23 APRIL BW BUSINESSWORLD

V.VIJAYASAI How has the committee worked towards attracting
REDDY, investments into India post the pandemic?
We understand the high cost of finance in India which
MPrepresenting our manufacturers and domestic traders are facing, the
thestateofAndhra credit facilities that are being provided to entrepreneurs
in India are not popular. We need to increase awareness
Pradesh,and regarding this issue. Another aspect is regulatory hur-
Chairpersonof dles that are being faced by the Indian manufacturers,
theParliamentary for instance, enforcement of contracts.

Standing The committee has recommended to simplify the litiga-
Committeeon tion process. It has discussed and recommended to the
Commercespeaks government to introduce the National Logistics Policy
abouttheprogress which will cater to the Indian manufacturers. We recom-
thestatehasmade mended to the government to introduce attractive SOPs
andfutureplans for all the companies that have left China during the
pandemic and are looking for new countries to invest in.
What has been your role as the Chairperson of the
Parliamentary Standing Committee of Commerce and There are several productivity-linked incentive schemes
what are the some of the important agendas for this year? in various sectors that have come out. What are your
The parliamentary standing committee is meant to make thoughts on the actions taken by the government?
recommendations to the government on important issues The government has introduced production-linked incen-
as per the guidelines that are selected by the majority tive schemes across 14 sectors, with a total allocation of
of the members of the committee. While selecting the Rs 3 lakh crore. The schemes provide enhanced value
subject, the committee keeps in mind certain aspects — addition in the manufacturing sector that attracts foreign
relevance of the subject, an ongoing issue, addressing a investment. It creates both, direct and indirect employ-
pressing issue, for example, there is a priority to increase ment of over 40 lakh jobs. This will help India in becoming
the export and reduce imports so that foreign exchange an Atmanirbhar country and a global manufacturing
balance is maintained. hub. The potential challenges in the schemes are execu-
tion delays and delays in approval. The government on
its part is attracting foreign investment by providing all
infrastructural facilities that will help in the adoption of
these schemes.

What can be done about infrastructure that facilitates
trade and exports?
The central government has done a good job with the im-
plementation of the production-linked incentive schemes
and easy credit for MSMEs through the emergency credit
line guarantee scheme. India’s merchandise export has
increased by 45.8 per cent in the last two years. The gov-
ernment is focusing on export infrastructure, especially
the delayed industrial corridors are to be completed. So,
their speedy completion will be a priority.

What do you think about the Budget announcement,
especially for the state of Andhra Pradesh?
The people of Andhra Pradesh are disappointed with the
Union Budget. The increase in government spending
that the Hon’ble FM has been propagating, very little of
it has been allocated to address the pressing issues of the
nation. Secondly, Atmanirbharta of the states has been
neglected. The central government has increased the cess
and surcharges in its gross tax revenues. But cess and

23 April 2022 | BW BUSINESSWORLD | 51

IN CONVERSATION

“Merchandise export has
increased by 45.8% in the last
two years. The govt is focusing

on export infrastructure,
especially the delayed industrial

corridors. Their speedy
completion will be a priority”

surcharge collection are not shared with the state govern- How would you advise the Andhra Pradesh government
ments. It is also very disappointing that there is no relief to leverage the platforms that GoI has created?
to the common man as far as tax benefits are concerned.
In fact the cess on petrol and diesel is at an all-time high Andhra Pradesh is ranked No. 1 in ease of doing
and proceeds are not shared with the states. All major business. Business Reforms Plan 2019 contains 80
subsidies for fertilisers and LPG have been reduced. This reforms, of which 187 action points are to be imple-
move is anti-poor and anti-farmer. mented by 19 state departments and Andhra Pradesh
has achieved 100 per cent compliance in that. The state
On one hand, inflation is going up, while on has made rapid strides in manufacturing, develop-
the other hand the government is not consider- ment of imports, multi-modal logistic parks, indus-
ing the increase of the exemption limit. There are trial corridors and fishing harbours. There is a lot of
so many other issues which the reorganisation Act scope of development of infrastructural projects and
has stipulated that the government would imple- the Andhra Pradesh government is envisaging and
ment, however nothing has been implemented. implementing them. In fact our late industry minis-
ter — Gautam Reddy, showcased Andhra Pradesh
at the Dubai Expo and he facilitated the launch of a
single-window system where all the permissions are
granted for starting the industries and his efforts led
to an investment of 5,150 crore to generate 3,440 direct
employment and 7,800 indirect employment in the key
sectors of EVs, FMCG, infrastructure, manufacturing
logistics and smart city solutions. The government of
Andhra Pradesh is responsive and it cooperates with
entrepreneurs in acquiring the land and making the
logistics available with less regulatory compliances.

You’ve raised the right markers, both at the national level
and as the Chairperson of the Parliamentary Standing
Committee on Commerce and for the state itself. How
do you see this journey?

The road till now has not been easy, I have faced many
hurdles, many politically motivated cases, reaching here
at this point is not important. What we do after we reach
here is important. And I have raised so many problems
that are being faced by the people of Andhra Pradesh
and problems of the country at large. My humble mes-
sage to the new generation is to adopt a quote of Swami
Vivekananda — “Arise, awake and stop not till the goal
is reached”.

52 | BW BUSINESSWORLD | 23 April 2022



HEALTHCARE

COLUMN

TELEMEDICINE:
ABOONFOR
RURALINDIA

F IFTYNINE-YEAR-OLD Baljeet Kaur from a remote HARIT CHATURVEDI,
village in Punjab suddenly developed a stifling pain
in her abdomen and a few days of post-menopausal Chairman - Max Institute of Cancer Care,
bleeding when she called her daughter hurriedly, Max Super Specialty Hospital
who lives in Mumbai. She was attending an office
team meeting via zoom when the call came. India was highly underserved. Utilisation of telecommu-
nications infrastructure to deliver medical consultation
It was the beginning of the summer in 2021 and there was especially across rural India has been a boon in bridging this
not a soul to be seen on the streets who could physically help gap during the pandemic. This process of usage of telecom-
Kaur. There were travel restrictions in place as Covid-19 munication to connect a patient with the doctor is known
cases were surging during the second wave. as telemedicine or telehealth or e-medicine. It has proven
to be an effective collaboration of primary and secondary
Upon receiving the call from her mother, Ramneek acted healthcare setups to reach out to population especially stay-
quickly and booked an online consult with me immediately. ing in remote areas.

I still distinctly remember the day as I realised how with COVID-19 AND TELEMEDICINE
the use of technology we could provide immediate medical Accessibility of quality healthcare with just a click of a but-
assistance, without the botheration of a physical travel. ton was not a fathomable concept for many before the on-
Kaur was asked to run a few tests and scans locally and share set of the pandemic. Owing to travel restrictions or being
reports online. The patient was diagnosed with uterine
cancer. She reached Max Super Specialty Hospital at Saket
within the next fortnight and was taken up for a surgery
immediately.

This is the power of telemedicine that helped a patient
from a village in Punjab to get the best of clinical assessment
and subsequent treatment in the national capital without
several trips to any hospital which could have only led to
inadvertent delays, as we see many a times.

India is characteristically defined by a population of more
than 130 crore. And given the diverse landmass, difficult
terrain and unequal wealth distribution, the Indian govern-
ment’s aim to achieve equitable distribution of healthcare
services has proven to be challenging. Especially during
the initial months of surge in Covid 19 cases in 2020, this
gap was highly visible, wherein concentration of healthcare
facilities was more prevalent in urban India, whereas rural

54 | BW BUSINESSWORLD | 23 April 2022

quarantined at home or the fear of contracting the virus doctor’s consultation during any emergency and not depend

while traveling to a clinic, the need to consult a doctor over on the weak transportation in the remote areas.

a phone became a viable option. • The patient will be able to connect with doctors with spe-

Max Healthcare is one of the few healthcare organisations cific specialisation needed for quick & correct diagnosis

in the country, which has built a robust IT ecosystem by from across the country and not solely depend on their local

implementing a seamlessly connected hospital information doctor who is a generic physician treating everyone.

system, ERP, complete electronic medical record, electronic • People from remote or hilly regions will not face any delays

medication administration system and a powerful BI tool to as when to travel to a state level hospital for a complicated

provide real-time insights into the operations. The Covid-19 procedure. Chronic diseases can be easily managed through

pandemic changed the way healthcare is provided and in such intense engagement with patients.

record two weeks Such initiatives

Max Healthcare will definitely help

rolled out a video the people from the

consultation plat- remote areas gain

form in April 2020. more confidence in

This helped serve the country’s aim

the patients who to achieve equita-

could not reach the ble distribution of

hospital because of healthcare services.

lockdown or fear of People of these re-

catching the disease. gions will also gain a

Max Healthcare also better understanding

launched a mobile of the technologically

app in April 2020 for backed efficient digi-

better accessibility. tal health ecosystem

Putting the record Technology and innovation, boom in India.
straight, in FY21 over

1.2 lakh consulta- along with integration of online and NEXT IN TELE-
tions were provided offline players in the healthcare MEDICINE
to patients through ecosystem, is the way forward for Post-pandemic,
tele-consultations. telemedicine must
witness the process

RISE OF TELE- bringing positive changes in the of rolling out an inte-
MEDICINE IN RU- healthcare sector, especially grated, personalised,
RAL INDIA across rural India safe and efficient
There are predomi- digital health eco-
nant factors in ru- system for patients

ral India like poor and physicians for a

connectivity in few holistic growth.

places to dearth of enough healthcare centers for people • Focus on tech-enabled Service excellence

to travel to far off places for basic health check-up to poor • Mobile first approach

access to healthy food or practice of basic hygiene to lack • Safe and secure Cloud based Services

of awareness about telemedicine practices, but the effort • Unified patient app with integration with various weara-

still continues. Post-pandemic, the call volumes in relation bles and IOT devices

with Covid 19 cases have reduced but the right impetus for • Integrated e-commerce services (entire Max@Home in-

tele-consultations’ gradual growth over the next few years cluding pharmacy, radiology, video consults etc)

will provide a holistic benefit to people across rural India. Thus, it is firmly believed that technology and innova-

• The people from remote areas will actually save their travel tion, along with integration of online and offline players in

expenses to far off health centers by just consulting with the the healthcare ecosystem, is the way forward for bringing

doctor over phone. They will be privy to expert opinion of positive changes in the healthcare sector, especially across

doctors with advanced qualifications, will be able to access a rural India.

Photographs by Valeni Hadeev 23 April 2022 | BW BUSINESSWORLD | 55

HEALTHCARE

COLUMN

ASWATHY SREEDEVI

Professor & H.O.D, Community Medicine, Amrita Hospital, Kochi

AYUSHMANBHARATDIGITAL
MISSION–HITS&MISSES
THE AYUSHMAN BHARAT Digital Mission
is aims to improve equitable access to quality Physical documents such as lab reports, discharge sum-
healthcare by encouraging the use of technolo- maries and prescriptions need not be carried around. This
gies such as telemedicine and by enabling na- portal ensures portability of health records for individuals
tional portability of health services. similar to the digi locker, which keeps the documents of the
It is an ambitious effort of the government and seeks to individual safe and secure without any payment. The ABHA
keep India ahead in the race to use technology in health mobile application will have the information of the indi-
and thereby, provide value addition to the end user, be it the vidual drawn from multiple sources and is envisaged to be
healthcare provider or the patient. Anybody can create an managed, shared and controlled by the individual. Like the
ABHA health card, which is a 14 digit unique number and unified payment interface which revolutionised payment,
with which all the health records can be linked. All the medi- the unified health interface has the potential to revolutionise
cal records such as lab reports, prescriptions can be uploaded healthcare access and delivery. Participation in the mission
by verified doctors, hospitals and healthcare providers across is voluntary at present, however.
India. Thus, individual documents related to health can be
stored digitally and are accessible whenever required to There is also provision for the doctors and health facili-
healthcare providers, if the individual provides informed ties to register in the healthcare professional’s registry and
consent. This will also enable telemedicine consultations. Health Facility Registry. Healthcare professionals across
modern and traditional systems can register and so can
health facilities; public and private. Other health facilities

56 | BW BUSINESSWORLD | 23 April 2022

such as diagnostic laboratories though there are programmes

and imaging centres can also like the Pradhan Mantri

register. The introduction of Gramin Digital Saksharta Ab-

the Cowin portal and the rollout The Ayushman Digital hiyaan (PMGDISHA), their
of the vaccines in a systematic Health Mission makes reach and depth are doubtful.
manner has been a case in point Festivals for digital literacy can

of how, with good planning, im- medical care people-centric. be launched. The New India
munisation could be rolled out But the major limiting factor Literacy programme has digi-
across a vast country like ours. tal literacy as one of its compo-

The Ayushman Digital is digital literacy, which may nents and a thorough moni-
Health Mission makes medi- impede access to these toring of the implementation
cal care, people centric. But the with outcomes can perhaps aid

major limiting factor is digital solutions. The good news is this process. Privacy issues for
literacy, which may impede ac- that the smartphone the individual should also be
cess to these solutions. The good anticipated and informed con-

news is that the smartphone penetration in India is 54% sent can be a time taking pro-
penetration in India is 54 per cess. Like many online services,

cent and is projected to increase data privacy is the major issue

to 96 per cent in 2040. There is and there is no data monitoring

an imperative need to launch a authority to keep a check. Voice-

digital literacy campaign. This based solutions and simplifying

can have manifold impact in the form of increase in rural digital terminology could solve some of the issues of digital

literacy, prevention of exploitation of the poor and reduction illiteracy. Exclusion of citizens and denied healthcare due to

of cognitive impairment among the elderly, as they learn new faults in the system are also a cause of concern.

things. Digital literacy in India is 61 per cent in urban areas Some healthcare providers are worried about breaching

and 25 per cent in rural areas, digital literacy being defined the medical ethics of confidentiality of the information. An-

as “If at least one person in the household has the ability to other important challenge is the infrastructure of the health

operate a computer and use the internet.” Availability of system in India. The internet and computer facilities are very

internet is still a far cry for a large number of rural Indians. poor in most rural areas. Electronic Health Records (EHR)

Weheardmanyinterestingstoriesduringthelockdownof is the basic foundation for this mission and improvement in

children climbing the highest trees to get internet, children terms of infrastructure development is a necessary requisite.

writingletterstogetadigitaldeviceandlocalself-government Preventive health and wellness, which is the ultimate goal,

and other philanthropists donating digital devices. Even also do not get a mention.

Photograph by Macrovector 23 April 2022 | BW BUSINESSWORLD | 57

HEALTHCARE

COLUMN

PARAG RINDANI,

CEO, Wockhardt Hospitals, Mumbai

NEW-AGETECHKEYTO
OPTIMISINGHEALTHCARE
T HEWORLDHEALTHOrganisation(WHO)esti-
mates a projected shortfall of 18 million health The NSSO (National Sample Survey Organisation) data
workers by 2030, mostly in low- and lower- on ‘Employment and Unemployment Situation in India’
middle income countries. This is further com- estimated the number of healthcare workers to be 1.2 million
pounded by the fact that over a period of time fewer at 3.8 million. It further mentions that about 25 per cent
there has been poor investment in education of health professionals are unqualified.
and training of healthcare professionals in many countries.
The need of the hour is to pull in, educate and train a gen-
The number of professional healthcare workers in India eration of tech-savvy healthcare professionals to achieve the
does not meet the minimum requirement of 22.8 healthcare benefits of digital healthcare by using IoT and artificial intel-
professionals per 10,000 population recommended by WHO. ligence (AI).
Besides, the healthcare workforce in India consists of several
unqualified medical practitioners, such as traditional dais, Medical education today
people treating snakebite, bonesetters and spiritual healers, Medical education continues to have a very traditional cur-
having no formal education. riculum. Globally, the skill sets required for the curriculum is
similar, the duration however can differ. Bulk of the training

58 | BW BUSINESSWORLD | 23 April 2022

concentrates on gathering as be used to make an informed

much information as possible clinical decision. These pro-

and learning how to apply this gresses and moving from an

knowledge for patient care. information age to the age of

This is more of rote learning. The number of profes- artificial intelligence change
Very little time is dedicated as clinical practice and patient
sional healthcare workers
per the existing curriculum on in India does not meet the outcomes for the better.
technology based learning. When information process-
ing is done by computers, this
A critical technology-re-

lated aspect that is frequently minimum requirement of highlights one of the major
ignored in medical training is benefits of AI in medicine:

use of electronic health records 22.8 healthcare profession- it gives time to the physician
(EHR). There are many bene- to focus more on caring and
als per 10,000 population
fits of working with EHRs, such recommended by the World interacting with patients.
as enhanced patient care and The benefits of AI in
safety, seamless delivery of care,
healthcare are manifold. It

easy data retrievability, etc. It Health Organisation not only improves clinical
also assists the application of decision, enhances quality of

AI in healthcare. AI algorithms care, augments diagnostics,

utilise data from the electronic reduces errors, reduces hu-

health record (EHR), and man fatigue but also allows

hence, the knowledge on how for seamless integration and

to input unbiased data into the faster and accurate diagno-

EHR is essential. sis while decreasing medical

From a clinicians’ perspective there are many significant costs.Aboveall,itimprovesaccesstohealthcareandaddresses

patterns that are affecting care delivery. It took 50 years for the shortage of skilled healthcare professionals.

medical information to double in 1950. In 1980, it took seven In conclusion, future physicians will require a wide-ranging

years. In 2010, it was 3.5 years and is now projected to dou- ofskillstoappropriatelyuseAIinclinicalpractice.Inaddition

ble in 73 days by 2020. This growth is posing a challenge to to the principles of medicine, physicians will need skill sets to

healthcare professionals to both retain and use it effectively gain acceptable knowledge of AI fundamentals, mathemati-

to practice medicine. cal concepts, data science, and corresponding ethical and legal

issues. Going ahead, leadership skills and communication as

Impact of tech in medical practice well as emotional intelligence will be more vital than ever as

Withtherapidadvancementinhealthcaretechnology,EHRs AI-based systems will be unable to comprehend the physical

support new ways to get and process information that can and psychological minds of the patient.

Photograph by Unitone Vector 23 April 2022 | BW BUSINESSWORLD | 59

COLUMN By Deepa A Agarwal

Will employers a detrimental approach. At one level,
phase out different coping mechanisms are re-
quired to adapt to the ‘normalcy’. And
mental health at another level, employees are evalu-
support ating job opportunities on different
parameters now.
post-pandemic?
An organisation that continues to up
T HE PANDEMIC AND THE STRESSORS that it created in the form of its game on the ‘beyond career value
heightened anxieties, fears, grief, and the resultant hybrid work ar- proposition’ it offers will not only be
rangements led to a surge in mental health issues globally. Organisa- able to attract better talent but also
tions and leaders were in agreement on the need to prioritise mental drive better engagement and produc-
health services offered to their employees. However, with signs of the tivity in its existing employee base.
pandemic starting to wind down, leaders may also begin to phase out efforts. New
research by Forrester Consulting suggests that many of the surveyed senior lead- Here again, it is critical to recognise
ers plan to revert to their pre-pandemic mental health strategy. But this would be that merely instituting an EAP (Em-
ployee Assistance Programme) service
will not translate to the employees
feeling engaged. Rather, the need is
to instill a sense of emotional safety.
Here are some ways in which this can
be done.

Putting therapy in perspective
Due to the associated stigmas, the EAP
services go underutilised. Investing re-
sources and time in sensitising employ-
ees on the process of therapy and the
range of issues for which they can ap-
proach a counsellor/psychologist and
how they can access it is essential.

It should be emphasised that mental
health services can be utilised for any
issue that is disrupting an individual
from living a fulfilling life, including
common daily issues such as sleepless-
ness, eating disorders, self-worth, as-
sertiveness and phobias.

Tackling stigmas
Employees need to know that their us-
age of mental health services will be kept
confidential and that it is ok for them
disclose that they are currently expe-
riencing a mental health concern. The
role of leaders and managers cannot
be stressed enough in this; even if the
best services are available within the or-
ganisation, if an employee feels that the
leader will judge them negatively, they
will not access them. Therefore, training

60 | BW BUSINESSWORLD | 23 April 2022

Involving employees by taking feedback, wellbeing needs. Involving them by
understanding their specific needs and taking feedback, understanding their
soliciting their inputs will help design the specific needs and soliciting their in-
mental health strategy that is right for you. puts will help design the mental health
strategy that is right for you.
In case you already have an EAP
programme in place, analysing the In case you already have an EAP pro-
utilisation data across the range of issues gramme in place, analysing the utili-
and demographics will help you take sation data across the range of issues
measures that proactively address and are and demographics will help you take
measures that proactively address and
preventive in nature are preventive in nature.

leaders on the sensitivities around these issues will be a game-changer. Stigmas can Employee policies & intent
also be addressed by using various mediums such as comedy or plays. Offering reasonable accommodations,
such as the possibility of taking leaves
Taking a holistic approach and expanding the role of EAP to overcome emotional concerns, dis-
It is critical to acknowledge that irrespective of the solutions offered, some em- couraging an always-on culture, no-
ployees may never feel comfortable sharing their emotions with others. Therefore, meeting days, an extension of the
having a wide range of resources and confidential options of utilising them will as- services to family members, creating
sist such employees in using them when they feel the need for it. Examples include mental health resource groups, are
consistent talks on various topics – with live and recorded versions available and some ways.
awareness of proactive mental health habits to adopt.
The one interesting aspect of the
It is especially important for employees to know that mental health should not pandemic is that it has brought the
be seen in isolation from other aspects of wellbeing such as physical and financial criticality of strengthening mental
fitness. health care out of the shadow. Sustain-
ing it to build more resilient organisa-
Taking on a customised and relevant approach tions and societies is the need of the
Just like every organisation’s culture is different, so are your employees’ various hour.

The author is Chief Inclusion Officer at
Re-Link Consulting. She is also the author

of the bestselling book ‘ The Hangover
of Choices’

Photograph: Visual Generation 23 April 2022 | BW BUSINESSWORLD | 61

IN DEPTH AYUSHMANBHARATDIGITALMISSION

A Gold for

62 | BW BUSINESSWORLD | 23 April 2022

Over the last few years, healthcare

has been in focus both with the

government and the private sector,

if from different perspectives. All

concur, however, on the need to bring

the Indian healthcare system on a par

with the best practices in the world.

Could ABDM be a headstart?

By Jyotsna Sharma

THE AYUSHMAN BHARAT Digital
Mission (ABDM) is slated to revolu-
tionise the healthcare infrastructure,
if only through the digital mode. If
our country is to provide equity in
healthcare to a population of our size,
it would be through such an initia-
tive. But what exactly is ABDM? It is
an integrated digital healthcare platform that will bring
together all stakeholders by creating a digital registry of
the medical history of patients.

Such a digital registry will help patients access quality
healthcare. Through health IDs, the ABDM will enable
ease of registration and paperless health records will re-
duce chances of loss of information. The National Digital
Health Mission pilot project was launched in six Union
territories on 15 August, 2020. The nationwide rollout
of the Ayushman Bharat Digital Mission (ABDM) was
announced by Prime Minister Narendra Modi on 27 Sep-
tember, 2021.

In her Budget speech this year, Union Finance Minister

Healthcare

Photograph by Chanut45 23 April 2022 | BW BUSINESSWORLD | 63

IN DEPTH AYUSHMANBHARATDIGITALMISSION

“The ease with which health
institutions (once authorised by the
patient) can have access to a
patient’s medical data will make all
the difference in giving him quality
care. It will also reduce the
transaction cost of a number of
associated services,”

PANKAJ SAHNI, CEO, Medanta

Nirmala Sitharaman announced that the ABDM will be “It is a step in the right direction. The on-ground
rolled out during 2022 and highlighted the benefits of the execution of Ayushman Bharat a few years
scheme. “Thanking FM @NSitharamanJi for announc- ago and now the digital mission can make the
ing the rollout of an open platform for the national health Indian healthcare system stronger. “
ecosystem. It will consist of digital registries of health pro-
viders and health facilities, unique health identity, con- VARUN SURI, CEO, Consumer Division,
sent framework and universal access to health facilities,” Morepen Laboratories
tweeted Union Health Minister Mansukh Mandaviya.
Last year, the Finance Minister had announced that the
government would be looking at spending Rs 64,180 crore
over six years to improve healthcare services in India.
Earlier this year, the Union Cabinet cleared a budget of
Rs 1,600 crore for ABDM for use over the next five years.
As of 5 April, 2022, 21,18,03,089 ABHA numbers (health
IDs) have been created and 24,390 facilities have been
registered.

“The ease with which health institutions (once author-
ised by the patient) can have access to a patient’s medical
data will make all the difference in giving him quality
care. It will also reduce the transaction cost of a number of
associated services in the ecosystem. For example, insur-
ance companies incur a cost for processing a claim, once
this moves to a digital ecosystem, the cost goes down and
out-patient insurance can become a reality,” says Pankaj
Sahni, CEO, Medanta

Varun Suri, CEO, Consumer Division, Morepen Labo-
ratories, says it is a step in the right direction. The on-
ground execution of Ayushman Bharat a few years ago and
now the digital mission can make the Indian healthcare
system stronger. Ayushman Bharat solved the problem of
high healthcare costs for many, and now the digital mis-
sion will help everyone access quality care. He believes
that it has to be a team effort where the government, the
healthcare institutions, and the public play their part to
improve the system.

Hurdling
The ABDM is a great initiative, but we cannot turn away
from some of the questions that come to mind. Will data

64 | BW BUSINESSWORLD | 23 April 2022



IN DEPTH AYUSHMANBHARATDIGITALMISSION

“I think it is a solved problem. I it can create a central deposit.
don’t think that is a problem at all. One of the challenges Sahni points out, was the pos-
The problem larger in my opinion is
implementation. While we create sible lack of human connection since technology would
all the right kinds of tools, the right be involved. He also emphasised that there could be op-
kind of mindsets are a must and erational challenges in getting all healthcare units online
alongside that incentives become and in digitising their systems.
an equally important aspect.”
Of data privacy, Kochhar said, whenever we talk about
SAURABH KOCHHAR, data we get lost in the privacy issue. “I am not trying to
ridicule the importance of it. Globally and nationally there
Founder & CEO, Meddo Health are enough examples of how privacy can be solved. Bank-
ing is a fantastic example.” The only other data that is as
privacy be an issue? What are some of the other challenges important as health data for an individual is his financial
to the success of this programme? data. He pointed out that as a country we have secured our
financial data successfully, and there is a clear template
“What we are doing currently is creating all the im- that we can follow.
portant tools. The challenge would be using these tools
to create the desired impact. At Meddo, we are a part of He said Europe has actually led the way with its GDPR
the core group at the ABDM, trying to figure out these on enhancing that sphere from purely financial systems
problems and build technology solutions around them,” to a broader set of personally identifiable data. “I think it
says Saurabh Kochhar, Founder & CEO, Meddo Health. is a solved problem. I don’t think that is a problem at all.
The larger problem in my opinion, is implementation.
Kochhar believes that there must be an incentive for While we create all the right kinds of tools, the right kind
providers to use these systems and contribute to the da- of mindsets are a must and alongside that incentives be-
tabases. As a healthcare provider, whether it is a hospital, come an equally important aspect.”
an out-patient care platform, or a laboratory, anybody
who is touching a patient in any way, needs incentives to A Home Run
contribute that information to the central database so that Whenever anything new is put in place, challenges do
come up. It’s par for the course!

Let’s look at The United Kingdom’s National Health
Service (NHS). It is a nationwide healthcare programme
that provides specialised care to citizens free of cost. It
offers quality care that is easily accessible and free at the
point of use. Residents can make use of critical and non-
critical medical care, without having to pay, except for a
few specific services, such as long-term care, dental care,
and filling up of prescriptions. For us to get to such a sys-
tem will take time and will require processes to be put in
place. For one, we need to better our doctor-to-patient
ratio. We must get to the WHO recommended ratio of
1:1000. Secondly, we need to increase our spending on
healthcare much more from 1.2 per cent of the GDP (2021
data). The United Kingdom spends over nine per cent of
its GDP on healthcare. And finally, we must have systems
to keep the ABDM up and running.

Jitendra Chouksey, Founder & CEO, Fittr, is of the view
that over the last few years, digital healthcare has evolved,
and contributed greatly to healthcare accessibility and
delivery in India. Accelerating the formation of processes
for the ABDM is key and should be the focus of the near
future.

[email protected]

66 | BW BUSINESSWORLD | 23 April 2022



S US TA IN A B IL I T Y COVER STORY

THE BUSINESS
OFSUSTAIN
THE NOVEMBER 2021 Conference
By Urvi Shrivastav of Parties (COP 26) for the UN Cli-
mate Change Conference made waves
on many counts, among them tearful
speeches, India’s refusal to accept the
original text, pledging “phasing out”
of coal and the commitments made to
cut back carbon emissions to net zero.
Prime Minister Narendra Modi made a commitment to
bring down India’s carbon emissions to net zero by 2070 at
the Glasgow meet.

The United States of America and the European Union
aim to hit net zero in carbon emissions by 2050. China tar-

68 | BW BUSINESSWORLD | 23 April 2022

ABILITY Indian industry
is adopting
environment, social
and governance
(ESG) practices
on a war footing,
as India prepares
to meet its COP
26 commitments.
But this path is not
strewn with roses. A
BW Businessworld
ground report

gets net zero carbon emissions by 2060. So what exactly are by 2030. The Indian Railways, one of the biggest spenders
net zero emissions? It is just another expression for being on energy, also plans to become the world’s first net-zero
carbon neutral, or for not adding to the amount of greenhouse carbon emitting railway network by the year 2030.
gases in the atmosphere. On the ground, these commitments
to combat climate change necessitate that corporate enter- The phrase Environment, Sustainability, and Govern-
prises reorient their production processes to cut back on ance (ESG) is, consequently, the mantra that drives Indian
greenhouse gas emissions and adopt sustainable business companies. The Indian government now need to provide
practices. collaborative platforms to corporates to enable them to
work with lawmakers, regulators, and academic think-
Many big-wigs among India Inc. have already an- tanks to propel the progress and maturity of sustainability
nounced eliminating greenhouse gas emissions com- initiatives.
pletely, among them Reliance Industries (RIL), ITC, the
Adani Group, Wipro, Tata Consultancy Services and the The Grand Tussle: Sustainability vs Profit Adoption of
government-owned Indian Railways. Reliance Industries ESG principles compel corporates to look at new operating
will go carbon-free by 2035. It will contribute to 100 Giga models, change existing product lines, and even exit busi-
Watts (GW) of India’s target of generating 450 GW of re- nesses that are perceived to be high in carbon emissions.
newable energy by 2030. Ditto for diversified business The general perception is that adopting sustainable prac-
conglomerate ITC, which has announced its plans to meet tices is a cost and effort-consuming exercise and an imped-
100 per cent of its energy needs from renewable sources iment to profitability. However, much of this dichotomy

Photograph by PK Project 23 April 2022 | BW BUSINESSWORLD | 69

S US TA IN A B IL I T Y COVER STORY

REGION

Value-creating companies from all industries and regions

Asia-Pacific 43 60
Developing markets, including China 42
Europe How
India 44 Companies
Latin America 53 Capture the
Middle East and Northern America Value Of
North America 47 Sustainability:
47
Source: Mckinsey & Company 39 Survey Findings

The general perception is that adopting sustainable practices is a cost

between sustainability and profitability reflects the short- in the DNA of every organisation. If corporates have to
comings of the business enterprises themselves. survive in the future, they need to look at sustainability as
an aid to their growth and an aspect that gives them the
Quite a few corporates address sustainability and devel- necessary competitive edge in the market.
opment agendas in isolation, rather than in conjunction
with their businesses, which further fuels the debate about It’s important to break down silos and involve stakehold-
these two principles going hand in hand. Another issue ers throughout the process, to gauge the business impact,
faced by corporate conglomerates is the attempt to devise a and to ensure that business strategy takes these metrics
‘one size fits all’ net zero vision. Companies operate across into account in identifying opportunity and risk areas. For
complexities, given their presence in several geographies, conglomerates, localised action plans that are more prag-
operations along multiple business lines, and different matic, must be prepared.
supply chains. They are not able to accurately determine
the business impact of ESG measures. Moreover, sustain- Focusing on sustainability will have a cascading posi-
ability and development agendas are not customised or tive impact on companies. It will help businesses manage
tweaked to specificity, which eventually lead to de-growth. their risks and explore new opportunity areas. Improved
brand equity results in better financial valuation by inves-
“The tussle will end when Sustainability is looked upon tors, attraction and retention of good talent, and enhanced
as a profit centre rather than as a cost centre and this is customer loyalty. “Sustainability is providing businesses an
a challenge that the leadership needs to drive, implement opportunity to re-engineer their traditional business prac-
and communicate to its employees, stakeholders, and cus- tices, bringing efficiencies and driving innovation,” says
tomers. Sustainability is not a one-time thing, it will keep Gupta.
evolving, just like any other technology,” says Nitin Gupta,
Head-Sustainability Advisory, Capgemini. The fact of the Capgemini’s research vindicates his claim. More than 80
matter is that sustainability is now going to be embedded per cent of organisations say that they have enhanced their
brand reputation by improving their ESG ratings. Nearly

70 | BW BUSINESSWORLD | 23 April 2022

and effort consuming exercise and an impediment to profitability

eight in ten saw improved efficiency and productivity, and preferring sustainable business to offer financial support
more than 50 per cent were able to reduce packaging costs and grants to companies across the world,” points out Ra-
and increase sales because of it. The ideal scenario now is jendra Shrivastav, President AES India.
to make businesses more sustainable with an improved tri-
ple bottom line, thereby creating value across all the three In the US, the RE100 Club includes some of the largest
Ps, namely profits, people, and the planet. Fortune 500 listed companies that are firmly committed
to the renewable energy business. These companies are
Case Study: The Energy Sector Companies are taking abandoning their coal and gas-based electricity consump-
measures to ensure that their energy consumption has tion and reducing CO2 emission in a time-bound manner.
more green components. These measures include sourc- Over the next couple of decades, most of them will attain
ing renewable electricity, reducing water consumption, in- net zero CO2 emission from their entire business chain.
stalling equipment and technology to reduce solid, liquid Google and Amazon are front runners and have declared
wastes and minimise gaseous emissions. Organisations their intent to zero CO2 emission for conducting their
are also adopting new and innovative technologies that business, followed by concrete steps to source only renew-
dispense with greenhouse gas emissions. able energy for their business worldwide and that includes
India as well.
They are taking steps to ensure responsible sourcing,
such as reaching out to suppliers and educating them and Corporate giants in India such as the oil and telecom be-
influencing them to adopt sustainable business practices hemoth, Reliance Industries and the Adani group, which
such as fair and equitable wages, no child or forced labour has interests in ports, coal mining, coal-fired plants, and
and reducing polluting ways of production, etc. “The lend- renewable energy generation, are redefining themselves
ers, financiers, leading banks and multilateral funding very rapidly. They have publicly committed themselves to
agencies like IFC, ADB, KfW, World Bank and others are locally building a complete industry for renewable energy
by producing Polysilicon (required for manufacturing so-

Photograph by Qualit Desugn 23 April 2022 | BW BUSINESSWORLD | 71

S US TA IN A B IL I T Y COVER STORY

lar cells and modules), locally manufacturing battery en-
ergy storage, and industrial-scale hydrogen production in
the country.

All these measures demonstrate a bold, ambitious, and
amazing commitment to move away from traditional
businesses to a new paradigm. This is happening with a
sense of urgency owing to the compelling arguments for
adopting sustainable businesses. “It is happening also with
a sense of commitment to human continued existence,
while at the same time, allowing them to be profitable for
their stakeholders, governments through paying taxes and
securing a better future for the society,” Shrivastav goes on
to say.

The energy sector validates the overall business trends
in vogue these days. There are three main tenets of sustain-
able business practices. Corporate entities need to be dura-
ble and ensure a significant reduction in the impact their
businesses have on the environment.

Companies also need to have socially and ethically re-
sponsible business practices that are non-discriminatory
and inclusive, and adhere to strong governance, free from
malpractices, while being fully transparent.

But What are the Problems? There is a common say-

ing in the English language that ‘when something is too

good to be true, it probably is.’ This age-old adage holds

good for sustainability as well. While it looks like a bed of

roses, investing in sustainable businesses is anything but

that. Unless planned carefully and

consciously from the outset, ESG

fuelled investing and financial goal “The lenders, finan- tion of large-cap stocks, implying
setting can distort decision-making ciers, leading banks less choice and portfolio options for
in companies. This is important the conscious investor. This argu-

when shareholder value is at a pre- and multilateral fund- ment can also be extended to indus-
mium and companies are looking ing agencies like IFC, tries like tobacco and alcohol which
to make maximum profits from the can see investment dropping if the

labour market. ADB, KfW, World funds are diverted to more ESG
In some cases, employees use the Bank and others are friendly verticals.

focus on ESG as an excuse for their While avoiding these industries

poor performance. In a paper titled, preferring sustain- seems to be a positive trend, it will
‘Do Investors Value Sustainability? able businesses to offer only serve to enhance the risk of
A Natural Experiment Examining investors placing all their eggs in

Ranking and Fund Flow’, research- financial support one basket; or rather, in one kind of
ers from the University of Chicago basket. This means there will be a

say that sustainability is perceived Rajendra Shrivastav, skewed supply of finance in indus-

as something that will positively President AES India tries such as renewables, electric
predict the future performance of vehicles, and the like, which again

companies, but it is yet to be backed by evidence that sug- brings back the issue of lack of diversification. This will

gest that high-sustainability funds outperform and outdo have a cascading impact on the economy.

low-sustainability, or conventional funds.

Not just that, many investors who value small-cap and What about Investors? People and corporations looking

mid-cap investment stand to be disappointed, as most to invest in ESG positive businesses need to educate them-

companies that fit the sustainability bill, fit the descrip- selves about climate change and its economics, as well as

72 | BW BUSINESSWORLD | 23 April 2022

The Way Forward “In our lifetime we are coming across

products, which are used, misused, and now being brought

back under the label of corporate sustainability. Sustain-

ability is not just professional, it has also become personal,”

says C.P. Gurnani, CEO, Tech Mahindra. Gurnani’s state-

ment is profound in the sense that sustainability is not a

new concept for us. We have all become more conscious of

our environment, not just on a professional, but on a per-

sonal level as well. We all pride ourselves on carpooling,

say ‘no’ to plastic, purchase recycled products, etc.

On a global plane, the commitments made by na-

tions at the COP 26 summit, including India, European

countries and the United States, are driving businesses

through evolving frameworks and incentives offered to

them to align with sustainability practices. The window

available for preventing the rise of average global tem-

perature by two degrees is rapidly narrowing down and

sustainable business practices can make a real difference

to the future of mankind. Sustainable business practices

have compelled industries, companies, businesses, or-

ganisations, and governments to rethink the way they

have worked and rise to the challenge. “As soon as sus-

tainability becomes personal, corporates will achieve

their goals,” adds Gurnani. The individual commitment

must be in line with the global commitment as well, he

says.

The concept of ESG is here to stay and will certainly

have an impact on business practices. The coming years

will see businesses hire quant man-

“In our lifetime we agers to map out their ESG graph
are coming across
understand its implications on their products, which are and determine how to maximise
investments. Some climate-induced used, misused, and profits and investments around it.
risks are creeping in slowly, while We may also see a rise in sustainable

others are already staring us in the now being brought products so that investors may ex-
face. It is also interesting to note that back under the pand their portfolios, which will fur-
carbon will emerge as an asset class in ther drive up market demand. Tech-

its own right, and analysts who advise label of corporate nology will manoeuvre itself not just
investors must begin factoring in ex- sustainability ” to make ESG adoption easier, but
pected carbon prices into their finan- also to help market players make an

cial analysis so they can be prepared informed choice.
for a world with more explicit carbon Having acknowledged the impor-
pricing, whatever form those prices
tance of ESG, it is also important to

take. C.P. Gurnani, CEO, note that sustainability when seen
At the same time, investing in sus- Tech Mahindra from the business point of view is a
nascent process. It will take some
tainable business practices that reap

benefits, is a long-term process. One should also be wary time before we can acknowledge the merits and demerits

of bigger companies with more resources who can easily it has on businesses and investors alike. For the more en-

invest in and report on ESG best practices, thus skewing vironmentally conscious market player, it’s crucial to con-

the market in their favour. The ESG commitment could duct market research before buying shares. Look for com-

also sometimes emerge as marketing stunts or gimmicks. panies that are in line with your financial ambitions and

If investors fail to see through these factors they might lose ethical beliefs. The ESG principle is not a one-size-fits-all,

out on profitable ventures while being blinded by the ESG it has to be tailored to specific entities, be it a conglomerate

promise. or an enterprise.

23 April 2022 | BW BUSINESSWORLD | 73

S US TA IN A B IL I T Y “We must develop
renewable, low-
carbon technologies
across the board”

By Team BW

Bhupender Yadav, Minister SPEAKING TO BW Businessworld
of Environment, Forest on the occasion of the second edition
and Climate Change of India’s Most Sustainable Compa-
in a conversation with nies (IMSC), a BW Businessworld
initiative, Yadav congratulated large
corporates who scored high on the
BW IMSC list. The minister said
BW Businessworld said that the public and private sectors,
that the government civil society organisations, communities, households and
is giving a big push to individuals all play important roles in addressing these
renewable and low-carbon challenges to achieve climate-resilient development that
benefits the most vulnerable.

Talking about the G20 Summit, he said, “It has put cli-
mate change firmly on the financial stability agenda. The

technologies through point which has been emphasised is that not only is there
the promotion of varied a need for greater investment, it would also be necessary
means, including biofuels that these investments are sustainable.”

He cited SEBI’s Business Responsibility and Sustain-
ability Report and said it is one such remarkable initiative

and green hydrogen. He that nudges businesses to contribute towards wider devel-
opment goals while seeking to maximise their profits. It

urged sectors to prepare allows reporting on Environment, Social and Governance
roadmaps for low carbon (ESG) indicators. “In the transformation of industries
emission pathways particularly caused by climate change we must ensure
that our micro, small and medium enterprises (MSMEs)
are not left behind and provide them the space and time

to undertake this transition in a profitable manner,” Yadav

said. He added that it is important that top-ranking com-

panies come forth as leaders and bring onboard MSMEs

74 | BW BUSINESSWORLD | 23 April 2022

shift towards addressing climate

change through a mix of fiscal

and policy measures,” he said.

Yadav urged the industry bod-

ies and sectors to prepare road-

maps for the low carbon emission

pathways and implement them.

The Indian cement industry has

exhibited pioneering measures

and achieved one of the biggest

sectoral low carbon milestones

across the world.

“We must ensure that sustain-

able lifestyles and climate justice

are at the core of this journey. I

am hopeful that with active co-

operation from the private sec-

tor, India will be able to reduce

carbon emissions and achieve a

net-zero target to build a more

environmentally sustainable

planet,” he said.

“Under PM Narendra Modi’s

leadership, India is among the

few countries that not only set

nationally determined contri-

butions in 2015 but achieved

them before time, setting an

“Developed example for others.” he shared.
nations will
by assisting them with knowledge, skills have to give Underlining that the PM has often talked
and capacity building so that principles of two facilities about climate justice, Yadav said devel-
sustainability are adhered to by all. oped nations who are chiefly responsible

While talking about the energy sector, to developing for carbon emissions must take responsi-
Yadav said, “We recognise that coal is our nations — bility. The developed countries have ac-
key fossil fuel resource and we cannot knowledged this earlier and also pledged

abandon it overnight because the devel- $100 billion to the developing countries,
oped countries, who depend on oil and gas, he noted. “If the fight against climate
say so. But we will develop it responsibly, change has to be fought by the developed
climate financemoving towards cleaner production of en-
and developing nations together, then

ergy and other processes.” developed nations will have to give two
facilities to developing nations — climate
and technologyHe also said that we must develop renew-
transfer”
able and low-carbon technologies across finance and technology transfer,” Yadav
the board. The government is giving a big said.

push to such technologies through the During the COP26 meet in Glas-

promotion of varied means including biofuels and green gow, the PM talked about various aspects of India’s

hydrogen. “Industry sectors together contribute about fight against climate change, including the country’s

30 per cent of the total CO2 emissions and thus, efforts to vision to achieve carbon neutrality by 2070, shared Ya-

drive low carbon development pathways are critical for dav. The share of developed countries, which accounts

achieving the goals of the Paris Agreement,” added Yadav. for 17 per cent of the world population, in global carbon

“The Union Budget (2022-23) rightly so has included emission is 60 per cent, while that of India, which is

sustainability at its core as a way to run its growth en- home to 17 per cent of the world’s population, is just 4

gine. The government has successfully demonstrated the per cent, he added.

23 April 2022 | BW BUSINESSWORLD | 75

S US TA IN A B IL I T Y BUILDING challenges could be ad- to support electric vehicles
A SUSTAINABLE dressed by rewriting the by introducing subsidies
contracts between busi- and setting targets to tran-
FUTURE nesses and societies and by sition in a time-bound man-
aligning business goals with ner. We have set ourselves a
SanjivMehta,MD andCEOof socio-economic growth. target of net zero-emission
HULsaysit’stime tocelebrate by 2070. A lot will have to be
thebestsustainablepractices Realigning Goals done to achieve these goals,”
With over 65 per cent of the Mehta emphasised.
By Resham Suhail population below the age
of 35, India has the demo- Commenting on what
graphic advantage to act HUL has been doing, Mehta
upon the many opportuni- said, “Hindustan Unilever
ties, Mehta said. has three stated core be-
liefs—Brands with purpose
“We also have an extraor- grow faster, People with pur-
pose thrive and Companies
with purpose last longer.”

O UR planet has witnessed it all—from Sanjiv Mehta, M D and What should be done?
pandemic to calamities to geopolitical
crisis. The time to act is now! The time CEO of HUL “Companies should set
is now to celebrate and acknowledge audacious sustainability
the best sustainable practices and mo- dinary reservoir of public goals, transition to renew-
tivate corporations to collaborate in a better way and business leadership able energy, integrate equi-
said Mehta of Hindustan Unilever while sharing his talent who are committed ty, diversity, and inclusion
views on sustainability for corporates at the second to building a new sustain- into the foundation of the
edition of BW Businessworld’s ‘Sustainable Con- able era,” HUL’s Mehta businesses and embed sus-
clave’. “The greatest threat to our planet is the belief mentioned while speaking tainable practices into the
that someone else will save it,” Mehta said. on how India can attain a entire supply chain,” that
He added that developed nations take the lead, sustainable mark across was the mantra spelled out
developing nations then follow and take action to various levels. by Mehta.
mitigate the impact of climate change. Enormous
“India has activated a far- In recent months, Me-
reaching policy framework hta has consistently said
that the climate crisis and
healthcare are the two big
lessons that businesses and
people the world over must
focus on as part of the takea-
ways from recent events like
pandemic and changing
climatic conditions and its
adverse effect. He said re-
cently, “as a world, we have
to stop procrastinating and
take concrete steps. And as
businesses we have to adopt
sustainability as a business
goal.” He also believes that
India can become the af-
fordable healthcare capi-
tal of the world, winning a
greater share in global API
manufacturing.

76 | BW BUSINESSWORLD | 23 April 2022 Photograph by Bobby Singh

S US TA IN A B IL I T Y C. P. Gurnani,
MD and CEO,
Tech Mahindra

REDUCE, REUSE, strated work done by Tech defined sustainability in
RECYCLE, Mahindra in the sphere of his own words. He can-
RECOVER sustainability, ESG and didly shared his insights
CSR, C. P. Gurnani said, and mentioned that the
C.P.Gurnani,MDandCEO, “Sustainability is not cor- pandemic has exposed the
TechMahindrashares porate but it has become fracture in our society. “We
personal.” Adding further are conscious that we cre-
insightsonsustainability to it, he said that around ated this mess, inequitable
By Resham Suhail 150,000 Tech Mahindra growth, and imbalance,”
associates including all he added.
C.P. Gurnani, MD and CEO, Tech Mahi- stakeholders take pride in
ndra firmly believes that the 4R mantra bragging about all the ini- Organisations can play a
of Reduce, Reuse, Recycle and Recover tiatives we lead vital role in bringing trans-
is the only way to restore the world of formations across levels.
yesterday. Linking the core idea of Gurnani emphasised
sustainability with one of utilising technology in a
Living in the era of innovative technologies, his childhood anecdotes, systematic way to meas-
from introducing hybrid-electric equipment and Tech Mahindra’s Gurnani ure carbon emissions and
fully electrifying operations to boosting efficiency said, “My mother used to track them.
through digitisation, advanced analytics and AI, buy me clothes which were
India is poised to witness a lower-carbon future. one size larger so that she Today’s environment
While acknowledging with pride, the demon- will be able to sustain them of data, blockchain and
for a much longer time pe- artificial intelligence
riod.” gives corporations plen-
ty of opportunities to
GreenTech push create measuring met-
“To be able to extend the rics to lead GreenTech
life of any product where corporates initiatives.
not only one can sustain
it but will also be able to Greener Future Gurnani
reuse it,” C .P. Gurnani called for a promise and
stated, “We as leaders shall
drive passion for purpose
and influence people to
make sustainability a per-
sonal initiative.

Organisations, ESG
funds, employees and top-
tier leaders have realised
that ‘the resources are lim-
ited’. Corporates can help
the ecosystem to revive by
bringing in purpose-led
ESG plans empowering
all three pillars.”

23 April 2022 | BW BUSINESSWORLD | 77 Photograph by Bobby Singh

S US TA IN A B IL I T Y GUEST COLUMN

By K. K. Natrajan

BATTING FOR
A GREENER
TOMORROW

TRUST IS AN intangible asset that reaps such issues. Sustainability countries and jurisdictions
tangible results. A business organisa- reporting not only ensures in the region are among
tion can run smoothly only if it is able to transparency and account- the global leaders includ-
garner the trust of all the bodies that di- ability but also measures ing India with 98 per cent
rectly or indirectly influence its business the intangible impact a reporting. Also, with the
activities. With an increasing focus towards sustain- business has, something beginning of FY 2022-23,
able development across the globe, the responsibility that traditional financial the SEBI has made it man-
of ensuring sustainable operations passes on to vari- reporting does not deal datory for top 1,000 com-
ous stakeholders and the role of business organisa- with. According to the re- panies to include BRSR
tions particularly lies at the core of it. cent KPMG Survey of Sus- (Business Responsibility
tainability Reporting (The and Sustainability Report)
Beyond traditional financial reporting time has come, 2020), sus- in their annual reports dis-
With stringent environmental restrictions in tainability reporting in the closed to stock exchanges.
place, harmonising a company’s existing opera- Asia Pacific has grown by
tions with sustainable norms is the need of the 6 percentage points since New initiatives
hour. To illustrate, road congestion due to traf- 2017 to 84 per cent. Many The recently held COP26
fic jams is a common scenario across the world.
While traffic jams increase the consumption of
fuel, they also deteriorate the quality of life and
negatively impact the environment. If we go by the
conventional standards of financial reporting, the
increase in the consumption of fuel only captures
the increase in sales of the fuel-producing compa-
nies while ignoring the damage caused to the envi-
ronment. It is integrated reporting that highlights

78 | BW BUSINESSWORLD | 23 April 2022

With an increasing focus towards sustainable development
across the globe, the responsibility of ensuring sustainable
operations passes on to various stakeholders and the role of

business organisations particularly lies at the core of it

summit has further minimising the environ- positive value for all its the environment at large.
brought into prominence mental impact of their op- partners, stakeholders, It is through the principle
the need to address en- erations and contribute to and the society at large. of the four Ps – people,
vironmental considera- the socioeconomic devel- Sustainability reporting planet, profits and part-
tions with urgency. While opment of communities. is the medium through nerships, sustainability
announcing that India which the companies can reporting becomes an in-
would adopt a net-zero In the manufacturing disclose their sustainabil- tegral tool for the compa-
emissions target by 2070, space, the possibility of ity practices and commu- nies to disclose their sus-
Prime Minister Naren- the same lies in how fast nicate their progress with tainable practices to their
dra Modi underlined the companies can adopt in- respect to sustainable stakeholders.
need for lifestyle changes novative practices in their developments to various
as the greatest solution to manufacturing processes. stakeholders. Sustainability as a focus
climate change. As a result, the industry in the overall ecosystem
is witnessing concepts For chemical compa- is making great strides in
The rising consumer like water-free cleansing, nies, maintaining adher- recent times. Budgetary
consciousness has led to green chemistry, mild sur- ence to sustainability support by the govern-
an increased demand for factants, circular economy, practices becomes a man- ment with a prominent
products that are not only plastic-free packaging, date because chemical focus on circular economy
safe for their bodies but are and much more. companies have earned a and carbon neutrality is a
also safe for nature. Thus, reputation for being one of highly welcoming initia-
in today’s world sustaina- Green chemistry the most polluting indus- tive as we march ahead to-
bility and business growth A company should aim to tries. Objective reporting wards meeting sustainable
are intertwined. It is the decouple economic growth aids in exiting this bias development goals.
sustainability initiatives from ecological and so- and evaluating the actual
that help organisations in cial issues while creating impact a company has on The author is the COO of Galaxy
Surfactants Limited.

Photograph by Twenty20 Photos 23 April 2022 | BW BUSINESSWORLD | 79





IN CONVERSATION

“The entire
constitution is
under review,

so is the
devolution of
power in Jaffna”

SriLanka’sForeignMinisterGAMINI LAKSHMAN PEIRIS
speakswithManishKumarJhaofBWBusinessworld
ontheentirerangeofissuesthatreflecttheseverityof

thecurrenteconomiccrisisandthemeasuresneededto
alleviatethesituation

How do you look at the bilateral relations with India amid the complex geopolitical environ-
ment in the region? And while India puts ‘neighbourhood first’ in its foreign policy, do you
also see the relations in a similar way with India?
Certainly, the emphasis is on economic objectives. We have 66 missions abroad and we have
told all of them in very clear terms that their priority this year should be economic diplomacy, by
which we mean trade, investment and tourism. Our relationship with India is at a very satisfying
threshold. In every sector, be it the power sector or tourism sector, there is closer integration. For
instance, Ceylon Electricity Board can produce approx. 4,300 MW of electricity, while NTPC, an
Indian company, produces about 60,400 MW of electricity. We are also interested in generating
wind power in Mannar Island and district, which the Adani group and others in India are keen
on developing.

Then if you take the oil, petroleum gas sector, we concluded the Trincomalee oil tank coopera-
tion. We have 99 tanks there which had been lying idle for 17 years. But now that has been sorted
out, we have entered into a joint venture where 51 per cent stakes will be held by Ceylon Petroleum

82 | BW BUSINESSWORLD | 23 April 2022

Corp (CPC) and 49 per cent by Lanka India Oil Corporation according to the country’s Central Bank. How do you
(LIOC). So the storage capacity is very useful. With fluctu- look at India’s approach and initiatives in mitigating the
ating oil prices, we can store oil when the prices are good. prevailing economic crisis? In the light of our bilateral
And also, since India is the third-largest oil consumer in the relations, what are your expectations?
world and since Sri Lanka would have to access international India’s contribution is definitely going to help us to tide over
markets to purchase oil, it would make sense for us to access the immediate problems, which are quite acute. We have the
international markets through India. There would be price $1 billion credit line, which was finalised in New Delhi in
advantage. March this year. India’s Finance Minister Nirmala Sithara-
man and External Affairs Minister S. Jaishankar were pre-
In terms of tourism, about one-third of the tourists arrive sent with our Finance Minister Basil Rajapaksha. The credit
in Sri Lanka from India. And there is considerable interest line is for food items, medicines, cement for the construction
from India to invest in the hospitality sector, for example, industry and so on.
Taj Hotels.
Also, $500 million is being made available to us by India
The Sri Lankan government settled the $500 million for the purchase of oil. India has also extended a $400 million
due on sovereign bonds in January and the gross official currency swap to Sri Lanka under the SAARC framework,
reserves stood at $2.36 billion at the end of January, while Asian Clearing Union (ACU) has given two additional

23 April 2022 | BW BUSINESSWORLD | 83

IN CONVERSATION

months for the settlement of the $515 million payment. Colombo Port city, West Cost Terminal, East Coast ter-

However, we have to think for the long-term as well. Col- minal,amongothers.Howwillsuchmegaprojectsbuild

laboration with the International Monetary Fund (IMF) is upscaleandcapacityandhowconfidentareyouofbring-

being looked at seriously. We have received assistance from ing back economic growth on track?

other countries as well. But all of them will derive comfort All mega projects were negotiated carefully. The agree-

from negotiations with the IMF. And that is the way we are ment that we entered into was with the People’s Republic

headed. of China, Hambantota sea port, then Port City Project, and

Batticaloa Airport. There are extensive projects in regards

Even though your immediate requirement is be- to highways, railways etc. For Hambantota, we had paid

ing fulfilled, you need to have a substantial corpus of back a substantial amount of what had been borrowed. But

funds – probably to the tune of about $10-12 billion to unfortunately, at that point of time, there was disruption.

get the economy on track. So It happened after the new regime

what are you looking at in the took charge. A very clear example

long-term? of this is when Mattala Airport was

There are other large payments used for paddy storage purposes. If

which are due, for instance, $1.5 bil- that kind of disruption would not

lion in July. So that is why we need have happened we would have pro-

medium-term stability. It is not just ceeded with the payment.

a question of raising money for im- Besides India, other countries are

mediate purposes, though that is evincing interest in the Colombo

necessary and we appreciate the as- Port City Project. France is inter-

sistance we have got from India and ested in building a hospital there,

other countries. However, there has while the British are thinking of a

to be a longer term strategy and that state-of-the-art school. So, it is in

is where the institutions like the every way, a sustainable project.

IMF would come in. As for the Western Terminal, we

We had a similar situation in “We can accept great- expect to start the dredging work
1991 and we had to restructure er autonomy for the within three months. Adani is the
major player with local partner

the economy. In a situation like banks with the Inter- John Keells Holdings. So all these
this, for example, do you think national Monetary sustainable projects will be up
the IMF will put forth some con- and running soon and are going to

ditions and ask for the greater Fund but it will not be make a significant difference to our
autonomy for the Central Bank? a zero-sum game” economy.
All of that would need to be dis-

cussed with the IMF. We can accept It is often argued that Sri Lankan

greater autonomy for the banks economy is too dependent on

with the IMF but it will not be a zero-sum game. With the China and majority of the projects are funded by China.

IMF, there is every possibility for Sri Lanka to indicate what How valid is this argument?

our requirements are and what we can accept as conditions We are not too dependent on China. In fact, Indian invest-

— of course as you say, greater autonomy for the banks, ment is Sri Lanka is also huge. India has made investments

greater fiscal discipline, enhancing revenue, and pruning in substantial housing schemes in the plantation areas, in

expenditure. Those are the standard terms and conditions. power projects, into fisheries and harbours and the Jaffna

So those will obviously have to be discussed. Cultural Centre, among others. There is an agreement with

As for the precise modalities, there is considerable scope regard to the purchase of two Dornier Aircraft and a Float-

for manoeuvre in the sense of indicating the specific require- ing Dock.

ments of the country in question. It’s not a one-size-fits-all I want to stress that Sri Lankan foreign policy has no ele-

formula. ment of exclusivity with regard to political relations or in-

vestment or trade. There’s no personal relationship with

A lot of port infrastructures projects are being planned any country which is exclusive, and at the expense of all the

and some of them are being implemented, for instance, others — that is certainly not the way that Sri Lankan foreign

84 | BW BUSINESSWORLD | 23 April 2022 Photographs by MEA/@DrSJaishankar



IN CONVERSATION

“We have the $1 billion credit line, which was
finalised in New Delhi this year. Also, $500
million dollars is being made available to us by

India for the purchase of oil”

policy is being conceived of. in the overall context. And, since the bilateral relationship
between Sri Lanka and India is healthy and there is poten-
Despite the historic bilateral relations with India, there tial for even further development, this matter needs to be
are some conflicting issues over the fishing rights in the resolved amicably.
Palk Strait coastal areas. What are your suggestions for
removing such a ‘constant irritant’ in our relations? What is the final political solution to the North East Con-
Fishing rights have has been a problem for a long time, which flict in Sri Lanka? What is your perspective on the 13th
really needs to be resolved because it is causing considerable amendment and the questions related to the ‘Devolution
tension among the northern part of Sri Lanka. The Tamil of Power’ for the Tamil minority in North East Jaffna?
fishermen in the North are being deprived of their livelihood. You’re probably aware that there is an expert committee,
And, the most strenuous is the bottom trawling. which has been appointed by the President to look into as-
pects of our Constitution, including the Devolution of Power,
The number of Indian vessels entering our waters and the 13th Amendment, and the relationship between the
coming very close to the shore is increasing. So when the In- central government and the provincial council.
dian fishermen and their boats are taken into custody, there
is always a strong pressure to release them. So, this is an exercise, which is now underway. And it is cur-
rently at the stage of being drafted by the expert committee
So this has been happening and now there is mounting on what they consider to be the appropriate constitutional
pressure from the fishermen in the northern part of Sri Lan- provisions. It’s now being put into the appropriate legal for-
ka to discontinue this practice. mat by the legal draft department and we expect this draft
to be submitted to the government within the next couple
It has been suggested that there should be discussions of months.
with foreign ministers and the fisheries ministers from both
sides in order to come up with a joint working mechanism. Then it [Constitutional Draft] goes into the Parliamentary
process -- select Committee of the Parliament, consisting of
There was a suggestion some time ago that these discus- all political parties in the Parliament. Then of course, the
sions should commence at the level of Cooperative Society plenary session and the debate will take place in the Parlia-
of the fishermen from across the Palk Strait. ment. So the entire structure of the Constitution is under a
comprehensive review at the moment.
Unfortunately, there has not been much progress. So, with
increasing impatience, I guess, I used the word ‘constant
irritant’ and it is a problem that now demands solutions

86 | BW BUSINESSWORLD | 23 April 2022 Photographs by MEA/@DrSJaishankar

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IN DEPTH LANDMONETISATION

Mission Land
Monetisation

The creation of the National Land Monetisation Corporation (NLMC)
to monetise surplus land and building assets of the government

and the public sector is a landmark move whose success will solely
depend on time-bound execution

By ASHISH SINHA

88 | BW BUSINESSWORLD | 23 April 2022 Photograph by Amlanmathur

DID YOU KNOW THAT the defence ministry and In- TASK BEFORE NLMC
dian Railways are sitting on nearly 30 lakh acres
of land between them? Also, that the central pub- Monetise surplus land with
lic sector undertakings (PSU) are holding a large CPSEs up for sale
amount of surplus, unused and under-used non- Defence land: 17.78 lakh acre
core assets including land and buildings with po- Railway land: 11.8 lakh acre
tential to generate trillions of rupees in revenues? CPSEs land: 3,400 acre
Well, the government has for some time been NLMC to hire from private
thinking of monetising these assets to unlock their value particularly in sector
case of CPSUs undergoing strategic disinvestment or closure. Big opportunity for realty
sector
After announcing its intentions to monetise surplus land in this year’s NLMC will need specialists
Union Budget, the government in March set up the National Land Mon-
etisation Corporation (NLMC) for undertaking monetisation of surplus
land and building assets of not just central public sector enterprises
(CPSE) but also other government agencies. NLMC has the mandate
to execute the monetisation of land, which can be through direct sale
or concession. So how will NLMC go about it? By when will it finish the
job? What will be the role of private entities in NLMC?

Defence & Railway Land
The defence and railway ministries possess the largest parcels of land. Thank-

23 April 2022 | BW BUSINESSWORLD | 89

IN DEPTH LANDMONETISATION

fully, most of the surveying and cataloguing of defence land end up hiring experts from the private sector as well.
parcels was concluded earlier this year by the Directorate Let us look at the land lying with the railways. Of course, the
General Defence Estates (DGDE). It completed the exercise
of surveying 17.78 lakh acres of defence land. We now know share of the railways is much less (around 11.8 lakh acres of
that out of 16.38 lakh acres of defence land, about 18,000 acres land) compared to defence. Also, vacant land belonging to the
is state hired land. This may get transferred to state govern- railways is only around 1.25 lakh acres, mostly in the form of
ment departments, sources say. A dozen or so major Indian narrow strips along railway tracks (kept for future expansion).
ports also hold more than one lakh hectares of land. Most of As per an official estimate, the railways have around 43,000
this has been leased to government departments -- whether acres of vacant land (meant for commercial utilisation). This
state government or central agencies. NLMC will be needed would be the area of focus for NLMC.
to tackle these issues first. Which means NLMC will have to
At the same time, there are railway land parcels that are
being utilised for revenue generation through commercial

IN CONVERSATION

‘MANDATE IS
TO ENSURE
SOCIO-ECONOMIC
TRANSFORMATION…’

The Rail Land Development Authority is key
to innovative development of vacant land
parcels. Ved Parkash Dudeja, Vice Chairman,
RLDA talks to ASHISH SINHA about ongoing
work and much more. Excerpts:

What is the mandate of RLDA besides station rede-
velopment?
RLDA is involved in colony redevelopment, develop-
ment of multi-functional complexes and leasing of com-
mercial sites that will fuel the economic growth in the
respective geographical regions.

How much vacant land is with the railways?
How is RLDA helping?
The Indian Railway has approximately 43,000 hectares
of vacant land. Our primary objective is to stream-
line commercial development that will put vacant
land parcels to better use and usher in planned urban
development across India. Subsequently, the growth of
innovative development hubs will generate employment
opportunities, boost tourism, empower retail and realty

90 | BW BUSINESSWORLD | 23 April 2022

development by a specialised agency called the Rail Land be from RLDA? According to Dudeja, more clarity is awaited
Development Authority (RLDA). As on date, RLDA is com- and therefore one must wait. However, government sources
mercially developing 85 land parcels covering an area of say some sort of a coordination wing will be built into the
254.33 hectares, confirms Ved Parkash Dudeja, Vice Chair- functioning of NLMC and RLDA with each knowing their
man, RLDA. “We are developing 1,000 commercial sites. respective area of the vacant land. “NLMC will mostly concen-
Besides station redevelopment, RLDA has other key man- trate on CPSEs and their land. There are about a dozen railway
dates. These include colony redevelopment, development of PSUs. May be NLMC will closely look at those land parcels
multi-functional complexes and leasing of commercial sites falling under the railway PSUs,” a senior official involved with
that will fuel economicgrowth in therespectivegeographical the matter says. More on RLDA and its work later. First, let us
regions,” says Dudeja. deep dive into what NLMC would be doing?

So, what will be the role of NLMC and how different it will Decoding NLMC
NLMC will have an initial authorised share capital of Rs
sectors and ensure a socio-economic transformation 5,000 crore and paid-up share capital of Rs 150 crore. It will
that will have a cascading effect across all allied indus- be directly under the Ministry of Finance. Going forward, the
tries. Department of Public Enterprise, Ministry of Finance, will set
up the company and act as its administrative ministry.
How was the last financial year for RLDA? What
were the key land banks that were monetised? The NLMC board will comprise senior government officers
FY20-21 was a difficult time for the entire world due to and experts. NLMC will also have a chairman as well as non-
Covid-19. The worst effected sector was the real estate. government directors to be appointed through a merit-based
The financial progress of RLDA was also adversely selection process. Experts say this will allow for some sort of
affected. Although we invited bids for a number of land participation from the specialists in the private sector. There
parcels and railway colonies but we could award lease are more than half a dozen foreign-aligned real estate con-
contracts of only three commercial sites and one colony sultancy service providers who mostly execute what NLMC
during FY21 with total considerations of Rs 166 crore is envisaged to do, but for the private sector.
due to poor participation. During FY22, RLDA leased
out various sites at Chennai, Amravati, Aurangabad “Real estate monetisation requires specialised skills and
(Maharashtra), Asansol (West Bengal), Bareilly (Ut- expertise in areas such as market research, legal due diligence,
tar Pradesh), Ambari (Guwahati) etc. RLDA has also valuation, master planning, investment banking and land
leased out railway colonies. i.e., Chilkalguda and Rifle- management. Private entities may be engaged for this,” says
Range colonies (Secunderabad) and Rajkot Railway a senior official.
Colony in the current financial year for redevelopment.
Modelled After RLDA?
What is the outlook for 2022-23? While there is not much clarity yet on the constitution, func-
Till December 2021, RLDA awarded lease contracts tioning, timelines, legal hurdles, among other challenges
for seven commercial sites and redevelopment of two facing the operationalisation of NLMC, it is being guessed
colonies with total consideration of Rs 447 crore. In that the inspiration would be the Rail Land Development
next few months, RLDA is looking at land parcels at Authority (RLDA) which was established on 1 November
Bhavnagar, Sawai Modhopur, Nizamabad, Gomti 2006. RLDA is a statutory authority, under the Ministry of
Nagar, Waltax Road, (Chennai), Salt Golah (How- Railways, set-up by an amendment to the Railways Act, 1989
rah), Egmore (Chennai), Loco Colony (Patna), Abu for development of railway land.
Road, Udaipur, Rajkot, Aurangabad, New Jalpaiguri,
Prayagraj, Liluah, Howrah, Nizamabad, Telangana, If modelled on the lines of RLDA, NLMC will have a clear
Ramgarh Tal, Gorakhpur, etc. organisational structure, budget, and mandate. It has taken
RLDA more than 15 years to reach the current stage with
FY2019-20 turning out to be its best. It is learnt that NLMC
will have a minimal full-time staff on a contract basis. And
funds would be provided for meeting those expenses. “Flex-
ibility will be provided to the Board of NLMC to hire, pay and
retain experienced professionals from the private sector,” the
government said. Let us hope NLMC is able to achieve its
goals and help generate revenue as envisaged.

[email protected]; @Ashish_BW

23 April 2022 | BW BUSINESSWORLD | 91

COLUMN By Viiveck Verma

The A high-trust culture
Significance Diversity and inclusivity have been found
of diversity to be in direct correlation to profit mak-
and inclusion ing and business expansion. McKinsey’s
at the 2019 analysis found that companies in
workplace the top quartile for gender diversity on
executive teams were 25 per cent more
I TISTHEERAOFGLOBALISED connectivitiesandworkplacesarebecomingmore likely to have above-average profitability
dynamic than ever. With Covid-19, consequent challenges and a shift to digital, than companies in the fourth quartile —
modern work is all about increased flexibility, accommodation and adaptability. up from 21 per cent in 2017 and 15 per
In the same regard, accommodating people across the social spectrum and en- cent in 2014.
suring representation continues to be important. Across the various distributive
inequalities that mark our socioeconomic existences, work continues to promise a Great Places to Work’s research es-
site where hard work pays off and inclusivity and diversity go a long way in bolstering tablished that diverse and inclusive
its sanctity. workplaces have seen 5.4 times higher
employee retention than a usual work
setting, increased ability to recruit a
differentiated, specialised talent pool,
greater readiness to innovate as well as
higher revenue generation.

Their study showed that when em-
ployees in a high-trust culture experience
a caring workplace, they are 44 per cent
more likely to work for a company with
above-average revenue growth and con-
sequently racially diverse organisations
averaged 11.1 per cent growth against the
8.6 per cent of companies with the most
disparities.

Perspectives and ideas
This has obvious reasons. To innovate
effectively, you need to have a multi-
tude of perspectives and ideas, instead
of being trapped in a homogenous echo
chamber. With greater representation
and an increased variety of ideas, inspira-
tion and rigour follow because of the fact
that everyone can bring something new
to the table. It is also essential to build a
better world, as when groups which had
been denied equal access to work start
speaking, we move towards greater en-
lightenment, new idioms of productiv-
ity and a new vibrant community with a
polyphony of expressions. It is among the
surest keys to combat gender inequality,
class disparities, racial discrimination
and other ills by empowering everyone
on the same platform.

92 | BW BUSINESSWORLD | 23 April 2022

Diversity and inclusivity have been found to be
in direct correlation to profit making and business expansion.

McKinsey’s 2019 analysis found that companies in the
top quartile for gender diversity on executive teams were
25 per cent more likely to have above-average profitability

than companies in the fourth quartile

Valuing people in all areas the 500 CEOs, only three are black,
However, the task is not simple in the slightest and requires conceptual clarity before another three belong to the LGBTQ+
action. Diversity and inclusion are often spoken of in the same vein and conflated, and community. Therefore, a company has
while they might be interlinked, they cannot be interchanged. Diversity is about the to stay committed, despite initial steps
composition of an organisation and the representation of different groups while inclu- of hiring, to include voices irrespective
sion is about how the impact and value of these diverse contributors are synergised at of their age, race, gender, religion, sexu-
the workplace. For the workplace to be diverse and inclusive, everyone from different ality, physical conditions and so on and
origins in their different roles have to be equitably accommodated and valued. This is a have suitable policies for the protec-
complex terrain. Expert Matt Bush asks the right questions in this regard, with respect tion of the interests of employees and
to valuing people in all areas. have adequate space for mentoring and
support.
The “all areas” part is important. Do you have diversity in your recruiting, in each of
your departments, and in your leadership? Or do you have a workplace where 50 per To sum up, keeping diversity and in-
cent of your employees are women but 0 per cent of your women are managers? Do clusion at the centre of our professional
you have good representation of employees of colour overall, but all of them are in the endeavours is a leap towards greater
same department?” success, innovation and a better world.
The task is not easy in a world with di-
Questions like these are necessary in a world of promotional stunts and compro- vides but is a worthy step in the right
mised aspirations of inclusivity. Hiring for diversity heedlessly is not enough, it is direction and we must fuel ourselves
important to build a workplace that sustains it. To this end, distribution of role-respon- to take it.
sibilities and privileges has to be democratised. It is also necessary to acknowledge the
unequal state of affairs as they exist. The author is
Founder & CEO of UpSurge Enterprise Solutions
A survey report from Boston Consulting Group (BCG) found that among the For- Pvt. Ltd. and Senior Advisor at Telangana State
tune 500 companies, only 24 CEOs happen to be women, which represents just five
per cent of the total number of CEOs and the same report pointed out that, among Innovation Cell (TSIC).

Photograph: Milkos 23 April 2022 | BW BUSINESSWORLD | 93

COLUMN By S. Ravi

Insurance T HEGOVERNMENThasun-
Schemes, dertaken deep structural
General Public and sustained reforms
& Covid-19 over the last few years.
Pandemic Among the sectors it has
focused on are the health
and insurance sectors. The Union gov-
ernment introduced the flagship Ayush-
man Bharat (PM-JAY) scheme, among
its most ambitious schemes, to increase
awareness and bring more citizens under
insurance coverage.

The Covid-19 pandemic has also cre-
ated growth opportunities for the sector.
The insurance sector categorised into
life, general and health insurance, com-
prises 54 insurance companies of which
24 are life insurers. The life insurance
policies have increased and approxi-
mately 28 million new policyholders
were acquired by the insurance compa-
nies in the FY 2020-21.

A notable reform, ‘the FDI cap’ for the
insurance sector, has increased from 49
per cent to 74 per cent. The increase in
the limit was primarily focused on at-
tracting foreign investors to this sector,
as it is highly capital intensive and has a
long gestation period. Insurance compa-
nies take seven to ten years to break even
and start becoming profitable.

This reform will enable insurance
companies to raise funds to ensure
maintaining their solvency in line with
their growing business needs and also
augment foreign inflows and help at-
tract more foreign companies. In order
to bring in more clarity on the Indian
owned and controlled aspect, announced
vide the October 2015 guideline, the In-
surance Regulatory and Development
Authority of India (IRDAI) vide circu-
lar dated 30 July 2021, omitted the said
concept, which was a grey area and open
to varied interpretation and disputes.

The IRDAI introduced the Aadhar
Authentication (e-kyc) and video au-
thentication so as to enable insurance
through a simpler process. This move

94 | BW BUSINESSWORLD | 23 April 2022

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COLUMN By S. Ravi

Initiatives taken by the government and the fect from 1 August 2020.
IRDAI will aid in creating awareness about The concept of a pay-as-you-use mo-
the need for insurance amongst the general
tor insurance plan has been launched to
public as well as policyholders and in allow policyholders to switch on and off
ensuring a healthy India. All regulations are their motor insurance coverage depend-
ing on their usage, resulting in reduced
centred around getting more capital, premium costs.
customer protection and product
In the health insurance space, the
standardisation. Indian insurance companies standardisation of health products has
have withstood the severe Covid-19 impact been a significant development. Health
plans have been made comprehensive.
has spurred the ongoing digitalisation health policies. These include mental disorders, Cov-
initiatives and resulted in dispensing of Health and General Insurance pro- id-19 issues, telemedicine and modern
physical policy documents. The Prad- treatments under the scope of indemnity.
han Mantri Jeevan Jyoti Bima Yojana viders have been mandated to offer the Health insurers have been allowed to in-
(PMJJBY) scheme has been amended indemnity policy. The Arogya Sanjee- crease or decrease the health insurance
to ensure that claims are settled within vani scheme was launched to cover all premium by 15 per cent after the comple-
seven days of intimation by banks with features of insurance products. All these tion of three years, a major step in their
the lien period reduced to 30 days from measures have been taken in the inter- pricing of the product.
45 days. Insurance portability guidelines est of insurers and to make the process
have been issued to allow freedom to in- simpler. However, the introduction of a change
surers to migrate. in the method of calculating unearned
The motor insurance framework un- premiums has been a setback for com-
The IRDAI introduced the product derwent a variety of key developments panies established in recent years. The
regulation in 2019 so as to introduce including withdrawal of the comprehen- move has given a distinct advantage to
prudent practices, pricing and designing sive long-term motor package cover with players who have been in existence for
the product. In June 2020, the IRDAI an aim to stop mis-selling, long-term long.
published its guidelines for Covid-19 third-party coverage for new vehicle
standard (benefit-based and indemnity) owners and scrapping of own damage Initiatives taken by the government
coverage for three or five years with ef- and the IRDAI will aid in creating
awareness about the need for insurance
amongst the general public as well as
policyholders and in ensuring a healthy
India. All regulations are centred around
getting more capital, customer protec-
tion and product standardisation. Indi-
an insurance companies have withstood
the severe Covid-19 impact.

Growth in the top line is a testimo-
ny of the inner resilience of insurance
companies and strong regulations. The
insurance sector, with increased aware-
ness in the customer base, as well as well
thought out policy changes, is poised to
grow in terms of business, top and bot-
tom line and is likely to attract good valu-
ation going forward.

The author is a practising chartered accountant
and an independent director on many large

public companies, whose views and ideas have
been instrumental in framing policy

Photograph by Lakhmi Prasad 96 | BW BUSINESSWORLD | 23 April 2022

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FOR THE 40 ACUTE FINANCIAL & ACCOUNTS MINDS IN THE COUNTRY WHO HAVE THE DRIVE AND
COMMITMENT TO BRING ABOUT A CHANGE IN THEIR ORGANISATION AND THE INDUSTRY.

JURY JURY MEMBER
CHAIR

Sethurathnam Ravi

Chairman
TFCI, Former Chairman
Bombay Stock Exchange

Subodh Gupta Nitin Parekh

Director Finance CFO

Bharat Heavy Electricals Ltd Cadila Healthcare Ltd

(BHEL)

Vivek Anand MP Vijay Kumar Sonam Donkar Dr. Annurag Batra Noor F Warsia Madhumita
Chakraborty
CFO CFO CFO -Aluminium Chairman & Editor-in- Chief Group Editorial Director
Associate Editor
DLF Limited Sify Technologies Vedanta Ltd. BW Businesswolrd and BW Businessworld
BW Businessworld
Founder, exchange4media

For Speakership Sanya Kapoor | [email protected] | +91 99536 81006
and Nomination
Somyajit Sengupta | [email protected] | +91 98182 47444
For Sponsorship: Talees Rizvi | [email protected] | +91 93106 34007

COLUMN HEALTHCARE

Innovation in the
field of nutrition
and supplements

As consumers demand more from the food vitamins, minerals, and
system to support their health and wellbeing, dietary supplements is
innovation in targeted nutrition continues to spurring innovation.
growandevolve By Varun Suri However, innovation must
focus on actually address-
IN an era of rapid Consumers have become marketing campaigns ing consumer needs by
technological pro- increasingly health con- encouraging consumers to launching products that
gress and rewards scious in recent years. The increase their intake of are result-oriented and
for innovation in supplement market has vitamins and minerals to pocket-friendly.
food and nutrition also experienced tremen- improve their health.
science, there is a critical dous growth, leading to Demand for custom-made According to a report
opportunity to improve issued on February by EY
health and reduce the risk India, the dietary supple-
of disease. As more and ment industry in India
more consumers choose increased at a CAGR of
food based on their indi- roughly 15 per cent to
vidual perceptions of reach Rs 331 billion in
healthy eating, the era of FY21. This market, which
personalised nutrition is has long been deemed
dawning, where science high-potential due to the
and technology can dictate rise in lifestyle disorders,
which foods are right for has seen an accelerated
us, not only for issues like
weight management, but
more importantly, to
maintain our health and
wellness.

Ever-changing health
trends and a wealth of eas-
ily accessible health and
nutrition information are
blurring the boundaries of
the types of foods consum-
ers use to maintain health.

98 | BW BUSINESSWORLD | 23 April 2022

adoption curve following Purposeful innovations in will be a huge break- sugar free.
Covid-19. In India, 94 per nutrition offer promising through in nutrition. Beyond sports, there has
cent of people are con- opportunities for consum-
cerned about their family’s ers and can also be used in Leveraging relevant been an increase in intake
health, compared to 82 per medical practice and food technological advances of nutrients that enhances
cent elsewhere. This report habits. and discovering new your overall personality.
titled ‘Sunrise Consumer trends in sports nutrition Keratin, a protein that
Health and Nutrition For useful nutritional is essential to maximise makes up your hair, skin,
Sector’ also showed that innovation especially in a performance and help and nails, as well as
the demand for herbal diverse country like India, active consumers achieve Rosehip, Retinol, Biotin,
supplements, vitamins, it is critical to understand the healthy lifestyle they and PABA, all increase
and minerals has increased what the specific nutri- aspire to. Finding the right your body’s keratin struc-
by more than 25 per cent tional needs of small and balance between perfor- ture. These are vitamins
in the previous year. more defined populations mance-focused and active that promote healthy hair
are – and ultimately the lifestyle products is critical growth. High quality, high
Specific needs exact, specific nutritional to improving the future purity and highly absorba-
Increased consumer focus needs of any given individ- prospects of sports nutri- ble omega-3 is another
on the benefits of protein ual – in order to increase tion. boon for Indians. It is great
has led several companies the effectiveness of nutri- to maintain heart and
to offer a variety of protein tion in relation to promot- A focus on sports nutri- brain health and is essen-
supplements. Some of the ing optimal health. A bet- tion products to improve tial for people above 30
most innovative products ter basic understanding of mental focus, energy and years. Research suggests
released last year focused metabolomics and which endurance is also impor- that aging can be con-
on immunity, mental key metabolites to use as tant for the future. trolled greatly with intake
health, and natural and indicators of optimal Branched-chain amino of omega-3.
organic products. As con- nutritional status and acids (BCAAs) are one of
sumers demand more health is the penultimate the key nutrients required In the current pandemic
from the food system to nutritional innovation. for repairing and building times, we have seen how
support their health and of muscles. Traditionally, it health, wellness and pro-
wellbeing, innovation in Combining all of the used to come without any tection have become the
targeted nutrition contin- aforementioned endpoints flavour; now through main axis for brands and
ues to grow and evolve. into one device that can innovation, it is available consumers and how this
measure our nutrition and in multiple flavours, is nat- affects the innovation of
health status in real-time urally sweetened and yet the supplement industry.
Consumers prioritise their
wellbeing and this has
spurred the growth of the
vitamin, mineral and sup-
plement industry. As evi-
dent in many areas of the
supplement industry, from
supply chain transparency
to ingredient delivery, per-
sonalisation and research;
innovative ideas are the
cogs of the industry.
Providing quality and sci-
ence to consumers at an
affordable price is the real
innovation for a health-
care company.

The author is CEO –

Consumer Division,

Morepen Laboratories

Photograph by Ross Helen 23 April 2022 | BW BUSINESSWORLD | 99

COLUMN REALESTATE

Investments capital appreciation and rental
and returns income, the requisite of a safe home
from holiday away from pandemic hotspots
homes appears to have become an impor-
tant consideration. Buyers today
How can the have understood the potential of the
consumer second homes market in India to
get assured lend profitable rental options and
rental and tax assured tax benefits on rental
benefits on income investment. Currently, the
rental income total size of holiday homes by the
investment end of 2021 amounted to Rs 1.394
in holiday billion. Second homes offering con-
homes in ducive, hygienic, and peaceful
India? options for work and stay have been
By Punit gradually gaining traction amongst
Agarwal consumers.

Let’s take a look at the factors
which indicate that the second
homes market along with being a
safe investment bet for buyers, is also
a remarkable option to earn guaran-
teed rentals.

Location is the key factor
Location of the property is the major
driving factor and there can be noth-
ing more important than the pro-
ject’s locality in terms of determining
everything right from the product,
pricing and neighbourhood. One of
the most crucial reasons for an
appreciation in the price of a prop-
erty is the location. Determining the
property’s real value encompasses
the level of development in the area
where the property is positioned.
Ensuring that the project’s location
enjoys immediacy to upcoming
infrastructure projects will help in
enhancing the property’s future ROI,
thus enlarging scope for more future
developments.

During the pandemic, the domain of holiday Professional housekeeping
homes received a massive thrust as many A buyer expects to find a clean and
buyers, caught between the conflict of the well-maintained apartment when
threatening viral wave and the peril of they arrive, but in these uncertain
future contagion, started realising the times guests are even more demand-
inherent advantage of owning a holiday home. Alongside ing that their accommodation be
spotless. If you expect good reviews,
you have to go above and beyond and

100 | BW BUSINESSWORLD | 23 April 2022