bhutan

By Jay Shankar May 4 (Bloomberg) — Avimukteshwaranand Saraswati stands on the banks of the Ganges, India’s holiest river , urging his fellow Hindu priests to oppose hydropower dams the nation needs to curb blackouts and drive economic growth. “Without electricity, you can survive. One can’t survive without water,” Saraswati tells a gathering of holy men in the Himalayan foothills where the Kumbha Mela , a Hindu festival that draws more than 50 million devotees, is entering its final days. “You cannot shackle the Ganges and call it development.” Opposition from Hindu groups helped halt two dams on tributaries of the Ganges in March and the government this month is set to decide whether to complete a barrage that’s part of a plan to add 15,600 megawatts of hydropower by 2012. The energy shortfall forces manufacturers including Tata Motors Ltd. and Bajaj Auto Ltd. , Nissan Motor Co. ’s Indian partner, to rely on back-up generators to build cars and bikes. “The power situation in India is a disaster,” said Pradeep Shrivastava , president of engineering at Pune-based Bajaj, which operates a motorbike factory in northern Uttarakhand state where the Ganges flows onto the Indian plains. “We are dependent on our internal generation.” The river also helps irrigate India’s largest wheat and second-biggest sugar producing state, Uttar Pradesh, while West Bengal, the last province before the Ganges flows into its delta in Bangladesh, is the nation’s No. 1 rice grower. The World Bank forecasts that demand for water in India will exceed available sources by 2050. ‘Faith and Culture’ Tata Motors, builder of the world’s cheapest car, maintains reserve power facilities at its factory in the state that has the capacity to build 250,000 Ace trucks and Nano cars annually, according to an e-mailed statement from the Mumbai-based company. The two dams in Uttarakhand, 125 miles from New Delhi, were scrapped on March 25 out of what Jairam Ramesh , the environment minister, said was “respect for sentiments of faith and culture” and possible ecological damage as the river level falls. There’s a new sensitivity in government to dams’ “environmental impact, and displacement and rehabilitation of people,” said Ashok Jaitly, director of the water resources division at New Delhi-based The Energy Resources Institute , which researches issues of sustainable development. SJVN Ltd., the state-owned operator of India’s largest hydropower plant, cited possible domestic and international disputes over water as a risk factor in its initial share sale. Nations that abut the Himalayas, the world’s highest mountain range and the source of 10 rivers providing water for 1.3 billion people, plan to build several hundred dams over 20 years, Samir Mehta, South Asia director of the Berkeley, California-based International Rivers pressure group, said. Add Capacity Projects in India, Pakistan, Nepal and Bhutan would add more than 50,000 megawatts to generating capacity, Mehta said, or half India’s projected 2017 power demand. Much of the electricity produced in Nepal and Bhutan will be exported south to fuel India’s economy, the world’s fastest-growing after China. “If you want to have a manufacturing base you need surplus power,” said V. Balakrishnan , chief financial officer of Infosys Technologies Ltd., India’s second-largest software exporter. “That is the main difference between India and China. India always has a deficit and tries to catch up.” India fell 42 percent short of its target to add 12,240 megawatts of generating capacity in 2009. Orders from the Power Ministry stopped work on the Loharinag-Pala dam across the Bhagirathi River in February last year. A panel appointed by minister Ramesh will report this month whether NTPC Ltd. , India’s biggest power producer, should be allowed to press on. “NTPC has said that the project will be closed for power generation for five months in a year,” Ramesh, who was the power minister from April 2008 to February 2009, told reporters in New Delhi on March 31. Summer Hiatus The panel will ask whether that summer hiatus — agreed earlier to ensure water levels didn’t dip so low that religious feelings were hurt — made the entire plant expendable, Ramesh said. Emails sent to Ramesh’s office seeking comment were not returned. NTPC declined to comment. A study of 208 large dams in India last year by New Delhi’s South Asia Network on Dams, Rivers and People , an organization that supports local communities, found that 89 percent were operating below capacity and half generated less than 50 percent of their planned power output, Himanshu Thakkar, the group’s founder, said in a phone interview. Reduced water flows, failed monsoons and siltation cause the shortfall, Thakkar said. Weak monsoons in 2009 reduced water levels in north Indian reservoirs and rivers, said U.N. Panjiar, secretary in the Ministry of Water Resources , a factor in lower power output. ‘Dying Slowly’ About 30 cities, 70 large towns and thousands of villages spew 1.3 billion liters of sewage into the Ganges every day, according to the WWF . About 260 million liters of industrial wastewater are discharged each year in the river’s basin, the group said in a report. That abuse riles Hindu worshipers, who revere the 1,565 mile-long (2,525 kilometer) Ganges, believing that bathing in its waters will wash off worldly sins. “The river is dying slowly and instead of water only stones and garbage remain,” said Geeta Gharola, 40, after emerging from the river, or Ganga Ma to the devout. “First Hindus had Ganga water to drink, then they started to have a bath,” saffron-robed priest Saraswati said in the town of Haridwar. “In the future they will say their prayers” while conjuring the river from memory. To contact the reporter on this story: Jay Shankar in Bangalore at jshankar1@bloomberg.net

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Priests’ Protests Over Dams Curtail Hydropower for Tata Motors, Bajaj Auto

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By Gaurav Singh Feb. 10 (Bloomberg) — Bharat Heavy Electricals Ltd. , India’s biggest power equipment maker, plans to double exports as expansions by rivals such as Larsen & Toubro Ltd. and Toshiba Corp. threaten a supply glut in its main market. The state-run company wants overseas sales to account for 15 percent of revenue by 2012 and is targeting orders from Central Asia, Africa, the Middle East and the Indian subcontinent, Chairman B. Prasada Rao said in an interview. “Manufacturing capacity could be a little more than what the market requires” in a few years, Rao, 56, said in his office at the company’s headquarters in New Delhi yesterday. “There will be pressure on companies to play well.” India’s plan to almost double electricity generation by 2017 has prompted Bharat Heavy to add capacity and attracted investments in equipment manufacturing from companies including Larsen, Toshiba and Alstom SA. Bharat Heavy’s sales growth has slowed for three straight quarters and has lagged behind the company’s target of a 25 percent annual increase. “The company clearly won’t like to have all its eggs in one basket,” Shruti Udeshi , an analyst with Finquest Securities Pvt., said by telephone from Mumbai. Bharat Heavy “will witness competition in the Indian market with new capacity coming up in the next couple of years.” Shares of Bharat Heavy have risen 68 percent in the past year compared with the 67 percent increase in the benchmark Sensitive Index . The stock rose 0.2 percent to close at 2,332.15 rupees in Mumbai yesterday. Orders in Hand Exports currently account for 8 percent of the company’s sales, Rao said. That compares with a 6.4 percent share in the financial year ended March 2009, according to data compiled by Bloomberg. The equipment maker said Feb. 8 it won an order to supply a hydroelectric plant to Bhutan, its biggest for generators that produce electricity from water. Bharat Heavy has in hand orders worth 1.34 trillion rupees ($28.6 billion) to supply equipment over the next three years. The New Delhi-based company is doubling its annual capacity to produce equipment capable of generating 20,000 megawatts by 2012. That compares with 23,763 megawatts of plants that started in the last three years. One megawatt is enough to power about 200 middle-class Indian homes. Toshiba , Japan’s largest supplier of nuclear reactors, plans to sell $400 million worth of power-generation equipment in India by 2015 in a joint venture with JSW Group. The venture plans to produce steam turbines and generators ranging in size from 500 megawatts to 1,000 megawatts, the two companies said in a Feb. 1 statement. Alstom Ventures Paris-based Alstom and its units won government approval last month to form two joint ventures with Bharat Forge Ltd. to manufacture power plant equipment and invest 70.5 million euros ($98 million). Mumbai-based Larsen expects to start producing equipment capable of generating 4,000 megawatts of electricity from this year, according to a company spokesman, who declined to be named because of internal rules. Indian utilities plan to add 78,700 megawatts of generation capacity in the five years to March 2012 and 100,000 megawatts in the following five, according to the country’s Power Ministry . Power producers have placed orders for more than half of the projects planned in the five years ending March 2017, according to Rakesh Nath, chairman of the Central Electricity Authority , the country’s utilities regulator. Bharat Heavy and Larsen also face competition from Chinese equipment makers such as Shanghai Electric Group Co. and Dongfang Electric Co. Shanghai Electric is supplying generators to three power projects being built by Reliance Power Ltd., controlled by billionaire Anil Ambani , the third-richest Indian. To contact the reporter on this story: Gaurav Singh in New Delhi at gsingh31@bloomberg.net .

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Bharat Heavy to Boost Exports as Rivals Larsen, Toshiba Expand in India

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Chip Conley: What Business Leaders Can Learn From Bhutan

February 2, 2010

Having spent the past 32 years in the Silicon Valley/Bay Area region, I guess I’ve grown accustomed to start-ups wreaking havoc in mature industries. Hewlett-Packard, Apple, Google, Facebook — they all were launched within a 15-mile radius of my alma mater, Stanford University, and they went on to revolutionize not just their industry, but they changed our relationship with technology and, frankly, in Facebook’s case, our relationships with each other. So, it’s no surprise that I’m fascinated with a little, almost-mythical country in the Himalayas that is revolutionizing how world leaders are looking at the definition of success. Like The Mouse That Roared (a popular book and film from the late 1950s about an imaginary, bucolic country situated between France and Switzerland that becomes the admiration of modern society when it declares war on the United States), Bhutan is getting the kind of attention an off-off-Broadway play gets when you know it’s destined to be a hit. In 1972, the 17-year old King of Bhutan asked the blasphemous question, “Why are we so focused on Gross Domestic Product? Why aren’t we more concerned with Gross National Happiness?” For nearly 40 years now, Bhutan has been reinventing itself based upon the premise that the ultimate public good a leader can provide his or her people isn’t material possessions, but instead it’s happiness or well-being. This “beginner’s mind” idea has found fertile ground in the 21st Century as more than 40 countries are now studying their own GNH (Gross National Happiness). Nicolas Sarkozy recently announced what some are calling a “joie de vivre index” in France based upon an 18-month study of two Nobel economists who recommended that the largest countries of the world end their obsession with GDP and consider some new intangible metrics. In essence, they’re suggested that GDP — which focuses exclusively on tangible production and consumption — no longer should be our sole definition of global success especially at a time when 64% of the world’s GDP now comes from the intangible service industry. In other words, GDP measures outputs which might have made sense in a more mechanized, industrial era. But, given the knowledge era we now live in, measuring those inputs that influence the output is a more holistic method of evaluating whether we’re creating sustainable success. This may seem abstract, but it’s extremely relevant to business leaders who have come to realize that a myopic focus purely on the bottom line can have the same effect as driving a car at full speed all the time without doing occasional maintenance and refueling. Here are three important lessons for business leaders to learn from Bhutan: (1) Leaders don’t create happiness for people. The Prime Minister of Bhutan told me his goal is “to create the conditions in which happiness can flourish.” Abraham Maslow once suggested business leaders “can set up the conditions so that peak experiences are more likely, or one can perversely set up the conditions so that they are less likely.” Great leaders create healthy habitats. From those healthy habitats sprout the outputs we’re looking for whether it is happy citizens or a profitable business. Silicon Valley has an eco-system that is primed for innovation, but as many regions of the world have learned, you can’t easily replicate the intangibles that create such a cultural habitat. So, first brainstorm with the leaders in your company about what cultural “conditions” would help your company flourish and what kinds of specific things you can do to create that habitat. (2) Leaders value and measure the intangible. The Bhutanese have created a science behind the art of happiness. They measure four (4) pillars, nine (9) key indicators, and 72 various metrics to help them understand whether they are creating fertile conditions for happiness. The Gallup organization has developed 12 questions that help leaders measure employee engagement like “At work, do you have the opportunity to do what you do best every day?” or “Does the mission/purpose of your company make you feel your job is important?” It’s time for leaders to distinguish between what they can easily count (“Are you being paid enough?”) with what employees most value. The intangibles of mission and meaning are powerful fuel for knowledge-driven industries, so find ways to measure these vital inputs. (3) Leaders are willing to deviate from the norm. Most world leaders didn’t take notice when the teenage King of Bhutan asked his impertinent questions about GDP. Those that did notice chuckled and chalked this idea of GNH up to “Buddhist economics.” But, if you’re a small country or a small company, your best strategy to compete with the big boys is to find a niche and own it. In my case when I started my company 23 years ago by purchasing an inner-city motel, I went after rock ‘n roll bands as our core customer, even though conventional hoteliers told me I was crazy to want these party animals. Yet this target customer was perfectly suited to my funky motel and this was an untapped market (bands) that was growing and recession-proof. Similarly, it took 30 years for the world to embrace Bhutan’s approach to GNH, yet this “happiness niche” has turned out to be much larger than the King of Bhutan ever imagined. Find a niche, embrace it wholly even if it’s unconventional, and deliver on your promise better than any of your competitors.

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India Bomb Explosions Kill Five, Wound 40 in Northeastern State of Assam

November 22, 2009

By Jay Shankar Nov. 22 (Bloomberg) — Five people were killed and about 40 others injured when two bombs, one strapped to a bicycle, exploded near a police station in India’s northeastern state of Assam , a government official said. “Both the explosions occurred at the same place,” Ashutosh Agnihotri, deputy commissioner of Nalbari district, where the explosions took place, said in a phone interview. People had gathered near the station after the first blast which was followed “within five to seven minutes” by the second explosion, killing five people, he said. The wounded include people with both minor and major injuries. Assam, which shares a border with Bhutan and Bangladesh , is home to several groups fighting for independence or autonomy, including the United Liberation Front of Asom. The groups say local people have not benefited from Assam’s resources, especially the state’s large tea estates and oil fields. No group claimed responsibility for the attack. Police suspect militants belonging to the United Liberation Front of Asom were behind the attack, The Press Trust of India reported without saying where it got the information. In April three blasts killed seven people and wounded 62 people in Assam. On March 31, an explosion in the state capital of Guwahati left one person dead and a dozen wounded. At least 89 people were killed and about 477 injured in nine serial bombings on Oct. 30 last year at various places in Assam. To contact the reporter on this story: Jay Shankar in Bangalore at jshankar1@bloomberg.net

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