Vodafone has come out as a winner in acquiring the stake in Hutch held by HTIL, Hong Kong. HTIL is a publicly listed company which invests in various telecom companies across the world. Main shareholder of HTIL is Hutchison Whampoa group of Li-Ka Shing.
HTIL and Essar group of India have 67% and 33% respectively in Hutchison Essar Ltd. which runs mobile phone services across India under the brand Hutch. Hutch is one of the leading mobile phone companies in India, at the fourth position in terms of subscriber numbers after Bharti, Reliance and govt. owned BSNL.
About three months back, HTIL surprisingly decided to pull out of the venture and put up its stake for sale. The Indian operation amounts to a significant part of HTIL. Apparently HTIL felt that the telecom investments were turning out to be quite high in the competitive Indian environment. I think the main reason is HTIL's relationship with Essar which was going nowhere.
Hutchison Essar was supposed to go to the stock markets but that didn't happen because of internal fight between HTIL and Essar. The required investment for further growth could have easily come from the stock markets. The enterprise value at which Vodafone has acquired the stakes is about 18 billion USD or about Rs. 81,000 crores. A dilution of around 15% would have resulted in well over 10,000 crores from the markets for further investment. (This is the kind of number Vodafone is indicating it will spend. Bharti too will be spending only of this order.)
Essar is a difficult company to understand. Suddenly it seems to be flush with cash. It is into shipping, steel, telecom and what not. Essar even suggested that it will buy the 67% from HTIL. It still seems to claim it has matching rights to the stake held by HTIL, and if Vodafone doesn't agree to certain terms for the new shareholder agreement, Essar may invoke the matching rights clause or fight a legal battle. HTIL claims there is no matching rights clause in the shareholder agreement!
Vodafone may find dealing with Essar a difficult proposition. Essar does not seem to have a clear telecom strategy or the money and capability to execute on plans. If at all possible, Vodafone should try to buy out Essar completely, find some financial investors in India, and go IPO in Indian stock markets (since there is a limit of foreign holding in telecom companies in India).
Besides Bharti and Reliance Infocomm which are listed, Idea (of Aditya Birla group) has just now listed. Spice Telecom (operating in Karnataka and Punjab) has filed a draft red herring prospectus. BSNL, after a merger with MTNL, may also list.
Vodafone's purchase would also mean a complete rebranding. Hutch as a brand will go completely out of the country and Vodafone will enter India (and in my handset too!).
Friday, February 23, 2007
Tuesday, September 05, 2006
The battle for free newspapers
N. introduces free paper - International Herald Tribune
We in Chennai are used to free neighbourhood newspapers like Mylapore Times, Mambalam Times, Anna Nagar Times, Adyar Times and so on. They are usually weeklies, about 8-16 pages, tabloid, usually short of news, mostly advertisements and some odd columns here and there. The useful things they have are local event diary and local advertisements.
However, in London, particularly around tube stations, a full-fledged daily newspaper called Metro is available, entirely free. When I explained this to my wife, she was quite surprised as to how such a thing was even possible.
In UK, the cost of a newspaper, in local currency is about 50p at most. For that, you will get as many as 30-40 tabloid pages. The cost of the raw material can easily be covered by the cover price, but in most cases, the effort made in collecting the money will be huge. If one can get decent advertisement revenue, then one can look at foregoing the cover price. Metro did precisely that.
Metro's content is not unique or out of the world. It is just newswire stories and photos, rehashed and neatly packaged. A team of 3-4 editorial staff can easily put that together. Metro probably does not have its own reporters to visit the scene and report directly. It does not have any exclusive columnists. The advertisement and distribution teams are probably larger than the editorial team.
But, as a newspaper, Metro is doing an adequate job, and it is free to boot.
Now, Associated Newspapers is launching an evening newspaper - also free - called London Lite. This will also be available near tube stations in London.
Simultaneously, Rupert Murdoch's News Corporation is also launching a free evening paper called Thelondonpaper, and will also distribute the same near the tube stations. Now, people have a choice. Which one they will subscribe to, we will have to wait and watch.
The cost of the paper in the Indian Rupee term is quite high. Even though Deccan Chronicle in Chennai and The Times of India or Hindustan Times elsewhere have tried Rs. 1 per day, they have quickly upped the price. The Hindu charges more than Rs. 3 each day. Even at Rs. 10, one can't cover the cost of the paper.
However, I can't see anyone trying out a free newspaper here. It may be possible to look at a high quality weekly magazine on a free basis, supported purely by advertisements.
We in Chennai are used to free neighbourhood newspapers like Mylapore Times, Mambalam Times, Anna Nagar Times, Adyar Times and so on. They are usually weeklies, about 8-16 pages, tabloid, usually short of news, mostly advertisements and some odd columns here and there. The useful things they have are local event diary and local advertisements.
However, in London, particularly around tube stations, a full-fledged daily newspaper called Metro is available, entirely free. When I explained this to my wife, she was quite surprised as to how such a thing was even possible.
In UK, the cost of a newspaper, in local currency is about 50p at most. For that, you will get as many as 30-40 tabloid pages. The cost of the raw material can easily be covered by the cover price, but in most cases, the effort made in collecting the money will be huge. If one can get decent advertisement revenue, then one can look at foregoing the cover price. Metro did precisely that.
Metro's content is not unique or out of the world. It is just newswire stories and photos, rehashed and neatly packaged. A team of 3-4 editorial staff can easily put that together. Metro probably does not have its own reporters to visit the scene and report directly. It does not have any exclusive columnists. The advertisement and distribution teams are probably larger than the editorial team.
But, as a newspaper, Metro is doing an adequate job, and it is free to boot.
Now, Associated Newspapers is launching an evening newspaper - also free - called London Lite. This will also be available near tube stations in London.
Simultaneously, Rupert Murdoch's News Corporation is also launching a free evening paper called Thelondonpaper, and will also distribute the same near the tube stations. Now, people have a choice. Which one they will subscribe to, we will have to wait and watch.
The cost of the paper in the Indian Rupee term is quite high. Even though Deccan Chronicle in Chennai and The Times of India or Hindustan Times elsewhere have tried Rs. 1 per day, they have quickly upped the price. The Hindu charges more than Rs. 3 each day. Even at Rs. 10, one can't cover the cost of the paper.
However, I can't see anyone trying out a free newspaper here. It may be possible to look at a high quality weekly magazine on a free basis, supported purely by advertisements.
Friday, August 11, 2006
Hutch - Essar spat
Essar calling off the sale of BPL Mumbai circle operation to Hutch does not make much sense. Hutch has contested the decision and the Mumbai High Court has asked them to go for arbitration. So something amicable may be worked out here.
Essar is, after all, a partner of Hutch in the joint venture. Essar's attempts therefore looks more like an attempt by a peeved partner to cause serious hurt to Hutch, rather than well measured business decision.
In the mobile space in India, Bharti and Reliance have zoomed ahead. Bharti has had the least of problems. Reliance had trouble when Mukesh and Anil Ambani fought amongst themselves. Now that there is some degree of resolution there, Reliance is forging ahead.
If Hutch had worked out an aggressive strategy it could have reached number two position. Instead, now, it is in a distant fourth position (with BSNL/MTNL combo at number 3), and Idea, Tata Telecom both hot on its heels behind. Others including Maxis owned Aircel will be aggressively snapping up the new users in the 'C' circles.
Essar who has substantial stakes in Hutch Essar JV should realise that a stronger Hutch Essar, when it goes IPO will offer higher premium per share in the stock markets. You don't get a premium when you are number 4. Both number 1 & 2 are listed entities. Idea and Tata Telecom are well funded, but not strong enough brands compared to Hutch. But if Essar continues to harm the JV, Hutch will be left behind, thereby robbing Essar of valuble wealth.
Essar is, after all, a partner of Hutch in the joint venture. Essar's attempts therefore looks more like an attempt by a peeved partner to cause serious hurt to Hutch, rather than well measured business decision.
In the mobile space in India, Bharti and Reliance have zoomed ahead. Bharti has had the least of problems. Reliance had trouble when Mukesh and Anil Ambani fought amongst themselves. Now that there is some degree of resolution there, Reliance is forging ahead.
If Hutch had worked out an aggressive strategy it could have reached number two position. Instead, now, it is in a distant fourth position (with BSNL/MTNL combo at number 3), and Idea, Tata Telecom both hot on its heels behind. Others including Maxis owned Aircel will be aggressively snapping up the new users in the 'C' circles.
Essar who has substantial stakes in Hutch Essar JV should realise that a stronger Hutch Essar, when it goes IPO will offer higher premium per share in the stock markets. You don't get a premium when you are number 4. Both number 1 & 2 are listed entities. Idea and Tata Telecom are well funded, but not strong enough brands compared to Hutch. But if Essar continues to harm the JV, Hutch will be left behind, thereby robbing Essar of valuble wealth.
Monday, August 07, 2006
Economic Times on banks lending to rural folks via moneylenders
Today's The Economic Times has an article titled Banks eye money lenders to give cheaper credit to farmers.
The article suggests that Banks cannot easily lend to the rural people because they do not reach the rural folks. What was unstated was also that Banks are afraid of lack of securitisation. So they are looking at village moneylenders, whose combined reach is great. So the banks are looking at somehow regulating them. Apparently a group has been constitued comprising of "six senior RBI officials and a senior bureaucrat each from of Bihar, Rajasthan and Andhra Pradesh" to take a look into using the moneylenders as conduits for reaching money to the needy farmers.
But then moneylenders are known to charge atrocious interest. "However, the money lenders have to be regulated so that they do not overcharge farmers" says one member of the group, according to ET.
I do not know whether this is a good method. Indian central bankers need not have to look at this solution at all. Grameen Bank in Bangladesh has already demonstrated over two decades, what can be achieved by direct micro and mini credit without any mortgage or security whatsoever. Grameen Bank is reaching millions of people - more than 90% are women. Grameen Bank has been successful in cutting out the local moneylenders who are basically exploitative.
How can regulation help change the moneylenders' behaviour overnight? Why should the moneylenders take money from banks and offer the same at low interest to the farmers (and others) when such a business will be entirely against their existing business where they are making substantial income, by charging 10% or more interest per month?
India has not bothered to copy a successful model such as Grameen. Instead we are offering a pale imitation in the form of Self Help Groups (SHGs) where the group is forced to save money first and then borrow from within that group fund so collected. There may be minimal topping-up over the savings at best. The banks do not care much about the SHGs. That job is left to various NGOs. The state governments step in and pay some compensation to the NGOs for starting up new groups.
From what little I have learnt about the SHGs in India, they are in no way comparable to the Grameen experiment.
I would suggest that what India needs is three or four banks in the mould of Grameen Bank, operating in various parts of the country. One each for each zone - perhaps. The Banks can simply be identical copies of Grameen Bank. Like in the case of the Grameen Bank, it is advisable to keep the Government out of the Bank so that Government does not get into one of its debt write-offs every once in a while for the sake of votes. Government, at best, should have only 20-25% equity in such a bank. The rest of the equity should be with the participating women, and other funders. There is also enough of an opportunity for private banks to start this kind of a venture.
It would be better to stay away from using the moneylenders.
The article suggests that Banks cannot easily lend to the rural people because they do not reach the rural folks. What was unstated was also that Banks are afraid of lack of securitisation. So they are looking at village moneylenders, whose combined reach is great. So the banks are looking at somehow regulating them. Apparently a group has been constitued comprising of "six senior RBI officials and a senior bureaucrat each from of Bihar, Rajasthan and Andhra Pradesh" to take a look into using the moneylenders as conduits for reaching money to the needy farmers.
But then moneylenders are known to charge atrocious interest. "However, the money lenders have to be regulated so that they do not overcharge farmers" says one member of the group, according to ET.
I do not know whether this is a good method. Indian central bankers need not have to look at this solution at all. Grameen Bank in Bangladesh has already demonstrated over two decades, what can be achieved by direct micro and mini credit without any mortgage or security whatsoever. Grameen Bank is reaching millions of people - more than 90% are women. Grameen Bank has been successful in cutting out the local moneylenders who are basically exploitative.
How can regulation help change the moneylenders' behaviour overnight? Why should the moneylenders take money from banks and offer the same at low interest to the farmers (and others) when such a business will be entirely against their existing business where they are making substantial income, by charging 10% or more interest per month?
India has not bothered to copy a successful model such as Grameen. Instead we are offering a pale imitation in the form of Self Help Groups (SHGs) where the group is forced to save money first and then borrow from within that group fund so collected. There may be minimal topping-up over the savings at best. The banks do not care much about the SHGs. That job is left to various NGOs. The state governments step in and pay some compensation to the NGOs for starting up new groups.
From what little I have learnt about the SHGs in India, they are in no way comparable to the Grameen experiment.
I would suggest that what India needs is three or four banks in the mould of Grameen Bank, operating in various parts of the country. One each for each zone - perhaps. The Banks can simply be identical copies of Grameen Bank. Like in the case of the Grameen Bank, it is advisable to keep the Government out of the Bank so that Government does not get into one of its debt write-offs every once in a while for the sake of votes. Government, at best, should have only 20-25% equity in such a bank. The rest of the equity should be with the participating women, and other funders. There is also enough of an opportunity for private banks to start this kind of a venture.
It would be better to stay away from using the moneylenders.
Sunday, August 06, 2006
Lok Sabha question on sporting telecast rights to Doordarshan
Minister of I&B Priya Ranjan Dasmunshi, while answering a written question in Lok Sabha has said as below:
It is also surprising that there were no follow-up questions on why such an executive order was sent out rather than contemplating a proper legislation, what the Ministry is proposing to do about the Ten Sports issue, whether the GO is fair or not, what have the International sporting bodies - in particular the ICC - conveyed to the Ministry of I&B etc.
This is the quality of debate in Lok Sabha. This is the quality of our representatives in the Parliament.
The Government has no proposal to set up a Regulatory Authority to monitor and regulate the earnings through telecasting of sporting events. However, the Government is contemplating the establishment of an autonomous authority to regulate Broadcasting sector.It is however surprising that the Minister did not inform the members of the Parliament that Doordarshan and Ministry of I&B have been taken to the judiciary a few times and the judiciary has found no reason to uphold the Government Order of 5th April 2006.
Also there is no proposal to give Doordarshan the sole right of telecasting the sports events organised in the country. However, the Government has issued an order on 5th April, 2006 vide which live feeds of a number of specified sporting events of national importance held in India or abroad are required to be shared with Prasar Bharati with immediate effect by sports channels/sports management companies having television broadcasting rights for broadcast on their terrestrial and DTH networks. In case of cricket events, these shall include all matches featuring India and the finals and semi finals of international events.
It is also surprising that there were no follow-up questions on why such an executive order was sent out rather than contemplating a proper legislation, what the Ministry is proposing to do about the Ten Sports issue, whether the GO is fair or not, what have the International sporting bodies - in particular the ICC - conveyed to the Ministry of I&B etc.
This is the quality of debate in Lok Sabha. This is the quality of our representatives in the Parliament.
Saturday, August 05, 2006
Ten Sports continues to defy the Indian Government
Ten Sports has been the only channel consistently taking on the Government of India and Prasar Bharati, the Govt. controlled television channel, when it comes to sharing of sporting telecast rights.
In November 2005, the Ministry of Information and Broadcasting issued a policy guideline for Cable operators and Television Channels operating in India that certain notified sports events must be shared with the Govt. owned Doordarshan, only on a revenue sharing basis. Worse, the guidelines were applicable to several events for which the telecast rights were acquired long back.
This was done primarily because Doordarshan was losing out on the lucrative cricket rights. While Doordarshan knows it can make a lot of money from cricket, it doesn't have the ability and money to compete fair and squarely in the rights market. So it used a backdoor method.
This infringes heavily on the rights of private Telecasters and their ability to make money. However other channels did not care much. ESPN - Star Sports, Zee Sports and various other rights holders including Nimbus did not take the Govt. head on.
Only Ten Sports did. Ten Sports owns cricket broadcast rights to events happening in Pakistan, West Indies and Sri Lanka. Ten Sports consistently challenged the Ministry and Prasar Bharati. In the case of Indian tour of Pakistan in early 2006, Doordarshan backed out of Tests but the ODIs were telecast across both the channels after Doordarshan was forced by the Courts to pay a fixed fee for showing the 'dirty feed' (namely the Ten Sports feed with all the Ten Sports advertisements and logo) without any alterations whatsoever.
Basically the Courts called Doordarshan's bluff on 'public service'. Doordarshan kept claiming that its intentions were noble and not money, and that it wanted maximum number of people to receive the broadcasts. So the Courts ruled that Doordarshan shall show the Ten Sports feed without any alteration and not make money out of any advertisements. Doordarshan also tried showing a pre-match, post-match show, which was also stopped by Ten Sports by going to Courts.
Thus, badly mauled by the legal set-up in India, Doordarshan stayed away during the Indian tour of West Indies. Public service did not come in to the picture, since the matches were in the middle of night.
Now that matches are being held in Sri Lanka in broad daylight and prime time, Doordarshan has dusted and brought back to life 'public service'. Ten Sports, as usual, went to Supreme Court, where the bench is finding Ten Sports' claims perfectly valid.
The impugned guidelines from Ministry of I&B are so pathetic, the Courts are repeatedly smashing them. It has become so much of an embarassment for the Government. The Govt. has avoided bringing a legislation and has used the Ministerial guidelines to impose something as major as controlling the event telecast rights and curtailing the freedom of operation of private enterprises. Even if they try a legislation, there may not be a sensible debate on this issue. Majority in the Parliament will be used to force a 'bad law', forcing the private enterprises to fight in the Courts again.
But, there are ways by which a legislation in Parliament can control events held in India, and forcing the event organizers to sell or offer virtually for free, terrestrial rights to Doordarshan. For events held outside the country, no such thing is possible. It does not happen in UK, or Australia, but in both these countries Terrestrial channels must be offered rights for certain events held in the country. India can look at building such a legislation than coming up with patently unfair policy guidelines.
In November 2005, the Ministry of Information and Broadcasting issued a policy guideline for Cable operators and Television Channels operating in India that certain notified sports events must be shared with the Govt. owned Doordarshan, only on a revenue sharing basis. Worse, the guidelines were applicable to several events for which the telecast rights were acquired long back.
This was done primarily because Doordarshan was losing out on the lucrative cricket rights. While Doordarshan knows it can make a lot of money from cricket, it doesn't have the ability and money to compete fair and squarely in the rights market. So it used a backdoor method.
This infringes heavily on the rights of private Telecasters and their ability to make money. However other channels did not care much. ESPN - Star Sports, Zee Sports and various other rights holders including Nimbus did not take the Govt. head on.
Only Ten Sports did. Ten Sports owns cricket broadcast rights to events happening in Pakistan, West Indies and Sri Lanka. Ten Sports consistently challenged the Ministry and Prasar Bharati. In the case of Indian tour of Pakistan in early 2006, Doordarshan backed out of Tests but the ODIs were telecast across both the channels after Doordarshan was forced by the Courts to pay a fixed fee for showing the 'dirty feed' (namely the Ten Sports feed with all the Ten Sports advertisements and logo) without any alterations whatsoever.
Basically the Courts called Doordarshan's bluff on 'public service'. Doordarshan kept claiming that its intentions were noble and not money, and that it wanted maximum number of people to receive the broadcasts. So the Courts ruled that Doordarshan shall show the Ten Sports feed without any alteration and not make money out of any advertisements. Doordarshan also tried showing a pre-match, post-match show, which was also stopped by Ten Sports by going to Courts.
Thus, badly mauled by the legal set-up in India, Doordarshan stayed away during the Indian tour of West Indies. Public service did not come in to the picture, since the matches were in the middle of night.
Now that matches are being held in Sri Lanka in broad daylight and prime time, Doordarshan has dusted and brought back to life 'public service'. Ten Sports, as usual, went to Supreme Court, where the bench is finding Ten Sports' claims perfectly valid.
The impugned guidelines from Ministry of I&B are so pathetic, the Courts are repeatedly smashing them. It has become so much of an embarassment for the Government. The Govt. has avoided bringing a legislation and has used the Ministerial guidelines to impose something as major as controlling the event telecast rights and curtailing the freedom of operation of private enterprises. Even if they try a legislation, there may not be a sensible debate on this issue. Majority in the Parliament will be used to force a 'bad law', forcing the private enterprises to fight in the Courts again.
But, there are ways by which a legislation in Parliament can control events held in India, and forcing the event organizers to sell or offer virtually for free, terrestrial rights to Doordarshan. For events held outside the country, no such thing is possible. It does not happen in UK, or Australia, but in both these countries Terrestrial channels must be offered rights for certain events held in the country. India can look at building such a legislation than coming up with patently unfair policy guidelines.
Friday, August 04, 2006
PS Krishnan on Social Justice and Reservation
PS Krishnan, Retd. IAS, is a former secretary to the Government of India and former member secretary of the National Commission for Backward Classes. He was the Secretary in-charge during VP Singh's time resurrecting the Mandal Commission Report.
He was recently in Chennai to give a lecture on "Social Justice and Reservation" organized by the Chennai based Indian School of Social Sciences.
I have recorded the lecture and the subsequent Q&A session and am making it available here. This is a mildly edited version. I have removed one mindless question unconnected with the reservation issue (in the Q&A section), a few word repetitions, coughs, cellphone rings and other such noises.
[Links changed, 1st May 2008]
1. Sashi Kumar of Asian College of Journalism introduces PS Krishnan, followed by Krishnan's lecture on Social Justice and Reservation., 58.43 min, 26.8 MB, 64kbps MP3 file
2. Questions and answers that followed the lecture, 42.37 min, 19.5 MB, MP3 file
Quite a bit of what PS Krishnan said in the lecture appears in an article he wrote in Frontline, Apr. 22 - May 05, 2006.
He was recently in Chennai to give a lecture on "Social Justice and Reservation" organized by the Chennai based Indian School of Social Sciences.
I have recorded the lecture and the subsequent Q&A session and am making it available here. This is a mildly edited version. I have removed one mindless question unconnected with the reservation issue (in the Q&A section), a few word repetitions, coughs, cellphone rings and other such noises.
[Links changed, 1st May 2008]
1. Sashi Kumar of Asian College of Journalism introduces PS Krishnan, followed by Krishnan's lecture on Social Justice and Reservation., 58.43 min, 26.8 MB, 64kbps MP3 file
2. Questions and answers that followed the lecture, 42.37 min, 19.5 MB, MP3 file
Quite a bit of what PS Krishnan said in the lecture appears in an article he wrote in Frontline, Apr. 22 - May 05, 2006.
Wednesday, July 19, 2006
Deemed Universities can start courses without getting UGC permission
The Hindu News
In a clarification sent out couple of days back, UGC has said that Deemed Universities can start any course they want (such as B.A., B.Sc., M.A., M.Sc. or M.Com.) without prior approval from UGC.
This is exactly the opposite of what they supposedly wrote to the Deemed Universities a few days back - wherein they had said Deemed Universities must give an "undertaking that no course will be started without its nod."
So let us recount what has happened over the last 10 days:
What is the current status regarding the technical courses started by DUs without AICTE approval? No answer. In fact this was the major issue on which the students fought pitched street battles in a few DUs in Tamil Nadu.
How soon will AICTE and UGC undertake joint inspections of DUs as per the Chennai High Court Order? What will their action be if they find flagrant violation as in the case of Vinayaka Mission institutions? No clarity.
Why is UGC so pathetic? Can't they think clearly and then send out letters once and for all? Are they being pressured by DU lobby to let them off hook?
If Private Universities were considered an aberration and a whole bunch of them abolished by a Supreme Court order couple of years back, why are DUs, which for all practical purposes are Private Universities, being allowed to run unchecked?
All through this muddle Human Resource Development Ministry keeps mum.
How can we expect India to produce better engineers tomorrow?
In a clarification sent out couple of days back, UGC has said that Deemed Universities can start any course they want (such as B.A., B.Sc., M.A., M.Sc. or M.Com.) without prior approval from UGC.
This is exactly the opposite of what they supposedly wrote to the Deemed Universities a few days back - wherein they had said Deemed Universities must give an "undertaking that no course will be started without its nod."
So let us recount what has happened over the last 10 days:
- All Technical Institutions are under the control of AICTE.
- But wait... once the Technical Institution becomes a Deemed University, that institution is not exactly under the control of AICTE, but rather under UGC.
- So what can be done if the DU is found to be violating the AICTE norms? AICTE cannot take unilateral action. They can inspect DU's premises... but not on their own. They need UGC persons to accompany them. AICTE can find out what is wrong with the DU, but cannot act on their own. Must pass on the info to UGC and UGC will act on them.
- UGC sends a letter to all DUs asking them to follow AICTE norms, and that they give an undertaking that they will not start any course on their own without getting UGC permission first.
- Then very soon UGC sends another letter that supercedes all the earlier letters, allowing DUs to start whatever course (but non-technical) they want without getting UGC's permission.
What is the current status regarding the technical courses started by DUs without AICTE approval? No answer. In fact this was the major issue on which the students fought pitched street battles in a few DUs in Tamil Nadu.
How soon will AICTE and UGC undertake joint inspections of DUs as per the Chennai High Court Order? What will their action be if they find flagrant violation as in the case of Vinayaka Mission institutions? No clarity.
Why is UGC so pathetic? Can't they think clearly and then send out letters once and for all? Are they being pressured by DU lobby to let them off hook?
If Private Universities were considered an aberration and a whole bunch of them abolished by a Supreme Court order couple of years back, why are DUs, which for all practical purposes are Private Universities, being allowed to run unchecked?
All through this muddle Human Resource Development Ministry keeps mum.
How can we expect India to produce better engineers tomorrow?
Sunday, July 16, 2006
UGC wakes up to Deemed Universities' abuses
After Chennai High Court order asking AICTE and UGC to undertake joint inspection of Deemed Universities' precincts, UGC has written a letter to all the DUs asking for an "undertaking that no course will be started without its [UGC's] nod".
I think, the wording has to be stricter than this. DUs should be threatened with dire action if any violation is found - such as immediate revoking of DU status and relegation to a mere college status under respective local Universities.
In 2005, UGC had sent out a similar letter to DUs, but out of 103 DUs, only 40 or so seem to have written back to UGC. DUs will continue to flout the norms, unless some are punished severely and others are told to behave.
The Hindu News
I think, the wording has to be stricter than this. DUs should be threatened with dire action if any violation is found - such as immediate revoking of DU status and relegation to a mere college status under respective local Universities.
In 2005, UGC had sent out a similar letter to DUs, but out of 103 DUs, only 40 or so seem to have written back to UGC. DUs will continue to flout the norms, unless some are punished severely and others are told to behave.
The Hindu News
Saturday, July 15, 2006
AICTE cannot take direct action against deemed varsities
In what can only be termed as a victory of sorts to the erring Deemed Universitites, Chennai High Court has ruled that AICTE cannot act directly against the erring DUs, but can only bring the errors to the notice of UGC.
The Hindu News
AICTE cannot also inspect the DU's premises on its own. It needs to include a representative from the UGC.
If this is what the Court thinks, why do we need AICTE? It can as well be disbanded and the money allocated to UGC to build its own expertise to inspect and regulate the Deemed Universities and Engineering Colleges.
Actually, the problems lies with the Central Government. They should regularise the roles of AICTE, UGC, MCI and so on through proper unambiguous legislation. The executives are once again relagating their powers and allowing the judiciary to control various aspects of the administration.
The Hindu News
AICTE cannot also inspect the DU's premises on its own. It needs to include a representative from the UGC.
If this is what the Court thinks, why do we need AICTE? It can as well be disbanded and the money allocated to UGC to build its own expertise to inspect and regulate the Deemed Universities and Engineering Colleges.
Actually, the problems lies with the Central Government. They should regularise the roles of AICTE, UGC, MCI and so on through proper unambiguous legislation. The executives are once again relagating their powers and allowing the judiciary to control various aspects of the administration.
Subscribe to:
Posts (Atom)