AAKASH TABLET PROBLEMS

What went wrong with the Aakash Tablet

Published on Wed, Jun 27, 2012 at 10:50 |  Source : Forbes India

Updated at Wed, Jun 27, 2012 at 10:56  

Seema Singh/ Forbes India

The disastrous Aakash project has expunged India's dream of developing the world's cheapest computing device. And questions remain unanswered

Imagine for a moment you're a scientist looking at a stubborn problem - in this case, a mass of a few hundred million poor, uneducated people. To lift them out of poverty, friends who study economics tell you the first thing you ought to do is offer them access to affordable education. And that if you can, you'll achieve three things. Create a better world; create an incredibly compelling business; and perhaps get a stab at immortality. 

There are two ways to go about the problem. The first, you reckon you ought to think through the problem. That means look at the world around you, tinker with ideas, figure what works best, and build a cost-effective solution that eventually helps achieve the objectives stated above.

The second is a pig-headed one. Look at how others around the world are attempting to crack the problem; call in the global media; tell them a tablet-like device with a touch screen can be built and sold at USD 35; another matter altogether you’ve got no clue how to go about it or why; and then try your damndest best for a stab at glory. In any case, as long as the problem is cracked, who gives a damn?

With the benefit of hindsight, it is now obvious the Ministry of Human Resource Development (MHRD) chose the pig-headed option. What else explains the fact that almost two years ago, the ministry announced it is in the middle of developing a low-cost computing device for students that would cost just USD 35? And that when complete, a global tender for five million units of the device would be floated? The blitz that accompanied the announcement had the world in a tizzy.

A little less than a year later, in February 2011, the Indian Institute of Technology (IIT), Jodhpur, which had taken upon itself the onus to decide what specifications this animal would run on, put out a global tender to build the first 10,000 units. In return for these services, the institution received Rs 47 crore from the government. DataWind, a 12-year-old Canadian company with subsidiaries in the UK and India won the contract, produced a prototype built to spec, and Kapil Sibal, the minister in charge of MHRD, unveiled Aakash, the world’s cheapest computing device.

To put it mildly, the prototype was a disaster. Some phones in the market worked faster than this contraption. The battery couldn’t last two hours if a user tried to play video files on it. The touch screen, well, wasn’t “touchy” enough. And things got ugly between IIT Jodhpur and DataWind. Sibal finally stepped in and in early April this year announced that an upgraded version of the device will be made available by May. 

As this story goes to press, we’re in the middle of June. Aakash-2 is still being tested by C-DAC in Thiruvananthapuram; IIT Bombay has been appointed the new nodal institution to drive the project and officials there claim 100,000 units will be supplied for pilot tests by October this year. 
On its part, DataWind claims the 100,000 units have already been supplied to the institute. Nobody seems to have a clue what the truth is. What we know is this: Similar computing devices with superior capabilities are being brought out of Chinese factories by the thousands; India seems to have lost the plot; and what could have been an incredibly compelling story is now a stillborn.

The race to build the world’s cheapest computing device started when the One Laptop Per Child (OLPC) project was announced in 2005. Headed by Nicholas Negroponte, best known as the founder of MIT’s Media Labs, it was a non-profit entity and funded by global majors like AMD, Google and Nortel among others. The central theme to this idea was to build a laptop that would cost no more than USD 100. 

But Negroponte was not a pig-headed man. He was clear that while keeping costs low was important, it wasn’t the central objective. Instead, it was to make sure technology and resources could be delivered to schools in the least developed countries. He wasn’t hung up on the USD 100 number. He knew that costs could go up by USD 30-40 or even USD 100. For various reasons though, a laptop at USD 100 was the number that stuck in the minds of people across the world - including NK Sinha, joint secretary at the MHRD.

While the OLPC project has gone through many ups and downs including funders backing out, NK Sinha proposed the MHRD develop a laptop at USD 10 - one-tenth of the price the OLPC had proposed. .....................................

..............http://www.moneycontrol.com/news/features/what-went-wrong-aakash-tablet_722104.html

Infy-NarayaMurty, Sibulal..PAYCUT...CONDITIONS..

27 JUN, 2012, 07.09AM IST, HARSIMRAN JULKA & DEVINA SENGUPTA,ET BUREAU Amid tough market conditions IT honchos like SD Shibulal, Vishnu R Dusad, Arvind Thakur, NRN Murthy take a pay cut
NEW DELHI | BANGALORE: Chief executive officers of most software companies took a pay cut last year, involving a steep decline for many, as they tried to lead by example in the middle of a tough market environment.

This was especially true for the CEOs who are also founders of companies, such as SD Shibulal of Infosys, whose total compensation fell about 30% to 91 lakh in 2011-12 compared with a year ago.

Human resources experts believe the pay for top executives of IT and business process outsourcing companies is likely to fall further this year because the gains from the rupee's steep depreciation cannot continue to compensate for a decline in market conditions.

"No one can afford to defer increments for staff while the CEO gets a raise. Austerity steps have to be flagged off first by the founding member or CEO," said Kunal Banerjie, CEO of Pune-based executive search firm Absolute HR International.

Software industry grouping Nasscom has projected that growth in fiscal year 2012-13 will slow considerably, to between 11% and 14%, with some suggesting that even this forecast is optimistic.

It is not the first time that senior executives at Infosys, which announced a salary freeze and a cut in variable pay in April, are seeing a decline in compensation. In 2008, a dismal year, board members had to forego 60% of their variable pay.

"The Infosys leadership has always led from the front and the reduction in our CEO compensation is a simple reflection of our variable pay structure, which is tightly linked to company performance," it said in a statement.

Other than Infosys, the top software services companies have not announced a salary freeze so far this year for their staff.

At Nucleus Software, CEO Vishnu Dusad saw his salary decline by nearly two-thirds to Rs 69.7 lakh in 2011-12, in what he described as a 'token cut' that does not impact the company too much. "But for others, it's an indication to all stakeholders that the market does not look very well and we have to buckle up," he said. Arvind Thakur of NIIT Technologies opted for a 3% salary cut. Thakur said CEOs taking pay cuts this year even if the company is doing well "might spook investors".

The CEOs of better-performing software companies in the top tier - Tata Consultancy Services and Cognizant - saw their rewards increase. Including the bonus, the total pay of TCS' N Chandrasekharan increased almost 50% to Rs 8 crore. Francesco D'Souza of Cognizant received a 5% increase in base salary to $566,500 and a 10% higher bonus.

SR Manjunath, head of human resources at Bangalore-based NetApp, said he does not expect a blanket dip in CEO salaries in the services sector; rather, it will be company- and individual-specific. "Companies that are into services have the salaries of CEOs linked to profitability. For product companies, there is no linkage and it is driven by a different set of performance objectives."

PRANAB THE GREAT

26 JUN, 2012, 04.21AM IST, ABHEEK BARMAN,ET BUREAU 

Why the Opposition’s claim that Pranab Mukherjee was a lousy finance minister is wrong

Today, Pranab Mukherjee will bow out of active politics and stake claim to the largely-ceremonial office of President of India. The opposition BJP, which has no chance of getting a candidate of its choice elected toRashtrapati Bhavan has started its catcalls, labelling Mukherjee as one of the worst finance ministers in recent history. 

It argues first that, under Pranab, India's growth fell off a cliff. Second, during Pranab's tenure, finance ministry mandarins clawed back many discretionary powers to probe businesses, powers they had lost in previous years.

Third, that Pranab's March Budget, which clarified that overseas companies had to pay capital gains tax if they traded in Indian assets, has scared off foreign investors. 

Each of these claims is bunk. First, take a look at India's growth since reforms began in 1991-92. That year was a disaster, because the outgoing government had left a pile of debt to be paid off from empty coffers and the war in the Gulf messed up our oil economy. But over the next 13 years or so, the economy bounced back, growing at an average of 6-6.5% every year. 

Then, during three years from 2006 to 2008, India seemed to shift gears and growth jumped to 9%-plus. People assumed that this was the new normal, but they were wrong. What happened around the world during those years was the growth of an enormous bubble in everything from copper and oil to stocks and real estate. This bubble affected every country that had functioning markets. 

Though India tries to protect its markets from financial volatility, it wasn't immune to global trends: higher asset prices drove up wages and bonuses, investors flush with cash pumped money into any snake oil or wind energy project that was pitched to them. India's growth depends more on government and private investment than on consumption, so when investments soared, so did growth. 

When the air finally whooshed out of the bubble in 2009, the world economy fell off a cliff. That was the year Pranab took over as finance minister and he played copybook policy. He dropped tax rates and pumped money into many sectors. Instead of falling off a cliff as the US and Europe did, India's growth rate merely dipped to 6.7%, and then rose to 8%-plus for two years after that. 

Today, India is growing at its average post-reform rate, not at the bubble rate. This is not the hallmark of a failed finance minister but of a successful one. 

Investments are key to India's growth. When we went bust in 1990-91, investments were around 25% of the size of the economy. Today, they are a healthy 35% of the economy, off the heady peak of 38% during the bubble year of 2007-08, but respectable nevertheless. 

The Opposition now says that under Pranab, the finance ministry has taken on huge powers to probe dodgy transactions by businesses. These powers, they argue, can be misused to harass people and extort money from them. 

The argument is hypocritical. For years, the Opposition, especially the Bharatiya Janata Party, has screamed about mythical trillions of dollars in secret overseas accounts, allegedly salted away from India. It has asked for these transactions to be probed and the money brought back. 

http://economictimes.indiatimes.com/opinion/comments-analysis/why-the-oppositions-claim-that-pranab-mukherjee-was-a-lousy-finance-minister-is-wrong/articleshow/14398766.cms

NIFTY strength gains, momentum weakens…

The Indian markets are displaying very good strength in building the bottom but the rapid rise of the top is not getting the support from the buyers. The Buyers are more willing to buy and accumulate the blue chip stocks at bottom level of Nifty at 4800-4900. The same kind of buying support is not coming at the higher level despite of some good news flowing into the streets.

The Indian economy is more independently dependant on the RAIN GOD. Our success story is built on the local consumption and the production. Still we are an agrarian country despite of our good number of export figures being supported from the IT and other manufacturing sectors.

Now our oil bill is mounting and the current account deficit is enlarging. The strengthening of dollar against Euro (for a different reason, happened) also encouraged gaining strength against other currencies. The Rupee   depreciation rather encouraged/accepted by the economy experts (to a level upto Rs54) from the 48-49 rage. For now the traders are heavily betting on the fall.  The situation turned so bad that now fire fighting measures are happening from North block and RBI to save Rupee slide.

The Nifty technically in bulls grip and heading towards the higher range, though it is difficult to cross the hurdles around 5350-80 level. The bottom support right now holding at 5050 level. The Markets may wait for some good news from Europe and US by staying between 4950-5280 levels.

The rupee fall definitely helps the IT and ITES companies. The billing pressure due to Euro crisis can be seen after second quarter. Most of the IT companies might have booked the profits when Rupee around 55. Now the situation has worsened. But for new contracts and Pharma companies the profits will increase as they enjoy the fall.

The economy is doing well on the back of the earlier stimulus measures taken across the globe. So the Indian economy also enjoyed the injected money flow. Now the momentum is slowing down and the expansion plans are shelved or deferred for want of support.

The steel companies are expecting a price rise and Coal India is also planning to rise prices.

The worlds largest furniture maker IKEA is planning to invest Rs10,000 crs.

Suzlon sold China unit for Rs 300 cr.

The POSCO land allotment in Odissa still finding space in headlines.

RINL prefers to delay the listing.

The US bank Wells Fargo plans to swift jobs to India due to cost effectiveness, Where as Barclays India plans to trim its size of work force.

Pranab last working day as FM may send some positive signals to markets to improve the sentiment.

THE STOCK MARKETS GEARED UP??????

24 JUN, 2012, 06.50AM IST, SWAMINATHAN S ANKLESARIA AIYAR,TNN Bad news: World is sliding into a new recession


Many rich countries have struggled for three years to emerge fully from the Great Recession of 2008-09 . Alas, the world is slipping into a new recession. No global authority has dared say so, but the writing is on the wall.

A classic lead indicator of a global recession is a crash in commodity prices, which is evident today.

Brent crude, the benchmark variety that determines Gulf oil prices for India, has fallen from $125/barrel in January to barely $ 90/barrel. Major global commodity indices have slumped over 20%. Mittal and Tata are closing some global steel plants because of falling demand. Prices of non-ferrous metals, cotton, coal and iron ore have crashed.

This reflects decelerating or falling GDP growth across the globe, and growing realization that conditions will remain depressed for some time. Europe has long been a troubled zone, but the US economy is stalling while ominous negative signs emanate from China.

The Eurozone was predicted to have a mild recession starting October 2011 and ending by the summer of 2012. The region slid down in the October-December quarter and then, thanks to a good German performance, stabilized in the January-March quarter. But the latest data show European growth plummeting in the April-June quarter, with even German factories suffering the sharpest contraction since June 2009. The UK, which is outside the Eurozone , is deeply in double-dip recession.

Optimists think that even if rich countries get into trouble, the strength and resilience of fast-growing emerging markets - above all China - will stem the rot. Alas, China is slowing down too. The HSBC Purchasing Managers' Index shows that Chinese manufacturing has actually fallen in May and June.

China's slowdown has hit Japan, which depends on exports to that destination. Japan is now running trade deficits month after the month, for the first time in decades. This is a game-changer .

The global fall in commodity prices has sent shock waves through all countries that prospered by riding the commodity boom, including Brazil and Russia. India, a net commodity importer, should gain from falling prices. Yet its GDP growth has plummeted too.

There is a standard remedy for recessions . Governments cut interest rates, provide easy money, and run large fiscal deficits to revive demand. Alas, these strategies have very limited scope today because the world is already replete with loose monetary and fiscal policies thanks to attempts to regain momentum after the 2008-09 Great Recession.

Interest rates are at or below 1% in Europe, Japan and the US. The US Federal Reserve and European Central Bank (ECB) have injected trillions of dollars and euros respectively into their regions, breaking all records in easy money.

Narayana Hrudayalaya HEALTH CARE PLAN

24 JUN, 2012, 09.13AM IST, TNN 

Get a cardiologist’s opinion for just Rs 10

AHMEDABAD: Think corporate hospital and you think of consultation fee that can burn a hole in the pocket of middle- and lower middle-class patients. However, Narayana Hrudayalaya (NH), a corporate hospital giant from south India that has recently set up base in Ahmedabad, has announced that people can take a specialist doctor's opinion for just Rs 10!

The OPD where people will be charged Rs 10 for consulting medical, cardiology, paediatric, surgery and other specialist consultants is called 'Jan Hitaay' OPD. The service was formally launched by Member of Parliament (MP) Harin Pathak on Saturday.

Hospital officials said that the 'Jan Hitaay' OPD has been launched to make quality healthcare affordable to the common man. "People who do not have money to spend on specialist need not go only to the government hospitals. We aim to provide quality healthcare to people at affordable costs in a corporate setup" , said an official of NH Hospital.

Under the 'Jan Hitaay' programme, super specialist's consultation and medical investigation will also be offered at a discounted rate.

Narayana Hrudayalaya was inaugurated in Ahmedabad in May. Under the phase-I of the Health City project, a 300-bed healthcare facility has been set up, which offers all kind of medical services such as advanced cardiology unit, cardiac surgical unit for adults and children along with orthopedic, neurosciences , urology, nephrology, critical care and medicine, pediatrics , gynaecology, gastro sciences, advance diagnostics like 1.5 Tesla MRI & 64 Slice CT Scan and Mammography.

Narayana Hrudayalaya is also in the process of setting up a 5,000-bed Health City with a medical college and nursing and paramedical educational institution in the 37 acre campus situated at Rakhiyal.

http://economictimes.indiatimes.com/news/news-by-industry/healthcare/biotech/healthcare/get-a-cardiologists-opinion-for-just-rs-10/articleshow/14368612.cms

Monsoon's impact on Indian economy

NEW DELHI | Sat Jun 23, 2012 1:02pm IST

(Reuters) - The Indian Meteorological Department (IMD) has forecast an average monsoon in 2012, retaining its earlier forecast in April.

CLASSIFICATION

An average or normal monsoon means rainfall between 96 and 104 percent of a 50-year average of 89 centimetres during a four-month season from June, India's weather office says. Rainfall below 90 percent of the average is considered a drought.

ARRIVAL

The monsoon season starts with the arrival of the rains on the southern Kerala coast around June 1. Its progress triggers planting of summer crops.

PROGRESS

After hitting the south coast, it takes about a week to cover the coffee, tea and rubber growing areas of south India. It spreads to the rice areas of eastern parts in the first 10 days. It usually covers half of the country in the first fortnight and enters the oilseed-producing areas of central India in the third week of June. Cotton areas in the western region get rains by the first week of July. It covers entire country by mid-July.

Half of India's farm output comes from crops planted during the first half of the June-September season.

Here are some facts on the monsoon and its impact:

CROPS

RICE -- Farmers sow paddy at the start of the monsoon in June and the key areas are in the east and south. The crop is heavily dependent on rains for irrigation.

A bumper harvest last year led the government to lift a four year ban on exports and rainfall within the average will erase any chance of a return of the export ban for the world's second largest producer of the grain after China.

SUGARCANE: An average monsoon will help the world's top sugar producer after Brazil to keep its free export policy on sugar in the new season from October 1.

OTHERS: Corn, lentils, oilseeds and cotton -- important crops in western and central India -- have some dependency on the seasonal rains. India remains a net importer of lentils and cooking oils and domestic output can alter overseas purchases. An average rainfall could allow the world's second biggest producer of cotton continue with its free policy on overseas sale.

ECONOMY AND MARKETS

-- The monsoon rains are vital for farm output and economic growth in India, the world's second-biggest producer of rice, wheat, sugar and cotton. Farm sector shares for about 15 percent of India's nearly $2 trillion economy, Asia's third biggest.

-- India is largely self-sufficient in major foodgrains such as rice and wheat, but drought can send the country to global markets. In 2009, India had to import sugar, sending global prices to record highs and pushing up inflation.

- Higher farm output would rein in food prices and help the government to take steps to cut the fiscal deficit and farm subsidies. India's food inflation rose to 10.66 percent in May from 10.18 percent in April, latest figures show.

-- A stronger economic outlook can lift sentiment in equity markets, mainly of companies selling products in rural areas, including consumer goods and automobiles.

-- Monsoon rains impact demand for gold in India, the world's top consumer of the metal, as purchases get a boost when farming incomes rise amid high crop output.

IRRIGATION, POWER

-- Monsoon rains replenish reservoirs and lift ground-water levels, allowing better irrigation and more hydropower output.

-- Higher rainfall can cut demand for subsidised diesel, which is used to pump water from wells for irrigation and makes up for about 40 percent of India's oil products demand.

(Reporting by Ratnajyoti Dutta in NEW DELHI)

http://in.reuters.com/article/2012/06/23/india-monsoon-factbox-idINDEE85L0BL20120623