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FIRST CHOICE OF DECISION MAKERS IN THE COUNTRY

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Contact-sureshmehrotra@yahoo.com

Who will head 50,000 crore project ?

Who will head Dedicated Freight Corridor (DFC) Project, one of the biggest Infrastructure Projects in India, with investments upwards of Rs 50,000 crores ?.Answer to this question lies with Railway Minister Lalu Prasad Yadav. Present Member (Engineering) R R Jaruhar who is considered to be a no-nonsense man is the big contender. Former Chairman of the Railway Board and currently Member of the PESB R K Singh and Member (Traffic ) in the Railway Board Dastedar are apparently other contenders. It's for the people to guess the name.

Appointment of Governors after AICC reshuffle

The much awaited appointment of Governors will take place only after the AICC reshuffle. Reason; Two important Congressmen, to be relieved in the reshuffle, are to be appointed as Governor.

Posting of 1972 batch IAS to be completed this month

Posting of remaining 1972 batch IAS officers who have been made secretaries in the Government of India is expected to be completed this month end.

CR circulation for IG rank in GoI starts

The circulation of CRs, of 1975 batch, for the rank of ADG in the GoI has started and the empanelment is likely to take place in a couple of months.

Dr Reddy to be promoted

Perhaps Dr W R Reddy will be the first in the 1986 batch IAS to get promotion in the Government of India to the rank of Joint Secretary in the Ministry of Agriculture.1986 batch Kerala cadre officer Dr Reddy is presently posted as Director in the Ministry of Agriculture.

Shaw to be repatriated !

Grapevine has it that Dev Nath Shaw Joint Secretary in the Ministry of Defence is being repatriated to the Ministry of External Affairs. He is an officer of Indian Foreign Service.

Neeraj Gupta to be JS Commerce

Additional DG Foreign Trade, Neeraj Kumar, is going to succeed P K Mahaptra as Joint Secretary Commerce. He is 1982 batch IAS officer of Uttar Pradesh cadre.

Mathur to be CEO in Madhya Pradesh

J S Mathur will be new Chief Electoral Officer in Madhya Pradesh. He is 1982 batch IAS officer.

Zaki Ahmad to join CBI

Zaki Ahmad is joining the CBI as SP. He is 1993 batch IPS officer of Uttar Pradesh cadre.

Mukesh Shekhar to join GoI

Mukesh Shekhar is joining the Government of India as Deputy Secretary Minority Affairs. Shekhar is 1994 batch IRAS officer.

IPS transfers in Gujarat likely

About 35 IPS Officers from SP upwards are expecting transfers and postings in Gujarat in the next two weeks.

Goyal is new Ambassador to Laos

Suresh Goyal has been appointed India's Ambassador to Laos. He is 1978 batch IFS officer.

Rajgopalan is back to UP

Dr V Rajgopalan,Chairman of the Central Pollution Control Board is back to the parent Uttar Pradesh cadre after completion of extended central deputation tenure. He is 1978 batch IAS officer.

Naidu is back to Madhya Pradesh

Director in the Department of Personnel in the Government of India B R Naidu is back to the parent Madhya Pradesh cadre. He is 1986 batch IAS officer.

Anand Prakash is Development Commissioner Goa

Anand Prakash will be the new Development Commissioner of Goa. He is 1979 batch IAS officer of UT cadre.He replaces J K Dadoo who is relieved from Goa administration last week.

FORUM

IA&AS best cadre managed Central Service

For past few days a lot of discussion has taken place on this forum on the newly implemented transfer policy for IRS officers aiming apparently at curbing the corruption prevailing in these services. The discussion got trivialized with suggestions, both for and against, of handing over the posts like commissioners to IAS as if this would be a miraculous solution. Corruption in our governance institutions, today has acquired far larger and complex dimensions to be trivialized on inter services platform and it has more to do with decline in moral and ethical values of society at large which the civil servant of the country is only a representative. One example that reflects this fact would be a comparison of service profiles of IRS and IAAS. IAAS is probably one of the best cadre managed central service with officers reaching JS level well within 15 yrs of service, besides officers of service are exposed to a variety of domestic and international deputations, most officers at even very junior levels get good international exposure in terms of UN audit etc, in terms of infrastructure also it stands better then most other central services particularly housing, the quality of work is also good(though may not be satisfying in the true sense for reasons beyond the control of service), there is autonomy of working and places of posting are also mostly state capitals etc. But despite it scoring on most counts over IRS it not only comes as a lower choice then IRS in preference list( which you may probably attribute to lack of information to the candidates due to its low public contact)but in many cases officers have opted for IRS after rendering two to three years of service. This means an officer is sacrificing his promotion to JS for about eight years, he is forgoing the chance of reaching to the level of secretary to GoI besides forgoing other benefits like housing. Why is that happening? I leave that for the readers to judge. Mr. Chidambaram can not change the ethical values of the society.

MB

Rajasthan is better than UP

It is nothing compared to ULTA PRADESH where it seems the autocratic rule of IDI AMIN is in force. So the SPs and DMs of Rajasthan are better off that way. UP has become a hell to work for any body who is sincere and honest. Only corrupt can survive here.

Raja Singh

IPS should not be appointed in HRC
Making IPS officers member of the NHRC is not a healthy practice and precedent. It would not be wrong to say that most of the complaints of human rights violation arise from the excesses and acts of omission and commission of the police force and the role of the I.P.S. officers can not be seen in isolation from that of other ranks. A member belonging to the police force and sitting in judgment on the action of a police officer can not do justice to the victim. In fact there should be a statutory bar on the appointment of police officers as members of any Body set up by the Government for performing judicial or quasi-judicial functions.

S P Singal

Bharat Kumar
aaj_ki_aawaz@rediffmail.com

WHISPERS .... CORPORATE WORLD

HEC Director (Personnel) selected

PESB has selected the person for the post of Director (Personnel) in the HEC. He is reportedly from the Airports Authority of India.

Rao is new CMD of ECIL

A S Rajshekhar Rao is now CMD of the Electronic Corporation of India Ltd.. Earlier he was ED in the same organization.

New Director (Marketing) in RCF

J Kohaveswaran has been appointed new Director (Marketing) of the Rashtriya Chemicals and Fertilisers Ltd..

TOP BRASS- SPEAK

The National Building Construction Corporation(NBCC) is now venturing out to build power projects in collaboration with foreign companies.and state electricity boards,says its Chairman cum Managing Director Arup Roy Choudhury.In an interview with us he discusses different steps that he took to bring the NBCC out of the red and make it a solid competitor in the building construction sector within five years.

Here is his interview

Questionnaire from 'Whispers'

1. What are your expansion plans?
NBCC is a premier construction company in the country and is one of the largest public sector construction companies. It has grown up from the level of Rs.300 crore to Rs.1300 crore plus company during the last five years and registered a growth rate of approx. 60%. It has set the target of not less than Rs.5,000 crore for the year 2011. This is not going to be easy because of the mushrooming of many construction companies in the market in the private sector and also global companies making foray in India.
Besides expansion in real estate / infrastructure projects, NBCC has been looking up at new avenues and one of such avenue is to diversify into setting up of power projects, keeping in mind that it has already been executing the entire gamut of civil works of various power projects which is approx. 25% of the total cost of setting up of power plant. NBCC is, therefore, is taking lead of setting up of power project in association of State Electricity Boards and to contribute its mite into the country's goal of achieving self-sufficiency in power by generating additional 150,000 MW of power in the next five years.

2. What are the areas NBCC has been able to clinch foreign deals
NBCC entered the overseas market way back in early 1977 in Libya. With its development oriented activities it could secure number of prestigious projects in Libya and during 1980's entered Iraq in a big way. So far NBCC has successfully completed various projects in different countries namely Libya, Iraq, Nepal, Republic of Maldives, Mauritius, Yemen Arab Republic, Turkey, Botswana etc.
· International Airports
· Airport Terminal Buildings
· Hospitals & Health Centres
· Housing Complexes
· University, Schools & Public Social Security Buildings
· Road & Highway Projects
· Sewerage & Water Treatment Plants
· Flyovers
· Hotels
· Railways Project
NBCC has executed these works in foreign countries on contract basis as well as on project management basis. It has received immense appreciation from its esteemed clients where inspite of difficulties and hindrances, it has completed projects with efficiency and contributed effectively in transformation plan of these countries. It is now recognized as a "Leading" and the "Most" Efficient Construction Company" and is commanding a respectable position in this part of the globe.

3. What is the secret of NBCC's success under your leadership?
When I took over reigns of the NBCC Ltd. in the year 2001, the Corporation was collapsing because of its poor performance in all fronts - execution of works, financial management, general management & administration etc. Heavy interest burden on the borrowings, off-the-hook policies and strategies were constantly telling on its financial health. Each and every employee of NBCC had been counting doom for themselves with no salary for months together. The reputation of the company as a construction agency reached an all time low with clients, both existing and potential, turning their face with dissatisfaction and disgust.
My first task after joining the Corporation was to diagnose the ailments of the company, implementation of proactive approach and introduction of short-term & long-term measures for revival of NBCC which I did in quick time. Total transformation was brought about not only in financial terms but in organizational issues like corporate culture, belongingness to organisation, job satisfaction, productivity, industrial harmony to make NBCC a model PSU employer.
Based on the strengths and to get rid of its weaknesses on which the Corporation has fallen prey to, NBCC worked on the following core aspects

i) Re-organising / re-structuring the operation system of the Corporation -
Considering that the Sites & Units which actually execute projects and earn profit for the Corporation. Zones and Head Office provide only administrative, policy and management support, reversed the old working system of Top-Down line concept of Head Office-Zones-Units-Sites To Sites-Units-Zones-Head Office. This reversal brought in encouraging results for the Organisation in the first instance. The engineers and staff members posted at sites and units, for the first time probably, began enjoying their importance that was clearly spelt out. They were given free hand in handling the projects under them with only the commitment of targeted turnover and profit as per the MoU signed by them with their respective zones and so to say, the Head Office

ii) Securing the Govt. of India funded works where the funds are allocated and released in advance and ensuring delivery of these projects within time, cost and maintaining high level of quality and economy
It was a significant and successful initiative by the Corporation to manage securing the huge (around Rs.800 crore to begin with) Govt. of India funded projects in all the North-Eastern States including Sikkim & MPLADS funded Gujarat Earthquake Rehabilitation projects - a strategic move that has largely helped NBCC to come out of the severe resource crisis it had been suffering from since mid- 90s to early 2001.
iii) Selective tender works with certain ceiling value
Because of the high cost of manpower and also because comparative productivity not being the strength, NBCC re-read its strategy and restricted itself in this area. It became selective and started looking at large-value contracts with an assured profits in the initial CTC level. While executing these projects, it effected a strict control on the overheads and bottom lines. This step bore fruits and the Corporation started showing results.
iv) Customer Focus as the Corporation's USP
A clear message was sent across to NBCC Team Members that the Corporation sustainability adopts 'CUSTOMER SATISFACTION' as its USP that only would define success.
v) Bringing about changes with a Human Face
All possible counseling exercise for the employees was done to make them realise that they have to move to locations from where their salaries are earned and an open & transparent transfer policy of "first in first out" was implemented. Employees responded and moved to remote locations where NBCC had works.
The Corporation, on its part, ensured that such moves also carried along a 'Human Face' and adopted abundant Welfare Measures for the employees providing them with ex-gratia, uniform, attractive Corporate Medical Insurance facilities, 'Bachelors' accommodation, mess facilities, enhanced pay, special LTC package etc. apart from other perquisites from time to time "With the paradigm growth of the Organisation, fruits have to be distributed amongst the employees of the Organisation who, in a public sector concept, are the actual owners of the Company".

4. How is your esteemed PSU geared up to counter the escalation in prices of steel?
Normally the contracts secured by NBCC provide the escalation clause whereby NBCC receives the price rise during execution of the project. Further, at the time of tendering some provision is built in the costing towards escalation of steel and other materials during execution of work. Also NBCC goes in for bulk purchase well in advance which averts the financial implication due to subsequent price rise to great extent.
In addition, NBCC is taking following steps to safeguard itself from hike in steel and cement prices:
(a) Yearly rate contracts are signed directly with manufacturers of steel & cement viz. SAIL etc. to supply steel / cement at fixed prices throughout the year.
(b) In the areas, not covered by Annual Rate Contract, the requirement of steel & Cement in nearby projects is clubbed and bulk purchase is ordered, enabling NBCC to get discounted rates offered by vendors / manufacturers on bulk purchase.
It may be observed that last year there has been unprecedented rise in prices of steel & cement specially the prices of steel. Such unprecedented rise cannot be foreseen / forecasted and thus no provision can be done nor the escalation formulas in the contracts can absorb such unprecedented rise. As a result of the unprecedented rise the profitability of the project and thus NBCC during last year eroded considerably.
Due to impact of the unprecedented rise, CPWD has introduced a new clause in the contract which caters to payment of escalation on account of steel & cement on the basis of star price concept. Now, almost all contracts have this star price escalation formula, which will cover the escalation to a great extent on account of rise in prices of steel & cement.

5. Do you think that you face any competition from India/Abroad?
There is stiff competition in securing the projects both in India and abroad. However, with the NBCC's experience over the years, NBCC is able to secure a good number of projects because of its winning edge over the others by way of professional service and economical offer. As a result, NBCC has secured many prestigious projects both in India and abroad. The housing project of Turkey was secured after participating in global and stiff competition from well established European, American and local firms.
Operations in the free market and competition go hand in hand. NBCC is fully geared for competition. Statistics collected in the last five years have indicated that NBCC has been able to save the national exchequer to the extent of Rs.350 crore + on account of works executed by NBCC in which it had been appointed on the basis of lowest competitive bids against the private operators. In the construction sector NBCC has an edge with the private sector players and presence of NBCC itself discourages any cartelisation among private players. NBCC has been able to utilise any kind of artificial inflation, thus creating value addition to the clients which are mostly large PSUs / Government Departments.
As far as infrastructure works against private players is concerned, NBCC does not have much chance because the method of award of contract in the private sector is not transparent and NBCC which is bound by the Govt. rules and under the purview of CVC / CAG guidelines is unable to negotiate on the line of private sector companies.
Regarding projects in overseas countries, NBCC is facing huge competition from the Chinese companies as the Chinese companies are able to generate low cost due to cheap labour and considerable amount of financial leverage support etc. being extended by the Chinese Govt. in terms of special loans etc.

6. Please list Landmark achievements
NBCC, under the aegis of Ministry of Urban Development, Govt. of India, today is one of the Premier Engineering Services and largest Public Sector Organization in the country. It is also ISO 9001 company for Project Management and Consultancy Services and its constant improved working parameters have been reiterated and substantiated by the recognition and accolades it has received from its various clients including Prime Minister's Merit Certificate for its performance.
In Real Estate which is one of the major thrust areas for the Corporation, besides developing commercial complexes, NBCC has recently launched Housing Project "NBCC VIBGYOR TOWERS" at New Township of Rajarhat, Kolkata. This is the first venture of its kind by any Central PSU.
With the implementation of various Chimneys / Cooling Towers & other Infrastructure Development Projects, NBCC has acquired excellence and expertise in the field resulting number of such projects now being awarded on nomination basis. NBCC is now foraying into taking up total construction of power projects in collaboration with foreign companies where NBCC's role will be of entire construction and supply of equipment etc.
Keeping in view its vast experience and strength in Engineering, Consultancy & Execution of works, NBCC entered the large market of Project Management Consultancy (PMC) jobs. PMC projects include preparation of estimates, CPR / DPR, approvals from various authorities, execution of works, handing over the projects etc. Today, NBCC has been working as an extended arm of the Ministry of Urban Development, Ministry of Urban Employment & Poverty Alleviation, Ministry of Defence, Ministry of Home Affairs, Ministry of Commerce, Ministry of Rural Development, Ministry of Textile and various State Governments & other Organisations.
Earlier NBCC executed some projects in the North Eastern States as a contractor for various State Govts. During the year 2001-02 NBCC had been called upon by the Ministry of Urban Development, Ministry of Housing & Urban Poverty Alleviation and other Central Govt. Departments to work as its extended arm as an "implementing agency" in facilitating development of North Eastern States including Sikkim. NBCC has now been working all over the North Eastern States as an extended arm of the Govt. of India and as an implementing agency for its various developmental projects and has already completed more than Rs.300 crore worth of projects in various North Eastern States. The role of NBCC is that of a consultant for doing design, preparation of detailed project reports, getting the reports sanctioned from the Ministries in the Govt. of India, get allocation of funds to the States against these projects and get the Projects "Implemented".