826 (Part 2/10) of Indian Corporate Governance -Continuation of Tata Mallya discussion

This is in continuation of this blog's post No. 825 Click to go to post No. 826., wherein I have made it clear that my analyses are not about Mr. Vijay Mallya or Ratan Tata or Cyrus Mistry in particular, or about the United Breweries Group/KingFisher or the Tata Group in particular. What I wish to make clearer, is: Like their Global counterparts, most of the Institutions in India are in a mess, not only the Corporate Sector, or the Economic System, but also every other System, Sub-System. I do not wish to attribute this atrophy and latent collapse and decay to reforms such as LPG (Liberalisation, Privatisation, Globalisation), because the atrophy and latent decay of INdian Economy were there even before the advent of P.V. Narasimha Rao as Prime Minister, and Manmohan Singh as Finance Minister. The duo have only accelerated the processes to make them more pronounced and visible. Probably, they might have existed even before 1937.

JAWAHARLAL NEHRU AND MAHALANOBIS MODEL OF DEVELOPEMTN

By taking the Socialist path, Late Jawaharlal Nehru, the first Prime Minister of India, though unintentionally, has tried to sideline the Tatas, Birlas et al. Unfortunately Nehru did not take it up in at least 80% of its potential. He did not do it whole-heartedly, because he had to carry himself along with other Congress Stalvarts, and Regional Congress Leaders. By pioneering the advent of Public Sector in India, and endeavouring to take it to commanding heights, Mr. Nehru tried to set aside the dynastic and the dhan-terah gambling Private Sector, but he could not succeed, probably because there was a Chinese Invasion 1962, and he had to suffer premature death.

LATE LAL BAHADUR SASTRY, the second Prime Minister

His successor Late Lal Bahadur Sastry, the Second PM, did n't have time to attend to the maladministrations and mismanagements of Indian Corporate Sector, because his attention was DETRACTED by Pakisthani intrusions, invasions and the consequent 1965 Indo Pak War.

LATE INDIRA GANDHI, the third Prime Minister

The third PM, Late Indira Gandhi d/o Nehru, had all the time, but she had no will to correct the rot in Private Sector, because Congress and Opposition Parties by that time have started living on the donations of industrialists for amassing wealth and meeting election expenses. For political reasons, Ms. Gandhi went on a Nationalisation Campaign of banks, Oil Companies, Insurance Companies, sick Coal Mines, sick Textile Mills, but only to allow them to be mismanaged letter. To cover all these things, we may need 100,000 print pages, and internet pages, but all of such pages may end up to be junk because nobody will read them.

CONGRESS AND UPA

Today, the dynastic political bosses and the successors of Nehru Dynasty in Congress Party wants to claim credit for the legacy of Nehru, while they know nothing about Nehruvian Economics or they are not inclined to continuing Nehruvian Economics, in spite of knowing. I believe that they do now know what Nehruvian Economics truly is. Otherwise, why should they carry Mr. Manmohan Singh who introduced diametrically opposite and anti-Nehru policies, on their shoulders for nearly 20 years? I must say, though it may sound arrogant, that the Nehru Dynasty Congress bosses know nothing about Indian Economics.

CURRENT NDA REGIME

Mr. Narendra Modi and Mr. Arun Jaitley are just continuing their legacies of Mr. Manmohan Singh, and Mr. P. Chidamabaram (Former Finance Minister). They have no capabilities or desire to clean up the mess in private sector. Nor, do they have any intent to clean up the Public Sector. Their interests seem to concentrate only on four things 1) Foreign Tours 2) Beg for Foreign Investments 3) Trying to implement what their Patron Industrialists demand. 4) Dispose off Public Sector units at throw away prices.

SELECTED READINGS

IT SECTOR VIS-A-VIS / VERSUS MANUFACTURING SECTOR IN INDIA

Here, one article by Vivek Kaul, dated 15h Jan. 2016, Click to go to https://www.valueresearchonline.com/story/h2_storyview.asp?str=29976, is worth studying.

To continue. सशेष. ఇంకా ఉంది.

447 Poor, but Optimistic fellow Hindusthan Shipyard Limited Chairman! Kudos to CPM for opposing closure.

४४७ दीन, अभाग्यशाली हुये तो भी आशावान, हिंदूस्थान षिपयार्ड लिमिटॆड के छैर्मन, वे प्रशंसार्ह है।  षिप यार्ड देहांत करने के केंद्रीय सरकारी निर्णय को विरुध्ध करने, खडे रहने के साहसी सीपीऎम को अभिनंदन।

౪౪౭ దీనుడు, అభాగ్యశాలి అయినప్పటికి ఆశాజీవి కదా హిందూస్థాన్ షిప్ యార్డ్ ఛెయిర్మన్.  షిప్ యార్డ్ మూసివేతను వ్యతిరేకించినందుకు సీపీఎమ్ కి అభినందనలు.

I reproduce below first few paragraphs of  the Hindusthan Shipyard's Chairman's speech , available on their website as hsl.nic.in http://www.hsl.nic.in/content/70_5_CMD%20Message.aspx .  षिपयार्ड् छॆयिरमन के पूर्ण भाषण देखने के लिये आप उपरोक्त लिंक क्लिक कर सकते है।  హిందూస్థాన్ షిప్ యార్డ్ ఛెర్మన్ గారి పూర్తి ప్రసంగాన్ని చూడటానికి, షిప్ యార్డ్ వెబ్ సైట్ కి వెళ్ళటానికి క్లిక్

1. I have the great pleasure in welcoming you to this 62nd Annual General Meeting of your company and share some of significant achievements during the year under review. The Directors Report, &Audited Financial Statements have already been circulated to you, with your permission, I take them as read.

2. Before I move to performance of our company, I would like to highlight the some of the issues of Global Shipbuilding vis-a-vis Indian Shipbuilding Industry.

World Shipbuilding Scenario

3. Global Shipbuilding Industry continues to be dominated by China, Korea and Japan. In the interim, other countries such as Vietnam, Brazil and Philippines and Turkey have made impressive inroads. The global recession ,that severely hit the Industry in beginning 2009, is now showing signs of improvement. By end of 2014, it is hoped  that the Industry will recover and this heralds good fortunes for HSL.

Shipbuilding Scenario in India

4. India has an extensive coastline of more than 7,515 km and has a pool of trained man-power that best suits shipbuilding Industry. However, Indian shipbuilding industry has not been able to capitalize its strengths and remains far behind in the international stage.

5. As per an analysis conducted by ASSOCHAM, Indian Shipbuilding & Ship Repair Industry is likely to witness

opportunities worth Rs 25,000 Cr in coming years as over 41% of Indian ships have crossed 20 years of operations.India has a total of 1,122 ships in its fleet and 41 per cent of this fall in the age group of 20 years and more.Considering that the average life of a shipping vessel is about 26 years,  most of the existing vessels need to be replaced. An average cost of constructing a large vessel is about $100 million. Therefore, the size of this opportunity would be $3.3 billion.

 6. Commercial ship construction at Indian shipyards is dwindling and all private shipyards are now looking for share in the Defence Shipbuilding which is commercially  very attractive. There is also a trend to encourage participation of private yards in defence shipbuilding. This will throw major challenges to HSL in the coming years.

 7. Now I move ahead to the major highlights of your Company and its performance during the period under review.

Major Highlights

 8. The Major highlights of the year 2013-14 are as under

      (a) Despite severe financial crisis, the yard has delivered five vessels during the year under  review.

      (b) Some of the noteworthy achievements are as follows: 

            (i) Delivery of Second of 05 nos Inshore Patrol Vessels for Indian Coast Guard.

            (ii) Delivery of M V Good Day,fourth of 05 nos (53000 DWT) Bulk Carriers to M/s GML Chennai

            (iii) Launching & Delivery of 03 nos. 50 Ton Bollard Pull Tugs to Indian Navy

            (iv) Repair of 20 Vessels of different types for Indian Navy, DCI, ONGC and VPT etc..

            (v) The refit of INS Sindhukirti and Project VC 11184 has been put back on track.

ybrao-a-donkey's humble views वैबीराव गधे के विनम्र राय వైబీరావ గాడిద వినమ్ర వ్యాఖ్య, అభిప్రాయం

      See the praiseworthy work done by Hindusthan Shipyard Ltd.  It is foolish for the Government to say that HSL will be closed down because it is incurring losses.   Thousands of Private Sector Units and Corporate Businesses are sick incurring millions of Rupees of losses, in turn forcing the Public Sector Banks sick.  Why doesn't the Government take coercive steps to close down such non-performing Private Sector robbers?

As can be seen above, HSL did great work for the Indian Navy, Indian Coast Guard, Dredging Corporation of India, ONGC, Visakhapatnam Port Trust.  It has also delivered four bulk carriers.  Not a small thing.

If HSL is closed down Indian Navy, Indian Coast Guard, Dredging Corporation of India, ONGC, VPT will suffer.  They will be at the mercy of the Private Sector buffoons and MNC vultures.

What is the meaning of Make in India, if we close a performing Unit?  If a performing Unit incurs losses, efforts should be made to plug the loopholes.  Closing down is never a solution.  Government of India every year runs in deficit.  Should we close down the Government of India, and ask Obama or Xi Jinping to take over the ownership of India?
photos courtesy wikipedia


Blindly closing or privatising public sector units serves no purpose.  We cannot kill a sick person, simply because he-she is sick.  This is an era of organ transplantation.  If human livers, hearts, kidneys can be replaced with healthier ones, can't we find solutions for Organisations?

Problem with bourgeoisie parties is, even before coming to power, they are predetermined to close the public sector and hand them over on golden plates to private fellows and MNCs, along with the precious thousands of acres of land owned by the PSUs.

Kudos to CPIM for opposing the shut down of Hindusthan Shipyard.

Hindi and Telugu versions will be added later.

(1000 pages can be written on this topic).
To continue.  सशेष.  ఇంకా ఉంది.