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  Copper in Search of AshlandsAuthor(s): S. R. TikekarReviewed work(s):Source: Economic and Political Weekly, Vol. 3, No. 3 (Jan. 20, 1968), pp. 185-186Published by: Economic and Political Weekly Stable URL: http://www.jstor.org/stable/4358146. Accessed: 25/01/2013 17:33 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new formsof scholarship. For more information about JSTOR, please contact support@jstor.org. .  Economic and Political Weekly is collaborating with JSTOR to digitize, preserve and extend access to  Economic and Political Weekly. http://www.jstor.org This content downloaded on Fri, 25 Jan 2013 17:33:16 PMAll use subject toJSTOR Terms and Conditions  ECONOMICANDPOLITICALWEEKLYJanuary20, 1968duction,salesand despatchesofHMThavegoneup.Itnow producesarangeofover17 familiesofstandardmachinetoolsandasteadilywideningrangeof specialpurposemachinetools.Thattherangeofdiversificationisstilllimitedis,however,clearlyindicatedbythecontinuinglargevolumeofimports.Theimpactoftherecessionhasbeenfeltnotby salesbut byprofits.Profit-abilityin1966-67hasbeenhalvedascomparedwith 1964-65,thoughitisfractionallyhigherthanin 1965-66.Theproportionofcostofsalestosalleshasincreasedsteadilyandtheturn-overofcapitalhasbeendeclining.Stockoffinishedgoodsandwork-in-progresshavealsoincreasedasaproportionofsales.Atthe beginningoftheThirdPlati,HMThada schemetosetuponenewmachinetoolplanteveryyear.StartingwithonlyoneplantatBangaloreduringtheperiod1953to1960,itwentontoaddthe secondBangaloreplantin1961,Pinjorein1963,Kalamasseryin1964and Hyderabadin1966.Italsosetupa watchfactoryatBangalorein1962.The recessionhas dampenedthisstraightlineexpansion;plansfordiupli.catingPinjoreandKalamasserylhavebeendeferred.Instead,theaccentnowisondiversification.Foundriesareex-pectedtobecommissionedinKalamas-seryandHyderabadshortly.Thewatchfactoryis beingexpandedandanewcompanyisbeingform'edincollabora-tionwithVersonofUSforthemanufactureofmediumandheavypressesforautomobleandotherengineeringindustries.AnothercompanywiththeparticipationofAlbertofWestGermanywill mamnfacturecylin-derletterpressesandoffsetpressesforsingleandmulti-colourprinting.Thiswillrepresentthe country'sfirstventureinlargescalemanufactureofprintingmachinery,whichhasmadeverylittleprogresssofar. DodgeintoFiat REMOVALofcontrolonthedistribu-tionandpricesofcommercialvehiclesis littleconsolationtoPremierAuto-mobiles,whichhasbeenfindingitin-creasinglydifficulttosell Dodgetrucks.ItsproductionintheyeartoJunelastdroppedto3,765trucksfrom6,726intheprecedingyearandinthesubse-quentfourmonthsto817from1,583in thecorrespondingperiodofthepreviousyear.Thriceduring theyear,thecompany had tolayoffabotit1,000workersfora totalperiod of10weeks.Tomakeits trucksmorepopu-lar,thecompanyhasintroduced anewhigh-poweredengineandalsointendstomakecertainchanges insheetmetalcomponents.PartoftheidlecapacityoftheplanthasbeenutilisedforthemanufactureofFiatcarswhosepro-ductionduring1966-67rose to8,661against5,739inthepreviousyearandinthefourmonthsendedOctoberlastto3,724against2,471inthesameperiodofthepreviousyear.Carpro-ductionisexpectedtorisestillfuirtherbuttheprice isstillfixedatan un-reasonablylow level.PALhopesthatits Fiat600mayfindacceptanceintheelusivesearchfora smallcar .It is afour-seater, rear-enginecarwithamaximumspeed of70milesanhour andfuelconsumptioiiof45-50milespergallon.Commcnt-ing onitsprice,chairmanLalchandHirachandsays thata car ofthistypecosts Rs7,700 to8,100inforeigncountriesandthatinIndiaitwouldcostmoreowing tothelowvolumeofproductionandthehighcost ofimportedmaterialsandequipment.Sincethepricelimitfor the smallcar (whichwassrcinallyfixedat Rs6,000)is Rs7,000,PAL, haslittlechance ofgettingFiat 600acceptedbyGovern-ment.PAL'sresultsfor1966-67 are dis-appointing.Nosurplus isavailablefordepreciationanddevelopment re-bate;arrearsontheseaccounts cometoRs1.67crores andRs89lakhs,respectively.The6 percentdividenddeclared for1965-66waschallengedbyamemberintheCourtand themnat-terissubjudice.USAIDhasinformnedthecompanythatthedivid nddistri-bution ofRs45lakhswouldviolatetheconditionsoftheloangrantedbyitandthatthecompanyshould notpayadividend inexcessofRs 19lakhs.Forpaymentofthisamount,too,ithasfirsttoobtainthewritten consentoftheIndianguarantorbank. LETTERSTOEDITOR CopperinSearchofAshlands WE shouldbegratefultoKVSubrah-manyam fordrawing attention tothecoppermuddlq that theNationalMineralDevelopmentCorporationhaslandeditself in( CopperinSearchofAshlands ,November11).TheNMDC'sKhetri-Kolihanprojectwhichisexpectedtosupply31,000tonnesofcopperperannum, islikelytoendupas awhiteelephant.ThesrcinalestimateofcapitalcostofRs24.44croreshasnowsoaredtoRs.78.52crores.Thisis aseriousmatterandMembersofParliamentwoulddowelltolookintotheaffairsofthisprojectclosely.Alongwiththerise intotalcost,theforeignexchangecompo.nentmustalsohavegoneupsubstan-tially.TheAnnualReportfor1965-66ontheWorkingofCommercialandIndustrialUndertakingsoftheUnionGovernmentis,however, silenton theactualamountofforeignexchangere-quiredfortheproject.TheforeignexchangecomponentwasestimatedatRs13croresintheReportfor1964-65,butthenthetotalcostwasexpectedtobeonlyaboutRs38crores.Produc-tionisnowscheduledtocommencein1969-70,butthedatehasbeenpushedforwardeveryyear.TheNMDC'scredentialsforunder-takingtheprojectarefarfromsatis-factory,ifoneistojudgebyitsperformancesofar.IthastworichironoreminesatBailadilaandKiribluru.Bailadilaisbeingdevelopedonthebasisof acontractforsupplying 4 mil-liontonnes oforeannually toJapanfor15yearsfrom1966.Kiriburu alsohasanassuredofftakeof 2milliontonnesof orefor10years from1964,againbywayofexportstoJapan.But,inspiteoftheassuredmarket,theperformanceofBailadilaandKiriburumineshas beendismal.Withtotalcapitalemployedof Rs 9crores,the 185 This content downloaded on Fri, 25 Jan 2013 17:33:16 PMAll use subject toJSTOR Terms and Conditions  January20, 1968ECONOMICANDPOLITICALWEEKLYNMDCmadea loss ofalmostRs 70lakhs in1965-66.Inthe circumstances, one wonderswhethera projectofthe sizeandtechnical sophisticationof the Khetri-Kolihanschemeis notbeyondthe NMDC's capacityto shoulder.BombayDecember,11S R I 1KEKAR AIRCommercials SO now we canhear LIC on AIR's'Vividh Bharati'programme askingpeople to takeout a life insurancepolicyand the StateBank askingthenito open accountswith it in company,of course, with theheadachepillsandcough drops ubiquitousin advertisingin allits forms all over theworld.And as commercialsgo, the AIR com.mercials are no moreunintelligent thanthoseon RadioCeylon or on broad-castingservices in other countriesandits ditties, whetherextolling State-ownedlifeinsuranceor privately-ownedthroatpastils, are nomore jarring or sillythanditties onother commercialservices.Theunfortunatepart isthat theIndian public has,as in most products,in radio advertisingas well the worstof boththe worlds:it pays a tax andyet gets a shoddyproduct. In mostcountries,radio advertisingisin lieuof radio licence fees;we have both!Itis reported that,encouragedby itssuccess, the Governmentproposes toextend advertisingto other stations ofAIR.Ifthisistobedone,two changesmnaybeconsidered.AIRnow doesnotpermitsponsored programmes,sothatweareleftto themediocrityofAIR,withthe commercialswedgedin betweenprogrammes.However, sponsoredpro-grammeslikethatof CluettandPeabody (Sanforised)or,in shortfilms,BurmahShell'sdocumentaries,can beinterestingandintelligent.TheGovern-mentshouldconsider their introductiononAIRonaselective basis.Secondly,AIRis weakonrelaying publiccon-certs.TheGovernment should takeagreaterinterest in thisfield toimprovethequalityof itsprogrammes.Finally,while 'Vividh Bharati'servespopularmusic,there is no similarpro-grammefor continuouslyrelayingclassical music.Inthe USA, almost allmajor cities have the 'good musicstations' which relay classical music.Should not AIR use commercials tofinance such programmesinsteadofonlyto bolsterupexistingstationsandprogrammes?BombayDecember,15 PMI CAPITALVIEW TheGreatConspiracy Romesh Thapar IFtheHyderabadsessionof theCon-gresspartyhasdoneanything,ithasbroughtinltosharp focusthekindofpolitickingwhichislikelytodominateour affairsifwecontinuetotoleratemanipulationand opportunismateverylevel.It isnota patternforbehaviourconfinedto Congressmenalone.Aspateofconferences,held andabouittobeheldbyso-calledRightandLeft formations,all seemtobedesign-ed tounderlinethe unprincipledap-proachwhateveritsverbalrationale.Lohia'sleaderlesssocialists,determinedto agitatefor thesakeofagitating,thecorruptanddividedJan Sangh,tooanxiousto bethe revanchistunifiersofthesub-continent,the fuddledandmuddledCPls,lostinthemazeofcaste,classandpower,andtheSwa-tanitras,free-bootingas always,arethesorryalternativesto thedecadentCon-gress.Nowondernothingmoves.It isironicthatthecommunistandsocialistpartiesshouldbe sodisturbedby thetoughtalkatHyderabadandbythereturnoftheoldCongressdadaswhohadbeenwrittenoffaspoliticallyirrelevant.Anyintelligentsurveyofthepost-electionmonthswouldindicatethattheopportunistandthoroughlyunprincipledanti-CongresscompactsbetweenthemostcommittedelementsoftheRightandLefthavemanagedtosparkahawk-likeresponseintheAICC.Thisresponsehasbeenslowin developing,but theHyderabaddeliberationssuggestthatthosewhowere fightingfora moreliberalviewofoppositiontacticshaveeitherbeensilencedorconvertedtoapolicyofcon-frontation.Presumably,IndiraGandhihastakennoteofthisnewmoodandhasdecidedforthemomentto let the Congresspartyflexitsmuscles.TherewouldbelogicinthisapproachiftheAICChadalsohammeredoutanaction-orientedprogrammeto restoretheparty'sshattered positioninthecoun-try.But therewasnosuchattempt.Inthiskindof state,itis doubtfuiwhetherthePrimeMinisterwillbeableto controlthetrendswhich havebeenlet looseandwhichcan onlycreateseriouscollisionswith politicaloppo-nents.Manypertinentquestionsarebeingiasked inpoliticalcirclesintheCapital.Has thePrimeMinisterdecidedthat itis no longerpossibleto forgerationaldecisionswhenthegovernmentisatthe mercyof tinyfactionswithintheparty,factionswhichthreatenfloor-crossingswheneversomethingtangibleis attempted?Have thetacticsofhercolleagues - particularlyMorarjiDesai, YBChavanandJagjivanRam--con.- vincedIndiraGandhithatshe isnotable atthemomentto pushherviewsirrespectiveof theconsequencestopoii-tical stabilityatthe Centre?The recentevents inBengalandthelanguageagitationholdmany lessons.Irue,IndiraGandhihasalwaysreliedon her capacitytooutmanoeuvreher opponentsin the party.Shehasshowngreatskilliri thisexhaustinggame,but victoryhasneverbeenhersentirely.Invariably,the opponentshavebeen abletorecoverlostgroundandtohitback.Maybe,theinstru-mentssheusesforthepoliticking--men whoarenewtothegameandinclinedto beover-ambitious-arenot uptothe taskandveryoftencreatetheopeningsforcounter-attacks.May be,shehasalsoremainedratheralooffrom necessaryinvolvementswithinthepartyandhasovervaluedtheneedfornationalacceptabilitywhichcutsacrosspoliticalboundaries.Mlaybe,intheprocess,shehasper-mittedherownimageand hercom-mitmentstogettoo diffused - anever<presentriskinthe businessofcon-sensuspoliticsand muchmore soinamulti-partybattle forpower. 186 This content downloaded on Fri, 25 Jan 2013 17:33:16 PMAll use subject toJSTOR Terms and Conditions
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