Building India’s Marine Container Value Chain:

Container Standards, Logistics and Global Strategy Part 2 The study shows that all the containers will be going through a registry. The registry is adequately written on the side of the container as well as on the back of the container. The photographs that we have taken from the Baikampady region are attached to this. It is with a description and table that each container is identified. All the containers that are now manufactured in the world are called ISO containers, and the International Organization for Standardization is the issuer. The standards are available for between 50 francs and 70 francs, which are required to be paid for. Each container has long bolts and is capable of being handled well across all the regions of the world and at every port in the world. It is now common knowledge how containers can be stacked up to 5, 7, 8, or 9 high. I recommend that we invest in obtaining the standards, studying them in depth, and extrapolating that to the requirement of steel in connection with mild steel for nuts and bolts or stronger steel or equivalent. Empty containers will be described separately, and the positioning is that every available container, irrespective of size, should be capable of being assembled by Jindal/JSW from their own steel. The requirement would then be to have an ecological wooden bottom, which again is a possibility through strong marine plywood. Nowadays ECO containers are mentioned, which have traceability and are described as ECO containers. Then there are many containers like ventilated containers, open-top containers, and size-wise containers, but all have been standardised into 20-foot and 40-foot containers. Drawing enclosed, which is available from a diary or from the specifications. We can easily assemble a document called “Quality and Marine Containers” and work backwards on the question of least wastage and high sustainability. The finished price that would be invoiced will be based in Euros per container or Yen per container or Dollars per container or the lease cost. The total requirement of 3 million containers would take about 3 and a half years. Karnataka could therefore be the assembly hub for this, especially if there are deep differences in the pricing of Corten steel, which ideally there should not be. The pricing should be sufficient to be submitted to the Shipping Ministry, which is different from the Ministry of Ports. The discussion and dialogue with all the oligopolies will happen in Mangalore city if there is emphasis on the location aspect. Eventually, when the Hubli–Ankola line starts and deep bulk connections happen over the next 8 to 12 years, the possibilities of going to another 30 million tonnes of steel are very much on the anvil, not only in Karnataka but also in Orissa. The general presence should be in each port through its subsidiary so that it can do repositioning and positioning, but it would be more advantageous to be in inland ports which can be created. One such inland port can be in Bellary itself and in any part of northern Karnataka where land is not an issue. Therefore, the repositioning of containers for India as well as the world can become a noted fungible activity, for which we should create an intellectual position and prepare enough to say that Corten steel can be a viable throughput. To create competitive conditions, whether it is own production of the steel or whether it should be competitive enough that Corten steel can be ordered from China if it is cheaper and assembled in India, all options need to be considered. The Government of India is most likely to incentivise all aspects of container leasing through its flagship programme Sagarmala or equivalent. Jindal and JSW can then go into the supply chain for marine containers of 790 as well as 1170 small feeders.These can be assembled in Udupi district or in Mangalore district, South Karnataka district, or eventually in one berth or equivalent in Orissa, which can be a captive berth where shipbuilding can be organised for up to 450 small containers with the supply chain in India. Next to it can be the container repositioning system with stacking.Repositioning means bringing equilibrium between empty containers available for loading in a particular port, where they are immediately positioned to receive cargo. Here, a detailed study will be initiated in Mangalore on the question of how oligopolies handle containers, how lessors and lessees manage containers, and this can be in the form of crowdsourcing or specific-based studies. The Mangalore region has master mariners who are mostly not in containers, but one strategic aspect is that JSW can also own berths in Trincomalee dedicated to containers, with a backup area of 10,000 to 20,000, as Colombo has a history of congestion. The next positioning would be with the Willingdon Port and all the ports in India, where backup yards can be in the private sector or in the public sector, where empty containers can be positioned more efficiently with the use of Indian alacrity, mobility, or whatever it is called. The core position is that 3 million containers will create an automatic demand for 4.5 million tonnes over a 7-year period. The world equalisation plan or equilibrium plan can be brought into mind with the South-South dialogue, where feeder ships can quickly go from port to port based on leasing and ownership in Hambantota, which is the Sri Lankan port special economic zone, or Seychelles, which is now going to be India’s strategic location as an island nation. Then we have Mauritius, which has the southern Asia-Pacific headquarters of CMA CGM. Again, Durban has an Indian emotional connect, where two dedicated backup areas can get generated as a hub for positioning. Namibia can have a good backup area for empties, as Namibia has desert land, and probably the port of Mtwara, where there is huge potential and where land is provided by the Tanzanian government, which is very interesting for the next phase. Again, backing up into the country of Zambia, which is a landlocked nation, and Mali and Zimbabwe, all the relevant ports can become recipients of feeder vessels up to 700 containers with Indian ownership in the context of Indian lessors. We would be providing enough material for about a report of 180 pages with 20 chapters, and we can stick to text, while 100% mechanical engineering content will be in annexures in another 180 pages, which will include designs for mechanical engineering, which are very simple in terms of opening and closing of port doors, gaskets, and total study of containers. Jindals can invest less than 60 lakhs in a small compound within Mangalore for connecting to the port side and studies, and about 25 hectares where Jindal can effectively begin a land port. The reason is that there is an innovation possible regarding containers: steel exports to landlocked countries, whether in any form, such as empty bars or plates, do not occupy the full volume. Therefore, as merchants, our thinking would be that food items can be boxed and put into the 40-foot containers, as the total weight and volume taken would not exceed the requirement.It is intriguing that the JSW dealer will also be owning the land port inside Zambia, for instance, and the food will be taken off based on its best-before period, while the steel would remain there. Therefore, the port of Mtwara would be regularly receiving one sailing of 1,400 containers which will contain 18 tonnes of steel, but it will also contain about 8 to 12 tonnes of rice, puffed rice, jaggery, sugar, or anything equivalent, including pharmaceuticals. All these would be standardised in terms of cartons which will be specified, and therefore Mangalore will very easily become the stopping point for aggregation and disaggregation at respective ports in Africa, with Jindal as a brand that will go into steel. Other subsidiaries will also be dealing with exportable surpluses of clothing and construction material like cement, which can move along with this as small cargo without prejudice to the steel, which is fungible. So this is called innovation, as the freight element in break bulk versus containers can then get established, and profit would also be in transportation. The term logistics nowadays is described as a total service function from door to door. So it makes sense for Indian expertise, especially North Indian expertise, as employment is an issue, that the dealerships located at destinations can be managed remotely with the use of natural intelligence and artificial intelligence. Locals will then get employed, which will be highly emotionally gratifying, and expansion in employment will be possible in about 110 nations, which India will then connect through ports of reckoning without congestion. Through such channels, good business can be created on a friendly basis with Maldives, Seychelles, and islands around the world, where even barge-mounted containers can get delivered, and India would become a maritime nation. With collaboration from countries like Austria, New Zealand, and Japan, for instance, the island of Okinawa can connect to Korea for Indian goods and services associated with the marine sector.Notes- Containers have a lifecycle. – Perishable. – They need servicing, which means backward integration into the Bellary region for high-quality repairs and maintenance, which can be done along railway tracks and where labour turnover is easier to establish. This concludes the two-part series on India’s Marine Container Value Chain
Posted by G Giridhar Prabhu

Building India’s Marine Container Value Chain:

Corten Steel, Manufacturing and Leasing Part 1 The value chain on containers and the metrics involved have to address a few questions. a. One, whether fabricating a container is better in domestic territory, specifically for Indian conditions. Across India, there would be a regular requirement for certified ISO marine containers, which can currently be estimated at around 300,000 brand-new units, fungible from any origin to any destination within India. b. Two, when marine containers are leased to the three biggest users of marine containers in the world, they are: – Maersk, headquartered in Denmark, now known globally as Maersk. This is a Denmark-based oligopoly. – The next is MSC, short for Mediterranean Shipping Company, headquartered in Switzerland and also one of the biggest and best-operated shipping lines. – The third is CMA CGM, which is also a family-based organisation and operates out of the port of Marseille in the south of France. – American President Lines, called APL, is based out of the USA and, ironically, is partially or fully owned by CMA CGM, even though “American” is attached to the name. These are European entities and have overtaken the American agenda in terms of owning and operating huge container ships, each time improving their operational abilities. They are now dominant from any port to any port, managing scale and size efficiently. On the eastern side, Japan hosts its own national shipping lines. There was a Korean entity which went bankrupt, but ultimately the bankruptcy was adjusted in world interest, and they either merged or were completely taken over, though this process took time. Japan has a reputation for having its own line-up, but it is again confronted with cost issues. Research and study on Japan’s container lines will also have to contend with the fact that they would be very interested in operating out of Sri Lanka, which may be better than operating out of places such as Krishnapatnam or Bangalore, and they would be interested if Indians collaborated. There are independent lenders, each of whom operates out of an island jurisdiction, maybe Hong Kong, Singapore, or any free trade zone, which gives them operational flexibility without sacrificing competitiveness in leasing. Each company has a policy to own containers of its own, which they order from China according to ISO specifications. They prefer to lease rather than buy, because even if they are cash-rich, leasing gives them ease of operation as well as ease of ownership. Eventually, they can sign off containers once they have gone through their life cycle. It is not known to me what the exact life cycle is within this oligopoly, after which tenders are called and old containers are sold off. This typically happens from Hong Kong, Singapore, or similar locations. In India, the value chain for Corten steel depends on a major steelmaker like JSW Steel having the ability to manufacture Corten steel exactly to the required specifications. The reason why Corten steel is important is that containers are exposed to rough seas and salt air and are therefore prone to rust easily. Hence, ordinary steel sheets are unsuitable. The steel must therefore be specially coated or evolved with material suitable for long-term marine exposure. This leads to the second and third questions: whether special economic zones, such as in Mangalore, or a dedicated 25-hectare sector-specific special economic zone for assembly and services, can be created next to the JSW plant in Bellary or near any plant producing the required sheets. These sheets can then be transported over short rail distances, after which fabrication of marine containers can take place. The entire setup would need to be equal to or better than what is currently being done in China, connected directly to a railhead. Any company can then take the following steps: a) Fabricate or independently order 50,000 wagons suited only for containers. For this, the wheel sets would have to be specially prepared. JSW or Jindal can manufacture the long rails that would go into third-line and fourth-line loops. b) Indian Railways permits operations on privately owned flat wagons. Flat wagons are easier to manufacture and can provide a rate of return of approximately 8% to 8.25%. Therefore, 100% of the value of this asset can potentially be structured as bonds, graded and rated so that they can be picked up by mutual funds, debt funds, and even national pension schemes approved by private pension funds. These instruments can also be traded internationally, with portfolio investments invited in any currency, including the Japanese yen. c) In Mangalore, there are two specific areas where collaborations can happen between at least nine high-net-worth private individuals, who can then be allotted these containers as partial or total investments. This would allow them to claim depreciation while also earning returns higher than the standard rate of return, which will be discussed further in the business plan. d) In the Mangalore SEZ, approximately 120 acres are currently available. In my opinion, not more than two hectares would be sufficient for managing positioning or repositioning because of the services element that comes within a special economic zone. Preferably, this should become a subsidiary of either Jindal or JSW and should only perform leasing functions, while ownership can remain with multiple stakeholders. e) There is also land, approximately 40 acres or possibly less, owned by the Agarwals of the Emami Group, which they have already paid for and are prepared to surrender. Therefore, the Jindals can take over the entire 40 acres, though due diligence would be required to determine whether a railway track can be connected up to the point linking with the Konkan Railway or Southern Railway networks connecting to Tokur. This would involve a stretch of a few kilometres, approximately two to five kilometres. f) That portion of the land, approximately one to two kilometres in length, can serve as a railhead inside the compound of the special economic zone. A compound wall would need to be constructed, creating a sector-specific SEZ, which should be relatively easy to obtain through the Board of Approvals under the Ministry of Commerce and in the national interest. g) The fabrication process can then operate on a 16-hour shift basis, from 7 a.m. to 9 p.m., considering Bangalore operational standards, for six days a week. Intelligent systems can ensure that once fabricated parts enter the system, they remain securely available for inspection. h) Inspection must comply with ISO standards and can be carried out by at least ten agencies in India, including entities such as Bureau Veritas, DNV, or other Denmark- or Netherlands-based certifying agencies physically present at the plant. Next in the Series: The next article examines ISO container standards, repositioning strategies, inland ports, global logistics networks, and India’s opportunity to become a major marine container hub.
Posted by G Giridhar Prabhu

Boosting Container Industry in India

Marine Containers: India’s Next Growth Story The Government of India announced that ₹11,000 crores PLI can be earmarked for marine container handling. Marine containers would have an impact on all Indian economy for the ₹700 trillion economy idea by 2030s. The proposal was not taken forward after 3 studies, as it is mentioned in newspapers that it requires more investigation and information. China holds a monopoly of containers in the world, and an Indian economy deserves it that the containers are held, owned, and leased from Indian soil. Special Economic Zones as the Foundation The ideal situation would be that it is from a Special Economic Zone, and all the operations can be offshore for the Indian operators. The special economic zone is called a foreign territory on Indian soil. So, IFCI can pull it off if, instead of a PLI, it can be a soft loan from the Government of India to IFCI at, say, 2.75% per annum, with an agreement that it is a rolling fund for about 25 years. The concept for a rolling fund or revolving fund can be that the depreciation and evolving will be a continuous process. The Government of India can arrive at MOU that for all Departments of Government of India Agribusiness – Produce and Products – it can develop a Validation and Verification centre for “information” with raw data. Developing India’s Corten Steel Capability What is the Indian angle here? It is the development of a process in steelmaking called Corten steel. India can develop it from scratch with all the steel companies in India, developing the precise kind of Corten steel that goes into container making. All of this can be an ecology that will add, probably, X amount of crores of rupees for different players. So, the steel players can get part of the fund at, say, 5.25% interest, which will match the global dollar interest today in rupees. If they are encouraged to do this Corten steel every year, then it goes to the fabricators, who will rapidly make all kinds of marine containers in Special Economic Zones. From Special Economic Zones, it is then owned by wealthy individuals or consortiums. They need not be financed per se, they can get access to world finance. But the important thing is that they must be leased through all the other companies in the world. India’s Role in Global Container Leasing So, IFCI can use its leverage that it can encourage all the 9 major shipping lines who operate containers to, say, have 100,000 containers owned in India, but operated as their own containers and repositioned in India as a base. It would be economical for them to run the show from Indian ports; they will be backed up in yards and so on. Therefore, the idea is that 11,000 crore will earn IFCI, a net income of 1.75% without risks. Management costs will be minimal for a huge base based out of all the centres in India which are responsible for marine containers, which are port cities. A South Initiative Under G20 Therefore, it creates a sort of a South initiative under G20, that all the containers will move around, but India can do the value additions in container handling that will reach the remote corners of different places on earth. The Prime Minister mentioned that India’s food surpluses will ultimately mean something to all the nations of the world, as well as items like pharmaceuticals. The news is that Adani is ordering 1,000 ships. Building ship-building capacities means that India will be moving around. So, swift and nimble should be the word for India, as small is beautiful, and the Indian resource meant for India will expand. From PLI to Long-Term Development Finance So, this idea can be processed within the current live situation, that what is frozen; the PLI can turn into, like, say, preference shares or long-term bonds, but it is like the development stories in the 1970s and 80s where it is not given away as subsidy, but it is given away for congruence. Therefore, the biggest growth story in India will be fuller utilisation of capacities and reduction in inventories, quicker turnaround in manufacture, and better utilisation of working capital. That is the convergence that IFCI needs to do.
Posted by G Giridhar Prabhu

The Pedestrian

Will one find it difficult, in the coming weeks, to experience one’s own city as a pedestrian? The term “pedestrian” in elite societies is sometimes “looked down upon,” as against the person who sits smugly inside a four-wheeler and feels the difference. The joy of walking that one had 50 years ago had a social context, as cities were less crowded, had fewer vehicles, and offered plenty of footpath space, or even portions of the road where one could easily walk from Point A to Point B to Point C and back home. Currently, the recent expansion in the ownership and acquisition of vehicles has made it extremely difficult to remain a pedestrian. In today’s terms, a pedestrian is probably neither looked down upon nor even cared for, except that the person who walks is rather isolated. There are 300 helmets if 150 bikes are stopping at a red light, along with four-wheelers and buses separated by dividers, one chooses to walk only when the pedestrian signal turns green. Yet, because of impatience or perhaps frustration, the pedestrian has little chance against these behemoths, and all the two-wheeler drivers are hidden behind visors. That leaves me wiser to the reality that I should quickly negotiate between four or six vehicles by holding up my left or right hand to indicate that I am legitimately crossing at a zebra crossing – sauntering across stripes that are themselves almost invisible because they wear out faster than the city authorities can muster the resources to repaint them. The complication is similar at road humps, where stripes are also supposed to exist but are sadly missing for the same reason: both the humps and the paint wear out quickly. The city traffic police are definitely a stoic lot, or perhaps a harassed lot, though they rarely show their harassment or frustration. The sheer authority of the khaki uniform, the white shirt, and the whistle remains. Sometimes they carry sticks and caps as part of standard issue, or even wear helmets because they may immediately have to rush on their own bikes to the next junction when the radio hoisted on their shoulders signals a problem or crisis at another location. They have to contend with indifferent drivers, riders, pillion riders, and pedestrians who scurry across roads. Yet, during traffic jams, it becomes strangely convenient to test the agility of our heels and knees while leaning toward or away from rear-view mirrors, all the while remaining conscious and aware of riders so as not to embarrass ourselves. There is often a wondering look as to why I should be a pedestrian at all, and my dear friend who chooses to walk in the early mornings gently reminds me to take care. The true adage in management is that a manager should measure what one manages. So, managing to remain a pedestrian, I thought, would perhaps be the best way to increase awareness, contemplation, and meditation in the current world – something that seems impossible merely by reading or checking media. So-called negativity is overwhelming, only lightly balanced by positivity from do-gooders who quantify and prescribe how one should live life here and now. The pedestrian, however, exists in the here and now. It is the driver, rider, and passengers whose lives are placed in the command of the person behind the steering wheel. How a person responds to another who overtakes from the left or veers recklessly through traffic because it is time to reach the college bell reflects the current condition of society. This is the present mode of life, where one must place a thumb on digital time recorders whose summaries go to the HR chief, or the delegate of the HR chief. Strict monitoring of time also enables ERP systems to deduct salaries proportionate to the minutes one is absent from the office. How does all this affect a quiet village, where time once seemed to rest gently in one’s hands? More and more employment now draws villagers into cities and back again, as commuting from rural areas becomes part of modern life after they equip themselves with the competencies needed for city jobs. In a village, being a pedestrian was once very easy. It was always my favourite thought that I could simply lounge around in a village. But with current levels of prosperity, village roads too are lined with parked vehicles – from brand new cars to second-hand ones. It is surprising that the amicable rivalry between villages and cities is slowly transforming into affection, nostalgia, and the genuine ability to say that one can still be happy by visiting one’s own village. There, one meets villagers who are friends or relatives and enjoys the quietude for a few hours. The quality of village life is overwhelmingly better than the exhausting travels of cities, whether they are Tier 1, Tier 2, or Tier 3. City corporations and town municipalities alike ultimately serve only one Indian citizen who must constantly figure out how he or she will commute.
Posted by G Giridhar Prabhu

Gurpur Valley and the Foothills of the Western Ghats

A Landslide, A Community, and a Lesson in Living with Nature There was a landslide between Vamanjur and the bridge – a block on a road that is now being developed as a National Highway. At that time, however, it was a State Highway, before being handed over to the National Highways Authority (NHAI). The landslide occurred in July after heavy rains, and the evidence can still be seen today: a major slice of the hill had collapsed. On top of that hill stands a primary school, now painted like a railway bogey. As a result, all of us from Mangalore, as well as those from Moodbidri, were prevented from reaching Gurpur. Likewise, all the residents beyond that point were affected. Buses had to be diverted via Bajpe. More than a hundred express and other buses began using the diversion route, increasing travel distances by approximately 6 to 9, and in some cases even 12 to 14 kilometres per trip. At that time, there were clay lorries transporting clay, but the majority were river sand lorries. Consequently, the transportation of stones, sand, and other materials was disrupted, and all traffic moving from Moodbidri towards Mangalore city was blocked. A Minister’s Swift Response Shri B. A. Moideen, the Honorable Minister in charge of the area, immediately visited the site, surveyed the situation, and ordered experts from Bangalore to examine it. In those days, resources such as excavators and large trucks were not readily available. For the next 48 hours, newspapers carried headlines, surveys were conducted, and discussions took place regarding how best to deal with the situation. The lorry owners made it clear that they could not simply increase their charges because of the diversion through Bajpe. Bus operators also emphasized the need to restore the road as quickly as possible. Volunteers Each lorry owner contributed a vehicle, and labourers immediately began excavating the mud and dumping it at suitable locations. Within 24 hours, a pathway sufficient for movement had been created. An important aspect of the story is that measures were simultaneously taken to ensure that no further landslides would occur. Because of this incident, important decisions were made both in Bangalore and at the district headquarters. It was truly a remarkable sight, and residents of Gurpur who witnessed it will recall that the entire effort was voluntary – it was said that not even a single rupee of government money was spent. The work was carried out by about 3,000 volunteers and paid workers who joined together to clear the road. This nearby landslide story therefore remains highly relevant even today. Why This Story Still Matters Its relevance lies in the lesson that we should not disturb the ecology of the Gurpur Valley, or any other valley in Dakshina Kannada, unnecessarily. The principle involved is terracing. Many of us have travelled on the Konkan Railway and observed that monsoon schedules differ from regular schedules. The travel time of the Matsyagandha Express increases by nearly three hours during the rainy season. However, the Konkan Railway has addressed landslide risks differently by introducing terracing along vulnerable embankments. Similarly, throughout the foothills extending up to Karwar, one can observe extensive terracing undertaken along the National Highway. When limestone, laterite (“shady,” as we call it locally), or loose soil is cut vertically for heights ranging from 30 to 80 metres, landslides become almost inevitable. Therefore, as human beings, we must apply ingenuity and practical solutions at the lowest possible cost. Micro-Engineering for a Beautiful Valley We should adopt micro-engineering solutions in Gurpur and nearby areas so that our beautiful valley can remain naturally preserved, even when practical issues such as two- or three-metre variations in water stagnation levels arise. What we need is practical engineering. Practicality does not mean relying exclusively on local resources. With a minimal quantity of cement or reinforced concrete, scientifically applied, structures can remain stable and effective for fifty years or more. For example, the steps constructed in 1958 during the Punar Pratishtha remain intact even today. This is not merely because of sound engineering; it is also because they were built with affection, dedication, attention, and care. Every stone was carefully crafted with longevity in mind. Laterite, a natural building material abundant in this region, hardens over time. Excavating and demolishing laterite structures is generally not a good idea, but people often do not listen. They seek modernity through demolition and reconstruction. Anything can be demolished; rebuilding well is the real challenge. A Request Therefore, I thank everyone for their attention and request each person to contribute, however modestly. The contribution need not be financial; it can simply be attention, care, and concern. Once a place becomes beautiful, people naturally appreciate it. However, that is not the main objective. The primary goal is to make it convenient and livable for all of us. Villages are the Future Some people may even choose to live in villages because they offer a quality of peace and tranquility that is difficult to find elsewhere. This is not only about the temple, the mosque, or the church. Villages are good places to live because they provide peace, lower levels of pollution, and higher levels of oxygen – even if the difference is only one or two percent. Village life represents the future of India, especially when villages can also offer broadband connectivity, good-quality food, and opportunities for people to sit together and engage in meaningful conversations. Gurpur is going to be great!
Posted by G Giridhar Prabhu

Phalguni Institute of Nature and Ecology

Phalguni Institute of Nature and Ecology (PINE) can be established for the purpose of promoting the growth of flora and fauna in Dakshina Kannada. In the nation of Bharat, in Sanskrit, it is referred to as sasya and syamala. The evolution of prakriti, which refers to the modifications in all beings, plants, trees, and all related areas in practical terms, needs to be allowed to bloom. Indian soil, in its diversity, accommodates all varieties of plants. This is amazing, and this includes water management, the ability to work with one’s own hands and feet, and the application of the joys of sight, sound, touch, feel, and taste. In the Phalguni Basin, which in its course ends in the city of Mangalore, the river flows through the city and encircles it. It joins the Netravati River at the delta. This river is 83 kilometres long, originating from the Western Ghats, and its riverbanks will need to flourish with nature and ecology, without intrusion from pollution or man-made atrocities against nature. The broad aim of PINE is: a. To promote the Phalguni River Authority; b. To protect the River Banks agenda by encouraging alternatives to land-bank methodologies and invoking ecological depositaries and nature enclaves; c. The construction of local habitats that are suitable for enjoying all the seasons of the year; d. To construct piers dynamically and facilitate moderate and safe boating; e. To adapt to the seasons, in the Indian context of ritu. They are: – the summer season, – the rainy season, – the harvest season, – the cool and cold season, and – the spring season. Temperatures remain moderate around the year in the Coastal Karnataka region. Mild weather attracts human beings to interact more with nature than with extremes, as extreme cold and extreme heat are not present in our region. Augmentation will happen when there is abundant growth of vegetation. No part of the earth should be left without tree or plant cover, thereby enabling the ecology to improve and allowing small plants and trees to absorb the carbon dioxide generated by all forms of emissions from mechanical and fuel-driven devices or equipment. Every portion of the area can be utilised for small affordable homes. Materials, labour, and tools can combine to produce the requirements of vegetables, coconuts, and all nuts grown within the region. Local vegetables that can be adopted for consumption in all edible forms may be encouraged. The theme “Buy Local” will be encouraged to promote good consumption practices. Avoiding the use of materials or media that may adversely affect the ecological system can also be encouraged.
Posted by G Giridhar Prabhu

Kalyana Karnataka University

A Proposal for Karnataka: Consolidating Nine Universities into One A measured look at a comprehensive vision for higher education, recruitment, and governance. The higher education landscape in Karnataka appears to be at a potential turning point. A comprehensive proposal has been put forward suggesting that the state government might consider consolidating nine universities – which have been deemed non-viable – into a single institution: Kalyana Karnataka University. Could merging struggling universities help address unemployment, decongest Bengaluru, and reshape higher education? The proposal offers some thoughtful considerations. This is not merely about merging administrative departments. The vision touches on recruitment, governance, judicial delays, and even the fundamental understanding of what “education” means. The Background: Nine Universities Facing Challenges According to information from media sources, the Government of Karnataka has taken a view that nine universities, established over a period of nine years, may not be sustainable to continue functioning as independent universities: 1. Hassan 2. Chamarajanagar 3. Haveri 4. Kodagu 5. Koppal 6. Bagalkot 7. Maharani Cluster (Bengaluru) 8. Mandya 9. Nrupatunga University (Bengaluru) It is worth noting that once processes begin in government or academia, reversing them can be difficult. The proposal suggests that the primary concern should not be economic feasibility alone, but rather ensuring that students who approach higher education learn well. A Suggested Path Forward: Consolidation The recommendation put forward is straightforward: all nine universities could be merged into one entity named Kalyana Karnataka University. A management adage reminds us: “When a resource is limited, magnify its yield.” Following this thinking, Kalyana Karnataka University could be open to funding from specific mandates. The other eight campuses and their allotted land could continue as departments with Heads of Department, allowing faculty to return comfortably to their academic positions within the new university or continue until their superannuation and retirement. On the Nature of Universities The proposal offers a philosophical observation: The term “Private” may not be entirely applicable to education nomenclature, except in the context of what a mother teaches her child, what a brother or friend teaches another, or even in the current scenario where a daughter teaches a father, mother, aunt, uncle, or another citizen. It is suggested that there need not be a separate category of “Private Universities” or “Deemed-to-be Universities.” Instead, they might simply be called Public Universities when notified under the Universities Act, since all educational bodies are managed by trusts, societies, and similar legal entities meant for public interest. Leadership and Implementation The proposal notes that the current incumbent Chairman of the Institute for Social and Economic Change (under the Government of India) is Ashok Dalwai. It is suggested that he could head a five-member Commission to resolve this issue within three months, execute the measure, and ensure that the functions of the universities are taken over. Decisions on balancing revenue and expenditure from the State Government and all sources of revenue – current and future – would be based on principles of austerity and simplicity. Ostentation would be avoided until universities become sustainable. Administrative and Registrar functions would then become more manageable. The focus would then turn toward accommodating the moral processes that go into higher education at the least possible cost to a student. The Government and the Cabinet might decide on one Vice-Chancellor designate for the merged universities, supported by nine retired executives – each not below the rank of Chief Secretary of the State. A Committee would comprise three former Registrars, two former Additional Secretaries, and two former Secretaries for Education. This Committee could be provided space in the KPSC building for a period of four months. Decentralizing Operations to Suvarna Soudha All orders would emanate from Suvarna Soudha. A Cabinet sub-committee meeting at Suvarna Soudha would send a message of staffing for strength while simultaneously addressing the issue of required recruitment of officers of the State Government. The eight Vice-Chancellors could be provided the ranks of Secretaries of the State. They could help neutralize coaching and other institutes for public administration through gentle and subtle efforts, and norms for recruitment would undergo a change. All Gazette notifications for Government employment would be issued from the MANGALA Gangotri campus of Mangalore University. Appointment letters would also be issued by the Government of Karnataka DPAR offices, including special-purpose offices established for Bengaluru. The purpose would be to avoid congestion in Bengaluru City. Full utilization of Suvarna Soudha would serve the purposes of round-the-year use of committee rooms and offices. The Office of the Development Commissioner would function from Suvarna Soudha—not only for the districts of Kalyana Karnataka but also for certain functions for the entire State. The main campus location would be decided by the Government. Addressing Unemployment and Recruitment The current situation presents an understandable concern that many graduates are unemployed. At the same time, the Government of Karnataka is looking to recruit a certain number of personnel within a certain period of time. On the Karnataka Public Service Commission (KPSC): The KPSC is publicly criticized from within the Government and outside, yet this institution perhaps should not be undermined. The Government could consider having only nine members for the KPSC. A quasi-recruitment board could function for preparatory purposes related to the Constitution and the laws, and implementation of key aspects of the functions of the Executive. A three-member Committee at every District and Taluk could receive public grievances—both individual and collective—to streamline grievance handling processes for both corrections and corrective actions. In the recruitment process of the Union Public Service Commission, the number of members—including the Chairman and eight members—could all be drawn from among the best, so that the recruitment process would be confirmed in the respective areas. A new process worth considering: Interviews could be conducted by 36 incumbent executives, where candidates, working as teams, could be provided internships and apprenticeships for specific tasks. These opportunities could also be extended to former ministers and current ministers, as well as senior administration, to test capabilities in a natural administrative environment across all possible disciplines. The recruitment process might include tests with interaction from the public related to the functions of the State. Character could be given precedence over epistemology, as knowledge is often acquired through experience and epistemological aspects. Learning from Retiring Personnel It has been reported that in the Government of Karnataka, approximately 273,000 personnel are going to retire (Source: Deccan Herald). One might ask: Would it not be fitting that people who retire could teach the warp and weave of the art of administration—guiding others from mediocrity toward excellence? It is suggested that in the last one or two years of service, incumbent retirees or potential retirees could be the very persons who guide potential employees after the recruitment process is completed, including acceptance and rejection during probationary services. Karnataka has always been ahead in innovation and in administrative activity. On training and coaching: Apprenticeship, training, and internships could be made part of the recruitment process. This would mean that applicants—among whom various kinds of protests are now happening—are often victims of training and coaching. Therefore, the entire training and coaching processes could be gently eased out rather than “banned.” The Role of Legislators and Legal Professionals The Chief Minister, Ministers, and others are understandably prone to making public statements and gathering petitions. The whole exercise could be structured so that after recruitment, employment can happen straight away. Attention is drawn to Article 309 of the Constitution of India, which is yet to be fully operationalized. All members of the legal profession and the Bar could be employed in assisting prosecution, thereby strengthening prosecution as well as the making of law at the level of Secretary (Law). The senior-most legislator who is aspiring for a position in the ministry could chair Committees on Higher Education, along with a seasoned opposition member who has been a former Minister as Co-Chairman. This could help sharpen processes for Government action rather than blunt divisions. A rank of Cabinet Minister could help reduce infighting, meaning that processes that are held up in Government could have more rapid resolution of issues with voluntary support from prospective employees. Channeling Public Grievances The grievances of the people could be channeled through the aspiring bureaucracy that requires posts to be filled. All these universities could become centers for reprocessing applications and issuing appointment orders after a two-year apprenticeship, internship, and teaching course. This approach could eliminate coaching classes and equivalent requirements in the appointment of required posts. The KPSC could be shifted from Bengaluru to Davangere, where the Additional Chief Secretary could head the Department of Administrative and Personnel Reforms, posted at Suvarna Soudha in Belgaum, with the requisite staff to oversee management of change. Addressing Pending Litigation Regarding pending cases: All cases in the Hon’ble High Court of Karnataka, Bengaluru, relating to personnel could be moved to the Dharwad Bench, with approximately 80 personnel from various departments—each not below the rank of Secretary—to help decongest pending litigation. Petty cases arising out of egos and superegos might be mitigated by compromise decrees and suitable reliefs based on principles. At least seven of those personnel could have deputies who would deal with cases in response to various petitions filed in the Supreme Court of India in connection with Karnataka and the Karnataka High Court, as well as cases in other courts and tribunals. A special dispensation could be made where invitations would be extended to the lawyers of the people, along with the requisite institutional backing. The idea is that issues arising from egos, superegos, principles, or clerical mistakes that reach the Supreme Court could all be resolved across the table through discussions outside the city of Bengaluru—perhaps within the ambience of Suvarna Soudha—and withdrawn with mutual consent based on precedents or cordial acceptance, with the goal of ending litigation costs, both current and future. The Government of Karnataka could draw on former officials to chair committees, along with two officials—one serving and one capable of providing clarity on the petitions—and offer suitable instructions and conclusions. A Practical Suggestion for Dispute Resolution The proposal also implies that applicants and aspirants for jobs could understand the processes that work in tribunals. The Government of Karnataka could be a pioneer in immediately appointing about 300 posts where internship and apprenticeship would take place in the areas of disputes. Currently, Ministers go around for public interactions and receive petitions that are routinely handed over. Solutions often come only after they are suitably addressed. These could be addressed through sessions in universities, which could be conducted in Constitution Clubs beyond normal study hours. It is therefore suggested that about seven Additional Chief Secretaries could be promoted immediately from the rank of Secretary. Those close to retirement within nine months could be requested to handle this work and continue beyond 12 to 24 months at Suvarna Soudha, with all facilities to enable quick resolution of disputes. A Final Reflection This proposal offers a thoughtful vision for structural consideration—one that touches on education, employment, governance, and judicial efficiency. Whether the government chooses to act on these recommendations remains to be seen. But the conversation about consolidation, decentralization, and recruitment reform appears to be one worth having. This blog post is based on a proposal document sent to the Department of Higher Education on 28th March 2026. The views and recommendations expressed are those of the author and are presented here for discussion and consideration.
Posted by G Giridhar Prabhu

The Daily Gold Price Reference Rate Publication

India Needs a Daily Gold Price – Here’s the Plan The Imperative The establishment of an official Daily Gold Price Reference Rate for India – supported by institutional reforms in bullion markets, logistics, currency infrastructure, and strategic reserve management – is an imperative. With gold prices unusually high in international markets, India’s response must be practical, rooted in the 5,000-year perspective of bullion in our civilisation. I. Immediate Measures The Daily Gold Price Reference Rate needs publication by a quasi-Government agency – Financial Benchmarks India Ltd (FBIL). The Department of Economic Affairs must initiate action by constituting an ad-hoc Bharath Precious Metals Agency, which would later evolve into a Government regulator. A Cabinet Note must be moved. II. Bullion Market Regulation All gold loans shall be issued by registered jewellers, regulated by the India International Bullion Exchange. State-owned banks shall be authorised dealers in primary gold. All commercial banks will be allowed to deal in primary gold from a Government entity and seven nominated wholesale banks. The Forward Markets Commission (FMC) – merged with SEBI in 2015 – must be re-established as the Bharath Products Forward Markets Commission. India currently lacks a forward market with specific delivery contracts, having leapt directly to futures and derivatives. This chasm fragments businesses instead of creating efficient neutral spaces. III. Delivery and Transportation Deliveries of primary gold shall be escorted only by India Post and the Railway Police. Inter-state transportation shall use unmarked vans, guarded jointly by the President’s Bodyguard and CRPF, establishing the Special Bullion and Weights & Measures Protection Service. RBI can transfer gold reserves to Government on a FIFO basis. Up to 80 metric tonnes may be held at Rashtrapathi Bhavan by July 2027, adding 1 tonne each July 15. The President shall appoint the senior-most RBI Executive Director as Comptroller of Bullion Reserves and Keeper of the Currency Plates and Mint Dies. IV. Reference Rate Criteria · Gold: 24 carat international standard· Recycled gold: BIS hallmarked in 22, 18, and 14 carat· Delivery: Precious Metal Vaults with authorised commercial banks· Reference Currency: INR, determined at seven levels daily based on the IMF’s SDR rate, processed within 60 minutes of publication V. SDR Rupee The rupee equivalent of the SDR shall use the weighted average exchange rate of currencies traded in India on the previous working day. Reference rates must be available by 9:30 am IST – physical markets are most active 10:30 am–12 pm and 3 pm–4:30 pm. FBIL shall publish: · SDR = INR Rate· INR = All Currency Rates· On a 2-hourly basis (except 1 am–7 am IST)· In 22 Indian languages plus English VI. International Gold Price Determination The price shall consider: (a) producer prices in exporting nations, (b) transportation costs, (c) Mangalore Airport Precious Metals facility as reference for international deliveries. The econometric formula can be entrusted to Niti Aayog, IITs, RBI faculties, and think tanks as a matter of national interest. VII. Data Governance Publication shall be enabled across seven RBI-created sites. Data keying-in authority shall not be below the rank of Secretary to Government of India, Deputy Governor of RBI, or Managing Director (Bullion) at Central Bank of India. Processing will follow a gazetted protocol with subscription access. Key Strategic Proposals Purchase from the United States: Government of India and RBI will purchase 250 metric tonnes of mined gold from the USA. This reduces the Merchandise Trade Deficit with the US, strengthens bilateral relations, and helps insulate the INR from speculative attacks. RBI Gold at Bank of England: This gold needs to be moved to the Bank of Japan and offered to the forward market through at least seven Indian commercial banks. Primary Gold from RBI to Government: RBI should provide primary gold to a state-owned bank, exempt from customs duty. Profits—the difference between acquisition cost and current price—would accrue to Government. Export-Linked Release: RBI should release gold only against jewellery exports, coordinated with the Director General of Foreign Trade. Fluctuations Management Reserve: A reserve equivalent to ₹9 lakh crores in Indian rupees should be created and managed within India rather than in international currency securities. Currency Management: India’s current account management would become calibrated across approximately 175 currencies, utilising 150 years of Indian commercial banking experience to prevent volatility and manage fluctuations. IMF SDR Valuation The IMF’s SDR methodology must be simulated for India. For context, on March 20, 2026: SDR 1 = US$1.36334, US$1.00 = SDR 0.73349. A revisit to the classics by Indian economists like Professor B. R. Shenoy and Dr. B. R. Ambedkar – grounded in 20th-century economic theory – will provide the basis for India’s economic flourishing. This proposal was respectfully submitted for kind consideration to the PMO on 25th March 2026
Posted by G Giridhar Prabhu

Bharat Grameen Bank

Pioneering Rural Finance and Development in India “Serving every individual in rural and suburban India through finance, infrastructure, and development.” The Government of India is considering a transformative step: converting the National Bank for Agriculture and Rural Development (NABARD) into the Bharat Grameen Bank, a wholesale and commercial bank of national importance, wholly owned by the government. This initiative aims to strengthen rural finance, agribusiness, village industries, and self-reliance across India. Relocation and Strategic Hubs NABARD relocation to Nashik: The denotification of Deolali Cantonment makes it an ideal location for the new headquarters, centralizing wholesale banking activities. Vidarbha Region as a development centre: The region is positioned to become the hub of agriculture, rural development, village industries, khadi, agribusiness, and rural employment. Wardha as the agribusiness hub: Historically associated with Vinoba Bhave, Wardha is proposed for relocation of the Khadi and Village Industries Commission, symbolizing rural India and freeing Delhi’s environment. “Wardha and Nashik will become the convergence points of rural prosperity and economic growth in India.” Aviation and Transport Infrastructure Shri Vinoba Bhave International Airport: Priority should be given to building this airport, serving as a base for India Post, Indian Railways, the National Disaster Management Authority, Embraer, and alternative aircraft deployment. Fleet of commercial aircraft: Based in the Wardha–Amaravati region, this fleet will support ESG goals, water conservation, and rural economic growth. Indian-owned operations: All aircraft will be owned and operated by Indian enterprises, ensuring efficient, cost-effective transport for agricultural and manufactured products, including clothing. Potential SEZ designation under the Special Economic Zones Act 2005 will further enhance economic activity. Rural Prosperity and Urban Convergence Measured agricultural growth: Agricultural management should be located outside Delhi to focus on rural development. Population-based resource allocation: Towns with populations of 15,000–100,000 will be strengthened to encourage reverse migration and reduce urban congestion. Finance as a tool for ease of doing business: Availability of finance should guide business facilitation, with monitoring of prices prioritized over inflation alone. Conflict vs dispute resolution: True convergence occurs when conflicts are absent. Dispute settlement and conflict resolution are distinct, allowing resources to focus on growth and human development. Action Plan for Bharat Grameen Bank 1. Banking Role and ESG Focus – Operate as both a commercial and hybrid investment bank for rural investments, while maintaining sovereign functions through special verticals. – Headquarters and all registered offices should be located in rural areas, emphasizing ESG principles and rural impact. 2. Operational Guidelines Wholesale bank licence: Issued by the RBI, making Bharat Grameen Bank India’s first wholesale bank. Deposits: Acceptance of only Current Account and Savings Bank deposits, with high minimum balances. Branch operations: Limited to rural areas; no presence in cities with populations above 30 lakh. Management: All operations conducted through Grameen Banks, with permission to hold equity in state-owned banks and supportive corporates. NABARD equity: Permanent 26% holding in all Grameen Banks, with public equity capped at 26%. Long-term bonds: 10–20 year bonds issued to sustain lending, accessible to rural, semi-urban, and global investors. Government holdings: Limited to under 35%, encouraging public and institutional participation. Objective Bharat Grameen Bank aims to serve every individual in rural and suburban India, providing finance, enabling prosperity, and supporting the country’s goal of self-reliance. Through strategic relocations, focused infrastructure, and innovative financial policies, rural India can become the cornerstone of India’s economic growth.
Posted by G Giridhar Prabhu

Reforms in Public Sector Banking

Response to the Draft Circular on the Lead Bank Scheme Key Policy Proposals The Reserve Bank of India issued a Press Release on 13 February 2026 inviting public comments on the Draft Circular for the Lead Bank Scheme (LBS). While the LBS has long supported rural and institutional banking, the current State Level Bankers’ Committees (SLBCs) require a fundamental overhaul, as they no longer fully meet operational or structural needs. Given the breadth and complexity of the scheme, a structured response must address public sector banking reform, rural credit, SME financing, governance frameworks, and long-term capital markets. This blog consolidates public comments, including proposals from the paper “Reforms in Public Sector Banking.” 1. Transform the Central Bank of India into a Government-Owned Wholesale Bank The Central Bank of India should be delisted and all public shareholders bought out so it becomes a fully government-owned enterprise. The bank would focus on wholesale banking, serve State Governments and institutions, and divest SME advances to SIDBI, with SIDBI restructured as Bharath Laghu Udyog Bank. 2. Reorganise Rural Banking through NABARD and Grameen Banks Rural branches of public sector banks could be handed over to NABARD and other state-owned banks. About 120 branches would remain to support agricultural knowledge and rural development. Grameen Banks would be strengthened through Central Bank equity participation and improved coordination. 3. Develop a ₹9 Lakh Crore Long-Term Bond Market Grameen banks and development institutions could issue long-term bonds in GIFT City, attracting domestic and international investors. Bonds would fund agriculture, rural development, and infrastructure, while allowing farmers and local stakeholders to hold structured financial instruments for alternative income streams. Committee on Banking Reform The Government of India has announced the creation of a high-level committee to examine banking reforms. It should be chaired initially by a former Cabinet Secretary for at least nine months, with sufficient resources to guide policy. Over time, the committee could evolve into a permanent framework for prosperity-building within the Department of Banking Operations of the RBI. Its primary focus should be commercial banking reform, ensuring that public sector banks effectively serve institutional and rural needs. Governance and Institutional Structure Effective governance is key to institutional reform: – Appoint a retired officer of Secretary or Cabinet Secretary rank as Chairman Emeritus for two years. – Appoint a serving officer of Secretary rank as Chairman for three years to manage central and state relations. – Boards should include professionals from central, state, and national sectors, with four Additional Chief Secretaries from State Governments. – Four Managing Directors and five Executive Directors would execute government mandates in wholesale banking. Farmers’ Financial Participation and Agricultural Growth Structured financial mechanisms like Farmers’ and “Friends of Farmers” Funds could ensure that farmers hold up to ₹10 lakh crore in bonds and other instruments. These measures, coupled with strengthened rural banking, could support India’s agriculture in producing an additional 40 million metric tonnes of crops over 20–30 years, meeting both immediate and medium-term needs. Skill Development and Institutional Capacity Institutional capacity can be strengthened through: – Collaboration between RBI and AICTE to manage select engineering campuses for commercial banking skill development. – Recruitment by India Post to develop a nationwide banking and currency management cadre. – Absorption of experienced personnel by commercial banks for specialised roles in governance, fraud prevention, and rural banking operations. The overarching goal is professionalism, integrity, and long-term institutional sustainability. SME Recovery and State Financial Corporations State Financial Corporations (SFCs) could play a central role in restructuring and recovering SME accounts: – Debt Recovery Tribunal (DRT) accounts may be transferred to SFCs for structured recovery. – Collaboration with the Supreme Court of India and High Courts ensures integration into regular judicial frameworks. – Interest charges on recovery accounts could be suspended to facilitate SME restructuring. Conclusion The Draft Circular on the Lead Bank Scheme offers a chance to rethink India’s banking architecture. Reforms in public sector banks, rural financial institutions, bond markets, governance frameworks, and institutional capacity are critical to strengthen financial stability and support long-term economic growth. Ultimately, successful financial reform must rest on integrity, professionalism, and robust institutional structures. Credit will follow integrity.
Posted by G Giridhar Prabhu