Archive for March 25th, 2015

Bengaluru municipality’s slogan — Dig it, widen/deepen it, forget it

March 25, 2015

Once Hero Honda came with this memorable ad slogan – Fill it, Shut it, forget it. The idea was to communicate the fuel efficiency of the motorcycle produced by the company. It was a huge hit with the bikers.

Taking inspiration, Bangalore Municipal Corporation (Brahat Bangalore Mahanagara Palike) has started its own slogan – Dig it, widen/deepen it, forget it. They could have taken inspiration from Nike and say Just dig it. But choosing HH was more Indian and gives a deeper signal as it is more than digging (deepen and forgetting is as crucial).

I mean it is amazing how BBMPO never tires to keep digging the old roads, newly laid roads, already dug roads, pavements etc. Just name it and they have managed to dig it. They just don’t dig them but create craters of sorts. Most of the time these craters are at critical spots like junctions and on really busy roads, disrupting everything. Once these roads are dug they forget about it and becomes a pool of dirty and stinking water. Suddenly someone will complain and remember, they will do a mess of filling the crater. By the time they do it, it is time redigging it again.

Worst is there is hardly any sign on the road to indicate that a crater has been created and one just ends up taking a free dive into the pool and enjoy the swim. At times they put a tree/bush on the site indicating the ditch which is like so funny. What times are they living in.

The entire mess BBMP pushes onto its citizens is appalling to say the least. It is like fighting a war everyday driving on the roads. You never know where you are going to land. If you cannot do good, atleast minimise harm..

Needless to say, but all this madness leads to several diseases and infections. Children are the biggest sufferers of this but no one really cares. Just garbage and carelessness everywhere. I mean it is so sorry, that a child actually wrote to the Bangalore commissioner — ‘Mr Commissioner, can you please save me? She was recovering from her second Dengue attack in 20 months!

And we should remember. This was India’s smart city, full of smart people. The sheer decline of the city is a result of really bad policy and complete ignorance and nonchalance. A terrible case of how to ruin what was once a pensioner’s paradise..

History of water supply in Mumbai and BMC’s bizarre policy

March 25, 2015

These are the sort of issues we need a much deeper understanding. Instead of obsessing over MPC, we need city wise WPCs (Water Policy Committees) informing citizens over what is going on. India’s water crisis is matter of time and we need to be really serious about it.

Here is a insightful article on Mumbai’s water supply and how policy makes a mess of things as necessary and vital as water:


How Zee TV started and changed Indian TV history..

March 25, 2015

Another great article from BS staff. It is a paper which believes in Indian business and keeps coming up with these great stories:


India’s yield curve stretches further.. GoI to issue 40 year bonds

March 25, 2015

This is an interesting development. Many don’t know how active and vibrant Indian government bond markets have become over the years. A process which started nearly 25 years ago following the 1991 reforms has moved from one strength to the other.

We have an automated anonymous market just like in equities, a high quality settlement system, vibrant money markets, a nuvation based repo lending in form of CBLO (which Western world is still discussing and struggling), a yield curve from 1 year to 30 year (yes there is illiquidity in many buckets which will even out in due time) etc etc.

The latest is a 40 year bond:

The long-term bonds of 40-year maturity to be auctioned by the central government for the first time in the next financial year are set to grab the attention of insurance companies, pension funds and provident fund players. The current highest maturity is 30 years. These longer tenure bonds will help to develop the yield curve beyond 30 years.

Finance Secretary Rajiv Mehrishi had on Monday said the government would use these 40-year bonds to borrow up to Rs 10,000 crore and the dates were yet to be finalised for the launch. According to the issuance calendar of marketable dated securities for the first half of the financial year (April-September), issued on Monday, for every week beginning April, the Reserve Bank of India (RBI) will auction a 20-year and above security for an amount in the range of Rs 3,000-4,000 crore. The government will borrow Rs 3.6 lakh crore in the first half.

“All insurance companies will be interested in these bonds because almost all of them offer annuity products. In these products, long-dated bonds are required,” said Badrish Kulhalli, head of fixed income at HDFC Life.

There are some concerns over whether there will be any demand for this which os overblown. It is just slated to be around Rs 10,000 cr which is not even a drop in the borrowing ocean. The limit will be increased only gradually.

Should help somewhat in the ever struggling corporate debt market..

Foundation of the American political economy are institutions built with ideas from Adam Smith..

March 25, 2015

Claude Fischer argues that Adam Smith’s ideas suited and fitted foundations of American political economy really well:


Messed up macro..

March 25, 2015

A discerning friend retaliated strongly to yesterday’s post on the confusion amidst econs around Rupee valuation. The reaction was ” Do economists know value of anything? They are a highly overvalued commodity themselves”. 🙂

TO add to the frustration, Robert Skidelsky has a piece on messed up macro:


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