JUNE 20, 2004
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Market Research Jitters
The big market research (MR) problem: people, when asked, often tell you what they think you want to hear rather than what they really think.


Maggi Five
Say 'Maggi', you get '2 minutes' in response. But the brand is talking '5' all of a sudden.

More Net Specials
Business Today,  June 6, 2004
 
 
WHAT TO EXPECT
KAMAL NATH
Minister of Commerce and Industry
41% CEOs that agree with the government's decision to privatise only loss making public sector firms

Kamal Nath, a seven-time member of Parliament from Chhindwara in Madhya Pradesh, wears his concern for Indian farmers and tribals on his sleeve. However, the man has had a fling or two with international trade policy, something that is now likely to take up much of his time. As Textiles Minister, he was part of WTO talks on the Multi Fibre Agreement (MFA) in 1996. Later, in 1999, he was part of a delegation of parliamentarians that attended the Seattle Ministerial Conference of WTO. "It will be my effort during all negotiations that India's agri-centric interest is India-specific and not comparable with G-20," he says, referring to the alliance of some 20 developing countries including Mexico, Argentina and China that former Commerce Minister Arun Jaitley helped forge during the Cancun round of WTO talks in 2003. Still, the minister is aware that the G-20 wields a bigger stick at WTO talks than India alone. "I will make every effort to ensure G-20 survives," he quickly adds. By the end of June, Nath hopes to present his ExIm policy that he promises will focus on simplifying procedures and reducing transaction costs, the twin bane of most Indian exporters.

AGE: 57
EDUCATION: B Com, St Xavier's, Kolkata
BACKGROUND: Career politician
Minister of State for Environment and Forests (1991-95); Minister of
Textiles (1995-96)
CEO RATING: 4.7

FOR IMMEDIATE ACTION
» Reduce transaction costs to render Indian exports competitive
» Protect India's interests at WTO
» Ensure India signs more bilateral free trade agreements

REFORMIST CREDENTIALS
» Announced new textile policy when he was minister to push exports
» Comes from a business background


WHAT TO EXPECT
T.R. BAALU
Minister of Roads, Surface Transport, Highways and Shipping

T.R. Baalu is as astute as it gets. So, when the businessman-turned-politico is asked about his reaction to the tonnage tax for the shipping industry proposed by former Finance Minister Jaswant Singh, he cleverly retorts, "As a businessman I will say yes, but as a minister my answer will be guarded." Upgrading highway and rural road infrastructure is on the minister's agenda, although he expects the Ministry of Rural Development to chip in for the latter. As for privatisation of Shipping Corporation of India, his answer should please the communists. "I am not a mad man to privatise a profit-making company."

AGE: 62
EDUCATION: BSc, New College, Chennai; Civil engineering diploma from Central Polytechnic
BACKGROUND: Industrialist
Minister of State, Petroleum and Natural Gas (1996-98); Minister of Environment and Forests (1999-2004)
CEO RATING: n.a.

FOR IMMEDIATE ACTION
» Continue to press the pedal on the Golden Quadrilateral project
» Upgrade the fleet of the Shipping Corporation of India and take a call on its divestment
» Enhance road network in rural areas

REFORMIST CREDENTIALS
» Is speaking of private participation in the roads sector
» Comes from a business background
» Is open to private participation in ports

WHAT TO EXPECT
P.M. SAYEED
Minister of Power

66% CEOs that feel it is time most services were brought under the tax net

Maybe it is his desire to be seen as market friendly that is preventing P.M. Sayeed from scrapping National Thermal Power Corporation's IPO (of 5 per cent of its equity) scheduled for August 2004. Several tough calls await the minister: the fate of Dabhol and implementing the Electricity Act of 2003 for starters. There's no doubt as to where Sayeed's heart lies. "Extensive rural electrification programmes will be put in place to provide access to electricity to those households that do not have any," he says. That's some 73 million households.

AGE: 63
EDUCATION: BCom, Government Arts College, Mangalore; degree in law from Mumbai University
BACKGROUND: Minister of State, Coal, Steel, Mines (1979-80); Minister of State, Home Affairs (1993-95); Minister of State, Information and Broadcasting (1996-96)
CEO RATING: 3.9

FOR IMMEDIATE ACTION
» Ensure that the spirit of the Electricity Act 2003 that the communist parties want amended stays sacrosanct
» Restructure bankrupt State Electricity Boards
» Remove cross-subsidies in the power sector

REFORMIST CREDENTIALS
» His track record in the ministry of steel (1979-80) and information and broadcasting (1995-96) is unimpressive
» Hasn't done much even for his own borough, Lakshadweep

WHAT TO EXPECT
MANI SHANKAR AIYAR
Minister of Petroleum & Natural Gas and Panchayati Raj

Known for his quick repartee and his outstanding work in his constituency, Mayiladuturai, Mani Shankar Aiyar occupies one of the hottest seats in the UPA ministry. As this magazine goes to press, he is yet to take a decision on hiking petrol and diesel prices, fixed in December 2003 when the international price of crude was $29 to the barrel (it is now $41). There are other issues he has to address as well: a new pipeline policy that helps companies pipe oil and gas over existing networks, the appointment of a petroleum regulator, and the phasing out of subsidies on LPG and kerosene. That's a bit.

AGE: 63
EDUCATION: BA, St Stephens, Delhi; MA, Trinity Hall, Cambridge
BACKGROUND: IFS bureaucrat turned politician
CEO RATING: 6.6

FOR IMMEDIATE ACTION
» Create a petroleum regulation authority
» Deal with a clutch of issues concerning market-pricing and cross subsidies of petro products
» Finalise the pipeline policy of the government

REFORMIST CREDENTIALS
» Has written extensively about the importance of India integrating with the global economy
» Refers continually to late mentor Rajiv Gandhi's dream of ushering India into the future

WHAT TO EXPECT
DAYANIDHI MARAN
Minister of Information Technology and Telecommunications

30% CEOs that think the government will be able to keep the fiscal deficit down to 4.9 per cent of GDP

Dayanidhi Maran is, arguably, the most successful businessman who holds a ministerial berth in this government. He cut his teeth running Sumangali Cable Vision, the cable arm of the Sun cable network his family owns (elder brother Kalanidhi is CEO). He has already released a 10-point charter for his ministry detailing convergence, rural teledensity, broadband, fourth generation technologies and a national internet exchange as areas of focus. "The New Telecom Policy of 1999 is outdated," he says. "The telecom sector urgently needs a new policy." And from a national teledensity of 7.5 (phones per 100 people) now, Maran wants India to achieve a rural teledensity of 15 in the next two years. That should be a challenge for even a man who likes to be at the vanguard of technology (or legislation; SCV was the first cable operation in the country to go the Conditional Access System way).

AGE: 37
EDUCATION: BA, Loyola College, Chennai; MBA from Harvard
BACKGROUND: Cable network entrepreneur
CEO RATING: 6.6

FOR IMMEDIATE ACTION
» Farm spectrum fairly between various types of telcos
» Enhance teledensity in rural areas
» Increase the ceiling on FDI in telecom to 74 per cent

REFORMIST CREDENTIALS
» Is already talking of 74 per cent Foreign Direct Investment in telecom
» Comes from a business family (brother Kalanidhi runs the Sun network of vernacular satellite channels)
» Like late father Murasoli Maran, is a strong votary of multilateral trade

WHAT TO EXPECT
PRAFUL PATEL
Minister of Civil Aviation

One would expect a bidi baron from maharashtra to be a votary of open-market economics. Praful Patel is, and he isn't. He is not averse to allowing Indian private carriers to fly to neighbouring countries. Nor is he against the planned modernisation (by the private sector) of Mumbai and Delhi airports. However, he is categorical that Air India and Indian Airlines will not be privatised. "Simply selling them is not a solution," he says, adding that their fleet upgradation will happen.

AGE: 47
EDUCATION: B Com, Mumbai
BACKGROUND: Businessman
CEO RATING: 4.3

FOR IMMEDIATE ACTION
» Move to an open skies policy
» Upgrade the fleets of Indian Airlines and Air India
» Modernise Delhi and Mumbai airports

REFORMIST CREDENTIALS
» Bidi baron, ergo, talks business
» Not averse to allowing private domestic airlines fly to neighbouring countries

WHAT TO EXPECT
SIS RAM OLA
Minister for Labour and Employment

Labour is labour, inside the special economic zone or outside." With those words, Sis Ram Ola reinforces this government's attitude to labour reforms. The one-time farmer from Rajasthan's Jhunjhunu district is keen to do something for the 373 million Indians employed by the unorganised sector. More pressing, however, will be his role in deciding on an equitable rate of interest for the Employee Provident Fund, and his ability to implement the promise of a minimum of 100 days employment in public works programme for at least one adult from under-privileged families.

AGE: 76
EDUCATION: High School
BACKGROUND: Agriculturist
MoS, Chemicals & Fertilisers (1996-97); MoS, Water Resources (1997-98)
CEO RATING: n.a.

FOR IMMEDIATE ACTION
» Create a flexible labour policy
» Address the imbroglio around EPF rate
» Create a security net for the unorganised sector

REFORMIST CREDENTIALS
» Comes from a farming background
» His articulated focus is to guarantee employment, especially in the unorganised sector

WHAT TO EXPECT
SHARAD PAWAR
Minister for Agriculture, Food & Civil Supplies, and Consumer Affairs & Public Distribution

52% CEOs that expect subsidies to increase

It wasn't that agriculture needed a sugar daddy in this government. Yet, in Sharad Pawar, that's what it has got. The minister hasn't given a thought to contract farming and privatisation of food grain storage. What he has, is a more active and autonomous role for Indian Council of Agricultural Research, doubling agricultural credit in the next three years, and "improving per-hectare yield." Only, Pawar's stated philosophy of "removing restrictions for farmers, including (those on) cross-border movement of goods and marketing" may run up against some internal dissent.

AGE: 63
EDUCATION: High School
BACKGROUND: Agriculturist
CM of Maharashtra (1978-1980; 1988-1991; 1993-1995); Minister of Defence (1991-93)
CEO RATING: n.a.

FOR IMMEDIATE ACTION
» Restart the land-reforms process
» Introduce agricultural reform and facilitate modernisation
» Amend Essential Commodities Act to allow free movement of agricultural produce

REFORMIST CREDENTIALS
» Made pocket-borough Baramati investment friendly (especially for Piaggio)
» Is pushing for all restrictions on marketing agricultural produce to be removed
» Is pushing for all restrictions on marketing agricultural produce to be removed

 

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