Vikalpa: The Journal for Decision Makers

Studies conducted by expert groups have established that the funding requirements for development and maintenance of road infrastructure in India will probably have to be met by private funding. Initial efforts to induce private investors to fund such projects have been based on the concessionaire⁄BOT approach. This article by Nayan Parikh and Rajesh Samson discusses the BOT model, which has been adopted with a few variations and refinements in the infrastructure sector, and puts forth suggestions that may help streamline the implementation of future road BOT projects.

This paper by Raghuram and Ravi Babu focuses on the financial requirements of Indian Railways and the means of providing for them. Drawing lessons from the existing modes of finance, the pros and cons of the potential modes including budgetary support, internal resource generation, market borrowings, BOLT (Build, Operate, Lease, Transfer), and BOT (Build, Operate, Transfer) are discussed. With declining budgetary support and expensive market borrowings, the paper seeks to focus attention on internal resource generation and BOLT⁄BOT schemes which involve stakeholders. Increased internal resource generation is possible by increasing revenues through value added service and innovative pricing, and reducing cost through improved asset utilization.

There are fundamental changes taking place in the international telecommunications environment. Most important is the technological revolution of “converged networks” brought about by the development of the internet. Simultaneously, most countries have adopted market liberalization in varying degrees and the General Agreement on Trade in Services (GATS) is opening up domestic markets to international competition. This paper by Sidharth Sinha discusses the implication of these changes for India and suggests that VSNL should be given complete autonomy, subject to regulation by the Telecom Regulatory Authority of India (TRAI), for determining the technology and tariffs for international telecommunication as well as negotiating settlement rates with foreign carriers and interconnection charges with the Department of Telecommunications (DoT).

The main objective of port management is to reduce the ship turnaround time by optimally utilizing the port resources. Reduced turnaround time encourages trade and improves the competitiveness of the port to provide efficient and effective services at low cost. The management of Bharat Seaports Authority is wondering how to achieve this objective.

Readers are invited to send their responses on the case to Vikalpa office.

This article by Dongre and Narayana Swamy is an attempt to evolve an appropriate statistical model to evaluate the financial performance of the primary agricultural credit societies. It is based on the empirical data gathered from 14 sample societies of two talukas in the Dakshina Kannada district of Karnataka state. Considering that fund management is the basic weak link in most primary agricultural credit societies, it is imperative that they be able to evaluate their performance and, based on the feedback, restructure their financial policies. It is hoped that the model suggested here comes handy to the management in periodic evaluation, feedback, and follow-up activities.

Japan has been envied for its spectacular post-war growth, making the severity of its problems in the 90s especially striking. This case by Vachani presents the major challenges confronting Japan in the 90s and the underlying cultural, economic, political, and structural issues. While solutions to some of Japan's problems might appear simple, their implementation is by no means easy.

The April-June 1998 issue of Vikalpa had published a Management Case titled ‘Aokam Perdana Berhad’ by Jayanth R Varma and V Raghunathan which discussed the issue of put options spelling bankruptcy for financially weak companies like Aokam. In this issue, we carry V Ranganathan's response on the case.

The July-September 1998 issue had featured a Management Case titled ‘Splendor Decorative Laminates India Ltd.’ by Abraham Koshy which focused on the evaluation of market research proposals and selecting an appropriate market research agency. In this issue, we carry two responses on the case by V Sanal Kumar and Ashis Mishra.

This paper by Kakati asserts that customer satisfaction should be the primary driver and measure of employees' performance and hence there is need for linking performance bonus to the customer satisfaction index. Subsequently, it explores theoretical and practical issues regarding the measurement of customer satisfaction and presents three alternative models (linear, conjunctive, and disjunctive) for measuring overall customer satisfaction level. Further, it provides an ideal bonus plan that ties up bonus to the index of customer satisfaction and payoff matrix. Finally, it presents a case study in a hospital industry where a similar bonus plan has been very recently put into operation.

This section features abstracts of articles covering empirical studies, experiences, ideas, and theories published in Indian and international journals. Sponsored by the Indian Council of Social Science Research, New Delhi, this service is intended to facilitate Indian management research.

Authors desirous of having their publications considered for inclusion in this feature may please send reprints of their articles to Vikalpa Editorial Office.