Corporate Governance Practices Of Indian Listed Companies - Free Essay Example

Sample details Pages: 12 Words: 3471 Downloads: 10 Date added: 2017/06/26 Category Statistics Essay Did you like this example? Abstract: The paper uses disclosure scores to examine corporate governance practices of Indian listed companies. A content analysis of 50 companies listed on the NSE has been carried out. A disclosure index compiled by SP has been developed to determine how much listed Indian companies disclose. Don’t waste time! Our writers will create an original "Corporate Governance Practices Of Indian Listed Companies" essay for you Create order This study reveals that Indian companies are quite transparent. The research findings shall enable the investors in estimating how much disclosure listed Indian companies make. It will also add to the increasingly inadequate literature relating to corporate governance and disclosure practices in developing countries. This study though has limitations since the focus lies only on 50 companies listed on the NSE which are the largest and most followed stocks and may not represent all Indian companies. Contents Chapter 1: Introduction Introduction Corporate governance has received increased importance in the aftermath of collapses of large companies worldwide such as Enron and WorldCom. Economies worldwide are now realizing the importance of good governance (Standard Poorà ¢Ã¢â€š ¬Ã¢â€ž ¢s 2008). The developed countries realized the importance of governance mainly following corporate scandals of the west (Reed, 2002). In some cases these scandals led to a direct response e.g. the Cadbury Report (Boyd, 1996 cited in Reed, 2002, p.228). On the other hand, in developing countries such as Brazil and India, poor economic performance had often led to economic crisis. Consequently, these countries came under the control of bodies such as International Monetary Fund and World Bank. These bodies impose many regulations which require increased attention to governance issues (Reed, 2002). As opposed to developed countries, developing countries paid no attention to governance issues until the financial crisis of East Asia in the late 90s (Oman C., 2003, Mangena and Tauringana, 2007). However, Sobhan and Werner (2003) view that these countries started giving importance to governance issues not because of the East Asian financial crisis but by problems in their own financial markets. Goswami (2003) reiterates this by writing that corporate governance movement began in India due to some corporate scandals that came to the forefront during the first phase of economic liberalization in the country in 1991. Transparency and disclosure are at the heart of corporate governance. Transparency and disclosure helps reduce the information gap between the management of a company and its shareholders and thus helps resolving agency issues in corporate governance (Patel, Balic and Bwakira, 2002). Background Fig. 1 below depicts clearly that India ranks quite high among the developing countries with respect to its governance practices next only to South Africa and Poland. Figure : Governance Ratings of Developing Countries, 2008 (Source: Governance Metrics International) Corporate Governance in India As opposed to developed countries, developing countries paid no attention to governance issues until the financial crisis of East Asia in the late 90s (Oman C., 2003, Mangena and Tauringana, 2007). However, Sobhan and Werner (2003) view that these countries started giving importance to governance issues not because of the East Asian financial crisis but by problems in their own financial markets. Goswami (2003) reiterates this by writing that corporate governance movement began in India due to some corporate scandals that came to the forefront during the first phase of economic liberalization in the country in 1991. One of these was a major securities scam of over Rupees 35 billion (Rupee 1 =  £ 0.0125, approx.) that was uncovered in April 1992 which involved a diversion of funds from the banking system to stock brokers for financing their operations. Bank executives, brokers and even politicians came under the scanner. The stock market had to be shut down for an extended period. Investors and brokers panicked. This led to the first step towards corporate governance in India when the Securities and Exchange Board of India (SEBI) was created by an act of Parliament to protect the interest of investors in the securities market and to regulate the stock market (Goswami, 2003). In 1998, the Confederation of Indian Industry (CII), an industry association published Indiaà ¢Ã¢â€š ¬Ã¢â€ž ¢s initial corporate governance code, the implementation of which was voluntary by companies and thus very few companies adopted it. Until 2000, the CII Code was Indiaà ¢Ã¢â€š ¬Ã¢â€ž ¢s only corporate governance guideline. In 1999 the Securities and Exchange Board of India (SEBI), constituted a committee to promote and raise the standards of corporate governance in India which was patterned on UKà ¢Ã¢â€š ¬Ã¢â€ž ¢s 1992 Cadbury Report. On the recommendations of this committee, a new clause 49 was incorporated in the Stock Exchange Listing Agreements (à ¢Ã¢â€š ¬Ã…“Listing Agreementsà ¢Ã¢â€š ¬?). Since 2001, the CII Code has been supplemented by Clause 49 of the Listing Agreement (SEBI, 2003). These corporate governance requirements are applicable to all listed companies in India (Government of India, 2009 and SEBI, 2009). Aims, Objectives and Research Questions The aim of the research is to develop an understanding of the practices of corporate governance in developing economies by investigating the disclosure practices of Indian listed companies. This study will cover 50 companies listed on the National Stock Exchange (NSE) which comprise the NIFTY which is the benchmark index of the NSE. SP CNX Nifty is a well diversified index comprised of 50 stocks across 23 sectors of the economy. The objectives of this study are: To develop an understanding of the importance of corporate governance and transparency and disclosure using literature review; To examine Practices of corporate governance of listed Indian companies using content analysis by studying annual reports of the companies and allocating disclosure scores. The study addresses the following research question: RQ1. How far are Indian listed companies transparent and how much do they disclose? Structure of the project The rest of the research is organized as follows. Chapter 2 provides a review of the relevant literature followed by research design and methodology in Chapter 3. Chapter 4 presents the findings and discussion. The study ends with chapter 5, conclusion which outlines the main points and findings of this study together with limitations and also raises future research questions. Chapter 2: Literature Review Introduction In the sections that follow, the existing literature on corporate governance and disclosure is reviewed. This chapter is divided into three parts. The first part discusses the importance of corporate governance; the second part presents the agency theory. The third part provides a discussion of the importance of disclosure and transparency and its relation with corporate governance. Corporate Governance is an issue of growing importance in developing countries. The Cadbury Report (1992) defines corporate governance as the system by which businesses are directed and controlled. à ¢Ã¢â€š ¬Ã…“Corporate governance involves a set of relationships between a companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined.à ¢Ã¢â€š ¬? -The preamble of the Organization for Economic Co-operation and Development Principles, 2004 (OECD) Though there have been several studies on corporate governance in developed countries, very little work has been done on developing countries. Most studies have been limited to specific countries. Developing countries encounter a lot of problems such as less developed and illiquid capital markets, economic uncertainties, and weak legal controls and investor protection (Rabelo and Vasconcelos, 2002). Due to these reasons, effective corporate governance in these countries is essential (Tsamenyi, Enniful-Adu and Onumah, 2007). Importance of Corporate Governance Good corporate governance in companies and also across the whole economy helps in providing a level of assurance necessary for the appropriate performance of a market (OECD, 2004). If the governance is weak, equity markets will be thin and thus there will be slower economic growth. On the other hand, in countries where corporate governance systems are strong (like stronger accounting standards), better investment and growth performance can be achieved (Gugler, et al., 2003). Institutions when making investment decisions, give a lot of importance to the fact as to whether the companies follow the basics of corporate governance. Thus if countries wish to attract capital for a long time, they must follow the globally accepted governance principles. Good governance also helps increase the confidence of investors within the country and thus helps reduce the cost of capital (OECD, 2004; La Porta et al, 1998; Bopkin Isshaq, 2009). Foreign investors refrain from investing in developing countries because of weaker governance mechanisms in these countries (Mangena Tauringana, 2007). Thus, companies needing external financing in the future should start adopting better governance measures in the present (Klapper et al, 2004). Many authors support the view that for the development of capital markets, effective governance mechanisms are very crucial (Rabelo Vasconcelos, 2002; Levine Zervos, 1998; Rajan Zingales, 1998). Capital markets can function efficiently if there is effective flow of information between the company and its stakeholders (Akhtaruddin, 2005). Agency Theory Many theories such as stakeholder theory, agency theory among others, express the importance of transparency and disclosure. This paper uses the agency theory as a theoretical framework and models that effective corporate governance practices including transparency and disclosure help resolve agency problems à ¢Ã¢â€š ¬Ã¢â‚¬Å" such as extraction of personal gain by majority shareholders and under or over-investment (Aksu and Kosedag, 2006). Agency theory models the relationship between the principal and the agent (Barako, Hancock and Izan, 2006). Agency relationship is a contract under which one or more persons (the principal) engage another (agent) to perform some work on their behalf. Thus the shareholders (the principal) delegate the decision making function to the manager (or the agent) (Jensen and Meckling, 1976). This separation of ownership and control leads to the incurring of certain costs also known as agency costs (viz. expenses incurred by the principal to monitor agentà ¢Ã¢â€š ¬Ã¢â€ž ¢s activities) which are not incurred if the owner and manager are the same person (Barako, Hancock and Izan, 2006). In an agency relationship, managers have an information advantage which they may misuse for their own personal interest. Conversely it may so happen that agents may disclose more information to enhance the value of the firm and to increase the flow of investment in the company by reducing the cost of the agency relationship (Barako, Hancock and Izan, 2006). Patel et al. (2002) opine that the agency problem in corporate governance can be resolved in many ways à ¢Ã¢â€š ¬Ã¢â‚¬Å" by a vigilant board of directors, by timely, accurate and sufficient disclosure of financial information and by transparency in the ownership structure. This study deals with one aspect, viz. disclosure and transparency. Disclosure and Transparency Transparency and disclosure are at the heart of corporate governance. The OECD Principles of corporate governance (2004) state that the corporate governance structure of any association should make sure that well-timed and precise disclosure of all important matters of the organization pertaining to its performance, ownership and overall governance is made. Transparency and disclosure (TD) practices followed by firms are an important component and one of the main indicators of the quality of corporate governance (Aksu and Kosedag, 2006). Companies mainly disclose through their annual reports; thus these should contain information that will allow its users to make correct decisions on efficient use of scarce resources (Akhtaruddin, 2005). In fact, a lot of what a company discloses in its annual reports and financial statements reflect its corporate governance quality (Bokpin and Isshaq, 2009). A firm if makes correct and adequate disclosure, reduces information asymmetry thereby reducing investorà ¢Ã¢â€š ¬Ã¢â€ž ¢s risk (Bushman and Smith, 2001). Similarly, Lang and Lundholm (1996) view, that by removing asymmetry in information, disclosure and transparency reduce the level of surprises relating to a firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s performance thereby making its stocks less volatile. Chapter 3: Research Methodology With the aim of examining the disclosure practices of Indian listed companies, the focus of this study is the examination of annual reports of listed Indian companies using content analysis. This chapter is divided into two parts. The first deals with research design which is content analysis for this research. The second part presents the method of collection and data analysis. Research Design Research design embodies a structure which directs the implementation of a research method and the data analysis (Bryman and Bell, 2007). It tries to describe the best way to design the research so that the best data for the research can be obtained (Lee and Lings, 1975). The research designs that may be employed include experiment, survey, case study, action research, grounded theory, ethnography, archival research, content analysis among others (Saunders, Lewis Thornhill, 2009). The aim of this research is to examine the disclosure practices of listed Indian companies. Annual reports are intended to disclose information about the companys activities and performance to shareholders and other stakeholders. In order to examine the level of disclosure, in lines with previous research, this study seeks to identify the presence or absence (disclosure or non disclosure) of certain identified corporate attributes in the annual reports of the companies. An examination of annual reports of companies could be one of the justifiable ways of assessing their disclosure practices; consequently, the research design used is one of content analysis. Content analysis is an analysis of documents and texts (which may be printed or visual) that seeks to quantify content in terms of pre-determined categories and in a systematic and objective manner. Objectivity ensures that there is transparency in the procedures for assigning the data to categories so that analystà ¢Ã¢â€š ¬Ã¢â€ž ¢s personal biases are ruled out to a large extent (Bryman and Bell, 2007). This study entails analysis of annual reports of listed Indian companies by quantifying content in terms of pre defined categories. Content analysis has been conducted on annual reports by a number of researchers such as Tsamenyi et al. (2007) and Patel et al. (2002) among others, as they are a good instrument to measure comparative positions and trends in reporting. As a technique for collecting data, it involves codifying qualitative and quantitative information into pre-defined categories in order to derive patterns in the presentation and reporting of information (Guthrie et al., 2004). The following paragraphs explain the method of collection of data, its quantification and classification and its analysis. This study uses the method of content analysis which itself is not free from limitations. The major limitation is the subjectivity involved in coding (Frost and Wilmshurst, 2000). In order for valid inferences to be drawn from content analysis, the reliability of both the data and the instrument of collecting and coding the data must be achieved (Milne and Adler, 1999). This research uses the coding method used by many previous researchers such as Patel et al. (2002) and Tsamenyi et al. (2007) and hence can be regarded as à ¢Ã¢â€š ¬Ã‹Å"reliableà ¢Ã¢â€š ¬Ã¢â€ž ¢. Data Collection and Analysis This study entails the examination of annual reports of Indian companies. Data is collected on 50 companies listed on the National Stock Exchange (NSE) and representing the NIFTY, which is literally the barometer of the Indian Capital Market. The sample thus consists of 50 companies listed on the NSE. The SP CNX Nifty is the National Stock Exchange of India Ltdà ¢Ã¢â€š ¬Ã¢â€ž ¢s main exchange. The CNX Nifty tracks the performance of a portfolio of blue chip companies, which are the largest and most liquid of the Indian securities. It consists of 50 of about 935 companies listed on the NSE consisting approximately of 60% of the market capitalization and reflects correctly the Indian stock market. The SP CNX Nifty consists of 22 sectors of the Indian economy (Standard Poorà ¢Ã¢â€š ¬Ã¢â€ž ¢s, 2010). This research studies the annual reports of these 50 companies. Analysis is limited to only one year because disclosure practices usually do not change dramatically over time (Botosan, 1997). All annual reports are available online on the respective company websites and have been accessed thus. The annual reports studied for most of the companies are for 31st March 2010. All data has been collected from annual reports of 50 companies which make up to 60% of the total market capitalization. Annual reports are one of the most important devices to convey information and are hence the principle focus of the disclosure index (Alsaeed, 2006). This study uses 98 attributes in all to measure corporate governance and extent of disclosure in India (Appendix 2). These attributes have been compiled by Standard Poorà ¢Ã¢â€š ¬Ã¢â€ž ¢s and used in many previous studies on disclosure. Using an objective methodology, annual reports are analyzed for common disclosure items grouped into three sub- categories: Ownership structure and investor relations Financial transparency and information disclosure Board and management structure and process A Transparency and Disclosure Score is developed for every company from a binary evaluation of the number of items present in their annual reports, i.e. if a company discloses a particular attribute, a score of 1 is awarded and if not a score of 0 is awarded. This paper analyzes the TD score for 50 Indian companies representing the NIFTY. Previous studies on disclosure and corporate governance such as those by Patel et al. (2002) and Tsamenyi et al. (2007) had followed a similar approach. Chapter 4: Findings and Discussion This chapter presents the findings of this study and also compares the same with previous studies. A disclosure index has been constructed based on a thorough and rigorous examination of the annual reports of the sample companies. Disclosure is defined as the appearance of an item of information in the annual reports of the companies under study (Karim and Ahmed, 2005). If an item is disclosed in the annual report, a score of 1 has been awarded and if the item is not disclosed, then a score of 0 is awarded for that attribute. Thus this disclosure method measures the overall disclosure index (ODI) of a company as additive as follows: Where, d=1 if the item di is disclosed d=0 if the item di is not disclosed n=number of items 4.1 Disclosure Scores and Descriptive Statistics The disclosure scores for each firm are presented both as actual scores and as percentage of the total number of attributes assessed in annual reports. The overall level of disclosure and disclosure score together with the percentage is presented in Table 1 below. Overall, disclosure and transparency register an average score of 72.04 which is quite good. Considerable variation can be noticed in the disclosure practices among the sample companies in India with a range of 54-82. The descriptive statistics are presented in Table 2. Table 1: Disclosure Scores Company Names Disclosure Scores % of Score ACC Ltd. 80 80% Ambuja Cements Ltd. 56 56% Axis Bank Ltd. 76 76% Bajaj Auto Ltd. 75 75% Bharat Heavy Electricals Ltd. 68 68% Bharat Petroleum Corporation Ltd. 69 69% Bharti Airtel Ltd. 78 78% Cairn India Ltd 73 73% Cipla Ltd. 72 72% DLF Ltd. 73 73% Dr Reddyà ¢Ã¢â€š ¬Ã¢â€ž ¢s Ltd. 75 75% Gail India Ltd. 76 76% HCL Technologies Ltd. 54 54% HDFC Bank Ltd. 71 71% Hero Honda Motors Ltd. 74 74% Hindalco Industries Ltd. 54 54% Hindustan Unilever Ltd. 70 70% Housing Development Finance Corporation Ltd 72 72% ICICI Bank Ltd. 77 77% ITC Ltd 78 78% Infosys Technologies Ltd. 82 82% Infrastructure Development Finance Co. Ltd 81 81% Jaiprakash Associates Ltd. 76 76% Jindal Steel Power Ltd 75 75% Kotak Mahindra Bank Ltd. 75 75% Larsen Toubro Ltd. 74 74% Mahindra Mahindra Ltd. 65 65% Maruti Suzuki India Ltd. 64 64% NTPC Ltd. 62 62% ONGC Ltd. 65 65% Power Grid Corporation of India Ltd. 65 65% Punjab National Bank 65 65% Ranbaxy Laboratories Ltd 54 54% Reliance Capital Ltd. 75 75% Reliance Communications Ltd. 81 81% Reliance Industries Ltd. 82 82% Reliance Infrastructure Ltd. 76 76% Reliance Power Ltd 77 77% Sesa Goa Ltd 75 75% Siemens Ltd 74 74% State Bank of India 74 74% Steel Authority of India Ltd 75 75% Sterlite Industries (India) Ltd. 62 62% Sun Pharmaceutical Industries Ltd. 63 63% Suzlon Energy Ltd 75 75% Tata Consultancy Services Ltd. 76 76% Tata Motors Ltd. 75 75% Tata Power Ltd. 80 80% Tata Steel Ltd. 81 81% Wipro Ltd. 77 77% . Table 2: Descriptive Statistics of Dependent and Independent Variables Mean Range No. of firms Overall Disclosure Index 72.04 54-82 50 Chapter 5: Conclusion This paper reports on the level of disclosure of a sample of Indian companies listed on the NSE by examining their annual reports. The study uses a transparency and disclosure (TD) index for determining the level of disclosure among listed Indian companies. The index is developed by assigning scores to 50 companies on pre-determined attributes; the study uses the binary scoring method. Using a dataset relating to listed companies for 2009-10, the study reveals that firms on average report 72% of the items compiled by SP to assess level of disclosure. The results of this study can be useful for investors to help them in gauging the level of disclosure by listed Indian companies. It will also be of interest to researchers, managers, regulators and market participants. The findings of this study must be interpreted in the light of the following limitations. Firstly, the sample used for this study is small in size and is composed of the largest and most followed companies on the National Stock Exchange and thus may not be representative of the population of Indian companies. Secondly, the index used to find the level of disclosure, is that which has been compiled by SP. No distinction has been made between compulsory and voluntary items of disclosure. Also, this study uses the unweighted or binary approach to measure the level of disclosure. Thus, if a company disclosed an item voluntarily, it did not get any extra score for that. Finally, the study gives at best a broad overview of the level and quality of disclosure among Indian companies since the results are based on the data of one year only and lacks longitudinal analysis. Further research is needed to evaluate the trends in the disclosure and also to assess if the level or quality of disclosu re has improved over time. Even with these limitations, there are some important contributions that this study makes. This study reports that the level of disclosure among Indian listed companies is quite high.

The War Of Every Man - 1798 Words

George Monbiot (1963) is an investigative journalist, ecologist and book Authors, he is also known for being a columnist for The Guardian, in which the text studied first appeared in October, 2014. Monbiot declares that we are living in the Age of loneliness. We were social creatures from the start as he describes us as mammal bees that works together and depend entirely on each other. On the other hand, huge change appeared in our way of living. The age we are entering, in which we exist apart, is unlike any that has passed before. Loneliness has become an epidemic among young adults and spared out in elders’ everyday life where social isolation has become a cause of early death because we cannot cope alone. Our times have faced many structural transformations, mainly we developed a life denying ideology which enforces and celebrates our social isolation. The war of every man against every man is translated to a competition and an individualism that are the main religions of our time. Therefore, wealth and fame became the sole ambitions of our generation. We no more talk about people, we rather call them individuals. We have also changed our language to reflect our loneliness, as the most common insult is â€Å"Loser†. Our conversations are mainly being personal in order to distinguish our self from the common mass. Loneliness gained a level in which people turn their televisions for consolation, helping them drive their competitive aspiration. However, as national incomesShow MoreRelatedThomas Hobbesstate Of War Argument For Human Nature996 Words   |  4 PagesPhilosophy of Law Paper 1, 9/27/17 Thomas Hobbes’ State of War Argument for Human Nature Erin McFarland In Thomas Hobbes’ Leviathan, Hobbes addresses the nature of man and society and their relation to each other. 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Difference between dogs and cats Free Essays

Every animal has its own characteristics and features. Generally speaking, each animal is adapted for existence in a certain environment and may be unable to survive or reproduce in other environments. Environment includes such factors as temperature; light; moisture; atmospheric and water pressure; and gas and mineral content of air, water, and soil. We will write a custom essay sample on Difference between dogs and cats or any similar topic only for you Order Now The various factors of the environment in which any particular animal lives may not remain constant at all times. Most animals are adapted to withstand certain environmental variations. This paper scrutinizes the difference and similarities between the cats and dogs. Cats are meat-eating animals. The cat family includes not only the domestic cat, but also the tiger, lion, leopard, lynx, bobcat, and many others. Wild cats are dangerous predators, but domestic cat is a pet and companion and is valuable as a means of controlling rats, mice, and other rodents. The young of most wild cats are called cubs; the young of domestic cats are kittens. All cats, from lion to housecat, are adapted for hunting. The head is large and broad, with powerful jaws and sharp, slashing teeth. Long whiskers on the sides of the face are believed to aid the cat in feeling its way through narrow places. The eye has a vertical pupil that closes to a narrow slit in bright sunlight and opens wide in dim light, maintaining the keen vision so necessary to a hunter. A cat, like a dog, is largely color-blind. Its sense of smell and hearing are very well-developed. The cat has a lithe body, with a loose skin. There are five toes on the front feet and four on the hind. The feet are padded for silent motion. Except for the cheetah, which has feet that look much like a dog’s, all cats have claws that can be drawn backward and upward into protective sheaths. Some cats are good swimmers, but most avoid water. The traditional belief in the â€Å"nine lives† of the cat can be traced to the animal’s cleverness in getting out of trouble, and to its vigor and strong hold on life. Cats can live for several days without food, and recover from injuries that would kill most other animal . Kittens should be fed crumbled bits of cereal in milk, finely chopped cooked meat, or canned baby food four or five times a day. Gradually the number of feedings is reduced, but the amount increased until at 9 to 12 months the cat is receiving an adult diet. Adult cats do best on two meals a day. Suitable foods include ground lean meat, cooked, non-oily fish, canned cat food, or dry cat food. Fresh clean water should also be provided. Cats not intended for breeding purposes should be kept indoors, it should be provided with a sanitary tray. New kittens should be confined to the tray area until they begin to use it. Most cats over thee months of age use the tray readily. A fixed, padded post for the cat to scratch on will help to keep it from scratching on furniture. On the other hand, the dog is a carnivorous mammal that was domesticated by humans thousands of years ago. It serves in a variety of ways—as a companion, hunter, herder, and protector, and as a draft animal. For the blind, dog serves as guides. In some places, dog racing is a popular sport. Because of its loyalty, obedience, courage, and friendliness, the dog is often referred to as â€Å"an’ best friend. † Dogs have held a prominent place in mythology and literature. Dogs are mentioned in the Bible and in such historic works as The odyssey. The domestic dog is Canis familiaris of the family Vanidae, which also includes the coyote, jackal, and wolf. Domestic dogs retain some wild instincts. This explains why some dogs chase moving objects, scavenge for food, and turn around several times before lying down, as their ancestors did to trample down high grass for a bed. Domestic dog often sleep curled up with their tails over their faces, just as wild dogs do to protect their faces from the elements. Domestic dogs, like wild dogs, eat quickly and are protective of their food. Dogs have very acute senses. The most highly developed are hearing, smell, and sight. Dogs can hear sounds at high frequencies, higher than the upper limit of human hearing. The sense of smell is the most important sense to a dog. Dogs can locate particular scents, follow them when reencountered. Taste buds on the tongue help the dog distinguish sweet, sour, salty, and bitter tastes. Dogs see in black and white. They have a relatively wide field of vision but a limited capacity to judge distances. A third eyelid, called the nictating membrane, is hidden behind the lower eyelid. A dog can feel pain, pressure, cold and heat. Certain hairs on the body are especially sensitive organs of touch. In addition, dogs communicate by a variety of means. The sounds they make, such as barking, growling, and whining, can indicate a number of things, including aggression, excitement, fear, and submission. Puppies are active and need three meals a day until the age of six months, when they need to two meals a day. A puppy needs a balanced diet containing protein, carbohydrates, fats, vitamins, and minerals. A diet of cooked meat, eggs, milk, and cottage cheese, or commercial puppy food provides necessary nutrients and calories for a growing puppy. By the age of one year, a dog needs food only dog food or a diet of meat, eggs, and cheese. Water should be provided with meals and after exercise. Since many dogs develop tartar, a thick deposit of bacteria and food particles on the teeth, knuckle bones or commercial dog biscuits are recommended to help break down the deposits. It is believed that cats were first domesticated in northern Africa. Egyptian carvings made more than 4, 500 years ago depict cats as domestic animals. The cat was a sacred animal in Egypt, associated with the goddess Pasht, or Bast. Many mummies of Ehyptian cats have been found. On the other hand, dogs are descended from Miacis, a small carnivorous mammal that lived in North America over 60,000,000 years ago. Miacis was a civet-like mammal that had a long body and tail, short legs, and large teeth for tearing and chewing meat. In conclusion, cats and dogs have a common ancestor in small, extinct meat-eating animals called Miacindae, which lived about 40,000,000 years ago. Cats have seen to have developed rather suddenly from the civet branch of the carnivore group of animals. Both cats and dogs are helpful to man. Although they have different characteristics yet these animals show similarities of some ways in food and its physical features. How to cite Difference between dogs and cats, Papers

Process Innovation Implementing Converged Security

Question: Discuss about the Process Innovation for Implementing Converged Security. Answer: Introduction: The present report analyses the security aspect of information in Premier Ambulance Services Sdn Bhd, which is mainly oriented towards the practice of preventing unauthorised access, usage, modification, or disclosure of information. According to a report by Gullander et al. (2014), these aspects are critical in cases, when the concerned action related to information breach results into the risk to the organisation which in turn is linked with reduced functionality, harm the market reputation and damage the competitiveness. The company considered for discussion works in the healthcare sector and the business association is mediated between customers (patient community), healthcare settings, and transport/automotive related stakeholders. Identify and describe the organisations physical, human, and electronic information holdings that may be at risk. The fundamental aspect in this regard is linked with human resources in which strategic management department, staffing structure, policies and guidelines, as well as employee relation structures and agreements are crucial. The information holding in this regard include the following elements (Davenport, 2013): Strategy and management division This part of the organisation is responsible for the delivery of personnel-related information, in which the key responsibility area for which the information is vital, includes recruitment, promotion, pay or incentive details, disciplinary actions, special leave, and absenteeism of their employees. Staffing structure - The information aspect in this consideration include the details of policy and guidance materials for the ambulatory staff, such as attendance management, the conduct of actions and procedures, diversity management and organisational culture, leaving, pay and benefits of employees as per the national and corporate guidelines, and performance criteria. The policies, procedures, and guidelines related to human resources The information content in this section mainly holds the conditions of service. For example, the application recruitment laws like civil services, equal pay scale, gender non-discrimination, driving license, and adjuvant technical qualifications such as pharmacy, nursing, and social worker. Similarly, for the performance management aspect, the day-to-day functionality, challenges, negotiation, and delegation are included. Other than this, it also includes information such as pension policies, provident funds, and grievance. Employee relations and agreements The management and trade union within this scope are committed towards the conduct of their industrial and employee relations businesses. The bargaining purpose related information which is holding risk include (i) the public and commercial services; (ii) prospect for future of employees; and (ii) first division association (FDA). Likewise, another important aspect includes information related to physical resources such as ambulatory vehicles and property assets, property holdings, estate development plans, maintenance arrangement of vehicles. Notably, the associated stakeholders, vendor for temporary vehicles, and contract drivers are of high importance, for which the information security is essential (Mubarak Alharbi, Zyngier Hodkinson, 2013). Lastly, electronic resources include record management policy which also includes record retention schedule. The information mainly includes audit reports, annual reports, and other details of the accounting. In addition to this, it also includes the consideration of file and folder system at the workplace such that employee should utilise the resources only for the organisational purpose, no personal work must be executed using the firm information, and all the information sharing must be executed among authorised or concerned professionals only (Mubarak Alharbi, Zyngier Hodkinson, 2013). The mentioned provision of information and association is requisite for computer professional and not for the drivers or field-workers. Identify and describe the actual and potential physical, human, and electronic threats to the organisations information holdings. The major threats to the above-mentioned organisation aspect are all linked towards rational usage of data, preserving information for biased usage, and sharing among the authorised professionals only for concerned activities. Importantly, it is also ascertained with the information holdings that they will be used only for the organisational purpose, especially during work execution. Hence, any form of use that can cause harm to the firm is considered to be a breach. The components crucial in this regard include following aspects (Narasimhan Aundhe, 2014): Confidentiality Prevention of unauthorised disclosure of information related to customers, which can be deleterious in the case of sensitive information and may result in financial or market image loss for the firm. Integrity The prevention of erroneous editing or modification within the information is also critical, as storing incorrect data, corrupting the information, or making errors and omission of details may result in loss of functionality for the ambulatory services. Availability - This is linked with prevention of unauthorised withholding of information. As in many cases, personnel withholding or disclosure of information to public domain may result in loss or discontinuity for the firm. Authenticity - This is the procedure of verifying the users and providing a genuine logging detail to the employee, ensure optimal usage of information. This will not only hold the sensitive information from being biased but will also be helpful in tracking the information user for a particular task or according to time.Design a security plan that describes counter-measures that will manage the threats that put the organisations information holdings at risk. For the assess-related threat, the counter-measures include strong authentication and protection of authentication cookies using SSL (secure sockets layer). For exploiting and penetration related threat to information, using data hashing and signing are adequate methods. This also includes secure communication links with the product to offer message integrity. Other than this, the use of strong encryption is also effective to avoid any unauthorised editing or modification of information (Abawajy, 2014). Note that the mentioned security aspect is critical for the recording, documentation, and online processing of information by the company associates and customers. Other than this, the privilege related threats can be managed with counter-measures such as using hint question and verifying the answers from users; using the date of birth or other date-related information for authorization. The same system is also applicable to customers, as they can manage their information, through online means. In advanced systems, the use of retinal scans, fingerprints, and facial recognition are effective, but is not applicable for this company, due to existing infrastructures and resources. Note that these mentioned countermeasures are effective in conjunction with physical and human-related information (Aleem, Wakefield Button, 2013). The computer resources are requisite to be managed with SQL, SSL, and key or one-time-password linked with phone numbers or e-mail account is effective. Additionally, in certain sections of the company, paper-based record system is also maintained. The counter-measures to such informational security is possible to manage with the help of authorised entry to record storage room, strict instructions to concerned professional, and restricting the movement of original documents within the storage room only (only photocopies are allowed for sharing). Develop a comprehensive information security education and awareness programme for use by management, staff members and contractors). The information security education program will include following elements (Peltier, 2016; Safa, Von Solms Furnell, 2016): Giving a general overview and rationale behind the security management aspects This will not only include elaboration to the facts but will also include the consequence of the information threat (breach) to the concerned individual as well as to the firm. The discussion of relevant legislation and guidelines are also requisite to be included. Linking phone/e-mail/computer system to the server database Employees mainly staff (temporary and permanent), as well as drivers and contract workers, are requisite to give the inputs following which they will be linked to the organisational server. Hence, any form of authorisation can be collected on that basis. Demonstrating the usage This includes a demo for logging in and out, sharing of information, granting permission, pending request, approval strategy, and level-wise authorisation for information usage. For the paper-based record system, authorised application and channel to pass the information is needed. Lastly, the sustainability of learned terms can be concluded with the help of monitoring and evaluation framework. Necessary technical support is thus requisite in this regard to all the employees. Note that for the management team, the program guidelines include arrangement of facilities for learning, training, and execution of task. Likewise, the evaluation and monitoring terms are also included for management responsibility, such that sustainability can be achieved (Safa, Von Solms Furnell, 2016). References: Abawajy, J. (2014). User preference of cyber security awareness delivery methods.Behaviour Information Technology,33(3), 237-248. Aleem, A., Wakefield, A., Button, M. (2013). Addressing the weakest link: Implementing converged security.Security Journal,26(3), 236-248. Davenport, T. H. (2013).Process innovation: reengineering work through information technology. Harvard Business Press. Gullander, P., Fast-Berglund, ., Harlin, U., Mattsson, S., Groth, C., kerman, M., Stahre, J. (2014). MeetingsThe innovative glue between the organisation system and information system. InThe sixth Swedish Production Symposium. [Assessed from https://publications.lib.chalmers.se/records/fulltext/202978/local_202978.pdf Dated 25 mar 2017]. Mubarak Alharbi, I., Zyngier, S., Hodkinson, C. (2013). Privacy by design and customers perceived privacy and security concerns in the success of e-commerce.Journal of Enterprise Information Management,26(6), 702-718. Narasimhan, R., Aundhe, M. D. (2014). Explanation of Public Private Partnership (PPP) Outcomes in E-Government--A Social Capital Perspective. InSystem Sciences (HICSS), 2014 47th Hawaii International Conference on(pp. 2189-2199). IEEE. Peltier, T. R. (2016).Information Security Policies, Procedures, and Standards: guidelines for effective information security management. CRC Press. Safa, N. S., Von Solms, R., Furnell, S. (2016). Information security policy compliance model in organizations.computers security,56, 70-82.

These strange Japanese Review Essay Example

These strange Japanese Review Paper Essay on These strange Japanese In this series, I like the fact that her people write in the subject line, for example. Living in the territory, have the nationality. For example, in this case, the authors well known both East and West. So, probably, the book is close to the truth. I like a man who knows the Land of the Rising exclusively for anime and Cultural DVD, we can only trust the authors, the more they are so clearly set out:) In the text affected by little all aspects of Japanese life self-image, character, values, etiquette, customs and traditions, family relations, etc. In general, as in the other books of the series reveals the features of the mentality of the distinguishing features of nationality. A lot of different interesting and informative information. the style of a thorough and all the same irony, but the text flows smoothly and meditative. As if youre reading this little book on the river bank of a crumbling, shed their sakura flowers After reading my perception of this nation has become more logical Quote:.. We will write a custom essay sample on These strange Japanese Review specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on These strange Japanese Review specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on These strange Japanese Review specifically for you FOR ONLY $16.38 $13.9/page Hire Writer As there are many ways to express the same idea or concept, just one statement can serve for all occasions. The word domo means thank you, hello, cool, Long time no see, terribly sorry, good-good and so on. There is no way to tell a clear yes or no at least as the word is understood in the West. High is most often translated as yes, but in fact it means I hear you and understand you, and now I think that answer. Foreigners often take the high of the agreement, whereas in fact it is hidden behind the opposite To fluently speak and read Japanese, you need to know Chinese characters Kanji, nbsp; used in the Japanese language (a minimum of 2000; educated Japanese know 5000 or even 80,000 characters, some of which have more than 30 lines). Plus two syllabaries hiragana and katakana the first to write native Japanese things and concepts, and the second for the borrowed items and foreign names. But this is too simple an explanation hybrid Pictography phonetics and written Japanese language The missionaries who came to Japan from Europe in the 19th century, were convinced that the Japanese language -. This invention of the devil, which prevents them in their work. Modern students of Japanese, nbsp; whether foreign or Japanese themselves, nbsp; may or may not believe in the devil, but, no doubt, feel the same .

Free Essays on The Killer Angels

The Killer Angels Michael Shaara’s The Killer Angels tells the amazing story of the Battle of Gettysburg. On July 1, 1863, the Confederate Army of Northern Virginia and the Union Army of the Potomac fought the largest battle of the American Civil War. The battle left 51,000 men dead, wounded, or missing. The characters first introduced include General Robert E. Lee, commander of the Confederate army; General James Longstreet, Lee's second-in-command; Union Colonel Joshua Lawrence Chamberlain, and Major General George Meade, commanding general of the Union Army. On June 30, 1863 a spy comes to General Longstreet to inform him that he has seen the Union army moving nearby. Longstreet is surprised by this information because General J.E.B. Stuart has been sent to track the Union army with his cavalry. Longstreet tells General Lee that he thinks the Confederate army should move quickly to the north to intercept the Federals. The Confederates move southeast through the mountains and toward the small town of Gettysburg. Just south of Gettysburg, Union colonel Chamberlain is awaken and discovers that his regiment, the Twentieth Maine, has 120 new members who are mutineers from the Second Maine. Chamberlain gives them a quick speech, asking them to continue to fight, and all but six of the men join freely. General John Buford, leader of the Union cavalry, rides into the town of Gettysburg and encounters Confederate troops in the nearby area. He realizes that the two armies may end up fighting in the town, so he positions his two brigades along the hills of the area. He knows that having high ground is the key to winning the battle. On the morning of July 1, Lee rises to find that Stuart is still nowhere to be found. Without Stuart he has no idea where the Union army is located. He meets with Longstreet, who wants to use defensive tactics to swing southeast and come between the Union army and Washington, D.C. Lee refuses, saying t... Free Essays on The Killer Angels Free Essays on The Killer Angels The Killer Angels Michael Shaara’s The Killer Angels tells the amazing story of the Battle of Gettysburg. On July 1, 1863, the Confederate Army of Northern Virginia and the Union Army of the Potomac fought the largest battle of the American Civil War. The battle left 51,000 men dead, wounded, or missing. The characters first introduced include General Robert E. Lee, commander of the Confederate army; General James Longstreet, Lee's second-in-command; Union Colonel Joshua Lawrence Chamberlain, and Major General George Meade, commanding general of the Union Army. On June 30, 1863 a spy comes to General Longstreet to inform him that he has seen the Union army moving nearby. Longstreet is surprised by this information because General J.E.B. Stuart has been sent to track the Union army with his cavalry. Longstreet tells General Lee that he thinks the Confederate army should move quickly to the north to intercept the Federals. The Confederates move southeast through the mountains and toward the small town of Gettysburg. Just south of Gettysburg, Union colonel Chamberlain is awaken and discovers that his regiment, the Twentieth Maine, has 120 new members who are mutineers from the Second Maine. Chamberlain gives them a quick speech, asking them to continue to fight, and all but six of the men join freely. General John Buford, leader of the Union cavalry, rides into the town of Gettysburg and encounters Confederate troops in the nearby area. He realizes that the two armies may end up fighting in the town, so he positions his two brigades along the hills of the area. He knows that having high ground is the key to winning the battle. On the morning of July 1, Lee rises to find that Stuart is still nowhere to be found. Without Stuart he has no idea where the Union army is located. He meets with Longstreet, who wants to use defensive tactics to swing southeast and come between the Union army and Washington, D.C. Lee refuses, saying t...

United States History Essay Example | Topics and Well Written Essays - 1000 words - 1

United States History - Essay Example Furthermore, the events of those horrific years marred not only the countries overseas, but our own country as well. Even though the United States played a more passive role during the Holocaust years, we were still involved in the era as much as Germany had been. World War II had already been underway when the Holocaust reared its ugly head, having started in 1939, approximately when the more rash events of the Holocaust began taking place. In 1941, Japan attacked Pearl Harbor, Hawaii, forcing the United States into the war. Only four days later did Hitler declare war on the United States (Bluhm, 2008), making not only the war the business of the United States, but the Holocaust as well. Prior to our involvement in World War II, the United States had merely watched the world burn, bidding its time until its military troops were called to the front lines. It was because of our reluctance to be a part of the war that many people believed that we did nothing to stand in the war of the Holocaust, or the progression of the war itself. However, with the sudden attack on Pearl Harbor and the war raging across the globe, it is almost no wonder that the United States wanted very little to do with the events, though this was no reason for them to stand aside and watch everything else fall. Also, after the first World War, America had adopted a policy of Isolationism, which would prevent them from involving themselves in the conflicts of other countries (Wexler, 2007).

Why was Ancient Greek society as influential as it was, on the rest of Essay

Why was Ancient Greek society as influential as it was, on the rest of the world - Essay Example The classical Greek was mostly rocky and mountainous and colonized with many new states across the Mediterranean Sea (Ancient Greek Colonization, 2012). Greece as a society was a male dominated patriarchal society in nature where women did not had many rights. Their ranks were established in accordance of their husbands’ and fathers’. Most of the women in Athens were not entitled to reading, writing, ownership of property and right to politics. They were under the protection of their male counterparts, fathers and relatives. As we see in many states today those women have not been entitled to many rights, the influence seems to come from ancient Greece. The Greek society was actually divided between two types i.e. Citizens and Slaves. Citizens enjoyed all rights while slaves did not have right to property or families of their own while citizenship was only entitled to males of the city states who had freeborn parents (Ancient Greece and Rome, 2012). The Greeks has great influence on the intellectual history. They not only produced many philosophers but invented alphabets that led the foundations of modern day language. The alphabet was invented by the Semites of the Mediterranean coast,  including the Hebrews and the Phoenicians, who did not used words to represent consonants instead they used simple drawings. The Phoenicians apparently passed it on to the Greeks.   The Greeks improved on the idea by inventing vowels, using some extra letters their language had no use for. The word alphabet is believed to be taken from two Greek words Alpha and Beta (Boeree, 2012). Classical Greek philosophy is the most important factor that strengthened the footings of modern day intellectual work. Greece produced the world famous philosophers like Socrates and Plato and Aristotle etc. Socrates revolutionized many areas of western thought introducing the fields of democracy, epistemology and ethics. Then his student Plato introduced the idea of spiritualism a nd the existence of God by understanding the manifestations of the material world. Aristotle then produced a new philosophy where he demonstrated that the world is what we can sense through our five senses (Rise of Western Culture & Philosophy, 2012). The ancient philosophy gave us the basis for modern day philosophy by providing metaphysics. Meta physics is a branch of philosophy that is concerned with the questions of what this world is made of and what is the substance of this reality named as world. Greek philosophy provides us with the ancient concepts that provide the basis for modern day knowledge of ethics, cynicism and hedonism, empiricism and epistemology. That’s why Ancient society has been so influential in its era to other societies but it also provides the basis for modern day knowledge to excel and intellectualism to prevail (Boeree, 2012). Greece is one of the most powerful societies ever that impacted rest of the world in the most influential way. Especially Greece influenced the west in the past and today the ideas of political systems working in United Nations of America are profoundly influenced by the Greek and Romans. The Ancient Greek umpire practiced the citizen based political participation. In an Assembly, all male citizens of the time used to gather to discuss about the issues and vote. As the participation in Assembly was paid and full democratic in nature so every citizen could have participated in the affairs of government. The modern day representative democratic style of government has been derived from Greece too where the Greek had a council and each tribe used to send about 50 citizens to the council from which a representative was chosen.

The Decrease in the APE, a Decrease in the ASF and a Sudden Rise in Essay

The Decrease in the APE, a Decrease in the ASF and a Sudden Rise in GDP Demonstrated Graphically - Essay Example A demand shock - fall in APE In the diagram above, we consider the effect of a fall in APE. The immediate response from businesses is to wait to see if the APE returns to its initial height. When it does not, the output-price adjustment process is initiated which leads to falling prices, output, employment and profits until the equality between GDP, ASF and APE is restored. The fall in output and employment however will continue until prices and profits return to their initial levels. Next consider the impact of a decline in ASF. The initial funding adjustment will manifest in the form of a sharp rise in interest rates. Figure 2: Impact of fall in ASF - money and credit caused recession The following output-price adjustment process like the earlier case will involve drops in output, employment, interest rates, prices and profits until GDP=ASF=APE. Output and employment will continue to fall until profit and prices rise back up to their initial levels. At the end of the coordination procedure, output and employment will be down while interest rates will be up but prices and profits will be restored to their initial levels. Finally, consider the impact of a rise in GDP. The initial impact will be a rise in interest rates. Then, as the producers react to insufficient demands, output and employment will fall back to the initial levels. But this situation wi ll lead to a demand caused recessionary scenario which stimulates the coordination procedure described in the first case in this chapter. ... The APE line shifts out leading to excess demand which in turn leads to a rise in interest rates. However, since ASF is unresponsive to interest rate changes, this rise in interest rates will have no impact on ASF and i continues to rise until it reaches i1 which signifies the new equilibrium interest rate since at this rate, the entire rise in APE is crowded out and we once more have the equality. The opposite mechanism would have been triggered in case of a negative shock to APE hitting the system. This is shown in the diagram below. Figure 5 Thus, we see that a shock to APE only leads to a movement in the interest rate in the same direction while GDP, employment and prices are left unchanged. Thus, the classical doctrine implies that interest rates are flexible enough to accommodate for any shocks to APE such that movements in the interest rate absorbs the full brunt of the shock and GDP, employment and prices are left unchanged. Next, consider the impact of a shock to ASF. This i s shown in the diagram below. Figure 6 In this case it is actually the price level that responds while all other aspects remain the same. Interest rates change initially but they are restored back to the initial levels as price adjustments take place and the ASF line is restored to its original state. It is pertinent to note that imbalances between the aggregate demand and supply of output was assumed to be cured entirely through price adjustments since the classical economists believed that businesses maintained a particular level of output and profits which remained fixed so that whenever this level of output exceeded or fell short of funded demand, price adjustments would take place which increased or curtailed the

Indias Energy Security Concerns and Its Implications

Indias Energy Security Concerns and Its Implications CHAPTER-I INTRODUCTION 1. Indias economy undeniably, is on a roll. However the parallel energy discourse, sadly, moves at a slow pace, lacking in requisite agility and momentum. If India is to secure its interests in a more healthy manner, its energy discourse must keep pace qualitatively and quantitatively, in concept and in execution, with its economic flight. There is indeed a need to take an analytical look at the entire paradigm of Indias energy security and critically examine whether or not it is appropriately poised and try and to identify the necessary correctives that will help propel the Indian economy along its growth trajectory. 2. A UNDP report defined energy security as the continuous availability of energy in varied forms, in sufficient quantities and at reasonable prices. For India, the Parikh Committee report stated that a country is energy secure when it can supply energy to all its citizens and meet their demand for safe and convenient energy at affordable costs, at all times, with a set confidence level, considering shocks and disruptions that can be expected. It is the, affordable rather than reasonable source of energy that any country would like to have. While describing the concern over Energy Security three major reasons come to mind as far India is concerned: (a) To achieve the aimed domestic economic growth rate of 7-9% energy security is an absolute necessity. (b) High overall global demand and limited supply constraints are continuously pushing up oil and gas prices to higher and higher limits. (c) With Energy supply constraints, there is tremendous international competition to secure the scarce energy resources. 3. Energy is paramount for the sustained economic growth of our country and to fulfil our aspirations of becoming a true Global Power. High projected economic growth rate call for greater availability of reliable and cheaper energy. India and Chinas energy demand growth is unfolding in the midst of a perfect storm: economic, geopolitical, and environmental factors are combining to create new challenges, pressures, opportunities and alliance. Furthermore economical per capita energy consumption (through better governance and distribution mechanism) and access to cheaper energy will help in reduction of energy poverty which is a key development goal for any country. In search of oil and gas these, countries are exhibiting a hunger for energy resources, which has resulted in establishing new ties in South East Asia, in Africa and in Central Asia. 4. It has been seen on various occasion, that these countries are been pitted against each other and this competition has given rise to concerns about the potential for re-emergence of conflict over energy resources. A fallout of this has been a realization by the West of the new geopolitics that endangers the global security and a realization by South Asian, Middle East and Africa countries of the attractiveness of Asia as an alternative market to Europe and the US. On another front, climate change and the links it has with energy and energy choices are also creating significant pressure for low-carbon economy paths for these emerging new economies, adding yet another restraint to energy choices and a new geopolitical dimension. METHODOLOGY Hypothesis 5. China has sought to gain strategic advantage over India in South Asia not only militarily but also through securing energy recourses by progressively making Indias neighbors dependent on China to a large extent for their defence supplies and other economic goodies . Chinese aid to Islamabad , Bangladesh , Sri Lanka and Myanmar is designed to lock India in a low-level deterrent relationship with its immediate neighbors and keep India confined to the sub-continent. The expansion of Chinese influence into Myanmar provides China, the potential to deploy their sea power in the Bay of Bengal, in Indias sensitive areas of maritime interest and to eventually pose a direct threat to Indias eastern seaboard. Also, China is competing for foreign investments and markets in these countries for their products in the next 15 to 20 years to achieve economic marginalization of India. The close relations between China and Myanmar also pose a threat to overall Indian security and economic interests in the Bay of Bengal region. 6. China has been providing military, economic and infrastructure support to these South Asian countries with a long term interest in mind. By providing this support, China aims to secure energy resources for its growing economy, build better relations with its neighbours, and gain a foothold in the South/South East Asian region. 7. Another aspect of Chinas interest in Indias neighbors could be simply be to support to its growing economy. China is aiming to quadruple its per capita GDP by 2020. This would imply an average annual economic growth of 7.2% till 2020. In order to attain this, China will have to keep meeting the enormous appetite of its energy. Thus, the Chinas interest may purely be to strengthen its economy with or without any malicious intentions towards India. However India can afford not be complacent with Chinas intentions if she wants to maintain a safe and secure scenario in South Asia for its own economic and social development. Statement of Problem 8. Are Indias future energy need concerns justified and what is its affect on the South Asias overall security scenario in the backdrop of Chinas aggressive quest for energy in the South Asian region . Justification of the Study 9. Energy crisis is a situation in which the nation suffers from a interruption of energy supplies, coupled by rapidly increasing energy prices that threaten economic and national security. The threat to economic security is represented by the possibility of declining economic growth, increasing inflation, rising unemployment, and losing billions of dollars in investment. The threat to national security is represented by the inability of the government to exercise various foreign policy options, especially in regard to countries with substantial oil reserves. 10. China and India are two rapidly growing economies. Chinas real GDP growth has shown a sustained growth of 8-9%. India too has shown an impressive growth. Both these countries are also one of the most populous in the world. China is the third largest importer of oil behind US and Japan whereas India is the fifth largest consumer in the world. The Energy hunger of India and China is already pushing oil and gas resources to its limits its their own countries. Both these countries also cannot afford any disruption to their energy supplies. 11. India, will face an energy crisis, if there is any disruption in the energy flow, either by war, terrorist strikes on oil production platform or blockage of SLOCs, resulting in increasing oil price. It is therefore imperative to understand the steps taken by India to ensure Energy security, especially in the backdrop of Chinas aggressive quest to secure its energy supplies in the South / South East Asian region and the growing ties between China and Myanmar. Scope 12. The study will discuss the energy forecast of India and China up to 2030 and the availability of energy resources in the world and South /South East Asia( With special reference to Myanmar ) . Having considered the energy resources available, it will explore the way and means adopted by both these countries to secure their energy resources and transportation without challenging each other and affecting the overall security scenario in South Asian region. Method of data collection 13. The source of data collection is Defence Services Staff College Library and Internet . The bibliography is appended at the end. Organisation of Dissertation 14. The study is carried out in the following sequence: (a) Energy requirements for India and China. (b) Indias efforts to secure energy supplies and the importance of Myanmar (China – Myanmar relations). (c) Indias initiatives in Bay of Bengal region to secure energy sources and maintain regional harmony. (d) The way ahead (Importance of cooperation with neighbouring countries for regional peace in South Asia). (e) Conclusion. CHAPTER-II ENERGY REQUIRMENT F OR INDIA A ND CHINA Indias Energy Quest 1. The Hydrocarbon Vision 2025, published by the Government of India in the month of February 2001[1], set out in very clear terms, Indias energy security dilemma : its crude oil self-sufficiency declined from 63% in 1989/90 to 30% in 2000/01. In 2024/25, crude oil self-sufficiency was expected to be a mere 15%. The situation relating to gas was equally grim. From 49 BCM (billion cubic metres) in 2006/07, Indias demand for gas is expected to rise to 125 BCM in 2024/25. As against this, production from existing fields and discoveries was 52 BCM, leaving a gap of 75 BCM to be filled through new domestic discoveries and from imports. The electric power sector was projected to account for 71% of the total incremental growth in Indias natural gas demand from 2000 to 2025. Indias installed power capacity at present is based on coal (59%), hydropower (26%), gas (10%), and nuclear (2%). In the period up to 2025, the share of gas in the energy mix would be 20%. The Integrated Energy Policy (I EP) document prepared by the Planning Commission, in August 2006, under the Chairmanship of Mr Kirit Parikh, takes a holistic view of Indias energy requirements up to 2031/32. The report postulates that, in order to reach growth rates of 8% per annum up to 2031/32, the country needs to do the following: (a) Increase primary energy supply by three to four times. (b) Expand electricity generation capacity by five to six times from the 2003/04 levels, that is, power generation capacity must increase from the current 160,000 MW (megawatt) to nearly 800,000 MW by 2031/322[2] . 2. Taking into account power and other commercial requirements, the report suggests that Indias primary commercial energy requirement (in million tonnes) would be as given in as following[3] : (a) Primary commercial energy requirement (million tones) . 3. The place of gas in the energy mix between 2006/7 and 2031/32 is projected as given as following[4]: (a) Energy mix (million tones) . 4. To reach its growth targets, India would need to hunt all available fuel options and energy sources, conventional and non-conventional. However, the current position with respect to specific energy resources is also to be noted. Presently, Indias energy mix is: coal and lignite 50%; oil and gas 45%; hydropower 2%, and nuclear 1.5%. In 2022, fossil fuels will continue to dominate Indias energy mix to the extent of 75%, with hydropower providing 14%, and nuclear power 6.5%. Even the proponents of nuclear power have noted that, most optimistically, nuclear energy will provide only 8.8% in Indias energy mix in 2032, as against 76% for fossil fuels, and 12% for hydropower. In 2052, when nuclear energy is likely to be 16.4% of our energy mix, coal is expected to be 40%; hydrocarbons 35%; and hydropower 5.1%[5] . 5. The IEP report has looked at different international scenarios pertaining to coal and gas. Its conclusion is unambiguous. Any supply strategy over the coming decades will have to emphasize Indias major resource, that is, coal. Coal is the most abundant domestically available primary energy resource other than thorium and solar. In the coal-based development scenario, the total demand for coal increases from 172 MTOE (million tonnes of oil equivalent) in 2004/05 to 1022 TOE in 2031/32. Measured in MT of Indian coal with 4000 kcal/kg (kilocalories per kilogram), the requirement of coal will thus increase from 406 MT in 2004/05 to 2555 MT in 2031/327 [6]. Chinas Energy Requirments 6. Before analyzing the Chinese forays in Energy markets South Asia , a basic question needs to be answered ,Why China? .The answer lies in the fact that India and China share many similarities. The countries are located in the same geographical area and are amongst the worlds most populated countries. They are the fastest growing economies in the world and are dependent on oil imports to fuel their economic growth. The way China has jump started its economic growth holds some important lessons that can be learnt. 7. The main reason fuelling Chinas aggressive forays into the energy markets are Chinas economic growth which has led to a near doubling of oil consumption in China. The average growth rate has been between 8-10% in the last decade . At this pace of economic growth, the Gross Domestic Product is expected to reach four times of its present value to 4.7 trillion dollars by year 2020 [7] . This high rate of growth has been fuelled by growth in heavy industries which will increase the demand for energy by 150% in the next decade. The near doubling of oil consumption is also partly fuelled by the fact that there is a high requirement of petro-chemical products in heavy industries and an increase in automobile growth in China. This has led to an increase of 7.5% in oil demand every year. Competition to Access Oil Resources in South / South East Asia 8. The oil situation emerging in South/ South East Asia is further complicated by the ongoing tussle between China and India to secure their own energy supplies in this region. The stiff competition is mainly because of two reasons, firstly the countries are amongst the fastest growing economies and secondly they lack in sufficient domestic energy sources and are net importers of oil. The two nations are resorting to efforts, both in the diplomatic and economic spheres. These efforts include forging new diplomatic alliances, high profile diplomatic visits, financial aid to the South Asian countries and investments in economic sectors like infrastructure, telecom and mineral extraction and resource development etc. 9. The state oil companies at the same time, are involved in deals in the oil and gas sectors purchasing stakes in oil fields which are already producing oil or are being explored, exchanging the know how in return for oil and participating in exploratory efforts to discover new oil and gas finds in the region . India is learning from the Chinese efforts in these fields as they have a head start over us in this area and have been quite successful in their efforts to secure their energy supplies. Both India and China are looking towards SriLanka, Bangladesh and Mayanmar for oil and Gas. Chinese Forays 10. China is not only a major energy consumer, but also a major producer with a high degree of self-reliance. In 2008, Chinas energy production reached 2.06 billion tonnes of standard coal and the consumption was 2.22 billion tonnes, ranking the second both in terms of production and consumption with a self-sufficiency of 93%. Coal is the primary source of energy for China and oil comes the second. While meeting the domestic demand, China exports 60–80 MT (million tonnes) of coal every year and is a main exporter of coal and charcoal in the world (even to India). Chinas power generation capacity in 2008-09 was the second largest only after that of USA. China produced over 182 MT of petroleum and 54 BCM (billion cubic metres) of natural gas. 11. To fulfil its growing appetite for energy, China is aggressively pursuing various energy resources. Chinese companies are involved in acquisition of oil companies, buying oil fields and purchasing partnerships in oil fields that are being developed. China is pursuing a multi dimensional approach which is a mix of diplomatic and economic efforts. One of the main thrust of Chinas oil policy is towards Asia and Africa. The importance of Africa countries to China can be appreciated from the fact that the trade between these is expected to rise many fold by the years to come . As part of its Go West policy, China is also accessing the Central Asian Region. It has plans to build pipelines from Tarim Basin in China to Kazakhstan and Turkmenistan in order to import oil and gas. In 2004, construction began on a pipeline from North West Kazakhstan to Xinjiang to carry oil. Chinese influence in the Central Asian Republics can be gauged from the fact that these republics now subscribe to the Chinese view on a multi polar world, and its views on various regional and international issues like Tibet, Taiwan etc. CHAPTER-III INDIAS EFFORTS TO SECURE ENERGY SUPPLIES AND THE IMPORTANCE OF MYANMAR 1. India Hydrocarbon Vision 2025 document as discussed earlier had given considerable importance to the role of gas in the energy mix to realize the projected national growth rates. This may be is primarily because though we may be having a large deposits of coal however the domestically produced coal has very high ash and sulphur content and is of very low calorific value . The coal utilized in the country has 4000 kcal/kg as against 6000 kcal/kg available in imported coal. In fact, the coal used in the Indian power plants has a calorific of value 3500 kcal/kg. Large estimates of total coal reserves do give a false sense of security because current and future technologies will convert only a small portion of the total reserves into a mineable category. Owing to all these reasons the govt has started looking towards new sources of energy supply so as to have a requisite amount of strategic energy reserve [8]. 2. There have been several large natural gas finds in India over the last five years, predominantly in the offshore Bay of Bengal (Krishna Godavari region). The discoveries also fit into the recent trend of large upstream developments in the Bay of Bengal, especially in the Krishna Godavari basin. Gujarat State Petroleum Corporation (GSPC) holds an estimated 20 Tcf of natural gas reserves in the Krishna Godavari area [9]. ONGC has worked to maximize its recovery rate at the Mumbai High, which supplies the bulk of the countrys natural gas at present. Transnational Pipeline to meet India s needs 3. Iran-Pakistan-India Pipeline . India has considered various proposals for international pipeline connections with other countries. One such scheme is the Iran-Pakistan-India (IPI) Pipeline, which has been under discussion since early nineties (1994). The plan calls for a roughly 1,700-mile, 2.8-Bcf/d pipeline to run from the South Pars fields in iran to the Indian state of Gujarat [11]. 4. Turkmenistan-Afghanistan-Pakistan-India Pipeline . India has shown interest to join onto the Turkmenistan-Afghanistan-Pakistan pipeline. The TAP project consists of 1,500-mile pipeline originating in Turkmenistans Dauletabad – Donmex natural gas fields and transporting the fuel to markets in Afghanistan, Pakistan, and to India. Initial plans for the TAP call for the line to have a capacity between 2-4Bcf/d at an estimated cost of $3.4 billion. While India has publicly promoted this scheme while negotiations with Iran have slowed, the TAPI(India) project faces a variety of hurdles. India has concerns about the security of the proposed line, which would traverse unstable regions in Afghanistan and Pakistan. Furthermore, a recent review of the TAPI project raised doubts whether the Turkmen natural gas supplies are sufficient to meet its proposed export commitments. 5. Imports from Myanmar . A third international pipeline proposal envisions India importing natural gas from Myanmar. In March 2006, the governments of India and Myanmar signed a natural gas supply deal, although a specific pipeline route has yet to be determined. Initially, the two countries planned to build a pipeline that would cross Bangladesh. However, after indecision from Bangladeshi authorities over the plans, India and Myanmar have studied the possibility of building a pipeline that would terminate in the eastern Indian state of Tripura and not cross Bangladeshi soil at all. Let us now discuss the impotence of Myanmar and see as to why is it so relevant in the overall energy game. GEO-STRATEGIC LOCATION OF MYANMAR Geographic Loc 6. Myanmar shares common borders with five countries Bangladesh 193 km, China 2,185 km, India 1,463 km, Laos 235 km, and Thailand 1,800 km. India dominates Myanmars western borders, just as China dominate its north-eastern borders. Thailand borders the entire eastern part of Myanmar except for narrow strip that borders Laos. And this makes Myanmar a strategic land bridge linking South, and Southeast Asia [12]. 7. As a littoral of the Indian Ocean, Myanmars strategic value further increases. Its 1930 km long coastline dominates the eastern arch of the Bay of Bengal, leaning on to the Malacca Strait. Thus Myanmar provides China the shortest land and sea access to South Asia, just as it provides convenient external land and sea communication options to Indias landlocked north-eastern states. Myanmars ocean boundaries are barely 30 km from the Andaman Islands increasing its maritime security potential. 8. Most of Myanmars mountain ranges and major river systems run north-south. This makes construction of road communication and movement from Indias east to Myanmar against the grain of the country difficult. At the same time it facilitates easier movement from the Chinese border in the northeast, and provides for natural flow of traffic. The Chinese have used this favourable terrain configuration to build road from the Chinese border to Mandalay in the heart of Myanmar and onward to the coast. As Myanmar provides the shortest access from mainland China to Indias eastern borders these developments have special long term strategic significance to India. 9. Indias north-eastern states bordering Myanmar are not as well developed as Yunnan province of China bordering Myanmar in the northeast. China has found it useful to link the development of Yunnan region jointly with Myanmar and Laos. Thus the two-way border trade and commerce is qualitatively and quantitatively better with China than with India. 10. While Indias relations with Myanmar have seen substantial improvement in recent years, Myanmar apparently remains within the Chinese sphere of influence. India has moved from voicing its opposition to the military juntas crackdown on pro-democracy activists and the arrest of Aung San Suu Kyi, the leader of the National League for Democracy to a more pragmatic, non-interventionist policy. This change in policy by India has been prompted by its desire to access the regions energy resources, gain access to the vast markets of Southeast Asia and to balance the influence of China. Strategic Significance of Myanmar 11. Strategic Importance to India . The reasons for the strategic importance of Myanmar to India are: (a) Myanmar is located at the tri junction of East Asia, South Asia and South East Asia. (b) Myanmar is the second largest of Indias neighbours and the largest on the eastern flank. (c) Myanmar provides the Eastern littoral of the Bay of Bengal. An unfriendly Myanmar hosting foreign naval presence would pose a threat to Indian security. (d) Myanmar has a big border with China in the north contiguous with the Sino-Indian disputed border which has many implications. (e) India has both a land border and a maritime boundary with Myanmar in the Bay of Bengal. Four Indian states (Arunachal Pradesh, Nagaland, Manipur and Mizoram) border Myanmar (Kachin Chin states and Sagaing Division) . (f) China can gain easy access to Indian Ocean through Myanmar. 12. Strategic Importance to China . In recent years, the strategic landscape in Southeast Asia has begun to change with the emergence of the Peoples Republic of China as a regional power. Chinas economic and military capabilities have grown dramatically at a time when Chinas traditional security challenge, Russia, has faded. Japan remains a long-term, but not an immediate security problem for China. This has left China free, in geopolitical terms, to shift its attention to the south Asia. Most striking manifestation of this development has been a very assertive policy toward the South China Sea; i.e., the entire sea and all the islands within it are now claimed as Chinese sovereign territory. Myanmar has a great deal of strategic significance for both India and China. Myanmars role in providing China a shorter access route to Indian Ocean and South Asia is going to be crucial in the strategic scene of South Asia. The Chinese have used the geophysical advantage they enjoy to gain access to Myanmars mineral and natural g as resources. Following a policy of non-interference in internal affairs of the country, China has become the main supplier of arms to Myanmar. This has enabled the military junta in power to beat the western sanctions and double the Army strength. The Energy factor 13. Chinas building of a port in Pakistan, its extra-polite friendship with the rulers of Myanmar and now its offer to Iran to pick up gas from Pakistan, is all part of the countrys quest for energy to feed its export economy and to marginalise Indias traditional dominance in the South Asian region. There, a mix of its own but rapidly depleting oil, low-grade coal and imported oil and gas are keeping the wheels of the export industry churning. 14. Myanmar is being cultivated as an exclusive oil and gas supplier to China. The extraordinary friendship the Chinese have struck up with the Myanmar rulers is not so puzzling if it is appreciated that oil and gas are Chinas main interest there. To this affect all loans advanced and all military hardware being sold have only one purpose to allow them to grab as much oil and gas as they can [13] . 15. South-East Asias biggest proven gas reserve lies in the Shwe field, just off the coast of Ramree Island. There is a plan to build a pipeline to carry the gas from Shwe field to China. A parallel pipe is also planned to be completed in next two years that will carry Middle Eastern and African oil from a new deep-water harbour at Kyaukphyu, bypassing the Strait of Malacca and fuelling the economy of Chinas south-west . China has made huge energy investments in Myanmar and plans to construct overland energy transport routes through that country to avoid the Malacca Straits choke point. This is a possibly the key factor behind Beijings support for the military junta in Myanmar. 16. The China National Offshore Oil Corporation (CNOOC) signed six contracts on production sharing with the Myanmar Oil and Gas Enterprise (MOGE) of the Ministry of Energy from October 2004 to January 2005 [14] . The China Petroleum and Chemical Corporation and its subsidiary Dian Quiangui Petroleum Exploration also work the inland fields. Moreover, the China National Petroleum Corporation (CNPC) and its subsidiary Chinnery Assets also won contracts to upgrade the four old oilfields in central Myanmar. 17. In a development of strategic importance, recently China beat India to sign a 30-year mega deal to import natural gas from fields in Myanmar offshore where interestingly Indias oil companies have 25 percent stake. Chinas State-run China National Petroleum Corp (CNPC) entered into a gas sales agreement with South Koreas Daewoo International for buying gas from the Shwe field in A-1 offshore block and the adjoining A-3 block[15] . Possible Implications Of Chinese Intentions 18. Myanmar, after decades of neutrality and a strictly non-aligned foreign policy has today emerged as Chinas principle military ally in Asia. China was the first country to officially recognize Myanmars State Law and Order Restoration Council (SLORC) after it seized power in September 1988. However, prior to this coup China had poured in arms, ammunition in Myanmar and actively supported rebels in Myanmar. This change can be explained in terms of Chinas changing post-Cold War strategic thinking and its priorities. Apart from sharing strategic and economic interests, China and Myanmar also share more than 2,000 km long common border. Besides, Myanmar has also been historically viewed as a buffer state between China and India. Thus, for reasons of geographical proximity, history and security, China has been going overboard trying to sweep Myanmar into its sphere of influence with a combination of economic, diplomatic and military ties[16] . China also views Myanmar as a gateway to Indo-China, South East Asia and the Indian Ocean. Domination of Myanmar enables China to encircle littoral and degrade Indias security environment along its North-eastern border and in the Bay of Bengal. Energy Security 19. It is now very clear that China is an emerging economic and military super power. Its economy has been growing at a consistent rate of 8-10% for the last 10 years and is expected to grow at the same rate in years to come. To be able to sustain its growth rate, China has huge energy requirement and is forging alliances all over the world to not only meet its requirements but also secure energy resources for future. Myanmar has reportedly worlds tenth biggest gas reserves estimated to be more than 90 trillion cubic feet. 20. Eighty percent of China bound oil and liquid natural gas passes through the Indian Ocean. Therefore, China is giving special importance to building strategic naval assets in the Indian Ocean. The building of the Gwadar port in Pakistan ia s part of this plan. Its naval listening facility in Myanmar is also augmenting Chinas blue water capabilities. But Chinas chief interest in Myanmar, analysts say, may lie in its strategic location as a site for pipelines that Beijing reportedly wants to build from Burmas ports to southern China for trans-shipping oil and gas brought by tankers from the Middle East. That would reduce Chinas need to ship oil or gas through the Malacca Straits, which Beijing worries could be closed off by the Indian Navy in the event of a conflict. Standing in the way of Chinese mastery of Indian Ocean shipping lanes is the Indian naval facility in the Andaman and Nicobar Islands in the Bay of Bengal, opposite the Malacca Straits. In addition, Indias modernization of its navy and its proposed acquisition of nuclear submarines and aircraft carriers are not sitting well with the Chinese. From these small islands, India can interdict most of Chinas energy imports. Indias Energy Security Concerns and Its Implications Indias Energy Security Concerns and Its Implications CHAPTER-I INTRODUCTION 1. Indias economy undeniably, is on a roll. However the parallel energy discourse, sadly, moves at a slow pace, lacking in requisite agility and momentum. If India is to secure its interests in a more healthy manner, its energy discourse must keep pace qualitatively and quantitatively, in concept and in execution, with its economic flight. There is indeed a need to take an analytical look at the entire paradigm of Indias energy security and critically examine whether or not it is appropriately poised and try and to identify the necessary correctives that will help propel the Indian economy along its growth trajectory. 2. A UNDP report defined energy security as the continuous availability of energy in varied forms, in sufficient quantities and at reasonable prices. For India, the Parikh Committee report stated that a country is energy secure when it can supply energy to all its citizens and meet their demand for safe and convenient energy at affordable costs, at all times, with a set confidence level, considering shocks and disruptions that can be expected. It is the, affordable rather than reasonable source of energy that any country would like to have. While describing the concern over Energy Security three major reasons come to mind as far India is concerned: (a) To achieve the aimed domestic economic growth rate of 7-9% energy security is an absolute necessity. (b) High overall global demand and limited supply constraints are continuously pushing up oil and gas prices to higher and higher limits. (c) With Energy supply constraints, there is tremendous international competition to secure the scarce energy resources. 3. Energy is paramount for the sustained economic growth of our country and to fulfil our aspirations of becoming a true Global Power. High projected economic growth rate call for greater availability of reliable and cheaper energy. India and Chinas energy demand growth is unfolding in the midst of a perfect storm: economic, geopolitical, and environmental factors are combining to create new challenges, pressures, opportunities and alliance. Furthermore economical per capita energy consumption (through better governance and distribution mechanism) and access to cheaper energy will help in reduction of energy poverty which is a key development goal for any country. In search of oil and gas these, countries are exhibiting a hunger for energy resources, which has resulted in establishing new ties in South East Asia, in Africa and in Central Asia. 4. It has been seen on various occasion, that these countries are been pitted against each other and this competition has given rise to concerns about the potential for re-emergence of conflict over energy resources. A fallout of this has been a realization by the West of the new geopolitics that endangers the global security and a realization by South Asian, Middle East and Africa countries of the attractiveness of Asia as an alternative market to Europe and the US. On another front, climate change and the links it has with energy and energy choices are also creating significant pressure for low-carbon economy paths for these emerging new economies, adding yet another restraint to energy choices and a new geopolitical dimension. METHODOLOGY Hypothesis 5. China has sought to gain strategic advantage over India in South Asia not only militarily but also through securing energy recourses by progressively making Indias neighbors dependent on China to a large extent for their defence supplies and other economic goodies . Chinese aid to Islamabad , Bangladesh , Sri Lanka and Myanmar is designed to lock India in a low-level deterrent relationship with its immediate neighbors and keep India confined to the sub-continent. The expansion of Chinese influence into Myanmar provides China, the potential to deploy their sea power in the Bay of Bengal, in Indias sensitive areas of maritime interest and to eventually pose a direct threat to Indias eastern seaboard. Also, China is competing for foreign investments and markets in these countries for their products in the next 15 to 20 years to achieve economic marginalization of India. The close relations between China and Myanmar also pose a threat to overall Indian security and economic interests in the Bay of Bengal region. 6. China has been providing military, economic and infrastructure support to these South Asian countries with a long term interest in mind. By providing this support, China aims to secure energy resources for its growing economy, build better relations with its neighbours, and gain a foothold in the South/South East Asian region. 7. Another aspect of Chinas interest in Indias neighbors could be simply be to support to its growing economy. China is aiming to quadruple its per capita GDP by 2020. This would imply an average annual economic growth of 7.2% till 2020. In order to attain this, China will have to keep meeting the enormous appetite of its energy. Thus, the Chinas interest may purely be to strengthen its economy with or without any malicious intentions towards India. However India can afford not be complacent with Chinas intentions if she wants to maintain a safe and secure scenario in South Asia for its own economic and social development. Statement of Problem 8. Are Indias future energy need concerns justified and what is its affect on the South Asias overall security scenario in the backdrop of Chinas aggressive quest for energy in the South Asian region . Justification of the Study 9. Energy crisis is a situation in which the nation suffers from a interruption of energy supplies, coupled by rapidly increasing energy prices that threaten economic and national security. The threat to economic security is represented by the possibility of declining economic growth, increasing inflation, rising unemployment, and losing billions of dollars in investment. The threat to national security is represented by the inability of the government to exercise various foreign policy options, especially in regard to countries with substantial oil reserves. 10. China and India are two rapidly growing economies. Chinas real GDP growth has shown a sustained growth of 8-9%. India too has shown an impressive growth. Both these countries are also one of the most populous in the world. China is the third largest importer of oil behind US and Japan whereas India is the fifth largest consumer in the world. The Energy hunger of India and China is already pushing oil and gas resources to its limits its their own countries. Both these countries also cannot afford any disruption to their energy supplies. 11. India, will face an energy crisis, if there is any disruption in the energy flow, either by war, terrorist strikes on oil production platform or blockage of SLOCs, resulting in increasing oil price. It is therefore imperative to understand the steps taken by India to ensure Energy security, especially in the backdrop of Chinas aggressive quest to secure its energy supplies in the South / South East Asian region and the growing ties between China and Myanmar. Scope 12. The study will discuss the energy forecast of India and China up to 2030 and the availability of energy resources in the world and South /South East Asia( With special reference to Myanmar ) . Having considered the energy resources available, it will explore the way and means adopted by both these countries to secure their energy resources and transportation without challenging each other and affecting the overall security scenario in South Asian region. Method of data collection 13. The source of data collection is Defence Services Staff College Library and Internet . The bibliography is appended at the end. Organisation of Dissertation 14. The study is carried out in the following sequence: (a) Energy requirements for India and China. (b) Indias efforts to secure energy supplies and the importance of Myanmar (China – Myanmar relations). (c) Indias initiatives in Bay of Bengal region to secure energy sources and maintain regional harmony. (d) The way ahead (Importance of cooperation with neighbouring countries for regional peace in South Asia). (e) Conclusion. CHAPTER-II ENERGY REQUIRMENT F OR INDIA A ND CHINA Indias Energy Quest 1. The Hydrocarbon Vision 2025, published by the Government of India in the month of February 2001[1], set out in very clear terms, Indias energy security dilemma : its crude oil self-sufficiency declined from 63% in 1989/90 to 30% in 2000/01. In 2024/25, crude oil self-sufficiency was expected to be a mere 15%. The situation relating to gas was equally grim. From 49 BCM (billion cubic metres) in 2006/07, Indias demand for gas is expected to rise to 125 BCM in 2024/25. As against this, production from existing fields and discoveries was 52 BCM, leaving a gap of 75 BCM to be filled through new domestic discoveries and from imports. The electric power sector was projected to account for 71% of the total incremental growth in Indias natural gas demand from 2000 to 2025. Indias installed power capacity at present is based on coal (59%), hydropower (26%), gas (10%), and nuclear (2%). In the period up to 2025, the share of gas in the energy mix would be 20%. The Integrated Energy Policy (I EP) document prepared by the Planning Commission, in August 2006, under the Chairmanship of Mr Kirit Parikh, takes a holistic view of Indias energy requirements up to 2031/32. The report postulates that, in order to reach growth rates of 8% per annum up to 2031/32, the country needs to do the following: (a) Increase primary energy supply by three to four times. (b) Expand electricity generation capacity by five to six times from the 2003/04 levels, that is, power generation capacity must increase from the current 160,000 MW (megawatt) to nearly 800,000 MW by 2031/322[2] . 2. Taking into account power and other commercial requirements, the report suggests that Indias primary commercial energy requirement (in million tonnes) would be as given in as following[3] : (a) Primary commercial energy requirement (million tones) . 3. The place of gas in the energy mix between 2006/7 and 2031/32 is projected as given as following[4]: (a) Energy mix (million tones) . 4. To reach its growth targets, India would need to hunt all available fuel options and energy sources, conventional and non-conventional. However, the current position with respect to specific energy resources is also to be noted. Presently, Indias energy mix is: coal and lignite 50%; oil and gas 45%; hydropower 2%, and nuclear 1.5%. In 2022, fossil fuels will continue to dominate Indias energy mix to the extent of 75%, with hydropower providing 14%, and nuclear power 6.5%. Even the proponents of nuclear power have noted that, most optimistically, nuclear energy will provide only 8.8% in Indias energy mix in 2032, as against 76% for fossil fuels, and 12% for hydropower. In 2052, when nuclear energy is likely to be 16.4% of our energy mix, coal is expected to be 40%; hydrocarbons 35%; and hydropower 5.1%[5] . 5. The IEP report has looked at different international scenarios pertaining to coal and gas. Its conclusion is unambiguous. Any supply strategy over the coming decades will have to emphasize Indias major resource, that is, coal. Coal is the most abundant domestically available primary energy resource other than thorium and solar. In the coal-based development scenario, the total demand for coal increases from 172 MTOE (million tonnes of oil equivalent) in 2004/05 to 1022 TOE in 2031/32. Measured in MT of Indian coal with 4000 kcal/kg (kilocalories per kilogram), the requirement of coal will thus increase from 406 MT in 2004/05 to 2555 MT in 2031/327 [6]. Chinas Energy Requirments 6. Before analyzing the Chinese forays in Energy markets South Asia , a basic question needs to be answered ,Why China? .The answer lies in the fact that India and China share many similarities. The countries are located in the same geographical area and are amongst the worlds most populated countries. They are the fastest growing economies in the world and are dependent on oil imports to fuel their economic growth. The way China has jump started its economic growth holds some important lessons that can be learnt. 7. The main reason fuelling Chinas aggressive forays into the energy markets are Chinas economic growth which has led to a near doubling of oil consumption in China. The average growth rate has been between 8-10% in the last decade . At this pace of economic growth, the Gross Domestic Product is expected to reach four times of its present value to 4.7 trillion dollars by year 2020 [7] . This high rate of growth has been fuelled by growth in heavy industries which will increase the demand for energy by 150% in the next decade. The near doubling of oil consumption is also partly fuelled by the fact that there is a high requirement of petro-chemical products in heavy industries and an increase in automobile growth in China. This has led to an increase of 7.5% in oil demand every year. Competition to Access Oil Resources in South / South East Asia 8. The oil situation emerging in South/ South East Asia is further complicated by the ongoing tussle between China and India to secure their own energy supplies in this region. The stiff competition is mainly because of two reasons, firstly the countries are amongst the fastest growing economies and secondly they lack in sufficient domestic energy sources and are net importers of oil. The two nations are resorting to efforts, both in the diplomatic and economic spheres. These efforts include forging new diplomatic alliances, high profile diplomatic visits, financial aid to the South Asian countries and investments in economic sectors like infrastructure, telecom and mineral extraction and resource development etc. 9. The state oil companies at the same time, are involved in deals in the oil and gas sectors purchasing stakes in oil fields which are already producing oil or are being explored, exchanging the know how in return for oil and participating in exploratory efforts to discover new oil and gas finds in the region . India is learning from the Chinese efforts in these fields as they have a head start over us in this area and have been quite successful in their efforts to secure their energy supplies. Both India and China are looking towards SriLanka, Bangladesh and Mayanmar for oil and Gas. Chinese Forays 10. China is not only a major energy consumer, but also a major producer with a high degree of self-reliance. In 2008, Chinas energy production reached 2.06 billion tonnes of standard coal and the consumption was 2.22 billion tonnes, ranking the second both in terms of production and consumption with a self-sufficiency of 93%. Coal is the primary source of energy for China and oil comes the second. While meeting the domestic demand, China exports 60–80 MT (million tonnes) of coal every year and is a main exporter of coal and charcoal in the world (even to India). Chinas power generation capacity in 2008-09 was the second largest only after that of USA. China produced over 182 MT of petroleum and 54 BCM (billion cubic metres) of natural gas. 11. To fulfil its growing appetite for energy, China is aggressively pursuing various energy resources. Chinese companies are involved in acquisition of oil companies, buying oil fields and purchasing partnerships in oil fields that are being developed. China is pursuing a multi dimensional approach which is a mix of diplomatic and economic efforts. One of the main thrust of Chinas oil policy is towards Asia and Africa. The importance of Africa countries to China can be appreciated from the fact that the trade between these is expected to rise many fold by the years to come . As part of its Go West policy, China is also accessing the Central Asian Region. It has plans to build pipelines from Tarim Basin in China to Kazakhstan and Turkmenistan in order to import oil and gas. In 2004, construction began on a pipeline from North West Kazakhstan to Xinjiang to carry oil. Chinese influence in the Central Asian Republics can be gauged from the fact that these republics now subscribe to the Chinese view on a multi polar world, and its views on various regional and international issues like Tibet, Taiwan etc. CHAPTER-III INDIAS EFFORTS TO SECURE ENERGY SUPPLIES AND THE IMPORTANCE OF MYANMAR 1. India Hydrocarbon Vision 2025 document as discussed earlier had given considerable importance to the role of gas in the energy mix to realize the projected national growth rates. This may be is primarily because though we may be having a large deposits of coal however the domestically produced coal has very high ash and sulphur content and is of very low calorific value . The coal utilized in the country has 4000 kcal/kg as against 6000 kcal/kg available in imported coal. In fact, the coal used in the Indian power plants has a calorific of value 3500 kcal/kg. Large estimates of total coal reserves do give a false sense of security because current and future technologies will convert only a small portion of the total reserves into a mineable category. Owing to all these reasons the govt has started looking towards new sources of energy supply so as to have a requisite amount of strategic energy reserve [8]. 2. There have been several large natural gas finds in India over the last five years, predominantly in the offshore Bay of Bengal (Krishna Godavari region). The discoveries also fit into the recent trend of large upstream developments in the Bay of Bengal, especially in the Krishna Godavari basin. Gujarat State Petroleum Corporation (GSPC) holds an estimated 20 Tcf of natural gas reserves in the Krishna Godavari area [9]. ONGC has worked to maximize its recovery rate at the Mumbai High, which supplies the bulk of the countrys natural gas at present. Transnational Pipeline to meet India s needs 3. Iran-Pakistan-India Pipeline . India has considered various proposals for international pipeline connections with other countries. One such scheme is the Iran-Pakistan-India (IPI) Pipeline, which has been under discussion since early nineties (1994). The plan calls for a roughly 1,700-mile, 2.8-Bcf/d pipeline to run from the South Pars fields in iran to the Indian state of Gujarat [11]. 4. Turkmenistan-Afghanistan-Pakistan-India Pipeline . India has shown interest to join onto the Turkmenistan-Afghanistan-Pakistan pipeline. The TAP project consists of 1,500-mile pipeline originating in Turkmenistans Dauletabad – Donmex natural gas fields and transporting the fuel to markets in Afghanistan, Pakistan, and to India. Initial plans for the TAP call for the line to have a capacity between 2-4Bcf/d at an estimated cost of $3.4 billion. While India has publicly promoted this scheme while negotiations with Iran have slowed, the TAPI(India) project faces a variety of hurdles. India has concerns about the security of the proposed line, which would traverse unstable regions in Afghanistan and Pakistan. Furthermore, a recent review of the TAPI project raised doubts whether the Turkmen natural gas supplies are sufficient to meet its proposed export commitments. 5. Imports from Myanmar . A third international pipeline proposal envisions India importing natural gas from Myanmar. In March 2006, the governments of India and Myanmar signed a natural gas supply deal, although a specific pipeline route has yet to be determined. Initially, the two countries planned to build a pipeline that would cross Bangladesh. However, after indecision from Bangladeshi authorities over the plans, India and Myanmar have studied the possibility of building a pipeline that would terminate in the eastern Indian state of Tripura and not cross Bangladeshi soil at all. Let us now discuss the impotence of Myanmar and see as to why is it so relevant in the overall energy game. GEO-STRATEGIC LOCATION OF MYANMAR Geographic Loc 6. Myanmar shares common borders with five countries Bangladesh 193 km, China 2,185 km, India 1,463 km, Laos 235 km, and Thailand 1,800 km. India dominates Myanmars western borders, just as China dominate its north-eastern borders. Thailand borders the entire eastern part of Myanmar except for narrow strip that borders Laos. And this makes Myanmar a strategic land bridge linking South, and Southeast Asia [12]. 7. As a littoral of the Indian Ocean, Myanmars strategic value further increases. Its 1930 km long coastline dominates the eastern arch of the Bay of Bengal, leaning on to the Malacca Strait. Thus Myanmar provides China the shortest land and sea access to South Asia, just as it provides convenient external land and sea communication options to Indias landlocked north-eastern states. Myanmars ocean boundaries are barely 30 km from the Andaman Islands increasing its maritime security potential. 8. Most of Myanmars mountain ranges and major river systems run north-south. This makes construction of road communication and movement from Indias east to Myanmar against the grain of the country difficult. At the same time it facilitates easier movement from the Chinese border in the northeast, and provides for natural flow of traffic. The Chinese have used this favourable terrain configuration to build road from the Chinese border to Mandalay in the heart of Myanmar and onward to the coast. As Myanmar provides the shortest access from mainland China to Indias eastern borders these developments have special long term strategic significance to India. 9. Indias north-eastern states bordering Myanmar are not as well developed as Yunnan province of China bordering Myanmar in the northeast. China has found it useful to link the development of Yunnan region jointly with Myanmar and Laos. Thus the two-way border trade and commerce is qualitatively and quantitatively better with China than with India. 10. While Indias relations with Myanmar have seen substantial improvement in recent years, Myanmar apparently remains within the Chinese sphere of influence. India has moved from voicing its opposition to the military juntas crackdown on pro-democracy activists and the arrest of Aung San Suu Kyi, the leader of the National League for Democracy to a more pragmatic, non-interventionist policy. This change in policy by India has been prompted by its desire to access the regions energy resources, gain access to the vast markets of Southeast Asia and to balance the influence of China. Strategic Significance of Myanmar 11. Strategic Importance to India . The reasons for the strategic importance of Myanmar to India are: (a) Myanmar is located at the tri junction of East Asia, South Asia and South East Asia. (b) Myanmar is the second largest of Indias neighbours and the largest on the eastern flank. (c) Myanmar provides the Eastern littoral of the Bay of Bengal. An unfriendly Myanmar hosting foreign naval presence would pose a threat to Indian security. (d) Myanmar has a big border with China in the north contiguous with the Sino-Indian disputed border which has many implications. (e) India has both a land border and a maritime boundary with Myanmar in the Bay of Bengal. Four Indian states (Arunachal Pradesh, Nagaland, Manipur and Mizoram) border Myanmar (Kachin Chin states and Sagaing Division) . (f) China can gain easy access to Indian Ocean through Myanmar. 12. Strategic Importance to China . In recent years, the strategic landscape in Southeast Asia has begun to change with the emergence of the Peoples Republic of China as a regional power. Chinas economic and military capabilities have grown dramatically at a time when Chinas traditional security challenge, Russia, has faded. Japan remains a long-term, but not an immediate security problem for China. This has left China free, in geopolitical terms, to shift its attention to the south Asia. Most striking manifestation of this development has been a very assertive policy toward the South China Sea; i.e., the entire sea and all the islands within it are now claimed as Chinese sovereign territory. Myanmar has a great deal of strategic significance for both India and China. Myanmars role in providing China a shorter access route to Indian Ocean and South Asia is going to be crucial in the strategic scene of South Asia. The Chinese have used the geophysical advantage they enjoy to gain access to Myanmars mineral and natural g as resources. Following a policy of non-interference in internal affairs of the country, China has become the main supplier of arms to Myanmar. This has enabled the military junta in power to beat the western sanctions and double the Army strength. The Energy factor 13. Chinas building of a port in Pakistan, its extra-polite friendship with the rulers of Myanmar and now its offer to Iran to pick up gas from Pakistan, is all part of the countrys quest for energy to feed its export economy and to marginalise Indias traditional dominance in the South Asian region. There, a mix of its own but rapidly depleting oil, low-grade coal and imported oil and gas are keeping the wheels of the export industry churning. 14. Myanmar is being cultivated as an exclusive oil and gas supplier to China. The extraordinary friendship the Chinese have struck up with the Myanmar rulers is not so puzzling if it is appreciated that oil and gas are Chinas main interest there. To this affect all loans advanced and all military hardware being sold have only one purpose to allow them to grab as much oil and gas as they can [13] . 15. South-East Asias biggest proven gas reserve lies in the Shwe field, just off the coast of Ramree Island. There is a plan to build a pipeline to carry the gas from Shwe field to China. A parallel pipe is also planned to be completed in next two years that will carry Middle Eastern and African oil from a new deep-water harbour at Kyaukphyu, bypassing the Strait of Malacca and fuelling the economy of Chinas south-west . China has made huge energy investments in Myanmar and plans to construct overland energy transport routes through that country to avoid the Malacca Straits choke point. This is a possibly the key factor behind Beijings support for the military junta in Myanmar. 16. The China National Offshore Oil Corporation (CNOOC) signed six contracts on production sharing with the Myanmar Oil and Gas Enterprise (MOGE) of the Ministry of Energy from October 2004 to January 2005 [14] . The China Petroleum and Chemical Corporation and its subsidiary Dian Quiangui Petroleum Exploration also work the inland fields. Moreover, the China National Petroleum Corporation (CNPC) and its subsidiary Chinnery Assets also won contracts to upgrade the four old oilfields in central Myanmar. 17. In a development of strategic importance, recently China beat India to sign a 30-year mega deal to import natural gas from fields in Myanmar offshore where interestingly Indias oil companies have 25 percent stake. Chinas State-run China National Petroleum Corp (CNPC) entered into a gas sales agreement with South Koreas Daewoo International for buying gas from the Shwe field in A-1 offshore block and the adjoining A-3 block[15] . Possible Implications Of Chinese Intentions 18. Myanmar, after decades of neutrality and a strictly non-aligned foreign policy has today emerged as Chinas principle military ally in Asia. China was the first country to officially recognize Myanmars State Law and Order Restoration Council (SLORC) after it seized power in September 1988. However, prior to this coup China had poured in arms, ammunition in Myanmar and actively supported rebels in Myanmar. This change can be explained in terms of Chinas changing post-Cold War strategic thinking and its priorities. Apart from sharing strategic and economic interests, China and Myanmar also share more than 2,000 km long common border. Besides, Myanmar has also been historically viewed as a buffer state between China and India. Thus, for reasons of geographical proximity, history and security, China has been going overboard trying to sweep Myanmar into its sphere of influence with a combination of economic, diplomatic and military ties[16] . China also views Myanmar as a gateway to Indo-China, South East Asia and the Indian Ocean. Domination of Myanmar enables China to encircle littoral and degrade Indias security environment along its North-eastern border and in the Bay of Bengal. Energy Security 19. It is now very clear that China is an emerging economic and military super power. Its economy has been growing at a consistent rate of 8-10% for the last 10 years and is expected to grow at the same rate in years to come. To be able to sustain its growth rate, China has huge energy requirement and is forging alliances all over the world to not only meet its requirements but also secure energy resources for future. Myanmar has reportedly worlds tenth biggest gas reserves estimated to be more than 90 trillion cubic feet. 20. Eighty percent of China bound oil and liquid natural gas passes through the Indian Ocean. Therefore, China is giving special importance to building strategic naval assets in the Indian Ocean. The building of the Gwadar port in Pakistan ia s part of this plan. Its naval listening facility in Myanmar is also augmenting Chinas blue water capabilities. But Chinas chief interest in Myanmar, analysts say, may lie in its strategic location as a site for pipelines that Beijing reportedly wants to build from Burmas ports to southern China for trans-shipping oil and gas brought by tankers from the Middle East. That would reduce Chinas need to ship oil or gas through the Malacca Straits, which Beijing worries could be closed off by the Indian Navy in the event of a conflict. Standing in the way of Chinese mastery of Indian Ocean shipping lanes is the Indian naval facility in the Andaman and Nicobar Islands in the Bay of Bengal, opposite the Malacca Straits. In addition, Indias modernization of its navy and its proposed acquisition of nuclear submarines and aircraft carriers are not sitting well with the Chinese. From these small islands, India can interdict most of Chinas energy imports.