AVIATION POLICY 2021

Bikash Choudhury

Aviation, one of the most risk prone business after gambling(if it were called one);the popular joke doing the round in page three parties in National Capital—in Aviation business, you need to start as a billionaire to become millionaire. However, the sex appeal of Aviation business always attracts the rich, famous and mighty. Keeping in view of the current financial health of Airlines both private and public; it is imperative, country formulate a forward looking ‘Aviation Policy2021’ to promote seamless connectivity to top 100 cities & towns with full service airlines, next 100 cities should be linked by low cost airline and most importantly the District HQ should be connected to the respective State Capitals by ultra low cost regional airlines by 2021.
The biggest stumbling block in Aviation in India is the high cost structure of the Industry itself. As, the aircraft does not come cheap @ Rs150-250 crore a piece, neither, the fuel (ATF) aviation turbine fuel nor the Pilots who actually fly the machine and passenger @ Rs 5-15 lakh a month and engineers who keep the Birds ‘Air Worthy’ and also the prohibitive cost of spares parts that comes with an expiry date does not help. Further, Airport cost and Insurance drive big hole in the pockets of any airline; on top of it the volatile petroleum pricing that rule above 100 USD a barrel makes airline business extremely volatile in current times. The paradox in Aviation sector is to keep paying the high cost of inputs while you need to charge less in fare to attract new customers. But, how on earth can one airline survive???Our Aviation Industry has done very well in trying circumstances though most of the Airline, both private and public are bleeding profusely which is not good for the future health of the Industry. The other Jigsaw puzzle of the Industry is the pricing policy of the Industry. The solution to the vexed problem lies in a consensus driven uniform pricing policy across the Industry for long term gain and survival. The pricing mechanism should be such that the route allocation and earning of trunk routes must cross subsidies the non trunk routes, instead of burning cash with Air India the central Govt. and State Govt. should subsidies the routes of top 51-200 cities in the range of 20-35% in the interest of economic growth and better Governance. The pricing of Air connectivity between District HQ and respective State Capital require altogether a unique business model that subsidies the cost in the range of 30-50% for 5-10 years.
In the trunk routes the pricing should be ideally be twice of the first AC fare, and that of 51-200 cities should be two times of third AC fare and between District HQ and State Capital should be ideally in the range of two times of second class sleeper fare of Indian Railways. These pricing is just indicative cost of average cost of air transportation in India; but, eventually the pricing should be able to recover the cost with a normal profit to continue in Business.

Both central Govt. State Govt. and top 100 corporate houses must collaborate to offer the country new airstrips wherever required and renovate the unused and older air strips and make those available to schedule, Non-schedule Airlines and Chartered Operators at a reasonable cost in the initial period of 5-10 years. Further, Govt. must also find ways and means to create a separate fund for "Aviation Industry”. This fund can be accessed by the operators at lower rate of interest than the prevailing market rates.
The central Govt. has taken steps to develop one mid size 80 seated aircraft in collaboration with a Russian Company that should be ready by 2016-17. Simultaneously, Govt. should encourage corporate sector to invest in research & development and actual manufacturing of mid size low cost aircraft with 80-150 seating capacity with lower maintenance cost for typical Indian requirement in the span of 10-15 years.
With a robust and proactive "Aviation Policy 2021" the Aviation sector would mature while offering seamless air link to over 700 destinations in the country by the end of next decade.

CO-OPERATIVE—DRIVER OF ECONOMY

[Published in Orissa Post on 20 May 2011]
Bikash Choudhury





'Amul' has long a conquered the household in India; now, very recently the comment "Amul Baby" became hot topic of spat between two powerful political activist; not very many people would be in the know about the organization behind the Amul brand, GCCMF otherwise known as Gujarat Milk Marketing Federation which is one of the most successful Co-operative not only in the country but, across the World with 2.9 million members,15322 village societies, 13.07 million liters of milk handling capacity per day and Rs.8005 crore of sales in 2009-10. Little known fact about GCMMF is the members have planted 2.35 crore saplings in last four years. Co-Operative sector has immense potential to shape the State Economy. Orissa Milk Marketing Federation has posted reasonable success in Co-operative sector in milk collection, processing, production of byproducts and marketing. In farm loan also Co-operative Banking system disburse largest amount of agricultural credit to farmers. There are many other small players in Co-Operatives sector in many other domains at local level. However, Co-Operative movement has not been able to demonstrate a transformational opportunity in the State like "Amul".

Cooperative sector can become one of the important drivers of Orissa State economy and turn out to be the largest employer of Highly Skilled to unskilled labor pool. New Co-Operative Minister must attempt to plug the long standing loop holes in our Co-Operative system, Administration and in accountability. Just like our new Agriculture policy, Cooperative minister can emphasize on a brand new Co-Operative policy that will encourage entrepreneurship and productivity in Co-Operative sector in Agriculture, Retail, Micro Finance & Micro Deposits, Wasteland Development and other growing services sector. The main objective of Co-Operative policy should be to streamline the functioning of elected representative so that they would pool their local knowledge in sustainable growth and profitability of the organization while providing opportunity to the professionals to do their job to their best of ability without fear or favor. Ideally elected representatives of cooperative and professional executive should work in a collaborative frame work in mutual interest and in the interest of the organization.

Co-Operative Banking system for Agricultural credit allied sector need to be institutionalized and Co-operative should have the freedom to source best of human resources in the given market condition to develop leaders to manage growing Co-Operative institutions in the State. It is very important to strengthen the Co-Operative farm credit delivery mechanism that would be sustainable in both in short and in long run. Co-operative credit institution needs to add domain knowledge in agric and agro sector to offer high quality service to their customer. They can introduce a Agriculture and Agro consulting division at apex level or at District level with an objective to make profits for farmers with their advice and market linkages. This can be only done by either hiring competent personnel at market rate or deploying retired professionals on contract.

Co-Operatives were the first to introduce Modern Retail in Orissa, through ‘Bhanjaprabha’ in Bhubaneswar, ‘Kamadhenu’ in Angul & ‘Indradhanu’ in Dhenkanal and many other small stand alone retail outlets which did not make much headway but, in the current times Co-operatives can reenter the Retail space as an aggregator of small grocery stores by providing them scale, technology, negotiating muscles and above all higher profitability by modernization while serving larger customer segments with extended Stock Keeping Units (SKU) as it is called in the retail Industry. Professionals need to drive the foray in retail as the context and customer has undergone sea change over the years. Professional run Co-Operative retail could actually give Private retail players a run for their money and at the same time can create huge employment opportunity in entire length and breadth of the State.

Our new Agriculture Policy has facilitated contract farming by corporate and co-operatives; therefore, our Co-Operative sector should take advantage of this opportunity and encourage High Value farming (Israel Type) instead of High volume farming currently practiced at the cost of farmers and their families. Each revenue block must have Agricultural Co-Operative comprising 5-15 villages with 2500-5000 acres of land. The Co-operative should use modern technology supported by local knowledge and resources to promote high value farming to grow the productivity and create employment potential for the people living in the hinter land. Co-Operatives must also take up post harvest processing, Ware housing, Cold storage and transportation to mitigate the challenges of logistics and strangle hold of middlemen. Successful farm Co-Operative can actually create a demonstration effect in the nearby rural pockets and therefore, spread the message of Co-Operation movement much more effectively.

When we travel by road or train, mostly find thousands of acres of land adjoining the route. The Co-Operative sector in association with respective habitation can organize Waste land development Co-Operative and plant “Jatropa” for green fuel. Such Co-Operative institutions also can develop other downstream Industry to create a complete Eco-System for green Energy and add substantially to the economy and brand image of the State. Similarly, Co-Operative Institution can create along the habitation of 480 Km long Coastline to plant mangroves, Jatropa to increase their productivity. Further, Co-Operative could be the most effective medium to reach out to “bottom of the pyramid’ through Micro Finance, Micro Deposit.

If State Govt. takes on the role of a powerful facilitator then, Co-Operative sector alone has the potential to contribute additional 1-2 % to the growth of Gross State Domestic Product (GSDP).

Assembly line for Leadership

[Published in Orissa Post on 14 May 2011]

Bikash Choudhury




Is our over protective family culture and values responsible for an aging political leadership? Statistics has never been a perfect science; but, sometimes the data would stare you in the face. Our top political leadership in Union Govt, the laws of central tendencies would stay at 72 years of age, Leadership in opposition in Parliament also no different, at 69 yrs of age on average. Leadership in States taking into account twenty two States; the average age stands at 63 yrs of age. Irony is the country sports of population of over sixty percent below 35 yrs of age. Contrast is also equally baffling; as the average age of top leadership in developed countries around 50, while their demography favors old age in large number. What is this phenomenon? And why it is so? Can call these Phenomena of divergent family culture & values. As the close knit family system does not allow experimentation at early age and therefore people mature little later than their western counterparts in developed countries. Since their family system allow individuals to live independently at an early age and make decisions about living, livelihood and their lives. But, this hypothesis does raise an important concern for India in the next decade; if the status quo persists further, our top leadership in 2020 would still be older than the current decade.
Interestingly, Indian Political leadership comes from a very narrow base and that is one of the biggest problem facing the strength of younger leadership; mostly, our current top leadership come from traditional political families or Legal background or Business or from Media and retired bureaucrats and few from university campuses. Middle class almost shun political leadership sweep stakes and 'raison d’être' of our aging leadership. Further, fast pace economic growth in last two decades has also complicated matter in this domain as it has thrown up lucrative opportunity for talented and potential leaders in the private sector that makes leadership in political domain full of risk and unattractive proposition. Further, amount of expenses involved in Political Activism & in electoral process dissuade many as it is fit for rich and famous who can afford and fewer of them can sustain without adopting short-cut.
Harvard Business Review (HBR) in a recent study on "Social Intelligence and the Biology of Leadership" by Daniel Goelman & Richard Boyatzis finds that” Leaders can improve group performance by understanding the biology of Empathy" .India currently stands at disadvantage as the aging leaders would find it difficult to understand the biology of empathy of a large population of young people. Conventionally, young people stand for Speed and Quantity wherein senior people represent wisdom of experience and discretion. Hybrid strategy of leadership could be followed by India at present and if need be in the next decade. Futuristic India must be driven by its Young Leaders with senior citizens leadership being Advisers by choice; that could eventually deliver both Quantity & Quality in Governance. Country urgently needs an assembly line for leadership to shape leaders of future decade.
We need to design a unique leadership program keeping in view of its need, culture and value system. Indian Young leaders of the future decade should be physically strong, professionally competent with Intellectual depth. They must also possess ability to inspire people with varied Indian languages, strong belief in ethics and must be financially liberated with a Spartan life style. Leadership Gurukul can be developed by Govt or Corporate in tier two cities where students of Gurukul can complete their formal education of choice in the city while attending and living the leadership coaching specially designed to transform students into empowered World Class leaders on their own right. After completion of their studies and leadership training they can join any Political party of their political persuasion to give a able leadership from Govt. or from opposition. Ideally Leadership Gurukul should recruit students across the country having ambition for political leadership in the age group of 18-25. Potential Leaders must have academic excellence, physical prowess and deep knowledge about the country and also should meet other requirements of World Class Leadership and with passion to contribute towards Nation Building