ERRATA
Who Thought of That?Every year has
its share of marketing disasters, quixotic government policies and plain nonsense. There
was a particularly good crop of bad ideas in 1997.
Pay Dismay
Bucks for Babus
Not a bad idea in itself, but it has opened a Pandora's box of
demands. Already struggling to find the Rs 11,000 crore to pay its bureaucratic hordes,
the Government found it needed an extra Rs 7,100 crore after caving in to demands from
unions of lower officials (clerks, peons, etc). Where's the money coming from? A desperate
Government tried everything: from unsuccessfully trying to sell shares of its companies to
raising taxes on foreign travel. Finally, it now wants to dip into the contingency fund,
an emergency stash used only thrice before: in 1972, 1979 and 1990. Now, employees of
Central and state government companies are demanding similar pay hikes. What would that
cost? A piffling Rs 96,000 crore.
Nixed |
| Accused of interfering with religious freedom, the Delhi Police
hastily exempted sardarnis (Sikh women) from a new law requiring helmets for pillion
riders on two-wheelers. |
Food Farce
Lunch for Re 1
Shiv Sena chief Bal Thackeray forced the Sena-BJP Government to
carve out 250 food stalls on prime Mumbai real estate and hand them over to select
entrepreneurs. Their brief: Sell zunka bhakar (gram-flour curry with a kind of chapatti)
at Re 1 to poor workers. A laudable way of fulfilling an election promise. The only
problem was the stall owners quickly realised there were better ways to make a living than
selling zunka bhakar -- the Government subsidy be hanged. So they now sell everything from
pizzas to dosas. Yuppies in ties line up outside. Oh, you will get zunka bhakar too -- but
at five to ten times the promised price.
Car Crash
The Great Automobile Disaster
Big is bad news. It was in the automobile industry. The flooding of
the market -- based more on hope than reality -- with mid-sized Opels, Daewoos, Fords and
Mercedes was an unmitigated disaster. Consider the first-off-the-block Cielo. It projected
sales of 72,000 cars for 1996-97. That figure was continuously scaled down during the year
until it fell to 35,000. Even then the company sold only 17,000 cars. Its competitors are
similarly stuck with unsold cars. India's middle class clearly needed small cars priced
around its average annual income: Rs 1.8 lakh. To make it big, car companies have to sell
small.
No Fly Zone
Squeezed for Cash
A crumbling Government couldn't announce a civil aviation policy, yet domestic airlines
were clearly told that investment from foreign airlines was unwelcome. Waving the flag of
swadeshi is fine, but no Indian company has the deep pockets -- let alone the know-how --
to buy planes and run an airline. So the prime candidates for putting up money for
domestic airlines are now sundry tea, toothpaste and soap companies. |