THE 21 FINALISTS for 7 Wonders of the world

y Acropolis, Athens, Greece
y Alhambra, Granada, Spain
y Angkor, Cambodia
y Chichen Itza, Yucatan, Mexico
y Christ Redeemer, Rio de Janeiro, Brazil
y Colosseum, Rome, Italy
y Easter Island Statues, Chile
y Eiffel Tower, Paris, France
y Great Wall, China
y Hagia Sophia, Istanbul, Turkey
y Kyomizu Temple, Kyoto, Japan
y Kremlin/St.Basil’s, Moscow, Russia
y Machu Picchu, Peru
y Neuschwanstein Castle, Fussen, Germany
y Petra, Jordan
y Pyramids of Giza, Egypt
y Statue of Liberty, New York, USA
y Stonehenge, UK
y Sydney Opera House, Australia
y Taj Mahal, Agra, India
y Timbuktu, Mali

Infrastructure cos over last three years

India's biggest ever IPO

MUMBAI / NEW DELHI: This could well turn out to be the blockbuster of the growing India oil story. UK-based Cairn Energy is all set to capitalise its assets in the Indian basins through one of the biggest IPOs ever. The company hopes to raise an estimated $2 bn from the float. The issue, which will be floated by its Indian subsidiary, Cairn India, is expected to open in mid-December. Cairn struck the largest onland gas find in ’04 in Rajasthan.

The price band of the IPO is pegged between Rs 180 - 200. The final offer price for the float will be determined following the book-building exercise, based on an offer document, which will include price range. An investment banker helping Cairn, on condition of anonymity, said, “Cairn IPO will be bigger than RPL and would fetch anything between $1.6 bn to $2 bn.”

The parent company, Cairn Energy, has a market cap of $6 bn and is one of the sharpest moving scrips at the London Stock Exchange. Cairn’s market cap has increased from $10m in 1993 to $6 bn. The Indian assets of the company, which include the oil and gas blocks in Rajasthan, Rawa and KG basin represent almost 90% of the total market cap. Speaking to ET, Rahul Dhir, CEO, Cairn India, said: “From the global perspective Cairn is perhaps among the few companies that offers predictable cash flows and a unique transforming growth profile in the near term.”

The company proposes to offer 538.47m equity shares of Rs 10 each for cash at a premium to be decided through 100% book-building process. The parent company, Cairn Energy, will own a 69.5% holding in Cairn India following the float (excluding any exercise of over-allotment option). “Today we have filed the draft red herring prospectus with Sebi. A partial proceeds from the IPO would be paid to the parent company to buy its Indian assets and the remaining would be used for the development of the Rajasthan oil fields,” Mr Dhir said.

However, he refused to divulge the amount of proceeds to be given to the parent company for buying Indian assets. Cairn, with investment of $1.5 bn in Indian assets so far, would require another $1 bn to develop the Rajasthan oil fields. The company had already tied up for a revolving credit facility of $1 bn with a consortium of 14 international banks. International Finance Corporation, an arm of the World Bank, has recently envisaged interest in picking up stake in the company for $45m.

The company is expected to file the RHP with the Registrar of Companies in November, subject to the approval of the shareholders at an EGM Cairn Energy. Of the issue, at least 60% will be allotted to qualified institutional buyers on a proportionate basis and not less than 10% will be available for allocation on a proportionate basis to non-institutional investors. About 30% of the issue will be available for allocation to retail bidders.

The parent company has already infused the promoters contribution in Cairn India by way of FDI, already approved by the Ministry of Finance. Cairn India has drawn up an ambitious investment plan of around $4 bn for the development and operations of its oil fields in Rajasthan.

It is estimated that its onland oil finds in Rajasthan, which spans over 18 fields would have an in-place reserve of almost 3.5 bn barrels. The company expects these oilfinds to yield revenue earnings of a whopping $40 bn on an assumed oil price of $40 to $50 a barrel. A large part of these revenues will go to the government coffers. It is estimated that these fields, which are among the largest onshore blocks would have an estimated 1 bn barrels of recoverable oil.

Check the most expensive hotel rooms

Penthouse Suite at The Hotel Martinez: $37,200
Cannes, France




Cannes is a summer haven for sun-deprived Europeans, and the annual film festival is one of the biggest events of the season. The Penthouse Suite at The Hotel Martinez is the ritziest place to stay, located on the seventh floor of the hotel. It has four bedrooms, and the enormous terrace has a private Jacuzzi and views of the Mediterranean.

Royal penthouse suite at President Wilson Hotel

$35,000

Geneva




The name of this suite recently changed from Imperial Suite to the Royal Penthouse Suite, and the price changed as well: The last time we published this list, the suite rang in at $33,000 per night. The suite is accessed via private elevator. All doors and windows are bulletproof, and there are panoramic views of Lake Geneva.

The Royal Villa at Grand Resort Lagonissi

$34,088

Athens, Greece




The three-bedroom Royal Villa at the Grand Resort Lagonissi in Athens has an indoor pool, an outdoor heated pool, a gym, a fully equipped kitchen and large living and dining rooms. We recommend you arrive with friends and split the cost three ways--but for the high-flying moguls who rent this villa, that is probably needless frugality.
Presidential suite at Hotel Cala di Volpe

$27,277

Cost Smeralda, Italy



The brightly decorated Presidential Suite at Hotel Cala di Volpe is a duplex, located in the tower wing of the hotel. There are three bedrooms, three bathrooms, an outdoor saltwater pool and a private gazebo and solarium.
Bridge suite at Atlantis

$25,000

Paradise Island, Bahamas



This ten-room suite comprises a bridge between the towers of the Atlantis hotel; hence the name. Past celebrity guests include Oprah Winfrey and Michael Jackson. The suite has a kitchen as well as his-and-hers bathrooms.
Bridge suite at Atlantis

$25,000

Paradise Island, Bahamas



This ten-room suite comprises a bridge between the towers of the Atlantis hotel; hence the name. Past celebrity guests include Oprah Winfrey and Michael Jackson. The suite has a kitchen as well as his-and-hers bathrooms.
Royal suite at Plaza Athenée

$17,494

Paris



With views of the Eiffel Tower and Avenue Montaigne, the Royal Suite at Plaza Athenée has two private entrances, two master bedrooms, a 12-person dining room and a full kitchen. The suite was designed for the security-conscious, with video monitors trained on the balcony and a biometric fingerprint-scan system at both entryways.
African Sapphire Villa at Altamer

$11,428

Anguilla



During high season, between Dec. 16 and Jan. 6, the African Sapphire Villa is available for a two-week minimum at a rate of $80,000 per week. Altamer resort is composed of three villas, including African Sapphire, which come staffed with butler, maids and a private chef. African Sapphire has six to eight bedrooms and a private snorkeling lagoon.
Presidential Suite at the Intercontinental

$11,183

Hong Kong



At 7,000 square feet, the new Presidential Suite at the Intercontinental, Hong Kong is one of the the city's largest. It has five bedrooms, a duplex living room with two-story windows, and a 2,500-square-foot wrap-around terrace with views of Victoria Harbour. There is also a private study, kitchenette and 24-hour room service from Alain Ducaisse's Spoon restaurant--not available at any price to anyone else in the hotel.
Royal suite at Burj Al Arab

$10,900

Dubai, United Arab Emirates



The highlight of this opulent suite is the circular, red canopied bed, which is mounted on a rotating platform. The bedroom is decorated in bold gold and red shades (which echo the Burj Al Arab lobby, where all the gold décor is actually 24-karat gold leaf) and there is a circular Jacuzzi in the master bathroom, which has marble floors and a chaise lounge. The suite has a private elevator and cinema as well.

Sebi sets NAV cut-off timing for MFs

MUMBAI: In a move that could protect the interest of small investors and discourage the discriminatory practices benefitting corporate and institutional investors, the market regulator Sebi on Wednesday issued guidelines on uniform cut-off timing for net asset values of the mutual funds.

According to the latest guidelines issued by Sebi today, every mutual fund should reckon the cut-off timings for all its schemes and plans and these should be uniformly implemented for all its investors.

In addition, all the MFs have been asked to ensure that each payment instrument for subscription or purchase of units is deposited by it in the bank, the regulator said.

The industry experts said the guidelines should discourage the discriminatory practice of corporate and institutional investors taking advantage of the absence of strict cut-off timing of net asset value of mutual funds.

Sebi said Association of Mutual Funds in India (AMFI) had approached it seeking some modifications to the previous circular on uniform cut-off timings for applicability of Net Asset Value of MF schemes/plans and the proposal of AMFI was considered and accordingly the following guidelines are being issued.

The new guidelines are effective from October 16 and are aimed at protecting the interests of investors in securities and to promote the development of and to regulate the securities market, Sebi said.

"The substance of these guidelines should also be disclosed to investors in the offer document or in any addendum thereto," it added.

It added that the status of compliance with these guidelines should be reported to it in all the bi-monthly compliance reports of the asset management company and the half-yearly trustee reports.

According to the guidelines specifying the cut-off timings for purchase of units in liquid fund schemes, the closing NAV of the day immediately preceding the day of receipt of application should be applicable for those received upto 12.00 noon.

For application received after 12.00 noon, the closing NAV of the day immediately preceding the next business day would be applicable.

Irrespective of the time of receipt of application, where the funds are not available for utilization on the day of the application, the closing NAV of the day immediately preceding the day on which the funds are available for utilization would be applicable, the guidelines added.

For repurchase of units in liquid fund schemes, the closing NAV of the day immediately preceding the next business day would be applicable when application is received upto 3.00 pm, while the closing NAV of the next business day would be applicable where the application is received after 3.00 pm.

A mutual fund should calculate NAV for each calendar day in respect of its liquid fund schemes and their plans, it added.

"Business day" does not include a day, on which the money markets are closed or otherwise not accessible, Sebi said.
Setting guidelines for cut-off timings for other schemes and plans, Sebisaid when application is received upto 3.00 pm with a local cheque or demand draft payable at par at the place where it is received, the NAV of the day of receipt of application would be applicable, while the closing NAV of the next business day would be available where the application is received after 3.00 pm in this case.

Where the application is received with an outstation cheque or demand draft which is not payable on par at the place where it is received, the closing NAV of day on which the cheque or demand draft is credited would be applicable.

The guidelines further added that every mutual fund should disclose the location of its official points of acceptance in its offer documents and websites and shall receive the applications made by investors only at such official points.

The guidelines are applicable for "sweep" and "switch" transactions as well.

Raise The Bar

Want to invest in gold? It is better to go in for gold bars, rather than jewellery,

WITH the festive season kicking in, gold prices are inching up. Prices recently saw a correction after cooling of oil prices world-wide. Higher oil prices lead to inflation and gold is considered the best hedge against inflation. Not so long ago, gold prices were above Rs 11,000 per 10 gm. But then they plunged below Rs 9,045. If you want to buy gold, besides gold jewellery, you can go in for gold bars as an investment option. Subsequently, these gold bars could be sold to make jewellery.
Many banks such as HDFC Bank and ICICI Bank sell pure gold bars. Some of them give discounts to lure customers. For starters, gold bars come in different weights, ranging from 5-50 gm. Some are imported. While buying gold bars, ensure you get a copy of the assay certification and claim purity as per the highest international standards. These 24-karat, 99.99% pure bars are sold at market rates. Many investors prefer buying gold from banks because they trust the purity certification provided by banks. However, while investing in gold, you should remember that it is better to go in for gold bars, rather than jewellery. Firstly, the purity’s guaranteed with the bar. Secondly, jewellery involves labour charges that are 15-20% of the price of gold. Lastly, when you eventually decide to sell the bar, you get the market value of the gold and you avoid the risk of being cheated. But care should be taken to ensure that finally when you trade in gold, the jeweller doesn’t take you for a ride.
The gold that is bought from banks can be converted into jewellery, and the procedure is fairly simple. Most Indians exit their investment in gold not by selling it, but by converting it to jewellery or gifting it, says a banker. Also, as Indian jewellery is normally made out of 22-karat gold, the 24-karat bar can be easily converted.
Rates of gold have dropped to levels as low as Rs 8,800 per 10 gm recently. Though the rates of gold have plunged in the past few weeks, there is a possibility that they will rise with the festive season. One basically has two ways of investing in gold — firstly, by physically buying gold and secondly, by investing in a gold-traded fund. The latter is yet to see the light of the day in India.

Introducing, SIPs In Gold

WITH rising gold prices, some jewellers are coming up with innovative schemes like systematic investment plans (SIPs), which will make it easier for people to buy gold. Prince Jewellery of Chennai, for example, offers a gold purchase plan. Under this, one can systematically invest in gold every month, by paying an instalment. The instalments are in multiples of Rs 250, from a minimum of Rs 500, lasting from 12-24 months. At the end of every month, your instalment is converted in terms of weight of gold, based on the prevailing gold price. At the end of the scheme, the total weight of gold accumulated is added and can be converted to buy jewellery at the store. While in the past, many SIP investments existed, many allotted gold in grams based on the prices prevailing at the end of the scheme’s tenure. Now, it is actually possible to invest at various price points.

GLITTERATI:


• 24-k, 99.99% pure bars are available at ICICI Bank and HDFC Bank

• Gold bars can be converted into jewellery through a simple procedure

• Gold is considered a hedge against inflation

new pricing at ICICI direct

Know the rupee accounts NRI

IT HAS almost become a necessity for nonresident Indians (NRIs) to keep a banking channel active in their home country. Some need it to remit money to support their family members. For others, money in such accounts enables them to try out investments. Some NRIs use these accounts to buy real estate. The NRE and NRO accounts are two important banking channels for NRIs. Each banking channel has its own set of advantages and disadvantages. NRIs or persons of Indian origin (PIO) should be clear about these.

NRE Accounts

These accounts can be opened by NRIs, PIOs or even overseas corporate bodies (OCBs). NRE accounts can be operated by any of these parties and could be in the form of a savings account, recurring account or even in the shape of a fixed deposit. Deposits have to be made by NRIs, OCBs or the PIOs through remittances in foreign exchange. The interest on NRE accounts is exempt from any tax, and is fully repatriable. The withdrawals from NRE accounts in India can be carried out by the person holding the power of attorney (PA) to operate the account. The redemptions/income out of mutual fund investments made out of NRE account is allowed to be credited to the same account. The NRE account holder also has the privilege to withdraw the balance in foreign currency at any time. For property purchased out of funds in the NRE account, following regular remittances in foreign currency to the account, only an amount equivalent to the cost of acquisition of the property is repatriable. However, if the sale proceeds of the property are in rupees, no repatriation can happen through the NRE account (it can happen through the NRO account). This is because no deposits in rupee are allowed in this account.

NRO Accounts

These are the accounts in which the deposits can be made by NRIs /OCBs/ PIOs through remittances in foreign currency. The person holding the power of attorney to operate the account in India can also deposit funds in Indian currency in these accounts. These accounts are ideal for all such NRIs who have some recurring income like rent from property, or income from some other source which still exists in India.
The NRI can ideally use the NRO account to get credit of all the proceeds out of sale of any property in India. However, in case of NRO accounts, all the interest on balance held is subject to taxes unlike the NRE account. Also, the interest is not repatriable outside India to the account-holder. But funds deposited in the NRO account from sale of property are allowed to be to repatriated to the extent of the cost of acquisition (remitted in foreign exchange). For any repatriation out of the account, the NRI needs a PAN card.

4 Oct 2006 Which plan to pick? Dividend or Growth

Selecting a plan for your mutual fund investment? We bring you the different combinations possible, to help you keep an eye on tax outgo, without losing sight of your financial goals


Age may have grayed his hair but when it comes to planning his finances, Pheroze Bhathena, 77, a retired engineer from a multinational, is quite astute. Although he prefers safe options like bank deposits and National Savings Certificates, 5 per cent of his portfolio is allocated for diversified equity funds, wherein he opts for the dividend plan for some risk exposure. “Since I am retired, I need regular income to meet my daily expenditure. I can’t afford to stash away my money for a very long time”, he says.

Simple enough, but choosing the right plan is an important part of asset allocation. Most mutual fund schemes offer three plans—dividend, dividend reinvestment and growth. Your choice will depend on your financial goals. Do you prefer dividends in your hands or want to see your money grow over a period of time. Since choosing the right plan also has tax implications, Outlook Money gives you a definitive guide on how to choose a plan that is best for you.

Debt funds

You invest in debt funds because capital conservation and regular income are your objectives. But every time your debt fund pays you dividend, it pays tax out of the dividend declared and you get the remaining amount. Debt funds also impose short-term capital gains tax, depending on your income tax bracket, if you withdraw your units before one year, and long-term capital gains of 10 per cent for investments longer than one year.

Pheroze Bhathena 77
Retired
5 per cent of Bhathena’s investment is in dividend plans of diversified equity funds
“I need regular income to meet daily expenditure. I can’t afford to stash away money for long periods”


Stick to the dividend plan if you are investing for less than a year. For investors in higher tax brackets of 22.44 per cent and 33.66 per cent (all tax figures include surcharges), the divided plan is more tax-efficient with only 14.03 per cent dividend distribution tax. (See: Up The Ladder). If you invest Rs 10,000 in a debt fund that appreciates by 10 per cent and distributes all its gains as dividends, you end up with Rs 10,877 after a year as against Rs 10,667 in a growth plan.

Although dividend plans are more tax-efficient than growth plans for investments less than a year, what if you are not looking at dividends on a regular basis? Then opt for the dividend reinvestment option. Every time your debt fund declares dividends, it gets reinvested and an equivalent amount of units get added to your total number of units.

For investments of more than a year, in a growth plan you pay 11.22 per cent long-term capital gains tax as against 14.03 per cent as dividend distribution tax. For an investment of Rs 10,000 that appreciates by 10 per cent in a year, your growth plan will return Rs 10,888 as against Rs 10,877 by the dividend plan.


Ruthesh Ganesan 25
Banker
Ganesan invests Rs 20,000 per month in six SIPs of diversified equity funds and 80 per cent of his investments are in equity funds
“Given my income, age and background, I do not need liquidity”


Regular income or tax savings? Tax compulsions aside, opt for the dividend plan if you want regular income, even if you are investing in debt funds for more than a year. Arjun Marfatia, CEO, Quantum Mutual, says, “Choosing tax-efficient options should not come at the cost of your financial goals.”

Equity Funds

Not only are dividends from equity funds tax-free in the hands of the investor, the fund also does not pay any dividend distribution tax. An investment of Rs 10,000 in a diversified equity fund that grows by 10 per cent in a year and distributes it entirely as dividends, will yield Rs 11,000 under all three plans, if you hold your units for more than a year.

Your financial goal is important when it comes to choosing a plan in equity funds. Take 25 year-old banker Ruthesh Ganesan. About 80 per cent of his investments lie in equity funds. He saves regularly and invests Rs 20,000 every month in six diversified equity funds’ Systematic Investment Plans (SIP). “Given my current income, age and my background, I don’t need liquidity. I go for the growth plan”, he says.

If long-term wealth accumulation is what you are looking for then opt for the growth plan in equity funds. If you want to book profits periodically, opt for dividend plans, as equity funds are subject to market volatility.

If you had invested Rs 10,000 in HDFC Equity Fund’s growth plan on 1 January, 1999 at an NAV of Rs 9.29 and withdrawn it on 31 December, 2001 when the NAV was Rs 18.35, your investment would have grown 25.74 per cent. However, between 1999 and 2001, the scheme declared four dividends of 16, 20, 30 and 17 per cents. Had you invested in the scheme’s dividend plan, you would have got a compounded annualised growth of 28 per cent because an equity fund's dividend plan distributes profits that it earns from the markets, while a growth plan doesn’t.

A word of caution: If you are investing in an Equity-Linked Savings Scheme (ELSS), avoid dividend reinvestment. As ELSS locks your money for three years, each dividend that is reinvested is also locked for three years. In effect, you may never fully be able to withdraw your investment

4th oct pick of the fortnight

dsp merrill lynch opportunities fund
NAV Rs 48.23

If you want to build a long-term portfolio of equity mutual funds, DSP Merrill Lynch Opportunities Fund (DMLOF) is a must. Consistency in returns, which are also above the industry average, stability and liquidity through large-cap scrips in its well diversified portfolio, are only some of the reasons to give this fund a good look.

Good performance

DMLOF was launched in April 2000 when the technology sector melted and equities collapsed. In its first year, the scheme lost 31 per cent, but it has not looked back since. In the past five years, DMLOF has returned 50 per cent against the category average of 42 per cent. As per Outlook Money’s latest annual mutual fund rankings, And the Winners Are... (15 May), the scheme was ranked seventh out of a total of 53 diversified equity schemes, earning four stars.

A measure of a fund’s consistency is its one-year rolling returns (the average of one-year returns over the past two-year period). DMLOF returned 61 per cent against category average of 53 per cent.

Fund strategy

DMLOF is an aggressively managed fund in search of growth opportunities. This is in contrast with its other diversified equity scheme, DSP ML Equity Fund, which believes in a buy-and-hold philosophy. In its search for companies with the potential for high-earnings growth, in sectors with significant growth opportunity, DMLOF invests in scrips across market capitalisation. Thus, during 2005, when mid-cap scrips were performing well, DMLOF had an average of 30 per cent of its portfolio in such scrips.

Of late, DMLOF has trimmed its mid-cap exposure to around 15 per cent. This would seem a good move for turbulent markets, when large-cap scrips tend to be more stable and liquid than mid-caps. The scheme is well-diversified, and consistently holds an average of 60 scrips.

DMLOF holds stocks for an average of one year, and the fund manager aims to achieve his price target within this period. If scrips achieve the price target earlier, the fund manager exits. The scheme’s one-year standard deviation on weekly returns (a measure of risk; how much its returns fluctuate from its average for the same year) is 3.8, slightly lower than category average of 3.9. DMLOF keeps around 5 per cent of its portfolio in cash to meet redemption pressures.

Portfolio

The scheme’s top three sectors are software, industrial capital goods and products and cement. The fund manager believes that large-sized Indian technology companies are well-placed to bag bigger international orders. Accordingly, DMLOF’s top holding is Infosys, and it has also increased its exposure to Satyam in August 2006.

The fund manager believes that increased government spending in the infrastructure sector will lead to improved order books for manufacturers of heavy machinery and equipment. Two prominent DMLOF holdings belong to this space, namely BHEL and L&T. The fund is also bullish on the cement sector as it expects cement prices to go up within the next one year.

Kayezad E. Adajania




Peer Comparison Fundfacts

Fund manager Soumendra Nath Lahiri
Min investment Rs 5,000
Entry load 2.25%
Exit load Nil
Launch date 10-Apr-00
Corpus Rs 1,145.3 cr
Benchmark Nifty

returns (%)
Scheme Name NAV 1 Year 3 Years 5 Years
DSP ML Opportunities 48.2 44.3 50.6 50
Birla India Opportunities 44.6 32.2 37.8 45.2
DBS Chola Opportunities 22 18.5 31.4 22.3
Reliance Equity Opportunities1 18.4 46.8 NA NA
Tata Equity Opportunity2 50.5 33.3 53.4 43.2
Nifty 41.4 34.8 27.3
1Launched after 8 Sept 2003; 2Launched after 8 Sept 2001
NAV and returns as on 8 Sept 06; Source: Mutualfundsindia.com

India’s top metros

A new Indicus Analytics study p rovides a wealth of information on city life. We cull education, careers, secur ity and entertainment across India’s top metros

Udayan Ray
page 1 of 1


A great city, whose image dwells in the memory of man, is a type of great idea. Rome represents conquest; faith hovers over Jerusalem; and Athens embodies the pre-eminent quality of the antique world, art.
Benjamin Disraeli (1804-81), British statesman


India also has its share of great cities that conjure up distinct images in one’s mind. If Delhi reflects a rich tradition arising from its seven historical cities, it’s the bindaas attitude and indomitable spirit of the Mumbaikar, while it is the zest for celebrating life for Kolkata inhabitants. We can go on talking about Indian cities, since the list is long—there are 5,180 cities in the country where approximately one in every three Indians reside. The largest Indian cities are also among the most populous in the world. Mumbai, Kolkata, Delhi, Hyderabad, Bangalore and Chennai are third, ninth, fourteenth, thirty-first, thirty-second and thirty-ninth in the list of world’s most populous cities. But are these also the best places to live? Greek philosopher Aristotle once said, “A great city is not to be confounded with a populous one.” So, what makes a city a great place to live in? Is it its denizens, climate, history and culture and amenities? One would suspect that the long list of essential attributes would not only have these but contain many more.

Himanshu Desai 34
Artist and Musician, Mumbai
When Desai came to Mumbai in 2002 along with his artist wife Bindu Mehra, now 39, he was penniless. Within a month he got a well-paying job as an art gallery curator. By 2004, he had done well enough to organise art shows of his works and of others.

“The work ethic of the city is superb, even though the infrastructure is in doldrums. There is so much honesty in the average citizen. You don’t have to haggle with auto and taxi drivers.”


Mass Affluent and the Quality of Life

The quality of life in Indian cities is deeply rooted in reality for the mass affluent Indian. There is a deluge of options coming up across the country, be it for jobs or business opportunities, thanks to a rapidly growing economy. This is putting in place a primary driver for inter-city relocations. Today, it is not unusual for a Delhi-based analyst taking up work in a Chennai-based KPO or a Bangalore-based engineer joining a Mumbai-based pharma company. The pay and the career growth prospects are making relocations worthwhile. But with multiple work options based in different cities on offer, quality of life, though a secondary factor, is becoming rather important during choice making. This is making determinants of quality of life important be it law and order, availability of educational facilities or availability of entertainment options.

“City Skyline of India 2006”. How does one compare quality of life across various Indian cities? Credible information is not freely available. That is why Outlook Money, in this edition, is exclusively presenting major findings of “City Skyline of India 2006” by Delhi-based economic research firm Indicus Analytics, a study that, among other things, ranks top 100 Indian cities on quality of living parameters.

Arvind Bhardwaj 42
Head, Advanced Engineering, Ashok Leyland, Chennai
Born and brought up in Chennai, Bhardwaj returned to the city in 1999, taking a 50 per cent pay cut from his General Motors job, to be with his city-based parents. Considerably reduced commute time, either for work or recreation, besides good educational facilities for his three daughters, endear the city to him.
“Life is so much simpler to live in Chennai. It has a small town feel with the attractions of a big city.”


Quality of Life Ranked

“City Skyline of India 2006” comprehensively assesses top 100 cities on the basis of three indices: (a) city earning index (b) city investing index and (c) city residing index. These indices have been constructed by including various parameters (See: Evaluating The Invaluable, page 52) whose data has been taken from publicly available sources such as the census publications and responses to an online survey conducted in June 2006, covering 10,000 respondents across India. The study rates the cities according to their scores on the indices.

For finding out the quality of life in Indian cities, earning and residing indices, along with their constituent parameters, are the best measures since these are the secondary factors that people mostly evaluate while considering relocation. We present below the rankings for the top 50 cities for which the study has done the most detailed analysis (See: Urban Matrix). While going through the rankings here, it is important for us to remember that they are for top 50 cities. These rankings change when you consider the 100 top cities.

The results. The study throws up very interesting outcomes. For instance, relatively smaller towns beat their larger counterparts in quality of life. Mumbai, the highest ranked metro in the city residing index, lags Kochi, Salem, Ghaziabad, Thiruvananthapuram, Tiruchirappalli and Indore respectively. Superior law and order and in some cases educational infrastructure can explain much of this. In terms of the very large and prominent cities, Mumbai is the highest ranked followed by Chennai, Kolkata, Bangalore and Delhi. Since most of Outlook Money’s readers reside in these five cities, we take a more detailed look at what the study reveals about the quality of life there.






Delhi

If you go by the rankings, the capital city is a great place to earn a living when compared to the other five, with its earning index ranking of seven surpassed only by Bangalore. However, the rankings tell us that Delhi is not such a great place to live with its rank of 48, which is very near the bottom. The high earning index is explained by brisk growth in employment as well as creation of new tech-related jobs reflected by employment advertisements. But what really pulls Delhi down is its inadequate engineering education facilities (rank: 45) and high degree of crime against women as a percentage of total crime (rank: 48). “It is not a great city to go out alone, nor is it a great city to use public transport on your own. Respect for women is lacking here,” says Sudipta Sengupta, 34, senior general manager, Café Coffee Day who has just relocated back to Delhi from Mumbai after six years. The reason: her husband Marut Sengupta, 33 was transferred to Delhi. “Senior citizens are also quite unsafe,” continues Sudipta who lives with her in-laws and her mother who now detest the restrictions on their movements in the new city.

Sudipta Sengupta 34
Senior General Manager, Café Coffee Day, Delhi
Sudipta relocated to Delhi one month ago after her husband’s transfer from Mumbai. Among the city’s positives, she considers the city’s wide roads to be the best among the metros, loves the large homes available and the packed calendar for art events.
“Respect for women is lacking in the city. It is not a great city to go out alone in, nor for using public transport on your own”


But is living in Delhi that bad? Sudipta, who did her MBA from Delhi University’s Faculty of Management Studies during 1994-96, loves many aspects of the city.

Having been brought up in Kolkata and worked in Mumbai and Bangalore, Sudipta feels that the roads in Delhi are the best in India. “They have improved immensely since I stayed here last,” she says. There are other positives too. “While Mumbai is great for working women, there are long commutes, tiny houses and bad roads. In Delhi, you can get a house of a certain size and be ‘house-proud’,” says Sudipta. She feels that for art lovers the calender is packed with events. Then, there are things that only Delhi can give. “You might be walking in a modern locality and suddenly you might find the remains of an ancient monument. There are walks you can take in the winters in the city’s many parks and, not to forget, the second-hand book bazaar every Sunday at Darya Ganj,” she continues. The rankings also shed light on another redeeming aspect of Delhi—it ranks number one among the 50 cities in the availability of malls and restaurants. It also ranks number two when it comes to places to visit, indicating a very high availability of entertainment options.

In the future, studies like City Skyline 2006 would become more and more important since they would set benchmarks

for city authorities even as they seek capital and skilled manpower. Such studies would also need to compare our cities with top international metropolises, since Indians will increasingly take up job opportunities abroad and people from foreign lands take up employment in India too. It is an imperative of a rapidly freeing and globalised economy. Perhaps then, along with such data, Indians would use the benchmark which American cultural anthropologist, Margaret Mead set for a city when she said: “A city is a place where there is no need to wait for next week to get the answer to a question, to taste the food of any country, to find new voices to listen to and familiar ones to listen to again.”

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