From fatal bankruptcy to natal buoyancy - the revival of Indian Railways..

From fatal bankruptcy to natal buoyancy, that is how the splendid and massive economic revival of the Indian Railways has been characterised by the press and media in the country. A juggernaut which was  considered as good as dead, rose from the ashes to reassert itself, generating profits of Rs 25,000 crores in the past year.

It was during the time of Vajpayee and his cronies who came to power misusing the religious sentiments of the pious, that their railway minister Nitish Kumar came up with the Rakesh Mohan report that the Indian Ralways was doomed for disaster and total bankruptcy, needing 65,000 crores in ten years just to keep it's head above water..

Just two years after those religious bigots were bolted out from Delhi, Lalu Yadav, the down-to-earth railway minister did the impossible in the country. He turned round the Indian railways.. When Rakesh Mohan committee had recommended that 65,000 crores of money from your and my taxes would be needed to maintain the inefficiency of the incapable ministers and the religious fanatics, who were burning trains, especially at Godhra, (read the Justice Banerjee commission report), Lalu Yadav threw his report in the dustbin did the impossible. Rakesh Mohan, who predicted that Indian Railways was doomed for disaster, the usual bureaucratic style, was promoted by the government and sent to Bombay as the deputy governer of the Reserve Bank of India. Poor sarkari babu, he must be ashamed of his low quality work which turned out totally wrong and useless, !!.

The Indian Railways will even put the top private sector industries in the country to shame. Reliance for instance, generates a thousand crore profits slitting the throat of the average man !!

For four years Lalu has managed to hold the railways fare and freight rates steady, even reducing it by a nominal 1 rupee last year. This has been a great inflation buster for the country, because an inefficient railways will be forced to raise the fares and it would directly affect the transportation costs of the economy, fuelling inflation in turn. He not only managed to hold the fares, especially when the oil prices in the world market were soaring high, he dug into it's inefficiencies, corrected them, provided the leadership for the workforce and created cash surpluses of thousands of crores, about 25,000 crores this year. In all during the four years he has generated for the country revenues worth rs.60,000 crores. He has not only proved Rakesh Mohan and his political mentors completely wrong, he has earned for the country the same amount in less than quarter the time they would have helped squander the same for the country, in the name of good governance and maintaining public utilities !!

Definitely lot of lessons for the bureaucrats and other political leaders to learn, not to mention of the business school professors and students in the country.

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Kind regards,

George Easaw 

Bishop Julius Mar Alvares

An article on Fr. Julius Mar Alvarez
George Kurian, Goa
October 29, 2004
Alvares is neither a Syrian nor a Malayalee name. From this itself one will say that he cannot be a Bishop of Maiankara Orthodox Church. Very few people know that one Fr. Alvares, a Goan has joined the Maiankara Orthodox Syrian Church in 1887 and consecrated as a Bishop in 1889 with the name Alvares Mar Julius.

One who visits the St. Mary's Orthodox Syrian Church Ribander (Goa) will see a beautiful 'Kabar' wherein the Holy Relies of the late lamented Bishop, Alvares Mar Julius isintered. This is the only church outside Kerala wherein a Bishop is laid in rest. A lot of people fully believe in his intercession and the prayers are well answered. This makes the Goa church as a pilgrimage centre.

Fr. Antonio Francisco Xavier Alvares was born on 29-04-1836 in an aristocratic Roman Catholic Family in Varhapuri (now Verna) about 25 km from panaji the capital city of Goa. As a very devout and pious boy he might have decided to work in His wine yard. On completion of school education he joined the famous seminary at Rachol (Goa). Thereafter he was at Bombay and ordained as a priest in1862. He continued to work in Bomay for another ve years and then returned to Goa. That was a turning point in his life. The period 1867 to 1887 changed the ordinary Roman Catholic priesthood in him. Then the church and the clergy were fully controlled by the Portuguese Government. By that time Fr. Alvares came to be known as a journalist and writer, Social worker, Educationist, Freedom ghter, Philanthropist, and over and above a rm believer in the true Christianity. Through his periodicals "A Cruz", and "A Verdade", (The truth) and later "The Times of Goa" and "Progress de Goa", the pamphlets like "Antioch and Rome", "Universal supremacy in the church of Christ", "Directions to the treatment of cholera", etc he educated the people, argued for the downtrodden and fought for the freedom of the church.

Though born and brought up and ordained as priest of the Catholic Church, he could not withstand the harassment meted out to him by the ecclesiastical and civil powers. He was against the false devotion and religious exhibitionism. A certain section of the Catholic Community lead by Fr. Alvares never consented to the agreement between the Pope and Portuguese G. over n m e n t regarding administration of the church in India. They resisted the e orts of the Pope to suppress them. They formed the independent Catholic Missions.

 In pursuit of nding out the true Christianity he went to Trayancore and contacted the then Malankara Metropolitan Mar Joseph Dioriysius (Pulikottil Thirumeni) who irected him to Mar Gregorios of Parumala. Fr. Alvares was profoundly impressed by these great and pious Personalities. He was very much convinced that the faiths, beliefs, principles, heritage,customs and traditions of the Orthodox Church were correct and far better than that of the Catholic Church.Probably he disagreed with the Catholic Church and embraced the Orthodox Syrian Church in 1887, hence he, was excommunicated by his mother church. Due to his pious life he was elevated to the Episcopal status on 29-7-1889 as Metropolitan of Goa, India and Ceylon by Mar Joseph Dionyius, Mar Gregorios of Parumala, Paulose Mar Ivanios and Kadvil Mar Athanosious.

Bishop Alvares stood to his last breath for his faith in the Church which he embraced. For this he su ered too much. He was persecuted by the Catholic Church and the political rulers.Cases were fabricated against him and he was arrested on false allegations, stiripped o his espiscopal vestments and taken to the lock up only with his underwear. He was forced to live in lthy room without any amenities and proper food. Though he was acquitted, he was deprived of the Episcopal insignia. As a Metropolitan he spent a number of years in Canara (Costal Karnataka) and Ceylon. About 5000 people in Brahmavar (Canara dist.) joined the Orthodox Syrian Church. His last ten years was in his home state only. Though he was not physically strong at that age his spirit for social service was very high.He was a poor man then but patriotism was aming and the love for the poor was burning in his heart. Practically his life was dedicated to such a cause. Then he was running a home for the poor. Infact his He was a poor man then but patriotism was  aming and the love for the poor was burning in his heart.... Then he was running a home for the poor. Infact his house in Fontainhas (Panaji) had become a heaven for the poor including some 'bhangis'.... There was nobody to support him.

The Orthodox Church which he joined was no where near him. In fact it did not care as to where the Bishop Alvares was working, how he was, and whether he was alive or not? He
was forced to beg to support himself and the poor who he had taken under his care. In a black cassock with a flowing beard, a bowl in one hand and a big stu in another to support
him, he used to roam the streets of Panaji to collect donations from his well wishers. His last days were in Ribander hospital at the mercy of a charitable institution, ghting against
dysentery at that old age. He breathed his last on 23rd Sept. 1923. Since he was a journalist, social worker, philanthropist etc. he had a number of friends. They could not support him very much openly, for they too would be branded as traitors.

But for his funeral each one of them assembled just like the 'Joseph of Arimathea', The citizen committee woke to give a very big funeral for this Patriot and Saint. His body was kept in state in the Muncipal hall for 24 hours to enable the people to pay their homage. The then Chief Justice took the lead though Bishop Alvres Mar Julius was considered as an enemy to the government and the Roman Catholic Church, the Governor General sent his representative. Thousands of people, especially so many poor paid their last respects. Funeral speeches were made by high dignitaries. A big funeral procession winding all the main roads of Panaji was taken and the body was laid to rest in the 'themmadikuzhi' of St. Inez (Panaji) cemetery.After four years (23.9.1927) his bones were collected by his friends and admirers, kept them in a lead box, buried in the same place, laid a marble slab with the inscription 'Padre Alvares- A great Humanitarian Missionary and a Great Patriot' and erected a big cross there. Then for forty long years nobody visited the grave. Nobody knew where he was buried.

But a jewel could not be hidden for long. His Grace Mathews Mar Athanasios, the then Metropolitan of Outside Kerala Diocese (Later H.H. Baselios Mar Thomas Mathews I. Catholicos of the East) during his visit to Goa in 1967, after a lot enquiries found out the tomb. As per his and the Panaji parishner's wishes a small church by His Grace Philipose Mar Thiophilos, the then diocesan Metropolitan of Bombay on 05-10-1979. When the St. Mary's Orthodox Syrian Church was reconstructed in the same place, the holy relics was shifted to the present sephulchre which was specially made on the side of the madbaha by the Catholicose of the East His Holiness Baselios MarThoma Mathews II on 6-10-2001.The St. Mary's Orthodox Syrian Church Ribander-Panaji celebrates his shradhaperunal every year in September during the week falling 23rd, to honour this Apostle of Charity. A lot people are blessed through his intercession and so many visit his kabar with prayers and o ertory, seeking blessing and favors.

P.S:
This is a very touching article and our hearts are stirred. It is because of such thirumenis our tradition of honoring bishops and priests continues as a legacy. Though our church has not canonised Mar Alvarez, we hope he will be soon declared saint. That should'nt prevent us from saying Julius Mar Alvarez Thirumeni , intercede for us , sinners now and at all times even at the hour of our death .


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Kind regards,

George Easaw 

Lalu Yadav and his magic wand..

On Tuesday, 26 Feb, Lalu Prasad Yadav will deliver the railway budget.

Continuing with his sheer detemination to silence his critics, Lalu is this time too expected to give the nation a ralway budget which will be very popular, making the common man happy. No fare increases, reduction for upper classes, more trains an so on.. The Ralways is expected to conitnue it's profitable running with last year profits / excess reserves running to Rs.21,500 crores +. ( almost US $ 4.5 billion) This is no joke for the fourth year !! It requires terrific will power and sense of purpose to be able to deliver such profits on a public utility and the only public utility at that. The state road transport corporations, state electricity boards, the state public works departments have all become dens of corruption and inefficiency.

Lalu will continue to be remembered as a leader of the masses, terribly misunderstood by the people of differing political thoughts who are always looking for the first opportunity to smear dirt at him. The great thing with him, is that nobody in the history of the indian railways, did ever initiate an operation of this scale in the country, and finally succeed  !! There lies his greatness..

The nation needs more people like him !!

george.

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Never miss a thing. Make Yahoo your homepage.

XSEED, XIME voluntary blood donation camp 22 Feb 2008.

The social service wing of XIME, XSEED, organised a voluntary blood donation camp with the help of St Johns Hospital on 22 Feb 08. Almost 70 + students donated blood, which is almost 35 %. A good score..

Kind regards,

George Easaw

Wurzburg-xime basketball 20 Feb 2008

It was a great sight seeing our students playing with the students (XIME A team) from Uty of Applied Sciences, Wurzburg on 20 Feb 2008 in the XIME basket ball court. A game played with great competitive spirit. XIME won 49-32. Prof Sponholtz and myself were the representatives from the faculty side.

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Kind regards,

George Easaw

Talk in XIME by Dr Ravindra, Advisor, Infosys..

On the morning of 19  Feb 2008, we had  a special speaker talking to the German students in XIME. None other than Dr M P Ravindra, former Advisor to Infosys. Dr Ravindra was frank and brimming with confidence the way he was speaking. Reeling statistics and figures, he pointed out that India has a share of 35 % of Knowledge Process Outsourcing in the world now and by 2011 it will become 71 %.

That was very comforting for Indians, but very discomforting for Germans and the rest of the world. Accept it or not, India is taking on the world by it's horns. Being silent for over 300 years, we were observing to what limits the colonial powers could dominate the world. Now it is known that they have blown out of steam. Patience, an eastern virtue is starting to payoff now !!( those are my words..)

Thank you Sir, the talk was very informative and motivating. Looking forward to hear more from you.

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Kind regards,

George Easaw 

Snap taken by Sunil Nicklaus..

I lked this snap taken by Sunil during xmas of 07 in XIME.

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Kind regards,

George Easaw 

Family snap in 2001..

This is our family snap taken sometime in 2002 or 2003.

Cinnu is just growing and jobin has that naughty look on his face, out for some mischief. taken in our gec

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Kind regards,

George Easaw 

Wurtzburg students in XIME..

Thw Wurtzburg students are having a good time in XIME. Enjoying the classes, trips and cultural activities here. hey like the students too.

They would also love to take clases for the XIME students as our students have taken for them.

They would like to have the same food and sit through the same routine of classes and free time for a whole day and know the routine here.

They would like to mingle with the students here.

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Kind regards,

George Easaw 

An impressive painting of St Thomas

This painting of Jesus with his disciple Thomas has always impressed me as it depicts  the curiosity of Thomas to know whether the Jesus he is seeing is the same Jesus who was crucified and had resurrected. Even though the Bible talks of Thomas having asked Jesus to show him his palms so that he could put  his finger through and get convinced, this paintings goe s astep furthr and shows Thomas examining Jesus in his chest and putting his fingers through the hole created by the spear which was used by the soldiers to make sure that Jesus was dead on the cross.

The imagination of the painter (anonymous..) is creative ..

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Kind regards,

George Easaw 

A vase with just one type of rose..

A vase is not beautiful with just one type of rose.. - Lalu Yadav

India has developed so far with the combined effort of our people over the years. People from all acros the country have contributed in no small mite. We are a mighty powerful state in Information technology, atomic power and space technology. Our managers and accountants are world class. Very few countries in the world can compete with us on this account.

It was very unfortunate to hear some regional chota leader in Mumbai rattling out very disparaging remarks against the North Indians staying in Mumbai. It was quite saddening to note his cousin too following him, a chota neta himself.

In this context , I fully appreciate the words quoted by the Hon Railway Minister of India, Shri Laloo Prasad Yadav He said that a vase looks beautiful only when it has many types of flowers. If it is just one type of rose, it is no good and will soon lose it's charm.

Similarly our country has it's beauty and charm because of the inherent diversity. Peoples from the different regions stay together in love and harmony. It is in this context that I wish to assert the importance of tours for students at some point of time in their student life. In these formative years, they will come to terms with the reality that India is not just the India you see through your bedroom window, it is much vast than your drawing room and much bigger than your TV screen !!

When people are not well read and not exposed to the outside world, the thinking and personality gets stunted. Xenophobic reactions develop against other people. It is this psychological fear that has gripped the two cousins from Mumbai. Unless it is treated soon, it is highly likely the present violence will take a serious turn, spreading across the country and take India back a hundred years. It is not at all a matter of pride to see North Indians fleeing Mumbai. The damage their uncle Bal Thackeray did to the social harmony of the city of Mumbai is again at stake with the irresponsible rantings and actions of this nephew and son. The right to work, stay and settle anywhere in the country is guaranteed by the Indian constitution through Article 19 (1) D and E.

This frog-in-the-well syndrome of these intellectually challenged cousins from Mumbai needs to treated on urgent basis, lest it go out of hand. Authorities may please note !! The political party which was hand-in-glove with these cousins, is keeping itself at a distance as it has by now understood the futility and damage it could do on their reputation, already tarnished as a hindu chauvinistic party , but a regional chavinistic one too.

George Easaw

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Kind regards,

George Easaw

First Australians .. the long drawn story of neglect, racial oppression and criminal injustice ..

The Australian PM in the Australian Parliament has publicly rendered the apology and owned up for the crimes committed against the first Australians,the indigenous peoples, including racial and sexual oppression. Does this public owning up mean that the indigenous people will be financially compensated, will their lands be given back to them ?? Will their lives, will their honour be restored ??

http://www.hindu.com/2008/02/14/stories/2008021455301000.htm

History is replete with incidents where the white men have first come as missionaries and traders, then colonise and finally subjugate the indigenous people. Ever since the white men got down from trees, this natural urge to subjugate and destroy the indigenous traditions and culture has been strong.

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Kind regards,

George Easaw 

A bemused and amused Natya..

Natya , the first year activity rep in XIME interacting wih the German students on 13 Feb 2008.


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Kind regards,

George Easaw 

Evening culturals at XIME.. 13 Feb 2008

A group photo of some of the performers with the German team.


The students gave a sincere and good effort at a repeat performance of the cultural programme of the International Conf for our German friends who came this early morning straight from Frankfurt to Bangalore.. the team led by Prof Muesig, Prof Ms Terri and Prof Sponholz from the University of Applied Sciences, Wuertzburg, Germany along with 15 students from the IT and Management stream on a student exchange programme.

Our students are getting a very good exposure to foreign students. A team of upto twenty students will go in the next two onths to various Universities in France, Germany and US for their Summer internships. This is an unheard opportunity for students from a any other busines schools other than those which are nationally funded.

Truly the year of Internationalisation is working in XIME..


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Kind regards,

George Easaw 

Neuro linguistic Workshop by Mr Andre, Portugal, 24 Jan 2008

A snap of a lovely group which attended the workshop in XIME.
L to R, front Pinky, Sundaram, Andre,Rohini, Shazia and Lakshmi
L to R, back row Shilpa, Neethu and Mina.


The NLP workshop was a real eye opener..I got some of my aims in life set out clearly...

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Kind regards,

George Easaw

A day's work at XIME..

Given the admissions work in full swing in XIME for year 2008, this snap was taken by Neethu, of my signing some interview call letters..

good photographic sense this girl has !!

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Kind regards,

George Easaw

Evident Desperation in US over non-closure of 123 ...

The past week had many ups and downs, the fortunes of the contenders for the US presidedncy tilted as never before and sooner than later, we could get a clear picture as to who is gfoing to climb the steps of the White House in Jan of next year. The stock exchange of Mumbai and all over the world took severe beating  as US FIIs started booking profits from the develping country stock exchanges and withdrew large amount of stocks from the stock exchanges. The immediate aim was to make good the suprime losses. It is not to say that they would never come back. It was during such a time in the 80s, that we saw the 'tiger' economies of South East Asia crash.

Two important events of the past week in the world economic and political spheres have been the utterances from two top US diplomats, one the US ambasador to India David Mulford and the other the already resigned US Under Secretary of State, Nicholas Burns. Both of them unashamedly have bargained for the private businesses of US, who appear apparently to be their paymasters and not the US public. When it is very clearly known that India could not be bullied or pushed to the corner for signing on the dotted lines as regards the 123 agreement of the US, the fact that both these top functionaries of the now terribly failed and disgraced Bush administration, have been quite frenetically trying to push the nuclear deal through with the US government, even though it meant being unclear and vague regarding the clauses and implementation details of the deal, shows beyond doubt the desperation and urgency for the.present administration to seal the deal and gain the political advantage.

That the deal is a dead log of wood i India and cannot be reclaimed for any sort of discussion and reactivation is a public secret. In those circumstances the unintelligent and threatening tone of the former and the pleading note from the latter, is a curious event being closely watched in Indian political circles. Will the Indian political establishment be ready with an easy snub for these top diplomats of the Bush administration needs to be closely watched and observed over the next few weeks.


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Kind regards,

George Easaw 

Trading in Carbon credits - the next financial frontier..

As per the Kyoto Protocol, signatory countries have to bring their Carbondioxide and other Green house Gas emissions (including Ozone, methane, Nitrous oxide )  by 2012 to levels prior to 10090s. These carbon emission norms and standards to be adhered to are stipulated by the UN Framework conventions on Climate Change (UNFCC).

The European developed countries who are signatories to the Kyoto Protocol have started greening up their processes with new technologies that are less polluting. What processes they are unable to do, they turn to other developing countries to buy the excess rights these developing countries have to pollute the environment. The developing countries are not polluting the environment as much as they are allowed to and hence the excess polluting rights lying unused with these developing countres or the companies in these countries are sold in the open market to developed countries who have already exhausted their polluting limits. These are called Carbon Credits. A Carbon credit sells in the open market for upto euro 22 (Rs 1320/=) per ton of Carbon emitted into the atmosphere. In short these carbon credits incentivise developed countries to reduce their environemntal pollution and the developing countries to install new tecnologies which will in future reduce GHG emissons. The final need is to protect the environment.

Any country needs industries for development. Each individul industry can apply to get it's emissions checked as per the limits set by UNFCC and see whether they are above or below the limits. If they are above the limits, they need to  install new technologies for reducing the emissions and if they are below the limits, they can accumulate these and sell them together around December of each year. There are trading agencies who can buy these carbon credits, quantified in terms of tonnes of Carbon emitted. The companies in the developed world can buy carbon credits from these trading agencies if they are unable to met the GHG emission norms. It si expected that around 2012, the carbon credits will be in great demand and hence it can fetch greater prices in the markets then.

The developed country companies can also help developing country companies install new technologies for reducing carbon emisions and these will earn carbon credits for these companies in the developed countries.

India and China are not polluting the world as much as they can and hence can accumulate these polluting rights in the form of Carbon credits which could be sold in the open market. In India this busines is worth a cool $1 billion.

By trading in these credits UNFCC has been able to give the need for reducing green house gas emissions a commercial angle, which will get commercial enterprises in the world interested in the proposition of trading in carbon credits for money. Earlier there was no financial incentive to stop green house gas emissions.

US, the world's largest polluter, sadly, is still not a signatory to the Kyoto Protocol, even though they shout from the rooftops on the need for less polluting technologies. If US acts  bit more sincerely in this regard, I hope either Obama or McCain will take it up seriously enough, the world will still be a greener place to stay by 2012.

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Kind regards,

George Easaw  (inputs from rediff.com)

Carbon credits.. how it can help bring money and jobs.. .

www.rediff.com 10 Feb 2008

Carbon dioxide, the most important greenhouse gas produced by combustion of fuels, has become a cause of global panic as its concentration in the Earth's atmosphere has been rising alarmingly.

This devil, however, is now turning into a product that helps people, countries, consultants, traders, corporations and even farmers earn billions of rupees. This was an unimaginable trading opportunity not more than a decade ago.

Carbon credits are a part of international emission trading norms. They incentivise companies or countries that emit less carbon. The total annual emissions are capped and the market allocates a monetary value to any shortfall through trading. Businesses can exchange, buy or sell carbon credits in international markets at the prevailing market price.

India and China are likely to emerge as the biggest sellers and Europe is going to be the biggest buyers of carbon credits.

Last year global carbon credit trading was estimated at $5 billion, with India's contribution at around $1 billion. India is one of the countries that have 'credits' for emitting less carbon. India and China have surplus credit to offer to countries that have a deficit.

India has generated some 30 million carbon credits and has roughly another 140 million to push into the world market. Waste disposal units, plantation companies, chemical plants and municipal corporations can sell the carbon credits and make money.

Carbon, like any other commodity, has begun to be traded on India's Multi Commodity Exchange since last the fortnight. MCX has become first exchange in Asia to trade carbon credits.

So how do you trade in carbon credits? Who can trade in them, and at what price? Joseph Massey, Deputy Managing Director, MCX, spoke to Managing Editor Sheela Bhatt to explain the futures trading in carbon, and related issues.

What is carbon credit?

As nations have progressed we have been emitting carbon, or gases which result in warming of the globe. Some decades ago a debate started on how to reduce the emission of harmful gases that contributes to the greenhouse effect that causes global warming. So, countries came together and signed an agreement named the Kyoto Protocol.

The Kyoto Protocol has created a mechanism under which countries that have been emitting more carbon and other gases (greenhouse gases include ozone, carbon dioxide, methane, nitrous oxide and even water vapour) have voluntarily decided that they will bring down the level of carbon they are emitting to the levels of early 1990s.

Developed countries, mostly European, had said that they will bring down the level in the period from 2008 to 2012. In 2008, these developed countries have decided on different norms to bring down the level of emission fixed for their companies and factories.

A company has two ways to reduce emissions. One, it can reduce the GHG (greenhouse gases) by adopting new technology or improving upon the existing technology to attain the new norms for emission of gases. Or it can tie up with developing nations and help them set up new technology that is eco-friendly, thereby helping developing country or its companies 'earn' credits.

India, China and some other Asian countries have the advantage because they are developing countries. Any company, factories or farm owner in India can get linked to United Nations Framework Convention on Climate Change and know the 'standard' level of carbon emission allowed for its outfit or activity. The extent to which I am emitting less carbon (as per standard fixed by UNFCCC) I get credited in a developing country. This is called carbon credit.

These credits are bought over by the companies of developed countries -- mostly Europeans -- because the United States has not signed the Kyoto Protocol.

How does it work in real life?

Assume that British Petroleum is running a plant in the United Kingdom. Say, that it is emitting more gases than the accepted norms of the UNFCCC. It can tie up with its own subsidiary in, say, India or China under the Clean Development Mechanism. It can buy the 'carbon credit' by making Indian or Chinese plant more eco-savvy with the help of technology transfer. It can tie up with any other company like Indian Oil [Get Quote], or anybody else, in the open market.

In December 2008, an audit will be done of their efforts to reduce gases and their actual level of emission. China and India are ensuring that new technologies for energy savings are adopted so that they become entitled for more carbon credits. They are selling their credits to their counterparts in Europe. This is how a market for carbon credit is created.

Every year European companies are required to meet certain norms, beginning 2008. By 2012, they will achieve the required standard of carbon emission. So, in the coming five years there will be a lot of carbon credit deals.

What is Clean Development Mechanism?

Under the CDM you can cut the deal for carbon credit. Under the UNFCCC, charter any company from the developed world can tie up with a company in the developing country that is a signatory to the Kyoto Protocol. These companies in developing countries must adopt newer technologies, emitting lesser gases, and save energy.

Only a portion of the total earnings of carbon credits of the company can be transferred to the company of the developed countries under CDM. There is a fixed quota on buying of credit by companies in Europe.

How does MCX trade carbon credits?

This entire process was not understood well by many. Those who knew about the possibility of earning profits, adopted new technologies, saved credits and sold it to improve their bottomline.

Many companies did not apply to get credit even though they had new technologies. Some companies used management consultancies to make their plan greener to emit less GHG. These management consultancies then scouted for buyers to sell carbon credits. It was a bilateral deal.

However, the price to sell carbon credits at was not available on a public platform. The price range people were getting used to was about Euro 15 or maybe less per tonne of carbon. Today, one tonne of carbon credit fetches around Euro 22. It is traded on the European Climate Exchange. Therefore, you emit one tonne less and you get Euro 22. Emit less and increase/add to your profit.

We at the MCX decided to trade carbon credits because we are in to futures trading. Let people judge if they want to hold on to their accumulated carbon credits or sell them now.

MCX is the futures exchange. People here are getting price signals for the carbon for the delivery in next five years. Our exchange is only for Indians and Indian companies. Every year, in the month of December, the contract expires and at that time people who have bought or sold carbon will have to give or take delivery. They can fulfill the deal prior to December too, but most people will wait until December because that is the time to meet the norms in Europe.

Say, if the Indian buyer thinks that the current price is low for him he will wait before selling his credits. The Indian government has not fixed any norms nor has it made it compulsory to reduce carbon emissions to a certain level. So, people who are coming to buy from Indians are actually financial investors. They are thinking that if the Europeans are unable to meet their target of reducing the emission levels by 2009 or 2010 or 2012, then the demand for the carbon will increase and then they may make more money.

So investors are willing to buy now to sell later. There is a huge requirement of carbon credits in Europe before 2012. Only those Indian companies that meet the UNFCCC norms and take up new technologies will be entitled to sell carbon credits.

There are parameters set and detailed audit is done before you get the entitlement to sell the credit. In India, already 300 to 400 companies have carbon credits after meeting UNFCCC norms. Till MCX came along, these companies were not getting best-suited price. Some were getting Euro 15 and some were getting Euro 18 through bilateral agreements. When the contract expires in December, it is expected that prices will be firm up then.

On MCX we already have power, energy and metal companies who are trading. These companies are high-energy consuming companies. They need better technology to emit less carbon.

Is this market also good for the small investors?

These carbon credits are with the large manufacturing companies who are adopting UNFCCC norms. Retail investors can come in the market and buy the contract if they think the market of carbon is going to firm up. Like any other asset they can buy these too. It is kept in the form of an electronic certificate.

We are keeping the registry and the ownership will travel from the original owner to the next buyer. In the short-term, large investors are likely to come and later we expect banks to get into the market too. This business is a function of money, and someone will have to hold on to these big transactions to sell at the appropriate time.

Isn't it bit dubious to allow polluters in Europe to buy carbon credit and get away with it?

It is incorrect to say that because under UNFCCC the polluters cannot buy 100 per cent of the carbon credits they are required to reduce. Say, out of 100 per cent they have to induce 75 per cent locally by various means in their own country. They can buy only 25 per cent of carbon credits from developing countries.

Tell us what's the flip side of your business?

Like in the case of any other asset, its price is determined by a function of demand and supply. Now, norms are known and on that basis European companies will meet the target between December 2008 and 2012. People are wondering how much credit will be available in market at that time. To what extent would norms be met by European companies. . .

As December gets closer, it is possible that some government might tinker with these norms a little if the targets could not be met. If these norms are changed, prices can go through a correction. But, as of now, there is a very transparent mechanism in which the norms for the next five years have been fixed.

Governments have become signatories to the Kyoto Protocol and they have set the norms to reduce the level of carbon emission. Already companies are on way to meeting their target.

Other than this, it's a question of having correct information. How much will be the demand for carbon credit some years from now? How much will the supply be? It is a safe market because it is a matter of having more information on the extent of demand and supply of carbon credit market.

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Raj Thackeray continues his idiotic rantings ...

It is really pathetic to read of the insensible rantings from some small fries - regional party leaders, trying electoral stunts of arousing people's emotions on sensitive matters in time before the general elections coming in a years' time. The interesting thing is to note how these regional, insignificant parties which are on the wane, are doing much harm to the integrity and unity of India. If only the state government takes some serious steps like putting them behind bars or issue warnings not to disturb the peace of the land, can we expect any sense of reason to prevail.

These unintelligent leaders who have lost their power of reasoning or sensibility can only damage the fabric of communal and regional harmony by their nonsensical rantings. Maharashtrains around the country may be feeling ashamed how such fools can put the nation and their own existence in great peril.

It is a known fact that less 'Outsiders' - North Indians, Gujaratis, Eastern and South Indians, Mumbai will be a big zero !!!

These are the perils of hoisting immature baby leaders on the people in the name of dynasty politics which is being perpetrated by Bal Thackeray and his coterie. THis  is for sure, the beginning of the decline of his party's influence on the common people in maharashtra.

Hope better sense prevails on the rulers and these eerkili party leaders to stop such irresponsible rantings, nipping them in the bud itself.

ge..

Raj Thackeray never expected this .

The recent outburst by Raj Thackeray against North Indians has caused a big furore in the metropolitan city of Mumbai. Having lived in Mumbai for about six years I know that Mumbai would cease to be a major city if the people from other parts of the country were driven out of the place. The drivers, the labourers, the cooks, watchmen, the traders and even big actors like Big-B are hail from North India.

Even though Raj only had political intentions of rousing the Maratha and Hindutva emotions of the people eyeing the next year elections, he has infuriated even his friends from BJP from North India. His political future is as good as blocked unless the old man comes up with his version of interpretation of the words of Raj to save the party's face.

Havng rubbed the North Indian populaton n Mumba and all across India on the wrong side, Raj cannot expect to get  soft treatment from the media or his political friends.

A clear reflection of political immaturity, hailing the perils of dynasty politics in the country.


george..