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CAT is finally going online

The common admission test (CAT) will finally go online from 2009. The Indian Institute of Managements (IIMs), including the Rajiv Gandhi Indian Institute of Management, Shillong, issued a pre-qualification bid on Monday inviting service providers, IT firms specialising in assessment and testing services, for computerisation of the CAT exam. ET reported this first on October 24, 2007.

   The decision will benefit thousands of students who take CAT each year. Last year 2,30,000 students appeared for CAT and the numbers are expected to increase to more than 3,00,000 in 2008. According to sources, the IIMs are contemplating conducting CAT online for almost 15 days, during which students can choose when to take the exam. Initially the IIMs were contemplating a time period of 30 days.

   "The initiative will be rolled out in 2009. The idea is to provide a time window, whereby students can take the examination within the stipulated period," said IIM Lucknow director Dr Devi Singh. The last forum of IIM directors' was held at IIM Lucknow on February 21. An additional reason to take the CAT online is to reduce the time spent on administration and evaluation process. When ET contacted IIM-Ahmedabad director Prof Samir Barua he said he had "no comments to offer on the recent development".

   The decision comes after a long wait. According to sources, the first directors' forum was held in July 2007 where Prometric, one of the leading testing and assessment services firm, made a presentation to the directors of all seven IIMs.

   The pre-qualification bid document states that the service provider will undertake tasks right from application processing, test construction, test delivery, result processing to score reporting. Prometric and Attest Testing Services (a wholly owned subsidiary of Aptech) among various other testing and assessment services firms are expected to bid for the contract. With the CAT going online, 124 other management institutions which use the CAT score will also streamline their admission processes in accordance with the new system.

   Experts, though, believe that there will be significant challenges the IIMs will have to overcome to implement a robust system, the primary one being providing physical infrastructure. There is a case where implementation on such a large scale has failed — the computerisation of the Xavier's admission test (XAT) in 2002.

   Students' will not be charged exorbitantly for taking the exam online. According to sources, the price is expected to increase marginally, about 40-50% from Rs 1,100 now to about Rs 1500-1600.

Discuss about this at ManagementJuice.com

Via:ET

Quick Budget 2008 overview

Quick Budget overview from IBNLIVE.com

1.            Tax exemption hiked from Rs 1,10,000 to Rs 1,50,000

2.            Minimum relief of Rs 4,000 to all assessees

3.            10% tax between Rs 1.50,001 and Rs 3,00,000

4.            20% tax between Rs 3,00,001 and Rs 5,00,000

5.            30% tax on income above Rs 5,00,001

6.            No change in corporate income tax rate

7.            Women exemption hiked to Rs 1,80,000

8.            Tax exemption for senior citizens upto Rs 2.25 lakhs

9.            Tax exemption for women up to Rs 1,80,000

10.         Banking cash transaction tax withdrawn from April 1, 2009

11.         Indirect tax proposals to result in loss of Rs 5,000 cr

12.         Direct tax proposals to be revenue neutral

13.         Dividend of subsidiary company exempt from DDT

14.         Reduce central sales tax to 2%

15.         Increase in short term capital gains tax to 15%

16.         5-yr tax holiday for setting up hospitals in tier-II, tier III regions

17.         Excise duty of Rs 1.35/litre on unbranded petrol

18.         Excise duty of Rs 4.6/litre on unbranded diesel

19.         Commodities Transactions Tax to be introduced

20.         Securities Transaction Tax to be treated like deductible expenditure

21.         5-yr tax holiday to 2,3,4-star hotels in UNESCO's heritage sites

22.         NO FBT on creche, employee sports, guest houses facilities

23.         No change in corporate income tax rate

24.         No change in corporate surcharge tax

25.         Duty on two wheelers reduced from 16 to 12 pc

26.         Tax slab for Rs 3-5 lakh is 20%, above 5 lakhs 30%

27.         Senior citizens' exemption hiked from Rs 1,95,000 to 2,25,000

28.         Women exemption threshold hiked from Rs 1,45,000 to 1,80,000

29.         Tax exemption hiked from Rs 1,10,000 to Rs 1,50,000

30.         Duty on non filter cigarettes to be raised

31.         Excise duty slashed to 8% on water purification items

32.         Duty withdrawn on naptha for production of polymers

33.         Reduce excise duties on anti-AIDS drugs

34.         Tax-GDP ratio up at 12.5%

35.         Excise on paper and paper products reduced

36.         Excise duties on buses, chassis slashed

37.         Excise on small cars to 14%

38.         Excise on pharma goods slashed to 14%

39.         General CENVAT rate on all goods from 16% to 14%

40.         Customs duty on few bulk drugs cut to 5%

41.         Customs duties on crude sulphur reduced to 2%

42.         Exempt on duties on coral

43.         Duties on convergence products slashed to 5%

44.         Fully exempt duties on Set top boxes

45.         Reduce duties on steel melting scrap, aluminum scrap

46.         No change in peak rate of customs duties

47.         Revenue Deficit will be 1.4 % agt Budget Estimate of 1.5%

48.         Planning Commission to evaluate major schemes

49.         Sixth central pay commission to submit report by March 31, 2008

50.         Grant of Rs 50 cr to Natl Tiger Conservation Authority

51.         Rs 75 cr to ICCR for cultural development

52.         Defence allocation hiked by 10% to Rs 1,05,600 cr

53.         Rs 32,676 crore as subsidy to PDS

54.         Smart-card based PDS system in Haryana, Chandigarh

55.         Allocation of Rs 44 cr to 22 Sainik schools each

56.         Rs 75 cr to Agri Ministry for soil testing labs in 250 districts

57.         Rs 15,000 cr for non-profit body for skilled dev programme

58.         Launch a world-class skilled development programme

59.         PAN requirement for all securities transactions

60.         To start a forex derivative market

61.         More transparency in the derivative market

62.         Risk Capital Fund to be set up in SIDBI

63.         National Highway Dev programme gets Rs 12,966 cr

64.         Accelerated power development programmes to get Rs 8,000 cr

65.         Ultra mega power project at Tilana shortly

66.         Rs 12,956 Cr for NHDP

67.         Banks to be encouraged to embrace total financial inclusion

68.         Foreign invt up to $8 bn expected for oil block exploration

69.         Coal regulator to be set up

70.         17 lakh families of weavers under Health Insurance

71.         State data centres scheme approved and get Rs 275 cr

72.         1 lakh broadband-enabled common service centres in villages

73.         Enhance allocation of NHDP programme

74.         Rs 800 cr for power reforms

75.         Manufacturing growth rate to be taken to double digit

76.         RIDF corpus to be hiked to Rs 14,000 cr

77.         Total estimate of loans being waived is Rs 50,000 cr

78.         Implementation of debt waiver scheme to end by June 30

79.         Waiver amounts to 4% of total bank loans

80.         Rescheduled farm loans eligible for waiver

81.         Sensex down 210 points

82.         Speaker calls for silence

83.         Din in House over PC's relief plans to farmers

84.         Marginal, small farmers to get full waiver on all loans

85.         500 soil testing labs to be set up in the country

86.         Scheme of debt waiver and debt relief for farmers

87.         Allocation for NRHM increased to Rs 12,050 cr

88.         National Horticulture Mission gets Rs 1,100 cr

89.         Weather-based crop insurance scheme to get Rs 50 cr

90.         Rs 20,000 cr for irrigation projects under AIPB

91.         Special grant of Rs 20 cr to Tea Research Association

92.         Rs 500 cr to be allocated for micro irrigation schemes

93.         More funds for cardamom, coffee growing

94.         Rashtriya Krishi Vikas Yojana to get Rs 2,80,000 cr

95.         53 minor irrigation programmes to be implemented

96.         Target of Rs 2.80 lakh cr for agri-credit in 2008-09

97.         Ministry of Woman and Child Dev gets Rs 7,200 cr

98.         24% increase in allocation for child development

99.         Rs 500 cr for development of border areas

100.      Rs 1,042 cr for anti-Polio drive

101.      Jawaharlal Nehru Urban Renewal Mission to get Rs 6,865cr

102.      Growth of agri-credit impressive

103.      Allocation for ICDS increased to Rs 6,300 cr

104.      Minority Affairs Ministry fund doubled to Rs 1,000 cr

105.      288 PSU bank branches in minority districts

106.      Rs 540 cr for development plan for minority districts

107.      Rs 500 cr for corpus fund to subsidise all women

108.      LIC to cover all women Self-help Groups linked to banks

109.      Rs 200 crore for potable water in schools

110.      Rs 12,050 cr for strengthening rural health services

111.      Sanitation programmes to get Rs 1200 cr

112.      More minority recruitments in central para-military forces

113.      ICDS allocation hiked to Rs 6,300 cr

114.      Rs 300 cr for desalination plant near Chennai

115.      Rs 75 cr for Rajiv Gandhi Natl Fellowship Prog

116.      Natl Handicap Development Corp to get Rs 9 cr

117.      Natl Minorities Development Corp to get Rs 75 cr

118.      Allocation for NE schemes up from 14,365 cr to 16,400 cr

119.      Rajiv Gandhi Drinking Water mission allocation hiked

120.      NREG scheme to be rolled out in 596 districts

121.      National Rural Health Mission allocation hiked by 15%

122.      Remuneration of Anganwadi helpers hiked to Rs 750

123.      Remuneration of Anganwadi workers hiked to Rs 1,500

124.      3 IIScs in Bhopal and Trivandrum

125.      National Programme for the Elderly to be set up

126.      Rs 30,000 health cover for every worker in unorganised sector

127.      2 schools of Planning and Architecture

128.      Secondary education Scheme Rs 4,554 crore

129.      Rs 100 cr to Ministry of Science and tech for Natl Knowledge Network

130.      All knowledge bodies to be connected via broadband

131.      Rs 85 crore to building a knowledge society

132.      Scholarships for science and research

133.      Education and Health allocation up 20%

134.      Service Sector to grow at 10.7%

135.      3 IITs in AP, Bihar and Rajasthan

136.      16 central universities to be set up

137.      Mid-day meal scheme extended to upper primary classes

138.      Budgetary allocation for mid-day meal scheme Rs 8,000 cr

139.      Rs 10 cr for Nehru Kendras in 110 districts

140.      Rs 34,400 cr budgetary allocation for education

141.      Sarva Shiksha Abhiyaan gets Rs 13,100 cr

142.      Bharat Nirman Programme gets allocation of Rs 31,280 cr

143.      410 Vidyalayas in villages

144.      Navodiya Vidyalayas in 6,0-00 districts

145.      6,000 model high schools to be set up

146.      Agricultural growth rate at 2.6%

147.      Education, health pillars of social sector reforms

148.      2008-09 will be a year of consolidation

149.      Budget 08-09 about raising our sights, doing better

150.      Capital inflows in excess of economic deficit

151.      Confident of maintaining 8% growth

152.      Impact of global mkts on local mkts unclear

153.      Govt, RBI to jointly work to check capital inflow

154.      Govt will monitor foreign fund inflow

155.      Check foreign inflow to stabilise Indian mkts

156.      Capital Inflow needs to be managed more actively

157.      Agri credit doubled in first 2 years of UPA rule

158.      Global markets are weak

159.      Inflation will be checked

160.      Sustained progress thanks to economic reforms

161.      Launched Rashtriya Krishi Vikas Yojna

162.      All time record for food grain output in 2007

163.      Total output of food grains 219.32 mn tonnes

164.      We must be vigilant for downside risk

165.      Crude oil down significantly

166.      Agriculture was disappointing

167.      Capital inflow poses a challenge to monetary management

168.      Growth rate is 8.8%

169.      Service sector is the driver of Budget

170.      Since Aug 2007 financial economies witnessed turmoil

171.      2007-08 has been a challenging year

172.      Finance Minister P Chidambaram begins addressing Parliament

173.      Pandemonium in the House as Oppn holds up speech

174.      This is PC's seventh Budget, UPA government's last before it goes to poll next year

175.          The next Union Budget will be a vote-on-account because of general elections

Finance Minister Budget 2008 Speech

Budget 2008-2009

Speech of P. Chidambaram (Minister of Finance Indai)
Mr. Speaker, Sir

I rise to present the Budget for 2008-09. This House and the United Progressive Alliance Government have bestowed upon me the honour of presenting all five Budgets on behalf of a Government - a rare honour that I have the privilege to share with only one of my distinguished predecessors, Dr. Manmohan Singh.

I. THE ECONOMY: AN OVERVIEW

2. Honourable Members! The India growth story, so far, has been an absorbing and inspiring tale. Beginning January 1, 2005, the economy has recorded a growth rate of over 8 per cent in 12 successive quarters up to December 31, 2007. In the first three years of the UPA Government, the Gross Domestic Product (GDP) increased by 7.5 per cent, 9.4 per cent and 9.6 per cent, resulting in an unprecedented average growth rate of 8.8 per cent. In the current year too, according to the Advance Estimates by the Central Statistical Organisation (CSO), the growth rate will be 8.7 per cent - although I am confident that we will maintain the average of 8.8 per cent. The drivers of growth continue to be "services" and "manufacturing", which are estimated to grow at 10.7 per cent and 9.4 per cent, respectively.

3. Nevertheless, 2007-08 has been the most challenging of the last four years. At the beginning of the year, the outlook for the global economy was benign. Our economy, thanks to our own policies as well as globalisation, was poised to record another year of high growth: in fact, the first half of 2007-08 returned a growth of 9.1 per cent. However, since August 2007, the financial markets in the developed countries have witnessed considerable turbulence that has not yet abated. The consequences for developing countries are also not yet clear.

4. Moreover, agriculture has struck a disappointing note. Despite a fine start in the first half of 2007-08, the growth rate for the whole year in agriculture is estimated at only 2.6 per cent.

5. There are other downside risks too. World prices of crude oil, commodities and food grains have risen sharply in the period April 2007 to January 2008. The position of crude oil is well known to this House. Among commodities, the prices of iron ore, copper, lead, tin, urea etc are elevated. The prices of wheat and rice have increased in the world market by 88 per cent and 15 per cent, respectively. All these trends are inflationary, and there is pressure on domestic prices, especially on the prices of food articles. Consequently, the management of the supply side of food articles will be the most crucial task in the ensuing year.

6. We have also witnessed capital inflows that are far in excess of the current account deficit. This poses a challenge to monetary management. The solution lies in increasing the absorptive capacity of the economy in the medium term. In the short term, it is our responsibility to manage the flows more actively. Government will, in consultation with the RBI, continue to monitor the situation closely and take such temporary measures as may be necessary to moderate the capital flows consistent with the objective of monetary and financial stability.

7. Keeping inflation under check is one of the cornerstones of our policy. Recently, the Prime Minister declared, "I think no Government in our country can be oblivious to the objective of ensuring reasonable price stability without hurting the growth process." There can be no clearer enunciation of policy. However, since the downside risks have increased worldwide, we must be vigilant and prepared to make swift adjustments in our policies to achieve the goal of growth with price stability.

8. Let me first deal with agriculture, briefly for the present, and at some length later. The Ministry of Agriculture has estimated that the total output of food grains in 2007-08 will be 219.32 million tonnes and that will be an all time record. In particular, production of rice is estimated at 94.08 million tonnes; maize at 16.78 million tonnes; soya bean at 9.45 million tonnes; and cotton at 23.38 million bales (of 170 kg each) - and each of these will be an all time record. Government is conscious that while a lot has been done, a lot more needs to be done. Since the last Budget, Government has formulated and announced the National Policy for Farmers. Besides, Government has launched the Rashtriya Krishi Vikas Yojana with an outlay of Rs.25,000 crore and the National Food Security Mission with an outlay of Rs.4,882 crore. Both schemes will be implemented during the Eleventh Five Year Plan period. We are determined to become self-sufficient in food grains. Presently, I shall place before this House a number of new initiatives in the agriculture sector.

The Growth Story: Faster and more inclusive

9. To return to the India growth story, I am of the firm belief that we owe our sustained progress to the policy of economic reforms first ushered in by a Congress Government and now carried forward by the UPA Government.

10. If 1984 and 1991 were turning points in the history of India's economy, 2004 was another turning point. Confident that high growth was sustainable, the UPA Government had declared in the National Common Minimum Programme its intention to make growth more inclusive. Sir, I ask this House, respectfully, to judge our record on inclusive growth from the following sample of facts:

• agricultural credit doubled in the first two years of this Government and is poised to reach a level of Rs.240,000 crore by March 2008.

• the National Rural Employment Guarantee Scheme has proved to be a historic measure of empowerment of Scheduled Castes and Scheduled Tribes and, especially, of women.

• the Mid Day Meal Scheme is the largest school lunch programme in the world covering 11.4 crore children.

• the National Rural Health Mission has taken improved health care to rural India by strengthening the primary health centres of which 8,756 have been made 24 x 7.

• the Kasturba Gandhi Balika Vidyalaya Scheme has enrolled 182,000 girls in residential schools, thus helping to bridge the gender gap in education.

Bharat Nirman

11. Bharat Nirman has made impressive progress in 2007-08. This ambitious programme is now over 1,000 days old. At the current pace, on each day of the year 290 habitations are provided with drinking water and 17 habitations are connected through an all weather road. On each day of the year 52 villages are provided with telephones and 42 villages are electrified. On each day of the year 4,113 rural houses are completed.

12. Mr. Speaker, just as I sat down to write this speech, I received a slim volume titled "Indira Gandhi - Selected Sayings". Within minutes, I found this gem and I quote, "The more one does, the more one attempts, the more one is capable of doing". What I have narrated so far is indeed proof of more inclusive growth, but if you ask me "can we do better?", my answer would be "we can and we should." Budget 2008-09 is about raising our sights and doing more and doing better.

II. THE ELEVENTH FIVE YEAR PLAN:

THE CRUCIAL SECOND YEAR

13. The Eleventh Plan has started on a note of robust growth. Never before did we start a Plan with a first year growth rate of 8.7 per cent. Government regards the second year of the Plan as extremely critical to the success of the Plan. 2008-09 should be a year of consolidation; of securing the ongoing programmes on firm financial foundations; of close monitoring of implementation and enforcing accountability; and of measuring the outcomes in terms of the targets achieved as well as their quality. The Plan documents assumed that the Gross Budgetary Support (GBS) in the second year would be Rs.228,725 crore. In our view, that will not be enough. Hence, I propose to increase the GBS to Rs.243,386 crore, which will represent an increase of Rs.38,286 crore over the allocation in 2007-08.

14. Out of the GBS, the allocation for the Central Plan will be Rs.179,954 crore, marking an increase of 16 per cent over 2007-08.

15. Let me assure the House that all ongoing programmes will receive ample funds.

16. For Bharat Nirman, I propose to provide Rs.31,280 crore [including the North Eastern Region (NER) component] as against Rs.24,603 crore in 2007-08.

Education: Sarva Shiksha Abhiyan

17. Education and health are the twin pillars on which rests the edifice of social sector reforms. The total allocation for the education sector (including NER) will be increased by 20 per cent from Rs.28,674 crore in 2007-08 to Rs.34,400 crore in 2008-09.

18. Of this, Sarva Shiksha Abhiyan (SSA) will be provided Rs.13,100 crore; the Mid-day Meal Scheme will be provided Rs.8,000 crore; and secondary education will be provided Rs.4,554 crore.

19. The focus of SSA will shift from access and infrastructure at the primary level to enhancing retention; improving quality of learning; and ensuring access to upper primary classes.

20. A Model School programme, with the aim of establishing 6,000 high quality model schools, will be started in 2008-09. I propose to provide Rs.650 crore for the new scheme.

Jawahar Navodaya Vidyalaya

21. Jawahar Navodaya Vidyalayas are quality schools. In order to make such schools more accessible to SC and ST students, Government plans to establish Navodaya Vidyalayas in 20 districts that have a large concentration of Scheduled Castes and Scheduled Tribes. I propose to set apart Rs.130 crore in 2008-09 for this purpose.

Kasturba Gandhi Balika Vidyalaya

22. Kasturba Gandhi Balika Vidyalayas were set up to address the issue of equity in the education of girls belonging to SC, ST, OBC and minority communities. So far, 1,754 vidyalayas have been started, and I propose to allocate funds (as part of SSA) to set up an additional 410 vidyalayas in educationally backward blocks. I also propose to provide a sum of Rs.80 crore to set up new or upgrade existing hostels attached to the Balika Vidyalayas.

National Means-cum-Merit Scholarship

23. Last year, I had announced the National Means-cum-Merit Scholarship Scheme to enable students to continue their education beyond class VIII and up to class XII. I had provided Rs.750 crore with the promise to add a like amount every year for three more years. The Scheme will be implemented by award of 100,000 scholarships beginning 2008-09. I intend to keep my promise and earmark another sum of Rs.750 crore so that a corpus of Rs.3,000 crore will be built up in four years.

Nehru Yuva Kendra

24. 123 districts do not have a Nehru Yuva Kendra. I propose to allocate Rs.10 crore in 2008-09 to set up a Kendra in each of these districts and to cover the recurring expenditure in the first year.

Mid-day Meal Scheme

25. The Mid-day Meal Scheme has been extended to upper primary classes in 3,479 educationally backward blocks. The scheme will now be extended to upper primary classes in Government and Government-aided schools in all blocks in the country. This will benefit an additional 2.5 crore children, taking the total number of children covered under the Scheme to 13.9 crore.

Institutes of Higher Education

26. Knowledge is power. It is knowledge that will drive success in the 21st century. India has the opportunity to become a knowledge society. Following the Prime Minister's announcement, an IIM at Shillong; three IISERs at Mohali, Pune and Kolkata; and an IIIT at Kanchipuram have started functioning. Government will establish one Central University in each of the hitherto uncovered States. We propose to make a beginning in 2008-09 by establishing 16 Central Universities. Besides, we propose to set up three IITs in Andhra Pradesh, Bihar and Rajasthan; two IISERs at Bhopal and Tiruvananthapuram; and two Schools of Planning and Architecture at Bhopal and Vijayawada. More institutes of higher education, as promised by the Prime Minister, will be established during the Eleventh Plan period.

27. I also propose to make a grant of Rs.5 crore to the Deccan College Post-Graduate and Research Institute, Pune which is one of the oldest institutions of modern learning in India.

Science and Technology

28. We must encourage our children to take to careers in science and research and development. Ministry of Science and Technology will introduce a scheme called Innovation in Science Pursuit for Inspired Research (INSPIRE) that will include scholarships for young learners (10-17 years), scholarships for continuing science education (17-22 years) and opportunities for research careers (22-32 years). I propose to provide Rs.85 crore in 2008-09 for this inspired contribution to building a knowledge society.

29. The recommendations of the National Knowledge Commission, submitted from time to time, are under active consideration. Some of them have been incorporated in the Eleventh Plan. Government has accepted an important recommendation to inter-connect all knowledge institutions through an electronic digital broadband network. This will encourage sharing of resources and collaborative research. I propose to provide Rs. 100 crore to the Ministry of Information and Technology for establishing the National Knowledge Network.

Health

30. Turning to the health sector, I propose to allocate Rs.16,534 crore for the sector (including NER). This will mark an increase of 15 per cent over the allocation in 2007-08.

National Rural Health Mission

31. The National Rural Health Mission (NRHM) is the key instrument of intervention by the Central Government. The goal is to establish a fully functional, community owned, decentralised health delivery system. 462,000 Associated Social Health Activists (ASHAs) and link workers have been trained and are in place. 177,924 Village Health and Sanitation Committees are functional. 323 district hospitals have been taken up for upgradation. Ambitious goals have been set for 2008-09, and I propose to increase the allocation for NRHM to Rs.12,050 crore .

HIV/AIDS

32. The National Aids Control Programme will be provided Rs.993 crore. Studies have shown that the prevalence rate of HIV/AIDS has come down from 0.9 per cent to 0.36 per cent, which is a matter of some satisfaction.

Polio

33. The drive to eradicate polio continues with a revised strategy and a focus on the high risk districts in Uttar Pradesh and Bihar. I propose to provide Rs.1,042 crore in 2008-09 for this purpose.

Rashtriya Swasthya Bima Yojana

34. Two major interventions are planned to be started in 2008-09. The first is the Rashtriya Swasthya Bima Yojana that will provide a health cover of Rs.30,000 for every worker in the unorganised sector falling under the BPL category and his/her family. I am happy to report that most of the States have agreed to join the Yojana and it will be launched in Delhi and in the States of Haryana and Rajasthan on April 1, 2008. I propose to provide Rs.205 crore as the Centre's share of the premia in 2008-09.

National Programme for the Elderly

35. The other major intervention will be for the elderly. A National Programme for the Elderly with a Plan outlay of Rs.400 crore will be started in 2008-09. Among other measures, we will establish, during the Eleventh Plan period, two National Institutes of Ageing, eight regional centres, and a department for geriatric medical care in one medical college/tertiary level hospital in each State.

Integrated Child Development Services

36. The universalization of the Integrated Child Development Services (ICDS) Scheme is underway. At the end of December 2007, 5,959 ICDS projects and 932,000 Anganwadi and mini-Anganwadi centres were functional. The beneficiary count had increased to 629 lakh children and 132 lakh pregnant and lactating mothers. I propose to enhance the allocation for ICDS from Rs.5,293 crore in 2007-08 to Rs.6,300 crore in 2008-09.

37. I am also happy to announce that the remuneration of Anganwadi workers will be increased from Rs.1,000 per month to Rs.1,500 per month. Likewise, the remuneration of Anganwadi Helpers will be increased from Rs.500 per month to Rs.750 per month. Over 18 lakh Anganwadi workers and helpers will benefit from the increase.

Flagship Programmes

38. As Honourable Members are aware, there are eight flagship programmes of the UPA Government. I have dealt with two in the education sector (SSA & MMS) and two in the health sector (NRHM & ICDS). Let me now refer to the allocations that I propose to make for the other four flagship programmes:

• The National Rural Employment Guarantee Scheme (NREGS) will be rolled out to all 596 rural districts in India. Initially, we will provide Rs.16,000 crore. Let there be no apprehension in anyone's mind: as demand rises, more money will be provided to meet the legal guarantee of employment.

• The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is the main vehicle for improving urban infrastructure. It has also succeeded in driving reforms in urban governance and urban-related laws. I propose to increase the allocation from Rs.5,482 crore in 2007-08 to Rs.6,866 crore in 2008-09.

• The goal of the Rajiv Gandhi Drinking Water Mission is to supply safe drinking water to uncovered habitations and slipped back habitations as well as to address issues of quality. I propose to enhance the allocation to Rs.7,300 crore in 2008-09 as against Rs.6,500 crore in 2007-08.

The Mission does not yet have a separate component for school children in water-deficient habitations. Our children should have good, clean drinking water. Hence, I propose to allocate funds to the Mission under a separate sub-head in order to install a standalone system to provide potable water to each school in water-deficient habitations. The cost of each system, depending on the technology and design, is estimated to be between Rs.15,000 to Rs.30,000. While a detailed plan for four years will be drawn up, I propose to make an initial allocation of Rs.200 crore in 2008-09.

• The Total Sanitation Campaign is all about changing habits and mindsets, and it is a continuous process. I propose to provide Rs.1,200 crore in 2008-09.

Desalination Plant

39. Honourable Members will recall that I had in July 2004 announced support for a desalination plant to be installed near Chennai. A proposal has now been received from the Government of Tamil Nadu to establish a plant under public private partnership. While the proposal will be examined for approval, I propose to signal the Government's support to the project by setting apart Rs.300 crore in 2008-09.

North Eastern Region

40. The North Eastern Region (NER) will continue to receive special attention and enhanced allocations. I propose to provide Rs.1,455 crore to the Ministry of Development of North Eastern Region (DONER). Including that amount, the total Budget allocation for NER, spread over different ministries/departments, will increase from Rs.14,365 crore in 2007-08 to Rs.16,447 crore in 2008-09.

41. The North Eastern Region and, especially, Arunachal Pradesh and the border areas face special problems that cannot be tackled in the usual course or through normal schemes. Hence, Government proposes to identify the urgent needs of these areas and address them through a special mechanism. In order to jumpstart the process, I propose to set apart a sum of Rs.500 crore in a fund dedicated for the purpose.

SC, ST, OBC and Minorities

42. Scheduled Castes, Scheduled Tribes, socially and educationally backward classes, and minorities will continue to receive special attention.

Development and Finance Corporations

43. Development and Finance Corporations have been set up for certain disadvantaged groups. I propose to contribute additional equity to these corporations in the following manner:

Rs. Crore

National Minorities Development and Finance Corporation

75.00

Three National Finance and Development Corporations for Weaker Sections comprising

(i) Safai Karamcharis

(ii) Scheduled Castes

(iii) Backward Classes

106.50

National/State Scheduled Tribes Finance and Development Corporations

50.00

National Handicapped Development Corporation

9.00

Scholarships

44. In previous Budgets, we had announced a slew of pre- and post-matric scholarship programmes for SC, ST, OBC and minorities. All of them will be continued in 2008-09 with adequate funds as summarised below:

Scheduled Castes Rs.804 crore

Scheduled Tribes Rs.195 crore

Other Backward Classes Rs.164 crore

Minorities (post-matric) Rs.100 crore

45. I propose to allocate a sum of Rs.75 crore in 2008-09 to the Rajiv Gandhi National Fellowship Programme. As Honourable Members are aware, this programme supports SC and ST students pursuing M.Phil and PhD courses.

Scheduled Castes and Scheduled Tribes

46. Following the practice initiated in 2005-06, I have included in the Budget documents a statement on the schemes for the welfare of SCs and STs. I have provided Rs.3,966 crore for schemes benefiting SCs and STs exclusively and Rs.18,983 crore for schemes where at least 20 per cent of the benefits are earmarked for SCs and STs.

Minorities

47. The allocation to the Ministry of Minority Affairs will be increased from Rs.500 crore in 2007-08 to Rs.1,000 crore in 2008-09. Government has taken up the report of the Justice Rajindar Sachar Committee for speedy implementation. Apart from the schemes commenced in 2007-08, it is proposed to implement the following schemes/measures in 2008-09:

• a multi-sectoral development plan for each of the 90 minority concentration districts will be drawn up at a cost of Rs.3,780 crore. The allocation in 2008-09 will be Rs.540 crore;

• a pre-matric scholarship scheme with an allocation of Rs.80 crore next year;

• a scheme for modernising Madrassa education for which a provision of Rs.45.45 crore has been made in 2008-09;

• 256 branches of public sector banks have been opened this year until December 2007 in districts with substantial minority population. 288 more will be opened by March 2008 and many more in
2008-09; and

• continuing the exercise started this year, more candidates belonging to the minority communities will be recruited to the Central Para-Military Forces.

48. I also propose to provide Rs.60 crore to enhance the corpus fund of the Maulana Azad Education Foundation.

Women and Children

49. I confess that policy makers often tend to forget that one-half of the population is constituted by women and they are entitled to an equal share - and an equal say - in all programmes and schemes. Gender Budgeting has gained wider acceptance and credibility. Four more ministries/departments have set up gender budgeting cells taking the total number to 54. Honourable Members will find in the Budget documents a statement embracing 33 demands for grants contributed by 27 ministries/departments and 5 Union Territories. According to the statement, Rs.11,460 crore has been provided for 100 per cent women-specific schemes and Rs.16,202 crore for schemes where at least 30 per cent is for women-specific programmes.

50. We will score another 'first' this year. A statement on child related schemes is included in the budget documents and Honourable Members will be happy to note that the total expenditure on these schemes is of the order of Rs.33,434 crore.

51. I propose to allocate Rs.7,200 crore in 2008-09 to the Ministry of Women and Child Development. This represents an increase of 24 per cent over the allocation in 2007-08.

Self Help Groups

52. The Life Insurance Corporation of India (LIC) runs the Janashree Bima Yojana and offers life and permanent disability cover to people in 44 categories. One of the categories is Self Help Groups, but only 35,000 SHGs have been covered so far. Considering the fact that there are over 30 lakh SHGs credit-linked to banks, I propose to single out this category for special attention. I propose to ask LIC to rapidly scale up the scheme and cover all women SHGs that are credit-linked to banks. Since one-half of the premium is subsidized through the Social Security Fund, I propose to contribute Rs.500 crore to the corpus of the fund with the assurance that annual contributions will be made as the scheme is scaled up. This scheme, together with the Rashtriya Swasthya Bima Yojana, will mark the beginning of a new deal for women by providing them life and health cover.

Supplement to GBS

53. Honourable Members will note that the allocations to various sectors and schemes are generous. I hasten to add that more can be done and more will be done subject, however, to one condition: the condition of performance. In the last Budget, I had announced a Plan 'B' and I was able to provide additional Plan funds of Rs.8,365 crore in cash through two supplementaries - and a third one will follow shortly. The nub of the problem lies in implementation - and implementation mostly is in the hands of State Governments. This year too, I intend to mobilise additional resources to the tune of Rs.10,000 crore to be used for Plan capital expenditure. This money - under Plan 'B' - will be available to ministries/departments of the Central Government and to State Governments that achieve the physical and quality targets set under different Plan schemes.

III. AGRICULTURE

54. I shall now return to the subject of agriculture.

55. I have already referred to the Rashtriya Krishi Vikas Yojana and the National Food Security Mission.

Agricultural Credit

56. Notwithstanding some shortcomings, the growth of agricultural credit has been impressive and for this I have to thank our scheduled commercial banks and Regional Rural Banks. Between them, they account for about 75-79 per cent of agricultural credit disbursed during any year. We will exceed the target set for 2007-08. For 2008-09, I propose to set a target of Rs.280,000 crore.

57. Short-term crop loans will continue to be disbursed at 7 per cent per annum and I am making an initial provision of Rs.1,600 crore for interest subvention in 2008-09.

Investment in Agriculture

58. What ails agriculture, among other things, is the fall in investment. However, there seems to be a turnaround. Gross Capital Formation (GCF) in agriculture as a proportion of GDP in the agriculture sector has improved from a low of 10.2 per cent in 2003-04 to 12.5 per cent in 2006-07. This, however, needs to be raised to 16 per cent during the Eleventh Plan to achieve the target growth rate of 4 per cent.

Water Resources

59. Government is investing heavily in the Accelerated Irrigation Benefit Programme (AIBP) and the Rainfed Area Development Programme and in the management and augmentation of water resources. Under AIBP, 24 major and medium irrigation projects and 753 minor irrigation schemes will be completed in this financial year, creating additional irrigation potential of 500,000 hectare. The outlay for 2007-08 was Rs.11,000 crore with a grant component of Rs.3,580 crore. These are being increased in 2008-09, and the estimated outlay is Rs.20,000 crore with a grant component of Rs.5,550 crore.

60. The Rainfed Area Development Programme has been finalised and will be implemented in 2008-09 with an allocation of Rs.348 crore. Priority will be given to those areas that have not been the beneficiaries of watershed development schemes.

61. The centrally sponsored scheme on micro irrigation launched in January 2006 has brought an area of 548,000 hectare under drip and sprinkler irrigation within two years. I propose to allocate Rs.500 crore for the scheme in 2008-09 with a target of covering another 400,000 hectare.

62. Agreements have been signed with the World Bank by the Governments of Tamil Nadu, Andhra Pradesh and Karnataka under the project to repair, renovate and restore water bodies. The three agreements are for a total sum of US$738 million that will benefit a command area of 900,000 hectare. I am confident that similar agreements will be signed soon between the World Bank and the Governments of Orissa, West Bengal and some other States.

Irrigation and Water Resources Finance Corporation

63. While these ongoing programmes will raise the level of investment in agriculture, I think that we need an ambitious scheme of a much larger proportion. Government is of the view that massive investments are required to be made in irrigation projects. Recently, Government has approved 14 projects that satisfy certain criteria as national projects and three of them alone would require Rs.7,000 crore during the Eleventh Plan period. Having regard to the magnitude of the challenge, I propose to establish the Irrigation and Water Resources Finance Corporation (IWRFC) with an initial capital of Rs.100 crore contributed by the Central Government. State Governments and other financial institutions will be invited to contribute to the equity. It is our intention to mobilise the very large resources that will be required to fund major and medium irrigation projects. I hope to be able to incorporate IWRFC as a company before March 31, 2008.

National Horticulture Mission

64. The National Horticulture Mission (NHM) now covers 340 districts in 18 States and two Union Territories. An area of 276,000 hectare has been brought under horticulture crops and an area of 56,000 hectare of old plantations has been rejuvenated. Special thrust is being given to the revival of crops such as coconut, cashew and pepper. NHM will be provided Rs.1,100 crore in 2008-09.

65. 500 soil testing laboratories will be set up in the public and private sectors during the Eleventh Plan period with Government assistance of Rs.30 lakh per laboratory. In addition, I propose to make a one-time allocation of Rs.75 crore to the Ministry of Agriculture in order to provide one fully-fitted mobile soil testing laboratory each to 250 districts of the country before March 2009.

Plantation Crops

66. The Special Purpose Tea Fund set up last year for re-plantation and rejuvenation will be provided Rs.40 crore in 2008-09. I propose to provide funds for similar support to other plantation crops such as cardamom (Rs.10.68 crore), rubber (Rs.19.41 crore) and coffee (Rs.18 crore). A crop insurance scheme for tea, rubber, tobacco, chilli, ginger, turmeric, pepper and cardamom will be introduced next year.

67. In order to promote research on matters concerning the plantation sector, I propose to make a one-time grant of Rs.5 crore to the Centre for Development Studies, Tiruvananthapuram. The Tocklai Experimental Station at Jorhat of the Tea Research Association will celebrate its centenary in 2010. It is in the process of upgrading its facilities and expanding its activities to cover other North Eastern States, North Bengal and Darjeeling. I propose to make a special centenary grant of Rs.20 crore to the Tea Research Association.

68. The National Plant Protection Training Institute at Hyderabad will be converted and upgraded into an autonomous National Institute of Plant Health Management with budgetary support of Rs.29.4 crore.

Crop Insurance

69. Pending a decision on an alternative crop insurance scheme that is acceptable to the farmers as well as viable to the insurer, the National Agriculture Insurance Scheme (NAIS) will be continued in its present form for Kharif and Rabi 2008-09. I propose to provide Rs.644 crore for the scheme.

70. In addition, the Weather Based Crop Insurance Scheme that is being implemented as a pilot scheme in selected areas of five States will be continued. I intend to provide Rs.50 crore for this purpose in 2008-09.

71. Government will continue to provide fertilisers to farmers at subsidized prices. Government is examining proposals to move to a nutrient based subsidy regime and alternative methods of delivering the subsidy.

Cooperative Credit Structure

72. The Prof. Vaidyanathan Committee's report on reviving the short-term cooperative credit structure is under implementation in 17 States. So far, a sum of Rs.1,185 crore has been released by the Central Government to four States. I am happy to report that the Central Government and the State Governments have reached an agreement on the content of the package to implement the Prof. Vaidyanathan Committee's report on reviving the long-term cooperative credit structure. The cost of the package is estimated at Rs.3,074 crore, of which the Central Government's share will be Rs.2,642 crore or 86 per cent of the total burden.

Debt Waiver and Debt Relief

73. Sir, while I am confident that the schemes and measures that I have listed above will give a boost to the agriculture sector, the question that still looms large is what we should do about the indebtedness of farmers. Honourable members will recall that Government had appointed a Committee under Dr. R. Radhakrishna to examine all aspects of agricultural indebtedness. The Committee has since submitted its report and it is in the public domain. The Committee had made a number of recommendations but stopped short of recommending waiver of agricultural loans. However, Government is conscious of the dimensions of the problem and is sensitive to the difficulties of the farming community, especially the small and marginal farmers. Having carefully weighed the pros and cons of debt waiver and having taken into account the resource position, I place before this House a scheme of debt waiver and debt relief for farmers:

(i) All agricultural loans disbursed by scheduled commercial banks, regional rural banks and cooperative credit institutions up to March 31, 2007 and overdue as on December 31, 2007 will be covered under the scheme.

(ii) For marginal farmers (i.e., holding upto 1 hectare) and small farmers (1-2 hectare), there will be a complete waiver of all loans that were overdue on December 31, 2007 and which remained unpaid until February 29, 2008. In respect of other farmers, there will be a one time settlement (OTS) scheme for all loans that were overdue on December 31, 2007 and which remained unpaid until February 29, 2008. Under the OTS, a rebate of 25 per cent will be given against payment of the balance of 75 per cent.

(iii) Agricultural loans were restructured and rescheduled by banks in 2004 and 2006 through special packages. These rescheduled loans, and other loans rescheduled in the normal course as per RBI guidelines, will also be eligible either for a waiver or an OTS on the same pattern.

(iv) The implementation of the debt waiver and debt relief scheme will be completed by June 30, 2008. Upon being granted debt waiver or signing an agreement for debt relief under the OTS, the farmer would be entitled to fresh agricultural loans from the banks in accordance with normal rules.

(v) Government estimates that about three crore small and marginal farmers and about one crore other farmers will benefit from the scheme. The total value of overdue loans being waived is estimated at Rs.50,000 crore and the OTS relief on the overdue loans is estimated at Rs.10,000 crore.

I appeal to Honourable Members - as well as to the people of India - to give their unqualified support to the scheme and help Government implement this momentous decision.

IV. INVESTMENT, INFRASTRUCTURE, INDUSTRY AND TRADE

74. Since 2005-06, there has been an unmistakable boom in investment. Two indicators tell the story. The saving rate and the investment rate in 2003-04 were 29.8 per cent and 28.2 per cent, respectively. According to estimates made by the Economic Advisory Council to the Prime Minister, they will be 35.6 per cent and 36.3 per cent, respectively, by the end of 2007-08. The trend is reflected on the foreign investment side too. During the period April-December 2007-08, foreign direct investment amounted to US$12.7 billion and foreign institutional investment to US$18 billion. Our policy is to encourage all sources of investment, domestic and foreign, private and public.

75. In 2008-09, Government will provide Rs.16,436 crore as equity support and Rs.3,003 crore as loans to Central Public Sector Enterprises (CPSEs). 44 CPSEs are listed today. It is the policy of the Government to list more CPSEs in order to unlock their true value and improve corporate governance.

Rural Infrastructure Development Fund

76. The Rural Infrastructure Development Fund (RIDF) is the main instrument to channelize bank funds for financing rural infrastructure, and it is quite popular among State Governments. Therefore, I propose to raise the corpus of RIDF-XIV in 2008-09 to Rs.14,000 crore. I also propose to operate a separate window under RIDF-XIV for rural roads with a corpus of Rs.4,000 crore.

Manufacturing Sector

77. There has been some moderation in the index of production of the six core infrastructure industries as well as in the overall index of industrial production for the period April-December 2007-08. The decline has been somewhat sharp in the case of consumer goods, especially consumer durables. The silver lining is that the growth in capital goods is still very high at 20.2 per cent, indicating that industry continues to make huge capital investments and has a positive outlook about the future. Manufacturing industries that have grown more slowly than the average include food products, cotton textiles, textile products including apparel, paper and transport equipment. Among the reasons for the moderation are a rise in interest rates and the appreciation of the Rupee. There are limits to monetary policy accommodation, especially when the need is to maintain price stability. However, some steps can be taken on the fiscal side and I shall, presently, place before the House some proposals in order to stimulate industrial growth. Our goal is to take the manufacturing growth rate to a double digit. This will also call for more reforms in the coal and electricity sectors as well as confronting oligopolistic tendencies in the cement and steel sectors.

Power

78. The Eleventh Plan target for additional power generation capacity is 78,577 MW which is more than the total capacity added in the previous three Plans. By end March 2008, we will achieve Commercial Operation Date (COD) on about 10,000 MW, marking the best first year in any Plan period. Government will redouble its efforts to ensure that the ambitious target for the Eleventh Plan is achieved.

79. The fourth Ultra Mega Power Project (UMPP) at Tilaiya will be awarded shortly. It is possible to bring five more UMPPs in Chhattisgarh, Karnataka, Maharashtra, Orissa and Tamilnadu to the bidding stage provided the States extend the required support. I urge them to do so.

80. Government has approved the continuation of the Rajiv Gandhi Grameen Vidyutikaran Yojana during the Eleventh Plan period with a capital subsidy of Rs.28,000 crore. I propose to allocate Rs.5,500 crore in 2008-09 for the Yojana (including NER).

81. I propose to provide Rs.800 crore in 2008-09 for the Accelerated Power Development and Reforms Project. However, it is the poor state of transmission and distribution (T&D) that is a drag on the sector. Huge investments are required to be made in T&D, but linked to fundamental reforms. Hence, I propose to create a national fund for transmission and distribution reform. The details of the scheme will be worked out and announced very soon.

Roads

82. All phases of the National Highway Development Programme continue to make progress. The completion ratio in the Golden Quadrilateral is 96.48 per cent and in the North South, East West Corridor project is 23.36 per cent. Special attention is being paid to SARDP-NE, a programme devised for the North Eastern region. 180 kms of roads were completed in 2007-08 and the target for 2008-09 is 300 kms. I propose to enhance the allocation for the NHDP from Rs.10,867 crore in 2007-08 to Rs.12,966 crore next year.

Oil and Gas

83. The 7th round of bidding under the New Exploration Licensing Policy (NELP) was launched in December 2007 and bids have been invited for 57 exploration blocks. It is estimated that the round will attract investment of the order of US$3.5 billion to US$8 billion for exploration and discovery.

Coal

84. 53 coal blocks with reserves of 13,842 million tonnes have been allotted during April-January 2007-08 to Government and private sector companies. A new Coal Distribution Policy was notified in October 2007. A coal regulator will be appointed.

Information Technology

85. Government's forward looking policy is driving the growth of Information Technology and Information Technology Enabled Services. I propose to enhance the allocation to the Department of Information Technology from Rs.1,500 crore in 2007-08 to Rs.1,680 crore in 2008-09. A scheme for establishing 100,000 broadband internet-enabled Common Service Centres in rural areas and a scheme for establishing State Wide Area Networks (SWAN) with Central assistance are under implementation. A new scheme for State Data Centres has also been approved. I propose to provide Rs.75 crore for the common service centres, Rs.450 crore for SWAN and Rs.275 crore for the State Data Centres.

Textiles

86. The two principal schemes of the Ministry of Textiles - the Scheme for Integrated Textile Parks (SITP) and the Technology Upgradation Fund (TUF) - will be continued in the Eleventh Plan period. All 30 integrated textile parks have been approved and 20 units in four parks have commenced production. I propose to maintain the provision for SITP at Rs.450 crore in 2008-09. The provision for TUF will be increased from Rs.911 crore in the current year to Rs.1,090 crore in 2008-09.

87. The cluster approach to the development of the handloom sector has made rapid progress. 250 clusters are being developed. 443 yarn banks have been established. By March 2008, over 17 lakh families of weavers will be covered under the health insurance scheme. I propose to increase the allocation to Rs.340 crore in 2008-09.

88. In order to scale up both infrastructure and production, it is proposed to take up six centres for development as mega-clusters. Varanasi and Sibsagar will be taken up for handlooms, Bhiwandi and Erode for powerlooms, and Narsapur and Moradabad for handicrafts. Each mega-cluster will require about Rs.70 crore. I propose to start the process with an initial provision of Rs.100 crore in 2008-09.

Micro, Small and Medium Enterprises

89. Micro, small and medium enterprises will continue to receive support from the Government. I wish to remove certain wrong perceptions about the sector. In the four years ending 2006-07, for which figures are available, there has been a secular rise in the number of registered units, the number of unregistered units, production, employment and exports. In order to give a fillip to the sector, I propose to create a risk capital fund in the Small Industries and Development Bank of India (SIDBI). As on January 31, 2008, the Credit Guarantee Trust with SIDBI had extended guarantees to 89,129 units for an amount of Rs.2,479 crore. SIDBI will reduce the guarantee fee from 1.5 per cent to 1 per cent and the annual service fee from 0.75 per cent to 0.5 per cent for loans up to Rs.5 lakh.

Foreign Trade

90. Merchandise exports have come under some pressure due to the appreciation of the Rupee and may fall just short of the target of US$ 160 billion, although the growth rate was strong at 21.8 per cent during April-December 2007-08. Relief was given to exporters in three tranches amounting to over Rs.8,000 crore. I may note that the interest cost of sterilization through market stabiliz

The great IIM race

This year's results have reaffirmed that CAT is a tough exam to crack. Only the very best can hope to obtain admission into an IIM. That, however, does not deter lesser mortals from trying to get in.

The results of CAT 2007 has flit past leaving lakhs of eager and hopeful students, who had been hoping to get admission into the most reputed B-Schools in the country, high and dry. The high standards of testing ensured by this body ensure that only the crème de la crème can obtain admission into the portals of these prestigious institutes.

This is certainly a very commendable move in a country like ours that is shackled with infinite constraints with reference to just about any policy under the sun. The candidates who sail through the onerous protocol set for them by the organisation will assure you that it is no mean exercise, for they have had to work very hard to get a seat in the most coveted establishment. As they say, "The proof of the pudding lies in the eating" and year after year we find that IIM students land themselves lucrative jobs at the end of the course.

Placement

In fact recent statistics show that there has been one hundred per cent placement of candidates who emerge as post graduates from these institutes in the current year with an enviable package, while his counter part from a lesser known institution is usually treated as a lesser mortal in the job market.

Apparently, the secret of success of candidates from the IIMs is not only based on their consistent academic performance but also on their ability to face bi-lateral challenges which cross their way during their tenure at the institutions. A talk with the high-brow faculty at IIM-B reveals that the unvarying accomplishment of their candidates lies in the kind of training they receive to hone their intrinsic skills besides hard core academics. For instance, the pioneering entrepreneurial cell — NSRCEL (Nadathur S Raghavan Centre for Entrepreneurial Learning) at the Indian Institute of Management Bangalore, grooves in the concept of value-creation through "informed entrepreneurship" which helps potential entrepreneurs to experiment with the trends of the market even before they enter it formally. While it is a matter of pride for the institutions and the students themselves, it appears to be a matter of growing concern to the society at large which is not able to make it to these high-profile institutes.

The rat race to beat the CAT is taking new demoniac dimensions year after year. The recent examination saw two lakh candidates taking up the exam across the country. Apparently all of them could not get in because of stringent filtration processes which are a part of the admission procedure.

Response

When a cross section of students who had appeared for the CAT exam from Bangalore were consulted on the subject just about everybody said that they did not do very well not only because the paper was very tough but also because the university semester exams commenced two days after CAT and their concentration was divided between the two exams.A random survey revealed that more than fifty per cent of the candidates were merely "giving it a shot" and another thirty per cent hoped to do well in their XLRI or GMAT exams after undergoing a rigorous training to take up the CAT.

Some of them hoped to "get through" the next time and were quite satisfied with getting a taste of the paper. A few of them confided that they had taken up the exam to mollify the ego of their parents or family and it really did not matter one way or the other if they failed to make it.It is quite possible that with the exception of a section of earnest candidates who have really been working hard for the exam the scene is more or less the same everywhere.

Yet this year a couple of candidates did not mind undergoing a laborious and expensive exercise which had them scheming and planning for months together to pull wool over the eyes of the authorities on the "Red Letter Day." Fortunately, they were caught 'red handed' which will certainly make studious, earnest students repose their faith in the organisation which believes in keeping its flag flying high.

The craze to enter these esteemed IIMs has become an obsession with the student community that is pursuing the last leg of their under-graduate studies in a variety of streams but then these very candidates are also aware of their capabilities and their diverse dreams which are sometimes miles away from their educational pursuit. At the outset, the situation appears to be a reasonable wish of a good student to aim high, but a scratch at the surface apparently reveals a very different picture which showcases indifferent students who are not highly perturbed at not getting in.

Private colleges

Of late, the MBA scene has changed radically as there are several private colleges offering the MBA course under local universities and many of them function on the lines of the IIMs. They have tie-ups with the corporate world and run placement cells and entrepreneurial cells to launch their students into the big bad world on their own two feet.

Many students who have passed out appear to have no regrets about not having been to the IIMs while to the others these mega institutes are spoken about on the lines of "a case of sour grapes."

Such being the case, perhaps it will be a wise move for the IIMs to stick to their standards and maintain it at all costs. Perhaps they could add a couple more institutes after careful consideration to their body that can cater to the serious undergraduates, but certainly it is disgraceful and unwarranted to cry over the rooftops and make a big fuss for large scale expansion because it is bound to dilute the aura that has made the organisation stand apart.

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IIM-A grads shun lucrative offers to stand on their own

They start early. And despite the road to entrepreneurship being tough, they hold on, in many cases even failing in their venture. But undeterred, they defy the logic of campus placements and lucrative job offers to start on their own.

For at least five students of the 2006-08 batch of post-graduate management and agri-business programmes (PGPM & PGPABM) of Indian Institute of Management-Ahmedabad (IIM-A), starting their own venture is more lucrative than sitting for campus placements. And this is just an initial estimate. The figure might swell with the campus placements approaching, say IIM-A sources.

Last year, the number of students who opted out of the placement process was 11. The number was six the year before that, and, according to placement coordinator Piyush Sinha, this year, there will be more students who would prefer to chart their own way. Students, too, confirm that more students are likely to join the exclusive club of young entrepreneurs of fresh graduates who sacrifice the comfort of a lucrative job offer to embark on their own. Take the example of Kaushik Mukherjee, who is back to the campus from summer internship with Goldman Sachs in New York. The company has even extended him a job offer, but that does not interest him anymore. He has, what he says, better plans for his career.

Currently, working on an e-commerce project, Kaushik is confident of translating his own venture into a success. lootstreet.com, the website on which he is currently working on along with his classmate and partner in business, Arun Balakrishnan, is an attempt at "defining e-commerce in a new way".

Says enthusiastic Kaushik, "We had this project in mind long ago and had been working on it for quite some time. I did my summer internship with Goldman Sachs that offered me a job. But we had long decided on starting our own venture. We won't sit for campus placements." Another IIM-A student of PGPM course, Nirmal Kumar, already has a business plan up his sleeve. Not sitting for the placements is a certainty, says he. But he refuses to disclose his future plans at this point. Says Kumar, "All I can say is that the road I have taken is tough.

It is not easy to shun the handsome salary offers and take the challenges of entrepreneurship. I have dared to dream and I am positive it will give me results." Agrees Nageshwar Neela Baburao, who too said no to companies during summer placements and would be doing the same in the upcoming placements. "With the kind of offers companies give, it is difficult to decline them and stick to our own plans. A lot of students from my batch have postponed their entrepreneurial plans and have taken up placements," says Nageshwar, who is doing management in agri-business at the institute. Nageshwar plans to set up a processing plant for medicines. "I intend to start processing of medicinal plants in India and take advantage of cheaper labour force.

This will help shorten the supply chain," he says. All these to-be entrepreneurs share one common bond: most of them had decided on taking the road less travelled much before entering IIM-A gates. For Sidhharth Jaiswal, another IIM-A student of agri-business management course, entrepreneurship runs in the blood. Jaiswal, who belongs to a business family, has had experience of running a venture based on cultivation & processing of medicinal plants before joining IIM-A. He, too, has plans for setting up his business, though he refused to disclose this at this juncture.

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The main ingredients of success

Everybody wants to be successful and those who go to B-schools have even greater expectations of success.

While that is reasonable, it is perhaps worthwhile to look at a few ingredients that make for phenomenal success. Sadly enough, those skills are not imparted — at least, not in an organised manner — at most B-schools in the country.

The power of communication: If one were to take a look at some outstanding business leaders, they have an important quality in common. They are all exceedingly good communicators. People like Jack Welch and Tom Peters, to name just two, were great communicators. Their vision and passion would come through clearly, both orally and in their writing.

Every budding manager needs to ask himself, "How good is my communication ability?" Today's youngsters crack the CAT, are amazing in numerical ability and data interpretation.
They do work on their verbal ability as well, but in practice, I suspect that they have miles to go in communication and this is one area where business schools, despite having courses in the area, do little work on.

Management is all about people: If I were to ask God for one skill, it would be the skill to communicate with people. Successful people manage their relationships at work and outside with great skill and most of them have acquired theirs outside of business school as it is rarely, if ever, taught there.

Observe successful people in action and learn from them. Yet it is important to be your own natural self: successful managers of people are their own genuine selves, not phoney, not superficial. So, how good are your people skills? Can you disagree without being disagreeable? Think about it.

Selling is key: Successful people are wonderful salesmen. They are passionate about their products, services and organisations. They have insatiable energy and do not take "no" for an answer.

Business schools teach sales management, but hardly ever teach their students how to sell. It is a skill that anyone who desires success must acquire and, as with mathematics, the only way to excel at it is to practice.

The three key attributes of success to my mind are the ability to communicate, skills with people and a strong desire to sell. Most importantly, it is critical to enjoy what you are doing.
As the famous singer Bob Dylan said: "If you get up in the morning and go to sleep at night and in between do what you like, consider yourself a successful man".

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Management education needs a new regulator

Some engineering colleges are collecting Rs10-15 lakh per seat and some B-schools are charging Rs 5-10 lakh per seat

In the past few months, the growing resentment against India's regulator of business and engineering schools, the All India Council for Technical Education, or AICTE, has finally found expression in the media, especially in this newspaper, which has systematically looked at the functioning of the council as well as the behaviour of its top officials.

While it is always possible that this spotlight will be enough to make sure that a more credible leader, untainted by nepotism and corruption charges, is installed at AICTE, that's not the solution. There needs to be a restructuring of the whole system.

AICTE has encouraged mediocrity in our higher education. The standards set (see accompanying article) are for minimum requirements, such as minimum number of permanent faculty, the minimum campus size, the minimum built-up area. You get the drift. Many AICTE-approved educational institutes have adhered to the minimum requirements and not cared to go beyond. As a result, AICTE approval has become a licence for them to be complacent and, of course, to make money.

Education is one of the fastest growing businesses in India these days. An average engineering college has annual revenues of anywhere between Rs20 crore and Rs25 crore. An average business school has annual revenues of Rs5-10 crore.

Since, in the present quota raj of the AICTE, supply is restricted, getting students for an AICTE-approved institute is not a big problem. By adhering to or managing AICTE rules, an institute can generate an easy surplus of up to 50% of the revenues. Since a not-for-profit society or trust is supposed to manage such institutes, they simply devise ways to siphon off funds, such as owning a for-profit body that bills the not-for-profit body for various activities, such as maintenance or even for sourcing teachers. Then, there are "donations" collected from students.
Some engineering colleges are collecting Rs10-15 lakh per seat and some B-schools are charging Rs 5-10 lakh per seat. Revenue from these back-door admissions are, in most cases, not accounted for. Everything can be kept under wraps because the school or trust's governing body is packed with close relatives of the main promoter or, in some cases, relatives of AICTE employees.

It is for this reason, I believe, that the present AICTE law of not allowing for-profit bodies to run educational institutes is flawed. Allowing companies to operate—and compete—in this field will at least prevent accumulation of "black" money and should lead to better governance. At least, students will get better choices.

The huge profits assured for educational institutes, in the present system, is the reason why some serving or former AICTE officials, and many politicians have opened educational institutes. About a dozen such AICTE officials own engineering colleges and B-schools. While in service, they put their close relatives in the governing body of the trust or society. Once they retire, they take over. According to people familiar with the regulator and its activities, the net worth of many such officials is estimated at about Rs100 crore.

Clearly, there are urgent reforms needed in regulating higher education. As a first step, we need a separate regulator for engineering and business schools.

For management education, which, in my view, is not a technical course, a different approach is needed. The regulator in this case has to be more like a facilitator. It could facilitate faculty development, industry-institute interaction, standardization of programmes and curriculum development. It can also accredit B-schools, which would be a voluntary exercise. Its regulatory role will be primarily to redress complaints of students and their parents if they feel that they have been cheated. The present AICTE rule where it is mandatory for every institute to have a disclosure page on their website is a good one. The page, however, should clearly give details about each faculty member, the infrastructure, the placements and the full fees being charged. If students or parents feel that what is given on the disclosure page is not in line with reality, they should be able to quickly and easily register their complaint with the regulator.

The new regulatory body can also be empowered to take action against those institutes that take to false advertisements. I am constantly amazed at the lies being told in ads from some B-schools, ads that newspapers and magazines accept without any hesitation in their buyer-beware mode of thinking. The new business education regulator should, however, not be allowed to put restrictions on the growth of B-schools. They should have the freedom of developing their curriculum, the facilities they provide and fees they charge, provided everything is transparent.
It's time that government stops its focus on policing higher education and concentrate its efforts on primary and secondary education. Our higher education market is mature enough to deserve freedom.

Premchand Palety is director of the Centre for Forecasting and Research (C-fore) in New Delhi, from where he keeps a close eye on India's business schools.

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IIM grads back with job offers

Four alumni of Indian Institute of Management-Ahmedabad (IIM-A) who had opted out of the placement process last year to start their own enterprise, are coming back to the campus in the next placement season in March, 2008 — for a different reason this time.

Though IIM-A had relaxed its rules this year to allow students opting out to come back for next two years for placements, this four-some will be in the campus to hire fresh management graduates for their own venture which has written a success story and needs more man power to take it to new heights.

Vishal Prabhukhanolkar, Bhusan Davir, Vineeta Singh and Debashish Chakravarty had last year spurned high profile job offers to start their own venture 'ten-a-day', an online website providing coaching for the CAT examination which is the gateway to the IIMs and several other institutions. The venture, known as www.tenaday.co.in, has logged nearly 22,000 registered users in its year of existence and needs more hands now, said Vishal about why they are coming to IIM-A next year.

The 'ten-a-day' website, the largest online CAT preparation site, requires aspiring students to answer 10 questions every day and also provides daily percentile rankings.
All this and the explanations of the questions are for free. But the detailed analyses of the answers have charges ranging from Rs 210 onwards. Other institutes charge nearly Rs 14,000 for similar analyses, Vishal said.

Since nearly two lakh students appear for the CAT every year and another six lakh appear for other admission tests, the online website has a great potentiality for growth, hoped the young entrepreneur who rejected a fat pay packet to start this venture along with his three other batchmates.

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CAT 2007 results out !

CAT 2007 results out !

The results of Common Admission Test, for admission to prestigious IIMs and other leading management institutes, has been announced this Tuesday.

Over two lakh B-school aspirants appeared for the written entrance test, CAT. The CAT results would be declared on its website as well as with all the IIMs on January 8.

Out of the vast number of initial aspirants only 2.5 per cent or around 5,000 will get short listed for group discussion and personal interviews. "The scores can be accessed by keying in the test registration number and either the date of birth or the CAT application number," as per the information on the website.

However, the details of the date and venue would be made available by post as well as on the individual IIMs web sites only after a few days.

The scores can also be obtained telephonically and through SMS.

For accessing results via SMS, one should send a message to 57333. The text should be: CAT -- a space, the registration number, one more space and the date of birth.

Students who are not able to get into one of the IIMs, can try their luck at one of the 111 management schools which use CAT scores for students intake.

Some of the best B-schools in this category are -- International Management Institute, K J Somaiya Institute of Management Studies & Research, Management Development Institute, Mudra Institute of Communications Ahmedabad and S P Jain Institute of Management & Research. Registration procedure for most of these management schools are already over and only those who filled up forms for individual institutes apart from their CAT forms would be eligible for selection.- PTI

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Laterals begin with record Rs 40-lakh offer at IIM-Kozhikode

The lateral placement process has just kicked off and it's already raining money at the IIMs. At IIM-Kozhikode, students have got offers ranging between Rs 40 and Rs 50 lakh — breaking all records — from leading finance companies. A domestic finance firm has made a Rs 40-lakh offer, which is almost double that of the highest domestic offer during laterals. Around six companies from IT, consulting and finance have already visited the campus.

International finance firms have made associate offers to a few candidates. The final placements at IIM-K will be held from March 3-6. At IIM-Kozhikode, around 55% of the candidates have prior work experience. For lateral placement, the average work experience should be around 18-22 months. However, it varies as a few companies make offers to candidates with lesser work experience. With such a diverse batch profile and increased number of experienced candidates, the institute expects record final placements. At IIM-Ahmedabad, the process should begin within two days. Some of the recruiters expected to visit the campus include Citi Financial, Global eProcure and Microsoft.

The candidates at IIM-A, too, are seen to get huge offers, touching the crore mark, as a number of private equity firms are expected during the process. Usually, the job profile and packages offered by these players are much higher than those of recruiters from other sectors. A total of around 30 companies, including Tesco, Reliance, Arcelor-Mittal, Marico, P&G, HUL, Lehman Brothers, Booz Hamilton, IBM and Cognizant, are expected to visit the IIMs during lateral placements. At IIM-Lucknow, around 125 students from the batch of 265 have work experience of over 12 months.

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