26.10.2009

Finance & Economy

• Know what is 'reverse innovation'?
• It is the concept that is given a momentum by Jeffrey Immelt, the redoubtable CEO of GE.
• It is the flow of knowledge and products from emerging economies such as India to the developed world.
• A bit about global consumption patterns
• Currently the American consumer spends about $10 trillion and 40% of the global population (China and India) spends about $2.5 trillion. Over the next 10 years this number will change dramatically. Global CEOs are readying for this.
• Blue Revolution
• It refers to the convergence of policy and action to execute a quantum jump in the generation of energy. Just as green revolution is to agriculture, blue revolution is to energy.
• This is a term coined by Ravi Uppal, the MD of L&T Power. Given below are some snippets of info taken out from his article in today's ET.
• Our per capita consumption of about 700 kwhrs gives us the unenviable distinction of being in the league of 40 LDCs.
• The figures are revealing: global per capita consumption is about 2,600 kwhrs; developed nations enjoy a level between 10,000 and 20,000 kwhrs. China, whose total power generation capacity until mid-’70s was comparable with India’s, now boasts the world’s second largest power generation capacity — 700,000 MW. Its per capita consumption is currently around 2,000 kwhrs — three times as much as India’s, and set to surpass global averages by 2011.
• Often government agencies claim that India’s peak time power shortage is about 12%.
• Simple arithmetic tells us that if India were to match US energy consumption levels, our power generation capacity would need to grow to 3.6 million MW from the present level of a mere 175,000 MW.
• India’s present coal-based generation is about 120,000 MW, which needs about 350 million tonnes of coal from its own mines. This capacity will need to go up at least three times, i.e., up to 1.2 billion tonnes to realise our target of about 400,000 MW from coal alone.
• Germany and Spain draw over 25% of their generation capacity from wind alone.
• Energy conservation if implemented can certainly contribute equivalent to about 150,000 MW of power.
• Excise collections drop by 17%; cause for worry
• Excise mopup fell reportedly to Rs 8,180 crore in September 2009, while the collection in the April-September period slipped by 21% from the corresponding period last year to Rs 43,230 crore.
• Part of the decline in excise collections can be attributed to a cut in cenvat rate from 16% to 8% in the last financial by the government, as part of the stimulus measures to tide over the economic downturn. The government had, therefore, budgeted a 2% decline in excise collections for 2009-10, compared with the previous fiscal year.
• A strong 22% growth in excise collections in August had raised hopes of excise collections beating estimates. Factory output had grown at 10.2% in August 2009. The disappointing excise collections in September give reason to doubt the output growth data. Excise collections peaked at Rs 1,23,000 crore in 2007-08. In the four-year period before that the collections grew at a average compounded rate of only 8%, well below the annual 16% growth in manufacturing for the same period.
• Indirect tax collections from other heads also have been disappointing. Customs collections were down 32% in April-September, 2009 to Rs 38,810 crore and service tax mopup was down 4.0% to Rs 22,920 crore. Customs collections and service tax collections stood at Rs 7,600 crore and Rs 4,020 crore in September, showing falls of 32% and 15 %, respectively.

International

• Hurrah over hummus
• Lebanese chefs have prepared a plate of hummus weighing over two tonnes that broke a world record held by Israel — a bid to reaffirm proprietorship over the popular Middle Eastern dip.
• Hummus is a thick spread made from mashed chickpeas, tahini, lemon juice and garlic; used especially as a dip for pita; originated in the Middle East
• Tahini is a thick Middle Eastern paste made from ground sesame seeds

Miscellany

• Comic book hero Asterix turns 50
• Remember this character? It is created by Rene Goscinny and is illustrated by Albert Uderzo. But ever since the death of Goscinny, it was being written and illustrated by Uderzo.
• Don't recollect the character? Take a look at the story and the accompanying graphic. We are sure, you will recognize the character immediately.

Sport

• Wasim Akram's wife passes away
• Huma Akram, wife of former Pakistani cricketer Wasim Akram, died at the Apollo Hospital in Chennai on Sunday morning after battling for life for the past five days.
• Huma was suffering from sepsis (an inflammation of several tissues, including blood leading to kidney failure) and was admitted to Apollo Hospital on Tuesday after developing complications mid-air while on her way to Mount Elizabeth Hospital in Singapore from Pakistan.
• Our deepest condolences to Wasim Akram.
• India loses first ODI to Australia; crowd boos Dhoni
• India lost the first ODI with Australia by just four runs and the crowd which got restive booed Dhoni. But Dhoni took it in his stride. Let us hope the team will play with the same spirit and win the series.

Language lessons

• redoubtable: Adjective
• Worthy of respect or honour; Inspiring fear
• chagrin
• Noun: Strong feelings of embarrassment
• Verb: Cause to feel shame; hurt the pride of
• eg: The circular that has now been withdrawn had been successfully interpreted, to the chagrin of the tax department, to put the income generated for a foreign company by a business process outsourcing unit in India outside the ambit of taxation in India.
• queer: Verb
• Hinder or prevent (the efforts, plans, or desires) of; Put in a dangerous, disadvantageous, or difficult position
• eg: The global recession is having a queer effect in unlikely quarters.
• pummel: Verb
• Strike, usually with the fist
• frat: Noun
• A social club for male undergraduates