Magic figure 3 in Bollywood

Now a days, most of the bollywood movies which are about friends will have generally three characters only unlike the old days where it used to be two characters like Jay-Veeru days or many of those in that  generation. Since Dil Chahta hai, we have 3 Idiots, Pyaar Ka Punchnama and recent releases Delhi Belly and Jindagi na milegi dobara. We had movies like Dhamaal or Golmaal series also where number of characters was more but these movies were just plain comedy unlike the earlier ones which revolve around the individual lives of each of the characters. Now why three? There can be multiple reasons – First the story keeps revolving around three lives thus making it less boring for the audience. Second, many facets of life in the story can be covered for which 3 is ideal as more than 3 can make a clutter of the movie. Third, Producers can be more bankable on more number of characters.

Obviously for a movie to be hit, the story has to be good but as of now movies based on friendship and revolving around three characters are very popular.

Criticality of land in recent days

The whole infrastructure sector is grappling with a big issue known as land acquisition. Many projects from Power to Steel are not able to add capacities because of this issue. Recent one is the Greater Noida case. Bottom line is that land is the most critical factor for any project, if it involves forest land then additional clearances required for the project.  Anyway, we will just stick to the issue of non forest land acquisition.

Though the issue is present since long back but it has come to main front post Singur and Nandigram issue.  Any land acquisition involves fair land compensation which involves both the amount & disbursement process i.e. upfront or annuity basis and balanced resettlement and rehabilitation. These two form the core of any successful land acquisition process.

A few other factors should also be taken into consideration during land acquisition process, which are very important as they are equally capable in derailing the whole process.

First, any project requires a certain area and it acquires that much only i.e. compensation is paid to the owner of that much land only whereas the owners of the neighboring area do not get any compensation. Now if the compensation is good, which is generally the case in these days, then these people get a good amount of money overnight. Now consider any village where the compensation beneficiaries is only 5 % and remaining do not get anything, then these 95 % people will feel themselves as left behind and will not think positive about the project.  It is very important for the company just not to consider the land owners but also the neighbors so that in future disruptions do not take place. So a plan at the beginning only should be made with the help of village top people and state officials to showcase the benefits of the plant / project and opening up of certain facilities like medical facilities, water facilities which will contribute a lot in creating a positive impact on the neighborhood.

Second very important factor is the learning from Singur / Nandigram. Whenever State Government is planning for any development project, it should take the major opposition party into confidence. Rather than taking the whole credit for development, it should take the opposition in its side and proceed with the land acquisition.  If this is done then any issue during the process will not get any political color and can be resolved in a much easier way.

If the above factors can be taken into consideration, then land acquisition process can be a smooth process without any major issue.

What is with Red and White combination!!!

Education loan in India

Though effective interest rate in case of home loan and education will be a bit lower on account of tax benefits but still education loan is the costliest in India.

Credit history & Interest rates

I often get amused by the ways bank charges interest rate to different customers (In India, this practice is not present for the individual customer) depending upon the credit history. Credit history affecting the sanctioned loan amount seems OK but affecting the interest rate is strange. A customer with poor credit history will have to pay a higher interest rate than the one who is having a good credit report considering other parameters i.e. terms of payment remaining constant. This seems strange. Though I understand that this is because of the risk premium charged to the poor credit history customers but this makes them even more vulnerable to default. I also understand that the risk premium is calculated based on the person capacity to pay so that he does not default but why not charge him the normal interest rate so that he can pay even in easier terms. If at all the risk premium is the hedging strategy for the bad debt caused by some defaulting customers then the bad debt i.e. the defaults itself can be reduced if we keep the interest rate low.