FEBRUARY 2, 2003
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Q&A: James Z. Li
"If you can't compete with Chinese manufacturers, come buy them." So says James Z. Li, Managing Partner of E.J. McKay & Co, a Shanghai-based m&a advisory. And he's using this line to spearhead his India thrust, selling himself as an acquisitions consultant. China has bargains Indian firms mustn't miss, he says.


Coca-Cola's Price Offensive
Fizz and advertising. Advertising and fizz. That's what the cola wars are supposed to be about. And then along comes Coca-Cola India, and decides to add a new-some say obvious-dimension to the game: pricing. It's an experiment in Mumbai on a few brands. Could it reshape the cola battleground?

More Net Specials

Business Today,  January 19, 2003
 
 
A Bureaucrat's Bitterness
Wrongdoer or scapegoat? This public servant's story may be only one of many.

After having spent nearly four decades as a "public servant", he feels he has been used and abused. Worse, he has been made a scapegoat and singled out for criticism by a committee of lawmakers simply because it was the "safest thing to do".

Meet Ajit Kumar, a 1964 batch Indian Administrative Service (IAS) officer, who retired as Secretary, Planning Commission, in January 2002. He had been appointed to this post for barely three months, having served as Finance Secretary for roughly one year from November 2000. Earlier, he had been appointed Industry Secretary after a controversial tenure as Defence Secretary between June 1997 and December 1998.

His move from South Block to Udyog Bhavan coincided with the government's decision to unceremoniously remove Admiral Vishnu Bhagwat as Chief of the Indian Navy. Kumar was ostensibly moved because the government received a lot of flak from the media not only for the manner in which Bhagwat was dismissed but also because of the alleged attempts made by civilians (read bureaucrats like Kumar) to dominate men in uniform.

  Ten For 2003  
  The Value Of Passion  

Kumar says he was happy in his job as Industry Secretary. But the then Finance Minister Yashwant Sinha had other ideas. He was reportedly unhappy with his seniormost secretary-level officer, Piyush Mankad. What made matters worse was the decision of E. A. S. Sarma, the then Secretary, Economic Affairs, in the Finance Ministry, to resign his post after being treated in a shoddy manner. A suitably senior bureaucrat had to be found barely two months before the presentation of the Union budget. Kumar thus came to occupy the second-largest room in North Block.

His stay in the Finance Ministry "was not exactly a happy experience". He did not endear himself to some of his colleagues with his objections to the way public sector banks were being regularly recapitalised using public funds and the indiscriminate manner in which foreign loans were obtained. Then came the fiasco involving the Unit Trust of India's Unit Scheme of 1964.

According to Kumar, the weekend before the UTI's board of trustees met on July 2, 2001, the then UTI Chairman P.S. Subramanyam "sneaked" letters to the residences of Finance Ministry officials informing them about what would be on the agenda of the board meeting.

An important item on the board's agenda was a proposal to freeze all transactions in us-64. The Joint Parliamentary Committee, comprising 30 mps belonging to different political parties, which inquired into the episode concluded that Kumar should have discussed the matter "immediately" with Sinha and that by not doing so, "the Secretary considered the problem in a routine and casual manner that is not expected from an officer of his rank."

Months before the JPC presented its report in Parliament on December 19, 2001, copies of the draft report of the panel had been leaked to journalists. After reading news reports, on July 26, 2001, Kumar wrote to the JPC Chairman, Lt. Gen. Sri Prakash Mani Tripathi, saying he was "shocked and greatly perturbed" about the comments reportedly made against him. In that letter, Kumar pointed out what Sinha had himself acknowledged in Parliament. "...it may be an error of judgement, I don't know, but at that point of time, that was the judgement that we made in the Ministry of Finance-to intervene only after the UTI board took the decision..." Sinha told the Rajya Sabha on August 1, 2001.

After the JPC report was made public, a Congress member of the committee, Mani Shankar Aiyar, stated that Tripathi had gone back on his assurance that Kumar's name would be deleted from the final report. Tripathi then blamed unnamed junior officials for the so-called goof-up. Not surprisingly, Kumar feels he has been unfairly maligned. I hold no brief for him. Many consider him to be a pliable bureaucrat. Still, one can't help but feel sorry for a retired IAS officer, now shorn of pelf and power, who is aware that he won't be appointed as a government consultant.

The author is Director, School of Convergence at IMI, New Delhi, and a journalist. He can be contacted at paranjoy@yahoo.com.

 

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