Anna Avalon Character Sketch Essay

Anna Avalon, the adventurous and admirable main character of â€Å"The Leap’ written by Louise Erdich has many traits that prove her to be a very admirable woman. Her daughter is very grateful to have her as a mother. Throughout this short story, it is quite easy to see that Anna Avalon is talented, careful and brave. Considered to be â€Å"The surviving half of a blindfold trapeze act† (Pg. 190) Anna Avalon is very talented. She had previously been a performer. â€Å"Anna of the Flying Avalon’s† She had been involved in many performances and was definitely a crowd favourite, Anna had performed many â€Å"Double somersaults and heart-stopping catches† (Pg. 90) However, one day there had been a tragic accident. While seven months pregnant, lightning struck a pole resulting in three deaths. â€Å" Lightning struck the main pole and sizzles down the guy wires, filling the air with a blue radiance† (Pg. 192) Anna was the only one who survived this tragic accident, this showing her talent. Along with talented, Anna Avalon is very careful. She is an elderly lady living in New Hampshire, with sightless eyes. Although blind, â€Å"she has never upset an object or as much as brushed a magazine onto the floor. She has never lost her balance or bumped into a closet door left carelessly open. The â€Å"catlike precision of her movements’ (Pg. 190) is probably due to her early training. When caught in a house fire, Anna was willing to risk her own life in order to save her daughter. This shows that she’s a brave and courageous woman and would do anything for her child. Several years ago, Anna Avalon’s house caught on fire, when her daughter was just seven years old. The staircase to her upstairs room had been cut off by flames so everyone was outside thinking there was no rescue. â€Å"Outside, my mother stood below my dark window and saw clearly that there was no rescue. (Pg. 195) However, Anna Avalon did everything in her power to assure her daughter would be safe. â€Å"Standing there, beside Father, who was preparing to rush back around to the front of the house, my mother asked him to unzip her dress. When he wouldn’t be bothered, she made him understand. He couldn’t make his hands work, so she finally tore it off and stood there in her pearls and stockings. She directed one of the men to lean the broken half of the extension ladder up against the trunk of the tree. † (Pg. 195) Anna had well thought out a way to save her seven year old. She leaped through the icy-air and â€Å"was hanging by the backs of her heels from the new gutter†. (Pg. 195) She then tapped on the window to let her daughter know she came to rescue her. Although she was only in her underclothing, she had bigger things to worry about, such as saving her daughter. She successfully saved her daughter, showing her true heroism and bravery. Throughout â€Å"The leap’ it’s clear that Anna is very admirable. She has done many things in her life to help others and we see that she is a wonderful person. From her actions, Anna Avalon is talented, careful and brave.

Philippine agenda reaction paper Essay

When our teacher told us that we will be watching a video about political government in the Philippines, I thought that it would be about politics only. But as the videos are playing, I realize that it was more than politics. It is an eye-opener not only for the government officials but also to all Filipinos. They made a documentation to open the eyes of the candidates for the election. It was made to let the government know the current condition of the Philippines with regards to the concern of the Filipinos. PHILIPPINE AGENDA: EDUCATION (EDUKASYON) The video entitled â€Å"Edukasyon† was one of the documentaries presented by Jessica Soho. The film shows the problem on education in our country. Many students and teachers are having a hard time in studying and teaching because of the insufficient facilities in different public schools. This includes the lack of chairs, tables, classrooms, chalkboards, books, and many others. Most teachers also have not undergone a proper training. Well, what they have documented is very true because I too came from a public school. And our school was also facing that kind of problem before. Though in my time, our school has improved a little bit. All of us had been given the privilege to have a book in different subjects one by one. We also have chairs to sit and tables to write on. Our chalkboard also is big enough, though some of it has a hole already. But our neighboring school was facing almost the same fate as the schools in  Masbate, as what the film documented. They have broken chalkboards, not enough classrooms, chairs, tables and books. Their teacher would go to our school to borrow a couple of books for them to use. There were also some privilege schools in our place who was included in the feeding program of the government. Our elementary school was included. The selected students who were malnourished were being feed every afternoon by the teachers and some of the parents. And after the feeding program, there is another program which is the giving of rice, noodles, and canned goods for the students. Each students was given one kilo of rice, some noodles and canned goods. But the program did not last long. The film helps me realize the great problem that our country is facing today with regards to the education for every Filipinos. And I am thankful that I was given the opportunity to have a better education. I also felt pity on the students who are having a hard time in getting the education that they wanted and at the same encouraged to pursue more on my studies to help those who are in need. Just like the students who were showed in the film, even though their fate in acquiring education is not as good as mine, but they still pursue their goals to finish their education to have a better future. These problems in our education today can be solved by giving more funds for education to build enough classrooms, chairs, tables, chalkboards, and other facilities for the students, publish more books, and support the teachers for their training in order for them to enhance their skills in teaching and to help the students to be more productive in their studies. PHILIPPINE AGENDA: HEALTH (KALUSUGAN) â€Å"Health is wealth†. Indeed, health is the true wealth of our nation. But as I watched the film â€Å"kalusugan† reported by Arnold Clavio, I found out the reason why our country is at the bottom of the list when it comes to the richest country. Because even the citizens here in our own nation have suffered from malnutrition. And how can they call our country rich when they have not taken care of the citizen which is the inheritance of our country? Just like the citizens on one of the place in Mindanao. Each children have a disease and are malnourished because there are no one who can monitor their health. It would take four to five hours to walk just to get to a hospital. And what do they get when they arrived there? Only paracetamols good for ten people. How can that cure there diseases when that is the only medicine that is free? Every other medicine has high price which they cannot afford to buy. There are many other places in the Philippines which was not visited by a single doctor. The government must make a move on reaching those citizens who have not yet been checked on their health status. They must act so that there will no more citizen in the Philippines who will die because of lack of food and medical support. Also, there are many places here in our country who are lacking facilities and medicines for the hospitals. Just like here in Bacolod and in Manila. The family of the patient must be the one who will provide a bed for their patient because there are no more vacant room. And there are many patients who have not given any medical attention that’s why some of them just died in the corner of the hospital. And there are many places also who do not have any hospital or health centers at all. The residence on that place was the one who built a health center. And the medicines they are having are just the usual medicine for fever, cough, and other common diseases. They only have one nurse who also became a doctor and a midwife. How can the government take care of the citizens when they let the doctors and nurses flee to another country? They must take care also the needs of the doctors and nurses so that they will not flee from our country. There are budgets given for the health of the people but where did the money go? What do they spend the money for? If they would have spent it wisely for the specific purpose of that money, our country and the people would not be suffering from lack of food and medical support. Each citizen must have been given a good service, maybe not given all that they need, but given just enough to make them feel that the government was not abandoning them. The government officials are educated people who knows how to manage a money and to spend it wisely for the specific purpose of that money. They must stop their corruption because instead of them helping the problems of our country, they were the one making it worst. If only they hear they cries of the family who lost their loved ones because of lack of support from the government. And they must act so that situations like these would not repeat again and again. All I can do now is to take care of myself and my love ones. Eat the right kind of food to avoid being hospitalized. And help those who are in need of my service. PHILIPPINE AGENDA: CORRUPTION (KATIWALIAN) One of the major reasons why our country are suffering from different problems is because of corruption. Even the educated people, like the government officials, are blinded when it comes to money. Their knowledge and discipline were gone when money was in front of them. Thus leads to corruption. Our country is facing some serious problems today like lack of services for the citizens. And they said that they have given a solution by giving a budget to that particular problem. But the question is, where is the budget now? Do the budgets intended for that problem really made a change? Or they just say that there is a budget to calm the people down but not used all of it for the specific purpose intended in that budget? Even the professionals who are educated, have learned the proper attitude, and knows the right discipline can be like a dump person who knows nothing when money is in front of them. They can be bought by just one to three numbers with many zeros on it. And if you think that zero is nothing, well, of put it behind a certain number, then that would change its value. It would not be nothing anymore. It would be something that can bought a life, especially when there are many zeros that are involve in that particular  number. It can either give or save lives, get or bought lives and change lives. Money have that kind of power in our world nowadays. It can make the powerful man even more powerful and it can ruin life. It can make a simple man be a powerful man or a criminal. And people can be crazy when it comes to money. But it can also change the life of a single person and the status of a certain country. It can be an instrument to ruin things but it can also be used to save and change everything. If it is used in a proper and good way, then it can change our lives forever. If only the government would discipline not only the citizens but also themselves, our country would be a better place to stay. It would be harmonious and the citizens would not go to other countries to serve other people just to provide the needs of their families. They would just stay here and serve our fellow Filipinos who needed their service. And if they only use the money intended for that specific purpose and not for their own, there will be less problems that our country would be facing today. And the problems that we are facing will be slowly but effectively be solved. And if there will be less problem, then our country will be a prosperous and harmonious one. And it would be included on the list of the richest country in the world. PHILIPPINE AGENDA: HOUSING (PABAHAY) One of the basic needs of a person is shelter. A good, nice and warm shelter or house for him to be protected from any cold, rain and sunshine. It is also a private place where a man can spend an alone and bonding time for his family. But how can a man be protected from cold and have a family time if he is sleeping under a bridge, in the street or in a squatter’s area where he is sharing his house with four more families? That is what most of the people in the cities where suffering. Most of them left the country, sold their belongings, and transferring to the city to find work. But because of the overpopulation in the city and they did not found any good work, they end up living under a bridge, on the street, and in a squatter’s area, sharing their shelter with two or more families. And  because they cannot go back to the country because they have no more belongings there, some of them have begun a family in city. The government had implemented a housing program and relocation sites. Some of it were already been built. But there are quandaries in the given solution of the said problem. Some have no electricity, the water is not clean, the location is not very suitable and comfortable, and is far from the city because there are no more sites available near the city. And some also are not finished. The government must give more budget for the housing of the citizens who are living under a bridge and in a squatter’s area. There are also some citizen who lost their home because of the natural calamities that struck the country. And many families are still suffering until now because of the slow action of the government. And the one that they have built for the families who were the first victims of the natural disaster had been broken again by the following typhoon that pass the country. They were providing a shelter for the victims but it was not good and long lasting because of the lack of budget for that project. And the government’s point of view is that the shortcomings are not all their fault. There are also people who lacks discipline. They sold their lands in the country, which was given by the government, and migrated to the city thinking that they will find fortune and good life there. Well, I don’t blame the government for that because it is true. They think that by living their comfort zone in the country and moving to the city would be a better idea. Some of them had found luck in the city but luck is just luck. And most of them did not found good luck. They found misfortune and ended up living and having a family under a bridge, on the street and in a squatter’s area. Their luck had run out. And because they did not found any good job and they cannot plant vegetables and other nutritious foods in the place where they live, they end up picking some left overs in the garbage and looking and selling scrap for them to make money to buy food to put on their tummy. And because of this, malnutrition takes place. PHILIPPINE AGENDA: HUNGER (GUTOM) When I was watching the video entitled â€Å"gutom†, I realized that I am lucky I am eating nutritious foods three times a day. There are many people out there who are starving and having a hard time in getting food. They were just eating the left-overs that are found in the trash bins. And they felt contented if they can eat even just one meal a day. And the worst part is, they have so many children. I am always wondering why do they made many children when they themselves are having a hard time in finding food for their own. How can they find food that is enough for them to eat if they have so many kids? Just like one of the family that was shown in the film which had 12 kids. And the mother is still caring a life inside her tummy. She was still pregnant even if they already had many kids. And the result is malnutrition because the children have not eaten the right kind of food and the right amount of vitamins and minerals that are needed in their body. It was hard for them to get nutritious foods because the foods that are prepared on their table is not enough to make their tummy full. And the baby inside the mother’s womb is also malnourished because the food that the mother had eaten is not nutritious enough to make the baby inside of her become healthy. So, even if the baby have not yet been born, it was already malnourished. If only they have planned well in making a family, they would not having a hard time finding food to feed their children because they only have fewer mouths to feed. And they can also eat nutritious foods three times a day. It is heartbreaking to know that there are Filipinos who are starving and have not eaten foods with the right nutrition. While there are many officials who are just expanding their riches and wasting their money instead of helping the Filipinos who are in need and giving them the right service. They are just having a good time with their money, spending it for their own good, not thinking that there are many children who are dying because of hunger and thirst. They did not consider the fact that even the  small amount of their wealth is enough to save a person’s life from dying of hunger. But this concern is not for the officials but also for the Filipinos who have so much wealth. Some of them are not officials but they are business men who are making wealth but not helping their fellow Filipinos. They must open their hearts to share their wealth and help those who are in need. Even a small act of kindness can save a person’s life. I felt pity on the people who are starving and I cannot even help them on my own. All I can do for now is not to waste anything-food, money, time and many others, and helping others who are in need if I have anything that can help them. And most of all, open my heart and mind to my fellow Filipinos who are in need of my help. PHLIPPINE AGENDA: WORK (TRABAHO) Work is essential to every person to earn money and to buy things we need in our every life. Money is needed in every manner to survive. And we cannot have money without working, either in a simple way or a hard way, in a good or bad way. But it is better to earn money in either simple or hard way but in a good way. But here in our own country, most of the citizen don’t have a good job and some of them really did not found a job. How can they provide money for the needs of their family when they don’t have any job at all? Some of them are being kicked out from the company they are working and others are forced to leave because of some reasons, it could be that their performance is not good enough, the company is reducing some workers, the wages are not enough or the company is closing. Because of the technology in our time now, most of the work are being done by machines. Instead of manually doing the work, the company are hiring more machines than hiring actual human to do the job because machines can do the job two to three times faster than humans. That is why they are losing more workers even if their work is getting bigger and faster. The only one who will remain in that company is operator of the machines and other important people who are expert in that field of the  work. And I cannot blame the Filipinos for going out from our own country and work in other countries because the government cannot provide them a good salary that can provide the needs of their family. They have to look for another job in other countries in order for their family to survive and to have a better life. They have finished a professional course here in our country but the salary is the major reason why they leave the country. But not all who go out from our country have found good fortune. And that is not the fault of the government. The citizens are also to be blamed because of lack of discipline. They just wanted to go out of the Philippines and paid a lot of money to a company who are hiring Filipinos to work for abroad, not inquiring if that company is a legal company, thus end up in a work they were not expecting to have in that particular country. And instead of practicing their profession in the place, they end up being a domestic helper, laborer, babysitter, housemaid , and many other work that is not related to their profession. Some got lucky and had a good boss but some of them were being abused by their boss and the owner of the house because of several reasons. They are lacking good skills, their performance in that work was not good enough, their boss is just so strict and abusive, and they were being forced to do things not according to their will and their contract. And some ended up being imprisoned, bullied by the person they work at, and the worst of all is being sentenced to death. Some of them are being hanged and others are being executed through the way they execute a person in that particular country. Some Filipinos also did not go out of our country but did not found a descent work. Thus end up in finding an illegal job like stealing, selling illegal drugs and other illegal products. Others also have become a holdaper and a killer just to have money to provide for their family to survive. They are lacking skills that is why there are no company hires them. These events can be avoided if only the government will not let anyone who go out of the country without a proper training and have undergone a proper procedure to ensure the work they are working in that particular country. And the Filipinos will not go out from our country if the work here in our own country gives enough wages to keep their family from being hungry. If the wages here in our country is enough to let the tummy of the worker’s family be full every day, then we would not be having a problem in giving service to the citizens in places where  services are highly needed, just like in a hospital, schools and other public service company.

Bank Failures over Last 25 Years Essay

The banks began to fail because of misappropriation of funds and loose lending practices to the majority of the US citizens living above their means. The government estimated 2,657 closures from bank failures from 1987 to 2012 (http://bankvibe. com). Currently, there is a total 7,074 FDIC insured banks (http://www. mybankertracker. com/banks). This caused was from credit stipulations were lowered to allow the subpar credit working Americans to obtain personal loans, car, homes or other amenities. Most banks were very stable but were not prepared for the financial bubble to burst in the distance near future. Moreover, in my experience with working for a few financial institutions, I observed the credit parameters amended to fit a customer’s financial state. These loans stipulations were as follows: no documentation, no income, no assets, or no verification job; underwriting went only off credit score in some cases. The small, mid-size, and corporate banks are all competing for the public’s business which caused disarray of bad banking decisions. Hence, the banks that failed from 1987 until present time in researching last 25 years; we don’t read much about these failures in our daily newspapers, simply just; there is an over abundant of banks failures every day and this has become very common (www. davemanuel. com/history-of-bank-failures-in-the-united-states. php) Nevertheless, these banking behaviors caused a massive failure of mortgage banks and commercial banks. This caused the government to become very involved when Freddie Mac and Fannie Mae were affected by these lending behaviors (Johnson, 2010, p. 4-28). My research will display the trend of failing banks over the last 25 years and data will give insight on the numbers of banks. The Federal Reserve had centralized banking responsibility to save the banks, they deemed too big to fail. The depositors decide to simultaneously withdraw their funds from banks, which resulted in a bank panic. If several banks experience these actions at same time, this throws the banks into a bank panic. The Feds loan the banks money at a discounted rate to sustain these indiscretions (Hubbard & O’brien, 2010, p. 37). Consequently, the US Congress started holding hearings, and questioning these huge corporate banks whose bonuses, incentives, and other loose business practices. These banks closed, sold, or merged with other banks to survive inevitable reality of failing (NAOAKI, 2011, p29). The investment banks were also involved in the buying and selling of bundled mortgages, investments, or other banking products to raise their capital. Lehman Brothers, Bear Stearns, and Countrywide were guilty of such practices as seen all over the TV national news. These companies have been either sold or closed down after the hearings on Capitol Hill. Currently, In order to resolve this crisis, banks have drastically changed their lending practice and the closure of failing banks has slowed down. Corporate banks were also beginning to receive stimulus funds to save them from failing. The government found themselves in a position of using the Feds to prevent catastrophic melt down of financial industry. The 12 districts are replenished to keep the general public getting loans; thus, keeping money in circulation (Hubbard & O’brien, 2010, p. 438). All banks did not take the stimulus funds, but devised a plan to prevent failure. Therefore, banks had to pay back the loans in the billions, but were not charged interest if they paid the funds back early. The small to mid-size banks were left to fail, because they were not too big to fail. A double standard was shown to small businesses the backbone of America (http://economics. bout. com/). A bank of ineffective practices has shown small mom and pop banks they should not try to compete with Corporate Banking in America. They are not going to be bailed out, and allowed to fail. These small or mid-size banks are microeconomics not in macroeconomics equation of America big businesses. In conclusion, the bank failures are significant to our economy tremendously regardless the size, from the housing market, investments, or checking/savings accounts. The Feds saved the banks worth saving to boost the economy and slow down inflation. Perhaps, further research conducted to answer the following questions, and ask the questions: Do you think if people were given the stimulus funds instead of the banking institutions? What kind of economic boost would banks have, if the citizens were given stimulus funds? How does the government determine who receives funds to survive a financial set back? Why are parts of corporate America deemed too big to fail?

How social media is affecting the mind of youth in America Research Paper

How social media is affecting the mind of youth in America - Research Paper Example In addition, the paper also discusses the use of social media among the youths to give essence to discussion of the strong correlation. Further, the research came to conclude that youths’ ignorance about the effects of social media on their activities is the major cause for the negative impacts: consequently, they should be taught about the pros and cons. Human growth and development is characterized by distinct stages that happen along the course of life, one of these is the youth stage. The youthful stage is where a person experiences several physical and biological changes in the body. The youthful stage involves young people looking for more extended relationships with members of the opposite sex. Due to peer pressure they may end up engaging in behaviors that can be detrimental or useful in their future lives, this is the stage where young people are active in terms of information search about different things; entertainment, careers, relationships and technology. It goes without mention that modern advances in information and technology have been responsible for the increased knowledge and awareness about different systems of life by the youth (Large 2005). The youths of modern times are far much informed at their age than the youths of a century ago in the similar age group, thanks to information and technology of the latter days. In this development, the influence brought by social media cannot be underscored. This is the single development that has advanced the way people socialize and conduct their activities, in fact, social media has had a great effect in the way business organizations conduct their research and marketing objectives. It has brought increased opportunities for business and management efficiencies as well as forms of communication and knowledge sharing among staff of business organizations. This paper considers its

FUNDAMENTALS OF ECONOMICS Using diagrams, explain what happens to Coursework

FUNDAMENTALS OF ECONOMICS Using diagrams, explain what happens to PRICE and QUANTITY when Demand increases and Supply increases, and when Supply falls and Demand increases - Coursework Example The diagram below shows the supply and demand curve for good X and the equilibrium price and quantity. In diagram above, the quantity of supply and demand are equal at price 50. If the supply and demand curve won't move, the market price of Good X will not change. If the demand for good X will increase, the demand curve will shift to the right or will exhibit an outward shift. An increase in demand will cause a movement along the supply curve which will result to the rise of equilibrium quantity and price. With the new demand curve, supply and demand of good X equals to 5 at price 60. Price and quantity both increased. This means that an increase in the demand of good X made firms in the market to sell good X at a higher price. However, an increase in supply will show another different result. This is shown in Figure 3. With the new demand and supply curve, D2 and S2, the quantity of good X decreased to about 3.75 units while the price increased by about 78 units. This just proves the law of demand that as the price of good X increases, the quantity demanded decreases. There are a lot of reasons that can cause an increase in demand and supply. ... There are a lot of reasons that can cause an increase in demand and supply. Increase in demand can be caused by increase in the consumer's income or wealth, rise in the price of substitutes, fall in the interest rate, and fall in the price of complements. An increase in supply, on the other hand, can be caused by cheaper cost of production, government subsidies, improvement in production technology, and the entry of new suppliers to the market ("AS Markets and Market Systems"). On the other hand, a decrease in supply has a different effect. This is shown in the figure below. Figure 4. Decrease in supply 80 S 70 S2 60 Price of Good X 50 40 30 20 10 D1 0 1 2 3 4 5 6 7 Quantity of Good X If the demand curve will remain the same and the supply curve shifts downward, the price of good X will decrease to 40 units while the quantity of good X will increase to approximately 4.75. Again, this conforms to the law of demand. Decrease in the price of good X resulted to an increase in the demand for it. This means that more people will be willing to consume good X because of its lower price. However, the picture will not be the same if the demand curve increases and the supply curve decreases. This is shown in Figure 5. Figure 5. Decrease in supply and increase in demand 80 S1 70 S2 60 Price of Good X 50 40 30 20 D2 10 D1 0 1 2 3 4 5 6 7 Quantity of Good X As you can see, there is a decrease in supply and increase in demand. This resulted to a decrease in price form 50 to approximately 42 units and an increase in the quantity of

Avivas Leadership Power and Motivation Lab Report

Avivas Leadership Power and Motivation - Lab Report Example Aviva is the largest general insurer in the UK and has close to 31.5 million customers spread across the 16 countries. According to the company website, the company attained 2.2 billion UK pounds in profits after tax in 2013 compared to 2.9 billion pounds reported in 2012 (Aviva 2014). The cash remittances grew by 40 percent to reach 1.3 billion UK pounds while the new business increased by 13 percent to 835 million during the year 2013. In the current 2014 financial year, Aviva is focused on improving the cash remittances while improving the life insurance business segment through differentiated pricing and building strategic partnerships in emerging markets (Aviva 2014). Aviva’s strategic framework is focused on investment, customer, distribution, and people Aviva has attained excellent performance in five metrics that include cash flow management, operating profits, a value of new business, expenses and combined operating ratio due to excellent leadership and people management. Aviva has a diverse product portfolio and highly talented employees that cater to the changing financial planning and insurance needs of both rural and urban customers (Aviva 2014). Leadership is a critical aspect of Aviva’s success since the management is committed to the organizational goals and has outlined a clear vision that is focused on increasing returns to the fund investors and satisfying the insurance customers. Another key aspect that has fostered Aviva’s growth and profitability is motivation since the employees are committed to higher performance in their jobs. The report will discuss the success of Aviva using organizational theories and c oncepts of leadership and power. The second element of organizational design and management of people that will be the motivational strategies that have been used by the company to ensure high employee performance.

Personal Statement Essay Example | Topics and Well Written Essays - 250 words - 8

Personal Statement - Essay Example Out of this brief sessions I acquired practical skill in visualizing, communication practical work among others. In the recent past, I acted as co-producer in the Variety Show hosted by the University of London Hong Kong Society. It presented me with a practical challenge where I utilized my skills to the actual test. Despite this learning and practical experience, I still feel is should continue learning. There is always something new to the world of arts (The Warhol, n.d). Due to my study of diverse art related courses, I have interacted with a large number of people. This has made me develop strong interpersonal skills, leadership skills as we completed tasks as groups. I have been lucky throughout my life to visit Tate Modern Museum where I saw the exhibition of Roy Lichtenstein a Pop Art artist which reignited and strengthened m interest in Pop Art. I also recently attended an exhibition at the Saatchi Gallery (Gallery, n.d) where there was an exhibition of Andy Warhol was exhibited. Andy Warhol is another pop art artist whom I consider my best artist and inspiration. I had a chance to see the works of Peter Blake’s indomitable 1967 album ‘STG Pepper’s Lonely Hearts Club Band.† All this have improved my understanding of the arts not solely as a subject but as a way of life. That is the main reason I find impossible to abandon All these are Pop Art artists that I admire, but I admire Andy Warhol most. Andy was a prolific artist who engaged in a diverse artist works. This diverse artistic works include; hand drawing, paintings, photography, scriptures among others. It is hard to imagine how an aspiring artist can fail to a dmire Andy Warhol (The Warhol, n.d). Pop art is an art that developed in mid 1950s in both U.S and Britain. It makes images from traditional cultures as opposed to the elitist arts. Pop artists engage in arts dealing with everyday life objects and people rather than

Trip to Hinduism temple Essay Example | Topics and Well Written Essays - 500 words

Trip to Hinduism temple - Essay Example Another interesting point that I noticed is a little box for donation which is place next to each Statue. I acknowledge that any temple needs maintenance which, in turn, requires money. Since religious institutions can not directly ask for money, people are encouraged to make donations. This was particularly interesting for me as it shows that different religions all over the world actually have a lot in common, even in such daily matters as donation boxes. What was even more important is that visitors were not allowed to take pictures. I believe this shows that people who come to the temple to pray to their gods find it particularly disturbing when other people come to the temple as if they were visiting a museum. I thought that this prohibition was quite logical. Speaking of the aspects of my visit that surprised me the most was the need to take off ones shoes prior to walking into the temple. To my mind, this is one of the most intriguing aspects about Hinduism temple as the place feels so much different when one walks around barefooted. There is no doubt that this tradition is conditioned by the warm climate of India. Continuing the idea of similarities between religions, I was surprised very much to learn that there was an analog of Christian Sunday school – the Hinduism temple that I visited also had a little school on the other side of it. It is quite obvious that this shows a close connection between religion and society as well as how there two important aspects mutually shape each other which may be seen in the form of education. Finally, I was quite surprised to learn that many people who attended the temple were wearing traditional Hinduism clothes. I believe that this is extremely important since this kind of clothes allowed them to maintain and reinforce their identity through religious as well as through garments; it also reflects the fact that they treated

MHR2006 MENTAL HEALTH Essay Example | Topics and Well Written Essays - 2250 words

MHR2006 MENTAL HEALTH - Essay Example 1049). It is estimated that this adolescents have a greater risk of developing drug and substance abuse as compared to adults. About 7.6 percent of adolescents, aged 12-17 meet the criteria of dependence on abuse of illegal drugs or alcohol (Burn, et al., 2004, p. 964). In terms of mental health problems, it is usually caused by abuse of drugs such as marijuana, and alcohol and it is the case in most situations that the mental problem tends to increase abuse of these substances. The above facts relate to johns situation in which case he started abuse of drugs such as marijuana at the age of ten. It is most likely that his drug abuse habits have been the root cause for his mental health problems. A comprehensive assessment of John’s situation will require the use of the basic screening and assessment approach of persons with co-occurring disorders given by the Substance Abuse and Mental Health Services Administration (Substance Abuse and Mental Health Services Administration, 2010). This will require a systematic assessment process that will be able to lead to an appropriate treatment plan for John. The first step towards assessing John’s co-occurring disorder is to engage with him and let him open up to share freely by creating a good rapport and comfortable environment. With this achieved john is able to share his situation and share important information that is required for the assessment process and diagnosis. Fortunately, the practice nurse attending to John has been able to achieve this state by making John feel free to share his story and problems. The second step involves identifying John’s family or any other collaterals who may be familiar wit h his history. This is because his condition may inhibit him from reporting accurate instances of his past or present. It is also important considering John’s

Report on Sir Isaac Newton Essay Example for Free

Report on Sir Isaac Newton Essay Sir Isaac Newton was an English mathematician and physicist. He was considered one of the greatest scientists in history. Newton was also the culminating figure in the scientific revolution of the 17th century. Newton was best known for his discovery that the force called gravity affects all objects in space and on earth. .Isaac Newton was born on December 25, 1642, in the hamlet of Wollsthorpe, Lincolnshire (R.S.W. 17) His Father died only three months before he was born (Sir Isaac Newton 1). When he was three years old Isaacs mother, Hanna, placed him with his grandmother so that she could remarry a man named Barnabas Smith, a wealthy man from North Witham (Dr. Robert A. Hatch 1). When his mother returned to Woolsthorpe in 1653, Newton was withdrawn from school to fulfill his birthright as a farmer. Newton failed at farming, and returned to Kings School at Grantham to prepare for entrance to Trinity College, Cambridge. A turning point in Newtons life was when he left Woolsthorpe for Cambridge University in June of 1661 (Dr. Robert A. Hatch 1). Although Cambridge was a marvelous center of learning, the spirit of the scientific revolution had yet to enter its curriculum. In 1665 Isaac Newton took his bachelors degree at Cambridge without honors or distinction (Dr. Robert A. Hatch 2). In 1665 the university was closed because of the plague. At this time Newton returned to Woolsthorpe. There, in the following 18 months, he began revolutionary advances in mathematics, optics, physics, and astronomy (J. A. Schuster 1). During the plague years, Isaac Newton laid the foundation for elementary differential and integral Calculus. He invented the method of fluxions which was based on his crucial insight that finding the area under its curve is the inverse procedure to finding the slope of the curve at any point (J. A. Schuster 1). Also during the plague years he made remarkable discoveries in optics. He had reached the conclusion that white light is not a simple, homogeneous entity. He proved this by passing a thin beam of sunlight through a glass prism which created a spectrum of colors on the wall opposite. Isaac argued that white light is a mixture of many different types  of rays, that the different types of rays are refracted at slightly different angles, and that each type of ray is responsible for producing a given color (J. A. Schuster 2). Newtons greatest work was in physics and celestial mechanics. In 1666, Newton had formulated early visions of his three laws of motion (J.A. Schuster 3). Also during these years he examined the elements of circular motion and, applying his analysis to the moon and the planets, found the inverse square relation that the radially directed force acting on a planet decreases with the square of its distance from the sun. This was later crucial to the law of universal gravitation (Sir Isaac Newton 3). When the University of Cambridge reopened after the plague in 1667, Newton put himself forward as a candidate for a fellowship (Sir Isaac Newton 3). He was elected to a minor fellowship at Trinity College but, after being awarded his Masters Degree, he was elected to a senior fellowship in 1668. Before he had reached his 27th birthday, he succeeded Isaac Barrow as Lucasian Professor of Mathematics (Dr. Robert A. Hatch 2). In 1672, shortly after his election to the Royal Society, he communicated his first public paper, a controversial study on the nature of color (Sir Isaac Newton 4). The paper was generally well received but Hooke and Huygens objected to Newtons attempt to prove, by experiment alone, that light consists of the motion of small particles rather than waves. Although his hypotheses was not convincing, his ideas about scientific method won universal assent along with his corpuscular theory. These reigned until the wave theory was revived in the early 19th century (Newton, Sir Isaac 2). Newtons relations with Hooke soured. Newton withdrew from public discussion for about a decade. After 1675, he devoted himself to chemical and alchemical researches. He postponed the publication of a full account of his optical researches until after the death of Hooke in 1703. Newtons Opticks appeared in 1704. Newtons Opticks dealt with the theory of light and color and with Newtons investigations of the colors of thin sheets. It also contained Newtons Rings and the phenomenon of diffraction of light  (Newton, Sir Isaac 2). In 1689, Newton was elected to represent Cambridge in Parliament. During his stay in London he became acquainted with John Locke, the famous philosopher, and Nicolas Fatio de Duillier, a brilliant young mathematician who became a friend. In 1693, however, Newton suffered a severe nervous disorder (Dr. Robert A Hatch 4). There are many interpretations to the cause of this disorder. Some of these interpretations include overworked, the stress of controversy, and perhaps mercury poisoning the result of nearly three decades of alchemical research. After his recovery Newton sought a new position in London. In 1696 Newton was appointed Warden and then Master of the Mint (Dr. Robert A. Hatch 4). In 1703, Newton was elected president of the Royal Society and was annually reelected until his death (Dr. Robert A. Hatch 5). In 1705 Isaac Newton was knighted (Margret C. Jacob 390). His time as president has been described as cruel, and his control over the lives and careers of younger disciples was all but absolute. Newton could not stand for contradiction or controversy; his quarrels with Hooke provided a single example. Later disputes, as president of the Royal Society, Newton used all the forces he could muster. An example of this is when he published Flamsteeds astronomical observations without the authors permission. In the end, the actions of the Society were extensions of Newtons will. Until his death Newton dominated the landscape of science without rival (Dr. Robert A. Hatch 5). Issac Newton died in London on March 20, 1727 (R.S.W. 20). In conclusion, Sir Issac Newton was one of the greatest scientists in history. Newton was also the culminating figure in the scientific revolution of the 17th century. Many of his theories have become foundations for many areas of science.

The Construction Of A House Or Buildings Construction Essay

The Construction Of A House Or Buildings Construction Essay In this modern world an builders faces lots of challenges in the construction of a house or buildings to compete the world in the form that how to make a modern house or building which is environment friendly, energy saving and low cost etc, such sort of problems putting pressure on builders now a days. Because of the rising cost of the material which is used in traditional construction methods which are unlikely to meet the demands for future developments. Thats why more and more builders or designer are now understand the benefits of the development of modern material which are gradually used in the buildings now a days. Housing associations are now encouraging the housing corporation to use the modern ways of construction known as modern methods of construction when building new developments. This policy is a direct result of the Governments response to a number of drivers that have resulted in what it perceives to be a crisis in housing supply. In areas of growth, house construction in the private sector has tended to focus on the production of traditional houses either semi-separate family homes or larger separate executive homes. These private sector dwellings are beyond the reach of most first time buyers, particularly key-workers in comparatively low-paid jobs in the public sector. The Government is looking to housing associations to give dwellings for those who cant afford to buy the house. The Housing Corporation is the key agency regulating The Housing Corporation is the key agency regulating delivery of housing in the social housing sector. They assist with delivery of policy via grants awarded through the Approved Development Programme (ADP). A proportion of the ADP has been ring-fenced (The Challenge Fund) for the delivery of new homes quickly and cost effectively, in areas of high demand as well as stimulating a step change in supply by encouraging innovative forms of construction. In the face of the support from political and regulatory authorities to make greater use of modern methods, lots of stakeholders are still unsure about modern methods of construction for some of reasons. In the case of housing associations there is doubt about whether or not modern methods are able to deliver energy efficient homes at good reasonable prices. This pamphlet aims to demonstrate that homes that cross the requirements of building regulations in sense of their material efficiency can be built cost-effectively. SIPS Structural insulated composite panels are one of the most satisfying technologies in the construction industry. Started in the years of 1940s when the new sandwich design concept was generated, where there were two wooden materials and a different element between them generating maximum strength to the structure. Design As mentioned earlier, the SIP has an insulated structure between two wooden boards. This most commonly used materials are expanded polystyrene (EPS), extruded polystyrene (XPS) or rigid polyurethane foam. Figure : STRUCTURAL INSULATED COMPOSITE PANELS Figure : STRUCTURAL INSULATED PANELSOther materials can also be used for example, steel, aluminium, stainless steel, fibre-reinforced plastic, and magnesium oxide.http://www.wbs-ltd.co.uk/images/photos/newbuild_mmc_sips1a.gif Advantages the structure is more Tougher and stronger due to the sandwich pattern of the material More insulated than any of the materials Less operating cost and can be used almost everywhere for eg. Roof, floor, walls etc. Drawbacks The manufacturing and the production can take some time Expensive manufacturing cost Have to prevent the composite from moister and keep it ventilated The material creeps over time Figure : VOLUMETRIC CONSTRUCTIONVOLUMETRIC CONSTRUCTIONhttp://www.scrapbookscrapbook.com/DAC-ART/images/hoodsinside.jpg The volumetric construction is also, known as the modular construction. This kind of construction is mostly used at places where the employer cannot afford waste time and material for e.g. a busy road, a hospital etc. Design The construction components are manufactured and processed and are stacked onto prepared foundations to form dwelling. The materials used to make the components include light gauge steel frame, timber frame, concrete and composites. Advantages Saves time and also the labour cost. Can reduce the waste significantly generated during construction and also comparatively the least amongst other construction methods It is the most efficient when using identical units as it is the same common production line used. Improved quality compared to the other construction methods Disadvantages Setting up a manufacturing and production line could be a major concern issue when considering cost Transporting could be expensive depending upon the size of components Also, installations and other factors would affect the construction workers if the components are heavy or complex structure and have to be perfectly installed STEEL FRAME CONSTRUCTION The steel frame construction is usually used for constructing bigger structures like building, sky scrapers etc due to its durability and toughness. The SFC is one of the most efficient construction methods which use steel beams, T shaped and I shaped beams as to resist the stresses. Design Figure : STEEL FRAME CONSTRUCTIONOakridge, a development of 299 dwellings for Sentinel Housing Group, utilised light gauge steel frame panellised construction for the first two phases. The homes, constructed from steel frames manufactured by Ayrshire Steel Framing, share standardised layouts visual variety was achieved externally by incorporating a variety of physical features (such as bays, dormers and balconies) along with a variety of finishes (different coloured renders, brick and timber cladding). Dormers and balconies were also prefabricated in glass reinforced plastic (GRP).http://www.airport-technology.com/projects/raleighdurham/images/7-frame-construction.jpg 2. Advantages of Steel Frame Construction: They can build very high and large They are light weight and strong They are easy to fix or assemble They are accurate and predictable 3. Disadvantages of Steel Frame Construction: Steel is an expensive material Frames are unstable These types of frames needs fire protection They needs separate skin TIMBER FRAME CONSTRUCTION Figure : TIMBER FRAME CONSTRUCTIONTimber frame is a modern method of construction that offers an important high-quality solution to the many housing and construction challenges facing the UK.As one of the leading modern methods of construction, timber frame has grown consistently year on year. Its regarded as a means of achieving good quality, reducing time spent on-site, increasing safety and overcoming skills shortages in the industry, and will play a very important role in the formation of homes in sustainable communities by 2016.http://www.lizmale.co.uk/uploadFiles/mciFiles/Timber_frame_construction1.jpg Design Wood is the only renewable commercial building material and as a way of construction is effectively carbon neutral. When you use timber frame youre actively helping to reduce the belongings of global warming. Further improved by its low embodied energy and excellent insulation properties, it means happy customers with lower heating bills and a good future for the planet. Advantages of Timber Frame Construction In timber frame construction needs small amount of labour. It can be seen that the benefit in terms of time saving on site manifests itself as a saving in construction risk. Timber frame construction is environment friendly but the environmental benefits of timber frame construction are reduced when timber is imported from sources outside non local and requiring substantial fuel consumption in transportation. Disadvantages of Timber Frame Construction Apparently problems with timber frame construction in the housing industry from each end users and local establishment would include a perceived huge risk of fire, problem of sound lessening in a timber structure and the impact such a structure might have on the security of the end user. Basingstoke timber frame construction site fire Figure : CONSTRUCTION FIRE Timber frames are designed and manufactured to tight tolerance and require correct setting and other adjacent construction such as chimneys, rising walls and block construction. As a result, these works need to be set out with a good degree of accuracy. Panels should be stacked on a flat surface so that warping or buckling does not happen. Proper on-site practices and skill of deliveries can address this matter. Where housing is proposed in areas at threat of flooding, the planned construction methods undertaken need to be reviewed in order to measure the possible risks or implications should flooding occur. BRICK and MORTAR CONSTRUCTION Figure : BRICK AND MORTAR CONSTRUCTIONBrick is a timeless, classic building material. The Chinese, and Egyptians understood the value of this simplest of rectangular solids over three thousand years ago. Brick structures still stand that were already ancient at the time of Christ. Invented in antiquity, brick remains the one exterior building material with a human scale, rich variegated colours, and flexibility of use. Modern man has crafted building materials from concrete, plastic, glass and steel, but none approach this unique elementary product. http://www.chemexfranchises.co.uk/anglesey/images/construction.jpg Design The brick making process is unchanged from primitive times in its necessary elements. A modern brick plant carries out the same functions that a Babylonian craftsman once performed. That craftsman mortar and sand, mixed the two with water to form a flexible clay mass or clot, formed the clot in a wooden mould, dried the green, unfired brick in the sun, baked it to nearly 2000 degrees, and cooled the now permanent brick, which then went to the mason to be laid in mortar to become part of a temple, Great Wall, or simple home. Figure : BRICK AND MORTAR CONSTRUCTIONAdvantages of Brick and Mortar constructionhttp://www.bandwbuilders.co.uk/ImageHandler.ashx?UploadedFile=trueimage=~/App_Data/UserImages/Image/11125%20100910%20001.jpg The bricks walls protects the houses from noises thats comes from outside. Bricks are beautiful when we go to the residential area we can compare the beauty of brick structure to the other structural work like steel, wood etc. Brick structures are easy to maintain and there is nearly no cost to maintain the exterior of an all brick home. Bricks will not burn and in those disastrous situations where a fire does occur it will certainly not fuel the situation. Disadvantages of Brick and MORTOAR CONSTRUCTION The one main disadvantage of bricks and mortar is the high cost of both material and labour. Bricks and mortar construction is much sturdier than wooden homes because of the thickness, hardness and weight of the materials used to build the home bricks and mortar construction is very old traditional construction. ANALYSES AND EVALUATION For the particular construction, the author supposes that the steel frame construction would be the best possible way to build the structure. As the main concern is time efficiency it would be quicker and easier to install the steel frame structure and to complete the work on time. Talking in terms of cost efficiency and reliability, in the steel frame structure has to be compromised in one of the two factors. The demand of this kind of structure is to be tough and reliable and therefore have to spend some money on the manufacturing of the steel frames and also keeping the quality into consideration. The manufacturing cost and the transportation cost would be the only concern issues for the company where as the labour cost would be comparatively less. As the steel frames could be easily assembled and fixed. Architecting on the building would be easier and also it would give a freedom to the architect to design his particular construction as the steel frame could be manufactures in almost any possible way. Method Cost Time efficiency Structural reliability Environmental friendly sustainability SIP Expensive manufacturing cost and nominal labour cost Moderate Good Moderate Best Volumetric construction Expensive manufacturing and labour cost Good Moderate Moderate Less Timber frame construction Nominal cost Less Moderate Less Good Brick and Mortar construction Least amongst all the methods Least Good Less Less Steel Frame Construction Expensive manufacturing cost but cheap labour cost Best Best Best Good SCHEDULING AND PROCEDURES Designing The plan starts by taking the structure into consideration. Keeping the limitations, constrains and the difficulties in mind. The Architecting Part takes place after the cost estimation and the legislations have been considered. The designing process is a time taking process as it helps in knowing all most everything which is to be used in the construction and the quantity of materials which have to be ordered or manufactured. Foundation The execution starts by evacuating the area and excavating to make a foundation for the building. The foundations build is made up of cement, which is a common process for all the construction. During the initial construction, the skeleton of the structure is build by the steel frame construction method. The steel frame construction helps in giving the toughness to the structure and also, the freedom to building almost any kind of structural shape. The concern issues for steel frame structure are as follows: Time delay in manufacturing and transportation Waste parts could affect the expected budget Construction The method suitable with the steel frame structure is the SIPS. The Structural insulated panels can be used in making roofs, floor and also the walls. The reliability and the strength of the combination of the structures would improve the life and the toughness of the building. Concern issues for this kind of construction method are: Weather: it could be a serious issue and could delay the work plan, therefore the construction plan has to be well organised and executed. Labour cost : these kind of construction methods have nominal labour cost but since it is a combination of two types of construction methods, the labour demand could be higher Lastly, legislation: the legislations are the most important factor of concern for the employer and as well as the management. Finishing The finishing consists of the final construction steps like greasing, oiling, painting etc. REFERENCE Figure 1: modern method of construction ; http://www.tommypopeconstruction.com/Building-Construction.htm Date: 3rd may 2011 time: 4:00pm Figure 2 : Modern building; Shift Housing by AquiliAlberg Date: 3rd may 2011 time: 4:20 Figure 3 : http://www.thermalconstruction.co.uk/about-us-1 DATE: 9th may 2011 11:41 Figure 4 : SIPS http://www.wbs-ltd.co.uk/newbuild_mmc_sips.htm Date: 9th may 2011 12:00 Figure 5: VOLUMETRIC CONSTRUCTION http://www.scrapbookscrapbook.com/DAC-ART/dac-artblocks.html Date: 10th may 2011 1:12pm Figure 6: STEEL FRAME CONSTRUCTION http://www.airport-technology.com/projects/raleighdurham/raleighdurham7.html Date: 10th may 2011 1:30pm Figure 7 : TIMBER FRAME CONSTRUCTION http://www.lizmale.co.uk/clients-case-studies/uktfa Date: 10th may 2011 1:35pm Figure 8: CONSTRUCTION FIRE http://faast.co.uk/2010/09/15/basingstoke-timber-frame-frame-fire-prompts-construction-fire-safety-warnings/ Date: 11th may 2011 2:00pm Figure 9 : BRICK AND MORTAR CONSTRUCTION http://www.chemexfranchises.co.uk/anglesey/construction.html Date: 11th may 2011 2:10pm Figure : BRICK AND MORTAR CONSTRUCTION http://www.bandwbuilders.co.uk/blog Date: 11th may 2011 4:00

Regulatory Frameworks of Indias Industrial Policies

Regulatory Frameworks of Indias Industrial Policies CHAPTER 3 THE REGULATORY FRAMEWORK 3.1 INTRODUCTION: THE PARADIGM SHIFT The industrial policy pursued in India for the first four decades after independence was based on the socialist school of thought that India embraced, partly to alienate itself from the colonial past and more so owing to the obvious achievements of the socialist movement in the post world-war two period. Thus, through a Resolution dated April 6, 1948 the government set out the policy to be pursued in the Industrial field, wherein to secure continuous increase in production and equitable distribution, the country opted for a centrally planned development strategy, with the state playing a major role. For this purpose, the National Planning Commission was established for planning, co-ordination, integration of national economic activity and to formulate programmes of development and to secure their execution. On October 30, 1956, at the beginning of the Second Five Year Plan, the Government adopted a New Industrial Policy Resolution, which reiterated the above objective and classified industries into three categories as follows: Schedule A were those industries whose future development was the exclusive responsibility of the state. Schedule B consisted of industries which would be progressively state-owned, wherein the state would take initiative in establishing new undertakings and private enterprise would be expected to supplement the effort of the state. Schedule C included all remaining industries whose further development was left to the initiative and enterprise of the private sector. This led to the expansion of the public sector in India, whose share in GDP increased from 9.91% in 1960-61 to 27.12% in 1988-89. However, the cause of concern was that a large number of public sector enterprises particularly the Non-departmental non-financial enterprises were making losses and had to be subsidized. Industrial undertakings in the private sector were subject to control and regulation like the Industries Development and Regulation (IDR) Act (1951) and were expected to align their business strategy and goals with the broad economic and social objectives of the State. The IDR vested with the government necessary powers to regulate and control existing and future undertakings in a number of specified industries. A license was necessary for establishing a new undertaking, taking up the manufacture of a new article in an existing unit, effecting substantial expansion, carrying on the business of an existing undertaking and changing the location of an existing unit. A Letter of Intent (LOI) was issued for sectors/activities under compulsory license under the IDR Act, 1951. The LOI was converted into Industrial License on completion of specified formalities. Further, to prevent monopolies and concentration of economic power in the hands of private sector, in 1969, the Monopoly and Restrictive Trade Practices Act (MRTP) was enacted. All these regulations and controls led to increase in bureaucracy, inhibiting enterprise and industry. Also, given the state of the economy with limited resources, scarce capital and vast population base, the development ideology revolved around the notion of conservation and optimum utilization of capital so as to maximize employment (and not necessarily output). Deployment of new capital was strictly controlled and regulated so as to meet social needs and maximize employment. Further, once the capital was committed to any activity and a certain employment was created, it was protected at any cost even if it was non-viable in the face of market forces. Labour intensive technology and employment generation were also the rationale behind the initial advocacy of small-scale industry. However, later, when it was realized that modern small scale industry was not necessarily labour intensive, the argument turned to encouraging the entry of new entrepreneurs in industry. A range of products were reserved for exclusive production in the small-scale sector, eliminating potential competition from medium and large firms. There were no pressures on the smaller firms to improve technology, update production techniques or reduce cost modernize or specialize. There was an inherent disincentive to grow beyond a certain size, if they had to continue production of a reserved product. Thus economies of scale could not be leveraged and market distortions were widespread. Until 1991, the guiding principle of Indias industrial policy was self reliance, which focused on indigenous production and reduced dependence on foreign capital and foreign technology irrespective of the cost and/or quality. This did lead to the creation of a large industrial base, diversification of products, ownership and location. But in the absence of domestic competition, export rivalry and competition of imports, industry grew with a lack of cost and quality consciousness, leading to slow growth, increasing deficits and debt and finally the crisis in 1991 which paved the way for economic reforms in India. Some of the components of the reform package include: Reforms in Industrial Policies in terms of delicensing of most industries and deregulation of industries earlier monopolized by the public sector Liberalisation of foreign trade through steady reduction in tariffs and freeing up of the foreign investment limits in most industries combined with measures to attract FDI into the country Macroeconomic stabilization through substantial reduction in fiscal deficits and governments draft on the private sectors savings Other reforms including those in taxation, financial sector, insurance sector, public sector, etc. During the last decade and half, these reforms have reoriented India from a slow-paced, centrally directed and highly controlled economy to a strong, vibrant, fast-growing and market-friendly one. There now exists an internationally competitive private sector with varied scope for collaborations and joint ventures and a facilitating regulatory framework that is evolving to match the international standards. This Chapter seeks to give an overview of the broad framework of regulations governing business in India particularly in the context of: Industrial Policy Foreign Investment Policy Anti Trust Regulations Labour Laws Protection of Intellectual Property Rights Other Economic Laws Procedures 3.2 INDUSTRIAL POLICY The Industrial Policy Resolution 1956, substantially augmented through the Statement of Industrial Policy 1991 and subsequent announcements which liberalized the economy provides the basic framework for the overall industrial policy of the Government of India. 3.2.1 Industrial Licensing The requirement of obtaining an industrial license for manufacturing has been abolished for all projects except for a short list of industries connected with security and strategic concerns (reserved for public sector), social reasons, hazardous chemicals and overriding environmental concerns. The list of items requiring compulsory licensing is reviewed on an ongoing basis. The stage of LOI has been dispensed with for all sectors/activities except for items reserved for SSI sector and an Industrial License is now issued without going through the stage of LOI. The following industries require compulsory license:- Alcoholics drinks Cigarettes and tobacco products Electronic, aerospace and defense equipment Explosives Hazardous chemicals such as hydrocyanic acid, phosgene, isocynates and di-isocynates of hydro carbon and derivatives, etc. Non-small-scale industrial units or units in which foreign equity is more than 24% require license to manufacture items reserved from small scale sector. All other industries are exempt from licensing and no industrial approval is required. Entrepreneurs are only required to file an Industrial Entrepreneurs Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA), providing information on new projects and substantial expansions. There are however, certain locational restrictions in metropolitan areas. No industrial approval is required from the Government for locations outside 25 kms of the periphery of cities having a population of more than one million except for those industries where industrial licensing is compulsory. Non-polluting industries such as electronics, computer software and printing can be located within 25 kms of the periphery of cities with more than one million population. Permission to other industries is granted in such locations only if they are located in an industrial area so designated prior to 1991. Zoning and Land Use Regulations as well as Environmental Legislations have to be followed. Appropriate incentives and investments in enabling infrastructure are provided to promote dispersal of industry particularly to the rural and backward areas and to reduce congestion in cities. Recently, the Government approved a package of fiscal incentives and other concessions for the North East Region namely the North East Industrial and Investment Promotion Policy (NEIIPP), 2007, effective from 1.4.2007. Also, under the broad framework of the national industrial policy, different Indian States announce their respective Industrial Policies periodically, which highlight the areas in which the State would focus on and provide incentives to attract investment, the various sector location specific schemes offered to private investors, the plans for development of enabling infrastructure, opportunities for public-private-partnership, etc. 3.2.2 Policies for Privatisation The post 1991 liberalisation process brought with it deregulation of trade and industry, dismantling of bureaucratic controls, technological development and financial sector reforms. Privatising some of the activities which heretofore were the exclusive domain of public sector also became part of this initiative to boost enterprise and professional management of resources to enhance economic growth and competitiveness. Revolutionary policy measures were undertaken to encourage private participation in sectors like telecom, information broadcasting, power, ports, airports, banking, etc. Over the years, the government has reduced the number of industries reserved for the public sector to the two which are deemed significant from security and strategic perspective, viz., Atomic energy and Railways. However, in the last few years the railways announced opening up of its containerized operations to other private and public sector companies, thereby ending the monopoly enjoyed by the Container Corporation of India (CONCOR). Interested companies could avail of the route-specific or all-India permission by paying a registration fee which is valid for an operation period of 20 years (further extendable by 10 years). There is freedom to decide the tariffs to be charged to the customers for various services and also the exit norms involve transfer of the operational writes to another eligible operator with the railway approval. 3.2.3 Policies for Small Scale Sector The provisions in the Industrial Policy Statement of 1991 and the subsequent policies are aimed at supporting the Small Scale Industries (SSI) sector though various measures and packages focusing not only on policy of reservation but also on price and purchase preference policy for marketing SSI products, credit and fiscal support to SSIs, support for cluster based development, technology upgradation, etc. The IDR Act 1951 provided for the reservation of items for exclusive manufacture in SSI sector primarily with the objectives of increasing production of consumer goods in the small scale sector and widening of employment opportunities. In 1967, 47 items were reserved for exclusive manufacture in the small scale sector. This number was increased to 836 items in 1989. However, since 1997, a large number of items were dereserved from the list in the phased manner. As of March 2007, only 114 items are reserved for exclusive manufacture in the small scale sector. In addition to the policy of reservation, the Government has initiated various measures offering support for Cluster based Development, Technologies and Quality Upgradation, Marketing, Entrepreneurial and Managerial Development and Schemes for Empowerment of Women Owned Enterprises. Further, with a view to facilitate the development of micro, small and medium enterprises (MSME), the Micro, Small and Medium Enterprises Act 2006, was implemented. The Act provides the new classification of each category of enterprises. As per the Act, MSME are defined as follows: in the case of the enterprise engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the IDR Act 1951 a micro enterprise is the one where the investment in plant and machinery does not exceed twenty five lakh rupees. a small enterprise is one where the investment in plant and machinery is more than twenty five lakh rupees but does not exceed five crore rupees; or a medium enterprise is one in which the investment in plant and machinery is more than five crore rupees but does not exceed ten crore rupees; in the case of enterprises engaged in providing or rendering of services a micro enterprise is one where the investment in equipment does not exceed ten lakh rupees; a small enterprise is one in which the investment in equipment is more than ten lakh rupees but does not exceed two crore rupees; or a medium enterprise is where the investment in equipment is more than two crore rupees but does not exceed five crore rupees In February 2007, the Government announced a package for promotion of the SSI sector as follows: Credit Support: The package aims at increasing the number of beneficiaries of the credit provided by the Small Industries Development Bank of India (SIDBI) by 50 lakhs, over five years beginning from 2006-07. For this purpose, the Government has provided grant to SIDBI to augment its Portfolio Risk Fund. Besides, in an attempt to increase demand-based small loans to micro enterprise, the Government announced a provision of grant to SIDBI to create a Risk Capital Fund (as a pilot scheme in 2006-07). The eligible loan limit under the Credit Guarantee Fund Scheme has been raised to Rs. 50 lakh. The credit guarantee cover has also been raised from 75% to 80% for micro enterprises for loans upto Rs. 5 lakhs. Fiscal support: The Government has increased the General Excise Exemption (GEE) limit from Rs. 100 lakh to Rs. 150 lakhs since April 2007. It further proposes to examine the eligibility of extending the time limit for payment of excise duty by micro and small enterprises; and extending the GEE benefits to small enterprises on their graduation to medium enterprises for a limited period. 3.3 FOREIGN INVESTMENT POLICY In recognition of the importance of of foreign direct investment as an instrument of technology transfer, augmentation of foreign exchange reserves and globalization of the Indian economy, the Government of India revamped its foreign investment policy as part of the reform process. 3.3.1 Foreign Direct Investment Foreign Direct Investment (FDI) regime in India was increasingly liberalized during 1990s (more particularly post 1996) and today India has the most liberal and transparent policies on FDI among the emerging economies, with restrictions on foreign investments being removed and procedures simplified. Some of the prominent features of the FDI policy in India are elucidated below: The approval mechanism for FDI has a two tier system. Under the automatic approval route, companies can issue shares and receive inward remittances for investment in areas identified and upto the limits of foreign equity prescribed, with a reporting requirement, within a period of 30 days. In these sectors, investment could be made without prior approval of the central government. Although, in case of the automatic route, it is no longer necessary to obtain the in principle permission from Reserve bank of India (RBI) before receiving overseas investment or for issuing shares to foreign investors, the company, would, however, have to make a report to the RBI within 30 days after issue of shares to the foreign investors. Proposals for investment in public sector units and also for Special Economic Zones (SEZs) / Export Oriented Units (EOUs)/ Export Processing Zones (EPZs) qualify for automatic approval subject to satisfaction of certain prescribed sector specific parameters. FDI upto 100% is permitted under the automatic route for setting up Industrial Parks. Proposals for FDI/NRI investment in Electronic Hardware Technology Park (EHTP) and Software Technology Park (STP) Units are eligible for approval under the automatic route, except for those requiring prior approval of the Central Government (as discussed below). FDI in sectors that are not covered under the automatic route requires prior approval of the Central Government. Activities/sectors require prior approval of the Government for FDI in the following circumstances:- Activities/items that require an industrial license Proposals in which the foreign collaborator has an existing financial/technical collaboration in India in the same field (except in IT and mining sector) All proposals falling outside notified sectoral policy/CAPS Proposals in which more than 24% foreign equity is proposed to be inducted for manufacture of items reserved for the Small Scale Sector The approval is granted by Foreign Investment Promotion Board (FIPB), which is a specially empowered board set up for the purpose, chaired by the Secretary, Union Ministry of Finance. Proposals for FDI could be sent to the FIPB Unit, Department of Economic Affairs, Ministry of Finance or through any of Indias diplomatic missions abroad. FIPB has the flexibility to examine all proposals in totality, free from predetermined parameters. Recommendations of FIPB regarding all proposals falling in the non-automatic route and involving an investment of Rs.6 billion or less are considered and approved by the Finance Minister. Projects with investment greater than this value are submitted by the FIPB to the Cabinet Committee on Economic Affairs for approval. Necessary regulatory approvals from the state governments and local authorities for construction of building, water, environmental clearance, etc. need to be acquired after the grant of approval for FDI by FIPB or for the sectors falling under automatic route. Single window clearance facilities and investor escort services are available in various states to simplify the approval process for new ventures. Decisions on all foreign investments are usually taken within 30 days of submitting the application. In cases where original investment is made in convertible foreign exchange, free repatriation of capital investment and profits thereon is permitted. Sectors prohibited for FDI include: Retail trading (except Single Brand Product retailing) Atomic Energy Lottery Business Gambling and Betting 3.3.1.1 Investment in SEZs In order to enhance competitiveness of Indian exports and attract investment in these sectors, Indias Foreign Trade Policy promotes the setting up of SEZs and thus provides for a hassle-free environment with world-class institutional and physical infrastructure and supporting logistics. Some of the existing EPZs/FTZs have also been converted into SEZs. All the State Governments have been advised to give priority to waste and barren land for acquisition purposes. According to the total Waste Land area surveyed by the Ministry of Forest, 5,52,692.26 hectares was available for such purpose. FDI upto 100% is permitted under the automatic route for setting up of SEZ. Proposals not covered under automatic route require approval from FIPB. The policy provides for setting up of SEZ in the public, private or joint sectors or by state governments. These could be product specific or multi-product SEZs. Designated duty-free enclaves are treated as foreign territory for trade operations and duties and tariffs, and duty-free goods need to be utilised within the approved period. The permitted activities cover an array of manufacturing and services like production, processing, assembling, reconditioning, re-engineering, packaging, trading, etc. Proposals for setting up units in SEZ, other than those requiring industrial license are approved by the Development Commissioner (DC). The approval for those requiring industrial license is granted by the DC after receiving clearance from the Board of Approval. The Letter of Permission (LOP)/Letter of Intent (LOI) issued by the DC is construed as a license for all purposes, including procurement of raw material and consumables either directly or through a canalising agency. The LOP/LOI needs to specify the items of manufacture/service activity, annual capacity, projected annual export for the first year in dollar terms, Net Foreign Exchange Earnings (NFE), limitations, if any, regarding sale of finished goods, by products and rejects in the DTA and such other matter as may be necessary and also impose such conditions as may be required. According to the policy, SEZ units have to be positive net foreign exchange earners and the performance of these units would be monitored by a unit approval committee consisting of the DC and the Customs Authority. 3.3.2 Entry Options for Foreign Investors A foreign company has the option to set up business operations in India as an Incorporated Entity or as an Unincorporated Entity. An Incorporated Entity would be a company registered under Companies Act, 1956, through joint ventures or wholly owned subsidiaries. Foreign equity in such Indian companies can be up to 100% depending on the requirements of the investor, subject to any equity caps prescribed in respect of area of activities under the FDI policy. Funding could be via equity, debt (both foreign and local) and internal accruals. For registration and incorporation, an application has to be filed with the Registrar of Companies (ROC). Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other domestic Indian companies. Companies in India can be incorporated as a private company or a public company. In comparison with branch and liaison offices (discussed subsequently), a subsidiary company provides maximum flexibility for conducting business in India. However, the exit procedure norms of such companies are relatively more cumbersome. An Unincorporated Entity could be Liaison Office/Representative Office or Project Office or Branch Office. Such offices can undertake activities permitted under the Foreign Exchange Management (Establishment in India of Branch Office of other place of business) Regulations, 2000. They are also governed by the Companies Act 1956, which contains special provisions for regulating such entities. 3.3.2.1 Liaison Office/Representative Office The role of a liaison office is primarily to: Collect information about the market Disseminate information about the company and its products to prospective Indian customers Promote exports/imports from/to India Facilitate technical collaboration between parent company and companies in India A liaison office cannot undertake any commercial activity directly or indirectly and cannot, therefore, earn any income in India. Approval for establishing a liaison office in India is granted by the RBI. 3.3.2.2 Project Office Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI. Since a Project Office is an extension of the foreign incorporation in India, it is taxed at the rate applicable to foreign corporations. 3.3.2.3 Branch Office Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in India for the following purposes : Export/Import of goods Rendering professional or consultancy services Carrying out research work, in which the parent company is engaged. Promoting technical or financial collaborations between Indian companies and parent or overseas group company Representing the parent company in India and acting as buying/ selling agents in India Rendering services in Information Technology and development of software in India Rendering technical support to the products supplied by the parent/ group companies Foreign airline/shipping company Branch Offices established with the approval of RBI, are allowed to remit outside India profit of the branch net of applicable taxes (which are at rates applicable to foreign companies) however, subject to RBI guidelines. Permission for setting up branch offices is granted by the RBI. Branch Offices could also be on stand alone basis in SEZ. Such Branch Offices would be isolated and restricted to the SEZ alone and no business activity/transaction would be allowed outside the SEZs in India, which include branches/subsidiaries of its parent office in India. No approval shall be necessary from RBI for a company to establish a branch/unit in SEZs to undertake manufacturing and service activities, subject to the conditions that: they function in sectors in which 100% FDI is permitted they comply with part XI of the Companys Act (Section 592 to 602) function on a stand alone basis in the event of winding up of business and for remittance of winding-up proceeds, the branch should approach an authorized dealer in foreign exchange in the with documents required as per FEMA. A Branch Office provides the advantage of ease in operations and an uncomplicated closure. However, since the operations are strictly regulated by exchange control guidelines, a Branch may not provide a foreign corporation with most optimum structure for its expansion/diversification plans. Box 3.1 Investment in a firm or a Proprietary Concern by NRIs A Non-Resident Indian or a Person of Indian Origin (PIO) resident outside India may invest by way of contribution to the capital of a firm or a proprietary concern in India on non-repatriation basis provided: i) Amount is invested by inward remittance or out of NRE/FCNR/NRO account maintained with Authorised Dealers of RBI (AD) ii) The firm or proprietary concern is not engaged in any agricultural/plantation or real estate business i.e. dealing in land and immovable property with a view to earning profit or earning income there from. iii) Amount invested shall not be eligible for repatriation outside India. NRIs/PIO may invest in sole proprietorship concerns/ partnership firms with repatriation benefits with the approval of Department of Economic Affairs, Government of India /RBI. Box 3.2 Investment in a firm or a Proprietary Concern by Other than NRIs No person resident outside India other than NRIs/PIO shall make any investment by way of contribution to the capital of a firm or a proprietorship concern or any association of persons in India. The RBI may, on an application made to it, permit a person resident outside India to make such investment subject to such terms and conditions as may be considered necessary. 3.3.3 Financing Options for Corporates Companies registered in India can raise finances through Share Capital or Debentures and Borrowings. 3.3.3.1 Share Capital The Companies Act, 1956 allows for two kinds of share capital, viz., Preference share capital (preferred stock) and Equity share capital (with/without voting rights). Apart from this, private companies which are not subsidiaries of public company have the option of raising funds through Venture Capital. The issue of shares to the public is governed by the guidelines issued by the Securities Exchange Board of India (SEBI) the body that regulates and oversees the functioning of Indian Stock markets and the RBI. A company issuing shares or debentures has to comply with SEBI disclosure requirements with regards to its prospectus. The prospectus has to be approved by the stock exchange and scrutinized by SEBI and then filed with the Registrar of Companies. Indian companies having foreign investment approval through FIPB route do not require any further clearance from RBI for receiving inward remittance and issue of shares to the foreign investors. The companies are required to notify the concerned Regional office of the RBI of receipt of inward remittances within 30 days of such receipt and within 30 days of issue of shares to the foreign investors or NRIs. Equity participation by international financial institutions such as ADB, IFC, CDC, DEG, etc., in domestic companies is permitted through automatic route, subject to SEBI/RBI regulations and sector specific cap on FDI. In all other cases a company may issue shares as per the RBI regulations. Other relevant guidelines of SEBI and RBI, including the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, wherever applicable, would need to be followed. The Companies Act does not specify the nominal value of shares. According to RBI/SEBI Guidelines, in case of listed companies, the issue price shall be either at the ave Regulatory Frameworks of Indias Industrial Policies Regulatory Frameworks of Indias Industrial Policies CHAPTER 3 THE REGULATORY FRAMEWORK 3.1 INTRODUCTION: THE PARADIGM SHIFT The industrial policy pursued in India for the first four decades after independence was based on the socialist school of thought that India embraced, partly to alienate itself from the colonial past and more so owing to the obvious achievements of the socialist movement in the post world-war two period. Thus, through a Resolution dated April 6, 1948 the government set out the policy to be pursued in the Industrial field, wherein to secure continuous increase in production and equitable distribution, the country opted for a centrally planned development strategy, with the state playing a major role. For this purpose, the National Planning Commission was established for planning, co-ordination, integration of national economic activity and to formulate programmes of development and to secure their execution. On October 30, 1956, at the beginning of the Second Five Year Plan, the Government adopted a New Industrial Policy Resolution, which reiterated the above objective and classified industries into three categories as follows: Schedule A were those industries whose future development was the exclusive responsibility of the state. Schedule B consisted of industries which would be progressively state-owned, wherein the state would take initiative in establishing new undertakings and private enterprise would be expected to supplement the effort of the state. Schedule C included all remaining industries whose further development was left to the initiative and enterprise of the private sector. This led to the expansion of the public sector in India, whose share in GDP increased from 9.91% in 1960-61 to 27.12% in 1988-89. However, the cause of concern was that a large number of public sector enterprises particularly the Non-departmental non-financial enterprises were making losses and had to be subsidized. Industrial undertakings in the private sector were subject to control and regulation like the Industries Development and Regulation (IDR) Act (1951) and were expected to align their business strategy and goals with the broad economic and social objectives of the State. The IDR vested with the government necessary powers to regulate and control existing and future undertakings in a number of specified industries. A license was necessary for establishing a new undertaking, taking up the manufacture of a new article in an existing unit, effecting substantial expansion, carrying on the business of an existing undertaking and changing the location of an existing unit. A Letter of Intent (LOI) was issued for sectors/activities under compulsory license under the IDR Act, 1951. The LOI was converted into Industrial License on completion of specified formalities. Further, to prevent monopolies and concentration of economic power in the hands of private sector, in 1969, the Monopoly and Restrictive Trade Practices Act (MRTP) was enacted. All these regulations and controls led to increase in bureaucracy, inhibiting enterprise and industry. Also, given the state of the economy with limited resources, scarce capital and vast population base, the development ideology revolved around the notion of conservation and optimum utilization of capital so as to maximize employment (and not necessarily output). Deployment of new capital was strictly controlled and regulated so as to meet social needs and maximize employment. Further, once the capital was committed to any activity and a certain employment was created, it was protected at any cost even if it was non-viable in the face of market forces. Labour intensive technology and employment generation were also the rationale behind the initial advocacy of small-scale industry. However, later, when it was realized that modern small scale industry was not necessarily labour intensive, the argument turned to encouraging the entry of new entrepreneurs in industry. A range of products were reserved for exclusive production in the small-scale sector, eliminating potential competition from medium and large firms. There were no pressures on the smaller firms to improve technology, update production techniques or reduce cost modernize or specialize. There was an inherent disincentive to grow beyond a certain size, if they had to continue production of a reserved product. Thus economies of scale could not be leveraged and market distortions were widespread. Until 1991, the guiding principle of Indias industrial policy was self reliance, which focused on indigenous production and reduced dependence on foreign capital and foreign technology irrespective of the cost and/or quality. This did lead to the creation of a large industrial base, diversification of products, ownership and location. But in the absence of domestic competition, export rivalry and competition of imports, industry grew with a lack of cost and quality consciousness, leading to slow growth, increasing deficits and debt and finally the crisis in 1991 which paved the way for economic reforms in India. Some of the components of the reform package include: Reforms in Industrial Policies in terms of delicensing of most industries and deregulation of industries earlier monopolized by the public sector Liberalisation of foreign trade through steady reduction in tariffs and freeing up of the foreign investment limits in most industries combined with measures to attract FDI into the country Macroeconomic stabilization through substantial reduction in fiscal deficits and governments draft on the private sectors savings Other reforms including those in taxation, financial sector, insurance sector, public sector, etc. During the last decade and half, these reforms have reoriented India from a slow-paced, centrally directed and highly controlled economy to a strong, vibrant, fast-growing and market-friendly one. There now exists an internationally competitive private sector with varied scope for collaborations and joint ventures and a facilitating regulatory framework that is evolving to match the international standards. This Chapter seeks to give an overview of the broad framework of regulations governing business in India particularly in the context of: Industrial Policy Foreign Investment Policy Anti Trust Regulations Labour Laws Protection of Intellectual Property Rights Other Economic Laws Procedures 3.2 INDUSTRIAL POLICY The Industrial Policy Resolution 1956, substantially augmented through the Statement of Industrial Policy 1991 and subsequent announcements which liberalized the economy provides the basic framework for the overall industrial policy of the Government of India. 3.2.1 Industrial Licensing The requirement of obtaining an industrial license for manufacturing has been abolished for all projects except for a short list of industries connected with security and strategic concerns (reserved for public sector), social reasons, hazardous chemicals and overriding environmental concerns. The list of items requiring compulsory licensing is reviewed on an ongoing basis. The stage of LOI has been dispensed with for all sectors/activities except for items reserved for SSI sector and an Industrial License is now issued without going through the stage of LOI. The following industries require compulsory license:- Alcoholics drinks Cigarettes and tobacco products Electronic, aerospace and defense equipment Explosives Hazardous chemicals such as hydrocyanic acid, phosgene, isocynates and di-isocynates of hydro carbon and derivatives, etc. Non-small-scale industrial units or units in which foreign equity is more than 24% require license to manufacture items reserved from small scale sector. All other industries are exempt from licensing and no industrial approval is required. Entrepreneurs are only required to file an Industrial Entrepreneurs Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA), providing information on new projects and substantial expansions. There are however, certain locational restrictions in metropolitan areas. No industrial approval is required from the Government for locations outside 25 kms of the periphery of cities having a population of more than one million except for those industries where industrial licensing is compulsory. Non-polluting industries such as electronics, computer software and printing can be located within 25 kms of the periphery of cities with more than one million population. Permission to other industries is granted in such locations only if they are located in an industrial area so designated prior to 1991. Zoning and Land Use Regulations as well as Environmental Legislations have to be followed. Appropriate incentives and investments in enabling infrastructure are provided to promote dispersal of industry particularly to the rural and backward areas and to reduce congestion in cities. Recently, the Government approved a package of fiscal incentives and other concessions for the North East Region namely the North East Industrial and Investment Promotion Policy (NEIIPP), 2007, effective from 1.4.2007. Also, under the broad framework of the national industrial policy, different Indian States announce their respective Industrial Policies periodically, which highlight the areas in which the State would focus on and provide incentives to attract investment, the various sector location specific schemes offered to private investors, the plans for development of enabling infrastructure, opportunities for public-private-partnership, etc. 3.2.2 Policies for Privatisation The post 1991 liberalisation process brought with it deregulation of trade and industry, dismantling of bureaucratic controls, technological development and financial sector reforms. Privatising some of the activities which heretofore were the exclusive domain of public sector also became part of this initiative to boost enterprise and professional management of resources to enhance economic growth and competitiveness. Revolutionary policy measures were undertaken to encourage private participation in sectors like telecom, information broadcasting, power, ports, airports, banking, etc. Over the years, the government has reduced the number of industries reserved for the public sector to the two which are deemed significant from security and strategic perspective, viz., Atomic energy and Railways. However, in the last few years the railways announced opening up of its containerized operations to other private and public sector companies, thereby ending the monopoly enjoyed by the Container Corporation of India (CONCOR). Interested companies could avail of the route-specific or all-India permission by paying a registration fee which is valid for an operation period of 20 years (further extendable by 10 years). There is freedom to decide the tariffs to be charged to the customers for various services and also the exit norms involve transfer of the operational writes to another eligible operator with the railway approval. 3.2.3 Policies for Small Scale Sector The provisions in the Industrial Policy Statement of 1991 and the subsequent policies are aimed at supporting the Small Scale Industries (SSI) sector though various measures and packages focusing not only on policy of reservation but also on price and purchase preference policy for marketing SSI products, credit and fiscal support to SSIs, support for cluster based development, technology upgradation, etc. The IDR Act 1951 provided for the reservation of items for exclusive manufacture in SSI sector primarily with the objectives of increasing production of consumer goods in the small scale sector and widening of employment opportunities. In 1967, 47 items were reserved for exclusive manufacture in the small scale sector. This number was increased to 836 items in 1989. However, since 1997, a large number of items were dereserved from the list in the phased manner. As of March 2007, only 114 items are reserved for exclusive manufacture in the small scale sector. In addition to the policy of reservation, the Government has initiated various measures offering support for Cluster based Development, Technologies and Quality Upgradation, Marketing, Entrepreneurial and Managerial Development and Schemes for Empowerment of Women Owned Enterprises. Further, with a view to facilitate the development of micro, small and medium enterprises (MSME), the Micro, Small and Medium Enterprises Act 2006, was implemented. The Act provides the new classification of each category of enterprises. As per the Act, MSME are defined as follows: in the case of the enterprise engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the IDR Act 1951 a micro enterprise is the one where the investment in plant and machinery does not exceed twenty five lakh rupees. a small enterprise is one where the investment in plant and machinery is more than twenty five lakh rupees but does not exceed five crore rupees; or a medium enterprise is one in which the investment in plant and machinery is more than five crore rupees but does not exceed ten crore rupees; in the case of enterprises engaged in providing or rendering of services a micro enterprise is one where the investment in equipment does not exceed ten lakh rupees; a small enterprise is one in which the investment in equipment is more than ten lakh rupees but does not exceed two crore rupees; or a medium enterprise is where the investment in equipment is more than two crore rupees but does not exceed five crore rupees In February 2007, the Government announced a package for promotion of the SSI sector as follows: Credit Support: The package aims at increasing the number of beneficiaries of the credit provided by the Small Industries Development Bank of India (SIDBI) by 50 lakhs, over five years beginning from 2006-07. For this purpose, the Government has provided grant to SIDBI to augment its Portfolio Risk Fund. Besides, in an attempt to increase demand-based small loans to micro enterprise, the Government announced a provision of grant to SIDBI to create a Risk Capital Fund (as a pilot scheme in 2006-07). The eligible loan limit under the Credit Guarantee Fund Scheme has been raised to Rs. 50 lakh. The credit guarantee cover has also been raised from 75% to 80% for micro enterprises for loans upto Rs. 5 lakhs. Fiscal support: The Government has increased the General Excise Exemption (GEE) limit from Rs. 100 lakh to Rs. 150 lakhs since April 2007. It further proposes to examine the eligibility of extending the time limit for payment of excise duty by micro and small enterprises; and extending the GEE benefits to small enterprises on their graduation to medium enterprises for a limited period. 3.3 FOREIGN INVESTMENT POLICY In recognition of the importance of of foreign direct investment as an instrument of technology transfer, augmentation of foreign exchange reserves and globalization of the Indian economy, the Government of India revamped its foreign investment policy as part of the reform process. 3.3.1 Foreign Direct Investment Foreign Direct Investment (FDI) regime in India was increasingly liberalized during 1990s (more particularly post 1996) and today India has the most liberal and transparent policies on FDI among the emerging economies, with restrictions on foreign investments being removed and procedures simplified. Some of the prominent features of the FDI policy in India are elucidated below: The approval mechanism for FDI has a two tier system. Under the automatic approval route, companies can issue shares and receive inward remittances for investment in areas identified and upto the limits of foreign equity prescribed, with a reporting requirement, within a period of 30 days. In these sectors, investment could be made without prior approval of the central government. Although, in case of the automatic route, it is no longer necessary to obtain the in principle permission from Reserve bank of India (RBI) before receiving overseas investment or for issuing shares to foreign investors, the company, would, however, have to make a report to the RBI within 30 days after issue of shares to the foreign investors. Proposals for investment in public sector units and also for Special Economic Zones (SEZs) / Export Oriented Units (EOUs)/ Export Processing Zones (EPZs) qualify for automatic approval subject to satisfaction of certain prescribed sector specific parameters. FDI upto 100% is permitted under the automatic route for setting up Industrial Parks. Proposals for FDI/NRI investment in Electronic Hardware Technology Park (EHTP) and Software Technology Park (STP) Units are eligible for approval under the automatic route, except for those requiring prior approval of the Central Government (as discussed below). FDI in sectors that are not covered under the automatic route requires prior approval of the Central Government. Activities/sectors require prior approval of the Government for FDI in the following circumstances:- Activities/items that require an industrial license Proposals in which the foreign collaborator has an existing financial/technical collaboration in India in the same field (except in IT and mining sector) All proposals falling outside notified sectoral policy/CAPS Proposals in which more than 24% foreign equity is proposed to be inducted for manufacture of items reserved for the Small Scale Sector The approval is granted by Foreign Investment Promotion Board (FIPB), which is a specially empowered board set up for the purpose, chaired by the Secretary, Union Ministry of Finance. Proposals for FDI could be sent to the FIPB Unit, Department of Economic Affairs, Ministry of Finance or through any of Indias diplomatic missions abroad. FIPB has the flexibility to examine all proposals in totality, free from predetermined parameters. Recommendations of FIPB regarding all proposals falling in the non-automatic route and involving an investment of Rs.6 billion or less are considered and approved by the Finance Minister. Projects with investment greater than this value are submitted by the FIPB to the Cabinet Committee on Economic Affairs for approval. Necessary regulatory approvals from the state governments and local authorities for construction of building, water, environmental clearance, etc. need to be acquired after the grant of approval for FDI by FIPB or for the sectors falling under automatic route. Single window clearance facilities and investor escort services are available in various states to simplify the approval process for new ventures. Decisions on all foreign investments are usually taken within 30 days of submitting the application. In cases where original investment is made in convertible foreign exchange, free repatriation of capital investment and profits thereon is permitted. Sectors prohibited for FDI include: Retail trading (except Single Brand Product retailing) Atomic Energy Lottery Business Gambling and Betting 3.3.1.1 Investment in SEZs In order to enhance competitiveness of Indian exports and attract investment in these sectors, Indias Foreign Trade Policy promotes the setting up of SEZs and thus provides for a hassle-free environment with world-class institutional and physical infrastructure and supporting logistics. Some of the existing EPZs/FTZs have also been converted into SEZs. All the State Governments have been advised to give priority to waste and barren land for acquisition purposes. According to the total Waste Land area surveyed by the Ministry of Forest, 5,52,692.26 hectares was available for such purpose. FDI upto 100% is permitted under the automatic route for setting up of SEZ. Proposals not covered under automatic route require approval from FIPB. The policy provides for setting up of SEZ in the public, private or joint sectors or by state governments. These could be product specific or multi-product SEZs. Designated duty-free enclaves are treated as foreign territory for trade operations and duties and tariffs, and duty-free goods need to be utilised within the approved period. The permitted activities cover an array of manufacturing and services like production, processing, assembling, reconditioning, re-engineering, packaging, trading, etc. Proposals for setting up units in SEZ, other than those requiring industrial license are approved by the Development Commissioner (DC). The approval for those requiring industrial license is granted by the DC after receiving clearance from the Board of Approval. The Letter of Permission (LOP)/Letter of Intent (LOI) issued by the DC is construed as a license for all purposes, including procurement of raw material and consumables either directly or through a canalising agency. The LOP/LOI needs to specify the items of manufacture/service activity, annual capacity, projected annual export for the first year in dollar terms, Net Foreign Exchange Earnings (NFE), limitations, if any, regarding sale of finished goods, by products and rejects in the DTA and such other matter as may be necessary and also impose such conditions as may be required. According to the policy, SEZ units have to be positive net foreign exchange earners and the performance of these units would be monitored by a unit approval committee consisting of the DC and the Customs Authority. 3.3.2 Entry Options for Foreign Investors A foreign company has the option to set up business operations in India as an Incorporated Entity or as an Unincorporated Entity. An Incorporated Entity would be a company registered under Companies Act, 1956, through joint ventures or wholly owned subsidiaries. Foreign equity in such Indian companies can be up to 100% depending on the requirements of the investor, subject to any equity caps prescribed in respect of area of activities under the FDI policy. Funding could be via equity, debt (both foreign and local) and internal accruals. For registration and incorporation, an application has to be filed with the Registrar of Companies (ROC). Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other domestic Indian companies. Companies in India can be incorporated as a private company or a public company. In comparison with branch and liaison offices (discussed subsequently), a subsidiary company provides maximum flexibility for conducting business in India. However, the exit procedure norms of such companies are relatively more cumbersome. An Unincorporated Entity could be Liaison Office/Representative Office or Project Office or Branch Office. Such offices can undertake activities permitted under the Foreign Exchange Management (Establishment in India of Branch Office of other place of business) Regulations, 2000. They are also governed by the Companies Act 1956, which contains special provisions for regulating such entities. 3.3.2.1 Liaison Office/Representative Office The role of a liaison office is primarily to: Collect information about the market Disseminate information about the company and its products to prospective Indian customers Promote exports/imports from/to India Facilitate technical collaboration between parent company and companies in India A liaison office cannot undertake any commercial activity directly or indirectly and cannot, therefore, earn any income in India. Approval for establishing a liaison office in India is granted by the RBI. 3.3.2.2 Project Office Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI. Since a Project Office is an extension of the foreign incorporation in India, it is taxed at the rate applicable to foreign corporations. 3.3.2.3 Branch Office Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in India for the following purposes : Export/Import of goods Rendering professional or consultancy services Carrying out research work, in which the parent company is engaged. Promoting technical or financial collaborations between Indian companies and parent or overseas group company Representing the parent company in India and acting as buying/ selling agents in India Rendering services in Information Technology and development of software in India Rendering technical support to the products supplied by the parent/ group companies Foreign airline/shipping company Branch Offices established with the approval of RBI, are allowed to remit outside India profit of the branch net of applicable taxes (which are at rates applicable to foreign companies) however, subject to RBI guidelines. Permission for setting up branch offices is granted by the RBI. Branch Offices could also be on stand alone basis in SEZ. Such Branch Offices would be isolated and restricted to the SEZ alone and no business activity/transaction would be allowed outside the SEZs in India, which include branches/subsidiaries of its parent office in India. No approval shall be necessary from RBI for a company to establish a branch/unit in SEZs to undertake manufacturing and service activities, subject to the conditions that: they function in sectors in which 100% FDI is permitted they comply with part XI of the Companys Act (Section 592 to 602) function on a stand alone basis in the event of winding up of business and for remittance of winding-up proceeds, the branch should approach an authorized dealer in foreign exchange in the with documents required as per FEMA. A Branch Office provides the advantage of ease in operations and an uncomplicated closure. However, since the operations are strictly regulated by exchange control guidelines, a Branch may not provide a foreign corporation with most optimum structure for its expansion/diversification plans. Box 3.1 Investment in a firm or a Proprietary Concern by NRIs A Non-Resident Indian or a Person of Indian Origin (PIO) resident outside India may invest by way of contribution to the capital of a firm or a proprietary concern in India on non-repatriation basis provided: i) Amount is invested by inward remittance or out of NRE/FCNR/NRO account maintained with Authorised Dealers of RBI (AD) ii) The firm or proprietary concern is not engaged in any agricultural/plantation or real estate business i.e. dealing in land and immovable property with a view to earning profit or earning income there from. iii) Amount invested shall not be eligible for repatriation outside India. NRIs/PIO may invest in sole proprietorship concerns/ partnership firms with repatriation benefits with the approval of Department of Economic Affairs, Government of India /RBI. Box 3.2 Investment in a firm or a Proprietary Concern by Other than NRIs No person resident outside India other than NRIs/PIO shall make any investment by way of contribution to the capital of a firm or a proprietorship concern or any association of persons in India. The RBI may, on an application made to it, permit a person resident outside India to make such investment subject to such terms and conditions as may be considered necessary. 3.3.3 Financing Options for Corporates Companies registered in India can raise finances through Share Capital or Debentures and Borrowings. 3.3.3.1 Share Capital The Companies Act, 1956 allows for two kinds of share capital, viz., Preference share capital (preferred stock) and Equity share capital (with/without voting rights). Apart from this, private companies which are not subsidiaries of public company have the option of raising funds through Venture Capital. The issue of shares to the public is governed by the guidelines issued by the Securities Exchange Board of India (SEBI) the body that regulates and oversees the functioning of Indian Stock markets and the RBI. A company issuing shares or debentures has to comply with SEBI disclosure requirements with regards to its prospectus. The prospectus has to be approved by the stock exchange and scrutinized by SEBI and then filed with the Registrar of Companies. Indian companies having foreign investment approval through FIPB route do not require any further clearance from RBI for receiving inward remittance and issue of shares to the foreign investors. The companies are required to notify the concerned Regional office of the RBI of receipt of inward remittances within 30 days of such receipt and within 30 days of issue of shares to the foreign investors or NRIs. Equity participation by international financial institutions such as ADB, IFC, CDC, DEG, etc., in domestic companies is permitted through automatic route, subject to SEBI/RBI regulations and sector specific cap on FDI. In all other cases a company may issue shares as per the RBI regulations. Other relevant guidelines of SEBI and RBI, including the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, wherever applicable, would need to be followed. The Companies Act does not specify the nominal value of shares. According to RBI/SEBI Guidelines, in case of listed companies, the issue price shall be either at the ave