King Fisher closure and Air fare Increase

''This approach of airlines needs to be curbed and exploitation of the situation is not good for any business . This sort of greed to extract money will not be good and carries lot of illwill and curse. There should be ethics and honesty in any business to last long. The Govt also should fix a ceiling beyond which Airlines should not charge. The ceiling can be linked to the distance so that travellers also can have some calculations. The present tendency to take the flight charges to the roof without any rationale poorly reflects on lack of adminstrative controls and the image of the airlines.Will Some one look into this?.'' (This comment in response to an Article on King Fisher airlines appeared in Times Of India Dated 21/10/12)  T.V.Gopalakrishnan

Marriage and Toilets

The Minister's approach is welcome and it should be taken seriously by all right thinking citizens. People are able to have a mobile phone but they are prepared to live without a toilet, the very basic necessity. In fact Minister deserves applause for openly pleading and compelling people to have more of toilet facilities which are very essential and a must to maintain personal and society hygene. Most of the cities and important pilgrim centres have no toilet facilities and people use public road and gardens for easing themselves. Even in Mumbai one can see people ease themselves in Race course in the morning hours as there are no toilets anywhere near. One wonders with all developments, improved GDP growth and growing literacy standards how people are tolerating the apathy on the part of administration to provide common toilets in public places. The Minister can even take some initiative to have a RTTF ie right to have toilet facility like RTE, bill passed in Parliament. The schools and colleges also should consider to educate people on this issue. Nothing wrong in that Society and the people should remain clean.(This comment in response to Miniter Jayaram Ramesh appeal to brides to insist for Toilets as a condition to get married appeared in Times of India dated 20/10/12) Dr.T.V.Gopalakrishnan

Two Kitchens and additional Cylinders

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	''This is utter nonsense. In India as it is Joint family system has broken up and nuclear family system in vogue will also get shattered with this move of the Govt to allow additional cylinders based on two kitchen Concept. In metro centres like Mumbai Delhi etc it is unimaginable to have two kitchens in flat where one kitchen itself is a luxury.How the brian works in taking such illogical decisions is really a wonder and deserves special award. This will only pave way to enhance corruption and make people to invent and innovate to have false documentary proof to show that they have two kitchens. As it is with bribe any document is possible and such erroneous decisions will only add to the mess already created by the Govt in reducing the cylinders quota. The best approach should have been to keep a watch on false distribution of cylinders meant for domestic use to commercial use which is rampant. Many families use only six to seven cylinders and distributors records may be showing as 12 cylinders and more. This is where the problem lies. The Govt has to ensure that by no stretch of imagination misutilisation is possible and for that they must have accurate data on families and commercial establishments.Corrupt practices in vogue in oil companies and distributing agents are the major issues to be tackled. Instead of this , the present approach to split the kitchen into two will bring more of family problems and end up with more demand for cylinders than what was original demand before the reduction of the quota.The move is to say the least the most foolish.'' (This comment   on the article ''Two kitchens can get you two LPG connections " appeared in Times of India daated 21/10/12)

Confidence Deficit

This refers to your editorial “Loyalty above duty” (October 11). Having allowed and tolerated all sorts of scams and corruption all these years, it would have been better if the prime minister had maintained his characteristic silence rather than talk about measures to prevent corruption. Considering his government has lost credibility, particularly in curbing corruption, his latest statement that the Prevention of Corruption Act would be amended will do little to convince people.

Besides, the masses have suffered at the hands of high inflation, poor GDP growth, unemployment, high fiscal and current account deficits and so on. The government’s insensitivity to people’s problems has affected their morale. So, the high hopes riding on the prime minister when he took over in 2004 seem to have faded and cannot be easily revived.

(This letter appeared in Business Standard dated 12/10/12).

Improve Cash flow by being economical in spending and bringing back the travelling public


King Fisher can come back to business provided it regains the confidence of the travelling public particularly middle class. The KFA has to be very very economical in all its dealings to start with. By offering round trip tickets and group booknig for family and other groups with very good discounts, it has to ensure that the flights are filled up without having any vacant seat.2)It has to start with flights where the potential to fillup all seats are Optimum. It has to allow excess baggage at some concessions. If possible it can canvass business for one or two years from very regular travellers for a lumsum initial payment for 10 or 15 trips and improve its cash flows.3) Make some arrangements through Mr Mallyas contacts and influence to clear the wage arrears of its employees and earn their goodwill and support to run the business. They themselves can canvass passengers through their special efforts and small incentives. 4) Give some special incentives to travel agents to canvass booking and see that the flights are full.5) Convince bankers to defer insistence on immediate reapyment of loans and see that as and when cash flow improves their dues are cleared in easy instalments.6) Negotiate with tax department and suppliers of fuels to receive payments on easy terms and instalments depending on the improved cash flow.7) Avoid heavy payments beyond the capacity to Executives till such time the company reaches break even point.8) Raise interest free loans from well wishers of the Company against issue of tickets towards repayment of loans.The KFA enjoys very good patronage from many bigwigs of the society and it should not be difficult to raise a few crores.8) Let Mr Mallya resist to exhibit his flamboyancy using the Company's funds at any cost.He has to project the image of a business professional and show his business acumen.He can easily target corporate clients for their travelling needs through King Fisher.9) The company can take a lot of small steps to make a come back.If other airlines can run profitably why not KFA?

( This comment appeared in Business Standard dt13/10/12 in response to an Article on KFA and Mr Mallya)

Being a practical banker himself in his previous avatar,What ever Mr Chakrabarty has said has to be accepted at face value.The bankers do not bring down their rates in tandem with the RBI's policies is a fact and needs to be admitted.Banks have ample scope to reduce their interest rates for borrowers by reducing their spread by atleast 0.50 percetage,reducing the NPAs by being very strict with recalcitrant borrowers,improving their profit margin by bringing in efficiency in asset liability management particularly cash management,operational levels by avoiding wastages,etc. They want to pass on the blame to RBI for high interest rate without bothering to improve their own working in different areas.Good that RBI Dy Governor has highlighted this. RBI can carry out a random scrutiny of interest rates charged to various classes of borrowwers and observe that small borrowers are subsidising larger borrowers.Big borrowers who make a hue and cry enjoy lower rate of interest and dictate.

from: Dr.T.V.Gopalakrishnan

Posted on: Sep 19, 2012 at 07:44 IST

 

(This is in response to Banks do not pass on the benefit to customers RBI DY Governor appeared in Businss Line)

Rbi is Right

There is nothing wrong in RBI's approach and what RBI has done in its policy review is the most appropriate step taking into consideration the persistent and spiralling inflation. The consumer price index is very high and is in double digits and RBI has the real concern on inflationary front.Even the reduction of 0.25% in CRR though not strictly warranted,the RBI has been proved to be a little diplomatic in taking this measure.This will add to the liquidity and banks can lend extra and make up partially the loss of interest which they have been crying about because of CRR. The risks on inflation continues and the Govt's recent measures will only add to inflation.Fiscal deficit needs to be contained by improving efficiency in tax administration,avoiding the unproductive and wasteful expenditures,improving the investment climate by bringinging in administrative reforms,removing corruption at all levels and bringing back the black money from abroad.The RBI has taken the right step.

from: Dr.T.V.Gopalakrishnan

(This is in response to the editorial Worth the Gamble appeared in Business line dated 18/09/12)