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Contents

Simplifying knowledge dissemination Major news stories


q Ambani brothers break the ice ............................................ 05
Editor-in-Chief : Sandeep Manudhane

Marketing and Sales :


Manish Saraf - 97555-99509
Cover story
q FIFA world cup 2010 ............................................................ 09
Volume 8. Edition 12. June 2010

Editorial Office
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Opp. Railway Station Indore - 452001 q India ........................................................................................ 15
Ph : 0731-307 00 00
Fax : 0731-3070099 q World ...................................................................................... 22
E-mail : preptalk@PTeducation.com q Business and economy .......................................................... 29

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Articles and contributions – courier or emails – should q How to deliver and delight customers ................................. 40
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Published by Manish Saraf on behalf of Profiles


PTETSL, Yeshwant Plaza,
Opp. Railway Station, Indore 452001. q David Cameron ...................................................................... 37
q Sarosh Homi Kapadia............................................................ 47

Disclaimer :
The information given in this magazine is true to the best
of our knowledge. However, PT or any of its associates News in brief
will not be responsible in any manner for inadvertent
errors that may have crept into this publication. PT does
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q India ........................................................................................ 66
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q World ...................................................................................... 68
q Business and economy .......................................................... 70

Regulars
q Brand icon: Apple Inc............................................................ 42
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“To be a world class training and education
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q Book review: We are like that only ........................................ 72
Take Quote

Dear friends, “In a day, when you don't come


across any problems – you can be
By the time this issue of Prep Talk reaches you, the FIFA event would have sure that you are travelling in a
begun. The world’s sights are set on South Africa, the nation that is hosting the wrong path.”
World Cup in football, a spectacular event which would be keenly watched by – Swami Vivekananda
millions round the world, with excitement, with thrill, with speculation and with
patriotism. “If you win you need not
explain.......But if you lose you
The organizers of the event, FIFA, an acronym of Federation International de should not be there to explain.”
Football Association, is an International governing body of association of football – Adolf Hitler
playing nations, which is in existence for over a century and has been organizing
World Cup events in the sport of football, ever since 1930. FIFA lays the rules and “Winning doesn't always mean
frames conditions for the conduct of this global event. Doesn’t the game of football being first, winning means you're
suggest something more profound beyond the nail biting moments of thrill that it doing better than you've done
provides, both for the vigorous participants and the viewing public? Just think of a before.”
group of skilled individuals teamed having a common goal, working out methods – Bonnie Blair
and strategies to surmount any hurdle, to outdo and outwit any opponent,
persevering and “stopping not till the goal is reached”. “Everyone thinks of changing the
world, but no one thinks of
The interpersonal skills, team dynamics, coordination and compatibility are in changing himself.”
their ascendance in the team that best performs and wins the event. There are well – Leo Tolstoy
laid instructions for each member of the team to comply, there is a high sense of
belongingness on the part of each member who represents his nation and the “If someone feels that they had
collective will to do the best percolates to each member to give out his best. never made a mistake in their life,
then it means they had never tried a
How do things come about constructively? Discipline is the undercurrent. If it new thing in their life.”
were not for discipline, teams wouldn’t be at their best and all one would witness – Albert Einstein
would be a medley of individuals, who though skilled and talented, would be
divergent from the common goal and objective. Personal considerations would ride “Believing everybody is dangerous;
over those of the team, the state and finally the nation. believing nobody is ver y
dangerous.”
I hope that the FIFA sponsored World Cup event would unfold before you the – Abraham Lincoln.
sight of players, all out to dazzle the spectators with their talents and skills in areas of
goal keeping, dribbling, defending, shooting, giving precise first time passes, "A life spent making mistakes is
heading, and much more! not only more honorable, but more
useful than a life spent doing
And I fervently wish that we take a cue from this wonderful brigade of players of nothing."
using our talents and skills in the best possible way. – George Bernard Shaw
Happy footballing!
“Coming together is a beginning.
Manish Saraf Keeping together is progress.
COO, PT education Working together is success”
– Henry Ford

PT’s PrepTalk – June 2010 03


Letters to the editor

Kasab gets death penalty in that can be harnessed to provide for


the electricity and energy needs of
26/11 mankind. One such source of energy
is solar energy.Though solar energy is
The anxiously awaited verdict on
available for free and aplenty around
Kasab comes as a great reprieve to the
the world, the costs associated with
denizens of this country. It is an eye
setting up a solar energy unit proves to
opener for the terrorist organizations
be too expensive for everyone to use
harbouring sinister designs for India
solar energy to power their homes.
and a pointer that India will not
tolerate terrorism on its soil. The
This is why scientists are looking
court has sent out a message that
for new ways of harnessing this solar
terrorism has no place in a civilized
energy so that it will be cheaper for
community.
ever yone to use solar energy.
Scientists are now working on
That Kasab was given legal
developing light absorbing materials
assistance in an open trial despite his
that can be used in the production of
gruesome crime underscores the
thin-layer photovoltaic (PV) cells.
fairness and integrity of our legal
These PV cells are used for converting
system. It is hoped that more such
light energy into electricity.
perpetrators of crime are brought to This position would also be one that is
Brajesh Shar ma, Bhopal
book and the death sentence strategically important to the
pronounced on Kasab does not go the organization, yet one that also affords
Afzal Guru way. opportunity for flexibility and team
R ajshree Gupta, Indore participation. The alignment of these

Harnessing the talent


rights yields high performance and we all
know that high performance of people FEEDBACK !
generates high organizational Your comments and
The article ‘Harnessing the performance or the right results. views on PrepTalk
Talent’ made interesting reading. It is Mahesh Y adav, Jaipur are needed to help
beyond doubt that today talent is Us make it better.
recognized as one of the keys to Solar energy: The future fuel
Which articles did you like?
organizational success. That’s
because having the right person with The article was very informative and Which columns do you
the skills, experience and abilities an brought many illuminating facts to the like to read regularly?
organization needs is essential. fore. The increase in the amount of Which are the best parts of
Putting that person in the right harmful gases from the burning of fossil the magazine?
position is equally important. Such a fuels has led to an increase in global Which are not?
person is one who makes good sense warming of the earth. How to improve?
of that individual’s strength, while
also allowing opportunity for This is why people are now turning to Send feedback to:
flexibility and team participation. alternative sources of renewable energy preptalk@PTeducation.com

04 PT’s PrepTalk – June 2010


Major news story

Ambani brothers break the ice

T he latest Ambani Brothers Battle is becoming a


politico-economical saga which has attracted the
media world over. The fight for gas supplies between
Mukesh Ambani's Reliance Industries Ltd and Anil's Reliance
Natural Resources Ltd has also put the government on a
defensive position. This is a complex issue which involves
India's Natural Gas Policy as well hinders the efforts to solve the
country's chronic energy shortage.

In a major development, the two Ambani brothers Mukesh


and Anil on May 23, decided to bury their differences and
create an environment of harmony, co-operation and
collaboration between their groups.

"All existing non-compete agreement between the two These developments will eliminate any room for further
groups executed in January 2006 cancelled," Mr Anil Ambani disputes between the two groups, on matters relating to the
group said in a statement. The harmony comes within a few days scope and interpretation of the non-compete obligations, RIL
of the Supreme Court declining to give any relief to younger added. "RIL and Reliance Natural Resources (RNRL) will
brother in the gas dispute. "A new, simpler non-compete expeditiously negotiate gas supply arrangements in accordance
agreement executed limited to only gas-based power with the orders of the Hon ble Supreme Court of India. We hope
generation. RIL (Mukesh) and RNRL (Anil) will expeditiously to conclude these negotiations very soon, the RIL statement
negotiate gas supply arrangement as per the Supreme Court further said.
order and hope to conclude negotiations very soon," it added.
What is the fight about?
The cancellation of the existing non-compete agreement
will provide enhanced operational and financial flexibility to Mukesh Ambani's Reliance Industries Limited agreed to sell
both groups and greater ability to participate in high growth Anil Ambani's Reliance Natural Resources Limited 80 mmscmd
sectors such as oil and gas, petrochemical, telecom, power and of gas from the Krishna-Godavari Basin for 17 years at $2.34 per
financial services, the Anil Ambani Group said. mmbtu - for its Dadri power plant.

However, RIL has agreed not to enter the gas-based power With RIL not supplying the gas, RNRL went to court against
generation business for the period up to March 2022. In an it for not implementing this as a part of a family MoU signed
identical statement, Reliance Industries said "RIL, led by Mr when the empire was being carved up between the two brothers.
Mukesh D. Ambani, and Reliance ADA Group companies,
Reliance Communications, Reliance Infrastructure, Reliance The Bombay high court ruled in June that RIL should supply
Natural Resources, and Reliance Capital, led by Mr Anil D. gas to RNRL at nearly half the price it had set in an interim order
Ambani, have approved and signed an agreement canceling all in January.
existing non-compete arrangements entered between the two
groups in January 2006 pursuant to the scheme of reorganisation With the government reacting strongly against the warring
of the Reliance Group and entered a new simpler, non-compete brothers' stance over a national resource, it is now left to the
Agreement with respect to only gas-based power generation. Supreme Court to decide the future course of action.

PT’s PrepTalk – June 2010 05


Following is a timeline of key dates in the Ambani rift. November 2004: the Feud between the siblings becomes
public.
July 2002: Dhirubhai Ambani, a school teacher's son and
founder of the Reliance business empire, dies. Mukesh Ambani June 2005 - Family reaches a settlement to split the Reliance
becomes Chairman and Managing Director of Reliance group in a deal brokered by their homemaker mother,
Industries Ltd, and Anil Ambani is made Vice-Chairman. Kokilaben.

2002: Natural gas was discovered in the Krishna Godavari 2006 - Formal split takes place, with Mukesh taking control
basin off India's eastern coast. Three companies - RIL, the of flagship Reliance Industries, with interests in
state-owned Oil and Natural Gas Corporation (ONGC) and petrochemicals, oil and gas exploration, refining and textiles. He
Gujarat State Petroleum Corporation (GSPC) - discovered gas - has since launched a retail venture. The Anil Dhirubhai Ambani
and some oil- in three different blocks. These companies are Group gets telecoms, power, entertainment and financial
investing $30bn to produce gas from ser vices. The Group includes
the Krishna Godavari basin. Reliance Communications Ltd,
Reliance Infrastructure Ltd, Reliance
RIL plans to spend $12 billion on Capital Ltd, Reliance Natural
producing and transporting the gas Resources Ltd (RNRL) and Reliance
across the country while the state- Power Ltd.
owned ONGC has announced a $3
billion investment. In a family pact vetted and
supervised by the brothers' mother in
The basin is likely to produce 120 2005, Mukesh Ambani's Reliance
million cubic metres per day (mcmd) Industries Limited (RIL) was to
of gas. supply 28 million cubic meters of gas
a day at $2.34 per million units
This gas is four times more than , (MMBTU) to Anil Ambani's Reliance
30% cheaper than the gas India Natural Resources Limited (RNRL)
would have received through the for 17 years.
much-delayed Iran-Pakistan-India
pipeline. The above price of $2.34 per
million British Thermal Units was
Once the entire gas comes on 44% lower than $4.20 per million
stream, it will have a huge impact on units set by the government in 2006
the country's fertiliser and power for all buyers of gas from the basin.
companies. Two Ambani brothers
had parted their ways exactly after 3 Anil Ambani has not accepted the
years. higher selling price set by the government, citing the 2005
agreement with his elder brother.
In 2003, NTPC invited global firms to bid to supply it gas for
its Kawas-Gandahar power plants for 17 years. RIL bid the July 2008: Reliance Communications calls off merger talks
lowest - $2.34 per mmbtu - and NTPC gave it a Letter of Intent with South Africa's MTN after Mukesh makes a claim on the
in June 2004. The ongoing dispute is based upon the contract of shares of Anil's telecom firm.
RIL-RNRL which was based on this rate since it was also signed
in the same time period. 15 June, 2009: RNRL won a case in the Bombay High Court,
asking his elder brother's company to honour the family
The only difference was that the RNRL contract was for 28 agreement. The Bombay high court has ruled that the family
mmscmd of gas while the NTPC one was for 12 mmscmd. MoU does not violate the PSC - that is, the ministry could not
(MMSCMD=Million Metric Standard Cubic Meter per Day) cancel the RIL-RNRL agreement.

RIL later objected to some of the clauses in the NTPC June 19, 2009: Reliance Natural files caveat in apex court
tender and refused to supply the gas. NTPC went to court on gas price issue after Bombay High Court order upholds its
against RIL. RNRL argues that since the contract was based on position on the gas price in its dispute with Reliance
the NTPC one, it was an arms-length one. Industries

06 PT’s PrepTalk – June 2010


July 5, 2009: Reliance Industries makes government a party
in its petition

July 7, 2009: Apex court issues notice to Reliance Industries,


RNRL and the government on cross-appeals

July 17, 2009: Government asks court to make it a respondent

July 18, 2009: The government files a petition wanting


Ambani family pact that deals with gas supplies to be declared
null and void

July 19, 2009: Government says gas is its property

July 20, 2009: Supreme Court calls for counter-replies and


ANIL AMBANI* MUKESH AMBANI*
fixes Sep 1 as date of hearing
Financial services Oil, gas, petrochemicals
July 22, 2009: Prime Minister's Office wants oil ministry to
Telecom Textile explain why it has been accused by Anil Ambani group of siding
with Reliance Industries over gas dispute
Infrastructure Retail

Media & DTH SEZs, ports & gas terminals July 28-Aug 3, 2009: Anil Ambani lashes out at oil ministry for
allegedly favouring his elder brother. Matter also rocks
Power Life sciences & biotechnology parliament, where Samajwadi Party leader Mulayam Singh Yadav
demands resignation of Petroleum Minister Murli Deora. But
Healthcare IPL Deora says gas does not belong to either Mukesh or Ambani, but
*Combined mkt cap Rs 1,08,792 cr *Combined mkt cap Rs 3,26,717 cr
(*as on May 21, 2010)
the government.
POSSIBLE OVERLAPS IN FUTURE
Aug 4, 2009: Oil regulator rejects Anil Ambani group's
Telecom charges of acts of omission and commission in allowing capital
expenditure of KGD6 gas to be hiked from $2.4 billion to $8.8
Financial services billion.
Power (non-gas)
Aug 28, 2009: Reliance Industries says NTPC was told gas
Infrastructure price of $2.34 was subject to government approval. Apex court
lists hearing for Oct 20
Media & Entertainment
Sep 14, 2009: Reliance Natural accuses Reliance Industries
June 23, 2009: Reliance Natural invites Reliance Industries of charging illegal marketing margins
for talks on high court judgement, but Reliance Industries says it
is studying the implication. Sep 15, 2009: Anil Ambani Group asks apex Court to make
NTPC a party to dispute
July 1, 2009: Reliance Industries says it will appeal to the
Supreme Court against high court ruling. Says supplies to Sep 24, 2009: NTPC signs pact with Reliance Industries to
Reliance Industries not possible at $2.34 per unit, as it is bound buy a part of natural gas, other than the quantity under dispute,
by government price of $4.20 per unit at $4.20 per unit.

July 3, 2009: Reliance Natural moves Supreme Court to make Oct 5, 2009: Reliance Industries says chairman Mukesh had
gas supply from KGD6 binding on Reliance Industries. signed pact on natural gas with Anil Ambani Group in personal
capacity without approval from other board members
July 4, 2009: RIL moves apex court challenging high court
orders saying the verdict erred in deciding the three terms - Oct 9, 2009: Anil Ambani threatens to sue oil regulator saying
quantity, tenure and price of gas supply he made false allegations against his group

PT’s PrepTalk – June 2010 07


Oct 11, 2009: Anil Ambani says two brothers can still sit December 18, 2009: Court finishes hearing the case and
across the table and resolve matters amicably, but Reliance reserves judgement.
Industries says only court can settle matters now.
May 7, 2010: The Supreme Court of India rules in favour of
Oct 20, 2009: A three-member bench, including Chief Mukesh Ambani after a split vote. The apex court has rules that
Justice K.G. Balakrishnan, of the Supreme Court begins hearing the family Memorandum of Understanding (MoU) between the
arguments in the case. two brothers is not binding and asks the brothers to renegotiate
the deal within 6 weeks.
November 4, 2009: The hearing is disrupted when a judge
withdraws, citing potential conflict of interest as his daughter It has also categorically said that as far as the authority over
worked at a firm that was a consultant to Reliance Industries.
natural gas is concerned, the government remains its sole
owner.
November 5, 2009: A new three-member bench that also
includes the Chief Justice begins hearing arguments from
May 23: Both brothers agree to cancel all existing non-
scratch.
compete pacts which the groups had signed in 2006. They enter
November 5,- December 18, 2009: Reliance Industries into a new and simpler non-compete pact only for gas-based
argues a private deal between the Ambani brothers cannot take power generation.
precedence over government policy, which determines who can
receive gas and at what price. It took a gentle nudge from the Supreme Court to signal an
end to the most publicised corporate war in India. Five years
Reliance Natural, which claims otherwise, says the after going public with ownership issues and more in India's
government will not suffer a loss even if Reliance Industries sells richest family, the Ambani brothers today took a big step towards
it the gas at the disputed price. The government stresses it does reconciliation of their feud that had made headlines and dragged
not favour either side in the dispute. in several government functionaries.

Firefox 4: fast, powerful, and empowering


The next version of the Firefox browser, set for release by the end of the year, will pare down the software's menus and certain
user options while giving Web surfers more control over privacy.

Firefox 4 promises to let users better control relationships with websites by describing more simply what information is
gathered by cookies, which are files that store data on website visits.

In Firefox's current version, determining which websites are peering into users' Internet habits is a complex process involving
many menus and submenus. With the change, users will be able to see from a single menu what information websites are
gathering. Users will then have the option of deciding which cookies to allow and which to disable.

But Mozilla, the browser's creator, will also take away some user controls to make Firefox sleeker. That means taking out
buttons and menus that Mozilla says few people use anyway. Mozilla says the change won't just make websites load faster, it will
make them feel faster.

"The simpler an interface looks, the faster it will seem," Mike Beltzner, Firefox Director of development, said

Firefox said the browser will be made more stable, by requiring fewer add-on programs for additional functionality. The
program will use the new Web programming language, HTML5, which will allow videos and other multimedia content to play in
the browser without needing companion software such as Adobe System Inc.'s Flash.

Firefox is second to Microsoft Corp.'s market-dominant Internet Explorer browser in usage. Microsoft is also working on
an update. Internet Explorer 9, Microsoft's latest browser offering, will also support HTML5. An early version is already out for
testing.

08 PT’s PrepTalk – June 2010


Cover story

FIFA World Cup 2010


11 June - 11 July 2010

WHATISFIFA?
Federation International de Football
Association, commonly known as FIFA is
the international governing body of
association of football. FIFA is an
association established under the Laws of
Switzerland. Its headquarters are located in
Zürich, Switzerland, and its current
President is Sepp Blatter. FIFA is
responsible for the organization and
governance of football's major international
tournaments, most notably the FIFA World
Cup, held since 1930.

FIFA has 208 member associations,


which is 16 more than the United Nations
and three more than the International Olympic Committee, FIFA, however, foundered during World War I, with many
though five fewer than the International Association of Athletics players sent off to war and the possibility of travel for
Federation. international fixtures severely limited. Post-war, following the
death of Woolfall, the organisation was run by Dutchman Carl
The need for a single body to oversee the worldwide game Hirschmann. It was saved from extinction, but at the cost of the
became apparent at the beginning of the 20th century with the withdrawal of the Home Nations (of the United Kingdom), who
increasing popularity of international fixtures. FIFA was cited an unwillingness to participate in international
founded in Paris on 21 May 1904; the French name and acronym competitions with their recent World War enemies. The Home
remain, even outside French-speaking countries. Its first Nations later resumed their membership.
President was Robert Guérin.
FIFA's supreme body is the FIFA Congress, an assembly
FIFA presided over its first international competition in made up of representatives from each affiliated member
1906, but this met with little approval or success. This, in association. The Congress assembles in ordinary session once
combination with economic factors, led to the swift replacement every year and, additionally, extraordinary sessions have been
of Guérin with Daniel Burley Woolfall from England, by now a held once a year since 1998. Only the Congress can pass changes
member association. The next tournament staged, the football to FIFA's statutes.
competition for the 1908 Olympics in London was more
successful, despite the presence of professional footballers, Congress elects the President of FIFA, its General Secretary
contrary to the founding principles of FIFA. and the other members of FIFA's Executive Committee. The
President and General Secretary are the main officeholders of
Membership of FIFA expanded beyond Europe with the FIFA, and are in charge of its daily administration, carried out by
application of South Africa in 1908, Argentina and Chile in 1912, the General Secretariat, with its staff of approximately 280
and Canada and the United States in 1913. members.

PT’s PrepTalk – June 2010 09


FIFA's Executive Committee, chaired by the President, is
the main decision-making body of the organization in the
intervals of Congress. FIFA's worldwide organisational
structure also consists of several other bodies, under authority
of the Executive Committee or created by Congress as standing
committees. Among those bodies are the Finance Committee,
the Disciplinary Committee, the Referees Committee, etc.

Apart from its worldwide institutions (presidency, Executive


Committee, Congress, etc.) there are confederations
recognised by FIFA which oversee the game in the different
continents and regions of the world. National associations, and
not the continental confederations, are members of FIFA.

The continental confederations are provided for in FIFA's


statutes. National associations must claim membership to both
FIFA and the confederation in which their nation is teams; Curiously, FIFA has more member states than the
geographically resident for their teams to qualify for entry to United Nations, as FIFA recognises several non-sovereign
FIFA's competitions (with a few geographic exceptions listed entities as distinct nations, most notably the four Home Nations
below): within the United Kingdom. The FIFA World Rankings are
r AFC – Asian Football Confederation in Asia and Australia
updated monthly and rank each team based on their
performance in international competitions, qualifiers, and
r CAF – Confédération Africaine de Football in Africa
friendly matches. There is also a world ranking for women's
football, updated four times a year.
r CONCACAF – Confederation of North, Central American
RECOGNITIONSANDAWARDS
and Caribbean Association Football in North America and
Central America
FIFA awards, each year, the title of FIFA World Player of the
r CONMEBOL – Confederación Sudamericana de Fútbol in Year to the top men's and women's players of the year, as part of
its annual awards ceremony which also recognises team and
South America
international football achievements.
r OFC – Oceania Football Confederation in Oceania
In 1994, FIFA published the FIFA World Cup All-Time
r UEFA – Union of European Football Associations in Team.
Europe.
In 2002, FIFA announced the FIFA Dream Team, an all-time
Nations straddling the traditional boundary between Europe all-star team chosen by fans in a poll.
and Asia have generally had their choice of confederation. As a
result, a number of transcontinental nations including Russia, As part of its centennial celebrations in 2004, FIFA organised
Turkey, Cyprus, Armenia, Azerbaijan and Georgia have chosen a "Match of the Century" between France and Brazil

FIFAANTHEM
to become part of UEFA despite the bulk of their land area being
in Asia. Israel, although lying entirely within Asia, joined UEFA
in 1994, after decades of its football teams being boycotted by
many AFC countries. Kazakhstan moved from the AFC to UEFA Since the 1994 FIFA World Cup, like the UEFA Champions
in 2002. Australia was the latest to move from the OFC to AFC in League, FIFA has adopted an anthem composed by the German
January 2006. composer Franz Lambert. The FIFA Anthem is played at the
beginning of official FIFA sanctioned matches and tournaments
Guyana and Suriname have always been CONCACAF such as international friendlies, the FIFA World Cup, FIFA
members despite being South American countries. Women's World Cup, FIFA U-20 World Cup, FIFA U-17 World
Cup, FIFA U-20 Women's World Cup, FIFA Women's U-17
In total, FIFA recognises 208 national associations and their World Cup, FIFA Futsal World Cup, FIFA Beach Soccer World
associated men's national teams as well as 129 women's national Cup, and FIFA Club World Cup.

10 PT’s PrepTalk – June 2010


FIFAWORLDCUP2010 billion going towards revamping of stadiums and 13.2 billion on
transport infrastructure. The funds came from the national
The 2010 FIFA World Cup will be the 19th FIFA World Cup, budget and helped to push the fiscal deficit in 2009-10 to 6.7% of
the premier international football tournament. It is scheduled to GDP. General government borrowing increased to 184.3 billion
take place between 11 June and 11 July 2010 in South Africa. The rand in 2009-10 from 40.2 billion in 2008-09. The treasury's
2010 FIFA World Cup would be the culmination of a expenditure excluded money spent sprucing up airports.
qualification process that began in August 2007 and involved 204 Airport Company South Africa has spent about 17 billion rand
of the 208 FIFA national teams. As such, it matches the 2008 since 2006 upgrading airports in Cape Town and Johannesburg
Summer Olympics as the sports event with the most competing and building a new one in Durban. The spending also does not
nations. include the 25 billion rand spent on building the country's
Gautrain rapid rail network which will link the airport to
This is the first time that the tournament has been hosted by Johannesburg and its financial hub Sandton and later
an African nation, after South Africa defeated Morocco and Johannesburg and the capital Pretoria.
Egypt in an all-African bidding process. This decision left the
Oceania Football Confederation as the only confederation yet to
host the FIFA World Cup. Italy is the defending champion, after MARKETIMPACT
winning the 2006 FIFA World Cup in Germany. The draw
for the finals took place on 4 December, 2009 in Cape Increased foreign exchange flows are seen
Town. supporting the rand but only slightly. The
tournament comes as international markets are
Africa was chosen as the host for the 2010 jittery due to European debt problems so any
World Cup as part of a policy to rotate the event boost from increased foreign exchange
among football confederations (which was later earnings will be overshadowed by worries
abandoned in October 2007). about the global economic recovery. On the
local bourse, wine, spirits and beer companies
During 2006 and 2007, rumours circulated in such as Distel and SABMiller outperformed
various news sources that the 2010 World Cup the All-share index over the past year partly in
could be moved to another country. Some people, anticipation of a World Cup boost. Imperial,
including Franz Beckenbauer, Horst R. Schmidt and, which has a car rental business, has seen its price go
reportedly, some FIFA executives, expressed concern over up by 60.5% in that period.

TOURISTNUMBERS,SPEND
the planning, organisation, and pace of South Africa's
preparations. However, FIFA officials repeatedly expressed their
confidence in South Africa as host, stating that a contingency
plan existed only to cover natural catastrophes, as had been in South Africa expects about 3,70,000 foreign visitors during
place at previous FIFA World Cups. the event, lower than initial estimates of 4,50,000. Visitors
should spend about 8.8 billion rand during the tournament and -
ECONOMICGROWTHBOOST - together with spending by soccer's world governing body Fifa,
other officials and teams – the economy will receive a 13 billion
The government has said the World Cup should add about rand cash injection, accounting firm Grant Thornton wrote in a
0.5% to GDP this year. Analysts are not so optimistic. Forecasts study.

JOBCREATION
in a Reuters poll in May ranged from 0.1 to 0.7%, with a median
of 0.3. The treasury has said growth this year will likely be above
the 2.3% it forecast in February and closer to 3% after last year's
1.8% contraction. The tourism sector is expected to enjoy a Construction ahead of the tournament created thousands of
boost from the tournament for years to come. During the rugby jobs, most of which disappeared as the preparations wound up.
World Cup in 1995 tourism numbers shot up 60%, increasing by Employment in the sector fell 9.3% to 1.085 million in the first
13 and 7% respectively in the following two years. quarter of 2010, compared with the same period last year.

GOVERNMENTSPENDINGFOREVENT QUALIFICATION
The government has spent about 40 billion rand ($5.17 As the host nation, South Africa qualified automatically for
billion) since 2006 – 07 on World Cup-related projects, with 11.7 the tournament. Nonetheless South Africa participated in World

PT’s PrepTalk – June 2010 11


Cup qualifiers because the CAF qualifiers also served as the in the CONMEBOL – CONCACAF playoff, whilst Egypt and
qualifying tournament for the 2010 African Cup of Nations. Algeria's final match was surrounded by reports of crowd
They were the first host since 1934 to participate in preliminary trouble.
qualifying. As happened in the previous tournament, the
defending champions were not given an automatic berth, and In response to the incidents during qualification, and to a
Italy had to participate in qualification. match fixing controversy, on 2 December 2009 FIFA called for an
extraordinary general meeting of their Executive Committee.
The qualification draw for the 2010 World Cup was held in After the meeting, FIFA announced that they would be setting
Durban, South Africa, on 25 November, 2007. up an inquiry into technology and extra officials in the game, but
they did not announce the widely-expected move of fast-
FIFAWORLDCUP2010GROUPS tracking the introduction of goal-line referee's assistants,
already being trialled in the Europa League, and instead restated
32 teams qualified for the final tournament. For the group that the competition in South Africa would be officiated as
matches, all the 32 teams participating in the 2010 FIFA world before, with just one referee, two assistants, and a fourth official.
cup have been grouped into eight groups (A,B,C,D,E,F,G,H).
On the subject of fair play, FIFA President, Sepp Blatter said,
Group A : South Africa, Mexico, Uruguay and France. “I appeal to all the players and coaches to observe this fair play. In
Group B: Argentina, Nigeria, Korea Republic, Greece. 2010 we want to prove that football is more than just kicking a
Group C: England, USA, Algeria and Slovenia. ball but has social and cultural values.....So we ask the players
Group D: Germany, Australia, Serbia and Ghana. 'please observe fair play' so that they will be an example to the
Group E: Netherlands, Denmark, Japan and Cameroon. rest of the world.”

PREPARATIONS
Group F: Italy, Paraguay, New Zealand and Slovakia
Group G: Brazil, Korea DPR, Côte d'Ivoire and Portugal
Group H: Spain, Switzerland, Honduras and Chile.
The Lukasrand Tower in Pretoria
This is the first World Cup that does sports a football which is appropriate in
not include any teams that are qualifying view of the world cup hosted in the
for the first time, although two of the country.
qualifiers (Slovakia and Serbia) have
previously appeared only as parts of Five new stadiums have been built for
former competing nations. Slovakia was the tournament, and five of the existing
previously part of Czechoslovakia, and venues are to be upgraded. Construction
Serbia has competed as part of Yugoslavia costs are expected to be Rand 8.4bn.
and Serbia and Montenegro. In both
cases FIFA considers these teams to have In addition to the stadiums being
retained the earlier nations' records. built and upgraded, South Africa has
planned to improve its current public
Controversy surrounded final transport infrastructure within the
qualification matches played between France and the Republic various cities, with projects such as the Gautrain and the new
of Ireland, Costa Rica and Uruguay and Egypt and Algeria in Bus Rapid Transit system (BRT) titled Rea Vaya.
November 2009.
The country has implemented special measures to ensure
In the second leg of the play-off between France and the the safety and security of local and international tourists
Republic of Ireland, French captain Thierry Henry, unseen by attending the matches in accordance with standard FIFA
the referee, illegally handled the ball in the lead up to the requirements, including a temporary restriction of flight
winning goal, which saw France make the final 32 teams ahead of operation in the airspace surrounding the stadiums.
Ireland. The incident spurred widespread debate on how
matches should be refereed at the highest level. FIFA rejected a The readiness of this African nation to host one of the biggest
request from the Football Association of Ireland to replay the events in a sports that is worshiped by millions has received
match, whilst a widely reported later request by Ireland to be positive response from FIFA. FIFA has rated the readiness of
included as an unprecedented 33rd World Cup entrant was later South Africa at eight on a scale of 10 with the hope that they would
withdrawn. Costa Rica complained over Uruguay's winning goal be completely ready before the matches actually start.

12 PT’s PrepTalk – June 2010


PRIZEMONEYANDCLUBPAYMENTS Cup.They have gained a lot of publicity for their efforts, even in
The total prize money on offer for the tournament was the international media. Abahlali baseMjondolo have threatened
confirmed by FIFA as $420 million, a 60 percent increase on the to build shacks outside the Cape Town stadium to draw
2006 tournament. Before the tournament, each participating attention to their situation.
team would receive $1 million, for preparation costs. Once at the
tournament, teams exiting at the group stage would receive $8 Another prominent controversy surrounding preparations
million. Thereafter, the prize money would be distributed as for the World Cup is the N2 Gateway housing project in Cape
follows: Town, which plans to remove over 20,000 residents from the Joe
Slovo Informal Settlement along the busy N2 Freeway and build
Ø $9 million - Round of 16 rental flats and bond-houses in its place in time for the 2010
Ø $18 million - Quarter-finals World Cup. The residents would be moved to the poverty
Ø $20 million - Semi-finals stricken Delft township on the outskirts of the city and out of
Ø $24 million - Runners up sight from the N2 Freeway. There has been particular concern
Ø $30 million - Winners about forced removals to the Blikkiesdorp camp in Delft and that
in Durban, children are being forcibly removed from the city
In a first for the World Cup, there would also be payments centre.
made by FIFA to the domestic clubs of the players representing
their national teams at the tournament. This would see a total of In July 2009, South Africa was
€26 million being paid to domestic clubs, amounting to just over hit with rolling protests by poor
€1,000 per player per day. communities who demanded
access to basic services, jobs,
This was the result of an agreement reached in 2008 between adequate housing and the
FIFA and European clubs to disband the G-14 group and drop democratisation of ser vice
their claims for compensation dating back to 2005 over the delivery. These protests have
financial cost of injuries sustained to their players while on been linked to the World Cup as
international duty, such as that from Belgian club Charleroi S.C. protesters complain that public
for injury to Morroco's Abdelmajid Oulmers in a friendly game funds are being diverted away
in 2004, and from English club Newcastle United for an injury to from social issues to build
England's Michael Owen in the 2006 World Cup. stadiums and upgrade airports.
Fears have been expressed that
OFFICIALSONG the growing protests by shack dwellers could result in the
tournament being disrupted. Some grassroots social
The official song of the FIFA world cup "Waka Waka" would movements have called for a boycott of the event.

HUMANRIGHTS
be presented by the Colombian singer Shakira and the band
Freshlyground from South Africa, and would be sung in both
English and Spanish. The song is based upon a traditional
African soldiers' song named Zangalewa. Shakira and In April 2010, the Swiss Labour Assistance (SLA), launched
Freshlyground are the performers of the song both during the a petition to FIFA's President Joseph Blatter. The petition asks
pre-tournament Kick-Off concert in Soweto on 10 June as well FIFA to actively engage against exploitation and the violation of
as the final ceremony on 11 July. human rights in the context of FIFA World Cups. The petition
will be handed over in June 2010.
CONTROVERSIES There have been claims that the police have implemented a
As with many 'hallmark events' throughout the world, the de facto state of emergency by banning protests during the
2010 FIFA World Cup has been connected to evictions which event.

CRIMEANDSECURITY
many claim are meant to 'beautify the city', impress visiting
tourists, and hide shackdwellers. On 14 May 2009, the Durban-
based shack-dwellers' movement Abahlali baseMjondolo took
the KwaZulu-Natal government to court over their controversial Tournament organiser, Danny Jordaan dismissed concerns
Elimination and Prevention of Re-Emergence of Slums Act, that the terrorist attack on the Togo national team which took
meant to eliminate slums in South Africa and put homeless place in Angola in January 2010, had any relevance to the security
shackdwellers in transit camps in time for the 2010 World arrangements for the World Cup.

PT’s PrepTalk – June 2010 13


NON-FIFAEVENTS Starhub joined together to bid for the broadcast rights in late
2009, they were reportedly charged an initial SGD$40 million
(about USD$30 million). When the Singapore TV operators
In November 2009, it was reported that a rugby Test match
refused to pay the initial sum quoted by FIFA, and as time
between the Springboks and France scheduled to take place in
passed, Singapore was faced with the prospect of being one of
Cape Town on 12 June 2010 would be moved to Europe due to
the few countries not to get match broadcasts from the 2010
FIFA regulations banning other sport events in host cities
FIFA World Cup.
during the time of the World Cup. After negotiations between
the South African Rugby Union and members of the local
With only about a month left before the tournament, FIFA
organising committee, it was announced that the Test will be
finally relented and reportedly reduced the fee to SGD$21
allowed to take place in Cape Town on the originally scheduled
million (USD$15 million), which was then accepted by the
date because no World Cup match is to be played in Cape Town
Singapore TV operators. This reduced fee was still significantly
on that day, and the Test will be played at Newlands, which is not
higher than the fee that FIFA charged Starhub for the exclusive
a World Cup venue.
rights to broadcast the 2006 FIFA World Cup finals tournament

FIFATRADEMARKS in Germany which was reported to be SGD$15 million (US$11


million).

The South African low-fare airline Kulula.com were ordered This increased fee for the 2010 World Cup tournament
by FIFA to withdraw an advertisement that it claimed infringed broadcast rights resulted in the Singapore TV operators passing
their trademarks. The advert, titled "The unofficial carrier of on the cost to their subscribers who were then charged a special
the you-know-what", features soccer balls, vuvuzelas and the fee of SGD$94 (US$68) in addition to existing contracts, to
National Flag of South Africa which FIFA claims when used in watch the tournament's games. This high additional fee was the
conjunction with each other constitutes an infringement (of its most expensive in the region and angered Singapore football
trademarks). Kulula.com disputed FIFA's claim, but later fans who felt it was unfair when compared to countries in the
announced that they would withdraw the specific advert whilst region that will either be broadcasting the matches free of
continuing with the advertisement campaign. charge as in the case of Indonesia and Thailand; or at
significantly lower viewing fees at US$21 as in Malaysia and
MASCOT US$38 in Hong Kong. This fee is also almost four times the
SGD$25 (USD$18) special fee that Starhub charged its
The FIFA World Cup tournament, subscribers for viewing the 2006 FIFA World Cup finals matches
from the year 1966, has always had a in Germany. As a result, many fans decided to protest against the
'Mascot' representing it. From a lion to a increased fees with a mass boycott of the 2010 FIFA World Cup
dog to an orange, the FIFA mascots have broadcast service by both operators.
always been a part of FIFA World Cup
competitions. FILMING
Zakumi, the leopard is the 'Official Sony technology will be used to film the tournament.
Mascot of the 2010 World Cup'. He was 'born' on 16 June, 1994 According to FIFA up to 25 of the matches will be captured using
and his name 'Zakumi' actually has meaning to it. 'ZA' is the ISO 3D cameras. Footage will be captured in 3D through Sony's
3166-1 alpha-2 code for South Africa and 'kumi' literally proprietary multi-image MPE-200 processors, which will be
translates to ten in many South African languages. Zakumi has housed in specially designed 3D outside broadcast trucks. It will
green hair and wears a white t-shirt that says South Africa 2010 be supplying its flagship HDC-1500 cameras as well as its new
on it; he also sports a pair of green football shorts. Zakumi's gold HDC-P1 unit, a compact, point-of-view (POV)-type camera
and green colors stand to represent the colors of the South with a 2/3-inch lens. The 3D games will be produced for FIFA by
African national football team. Host Broadcast Services.

BROADCASTRIGHTSFEESISSUEINSINGAPORE CONCLUSION
In Singapore, FIFA's broadcast rights fees for the 2010 FIFA FIFA 2010 will be a highly watched event that would not only
World Cup finals tournament have been described as be eventful but could be good trendsetter for future sporting
"exorbitant", with the organization having changed prices events that promise to be spectacular with more countries of the
according to what it perceived the country's TV operators were world taking part and individual players carving out a niche for
willing to pay. When Singapore TV operators SingTel and themselves.

14 PT’s PrepTalk – June 2010


Current events

India
158 KILLED IN AI PLANE CRASH Family and friends waiting to welcome their dear ones were
shocked into silence when they heard the thud as the plane
As many as 158 people died when an Air India Express landed but, instead of coming to a stop, saw it overshoot the
aircraft from Dubai to Mangalore runway and disappear from view in a ball of fire. Sources said one
overshot the runway upon landing, of the aircraft’s wings hit a concrete structure containing
went down a ravine and burst into navigation equipment at the end of the runway as it careened
flames in the worst air disaster in over the edge.
the country in a decade. Among
the victims were 19 children and Pradeep, a passenger, said he jumped off the plane when its
four infants. wing was lopped off at the end of the runway while seven others
said they jumped or were thrown clear after the plane crashed
Eight people jumped out of the plane which broke open into the valley. All 158 bodies, many charred beyond recognition,
when it hit the crash barrier at the runway. In New Delhi, the were pulled from the debris and taken to the Government
Civil Aviation Minister, Mr Praful Patel, met the Prime Minister, Wenlock Hospital.
Dr Manmohan Singh, and offered to resign. Dr Singh turned
down the offer. tututu

Air India Express Flight IX 812 landed at around 6.05 am on AGNI-5 ICBM TO BE A REALITY NEXT YEAR: DRDO CHIEF
May 22, and appeared to skid off the runway which sits upon a
‘tabletop’ on the Bajpe-Kenjar hill, about 20 km from the city, India is on course to test fire the
and plunged into the forest some 100 metres below, the AI over 5,000 km range nuclear-capable
Director, Mr Anup Srivastava said. Agni-5 missile next year and a
successful mission would put the
The wind was calm at the time of landing and visibility was country in an elite club of nations with
placed at 6 km. There were different reports on whether there Inter-Continental Ballistic Missile
was rain at the time of landing. (ICBM) capabilities.

The civil aviation minister, Mr Praful Patel, said the plane’s "Work is progressing satisfactorily
commander, Capt. Zlatko Glusica, a British national of Serbian- in the development of Agni-5, which is
origin, had overshot the runway by 2,000 metres. Capt. Glusica, expected to become a reality next year.
53, had over 10,000 hours of flying and had carried out 19 With this, DRDO would have given
landings at the Mangalore airport during the last two years, India a comprehensive indigenous
officials said. strategic capability, available with only a few nations of the
world," DRDO Chief V K Saraswat said at the National
The co-pilot, Capt. H.S. Ahluwalia, was based in Mangalore Technology Day awards function in New Delhi. Agni-5 is the
and had 3,650 hours of flying experience, of which 3,350 hours country's most ambitious strategic missile.
were on Boeing 737s. He had landed at Mangalore more than 60
times. The pilots had last flown into Mangalore on May 17. Agni-5 will be the first canistered road-mobile ballistic
missile – with a range of over 5,000 km – in the country's military
An Air India official said the aircraft, a Boeing 737-8000, was arsenal, bringing possible targets in the whole of China and
two-and-a-half-year old and was airworthy. The runway had Pakistan within striking range. The missile is likely to be tested
seen 32,000 landings since 2006. early next year.

PT’s PrepTalk – June 2010 15


Missiles which are capable of being launched from canisters While 1.13 lakh girls appeared in the test, 1476 qualified.
can be fired from multiple platforms and are easily transportable Aakanksha Tushar Sarda emerged the topper among girls with
by road. As a result, Agni-5 can reach every continent except an All India Rank of 18.
North and South America from various places across India.
About 554 candidates in Hindi medium have qualified for
Commenting on the Indian missile programme, Saraswat the entrance test which is a three fold rise over last year's 184.
said, “the success of Agni-3 and other tests have confirmed
India's strategic deterrence capability, which could not have tututu
been possible without the preceding developmental efforts in
these programmes." 34TH NATIONAL GAMES IN JHARKHAND FROM
Agni-5 is similar to the Dongfeng-31A that created ripples
9TH-22ND DECEMBER
during China's National Day Military Parade in Beijing on
After five postponements, the
October 1 last. India's current long-range missile, the Agni-3, a
non-canisterised missile, can only be moved with difficulty from Indian Olympic Association said the
one place to another. 34th National Games will be held from
9th-22nd December in Jharkhand.
The Agni-5 is specially tailored for road-mobility, according
to defence scientists. The Games, originally scheduled to
be held in 2007, were first postponed
With the canister having been successfully developed, all due to delay in infrastructure construction.
India's future land-based strategic missiles are expected to be
canisterised as well. After another three postponement due to one reason or the
other, the Games were slated to be held in November-
tututu December last year only to get postponed as the dates clashed
with the Assembly polls in the state.
13,104 CANDIDATES CLEAR IIT-JEE State capital Ranchi will host 24 disciplines, including
athletics, badminton, shooting and aquatics. Dhanbad and
A total of 13,104
Jamshedpur will stage six and four disciplines respectively, an
candidates cleared the
IOA release said.
prestigious IIT-Joint
Entrance Examination
tututu
2010 with Anumula
Jithendar Reddy from
Madras zone topping CBSE LAUNCHES CURRICULUM FOR SCHOOLS ABROAD
the test.
Giving an international face to Indian education, the Central
These students will Board for Secondary Education (CBSE) launched an upgraded
be eligible for admission in 15 IITs, ISM Dhanbad and IT-BHU. international syllabus for its schools abroad.
There are 9,509 seats in these institutions. Over 4.5 lakh
candidates had appeared in JEE-2010 which was conducted by The new curriculum, which focuses on the education needs
seven of the IITs on April 11. of Indian diaspora as well as local communities, was launched by
Human Resource Development Minister Kapil Sibal at Indian
The number of candidates who appeared in JEE-2010 is High School in Dubai, according to a official press release.
nearly 18.3 per cent more than that in the previous year. Reddy,
who appeared in JEE from IIT Madras Zone, topped this year's The curriculum which will be launched in 30 schools in nine
All India list of successful candidates, the IITs said in a release. countries aims at carrying forward the basic strength of the
Indian system of education and promoting critical and creative
The test was conducted in seven zones. The IIT Bombay skills of the students.
zone produced maximum number of successful candidates with
3145 students figuring in the merit list followed by IIT Madras Speaking at the function, Sibal emphasised the need for
(2619), IIT Delhi (2264), IIT Kharagpur (1481), IIT Kanpur quality education for all children, with learning being a
(1341), IIT Roorkee (1305) and IIT Guwahati (521). continuous and comprehensive process.

16 PT’s PrepTalk – June 2010


'We need a globalised community of children. I hope that it They also signed a pact on Scientific and Technological
would grow and provide an alternative international curriculum Cooperation, an Education Exchange Programme, an
to the students, both of the Indian diaspora and to local citizens Agreement on Exemption of Visas to Diplomatic Passport
in the countries,' he said. holders and a Programme of Cooperation in the fields of
Culture, Art, Mass Media and Sports.
The board aims to expand the curriculum to its other
schools abroad as well in a phased manner. “The two leaders agreed on the existence of significant
potential in terms of increasing trade volumes between the two
The syllabus has been designed keeping in view the countries,” a joint statement issued after the talks said.
foundations of the National Curricular Framework (NCF 2005)
and the experience gathered by the board over the last seven Singh and Berdimuhamedov agreed that the governments
decades in imparting effective learning to millions of learners, and the Chambers of Commerce and Industry need to take
many of whom are now global citizens. necessary measures to strengthen bilateral trade and economic
cooperation.
The earlier curriculum focused largely on issues related to
Indian interest which were proving a hurdle in expanding the A joint study by designated agencies of the two Governments
coverage to international students. and Chambers of Commerce and Industry was recommended
with a view to identifying measures, which would deepen
The CBSE at present has 74 schools abroad, 63 of them in economic engagement, the statement said.
Gulf countries alone.
The leaders expressed satisfaction on the ongoing
tututu discussions between the oil/natural gas companies of India and
Turkmenistan under the framework of the Joint Working Group
INDIA, TURKMENISTAN TO STEP UP ENGAGEMENT IN on Hydrocarbons and hoped this would create conditions
necessary for mutually beneficial cooperation in the
GAS SECTOR hydrocarbon sector of Turkmenistan.
India and energy-rich
It was agreed that the Ministers on both sides responsible for
Turkmenistan decided to step
oil and gas will take forward ideas for intensifying joint efforts in
up engagement in a number of
various projects in that sector.
areas, particularly trade and
hyrdrocarbons, and signed five
tututu
pacts, including one in the
economic field.
16-YR-OLD BOY IS THE YOUNGEST INDIAN TO SCALE
During the talks between EVEREST
Prime Minister Manmohan Singh and visiting Turkmenistan
President, Gurbanguly Berdimuhamedov, India proposed to Arjun Bajpayee a 16-year-old
conduct a feasibility study on setting up a gas-based fertilizer Delhi school boy, on May 22, had
plant in Turkmenistan and the latter agreed to take it forward. a brief tr yst with destiny
equalling the world record of
The leaders also hoped that discussions on the proposed being the youngest to step atop
Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline the world's highest peak 8,848
project would continue with a view to realising it early. Singh and metre Mt Everest, only to have
Berdimuhamedov agreed that terrorism was one of the main his feat overturned hours later
threats to security and sustainable development of countries of by a 13-year-old American.
the world and decided to cooperate against it.
Bajpayee, became the youngest Indian to climb Everest early
The Turkmenistan President condemned the Mumbai this morning via the traditional South Col route in Nepal. He
attacks. After the wide-ranging talks that covered bilateral equalled the record of a Nepalese Sherpa Temba Tsheri who also
matters and regional and international issues of mutual climbed the peak when he was sixteen. But a few hours later, a
concern, the two sides signed an agreement on Economic and 13-year-old Californian boy Jordan Romero broke his record by
Trade Cooperation which the two leaders hoped would pave the climbing the peak from the tough North Eastern ridge route in
way for enhanced economic engagement. Tibet.

PT’s PrepTalk – June 2010 17


The Californian is on a quest to climb all the highest peaks in While the MoC applies to all 38 districts in Bihar, the
the seven continents. The two youngsters could have had a tryst Foundation will initially start work in the nine districts of Patna,
atop the world's highest summit, but apparently missed each Banka, Khagaria, Begusarai, Gopalganj, Saharsa, Samastipur,
other by a whisker, as Bajpayee after a short stay atop made his and East and West Champaran.
way back for a descent.
tututu
Bajpayee climbed the peak in the company of Apa Sherpa 50,
who became the first man to climb the peak for the record 20th PRESIDENT'S RULE IMPOSED IN JHARKHAND
time. The world record for the highest number of climbs on
Everest also earlier stood in his name. President's rule was
imposed in Jharkhand on
Along with Bajpayee, also making it to the top was another June 1, two days after
Indian woman Mamta Sodha who reached the summit four Shibu Soren stepped
hours after the young Indian. down as Chief Minister
and none of the three
Earlier on May 17, two other Indian climbers had reached major political parties in
the summit. the state showing
willingness to form an
tututu alternate government.

BILL GATES SIGNS AGREEMENT WITH BIHAR TO BOOST The cabinet committee on political affairs chaired by Prime
HEALTH STANDARDS Minister Manmohan Singh met to approve the imposition of
President's rule and put the legislative assembly in suspended
In a move to bolster Bihar's public animation, official sources said. The decision came after
health standards, the State government Governor M.O.H. Farooq sent a report on the political situation
on May 12, signed a Memorandum of in the state to the union home ministry.
Cooperation (MoC) with the Bill and
Melinda Gates Foundation. Before sending the report, the governor summoned leaders
of the Bharatiya Janata Party (BJP), the Congress and the
Microsoft Chairman Bill Gates, Jharkhand Vikas Morcha-Prajatantrik (JVM-P) to see if they
who visited Bihar, signed the agreement in the presence of Chief could form a government after Soren stepped down. The three
Minister Nitish Kumar with the objective of accelerating State- parties told Farooq they did not have the numbers to form an
wide improvements in maternal, newborn and child health. alternative government.

Speaking to journalists at the event, Mr. Gates said Bihar The Jharkhand Mukti Morcha Chief Minister had asked
remained a priority as far as immunisation drives were for time till May 31 to prove majority after his government lost
concerned, and stressed on the reduction of infant mortality support of the BJP. The governor in his report had pointed out
rates, full immunisation coverage and breast feeding. that no party was willing to form the government and
suggested that the state be put under a short spell of
Terming the MoC a “milestone,” he expressed satisfaction President's rule.
at the progress in reducing the number of polio cases in the Kosi
belt areas, along with the strides being taken to improve The JMM-led five-month-old government was propped up
women's health in the State. by the BJP with 18 members, the All Jharkhand Students Union
(AJSU) with five legislators and the Janata Dal-United's two
The Bihar government and the Foundation anticipate the members. The Congress has 14 members, the JVM-P 11, and
programmes and activities governed by the memorandum to the Rashtriya Janata Dal five legislators. There are also five
have a five-year duration, from 2010 to 2015. Independents.

According to the MoC, the Foundation will provide The JMM-led government was reduced to minority after the
technical, management and program design support via NGOs BJP withdrew support on May 24. Jharkhand was plunged into
in the areas of maternal, neonatal and child health; maternal and political uncertainty when Soren voted against the BJP's cut
child nutrition; vaccine-preventable diseases, tuberculosis, motions in parliament to favour the Congress-led United
pneumonia and Kala-azar, among others. Progressive Alliance government.

18 PT’s PrepTalk – June 2010


PASSPORTS AT DOORSTEP IN 3 DAYS NOW An unreserved coach, the pantry car and luggage van also
derailed.
The govt is all set to issue regular
passports in three days and tatkal ones the A massive rescue and relief operation is continuing at the site
same day as Foreign Minister S M of railway mishap. Efforts are underway to clear the tracks and
Krishna will inaugurate four Passport restore normalcy on the route.
Seva Kendras which made this
possible in Karnataka as part of the The Railways have arranged a special 15 coach train for
Passport Seva Project. Kurla to accommodate the passengers of Howrah-Kurla
Gyaneshwari Express.
Government sources said 77
such centres will come up across the Anti-Maoist forces were at the spot and assisting the police
country by the end of this financial year. and rescue personnel in extricating the bodies from four badly
damaged sleeper coaches S-5, S-6, S-7 and S-8.
These centres will ensure issuance of
tatkal passports to applicants within hours. The state government would bear the treatment cost of the
injured passengers, Chief Minister's secretariat sources said.
The Passport Seva Project aims to issue passports in three
days as against the current 45 days. This is the second Maoist attack on civilians within a month.
Naxals had blown up a civilian bus in Dantewada district of
The contract for implementing the Rs 1,000 crore project Chhattisgarh on 17th May killing at least 36 people, including 12
was given to TCS in October 2008. Special Police Officers.

Passport Seva Project, based on a public-private partnership tututu


model, aims to provide passport-related services to citizens in a
speedy, convenient and transparent manner. PM'S COUNCIL ON CLIMATE CHANGE APPROVES
NATIONAL WATER MISSION
In the new system, soon after the application is submitted,
the verification list will be forwarded to the district police chief. The Prime Minister’s Council on
Climate Change, which met on May
The same day, it will be segregated station wise and will be 28, approved in principle the National
forwarded to the respective police stations. Water Mission and suggested that its
basic approach should be to make
tututu water conser vation a peoples’
movement in India.
GYANESHWARI DERAILMENT: DEATH TOLL MOUNTS TO 142
The Prime Minister chairing the
At least 142 passengers were Council highlighted the need to
killed and more than 250 injured create a general consciousness of the
in Mumbai-bound express train need to use water in the most
derailment by Maoists. sustainable manner. Ministers and other members of the
Council endorsed these views.
South Eastern Railway
spokesman Soumitra Majumdar It was stated that the first step in this direction would be to
said the train had 24 coaches. prepare a comprehensive water data base in the public domain
and assessing the impact of climate change on water.
After the explosion, 13 including 10 sleeper coaches,
derailed out of which five were hit by the goods train coming on It was also decided that water use efficiency should be raised
the opposite track. by 20% through the promotion of water- positive and water-
neutral technologies.
The incident occurred at 1:30 am on May 28, when the train
was running between Khemasoli and Sardiya stations, about 135 It was also felt that the Research and Development
km from Jhargram, South Eastern Railway officials said. requirements of the Mission should be focused upon.

PT’s PrepTalk – June 2010 19


The Ministers of Finance, Power, Water Resources, Non- The proposed deemed-to-be university will have to be
Conventional and Renewable Energy Resources, Urban registered either as a non-profit society under the Societies
Development, Housing and Urban Poverty Alleviation and Registration Act or as a non-profit trust under the Public Trust
Minister (Independent Charge) Environment and Forest and Act. The new guidelines also make it mandatory for an
Members of the Council were present in the meeting. institution to be in existence for at least 15 years before seeking
deemed university status, against the earlier 10 years, except
tututu under the category of ‘De-novo Institutions' or Innovative
Universities.
DEEMED UNIVERSITIES UNHAPPY WITH THE NEW UGC
To discourage single discipline colleges seeking deemed
GUIDELINES university status in order to escape regulatory councils, the
diversity of programmes has been insisted upon.
The new University Grants Commission
(UGC) guidelines, which bar the presidents
There is also emphasis on the quality of research activity,
o f s p o n s o r i n g o rg a n i s a t i o n s f ro m
publications and scholarly works of a high standard as evidenced
chancellorship of the deemed-to-be
by inclusions in an internationally recognised database.
universities established by them, have drawn
flak from educational trusts and societies.
tututu
As per the new UGC (Institutions
Deemed-to-be Universities) Regulations 2010, notified on May ATTEMPT ON LIFE OF RAVISHANKAR
21, the chancellor of a deemed university, appointed by the
sponsoring society or trust, will have to be an eminent An unidentified gunman made an attempt on the life of Sri
educationist or a distinguished public figure other than the Sri Ravishankar, Art of Living founder, on the premises of his
President of the sponsoring society or his/her relative. The ashram in Bangalore on May 30.
chancellor can be a member of neither the society nor the trust.
The assailant missed the target and
Conveying their reservations over this provision to Union injured one Vinay, who was standing near
Human Resource Development Minister Kapil Sibal, the the Guruji, police said. He was injured on
managements of several private institutions run by registered the thigh.
societies and trusts and granted the ‘deemed-to-be university'
status by the UGC pointed out that it would be a disincentive to The incident occurred after the
philanthropic groups interested in setting up new educational culmination of a mega Satsang on the Art
institutions when the country actually needed more. of Living campus on Kanakapura Road,
in which about 8,000 people participated.
Among those who have voiced their concern are the Birla Police said the Guruji was safe.
Institute of Technology and Sciences (BITS), Pilani; Manipal
University; Vellore Institute of Technology (VIT); and Symbiosis Police suspect the miscreant used a 0.22 revolver. However,
University, Pune – all deemed universities under Section 3 of the neither the weapon nor the assailant was traced until midnight.
UGC Act.
tututu
While Symbiosis University, a registered society, has written
to Mr. Sibal, VIT and Manipal University, both registered as BCCI NOT TO SEND CRICKET TEAMS TO ASIAN GAMES
trusts, and BITS, also a registered society, have conveyed their
reservations. The BCCI announced that it will not send either the men's
or the women's cricket team for this year's Asian Games in China
The new guidelines were issued with a view to plugging where the game makes its debut in its Twenty20 format.
deficiencies detected in the recent review of deemed
universities, which indicated that such institutions functioned The 16th edition of the Games will be held in Guangzhou,
as family ‘fiefdoms.' China from November 12 to 27 and the BCCI's decision means
loss of potential medals for the country. "We would not be able to
These institutions will not be granted the deemed university send our team, both men and women, for the Asian Games in
status under the fresh guidelines, while the position of pro- China because of international commitments," BCCI Chief
chancellors has been abolished. administrative officer Ratnakar Shetty told reporters.

20 PT’s PrepTalk – June 2010


"We have communicated the same to the Indian Olympic He said though the helicopter was bulky and heavy, it was a
Association," he said. Cricket's debut at the Games was versatile aircraft and the problems with its weight would be
approved at the Olympic Council of Asia's General Assembly in solved as years go by.
Kuwait recently and May 31, was the last date to confirm
participation. Mr Singh, in his address, said LCH was a "truly fine"
machine and the indigenous development of the helicopter had
Indian men's team will have a busy time in November as they both strategic and economic reasons.
host New Zealand for three Tests and five ODIs. This year's
Asian Games will feature 42 disciplines, 14 more than what takes He said it was important for a country to be independent of
place in the Olympics. Countries which are expected to send other nations when it comes to its defence production and
cricket teams for the Games include Pakistan, Sri Lanka and research and development capabilities.
Bangladesh.
Moreover, import of weapons led to job creation in other
tututu country, as India spent billions every year to equip its armed
forces.
INDIA'S COMBAT CHOPPER UNVEILED,
"I would like to set a deadline of four years from now for the
INDUCTION BY 2014 LCH to be inducted into the armed forces and I feel it is a
reasonable time frame for HAL to achieve," he added.
India's first indigenous
combat helicopter capable of
The HAL Chairman, Mr Ashok Nayak, said the defence PSU
participating in anti-Naxal and
had already bagged an order for supplying 65 of these combat
counter terrorism operations
helicopters to the IAF and the Army was showing keen interests
took to the skies, marking its
in buying a large number for its Army Aviation wing.
first official flight at the HAL
airport in Bangalore.
The IAF currently operates two squadrons of combat
helicopters comprising Russian-origin Mi-25s and Mi-35s.
The Light Combat Helicopter (LCH), designed and
developed indigenously by the Hindustan Aeronautics Limited
tututu
(HAL) in four years since the project began in 2006, is likely to
be ready for induction by the Army and Air Force before 2014.
PM NOMINATES NATIONAL ADVISORY COUNCIL
Witnessed by IAF Vice Chief Air Marshal, P.K. Barbora and the MEMBERS
defence production Secretary, Mr R.K. Singh, the 10-minute
flight display caught the attention of those present at the venue, The Prime Minister Dr. Manmohan Singh nominated
with the 5.8-tonne chopper showcasing its manoeuvrability and members for the second National Advisory Council (NAC) that
stability, including one of the most difficult moves – reverse slide. will set the Government's its social agenda.

The Defence Minister, Mr A.K. Antony, and the IAF Chief The list of the nominated persons includes Prof. M.S.
Air Chief Marshal P.V. Naik, did not attend the event in view of Swaminathan, MP, Dr. Ram Dayal Munda, MP, Prof. Narendra
the tragic air crash of a civilian flight in Mangalore which Jadhav, Member, Planning Commission, Prof. Pramod Tandon,
claimed 158 lives. VC, North-Eastern Hill University, Shillong, Dr. Jean Dreze, GB
Pant Social Science Institute, Allahabad, Aruna Roy, Mazdoor
"It is a red letter day for not only HAL, but the whole nation. I Kisan Shakti Sangatan, Rajsamand, Rajasthan, Madhav Gadgil,
am quite positive the aircraft will meet all IAF requirements in Agharkar Research Institute, Pune, N.C. Saxena, Dr. A.K. Shiv
this class of helicopters. The first display has been superb," Kumar, Advisor, UNICEF, New Delhi, Deep Joshi, Anu Aga,
Barbora said at a function soon after witnessing the maiden Thermax Ltd., Pune, Ms. Farah Naqvi, Harsh Mander, Ms Mirai
flight of the LCH. Chatterjee, Coordinator, SEWA, Ahmedabad.

Barbora said very few countries around the world had the NAC serves as an interface between the government and the
capability to indigenise a helicopter of this class, but at the same Congress party, which heads the ruling United Progressive
time cautioned HAL that it must learn from its past mistakes Alliance (UPA), and is chaired by Congress President and UPA
and not repeat them. chairperson Sonia Gandhi.

PT’s PrepTalk – June 2010 21


Current events

World
FIRST WOMAN PRIME MINISTER VOWS UNITY IN THAI FILM WINS CANNES TOP HONOUR
TRINIDAD AND TOBAGO
Thai film 'Uncle Boonmee
Kamla Persad-Bissessar of Who Can Recall His Past Lives',
Indian origin has been elected the a spooky tale of reincarnation by
first woman Prime Minister of 39-year-old Apichatpong
Trinidad and Tobago after her Weerasethakul, won the Best
five-party coalition swept to Picture Palm d'Or honour at the
victory in snap elections in the 63rd Cannes Film Festival in
former British colony. Cannes.

A subdued Prime Minister The win is being considered a real upset by the critics as the
Patrick Manning conceded jury ignored strong favourite Xavier Beauvois' 'Of Gods and
defeat, as TV counts showed Men', which details the massacre of Christian monks in a remote
almost the whole map of the Algerian village by Islamic extremists in the 1990s.
larger island of Trinidad turn the
coalition color of yellow, as well as With Franco-Algerian ties forever on tenterhooks, the movie
both seats in Tobago. provoked protests but managed to win festival's second most
important award, Grand Prize.
Indian music and traditional Caribbean beats rang out at a
victory party for Kamla Persad-Bissessar in the nation famed for A special jury award went to a third film, Chadian Director
its carnival. Mahamat-Saleh Haroun's Un homme qui crie (A Screaming
Man), a tragedy of parental betrayal.
Persad-Bissessar's campaign tapped into voters' worries about
rising gang violence and corruption scandals in Port of Spain. The Best Actor Palme was shared by Spain's Javier Bardem in
Alejandro Gonzalez Inarritu's 'Biutiful', and Italy's Elio
The 58-year-old also promised to increase pensions and Germano in 'Our Life' by Daniele Luchetti.
create a multi-million-dollar fund for sick children in a
campaign focused on change. The Tim Burton led jury, which also included India's
Shekhar Kapur, selected actress Juliette Binoche for the Best
Politics have long been divided along lines of Indian or Actress award. She plays an unhappy antiques dealer in Abbas
African descent, the two majority ethnic groups. Kiarostami's first film set outside his native Iran, 'Certified
Copy'.
Manning's People's National Movement (PNM) draws most
of its support from Afro-Trinidadians while the United National Former Bond villain Mathieu Amalric won the Best Director
Congress (UNC) of Persad-Bissessar largely relies on Indo- prize for his debut 'On Tour'.
Trinidadian backing.
The film is the story of an impresario touring round France
The new coalition includes the multi-racial Congress of the with a bunch of blowsy burlesque dancers. South Korea's
People, and the smaller National Joint Action Committee, the 'Poetry', by Lee Chang-Dong, an intensely poignant tale of a
Tobago Organization of the People and the Movement for Social grandmother and her angst over her grandson's crime, managed
Justice. to clinch the Best Screenplay Palm.

22 PT’s PrepTalk – June 2010


SIBAL LAUNCHES CBSE'S INTERNATIONAL development or deployment and to refrain from any action which
CURRICULUM would undermine regional peace and security," the final
document said.
The Central Board of Secondary
Education (CBSE) launched its self- The NPT Review Conference is held every five years to
designed international curriculum that assess the progress in reaching the goals set out in the 1970
aims to compete with its western treaty to disarm and stop the spread of nuclear weapons.
counterparts to produce the global
citizen. India, Pakistan and Israel did not attend the last meet and
have not signed the treaty. The last conference in 2005 had
Human Resource Development ended in failure. In a section on South Asia in the text, the UN
Minister, Kapil Sibal presided over the urged India and Pakistan to place all nuclear facilities under the
worldwide launch of the CBSE- safeguards of the International Atomic Energy Agency (IAEA).
international (CBSE-i) curriculum at Dubai's Indian High
School (IHS). The IHS will also become a global centre for "The conference urges both states to strengthen their non-
training teachers in the new curriculum under the guidelines of proliferation export control measures over technologies,
the CBSE. material and equipment that can be used for the production of
nuclear weapons and their delivery systems," it said.
He said that CBSE's initiative was futuristic, and was a
reflection of India's ambitious drive to establish a vast pool of JKJKJK
skilled manpower that could become a significant driver of the
global economy. BLAIR APPOINTED AS ‘GREEN ENERGY’ ADVISER
“It is important to realise that the global community is going Former British Prime Minister,
to need quality human resources. That will be provided only by Tony Blair will be a part-time adviser
countries where human resources are available,” Mr. Sibal said on green energy to US venture capital
in a conversation with media person. Because of its ample pool of firm Khosla Ventures.
young people, India has the advantage of having a “demographic
dividend,” in comparison to “demographic deficit” that was According to a BBC report, Blair
being felt in the rest of the world, he said. will provide strategic advice regarding

JKJKJK
investments in environmentally
friendly or helpful technologies.

UN ASKS INDIA, PAK, ISRAEL TO JOIN NPT, CTBT A company press release quoted Blair, as saying, "Solving the
climate crisis is more than just a political agenda item - it's an
In a departure from tradition of not singling out countries by urgent priority that requires innovation, creativity, and
name, the United Nations has asked India, Pakistan and Israel to ambition."
join NPT and CTBT without further delay and pre-conditions.
Company owner Vinod Khosla said, "Understanding local
The UN's call to the three countries to join Nuclear non- and global politics is now important for us, techie nerds. This is
Proliferation Treaty and Comprehensive Test Ban Treaty where our relationship with Tony Blair can really help us. Tony
(CTBT) came at the end of the month-long 2010 NPT review understands far better than I ever will the political and
conference in New York on May 28. geopolitical forces, as well as organization behaviour and social
behaviour and change."
While it was expected that the names would be dropped in
favour of a general statement calling for the universality of the Blair is currently the special UN envoy for the Middle East
NPT, the final document produced at the conference specifically quartet, which comprises the United Nations, Russia, the
called on India, Pakistan and Israel to accede to the treaty United States and the European Union. He also runs the Tony
without further delay and pre-conditions. Blair Faith Foundation.

The 189 delegates to the conference also called on the "three The business, that started in 2004, specializes in
states, operating unsafeguarded nuclear facilities to reverse environmentally friendly technologies. These include solar,
clearly and urgently any policies to pursue any nuclear weapon wind and nuclear energy projects.

PT’s PrepTalk – June 2010 23


KISHANGANGA: PAK TO MOVE INTERNATIONAL COURT Astronauts carried out three spacewalks to exchange the
electrical batteries of the ISS and to install a new antenna.
Pakistan has served a legal notice to
India concerning the long pending Since its first flight in October 1985, Atlantis has made 32
issue of construction of the flights and travelled more than 120 million miles.
Kishaganga dam over the river Indus.
Though NASA stressed throughout the mission that this
The notice has been sent by the flight was like any other, ground crew admitted before blast-off
Water and Power Ministr y in that it was a bittersweet time as the shuttle crew winds down.
consultation with the Indus Water commission with an aim to
bring the issue before the World Bank’s court of arbitration. Atlantis will not be mothballed right away, allowing NASA to
keep it on hand for a possible rescue mission.
The Indus Waters Treaty (IWT), inked between India and
Pakistan in 1960, provides appointment of a neutral expert by the “We'll turn this incredible machine over to the ground crew
World Bank as a last option to resolve water related issues to put it in the barn for a bit,” Commander Ken Ham said after
between both the countries. steering Atlantis to the runway.

Pakistan has been blaming India for an unsporting attitude The retirement of the shuttle fleet has long been planned,
during bilateral talks, which were initiated to resolve the but has come under increased scrutiny after President Barack
impending water dispute. Obama cancelled Bush-era plans to return to moon in a next
generation spacecraft.
Pakistan has been opposing the construction of the
Kishanganga hydropower project on the Ganga River in Obama has instead chosen to promote commercial
Kashmir, which is called Neelum upon entering Pakistan. spaceflight to nearby destinations and to focus NASA on long-
Pakistan has said that the diversion of the waters of the Neelum term goals, such as reaching Mars.

JKJKJK
is not allowed under the 1960 Indus Waters Treaty, and it will face
a 27 per cent water deficit, when the project gets completed.

It also claims that India has almost completed a 22-kilometre DAWOOD 3RD MOST WANTED
long tunnel to divert Kishanganga waters to Wullar Lake in
Jammu and Kashmir. Mafia and India’s most wanted
fugitive Dawood Ibrahim, mastermind of
JKJKJK the 1993 Mumbai bombings, figures
third on the Forbes’ Most Wanted list
SHUTTLE ATLANTIS COMPLETES ITS LAST MISSION which has been topped by Osama Bin
Laden.
The space shuttle Atlantis
touched down on May 26, at Kennedy The list, carried in the latest edition of
Space Centre in Florida, bringing an the Forbes magazine, also has Mexico’s most powerful drug
end to its last scheduled mission. trafficker Joaquin Guzman in No.2. The magazine, which has
been releasing a list of most wanted fugitives for the past three
The landing marks the likely end years, pointed out that Dawood, who is believed to be hiding in
of Atlantis’ 25 years of space flight as Pakistan, possibly had a hand in aiding LeT execute the 2008
NASA retires the ageing space shuttle fleet. Mumbai attacks and also shares smuggling routes with Al
Qaeda.
Only two further missions, by the Endeavour and Discovery
shuttles, are planned by the US space agency NASA before those “Though the Pakistani government denies it, Ibrahim is
vessels are also taken out of service. The last shuttle flight is set probably in Pakistan, where he has important ties with the
for November. powerful intelligence service,” it said.

During its 11-day mission, Atlantis had brought new Russian The article described Dawood as “the most wanted man in
research equipment and a docking module to the ISS in the India” who has for years led a 5,000-member criminal syndicate
ongoing construction of the international station. known as D-Company.

24 PT’s PrepTalk – June 2010


VIENNA ON TOP, IN INDIA BENGALURU IS THE BEST CITY INDIA AND CHINA SIGN THREE PACTS TO ENHANCE
BILATERAL COOPERATION
Bengaluru is the best city in India offering the highest
quality of living. The capital city of Karnataka with rank of 140 is, The President of India, Ms
however, way below European cities of Vienna, Zurich and Pratibha Patil, arrived on a six-
Geneva, the top three cities in the worldwide rankings of cities day trip to China on May 26, at a
for the quality of living. time when the two Asian giants
are marking the 60th anniversary
The Quality of Living Survey 2010 by Mercer, saw Indian of the establishment of
cities – New Delhi (63.8 points), Mumbai (63.6 points) and diplomatic relations that have
Kolkata (63.2 points) – trailing Bengaluru (64.9 points) with lately been scarred by distrust,
ranks of 143, 144 and 145 respectively. Chennai was at No. 153 in perceptional differences and
the list of 221 cities. border tensions.

The rankings in the survey Chinese Premier, Wen Jiabao warmly welcomed Patil and
have been based on a point- described her visit in Beijing as “significant” as it coincided with
scoring index, ranked against the 60th year of establishment of Sino-India diplomatic ties.
New York as the base city, with an
index score of 100. Vienna tops Indian President signed three bilateral cooperation pacts
the list with 108.6 points. New including two memoranda of understanding (MoUs) between
York is in position 49 on the list. India and China. The agreements were signed after the Indian
President held talks with her Chinese counterpart Hu Jintao at
Singapore at 28th spot with 103.5 points is the top-scoring the Great Hall of The People in Chinese capital Beijing.
Asian city, followed by Tokyo at 40th spot with 101.4 points.
Shanghai is the best city in China with a score of 82 points and India's Foreign Secretary, Nirupama Rao and Chinese
rank of 105. Assistant Foreign Minister, Hu Zhengyue signed an agreement
streamlining the visa application formalities for airline staff of
“Quality of living declined in a few countries in Asia between the two countries.
the start of 2009 and 2010.
India sought China’s support for its bid for a permanent seat
Increasing threats of violence and terrorism, coupled with in the UN Security Council during a meeting between President
natural disasters such as earthquakes, typhoons and cyclones Pratibha Patil and Chinese Premier Wen Jiabao in Beijing.
have had a negative impact on the quality of living in Asian
cities,” Mr Slagin Parakatil, senior researcher at Mercer, said. China, which is one of the five veto-wielding members of the
powerful UN Security Council along with the US, UK, Russia
European cities dominate the top 25 cities in the index with and France, has been saying that it supports India’s aspirations
16 places. However, British cities are not doing as well - London to play an important role at the UN, but wants an overall reform
ranks at 39, Aberdeen 53, Birmingham 55 and Glasgow 57. of the world body.

In the United States, the highest ranking entry is Honolulu Patil and Wen also discussed bilateral issues, particularly
at 31, followed by San Francisco at position 32. trade and commerce between the two countries.

The ranking also identifies the cities with the best eco- President Patil also dedicated the first Indian-styled
ranking based on water availability and drink-ability, waste Buddhist temple in China, situated in the famous White Horse
removal, quality of sewage systems, air pollution and traffic temple complex in Luoyang, to the people of this country,
congestion. Canadian city of Calgary is at the top of this index describing it as a "testimony" of the friendship between the two
with the score of 145.7 points. Honolulu has second place on the neighbours.
list with 145.1 points and Ottawa and Helsinki are in joint third
with 139.9 points. In her remarks, Patil said, “I am very much pleased to visit
you in China and I thank for the hospitality extended to me and
However, Indian cities did worse on this index, with my delegation. Excellent arrangements have been made for the
Bengaluru at 198 spot, Chennai at 202, New Delhi at 213, visit and I thank you for that.” She also referred to Wen’s last visit
Mumbai at 215 and Kolkata at 218 on the list of 221 cities. to India.

PT’s PrepTalk – June 2010 25


N KOREA SCRAPS PACT WITH S KOREA MILITARY AS "I will personally strive to build up a dialogue, an objective
dialogue with Western states aimed at clearing the atmosphere,"
TEMPERS FLARE he said.
North Korea scrapped a pact aimed at
In March 2009, Beshir became the first sitting head of state
preventing accidental armed clashes with
to be indicted by the ICC. He stands accused of war crimes and
South Korea at their flashpoint border, as
crimes against humanity in Darfur.
tempers flared over the sinking of a warship.
The seven-year-old conflict in the vast western region
Pyongyang's general staff also warned of
pitting the army and Arab militias against ethnic minority rebels
an immediate attack if the South's navy
violates the disputed Yellow Sea borderline, sparked US charges of genocide and Western anger that he
and repeated threats to shut down a joint business project. refused to cooperate with the International Criminal Court or
surrender wanted officials.
Elsewhere in the Yellow Sea, South Korea's navy staged an
anti-submarine exercise in its first show of strength since Seoul JKJKJK
publicly accused Pyongyang of torpedoing one of its warships on
26th March with the loss of 46 lives. CHINA, U.S. SIGN EIGHT GREEN TECHNOLOGY DEALS
In Seoul, an estimated 10,000 protesters shouted "Kill our China and the U.S. have signed
enemy!" and whacked images of the North's leader Kim Jong-Il eight green energy deals to
with wooden bars. enhance cooperation in the sector,
which experts believe will open
The South has announced a series of reprisals including a doors for imports of high-end
halt to trade. The North, which denies involvement, has technology so far blocked by
responded with angry rhetoric and an announcement that it is Washington.
cutting all ties with its neighbour.
The eight deals include aviation bio fuel, distributed energy
Blasting the South's “confrontation maniacs, sycophants systems using natural gas as fuel, smart meters and cellulosic
and quislings”, the North's military said agreements on ethanol.
forestalling accidental conflicts would be declared “completely
null and void”. Neither side disclosed the financial details of the deals.

JKJKJK The agreements followed conclusion of high-level strategic


and economic dialogue between the two countries attended by
SUDAN'S BESHIR VOWS DIALOGUE WITH WEST among others U.S. Commerce Secretary Gary Locke.
DESPITE ICC WARRANT
As the world’s two largest energy consumers, China and the
Veteran Sudanese President Omar al-Beshir vowed to US will also join hands for renewable energy development, said
engage with the West despite an International Zhang Guobao, head of National Energy Administration (NEA),
Criminal Court warrant hanging over him, as adding that China will keep an open mind to develop the
he was sworn in to a new five-year term. renewable energy sector.

Beshir, who last month won a multi-party The two countries have big potential for collaboration in the
election 21 years after seizing power in a area, said Zhang.
military coup, also pledged to fight for
Sudanese unity as Africa's biggest country “The US has advanced technology, and China has a huge
heads to a referendum in January next year on market.” The US and China will “take every angle” to ensure
independence for the south. their cooperation in energy and environment, said US
Ambassador to China Jon Huntsman.
Dressed in traditional white robes and turban, Beshir
addressed parliament in a ceremony attended by six African The deals could set examples for global collaboration in
heads of state or government, and low-level representation from increasing energy efficiency and protecting environment, state
Western countries. run China Daily quoted analysts as saying.

26 PT’s PrepTalk – June 2010


A series of Chinese and U.S. companies are involved in the "It won’t happen overnight. It won’t happen tomorrow. It
eight deals. won’t happen next week,” he said.

The deals could also open up doors for high technology to He said Americans should start investing in clean energy
emerging economies like India as U.S. was keen to step up technology, solar, wind, biodiesel, hybrid plug-ins and making
exports in the sector to increase its earnings from exports which buildings more efficient.
in turn could also help create more jobs for Americans.
“We’re not going to eliminate that completely. But we are
Analysts said Sino-US cooperation on green energy would over time going to undergo transition in ourselves and we will
set a good example for other countries. become more energy efficient, which will be good for our
national security, it will be good for our economy, it will be good
JKJKJK for our environment, it will be good for our future,” Obama said.

U.S. HAS TO GO BACK TO BASIC AND FIX EDUCATION JKJKJK


SYSTEM
ISRAEL TO DEPLOY SUBMARINES WITH N-MISSILES IN
President Barack Obama said the U.S. has to “go back to PERSIAN GULF
basics” and fix its education system if it has to continue to be
ahead in this highly competitive world as countries like India and Israel is to deploy three submarines
China are catching up fast with the developed world. equipped with nuclear cruise missiles
in the Persian Gulf, amid fears that
Obama said it is time that ballistic missiles developed by Iran
Americans said to themselves that could be used to hit strategic sites in the
they are ready to make a change on Jewish state, a media report said.
behalf of the future of their children
and grandchildren. The newspaper was quoted by local media as saying that one
of the submarines has been sent over Israeli fears that ballistic
"We know that if we want to build missiles developed by Iran, and in the possession of Syria and
a real future in an economy this Hezbollah, could be used to hit strategic sites in the Jewish state,
competitive with China and India and Brazil and other countries including air bases and missile launchers.
on the rise, that we’re going to have to go back to basics,” Obama
said in his speech at a fund raiser held for Senator Barbara Boxer Dolphin, Tekuma, and Leviathan, all submarines of the 7th
in California. navy Flotilla, have been reported to be frequenting the Gulf in
the past.
“We’ve got to fix our education system. We’ve got to make
sure that every young person in America has a chance to go to However, according to the newspaper report, this new
college,” the President said. deployment is meant to ensure a permanent naval presence near
the Iranian coastline.
“We’ve got to make sure- and by the way, you may have
missed it during the health care debate, but we added billions of A flotilla officer told the British newspaper that the deployed
dollars in funding to student loans by cutting out the financial submarines were meant to act as a deterrent, gather intelligence
middlemen,” Obama said amidst several rounds of applause. and potentially to land Mossad agents in the region.

“Everybody knows that we are at an inflection point in our The submarines could be used if Iran continues with its
history, that we’ve got a choice between going back to the same nuclear programme to produce a bomb.
status quo, except the status quo won’t work anymore.”
"The 1,500 km range of the submarines cruise missiles can
The President said the US will not be able to run an economy reach any target in Iran," a navy officer told the newspaper.
based on “maxing out credit cards”, taking out home equity
loans and running up debt and the financial sector getting Iranian officials reportedly reacted strongly vowing to
exorbitant profits based on a bunch of financial shenanigans. retaliate. “Anyone who wishes to do an evil act in the Persian Gulf
Obama said Americans should get ready to make a change on will receive a forceful response from us," an Iranian Admiral told
behalf of the future. the newspaper.

PT’s PrepTalk – June 2010 27


JAPAN PRIME MINISTER HATOYAMA RESIGNS A Stanford-trained engineering scholar, Hatoyama has a
scholarly bent that often saw him criticised as lofty and out of
Japan's centre-left Prime touch with the common people.
Minister Yukio Hatoyama resigned
on June 2, less than nine months JKJKJK
after taking power following a
landslide election win. U.N. IMPOSES SANCTIONS ON IRAN
Hatoyama, who took office in The United Nations Security
September, has seen his poll ratings Council (UNSC) has by a heavy
plummet from more than 70% to below 20% amid a row over an margin imposed a fourth round of
unpopular US army base on the southern island of Okinawa. sanctions against Iran.

Hatoyama initially promised to move the base off the island Of the 15 members in the
but backtracked and decided to keep it there, caving in to Council, 12 voted in favour of
Washington but enraging Okinawans and his pacifist coalition sanctions. Turkey and Brazil
partners the Social Democrats. opposed the sanctions, while
Lebanon abstained.
The left-leaning group quit his three-party coalition,
weakening the government in the upper house ahead of July Susan Rice, U.S. Ambassador
elections, while Hatoyama's poll ratings plunged to a new low of at the U.N., described the vote as
below 20 per cent. a “decisive” move against Iran's
nuclear programme.
A tearful Hatoyama made the announcement at a special
parliamentary meeting of lawmakers from his Democratic Party “Iran has shunned opportunity after opportunity to verify the
of Japan (DPJ), telling them: "I will step down" while also vowing peaceful nature of its nuclear programme,” she said.
to "create a new DPJ".
However, Brazil and Turkey, both of whom had signed a
“The government's work has not reflected the public's nuclear swap deal with Iran, warned that the latest sanctions
wishes,” the Premier said, adding that he had also asked party would impede diplomacy on Iran's atomic programme.
heavyweight and secretary general Ichiro Ozawa to quit.
The new sanctions include provisions that prohibit Iran
Ozawa has been embroiled in a funding scandal that has from purchasing heavy weaponry of various types including
seen three of his current and former aides indicted. Prosecutors attack helicopter and missiles.
have also in the past questioned Ozawa and raided his offices.
It recommends all countries to inspect cargo from Iran,
Hatoyama, 63, named Ozawa's and his own funds problems suspected of containing banned items at their ports and airports.
and the Okinawa issue as the two main reasons for his
resignation. Banning licences of banks suspected of funding nuclear
activities is also part of the recommendations.
"I have caused trouble for the people of Okinawa," Hatoyama
said. "We will need to make efforts to move the US base outside Besides, a travel ban and asset freezes for a number of
of Okinawa. But the result was that we could not deliver." individuals, including senior nuclear officials and associated
firms is proposed.
Hatoyama, who last summer ended more than half a century
of almost unbroken conservative rule, was Japan's fourth Prime While the full details of the response were still awaited,
Minister in four years. diplomats familiar with the issue said that International Atomic
Energy Agency (IAEA) head, Yukiya Amano conveyed to Iran, the
Tipped as the most likely successors was Deputy Prime response of the three countries, the so-called Vienna group.
Minister and Finance Minister Naoto Kan, with Foreign
Minister Katsuya Okada and Transport Minister Seiji Maehara The Vienna group apparently wants some significant
also seen as possible contenders. changes to the Tehran document.

28 PT’s PrepTalk – June 2010


Current events

Business and economy


ECONOMY GROWS AT 8.6 PC IN Q4; 7.4 PC IN 2009-10 Sahara and Airtel had submitted
the eligibility documents and
Driven by a robust performance security deposits and the bid was
by the manufacturing sector, the submitted and thereafter, BCCI's
Indian economy grew by 8.4 percent marketing committee decided the
in the last quarter of 2009-10, new sponsor of Team India.
pushing up the overall growth to a
better-than expected 7.4 percent. Sources said that Sahara will bid
only for the Indian team while Bharti will bid for the Indian team
The manufacturing sector grew (base price of Rs 2.5 crore per match), India-A team (base price:
by 16.3 percent in the fourth quarter Rs 25 lakh per match), Under-19 team (base price: Rs 25 lakh
(January-March 2009-10) and 10.8 percent in the fiscal. per match) and the women's team (base price: Rs 10 lakh per
match).
The Gross Domestic Product (GDP) grew at 7.4 percent for
2009-10, higher than the February projection of 7.2 percent. If Bharti had won the bid, it could not have displayed its
Airtel logo during ICC events because of a clash of interest -
The Central Statistics Organisation (CSO) also revised Reliance (another telecom company) is one of the ICC sponsors.
upwards the growth rates for Q2 and Q3 of 2009-10 on better-
than-expected performance by manufacturing, mining and tututu
quarrying industries than first thought.
NARMADA PROJECT TO GET RS 7,000 CR CENTRAL
There was no decline in agriculture growth in 2009-10, FUNDS FOR CANALS
despite widespread drought and floods hitting the farm output.
The Planning Commission has approved
According to the CSO data, the farm sector recorded a central funding to the tune of Rs 7,000 crore
growth rate of 0.2 percent contrary to expectations of negative for building canal network under Narmada
growth. project in Gujarat, a senior official attached
with the project said.
Following the global financial crisis, the GDP had
moderated to 6.7 percent in 2008-09 after recording a growth The Commission approved the revised
rate of 9 percent in the three preceding years. cost estimation of Sardar Sarovar Project
after examining details of the cost benefit of the ambitious
tututu project, which is described as the lifeline of Gujarat.

SAHARA WINS TEAM INDIA SPONSORSHIP RIGHTS "After examining the details submitted by us, the Planning
Commission has approved the revised estimation, which will
Sahara India Parivar bagged the sponsorship rights for the help us in accessing funds to the tune of Rs 7,000 crore for
Indian men's cricket team till December 31, 2013. building canals across the state," a senior official of Sardar
Sarovar Narmada Nigam Limited (SSNNL) said.
Sahara outbid Bharti Airtel for the right to sponsor Team
India. Under the Accelerated Irrigation Benefit Programme, a
Central govt. sch., funds will be provided to create irrigation
Sahara bagged the rights for Rs 3.3 crores per match. facilities in drought prone areas in the country, he added.

PT’s PrepTalk – June 2010 29


According to SSNNL officials, availability of funds from the He said the two entities “have brought together
Centre will help expedite the canal works. complementary strengths.” Mahindra's “vehicle engineering
expertise, global distribution network, sourcing clout and
So far, less than 30 per cent of canals have been built. financing support,” had the potential to provide “market
penetration” for REVA vehicles, he said. “Mahindra,” he said,
"Since funds will not be a problem now, we will be able to “would also benefit from REVA's EV technology for its own
acquire the required lands for constructing canals in the products.”
command area," the official said.
Mahindra, he said, was also developing an electric version of
Around 41,000 hectare land will be required to complete the its mini-truck, Maxximo. Mahindra REVA's EV technology will
canal network, involving branch canals, minor canals, sub- be adapted for these and other Mahindra vehicles. Access to
minor canals and distributaries which will take the water to the strong EV technology “will strengthen Mahindra's other current
fields from the main canal, he added. sustainability initiatives,” he added.

The SSNNL will now acquire the required lands at market Mr. Chetan Maini, said since REVA recognised that the EV
price from farmers, who were earlier not willing to provide their market was bound to grow significantly, “We realised we needed
lands because of 'faulty acquisition' procedure, the official said. the resources and experience of a major automotive manufacturer
like Mahindra.”
tututu
The investment by Mahindra would enable the company “to
MAHINDRA TO BUY 55.2 PCT STAKE IN REVA scale, innovate and accelerate and to deliver better products to
more customers in more places,” he said.
The Mahindra Group announced that its flagship Mahindra
and Mahindra has entered into an agreement with the tututu
Bangalore-based REVA Electric Car Company to acquire a 55.2
per cent stake in the company, which is the largest manufacturer GOOGLE, SONY, INTEL JOIN ON WEB TELEVISION
of electric cars in India.
PROJECT
The company is to be renamed
Mahindra REVA Electric Vehicle Google Inc, Intel Corp and Sony
Company Ltd. Mahindra & Corp unveiled "Google TV" in the
Mahindra strengthened its position latest effort to marry the Web to
in the electric vehicles (EV) domain television and reach into the $70
with this acquisition. billion TV advertising market.

The acquisition is to be made through a combination of The attempt to bring the Internet
equity purchase from the REVA promoters and a fresh equity into living rooms has challenged
infusion of about Rs. 45 crore (about $10 million). virtually every major player in the technology and consumer
electronics industry for years, from Apple Inc to Microsoft Corp.
As a result of the deal, the Mahindra REVA board has been
reconstituted under the Chairmanship of Pawan Goenka, For Google, television represents an attractive market in
President, Automotive and Farm Equipment Sectors, Mahindra which to expand its Internet advertising business, which
& Mahindra. The new board includes five nominees from generated the bulk of its $23.7 billion in 2009 revenue.
Mahindra & Mahindra, two from the Maini family, who are the
promoters of REVA, and one from AEV LLC, California, which Executives demonstrated how Google TV will work. A
was a co-founder of REVA. Google search box pops up directly on the screen, allowing
surfing through broadcasting channels as well as the Internet.
An independent Director will be added to the board Searches can be typed on input devices resembling a tablet-like
subsequently. Chetan Maini, Vice-Chairman and Chief gadget.
Technology Officer, REVA, will be Chief of Technology &
Strategy. Mr. Goenka said the deal marks “a key strategic For Sony, whose dominance in electronics has been eroded
acquisition for Mahindra in its march towards sustainable by the likes of Samsung Electronics, the effort helps it get ahead
mobility.” of rivals in developing a new generation of devices.

30 PT’s PrepTalk – June 2010


"Video should be consumed on the biggest, best and During the meeting, it was pointed out that infrastructure
brightest screen in the house. And that's a TV. It's not a PC or a development, failed to gain momentum in the past 6-7 years
phone or anything else in between," said Google project Senior despite government efforts and after setting up of a task force
Product Manager Rishi Chandra. under the Prime Minister.

Best Buy Co Inc will sell devices and DISH Network TV will tututu
integrate into Google TV. Chief Executives from those
companies, as well as Google, Sony, Intel and Adobe Systems
Inc, all went on stage at Google's developers conference for the
NTPC-BHEL JV MULLS TECHNOLOGY TIE-UP WITH
announcement. GLOBAL CO

tututu NTPC-BHEL Power


Projects Ltd (NBBPL)
CENTRE MULLS RS 50,000 CR FUND TO BOOST CORE said it is exploring the
possibility of a technology
SECTOR
tie-up with a foreign
The Planning Commission has player, which may be
proposed to set up a mega fund with offered a minority stake in
seed money of Rs 50,000 crore to the company.
facilitate investment of over Rs 45 lakh
crore in the infrastructure sector The move is aimed at bringing Indian power equipment
during the 12th Plan (2012-17). manufacturing at par with international companies through the
induction of modern technology.
“The commission has
recommended to create a fund with "There is always a possibility of a third partner, whenever the
seed money of Rs 50,000 crore to finance infrastructure projects need arises we would take a call. We are exploring the possibility
in the country particularly in 12th Plan period,” an official said. for technological tie-up with a foreign company," told NBPPL
Chairman, C P Singh.
“The panel has also constituted a committee, which would
be headed by HDFC Chairman, Mr Deepak Parekh, to look into He said, “It (technology tie-up) may or may not be an equity
funding of the infrastructure sector projects. The committee partnership.”
would submit its report to the Planning Commission,” he said.
NTPC-BHEL Power Projects Private Ltd is a 50:50 JV firm
The government will seek funding from multilateral lending formed between NTPC and BHEL on 28th April, 2008, for
agencies like the World Bank and the Asian Development Bank, carrying out Engineering, Procurement and Construction
financial institutions, insurance companies and pension funds
(EPC) contracts, besides the manufacture and supply of
for the dedicated fund.
equipment for power plants.
As part of the exercise to step up infrastructure sector
funding, the government will also fix annual targets for "There is always a shortage of power equipment
ministries like road, railways, power and telecom, and would manufacturing units in the country," Singh said, adding that the
monitor implementation of the projects. JV would augment power generation capacity addition in the
country.
“In a bid to boost infrastructure development, besides
setting annual targets, the government would make provision for The company currently has an order book of about Rs 450
periodically monitoring such projects to ensure desirable crore. It is targeting an order book of Rs 7,000 crore by the end of
growth of the sector,” the official said. the current fiscal.

The decision to set up an effective mechanism to ensure At present, NBPPL is working on the 100-MW Namrup
sustainable investment in the infrastructure sector was taken at Power Station in Assam and the 726-MW combined cycle power
a meeting of the Planning Commission headed by its Deputy plant being set up by ONGC Tripura Power Corporation at
Chairman, Dr Montek Singh Ahluwalia. Palatana, in Tripura.

PT’s PrepTalk – June 2010 31


It will also take up execution of the 500-MW Singrauli WAL-MART TAKES US HELP TO ENTER INDIAN RETAIL
thermal power plant and the 600-MW thermal power plant of
Andhra Pradesh Power Generation Corporation Ltd The world’s largest retailer
(APGENCO) at Rayalseema. Wal-Mart has solicited support
from the US government for
NBPPL falls under the administrative control of the entering the multi-billion
Ministry of Heavy Industries and Public Industries. dollar Indian retail market,
where foreign investment
The Ministry of Power has set a target for adding 78,000 MW norms are posing hurdles to its
of power generation capacity during the current XI Five-Year
entry.
Plan Period (2007-12).
The US-based Wal-Mart Stores, one of the world’s top
This is likely to translate into immense business
revenue grossers with over $400 billion of total annual sales and
opportunities for equipment- manufacturing companies like
present in 15 countries, is lobbying hard with lawmakers in
NBPPL.
Washington to help it expand into India, possibly through
bilateral talks between the related authorities of the two
tututu
countries.

TELCOS PAY RS 67,719 CRORE TOWARDS 3G The company is lobbying with the US Congress members as
SPECTRUM FEE also the departments of commerce, trade and treasury, among
others, to put forward its case on issues like “discussions on
All nine telecom players, including state-owned BSNL and India and foreign direct investment”, and “enhanced access for
MTNL, have paid Rs. 67,719 crore to investment in China and India.”
the government as fee for 3G
spectrum. While seven players – Bharti tututu
Airtel, Reliance Communication,
Vodafone Essar, Aircel, Idea Cellular, NOW WITHDRAW 1 LAKH AT ATMS, SHOP FOR 1.25
Tata Teleservices and S Tel – had
bagged spectrum in e-auction, BSNL LAKH A DAY
and MTNL got the radio waves earlier
and their share was decided as per the Bank customers can soon
amount reached at the completion of the bidding process. withdraw up to Rs one lakh in a
single day from ATM machines,
Bharti Airtel paid the highest Rs. 12,295.46 crore for 3G and can shop for even a higher
spectrum for 13 circles, followed by Vodafone Rs. 11,617.86 crore amount of Rs 1.25 lakh with
for nine circles, Reliance Communication Rs. 8,585.04 crore for their debit cards.
13 circles, Tata Teleservices paid Rs. 5,864.29 crore for nine nine
circles and Idea Cellular paid Rs. 5,768.59 crore for 11 circles. Also, as much as Rs three
lakh can be transferred in a day
Similarly, Aircel and S Tel have paid their respective bid to another account through
amounts for the telecom circles won. BSNL has paid Rs. ATMs as also over phone.
10,186.56 crore for the pan-India radio waves, except for Delhi
and Mumbai where MTNL has the spectrum and it paid Rs. The enhanced limits for ATM withdrawals, debit card
6,564 crore to the government. swiping and fund transfers would save the consumers from
running to bank branches, that too within banking hours, for
Winning bid amount of each circle varies, with highest being such large transactions.
that of Delhi and Mumbai at Rs. 3,316.93 crore and Rs. 3,247.07
crore respectively, while the least being that of Jammu and Currently, the maximum the customers of most of the banks
Kashmir at Rs. 30.30 crore. can withdraw through ATMs is Rs 50,000 in a day.

Among other private operators, Idea Cellular, Tatas, Aircel While HDFC Bank is allowing these enhanced banking
and STel have also paid their respective bid amount to the limits to its customers with effect from June 1, other banks
Department of Telecom (DoT). might soon follow suit.

32 PT’s PrepTalk – June 2010


The ATM withdrawal limit for HDFC Bank Imperia Gold "The project will be among the first for manufacturing and
Debit Cards now stands increased to Rs 1 lakh, and that for commodity products that will drive Aditya Birla Group's foray
shopping to Rs 1.25 lakh, from Rs 50,000 per day. Besides, the into industries related to future technologies," said an Executive
ATM card and shopping limit for Easy Shop Regular of the Birla Group.
International/ Maestro/ NRO Debit Cards would stand
increased to Rs 25,000 and Rs 40,000 from Rs 15,000 and 25,000 "The project would create direct employment for over
respectively. 100,000 professionals and indirect employment for 300,000
people," said Elamaram Kareem, Kerala industries and
The bank is currently in the process of informing its Commerce Minister.
customers about these enhanced debit card limits. Given the
competitive nature of the banking business, other banks would The Aditya Birla Group outlined a plan for the IT and
have to soon follow HDFC Bank in increasing their own card Biotech Knowledge Park and took the suggestion of the
limits for ATM withdrawals, shopping and fund transfers, a government quite seriously about setting up non polluting
senior official at a rival bank said. projects at the site of the factory which was closed in 2001 as it
faced a competition from imported fibre and an environmental
Also the holders of Kid's Advantage Debit Cards can agitation for polluting the Chaliyar river.
withdraw and shop for Rs 2,500 in a single day, higher from Rs
1,500 and Rs 1,000 currently. The site on which a defunct pulp and fibre unit was owned by
Gwalior Rayons (now Grasim), the former government led by
Further, Women debit Card holders will get to withdraw Rs the Congress had suggested the Birlas to either set up another
25,000 from ATMs from Rs 20,000. Also customers can shop for industry or return the land to the state government, in order to
up to Rs 40,000 crore with debit cards, from the present Rs revive the fortunes of Gwalior Rayons.
30,000.
Incase the management failed to develop an alternative
The above revised limit is not applicable to the card holders project, the revenue department had also decided to take the
whose current limit are different from the ones stated above and land back, invoking provisions of the Land Reforms Act. The
will continue to enjoy their requested/ offered limits as Birla Group had filed a case against the government on the land
sanctioned before, HDFC said. issue in the high court.

tututu Now the Kerala government hopes that Birlas would settle
the legal issue out of court, with the clearance given for the
BIRLA TO SET UP RS. 4,000 CRORE IT PARK IN KERALA project, said Balakrishnan. Sources said the ruling Left
Democratic Front (LDF), which completed four years in power,
The Kerala government has has included the proposal for final approval within a year before
given an approval to the Aditya Birla completion of its five-year term.
Group to establish a Rs. 4,000 crore
IT and Biotech Knowledge Park tututu
and a branch of Birla Institute of
Technology (BITS) at Kozhikode. IRDA TO STREAMLINE ULIP SCHEMES
The branch of BITS would be
established on 320 acres at Mavoor in the outskirts of The Insurance Regulator y and
Kozhikode. Development Authority (IRDA), to further
streamline the system governing the unit
The state government has given an approval after linked insurance plans (ULIPs), proposed to
considering the proposal. "Now the Birlas have to submit a do away with wide variance in charges
detailed project report for final clearances," said T imposed by insurers for surrendering these
Balakrishnan, Additional Chief Secretary and Secretary for securities-linked products.
Industries, Kerala.
Most insurers, however, are following
The Knowledge Park will use nano-technology, best global practices in ULIPs, said IRDA, which is now in a
biotechnology and related cutting-edge research and tussle with the market watchdog SEBI over their regulation.
development (R&D), knowledge process management, besides
advanced information technology (IT) services and will house The regulator also proposed various uniform norms that should
non polluting projects. beadoptedbyinsurersforclosingthepoliciesorrevivingthem.

PT’s PrepTalk – June 2010 33


As per the draft, there would be no charges for surrendering Companies such as Tata Coffee, Nestle and NKG Jayanti
a policy with a maturity of under ten years, if the policyholder Coffee Pvt shipped most of their products to Italy (37,994
surrenders his/her policy after six years. tonnes), Russia (15,924 tonnes) and Germany (11,431 tonnes).

For a policy with a maturity of over ten years, there would be tututu
no charges if surrendered from the seventh year.
TISHMAN SPEYER OPENS ITS FIRST IT PARK IN INDIA
The IRDA also imposed maximum limits that insurers could
charge from policyholders, if they surrender their policies Tishman Speyer, one of the world's leading
before the sixth year, in case the policy has under ten years of developers of real estate, unveiled its first
maturity. property in Asia, commissioning the first
phase of the Waverock IT Park.
If the surrender is before the seventh year of a policy with
over ten years maturity, there are ceilings prescribed on the The US-based developer also launched
charges as well, IRDA said. the second phase of the project, a joint venture between
Tishman and ICICI Ventures, which has come up at a special
tututu economic zone at Nanakramguda, Gachibowli, an IT district on
the city's outskirts. Comprising two phases, Waverock has come
COFFEE EXPORT JUMPS BY 50 PC IN JAN-MAY 2010 up on 12 acres of land for providing 2.46 million square feet IT
office space to provide employment opportunity to 25,000
The country's coffee export people.
surged by 50 per cent to 1,29,815
tonnes in the first five months of this Andhra Pradesh Chief Minister, K. Rosaiah commissioned
year buoyed by higher domestic the first phase, comprising 700,000 square feet with 10 floors to
supplies, according to the Coffee seat 7,000 professionals. The first phase, built at a cost of Rs.600
Board of India. But the export crore, began partial operations in February.
realisation of the commodity was
lower by 7.25 per cent at Rs 1,00,311 Waverock phase II is estimated to cost Rs 700 crore. When
per tonne during January-May of the completed, it will provide 1.65 million square feet office space. It
current year, compared to Rs will be developed in three sub-phases and will be 15-19 storey-
1,08,161 per tonne in the same period last year, the Coffee Board high with a total area of 650,000 square feet each.
data showed.
TCS has begun its operations in Waverock while Accenture
India, Asia's third-largest producer, had exported 86,654 and Invesco will start their offices shortly. Tishman had signed a
tonnes of coffee in the corresponding period last year. "The memorandum of understanding with the Andhra Pradesh
shipments so far have risen sharply to 1,29,815 tonnes because government in 2006 to build the facility. ICICI Ventures is 50
of increased coffee availability following better production this percent partner in the joint venture. Company officials said 80
year," a Coffee Board official told PTI. "Another major factor per cent of the phase I capacity at Waverock was committed.
boosting Indian coffee exports is growing coffee consumption in
the global market. "This is the first building our company has finished in Asia,"
said Jerry Speyer, Chairman and Co-chief executive, Tishman
“The global demand is seen growing at two per cent per Speyer. India is the 11th country where Tishaman has launched
annum,” he said. The country's coffee output has increased to operations. Tishman, which raises and manages private equity
2.89 lakh tonnes in the 2009-10 crop year (October-September), funds for real estate across the world, currently, has $50 billion of
as against 2.62 lakh tonnes in the previous two years, he added. assets under management.

According to data released by the apex body for promotion Rosaiah said Hyderabad had made a mark in the world IT
and marketing of the crop, robusta exports rose by 41 per cent at map with manpower and world-class IT infrastructure. He said
69,128 tonnes in the January-May period of 2010, against 48,696 the state aimed to achieve IT export turnover of Rs.70,000 crore
tonnes in the same period last year. Arabica shipments jumped and additional direct IT employment generation of 125,000 by
by 39 per cent at 26,272 tonnes from 18,924 tonnes whereas the 2015. The IT export turnover from the state in 2009 was
re-export of processed coffee rose to 34,265 tonnes from 18,929 Rs.32,500 crore. There are over 1,200 companies providing
tonnes in the review period. employment to 251,786 people.

34 PT’s PrepTalk – June 2010


INDIA'S EXPORTS UP 36.2 PER CENT IN APRIL The Indian government has set a target of $200 billion-worth
merchandise exports for 2010-11 and wants to double the
India's exports rose 36.2 exports by 2014.
percent to $16.9 billion in April
for the sixth straight month "If the (European) crisis does not extend beyond Greece,
after 13 consecutive months of then we are well on our way to achieve the $200 billion export
decline, official data released target set for the year," Sahai said.
on June 1, showed.
tututu
The exports were $12.4
billion in April a year ago. The FOREIGN EXCHANGE RESERVES COMFORTABLE, SAYS
exports were higher due to
increased demand for gems
RBI GOVERNOR
and jewellery, textiles, petroleum and engineering products. But
the outbound shipments were well below what India exported RBI Governor, D Subbarao said
two years ago. the country's foreign exchange
reserves are "quite comfortable" and
Trade experts attribute the jump in exports in the last few there is no threat to it from the euro
months mainly to a low base effect. Low base effect makes a zone crisis.
small increase appear large when the numbers in the
comparable period a year ago are too low. "Our foreign exchange reserves
are quite comfortable and are being
Also, there are concerns that the ongoing debt crisis in the managed efficiently with help from
euro-zone could dampen demand. "If the European debt crisis experts," he said while talking to
spreads, there could be a problem. The EU is an important media on the sidelines of a function in
destination for our exports," a commerce ministry official said. Pune.

Federation of Indian Export Organisations (FIEO) Director, Subbarao said the flight to dollar being witnessed following
General Ajay Sahai said the government should constantly the euro zone crisis is a "natural reaction" when there is an
review developments in the euro-zone to take timely action, if uncertainty.
required.
"It is shifting to safety and the path of natural reaction in
During April 2010, the country's imports grew by 43.3 financial markets," the RBI Governor said, adding India need
percent to $27.3 billion against $19 billion in the year-ago period, not be overly concerned about the development.
data released by the commerce ministry showed. It was mainly
on account of growth in manufacturing and increase in domestic On inflation, Subbarao said it was not at a "peak level" but still
demand.
at a "higher level" than what the apex bank would like it to be,
adding that it would be taken into account along with growth
With this, the trade deficit surged to $10.4 billion against
while formulating the monetary policy.
$6.6 billion last year.
Reacting to the just released figures of GDP growth, he said
The oil imports grew by 70.5 percent to $8 billion in April
2010 against $4.7 billion in the corresponding period last year it was "quite encouraging but not surprising" and recalled that
and non-oil imports increased by 34.3 percent to $19.2 billion the bank in its annual policy statement had anticipated GDP
from $14.3 billion in April 2009. growth of 7.5 per cent for 2009-2010.

In the financial year 2009-10, exports dropped 4.7 percent to Earlier, Subbarao inaugurated the RBI Archives Museum in
$176.5 billion mainly due to the global meltdown which had hurt the premises of a College of Agriculture Banking in Pune and
demand. described it as a "treasure trove" in India's economic history.

The exports were in the red for 13 successive months, He also said the Central bank would soon announce its
starting October 2008. They started turning positive in Archival and Record Management policy to manage transition
November 2009. from paper to digital infrastructure.

PT’s PrepTalk – June 2010 35


I-T DEPT TO OPEN AAYAKAR SEWA KENDRAS IN NINE "I am no longer stupid after investing on the plant in
Gujarat," Tata said while inaugurating the plant.
MORE CITIES
Spread over about
By the end of this fiscal, 1,100 acres, the plant in
income tax payers will be able to Sanand has been created
get all their problems relating to at an investment of about
filing of returns and obtaining of Rs 2,000 crore.
refunds, among others, addressed
at nine more help centres. Speaking on the
occasion, Modi said: "The
The Income Tax Department revolution brought by
has decided to set up help centres at 12 cities, including Kolkata, Ford in the early 20th
Coimbatore and Surat, to address the problems of tax payers. century with its small car
is being replicated now by Ratan Tata with his Nano."
At present, help centres exist at three places in the country.
The centres, called Aayakar Sewa Kendras, are currently located Every middle-class family's dream to own a car is being
in Pune, Chandigarh and Kochi. fulfilled at Sanand with the inauguration of the Nano plant, he
added.
"We are planning to extend Aayakar Sewa Kendras to 12
cities, including Ludhiana, Kolkata and Indore, in the current Ratan Tata's dream of making a car costing only Rs 1 lakh
fiscal," a finance ministry official said. crore had to face challenges – both technical and political – ever
since it was conceived in 2003.
The centres would also be set up at Bhubaneswar, Guwahati,
Surat, Ahmedabad, Udaipur and Coimbatore. At a time when input costs were soaring, keeping the cost of
production of a comfortable mini car powered by a 623cc engine
A one-stop shop for taxpayers to obtain the services of the giving a competitive mileage, was a challenge big enough for the
Income Tax department, the kendras help redress the engineers of Tata Motors.
complaints of taxpayers and prevent similar grievances in the
future. The centre addresses almost all I-T related queries, While Tatas were able to overcome it, the group was unable to
including returns and refunds, the official said. beat political challenge from Trinamool Congress and had to
shift manufacturing base from the original location at Singur in
At present, over 3.5 crore people come under the income tax West Bengal to Sanand in Gujarat in October 2008. Tatas, by
net in the country. then, had already put over Rs 1,000 crore in Singur.

tututu It delayed not only the original plans for the commercial
launch of Nano by about five months, but also affected its
availability.
TATA MOTORS INAUGURATES NANO FACTORY AT
GUJARAT'S SANAND Till the time the Sanand facility was ready, the company went
ahead with limited production of Nano – touted as the world's
Tata Motors inaugurated Nano's manufacturing facility, cheapest car with a factory gate price of Rs 1,00,000 (little over
nearly two years after it was forced to shift the plant out of West USD 2,000) – from Pantnagar in Himachal Pradesh.
Bengal over a land row.
Bookings for the car opened in April 2009 and deliveries
The new plant at Sanand was inaugurated by Gujarat Chief began in July that year. It has so far delivered over 35,000 units.
Minister Narendra Modi and Tata Group Chairman Ratan Tata, However, only the first 1,00,000 customers are assured of getting
who seven years ago dreamt of making an affordable family car the car at an ex-factory price of Rs 1,00,000.
for the common man.
The Sanand facility has the capacity to manufacture 2.5 lakh
“When I came here first on an industry visit invited by units annually, which can subsequently be increased to 5 lakh
Gujarat Chief Minister, I was told that if it (the Nano plant) is units per annum. Pilot commercial production of Nano at
not in Gujarat, I will be a stupid.” Sanand has already begun.

36 PT’s PrepTalk – June 2010


Profile

David Cameron

D avid Cameron has become the Prime


Minister of Britain in May 2010 and is
the youngest Prime Minister of
Britain in 200 years.
In mid 1994, David left his role as Special
Adviser and started to work as the Directory of
Corporate Affairs at Carlton Communications.
And after that having been approved for the
candidates’ list he began looking for seat. David
David William Donald Cameron was born was reported to have missed out on selection
on 9 October 1966 in London, England. He is for Ashford in December 1994 after failing to
the son of stockbroker Ian Cameron and Mary get to the selection meeting due to train delays.
Fleur Mont. He spent the first three years of his Then in 1996 he was selected for Stafford, and
life in Kensington and Chelsea before the in 1996 Conservative Party conference David
family moved to an old rectory near Newbury, in Berkshire. He called tax cuts in the coming budget. Stafford had a swing as the
had what he describes as a "happy childhood", with his brother national swing. David Kidney portrayed David Cameron as the
Alec and sisters Tania and Clare. His father Ian is a former right wing Tory. The swing made it one of the many seats to fall
Director of estate agent John D Wood and stockbrokers to Labour and David Kidney had a majority of more than 4,000.
Panmure, where Mr Cameron's grandfather and great
grandfather worked. Then on 4th April, 2000 David Cameron was selected as
prospective candidate for Witney in Oxfordshire that was his
But the new Tory leader gains his political lineage from his party’s safe seat but its sitting MP Shaun Woodward had joined
mother's side of the family, whose ancestral home was Wasing, in the Labour Party. David won with 1.9% swing to the
Berkshire. His great, great, great grandfather, William Mount, Conservatives with a majority of approximately 8000.
was Conservative MP for the Isle of Wight in the 19th Century.
Mr Cameron's great, great grandfather also called William Then he served as a member of the Common Home Affairs
Mount, sat for Newbury, before passing the seat on to his son Sir Select Committee. David Cameron determinedly attempted to
William Mount, the first baronet and David Cameron's great increase his public profile. In mid 2002 David along with George
grandfather. Osborne was invited by Conservative leader Iain Duncan Smith
to coach him on PM’s Questions in November 2002.
He attended Heatherdown Preparatory School before
moving onto Eton College. After leaving Eton with three "A In June 2003, Cameron was made a shadow minister in the
Grade" A Levels, he studied at the University of Oxford, Privy Council Office, working as a deputy to Eric Forth. He also
studying Politics, Philosophy and Economics (PPE). Cameron became Vice-Chairman of the Conservative Party, under
graduated in 1998 with a first class honours degree. Michael Howard. Following the resignation of Howard after the
Labour victory in May 2004. Cameron announced he would
After graduating from university, Cameron worked for the stand for the post of party leader and on 6 December 2005, after a
Conservative Research Department between 1988 and 1992. In lengthy election process, he was officially announced to be the
1991, Cameron worked on briefing Prime Minister John Major Leader of the Conservative Party.
for his bi-weekly "Prime Minister's Questions" sessions. After
the Conservative Party's success in 1992, Cameron was With his influential friends and blue-blooded heritage, Mr
promoted to work as Special Advisor to the Chancellor of the Cameron has been criticised for not being in touch with
Exchequer, Norman Lamont. ordinary people.

When Lamont was sacked after coming out of favour of John But his easy manner and confidence in front of the television
Major, Cameron went to work for the Home Secretary, Michael cameras allows him to appear - if not exactly classless - then
Howard. In September 1993, Cameron applied to go on the certainly not the upper-crust figure his background might
Conservative Central Office's list of Parliamentary candidates. suggest.

PT’s PrepTalk – June 2010 37


Guestroom

Modelling on role models


Lt. Col P. Deogirikar (Retd.)

Life is far too complicated. Demands for quick decisions are made almost every day. If only we had a role-model who
would simplify this complexity! If only we could blindly follow that idol! There might be old timers alive today who
will, in case of an emergency (not connected with Mrs. Indira Gandhi!), get the first thought, "What would have
Gandhi done in such a situation?" and take action accordingly. We will not discuss the relevance-of Gandhiji today but
the relevance of a role model today. Read on.....

O ne of the questions we have been asking the candidates


during interviews has been "Who is your role model?"
The next question would be why. And the answers to
this series of questions are expected to give many clues about
Sachin Tendulkar - 'Sachin', Sachin' you might shout in
the IPL match but do you have his commitment towards
profession? Yours might be academics at this moment. You
might shout hoarse that he should be a part of our twenty-twenty
that person. Note that the person is made to tell about the world cup, but do you volunteer yourself to arrange a
personality traits that his/her role model has. Obviously, he/she management event in your college?
may feel that he/she has the same traits or would like to acquire
those. Hrithik Roshan - You may dress like him, may even have his
mannerisms, but what about the body? Do you even at attempt to
But when a candidate takes a deep breath, gives a smile get those rippling muscles? Do you even know that he used to
triumphantly and declares, "Mahatma Gandhi" or "Mother stammer in his early childhood?
Teresa" (if a lady), I know that I am in for some fun. For these
names are generally coined just to impress the interviewer. He Why today's youth, we oldies were no good. Have another
may know about Gandhi only what has been shown in "Lage example. I had an acquaintance who was a great fan of film actor
Raho Munnabhai" and only thing she may know about Teresa is Rajkmar, and would mouth his famous dialogues. But he was a
that she worked for the poor. No books, biographies would have hypochondriac. Someone visiting him had to make the mistake
been read. of just asking, "How are you?", and he would have to listen to a
long list of the medical problems the gentleman was facing.
Fun aside, what is this role-model? Someone on whom you Little did he bother to note that his role model, Rajkumar, died
would like to model your life on. So, the very basic requirement is because of some incurable disease with very few persons even
that you must know as much as feasible about that person. If you knowing about his disease!
have not read every word written on him/her, you would not even
know about your idol. The second stage would be that you try Are we governed by our 'selective perception' - we don't see
and ape that person. reality. We see what we like to see and Call it reality? If so, are we
scared of the hard work and, like an electric current, find the easy
Okay, let those 'show-offs' rest. Suppose you are more honest way?
and say an "Amitabh Bachhan", or a "Sach1n Tendulkar",
"Hrithik Roshan". Then another set of questions arise. Here is Okay, forget about the heroes/heroines worship in society, do
how I could make you uncomfortable. we not get impressed by our parents? But do we have to only take
the not-so-good things from them?
Amitabh Bachhan - If he happens to be your idol, how
many of his known traits or acts do you follow? Getting Like should a boy only pick up the smoking vice from his dad
impressed is something different. You may mimic his famous and not how hard his father worked in life? In our colony there is
dialogues, but do you have the patience of sitting for 3-4 hours an old man who passes his son's house (which is nearby) at
daily for a special ('Pa’) makeup? Anywhere close to it? You may around 6.45 every morning and shouts asking him to get up.
keep the 'french' beard he does but do you have the punctuality Good, only the son is aged 40 years! I hope this young (?) son
he has? views "Wake up Sid" and transforms!

38 PT’s PrepTalk – June 2010


Or should a teenaged girl only pick up a fight with her Watch your thought, as your thoughts become words.
mother on the TV remote in the evening and comfortably forget Watch your word, as your words become action.
the hard work the lady puts in for the entire family all day? It is
advocated that we should take good things from others and Watch your action, as your actions become your habit.
ignore the bad ones. Are we doing entirely the opposite? Ideally, Watch your habit, as your habits becomes your character.
we are to find a ‘Ram’ in ‘Ravan’, or find a ‘Ravan’ in ‘Ram’? Watch your character, as your character becomes your
I have seen teachers who were very good. They had destiny!
knowledge and were willing to help the students outside the
class too. Only thing, they did not have was good verbal So, unless we arrest this negative thought in the beginning,
communication skill. Did we make good of their offerings? No, we are playing with fire and could harm ourselves.
Sir, we only cracked jokes on their English (e.g. telling a girl,
"Meet me behind the class!")! Do we only enjoy at someone's I sincerely hope you get a beacon to show you the path in your
expanse? Do we thrive on negative ideas? Thoughts? Mind you, career and your life. Whoever it is, hope you will be careful while
that is where the negativity starts. You would have heard this naming the role-model in the next interview. Especially if I
famous one – happen to be the interviewer!

Bank Punch line / Tag line


1. Hum Hai Na: ICICI
2. Good People To Grow With: Indian Overseas Bank
3. With You All The Way: State Bank Of India
4. Tradition Of Trust: Allahabad Bank
5. Trusted Family Bank: Dena Bank
6. Good People To Bank With: Union Bank Of India
7. World's Local Bank: HSBC
8. We Understand Your World: HDFC
9. Much More To Do With YOU In Focus: Andhra Bank
10. A Friend You Can Bank Upon: Vijaya Bank
11. Together We Prosper: Bank Of Rajasthan
12. Your Perfect Banking Partner: Federal Bank
13. Taking Banking Technology To The Common Man: Indian Bank
14. Experience Our Expertise: Yes Bank
15. Build A Better Life Around Us: Central Bank Of India
16. Serving To Empower: J & K Bank
17. The Changing Face Of Prosperity: Lakshami Vilas Bank
18. Where Every Individual Is Committed: Oreintal Bank Of Commerce
19. Aao Soche Bada: IDBI
20. A Faithful & Friendly Financial Partner: Syndicate Bank
21. Relationships Beyond Banking: Bank Of India
22. Honours Your Trust: UCO Bank
23. Smart Way To Bank: Karur Vaisya Bank
24. A Passion To Perform: Deutche Bank
25. Experience Next Generation Banking: South Indian Bank
26. The Name You Can Bank Upon: Punjab National Bank

PT’s PrepTalk – June 2010 39


PT Panorama

How to deliver and delight


customers
THE NEW SPIRIT AT WORK
their employees aligned with the company's strategy, although
A question that occupies the minds of managers, executives 85% of them felt that they handled strategy development well.
and officials of a business organisation concerns customers and This was shown with strategy execution dropping off to 40%.
patrons. Delighting the customers through proper delivery has
become the catch - phrase of many organizations trying to Vision and value statement should be clear enough to
reorient themselves around customers. Paying attention to direct the organization:
customers has become the sphere of importance of leaders and
employees, although neither is committed to doing full justice to Many organisations have vision and
it and each seems to be indulged in blaming the other. value statements that seem to
matter little in day to day operations
Paying attention to customers is possible under four and decisions. Lest they should be
conditions that can be created, and three best practices that can thought of in terms of window
be used to bring about the desired results. dressing, it would be beneficial to
assess to what extent adopted
vision and values are truly guiding
CREATING CONDITIONS FOR CHANGE: the company.

For an organization to become truly customer-centric, the All employees should be aware of the organizations's
way to go about is not that easy, as this is complex, challenging strategy:
and requires time. It involves changing the culture of the Strangely, the organisation's strategy is thought of to be so
organization, and not just merely introducing a new programme, confidential that employees do not come to know of it, even
training customer-contact personnel to smile over the phone or though they are the people who have to make it happen. One
conducting a few customer focus groups. should take a clue from Sam Walters who did not exclude even
part-time employees of Wal-Mart from receiving the store's vital
Organizations that have succeeded in assisting their performance information.
employees in committing to the new direction of bringing in a
personal change and thereby bringing the customer into focus at Promoting the new direction (strategy) in an active
all level of their working have created four action points arising manner:
out of common sense. These are meant to : It requires a lot of effort to sell the organisation's vision and
value statement to employees. Sometimes it is challenging. John
1. articulate and promote the new direction. Gillespie, CEO of Sydney Electricity, felt this was the hardest
2. ensure that each employee knows what is expected. job, which would not have been achieved by just sending e-mails
3. ensure that each employee has the skills to do what is to all employees. He had to sell the vision, continually repeating
expected. with enthusiasm, over and over again with his employees, at
4. motivate each employee to do what is expected. every meeting. No wonder, Sydney Electricity won Australia's
national quality award.
WAYS OF ACHIEVING
Ensure that each employee knows what is expected:
Articulate and promote the new direction: Gallup organization, in a study that covered 400
Bairn and Company did a study on CEOs that was concerned organisations, 80000 managers and over one million employees,
with ensuring that their employees aligned with the company's concluded that any organization succeeds when its employees
polices, when performing. It was found that 10% ensured that know what is expected of them.

40 PT’s PrepTalk – June 2010


Effective ways of ensuring this would be to: r Conduct a strategic training audit, which, though, being a
simple process would be rewarding. Against critical
Use the chain of command to discuss and explain what competencies that are required for each job in the
is expected / use the hierarchy to communicate new organization, the contribution of the related training
decisions: programme to its development can be evaluated on a scale
This can be worked out with the manager talking to of 1 to 5.
employees in small groups, explaining to them about the present r Employees can themselves be trainers, making training
situation, change in strategy and finally what they should do, how part of their job, instead of leaving the development of
they should work, and other expectations. Other matters like competencies to company's trainers.
personal, training and organizational support can be discussed,
so as to ensure their readiness and retention. Moreover, by Motivate each employee to do what is expected:
creating the picture of an appropriate new behaviour, it can be This is the most difficult part for managers. Managers would
ensured that employees adapt to it readily and make it a part of have to go beyond the conventional and the existing reward and
their daily routine. compensation system.

Make the employees appreciate the value of customer Ensure employee participation:
relationship: Participative management is an effective tool. In the present
This can be achieved by making employees create a context, employees can be asked to come out with opinions,
line-of- sight map between them and customers. seeking their involvement to create the vision and values,
Employees can work on this simple yet powerful eliciting their suggestions on strategic issues,
exercise, starting with their location in the involving them to create new processes, giving them
organization and creating a visual trail direct to full authority to solve problems without the need to
customers. While most of the employees might observe the protocol.
not have direct contact with customers, they have
internal customers within the organization. Bring to light the face of the customer:
Employees would soon realise that any gap in the in addition to the voice of the customer, which is
internal customers would be troublesone for a critical determinant. For this, appropriate metrics
external customers. In this way, they would realise based on customer behaviour and feedbacks are
the value and importance of customer needed, which can be personalized. One way of
relationship. going about is videotaping focus groups and sharing
the result with each employee. Meditronics is the
Give the right type of recognition to early adopters: organization that has kept employees focused on its real
Early adopters can be identified. They can be publicly purpose. Doctors, patients and their families come into the
praised for their sincere efforts to change changing their organization and share their account of how they survived.
behavior in order that the organizations strategy works. Such a
step would help in weakening or annulling the influence of Induce fun in work:
fence-sitters, who do little and only complain about the Employees are prone to undergo stress caused by
development, and help in influencing and inspiring other seriousness and outright fear arising out of down sizing,
employees from peer success. mergers, stock price descent, increased working hours or an
excessive focus on quarterly earnings. As a result, fun is absent
Ensure that each employee has the skills to do what is in work done and stress – related absenteeism is on the rise.
expected: Managers would do well in restoring the element of fun in work.
Managers should ensure, and not just assume, that
employees have the skills to go about working towards the Conclusion:
required change and accomplishing the desired goals. An The change that an organization wishes to bring about in its
effective way to go about would be to culture is not a simple task. The managers need to change
themselves to being customer-centric. By creating the four
r Conduct internal best practices research by identifying conditions, managers would succeed in giving rise to the
critical competencies. In other worlds, identify best job understanding on the part of each and every employee of what
performers in each job category and compare them with needs to be done, harnessing the employee skills towards this
those counterparts who perform marginally. Managers can end, and finally motivating the employee to come out with the
come out with training exercises that would develop these best shot. The employee-customer relationship would be long-
skills. standing and symbiotic.

PT’s PrepTalk – June 2010 41


Brand icon

Apple Inc.
pple Inc. designs, manufactures, and markets personal In 1979 Apple introduced the Apple II+ with far more

A computers, software, networking solutions, and


peripherals, including a line of portable digital music
players. Apple's product family includes the Macintosh line of
desktop and notebook computers, the iPod digital music player,
memory than the Apple II and an easier startup system, and the
Silentype, the company's first printer. VisiCalc, the first
spreadsheet for microcomputers, was also released that year. Its
popularity helped to sell many Apple IIs. By the end of the year
the Mac OS X operating system, the iTunes Music Store, the sales were up 400 percent from 1978, at over 35,000 computers.
Xserve G5 server, and Xserve RAID storage products. The Apple Fortran, introduced in March 1980, led to the further
company's products are sold online, through third-party development of software, particularly technical and educational
wholesalers, and through its own chain of stores. Apple owns applications.
approximately 125 retail stores in the United States, as well as
stores in Canada, Japan, and the United Kingdom. In December 1980, Apple went public. Its offering of 4.6
million shares at $22 each sold out within minutes. A
Apple was founded in April 1976 by Steve Wozniak, then 26 second offering of 2.6 million shares quickly sold
years old, and Steve Jobs, 21, both college dropouts. Their out in May 1981.
partnership began several years earlier when Wozniak, a
talented, self-taught electronics engineer, began The Apple III was well received when it was
building boxes that allowed him to make long- released in September 1980 at $3,495, and
distance phone calls for free. The pair sold many predicted it would achieve its goal of
several hundred such boxes. breaking into the office market dominated
by IBM. However, the Apple III was
Apple's professional marketing released without adequate testing, and
team placed the Apple II in retail many units proved to be defective. Production
stores, and by June 1977, annual sales was halted and the problems were fixed, but
reached $1 million. It was the first the Apple III never sold as well as the Apple II.
microcomputer to use color graphics, It was discontinuedin April 1984.
with a television set as the screen. In
addition, the Apple II expansion slot Despite the problems with Apple III,
made it more versatile than competing the company forged ahead, tripling its
computers. 1981 research and development budget
to $21 million, releasing 40 new software
The earliest Apple IIs read and stored programs, opening European offices, and
information on cassette tapes, which were putting out its first hard disk. By January 1982,
unreliable and slow. By 1978 Wozniak had 650,000 Apple computers had been sold
invented the Apple Disk II, at the time the fastest and cheapest worldwide. In December 1982, Apple became the first personal
disk drive offered by any computer manufacturer. The Disk II computercompany to reach $1 billion in annual sales.
made possible the development of software for the Apple II.
The introduction of Apple II, with a user manual, at a The next year, Apple lost its position as chief supplier of
consumer electronics show signaled that Apple was expanding personal computers in Europe to IBM, and tried to challenge
beyond the hobbyist market to make its computers consumer IBM in the business market with the Lisa computer. Lisa
items. By the end of 1978, Apple was one of the fastest-growing introduced the mouse, a hand-controlled pointer, and displayed
companies in the United States, with its products carried by pictures on the computer screen that substituted for keyboard
over 100 dealers. commands.

42 PT’s PrepTalk – June 2010


Unfortunately, the Lisa did not sell as well as Apple had the Macintosh II, primarily to compete for the office market. At
hoped. Apple was having difficulty designing the elaborate the same time IBM marketed a new operating system that
software to link together a number of Lisas and was finding it mimicked the Macintosh's ease of use. In May 1989 Apple
hard to break IBM's hold on the business market. Apple's announced plans for its new operating system, System 7, which
earnings went down and its stock plummeted to $35, half of its would be available to users the next year and allow Macintoshes
sale price in 1982. to run tasks on more than one program simultaneously.

With the failure of the Lisa, the Macintosh was seen as the Apple was reorganized in August 1988 into four operating
future of the company. Launched with a television commercial divisions: Apple USA, Apple Europe, Apple Pacific, and Apple
in January 1984, the Macintosh was unveiled soon after, with a Products. Dissatisfied with the changes, many longtime Apple
price tag of $2,495 and a new 3-inch disk drive that was faster executives left. In July 1990, Robert Puette, former head of
than the 5 1/4-inch drives used in other machines, including the Hewlett-Packard's personal computer business, became head of
Apple II. the Apple USA division. Sculley saw the reorganization as an
attempt to create fewer layers of managementwithin Apple, thus
Apple sold 70,000 Macintosh computers in the first 100 days. encouraging innovation among staff. Analysts credit Sculley
In September 1984 a new Macintosh was released with more with expanding Apple from a consumer and education computer
memory and two disk drives. Jobs were convinced that anyone company to a business computer company, one of the biggest
who tried the Macintosh would buy it. A national advertisement and fastest-growing corporationsin the United States.
offered people the chance to take a Macintosh home for 24
hours, and over 200,000 people did so. At the same time, Apple Apple entered the 1990s well aware that the conditions that
sold its two millionth Apple II. Over the next six months Apple made the company an industry giant in the previous decade had
released numerous products for the Macintosh, including a changed dramatically. Management recognized that for Apple to
laser printer and a hard drive. succeed in the future, corporate strategies would have to be
reexamined. Apple had soared through the 1980s on the backs of
Despite these successes,Macintoshsales temporarilyfell off its large, expensive computers, which earned the company a
after a promising start, and the company was troubled by committed,yet relatively small following.
internal problems. Infighting between divisions continued, and
poor inventory tracking led to overproduction. Apple's turnaround was confirmed in the first years of the
21st century, as the company strode toward its 30th anniversary
The Macintosh personal computer finally moved Apple into exuding an unprecedented degree of strength. At the heart of
the business office market. Corporations saw its ease of use as a the company's surging growth was a digital music player
distinct advantage. It was far cheaper than the Lisa and had the branded as iPod. Introduced in late 2001, the device featured five
necessary software to link office computers. In 1986 and 1987 gigabytes (GB) of storage, enabling the user to store
Apple produced three new Macintosh personal computers with approximately 1,000 songs on a player that was smaller than a
improved memory and power. deck of playing cards. Retailing for $399, the iPod represented
another example of Apple's skill in designing an elegant and
By 1988, over one million Macintosh computers had been functional product, a product that became one of the most
sold, with 70 percent of sales to corporations. Software was sought after consumer electronics items during the first half of
created that allowed the Macintosh to be connected to IBM- the decade.
based systems. Apple grew rapidly; income for 1988 topped $400
million on sales of $4.07 billion, up from income of $217 million Succeeding generations of iPods hit the market and scored
on sales of $1.9 billion in 1986. Apple had 5,500 employees in resounding success, driving the company's financial growth. A
1986 and over 14,600 by the early 1990s. 10 GB model was introduced in mid-2002, followed by the iPod
Mini, iPod Shuffle, and iPod Nano, together representing a
In 1988, Apple management had expected a worldwide massive new source of revenue for the company. The fifth
shortage of memory chips to worsen. They bought millions generation of the iPod debuted in 2005, a device available in a 30
when prices were high, only to have the shortage end and prices GB or 60 GB model that was capable of storing and playing video
fall soon after. Apple ordered sharp price increases for the files. By the time the video iPod arrived in stores, Apple derived
Macintosh line just before the Christmas buying season, and roughly 35 percent of its revenue from iPods. Between 2001 and
consumersbought the less expensiveApple line or other brands. 2005, thanks primarily to the popularity of iPods, the company's
sales nearly tripled, increasing from $5.3 billion to $13.9 billion.
In early 1989, Apple released significantly enhanced Apple controlled more than 75 percent of the $2.5 billion digital
versions of the two upper-endMacintoshcomputers,the SE and audio player market in the United States.

PT’s PrepTalk – June 2010 43


PT Panorama

Self-managed Teams:
Empowering everyone in a team

Introduction How to Create Successful Self-Managed Teams


Procter & Gamble kept self-managed teams a commercial Be committed and practical
secret for years. Hundreds of companies have tried to make them. Creating a self-managed team is a marathon, not a sprint.
You stand a better chance of succeeding with an entirely new
Self-managed teams (SMT), often called Self-managed team than you do with a long-standing one. Managers who have
work teams (SMT), have acquired a momentum of their own. introduced the self-managed principle usually say it's a time-
More than half of the largest companies in the United States consuming business that needs careful nurturing.
now have them.
Self-management demands a new mindset, one where you
stop thinking in terms of managing per se and focus on
empowering or motivating. If you're fond of command and
control as a management style, self-managed teams are
definitely not for you.

So what exactly is a self-managed team? Broadly, it's a work


group of around 5 to 15 people sharing responsibility for a task. It
could be building a car or processing insurance claims. The
assumption is that the members possess the skills and authority
to supervise themselves. An important feature is that everyone
tends to learn all the tasks required. In this it differs from the
traditional team, in which jobs are broken into smaller elements,
each assigned to an individual with specialist skills. When self-
management works, productivity rises above conventional teams
by anything from 10 to 20%. In addition, employee satisfaction
increases and employee turnover falls.

A particular challenge that this work arrangement poses for


Western cultures is our passion for independence, self-
sufficiency, and competitiveness.
Such arrangements are not for the faint-hearted. They
represent a switch from the boss-worker relationship to a Understand the team cycle
collaborative approach. Once the self-managed idea gets under To make self-managed teams succeed you need to know
way everything tends to be challenged, from supervision to some principles of groups and how they reach peak
setting wages, from existing production targets to persistent performance.
hierarchies.
Whenever someone leaves or joins, in effect you have a new
In principle these apparently leaderless teams are simple to group. A fresh effort needs to go into rebuilding relationships,
understand. You empower everyone in a team to take clarifying working arrangements, establishing trust, and going
responsibility. Instead of a supervisor or some distracted middle through some or all of the development cycle. Teams switch
manager directing events, the team runs itself. Well, that's the between various stages of development as they encounter new
theory. Now for the reality. issues.

44 PT’s PrepTalk – June 2010


There are different views concerning the evolution of Problems also arise when responsibilities are unclear. With a
successful teams, but most tend to follow the same pattern. The line management system it's easy to pass an issue upwards. The
one that is used most frequently and perhaps most clearly self-managed team needs to clarify what each person does and
defines the development of teams is the four stages of team where different jurisdictions begin and end.
development: forming, storming, norming, and performing.
As with any team, there's always a danger that the views of the
1. Forming – the team is a collection of individuals that most vocal will prevail. People who feel their opinions are
are just starting to form a single unit. The ice is carefully being unheard may become resentful or start withdrawing their
broken, people are introducing, themselves and are generally commitment to the project. Early on, it's important to invest
quiet, themselves and are getting the measure quiet, of others in time developing communication skills and establishing best
the team. practice for conducting meetings and making decisions. Great
rewards will come from that initial investment.
2. Storming – conflict starts to emerge as people display
their attitudes and set boundaries. This is an inevitable phase as Sustain momentum
people get to know others in the team and find their own identity. Newly created self-managed teams, driven by initial
enthusiasm, often produce quick results. Many problems
3. Norming – norms are emerge later once the excitement has
developed as people understand worn off and performance begins to
each other's strengths, weaknesses, slide. Now the team faces the same
and patterns of other’s behaviour. challenge as any long-term group. It
The group functions as a team and needs to focus on creating and
tasks are accomplished. Often teams maintaining self-motivation or
settle at this level. creating a rota of people responsible
for continually revitalising the team.
4. Performing – the team
starts excelling and performing at its How long it takes before the team
very best. This largely results from a is truly self-managing may depend on
steady accumulation of trust, respect, factors outside the team's own
and understanding, combined with a control; such factors influence teams
common sense of purpose and some no matter how they are managed. For
successes. example, in a US survey of 400
organisations about half complained
To these four stages can be added a fifth – reforming – which of inadequate resources, just under half said they had no or low
refers to the process of renewing and reinvigorating the team, rewards, and a similar proportion reported lack of decision-
perhaps after failures, difficulties, or major changes. making authority.

Visit a self-directed team Ensure that teams are empowered to make


If you like the idea of self-directed teams, visit some existing appropriate decisions
ones to gain a practical feel for the challenges you will inevitably The issue of decision-making reflects the difficulties many
encounter. For example, self-management implies that no one is long-serving managers experience in adapting to self-
really in charge, when in reality this is seldom true. Invariably management. First, they must learn to let go and trust people.
there is someone providing leadership. Second, they may need to transform their style into a supportive
and facilitative approach and learn to allow decisions to emerge
Understand and resolve problem areas naturally. Third, they need to respond to mistakes and crises by
Mature teams can handle responsibilities that once kept the turning them into genuine learning opportunities rather than an
traditional line manager in business. excuse to punish or even grab back decision-making control.

Many teams resist self-management, particularly when it's As companies increasingly rely on talent, brainwork, and
imposed by senior management. Employees, comfortable with virtual teams that hardly even meet, self-management has many
conventional line management and having no desire to take on attractions. The lessons so far are that self-managed teams can
extra responsibility, can be intransigent. It's essential to offer be highly productive and extremely satisfying to work in.
them clear benefits and plan a structured process of Paradoxically, though, it takes particularly good management to
education. allow them to succeed and reach their full potential.

PT’s PrepTalk – June 2010 45


r Former supervisors shifted roles. They became resource
providers rather than rationers and spent their time
obtaining information and securing resources.
r Productivity rose by around 10 to 15 %.

MAKING IT HAPPEN
r Stop thinking in terms of managing and focus on
empowering.
r Visit some existing self-directed teams to gain a practical
feel for the realities (like the need for leadership) that you
will inevitably encounter.
r To overcome resistance to self-management, offer
employees clear benefits and education.
r Be sure to clarify what each person in the self-managed
team does and where jurisdiction begins and ends.
r Invest time in developing communication skills and
establishing best practice for conducting meetings and
taking decisions.
r Respond to mistakes and crises by turning these into
genuine learning opportunities rather than an excuse to
punish or even grab back control.
Five Myths about Self-managed Teams
Conclusion
r They don't need managers. They need managing through
coaching, facilitation, and other forms of support.
Self-managed teams and team-based working have
r They don't need leaders. Leadership is essential and is
developed into the normal way of structuring organisations and
often shared ingeniously across the group.
undertaking tasks, yet it is a difficult and complex aspect of
r They make leaders powerless. Leaders must exercise
leadership and is usually developed through experience. When
power differently and rely more on influence than authority.
developing a high performing, self-managed team it is valuable
r They're cheap. They cost more in the short term and have
to have an understanding of:
high set-up costs such as training and troubleshooting.
r They're quickly established. They can take years to get
1. the benefits of team building – what it can achieve and
right, needing constant refinement.
what the leader should be striving for
2. team roles and dynamics – how teams work and achieve
Mini-case their greatest success
3. the key stages of team development – what they are and
When mining machinery manufacturer Boart Longyear how to support the team in each stage
opted for self-managed teams, it had to learn the hard way. Team 4. the features of a successful team and team leader
preparation involved at least 60 hours of training on topics such 5. how to avoid potential problems and pitfalls
as interpersonal skills, leadership, group decision-making, and
running meetings. Team building is a continuing process requiring energy,
commitment, feedback, and review. Factors affecting the team
Despite the careful investment in team and individual change constantly, and the team needs to have the leadership
development, no single person emerged as the informal leader. and support that breeds flexibility and confidence.
The result was delay in decision-making. One of the greatest
sources of frustration was that employees felt comfortable only
when they were told what to do. When they hit a problem their India Yamaha Motor Pvt. Ltd. recently unveiled its new
first reaction was to demand help from a supervisor. The motorcycle, YBR 110 (pronounced as YBR One ten) in the
benefits were: Indian market. YBR 110 comes with a decent yet stylish design
and is targeted at middle income class people who want to have
r Individual team members really pulled their weight, a stylish and comfortable commuter bike. YBR 110 is priced at
because they didn't want to appear to be underperforming. Rs. 41,000/- (Ex-Showroom, Delhi) .

46 PT’s PrepTalk – June 2010


Profile

Sarosh Homi Kapadia


Chief Justice of India

J ustice Sarosh Homi Kapadia,


the senior-most judge of the
Supreme Court was appointed
as the next Chief Justice of India on
The young Sarosh may not have
been rich but what he did possess was
ambition and determination to
become a judge. He became counsel
May 12, 2010. He is the thirty- for the income tax department in
eighth Chief Justice of India. 1974, aged 27. He also appeared for
Justice Kapadia's Warrant of the then Bombay Municipal
Appointment, was signed by Corporation in matters concerning
President Pratibha Patil. rateable value and octroi. He
represented the Maharashtra
As per norms laid down under government and several public sector
the Memorandum of Procedure undertakings (PSUs) until he was
which governs appointment of appointed a high court judge. As a
members of the higher judiciary, judge of the Bombay High Court, he
Justice K. G. Balakrishnan had decided matters ranging from
earlier this month recommended environmental to banking, M&As,
the name of Kapadia to succeed industrial disputes, tax and so on, but
him as the CJI. developed a reputation for his
expertise on commercial and tax law.
Justice Sarosh Homi Kapadia, B.A. (Hons.), LL.B. was
born in Mumbai on 29th September 1947 in a lower middle- The best thing that ever happened to him was the stock scam
class Parsi family from the Khetwadi-Girgaum region. His of 1999 involving broker Ketan Parekh. He was appointed judge
father was a clerk in a defence establishment, his mother a of the special court established under the Trial of Offences
homemaker. Kapadia completed his BA and LLB and Relating to Transaction in Securities Act in 1999. He played an
immediately began working. S. H. Kapadia is married to important role in the proceedings of the Joint Parliamentary
Shahnaz and has two sons. Committee constituted to investigate the stock scam.

Sarosh Homi Kapadia, Chief Justice of India, has few On August 5, 2003, he was appointed Chief Justice of the
interests other than the law. One of them is going for walks. As a Uttarakhand High Court and in December that year, he was
young man, Kapadia used to drag his younger brother (now a elevated to the Supreme Court, thus serving only a very short
retired banker) all over Mumbai for walks that would, almost tenure as Chief Justice of a high court.
invariably, end at Narayan Dabholkar Road, the breezy avenue off
Napean Sea Road where high court judges have their In the Supreme Court, Kapadia delivered some landmark
apartments. The two brothers would look at the buildings and judgements which included a decision relating to succession of
young Sarosh would say: “One day, the name on that nameplate property in April 30, 2005 in which he ruled out the possibility of
will be mine”. His wish was granted in October 1991, when he conducting the DNA test.
was made a judge of the Bombay High Court.
He was part of the three-member Bench that decided
The story of how he reached there is nothing less than income tax case of Rashtriya Janata Dal Chief Lalu Prasad. The
remarkable. He started his career as a class IV employee and the verdict went in favour of Prasad but Justice Kapadia gave a
only asset he possessed was integrity. He joined Gagrat & Co, a dissenting judgement saying the income tax department should
law firm as a clerk and later, went to work for firebrand and have filed an appeal against the Income Tax Appellate Tribunal
highly respected labour lawyer Feroze Damania. (ITAT) order.

PT’s PrepTalk – June 2010 47


English Grammar

Fun with Grammar

E nglish grammar is the body of rules describing the


properties of the English language. A
language is such that its elements
must be combined according to certain
patterns. This article is concerned with
Word classes and phrase classes

Seven major word classes are described here. These


are: noun, verb, adjective, adverb, preposition,
conjunction, and determiner. The first six
(and restricted to) morphology, the are traditionally referred to as "parts of
building blocks of language; and speech." There are minor word classes,
syntax, the construction of such as interjections, but these do not fit
meaningful phrases, clauses and into the clause and sentence structure of
sentences with the use of English.
morphemes and words.
Open and closed classes
The grammar of any
language is commonly Open word classes allow new
approached in two different members; closed word classes
ways: descriptive, usually seldom do. Nouns such as
based on a systematic analysis "celebutante," (a celebrity who
of a large text corpus and frequents the fashion
describing grammatical circles)" and "mentee," (a
structures thereupon; and person advised by a
prescriptive, which attempts to mentor) and adverbs such
use the identified rules of a given as "24/7" ("I am working on
language as a tool to govern the it 24/7") are relatively new
linguistic behaviour of speakers. words; nouns and adverbs
Prescriptive grammar further are therefore open classes.
concerns itself with several open
disputes in English grammar, often representing changes in Word classes and grammatical forms
usage over time. This article predominantly concerns itself with
descriptive grammar. A word can sometimes belong to several word classes. The
class version of a word is called a "lexeme."
There are a number of historical, social and regional variations
of the English language. For example, British English and For example, the word "run" is usually a verb, but it can also
American English have several lexical differences; however, the be a noun ("It is a ten mile run to Tipperary."); these are two
grammatical differences are not equally conspicuous, and will be different lexemes. Further, the same lexeme may be inflected to
mentioned only when appropriate. Further, the many dialects of express different grammatical categories: for example, as a verb
English have divergences from the grammar described here; they lexeme, "run" has several forms such as "runs," "ran," and
are only cursorily mentioned. This article describes a generalized "running." Words in one class can sometimes be derived from
present-day Standard English, the form of speech found in types those in another and new words be created. The noun
of public discourse including broadcasting, education, "aerobics," for example, has recently given rise to the adjective
entertainment, government, and news reporting. Standard "aerobicized" ("the aerobicized bodies of Beverly Hills
English includes both formal and informal speech. celebutantes.

48 PT’s PrepTalk – June 2010


Phrase classes Nouns have several syntactic features that can aid in their
identification. Nouns (example: common noun "cat") may be
Words combine to form phrases which themselves can take modified by adjectives ("the beautiful Angora cat"), preceded by
on the attributes of a word class. These classes are called phrase determiners ("the beautiful Angora cat"), or pre-modified by
classes. The phrase: "The ancient pulse of germ and birth" other nouns ("the beautiful Angora cat").
functions as a noun in the sentence: "The ancient pulse of germ
and birth was shrunken hard and dry." (Thomas Hardy, The Noun phrases
Darkling Thrush) It is therefore a noun phrase. Other phrase
classes are: verb phrases, adjective phrases, adverb phrases, Noun phrases are phrases that function grammatically as
prepositional phrases, and determiner phrases. nouns within sentences. In addition, nouns serve as "heads," or
main words of noun phrases.
Nouns and determiners Verbs
Nouns form the largest word class. According to Verbs form the second largest word class after nouns.
Carter and McCarthy, they denote "classes and According to Carter and McCarthy, verbs denote "actions,
categories of things in the world, including people, events, processes, and states." Consequently, "smile,"
animals, inanimate things, places, events, qualities "stab," "climb," "confront," "liquefy," "wake," "reflect"
and states." Consequently, the words, "Mandela," are all verbs. Some examples of verb endings, which
"jaguar," "mansion," "volcano," "Timbuktoo," while not dead giveaways, are often associated,
"blockade," "mercy," and "liquid" are all nouns. include: "-ate" ("formulate"), "-iate"
Nouns are not commonly identified by their ("inebriate"), "-ify" ("electrify"), and "-ize"
form; however, some common suffixes such as ("sermonize"). There are exceptions, of
"-age" ("shrinkage"), "-hood" ("sisterhood"), "- course: "chocolate" is a noun, "immediate" is
ism" ("journalism"), "-ist" ("lyricist"), "-ment" an adjective, "prize" can be a noun, and
("adornment"), "-ship" ("companionship"), "- "maize" is a noun. Prefixes can also be used to
tude" ("latitude"), and so forth, are usually create new verbs. Examples are: "un-"
identifiers of nouns. There are exceptions, of ("unmask"), "out-" ("outlast"), "over-"
course: "assuage" and "disparage" are verbs; ("overtake"), and "under-" ("undervalue").
"augment" is a verb, "lament" can be a verb;
and "worship" is a verb. Nouns can also be Regular and irregular verbs
created by conversion of verbs or adjectives.
A verb is said to be regular if its base
Examples include the nouns in: "a boring
form does not change when inflections
talk," "a five-week run," "the long caress,"
are added to create new forms. An
"the utter disdain," and so forth.
example is: base form: climb; present
form: climb; -s form: climbs; -ing form:
Number, gender, type, and
climbing; past form: climbed; -ed
syntactic features.
participle: climbed. Irregular verbs are
ones in which the base form changes; the
Nouns have singular and plural forms. Many plural forms
endings corresponding to each form are not always unique.
have -s or -es endings (dog/dogs, referee/referees,
bush/bushes), but by no means all (woman/women, axis/axes, Type and characteristics
medium/media). Unlike some other languages, in English,
nouns do not have grammatical gender. However, many nouns Verbs come in three grammatical types: lexical, auxiliary, and
can refer to masculine or feminine animate objects modal. Lexical verbs form an open class which includes most
(mother/father, tiger/tigress, alumnus/alumna, male/female). verbs (state, action, processes, and events). For example, "dive,"
"soar," "swoon," "revive," "breathe," "choke," "lament,"
Nouns can be classified semantically, i.e. by their meanings: "celebrate," "consider," "ignore" are all lexical verbs. Auxiliary
common nouns ("sugar," "maple," "syrup," "wood"), proper verbs form a closed class consisting of only three members: be,
nouns ("Cyrus," "China"), concrete nouns ("book," "laptop"), do, and have. Although auxiliary verbs are lexical verbs as well,
and abstract nouns ("heat," "prejudice"). Alternatively, they can their main function is to add information to other lexical verbs.
be distinguished grammatically: count nouns ("clock," "city," This information indicates (a) aspect (progressive, perfect), (b)
"colour") and non-count nouns ("milk," "decor," "foliage"). passive voice, and (c) clause type (interrogative, negative).

PT’s PrepTalk – June 2010 49


Modal verbs also form a closed class which consists of the Adverbs
core modals ("can," "could," "shall," "should," "will," "would,"
"may," "might," "must"), semi-modals ("dare," "need," "ought to," Adverbs, according to Carter and McCarthy, are a class of
"used to"), and modal expressions ("be able to," "have to"). words "which perform a wide range of functions. Adverbs are
Modals add information to lexical verbs about degrees of especially important for indicating time, manner, place, degree,
certainty and necessity. and frequency of an event, action, or process." They typically
modify verbs, adjectives, or other adverbs. Adjectives and
Adjectives adverbs are often derived from the same word. A majority of
adverbs are formed by adding to "-ly" ending to their
According to Carter and McCarthy, "Adjectives describe corresponding adjective form.
properties, qualities, and states attributed to a noun or a
Conjunctions
pronoun." As was the case with nouns and verbs, the class of
adjectives cannot be identified by the forms of its constituents. According to Carter and McCarthy, "Conjunctions express a
However, adjectives are commonly formed by adding the some variety of logical relations between phrases, clauses and
suffixes to nouns. Examples: "-al" ("habitual," sentences." There are two kinds of conjunctions: coordinating
"multidimensional," "visceral"), "-ful" ("blissful," "pitiful," conjunctions and subordinating conjunctions.
"woeful"), "-ic" ("atomic," "gigantic," "pedantic"), "-ish"
("impish," "peckish," "youngish"), "-ous" ("fabulous," Coordinating
"hazardous").
Coordinating conjunctions link "elements of equal
As with nouns and verbs, there are exceptions: "homosexual" grammatical status." Elements in questions may vary from a
can be a noun, "earful" is a noun, "anesthetic" can be a noun, prefix to an entire sentence.
"brandish" is a verb. Adjectives can also be formed from other Subordinating conjunctions
adjectives through the addition of a suffix or more commonly a
prefix: weakish, implacable, disloyal, irredeemable, unforeseen. Subordinating conjunction relate only clauses to one
A number of adjectives are formed by adding "a" as a prefix to a another. They make the clause associated with them into a
verb: "adrift," "astride," "awry.” subordinate clause. Some common subordinating conjunctions
in English are: (of time) after, before, since, until, when, while;
Adjective phrases (cause and effect): because, since, now that, as, in order that, so;
(opposition): although, though, even though, whereas, while;
An adjective phrase may consist of just one adjective, or a (condition): if, unless, only if, whether or not, whether or no,
single adjective which has been modified or complemented. even if, in case (that), and so forth.

Earth Day
Earth Day was started by Senator Gaylord Nelson and the idea for a day celebrating the earth was first thought of in 1962.
Senator Nelson thought that a day was needed to honor the earth and that the earth needed more of a place in politics.

It was in 1962 that Senator Nelson convinced President John F. Kennedy to go on a tour of the United States that would act as a
conservation tour, and he embarked on this five-day tour in September 1963. Senator Nelson did not consider the tour a success
but it was the beginning of an idea for Earth Day.

Earth Day was first celebrated on April 22, 1970 in the United States. Across the United States, 20 million people and
thousands of local schools and communities participated in the first Earth Day. The huge turnout for the first Earth Day made it
the largest organized celebration in the history of the United States. Earth Day’s success helped influence the government of the
United States to create stronger laws to protect the environment.

22nd April 2010 is the 40th anniversary of the Earth Day. With over 20 thousand partners and organisation in 190 countries,
more than one billion people participated in Earth Day activities and made it the largest secular civic event in the world.

Ever since, 22nd April has been used to focus on the Earth' environmental challenges such as climate change, pollution and
water quality and an overall appreciation of our land and environment.

50 PT’s PrepTalk – June 2010


Brand icon

Asian Paints

A sian Paints is India’s largest and Asia's third largest paint


company today, with a turnover of Rs. 44.04 billion
(around USD 1.1 billion). The company has an enviable
reputation in the corporate world for professionalism, fast track
growth and building shareholder equity.
Asian Paints has won many awards & recognitions which
includes rating under “200 best under a billion” by Forbes global
in 2002, “Best small company in India” by Asia Money in 2002,
“Golden peacock” national quality award by union labour
ministry, “Best supply chain” award by i2 solutions, “Golden
peacock environment management award”, “Five star rating” by
The company has come a long way British safety council in 2003 & 2005.
since its small beginnings in 1942. Four
f r i e n d s C h a m p a k l a l H . C h o k s e y, The Bhandup plant in Mumbai is reportedly the largest
Chimanlal N. Choksi, Suryakant C. Dani single paint factory in the country and one of the most up-to-
and Arvind R. Vakil get together to date with sophisticated machinery and equipment for
manufacture paint in a garage at Foras manufacturing a wide range of paints and other products
Road, Mumbai. They name their company besides adequate resin manufacturing capacity to meet its
'The Asian Oil & Paint Company', a name that they picked entire requirements.
randomly from a telephone directory. It was converted into a
public limited company in 1973. The Company manufactures a The Company undertook to set up a third paint unit at
wide range of surface coatings catering to different end-uses. It Patancheru, a notified backward area near Hyderabad, for the
also manufactures vinyl pyridine latex used in the manufacture manufacture of 15,000 MT of paints and enamels. A letter of
of rubber tyres. The company expanded its products range, Intent was obtained for setting up a fourth paint plant in Uttar
developed its own technology, set up a distribution network Pradesh with a capacity of 23,000 tonnes per annum of paints,
penetrating in smaller towns and ploughed back a large part of varnishes and enamels and 65,000 tonnes per annum of
earnings into creation of new facilities. Later in the year 1965 the synthetic resins (for captive consumption).
name was changed from Asian Oil and Paint Company Pvt. Ltd.
to Asian Paints (India) Pvt. Ltd. The Company entered a collaboration agreement with
Nippon Paints Co. Ltd., Japan, to obtain technical know-how to
Asian Paints operates in 22 countries across the world. It has manufacture powder coating and coil coatings under an
manufacturing facilities in each of these countries and is the exclusive licence. Necessary manufacturing facilities for the
largest paint company in ten overseas markets. Asian Paints powder coatings with a capacity of 300 MT were installed and
operates in five regions across the world viz. South Asia, commissioned at Kasna plant during 1992-93.
Southeast Asia, South Pacific, Middle East and Caribbean
region through the five corporate brands viz. Asian Paints, Forbes Global magazine USA ranked Asian Paints among the
Berger International, SCIB Paints, Apco Coatings and 200 Best Small Companies in the World for 2002 - 2003 and
Taubmans. All these ventures are doing well and have a strong presented the 'Best under a Billion' award, to the company. Asian
hold in their respective markets. APL has its presence in almost Paints is the only paint company in the world to receive this
all the segment through its brands Royale in the premium recognition.
segment. Apcolite in the mid segment, Gattu, Tractor, Utsav and
3-mango in the lower segment. One of the country's leading business magazine "Business
Today" in Feb 2001 ranked Asian Paints as the Ninth Best
The company has five manufacturing units which are Employer. It has been recognized by “Economic Times” as well.
located at Mumbai, Ankleshwar, Patancheru, Kasna and
Sriperambdur. Each plant is headed by the Factory Manager. Asian Paints has harnessed the powers of state-of-the-art
Bhandup plant is the oldest plant with an installed capacity of supply chain system using cutting edge technology to integrate
30000 Tonnes per annum. All plants are also awarded with ISO all its plants, regional distribution centres, outside processing
9000 & ISO 14000 certification. centres and branches in India.

PT’s PrepTalk – June 2010 51


Business Trivia
r Netaji Subhash Chandra Bose was the r Hitachi was founded by Namihei
President of a trade union for eight years Odaira as a repair shop of a mining
of Tata Steel. company.

r Golden Era of 3-6-3 is the principle of good r NASA's 'World Wind' is a Geobrowser similar to Google
banking. Get money at 3%, lend it at 6% Earth.
and get back to the golf club at 3 pm.
r Barista was founded in 1997 by Ravi Deol and Sandeep
r Before it became a part of Hindustan Lever, Brooke Bond Vyas and is now owned by Italy's Lavazza.
India acquired Karnataka Scooters Ltd in the early 1980s.
r Royal Enfield is the sole manufacturer of 500cc bikes in
r E Jerome McCarthy developed the concept of the 4Ps India. It makes the Bullet 350, the Bullet Electra, the
(product, pricing, promotion and placement) of Bullet Electra 5S, the Thunderbird and the Machismo 500.
marketing in 1960. Philip Kotler then included it in his
book Marketing Management. r Fantanas are a group of four 'spokesmodels' created to
promote Coca-Cola's Fanta brand in the US, different
r Dirty Laundry, Laughing Stock, Dead Frog and versions of which have appeared since 2002.
Englishman are brand names of wines from Spain.
r Good to the last drop was the phrase used by Theodore
r Big Mother is the term used to describe the use of modern Roosevelt to describe the taste of Maxwell House coffee
geolocation wireless and video technologies by parents to served to him in 1907. General Foods, which acquired the
constantly track the activities of a child. brand in the 1920s, made wide use of the slogan.

r Sanjiv Bikhchandani promoted Info Edge is the owner of r Hygienic Research Institute (HRI) is the owner of hair
Naukri.com, 99acres.com (real estate portal) and dye and colour brands Super Vasmol and Streax.
Jeevansathi.com (matrimonial website).
r YKK in the zipper company's abbreviated name stands for
r Anupam Mittal is the Chairman and Managing Director Yoshida Kogyo Kabushikkaisha.
of People Interactive, which runs the Shaadi.com portal.
r The name Unilever is an amalgam of two diverse cultures
r On May 1, 1969, Jerry Sanders and seven friends founded and businesses. Lever is the British part (fabric and
Advanced Micro Devices (AMD). personal wash products) while Margarine Uni was the
European half (vegetable oils).
r Nihar, Manjal, Camelia, Aromatic, Mediker and Oil of
Malabar are all brands owned by Marico that are r Burger King introduced the WHOPPER sandwich in
acquisitions. 1957.

r William Willett (1856 –1915) is the inventor of daylight r Jacobs, Maxwell House and Carte Noire are among the
saving time concept. In 1907 William published a coffee brands of Kraft Foods.
pamphlet 'The Waste of Daylight' in which he proposed
that the clocks should be advanced by 80 minutes in the r Delhi's Harpal Singh was the first customer of Maruti
summer. Udyog Ltd.

52 PT’s PrepTalk – June 2010


r Best Buy Co. Inc. is a specialty retailer r The LEGO company was founded
of consumer electronics in the United by Ole Kirk Christiansen in
States and Canada accounting for 19% Billund, Denmark, in 1916. Today it
of the market. It also operates in has over 9,000 employees
Mexico, China, Turkey and the United worldwide. The Danish words Leg
Kingdom. The company's subsidiaries (alloy) and Godt (well) were put together to make "LEGO."
include Geek Squad, Magnolia Audio Video, Pacific Sales, Later, it was discovered that in Latin, the term "Lego"
and, in Canada operates under both the Best Buy and means “I put together”or “I assemble.”
Future Shop label.
r The Hudson's Bay Company, abbreviated HBC, is the
r Tokyo Shibaura Electric co is better known as Aiwa. oldest commercial corporation in North America and
one of the oldest in the world. The company was
r “R” in Maruti Suzuki's small car Wagon-R stands for incorporated by British royal charter in 1670. It was at one
Recreation. time the largest landowner in the world, with Rupert's
Land being over 15% of North America.
r Richemont, world's most prestigious and widely
recognised luxury goods brands, through its Vendôme r When Lifebuoy soap was first introduced in 1897, it was
Group subsidiary, owns a broad portfolio of some of the called Lifebudy soap.
world's leading luxury goods brands. These include
Cartier, Alfred Dunhill, Montblanc and Lancel as well as r While Parryware brand was founded in 1952, its origins
the prestigious Swiss watch manufacturers Piaget, date back to 1908 when the company decided to make acid-
Baume & Mercier and Vacheron Constantin. resistant ceramic jars for the sulphuric acid it was
manufacturing at its Ranipet plant in Tamil Nadu.
r Silver Searph, Silver Dawn, Silver Ghost, Silver Shadow,
Silver Spirit and Silver Spur are all different models of car r Captain Morgan is a brand of rum produced by Diageo.
from Rolls-Royce. It is named after the 17th-century Caribbean privateer
from Wales, Sir Henry Morgan. Captain Morgan's slogan
r Getting its name from a character in George Orwell's 1984, is “Got a little Captain in You?” In 1944,the Seagram
The TV Reality Show–Big Brother was first created by Company started producing rum under the name Captain
Dutch production company Endemol. Morgan Rum Company.

r Omega Speedmaster Professional Chronograph is r Apollo Tyres founder Raunaq Singh Kanwar, an
the only watch to be flight-qualified for all manned space entrepreneur from Lahore, in 1978, bought a licence to
missions by the American and Russian space agencies. manufacture tyres from a family that was desperate to sell.
The Kanwar family decided to add Apollo tyres to their
r METRO Cash & Carry is an international self-service flagship company Bharat Steel Tubes.
wholesale retailer. It operates across Europe and in some
countries of Asia and Northern Africa. It is the largest sales r Norwich Union is the biggest insurance company in the
division of the German trade and retail giant METRO AG. UK. It is part of the Aviva group, itself created by a merger
of Norwich Union and CGU plc in 2000. Aviva announced
r ‘Managing Across Borders–The Transnational Solution' is that the Norwich Union brand would disappear over a
the book by Christopher Bartlett and Sumantra period of two years. Norwich Union was founded in 1797 in
Ghoshal. Norwich, when 36-year-old merchant and banker Thomas
Bignold formed the “Norwich Union Society for the
r Taka (Bangladesh) derives its name from the Sanskrit Insurance of Houses, Stock and Merchandise from Fire”.
word for “stamped coin”.
r The first mobile phone to enable internet connectivity and
r The Experience Economy–'Work is Theatre & Every wireless email, the Nokia Communicator, was released
Business a Stage' is a book by Joseph Pine II and James in 1996, creating a new category of expensive phones called
Gilmore. smartphones. In 1999 the first mobile internet service was
launched by NTT DoCoMo in Japan under the i-Mode
r Motorola's first product was a car radio. service.

PT’s PrepTalk – June 2010 53


General knowledge
1. Which country won the Thomas Cup title for Badminton in 8. Who is India s most wanted man suspected of having
2010? organized the 1993 Mumbai bombings and figures third on
(1) Indonesia the Forbes Most Wanted Fugitives list?
(2) Malaysia (1) Dawood Ibrahim
(3) China (2) Chhota Shakeel
(4) India (3) Tiger Memon
(4) Abu Salem
2. Who won the Madrid Masters men s tournament in 2010?
(1) Roger Federer 9. Who was the 11th Vice-President of India who passed away
(2) Rafael Nadal recently on May 14, 2010?
(3) Andy Murray (1) Kocheril Raman Narayanan
(4) Robin Soderling (2) Ramaswamy Venkataraman
(3) Shankar Dayal Sharma
3. Which country won the World Twenty-20 cricket final? (4) Bhairon Singh Shekhawat
(1) England
(2) Australia 10. Which Company has started a BPO in Srinagar starting
(3) Sri Lanka reverse migration of Kashmir?
(4) South Africa (1) Essar Group-run Aegis
(2) Hinduja TMT
(3) NIIT SmartServe
4. Who is CEO of Yahoo?
(4) HCL-Tech BPO
(1) Steve Ballmer
(2) Samuel J. Palmisano
11. Who received the 27th Niwano Peace Foundation award on
(3) Carol Bartz
May 13, 2010?
(4) Paul S. Otellini
(1) Dharma Master Cheng Yen
(2) Nandita Das
5. Which Indian IT Company is associated with FIFA World (3) Dr. Priscilla Elworthy
Cup 2010 as one of the sponsors? (4) Ms. Ela Ramesh Bhatt
(1) TCS (2) Infosys
(3) CTS (4) Mahindra Satyam 12. Who is the Union minister who has offered to resign for his
controversial remarks against the home ministry for
6. Name the volcano whose dense cloud of drifting volcanic allegedly stalling some Chinese imports?
ash is causing many European airports to shut down for (1) P. Chidambaram
days and affecting air traffic worldwide. (2) Jairam Ramesh
(1) Esjufjöll (3) Kamal nath
(2) Lýsuhóll (4) S M Krishna
(3) Kerlingarfjöll
(4) Eyjafjallajokul 13. What is the real name of character artist Sambha from
super hit film of all times Sholey who passed away
7. Who is the new Director of BARC? recently?
(1) Prof. S. Banerjee (1) Viju Khote
(2) Prof. R. K. Bhandari (2) Jalal Agha
(3) RK Sinha (3) Satyen Kappu
(4) Prof. R. Balasubramanian (4) Mac Mohan

54 PT’s PrepTalk – June 2010


14. What is the name of the panel that is being setup to look 22. According to the latest population Census, the state with
into Telangana issue? the least population density is
(1) Kirit Parikh committee (1) Sikkim
(2) Soli Sorabjee Committee (2) Mizoram
(3) Srikrishna committee (3) Andaman & Nicobar Islands
(4) Subhash Ranjan committee (4) Arunachal Pradesh

15. Who is the new IPL Commissioner? 23. The number of Union Territories in India is
(1) Rizwan Cheema (1) 5 (2) 6
(2) Chirayu Amin (3) 7 (4) 8
(3) Sharad Pawar
(4) Jagmohan Dalmiya 24. The maximum duration for which the President s office
can remain vacant is
16. Who is the new British Prime Minister? (1) 1 month
(1) Nick Clegg (2) 2 months
(2) David Cameron (3) 3 months
(3) Gordon Brown (4) 6 months
(4) Andrew Brown
25. Which of the following represents the minimum age
17. Who is the new Chief Justice of India? required to become a member of the Rajya Sabha?
(1) R. C. Lahoti (1) 25 years
(2) Y. K. Sabharwal (2) 30 years
(3) K. G. Balakrishnan (3) 35 years
(4) S H Kapadia (4) There is no age limit as such

18. This disease is caused by the deficiency of protein. Can you 26. Which of the following represents the percentage
identify it from the given options? contribution of the agriculture sector to the Growth
(1) Goitre D o m e s t i c Pr o d u c t o f t h e I n d i a n E c o n o m y
(2) Kwashiorkar (approximately)?
(3) Hypokalemia (1) 15%
(4) Dermatosis (2) 17%
(3) 21%
19. Pacific Ocean, which is the earth s largest ocean, (4) 30%
represents the percentage area (approximately) of the
earth covered by it 27. Sakyamuni is another name of
(1) 25% (2) 35% (1) Mahavir
(3) 40% (4) 45% (2) Buddha
(3) Lord Shiva
20. This place is the wettest place on earth. Can you identify it (4) Lord Vishnu
from the given options?
(1) Mount Waialeale 28. The last amendment to the Preamble of the Constitution of
(2) Cherapoonji India was carried out in the year
(3) Mawsynram (1) 1958
(4) None of these (2) 1962
(3) 1976
21. The work for which French Nobleman Baron Pierre de (4) 1978
Coubertin is known for, is
(1) He was the founder of Scouts movement 29. Which of the following is not a primary activity?
(2) He was the founder of Amnesty International (1) Fishing
(3) He was the founder of Red Cross Society (2) Mining
(4) He was responsible for the revival of modern Olympic (3) Agriculture
games. (4) Banking

PT’s PrepTalk – June 2010 55


30. How many Bharat Ratna awardees have won the Nobel 39. We all know very well that the largest planet of the solar
Prize till date? system is Jupiter. Can you identify the name of the second
(1) 1 (2) 2 largest planet of the solar system?
(3) 3 (4) 4 (1) Earth
(2) Saturn
31. Who discovered Ultrasound? (3) Uranus
(1) Ian Donald (4) Venus
(2) Roger Bacon
(3) J.P. Merril 40. The Andes mountain range is in
(4) Joseph Lister (1) North America
(2) South America
32. Maltimadhava is the famous creation of which of the (3) Europe
following personalities? (4) Australia
(1) Kalidas
(2) Bharat Muni 41. The world s rarest element on earth is
(3) Bhavabhuti (1) Palladium
(4) Vishnu Sharma (2) Astatine
(3) Radium
33. The number of non-permanent members of the UN (4) None of these
Security Council is
(1) 5 (2) 10 42. Which of the following is the densest planet of the solar
(3) 15 (4) 20 system?
(1) Earth
34. Which of the following is not a recipient of Bharat Ratna? (2) Saturn
(1) Aruna Asaf Ali (3) Jupiter
(2) PV Kane (4) Mercury
(3) DK Karve
(4) MGK Menon 43. Which of the following is not based on the banks of river
Danube?
35. Which of the following is not matched properly? (1) Vienna
(1) Dibru Saikhowa - Assam (2) Belgrade
(2) Dehang Debang - Mizoram (3) Budapest
(3) Norkek - Meghalaya (4) Warsaw
(4) Pachmarhi - Madhya Pradesh
44. Which of the following cases highlighted that total
36. The first cotton mill of India was set up at ....... reservation in the govt. jobs cannot exceed 50% of total?
(1) Surat (1) T.A. Pai case
(2) Mumbai (2) Minerva Mills case
(3) Kanpur (3) Keshvanand Bharti case
(4) Ahmedabad (4) Indira Sawhney case

37. Which Indian city is also known as the School capital of 45. Ngultrum is the name of the currency of
India ? (1) Chile
(1) Lucknow (2) Bhutan
(2) New Delhi (3) Botswana
(3) Dehradun (4) Bulgaria
(4) Ajmer
46. International Committee of Red Cross has won the Nobel
38. Reserve Bank of India was nationalized in Peace Prize for record . times.
(1) 1949 (1) Three
(2) 1952 (2) Four
(3) 1955 (3) Five
(4) 1964 (4) Six

56 PT’s PrepTalk – June 2010


47. Poise is the unit of 56. The first Indian state where the President s rule was
(1) Pressure imposed in the year 1951 was ..........
(2) Viscosity (1) Uttar Pradesh
(3) Luminous intensity (2) Rajasthan
(4) Inductance (3) Punjab
(4) Orissa
48. This personality is credited with the invention of Electro
cardiogram (ECG). Can you identify the personality from 57. Which of the following Indian states has the lowest sex ratio
the given options? (number of females per thousand males)?
(1) Ian Donald (1) West Bengal
(2) A. Laveran (2) Haryana
(3) Willem Einthoven (3) Punjab
(4) C.Sholes (4) Uttar Pradesh

49. Time Machine is the name of a famous work of 58. Which of the following is not a work of Salman Rushdie?
(1) Carl Segan (1) Moor s Last Sigh
(2) H.G. Wells (2) Midnight s Children
(3) Alvin Tofler (3) Shalimar The Clown
(4) Arthur C. Clarke (4) The Piano Teacher

50. Jakob Von Vexkull was the founder of 59. International Labor Day is celebrated on . every
(1) Booker Prize year.
(2) Pulitzer Prize (1) August 1
(3) Right Livelihood Award (2) March 1
(4) Templeton Prize (3) September 1
(4) May 1
51. Which of the following chemical elements is used for the
bleaching process? 60. Who is credited with the construction of the Grand Trunk
(1) Fluorine road?
(2) Bromine (1) Tipu Sultan
(3) Chlorine (2) Mohammed bin- Tughlaq
(4) Xenon (3) Shershah Suri
(4) Jehangir
52. Cirrhosis is a disease which affects the
(1) Brain (2) Liver 61. Which of the following is also known as Silicon valley of
(3) Kidney (4) Lungs India ?
(1) Hyderabad
53. Which of the following is the capital of Ireland? (2) Bangalore
(1) Dublin (3) Chennai
(2) Istanbul (4) Noida
(3) Amsterdam
(4) Berne 62. This personality is also considered as the Father of
computers. Can you name him from the given options?
54. Where would you find the Indian Textile Institute? (1) Blaise Pascal
(1) Surat (2) Kanpur (2) Alan M. Turing
(3) Pune (4) Mysore (3) Charles Babbage
(4) None of these
55. Which of the following is the least populous union territory
of India? 63. Peace Palace is the official headquarters of
(1) Pondicherry (1) WHO
(2) Lakshadweep (2) FAO
(3) Dadra and Nagar Haveli (3) ICJ
(4) Andaman & Nicobar Islands (4) IBRD

PT’s PrepTalk – June 2010 57


64. Find the odd one out. 71. Consider the following statements:
(1) DOS 1. INS Sindhughosh is an aircraft carrier
(2) WINDOWS 2. INS Viraat is a submarine
(3) LINUX Which of the statements given above is/are correct?
(4) LISP (1) 1 only
(2) 2 only
65. Which of the following is the capital of the land of midnight (3) Both 1 and 2
sun ? (4) Neither 1 nor 2
(1) Vienna
(2) Oslo 72. Consider the following statements:
(3) Helsinki 1. The Commission for Agricultural Costs and Prices
(4) Prague recommends the Minimum Support Prices for 32
crops
66. Christiana is the former name of which of the following 2. The Union Ministry of Consumer Affairs, Food and
cities? Public Distribution has launched the National Food
(1) Copenhagen Security Mission
(2) Oslo
(3) Ottawa Which of the statements given above is/are correct?
(4) Berlin (1) 1 only
(2) 2 only
67. Who among the following Presidents of India served as the (3) Both 1 and 2
Secretary General of the Non-Aligned Movement for some (4) Neither 1 nor 2
period?
(1) Dr. Sarvepalli Radhakrishnan 73. In India, ports are categorized as major and non-major
(2) Varahagiri Venkatagiri ports. Which one of the following is a non-major port?
(3) Giani Zail Singh (1) Kochi (Cochin)
(4) Dr. Shanker Dayal Sharma (2) Dahej
(3) Paradip
68. Match List I with List II and select the correct answer (4) New Mangalore
Person Organization
A. Anil Agarwal i. Gujarat Heavy 74. Among other things, which one of the following was the
Chemicals Ltd. purpose for which the Deepak Parekh Committee was
B. Gautam H. Singhania ii. Raymond Ltd. constituted?
C. Sanjay Dalmia iii. Vedanta Resources (1) To study the current socio-economic conditions of
D. Venugopal Dhoot iv. Videocon Group certain minority communities
(2) To suggest measures for financing the development
A B C D of infrastructure
(1) iii i ii iv (3) To frame a policy on the production of genetically
(2) iv i ii iii modified organisms
(3) iii ii i iv (4) To suggest measure to reduce the fiscal deficit in the
(4) iv ii i iii Union Budget

69. In India, which of the following states has the largest inland 75. The brothers Umakanth and Ramakanth Gundecha are
saline wetland? (1) Dhrupad vocalists
(1) Gujarat (2) Kathak dancers
(2) Haryana (3) Sarod maestros
(3) Madhya Pradesh (4) Tabla players
(4) Rajasthan
76. In which state is the Buddhist site Tabo Monastery
70. Which one of the following pairs is not correctly matched? located?
(1) Japan Nikkei (1) Arunachal Pradesh
(2) Singapore Shcomp (2) Himachal Pradesh
(3) UK FTSE (3) Sikkim
(4) USA Nasdaq (4) Uttarakhand

58 PT’s PrepTalk – June 2010


77. Match List I with List II and select the correct answer 83. Match List I with List II and select the correct answer
Famous person Well-known for Famous person Well-known as
A. Mandakini Amte i. Theatre director A. Anna Hazare i. Lawyer
B. Neelam Mansingh B. Deepak Parekh ii. Banker
Chowdhry ii. Social service and C. GVK Reddy iii. Gandhian and social
community activist
leadership D. Harish Salve iv. Industrialist
C. Romila Thapar iii. Dance
D. Vanashree Rao iv. History writing A B C D
(1) i ii iv iii
A B C D (2) i iv ii iii
(1) ii i iv iii (3) iii ii iv i
(2) ii iv i iii (4) iii iv ii I
(3) iii i iv ii
(4) iii iv I ii 84. Match List I with List II and select the correct answer
Famous person Well-known as
78. With reference to Stree Shakti Puraskar, for which one of A. Amrita Sher-Gil i. Dancer
the following is "Devi Ahilya Bai Holkar Award" given? B. Bhimsen Joshi ii. Painter
(1) Administrative skills C. Rukmini Devi Arundale iii. Poet
(2) Achievements in scientific research D. Suryakant Tripathi Nirala iv. Singer
(3) Achievements in sports and games
(4) Courage and valour A B C D
(1) ii i iv iii
79. With which one of the following has the B.K. Chaturvedi (2) ii iv i iii
Committee dealt? (3) iii i iv ii
(1) Review of Centre-State relations (4) iii iv I ii
(2) Review of Delimitation Act
(3) Tax reforms and measures to increase revenues 85. With reference to the schemes launched by the Union
(4) Price reforms in the oil sector Government, consider the following statements:
1. Ministry of Health and Family Welfare launched the
80. Mahamastakabhisheka, a great religious event, is Rashtriya Swasthya Bima Yojana
associated with and done for whom of the following? 2. Minstry of Textiles launched the Rajiv Gandhi Shilpi
(1) Bahubali Swasthya Bima Yojana
(2) Buddha Which of the statements given above is/are correct?
(3) Mahavir (1) 1 only
(4) Nataraja (2) 2 only
(3) Both 1 and 2
81. Consider the following pairs: (4) Neither 1 nor 2
Tradition State
1. Gatka, a traditional martial art Kerala 86. Consider the following pairs:
2. Madhubani, a traditional painting Bihar Persons Sport
3. Singhey Khababs Sindhu Darshan 1. Anand Pawar Chess
Festival J&K 2. Akhil Kumar Boxing
Which of the pairs given above is/are correctly matched? 3. Shiv Shankar Prasad Chowrasia Golf
(1) 1 and 2 only
(2) 3 only Which of the pairs given above is/are correctly matched?
(3) 2 and 3 only (1) 1 and 2 only
(4) 1, 2 and 3 (2) 2 and 3 only
(3) 3 only
82. The famous Trimurti sculpture is at (4) 1, 2 and 3
(1) Mahabalipuram
(2) Elephanta 87. Who killed the Sikh Guru Arjun Dev
(3) Badami (1) Akbar (2) Jahangir
(4) Vijayawada (3) Babar (4) None of these

PT’s PrepTalk – June 2010 59


88. Match List I with List II and select the correct 95. Which of the following Indian Sports Team is also known as
Book Author The Bhangra Boys ?
A. In Custody i. Amartya Sen (1) Cricket Team
B. Sea of Poppies ii. Amitav Ghosh (2) Hockey Team
C. The Argumentative Indian iii. Anita Desai (3) Kabaddi Team
D. Unaccustomed Earth iv. Jhumpa Lahiri (4) Football Team

A B C D 96. Which among the following international Pen brand had


(1) iv i ii iii released the controversial "Mahatma Gandhi Limited
(2) iv ii i iii Edition" of Pens?
(3) iii ii i iv (1) Meisterstück
(4) iii i ii iv (2) Montblanc
(3) Parker Pen Company
89. Among the following, who are the Agaria community? (4) Luxor
(1) A traditional toddy tappers community of Andhra
Pradesh 97. What is the maximum punishment as per IT act 2000 for
(2) A traditional fishing community of Maharashtra sending unsolicited emails and spam?
(3) A traditional silk-weaving community of Kerala (1) 1 year
(4) A traditional salt pan workers community of Gujarat (2) 2 years
(3) 3 years
90. How many medals did India win in the Commonwealth (4) 4 years
Games in Manchester in the year 2002?
(1) 52 (2) 62 98. In the centrally sponsored AUWSP scheme, W stands
(3) 72 (4) 82 for ..........?
(1) Women
91. Development as Freedom is a book written by whom (2) Workers
among the following? (3) Water
(1) Amartya Sen (4) Wildlife
(2) Pankaj Mishra
(3) T.S.Krishna 99. Which of the following President of India was the only
(4) Shobha De person to be elected unopposed?
(1) 4th President
92. As per a recent survey conducted by Hong Kong Shanghai (2) 5th President
Banking Corporation (HSBC), which among the following (3) 6th President
is world's Most Confident Market? (4) 7th President
(1) India
(2) China 100. Who among the following is known to set up municipal
(3) UAE institutions at work in India in 1882?
(4) Vietnam (1) Lord Lytton
(2) Lord Ripon
93. Bhairon Singh Shekhawat who recently died was Chief (3) Lord Lansdowne
Minister of Rajasthan . (4) Lord Mayo
(1) Once
(2) Twice 101. Which among the following language comes under 8th
(3) Thrice schedule of Indian Constitution?
(4) Four times (1) Bhojpuri
(2) Mizo
94. What is the total number of branches (approximately) of (3) Rajasthani
ICICI Bank as of May 2010? (4) Dogari
(1) 1500
(2) 2000 102. In which year was Bombay Plan presented?
(3) 3000 (1) 1934 (2) 1938
(4) 5000 (3) 1944 (4) 1950

60 PT’s PrepTalk – June 2010


103. Which of the following Five year Plans set the lowest growth 111. Which among the following is the world's largest mobile
target? operator having largest subscriber base in the world?
(1) First (1) China Mobile
(2) Second (2) Vodafone
(3) Third (3) América Móvil
(4) Fourth (4) Orange

104. What is the 11th plan target of increasing forest and tree 112. Which of the following is the venue of the Nuclear Security
cover? Summit in April 2010?
(1) 2% (2) 3% (1) Geneva
(3) 4% (4) 5% (2) Paris
(3) Washington
105. Article 280 of the Indian Constitution deals with (4) London
constitution of which of the following commissions?
(1) Law commission 113. As per accepted recommendations of the Thirteenth
(2) Election commission Finance Commission, the State s share has been fixed at
(3) Finance Commission 32% of the net proceeds of sharable Central Taxes. Which
(4) Farmers Commission among the following state gets the maximum share?
(1) Uttar Pradesh
106. Which among the following is a correct impact of Dear (2) Madhya Pradesh
Money? (3) Maharastra
(1) Borrowings become cheap (4) Gujarat
(2) Borrowings become expensive
(3) Borrowings become either cheap or expensive
114. In which of the following states is Pagladiya Multipurpose
(4) There is no impact of Dear Money on Borrowings
Dam project located?
(1) West Bengal
107. Bring out the incorrectly matched pair:
(2) Bihar
(1) National legislative assembly of Spain - Cortes
(3) Uttar Pradesh
(2) Parliament of Norway - Storting
(4) Assam
(3) National Assembly of Bhutan - Gyelyong Tshogdu
(4) All Matched Correctly
115. Recently, Right to Education Act came into force in India.
108. Recently the exercise of census 2011 has taken off from As per UNESCO's 'Education for All Global Monitoring
April 1, 2010. During the history of Independent India, Report 2010', how many countries in the world have
which of the following states have been excluded in a constitutional provisions for free and non-discriminatory
census? education for all?
(1) Jammu & Kashmir (1) 98
(2) Jammu & Kashmir and Assam (2) 114
(3) Jammu & Kashmir and Sikkim (3) 111
(4) No state has been left in any census (4) 135

109. Which among the following committee was appointed by 116. With which of the following countries, India has recently
the Supreme Court of India to study PDS (Public finalized a $2.2 billion deal to upgrade her fleet of Mirage
Distribution System) reform? 2000 fighters?
(1) Arjun Sengupta committee (1) Israel
(2) N.C. Saxena committee (2) Russia
(3) Justice Wadhwa committee (3) France
(4) Suresh Tendulkar Committee (4) US

110. Since when the Targeted Public Distribution System has 117. Which among the following has been selected as
been in operation in India? consultant to Unique Identification Authority of India ?
(1) 1995 (1) Tata Consultancy Services
(2) 1997 (2) Ernst & Young
(3) 1999 (3) Boston Consulting Group
(4) 2000 (4) McKinsey & Company

PT’s PrepTalk – June 2010 61


118. Which among the following is the primary source of 126. Law Commission of India is a .?
revenue for Bhutan? (1) Constitutional Body
(1) Handicrafts (2) Advisory Body
(2) Tourism (3) Departmental committee
(3) Exports (4) Non statutory Body
(4) Electricity Sale
127. Where were the last Commonwealth games held?
119. Who among the following is the author of The new age of (1) Kua Lalumpur
innovation ? (2) Melbourne
(1) Richard Branson (3) Manchester
(2) Jessie Paul (4) Auckland
(3) C K Prahalad
(4) Hank Paulson 128. Which among the following countries is the world s leading
producer of synthetic industrial diamond?
120. Montek Singh Ahluwalia is India's Deputy Chairman of (1) United states
Planning Commission. He is serving on this position for .... (2) Congo
(1) First term (3) China
(2) Second term (4) South Africa
(3) Third Term
(4) Fourth Term 129. India holds number 1 status in the production of which of
the following metals?
121. How much amount has been earmarked for Mahila Kisan (1) Copper
Sashaktikaran Pariyojana in the Union Budget 2010-11? (2) Iron
(1) Rs. 100 Crore (3) Mica
(2) Rs. 200 Crore (4) Lead
(3) Rs. 300 Crore
(4) Rs. 400 Crore 130. At which of the following places in Uttarakhand , Mahatma
Gandhi stayed for many days during India's Freedom
122. Which of the following state government confers Shikhar Struggle?
Samman? (1) Mussoorie
(1) New Delhi (2) Kausani
(2) Haryana (3) Almora
(3) Rajasthan (4) Nainital
(4) Madhya Pradesh
131. Who among the following has been described as 'Jawahar of
123. Currently who among the following is India's Cabinet Uttarakhand ?
Secretary? (1) Baldev Singh Arya
(1) Nirupama Rao (2) Badri Datt Pandey
(2) K. M. Chandrasekhar (3) Hemvati Nandan Bahuguna
(3) G S Pillai (4) Jagmohan Singh Negi
(4) G E Vahanvati
132. At which of the following place was India's First
124. What is the minimum age to be eligible for the benefits of Agricultural University established?
Janani Suraksha Yojna? (1) Pantnagar
(1) 17 years (2) 18 years (2) Kanpur
(3) 19 years (4) 21 years (3) Lucknow
(4) Kolkata
125. In which of the following schemes of the Union
Government, a benefit of Rs. 4000 is provided for pregnant 133. The ancient Takshshila Town was located between which
women? of the following rivers?
(1) Janani Suraksha Yojna (1) Indus & Jhelum
(2) Indira Gandhi Matritva Sahyog Yojna (2) Jhelum & Chenab
(3) National Maternal Benefit Scheme (3) Chenab & Ravi
(4) Navjat Shishu Suraksha Karyakram (4) Ravi & Beas

62 PT’s PrepTalk – June 2010


134. Mahakali Treaty is signed between India and which of the 142. The well-known brand YKK' is related to which of the
following neighbours? following ?
(1) China (1) Solution to computer problems for the year 2000
(2) Pakistan (2) Zippers
(3) Bhutan (3) Shoe laces
(4) Nepal (4) Cellular phones

135. Which article of the constitution of India lays down the 143. Milk is an example of which of the following ?
procedure for impeachment of the President? (1) Suspension
(1) Article 105 (2) Gel
(2) Article 61 (3) Emulsion
(3) Article 60 (4) Foam
(4) Article 35
144. The first computer vims in the world was created in :
136. Who among the following nominates the Chairman of (1) Pakistan
Public Accounts committee of India? (2) USA
(1) Prime Minister (3) Japan
(2) President (4) France
(3) Speaker of Lok Sabha
(4) Chairman of Rajya Sabha 145. What is the chemical name of Viagra ?
(1) Sildenafil Citrate
137. With which of the following sports is Rovers Cup related? (2) Acetylsalicylic Acid
(1) Badminton (3) Valium Acetyl Cynate
(2) Cricket (4) Valiumsalisylic Citrate
(3) Football
(4) Hockey 146. Which of the following is not a search engine ?
(1) Aspire
138. What is the name of the channel that separates the (2) Lycos
Andaman Islands from the Nicobar Islands in the Bay of (3) Dogpile
Bengal? (4) Altavista
(1) Nine Degree Channel
(2) 10 degree channel 147. Centre for DNA Fingerprinting and Diagnostics (CDFD)
(3) 12 degree channel is located at:
(4) Kardiva Channel (1) Delhi
(2) Kolkata
139. Justice P. Venkatarama Reddy heads which of the following (3) Hyderabad
commissions? (4) Chennai
(1) Farmer's Commission
(2) Committee on Telangana 148. The Green revolution in crops, Yellow revolution in oil
(3) 13th Finance Commission seeds and Golden revolution in .............. has been an
(4) 19th law Commission ample testimony to the contributions of agricultural
research and development efforts undertaken in the
140. Asiatic Lion is the state animal of which of the following country.
states? (1) Horticulture
(1) Rajasthan (2) Wheat
(2) Gujarat (3) Petrol
(3) Madhya Pradesh (4) None of these
(4) Maharastra
149. Which of the following parts of the sunlight makes the solar
141. Neem is a state tree of which of the following states? cooker hot ?
(1) Rajasthan (1) Ultraviolet
(2) Andhra Pradesh (2) Red light rays
(3) Gujarat (3) Infrared
(4) Madhya Pradesh (4) Cosmic rays

PT’s PrepTalk – June 2010 63


150. Where was the First Earth Summit held in 1992 to address 154. ICRA refers to :
environmental issues of the world? (1) Indian Credit Rating Agency
(1) Johannesburg (2) Investment Creation Rationing Authority
(2) Geneva (3) Investment Credit Rating Agency
(3) Seattle (4) Indian Cricket Renaissance Association
(4) Rio
155. What does ISP stand for ?
151. Pulitzer Prizes of the US are awarded for : (1) International Service Provider
(1) Music (2) Indian Service Provider
(2) Films (3) Internet Service Provider
(3) Print Journalism (4) Internet Start-up Provider
(4) None of these
156. What does CDMA stand for ?
152. World Red Cross Day is celebrated every year on : (1) Code Division Multiple Access
(1) May 16 (2) May 11 (2) Code Division Mobile Access
(3) May 8 (4) May 1 (3) Code Division Multiple Application
(4) Code Division Mobile Application
153. Name the website which broke the cricket match-fixing
story : 157. SEZ stands for :
(1) bazee.com (1) Southern Economic Zone
(2) tehelka.com (2) South European zone
(3) tazaakhabar.com (3) Special Economic Zone
(4) goforcricket.com (4) Special Eastern Zone

Answers to General knowledge


1. Ans.(3) 27. Ans.(2) 53. Ans.(1) 79. Ans.(4) 105. Ans.(3) 131. Ans.(4)
2. Ans.(2) 28. Ans.(3) 54. Ans.(2) 80. Ans.(1) 106. Ans.(2) 132. Ans.(1)
3. Ans.(1) 29. Ans.(4) 55. Ans.(2) 81. Ans.(3) 107. Ans.(4) 133. Ans.(3)
4. Ans.(3) 30. Ans.(4) 56. Ans.(3) 82. Ans.(2) 108. Ans.(2) 134. Ans.(4)
5. Ans.(4) 31. Ans.(1) 57. Ans.(2) 83. Ans.(3) 109. Ans.(3) 135. Ans.(2)
6. Ans.(4) 32. Ans.(3) 58. Ans.(4) 84. Ans.(2) 110. Ans.(2) 136. Ans.(3)
7. Ans.(3) 33. Ans.(2) 59. Ans.(4) 85. Ans.(2) 111. Ans.(1) 137. Ans.(3)
8. Ans.(1) 34. Ans.(4) 60. Ans.(3) 86. Ans.(2) 112. Ans.(3) 138. Ans.(2)
9. Ans.(4) 35. Ans.(2) 61. Ans.(2) 87. Ans.(2) 113. Ans.(1) 139. Ans.(4)
10. Ans.(1) 36. Ans.(2) 62. Ans.(3) 88. Ans.(3) 114. Ans.(4) 140. Ans.(2)
11. Ans.(4) 37. Ans.(3) 63. Ans.(3) 89. Ans.(4) 115. Ans.(4) 141. Ans.(2)
142. Ans.(1)
12. Ans.(2) 38. Ans.(1) 64. Ans.(4) 90. Ans.(3) 116. Ans.(3)
143. Ans.(3)
13. Ans.(4) 39. Ans.(2) 65. Ans.(2) 91. Ans.(1) 117. Ans.(2)
144. Ans.(3)
14. Ans.(3) 40. Ans.(2) 66. Ans.(2) 92. Ans.(3) 118. Ans.(4)
145. Ans.(1)
15. Ans.(2) 41. Ans.(2) 67. Ans.(3) 93. Ans.(3) 119. Ans.(3) 146. Ans.(1)
16. Ans.(2) 42. Ans.(1) 68. Ans.(3) 94. Ans.(2) 120. Ans.(2) 147. Ans.(3)
17. Ans.(4) 43. Ans.(4) 69. Ans.(4) 95. Ans.(4) 121. Ans.(1) 148. Ans.(1)
18. Ans.(2) 44. Ans.(4) 70. Ans.(2) 96. Ans.(2) 122. Ans.(4) 149. Ans.(3)
19. Ans.(2) 45. Ans.(2) 71. Ans.(4) 97. Ans.(3) 123. Ans.(2) 150. Ans.(4)
20. Ans.(3) 46. Ans.(1) 72. Ans.(4) 98. Ans.(3) 124. Ans.(3) 151. Ans.(3)
21. Ans.(4) 47. Ans.(2) 73. Ans.(2) 99. Ans.(3) 125. Ans.(2) 152. Ans.(3)
22. Ans.(4) 48. Ans.(3) 74. Ans.(2) 100. Ans.(2) 126. Ans.(4) 153. Ans.(2)
23. Ans.(3) 49. Ans.(2) 75. Ans.(1) 101. Ans.(4) 127. Ans.(2) 154. Ans.(3)
24. Ans.(4) 50. Ans.(3) 76. Ans.(2) 102. Ans.(3) 128. Ans.(2) 155. Ans.(3)
25. Ans.(2) 51. Ans.(3) 77. Ans.(1) 103. Ans.(1) 129. Ans.(3) 156. Ans.(1)
26. Ans.(3) 52. Ans.(2) 78. Ans.(1) 104. Ans.(4) 130. Ans.(2) 157. Ans.(3)

64 PT’s PrepTalk – June 2010


Wikipedia Logo

E verybody is quite familiar with Wikipedia, the world's


largest online resource for content about everything. On
January 15, 2001 when it was officially launched, the
founder Jimmy Wales used the American flag “Old Glory” as its
logo; but it turned out to be a bad idea and attracted widespread
Paul Stansifer, a.k.a. Paullusmagnus of the Wiki network, came
up with the winning Puzzle sphere design, which later slightly
amended by Nohat, a Wikipedia administrator, became the final
Wikipedia logo as we see it today. With this new Wikipedia logo,
Wikipedia has managed to demonstrate its worldwide reach and
criticism. its extensive research available on many aspects.

As of November 2007, SHAPE OF WIKIPEDIA LOGO:


Wikipedia has over 9 million
articles in 253 languages, The shape of the Wikipedia logo has a clear notion of power
written collaboratively by and strength, which reflects the firm hold of the company.
volunteers around the Wikipedia logo has an image of a puzzle sphere with some pieces
world. Wikipedia.org is also missing from the top of the globe. This image defines that the
ranked among the top ten website covers almost each and every aspect of what exists and is
most visited websites happening in the world.
worldwide.

Furthermore, it hints to COLOR OF WIKIPEDIA LOGO:


an improved form of Web
2.0, with regard to its user- In the Wikipedia logo, a soft and light shade of grey is used to
friendly interface and demonstrate the professional outlook of the foundation. The
unparalleled information grey hue is easy-to-remember and is uncomplicated, providing
database. another character to the Wikipedia logo. The sober color
highlights the firm’s integrity. Wikipedia logo is considered
At the time of its launch in 2001, Wikipedia needed a logo simple, distinctive and sophisticated due to its calm tint.
design which would represent its peculiarity and exclusive
initiative on the Internet. Hence, Jimmy ‘Jimbo’ Wales, founder FONT OF WIKIPEDIA LOGO:
of Wikipedia, used an American flag, Old Glory, as the
temporary Wikipedia logo, which was widely criticized. The Serif font in Wikipedia logo is kept very straightforward
yet elegant. The font in the slogan of Wikipedia logo, ‘The Free
ScottMoonen, the author of wiki engine, WikkiTikkiTavi, Encyclopedia’, is reserved to italic style. On the globe of
commented on the American flag Wikipedia logo as “extremely Wikipedia logo, some symbols of different languages are
ethno-centric”, and suggested to insert a globe in the Wikipedia represented, stating that the website comprises information in
logo to demonstrate the broad-based character of the website. many languages. Keeping a ‘the simpler, the better’ strategy in
mind, easy font is used for all groups of people to understand the
After several Wikipedia logo design recommendations by meaning behind the logo clearly. The Wikipedia logo bolsters
Wikipedians, and an international competition conducted for the viewer to draw to the website and seek information.
the same reason, a new and improved Wikipedia logo was finally Additionally, the Wikipedia logo intelligently depicts the
established that successfully corresponds to all the languages intended message of sharing knowledge and information
with an international perspective. without the communication barrier.

The first toothbrush with bristles was developed in China in 1498. Bristles were taken from hogs at first, later from horses.
The nylon bristles were developed in 1938 by DuPont.

PT’s PrepTalk – June 2010 65


News in brief

India
r Pritish Nandy is returning to his first r RSS said nationality should be the basis in the ongoing
calling, poetry, after 20 years of national census and not caste. "The RSS is following the
dabbling in filmmaking, art and principles of late Dalit leader B R Ambedkar. Right from
journalism. Nandy, who has collections the beginning, RSS is in favour of a casteless society and
like ''Lonesong Street'' and ''A Stranger any attempt to dilute it will hurt the sentiments of people,"
Called I'' to his credit, released his book RSS General Secretary, Bhaiyyaji Joshi told.
of poems ''Again''.
r A Delhi court rejected the bail plea of
r Israel's Ambassador to India Mark Madhuri Gupta, a junior Indian
Sofer, said in Jaipur that India and Israel would soon be diplomat arrested on charges of spying
signing a free trade agreement. for Pakistan's Inter Services Intelligence .

r An international rafting championship would be held r Commander Dilip Donde, a naval


in July to boost adventure tourism in Jammu and officer became the first Indian ever to circumnavigate the
Kashmir, Tourism Minister Nawang Rigzin Jora said. "An world solo on a sail boat when he steered into the Mumbai
International rafting Championship over Liddher River at harbour after an arduous voyage spanning a little over nine
Pahalgam would be organized in July this year", Jora said months. Commander Dilip Donde, who embarked on the
after flagging off rafting over river Sindh at Mammar, on voyage on August 19 last year on INSV (Indian Naval Sailing
Srinagar-Leh road. Vessel) Mhadei, approached the finish line as his boat,
ceremonially escorted by a fast-attack craft of the Indian
r After a high-level meeting with the Chief of Navy along with speedboats and two tugs operating their
Assam Tarun Gogoi and other senior water canons, touched base back in India at the Sunk Rock
officials of the state including the top brass of Light House Mumbai.
the security forces at Guwahati, India's Home
Minister, P Chidambaram said that the r Mufti of Darul Iftah of Bareilvi Sharif Mohd Ayyub Alem
counter insurgency operations in Assam will Rizvi has issued the fatwa that Muslim women can work in
continue till the rebels lay down their arms institutions after wearing the veil but with some conditions.
and shun violence.
r The government is planning to set up a civil aviation
r The Centre has approved 32 projects related to water safety advisory council in the wake of the devastating
conservation at a cost of Rs 126.94 crore in Meghalaya this Mangalore crash of an Air-India Express aircraft. The
year. "The ministry has released Rs 9.1 crore for the proposal was mooted during a high-level meeting at the
schemes. Ninety per cent of the cost for construction of ministry presided over by Civil Aviation Minister Praful Patel.
check dams and irrigation facilities would be borne by
Centre and 10 per cent would be incurred by state r In the backdrop of Ruchika Girhotra molestation case,
government," state Director of Soil and Water the Union law and justice ministry is working on the
Conservation A. Syiem said at the launch of Central Sexual Offences (Special Courts) 2010 Bill which aims
Accelerated Irrigation Benefits Programme (AIBP) at to fast-track cases of sexual offences. The proposed law
Jowai (Shillong). Syiem said eight projects for stipulate that investigation in such cases be completed
improvement of shifting cultivation covering an area of within six months to a year, and also proposes to make
4000 hectare with a project cost of Rs 4 crore was punishment for cases of sexual assault on women more
sanctioned and Rs 53 lakh has been released. stringent.

66 PT’s PrepTalk – June 2010


r The Supreme Court stayed the execution of Kolkata’s r In an expected turn of events, the Babri Masjid Action
American Center terror attack mastermind Aftab Ahmed Committee (BMAC) has asked the Central Bureau of
Ansari after admitting his appeal challenging the award of Investigation (CBI) to approach the Supreme Court
death sentence to him by the trial judge and confirmed by against the High Court decision of granting reprieve to the
the Calcutta high court. senior BJP leaders accused in the Babri demolition case.

r India is likely to join the league of five developed nations, r Rains and powerful winds triggered by cyclonic storm
who have a housing start up index (HSUI) of their own, Laila lashed Orissa's winding coast. The storm was
by the end of 2010. The work on preparing a database for centred near Machilipatnam in Andhra Pradesh, said the
the index has begun and, once it is started, the indices will Bhubaneswar meteorological centre.
be released on a quarterly basis. The housing index is
viewed as a key indicator of economic activity in the r Disgraced former Haryana DGP, SPS
countries where it is being used, particularly in the last Rathore, was sentenced to 18-month
couple of years of economic meltdown for which sub-prime prison term by a court in Chandigarh
housing loan crisis in the United States is often blamed. in Ruchika molestation case.
Besides the US, the other countries having a housing index
are the United Kingdom, Canada, Australia and r A city court New Delhi, ordered that
Japan. charges be framed against Congress
leader Sajjan Kumar and five others in a case of murder
r Union Minister for environment and instigating a mob which allegedly killed five people
and forests Jairam Ramesh’s during the 1984 anti-Sikh riots.
decision to set up a new authority,
‘National Environmental r TRS President, K Chandrasekhar Rao said there will be
Protection Authority’ (NEPA), a "terrible war" for achieving separate Telangana after
to regulate all environmental the Sri Krishna committee submitted its report to the
norm, has been sharply criticised Centre towards the end of this year.
by the green lobby. Speaking at a
national workshop to discuss the r Three Pune students are among the six selected to
setting up of this autonomous body, a majority of represent India at the 51st International Mathematical
participants told Mr Ramesh that the proposed regulation Olympiad (IMO) to be held at Astana in Kazakhstan
would not improve the quality of environmental from July 2.
governance.
r With the coming of 3G, the next wave of cyber attacks
r With 159 children below five dying due to malnutrition in will be on the mobile phone, said cyber security expert
2009, Madhya Pradesh is facing an acute food security Vijay Mukhi, at a seminar on the penultimate day of the
crisis. The state suffers from the lowest food consumption Cyber Safety Week 2010 organised by the Mumbai
levels in India which have further declined from 11 kg per Police.
month to 9 kg per month over the last five years.
r India has opened talks on civil nuclear energy with Japan
r Physicist and environmentalist Vandana Shiva has been and both sides have decided to set up a working group to
awarded the prestigious Sydney Peace Prize this year in examine the possibility of cooperation during an extended
recognition of her works in social justice. interaction between Japanese Minister for Economy, Trade
and Industr y Masayuki Naoshima and Planning
r A Defence Technology Commission will be set up on the Commission Deputy Chairman, Montek Singh
lines of the Atomic Energy Commission to improve the Ahluwalia, said highly placed sources.
functioning of the Defence Research and Development
Organisation (DRDO) laboratories in the country, V. K. r Chief Minister Mayawati's total assets are valued at
Saraswat, Scientific Adviser to the Defence Minister, said around Rs. 88 crore, according to a sworn affidavit she filed
in Visakhapatnam. at the time of her nominations to the Uttar Pradesh
Legislative Council elections. In 2007, her worth was
r One of the doyens of Telugu film industry, lyric writer Dr around Rs. 52.27 crore when she contested a Council by-
Veturi Sundararama Murthy, 74, died of a massive election after becoming Chief Minister. In three years, her
cardiac arrest at a private hospital in Hyderabad. assets have grown by over Rs. 35 crore.

PT’s PrepTalk – June 2010 67


News in brief

World
r China has no plans to build a mega dam over river r The US President, Mr Barack Obama,
Brahmaputra in Tibet as it is well aware of the concerns declared that the United States cannot
India and Bangladesh have in this regard, a senior academic act alone in the world and pledged to
attached to a state-run think tank said. shape a new “international order” as
part of a national security strategy to seal
r Indian-origin Britons were part of a 21-member crime his break with Bush-era policies.
gang involved in a $337.5 million tax fraud in the United
Kingdom. In total, the gang members have been jailed for r Pakistan has blocked 800 URLs that
a total of 74 years for their part in financial crime. The case, had “blasphemous” content in the wake of the ban on
described as one of the most complex investigations by Facebook and YouTube which featured cartoons of
Britain’s customs department, started in April 2002 and Prophet Mohammed.
after eight trials and retrials, it was closed when the final
defendant was sentenced. r The Google Chief Executive, Mr Eric Schmidt said he
suspects suppressing political criticism is a factor behind
r Pakistan government stuck to its the move to block YouTube and Facebook in Pakistan in the
decision that it would not reopen graft name of Islam.
cases against President Asif Ali
Zardari in Switzerland and told the r The United Nations has expressed concern over the
Supreme Court that reports about recruitment and use of minors by the Maoists in India and
his alleged involvement in laundering said there were credible reports that some young ones were
of $60 million were “exaggerated.” forcibly recruited from schools. It also highlighted an
incident in which Naxalites forced villagers to provide five
r Islamic police in Indonesia’s Aceh province have been boys and girls for their armed group in October 2009.
issued with 20,000 long skirts and ordered to cover up
women deemed to have broken Muslim dress codes, an r The Scientists have found a key gene that, when turned
official said. off, promotes the development of common kidney
cancer. Their findings suggest that a combination of
r Pakistan’s Supreme Court dismissed appeals by the federal agents now being tested in other cancers may turn the
and Punjab provincial governments against Jamaat-ud- gene back on, providing a much-needed therapy for the
Dawa Chief Hafiz Saeed’s release from house arrest for difficult-to-treat cancer. Researchers at Mayo Clinic’s
want of evidence. He is thus a free man again and no longer campus in Florida describe a gene called GATA3 that has
subject to house arrest. been silenced in clear cell renal cell carcinoma, the most
common kind of kidney cancer, and is a key gene also lost
r Israel had offered to sell nuclear bomb to South Africa in breast cancer.
during the apartheid era in the 1970s, a media reported.
r US researchers have developed the first bacteria cell
r Iran formally notified the UN atomic watchdog of its controlled by a synthetic genome, in a breakthrough
response to a nuclear fuel swap deal brokered by Turkey which may pose philosophical and scientific questions
and Brazil. Iranian, Brazilian and Turkish representatives, about the bid to recreate life.
as well as officials from the International Atomic Energy
Agency (IAEA), all arrived for a short meeting with the r Pakistan Army’s powerful generals have conveyed their
IAEA Chief, Mr Yukiya Amano, at his residence in central message to the government that they want General
Vienna. Ashfaq Pervez Kayani to continue as the Army Chief.

68 PT’s PrepTalk – June 2010


r The Al Qaeda has appealed to r Chinese Premier Wen Jiabao and
Muslim women, particularly his Japanese counterpart Yukio
those in Saudi Arabia, to travel to Hatoyama agreed to “activate a
Yemen and wage jihad. The civilian hotline” to address
appeal was made by Wafa al- sensitive issues between the two
Shahri, wife of Al Qaeda's second countries. At their summit in Tokyo,
in command in Yemen, Said al- the two leaders also agreed to “launch
Shahri. Wafa al-Shahri was directing her message in early negotiations to develop the East
particular to Al Qaeda colleagues in Saudi Arabia. China Sea oil and gas resources.”

r In a move likely to affect Indian professionals as well as r The US has spent around $40 million for training a "secret"
British trade and industry, Mr David Cameron’s dedicated unit of around 200 Mexican police and army
coalition government has decided to impose an annual cap personnel in an effort to hunt down drug kingpins, a
on the number of immigrants from non-European Union media report said.
countries.
r Iran has set up new equipment that could let it produce
r Major Powers, including China and Russia, have agreed more enriched uranium from a smaller amount of raw
on a new UN sanctions resolution against Iran over its material, diplomats said. The step could one day make it
nuclear programme, the United States said. easier to produce a nuclear bomb and is likely to give the US
more leverage with Russia and China in its push for new
r Bangladesh is planning a 15-days “paternity leave” for UN sanctions on Iran.
men, saying it was a justified legal claim for fathers of
newborn babies. “Such a proposal has been sent to the r British Prime Minister David Cameron chaired the first
women and children affairs ministry,” additional meeting of his new coalition Cabinet and decided to take a
establishment secretary, Mr Mohammad Sadiq, said. He five per cent pay cut for himself and all his ministers to
said the proposal had been prepared on the pattern start his austerity regime. Mr Cameron will take the
followed in other countries. highest pay cut, amounting to £7,500, and his annual salary
will be £142,500, compared to £150,000 salary of his
r A leading body of NRIs has asked New Delhi to withdraw predecessor Gordon Brown. The Cabinet ministers will
new rules seeking surrender of Indian passports upon take a £7, 082 salary cut to get annual salary of £134,565.
acquisition of US citizenship, saying they impose undue
burdens on the Indian American community. r Sudanese President Omar Hassan al-Bashir, the sole
sitting head of state wanted for war crimes by the
r The BBC apologised “unreservedly” after a radio International Criminal Court (ICC), was sworn after his
presenter jokingly announced that Queen Elizabeth II re-election in voting marred by boycotts.
had died. Disc jockey Danny Kelly, played the national
anthem God Save The Queen and told listeners he had an r Thai court approved an arrest warrant for fugitive former
important announcement to make before saying: “Queen premier Thaksin Shinawatra on terrorism charges in
Elizabeth II has now died.” The joke was made on BBC connection with deadly street protests, an official said.
WM, the local radio service in Birmingham and the
surrounding West Midlands area. r Nepal's Mountaineering Association has been honoured
more than 100 Everest successful climbers from all over
r Iran signed a nuclear fuel swap deal under which it will the world including Indian climbers in a special function to
ship 1,200 kilogrammes of low enriched uranium to mark the third International Everest Day(29 may).
Turkey, to help end Tehran’s stand-off with the West over
its atomic programme. The agreement, under which Iran r The legendary screen actor and Hollywood rebel Dennis
will receive nuclear fuel for its reactors, was signed Hopper, best known for directing and starring in his '60s
between foreign ministers of Iran, Turkey and Brazil. counterculture movie Easy Rider, has died at the age of 74.
Hopper appeared in more than 200 films, including Giant
r Malaysia’s decision to allow Indian Air Force to groom, and Blue Velvet, often playing the misfit, outsider or villain.
train and equip its frontline Sukhoi pilots is a proof of the But he then rode Easy Rider to unexpected success: The
south-east Asian country’s faith on New Delhi, a senior movie pulled in 50 million dollars, more than ten times the
IAF officer has said. original investment of 400,000 dollars.

PT’s PrepTalk – June 2010 69


News in brief

Business and economy


r Reliance Industries and its partner r The RBI governor, Dr D. Subbarao,
Hardy Oil have suspended drilling at said that Islamic banking was not
an exploratory well in the D3 block at possible within the existing legal
the KG basin. In a statement, Hardy framework of the country. While
Oil has cited “unresolved mechanical talking to mediapersons after the
issues associated with the blow out meeting of the RBI board, Mr
preventer”. Subbarao said that Islamic banking
did not involve payment of interest
r Hyderabad-based infrastructure firm Gayatri Projects and was based on sharing of both
signed an agreement with Singapore- based Sembcorp to profit and loss. This was not consistent with the protection
set up a 1,320 mw thermal power plant in Krishnapatnam, of depositors which was the prime aim of the RBI, he said.
Andhra Pradesh.
r The CBI has asked the Comptroller and Auditor General
r In a major acquisition deal, ICICI Bank announced the (CAG) of India to form a special team to investigate the
merger of the Bank of Rajasthan with it through a share- financial aspect of the investigations in connection with 2G
swap in a non-cash deal that values the BoR at about Rs spectrum auctions in which the Union telecom minister,
3,000 crore. Announcing the deal, ICICI Bank MD and Mr A. Raja is facing charges of corruption.
CEO, Ms Chanda Kochhar said that the merger would be
through offering 25 shares of ICICI for every 118 shares r A risky game of brinkmanship among Swiss political
of BoR but its promoters Tayal family, which hitherto have parties could sink a key deal to settle a bitter US tax case
over 50 per cent stake would not get a board seat in the against the UBS, triggering fresh legal action against the
amalgamated entity. bank and shaking trust in Switzerland. The government
has said it has no backup plan if the Parliament kills an
r The Indian government’s unique identity programme agreement clinched last August obliging Switzerland to
will have some major positive economical and social hand 4,450 UBS client accounts to the US tax authorities to
implications, with ample opportunity to leverage the settle tax evasion claims against the Swiss bank.
technology far more ambitiously and intensively, according
to global consultancy firm Deloitte. r The Naveen Jindal-led Jindal Steel and Power (JSPL)
will acquire the Oman-based Shadeed Iron and Steel Co for
r The US-based multinational pharma company Abbott has $ 464 million, which will enable the company to cater to the
acquired the domestic formulations business of Piramal Middle East and North African countries.
Healthcare Limited. The deal was signed for $3.72
billion with $2.12 billion to be paid upfront and $400 r The Munjal family, promoters of the Hero Group,
million annually for the next four years. announced a family settlement agreement following which
their 26% stake in the two-wheeler maker Hero Honda will
r The Indian family-owned investment firm Hinduja now be owned by Mr Suman Kant Munjal, the second son
Group said it has agreed to buy the private banking arm of of group Chairman, Mr Brij Mohan Lall Munjal.
Belgian firm KBC Group for 1.35 billion euros. The deal
comprises the sale of KBC’s entire interest in KBL r Andrew S. Grove, the former Chief Executive of Intel, is
European Private Banking and includes all the private taking the next step in his quest to infuse the engineering
banking subsidiaries as well as the custody and life discipline of Silicon Valley into the development of new
insurance businesses. medical treatments.

70 PT’s PrepTalk – June 2010


r Vodafone Group Plc signalled r The Planning Commission has lowered the target for the
increasing frustration with its key construction of roads under the NHDP scheme to 2,500
Indian unit, taking a charge of £2.3 km for the current fiscal from 3,165 km in the previous year,
billion ($3.3 billion) due to fierce which was not met by the road ministry. The Road
competition and rapidly escalating Transport and Highways Ministry could construct barely
spectrum costs. The world’s 2,009 kilo metre of roads under the National Highways
second-largest mobile operator by Development Project (NHDP) in the previous fiscal
revenue entered the Indian market in 2007 after beating against a target of 3,165 km.
rivals in a high-profile auction to make it the key territory in
its growing emerging markets portfolio. r The promoter of ABB Limited, the Switzerland based
power major, will make an open offer to raise its stake in the
r Former Director of McKinsey & Co and Indian School of Indian arm. The company
Business (ISB) Anil Kumar will pay a fine of $2.8 million wants to purchase 4.85
to settle the charges filed by the US market regulator SEC crore shares from the open
against him in the multi-billion dollar Galleon insider- market at a price of Rs
trading scam. 900/share.

r British energy group BP said the Gulf of Mexico leak will r In the first major victory over its rival Maruti Suzuki,
have only a “very modest” environmental impact, adding Hyundai’s i10 has driven past its rival Wagon R in the 1.1
that its engineers are siphoning up as much oil as litre engine category during FY10.During the period,
previously thought. Hyundai sold 1,49,242 units of i10 in the domestic market
as compared to Wagon R’s 1,44,898 units. Maruti Suzuki’s
r Global IT management software vendor, CA Technologies, WagonR had been dominating this segment until now. The
is all set to execute its vision for emerging markets where it Hyundai Motor India Ltd (HMIL) Director (marketing),
expects to see double digit growth rates, especially from Mr Arvind Saxena, said the company has “sold as many as
hyper growth economies such as India and China. The $4.3 149,242 units of i10 in the Indian market during 2009-10,
billion company is increasing its sales headcount in which makes it the top selling car in the 1.1 litre capacity
emerging markets by 25 per cent which will take its segment”.
headcount to 650 people in fiscal 2010-11. Additionally, CA
Technologies is leveraging the expertise of a seasoned r Nitol-Niloy Group, which markets Tata brand of
management team and localizing products to suit the commercial vehicles in Bangladesh, is planning to set up a
needs of different emerging markets with a totally new 1,000-MW power plant in the country in a joint venture
approach to sales, pricing and packaging in these markets. with the Indian conglomerate. Nitol-Niloy has taken steps
to set up the largest-ever power plant in Bangladesh. The
r A crisis in the Eurozone is likely to hit India’s export sector local partner will conduct a feasibility study for setting up a
as the bloc is one of the top trading partners. “More than 20 coal-based power plant for the Tata management.
per cent of India’s exports are to Europe,” says Mr Gopal
Agrawal, Deputy CIO, Mirae Assets. r Japanese carmaker Suzuki Motor Corp is recalling the
automatic transmission version of its compact car “Alto” in
r Steel Authority of India Limited (SAIL) is exploring the Europe, which is sold under the brand A-Star in India.
possibilities of setting up joint ventures with Tata Steel and
Arcelor-Mittal to manufacture steel. Last year, SAIL had r Godrej Consumer Products will buy out its partner Sara
signed a MoU with Posco of Korea to set up a proposed joint Lee’s 51 per cent stake in joint venture company Godrej Sara
venture steel plant in Jharkhand with the production Lee Limited. Godrej Sara Lee is into household insecticides,
capacity of two million tonnes per annum and a CRMO andownsbrandssuchas“Goodknight”and“Hit.”
(chromoly steel) plant in Maharashtra.
r Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI)
r Google Inc is closing its four-month-old online cell commenced the construction of its second two-wheeler
phone store, abandoning an ambitious plan by the Web production plant at Tapukara Industrial Area (near
search leader to redefine wireless retailing. Google said it Bhiwadi, Rajasthan) to meet increasing demand in the
will stop selling its Nexus One smartphone through its growing domestic motorcycle market. HMSI is investing
online Web store and will instead work with partners to sell around Rs. 500 crore in the new plant that will be ready by
the device through retail outlets. mid-2011 and will have annual capacity of 6-lakh units.

PT’s PrepTalk – June 2010 71


Book Review

We are like that only


UNDERSTANDING THE LOGIC OF CONSUMER INDIA
by Rama Bijapurkar

E very major marketing company in the


world wants to enter the Indian
market with its offerings, as India
happens to be the world's largest potential
market waiting to be harnessed. With
N R Narayana Murthy, Chief Mentor of
Infosys in his afterword has highlighted that
"The author's detailed research and her
expertize on the subject is validated by a text
which is simple and cogent, yet interesting and
liberalization, the interest in India has jargon free".
increased. The reasons are not far to seek. In
a democracy like India, markets are Rama Bijapurkar has given examples
characterized by variation, stratification, across India giving a national orientation. A
maturity and some market categories by major merit of the book is that it is data driven.
growth. Every major MNC that entered India The author has made a sharp analysis of the
has found the Indian consumer demanding, many Indias that exist in the market, bringing
defying the conventional logic of marketing, out its plurality. She has questioned the
leaving the marketer confused. conventional view of some professional
consultants that Indian markets would evolve
The Indian consumer visits malls to in the same manner as developed markets did
purchase branded goods but continues to from their market infancy. The author has
patronize his/her neighborhood kirana store. emphasized the Indian consumer market
Many questions emerge: why are demand patterns different in feature of continuity with change giving the example of the six
India? Is there a middle class in India? Does `bottom of the yard sari and the blouse that have retained their popularity.
pyramid' make business sense? Where does India stand in terms
of market sophistication and consumption? How can companies Taking cues from economics, demography, history, culture,
understand the Indian consumer? philosophy and good old common sense, Rama Bijapurkar
makes sense of the complex and inscrutable Indian market – the
The book endeavors to seek answers to such questions and many Consumer Indias, their diverse and schizophrenic
to provide insights. In his foreword to the book, eminent consumer behaviour and the way to make your company's
management guru, C K Prahalad highlights that the book fortune in this billion plus market.
illustrates that "any broad generalization of the Indian
consumer" can be erroneous and Rama Bijapurkar's analysis is A powerful book, it is the definitive epitaph for formula
useful for both MNCs planning their entry in India as well as strategy approaches to India's consumer markets, especially of
established Indian enterprises. the 'global' transplant kind.

The book ‘We are like that only’ is divided into 13 chapters. The world's most expensive postage stamp was sold at
All the chapters are linked together by the common thread of auction in Geneva to an international consortium on May 23,
understanding the Indian consumer and his behavior. The 2010 auctioneers said. It is one of the rarest known stamps, the
author has made a case that the nature of emerging market “Treskilling Yellow” or three-shilling stamp was issued by
economies such as India is different and need not follow a mistake in 1857. A Swedish schoolboy stumbled upon it in
`global standard', that India, within a restrictive regulatory 1885. Since then it has passed through the hands of a series of
framework of the past, has developed a sophisticated and stamp collectors. The last time it was sold, in 1996, it fetched
complex marketing system with innovations in products, 3.6 millions d'euros (4.5 million dollars) at auction. Stamp
distribution and advertising and that India may not follow the auctioneers, David Feldman did not disclose the identity of the
pattern of evolution of developed markets. buyers, nor the price paid this time round.

72 PT’s PrepTalk – June 2010

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