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Focus

In this issue we look at a few contemporary topics such as wind energy in India; telecommunication infrastructure in India; jurisdictional limits of Electricity Regulatory Commissions; social infrastructure; health infrastructure in Orissa; and modeling the public transport system for privatization. The articles are exploratory in nature and look at suggested solutions to the thorny practical problems.

The world urgently needs energy from non-fossil fuel sources and the best alternative has been the wind energy which is totally environment friendly. Denmark is the first country to adopt wind energy as its prime source of energy. As a matter of fact, Denmark is the leading wind power nation in the world. Wind energy is green and clean, but it requires the employment of 20,000 people in the manufacturing of the equipment. India too needs the help of wind energy and in an increasing quantum. In the paper, "Wind Energy in India: The Future and the Challenge", the authors focus on the energy scenario in India. The paper examines the Indian Wind Energy Industry and projects its future in India. The authors also focus on the challenges to be faced when investment is planned in this source.

Telecom has been one of the success stories of India but the journey has not always been smooth. There have been regulatory issues, interconnectivity issues (between different service providers) and tussles between different regulators. But the general thrust has always been forwards. As a result, telecommunication infrastructure has registered a remarkable growth in India. The paper, "Telecommunication Infrastructure in India: An Uphill Journey", mainly focuses on the present status of telecommunication infrastructure in India. The paper also provides an overview of uphill (but ultimately successful) journey of the Indian Telecom sector.

The Electricity Act, 2003, which laid a strong foundation for electricity sector reforms in India, has also placed a significant emphasis on the Electricity Regulatory Commissions. A Central Commission and State Level Commissions have therefore been constituted. There has been a lot of debate on the jurisdictional boundaries of the regulatory commissions. Several such cases have come before the Appellate Tribunal of Electricity formed under Section 110 of the Electricity Act, 2003. An analysis of these case laws provides very interesting and valuable insight into the jurisdictional issues. The paper, "Jurisdictional Limits of Electricity Regulatory Commissions", presents such an analysis based on 36 case laws covering several appeals tried before the Appellate Tribunal.

Whilst the economic aspects of core infrastructure have been taken care of, most planners have understood that the growth momentum of 8-9% can only continue if the social infrastructure is adequately taken care of. A lot of the growth is due to the service sector economy which again is reliant on a continuous supply of high quality manpower. India has been one of the hubs of human capital. In order to sustain this, there is a need to develop the social infrastructure to garner the demographic dividend. In the paper, "Social Infrastructure: A Key Factor for Harnessing Demographic Dividend", the author analyzes the bottlenecks in the areas of social infrastructure and also suggests ways to overcome them.

One of the core aspects of social infrastructure is health. Health infrastructure, in terms of hospitals, hospital beds, doctors, nurses, pharmacists, etc., has a significant, direct and positive contribution to the social infrastructure of any country. In this context, the paper, "Health Infrastructure in Orissa: An Inter-District Analysis", attempts to analyze the inter district availability of health infrastructure in Orissa through the construction of Composite Index of Health Infrastructure (CIHI) and suggests some policy measures for better health outcomes in the state.

Privatization of public transport system has been working fairly well in certain areas. But there have been consistent lacunae regarding the same which need to be looked into in detail. On examination of the lacunae, many investigative committees have concluded that proper modeling is to be done before such projects are put out to bid. Modeling should take care of both the socio-economic concerns of the society as well as the economic returns to the private investor/developer. In the paper, "Modeling the Public Transport System for Privatization: An Empirical Study", the authors give a rationale for the privatization of the public transport system through empirical studies such as simulation, modeling and observation survey methods. Various permutations and combinations of the variables involved are taken, which could have an impact on the revenue generation and the constraints in the process. The authors also focus on the application of operations research to resolve the issue of the optimal distance, which the private vehicle owners could adopt for the successful by running the public transport, considering the various possible constraints. A simulation model is proposed based on the problem, and the solution to which can suggest strategies that could be adopted for the successful privatization of public transport system.

All of these are but recommended methods to resolve problems of enormous practical concern. The endeavor always is to trigger thought in a practitioner and allow him or her to explore ways and means of developing models which can better address these problems.

- P Nair
Consulting Editor

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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