NEWS &
VIEWS TODAY
28th,MAY,2012
PROTECTING & SUPPORTING INDIA'S SOFTWARE INDUSTRY
MEDICINE FOR PATIENT - NOT FOR PHARMA CO
ONLY FOUR LPG SUBSIDISED CYLINDERS IN A YEAR
JK CEMENT DOES WELL
AIR INDIA – CAPTAIN GOPINATH'S SOUND SUGGESTIONS
1.
NEWS :- The Central Board of Direct Taxes had taken
the view that deputing software professionals to the project-site for software creation
was in fact ‘body shopping’ and not software exports. It has now called for comments
on this from its offices and is expected to issue some CLARIFICATIONS in the
matter.
VIEWS :
Deputing a software professional abroad for on-site software creation is much, much
different from deputing a driver or Doctor abroad for work. The software
Professional goes abroad with special skills, for CREATING SOFTWARE on site –
which of course, he could do from the Indian office as well some times. But, sometimes,
he has to go to the project site and create the software there itself. When he
comes back, the software he has CREATED is very much available for all to see –
and it powers the projects for a long time to come.
On
the other hand, when a Driver or Doctor goes abroad, offers his skills and
comes back, there is nothing abroad, to show that he ever existed there. His
work is purely temporary, for the time
being, and yes, it is a sort of Body-shopping (or skill-shopping).
On
the other hand, A software professional can export software from his Office or sometimes create it on the
project site only - and that
very much is SOFTWARE
EXPORT, as much as a software crated in India and sent by electronic
or physical means abroad.
To
draw an extravagant parallel – suppose TATAs export CARS but someone from TATAs
goes along with the CARS and sells them abroad, is it selling cars or is it
BODY SHOPPING?
SOFTWARE
is an invisible good. It is much like a CKD Unit, carried in the head of the
software professional which is built up at the project site.
By
no stretch of imagination can it be called BODYSHOPPING. There is a tangible good which he creates and sells at the site – and that
tangible good is the SOFTWARE he builds at the site. He is not a physical
worker like a driver, who is offering a purely temporary service.
SOFTWARE
EXPORT is the forte of India – and CBDT and finance Ministry must support this
Industry in all possible ways – even relaxing some of their present positions.
On the other hand, calling SOFTWARE CREATION ON SITE as Body shopping – simply
because the Income tax officer is not able to see A PHYSICAL GOOD, where a SOFTWARE GOOD does
really exist – is obviously incorrect . Don’t see a floppy disk or Hard disk as
the only SOFTWARE going from India aboard. Creating the same on-site is ,without a shadow of doubt, SOFTWARE
EXPORT.
2.
PRIZE vs PATENT : There is an excellent suggestion
from Dr.Joseph Stiglitz, Nobel laureate, reproduced in Economic times on 21st
and commented editorially today – that the world must shift from a PATENTS
regime TO a PRIZE based system for new drugs. It is a
practical suggestion. The Editorial says, The Bill and Melinda foundation is
already successfully experimenting with this Model. Innovators must be rewarded
handsomely for their innovation / discovery – and they have to give up their
right on their innovation / discovery.
VIEWS :
In my view - new Drug discoveries are painfully few and far between today. We
can name scores of widely prevalent diseases – for which there are no complete
cures. Sometimes, we feel, that there is no real support for finding complete
cures – but only for just MANAGING the disease life long, so that, the patient
becomes a lifelong source of revenue for Pharma Companies.
The
Pharma Companies’ costly Medicine regime – especially makes us suspect that this is so. It
seems that they do not want CHEPAER MEDICINES at all. Neither they make cheaper
drugs which are obviously possible – nor do they allow others to make such cheaper
drugs. This is simply unacceptable that Patients are allowed to suffer – when cheaper
drugs are possible.
If
there is a more effective innovation by some scientist, a Pharma company claims
Patent on it – and produces it – at an astronomical price (NOT ASTRONOMICAL COST).
But, if some other company produces the same drug and is able to sell it at a
small fraction of the Price, the Patent company blocks the production of drug
at LOW COST & PRICE. This makes the whole system ridiculous. Drugs for whom
? Drugs at what cost? Is it for all suffering Patients or for creating Profits
for the Drug Company?
In
this context, Pharma Scientists all over the world must gladly embrace the
suggestion of Prof. Stiglitz – for accepting a GOOD PRIZE (MONEY ESPECIALLY)
AND A CITATION rather than selling it to a Pharma Company. Governments must
come forward to institute such Prizes – and such prizes must be much, much more
than what a Pharma company will offer – and spur the scientist into further
innovations. In India, the encouragement that a scientist or Scientific Lab
receives is very Poor at present – and this situation must change quickly and
drastically.
There
is especially GREAT NEED to promote indigenous research into both ALLOPATHIC
CURES and AYURVEDIC CURES – especially the latter. This writer is a great beneficiary of Ayurvedic Cures and is
convinced that if this indigenous science promoted well - India will achieve Great Breakthroughs in
ensuring the health of people across the world.
3.
ONLY FOUR LPG SUBSIDISED CYLINDERS IN A YEAR :- This
is a big negative step from the Government. It is expected to be implemented
shortly.
VIEWS :
This step is similar to the Planning commission’s BPL income level of Rs.24( or
so). Every one, except Planning commission, knows that - no one can live at
that Income level. Planning Commission received a lot of flak for it.
The
LPG restriction is worse than that. I would request the Government to show ONE
SINGLE FAMILY BELOW POVERTY LINE or ABOVE POVERTY LINE – which can do their
cooking with 4 cylinders in a year. By all means, block the LPG use from uses
other than cooking, like water heaters etc. If this is taken care of - no home
can ever misuse LPG cylinders for any purpose other than cooking. But, if Government
does not supply cylinders, or supplies them short or at huge cost – the suffering
will be felt by 99% of the people
presently using them.
Government
on the one side is using funds on schemes like NREGS – which is almost wholly
non-productive. On the other side, it is now curtailing the most essential LPG
Cylinders supply. LPG is as important as rice and wheat for the people’s food
needs.
For
a small family of three, for the most essential food needs alone, a cylinder is
needed once in 25 days. Government cannot curtail this supply in cities, urban
and suburban areas. Villages have firewood availability – which is not there in
non-rural areas. But, Government is extending LPG to villages and luring them
into it – even while it is unable to supply it in non-rural areas efficiently.
12-14
Cylinders per a small family per annum is the absolute minimum needed. Please do
make all your investigations and enquiries and research. But, do not curtail
LPG supplies and do not make the cost astronomical.
4.
J.K.CEMENT LTD : JK CEMENT has done well in both Q4
and FY 2012.Total Income from operations stands at Rs.809.40 Cr in Q4 FY 12 and
Rs.2094.35 Cr in FY 2012, against Rs.672,46 Cr in Q4 FY 2011; and Rs.2094.44 cr
in FY 2011. Net profit is Rs.80.35 Cr in Q4 FY 12; and Rs.174.57 Cr in FY 2012 compared to Rs.53.56 Cr in Q4 FY
11 and Rs.62.62 Cr in FY 2011. The Basic EPS stands at Rs.11.49 in Q4 FY 12 and Rs.24.97 Cr
in FY 2012 compared to Rs.7.66 in Q4 FY 11 and Rs.8.95 in FY 2011.The company
has recommended a dividend of 50% (Rs.5 per share) for FY 12.
5.
AIR INDIA :-Today’s ET has an article by Captain
G.R.Gopinath on “Air India – easy to fix if there’s Political will”.
VIEWS : An
excellent analysis on Air India. But, like in all other cases, Government needs
a clear vision of what it wants of the Airlines Industry. I feel, Like Sri Gopinath, that Government must plan to
carry 20% of Indian Population by Airlines before a decade. Whatever it takes
to achieve this – that must be done.
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