Showing posts sorted by date for query editorial. Sort by relevance Show all posts
Showing posts sorted by date for query editorial. Sort by relevance Show all posts

Monday, March 18, 2013

Team @ INN

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Monday, March 11, 2013

Sponsor Journalism On India News Network (INN)

Dear Reader,

India News Network (INN) exclusively covers news on the local sphere on national arena, including civic issues, community and culture, with an independent and inclusive journalism. We believe that you, the citizen are the best person to determine the most important topics and stories that affects you and your neighborhood.


Since we began in July 2005, we have published informative and in-depth stories on a range of topics from water contamination levels to the city's massive road-widening project and more.


But as always there are so many stories out there that we may not be able to cover soon enough due to resource constraints. We provide a way for readers to support the commissioning of reports on specific topics of concern/interest.


Sponsorship (from individuals, groups of individuals or organisations) can support specific reports on topics such as governance, education, infrastructure, heritage or culture. Such funds will help us assign the best journalism talent, and publish multiple in-depth and informative stories on key city topics.


Sponsor's funds will cover research, local travel, writing, editing and publishing costs and we will credit the sponsor of the article in the article or in the series itself.


Our Sponsorship Policy

At INN, readers can expect us to maintain the highest standards of independence in editorial stewardship, whether it comes to selecting stories, or a specific inquiry into an issue. Please note however, that sponsors have no influence on the stories themselves. We assure our readers that at all times, the sponsorship programme will adhere to two simple rules:

- Sponsors will not get any editorial say in the published material.

- Sponsors will always be clearly identified to the readers. 
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If you are interested in sponsoring an article or two in INN, please get in touch with us (send email to newscop@gmail.com). Please select your sponsorship and send us your thoughts  through email and we'll take care of the rest.


Best Regards, 


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India News Network

Tuesday, February 26, 2013

India News Partnered With Global Connect Network

India News Network (INNLIVE), an Indian News & Features news blog portal with 500 regional servers, or ports, serving on average 600 local news & general web sites, recently launched a new Partner Site program, India News Global Connect (INGC). 

INNLIVE relies on thousands of professional journalists working for local news organizations around the country. They report the news for local release and INNLIVE picks up this coverage and delivers it worldwide. The INNLIVE provides critical news coverage from "inside out" - first-hand reports from indigenous journalists who are actually living and not just reporting the news. Our sources also provide "no-holds-barred" opinion, editorial and analysis. These insights cannot be found on mainstream news outlets based in Hyderabad and New Delhi that select and edit the news for India.

Who are these news sources? INN LIVEincludes but goes beyond the usually recognized sources of news and information to include other highly credible sources not found on any other news service. We partner with other independent and highly professional providers of information - including newspapers, television and radio stations, news web sites, governmental agencies, and non-governmental organizations. A link at the bottom of each news story opens a directory that describes the news source. This media database includes information about the source, such as its ownership, political orientation, circulation, frequency, format, contact information, and web site URL.

INNLIVE routinely breaks news on a India basis - on topics ranging from Terrorism involvement in India to new telecom initiatives -- and supplies our readers with news and information that is intelligently parsed to suit specific news or enterprise interests. Our news feed covers events in business, politics, social issues, health, environment, international affairs, oil and energy, technology, education, media, entertainment and other realms important to businesses, media, government agencies, civil society and educators.

INNLIVE is a mission-critical resource for any media organization covering global topics. Our news and information provides critical insights and unfolding trends for any organization with an interest in global issues or with geographically dispersed facilities, workforce, assets, brands or customers. News stories hit the wire the moment they are published in their local market. 

One of India's premier news web sites, India News (http://inn-live.blogspot.com) and Hyderabad News (http://newshyd.blogspot.in), recently joined India Global Connect as a Partner Sites. India News & Hyderabad News serves original regional news within India and Andhra Pradesh state respectively and offers a wide variety of community focused stories, boasting a readership of over 50 million to date. 

India Global Connect provides its Partner Sites an ability to load there html pages for all their originally written content that is then available among Partner Sites to choose those stories of interest they would like to display for their audience at no charge to the members.

If you would like to get connect with your news website with INGC, kindly send your details and basic website information and screenshot of your homepage to innlivenetwork@gmail.com

Saturday, February 23, 2013

Editorial: Unite Against Terror

Let’s professionalise rather than politicise India’s anti-terror combat.

Terror is back. Twin bomb blasts struck Hyderabad Thursday, killing around 16 people and injuring over 117. Predictably, some opposition leaders accuse the Centre of bungling the job of fighting terror. If the charge can’t be entirely dismissed, the truth is there’s blame to go all round. Politicisation of terror poses the biggest hurdle to crafting a united approach to internal security. While politicians waste time debating whether terrorism is green or saffron, they put off critical nuts-and-bolts action to unify and professionalise anti-terror operations – with deadly consequences. 
    
Consider that we had information about an imminent terror strike. The home minister said this was a “general alert”, suggesting it didn’t amount to actionable intelligence. Was he clueless about Delhi Police’s claim last year that an Indian Mujahideen operative had confessed to staking out areas in Hyderabad including Dilsukhnagar, the site of Thursday’s bombings? This input was in fact subsequently circulated. Whether or not it has a bearing on the latest attacks is for investigators to establish. But there’s still a question to be asked. Given the recent terror tip-off, why wasn’t security beefed up in Dilsukhnagar, more so since this crowded locality was targeted twice in the past? 
    
Clearly, coordination is woefully lacking among central and state governments, and among security agencies under their command. The National Investigation Agency (NIA), set up in 26/11’s wake, is to aid Andhra police in probing the blasts. Whether that comforts people is debatable. NIA officials themselves claim to lack skilled manpower and access to a comprehensive database on terrorists. Moreover, they routinely face state-level jurisdictional constraints. No wonder NIA’s had a poor record of cracking terror cases. 
    
Add to this shameful neglect of basic anti-terror protocols, thanks to shoddy policing. This was glaringly evident when cops didn’t cordon off the blast sites, risking contamination of evidence being collected for forensic study. Surely it’s urgent that we invest in training policemen, boost their numbers and modernise police stations – including by digitally linking them to enable quick transmission of information. Forensics is another key area requiring urgent upgrade. 
    
Terror networks are tentacular. Terrorists don’t respect borders within or across nations when forming sleeper cells, conducting recces or plotting savagery. We can’t be ahead of their game, thwarting their depredations, unless we bury turf wars and stop politicking. Let’s revive the proposal to create a national counter-terrorism centre along the lines of America’s antiterror body, to facilitate data collation and analysis, intelligencesharing and coordinated operations on a national scale. Let’s also give the NIA more powers, such as the FBI enjoys in the US. 
    
If the US has successfully scotched terror bids since 9/11, it’s because its political leaders and crime-busters concentrate on fighting the enemy instead of one another. We need the same focus. For millions of Indians who could be targets, it’s a question of life and death.

Wednesday, February 20, 2013

India’s Ballooning Child Rights Crisis

As testified by several national and international reports and surveys of child rights organisations and development agencies, India has arguably the worst child neglect and abuse record worldwide. 

• January 18. Two-year-old Falak was admitted into the trauma centre of AIIMS, New Delhi. Abandoned by her sex worker mother, she was battered, beaten and left for dead. Two months later, on March 19 she succumbed to her injuries.
• February 21. Six-year-old Pankaj, a kindergartener of Rajkul Senior School in Haryana’s Karnal district, was locked in a bathroom for several hours by his school teacher for not completing his homework. He fell ill and died after 55 days.
• March 29. Thirteen-year-old Munni was rescued by an NGO from the home of an affluent doctor couple in Delhi. Munni was beaten, denied food and made to work 18 hours per day.
• April 11. Two-month-old Hina’s short life was cruelly snuffed out by her father who beat and burnt her with cigarette butts because of his aversion for girl children.

These shocking cases of child abuse which have attracted 60-point newspaper headlines and prime time television coverage for their unbelievable cruelty and brutality over the past four months, have dramatically highlighted the gross institutional, societal and parental neglect of children in India. But these horror stories are just the tip of the iceberg. Child neglect and abuse is widespread in this nation of 1.2 billion people, of whom 480 million are children below 18 years. As testified by several national and international reports and surveys of child rights organisations and development agencies, India has arguably the worst child neglect and abuse record worldwide.

The World Bank estimates that “about 49 percent of the world’s underweight children, 34 percent of the world’s stunted children and 46 percent of the world’s wasted children live in India”. A United Nations Children’s Fund (Unicef) report titled State of the World’s Children 2012 (SWC 2012), released on February 28, focusing on the well-being of “children in the urban world”, estimates that over 40 percent of all children (including rural children) in India suffer chronic poverty and deprivation. SWC 2012 reveals that the under-five mortality rate is 63 per 1,000 births, 43 percent of children are underweight, and 48 percent are moderately to severely stunted, and only 49 percent of girl children and 59 percent boys complete secondary school (see box, p. 88). A global survey of 200 nations, SWC 2012 identifies lack of access to health; water, sanitation and hygiene; education and protection as prime indicators of child rights deprivation.

Damning as is SWC 2012, data collected from domestic sources reveal that ground realities are worse. According to the 2010-11 report of the Union ministry of women and child development, 170 million of India’s children are in need of care and protection, 1.8 million die before age five, a shocking 79 percent of children are anaemic at birth, 50.76 percent suffer sexual abuse, 68.99 percent physical abuse, 65 percent of school-going children suffer corporal punishment, and 29 percent never attend school. Despite the Union government having signed several international child rights and protection treaties such as the United Nations Convention on the Rights of the Child (1989) and the United Nations Millennium Declaration (2000), which set out several millennium development goals including primary education for all by 2015 and reducing under-five mortality by two-thirds, neither the Central nor state governments have made much effort to promote or enforce child rights.

Given this government and societal indifference and apathy, the country’s growing minority of child rights activists are unsurprised by the horror statistics churned out annually by international development agencies and government organisations, with no perceptible impact upon the stony conscience of the establishment or the middle and elite classes.

“Children don’t get sufficient attention in our system. This is evidenced by attitudes, interpret-ations and lack of progress on child-friendly initiatives across the board. Ours is a child-unfriendly society where every day millions of children negotiate starvation, abandonment, exploitation, and injury, and are routinely deprived of shelter, nutrition, health, education and protection. Children have to become the centre of our national development strategy and their rights given top priority. For this to happen, really big systemic changes are required within government and larger society,” says Shantha Sinha, chairperson of the National Commission for Protection of Child Rights (NCPCR). Promoted in March 2007, NCPCR’s mandate is to “ensure that all laws, policies, progra-mmes, and administrative mechanisms are in consonance with the child rights perspective as enshrined in the Constitution of India and also the UN Convention on the Rights of the Child”.

In India’s obstinately patriarchal society, abuse of children particularly girls, begins in the womb. According to estimates, eight million female foetuses have been aborted between 2001-2011, and the under-five mortality rate is 40 percent higher for girls than boys. The incidence of female foeticide cuts across all religions, castes and classes. “Delhi’s afflu-ent southern colonies apparently report more female foeticide through selective sex testing than rural Bihar,” says a recent editorial in Times of India (April 19). Even as thousands of female foeticide and infanticide cases are being reported each year, a thriving trafficking industry has sprung up to supply brides to men in the states of Gujarat, Punjab and Haryana where the female-male ratio has plummeted to 877:1000 (national average 940:1000).

“Several studies have revealed that the wealthy and educated lead in sex determination tests and subsequent foetal eliminations. Punjab and Gujarat lead the rest of India in their preference for boys, with the rest of India foll-owing closely behind. The preference for male children is pervasive, cutting across castes, cultures, religions and states. In the past decade we have lost eight million girls and it is estimated that three million more will be killed during the next decade. Sex determination tests and foeticide have transformed into a lucrative Rs.1,000 crore industry for avaricious medicos. The first step towards tackling female foeticide is for the state to crack down and severely punish all those who facilitate, aid and abet this heinous crime,” says Dr. Sabu George, a Delhi-based social activist who has been waging a relentless battle against female foeticide for over 25 years.

For an overwhelming number of girl children who survive foeticide, and all other children who live beyond their first birthday, a life of hunger and deprivation marks their early childhood years. According to the Hunger Malnutrition Report released in early January, 42 percent of all children in the country suffer severe malnutrition, prompting prime minister Manmohan Singh to describe the situation as a “national shame” and set up a Prime Minister’s National Council on Nutrition Challenges. On the recommendations of the national council, in Union Budget 2012-13 the allocation for the Central government’s Integrated Child Devel-opment Services (ICDS) — a national programme which provides healthcare to preschool children, and pregnant and nursing women through a package of services including supplementary nutrition, immunisation, health check-ups, referral services and health education through a network of 1.2 million anganwadis (crèches) country-wide — was hiked by 58 percent to Rs.15,800 crore.

Yet even the 58 percent higher allocation is woefully inadequate to fulfill the nutritional needs of the 50 million children between ages three-five enroled in 1.2 million anganwadis across the country. For instance, a recent report relating to Karnataka has revealed that under ICDS, a mere Rs.4 per child per day is allocated to fulfill her food and nutrition needs. Moreover 36 years after it was launched, the programme merely covers 50 million of India’s estimated 160 million children between ages 0-6 years, with states with the highest incidence of child malnutrition — Rajasthan, Uttar Pradesh, Bihar, Odisha and Madhya Pradesh — ranked in the bottom ten in terms of ICDS coverage.

“Even the substantially increased ICDS allocation of Rs.15,800 crore is inadequate to provide cooked, healthy and wholesome food and nutrition to the 50 million children accomm-odated in the country’s 1.2 million anganwadis, let alone the millions of children excluded from them. There’s a big danger that underfed infants will grow into stunted children incapable of learning. Moreover, no provision has been made for providing early childhood education in angan-wadis. My submission is that anganwadis must also offer preschool education to children to reap the socio-economic benefits of more mean years of schooling and higher adult literacy. If our children are not fed well and given early childhood education, India is staring at a bleak future in the new millennium,” Reeta Sonawat, author and professor of human resources development at SNDT Women’s University, Mumbai, told EducationWorld barely a month ago.

Clinching evidence of Indian society’s neglect of children’s rights is most tellingly indicated by the obstinate persistence of child labour in the country, whose number is variously 14-80 million — it’s difficult to zero in on the right number as thousands of children are “hidden workers” employed in homes or in the underground economy. Although child labour falls within the purview of the Child Labour (Prohibition and Regul-ation) Act, 1986 which classifies industry sectors as hazardous, based on varied physical work environments, it regulates rather than prohibits child labour.

“The Child Labour Act, 1986 is flawed legislation. It should be immediately repealed and in its place a new law must be enacted by Parliament prohibiting all forms of child labour, mandating stringent punishment for violators. We also need to implement the Right to Education Act, 2009 in letter and spirit, and simultaneously initiate reforms to drastically improve the quality of public education. Poor parents prefer to send their children to work because little learning happens in government schools characterised by pathetic infra-structure and absentee teachers. A broad social and political consensus is urgently needed to end all forms of child labour,” says S. Thomas Jeyaraj, director, Centre for Child Rights and Development (CCRD), Tamil Nadu.

Denied nutrition, early child-hood education, care and protection, and condemned to low-quality government primary schools, or forced to work in bleak and hostile environments, it’s unsurprising that an increasing number of children are resorting to crime and violence. To children forced into conflict with the law, the broken down juvenile justice system offers little hope of counseling or rehabilitation. The Juvenile Justice (Care and Protection of Children) Act, 2000 does not make it mandatory for state governments to establish shelter homes. Both s.34 and s.37 of the Act enjoin that state governments “may” establish children’s homes. This discretion given to state governments to set up “or not build” behaviour correction centres for delinquent or abused children is too wide. Little wonder that the number of such correctional centres or homes in the states is completely inadequate to provide care to children “in conflict with the law” and “in need of care and protection”.

According to the Child Rights Trust, a Bangalore-based NGO, currently 200,000 juveniles (below age 18) are lodged in 5,000 observation homes countrywide. Those convicted are later sent to juvenile justice homes (aka borstals), where they are lodged for reform and rehabilitation. On the statute book, the laws relating to caring for, counseling and rehabilitating young offenders, are unexceptionable. Under s.14 of the Juvenile Justice Act, 2000, cases filed against young offenders “shall be completed within a period of four months from the date of commen-cement”, with exceptions if the “period is extended by the board having regard to the circumstances of the case and in special cases after recording the reasons in writing for such extension”. However, this exception provision has permitted most cases to languish in the system much beyond four months — some-times for years — for petty reasons such as transfer of the principal magistrate, lack of case workers, charge-sheets not being filed on time, procrastination of lawyers, dearth of probation officers, and paucity of juvenile justice board (JJB) members.

“The juvenile justice system in India is in a shambles. State governments have neither the infrastructure nor resources required to implement it. Though the provisions of the Juvenile Justice Act are unexceptionable, the institutions required to implement the Act — child welfare committees, juvenile justice boards, inspection committees, advisory boards, child protection units, special juvenile police units — have not been established in a majority of the states. This has resulted in delay in disposal of cases and denial of justice to thousands of children. The entire juvenile justice system needs a massive overhaul and innovative and bold solutions are required. For instance, law graduates could be employed for disposing minor cases such as petty thefts, rash driving, etc, and fast track courts could be set up and Lok Adalats asked to dispose pending cases,” says Asha Bajpai, professor of law and chair, Centre of Socio-Legal Studies and Human Rights, Tata Institute of Social Sciences, Mumbai.

Adds Vasudeva Sharma, director, Child Rights Trust and member of the Karnataka State Commission for Protection of Child Rights: “Unfort-unately lawyers, the police, politicians, JJBs, child welfare committees and judges themselves are not sufficiently familiar with the Juvenile Justice Act. The police especially are oblivious of its provisions; they do not even know there are homes that provide lodging to destitute, lost and runaway children, often taking them straight to orphanages. Ignorance, indifference and mismanagement have resulted in the complete breakdown of the juvenile justice system in India.”

Against this backdrop of institutional apathy towards juvenile justice, care and protection, it’s unsurprising that the much too few shelters for juveniles are in a state of complete disarray. The country’s 5,000-plus Dickensian government-run shelters are beset with corruption, overcrowding, rotten food and insanitary conditions. Intended to rehabilitate young offenders and equip them for productive and self-sufficient adult lives, on the contrary these institutions drag them down, trapping them in the quagmire of failure, violence, and substance abuse. A majority of the homes don’t offer any formal or non-formal education, vocational training or medical facilities. EducationWorld correspondents plowed through an obstinate bureaucracy to visit state government-run homes in Bangalore, Kolkata, Chennai and Mumbai to present eyewitness reports.

In Bangalore, your correspondent posing as a social worker visited the Children’s Home for Boys and Girls on Dr. Marie Gowda Road, which houses 100 children between ages six-18 categorised as orphans, destitutes and runaways. At the time of my visit, in a dimly-lit hall children of all ages had gathered to watch CDs featuring folk tales “with morals”. Probation officer Karakurappa admitted to no formal education being provided in the home although a “full-time teacher” had been appointed to “teach the alphabet and numbers, and conduct storytelling, games and other activities”. An inspection of the premises revealed that the medical clinic was bereft of doctor, nurse, or medicines; dormitories had no beds and the bathrooms were under lock and key “from morning until late night to prevent children from smoking, doing drugs, etc”.

Likewise EW’s Kolkata correspondent Baishali Mukherjee who visited the Government Home for Boys in Ariadaha in the eastern port city, also reported abysmal living conditions, though some effort has been made to provide vocational education and training. Three in-house teachers deliver training in tailoring to 14 inmates aged between 14-18 years. According to the home’s superintendent Atunu Seal, there’s been a rising demand from boys for vocational training in mobile phones and electronic goods repair. “Boys are naturally more interested in learning these skills as opposed to tailoring. But most juvenile homes in the state have been offering tailoring, embroidery and poultry-rearing for decades, and there’s no plan to replace these outdated courses with new, relevant progra-mmes,” he says. West Bengal (pop. 91.2 million) has a mere seven observation homes statewide, and is one of the states yet to establish a State Commission for Protection of Child Rights.

In Chennai’s largest observation home, located on the premises of the directorate of social defence on Purasawalkam High Road, which currently houses 37 boys between the ages of six-18, the situation is slightly better. Besides tailoring, VET progr-ammes on offer include videography, computer science, book binding, carpentry and baking. The home has an in-house counselor who visits thrice a week besides guest counselors from NGOs. Meenakshi Rajagopalan, addi-tional secretary, department of social defence, and principal secretary, ICDS, Tamil Nadu, informed EW correspondent Hemalatha Raghupathi that the AIADMK government has drawn up big plans to improve education and training facilities in all juvenile homes statewide: “We plan to improve infrastructure facilities in government observation homes to make them child-friendly, and introduce several new job-oriented vocational training progra-mmes,” she says.

Vidya Shankar, the Chennai-based founder of Relief Foundation and former chairperson of the juvenile justice board, Tamil Nadu, accepts that  government-run juvenile homes in this southern state have better conditions than elsewhere. However, she believes a lot more needs to be done to ensure rehabilitation and protection of children in conflict with the law in the state. “Tamil Nadu does not have a State Commission for Protection of Child Rights. The state government believes this role is already being discharged by child welfare committees in each district. Unfortunately, this is not working and a state commission with powers to prosecute has to be set up immediately,” says Shankar.

In Mumbai, the commercial capital of the country, which hosts an estimated 100,000-250,000 street children, the well-known Umerkhadi Children’s Home in Dongri is overcrowded, insanitary and under-financed. The largest remand home in Asia for runaway children from India, Bangladesh, Myanmar and Nepal, it accommodates a mere 238 boys aged between six-18 years. “The government provides only Rs.635 per child per month — completely inadequate to provide food, clothing, education and medical aid. We need at least Rs.1,500 per child per month. We are afloat only because of the help provided by generous sponsors and donors,” S.A. Jadhav, the superintendent of the home informed EW correspondent Kalpana Rangan.

Undoubtedly the major cause of the nation’s dysfunctional juvenile justice system is inadequacy of funding. In the Union Budget 2012-13, a mere Rs.18,500 crore has been allocated to the ministry of women and child development. Of this, Rs.15,800 crore is for ICDS, Rs.2,250 crore for miscellaneous schemes, leaving a mere Rs.400 crore for integrated child protection services, including maintenance of the juvenile justice system. Given that the country’s child population is 480 million, of whom an estimated 5 percent are juvenile offenders, the outlay is grossly inadequate. Budgetary allocations of the country’s 28 state governments for juvenile justice and child protection are equally miserly. For instance in Karnataka, the state government has allocated a mere Rs.5.2 crore in Budget 2011-12 for juvenile justice.

Given the hand-to-mouth existence of most remand homes across the country, primary education is the biggest casualty. None of the juvenile homes offer formal elementary school education (classes I-VIII) to their child inmates. Arlene Manoharan, head of the juvenile justice programme at the Centre for Child and the Law of the National Law School of India University, Bangalore, believes this is a denial of their right to education guaranteed under the Constitution. “The Centre for Child and the Law has made a proposal to the law ministry to amend the Juvenile Justice Act to include the right to education, which is now mandatory for all children in the six-14 age group under the Right to Free and Compulsory Education Act, 2009. Moreover, we are legally obliged to adhere to the United Nations Convention on the Rights of the Child, 1989, with particular reference to Article 2, i.e principle of non- discrimination and Article 40.4 which mandates provision of education for children in conflict with the law,” says Manoharan.

Child rights proponents and activists are unanimous that of the many rights denied to India’s 480 million children, denial of acceptable quality education is the most disabling as it restricts upward mobility. After several years of debating the right to primary education for every child under 14 years, in August 2009 Parliament enacted the Right to Education Act (RTE) which makes it compulsory for the State (Central, state and local governments) to provide free and compulsory education to all children between ages six-14.

However, two years after it became law in April 2010, the RTE Act is a non-starter. A report released on April 3 by the RTE Forum, a coalition of 10,000 NGOs, reveals that 95.2 percent of schools in the country are not compliant with the infrastructure and teacher-pupil norms stipulated by the Act. One in ten schools lacks drinking water facilities, 40 percent schools lack toilets and only one in five schools has a computer. Moreover, 93 percent of teacher candidates failed the National Teacher Eligibility Test conducted by CBSE and 670,000 teachers are professionally unqualified or untrained. Add to this the inadeq-uacy of funds with an estimated Rs.182,000 crore required to implement the RTE Act over five years, and the Centre and state governments fighting over how to raise and share this expenditure.

V.P. Niranjanaradhya, programme head of universalisation of equitable quality education programme, Centre for Child and the Law, National Law School of India University, Bangalore, believes more needs to be done to reform the iniquitous Indian school education system which condemns children from economically weaker sections of society to under-performing government schools. “Segregation within the Indian school system is complex — there are schools affiliated with international boards for children of the elite; schools affiliated with the CISCE for progeny of the upper middle class; schools affiliated with the CBSE for children of bureaucrats and government officials; private English-medium schools recognised by the state boards cater to children of middle and lower middle class households; and finally schools run by state governments and local bodies are for children of the poor, marginalised and subaltern communities. It is shocking to see how children have been divided and fragmented on the basis of their background, class and caste. To enable all children to receive their right to equitable quality education, this segregation must end,” he says.

The obvious solution to ending this divide is for government to raise its public schools to private school standards. But this requires the Central and state governments to sharply increase education outlays and improve efficiency of education expenditure. Way back in 1996, the Kothari Commis-sion had strongly recommended an annual outlay (Centre plus states) equivalent to 6 percent of GDP for education. But for the past 65 years since independence, despite India hosting the world’s largest child population, outlays for education have seldom exceeded 4 percent of GDP. Ditto, government(s) expenditure on health has never exceeded 1.5 percent of GDP.

“We cannot introduce new initiatives or implement existing programmes because we invest only 0.03 percent of our Central budget on child care and protection. There are many wrongs that need to be corrected. First, government must sharply increase its investment in child care and protection, education and health. Second, institutions and people implementing child welfare programmes must be held publicly accountable for outcomes. And at a broader level, Indian society must develop zero tolerance towards all forms of child abuse and exploitation,” says Bharti Ali, co-director, HAQ: Centre for Child Rights, a Delhi-based NGO.

Arlene Manoharan of the National Law School also advocates a larger role for society and the citizenry to press-urise government and institutions to act swiftly and decisively to protect children’s rights. “There is a lack of ownership of children in our society — a sense of ‘it’s not my child so why must I care’. The ever-growing number of child abuse and neglect cases in India would have sparked revolutions in other nations, but here they just disappear into statistics. There has to be an attitudinal and mindset change within society, especially the middle class which must speak up for the welfare of all children, not just their own. Civil society must pressurise people’s representatives for quick, efficient and transparent action with social audits ensuring outcomes,” says Manoharan.

The dramatic increase in child abuse cases which have been reported over the past four months are storm warning signals that the nation is confronting a crisis of huge proportions. The open and continuous violation of children’s rights requires the Central and state governments and civil society to trans-form into vigilant watchdogs protecting children. Failure of the State and non-State actors to discharge this moral and ethical duty will have consequences too dreadful to contemplate.

Tuesday, February 05, 2013

Vishwaroopam To Kadal: When Did We Become So Intolerant?


In an earlier time, when political India was a lot more innocent – despite Indira Gandhi’s Emergency excesses and other such political perversions – Bollywood directors oftentimes took it upon themselves to package ‘social messages’ into their cinematic offerings. Their scripts may have been packed to the gills with masala twists and turns and formulaic elements that are calculated to maximise cinemagoers’ vicarious pleasures, but the directors endeavoured valiantly to appear to be ‘socially responsible’ in the subliminal message they slipped in. The films themselves were a kind of sugar coating to the bitter pill that they felt had to be administered to Indian masses.
 
In January 1977, when Indira Gandhi’s Emergency was still in force, was released Manmohan Desai’s iconic film Amar, Akbar, Anthony, with its syrupy-sweet message of ‘secularism’. It milked what had by then become one of the enduring cinematic cliches of Bollywood – three brothers, separated when they were young by the quirk of fate – who find themselves abandoned at the foot of a Gandhi statue, much like the boys in the photograph at left. In the film, the three boys grow up under the influence of different faiths – the first as a Hindu, the second as a Muslim, the third as a Christian, and, after much singing, romancing and villianous action (and coincidences that happen only in films), are reunited.

With an easily digestible, entertaining storyline that advanced the merits of mutual respect for all religions, the film was enormously well received, not least because of the star value of its lead actors. The masses may have come for some time-pass entertainment, but when they left the movie halls, they were brimming with treacly, feel-good sentiments that reinforced their pride in their respective faiths without diminishing their respect for others’.
But look what a generation of politicking with religion, an abuse of the concept of secularism, and a widespread slide into intolerance have done to Amar, Akbar and Anthony.

Today, each of those brothers-separated-at-birth has become an excessively prickly, easily offended specimen nursing a wounded pride that reeks of latent insecurity. Each of them has yielded space in his mind to what may have earlier been merely a stray thought on the fringe – to the point where the outlier sentiment has come to colonise the mind.

Today’s Amar, for instance, likely sees Hindu right-wing groups that disrupt fashion shows on the grounds that they “denigrated Hindu gods and goddesses” as defenders of their faith. According to this report, the Kingfisher Ultra Vizag Fashion Week, organised in Visakhapatnam, had to be cancelled on Sunday following a complaint from a local VHP leader that the models had had pictures of Ganesh and Lakshmi on their “skimpy” clothes. Police said they had booked a case against the organisers on the charge that they had deliberate and maliciously intended to “outrage religions feelings.”

Elsewhere, in Mangalore, the self-appointed vigilante force of the Durga Vahini, the women’s wing of the RSS, targeted young women who were smoking and drinking at a restaurant, ostensibly on the grounds that they were an affront to “Indian culture”. Police intervened to ease the tension, although no crime was committed.

Likewise, today’s Akbar too is touched to the quick. He is offended by everything from a slick spy thriller from Kamal Haasan to author Salman Rushdie’s participation in a literary festival in Kolkata to an all-girl rock band in Kashmir. And in every case, he will intimidate governments into capitulation merely on the threat of disrupting law and order.

It’s true, of course, that at least in one case – in Kashmir – Chief Minister Omar Abdullah has, somewhat rarely for a politician in power, given public support to the intimidated group and dismissed those calling for a ban on the all-girl rock band as “morons”. But, as this editorial points out, Omar Abdullah’s influence doesn’t extend beyond the Twitter world into the real world; on the ground, the group, Pragaash, has not been reassured by his expression of support and the band members’ families feel sufficiently intimidated to force the girls to disband the group.

And what of Anthony? When his separated-at-birth brothers are so prickly, how can he be immune? After all, it’s a congenital disease that afflicts the entire family. So, Anthony today is offended by Mani Ratnam’s latest cinematic offering Kadal. And much like the extra-judicial, extra-constitutional authority wielded by Muslim groups in Tamil Nadu to get Kamal Haasan to excise seven minutes of his film Vishwaroopam – Anthony now wants some scenes deleted from Kadal.

According to this report, the Indian Christian Democratic Party had filed a complaint with the police alleging that Mani Ratnam’s film had “objectionable scenes” referring to Christianity, which it wants deleted. If the police failed to act on their complaint, the party warned of “intensified protests.”

The report adds: Christudas, a representative of the organisation, told reporters that the filmmaker had hurt the sentiments of the people belonging to the Christian community. “We have demanded that the director remove scenes which hurt sentiments of the Christian community. They should take action against the director if the scenes are not immediately removed,” he said.

So, if there’s one thing that unites Amar, Akbar and Anthony in 2013, it isn’t any pride in a shared cultural heritage, but a prickliness about their own faith that sees imagined slights everywhere and in every action. And, as often in such cases where the voice of reason has been stilled, it manifests itself in a muscular assertion of religious identity and in brutish bans on anything that is deemed “offensive”.

All this can be directly traced to the failure of successive governments over the decades to conduct themselves in the true spirit that resonated with the ‘secular’ siblings of 1977. Instead, over time, governments have perverted the notion of secularism by pandering to religious sentiments – first on one side, then on the other – and effectively whittled their own authority to the point where governments can be held to ransom by even the most inconsequential fringe groups.

Today’s Amar, Akbar and Anthony are tearing away at each other’s souls. And, sadly, this isn’t a Bollywood film that ends after three hours.

Thursday, January 31, 2013

Smaller States Will Address Governance Problems: Guha On Telengana

Advocates for separate states in India are often dismissed as nation breakers who are looking to partition the country for political gains. But have we been ignoring the aspect of state formation which allows for better administration of people who may not be receiving sufficient representation politically?
 
In a highly readable editorial in the Hindu, writer-historian Ramchandra Guha points out that the demand for formation of a separate state of Andhra Pradesh made as far back as 1914, only to be opposed; it was made again in 1952 by veteran Congressman Potti Sriramulu, rejected initially and then quickly formed once he died.
 
The historian points out that much like the debate against Telangana presently, the Madras presidency has strongly opposed the formation of Andhra Pradesh in 1914 and Nehru in 1952 arguing that the partition of the existing states could only hamper the progress of the new state.
 
However, arguing in favour of the formation of Telangana and other smaller states, Guha writes: After 65 testing years of independence, there need no longer be any fear about the unity of India. The country is not about to Balkanise, nor is it about to become a dictatorship. The real problems in India today have to do with the quality of governance. Smaller states may be one way to address this problem.
 
A study by India Today also reveals that economically, Andhra Pradesh and Telangana wouldn’t collapse if they are set up and in fact the GDP growth in both regions is almost equal. As Firspost pointed out earlier, the status of Hyderabad may be a stumbling block but the formation of a new state might not be as violent as opponents to it may suggest.
 
Guha’s argument in favour of forming smaller states has perhaps been borne out by the formation of Jharkhand, Uttarakhand and Chhattisgarh from bigger states which has allowed better administration of areas that were hitherto ignored by a big brother state government.
 
None of the states’ economies floundered despite naysayers and while Chhattisgarh and Jharkhand may continue to battle insurgency movements in the form of Naxalism, it was something the states inherited from the parent states. If anything the partitions have helped the states create separate policy based on local realities and even in implementation of central government schemes like the PDS, Chhattisgarh is help up as an example where the system can work in favour of the poor.
 
The states haven’t sparked off separatist movements nor have they hurt the national fabric of the country. If anything they have allowed people living in those states to have a political voice that is more audible and isn’t lost in the din of a bigger state.
 
Advocates for new states, like a separate Gorkhaland and Vidarbha, are bound to be enthused by the formation of a Telangana and it will only bolster their argument, possibly making their voices louder. Is it time to start listening to them rather than dismissing them outright? Or is it wrong to dismiss the linguistic formation of states as an “oh so 50′s attitude” too quickly?

Tuesday, January 29, 2013

Editorial: Telangana Conundrum

Devolution of powers and second States Reorganisation Commission needed at this hour.

With Union home minister Sushilkumar Shinde’s month-long deadline for a decision on Telangana expiring, the separate statehood demand has reached a critical point. Having previously promised a Telangana state – to be carved out of Andhra Pradesh – the Congress-led dispensation at the Centre is caught between a rock and a hard place. There is no denying that the Congress’s electoral success over the last two general elections was in large part bolstered by its performance in Andhra. Hence, splitting up the state was never going to be an easy decision. Even the Justice Srikrishna committee set up to study the statehood demand listed six options to deal with the vexed issue. 
    
The Congress’s current political arithmetic in Andhra is tricky. If it doesn’t grant Telangana, it could be politically wiped out in this region. On the other hand, the rise of Jaganmohan Reddy and his YSR Congress will anyway hit the party in the other Andhra regions – Rayalaseema and coastal Andhra. It is not surprising then that the Congress leadership is slowly moving towards the statehood option. The logic being that granting Telangana would at least hold the party in good stead here. However, the creation of a Telangana state would also embolden other statehood demands across the country. From Gorkhaland in West Bengal to Vidarbha in Maharashtra the call for smaller states will only grow louder, stoking Telangana-like agitations elsewhere. 
    
One solution to the problem could be greater devolution of administrative powers to local bodies. Apart for cultural and historical factors, one of the main grievances driving the Telangana movement is the overall lack of development in this region. Granting greater autonomy and empowering local bodies is one way to ensure that the fruits of development get evenly distributed, and satiate regional aspirations. That said, given the plethora of statehood demands, there is also an urgent need to form another States Reorganisation Commission (SRC). 
    
In 1956, the first SRC had reorganised states along linguistic lines. However, more than five decades later, the idea of linguistic identity forming the basis of statehood has become outdated. Today the demand for smaller states is increasingly driven by socio-economic aspirations. A second SRC would do well to study these factors and pronounce its verdict on the viability of the statehood demands. This would also guard against fringe movements holding the Centre and the idea of India to ransom.

Friday, January 11, 2013

EDITORIAL: Trouble On The LoC


The need of the hour is a multilevel engagement between India and Pakistan


The gravity of the two incidents that took place along the Line of Control earlier this week must neither be seen as a localised affair of trivial significance nor blown out of proportion as a prelude to a major escalation of tensions between the two countries. True to form, both sides have given contradictory versions of what happened on January 6 – when a Pakistani soldier was killed during an alleged Indian raid on a Pakistani army post in the Uri sector – and on January 8 – when two Indian soldiers were killed and two others injured as Indian and Pakistani troops exchanged fire at an Indian army post located near Mendhar on the Indian side of the LoC. Such incidents do occur every now and then but both sides take care not to allow matters to spin out of control. 
    

That would have been the case this time too except that the incident at Mendhar had a macabre twist to it: the body of one of the Indian soldiers killed had been decapitated. The Pakistanis have of course promptly denied that this was their handiwork. But their troops and the terrorists some elements of the Pakistani establishment support have committed similar gruesome acts in the past. Provocations of this nature naturally inflame Indian public opinion. The defence ministry has, quite appropriately, condemned the latest violation of the ceasefire line. But the need of the hour is clearly to go beyond the blame game to explore ways and means to avoid such incidents in the future. 
    

In this regard, it is imperative for both to engage with one another at various levels: political and diplomatic, military and intelligence. At present, a hotline exists between the DGMOs of the two countries. But that is clearly not enough. A wider dialogue can, at the very least, check avoidable misunderstandings. It could of course achieve much more. New Delhi would surely want to know, for example, if the much-advertised shift in the Pakistani army’s strategic thinking – one that focusses on internal threats to that country’s security and not on India – is for real. A litmus test would be the swift conviction of alleged plotters of the terror attacks in Mumbai. 
    

Meanwhile, exchange visits by scholars and artistes, businessmen and pilgrims can help create, as the Aman Ki Asha experience attests, an atmosphere that is conducive to the resolution of some of the less intractable issues bedevilling India-Pakistan ties and, in the bargain, expand the peace constituency in both countries.

Saturday, April 14, 2012

Risky Business: Are Teaser Rates for Home Loans Pushing Real Estate to the Edge?

At the Indian Banking Conclave (Bancon) in Mumbai on January 12, Reserve Bank of India (RBI) deputy governor Usha Thorat warned against what she considers risky mortgage lending practices. "In the area of housing loans, teaser rates are increasingly being offered, which is a cause for concern," she said. "I hope banks are ensuring that borrowers are well aware of the implications of such rates and the appraisal takes into account the repaying capacity of the borrowers when the rates become normal."

Teaser rates were introduced by banks last year to boost demand for housing finance in a slowing economy. The first off the block was the public sector State Bank of India (SBI) with its Easy Home Loan. Launched in January 2009, when home loans were on offer at interest rates between 8.5% and 11% depending on the amount and the tenor, SBI's rate was 8% for the first year and 8.5% for the next two years. After three years, the terms are highly confusing. According to SBI, the "interest rate after three years may be fixed or floating as per the borrower's choice at the time of sanction. If the floating rate option is chosen, then the rate will be 2.75% below SBAR. If fixed rate option is chosen, then the rate will be 1.25% below SBAR prevailing on the third anniversary date from the date of first disbursement, and shall have a reset frequency of five years from the third anniversary date of the loan. Fixed interest rate shall be subject to [a] force majeure clause."

"SBAR" refers to the State Bank Advance Rate or the Benchmark Prime Lending Rate. And what is the Prime Lending Rate? Beginning June 29, 2009, it was revised to 11.75% per annum; it depends on the RBI's rate and other factors. In other words, the borrowers' monthly payments or equated monthly installments (EMI) three years from now will depend on the SBAR at that time. Little wonder borrowers are befuddled, regardless of whether they opt for fixed or adjustable rate mortgages.

"It is partially correct to state that loan terms are not fully explained to the borrowers," says Sudip Bandyopadhyay, group president of Spice Finance. "It is important to be transparent while providing loans. This does not happen in case of teaser loans." But even the banks have no clue about how much the EMI could be. It depends on the interest rate, and banks are obviously not going to talk about worst-case scenarios.

"While documentation necessarily has to be detailed, there is a strong case to be made for banks being compulsorily required to provide simple illustrations on how floating rates are pegged and what the precise implications are," says Jayesh Desai, national director (infrastructure, real estate and government services), Ernst & Young (E&Y). But it would be unfair to say that banks are taking customers for a ride, he adds.

Thorat's statement about repaying capacity and clarity on obligations drew an immediate response from SBI chairman O.P. Bhatt. "I don't know what the RBI means by teaser loans," he told morning newspaper DNA at the same Bancon a few minutes after Thorat spoke. "It is not right to refer to the 8% home loan scheme as a teaser ... there are no hidden costs in these loans or any add-backs."

On February 5, RBI deputy governor K.C. Chakrabarty added another dimension to the debate. Talking to journalists at a seminar on infrastructure financing in Mumbai, he said: "We have no concern [about] teaser rates." In a lighter vein, he quipped: "What we are telling banks is that you should tease everyone. Don't just tease new customers; also tease old customers by charging a uniform rate for both."

Five days later, on February 10, the RBI stepped in with a circular "to make credit pricing more transparent." Beginning April 1, housing finance can no longer hide behind a wall of banker-speak. A new Base Rate system will be introduced. According to the circular, "Since transparency in the pricing of lending products has been a key objective, banks are required to exhibit the information on their Base Rate at all branches and also on their websites. Changes in the Base Rate should also be conveyed to the general public from time to time through appropriate channels. Banks are required to provide information on the actual minimum and maximum lending rates charged to major categories of borrowers to the Reserve Bank on a quarterly basis. Apart from transparency, banks should ensure that interest rates charged to customers in the above arrangement are non-discriminatory in nature."

High Interest Rate Regime
The problem for banks is that the country is moving to a high interest rate regime. The RBI credit policy announced on January 29 did not raise interest rates; it only increased the cash reserve ratio (CRR) by 75 basis points. This squeezes liquidity out of the system and helps temper inflation. But interest rates are bound to go up; the only question is when. Teaser loans could then become uneconomical for banks. To add its earlier customers to this category will make things worse. On the other hand, if interest rates rise too much, EMIs will climb, squeezing borrowers further.

Bankers say a bubble in India is unlikely for another reason. In the U.S., loans were given based on the value of the asset (the house). In India, the primary yardstick is the capacity of the borrower to repay. Besides, banks in India have been traditionally conservative about lending to individuals.
Despite the insistence of the banks that they check on borrowers' ability to repay, one key issue is how much they are paying for the home in the first place. At the height of the boom two years ago, a mid-market apartment in Mumbai had a price tag of $200,000. This tumbled to $100,000 (in some cases). Buyers who had $170,000 in bank loans suddenly found themselves with a lot of negative equity. For the banks, they would be making significant losses even if they were able to seize the property and sell it off.

Another issue most borrowers don't realize is that most loans have a Depreciation of Security clause. A buyer is expected to contribute 15% of the cost of the house or apartment -- $30,000 in the example given. If the price falls to $100,000, the bank will still finance only 85% of the current cost -- $85,000. The borrower will have to pay the shortfall ($85,000) to avoid being labelled a defaulter. (In loans where shares are pledged as collateral, this has happened very often. Banks ask borrowers to top up their securities when prices fall. If they fail to do so, they sell the shares.)

So why are banks offering teaser rates? The reason is they make money through lending, and today there are limited takers. Banks have too much money sloshing around in their coffers. According to RBI data, by November 20, 2009, personal loans were up a meager 0.7% for the year. Advances against fixed deposits were down 11.80%; on credit cards they were down 24.70%, and on consumer durables down 11.80%. The saving grace was education, where loans went up 31%, and housing, where loans increased by 7.30%. The increase in housing loans was essentially the effect of teaser rates, without which mortgage lending might have declined. Loans to the real estate sector were up 15.30%. This looks fine until compared with the 49% growth of the previous period.

In this environment, once SBI took the plunge, everybody followed suit. When SBI launched its Easy Home Loan, Deepak Parekh, chairman of Housing Development Finance Corporation (HDFC), the country's biggest mortgage lender, declared it a gimmick. A few months later, HDFC itself was offering a similar product. But Parekh continues to insist the teaser loan is "playing with fire." In an interview with business daily Mint, he said: "It's not a very healthy way of lending. It can create problems in the future, particularly if the rates shoot up. Today what we are saying is, if the rate is 8% or 8.25% for the first two years, the rate will be 9% afterwards and so the gap is very small. Suppose interest rates in India shoot up in the next three years, then what will happen? 

These are all floating rate loans and fixed only for the first two years. So, 8% interest could become 12% or even more. Then, the gap will be too much and it's a problem for the individual homeowners.... Financial innovation doesn't take time; if one does it, everyone copies. It can be done in 24 hours. Now most banks have this product." More than 20 banks and housing finance companies in India have launched some variant of the teaser loan.

Competing for Borrowers
"These loan programs have proved to be extremely popular, and any large bank would be interested in getting on such a winning bandwagon," says Anuj Puri, chairman and country head of Jones Lang LaSalle Meghraj, a real estate services firm. "In the end, a successful business entity will not steer away from taking a leaf out of the competition's book." Adds Bandyopadhyay of Spice: "I guess competition forced HDFC to follow this route. They obviously did not want to lose customers."

"Banks as well as HDFC have always had variants of the teaser loan programs," says Desai of E&Y. "They always had floating loans, which were linked to prime lending rates, so you have had situations in the past, too, where interest rates start out low and then move up. Parekh's comment was probably linked to pricing loans initially below the cost of funds."

Business daily Business Standard agrees with Parekh's views about the risks of teaser rates. "Teaser rates are doubtful in themselves, but the experience of the recent global financial crisis makes them more so," the newspaper says in an editorial. "The U.S. sub-prime crisis, where defaults by a large number of home mortgage owners led to the collapse of the housing bubble, which in turn led to the overall financial crisis, was essentially a matter of those who could not afford to service a loan of a particular order for its entire life being lent funds. And this was facilitated by the offer of teaser rates which were to be reset at not-too-late a date, a provision that was part of the fine print which many borrowers initially ignored. With antecedents of this nature, teaser rates should not have been allowed (in India) in the first place. It is not clear why the regulators should have allowed this to happen even while sounding warnings that it is not a good thing. The banks' response, particularly that of SBI, is that it was awash with liquidity at the particular period when the practice was initiated and the stratagem has served its purpose. But this still leaves open the issue of quality of assets which will not be known unless the higher reset rates kick in."

Following the RBI's warnings, some banks have changed course. Two major banks, Canara Bank and Union Bank, have decided to end their teaser loan programs. Axis Bank has withdrawn the teaser loan program it had introduced as recently as January 6. Even Bhatt of SBI seems to have had second thoughts. "We will review the special home loan scheme sometime in March and see what kind of credit offtake has taken place, what kind of liquidity we have, what is the view on lending to various sectors and where we think the cost of funds is heading," he told the Business Standard Banking Round Table in early February.

Bhatt's concern is primarily the SBI's bottom line, not the borrowers' capacity to repay. Still, the two are linked because the quality of the bank's assets depends on the latter. "The points of contention are the short-term impact of low margins of teaser loans on bank balance sheets and the long-term impact on the quality of the loan books the banks build," says Bundeep Singh Rangar, chairman of IndusView, an advisory firm for multinational companies looking at business opportunities in India. "While the short-term pressure on margins is reflected in the debate between Bhatt and Parekh, the differences between SBI and the RBI stem from asset quality issues. The interest rates of such teaser loans automatically reset after the initial relief period. This resetting character of the interest rates is being compared to sub-prime mortgages in the U.S. The key difference, though, is that even these low rates are not being offered to unqualified buyers, only to people with predictable and documented incomes and repayment capacity." The consensus view is that there are dangers, but Indian banks have been much more careful. And the RBI should be able to head off the trend before banks get into serious problems.

Bubble Trouble?
Is a bubble building up in real estate prices? Opinions differ. "There is a recovery in certain pockets only," says Desai of E&Y. Agrees Rangar of IndusView: "The real estate industry is picking up, but slowly and unevenly." Bandyopadhyay of Spice, however, says that the prices of both commercial and residential properties have gone up significantly and they are close to their peaks. "The sharp increase in real estate prices during past six-eight months is definitely a cause of concern," he adds. "A calibrated approach needs to be taken by the regulator in consultation with the banks and the industry to slow down the pace, thereby ensuring more sustainable long-term growth."
The residential market is currently still largely end-user driven," says Puri of James Lang. "While there is a fresh complement of investors on the market as well, wholesale speculation such as we had seen in previous years is definitely not in evidence. It is speculators who create bubbles, not genuine investors." Adds Rangar of IndusView: "We don't believe there is any bubble in the Indian real estate sector."

Rating agency Fitch sees demand picking up but no dangers of overheating. "After a difficult period in early 2009, residential market demand picked up in the second half of 2009, as reflected by the absorption of new projects that were launched at a 25% to 30% discount versus prices during the previous peak in the second half of 2008," says a January 2010 report. "Developers reacted to the fall in demand by reducing prices and lowering unit sizes, and the focus shifted from high-value housing to the more mid-income affordable segment. Any significant increase in property prices by developers, and a tightening monetary policy, could have an adverse impact on future demand. With some recent launches already indicating an increase in residential prices, there is a risk that volumes may moderate if prices continue to appreciate." The commercial segment, says Fitch, continues to remain under pressure.

The sizzle is evident elsewhere. Nearly 20 real estate companies have lined up initial public offers (IPOs) totaling more than $6 billion. Some have already gone through and done remarkably well. During the boom of 2007, there were nine real estate IPOs. Today, only one of them has shares that trade above their offer price. Even if the homeowner has been a winner, investors in real estate stocks and speculators in property have been clear losers.