confrontation as soon as possible. US has also
grouping has asked all its foreign
called for Thailand and Cambodia to exercise restraint.
ministers to meet for an urgent
conclave to discuss the Preah Vihar
The construction of the first temple at the site began in the
shrine dispute.
early 9th century and continued in the following centuries
The invitations to the foreign ministers have been sent by dedicated to Shiva in his manifestations as the mountain gods
Indonesian Foreign Minister Marty Natalegawa, the current Sikharesvara and Bhadresvara.
ASEAN chair and the meeting is set to be held on 22nd February.
The earliest surviving parts of the temple dates from early
While Cambodia has sought an urgent Security Council 10th century, when the empire's capital was at the city of that
meeting calling for a UN buffer force to be put in place, name.
Thailand has said that the dispute should be resolved bilaterally.
In the wake of the decline of Hinduism in the region, the site
Meanwhile, Thailand has said that more than 20,000 soldiers was converted to use by Buddhists. In 1954, Thai forces
will be deployed on the Thai-Cambodian border as part of a occupied the temple, following the withdrawal of French troops
national defence plan and an incident action plan approved by from Cambodia.
the army commander, 'Bangkok Post' quoted army sources as
saying. The plan is to remain in effect till 30th March . Cambodia protested and turned to the International Court
of Justice, which later ruled in 1962 that the shrine belonged to
The main entrance of the Shiva temple known as Preah Vihar Cambodia.
is officially on the Cambodian side but most of the other parts of
the temple spill over to the Thai side. tututu

Officially the foreign ministers have been invited to discuss BENNY GANTZ APPOINTED HEAD OF ISRAELI MILITARY
"regional and international issues," but the purpose of the
meeting is clear, senior Asean officials told the Bangkok Post. The Israeli cabinet unanimously approved the appointment
of Maj Gen Benny Gantz as the next chief of the armed forces.
The Indonesian foreign minister has met both Cambodian
and Thai foreign ministers so far. He has said that Asean's role is The appointment of Maj Gen Gantz comes at a time when
one that supports bilateral efforts to resolve the conflict. the region, engrossed in a strong political turmoil, faces one of
its worst instability in decades.
Recent reports had said that parts of the temple had been
damaged in the recent skirmishes between the two neighbours "Maj Gen Benny Gantz is an outstanding officer and an
after Cambodian troops used the shrine as a military base to fire experienced commander," Israel's Prime Minister Benjamin
on the Thai soldiers. Netanyahu told his ministers.

24 PT’s PrepTalk – February 2011


"His experience is vast both in Thailand will call for a return to bilateral talks on
terms of operation and organisation. demarcation," he said. Thailand will present evidence including
He is endowed with all of the qualities pictures and media reports to support its case and show that
needed to be a wonderful commander Cambodia used an ancient temple at the centre of the dispute as
for the Israel Defence Forces (IDF)," a military base, he added.
Netanyahu added.
Thai Foreign Minister Kasit Piromya is due to attend
Gantz's appointment ended Security Council meeting, along with his Cambodian
months of infighting that brought to counterpart Hor Namhong.
the fore ego clashes in the top
echelons of Israel's defence and politcal establishment. Thailand and Cambodia have blamed each other for the
clashes around the ancient temple of Preah Vihear.
Barak during the recent months looked hell-bent on
preventing an extension for Ashkenazi in the position, and Cambodia's Prime Minister Hun Sen sought an urgent
pushed through with Gantz's elevation to the post after his Security Council meeting and called for a UN buffer force to be
efforts to put a temporary Chief of Staff to allow proper put in place. Thailand has repeatedly said the dispute should be
screening of the next army head was scuttled by strong political settled between the two countries.
opposition by ministers in his cabinet and opposition
parliamentarians. tututu

Gantz's appointment was authorised by the Turkel PROTESTERS CLASH WITH COPS IN YEMEN
Committee for senior public appointments and was approved by
the cabinet. Young Yemeni protesters have
reportedly squared off against
The official transition ceremony between Ashkenazi and security forces, with some
Gantz would be held at the Prime Minister's office in Jerusalem. marching to the presidential
palace in Sana'a (Yemen) in the
The farewell ceremony for the outgoing Chief of Staff will be hope of repeating and emulating
held at Tel Aviv University. the revolution in Egypt.

Barak was scheduled to deliver a speech at the ceremony, but The protests, organized largely via text messages, were the
continuing tensions between him and Ashkenazi have raised largest yet by young Yemenis, with more than 1,000 marching,
doubts that he will participate. the New York Times reports.

tututu A rift appears to be brewing between Yemeni youth and


opposition groups in the wake of previous demonstrations
wresting significant concessions from beleaguered President Ali
THAILAND TO REJECT UN HELP OVER CAMBODIA: PM Abdullah Saleh, including the promise that he would relinquish
power in 2013.
Thailand will tell the UN Security Council that there is no
need for outside mediation to resolve a deadly border conflict Leaders of established opposition groups did not join the
with Cambodia, Prime Minister Abhisit Vejjajiva said. crowd which has called for the immediate ouster of Saleh.

He said that Thailand was confident that it could make a Earlier, demonstrators were violently repulsed by armed
strong case at the closed-door meeting in New York to show that security forces both uniformed and in plain clothes, some armed
Phnom Penh sparked the standoff over the disputed territory, with sten guns, witnesses said.
which left eight people dead.
There were reports of several injuries, but no deaths.
"We're confident that we can explain that (Cambodia's
claims) are wrong," he said in his weekly television address. The Joint Meeting Parties (JMP), a coalition of opposition
"Cambodia is calling for (intervention by) a third country, the parties, have said that it will continue to press for a change of
UN and peacekeeping forces. leadership in Yemen.

PT’s PrepTalk – February 2011 25


Unlike the earlier protests in Yemen, which were highly The FIA had earlier named Musharraf as an "absconder" for
organized and marked by color-coordinated clothing and signs, failing to cooperate in the probe into the assassination.
the spontaneity of the younger demonstrators appeared to have
more in common with popular uprisings in Tunisia and Egypt, Musharraf, currently living in self-exile in Britain, had
where opposition groups watched from the sidelines as refused to cooperate with investigators and answer their
leaderless revolts grew into revolutions. questions, prosecutors said.

The opposition coalition said at a news conference in Sana'a The detailed charge-sheet said that there was a conspiracy
that it welcomed the new street protests, but cautioned that the behind Bhutto's assassination, and that Musharraf allegedly
situation could quickly escalate if mass uprisings took hold in provided slain Tehrik-e-Taliban Pakistan chief Baitullah
Yemen, a country with a well-armed populace. Mehsud with the opportunity to carry out a suicide attack on
Bhutto by failing to provide her adequate security.
President Saleh, an important ally of the United States in the
fight against terrorism, in recent months sought to counter a A report compiled by the FIA's investigation team said:
rising tide of opposition and preserve his three-decade rule by "Musharraf was equally responsible for facilitation and
raising army salaries, having income taxes and ordering price abetment of the assassination of Benazir Bhutto through his
controls, among other concessions. government and justified failure in providing her the requisite
security protection that her status demanded twice. There was a
US Secretary of State Hillary Rodham Clinton has urged security lapse."
Saleh to enter into a dialogue with the opposition, in the interest
of preserving stability in Yemen. The FIA has also alleged that two top former police officials,
who were recently arrested for alleged negligence in providing
The opposition coalition has said it would be willing to security to Bhutto, were acting on the orders of Musharraf.
restart talks with the ruling party if specific conditions were met,
like including members of the southern separatist movement in Musharraf's spokesman and legal aides have dismissed the
the dialogue. charges levelled against him, saying that the Pakistan People's
Party-led government was trying to deflect attention from
It remained unclear to what degree a widening popular charges of inefficiency and corruption levelled against it.
uprising could set off renewed armed clashes in the south.
Protests across the south have been notably more violent than Bhutto was killed by a suicide bomber shortly after she
those in the country's north. addressed an election rally in Rawalpindi in December 2007.

tututu The former military ruler has been living out of Pakistan
since April 2009. Former Pakistani Taliban chief Baitullah
PAK COURT ISSUES NON-BAILABLE ARREST WARRANT Mehsud was killed in a US drone strike in 2009.
AGAINST MUSHARRAF tututu
A Pakistani anti-terrorism
court issued a non-bailable KHANAL SWORN IN AS PM AMID POWER SHARING
arrest warrant against former ROW WITH MAOISTS
President Pervez Musharraf to
secure his presence in the Nepal's veteran communist leader Jhalanath Khanal was
hearing in the Benazir Bhutto sworn in as the new prime minister, even as his party failed to ink
assassination case. a power sharing deal with its key ally Maoists, delaying the
cabinet formation.
The court in Rawalpindi
issued the warrant after President Ram Baran Yadav administered the oath of office
hearing the arguments of prosecution lawyers. and secrecy at a grand function in the presence of top Nepalese
leaders, including Vice President Parmananda Jha, caretaker
The Federal Investigation Agency also submitted a detailed prime minister Madhav Kumar Nepal, Maoist chairman
chargesheet that named Musharraf as an accused in the case Prachanda, Nepali Congress president Sushil Koirala and
related to the murder of Bhutto. Parliament Speaker Subhas Chandra Nembang.

26 PT’s PrepTalk – February 2011


"I will remain committed and honest to the nation and its The standoff has also delayed the drafting of a new
people to fulfill my duty," said constitution and conclusion of the peace process.
60-year-old Khanal.
The Maoists, who fought a 10-year battle against the state
Even as it ended a seven- before entering politics and winning elections in 2008, had
month leadership vacuum in pushed for leading a new coalition.
the country, the cabinet
formation was postponed as But they did not have an absolute majority and had been
the CPN-UML failed to unable to win the support of smaller parties that they would need
finalise a power sharing deal to form a coalition government.
with its main supporter
UCPN-Maoist who are tututu
seeking their pound of flesh
for having ensured Khanal's PALESTINIANS TO HOLD ELECTIONS IN JULY
victory, sources said.
The Palestinian cabinet was meeting to set a date for the first
The UCPN-Maoist has
elections since 2006. Speaking on condition of anonymity, it said
238 seats and the CPN-UML has 108 seats in the Constituent
that mid-July was the most likely date for the local elections,
Assembly, which acts as the country's interim Parliament.
which would probably be limited to the West Bank following the
refusal of the Gaza Strip's Hamas rulers to take part.
The former rebels are pushing for key portfolios, including
Home Ministry, which was rejected by Prime Minister Khanal,
Local polls were originally set for 17th July 2010 but
leading to the delay in cabinet formation, according to a senior
postponed after the Islamic movement said that it would not
leader of CPN-UML.
participate. Hamas restated its opposition to a vote after Prime
Minister Salam Fayyad said that local polls would be held "this
CPN-UML sources said that the party has finalised the
names of Bharat Mohan Adhikari, Bishnu Poudyal and Ganga year" and that it was also time to start preparing for a general
Lal Tuladhar for key portfolios of Finance, Home and Education. election.

Two Terai based parties, Madhesi Peoples Rights Forum led "The movement will not participate in this farce," Hamas
by former Foreign Minister Upendra Yadav and Madhesi said in a statement in response. "The movement will not
Peoples Rights Forum (Nepal) led by Mahendra Yadav are likely recognise the result of this process."
to join the government, sources said.
Hamas has refused to recognise the authority of the West
Nepali Congress, the second largest party with 114 members Bank-based government of president Mahmud Abbas since his
in the House, has decided to sit in the opposition. four-year term expired in January 2009 and was then indefinitely
extended by his supporters pending new elections.
There is growing anger in a section of the CPN-UML party
and the Nepali Congress, which supported the Communist The Gaza Strip and the West Bank are separated by Israeli
party-led government since 2009, over a secret deal with the territory and are ruled by rival administrations. Abbas's
Maoists during the voting in the parliament, sources said. government called a general election for January 2010, then
backed down after Hamas refused to hold parallel polls in the
Khanal's party, which is the third largest party in the Gaza Strip.
parliament, got support from the main Opposition Maoist Party
after Prachanda quit the race in a last minute decision. Hamas, which won the 2006 parliamentary race by a
landslide, has said that there can be no fresh vote without
Nepal's parliament voted under revised election rules reconciliation with the rival Fatah party, which is headed by
designed to break a deadlock that had left the country without a Abbas and dominates the Western-backed Palestinian Authority.
government even after 16 rounds of elections.
The Islamist movement took power in Gaza in June 2007
The political deadlock over the last seven months has been when it drove out forces loyal to Abbas in a week of bloody street
hugely damaging for Nepal, which is still reeling from its decade battles, the culmination of years of struggle between the two
of civil war that ended in 2006. main Palestinian movements.

PT’s PrepTalk – February 2011 27


ASSANGE WARNS OF RELEASING OF 'ENCRYPTED KEYS' IRELAND'S PM TO DISSOLVE PARLIAMENT
WikiLeaks founder Julian Assange Ireland's embattled Prime
has warned of releasing "encrypted Minister said that he would dissolve
keys" containing large amount of secret Parliament and announce a new date
information, if the whistleblower for early elections, as the upper
website is permanently shut down. house began debate on legislation to
slash spending and raise taxes
Assange was speaking to CBS expected to be its last major act
News's "60 Minutes" at a country house under his government.
in England where he is under house
arrest waiting for an extradition hearing, Brian Cowen said that he
which will determine whether he is sent intends to ask President Mary
to Sweden to be questioned on sexual assault charges. McAleese to dissolve the national Parliament.

"There are backups distributed amongst many, many people, He would then announce a new election date, which must be
100,000 people and all we need to do is give them an encrypted within 30 days. That election is expected to result in a drubbing
key and they will be able to continue on," Assange said. for Cowen's Fianna Fail, Ireland's long dominant political party,
and usher in a new team led by the Fine Gael party.
"If a number of people were imprisoned or assassinated,
then we would feel that we could not go on, and other people Cowen, who was Ireland's finance minister from 2004 to
would have to take over our work, and we would release the keys," 2008, is widely blamed for Ireland's stunning slide from Celtic
he said. Tiger boom economy to the brink of bankruptcy. The finance
bill is designed to comply with a massive international rescue
Last year, WikiLeaks, an online whistleblower organization loan.
published hundreds of thousands of classified material on the
wars in Iraq and Afghanistan as well as diplomatic cables that put The European Union-International Monetary Fund support
the spotlight on backdoor meetings among US officials and their is contingent on Ireland cutting euro15 billion (USD 20.56
counterparts in different countries. billion) from its deficit spending over the coming four years and
is imposing the harshest cuts this year.
Since then, the US government has been trying to nab and
prosecute Assange for espionage but no specific charges against
It includes a 90 per cent tax on bonuses paid to employees of
him have been framed.
any of the Irish banks that needed state support to survive after a
runaway property market collapsed.
The former Australian hacker has argued that all the actions
taken by his organization are protected under the First
tututu
Amendment that protects free speech in America.

When questioned about the material on Bank of America, JUNTA-LED NIGER VOTES FOR CIVILIAN PRESIDENT
Assange did not confirm or deny but simply said, "I won't make
any comment in relation to that upcoming publication". At the Niger goes to the polls to replace a military junta with a
same time, Assange said that he didn't mind making these big civilian president who will rule one of the world's poorest
banks 'squirm'. countries living under the growing menace of Al-Qaeda
militants.
Last year, he had said that WikiLeaks would be releasing
documents on a US bank. The North African state of 15 million people covered mostly
by the Sahara desert has watched helplessly as the influence of
“We have all these banks squirming, thinking maybe it's the regional offshoot of Al-Qaeda has grown in recent years.
them," he said.
Al-Qaeda in the Islamic Maghreb (AQIM) has staged a
The WikiLeaks founder, who did not discuss the allegations series of kidnappings of foreigners, the latest being two young
of sexual assault that have been levied against him, has Frenchmen snatched by militants from the capital, Niamey,
previously said that these charges are false. killed during an abortive rescue mission launched by France.

28 PT’s PrepTalk – February 2011


Junta leader Salou Djibo said that The Federal notification
security was the top priority for issued in the Federal registry
impoverished Niger, ahead of the came days ahead of the high-
presidential and parliamentary polls. profile visit of Commerce
Secretary Gary Locke to New
"Security has no price," he said, Delhi on 6th February.
while acknowledging that Niamey has
few resources of its own to combat the Locke is leading a high-tech trade mission comprising 24
fundamentalist threat which crosses national borders businesses that will also visit Bangalore and Mumbai.
throughout the Sahara region.
"Today's action marks a significant milestone in reinforcing
The junta took power in February last year to end a crisis the US-India strategic partnership and moving forward with
triggered by then president Mamadou Tandja's attempts to export control reforms that will facilitate high technology trade
extend his rule beyond the constitutionally allowed two and cooperation," Locke said after the notification was issued.
consecutive five-year terms.
The nine entities are Bharat Dynamics Ltd (BDL), four
The military agreed to preside over a transition to civilian rule remaining subsidiaries of the Defense Research and
and no member of the ruling junta is standing for election in polls. Development Organization (DRDO) in the US sanction list and
another four of the Indian Space Research Organization (ISRO).
The key candidate is opposition leader Mahamadou
Issoufou whose Social Democratic Party represents change, but The DRDO subsidiares are Armament Research and
he faces a challenge from three other candidates intent on Development Establishment (ARDE), Defense Research and
blocking his way. Development Lab (DRDL), Missile Research and
Development Complex and Solid State Physics Laboratory.
Seini Oumarou is the anointed follower of the deposed
leader Tandja, who is still languishing in jail, and whose National Liquid Propulsion Systems Center, Solid Propellant Space
Movement for the Development of Society he leads. Booster Plant (SPROB), Sriharikota Space Center (SHAR), and
Vikram Sarabhai Space Center (VSSC) are the four ISRO
subsidiaries.
Former prime minister Hama Amadou is also close to the
deposed leader while Niger's first democratically-elected president
Removal from the 'Entity List' eliminates a license
in1993,MahamaneOusmane,istryingforanotherterm.
requirement specific to the companies, and results in the
companies off the list being treated the same way as any other
Oumarou, Amadou and Ousmane have created a stir in
destination in India for export licensing purposes, the
Niger by forging a pact meant to keep Issoufou from victory
Commerce Department said in a statement.
should no candidate emerge with an overall majority and the
presidential poll goes to a second round. In the event one of them
The notification removes India from several country groups
finds himself in a head-to-head against the social democrat, the
in the Export Administration Regulations(EAR), resulting in
other two will give him their full backing. the removal of export license requirements that were tied to
India's placement in those country groups.
tututu
It further adds India to a country group in the EAR that
US REMOVES ISRO AND DRDO FROM ENTITIES LIST consists of members of the Missile Technology Control Regime,
to recognize and communicate India's adherence to the regime,
The US has removed nine Indian space and defense related the US-India strategic partnership and India's global non-
companies including those from ISRO and DRDO from its proliferation standing.
export control 'Entity List', in an attempt to expand high
technology trade and strategic cooperation with India. "These changes reaffirm the US commitment to work with
India on our mutual goal of strengthening the global non-
The US decision meets a long pending Indian demand and is proliferation framework," said Under Secretary of Commerce
the first step to implement the export control policy initiative Eric L Hirschhorn.
announced by US President Barack Obama and Prime Minister
Manmohan Singh on 8th November last after their summit talks Obama during his India visit had assured India that he would
in New Delhi. remove these companies from the Entity List.

PT’s PrepTalk – February 2011 29


Obama had said that commensurate with India's non- "A number of positive developments point to an upward
proliferation record and commitment to abide by multilateral trajectory in this bilateral relationship. A sustained engagement
export control standards, the US will remove all civil space and of Canada with India is evident from the number of agreements
defense-related entities from the Department of Commerce and MOUs already signed between two countries such as
'Entity List'. Civilian nuclear cooperation agreement; higher education earth
sciences and mining and cultural cooperation," Gavai said, while
"Inclusion on this list generally triggers an export license talking to newsmen after the function.
requirement for items that otherwise do not require an export
license," said a fact sheet issued by the White House during the "Social security agreement, the foreign investment
Obama visit. promotion and protection agreement, and MOU on
transportation are under negotiation and are expected to be
The Locke delegation that will visit India includes senior concluded soon," he said.
officials from the Export-Import Bank (EX-IM) and the Trade
Development Agency (TDA). Gavai said that both the governments were committed in the
formation of a broader human connection strategy linking
tututu segments of civil society and corporate sector in India and
Canada with knowledgeable members of India Diaspora, so as to
'YEAR OF INDIA IN CANADA' LAUNCHED IN OTTAWA formulate an action plan for next twenty years.

India has launched year-long "This generous contribution will make Carleton's centre a
activities and programmes for its unique resource for the university, the community and our
'Year of India in Canada' to country," Runte said.
showcase the country's rich art
and culture, as well as its rise as an Carleton currently has 25 faculty members conducting
economic power. India-related research, partnerships with seven Indian post-
secondary institutions and many formal relationships with
Indian high commissioner S M Indian businesses and organizations.
Gavai launched the programme, with a major investment in
Canada-India Centre for Excellence in Science, Technology, Last Fall, the university hosted Canadian business leaders
Trade and Policy at the Carleton University. for round-table discussions with two top Indian ministers and
hosted other Indian government delegations.
Gavai and Roseann O'Reilly Runte, Carleton University
president, signed a memorandum of understanding (MoU)
As part of the celebration, the 2011 regional PBD (Pravasi
governing the visiting chair in the field of humanities and social
Bharatiya Divas) would be held in Toronto on June 9 and 10th,
sciences that would bring together key members of the
Preeti Saran, consul general of India, said in Toronto after
academic, business and public policy communities in both
hoisting tricolor to commemorate India's Republic Day.
countries to provide cutting-edge research, analysis, training
and exchanges.
Indo-Canada Chamber of Commerce would be the nodal
Gavai said that the year-long festivities would include agency for the event. The theme is Building Bridges: Positioning
exhibitions of Indian art and culture, seminars on promoting Strategy of the Indian Diaspora.
trade and business, conferences on enhanced co-operation,
food and film festivals and more in different parts of the country. Indian diaspora members in Canada, USA, Mexico and the
Caribbean countries are expected to attend the PBDCanada
The celebratory year was designated for 2011 by the Prime 2011 convention in large numbers.
Minister Manmohan Singh and his Canadian counterpart
Stephen Harper during the latter's visit to India in November For the first time, the 12th edition of the IIFA awards will
2009. take place in Toronto later this year, which has become the first
North American city to host the glittering ceremony, popularly
"The aim is to showcase India's rich art and culture, as well known as the Oscars of Bollywood.
as its rise as an economic power, thereby promoting closer
people-to-people ties across a broad range of sectors, including The International Indian Film Academy Awards (IIFA) takes
business," Gavai said. place in a different world city each year.

30 PT’s PrepTalk – February 2011


and improve network security at small Federal agencies; and
OBAMA ADMIN PROPOSES USD 11.8 BILLION FOR funding to support the full operational capability of the new US
NUCLEAR SECURITY Cyber Command and other programmes to protect the
information networks.
The Obama Administration
has proposed a USD 11.8 billion UScharges7inplottosupplymissilestoTaliban
for the modernisation and
security of the country's nuclear US authorities have charged seven men, including two
arsenal. American citizens, with conspiring to aid Taliban fighters in
Afghanistan by selling the militant group weapons, including
Noting that it remains surface-to-air missiles, and moving drugs through West Africa.
dedicated to modernising
America's nuclear arsenal and According to the charging documents unsealed in
the complex that sustains it, US Manhattan federal court, the men agreed to smuggle and sell
President Barack Obama, in his heroin and missiles to undercover Drug Enforcement and
budget sent to the Congress, Administration (DEA) agents, who were posing as members of
proposed USD 11.8 billion for the Taliban in Afghanistan.
National Nuclear Security Administration (NNSA).
The seven men charged are - Maroun Saade, Walid Nasr,
This investment includes USD 7.6 billion, to maintain a Francis Sourou Ahissou, Corneille Dato, Martin Raouf
safe, secure, and effective nuclear arsenal by improving and Bouraima, Alwar Pouryan and Oded Orbach. The men agreed to
replacing ageing facilities and infrastructure, continuing receive and move ton-quantities of Taliban-owned heroin
nuclear weapon life extension programs, and sustaining through West Africa, portions of which they understood would
stockpile surveillance and certification activities. then be sent to the United States.

The Administration funds USD 2.5 billion to prevent the They also agreed to sell substantial quantities of cocaine to
proliferation of nuclear weapons by fully funding efforts to the undercover agents that the Taliban could sell at a profit in the
secure and dispose of nuclear material, develop technologies to US. Saade, along with US citizens Pouryan and Orbach, agreed
detect and deter nuclear testing and smuggling and support to sell weapons to the militant group including surface-to-air
international non-proliferation treaties, regulatory controls and missiles to be used to protect Taliban-owned heroin laboratories
safeguards. against US attack in Afghanistan.

It also proposed USD 1.2 billion for naval reactors, to include Five of the men were arrested in Liberia last week and were
construction of new reactor fuel handling infrastructure and due to be extradited to the United States to face the charges.
continued reactor development for a new ballistic missile The two American citizens Pouryan and Orbach were arrested
submarine to sustain a robust nuclear deterrent. in Bucharest, Romania last week where they will remain pending
extradition to the US.
The budget also includes USD 31.8 million for the
reorganised chemical, biological, radiological, nuclear and high- According to the indictment, the men communicated with
yield explosive consequence management structure, which will the undercover DEA agents through telephone, email and
be in place prior to the end of 2012. videotaped meetings over several months in 2010 in Benin,
Ghana, Ukraine, and Romania.
It also proposed USD 665 million to enhance the
development of next generation medical counter-measures During these meetings, Saade, Pouryan and Orbach agreed
against chemical, biological, radiological and nuclear threats; to arrange the sale of weapons, including surface-to-air missiles
USD 200 million for a public-private partnership of a vaccine to the undercover agents for the Taliban's use in Afghanistan.
manufacturing facility, in support of the Administration's new
Medical Counter Measure Initiative and USD 138 million to Saade introduced the agents to Pouryan, whom Saade
continue building DOD's (Department of Defense) Institute of described as a weapons trafficker affiliated with Hezbollah.
Infectious Disease at the new Interagency Biodefense Campus.
Pouryan and Orbach told the agents about specifications,
The budget proposes USD 97 million to improve the pricing and the provision of training for the sale of various
security of online transactions, enhance cyber security weapons, including anti-tank missiles, grenade launchers, AK-
education efforts, increase cutting-edge cyber security R&D, 47s and M-16s.
=
PT’s PrepTalk – February 2011 31
Current events

Business and economy


INDUSTRIAL GROWTH PLUNGES TO 1.6% The steepest decline came in capital goods growth that
showed a negative growth of 13.7 per cent. Also, consumer non-
The industrial growth has durables growth continued to show a negative growth at 1.1%.
slowed down to 1.6 per cent for
December which suggests a tututu
considerable slowing down in
industrial production. The GOOGLE, FB IN RACE TO TAKE OVER TWITTER
numbers are on expected lines
taking into consideration high Google Inc and Facebook Inc, plus others, have held low level
base effect. The industrial takeover talks with Twitter that give the Internet sensation a
growth a year ago stood at 18%. value as high as $10 billion, the mediaperson reported.

The GDP numbers announced by the government earlier In December, Twitter raised $200
this week also hinted at slowing of economy. million in financing in a deal that valued it
at $3.7 billion. The company, which allows
Reacting to the weak numbers in industrial growth, Finance users to broadcast 140-character messages
Minister Pranab Mukherjee said, “ The numbers are to groups of followers, had 175 million
unfortunate and disappointing. But weekly and monthly figures users as of September.
do not reflect the whole picture. We’ve to take into account the
numbers for the whole year.” The Wall Street Journal reported on its website that
executives at Twitter have held “low level” talks with executives
The government has pegged the economic growth for the at Facebook and Google in recent months about a possible
financial year 2010-11 at 8.6 per cent, which is signal to a slowing takeover of Twitter.
economy as the growth stood at 8.9 per cent during the first half
of the current fiscal. Citing people familiar with the matter, the WSJ said other
companies have also held similar talks.
The industrial growth for November stood at 2.7 per cent.
“But what’s remarkable is the money that people familiar
“The numbers are on expected line and it is difficult to pick with the matter say frames the discussions with at least some
out any fundamental story from the numbers. The slowing in potential suitors; an estimated valuation in the neighbourhood
Industry is corroborated by GDP number which showed a of $8 billion to $10 billion,” the report said. The paper said the
decline. Investment revival also doesnot seem to be panning talks have so far gone nowhere and that Google, Facebook and
out,” said Abheek Barua, chief economist at HDFC Bank. Twitter all declined to comment.

The manufacturing growth fell further to 1 per cent from 2.3 Despite the valuation, the report said Twitter’s executives
per cent in December. Mining output for the month also and board were working on building a large, independent
dropped to 3.8 per cent from 6 per cent a month ago. The company.
electricity sector growth, however, rose to 6 per cent from 4.6
per cent in November. “People familiar with the situation said the company believes
it can grow into a $100 billion company,” the WSJ said. Twitter,
However, the good news was the growth in consumer goods, created in 2006, is among a crop of popular Internet social
which jumped from a negative 3.1 per cent recorded in networking services that includes Facebook, Zynga and
Novemeber to 3.9 per cent in December. LinkedIn.

32 PT’s PrepTalk – February 2011


A growing secondary market has developed in shares of the In the category of up to 6.2 Mhz of spectrum, the prices of
privately held Web sensations and investors are monitoring the one Mhz varies from Rs. 7.60 crore in the case of Jammu and
companies closely in the hope they might float shares. It was only Kashmir to Rs. 187.38 crore in the case of Tamil Nadu.
in the middle of 2010 that Twitter offered marketers a way to
advertise on the service. In the category of beyond 6.2 Mhz of spectrum, the price
varies form between Rs. 22.89 crore per Mhz in Jammu and
Industry research firm eMarketer said last month that Kashmir to a maximum of Rs. 431.95 crore in Andhra Pradesh.
Twitter, which doesn't disclose financial information, generated
an estimated $45 million from advertising in 2010 and is The revised prices recommended by TRAI are effective from
expected to generate some $150 million this year. April 1, 2010, the report said.

Google, the world’s number 1 Internet search engine, tututu


generated roughly $29 billion in revenue in 2010 and Facebook,
recently valued at $50 billion. BANNED IN CHINA, FACEBOOK OPENS OFFICE IN HONG KONG
tututu Facebook has opened a Hong Kong office
as it looks to boost its presence in Asia, even
TRAI RECOMMENDS SIX-FOLD HIKE IN 2G SPECTRUM though the social networking giant is banned
PRICE in mainland China, a potentially huge
market.
In a development that has huge
financial implications for existing as The opening of the sales office in Hong Kong, a semi-
well as new operators, telecom autonomous Chinese territory, comes after Facebook opened an
regulator Trai has recommended office in Singapore last year, as social networking sites and
fixing the price for 6.2 Mhz of pan- Internet traffic see a marked rise in the region.
India start-up 2G spectrum at Rs.
10,972.45 crore, more than six times Last March the California-based group announced a new
the pre cent cost of Rs. 1,658 crore. office in the southern Indian IT hub of Hyderabad to deal with
advertising and customer support.
In its recommendations to the
Department of Telecom (DoT), Trai The Hong Kong opening, ‘following Singapore
has also said that every Mhz of demonstrates Facebook's commitment to Asia, and in particular
additional spectrum (on an all-India to Hong Kong and Taiwan, where there are active online
basis) beyond the contracted limit of populations and sophisticated digital marketing communities,’
6.2 Mhz would cost a massive Rs. 4,571.87 crore. Facebook said in a statement.

Most of the telecom firm, including Bharti, Vodafone, Idea The company, which already has a network of sales offices in
and state-owned companies like BSNL and MTNL, hold extra North America and Europe, said more than 80 of the top 100
spectrum beyond 6.2 Mhz and the new norms would put a huge advertisers in the United States advertise on Facebook, adding
financial burden on these telcos. that it is working with major brands across Asia.

In addition, the licences of some of the operators, including "We are investing in a team to scale with the business here in
Bharti, are due for renewal after completing 20 years periodicity the region, and will start with a handful of employees and add
in several circles. Such companies would have to pay to renew more as the business grows," a spokeswoman said.
their licences as per the new norms recommended by Trai.
She declined to disclose the number of Facebook users in
When contacted, Trai Chairman J S Sarma said, "Yes we have Hong Kong and Taiwan. The site has about 500 million users
submitted the recommendations to the DoT on the revised worldwide.
norms for 2G spectrum pricing."
Blake Chandlee, Facebook's vice-president and commercial
According to the report, the spectrum prices for both director for emerging markets, played down the idea that the
categories - up to 6.2 Mhz and beyond 6.2 Mhz - vary from circle Hong Kong office is a sign that Facebook is eyeing a move into
to circle. China - where it remains banned.

PT’s PrepTalk – February 2011 33


"We have no plans right now to talk about entering into At present, the direct annual trade between Pakistan and
mainland China and trying to be aggressive in that," he said. India is around USD 2 billion which has a potential to grow to
USD 10 billion. The indirect trade between the two countries is
Chandlee said the site was available in ‘all the Chinese manifold.
dialects’ and ‘for us that is the first step in any part of the world to
make sure people are able to experience Facebook in a language Rao also pressed for early ratification of the SAARC
they're comfortable with.’ Agreement on Trade in Services signed at the 16th SAARC
Summit in Bhutan last April, saying it will give a boost to
Last year, search engine Google claimed it was the victim of a realizing the full potential of trade in services in the region.
highly sophisticated cyber attack in mid-December 2009 that
originated from China, apparently to gain access to email Rao emphasized that India was fully committed to working
accounts of Chinese human rights activists. with other SAARC countries to enhance the prosperity of the
South Asian region through social development and regional
Google shut down its Chinese search engine, automatically economic integration.
re-routing mainland users to its uncensored site in Hong Kong.
The firm later ended the automatic re-direct to avoid having its In this context, she referred to launch of projects in the
licence suspended by China. important areas of health, education, food, water and energy in
some of the neighbouring countries.
Other Asian nations have also presented challenges to
technology firms with several countries including Vietnam and
Talking about the SAARC during its 25 years of existence,
Thailand having moved to limit political debate online in recent
Rao said, "the process is maturing" and the grouping was now
years by attempting to block some sites, including Facebook.
gradually focusing on providing more services for the economic
and development needs of our people.
tututu
The Seventh Steering Committee Meeting has, in
IMPLEMENT SAFTA IN LETTER AND SPIRIT: INDIA September 2010, finalized all the modalities of the University
and plans are now afoot for the first meeting of the Governing
Advocating deepening of intra- Board of the SAU to be convened.
SAARC trade, India has pressed for
implementation of SAFTA in its letter Rao said valuable progress has been achieved in developing a
and spirit, in an apparent reference to
regional framework of cooperation in areas such as
Pakistan which has refused to
environment, energy, agriculture, rural development and trade.
implement the commerce opening pact
in the context of India.
SAARC has also facilitated some encouraging steps towards
greater cooperation in the prevention of trafficking of women
"SAFTA (South Asia Free Trade
Agreement) can be an important instrument to deepen intra- and children and increased people-to-people interaction has
regional trade if it is complied with by all member states and been facilitated by greater cultural and social exchanges under
implemented in letter and spirit," Foreign Secretary Nirupama the auspices of SAARC.
Rao told a meeting of SAARC Foreign Secretaries in Thimphu.
Referring to Secretary General Sheelkant Sharma's report,
She did not name any country but was clearly referring to she said it stresses the need to hold SAARC meetings on
Pakistan which has refused to implement SAFTA in the context schedule to ensure timely implementation of decisions.
of India and insists on doing trade with it only on the basis of
'positive list'. Bashir said Pakistan was seeking to carry forward contacts
and "engage seriously and pragmatically" to chart a way forward.
Pakistan, while signing the SAFTA that came into force on
1st July 2006, had agreed to implement it without reservation but "That is essentially what this meet is all about," the Pakistan
backed out later. Foreign Secretary said.

India has been complaining, even to the SAARC Secretariat, Bashir said the two Foreign Secretaries would focus on
that the issue of restricted import of goods from India by carrying forward the directives of the two Prime Ministers to
Pakistan under the SAFTA was against the letter and spirit of engage with each other. "Hopeful there will be positive
SAFTA. comments coming out after the meeting," he said.

34 PT’s PrepTalk – February 2011


On India's concerns over terrorism continuing to emanate financing, insurance, real
from Pakistan, Bashir said, "Terrorism is a global issue. I think estate & business services (9.2
this whole argument about terrorism emanating from any per cent), transport, storage
particular country or region is fictitious. We ought to have a very and communication (15.0 per
objective approach." cent), community, social and
personal services (11.8 per
tututu cent)," the official data
showed.
MOBILE CASH ON CARDS BY APRIL
In addition, the GDP growth estimate for FY2008-09 has
The National Payments Corporation been revised marginally upward to 6.8 per cent from the previous
of India (NPCI), an RBI functionary, estimate of 6.7 per cent.
hopes to rope in about 25 banks into its
fold to implement its Interbank Mobile Agriculture sector growth recorded 0.4 per cent growth in
Payment Solution (IMPS). FY2009-10 after witnessing a 0.1 per cent decline in FY2008-09,
the data showed.
“We have ten banks that have gone live with Interbank
Mobile Payment Solution and expect 15 more to join the group In addition, the mining and quarrying sectors registered 6.9
before April end,” said NPCI chief operating officer, Mr M. per cent growth in FY'10, as against 1.3 per cent expansion in the
Balakrishnan after unveiling the facility for Karur-based previous fiscal. Furthermore, electricity, gas and water
Lakshmi Vilas Bank in Chennai. production recorded 6.4 per cent growth in FY'10, compared to
4.9 per cent expansion in FY'09.
IMPS is a real time fund transfer facility via mobile phones
and does not require the account number of the beneficiary. tututu

Once registered with the bank for the service, a unique US INDIA BILATERAL TRADE INCREASES BY OVER 30
mobile money identifier (MMID) is issued to the customers, PERCENT IN 2010
which along with the mobile phone number, is used for both
credit and debit transactions. Though the service is enabled The Indo-US bilateral trade is
through a mobile application download, it can also be used in expected to increase by more than 30
low-end phones by regular SMS facility. percent in the first 11 months of 2010
to touch USD 50 billion.
“Since IMPS does not use the customer’s account number,
there is no fear of misuse of accounts through hacking of mobile The bilateral trade could even
phones,” Mr Balakrishnan said. touch the magical figure of USD 50
billion when the statistics for
The maximum daily credit limit for encrypted phones is
December are available, officials said,
50,000 spread over five transactions and for low-end phones is’
adding this reflects the growing trade
1000/day. With over 600 million mobile users in the country, the
relationship between the two
system is ideal to take banking services to rural areas, he added.
countries.
tututu
According to the latest figures
made available by the US Department
GOVT REVISES GDP GROWTH FIGURE FOR FY'10 of Commerce, between January to November 2010, the total
UPWARD TO 8 % bilateral trade between India and the United States was USD
45,011 million.
The government revised the GDP growth rate for the 2009-
10 financial year upward to 8 per cent from the earlier estimate of This is in comparison to USD 34,416 million during the
7.4 per cent on the back of improved performance of the same period in 2009; showing an increase of 30.79 percent.
manufacturing and services sectors. The total bilateral trade in 2009 was 37,607 million(about
USD 37.61 billion), which was a a significant drop from USD
"The growth rate of 8 per cent in the GDP during 2009-10 43,386 million in 2008 mainly because of the downturn in the
has been achieved due to high growth in manufacturing (8.8%), global economy.

PT’s PrepTalk – February 2011 35


In 2007, the total bilateral trade was USD 39,042 million. Earlier, Apple had an edge over Android because it allowed
The figures also reflected a greater increase in India’s export to users to find applications and buy them through the iTunes
the US than American export to India; even though both showed programme on their computers. These "important changes to
signs of increase. the Android market meet the needs of both users and
developers", Chris Yerga, a Google engineering director, was
Between January to November 2010,India’s export to the US quoted as saying.
had stood at USD 27,398 million as against USD 19,381 during
the same period in 2009; thus showing an increase of 41.36%. Google said that the application makers could create
Android applications that charge users for in-app purchases of
Meanwhile, US exports of merchandise to India grew by 17.2 virtual goods in games, among other things - a feature already
percent from USD 15.03 billion during the period Jan- Nov 2009 available on applications running on Apple devices.
to USD 17.61 billion during the corresponding period in 2010.
Developers can also set prices for their applications in
Cut and polished diamonds and jewellery are a major item of foreign currencies, which previously they had been unable to do,
India’s exports to the US, accounting for 21.5 percent. Exports Google said. There are more than 350,000 mobile applications
of this item had declined from USD 5.6 billion in 2008 to USD available on Apple devices compared with more than 100,000 on
4.6 billion in 2009. Android devices.

Textiles exports to the US, which account for 23 percent, fell tututu
by 10.3 percent from USD 5.42 billion in 2008 to USD 4.86
billion in 2009. Iron & Steel products which account for 5.3 INDIA TO ALLOW PAYMENT FOR IRANIAN CRUDE
percent of India’s exports to the US, fell by 33.8 percent from THROUGH GERMAN BANK
USD 1.68 billion in 2008 to USD 1.12 billion in 2009.
India decided to pay for Iranian crude oil in euro through a
Exports of Organic Chemicals fell by 10.2 percent from 1.46 German bank based in Hamburg, a finance ministry official
billion in 2008 to USD 1.32 billion in 2009. Exports of said.
pharmaceutical products grew from USD 1.43 billion in 2008 to
USD 1.66 billion in 2009. The conduit (route) was decided at a high level meeting
chaired by National Security Advisor Shiv Shankar
tututu Menon."State Bank of India (SBI) has been instructed to clear
over USD 2 billion of backlog payment beginning this evening,"
GOOGLE OPENS ONLINE STORE FOR ANDROID USERS the official said.

In an effort to compete with the rival The meeting was also attended by Economic Affairs
Apple in the wireless sector, search Secretary R Gopalan, Foreign Secretary Nirupama Rao and Oil
engine giant Google has launched a new Secretary S Sundareshan.SBI will route euro payments to
online store of advanced software National Iranian Oil Co's account in the Hamburg-based
applications that run on mobile phones Europäisch-Iranische Handelsbank AG (EIH Bank).
powered by Android software.
The official said over USD 2 billion payment is pending
Google's new online store, Market. since September and another USD 1.3 billion is outstanding
Android.com, will allow Android users since December 23.This is when the Reserve Bank of India
find new applications more easily from their computers, see (RBI) disallowed payments for Iranian crude using a long-
recommendations by friends and download applications to their standing clearing house system, run by the central banks of nine
mobile devices, the Wall Street Journal reported. countries – including India and Iran – dubbed as the Asian
Clearing Union.
Users of Android devices such as Motorola Mobility Inc.'s
Droid or HTC Corp.'s Evo smartphones have previously had India imports 12 million barrels of crude oil every month
access to the application market via their devices, but many from Iran. Iran accounts for 12 per cent of India's supplies and is
application makers complained it was difficult to get noticed its second-largest supplier behind Saudi Arabia.Iran had
there because the marketplace was partly built around lists of continued to supply crude oil to India on credit after the RBI
featured applications and top downloads. move, the official said.

36 PT’s PrepTalk – February 2011


MARUTI LAUNCHES NEW LUXURY MODEL 'KIZASHI' Other economies in which ICT goods make up 30 percent or
more of exports include mainland China, Singapore and the
The country's largest car maker Philippines.
Maruti Suzuki India launched its
luxur y sedan Kizashi, with an The data shows that while ICT exports from most major
introductory price of upto Rs 17.5 lakh. exporters declined in 2009 as a result of the financial crisis, the
fall was particularly pronounced among several European
The car, powered by a 2.4 litre countries.
petrol engine, will be imported from
parent Suzuki's Japan facility. "The Kizashi is a major step ICT exports dropped by more than half in Portugal and
forward for Maruti Suzuki. With the launch of this luxurious Finland, by 36 percent in Ireland, and by more than 20 percent in
sporty sedan, the company is able to offer an international car to the Czech Republic, France, Germany, and Sweden. Japan and
top-end customers in India," Maruti Suzuki India Managing the US also saw sharp declines.
Director and CEO Shinzo Nakanishi told reporters here.
The US tops the list of ICT importers, followed by China
The car would be available in two variants, manual and Hong Kong. Among major importers, declines of more than
transmission priced at Rs 16.5 lakh and automatic transmission 35 percent were registered by Finland, Ireland, Portugal, Russia
at Rs 17.5 lakh. The company has already started bookings for and Spain in 2009.
the car, deliveries for which will begin in March this year.
Economies for which ICT goods represent large shares of
tututu their imports are mainly in East and Southeast Asia. A few Latin
American countries also report a high reliance on ICT goods
imports, including Costa Rica (17 percent), Mexico (20 percent)
INDIA'S ICT EXPORTS RISE BY 244 PERCENT IN 2009 and Paraguay (26 percent).
India's exports and imports of
tututu
information and communications
technology (ICT) experienced a
rapid rise in 2009 as Asia accounted RBI HIKES KEY RATES BY 0.25%, RETAINS GDP
for two third of global ICT exports, FORECAST AT 8.5%
according to a UN agency.
With a view to rein in high inflation, the
India's exports and imports of Reserve Bank of India raised its key short-
information and communications technology (ICT) term lending and borrowing rates by 0.25
experienced a rapid rise in 2009 as Asia accounted for two third per cent each with immediate effect.
of global ICT exports, according to a UN agency.
The short-term lending (repo) rate has
While India's ICT exports increased by a dramatic 244 been hiked to 6.50 per cent and the
percent, a rapid increase in imports too moved it from 28th to borrowing (reverse repo) to 5.50 per cent, a
17th in the global ranking of importers, according to the data move that will make funds expensive for banks and may lead to a
compiled by the UN Conference on Trade and Development hike in interest rates.
(UNCTAD).
The Reserve Bank, however, projected GDP growth at 8.5
The agency also noted that more than a third of the world's per cent with an upside bias. It also warned that inflation is a
ICT exports now originate from mainland China and its special matter of concern and revised its projection for FY'11 to 7 per
administrative region of Hong Kong. cent from 5.5 per cent earlier.

In the wake of the global financial crisis, mainland China These initiatives, the RBI said will "rein in rising inflationary
exported ICT goods valued at $356 billion in 2009, followed by expectations, which may be aggravated by the structural and
Hong Kong ($142 billion) and the US ($113 b), UNCTAD said. transitory nature of food price increases."

Reliance on exports of ICT products is most pronounced in The apex bank further said its monetary action was aimed at
Hong Kong, where the goods represent more than 43 percent of reining in rising inflationary expectations, while at the same
all merchandise exports, it said. time being moderate enough not to disrupt growth.

PT’s PrepTalk – February 2011 37


It also aims to contain the spill-over from rising food and fuel Leading banks have agreed to extend pre-shipment credit in
prices to generalised inflation and continue to provide comfort foreign currency at London Interbank Offered Rate (Libor) plus
to banks' liquidity management operations, the RBI said. 2 per cent with no additional charges levied.

tututu The Reserve Bank of India (RBI) has instructed all the
commercial banks to ensure that post- shipment credit is
INDIA TO CUT EXPORT DEAL COSTS BY RS. 21BN available at prescribed rates up to 180 days as stipulated in case
of overdue bills.
India announced a slew of
measures, including round-the-clock tututu
customs clearance at eight ports and
reduction in levies, that will cut export HP LAUNCHES RECLINING PC
transaction cost by nearly Rs. 2100
billion ($466.66 million), making the Computers are increasingly coming in all shapes and sizes.
countr y's overseas trade more Now there is even a reclining computer.
competitive.
HP announced the new
Fi n a n c e M i n i s t e r Pr a n a b form factor, saying that it
Mukherjee released a report of the task force on transaction believed the ability to lay the
costs that has made 44 recommendations aimed at improving screen almost horizontal
competitiveness of Indian exports. would be eagerly welcomed by
consumers and companies
The government has agreed to implement 32 of the 44 such as hotels and other
identified issues that are related to various ministries and customer-facing businesses.
departments, said Minister of State for Commerce and Industry
Jyotiraditya M. Scindia. Analysts said HP was hoping that the devices could help the
world's top computer maker fend off the challenge posed by
"Of these, 21 issues have been implemented and another two Apple's iPad, which is being widely adopted by businesses such
are likely to be implemented in a couple of months. The as hotels, car dealers and others who like to share online
remaining issues are under the process of examination and information with customers.
consultations for implementation," Scindia said.
Part of HP's TouchSmart line, the new devices feature 58-cm
"It is expected that implementation of 23 issues is likely to touch screens that can recline to a 60-degree angle and be
mitigate the transaction cost by approximately Rs. 21 billion. swiveled from side to side. Both the consumer and business
Permanent reduction of transaction cost through these versions of the device run on Windows 7.
initiatives will have a long term positive impact on the
competitiveness of India's exports," Scindia, who chaired the The consumer device goes on sale with prices starting at
task force, added. $899. The business version will be available in May.

The major recommendations that have been implemented "As a leader in touch computing, HP has made each iteration
include round-the-clock customs clearance at eight ports - of the TouchSmart PC more intuitive, resourceful and fun for
Visakhapatnam, Kolkata, Jamnagar, Mangalore, Jawaharlal users," said HP executive James Mouton.”
Nehru Port Trust (Navi Mumbai), Mumbai, Bhubaneswar and
Chennai - and reduction in various levies. “The latest generation is no exception with a new design that
makes it easier and more comfortable to use, and it allows
Booking charges for the foreign currency have been reduced businesses to integrate the TouchSmart where convenience,
from Rs. 750 per transaction to Rs. 400-500 per transaction. space constraints and appearance matter." he added.

Delhi International Airport has reduced the charges levied HP is expected to unveil its own line of tablet computers also.
for screening express cargo and courier shipments from Rs. 6 to The devices will run the company's WebOs operating system
Rs. 1.65 per kg for the export courier at its Express Courier that it acquired as part of its $1.6-billion purchase of Palm last
Terminal at Indira Gandhi International Airport. year.

38 PT’s PrepTalk – February 2011


INDIA TO LAUNCH OF MICROSOFT WINDOWS PHONE 7 AVIATION SECTOR CAN ABSORB USD 120BN
INVESTMENT: PM
Microsoft plans to
launch its Windows Phone Observing that the aviation sector had a potential to absorb
7 and search engine Bing USD 120 billion investment, Prime Minister Manmohan Singh
in the Indian market this said efforts were on to create world-class aviation infrastructure
year, an official said in across the country on a mission mode.
Hyderabad.
The growth of low-cost air travel has given a strong
The software major's competition to the railways by making new frequent flyers, he
India development centre said while inaugurating the new international terminal building
has fine-tuned the innovative applications of Bing for its launch at the airport in Thiruvananthapuram.
in India.
Emphasizing the importance of aviation sector in the
"Windows Phone 7 will be launched in a few months but the country's economy which was getting integrated to the global
date has not yet been decided," Amit Chatterjee, managing economy, Dr. Singh said the government has formulated various
director of Microsoft India Development Centre (MSIDC), told policies to give a boost to this vital sector.
reporters.
Creation of modern and efficient infrastructure at the
He did not agree that Windows Phone 7 already launched airports to handle passenger volumes of this magnitude requires
abroad is heavy and slow. "A number of products are to suit the huge investment. This creates significant opportunities and
demands of a billion satisfied customers all around the world. challenges, he said.
We are making all efforts to give them a brand new visual
experience," he said. A roadmap to modernize the existing airports on a mission
mode to create world-class infrastructure was being
He said the device allows Microsoft to bring together its implemented at a fast pace as air transport in the country was
assets like Office, Explorer and search engine Bing. The witnessing an unprecedented growth, the Prime Minister said.
applications range from simple to those with more work flow.
While domestic air traffic has tripled international traffic to
Windows Phone 7 has already been launched in the US and and from India more than doubled in the last seven years.
other countries with its global partner HTC. Windows Phone 7
and Bing are two of the focus areas of MSIDC. Noting that aviation was earlier considered only for the
affluent, he said, "With the growth of low-cost air travel, the
Chattterjee, who recently succeeded Srini Koppulu as the airlines are now giving strong competition to the railways and
MD, termed Bing as a decision engine, quite different from the many passengers who earlier used to travel only by trains today
other search engines. frequently use air flights".

On cloud computing, Chatterjee said it offered great To meet the growing air traffic demand, he said the policy on
opportunity and MSIDC has a team focusing only on cloud airport infrastructure aimed to increase airport capacity to stay
computing. ahead of demand and garner the maximum share of traffic in the
region.
Chatterjee said the centre has contributed to 270 patents
filed during last five years. "We wish to make our airport facilities user friendly and
achieve high levels of customer satisfaction. We also seek to
He denied that Microsoft downsizing workforce elsewhere ensure the safety and security of airport operations and develop
had any impact on MSIDC here. "We will continue our robust multi-modal transport linkages," he said, adding aviation
campus hiring. We will continue to recruit 150 to 170 graduates infrastructure was being modernized through joint ventures
every year from the campuses across India," he said. under the private-public partnership model.

One of Microsoft's largest product development centres Complimenting the Airports Authority of India, he said the
outside Redmond, MSIDC along with its Bangalore unit has a entire investment of the new International Terminal Building in
strong team of 1,650 employees and is developing new products Thiruvananthapuram at a cost of Rs 289 crore was being met
and technologies for the global Microsoft portfolio. through AAI's internal resources.
=
PT’s PrepTalk – February 2011 39
W. Edwards Deming:
Quality Guru
D r. W. Edwards Deming, the father of Japanese post-war
industrial revival, was regarded by many as the quality
guru in the United States. Trained as a statistician, his
expertise was used during World War II to assist the United
States in its efforts to improve the quality of war materials.
WORK IN JAPAN
After World War II (1947), Deming was involved in early
planning for the 1951 Japanese Census. He was asked by the
Department of the Army to assist in this census. While he was
there, his expertise in quality control techniques, combined with
Deming's business philosophy is summarised in his famous “14 his involvement in Japanese society, led to his receiving an
Points”, which have inspired significant changes among a invitation from the Japanese Union of Scientists and Engineers
number of leading companies in the world striving to compete in (JUSE) for his lectures. A number of Japanese manufacturers
the world's increasingly competitive environment. applied his techniques widely and experienced unheard-of
levels of quality and productivity. The improved quality,
INTRODUCTION combined with the lowered cost, created new international
demand for Japanese products.
William Edwards Deming (1900–1993) was an American
statistician, college professor, author, lecturer and consultant. When Deming declined to receive royalties from the
Deming is widely credited transcripts of his 1950 lectures, JUSE established the Deming
with improving production Prize (1950) to repay him for his services. The Deming Prize –
in the US during World War especially the Deming Application Prize, which is given to
II, although he is perhaps companies – has exerted an immeasurable influence directly or
best known for his work in indirectly on the development of quality control and quality
Japan. From 1950 onwards management in Japan.
he taught top management
in Japan how to improve WORK IN THE US
design (and thus service), Ford Motor Company was one of the first American
product quality, testing and corporations to seek help from Deming. In 1981, Ford recruited
sales through various Deming to help jump-start its quality movement. Ford's sales
methods, including the were falling. Between 1979 and 1982, Ford had incurred $3
application of statistical billion in losses. Deming questioned the company's culture and
methods and hypothesis the way its managers operated. To Ford's surprise, Deming
testing. talked not about quality but about management. He told Ford
that management actions were responsible for 85 percent of all
Deming made a problems in developing better cars.
significant contribution to
W. Edwards Deming Japan's later renown for In a letter to Autoweek Magazine, Donald Petersen, then
innovative high-quality products and its economic power. He is Ford Chairman, said, “We are moving toward building a quality
regarded as having had more impact on Japanese manufacturing culture at Ford and the many changes that have been taking
and business than any other individual not of Japanese heritage. place here have their roots directly in Dr. Deming's teachings.”
Despite being considered something of a hero in Japan, it was By 1986, Ford had become the most profitable American auto
only at the time of his death that he was beginning to win company. For the first time since the 1920s, its earnings had
widespread recognition in the U.S. Deming was the author of exceeded those of arch rival General Motors (GM). Ford had
Out of the Crisis (1982–1986) and The New Economics for come to lead the American automobile industry in
Industry, Government, Education (1993), which includes his improvements. In the following years, Ford confirmed that its
System of Profound Knowledge™ and the 14 Points for success was not a fluke, for its earnings continued to exceed
Management (described below). those of GM and Chrysler.

40 PT’s PrepTalk – February 2011


DEMING'S 14 KEY PRINCIPLES r Institute a vigorous programme of education and
Deming offered 14 key principles of management for retraining.
transforming business effectiveness. In summary:
r Create a structure in top management that will push every
r Create constancy of purpose towards improvement of a day on the above 13 points.
product and service, with a plan to become competitive and
stay in business. Decide to whom top management is QUOTATIONS UNSCRAMBLED
responsible.
r “There is no substitute for knowledge.” There is a need to
r Adopt the new philosophy. We are in a new economic age. know more, about everything in the system. It is considered
We can no longer live with commonly accepted levels of as a contrast to the old statement, “There is no substitute
delays, mistakes, defective materials and defective for hard work” by Thomas Alva Edison (1847–1931).
workmanship. Instead, a small amount of knowledge could save many
hours of hard work, just as knowing a password could save
r Cease dependence on mass inspection. Require, instead, hours trying to remember or getting the password
statistical evidence that quality is built in (prevent defects reauthorised or reset.
instead of detecting defects).
r “The most important things cannot be measured.” The
r End the practice of awarding business on the basis of price issues that are most important in the long-term cannot be
tag. Instead, depend on meaningful measures of quality measured in advance. However, they might be among the
along with price. Eliminate suppliers that cannot provide factors that an organisation is measuring, without being
statistical evidence of quality. understood as the most important at the time.

r Find problems. It is the management's job to work r “Experience by itself teaches nothing.” This statement
continually on the system (design, incoming materials, emphasises the need to interpret and apply information
composition of material, maintenance, improvement of against a theory or framework of concepts that is the basis
machine, training, supervision, retraining). for knowledge about a system. It is considered as a contrast
to the old statement, “Experience is the best teacher”. To
r Institute modern methods of training on the job. Dr. Deming, knowledge is best taught by a master who
explains the overall system through which experience is
r The responsibility of the foreman must be to change from judged; experience, without understanding the underlying
sheer numbers to quality, which will automatically improve system, is just raw data that can be misinterpreted against a
productivity. Management must prepare to take immediate flawed theory of reality.
action on reports from the foreman concerning barriers
such as inherent defects, poor maintenance of machines, r “Devise a policy of acceptable defects rather than waste
poor tools and fuzzy operational definitions. efforts on zero-defect goals”. Dr. Deming stressed the
importance of establishing a level of variation, or
r Drive out fear, so that everyone may work effectively for the anomalies, acceptable to the recipient (or customer) in the
company. next phase of a process. Often, some defects are quite
acceptable, and efforts to remove all defects would be an
r Break down barriers between departments. People in excessive waste of time and money.
research, design, sales and production must work as a team
to foresee problems of production that may be encountered r “The worker is not the problem. The problem is at the top
with various materials and specifications. Management!” Deming states that workers represent only
15 percent of the problem and that “system” is responsible
r Eliminate numerical goals, posters and slogans for the for the other 85 percent. The “system” is the responsibility
workforce, asking for new levels of productivity without of management. Instead of blaming production and service
providing methods. problems on the work force and demanding that workers
work harder to do their jobs in the way they were taught,
r Eliminate work standards that prescribe numerical quotas. management should evaluate the system and work to
transform it. The essence of quality management is the
r Remove barriers that stand between the hourly worker and ability to treat problems of the system and of the people
his right to pride of workmanship. simultaneously.
a
PT’s PrepTalk – February 2011 41
PT Panorama

Cement industries in India


ndia, world's second largest cement producer after China, is

I the home to a number of top cement companies. As various


infrastructure projects, road networks and housing projects
are coming up, many of which are backed by the government,the
cement industry in India is growing at a great pace these days.
With the capacity of 151.2 Million Tones (MT), the Indian
cement industry is truly big in size and hence accommodates a
number of cement companies in the market. Not only that, more
growth is further expected in the coming years, which will also
lead to the growth of top cement companiesin India.

The Indian cement industry is largely dominated by a few


companies. The top 20 cement companies account for almost
70% of the total cement productionof the country. During April-
September 2009, the Indian cement companies produced 11
MT cement, whereas the total cement product in the country in But, along with that, growth in Indian cement export has also
FY09 was 231 MT. It is further expected to reach 236.16 MT in been the result of the varieties that are produced here. Ordinary
FY11 and 262.61 MT in FY12. Portland Cement (OPC), Portland Blast Furnace Slag Cement
(PBFS), Portland Pozzolana Cement (PPC), Rapid Hardening
Portland Cement, Oil Well Cement, Sulphate Resisting Portland
ABOUT CEMENT INDUSTRY IN INDIA Cement and White Cement are some of the types of cement that
are availablehere.
Indian Cement Industry has seen both ups and downs.
However, its competitiveness and tendency Some cement plants have even gone an extra mile in their
to grow for achieving a technologically endeavor to launch committed jetties in order to promote huge
sound status has helped the industry see an transportationand export.
impressive increase in export. Today, export
of Indian cement may see further growth on
account of an expected increase in COMPARATIVE OUTLOOK OF EXPORT OF CEMENT FROM
production and consumption level. The INDIA
industry is predicted to grow by 9 to 10%
along with bringing stabilizationin rates. During 2007-08, the export of cement from India touched
the 2.16 million tonnes mark. However during 2008-09, the
ABOUT EXPORT OF CEMENT FROM INDIA cement export from India stood at 1.46 million tonnes.

Abounding in about 130 big and 300 small cement plants, In spite of seeing fall during 2008-09, the export segment of
India's cement production capacity stands at 167.36 million the industry is expected to grow again on account of various
tonnes. Currently, the cement industry in India is positioned at infrastructure projects that are being taken up all over the world.
number 2 in the world. With incorporating modern techniques
in the production, the Indian cement industry has not only been TYPES OF CEMENT IN INDIA
able to meet domestic demands but also serving well to the
international arena. Undoubtedly, the credit for this can be The booming cement industry in India is well recognizedfor
attached to the superlative quality of the cement produced in producing vast varieties of cement that conform to Bureau of
India, which in turn has helped in registeringboom in exports. Indian Standards (BIS).

42 PT’s PrepTalk – February 2011


VARIETIES OF CEMENT IN INDIA
There are some varieties in cement that always find good
demand in the market. To know their characteristics and in
which area they are most required, it will be better to take a look
at some of the details given below.

Portland Blast Furnace Slag Cement (PBFSC): The rate


of hydration heat is found lower in this cement type in
comparison to PPC. It is most useful in massive construction
projects, for example- dams.

Sulphate Resisting Portland Cement: This cement is


beneficial in the areas where concrete has an exposure to
seacoast or sea water or soil or ground water. Under any such
instances, the concrete is vulnerable to sulphates attack in large
amounts and can cause damage to the structure. Hence, by White cement: It is a kind of Ordinary Portland Cement.
using this cement, one can reduce the impact of damage to the The ingredients of this cement are inclusive of clinker, fuel oil
structure. This cement has high demandin India. and iron oxide. The content of iron oxide is maintained below
0.4% to secure whiteness. White cement is largely used to
Rapid Hardening Portland Cement: The texture of this increase the aesthetic value of a construction. It is preferred for
cement type is quite similar to that of OPC. But, it is bit more tiles and flooring works. This cement costs more than grey
fine than OPC and possesses immense compressible strength, cement.
which makes casting work easy.
Apart from these, some of the other types of cement that are
Ordinary Portland Cement (OPC): Also referred to as availablein India can be classifiedas:
grey cement or OPC, it is of much use in ordinary concrete
construction. In the production of this type of cement in India, r Low heat cement
Iron (Fe2O3), Magnesium (MgO), Silica (SiO2), Alumina r High early strength cement
(AL2O3),and Sulphurtrioxide (SO3) componentsare used. r Hydrophobic cement
r High aluminiumcement
Portland Pozolona Cement (PPC): As it prevents cracks, r Masonry cement
it is useful in the casting work of huge volumes of concrete. The
rate of hydration heat is TOP 10 CEMENT COMPANIES IN INDIA
lower in this cement type.
Fly ash, coal waste or burnt Let's have a look at the top 10 cement companiesin India.
clay is used in the
production of this category r ACC Limited
of cement. It can be availed
at low cost in comparison to r Gujarat Ambuja CementsLimited
OPC. r Ultratech

Oil Well Cement: r Grasim


Made of iron, coke, limestone and iron scrap, Oil Well Cement is r India Cements
used in constructing or fixing oil wells. This is applied on both
the off-shore and on-shore wells. r JK CementLtd
r Jaypee Group
Clinker Cement: Produced at the temperature of about
1400 to1450 degree Celsius, clinker cement is needed in the r Century Cement
construction work of complexes, houses and bridges. The r Madras Cements
ingredients for this cement comprise iron, quartz, clay,
limestoneand bauxite. r Birla Corp.
=
PT’s PrepTalk – February 2011 43
Guestroom

MY GUZAARISH
Lt. Col P. Deogirikar (Retd.)

I had the privilege of viewing Bhansali’s “Guzaarish” last week. A masterpiece all right despite many shortcomings.
The media was full of reviews and experts’ opinions. I neither have the expertise nor the intention to add to it. But I
would like to take a different approach. This movie raises the question, “Should we permit an individual to take
his/her life, if it becomes unbearable?” Now, should we not start from the basics and then reach this ‘life and death’
question? Here is the elaboration.

Birth- Start at the beginning. Does a female fetus in our Location- I get scores of requests from the parents of the
society have exactly the same freedom to take birth as the male girls that they should be considered for a job in Indore only. Look
one? How many times have you seen a girl being born in a family at the logic, ‘Look we have given her education. It is the privilege
after three or even two sons? And have you not seen a boy being of her would be in-laws to decide whether she pursues a career
born after two, three or even four daughters? Q.E.D.! When we or not. As for as we are concerned, she works in Indore if she
don’t give some of them the choice to exist, how can we even works!” Case dismissed!
think about the choice of ‘wish-death’ ?
And why only girls, we have considerable number of boys
Water- If it is a fact that there is even one well in one village who do not step out of their home town just to be under the
in this country where particular caste(s) are not allowed, do we ‘aanchal’ of their mothers! ‘Indorilals’, as they are known, are
have the moral right of even considering this ‘Guzaarish’ ready to sacrifice their career (and later crib about it) just to be
question? with their parents and just to meet their friends every evening at
‘56 dookan’ or sarafa! And we are talking about giving the right to
Education- Would you bet that the girls have the same die!
encouragement in our society to have the education as the boys?
Across the country? Let us admit that the word ‘son’ is Marriage- I thought the scene was changing for better, but
synonymous to ‘career’ here and the daughter to ‘marriage’. then ‘khap’ happened! Forget about getting married in other
Hasn’t a lady Supreme Court Judge written her daughters religion, we do not permit them to get married in the same
names under liability? So, the girls do not have the freedom to ‘gotra’! If they do, the punishment is ‘death penalty’! And it was a
get educated as they want. The government does acknowledge shock to know that some very formidable members of the society
this by handing over free bicycles to school-going girls but not concur with this view point.
boys! Our collective energies should be spent in getting this
right for all.

Career- Again, the same discrimination is observed in the


career part. I came across a simple logic from a worried parent of
a daughter who had done MBA in HR. I had found that she did
not have a liking for the subject. I had asked the father as to why
did she take HR then. “Finance is not a woman’s area, marketing
was out of question - she is not supposed to tour a lot, and
computer gave her headaches. So that left only HR.” I had heard
‘management by exception’, here it was ‘career by exception’!

If you want to get an endorsement from Bollywood (may be


Aamir Khan), is not Madhavan declared an engineer in the first
minute after his birth? As someone has said, “Indians do dream
but those are someone else’s dreams!”. When we can’t allow ‘Guzaarish question’ can only be compared with a question asked
them to decide on their all-important career, how would we allow by the car passanger to this woman, “Would you like a best-seller
them to take their lives? book instead?”

44 PT’s PrepTalk – February 2011


Life after Marriage- In some homes we permit the Corruption- At the end of blotched 2010, we are compelled
daughter-in-law to stay alive only as long as she brings in to ask ourselves, “Is it really possible for any one to have an
handsome amounts in dowry. We order her execution if she does honest business in this country?”
not!
And I can go on to picking many more such ‘basic’ questions
Religion- There may have been a fair dilution now, but can which need our attention. The gist is, let us first take care of
we still say that each one of us is free to follow the religion of their these issues before we spare our time and energy in asking that
choice? Okay, one may have been permitted but who guarantees terminal question.
(peace after Ayodhya judgement may have been an aberration)
that we will not pick up the sword on the slightest of provocation? Let other matured societies
(may be Bhansali makes movies
Regionalism- We have strong reservations when one for them!) think about this
citizen from one province lands into another for job or business. question, we should get back to
All sorts of noises are made against it. Law and order is thrown the basics! Once we get at least
out of window. Even if we permit, we expect them to take second- partial solutions to these
class citizenship there. questions, we will welcome Mr. Bhansali to our desk.
a

Srikrishna Committee submits report


on Telangana
The 5-member Justice Srikrishna Committee has The Home Minister said that all political parties and
submitted its report on the separate Telangana state demand to groups have given an assurance that they will maintain peace,
Home Minister P Chidambaram, who said government will harmony and law and order. "We welcome and believe these
consult all political parties before taking an "appropriate" assurances".
decision on the issue.
He said that he has noted that there was some concern about
The two-volume report, prepared by the the deployment of security forces.
Committee after extensive discussions
with political parties and other "Let me assure the people of Andhra
organisations in the state over the past 11 Pradesh that the deployment of security
months, was submitted a day before the forces is a purely precautionary measure.
Committee's term was to expire. They will remain in the force headquarters or
police stations as a reserve force."
Chidamba ram sa i d t h a t t h e
government will consider the report Earlier, the five-member committee held its last
carefully and begin the process of sitting and is understood to have finalized the contents
consultations with all political parties of the much awaited report.
before taking appropriate decisions on
the report. Prime Minister Dr. Manmohan Singh reviewed the political
and security situation in the state with his senior cabinet
"The report is in two volumes. The colleagues.
report will be carefully studied in the
Ministry of Home Affairs and will be shared Govt issues directive to all television channels. Meanwhile,
with the ministries or departments concerned of the Information and Broadcasting Ministry has issued a directive to
government. all television channels in the country to be objective and act with
restraint while reporting on the Telangana issue. Ministry said
The government has great faith in the wisdom, maturity and there should not be any provocative broadcast that could stir up
tolerance of the people of Andhra Pradesh, he said. emotions of people without reason.
a
PT’s PrepTalk – February 2011 45
Facts about Indian Budget
r The word Budget is a derivative of
the Middle English word 'Bowgette'
& French word 'Bougette, which is a
derivative of 'Bouge', meaning
“LEATHER BAG”.

r Budgets have always been


presented on the last day of February. So B-day is always on
February 28, except on leap years when it is presented on
February 29. However, last year, the Budget was presented
on February 26 as 28th was a Sunday.

r Of course, there are occasions when instead of a full-


fledged Budget, an interim budget is presented. On
occasions, a vote on account is presented in place of a
Budget: this is done during an election year. The full or
interim Budget, as the case may be, is presented by the new r The highly confidential Budget papers are printed at
dispensation that has been voted to power. finance ministry's own printing press. The press at the
basement of the building, becomes a forbidden area. A week
r R K Shanmukham Chetty presented independent India's before the budget is presented, the employees of the press
first budget. R K Shanmukhan Chetty served as the finance stay in the ministry and have no means of communicating
minister in Jawaharlal Nehru's Cabinet between 1947-49. with the outside world.

r On November 26, 1947, Chetty r The finance minister is required to submit the Budget to
presented the first Budget of the Parliament usually on the last working day of February
independent India. Actually, it was so that the Lok Sabha has one month to review and modify
a review of the economy and no new the Budget proposals.
taxes were proposed as the Budget
day for 1948-49 was just 95 days r The Budget proposed by the finance minister comes into
away. effect after parliamentary discussion on the Budget has
been completed by April 1.
r Chetty resigned in 1949 due to differences with the then
prime minister Pandit Jawarharlal Nehru. r Indira Gandhi has been India's only woman finance
minister for a year from 1970 to 1971.
r The Budget is discussed in two stages in Lok Sabha. First,
there is the general discussion on the Budget as a whole. r Moraji Deasi has presented the
This lasts for about four to five days. maximum number of Budgets,
He has presented 8 Budgets.
r Only the broad outlines of the Budget and the principles (Under Nehru and three years
and policies underlying it are discussed at this stage. The under Indira Gandhi). He holds
'Annual Financial Statement' is laid on the table of Rajya a unique record of presenting 2
Sabha at the conclusion of the speech of the finance budgets on his birthday
minister in Lok Sabha. (29/2/1964 and 29/2/1968).

46 PT’s PrepTalk – February 2011


r Rajiv Gandhi presented
the budget for 1987-88
after V P Singh quit his
government.

r Manmohan Singh, in his


annual budgets from
1992-93, liberalised the
economy, encouraged
foreign investments and
reduced peak import duty from 300 plus per cent to 50 per
cent.

r Until 2000, the Union Budget was announced at 5 pm on


the last working day of the month of February.

r This practice was inherited from the British, when their


Parliament would pass the budget in the noon, followed by
India in the evening of the day. Yashwant Sinha changed the
timing to 11 a.m.

r The Union Budget of India for the year 1997-98, presented


on February 28, 1997 by the Finance Minister P
r C D Deshmukh was the first Indian Governor of the Chidambaram, was hailed as a 'Dream Budget'. The budget
Reserve bank of India to have presented the Interim Budget unveiled a road map for economic reforms in India.
for 1951-52. Chidambaram lowered income tax rates, got rid of the
surcharge on corporate tax and reduced corporate tax rates.
r Jawaharlal Nehru was the first Indian prime minister to
present the Budget when he was in charge of the finance r The 1965-66 budget contained the first disclosure scheme
ministry in 1958-59. Indira Gandhi and Manmohan Singh for black money.
too held the finance portfolio.
r In 1950-51 budget, the then Finance Minister John Mathai
r Many Indian finance ministers later became prime announced the creation of the Planning Commission.
ministers. Morarji Desai, was twice the finance minister of
India – 1959-64 and 1967-70. He served as the prime r Budget papers began to be
minister from 1977 to 1979. Chaudhary Charan Singh prepared in Hindi from 1955-
became the prime minister in late 1979, having held the 56.
finance portfolio earlier the same year.
r India has had 28 finance
r V P Singh was finance minister from 1985 to 1987 and prime ministers since
minister from 1989 to 1990. Independence.

r Two finance ministers, Yashwant Sinha and Manmohan r Of 17 Budgets since 1991-92, on 10 occasions the stock
Singh have presented 5 budgets in a row. markets fell in the one month following the Budget.

r R Venkataraman was the only Finance Minister who later r In the present history, budget is the political tradition which
became the President of India. is steeped in every part of human life.

r Yashwant Sinha has the distinction for maximum rollbacks r The government of India makes its own guidelines and also
in the Union Budget that was presented in 2002; he went some outlines for the budget for the next upcoming years.
back on at least five budget proposals.
r There will be two economic forecasts to which the
r Finance Minister who has been for 13 days is Jaswant Singh. government treasury will be legally bound.
a
PT’s PrepTalk – February 2011 47
PT Panorama

Problem-solving Skills
Introduction In an era when information technology is one’s primary tool,
knowledge the strategic asset, and problem-solving the
In the digital age business organizations are being paramount skill, problem-solving ability is now the most
challenged by global competition, as well as technological and sought-after trait in up-and-coming executives, according to a
social change, to solve bigger, tougher problems faster, better, recent survey of 1,000 executives by Caliper Associates, reported
and cheaper than ever. Improved problem-solving capability is in the Wall Street Journal by Hal Lancaster. To put it bluntly, if
the. Ultimate competitive advantage and the best organizations one is not a problem-solver, one’s career potential is limited.
are increasing the sophistication with which they systematize
their problem-solving processes. Individuals who wish to lead The Problem-solving Journey
organizations or build successful careers in the digital age will
need to build their understanding of problem-solving as a field The problem-solving journey is referred to because the
in itself. mixture of problem-solving and adventure blends two rich
sources of knowledge into one. After all, every problem is an
Sophisticated problem-solving is based on simple adventure, involving a movement from situation A to situation B,
and every adventure is a problem to be solved, involving a
essentials movement from point A to point B. Exactly like an adventure,
problem-solving is a journey from a starting point to some
Knowing how simple distant destination. It is a journey into the unknown through fear
elements generate complex and exhilaration, confidence and disappointment.
results is the ultimate source of
power. Three primary colours Thinking of the solutions of problems (or opportunities) as
blend to make up the paintings journeys brings the topic alive. Professional knowledge about
and films that capture our problem-solving is, by definition, abstract. But the language,
imagination. Two binary states images, ideas, and principles of adventure and exploration make
are the foundation of the digital it accessible and invest it with the drama that real problem-
processing that underpins the solvers experience: the disciplined planning, the long waits, and
information age. the moments of crisis and celebration. Moreover, since we
people have all traveled, this metaphor helps them tap into their
In the same way, there are six own undiscovered sources of wisdom about the principles and
essential skills involved in human practices of problem-solving journeys.
problem-solving: generating mindset, acquiring "knowledge,
building relationships, managing problems, creating solutions,
and delivering results. The tougher, larger and more demanding The Difference between the best and the worst
a problem or opportunity is, and the faster and more competitive problem-solvers
your environment is, the more important these skills become.
The difference; between the best and the worst problem-
One is not talking about the 'old' problem-solving solvers is how many of the six essentials they can marshal (by
–traditional cookbook approaches that are small-scale, linear, themselves or with others"), and how deeply the skills are
deficiency-oriented and tactical. What is talked about is a 'new', understood, individually and collectively. Poor problem-solvers
rapidly-evolving definition of problem-solving that understand the skills incompletely and therefore cannot
encompasses large-scale, nonlinear, opportunity-oriented and marshal a complete capability; great problem-solvers know the
strategic work. This is problem-solving in the age of biotech, the skills well enough to pull together and manage all six, or exhibit
Web, smart materials, and the global economy. one in great depth as part of a team.

48 PT’s PrepTalk – February 2011


Knowtheterritory(thediscoverer)
The discoverer concentrates on moving from innovation to
insight by asking the right questions and getting good, timely in-
librarian. Better knowledge helps one determine problems more
effectively, choose the best routes, and identify what's at stake. A
discoverer's knowledge of a territory brings understanding and
insight, which reveal the most likely problems and opportunities
in higher relief. With more investigation, the causes and
implications of those problems become more, apparent.

Leading discoverers such as Craig Venter of Celera


Genomics, Motel Prize winner Dr Eric Wiesehaus, or Gordon
Moore of Intel are examples of what outstanding discovery can
produce. Great companies and universities that have built a
foundation on research and discovery include Bell Labs, MIT,
The journey from novice to world-class expert in any field and CalTech.
begins by understanding the six essentials, practicing them,
mastering them at one level, and then moving on towards the Buildtherelationship(thecommunicator)
limits of one’s potential. The communicator deals with how to move from insight to
community by cultivating quality communication and
At some point in this process, the best problem solvers rise interaction-and so creating an ever-expanding circle- of
above their profession in a multi disciplinary fashion. Each of relationships based on service, loyalty, and identity. Through
the six essentials represents a bundle of habits, skills, and their mastery of relationship building, communicators connect
knowledge that come together in problem-solving potential journeys to their actual implications for real people.
'personalities'. Each personality draws its strength from a variety They help determine whether a problem-solving efforts are
of specialities and professions. worth-while for worry, and why. Then they generate a core group
that will tackle the journey and a network that will support the
The six personalities serve as a convenient way to assess effort.
oneself and others that one works with. They allow one to
determine your own personal mix of strengths and weaknesses Great communicators like Franklin Roosevelt or Winston
and how one can put together complete problem-solving Churchill demonstrate the power of communication and
capability. Great problem-solvers know their strengths and relationship building in tackling historic problems. Companies
weaknesses, and they build teams to compensate for them, that have built worldwide reputations for service because of
creating wholes that are equal to or greater than the sum of their their attention to communication include L.L. Bean, Hallmark
parts. Cards and Doll.

The Six essentials of problem-solving Managethejourneys(theplaymaker)


The playmaker focuses on moving from building a
Generatethemindset(theinnovator) community to giving that community a sense of direction and
The innovator ionizes on moving from self doubt to clear priorities by choosing destinations and strategic fostering
innovation by developing potent ideas and attitudes, above an understanding at the stages of any problem-solving journey
all through seeking out alternative points of view. The ability to helps people to set goals, define success and develop effective
do this improves the effectiveness in moving creatively plans. Playmakers take the attitude, knowledge and people
through a problem-solving effort. An innovator's potent brought into play and shape the destinations, direction and
mindset sets the stage for discovery, because the combination of strategies to make the journey a reality. Playmakers such as
commitment and open-mindedness generates the widest Nelson Mandela, Colin Powell and Jack Welch demonstrate the
possible: field of opportunities to consider, power of leadership in directing problem-solving efforts.
Companies like Kleiner, Perkins Venture Capital, McKinsey &
Leading innovators such as Dee Hock founder of VISA Company, and American Airlines have institutionalized that
international, Jeff Bozos of Amazon.com, and John Sealy Brown leadership in a way that has lasted over decades of business
of Xerox PARC epitomize the Innovator's mindset Great success.
companies known for a History of innovation, such as 3M.
IDEO, and Proctor & Gamble, have made it a pervasive art of Createthesolutions(thecreator)
their culture. The creator shows how to move from leadership to power by

PT’s PrepTalk – February 2011 49


achieving full resolution and not on redesign, unplanned
maintenance or changing requirements.

Great performers such as Lou Gerstner in business,


Reinhold Messer in mountain climbing and Isabelle Autissier in
sailing show the character and wisdom it takes to deliver great
performances. Companies like Federal Express and McDonalds
have built empires on the precision and consistency of
performance over time.

MAKING IT HAPPEN
r Master the six problem-solving essentials and the stages of
any problem-solving journey so that you can locate yourself
designing, building, and maintaining optimal solutions. in problem-solving situations and organize your attack on
Creators help to bring the best technology, people and tools the problem
together in complete, flexible solutions that will fit the problem
one is trying to solve. A creator takes the requirements and goals r Diagnose yourself to understand your strengths and
of a playmaker, which define the journey, and works out what it weaknesses and how to compensate for them. Do a tree
will take to get the group where they want to go. When there is diagnostic self-assessment to find out what type of
more innovation and better knowledge, when there are richer problem-solver you are at-www.exolve.com
relationships and better-defined problems, then solution design
is more focused and efficient. r Move in the new direction, and fill the gaps in your
problem-solving team.
Great creators such as Bill Gates and Paul Allen, Steve Jobs,
Steve Wozniak, and Thomas Edison exemplify the passion, Conclusion
talent and will required to build new solutions. Companies such
as Microsoft, Toyota and General Electric have built corporate The new professional economy is placing an increasing
systems and cultures that sustain quality creative ability over premium on the mind, body and soul of the adventurer the
long periods of time. problem-solver–on people who can conceive, organizes, and
lead expeditions that add value to society, business and
Delivertheresults(theperformer) humanity. These problem solvers have an adventurer's blend of
The performer concentrates on moving from power to innocence and wisdom, self-reliance and a willingness to
sustainable advantage through intuitive and disciplined collaborate, professional competence and the capacity to scale
implementation which allows him/her communally to exceed new peaks, as well as the resilience to persevere through
expectations. Performers can help to conquer complexity, uncharted territory.
friction and scale with simplicity, discipline and a competitive
edge. Performers take the goals and strategies of the playmaker And just as in the old economy or the next economy after this
and the solutions of the creator and work to achieve lull one, no amount of buzz, momentum or technology will cover the
resolution of the problem. Innovation, knowledge and well- lack of problem-solving essentials for long. True problem-
developed relationships aid in their efforts. When all the other solving capability is what drives enduring advantage in any field,
roles arc done well, the performer is able to focus completely on at any time, in any place.
=
Facebook
Facebook's user base is constantly growing and now it reaches more than 300 million active Facebook users. With 50 million
mobile users Facebook wants you to stay connected to your friends and family whereever you go. The interesting fact is that
Facebook just recently started making profits (in 2009). Enormous expenses and growing databases pushed Facebook inventors to
re-invent their advertising market. 2009 was the great year for Facebook, even this being the year of greatest recession since 1930's.
We, as users, hope that Facebook will continue working on privacy issues and never share our individual information with
companies and government agencies. Soon we can expect voice chat directly from Facebook.

50 PT’s PrepTalk – February 2011


Brand icon

Wal-Mart Stores Inc.

Fact File
Founders: Sam Walton.
Distinction: Parlayed retailing innovations into worldwide
dominance.
Primary Products: Softgoods, hardgoods, electronics,
groceries..
Numberof employees: 2,100,000.
Majorcompetitors: Costco Wholesale, Kmart, Target.
Chairman: S. Robson Walton;
Chairmanof the ExecutiveCommittee: H. Lee Scott Jr.
CEOand President: Mike Duke
Headquarters: Bentonville, Ark.
Year founded: 1962.
Web site: www.wal-mart.com.
Still, Walton persevered and his vision proved a winner long

O n a crisp fall day in 1983, just about all of the 9,300


residents of Bentonville, Ark., turned out to toast the
neighbors who made good. It was Sam and Helen
Walton Appreciation Day. A rousing parade with bands and floats
before his death in 1992 at age 74. By the turn of the century, his
company was selling everything from sporting goods and
apparel to auto accessories and groceries. Its three types of
stores (traditional discounters, superstores, and membership
was organized to honor the locals who changed the course of warehouses) were omnipresent across the globe, with some
retailing–and the town they called home. Portraits of the couple 4,000 operating in all 50 states and nine countries from Canada
were everywhere. The newspaper printed a special souvenir to China. Along with a fledgling Web site with tremendous
edition. President Reagan phoned to offer congratulations. And potential, the combination solidly cemented Wal-Mart's position
the Waltons happily soaked it all up from a reviewing stand on as the world's number-one retailer.
Main Street, directly across from the site where they opened a
five-and-dime store in 1950. While some critics have blasted it for destroying small mom-
and-pop stores, Wal-Mart has nonetheless done much to benefit
Things, of course, had gone rather well during the ensuing neighbors and employees. And, for better or worse, it has
three decades for Sam Walton and the Wal-Mart discount chain certainly changed the face of retailing.
he later founded from this spot in the Ozarks. He was already
considered the king of retail. And in just two years, Forbes It seems that Samuel Moore Walton always was destined for
magazine would declare him America's richest man. greatness. The son of a farm-mortgage broker, he was the
youngest Eagle Scout ever in his native Missouri. He was also
But the start of Wal-Mart may have caused Walton to wonder president of his high school student council, as well as
whether he had indeed chosen the proper career path. The very quarterback of its state-champion football team. As a young boy
same year he broke ground on his first Wal-Mart Discount City he dreamed of becoming U.S. president, and as a teenager,
in Rogers, Ark., three other major chains–Kmart, Woolco and yearned to seek an M.B.A. from the prestigious Wharton School.
Target–also opened their doors. And when Walton launched his Economic realities got in the way, however, and three days after
second store in nearby Harrison, two truckloads of promotional his 1940 graduation from the University of Missouri, he
watermelons that were spread along the sidewalk exploded accepted a management trainee position at a J.D. Penney store in
ominously in the summer heat. Des Moines, Iowa.

PT’s PrepTalk – February 2011 51


and Dime,” and promoted it with specials, such as a dozen
clothespins for 9 cents. Eager customers came from day one,
and kept coming every day after that.

By 1960, Walton and his younger brother, James L. “Bud”


Walton, owned 15 such stores tallying $1.4 million in total annual
sales. But Mr. Sam, liked them to be the massive discount stores
cropping up in urban areas from coast to coast, which were
selling more types of items at lower prices than any of their
competitors. When one encroached on his Arkansas territory,
Walton knew he had to act. And on July 2, 1962–at the age of
44–he opened Wal-Mart No. 1 in Rogers.

Everyone thought Walton's dream of brining the discount


The work was hard and the salary was just $75 a month. But concept to small rural towns was crazy. He and Helen were
the challenge and potential convinced Walton from the start that forced to co-sign all the loan notes, pledging their home and
business in general–and retailing in particular–was the key to his property as security. But the idea caught on. Within five years he
future. He became even more confident of that when the chain's had 19 such stores including one in his old haunt of Newport
founder, James Cash Penney, dropped in one day and personally (where the landlord's son's Ben Franklin had since closed). By
taught the young man how to tie an appealing package with contrast, Kmart opened in 250 locations during the same period.
minimal twine and paper. The dual lesson of hands-on It steadfastly ignored towns with populations under 50,000,
management and corporate frugality impressed Walton greatly. which gave Wal-Mart free rein to exploit its chosen niche.
These lessons would stay with him for the rest of his life.
Walton focused on utilizing everything that he had learned
Walton left the business world briefly for a stint in the Army. over the past two decades. Each store catered to local tastes and
Upon his release in 1945, he bought a Ben Franklin variety store featured locally made goods. All honored hometown
in Newport, Ark. (He wanted to open in St. Louis, he said later, achievements and supported neighborhood charities.
but Helen wouldn't move to a town with more than 10,000 Employees were called “associates” and offered generous
residents.) Walton quickly became the consummate small-town profit-sharing plans. Shoppers were personally greeted upon
merchant, catering to his neighbors' specific tastes and needs. arrival. Building designs were minimal; product variety was
paramount. And, most importantly, prices were the absolute
At the same time, he began seeking out sources around the lowest they could be. The combination helped Wal-Mart
region who offered these goods at prices lower than his official flourish. And in 1970, it went public.
suppliers. After working in the store all day, he would hitch a
trailer or his car and drive across the state line into Tennessee The subsequent cash influx pushed the company's growth
and Missouri in search of the products desired by his customers. into high gear. It funded a self-contained ordering and
He'd then price them as cheaply as possible and quickly sell out distribution system, which helped serve the increasingly out-of-
his entire inventory. the-way locations that traditional suppliers wouldn't touch. It
also made the founders very rich, but didn't alter their values or
Walton, of course, had discovered the essence of plans one bit. Like his former boss James Cash Penney, Walton
discounting: by cutting prices, sales increased and profits strove to visit every store at least once a year. And even though he
soared. The folks at Ben Franklin didn't like it, but customers bought airplanes to do so (he piloted them himself), he still
certainly did. In less than five years, Walton's store had become a drove around Bentonville in a Ford Pickup. “ Am I supposed to
huge success. His landlord, however, decided that it would make haul my dogs around in, a Rolls–Royce?” he once asked.
a perfect business for his own son. He refused to renew the
store's lease. Walton–who had no place else to move in the tiny By the 1980s, Wal-Mart began implementing a
town–was forced to sell out and start fresh somewhere else. He computerized sales and inventory system that made it even more
settled on the even smaller Bentonville, he noted in his memoirs, efficient. It quickly became the envy of the retail industry.
because it offered access to the hunting seasons in four states. Through it all, Walton remained in close touch with every facet
of his burgeoning operation. He would still don a Wal-Mart cap
Around this time, he had read of two “self-service” discount and name tag and travel from store to store, pumping up
stores in Minnesota, and decided after visiting them that his new associates with his famous cheer (Give me a W… Give me an
Bentonville shop should also feature open merchandise racks A…) and questioning them on prices and sales percentages. If a
with checkout registers at the front. He called it “Walton's Fie competitor opened nearby, he would slip off the cap and name

52 PT’s PrepTalk – February 2011


spirit, in fact, was the bone cancer that eventually felled him less
than one month after President Bush gave him the Presidential
Medal of Freedom. Bush called him “an American original who
embodied the entrepreneurial spirit and epitomized the
American dream.”

David Glass had replaced Walton as CEO four years earlier.


Before accepting his current position as chairman of the
executive committee at the start of 2000, Glass infused the
company with renewed energy by adding hundreds of
supercenters (which combine full-line groceries with the
discount stores). He also expanded the Sam's Club
membership-only warehouse concept initiated in 1983. He
tag and anonymously check it out. Often, he would treat hourly cemented Wal-Mart's position as the number-two company in
employees to lunch. And he once took dozens of donuts to a the Fortune 500 by expanding internationally. It is now the top
distribution center at 2:30 a.m., so he could pick the brains of retailer in Canada and Mexico, as well as the United States.
night workers on the loading dock. Walton was first listed as
America's richest man in 1985. However, he hated the tag so Wal-Mart's impressive success, though, really continues
much that he distributed his billions among family members to because it still closely follows the tenets originally laid out by its
shed it. The only thing that proved beyond his indefatigable legendary founder.
=
BRAZIL STRIKER RONALDO

Career highlights of former Brazil striker Ronaldo, who r His best season came at Barcelona in 1996-97 when he
announced his retirement from soccer in Sao Paulo on scored 47 goals in 49 games. Totalled more than 400 goals in
February 14, 2011. his career with seven clubs having made his debut at
Cruzeiro.
r Born, September 22, 1976 on outskirts of Rio de Janeiro.
r His moves to Barcelona (USD 19.5 million) and Inter Milan
r Together with Zinedine Zidane, he is the only player to have (USD 27.9) were both then world record fees. Real Madrid
won the FIFA World Player of the Year award on three paid 43 million euros (USD 58.26 million) for him in August
occasions (1996, 1997 and 2002). He also won the European 2002.
Footballer of the Year award twice (1997 and 2002).
r Won only one league title in his first season at Real Madrid.
r Won two World Cups (1994, 2002) for Brazil and holds the Never won the European Cup but won the Cup Winners'
record for goals scored in World Cup tournaments with 15. Cup with Barcelona, the UEFA Cup while at Inter and the
Also won the Copa America twice representing Brazil (1997, old Intercontinental Cup with Real Madrid.
1999).
r Married Brazilian female footballer and model Milene
r Won his first cap for Brazil as a 17-year-old and went on to
Domingues in December 1999. The couple had a child,
score 62 goals in 97 international appearances.
Ronald, and were divorced four years later. In 2005, got
engaged to Brazilian model Daniella Cicarelli, marking the
r Suffered a mysterious illness hours before the 1998 World
occasion with a lavish St Valentine's celebration at a French
Cup final in France but after first being named as a
substitute, he was included in the starting lineup. He played chateau. The couple split up three months later.
badly and Brazil lost 3-0 to France.
r Following another knee operation while at AC Milan, he
r Had problems with his knees throughout his career, returned to Brazil and joined Corinthians in 2009 but an
undergoing surgery while at Inter Milan and AC Milan. arrival heralded as key in the team's bid to win South
Spent almost two years out of the game while recovering America's Libertadores Cup for the first time ended in
from surgery after his knee buckled in the Italian Cup final disappointment with only the lesser Copa Brasil and Paulista
against Lazio in April 2000. (Sao Paulo) state titles.

PT’s PrepTalk – February 2011 53


General knowledge
1. MAC in computer terminology stands for 8. Morphology is the study of
(1) Macintosh Advanced Computer (1) the effects of the drug morphine
(2) Menu Added Control (2) shape-shifting life forms
(3) Media Access Control (3) the replication of cells
(4) Microsoft Application Core (4) the physical structure and form of things

2. The ancient Indian text Panchasiddhantika deals with the 5 9. World Population Day is observed on
principles of which among the following? (1) December 12
(1)Vedic Rituals (2) October 8
(2)Philosophy (3) May 21
(3)Astronomy (4) July 11
(4)Medicine
10. Who is known as the father of modern economics?
3. The source of “Satyameva Jayate” is (1) Adam Smith
(1) Bhagavad Gita (2) John Maynard Keynes
(2) Ashoka Pillar (3) Thomas Robert Malthus
(3) Rigveda (4) Karl Marx
(4) Mundaka Upanishad
11. “A Tale of Two Cities” was written by
4. “Ariel” laundry detergents is a product of (1) Willian Shakespeare
(1) Dabur (I) Ltd. (2) Geoffrey Chaucer
(2) Marico Industries Ltd. (3) Charles Dickens
(3) Unilever Ltd. (4) Thomas Jefferson
(4) Procter & Gamble
12. The President is administered the oath of office by
5. Which automobile company launched “Libero”? (1) the Chief Justice of India
(1) Maruti Udyog Ltd. (2) the Prime Minister
(2) Lohia Machines Ltd. (3) the Vice-President of India
(3) Tata Motors Ltd. (4) None of the above
(4) Yamaha Ltd.
13. “Tejas” is a lightweight multirole jet fighter developed by
6. India's permanent station in Antartica is (1) France
(1) Manas Gangotri (2) Russia
(2) Dakshin Gangotri (3) Brazil
(3) Kanchenjunga (4) India
(4) Sagar Kanya
14. The scientist, who discovered that the earth revolves round
7. The Indus Valley houses were built of the sun, was
(1) bamboo (1) Newton
(2) bricks (2) Dalton
(3) wood (3) Copernicus
(4) stone (4) Einstein

54 PT’s PrepTalk – February 2011


15. Who is the 10th Managing Director of the International 22. The current chairman of the Film and Television Institute
Monetary Fund? of India (FTII) is
(1) Rodrigo Rato (1) U. R. Ananthamurthy
(2) Dominique Strauss-Kahn (2) Sharmila Tagore
(3) Santosh Kumar (3) Pankaj Rag
(4) Y. K. Modi (4) Anupam Kher

16. What is the ratio between width and length of the Indian 23. Name the business area in which the French company,
flag? Peugeot is operating
(1) 1 : 2 (2) 2 : 3 (1) Banking
(3) 5 : 7 (4) 4 : 5 (2) Toys
(3) Automobiles
17. Who was the chief guest at the Republic Day Parade in (4) None of these
2011?
(1) Vladimir Putin 24. The McMohan line is the boundary line between which
(2) Indonesian President Susilo Bambang Yudhoyono two countries?
(3) King Abdullah (1) India and Bangladesh
(4) Gordon Brown (2) India and Nepal
(3) India and China
18. At present, Subramanian Ramadorai is the Chairman of (4) India and Pakistan
which body?
(1) Bombay Stock Exchange 25. Who, out of the following rulers, did not embrace
(2) SEBI Buddhism?
(3) State Bank of India (1) Ashoka
(4) National Stock Exchange (2) Harsha
(3) Kanishka
(4) Samudragupta
19. Who, among the following, are appointed by the President
of India?
26. Zaveri Sisters are famous in the field of
I. Governors of states
(1) Manipuri dance
II. The Chief Justice and judges of High Court
(2) Mural painting
III. The Chief Justice and judges of Supreme Court
(3) Classical music
IV. Vice-President
(4) Sculpture
(1) I and II
(2) I, II and III
27. The velocity of light was first measured by
(3) I, III and IV
(1) Einstein
(4) I, III and IV (2) Newton
(3) Romer
20. Who, among the following are appointed by the President of (4) Galileo
India?
I. Chairman, Finance Commission 28. NCERT stands for
II. Deputy Chairman, Planning Commission (1) National Committee of Educational Research and
III. Chief Minister of a Union Territory Training
(1) I only (2) National Council of Educational Research and
(2) I and II Training
(3) I and HI (3) National Council of Education Rural Training
(4) II and III (4) None of the above

21. Bharat Natyam, the classical dance form, comes from the 29. The name of Professor Guru Dutt Sondhi is known behind
state of the foundation of which among the following?
(1) Tamil Nadu (1)Olympic Association of India
(2) Assam (2)Asian Games Federation
(3) Punjab (3)Indian Premier League
(4) Uttaranchal (4)Indian Badminton League

PT’s PrepTalk – February 2011 55


30. With which sports is Pankaj Advani associated? 38. By whose efforts did Buddhism become a global religion?
(1) Gymnastics (1) Bindusara
(2) Football (2) Ashoka
(3) Billiard (3) Harsha
(4) Boxing (4) Kanishka

31. 'Bishop' is the term associated with which sports 39. “Xenophobia” means fear of
(1) Cricket (1) religion
(2) Polo (2) strangers
(3) Chess (3) genetic diseases
(4) Golf (4) opposite sex

32. Which of these has brands like CellOne for its mobile 40. “Straight from the Heart” is the autobiography of
services, Bfone for fixed line telephone and Tarang for (1) Imran Khan
CDMA-based WLL limited mobility phones? (2) Kapil Dev
(1) Reliance Comm (3) Richard Hadlee
(2) MTNL (4) Ian Botham
(3) BSNL
(4) Bharti Airtel 41. The biggest producer of uranium in the world is
(1) France
33. At present, who is the chairman of the State Bank of India (2) India
(3) Canada
(SBI)?
(4) Zaire
(1) S K Bhattacharya
(2) Abhijit Dutta
42. Who benefits the most from inflation?
(3) Bharti Rao
(1) Government pensioners
(4) O P Bhatt
(2) Creditors
(3) Saving bank account holders
34. Which among the following exchanges launched the
(4) Debtors
TASIS SHARIAH 50 Index?
(1)National Stock Exchange
43. Which is the deepest point on the Earth's crust?
(2)Dubai Stock Exchange (1) Mariana Trench
(3)Bombay Stock Exchange (2) Tonga Trench
(4)Singapore Stock Exchange (3) Grand Canyon
(4) None of these
35. Which advertising agency devised the campaign for the
change of brand name Hutch to Vodafone? 44. After the Chauri-Chaura incident Gandhiji called off the
(1) Rediffusion DYR non-cooperation movement because
(2) Ogilvy & Mather (1) The people were fed up with the movement.
(3) J Walter Thompson (2) He did not want the movement to turn violent.
(4) McCann Ericsson (3) He realized that the government had almost crushed
the movement.
36. The Indus Valley Civilization is associated with (4) The masses did not display the desired enthusiasm.
(1) Egyptians
(2) Sumerians 45. The human face has .......... number of bones.
(3) Chinese (1) 10 (2) 4
(4) Mesopotamians (3) 14 (4) 20

37. We can know about early Vedic period from 46. Shivaji was coronated at
(1) Archaeological excavations (1) Raigard
(2) Jatak Katha (2) Aurangabad
(3) The Rig Veda (3) Peshawar
(4) Contemporary culture (4) Bundela

56 PT’s PrepTalk – February 2011


47. Zero tax rate would produce zero revenue and a 100% tax 52. What is the name of the DTH service launched by the
rate would also generate zero revenue, because there would Chennai-based Sun TV Group?
be no incentive to work. This principle is also known as (1) Sun Sky
which among the following? (2) Sun Satellite
(1) Beveridge curve (3) Sun Network
(2) Hubbert curve (4) Sun Direct
(3) Laffer curve
(4) Engel curve 53. Which entertainment channel was in the news for
launching a nationwide contest for India's first space
48. Which among the following kinds of Chemical reactions tourist?
cause the rocks turn red or yellowish? (1) Zee Café
(1) Hydration (2) Zone Reality
(2) Oxidation (3) Bindass
(3) Carbonation (4) Zee
(4) Exfoliation
54. BigStreet is the out-of-home (OOH) advertising venture of
49. Consider the following statements regarding the Capital which company?
Inflows: (1) Reliance, Anil Dhirubhai Ambani Group (ADAG)
1. Current Account flows are permanent while Capital (2) Mudra
Account Flows are reversible (3) Nimbus
2. Current Account flows arise out of transactions in (4) Sahara India
services while Capital account inflows arise out of
transactions in goods. 55. Which is the first magazine from Conde Nast, world's
3. The Government needs to keep a close eye on the leading publisher of lifestyle and fashion magazines, to be
Capital Account flows because they may get reversed. launched in India?
(1) Vogue
(2) Glamour
Which among the above statements is/ are correct?
(3) Condé Nast Traveller
(1) Only 1 & 3
(4) Vanity Fair
(2) Only 2 & 3
(3) Only 1
56. Indian Army Chief Vijaya Kumar Singh was recently
(4) All 1, 2 & 3
conferred honorary rank of General of which among the
following armies?
50. Consider the following statements:
(1) Nepal
1. An Indian Depository Receipt (IDR) declares
(2) Bhutan
ownership of shares of a Foreign Company
(3) Bangladesh
2. An Indian Depository Receipt is essentially traded in (4) Sri Lanka
Indian Rupees.
3. An IDR can be converted into Underlying shares with 57. Which company has signed a memorandum of cooperation
approval of RBI to set up petrol stations at Future Group malls and to
establish Food Bazaars at its petrol pumps?
Which among the above statements is / are correct? (1) IOC
(1) Only 1 & 2 (2) BPCL
(2) Only 2 & 3 (3) HPCL
(3) Only 1 & 3 (4) IBP
(4) All 1, 2 & 3
58. Which company has acquired the polyester and textile
51. Which among the following is the largest oil producer of the manufacturing assets of Malaysia-based Hualon
Organization of the Petroleum Exporting Countries? Corporation?
(1) Saudi Arabia (1) Tata Chemicals
(2) Venezuela (2) Aditya Birla Nuvo
(3) Canada (3) Arvind Mills
(4) Iran (4) Reliance Industries Ltd

PT’s PrepTalk – February 2011 57


59. Which of these owns the Star Bazaar hypermarket brand in 67. Which company has branded its automotive batteries as
India? “Powerzone”?
(1) Trent (1) Standard Furukawa
(2) Future Group (2) Amara Raja
(3) Shopper's Stop (3) Exide Industries
(4) Reliance Retail (4) Tata Autocomp Systems Ltd (TACO)

60. Which company owns the rural retail chain, Hariyali Kisaan 68. To which company does the brand “Baby Dreams” belong?
Bazaar? (1) Wipro Consumer Care
(1) DCM Shriram (2) J L Morison
(2) ITC Agro (3) Hindustan Unilever
(3) Mahindra & Mahindra (4) Johnson & Johnson
(4) Chambal Fertilisers
69. Which famous cosmetics company has launched its Visage
61. Which famous European company was founded by cousins range of products?
of Communist ideologue Karl Marx? (1) L'Oreal
(1) Siemens (2) Oriflame
(2) Philips (3) Maybelline
(3) Bayer (4) Nivea
(4) Volkswagen
70. Which of the following is not a brand owned by Shahnaz
62. Which company owns the “Ambi Pur” brand of air Hussain?
fresheners? (1) Veda Dynamics
(1) Reckitt Benckiser (2) Kaya Skin clinics
(2) Godrej Sara Lee (3) Shahnaz Herbal
(3) Marico Industries (4) Forever Beautiful
(4) Hindustan Unilever
71. Right to Safety, Right to information, Right to Choose,
63. “Air Wick” is the air freshener brand from which company? Right to be heard & Right to Seek Redressal are the
(1) Reckitt Benckiser essential components of which among the following?
(2) Godrej Sara Lee (1) Fundamental Rights in the Constitution of India
(3) Marico Industries (2) The Consumer Protection Act
(4) Hindustan Unilever (3) The Essential Commodities Act
(4) Prevention of Corruption Act
64. How many Gold medals were won by India in 2010 Asian
Games ? 72. During the last 60 years, how many General Elections have
(1) 14 (2) 16 been conducted by the Election Commission of India?
(3) 18 (4) 20 (1) 14 (2) 15
(3) 16 (4) 17
65. Which business family owns the world's oldest active
sailing ship, “The Foundroyant” that started its life in 73. Which company exports marine products under the
Mumbai in 1817? “Shogun”, “Hima”, “Gold Seal” and “Tara” brands?
(1) Wadia (1) Godrej Agro
(2) Tata (2) Nestle India
(3) Godrej (3) Temptation Foods
(4) Bajaj (4) Hindustan Unilever

66. Which company has tied up with lifestyle design company 74. Which company has launched sugar-free Choco Zoo,
Giorgio Armani for designing its portable devices? Bindaaz and Fundoo brands?
(1) Samsung (1) Nestle India
(2) Sony (2) Amul
(3) Nokia (3) Britannia
(4) LG (4) Parry's

58 PT’s PrepTalk – February 2011


75. E L Rothschild Ltd and Del Monte Pacific Ltd are joint 83. Who owns The Trident Hotel brand in India?
venture partners of which corporate group? (1) Eastern India Hotels
(1) Reliance Industries Ltd (2) Tata Group's Indian Hotels
(2) Bharti (3) ITC Hotels
(3) Godrej (4 Park Hotels
(4) AV Birla
84. Who is the Chief Information Officer of the Central
76. Which of the following is not a snack brand owned by Information Commission, which deals with issues related
PepsiCo Company Frito Lay? to the Right to Information Act (RTI)?
(1) Lays (1) S. Gopalswamy
(2) Bingo (2) Wajahat Habibullah
(3) Kurkure (3) A.N. Tiwari
(4) Uncle Chipps (4) Padma Balasubramanian

77. Which retailing company has introduced the snacks brand 85. Which company has launched “Penryn” chips?
“Tasty Treat”? (1) American Micro devices (AMD)
(1) Pantaloon (2) Intel
(2) Reliance Retail (3) Texas Instruments
(3) Subhiksha (4) Samsung
(4) Shopper's Stop
86. Which company has launched its “Barcelona” processor?
78. Which beer giant operates in India through its fully-owned (1) American Micro devices (AMD)
subsidiary, South Asia Breweries? (2) Intel
(1) Carlsberg (3) Texas Instruments
(2) Anheuser-Busch (4) Samsung
(3) Heineken
(4) Scottish & Newcastle 87. Which company has acquired the American PC maker,
Gateway?
79. Approximately what fraction of India's trade by volume is (1) Hewlett Packard
moved by sea? (2) Acer
(1) 70% (2) 80% (3) IBM
(3) 90% (4) 95% (4) BenQ

80. The US-based $26-billion Bunge Ltd owns which cooking 88. Which Indian PC maker has launched a range of
oil brand in India? supercomputers under the brand “Supernova”, in
(1) Dalda association with the US-based Z RESEARCH Inc.?
(2) Dhara (1) HCL
(3) Saffola (2) Zenith
(4) Postman (3) Wipro
(4) Moser Baer
81. Which company owns “Paradiso” that markets luxury
holiday packages for affluent Indians? 89. Which IT company has introduced its social networking
(1) Cox & Kings site called “Mash”?
(2) Captain Cook (1) Microsoft
(3) Club Mahindra (2) Yahoo
(4) Sahara India (3) Google
(4) America Online
82. Ritz Carlton Hotel and Campton Palace acquired by Indian
Hotels in 2007 belong, respectively, to which American 90. Which of these has introduced its personalised e-mail
states? service in India?
(1) Boston, San Francisco (1) Microsoft
(2) New York, Seattle (2) Yahoo
(3) Las Vegas, Washington DC (3) Google
(4) Atlanta, Honolulu (4) America Online

PT’s PrepTalk – February 2011 59


91. Which Japanese company has introduced Robina, the 1.2 99. Which management guru first used the term “strategic
metre tall humanoid robot? architecture” to refer to an organisation's blue print for
(1) Toshiba developing new competencies and capabilities?
(2) Toyota (1) Peter Drucker
(3) Hitachi (2) Alvin Toffler
(4) Honda (3) Tom Peters
(4) Gary Hamel
92. Recently, a commemorative stamp was released by the
Department of Posts in honor of T N Rajarathinam Pillai. 100. In ancient India, the area around which among the
He was world famous exponent of which among the following modern areas was known as "Golden
following instruments? Chersonese" ?
(1) Mridangam (1) Kashmir, Hindukush, Afghanistan
(2) Nadaswaram (2) Malaysia, Thailand, Singapore, Burma
(3) Saraswati veena (3) Australia, New Zealand
(4) Violin (4) Iran, Iraq and Persian Gulf

93. What is the new name of TV 18 Group? 101. Where is the Caparo School of Excellence for
(1) Newsline18 Manufacturing and Material Technology located?
(2) Network18 (1) Ludhiana
(3) Media18 (2) Amritsar
(4) News18 (3) Chandigarh
(4) Jalandhar
94. How many states of India are covered under the National
Horticulture Mission?
102. Which PC peripheral was introduced by Douglas
(1) 18 (2) 20
Ingelbart?
(3) 22 (4) 25
(1) Keyboard
(2) Flat monitor
95. Which Australian Cricketer has signed up to be the brand
(3) Modem
ambassador of the lubricant “Valvoline”?
(4) Mouse
(1) Ricky Ponting
(2) Brett Lee
(3) Adam Gilchrist 103. Which well-known beverage brand, now owned by Coca
(4) Mathew Hayden Cola, was introduced by John M Fox of Florida Food
Corporation in 1945?
96. Which oil marketing company has launched “Aadhaar (1) Fanta
Express” in association with Godrej Aadhaar? (2) Minute Maid
(1) Bharat Petroleum (3) Georgia Coffee
(2) Indian Oil (4) Sprite
(3) Reliance Industries Ltd
(4) Hindustan Petroleum 104. Which university in the UK has conferred an honorary
degree on former President, Dr A. P. J. Abdul Kalam?
97. What does Gokaldas supply to leading global brands? (1) University of Sheffield
(1) Marine food (2) University of Warwick
(2) Apparel (3) Wolverhampton University
(3) Cosmetics (4) Lancaster University
(4) Toys
105. Which bank, in association with the RBI, has introduced
98. Which district in Gujarat is to be bifurcated to create an all- “Raju and the Money Tree”, a comic book about the basics
tribal district? of banking?
(1) Surat (1) ICICI Bank
(2) Vadodara (2) State Bank of India
(3) Ahmedabad (3) IDBI Bank
(4) Dahod (4) Bank of Baroda

60 PT’s PrepTalk – February 2011


106. What is the trade name of polytetrafluoroethylene? 114. “Chandragiri” is a variety of which cash crop?
(1) Nylon (1) Silk
(2) Teflon (2) Coffee
(3) Rayon (3) Pepper
(4) Rexene (4) Rubber

107. Which mission marked an attempt by the British 115. Where are the headquarters of "Organization for Security
government to secure Indian cooperation and support for and Co-operation in Europe"?
their efforts in World War II? (1) Paris
(1) Rowlett Act (2) Astana
(2) Cripps Mission (3) Vienna
(3) Wavell Plan (4) Auckland
(4) Cabinet Mission Plan
116. The World Military Cup organized by the International
108. Which company owns the Bravia brand of LCD TVs? Military Sports Council (CISM) involves which among the
(1) Sony (2) LG following sports?
(3) Samsung (4) Philips (1) Cricket
(2) Football
109. Mahabalipuram in Tamil Nadu showcases the architecture (3) Volleyball
of which dynasty? (4) Basket Ball
(1) Pallava
(2) Chola 117. Which of the following facts about the Yangtze River in
(3) Chalukya China is/are true?
(4) Rashtrakuta
I. It is the longest river in Asia
II. It is the second longest in the world, after the Nile in
110. Which institution publishes the World Investment Report
Africa
every year?
III. It flows from its source in Qinghai Province and
(1) World Trade Organization (WTO)
drains into East China Sea
(2) International Monetary Fund (IMF)
(3) United Nations Conference on Trade and
(1) I, II and III
Development (UNCTAD)
(2) I and II only
(4) World Bank
(3) II and III only
(4) I and III only
111. Which economist became the first Indian to be awarded
Brazil's highest civilian honour, “Commander of the Order
of the Southern Cross” for pioneering VAT in Brazil? 118. Which company is setting up a 4000 MW Ultra Mega Power
(1) Parthasarathi Shome Project at Sasun in Sidhi District of Madhya Pradesh?
(2) C Rangarajan (1) GMR Infrastructure
(3) Vijay Kelkar (2) Reliance Power
(4) Ashok Lahiri (3) Tata Power
(4) NTPC
112. Who is Zahi Hawass?
(1) Novelist 119. The Lumière brothers were pioneers in which industry?
(2) Zoologist (1) Automobile
(3) Archaeologist (2) Motion pictures
(4) Journalist (3) Printing and publishing
(4) Aviation
113. In Financial Language, Fixed to Floating and Floating to
Floating are used in context with which among the 120. Indian Petrochemicals Ltd is a subsidiary of which
following? company?
(1) Interest rates (1) Reliance Industries Ltd
(2) Swaps (2) Indian Oil Company
(3) Foreign Exchange Rates (3) Essar Oil
(4) None of them (4) Bharat Petroleum

PT’s PrepTalk – February 2011 61


121. Who among the following former Prime Ministers of India, 129. Which South India based business family had set up FACT
never remained a Chief minister of Indian state? (Fertilisers and Chemicals Travancore Ltd) in 1940s and is
(1) Morar Ji Desai now a leader among fertiliser companies in India?
(2) Chandra Shekhar (1) Murugappas
(3) V P Singh (2) Seshasayees
(4) P V Narsimharao (3) Chettiars
(4) Iyengars
122. Which popular brand of vegetable oil is marketed by Amrit
Corp Ltd? 130. In which of the following years, did the first commercial
(1) Gagan civil aviation flight take place in India between Allahabad
(2) Postman and Naini?
(3) Dalda (1) 1910
(4) Dhara (2) 1911
(3) 1915
123. Which leading beer company has acquired Kolkata-based (4) 1921
Parag Breweries through its India investment vehicle,
South Asia Breweries? 131. Which is the wrong pairing of a famous brand name and an
(1) Carlsberg apparel range for women?
(2) Heineken (1) Allen Solly–Allen Solly Women's Wear
(3) SABMiller (2) Color Plus–Color Plus Woman
(4) Foster (3) John Players–John Players Women's Wear
(4) Park Avenue–Park Avenue Woman
124. Which is the brand introduced by the Sweden-based direct
selling cosmetics company in India? 132. Which MNC cement company holds controlling stakes in
(1) Oriflame ACC and Ambuja Cement–two of the three largest cement
(2) Amway companies in India?
(3) Avon (1) Holcim
(4) Mary Kay (2) Lafarge
(3) Holdersbank
125. The National Highways in India cover which among the (4) Cemex
following fractions of India's total Road Network?
(1) 1.7% (2) 2.7% 133. Which corporate group set up National Organic Chemical
(3) 3.7% (4) 5.7% Industries (NOCIL) and Polyolefins Industries Ltd (PIL)
with American and German collaboration, respectively, in
126. Which company has launched its Superia range of natural the 1960s?
soaps and shampoos? (1) Wadia
(1) ITC (2) Mafatlal
(2) Godrej Soaps (3) GD Birla
(3) Wipro Consumer Care (4) Ramnath Goenka
(4) Marico
134. Which European country holds sovereignty over
127. Where in Tamil Nadu is Lord Swraj Paul's 125-acre Caparo Greenland?
industrial complex located? (1) Canada
(1) Sriperumbudur (2) Norway
(2) Kanchipuram (3) Denmark
(3) Chidambaram (4) Sweden
(4) Pudukkottai
135. Which was the first Indian company to list at the New York
128. Which company owns the mineral water brand “Oxyrich”? Stock Exchange (NYSE) in 1999?
(1) Manikchand (1) Reliance
(2) Mount Everest Mineral Water (2) TISCO
(3) T-Series (3) Bajaj Auto
(4) Bisleri (4) Larsen and Toubro

62 PT’s PrepTalk – February 2011


136. Which well-known financial publication is owned by media 144. Which founder of a large South India based industrial
group Pearson? group started off as a distributor of imported cars in 1920s
(1) The Financial Times and acquired the sole selling agency of US automobile
(2) Wall Street Journal giant, General Motors, in 1930?
(3) BusinessWeek (1) TV Sundaram Iyengar
(4) The Economist (2) M A Chidambaram
(3) S. Anantharamakrishnan
137. What is the Millennium Express? (4) A M Murugappa Chettiar
(1) A subsidiary of Air India for Gulf routes
(2) India's first high speed maglev train 145. Which of the following is not a brand name of Matsushita
(3) A cargo service started by Shipping Corporation of Electronic Corporation?
India (1) Panasonic (2) Olympus
(4) India's first privately-owned train (3) National (4) Technics

138. IndiaSoftware Labs (ISL) is the R&D unit of which 146. When the Central Bank feels that the asset prices in the
company in India? country are near a bubble situation, it will most probably
(1) IBM take which of the following steps?
(2) Intel (1) Inject liquidity in the system by conducting Open
(3) Microsoft Market Operations
(4) Media Lab Asia (2) Extract liquidity from the system by buying out
rupees
139. The cigarette brands “Chancellor”, “Panama”, “Style” and (3) Inform the Government to tone down the market
“Flair” belong to which company? borrowings
(1) Golden Tobacco India (4) All of above measures will be taken
(2) Godfrey Philips India
(3) Vazir Sultan Tobacco 147. In the Budget session, which among the following is known
(4) Indian Tobacco Company as 'guillotine'?
(1) General discussion on the Budget
140. Where is the headquarters of the Pakistan army located? (2) The speaker puts all the outstanding demands to vote
(1) Quetta (3) The opposition expresses desire to bring a cut
(2) Islamabad motion
(3) Rawalpindi (4) The demand for grants are cut by Re. 1
(4) Lahore
148. Consider the following statements about a well known
141. What is the name of the first tri services Joint exercise of Economist:
Indian Armed Forces conducted in 2009? 1. He is the winner of Nobel Memorial Prize in Economics for
(1) TIRANGA I developing the New Trade Theory and New Economic
(2) SANGAM Geography.
(3) AKASHGANGA 2. He has been a vehement critic of US Economic policies,
(4) MADAD II repeatedly criticized the Bush tax cuts
3. He appeared in a 2010 comedy film "Get Him to the Greek"
142. Maximum Jute mills are located in which of the following
states? Identify this famous personality:
(1) West Bengal (1) Paul Krugman
(2) Assam (2) Joseph Stiglitz
(3) Andhra Pradesh (3) Peter A. Diamond
(4) Uttar Pradesh (4) Thomas Schelling

143. Which were the first products manufactured by the then 149. Which among the following is the 2010 Word of the Year by
Tata Engineering and Locomotive Company (TELCO)? American Dialect Society?
(1) Wagons and boilers (1) Tweet
(2) Locomotives (2) Spillion
(3) Automobile spare parts (3) App
(4) Tractors and trucks (4) Google

PT’s PrepTalk – February 2011 63


150. Consider the following statements: 152. Indian Navy and which among the following Navies have
1. Companies use the Sweat Equity for retaining best regularlyconductedjointexercisesnamed'INDRA'since2003?
employees (1) Russian
2. The sweat equity issued during a year should not exceed (2) UK
15% of the total paid-up capital of the company or a value of (3) US
Rs. 5 crore, whichever is higher. (4) Australia
3. To issue sweat equity above this level, the approval from the
Central Government is required 153. Whose name is associated with the Muslim communalism
which helped the British Government to follow the policy
Which among the above statements is / are correct? of 'Divide and Rule'?
(1) 1 & 2 (1) Sayyid Ahmed Khan
(2) 1, 2 & 3 (2) Rammutullah Muhammed Sayani
(3) 2 & 3 (3) Badrudin Tyabji
(4) 1 & 3 (4) None of the above

151. Which among the following is the correct order of 154. The Union Cabinet has recently approved declaration of
decreasing agricultural sector contribution in the GDP of which among the following dates to be celebrated every
the IBSA countries? year as the "National Voters' Day"?
(1) India, Brazil, South Africa (1) 24 January
(2) India , South Africa, Brazil (2) 25 January
(3) Brazil, India, South Africa (3) 27 January
(4) South Africa, Brazil , India (4) 28 January
=
Answers to General knowledge
1. Ans.(3) 26. Ans.(1) 51. Ans.(1) 77. Ans.(1) 103. Ans.(2) 129. Ans.(2)
2. Ans.(3) 27. Ans.(2) 52. Ans.(4) 78. Ans.(1) 104. Ans.(3) 130. Ans.(2)
3. Ans.(4) 28. Ans.(2) 53. Ans.(3) 79. Ans.(4) 105. Ans.(1) 131. Ans.(3)
4. Ans.(4) 29. Ans.(2) 54. Ans.(1) 80. Ans.(1) 106. Ans.(2) 132. Ans.(1)
5. Ans.(4) 30. Ans.(3) 55. Ans.(1) 81. Ans.(4) 107. Ans.(2) 133. Ans.(2)
6. Ans.(2) 31. Ans.(3) 56. Ans.(1) 82. Ans.(1) 108. Ans.(1) 134. Ans.(3)
7. Ans.(2) 32. Ans.(3) 57. Ans.(1) 83. Ans.(1) 109. Ans.(1) 135. Ans.(1)
8. Ans.(4) 33. Ans.(4) 58. Ans.(4) 84. Ans.(2) 110. Ans.(3) 136. Ans.(1)
9. Ans.(4) 34. Ans.(3) 59. Ans.(1) 85. Ans.(2) 111. Ans.(1) 137. Ans.(4)
60. Ans.(1) 86. Ans.(1) 112. Ans.(3) 138. Ans.(1)
10. Ans.(1) 35. Ans.(2)
61. Ans.(2) 87. Ans.(2) 113. Ans.(2) 139. Ans.(1)
11. Ans.(3) 36. Ans.(2)
62. Ans.(2) 88. Ans.(3) 114. Ans.(2) 140. Ans.(3)
12. Ans.(1) 37. Ans.(3)
63. Ans.(1) 89. Ans.(2) 115. Ans.(3) 141. Ans.(4)
13. Ans.(4) 38. Ans.(2)
64. Ans.(1) 90. Ans.(1) 116. Ans.(2) 142. Ans.(1)
14. Ans.(3) 39. Ans.(2) 143. Ans.(1)
65. Ans.(1) 91. Ans.(1) 117. Ans.(4)
15. Ans.(2) 40. Ans.(2) 144. Ans.(1)
66. Ans.(4) 92. Ans.(2) 118. Ans.(2)
16. Ans.(2) 41. Ans.(3) 67. Ans.(2) 93. Ans.(2) 119. Ans.(2) 145. Ans.(2)
17. Ans.(2) 42. Ans.(2) 68. Ans.(2) 94. Ans.(1) 120. Ans.(1) 146. Ans.(2)
18. Ans.(1) 43. Ans.(1) 69. Ans.(4) 95. Ans.(1) 121. Ans.(2) 147. Ans.(2)
19. Ans.(2) 44. Ans.(2) 70. Ans.(2) 96. Ans.(1) 122. Ans.(1) 148. Ans.(1)
20. Ans.(2) 45. Ans.(3) 71. Ans.(2) 97. Ans.(2) 123. Ans.(3) 149. Ans.(3)
21. Ans.(1) 46. Ans.(1) 72. Ans.(2) 98. Ans.(1) 124. Ans.(1) 150. Ans.(2)
22. Ans.(1) 47. Ans.(3) 73. Ans.(4) 99. Ans.(4) 125. Ans.(1) 151. Ans.(1)
23. Ans.(3) 48. Ans.(2) 74. Ans.(2) 100. Ans.(2) 126. Ans.(3) 152. Ans.(1)
24. Ans.(3) 49. Ans.(1) 75. Ans.(2) 101. Ans.(4) 127. Ans.(3) 153. Ans.(1)
25. Ans.(4) 50. Ans.(4) 76. Ans.(2) 102. Ans.(4) 128. Ans.(1) 154. Ans.(2)

64 PT’s PrepTalk – February 2011


Profile

Pandit Bhimsen Joshi

P andit Bhimsen Joshi, who holds a legendary status in


Indian Classical music, was born in Gadag (Karnataka)
on 4 February 1922. His unique style and mastery over
ragas has made him unparallel to any other vocalist in the
country.
Big Breaks & Achievements:
Bhimsen Joshi first performed live
at the age 19. His debut album,
containing a few devotional songs in
Kannada and Hindi, was released
when he was 20. Joshi has added his
A conservative schoolmaster's son, Bhimsen Joshi had a own distinctive style excelling in
passion for music even from his early childhood. The little boy, gamakar, meend and tanakriya and
deeply moved by a recording of Abdul Karim Khan, the founder adapting characteristics from other
father of the ' Kirana gharana', was later destined to become an gharanas to create a unique vocal
accomplished jewel of the gharana. He left home in 1932 and was idiom.
on the move for the next two years in search of a guru. He
travelled to Bijapur, Pune, Gwalior where he tutored under He has started an annual
Ustad Hafiz Ali Khan, the well-known sarodiya and father of classical musical festival called the Sawai Gandharva Music
Ustad Amjad Ali Khan, then to Calcutta, Punjab and back home, Festival in the memory of his guru. This festival is held in Pune
only to goad his father into sending him to Sawai Gandharva for every December.
training.
Three documentaries: There are three documentaries on
In 1936, Joshi started his rigorous training under Sawai him. The first was in 1965 by M Louis, a Dutch film producer
Gandharva (Pandit Rambhan Kundgolkar), the eminent Khyal who was deeply intrigued by Panditji after hearing him. He came
singer student of Abdul Karim Khan at Kundgol, near Gadag. to India and made a film that was shown all over in the West. The
The maestro taught him the basics of Khayal singing. The second documentary, called Raga Miyan Malhar', was made by
tutoring, spanning several years, honed his inborn talent and Canadian businessman James Beveridge. It portrays the
helped him attain his mastery over ragas. maestro singing just raga Miyan Malhar.

Joshi's rendition of 'Mile Sur Tumhara' along with other The third is a conventional 45-minute documentary shot in
doyens of music–Balmurli Krishna and Lata Mangheskhar– 1993 by noted poet Gulzar, which bagged the national award.
virtually became an unofficial national anthem in a humble way
in 1988, and captured the hearts of millions of Indians. Louis Panditji has sung on occasions of national importance. He,
Banks and the late P Vaidyanathan, a classically trained along with Lata Mangeshkar, performed at Parliament house on
musician, got the right fusion of music for the song that was the 50th anniversary of India's independence.
beamed on Doordarshan to countless homes.
Awards and accolades:
Rise to fame: Joshi’s meeting with vocalist Begum Akhtar There have been many awards. The nation's highest civilian
fetched him a job as a staff artiste at Lucknow radio station award Bharat Ratna was conferred on him in 2008, Padma Shri in
where he became friends with shehnai player Ustad Bismillah 1972, Padma Bhushan in 1985 and Padma Vibhushan in 1999.
Khan. In 1943, he moved to Mumbai, but his real break came in The Maharashtra government honoured him with the
1946 at a concert to mark the 60th birthday of Sawai Gandharva. Maharashtra Bhushan in 2002. In between, he also received the
His guru and the audience appreciated the performance. Sangeet Natak Akademi award in 1975 and was made a fellow in
1998. The Madhya Pradesh government awarded him the
Bhimsen started as a recording artiste in 1944 with HMV Tansen Sanman award in 1992. The Karnataka Rathna was
when the company released two Hindi and two devotional songs presented to him in September 2005. His voice opened the short
in Kannada. He recorded prolifically for the company and in film on national integration ‘Mile Sur Mera Tumhara’ and the
1984 became the first Hindustani vocalist to win a platinum disc. second film on Des raga also became equally popular.
a
PT’s PrepTalk – February 2011 65
Business trivia
r Volkswagen's Bugatti, costing r Krishna Poonia won India's first
upwards of Rs 16 crore, is Commonwealth Games athletics
India's most expensive car. gold, in 2010 Games, after Milkha
Singh in 1958.
r From January 1, 2011, India
extended “visa on arrival” r T h e R a i l C o a c h f a c t o r y,
facility to nationals of Kapurthala, has rolled out India's
Cambodia, Vietnam, Philippines and Laos. first AC double-decker rake from its
premises. The first AC double-decker train has been
r The Union government has okayed two new naval bases on introduced between Howrah (West Bengal) and
the eastern coast of India, at Paradip (Orissa) and Dhanbad (Jharkhand).
Tuticorin (Tamil Nadu).
r Finance Minister of India, Pranab Mukherjee has won
r The International Cricket Council (ICC) and Castrol, 2010 Finance Minister of the Year for Asia award,
the world's leading lubricant company, have announced an conferred by Emerging Markets, part of Euromoney
agreement that makes Castrol the official performance Institutional Investor Plc.
partner of ICC, with a unique presence at all ICC cricket
events for the next five years. r World Mental Health Day is observed on October 10.

r The Securities and Exchange Board of India (SEBI) r Three Indian women–all from the corporate sector–find a
spot on the Forbes list of 100 most powerful women in the
has raised the application limit for retail investors to Rs 2
world, topped by US First Lady Michelle Obama. Chennai-
lakh, from Rs one lakh.
born PepsiCo CEO Indra Nooyi came in at No 6, while
Axis Bank CEO Shikha Sharma and ICICI Bank
r The International Renewable Energy Conference was held
Managing Director & CEO Chanda Kochhar were
in New Delhi in October 2010.
ranked 89th and 92nd, respectively. Surprisingly missing
from 2010 list is Congress President Sonia Gandhi. She
r India became a sectoral dialogue partner with ASEAN in came in at No 13 in 2009.
1992. It became a full dialogue partner in 1995. India and
ASEAN have been holding annual summits since 2002. r Beijing Olympic gold medallist Abhinav Bindra led the
The 8th India-ASEAN Summit was held in Hanoi, 619-strong Indian contingent in the opening ceremony of
Vietnam on October 29, 2010. the Commonwealth Games, 2010.

r Bharat Diamond Bourse in Mumbai is said to be the r A high-speed train in China has set a new world speed
world's largest bourse, with all the essential record during a trial run. The train hit a maximum of 416.6
facilities–cutting, polishing, trading, banking and km per hour on its journey between Shanghai and
customs–under single roof. Hangzhou. The train is designed to run at a speed of 350
km per hour.
r World Standards Day and World Sight Day are
observed on October 14. r Amir Khan's “Peepli Live”, a satire on media's
trivialisation of farmers' suicide, has been selected as
r “Conversations with Myself ” has been written by India's official entry at the 2011 Oscars, in the Best Film
former South African President Nelson Mandela. category.

66 PT’s PrepTalk – February 2011


r The Union Cabinet has approved r India's first agri-biotechnology institute,
the National Identification the National Agri Food Biotechnology
Authority of India Bill, 2010, Institute (NABI) is being set up in
which envisages making UIDAI a Mohali, near Chandigarh.
statutory body.
r Rajkot People's Cooperative Bank
r Fi n a n c e M i n i s t e r Pr a n a b does not offer any job to people who smoke cigarette or
Mukherjee launched the Swavalamban Scheme of Life eat gutkha. Even the customers with the habits have to pay
Insurance Corporation (LIC) on September 25, 2010. higher interest on loans.
The scheme seeks to provide pension scheme to the un-
organised sector. Under the scheme, the Central r Reliance Industries has been ranked second in the list of
government will contribute Rs 1,000 per year to each world's 10 biggest 'sustainable value creators'–
National Pension Scheme (NPS) account opened in year companies that have been successful in creating the most
2010-11 and for the next three years, till 2013-14. shareholder value over the last decade–prepared by Boston
Consulting Group. Brazil-based mining and materials
r The UN Summit on the Millennium Development giant Vale has been ranked the top value creator.
Goals, or MDGs, was held in September 2010 at UN
Headquarters in New York, USA. r “A Journey” is a memoir written by former British Prime
Minister Tony Blair.
r Chowmhalla Palace in Hyderabad, spectacular 18th
century monument, has been selected for the Heritage r The N.C. Saxena Committee was set up by the Ministry
“Award of Merit” by the UNESCO, for cultural heritage of Environment and Forests. It details the manner in which
conservation for 2010. laws were flagrantly flouted to facilitate the Vedanta
Alumina Ltd project in Orissa. The project is
r The Business Standard Best Business Schools Survey aggressively opposed by the local tribal groups.
2010 shows that India's top business schools are: Indian
Institutes of Management in Ahmedabad and Kolkata, r India remained the largest recipient of World Bank loans
Indian Institute of Foreign Trade in New Delhi, Institute of in 2009-10. The World Bank, through its lending arms
Management Technology at Ghaziabad, Management IBRD and IDA, committed $9.3 billion in financial
Development Institute at Gurgaon, National Institute of assistance to India in 2009-10, more than the aid
Industrial Engineering in Mumbai and XLRI Jamshedpur. committed by the US and European Union. Next in line
were South Africa ($3.8 billion), Brazil ($3.7 billion) and
r The Employee Provident Fund trustees have decided to Turkey ($3.0 billion).
raise the interest for 2010-11 to 9.5 percent.
r Airtel has bagged the title sponsorship rights for the India
r The World Tiger Summit was held in September 2010 in cricket team's home games for two-and-half years, at a cost
St. Petersburg, Russia. of Rs 3.33 crore per match.

r The six living species of Tigers are: Amur, Bengal, r The 2010 Academic Ranking of World Universities has
Indochinese, Malayan, South China and Sumatran. The ranked Harvard University as the top University of the
Bali, Caspian and Javan tigers have become extinct. world for the eighth year in the annual ranking. Harvard is
followed by University of Cambridge, Yale University,
r Navodaya Vidyalayas celebrated 25 years of existence in University College London (UCL), Imperial College
2010. A befitting match to costly private schools, the London, University of Oxford, University of Chicago,
Navodayas have shown in last 25 years how gifted children Princeton University, Massachusetts Institute of
with humble means can rise to life. Technology (MIT) and California Institute of Technology.

r India has replaced the US as the second most important r As per the Quacquarelli Symonds (QS) World
Foreign Direct Investment (FDI) destination for trans- University rankings, Cambridge University, UK, is the
national corporations, according to a survey conducted by top university of the world, followed by Harvard University,
UNCTAD. Global FDI flows are expected to jump from USA, Yale University, US, University College London
$1.2 trillion in 2010 to $1.5 trillion in 2011 and $1.6-2.0 (UCL), UK, and Massachusetts Institute of Technology,
trillion in 2012. USA, in that order.
a
PT’s PrepTalk – February 2011 67
Logo Story

Adidas
Being the largest sportswear manufacture in Europe as well ShapeofAdidaslogo:
as the second largest all over the world, Adidas Company not Adidas logo comprises three
only specializes in sportswear but also in bags, shoes, shirts, parallel lines symbolizing the
clothing and other sports related areas. Adidas logo, outstanding athletic performance,
representing the durability and elegance, is a three parallel reaching out to the goals of
striped design that symbolizes the mountain, which is to point excellence amidst the challenges to
towards the goals and challenges that lie ahead. Adi Dassler, come. It portrays the strong picture
together with his brother Rudolf Dassler, created the Adidas of the Adidas corporate well being.
logo, aiming to provide the athletes with the finest possible gear.
ColoroftheAdidaslogo:
Started off as a three striped motif in Black color of the Adidas logo comes as an inspirational
1967, Adidas logo was imprinted on shoes motif to the youth importantly involved in sports and athletic
only. Following its success, in 1971 it activities, reviving their spirits and bringing upon a striking
changed to a Trefoil logo. Later on, it youth culture.
merged with Salomon, which formulated
the Adidas logo to a combination signifying FontoftheAdidaslogo:
both the designs; blue color for Adidas and Like the design itself, the font of the Adidas logo remains
red denoting Salomon. Sequentially, the simple, nevertheless catchy and prominent, with its plain style.
Adidas logo in 2005 changed itself to a “World mark”, remaining As it is said “The simpler, the better,” Adidas continues to follow
simple, confident and clear. the ritual by maintaining the simple yet innovative design.

DesignelementsofAdidaslogo: Despite the changes it has gone through, Adidas logo still
Adidas logo holds an influential position imposing an remains to be the design known for motivating all groups of
impression of sophistication and durability through its simple young. So far, it has achieved nearly all the goals that the founder
yet impressive design. had dreamt of, but still carries on towards its road of triumph.
=
r Sports brand Adidas was originally founded in1949 by Adi Dassler who began designing sports-orientated shoes, which
were aimed to be stylish yet practical and functional.

r We all recognise Adidas as the label with three stripes and Dassler decided to brand his products with this design because
it was simple and unusual at the time. This proved to be very effective and allows all Adidas products to be immediately
recognisable.

r The president of Adidas today is Eric Stamminger who feels that the success of the Adidas brand is largely due to
Dassler’s genuine passion for sport that enabled him to create a product that other athletes or aspiring athletes would
benefit from. He was also the first person to think of such an innovative idea and product.

r Adidas has recently celebrated its 61th birthday and decades on, the brand maintains its simplistic styling and original
core values which its customers recognise and therefore often stick with Adidas for a number of years.

r It has become a highly recognisable lifestylebrand and the product lines have extended to clothing and accessories.

68 PT’s PrepTalk – February 2011


Profile

Jairam Ramesh
J airam Ramesh is the Indian Minister of State
(Independent Charge) for Environment and
Forests and a Member of the Indian Parliament
from Andhra Pradesh in the Rajya Sabha.
reorganizing the CSIR in 1986 and for analyzing
energy policy during 1983-85. The present central
government invited him to join the official delegation
to the WTO meeting in Seattle in 1999.

He was born on 9 April 1954 at Chikmagalur in Ramesh has performed multiple roles that
Karnataka. He married K. R. Jayashree in 1981 and include a brief assignment at the World Bank in 1978,
has two sons, Anirudh and Pradyumna. From 2004 to two stints as an adviser in the Planning Commission,
2009, he was the Minister of State for Commerce and an officer on special duty during the National Front
Industry as well as the Minister of State for Power in the administration of the V.P. Singh government and as an official in
Congress Party-led United Progressive Alliance (UPA) the finance ministry headed by Manmohan Singh in the 1990s.
government.
As an environment minister, the suave 56-year-old
He studied public management at Carnegie Mellon technocrat-turned-politician has pitchforked a low-key ministry
University during 1975-77. He thereafter spent a year at the into front-page headlines. Be it mega projects like Vedanta and
Massachusetts Institute of Technology (MIT) studying Posco, the Navi Mumbai airport, GM foods or tortuous climate
technology policy, economics, engineering and management as change negotiations, Ramesh, India's chief climate change
part of the newly-established inter-disciplinary technology negotiator, has an uncanny ability to be in the limelight.
policy programme. His undergraduate degree is in mechanical
engineering from the Indian Institute of Technology (IIT), He has authored a number of key government reports in
Mumbai in 1975. In 2001, IIT Mumbai presented him with the areas as diverse as energy, technology, capital goods, industrial
Distinguished Alumnus Award. policy and telecom. He was a key player in the team that
formulated and implemented India's economic reforms in 1991
He is also a member of the National Advisory Council that is and 1997. He serves on the boards of a number of public
chaired by Smt. Sonia Gandhi. He helped put together the institutions in India and abroad. He has been a founding
National Common Minimum Programme of the United member of the Indian School of Business promoted by
Progressive Alliance (UPA) that came to power in May 2004. McKinsey in Hyderabad and is a member of the International
Earlier, he was part of the Congress election strategy team for Council of the New York-based Asia Society.
the 2004 Lok Sabha elections.
He has been a columnist under the pen-name Kautilya in
He was former secretary in the AICC, formerly deputy The Times of India and is the author of the book 'Making Sense
chairman Karnataka Planning Board (2000-2002), formerly of Chindia'. He has also anchored a number of popular television
member of the Rajasthan Development Council (1999-2003), programmes on business and the economy including Business
formerly Economic Advisor to the government of Chattisgarh Breakfast and Crossfire.
(2001-03).
Ramesh made headlines when he discarded the idea of the
Jairam has earlier been Advisor to the Finance Minister inter-linking of rivers in October 2009. His visit to Bhopal in
during 1996-98, Advisor to the Deputy Chairman, Planning September last year put the spotlight on the toxic waste lying
Commission 1992-94 and Advisor to the Prime Minister 1991. there since the 1984 Union Carbide plant gas leak. Later in April
He has served in the Planning Commission, Ministry of 2010, he announced the setting up of the first National Green
Industry and other economic departments of the Central Tribunal in Bhopal.
government. He has been entrusted with numerous special
assignments like, for example in J&K during 1993-95, for Whatever critics may say, Ramesh, say insiders, is just the
reorganizing India's international trade agencies in 1990 and for kind of environment minister India needed when climate
implementing the technology missions during 1987-89, for change has climbed to the top of the global agenda.
a
PT’s PrepTalk – February 2011 69
Cricket World Cup Trivia
r Breaking Sanath Jayasuriya's record,
Mahela Jayawardene hit the fastest
century for Sri Lanka in the World
Cup, off 80 balls, against Canada at
Hambantota.

r Young middle-order batsman Virat


Kohli became the first Indian to score
a century in a World Cup debut match
as he hit an unbeaten 100 against
Bangladesh.

r Virender Sehwag's 175-run knock in


the World Cup opener is the highest by
an Indian batsman against Bangladesh
in ODIs, surpassing Sourav Ganguly's r India last defeated Australia in a World Cup match 24
135 not out off 124 balls at Dhaka on May 30, 2000. years ago on October 22, 1987. India trumped eventual
champions Australia by 56 runs.
r Kenya's score of 69 against New Zealand in the 2011
World Cup Group A match at MA Chidambaram Stadium r West Indies legend Vivian Richards is the only player
was their lowest total ever in the tournament. Canada who had played both FIFA World Cup and ICC World
holds the World Cup record of 36 against Sri Lanka in 2003. Cup. Richards represented Antigua in football and West
Indies in cricket.
r The only time they have faced each other in a World Cup
match before 2011, Bangladesh caused one of the biggest r Indian opener Sunil Gavaskar batted through the full 60
upsets in 2007 by defeating India and being instrumental in overs in the opening match of 1975 World Cup against
their early elimination. England at Lord's to score just 36 runs.

r Brett Lee has taken 22 wickets in 10 World Cup matches at r One of the greatest knocks in World Cup history, Kapil
an average of 17.91. He has claimed a wicket every 22.68 Dev's 175 against Zimbabwe during 1983 World Cup, was
balls, or once every fourth over, a strike-rate unmatched by neither recorded nor broadcasted because the BBC
any bowler. cameramen were on strike at the time.

r West Indies batting great Vivian Richards scored 1013 r Kepler Wessels played for Australia in the 1983 World
runs in 23 World Cup innings, at an average of 63.31, with a Cup before playing for South Africa in the 1992 World Cup.
strike rate of 85. The 138 he scored against England in the
1979 World Cup is considered by Wisden as the best World r India's Madan Lal bowled the first ball of the World Cup
Cup innings. history to England's Denis Amiss at Lord's on June 7, 1975.

r Herschelle Gibbs smashed the Dutch leg-spinner Dan r Australia is the only team thus far in the history of World
van Bunge for six sixes in an over in the 2007 World Cup Cup to remain undefeated throughout the World Cup (in
to become the first to achieve the feat in an ODI. both 2003 and 2007 World Cups).

70 PT’s PrepTalk – February 2011


r Australian seamer Glenn McGrath (71) is the highest
wicket-taker in World Cups so far.

r The 1992 World Cup co-hosted by Australia and New


Zealand was the first World Cup where matches were
played under lights.

r The 1992 World Cup co-hosted by Australia and New


Zealand was the first World Cup in which white cricket
balls and coloured team uniforms were introduced.

r Australia is the only country to win three consecutive


r Sunil Gavaskar's only ODI century came off 85 balls and
World Cup titles. Aussies have won the tournament in
it came in the same match in which Chetan Sharma took
1999, 2003 and 2007.
the World Cup's first hat-trick.
r All players had worn the traditional white uniform and
r Chetan Sharma took the World Cup's first hat-trick. He
red balls were used during the initial four editions of the
achieved the feat against New Zealand at Nagpur on
cricket World Cup.
October 31, 1987.
r Mohammad Kaif has held most catches in a World Cup
r Since their 10-run loss to Pakistan on May 23, 1999,
match. He took 4 catches against Sri Lanka at
Australia have not lost even a single match at the World
Johannesburg on March 10, 2003.
Cup.
r England have played the World Cup final three times - in
r Making his debut during the 1975 edition, Javed
1979, 1987 and 1992 - but have never won it.
Miandad has played in most World Cups - six.
r Wasim Akram completed his 500 ODI wickets during the
r Ricky Ponting and Glenn McGrath have played 39
2003 World Cup.
matches each in the World Cup, the most for players.

r I n t h e 2 0 0 3 Wo r l d C u p ,
Pakistan's Shoaib Akhtar,
bowled cricket's first recorded
100 mph delivery. At the
receiving end was England's
Nick Knight.
Sreesanth
r Sri Lanka became the first side
batting second to win the World
Cup when they beat Australia in
the 1996 World Cup final.

15-member Indian squad for


the 2011 World Cup.

The team comprises seven


batsmen, one all-rounder, four
pacers and three specialist
spinners.

a
PT’s PrepTalk – February 2011 71
Book Review

“It’s not about the bike –


My journey back to life”
by Lance Armstrong

A s the title of the book suggests -“It’s not about the bike”-
and it is not. Although Lance Armstrong is a world
famous athlete, you don’t need to be a cycling enthusiast
to read this book. The book does contain some technical terms
but Lance Armstrong has explained them quite finely for a
It is indeed interesting to see how Armstrong connects his
cycling experiences with his cancer experience in his book. As
his life story progresses, one starts developing respect for the
cycling legend and his independent strong-willed mother, as two
great human beings. For me, it’s Armstrong’s mother Linda
layman to understand. The sub-title rightly conveys the who is the greatest pillar of strength for him. The hardships that
message of the book. If it was up to me I would have described it the two go through together is inspiring and the bond that they
in just one word – “Life”. The one who respects life and also the share is indeed emotionally moving.
ones who have struggled courageously through their hardest
battles and come out triumphant should definitely give it a go. The positive way in which Armstrong looks at his cancer
treatment and the way in which it helps him evolve as a more
Lance Armstrong with his compassionate and considerate person is one thing that
writer Sally Jenkins has written captivates the reader. After recovering from cancer, Armstrong
the book in simple and started his own cancer organization- Livestrong – to help cancer
uncomplicated language without patients physically, mentally and emotionally.
use of grandiloquence that help
keep the focus of the reader The manner in which he connects every dot and links every
intact.
following chapter with the succeeding one is delightful thereby
maintaining a perfect flow throughout and not making the
The book discusses
Armstrong’s life and how he
reader feel disillusioned.
struggled through deadly cancer
and came out victorious. At the The turmoil that he goes through after surviving cancer is
age of 25, having a great and even more distressing but how equally valiantly he comes out of
established career in the sport, it is detailed out in a separate chapter ’Survivorship‘. Chapters
Armstrong gets to know that he is covering ’The Tour‘ (Tour de France) and ’Kik‘ (his better half)
suffering from testicular cancer are equally commendable, as by the end, there’s an automatic
in its final stage and that it had respect that transpires for the two protagonists of the stories-
spread all over his body. His life is summarized in ten chapters Lance Armstrong and Kik (who is kik?)respectively.
and chronichles all his life- how it was before cancer, with cancer
as a valiant patient and finally after cancer as an inspiration. It’s not a book for some, it’s a book for everyone because we
all need to ‘live’ life and not just live with it. This account of
The journey of life, which Armstrong has unfolded for the Lance Armstrong teaches everyone the importance of
readers at large, is remarkable as well as very inspiring. And this appreciating each moment of the precious and beautiful lives we
is the one reason Armstrong has come forward with his cancer all have been blessed with.
experience, so that people don’t lose hope however bad the
circumstances may be, rather learn something from them. The It truly ascertains the saying of Napoleon Hill -“Whatever
story revolves around many people, the most important ones the mind of man can conceive and believe, it can achieve.
being his dauntless single mother, his friends like Bill Stapleton, Thoughts are things! And powerful things at that, when mixed
his team mates, doctors and nurses at the hospital, his wife Kik with definiteness of purpose, and burning desire, can be
and son Luke, with Armstrong taking the centre stage. translated into riches.”
a
72 PT’s PrepTalk – February 2011

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