IPL// The cities of Pune and Rajkot will host two new Indian Premier League (IPL) teams. This was decided at an auction last month organised by the Board of Control for Cricket in India (BCCI). The two new city teams will replace Rajasthan Royals (RR) and Chennai Super Kings (CSK), which have been banned from the IPL for two years. The Pune team was bagged by a group led by Kolkata-based businessman Sanjiv Goenka, while the Rajkot team was won by Indian cellphone company Intex. These teams will be part of the IPL for the next two years. When RR and CSK return after the ban, the BCCI will take a decision on the final number of teams. Indian One Day International (ODI) captain M S Dhoni will play for the city of Pune, along with his CSK team mate R Ashwin and R R star Ajinkya Rahane. Suresh Raina (previously with CSK) was the top pick for the Rajkot team along with Ravindra Jadeja and New Zealand captain Brendon McCullum. The next IPL will be played between April 9 and May 29, 2016.
ENVIRONMENT// New Delhi has the worst air quality in the world, and with the winter setting in, cold air is making it difficult for the pollution to escape. With air quality so bad that anyone can get sick by just breathing the dirty air, the government of Delhi has decided to take some drastic steps to improve the city’s air. Starting January 1, 2016, for 15 days, only even number cars will be allowed on the roads on even number dates (such as January 2, 4, 6 and so on), while odd number cars will be allowed on odd number days. The number referred to is the car number plate. Women drivers, those driving with children below 12, CNG cars and a long list of VIPs will not have to follow the odd-even formula to be enforced. Chief Minister Arvind Kejriwal will be an exception in the VIP list. There are around 19 lakh private cars on Delhi’s roads. Thanks to this new plan, around 10 lakh vehicles will go off the roads, which may help reduce the pollution to some extent. Earlier this month, the chief minister had announced he, his ministers and all government officials would follow the odd-even scheme. The government plans to run 6,000 more buses to accommodate the potential spurt in passengers who can't drive their cars on a day.
CALAMITY// On December 1 and 2, Chennai received 345 mm of rainfall. This is more rain than has ever fallen on the city in the past 100 years; in fact, since 1901, according to US space agency NASA. The city was completely flooded with many areas under six to 10 feet of water. Boats, rather than cars, were the only way to get around flooded areas. Power supply was switched off for several days. More than 250 people have died in these floods and property worth crores have been affected.
Weather scientists are saying the EL Nino phenomenon that causes the water of the Pacific Ocean to warm up more than usual is the reason for the extreme amount of rain that Chennai received. But the flooding that hit the city was also caused by a human-made problem. Over the past 15 years, many, many new buildings have come up in the metro, most built over marshlands, river banks and open spaces. These natural features, had they not been disturbed, would have absorbed much of the rain that fell and the floods would not have been that severe. In fact, as was reported by many television channels, Chennai’s entire airport is built over a flood plain. No wonder then that the airport was under several feet of water and no flights could land in the city! Reports suggest that the catastrophe will cost India’s economy an estimated $3 billion (Rs 20,034 crore) in losses.
It was in 2012, just before the London Olympics, that Sania Mirza was the centre of attraction. It was not for her game, however. She was in the news for the way she was being used as “bait” by Leander Paes, Mahesh Bhupathi and the All India Tennis Association (AITA) for their own selfish reasons
Mirza was caught in the middle of a disagreement among three big egos on who she should partner with in the mixed doubles event at the London Olympics. She still had not come into her own yet, but it was a start, when she wrote an open letter accusing all three of them of chauvinism.
Four years on, perhaps it’s time to let bygones be bygones. Plus, now she is the world No 1 in doubles. She has nothing to fear and this time, she is the one who is going to call the shots on who she will partner at the 2016 Rio Olympics.
The 29-year-old Hyderabadi is India’s best hope in tennis to win a medal at Rio, be it doubles or mixed doubles. Who she is going to play alongside is something every tennis fan will be keeping an eye on. But her stature as tennis queen will ensure there will be no repeat of the drama that took place prior to the London Games.
After all, Mirza is not just the darling of Indian tennis. The best players of the sport around the world have good things to say about her. When none other than Roger Federer sings songs in her praise, it is a further vindication and you know she has proven her critics wrong in the past four years.
At present, at the end of a long 11-month season, like any other player, Mirza too is battling with injuries and heartbreaks. But her climb to the world’s top ranking, her feat of becoming the first female tennis player from India to achieve this, will banish all that hurt in one go.
During this time of rest and preparing for the next season, she has tasted golgappas with Roger Federer, Nick Kyrgios and Kristina Mladenovic in the streets of Delhi. Mirza is also busy playing the International Premier Tennis League (IPTL) in different parts of the world.
TOUGH TO REPEAT 2015
Now that she has won two Grand Slam and eight other titles in 2015, Mirza senses the pressure that is on her. Striving hard to better the previous year would be her next big battle, similar to her overcoming her wrist injury after the London Olympics. “Next year, if not better, hopefully, we can equal what we have done. It’s tough to have a better year than 2015. But, who knows what we (with doubles partner Martina Hingis) can do together. It would be great to win another Slam,” said the Indian heartthrob.
It’s not just about the year, however. Mirza feels her entire career has been amazing, with the past few years being especially great. “It so happened that in one year, we have been able to dominate the court. It’s a contribution of many years. The hard work, the sacrifice that has gone in from the family, the faith of the people and the media, everyone who has been with me,” she added.
It was not an easy road for Mirza to achieve this success after turning professional in 2004. She became India’s best in singles soon enough, but it was a hard climb then onwards. She kept working hard without much success and one of the big reasons for her struggle was her frequent injuries. It was her defeat in the final of 2010 Commonwealth Games singles that prompted her to ponder hard about her future. “I probably worked harder than I used to because I was older and my recovery, slower,” she says. It was also the time when she started taking the doubles game seriously.
As she explains, “When I was playing singles, and was always among the top 30 in singles, I was among the top 20 in doubles and was playing a lot of doubles matches. Yet, singles was always a priority for me. And then my body started giving in, which was around mid-2012. That was when I decided to reset my goals.” Mirza had to work really hard probably harder than ever to climb up to this level. “We all did. Not climbing hills but going up stadium stairs, doing hill workouts. It was very normal. Like I said, I work a lot harder now that I have been injured and driven to a point where my career was almost over. But I still need to watch out a little bit because I still have a condition that needs managing.”
DOUBLES LEGACY
India seems to be establishing a legacy in doubles tennis. Many say it is possible only because the top singles players don’t play doubles regularly. But Mirza has an explanation for that, too.
“For men, perhaps, you can say that. But I don’t think you can say that for women,” says Mirza, adding how everyone plays doubles — whether it is the Williams sisters or anyone else. “Besides, I can speak for women’s doubles and say that everyone who was playing or is playing was a top 2030 singles player and I think that is why the women’s doubles is so much more complete in terms of a game,” she says. She’s right — if you take the top 20 women’s doubles players, you will find that at least 15 of them are still playing singles. And the other five-six of them have played singles at the highest level.
Another Hyderabadi sportswoman, badminton star Saina Nehwal, became the No 1 in her sport this year. Mirza feels this is the best time for Indian women to focus on sports as a career, similar to how it was for Chinese women two decades ago. “I feel now is probably the best time we have had in women’s sports. Not just two world number ones in their respective sports, we also have MC Mary Kom who is a five-time world boxing champion. So, I believe this is the start of something good for other sports in India, too. This is how it may all begin,” says Mirza, with a smile.
EXPECTATIONS FROM RIO
As for the selection of partners for next year’s Rio Games, Mirza said it is still too early at this point to make those decisions. “It depends on who is healthy, who is playing well, who is not playing well, which two people get along on the court and which two don’t. It’s just a decision that needs to be made, but I don’t think it needs to be made right now,” she says. With the acumen and a record to call the shots this time, Mirza hopes her elevated status as the top -ranked women’s doubles player will allow her to have her say when decisions are being made in 2016. The decisions this time could be much simpler as Mahesh Bhupathi is focusing on his business interests such as the IPTL. Mirza might have to choose between Rohan Bopanna, currently India’s top men’s doubles player, or Leander Paes, in the mixed doubles. The fact that Bopanna and Mirza have been partnering at the IPTL could well be a hint for the future.
We’ve all heard that bit of “Just one more day”. It could be just one more day to finish a project, or just one more day to complete that long pending assignment, or just one more day before you start getting into shape for that coveted dress.
When I get tired of getting this just one more day bit, I wonder what difference a day can make. But come to think of it, it really can. That, of course, is when that one day is given the importance it deserves.
Recently, I met a woman on my flight to London and we got talking about various things. She often referred to “that precious 86,400 we earn each day”. After hearing her mention it a few times, I asked her what she was referring to. The gracious Brazilian in her 50s smiled enigmatically as she said, “Oh! That, my dear girl, is the amount of seconds God gives us each day. It’s our gift, our earning. And it is completely up to us how well we live those. Do we save them, do we use them well or do we just waste them. It’s a lesson I learnt late in my life but now that I have learnt it I make each one if these seconds special and precious, giving them the importance they deserve.”
The lady, I learnt over the conversation, was headed for a trek to Macchu Picchu, after she will have visited a school friend in London. Her trip to India (which is when I met her on the flight to London) had been a deeply spiritual one. And the upcoming trek was something that she had wanted to do since she was 20 but never could, thanks to studies, then a happening career, which was succeeded by marriage and babies. “Now I want to live each dream,” she added with a smile.
It was a small conversation but one that left a deep impact on me. You get 86,400 seconds in day!? Now that is quite a number, isn’t it?
The conversation also reminded me of the lines from Rudyard Kipling’s famous poem, “If”: If you can fill the unforgiving minute, with sixty seconds’ worth of distance run, yours is the Earth and everything that’s in it.”
And just like that, looking at the clouds and the sunset through my plane window, I had made my New Year resolution — I know I will make every second count, each one of those precious 86,400
What’s your New Year resolution?
CONFERENCE// One couldn’t have asked for a bigger Christmas present. Nearly 200 countries came together in Paris, France, last month to agree on a plan to save Planet Earth by halting climate change. The agreement comes after 20 years of arguments and discussions as everyone around the table realised that the Paris meetings were possibly the last chance they had to solve the problem before it became too big.
What has been agreed on?
At Paris, the world’s countries have agreed to keep the rise in temperature as compared to the time before the Industrial Era below 2 degree Celcius at the very most, and actually work to keep it below 1.5 degree C. Countries will attempt to do it in two ways:
The French, including their President Francois Hollande, worked very hard at making all countries agrees to the deal. India too played an important role — Prime Minister Narendra Modi visited Paris and India made promises to move to cleaner energy sources. The important thing for the future is for countries to keep their promise on cutting levels of CO2 emissions from factories and vehicles. The landmark Paris Agreement on climate change was adopted by 196 countries, committing them to curb global warming to well below two degrees Celsius and outline a roadmap to raise $100 billion annually towards a green fund for developing nations.
BEING AN INDIAN, born and raised in an old colonial state of Assam and then spent over a decade in NCR, I grew up with a fascination towards the West and the life in developed countries. From imported stuff to branded clothes, to western music to outfits, from visiting expats to friends, relatives and whoever traveled for a short stint to India with their bags full of so-called imported items, were looked at with awe and admiration. Many aspired and some made it to these countries and settled there for good. A handful in our known groups returned, too.
I too was no different and my first abroad trip to the UK was one where I went and came back with oodles of stories to tell, photographs to flaunt, and branded stuffs to brag about. Little did I know that it is after all, humans like all of us who live in other places until I started staying in the US.
Until I got married I made more enemies than friends because of my straightforward and blunt nature. I still do, but life mellows you down. Half of the curious set of cousins, old friends and relatives started calling and adding me on Facebook from nowhere just to see who the guy is. Some liked being called my cousin, a friend and what not, just because I stay in the US, as if the US has people who have no problems, and live hassle-free lives. A funny few set of people till date think only their sons and daughters can travel the world, make good money, and have the best of everything. What an irony!
Living in this great country has been a great eye-opener for me, too. It made me realise that no matter where you go, life and its struggles never end. They may be in different forms and all that glitters is definitely not gold. While this country does have an organised way of living, people pay a heavy price in form of taxes and insurance to maintain the same. Buying a pair of glasses or your year’s supply of contact lenses cost you a fortune despite the insurance you pay every month. That is when Indian postal service and USPS, along with your point of contact in India, come to your rescue by making it a better deal.
How much we envied students who would come here to study and would imagine their fun-filled life. How wrong we were and have been, in thinking so. When I listen to my husband’s struggle stories out here while he was studying to get a degree from one of the most prestigious universities in the US, or would say for any student studying here, I only have tears in my eyes and realise how our parents spent on us while we were students.
In India, students who live a life away from parents and those who can afford a basic full education in big cities have no clue how tough it gets for a teenager here the day one grows up to a teen. To pay for one’s own college, work alongside to pay for college tuition and also study in a busy environment to make a career, and then live with the fear of pink slip when one starts working or probably do two to three shift jobs – it’s a real struggle out here. This just reminds me of the guy helping me out at one of the shoes store who saw this netbook in my hand which I was carrying to trade in for a better one. He told his story of how his niece broke his laptop and the lamented the fact that he would not be able to buy another one until next year. I felt like giving my brand new netbook away to him. However, I called up my brother-in-law and arranged for a spare laptop to give him. It reminded me of old days when I bought my first laptop on installments.
The other day I was at the driver’s license centre for my license work and saw a man struggling to get out of his car and also take out his oxygen mask. He had come there to give his road test. I immediately got down the car and, although hesitant not to hurt his self-respect, asked if he needed help. He turned it down with a “No Thanks”. I was left wondering how he has been managing without anyone. For many it is the same story and it makes you so strong from within. The depression rate here is terrible. People can’t do much about it for there is so much to do. Earn a livelihood, no matter how much it snows, or how unwell you are, you got to raise kids, pay the bills, do the grocery, the laundry, the carpet cleaning... And dare you fall sick, a fortune of your paycheck goes in a mere checkup or tests, despite an insurance, mind you. No wonder they split bills in a live-in relationship. Having said that, however, I love the spirit of this country that accommodates people from all corners of this world, is still honest, and love animals and humans, equally. At the same time, I miss my country and things my country has to offer, which I don’t get here. The thought also makes me realise that every place has its own flaws and positive things. What media depicts or people tell may not be entirely true.
I have come to a point where a Coach handbag, or a BMW doesn’t appeal anymore because these are only a few brands we heard of in India back then, and thought whoever has it is the best person to be associated with. After all, diamonds are precious only because we made them such. I doubt anybody is going to check my earrings to check if they are real or fake. I still like to shop, but only for things that are worth its price or if genuinely need it. I haven’t become a saint and haven’t renounced the world but have learnt to donate the extra penny to someone who needs it more.
Come to think of it, “imported” is something that is made in one country with cheap labour and then sold at an exorbitant price by making it a brand in another, by adding some big designer names to it. Ironically, those who slog their behinds to make these products, get only a fraction of the money for their efforts. Even after you own all this or empty the entire section of a store, but if you can’t be true to yourself and do that extra bit for someone in need, you can never be happy. All this will be left behind when we kick the bucket. Jai Hind!
APPLE iPHONE 6S
Arguably one of the best phones to be launched this season, Apple’s latest iPhone is now available at much less than its original selling price. Even though the iPhone is still expensive when compared with other smartphones, you can still save up to Rs 13,500 if you purchase it on Flipkart. The e-retailer is offering the 16GB iPhone 6s for just Rs 48,499, compared to Rs 62,000 which was its price at the time of launch. The larger iPhone 6s Plus is also retailing for just Rs 61,999 as against the launch price of Rs 72,000, letting you save in excess of Rs 10,000, which you can use to shop for accessories or other gadgets.
XENO LEDBAND-COMBO DIGITAL WATCH
This digital watch is now available in purple and brown colours and you can get it for just Rs 299 instead of Rs 2,999 which was its listed price at the time of launch. With a rectangular dial and customisable band options, the watch comes with a six-month guarantee on Flipkart and features variants to suit the needs of men, women, boys and girls.
SONY MP3 PLAYERS
Flipkart is now offering a number of amazing MP3 players at a decent discount. The Sony NWZ-B183F 4 GB MP3 Player is available for Rs 3,634, instead of Rs 3,999, while Captcha AAA Quality Wireless Sports MP3 player can be purchased for only Rs 499 instead of its original price of Rs 999.
TABLETS
It’s a great time to buy tablets that offer larger screens, better performance and battery life, as well as sleek design. A range of tablets from a number of manufacturers are now on offer at great prices. You will now be able to buy the new Micromax Canvas Laptab with Windows 10 for just Rs 9,999, and nVIDIA’s Mi Pad tablet costs the same. You can also get hold of cheaper ones such as HP7 Voice tablet (Rs 5,999), 16GB Xolo Play Tegra tablet (Rs 5,499) and Lenovo S8-50F tablet (Rs 8,999).
PHILIPS DSP2800/ 94 HOME AUDIO SPEAKER
This brilliantly-designed audio speaker is now available for just Rs 2,499, letting you save Rs 4,500 in the process. Available in black models, the speaker sports 23W RMS Output Power as well as a 5-inch woofer.
If you are planning to buy an audio speaker to connect with your desktop or laptop, you can go for Intex IT 880U OS Wired Laptop/ Desktop Speaker, which now costs just Rs 1,099 instead of Rs 1,999.
I LANDED in India to the wailing of YoYo Honey Singh and the rustling of crisp currency notes. Ah, I thought, it’s wedding season in Delhi. The son, who had arrived two weeks earlier and, in a weak moment, offered to pick me up from the airport, was nowhere in sight. I hit the Favourites (yes, I am that kind of fond mum) list on my phone and heard a voice that was definitely half asleep at the other end. “You’re already here?” it croaked. I sighed and prepared for a long wait. So much for warm welcomes.
There was a reason for it, however. There always is, with the son. He’d just got back from a four-day wedding in Goa, where, from the sound of it, he’d spent more time boozing in the hotel pool than actually making use of the new silk kurtas Amma had made him buy.
The son is at that stage of life when he’s constantly at one wedding or the other. He’s older than the husband was when we got married, and younger than both his grandads when they got hitched. For a little boy who had to be dragged forcibly to family weddings, he’s become quite the enthusiastic participant in his friends’ ceremonies. So much so that we’ve temporarily nicknamed him Abdullah — begaani shaadi mein and all that.
For my part, I was entranced by the wedding paraphernalia that was pouring in. The invites were more remarkable for their thickness than their grammatical content in most cases — one inch in height was the thinnest I’ve seen so far. “They’re quite laidback,” was how the son explained the family from which that one came.
The actual invitation cards were the least part of the package. In fact, if you were the hasty kind, you might toss them into the dustbin and not have the slightest inkling of where you were supposed to go and when. The stars of the show were an assortment of mithai that would make Haldiram swoon in envy. Not the best way to go for my waistline, but completely irresistible. Especially the chana dal halwa that came with the last one — mmm!
The flip side of the coin soon made its appearance — and how! We were on a visit to the husband’s side of the family, where, too, wedding invitation cards covered every available surface in the house. It was soon apparent to me that the Ma-in-Law was in ferment. Was it Salman Khan getting off the hook so easily? I wondered. The Ma-in-Law tends to treat world events on par with the neighbour’s dog getting into her garden. Could it be the climate change conference in Paris? Or was it the huge rally the BJP had organised in Jaipur, which was clogging up all the roads?
Uncharacteristically for the Main-Law, I was left wondering for a whole day. Then she cornered me and whispered urgently, “It’s now time He (the son) settled down. He’s earning well and He is of the right age. Does He have a girlfriend?”
I was too shell-shocked to do more than shake my head. Negative: no girlfriend in sight. The son was currently in one of his rare girl-free periods, but I saw little point in enlightening her.
“Then you find Him a girl.” Or tell me, I’ll find the perfect bride, the threat hung unsaid between us.
To tell the truth, this was not the first time that the son and marriage have come up in the same sentence. I have been getting proposals ever since he passed out of a premier law school in the country and landed a job in a wellknown management consultancy. His itinerant career after that slowed down the rush a bit, but it picked up again once he began working in London. Luckily for both of us, I was never sure whether these inquiries were serious or just people pulling my leg. I mean, I know he’s the best, most handsome baby in the world, but that there were actually people out there seeing him as “a suitable boy” for their own babies was making me split my sides laughing.
I’d had a great time in the summer, when we ran into a classmate of mine at a party. After the initial awkwardness that ensues when you meet someone you haven’t seen in 30 years, came the queries about children.
“Does he have a girlfriend?” she asked. “No,” I replied. If the husband had been close by, he would have seen that I was in one of my moods and taken peremptory measures to stop the conversation right there.
“As if he would tell you if he did,” came the retort. Well, if she knew that, why did she ask me? But I said pacifically, “We are close. I would have known.”
“He must be shy then. Indian boys often are. They need a little help. You should find him a girlfriend.”
“Really, you think so?” I asked meekly. “Maybe you’re right, maybe he needs a little help.” That’s when another classmate, who was listening enrapt to this conversation and who is well acquainted with the son, burst into laughter, spoiling the entire act.
“So shall I help you find a wife?” I asked the son once we were back home and laughing our guts out. The son was not laughing, however. “Don’t you dare!” he told me. Then spoilt it all by adding, “Unless they’re offering a couple of crores in dowry!”
But back to the Ma-in-Law and the new bee in her bonnet. There were no crores in the offing there. The Ma-in-Law was an overt feminist and “dowry” appeared right below “domestic violence” in her dictionary.
“Why?” I mouthed silently at her, terrified at the prospect of her going bride hunting for the son.
“Look at Him. He cooks all His own meals. He needs companionship. This is the right time for Him to marry. Otherwise, He will be lonely all His life.” Her words were full of unshed capitals.
I could only nod. I’ve learnt the hard way never to argue with the Ma-in-Law. She is the one truly fixed point in the universe and seldom deviates from her stand. Also, as the mum of two boys, she knows better than me, who’s borne only one. Or so runs the traditional belief in the Jain family. So far, I had been happy to go with the flow.
However, this time, I was up against the other fixed point in my family, the son. Visions of what the son would have to say about her — or me — finding him a wife made me set aside caution and tell the Main-Law abruptly that the son would get married when he was good and ready and neither the husband nor I were keen on compelling him to get married just because “it was the right time”. It was not my best moment as a daughter-in-law, but the son flashed me a look of gratitude that more than compensated.
She sniffed and muttered something under her breath. I knew this was not the last I would hear on the subject. I could only hope that her other grandsons would come into the spotlight soon and give the rest of us some breathing space.
Meanwhile, I had a new worry. Why do mobile phones come with torches? I had just been to a movie, where I’d missed the first 15 minutes because of all the torch beams flashing as tardy people sought their seats.
Even as the country’s economy was in doldrums in the past five years, it was a bunch of technology startups that kept India’s hopes afloat with their entrepreneurial zeal and vision for future.
Helped by an equally adventurous and visionary set of angel investors, these startups showed that with the right vision and technology, they can create valuable companies out of thin air.
We have seen in the past how a similar set of startups in the US, driven (initially)by passion and foresight, created some of the most valuable companies — Google, Amazon, e-bay, Facebook, Twitter, and so on — in the world. Today these companies not only command eyepopping valuations (beating some of the old-world companies hands down), but have also generated income and employment there.
While the startup revolution in the US was helped by a benign business environment there (the US is seventh in the latest “Ease of Doing Business” ranking compared to India’s 130), the fact that India today has over 3,000 startups in a not-so-business-friendly conditions is something that makes these companies even more praiseworthy.
Of course, they have been helped by the telecom and internet data revolution in the country over the past 15 years, but if the country wants to help these startups break the glass ceilings and make it big globally, the government needs to re-align its policies to help them achieve scale.
MATTERS AT HAND
The startups need the right ecosystem to make it big after making the right start. For this, they need the right policy environment with regard to raising funds, ease of doing business, taxation, insolvency, and so on.
The government has to treat them slightly differently from the old brick-andmortar businesses. It has to understand that technology has changed the way businesses are done and accordingly draft (or redraft) policies to address their special needs. The good thing is a lot of policies are now being written/ re-written keeping in mind the need of startups.
Ease of doing business: This impacts all kinds of companies — the brick-andmortar companies, technology, servicesector companies, and others. Due to government’s efforts, our latest global ranking in ease of doing business has improved to 130 from 142.
This is a marked improvement in the ranking, but a lot more needs to be done to make it to the top 50 countries in terms of ease of doing business. The ease of doing business depends on factors such as registering a company, getting electricity, registering property, and so on.
The government recently informed the Parliament that the time taken for registering a company has been brought down from nine days to 4.5 days. It further informed that the government is planning to cut the time for registering a company further to one-two days.
The government also said it has made it easier for defunct companies to de-register themselves from the ministry of corporate affairs database
These are welcome moves, but there are other areas under state governments’ purview, such as getting electricity connections, dealing with construction permit, and so on, which need to timely resolution.
Fund raising: After a point, startups need to look beyond angel and venture capital funding for funds to break away from the startup mould and become large companies.
Raising fund from the public and getting listed on the stock exchanges is the next step for these companies. Currently, the IPO (Initial Public Offer) norms in India do not allow companies with no previous history of profitability to raise money from the markets. Under these norms, even a startup such as Flipkart, with over $5 billion valuation, cannot raise capital from stock markets in India.
This anomaly must go, and the regulators must understand that new-age companies command a valuation based on their future potential than their past profit and loss account.
The good news is that the Securities and Exchange Board of India (Sebi) is already working on a draft IPO norms for startups.
The banking regulator must also allow banks to offer loans to startups based on certain new criteria and not on the traditional cash flow and collateral considerations.
Along with easier fund raising options, the government should work on easier insolvency norms — allow companies to declare themselves bankrupt and allow creditors to liquidate a bankrupt company within a stipulated timeframe. This would encourage new creditors to come forward and extend a helping hand to these fledging companies. Again, the government is likely to introduce a new insolvency bill in the parliament soon. Taxation: This is one of the biggest issues for many startups. We have already seen taxing of some of the e-commerce companies have become a big issue for states.
Being internet companies, these startups have offices in one state but offer their services to customers in other states. Often, they do not pay any tax on sales of good through their portal. The home states feel that they are being deprived off the taxes.
Besides, the e-commerce portals are just the platform through which many retailers are selling their products. Now, states are arguing that these portals must withhold the indirect taxes such as VAT and sales tax on behalf of the revenue department.
Tax issues such as these needs to be resolved at the earliest so that these startups don’t end up in unending tax litigations.
Hopefully, the goods and services tax (GST) will bring some clarity to these issues.
CHANGE IN ATTITUDE
Technology startups are exploring uncharted territories and pushing the horizons to new levels. They have already transformed the service sectors with their unthinkable solutions.
The government must be brave to allow these companies to participate in government contracts and engage more with them in drafting new business policies.
A change in government attitude towards these companies will not only encourage them, but also add to their credibility in the eyes of customers, vendors, and borrowers.