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NON PERFORMING ASSETS AND ITS MANAGEMENT (A comparative study between public and private sector)

 

                                                                                                             

Bhanu Uday Somisetti

Dr. P. Raja Babu

                                                      K.Venkateswara Kumar                                                                     

ABSTRACT

Today banking has to play very prominent and crucial role in developing countries like India. In the Indian financial system banks acts as a financial intermediary or institution serves different services to accelerate the economic growth of the country. To improve the financial health of the banks various norms have been introduced at regular intervals. It is quite clear that generally the good health of a bank is reflected in better return on assets. The Non- Performing assets not only reduce the profitability of the banks by writing of the principal amount, as well as the amount of interest on advances and it is also a threat to the stability of the bank. This article mainly focuses on the causes and how a bank manages Non-Performing Assets (NPAs) under the guidelines of RBI.

KEYWORDS: Non-Performing Assets, Financial Institutions, Profitability, Banking Sector, Economic Growth, Reserve Bank of India (RBI).

  1. INTRODUCTION

All assets do not perform uniformly. In some cases, assets perform very well and the recovery of principal and interest happen on time while in other cases there may be delays in recovery or no recovery at all because of one reason or the other. Similarly, an asset may exhibit good quality performance at one point of time and poor performance at some other point of time. NPAs refer to loans which are at risk of default. Reserve Bank of India (RBI) defines “An asset, including a leased asset, becomes non­-performing when it ceases to generate income for the bank. Banks have to classify their assets as performing and non-performing in accordance with RBI’s guidelines. Under these guidelines an asset is classified as non-performing:

  • If any amount of interest or principal installments remains overdue for more than 90 days in respect of term loans.
  • In respect of overdraft or cash-credit an asset is classified as non-performing if the account remains out of order for a period of 90 days and
  • In respect of bills purchased and discounted account, if the bill remains overdue for a period of more than 90 days.
  1. CLASSIFICATION OF NPAs

According to the RBI guidelines banks must classify their assets on an on-going basis into the following four categories:

  • Standard assets: Standard asset service their interest and principal installments on time, although they occasionally default up to a period of 90 days. Standard assets are also called performing assets. They yield regular interest to the banks and return the due principal on time and thereby help the banks earn profit and recycle the repaid part of the loans for further lending. The other three categories (sub-standard assets, doubtful assets and loss assets) are NPAs and are discussed below.
  • Sub-standard assets: Sub-standard assets are those assets which have remained NPAs (i.e., if any amount of interest or principal installments remains overdue for more than 90 days) for a period up to 12 months.
  • Doubtful assets: An asset becomes doubtful if it remains a sub-standard asset for a period of 12 months and recovery of bank dues is of doubtful.
  • Loss assets: Loss assets comprise assets where a loss has been identified by the bank or the RBI. These are generally considered uncollectible. Their realizable value is so low that their continuance as bankable assets is not warranted.

‘If banks do not classify an asset as NPAs, they naturally have more money to earn interest income on their advances. If a large portion of NPAs goes unreported, the bank could reach a situation where it has advanced more money than it has available – a technical bankruptcy’. By giving this leverage ultimately RBI is delaying the inevitable, at some point of time the NPA bubble will burst.

  • KEY RATIOS FOR ASSET QUALITY

There are two key ratios for measuring bank asset quality.

  • Gross Non-Performing Assets (GNPAs): Gross NPAs is the sum of all loan assets that are classified as NPAs as per RBI guidelines. Gross NPA Ratio is the ratio of gross NPA to gross advances (loans) of the bank.
  • Net Non-Performing Assets (NPA) ratio:  Net NPAs are calculated by deducting provisions from gross NPAs. The net NPA to advances (loans) ratio is used as a measure of the overall quality of the bank’s loan book.

Net non-performing assets = Gross NPAs – Provisions

NPA ratio = Net non-performing assets / Advance

  1. CAUSES FOR IMPLICATION OF HIGH NPAS IN THE BANK

Banks with high level of NPAs have lesser funds to give loans and advances, i.e. lesser funds their interest income has to be reduced. Another negative impact of high NPAs:

  1. High level of provisioning (banks are required to keep aside a portion of their operating profit as provisions, higher NPAs will increase the amount of provision thereby impacting the profitability)

Provisioning Norms:

  1. For substandard loans, a general provisioning of 15% on the total outstanding amount is made if the loan is secured, for unsecured loans the total provisioning that needs to be done is 25% of the outstanding balance;
  2. For doubtful assets, provisioning of 100% on the total outstanding amount is made if the loan is unsecured, for secured loans the total provisioning is in the range of 25% to 100 % of the outstanding balance depending upon the period for which the asset has remained doubtful;
  3. Loss assets should be completely written off. If loss assets are permitted to remain on the books for any reason, 100 % of the outstanding amount should be provisioned.
<li>The burden of maintaining the capital adequacy ratio;</li>
<li>Increased pressure on Net Interest Margin (NIM);</li>
<li>Reduce competitive position;</li>
<li>Continuous draining of profits;</li>
<li>Negative impact of goodwill with the bank;</li>
<li>Restricted cash flow by the bank due to the provision of a fund created against the NPA.</li>
  1. OBJECTIVE OF THE STUDY

The main objectives of the study are given below:

  • To study the concept of Non-Performing Assets in the banking sector
  • To analyze the performance of banks under the concept of NPAs
  • To understand how a bank manages its NPAs and
  • To study various channels to recover the NPAs

  1. REVIEW OF LITERATURE
  2. Chandan Chatterjee, Jeet Mukherjee and Dr.Ratan Das, (2012) ‘Management of non-performing assets – a current scenario’ in their study they evident that the NPAs have a negative influence on the achievement of capital adequacy level, funds mobilization and deployment policy, banking system credibility, productivity and overall economy. And they also compare the performance of public, private and foreign banks and they present that the public sector banks are facing more problems with NPAs rather than others.
  3. Amit Kumar Nag, (2015) ‘Appraisal of non-performing assets in the banking sector: An Indian perspective’ the author of this article done a comparative study by taking ten private, public and foreign banks. This article reveals the performance of various banks and he suggested some measures to overcome NPAs difficulty.
  4. Rajeshwari Parmar, (2014) ‘Non-Performing Assets (NPAs): A Comparative Analysis of SBI and ICICI in this study the author takes a comparative study between SBI & ICICI banks and construct a relation between Net profit and Net NPAs. The author found that there is a positive relation. In case of SBI means that as profits increase NPA also increase because of mismanagement on the side of the bank and the other side of the coin ICICI bank got a negative relation which indicates that amount of NPA decreases and Profits will increase more by the amount not becoming NPA. So, they conclude that when compare to SBI (PSB), ICICI (Private bank) manages NPAs efficiently.
  5. Sonia Narula and Monica single, (2014) ‘Empirical Study on Non-Performing Assets of Bank’ in this article the authors conduct a study on private bank i.e., Punjab National Bank (PNB). It is concluded that when PNB Gross and Net NPA compared with total advances we get the result that there is mismanagement on the side of PNB. While analyzing the impact of NPA level on PNB we derived the conclusion that there is a positive relation between Net Profits and NPAs of PNB. It simply means that as profits increases NPA also increases. It is because of the mismanagement on the side of the bank.

  • ANALYSIS AND INTERPRETATION

Table: 01 shows Gross, Net advances and net NPAs of Public and Private Sector banks during the period of 2003-14. It is found that gross, net advances and Net NPAs of public and private sector banks were raised more ten times during the period of 2003-14 whereas the ratio between Net NPAs and Net advances, Total assets have been increasing between 2010 and 2014 for public sector banks whereas private sector banks have been decreasing. It is clearly indicated that when increasing loans and advances as a result Net NPAs also increases.

TABLE: 01 COMPARATIVE ANALYSIS ON GROSS, NET ADVANCES AND NET NPAS BETWEEN PUBLIC AND PRIVATE SECTOR BANKS IN INDIA

 (Amount in Billion)

 

While comparing public and private sector banks with NPAs, public sector banks are back to regulate NPAs and there is a need for proper management of NPAs because to increase the profitability and productivity. Last month, Finance Minister Arun Jaitley had said that though NPAs in the banking sector was a cause of concern, there was no ground to “panic”. Due to NPAs is the challenging for the banking sector and its impact on the economy slowed down. He had said the NPA was mainly in sectors like highways, steel, and textiles.

            Central Bank of India has topped the list of public sector banks with maximum bad loans, including restructured assets as a percentage of total advances. According to the data provided by the RBI to the Finance Ministry, Central Bank of India’s 21.5 per cent assets are either bad or have been restructured to save them turning non-performing assets (NPAs). The other banks, which have significant amounts of gross NPAs and restructured loans include United Bank of India (19.04 per cent), Punjab & Sind Bank (18.25 per cent) and Punjab National Bank by 17.85 per cent as on December 2014. Indian Overseas Bank, State Bank of Patiala, Allahabad Bank and Oriental Bank of Commerce all have bad and restructured loans in excess of 15 per cent. The rising bad loans have become a major concern for the Reserve Bank as well as the government. Most of the restructured loans are from the corporate sector. The top 30 defaulters are sitting on bad loans of Rs 95,122 crore, which is more than one-third of the gross non-performing assets of PSU banks at Rs 2, 60,531 crore as on December 2014.

 

 

  • STRATEGIES FOR RECOVERY
  1. Debt Restructuring

Once a borrower faces difficulty in repaying loans or paying interest, the bank should initially address the problem by trying to verify whether the financed company is viable in the long run. If the company project is viable, then rehabilitation is possible by restructuring the credit facilities. In a restructuring exercise, the bank can change the repayment or interest payment schedule to improve the chances of recovery or even make some sacrifices in terms of waiving interest etc.

The RBI has separate guidelines for restructuring loans. A fully secured standard/sub-standard/ doubtful loan can be restructured by rescheduling of principal repayments and/or the interest element. The amount of sacrifice, if any, in the element of interest, is either written off or provision is made to the extent of the sacrifice involved. The sub-standard accounts/doubtful accounts which have been subjected to restructuring, whether in respect of a principal installment or interest amount are eligible to be upgraded to the standard category only after a specified period.

To create an institutional mechanism for the restructuring of corporate debt the RBI has devised a Corporate Debt Restructuring (CDR) system. The objective of this framework is to ensure a timely and transparent mechanism for the restructuring of corporate debts of viable entities facing problems.

  1. Other recovery options

If rehabilitation of debt through restructuring is not possible, banks themselves make efforts to recover. For example, banks set up special asset recovery branches which concentrate on recovery of bad debts. Private and foreign banks often have a collection unit structured along various product lines and geographical locations, to manage bad loans. Very often, banks engage external recovery agents to collect past due debt, who make phone calls to the customers or make visits to them. For making debt recovery, banks lay down their policy and procedure in conformity with the RBI directives on the recovery of debt. The past due debt collection policy of banks generally emphasizes on the following at the time of recovery:

  • Respect to customers
  • An Appropriate letter authorizing agents to collect
  • Due notice to customers
  • Confidentiality of customers’ dues
  • Use of simple language in communication and maintenance of records of communication

In difficult cases, banks have the option of taking recourse to file cases in courts, Lok Adalats, Debt Recovery Tribunals (DRTs), One Time Settlement (OTS) schemes, etc. DRTs have been established under the Recovery of Debts due to Banks and Financial Institutions Act, 1993 for expeditious adjudication and recovery of debts that are owed to banks and financial institutions. Accounts with loan amount of Rs. 10 lakhs and above are eligible for being referred to DRTs. OTS schemes and Lok Adalats are especially useful to NPAs in smaller loans in different segments such as small and marginal farmers, small loan borrowers and SME entrepreneurs. If a bank is unable to recover the amounts due within a reasonable period, the bank may write off the loan. However, even in these cases, efforts should continue to make recoveries.

  • SARFAESI Act, 2002

Banks utilize the Securitization and Reconstruction of Financial Assets and Enforcement of

Security Interest Act, 2002 (SARFAESI) as an effective tool for NPA recovery. It is possible where non-performing assets are backed by securities charged to the Bank by way of hypothecation or mortgage or assignment. Upon loan default, banks can seize the securities (except agricultural land) without intervention of the court. The SARFAESI Act, 2002 gives powers of “seize and desist” to banks. Banks can give a notice in writing to the defaulting borrower requiring it to discharge its liabilities within 60 days. If the borrower fails to comply with the notice, the Bank may take recourse to one or more of the following measures:

  • Take possession of the security for the loan
  • Sale or lease or assign the right over the security
  • Manage the same or appoint any person to manage the same

The SARFAESI Act also provides for the establishment of asset reconstruction companies regulated by the RBI to acquire assets from banks and financial institutions. The Act provides for sale of financial assets by banks and financial institutions to asset reconstruction companies (ARCs). The RBI has issued guidelines to banks on the process to be followed for sales of financial assets to ARCs.

  1. Through website

            The present era is the internet era, RBI provide website like www.NPAsource.com  to sell the mortgaged assets banks and ARCs can conduct an auction through this website in an effective manner.

  1. RECOMMENDATIONS

            In the above study it can be concluded with some proper recommendations to manage NPAs with an efficient and effective manner. Some of the recommendations can be provided by dividing before advancing and after advancing explained as follows:

  • Before advancing
  • The bank should find the proper reasons prior to provide loans and should verify the purpose of loan required by the borrower.
  • The bank should verify the financial strength of the borrower whether he can repay or not.
  • The bank should go for credit analysis, i.e.. Credit execution and administration, Credit appraisals with the help of CIBIL (Credit Information Bureau India Limited). They should concentrate on short term funds rather than long term because chance to repay will high and working capital will be adequate.
  • Diversification of funds is needed means by investing total in one area you can reduce the risk through diversification to various sources.
  • Banks are under the control of RBI nowadays the regulatory authority is easing the norms on PSBs there is chance of easing the more norms to reduce NPAs.
  • Banks should go their policies and procedures strictly.
  • They should go with proper collateral security.
  • After advances:
  • Need to keep an eye on borrower whether he is paying proper payments are not.
  • If proper repayment is not there banks should critically examine and analyze the reasons behind time overrun.
  • Creation of separate department for recovery of loans with a proper officer.
  • Some studies reveal that bank officials are hesitant to sell bad loans because they fear this might be perceived as an admittance of failure to recover the loan. To sell bad loans to ARCs (Asset Reconstruction Companies) leads some recoveries.
  • There is a need to strengthen and fasten the recovery of loans by banks.
  • Bank officials should frequently visit the unit and should verify the physical position of assets and how it manages because if one unit/branch fails affects the total productivity of the entire bank.
  • Banks should go with various recovery strategies and recovery options to manage NPAs in an effective and efficient manner.
  • They should have proper monitor and manage to control NPAs.

REFERENCES

  1. Chakrabarti, d. M. (2015). The role of asset reconstruction companies (arcs) in non-performing assets (NPAs) management in Indian banking sector: an empirical study. Abhinav international monthly refereed journal of research, Volume 4, issue 5, ISSN-2320-0073.
  2. Chatterjee, 1. C., mukherjee, j., & das, d. (2012). Management of non performing assets – current scenario. International journal of social sciences and interdisciplinary research. 1 issue 11, ISSN 2277 3630
  3. Sonia Narula, m. S. (2014). Empirical study of non performing assets of bank. International journal of advanced research in computer science and management science, Vol 2, issue 1, ISSN: 2321-7782.
  4. Nag, a. K. (2015). Appraisal of non performing asset in banking sector: an Indian perspective. Indian journal of accounting Vol. XIVII, ISSN-0972-1479.
  5. Pacha Malyadri, s. S. (2011). A comparative study of non performing assets in Indian banking industry. International journal of economic practices and theories, Vol. 1, no. 2, e-ISSN 2247 – 7225.
  6. Parmar, r. (2013). Nonperforming assets: a comparative analysis of SBI and ICICI banks. International journal for research in management and pharmacy, Vol.3, ISSN: 2320-0901.
  7. rbi.org.in
  8. moneycontrol.com
  9. npasource.com
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Peasantry Society and Ch. Chhotu Ram: A Historical Study:

Dr. Dilbag Singh Bisla

Chhotu Ram became a very popular advocate. He could also lead a luxurious life like many other advocates of his time. He could also amass wealth like many other politicians if he so desired. But legal practice and politics were for him a path of personal sacrifice and selfless service to the peasantry and downtrodden and not the pursuit of wealth, power and abuse of authority. During his student life, Chhotu Ram experienced the deepest punch of poverty and helplessness of rural people in general and of peasantry in particular.[1] According to Chhotu Ram,. A Sanskrit couplet which he had read in Hitopdesh for the first time in his school in 1897 planted a sapling of his life mission i.e. improving the lot of the peasantry and downtrodden in his heart. The couplet says : “In ordinary course of nature thousands upon thousands are born everyday but he alone is truly born whose birth leads to the elevation of his race”. Thus leaving all personal considerations of his own and of his family for comforts, money and power; he directed all his time, energy, talent and labour towards the selfless and fearless service for the upliftment of longue tied, poverty stricken, debt laden peasantry and downtrodden and worked for secularism and oneness of the nation.

Chhotu Ram rightly saw in the anti-agriculturist and anti-labour policy of British rulers who also gave full protection to money-lenders and traders oftenly enlarging their net of exploitation. The irony was that though the producer of food was worst-affected, being squeezed and sucked by the trading community delivering kicks to their empty stomachs.[2] According to Darling, “Bulk of the Punjab cultivators are born in debt, live in debt. And die in debt”.[3]

Further illiteracy, frequent occurance of famines, traditional rainfed farming with small and fragmented fields as autumn leaves, ignorance and extravagance of cultivators on social customs, illegal extortion of money and high handedness of officials were more causes responsible for the pitiable condition of peasantry.

Sir Chhotu Ram fought for the emancipation of helpless peasantry and the downtrodden both inside the legislative and outside.

  • Agrarian Acts. Excessive land revenue and rigidity in its collection was one of the main reasons for the distress and indebtedness of peasantry who had to sell not only their lands but also their cattle, ornaments and though not very often their daughters too in order to pay off their land revenue.[4] The Punjab Land Revenue (amendment) Act. 1928 which got Governor General’s consent in Feb. 1929 provided substantial relief to all land owners big and small and also fixed 40 years as period of settlement. By 1938, the land revenue rates in Punjab was the lowest in the country as a whole.[5] Another important legislation was the Restitution of Land Mortgaged At, 1938 which was amended in 1939, 1940 and 1943 to put an end to benami (fictitious) transactions.[6] This device was resorted to by the moneylenders to frustrate the intension of the Act. of 1901. Also this Act protected the peasantry from the agriculturist money-lenders. The Act also provided for restitution of land mortgaged before June 8, 1901 free of cost to real owners. Accordingly, 3.65 lakhs land mortgagers got back 8.35 lakh acres of their mortgaged land for Rs. 413 lakhs without any cost.

Punjab Regulation of Accounts Act, 1930 which required the maintenance of a regular record of loan and furnishing of six monthly statement of accounts in request of loan to the debtor. The Punjab Relief of Indebtedness Act 1934 under which the interest on loan could not exceed the principal. The debtor stood discharged of the loan liability if he had paid the creditor twice the amount of principal. It saved the debtors from the loan of Rs. 200 lakhs. The Punjab Debtor Protection Act, 1936 prohibited attachment of, in the execution of a court decree, the land on which the debtor and his family depends, standing crops, standing trees, dwellings, one third output of food grains, bullock cart, mil cattle etc. The Punjab Registration of Money Lender’s Act 1938 compelled all moneylenders (except land owners who lent money to their tenants for the purposes of agriculture) to get themselves registered and obtain licenses from the District Collector and loan entries could be made only in the register certified by the Government and they could charge only the regulated rate of interest. Unlicensed money-lenders were debarred from the claim of getting loan repayment. Under the Punjab Relief of Indebtedness (Amendment) Act XII, 1940, Debt Conciliation Boards were established at District headquarters for settling debts of long standing duration in order to save both the creditors and debtors from litigation. For this purpose an interest of 7.5 per cent per annum was allowed for secured loans and of 12.5 per cent for unsecured loans. Rs. 1400 lakhs were settled at these rates in 1942.

One of the causes of economic backwardness of peasantry was fragmented land holdings. For instance in one village of Central Punjab fragmented land holdings. For instance in one village of Central Punjab 584 owners used to cultivate 16,000 fields. To remove the hurdles of countless boundaries, irrigation channels and supervision, the Punjab Consolidation of Holdings Act 1936 and its amendments in 1940 and 1945 were passed and cooperation department was entrusted the job of consolidation of holdings. Another Agrarian Act for the benefits of tillers of land was the Punjab Tenancy (Amendment) Act IX, 1939.

Another reason for economic backwardness of peasantry was the prevalence of shady deals and malpractices in marketing. The Punjab Agricultural Produced Markets Act IX, 1941 were passed to ensure proper returns to the farmers. These were fiercely attacked by traders and hartals were observed for a long periods. Their implementation led to the establishment of regulated marketing system in the State.

In order to divide the burden of taxation equally between agriculturists and traders, the Punjab General Sales Tax Act, 1941 was passed which imposed tax on the sale of goods in cities and towns. The Punjab Trade Employee’s Act 1941 made it compulsory for all traders, shopkeepers, businessmen, industrialists to observe one day’s holiday in a week. This provided the much needed relief to all workers employed in industry and trade without affecting the business.

The vested interests, money-lenders, traders and political opponents raised hue and cry against many of these legislations and questioned the legal validity of State Legislature passing such legislations with a threat that the matter would be taken to the Federal Court to declare them ultra-vires. It was mainly Chhotu Ram who explained the declare the real purpose of all these agrarian bills to the masses and replied to the criticism of his opponents who called them black acts. Chhotu Ram made extensive use of press, public platform and floor of legislature displaying unhesitating force, grim resolve and tremendous  stamina in his replies and rebuttals to the opponents of Golden Acts. To convince about the mass support  to the opponents of Golden Acts. To convince about the mass support to these legislations Chhotu Ram organised huge rural conferences in several districts of Punjab and received very great ovations every where from rural classes. According to Punjab Governor, “Chhotu Ram was the most effective champion of the agrarian policy of the Unionist Ministry.[7]

  • Other development works :
  1. Agriculture development works

      Chhotu Ram and his party took numerous steps for the development of agriculture, irrigational facilities, industries and for the development of Punjab economy  in general and of the peasantry in particular. Remissions of land revenue and water rates in the time of failure of crops were ordered; taccavi loan was given in more liberal scale; a net work of land mortgage banks and co-operative credit societies was created for helping to release agriculturists land mortgaged with money-lenders and to issue loans on easy terms.[8] Peasants welfare fund was started[9] reclamation of waste land was started[10] Government seed farms were setup to Tehsil level to evolve new varieties of various crops[11] better agricultural implements and improved seeds were made available to farmers; also proper attention was given to improve the breeds of livestock[12] large number of Veterinary Hospitals and dispensaries were started in villages[13] fruit cultivation was promoted, nurseries were started and fruit  preservation was encouraged to improve income of  farmers.[14]  Panchayat Boards were revived to arbitrate disputes among agriculturists so as to save them from indebtedness.[15] The removal of oppressive burdens coupled with provision of additional facilities and pervasive awakening of peasantry greatly promoted agriculture.

  1. Irrigation development works

Chhotu Ram made concerted efforts not only in improving irrigation facilities and in rationalizing irrigational dues but also endeavored to streamline the working of the irrigation department of the province for the service of farmers. He wanted to execute a number of minor and major irrigational projects starting from the implementation of tubewell irrigation schemes, non-perennial canals and achieving the maximum up to Bhakra Dam Project.[16] He wanted to banish famines from south east Punjab (now Haryana) which was the most backward region at that time.

            To provide immediate relief he gave practical shape to kharif Extension Canal Scheme in 1940[17] providing irrigation to 3.5 lakh acres in Kharif season. He also rejuvenated in Gurgaon the bund (embankment) irrigation in 1943 which had been deteriorated during the preceding quinquennium by having by having been placed under the charge of irrigation department.[18] Inspite of Governments apathy towards the Bhakra Dam Project, Chhotu Ram did not let the project disappear. As a result of him, surveys connected with Bhakra Dam Scheme were completed and the project was reviewed with a view to generating from it hydro- electric power also.[19] To settle the dispute between the Governments of Sind and the Punjab, Chhotu Ram managed t compensate the Sind Government in 1944 by paying her Rs. 2 crores.[20] But for Sir Chhotu Ram’s efforts Bhakra Dam might have been delayed still further and might have been changed in scope.[21] Other two more schemes formulated in 1943 to bring water from Western Yamuna Canal by boring a two mile long tunnel through the Delhi Hills and bring water of two rivers Toshi & Giri of Sirmur State by constructing dam on them[22]did not mature during his life time.

            Chhotu Ram’s irrigational work did not confine only to south eastern districts of the Province. It was mainly due to his effort that major projects like Haveli Project was completed in 1939 and Thal Project in 1942. It was again due to the efforts of Chhotu Ram that a scheme was stated to raise water levels of wells in Doaba in 1941 and a small canal was dug in Pind Dadu Khan area in 1942. Thus, irrigational improvements during Chhotu Ram’s period not only resulted in agricultural development but also provided a great stimulus to trade and industry in the province.

  • Industrial development works

To tackle the problem of unemployment both in rural and urban areas[23] and to improve the lot of the peasantry Sir Chhotu Ram advocated strongly the necessity particularly of the agriculture based industries as well as the development of cottage industries[24]in the State.[25] For encouraging industrialization he allowed breaches into Punjab Alienation of Land Act for (i) obtaining loan from Industries Department and (ii) for acquiring plots for installing industries[26] opened technical and industrial schools[27] revived pottery industry[28] encouraged beekeeping and poultry farming[29] instituted industrial research fund. He provided industrial loans to the educated unemployed and spread female industrial education.[30]

The work and policy of Sir Chhotu Ram and his party before independence laid the foundations for Green Revolution which ushered in after mid sixties with the evolution of High Yielding Varieties.

References :

[1] D.S. Nandal- Deen Bandhu Sir Chhotu Ram, CCS, HAU Hisar[ 1995 P. 19

[2] Jat Gazette (tr) 24/03/1943

[3] M.L. Darling- Punjab Peasant in Prosperity and Debt, P. 34

[4] P.L.C.D.- Vol. XXIII, 21/03/1933 P. 671

[5] D.S. Nandal- Deen Bandhu Sir Chhotu Ram, CCS, HAU Hisar[ 1995 P. 23

[6] P.L.A.D.- Vol. XXII, 5/3/1940, P. 134; also Vol. XV,  31/1/1941, P. 603

[7] Letter 5/1/1939, Punjab to India, Linlithgow papers.

[8] P.L.C.D.- Vol, 7/5/1925, PP. 1085-88

[9] P.L.C.D.- Vol, X, 23/11/1927, PP. 42, 1442-45

[10] P.L.A.D. – Vol. Xxi, 16/03/1943, P. 355

[11] Jat Gazette (tr), 16/6/1927, P.4

[12] Jat Gazette (tr), 20/4/1927, P.4

[13] P.L.A.D., Vol. III, 16/3/1938, P. 845

[14] P.L.A.D., Vol. VIII, 28/3/1939, P. 862

[15] Jat Gezette (tr), 15/6/1927, P. 4

[16] Y. Shastri- Khastriya Jatiyon Ka Uthanopatan (Hindi Haridwar, 1956), P. 628

[17] P.L.A.D., Vol. XII, 5/3/1940,  P. 132

[18] Y. Shastri- Khastriya Jatiyon Ka Uthanopatan (Hindi Haridwar, 1956), P. 628

[19] P.L.A.D., Vol. XXI, 16/3/1943, P. 352

[20] R.S. Shastri- Haryana ka Ithash (Urdu), P. 218

[21] Kanwar Sain – Chhotu Ram in the Eyes of the Contemporaries,  Ed. Pardaman Singh, 1992, P. 33-34

[22] Jat Gazettee (tr), 11/8/1943, P. 5

[23] P.L.C.D., Vol. VIII, 7/3/1925, P. 140

[24] P.L.C.D., Vol. I, 22/6/1937, P. 501

[25] P.L.C.D., Vol. VIII, 13/3/1925, P. 506

[26] P.L.A.D., Vol. I, 12/7/1937, P. 1360

[27] P.L.C.D., Vol. VIII, 6/3/1923, P. 1067 & 1069

[28] P.L.A.D., Vol. VIII, 16/3/1939, P. 210

[29] P.L.A.D., Vol. VIII, 28/3/1939, P. 861

[30] P.L.A.D., Vol. XVII, 17/3/1941, P. 123

Design a Design to Redesign a Design

When we talk about design or think about design then we design our thought to present our design and the design is something which is designed to serve a design. I first encountered the word design when I saw designs long ago; probably during the first class of painting in standard first or second but the real concept of design got designed during our studios exercise on design. Design is a pervasive in design concept. Many students during the first few days of studio they wonder what is design and why this design don’t get aligned with the design of the faculty. They keeps on telling improve your design or redesign the design to suit the design they have designed in their mind.

I sometimes feel that design is a good concept to make us to think more before drawing lines to design and this helps in later parts of the life when you get to know more about the intellectuals property rights and the laws governing the copyright. Our Guru Google and friend copy-paste has made our life so simple that even for design we don’t bother to design our thought to evolve a unique design. A design that can design your destiny in internal and external design jury is had to design if you can’t design out the essence of my small note on design. I think the design of my thoughts on design issues will help you in designing a better design. You might have heard that that faculty say that Mr X design is good or Mr Y’s design better that Mr Z’s design. But I feel that design is design. It is your design outlook that decide the design in design. Simple or complex design is design. Design is like dreams which keeps on changing every other night. A true and successful designer must be a good dreamer only then he can keep evolving the design to suit the changing interest in design.Like dreams which are are involuntary design is also. Design should be self explanatory.  And Last but not least I would say design your design not for the sake of design but for design that will design the destiny.

Conservation of Heritage

The inaction of states and local bodies will cost a lot to India which is know world wide for its rich cultural and architectural heritage. The development does not mean that old should give place to new ones. Development is all about conserving and restructuring the path of progress in such a manner that the old structures which has cultural values, architectural values, age values and place values must get a proper place amid the new ones.

Delhi is a good example for the rest of the country in taking effective measures to protection and revival of the heritage buildings. The Archaeological Survey of India is also doing its part but it has its own limitations. Therefore, every state and local bodies should come forward for striking the balance between the development and the conservation of the rich heritage of each and every corner of the country. The conservation alone can ensure their survival for the future generations. Strong legal provisions must be enacted and implemented soon.

Mall Culture in Delhi-NCR

Mall Culture in Delhi-NCR

Mall Culture in Delhi-NCR

With the upbeat of malls in the market these days, generation next has found a new excuse to hangout. This increase in the so called, mall culture to our country about a decade ago and since then the capital has no corner left for any more malls. This also has fascinated as well as invited the architects to participate in the hullabaloo, and rightly so, as there are so many functions associated with it.

Overall all these malls have no relationship with the environment outside as they work on the principal with creating a micro-climate inside those gigantic boxes of steel and concrete. We hardly get to see the treatment given to the exterior of these malls as compared to the interiors. But still very little but pleasantly these portions of buildings are given a little thought as they really do attract the masses.

The `metropolitan mall’ at Gurgaon near Delhi. The external façade of this mall is totally covered with huge glow-sign boards of various products. This is just a part of their strategy to attract the consumers through these medium. Also, various kinds of lighting fixtures along the pavement to compliment the building. Although the building is quite transparent as far as the visual connection from the road is concerned as there are no boundary walls present. Still the low height foliage and the pavement separated it from the road. Also, there is no segregation of pedestrian and vehicular pathways.Only, locally available Delhi quartzite stone are laid in a radial pattern.

Life in Ruins: Fate of Old Structures

Time is an architect. It sculpts stone into any form it finds rational. It changes economies on a whim to transform buildings for new uses. And it lets war destroy the magnificent only to be replaced with the mundane.

Time also leaves us beautiful remnants from past cities: former temples and broken castles, roofless churches and silent grandstands.

The abandoned, the weeping, the mysterious; flights of fancy are let loose at the mere sight of them. We fascinate of the once upon a time palaces, where the kings and queens laughed, where our forefathers ate and slept, where those great builders created history. Thus begins the chase of the mysterious ruins that once were the mighty and divinely fashioned city of the emperors and their gods.

“For, indeed, the greatest glory of a building is not in its stones, not in its gold. Its glory is in its Age, and in that deep sense of voicefulness, of stern watching, of mysterious sympathy, nay, even of approval or condemnation, which we feel in walls that have long been washed by the passing waves of humanity… It is in that golden stain of time that we are to look for the real light, and color, and preciousness of architecture; and it is not until a building has assumed this character, till it has been entrusted with the fame, and hallowed by the deeds of men, till its walls have been witnesses of suffering, and its pillars rise out of the shadows of death, that its existence, more lasting as it is than that of the natural objects of the world around it, can be gifted with even so much as these possess of language and of life” [2]

To historians, buildings are particularly important since most are constructed of durable materials and tend to last for a long time, providing invaluable information about the past. Through architecture it’s possible to gauge many things about a culture, such as lifestyle, artistic sensibilities and social structure. For instance, early Western religious structures exhibit a general evolution toward more intricate and meaningful interiors, reflecting not only improvements in technical skills but also a growing interest in “inner spaces,” the spirit over the body. This tendency can be seen in several of the most famous holy monuments of Western Civilization: the Great Pyramid of Egypt, the Greek Parthenon, and the Pantheon in Rome and the Church of Hagia Sophia in Constantinople (Istanbul). This inclination toward interiority culminates in the cathedrals of Medieval Europe. Thus, buildings are not just brick and marble but windows into the soul. [3]

We build too! We make buildings for our families to live in, our fellowmen to work in, our children to play in; but how many times in this never ending process of building do we think about what we create. When we design buildings, we visualize them in the first, second and third dimensions, that is, we consider all that is tangible about the structure. But in reality, there is more to it than what meets the eye. The structure build by the people of a civilization are the most important factor in assessing its growth and development. Hence, beyond the three dimensions, there also exists an intangible dimension, the fourth dimension, that of time.

           Strolling down the streets of this city called Delhi, one is bound to encounter a mix of buildings belonging to various periods of time tailored together in its urban fabric. On one hand we would see a collection of ruins of the bygone civilizations, whereas on the other one would witness history being created.

While ruins take a visitor way back in time when the structure was a habitat for our forefathers, there are these structures that are being created and inhabited today by us that will eventually have a tryst with destiny in the times to come; their fate is yet to be decided, it is to be decided by time.

In a scenario like this, one is often left wondering whether fate would be the way ruins stand today, proud as ever, or whether they will fail to stand the test of time and that of the needs of our descendants. Whether they will be appreciated, conserved and looked up to or will they be brought down mercilessly to make way for their descendants.

A PHOTOGRAPHIC JOURNEY TO BEGUMPURI MASJID AND KHIRKI MASJID

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A PHOTOGRAPHIC JOURNEY TO BEGUMPURI MASJID AND KHIRKI MASJID


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Urban Decay and the Scope of Urban Regeneration

Human civilization is marked my the form and structures of the cities and town. The physical advancement of the cities represent the civilization of the era. Cities are dynamic symbol of growth, the point of civilization’s most exuberant vitality. Cities behave like living organisms. The internal dynamics of a city cause it to develop, growing outward until its supply of developable land diminishes.Urban Decay and Urban Regeneration

The city then starts getting intensely developed or starts recycling land, if the economy permits. A stagnant economy can start the aging process resulting in areas of the blight. The old cores of traditional of inner city areas of a city, which now developed as from the response to the culture, and lifestyle of the people are adversely affected.

At the present time, most cities are trying to take an international position and become global cities. On the other hand of our ever dual society, we find the cities that once were the symbol of society and nowadays lay abandoned and useless, suffering from serious problems of decay.

For these cities, good governance and good city planning are essential to survive and stop their decline. Nevertheless, the processes of urban decay have usually been dealt with an economic approach; the reversibility of urban decadence is linked to the restitution of economic value, improvement of the quality of life or to the amelioration of urban or social conditions.

Our increasingly urbanized civilization must pay attention to its Cities and Towns, which are growing in size and complexity. One of the major challenges of our time is how to ensure that cities have operationally and economically efficient services, which enhance their environment, their social and cultural values. Cities have always been centers of human activities. The founding, shaping, and growth of human agglomerations throughout history have been products of complex interactions of many forces.

In modern day, with advancement in the real estate development the growth poles are shifting outward and leaving the core of the town in position of getting further urban decay due to over crowding and decaying build environment. The urban local bodies do not get enough revenue from such areas and thus they don’t care to restore vitality in the area through augmentation of the infrastructure and conservation of the ancient and architectural heritage lying all around Delhi.

If we visit Delhi and go to the old Delhi then you will realize that pages of history getting unfolded in a systematic manner and you will feel that the history has once again got alive in the canvass of your mind. It is high time that city planning and maintenance authorities take immediate steps and be a part of the great tradition of the India culture and heritage. Try to revitalize the decaying urban core through measures of urban regeneration and renewal of the urban core.

Artists of Raghurajpur in Odisha

Today, I am going to share a story which will make you think and take some initiative on your part to ensure that the artists get what they deserves. This is the real story of a village in Odisha named Raghurajpur where poor families create wonderful art and crafts on their own and keep the field of art live by irrigating with the water of toil and dedication. Art & Craft Village is full of artists who are underpaid due to existence of number of middle men who buy their art at a meagre price and sell at high price.

The artists work day and night to complete the art work. Some artwork need one week to one month time due to the detailing in the artwork.

Link to View Video of the Artist