India tycoon's got tons of cash, nowhere to invest
Indian billionaire with $3.8 billion pile of cash can't find worthy domestic investment

By Erika Kinetz, AP Business Writer | AP – 20 hours

MUMBAI, India (AP) -- Ajay Piramal is sitting on a mountain of cash. Yet the billionaire Indian tycoon, working in one of the world's fastest growing economies, is struggling to figure out what to do with the money.

The problem isn't opportunity, he said. It's India.

"Every large investment, there was no transparency," Piramal said.

His dilemma is a worrying sign for India. With the country mired in corruption, bureaucratic red tape and unclear and changing government policies, many of the men who made their billions here are saying maybe it's time to quit India. It's got to be easier to do business elsewhere.

In May last year, Piramal's healthcare business sold its generic drug operations to U.S. pharmaceutical giant Abbott Laboratories for $3.8 billion. Piramal, a tall big man in a country that still measures prosperity by girth, was eager to set that cash pile to work. He wanted to expand one of his chemical plants, but was told it would take five years.

"The same plant could be set up in China in two years," he said. "I love India, but my customer is not going to wait."

India, still a beacon of relatively fast growth despite a troubled world economy, should be a magnet for capital. Instead, since the beginning of 2010, the amount that Indians have invested in businesses overseas has exceeded the amount foreigners are investing in India, according to central bank figures.

In part this reflects the confidence and aptitude of India's maturing companies and the current malaise in the global economy and financial markets. But it also reflects deep problems at home. India's big coporations may be cash rich but the failure to invest that money domestically is bad news for a developing country that needs capital to build the roads, power plants and food warehouses that could help lift hundreds of millions out of dire poverty.

The frustration of India's business elite with corruption, political paralysis, log-jammed approvals, regulatory flip-flops, lack of access to natural resources and land acquisition battles — to pick a few of the top complaints — has reached a pitch perhaps not heard since India began liberalizing its economy in the early 1990s.

"If you are an honest businessman in India, it's very difficult to start up anything," said Jamshyd Godrej, chairman of manufacturing giant Godrej & Boyce. "Companies are going to operate where they see the best opportunities and efficiency for their capital."

Increasingly, that's outside India.

In 2008, foreigners poured roughly twice as much direct investment into India — $33 billion — as Indians plowed into businesses overseas. By 2010, that had reversed: Indians invested $40 billion abroad — twice as much as foreigners invested in India — a trend that's continued this year.

There is another, unspoken element to all the complaints. To the extent that business in India ran on corruption, some of the old, dirty ways of doing things are being disrupted, freezing India's already glacial bureaucracy, business leaders say.

Scandals in the staging of the Commonwealth Games, the pilfering of homes meant for war widows and the irregular auction of cellphone spectrum that cost the country billions has sent parliamentarians and even a Cabinet minister to prison.

With Indians tiring of the incessant graft, tens of thousands of middle-class protesters poured into the streets and pushed an anti-corruption bill onto the floor of Parliament.

Steelmakers can't get enough iron ore because a massive mining scandal in the southern state of Karnataka prompted a court to order the closure of illicit mines that account for a fifth of iron ore production in the country.

The bureaucrats — even the honest ones — are reportedly so scared of being punished they are refusing to make the decisions needed to make the country run.

Piramal is not unpatriotic. Each room in his executive suite is named after an Indian epic hero: Arjuna, the most pure; Dhananjay, acquirer and master of wealth. There's a quote from the Upanishads scriptures on the wall.

His office sits in a one million square foot office park in Mumbai his family built. The buildings around him — white with blue glass that flashes back the unforgiving sun — bear his own name in large black letters: Piramal Towers.

Piramal had the will and the means to build power plants and roads.

Instead, his Piramal Group's largest investment to date has been in one of the office park's tenants: the Indian subsidiary of the British telecom giant Vodafone Plc.

Last September, when he got the first payout, of $2.2 billion, from Abbott, the phone started ringing.

"Because people knew we had money, we had so many people approaching us for projects in the infrastructure sector," he said. "These people had no experience and no knowledge and no track record of having built a business in any area. And yet they were coming to us saying we have licenses and approvals. That just didn't sound right or smell right."

Each day, they paraded through his office: The investment banker who decided to build a 500 megawatt power plant, the coal trader assured of a government coal allocation, small-time miners with pretty presentations promising land, licenses and financing.

"They'd name politicians from the center and the state who had it all tied up for them," he said. "It didn't sound right. Obviously there were things going on in the system."

Road and port projects weren't much better, he said.

Piramal also looked at investing in engineering and infrastructure services companies, but couldn't make sense of their books.

"We couldn't find anything," he said. "People get greedy. In their desire to get good valuations they resort to, if I can say, creative accounting."

Today, India's infrastructure companies are known as great wealth destroyers.

"Infrastructure investment has become untouchable, a sure way of losing money," said Jagannadham Thunuguntla, head of research at SMC Global Securities. He calculates that four of India's top infrastructure companies — GMR Infrastructure, GVK Power and Infrastructure, Lanco Infratech and Punj Lloyd — have lost over 80 percent of their value since 2007. A fifth, Larson & Toubro is down 50 percent.

Piramal may have dodged a bullet, but shareholders in Piramal Healthcare aren't happy. Despite a $600 million special dividend and share buyback, the share price has sagged since the Abbott deal was announced on May 21 last year. They'd like to see the Abbott cash productively deployed. Instead, much of it is sitting in fixed deposit accounts.

Piramal said he really does want to run a pharmaceutical company and be the first Indian company to discover a world-class drug — despite his dabbling in telecom, financial services and real estate financing. It's just that pharma can't absorb all his cash. He plans to sell the 5.5 percent stake he picked up in Vodafone Essar for $640 million in a few years, when Vodafone Essar issues shares in an initial public offering, he said.

He has also launched Piramal Capital, to make real estate and infrastructure loans, and spent about $50 million to acquire IndiaReit, a real estate investment company.

Meanwhile, his thoughts have turned to Boston, where he set up IndUS Growth Partners with a professor from Harvard Business School to look for buying opportunities in the U.S., in security, financial services and biotechnology. And he said he's still planning to spend over a billion dollars on biotechnology acquisitions in North America and Europe.

"India was going more towards capitalism than socialism," Piramal said. "I think we're going back. Capitalism went to too much excess. Corruption levels went to the extreme."

He said he'll announce his first overseas acquisition by March.

Tomb exploration reveals first archaeological evidence of Christianity from the time of Jesus
February 28, 2012
The archaeological examination by robotic camera of an intact first century tomb in Jerusalem has revealed a set of limestone Jewish ossuaries or "bone boxes" that are engraved with a rare Greek inscription and a unique iconographic image that the scholars involved identify as distinctly Christian.

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The four-line Greek inscription on one ossuary refers to God "raising up" someone and a carved image found on an adjacent ossuary shows what appears to be a large fish with a human stick figure in its mouth, interpreted by the excavation team to be an image evoking the biblical story of Jonah.

In the earliest gospel materials the "sign of Jonah," as mentioned by Jesus, has been interpreted as a symbol of his resurrection. Jonah images in later "early" Christian art, such as images found in the Roman catacombs, are the most common motif found on tombs as a symbol of Christian resurrection hope. In contrast, the story of Jonah is not depicted in any first century Jewish art and iconographic images on ossuaries are extremely rare, given the prohibition within Judaism of making images of people or animals.

The tomb in question is dated prior to 70 CE, when ossuary use in Jerusalem ceased due to the Roman destruction of the city. Accordingly, if the markings are Christian as the scholars involved believe, the engravings represent – by several centuries - the earliest archaeological record of Christians ever found. The engravings were most likely made by some of Jesus' earliest followers, within decades of his death. Together, the inscription and the Jonah image testify to early Christian faith in resurrection. The tomb record thus predates the writing of the gospels.

The findings will be detailed in a preliminary report by James D. Tabor, professor and chair of religious studies at the University of North Carolina at Charlotte, to be published online in bibleinterp.com on February 28, 2012.

"If anyone had claimed to find either a statement about resurrection or a Jonah image in a Jewish tomb of this period I would have said impossible -- until now," Tabor said. "Our team was in a kind of ecstatic disbelief, but the evidence was clearly before our eyes, causing us to revise our prior assumptions."


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The publication of the academic article is concurrent with the publication of a book by Simon & Schuster entitled "The Jesus Discovery: The New Archaeological Find That Reveals the Birth of Christianity." The book is co-authored by Professor James Tabor and filmmaker/professor Simcha Jacobovici. A documentary on the discovery will be aired by the Discovery Channel in spring 2012.

The findings and their interpretation are likely to be controversial, since most scholars are skeptical of any Christian archaeological remains from so early a period. Adding to the controversy is the tomb's close proximity to a second tomb, discovered in 1980. This tomb, dubbed by some "The Jesus Family Tomb," contained inscribed ossuaries that some scholars associate with Jesus and his family, including one that reads "Jesus, son of Joseph."

"Context is everything in archaeology," Tabor pointed out. "These two tombs, less than 200 feet apart, were part of an ancient estate, likely related to a rich family of the time. We chose to investigate this tomb because of its proximity to the so-called 'Jesus tomb,' not knowing if it would yield anything unusual."

The tomb containing the new discoveries is a modest sized, carefully carved rock cut cave tomb typical of Jerusalem in the period from 20 BCE until 70 CE.

The tomb was exposed in 1981 by builders and is currently several meters under the basement level of a modern condominium building in East Talpiot, a neighborhood of Jerusalem less than two miles south of the Old City. Archaeologists entered the tomb at the time, were able to briefly examine it and its ossuaries, take preliminary photographs, and remove one pot and an ossuary, before they were forced to leave by Orthodox religious groups who oppose excavation of Jewish tombs.

The ossuary taken, that of a child, is now in the Israel State Collection. It is decorated but has no inscriptions. The archaeologists mention "two Greek names" but did not notice either the newly discovered Greek inscription or the Jonah image before they were forced to leave. The tomb was re-sealed and buried beneath the condominium complex on what is now Don Gruner Street in East Talpiot.

The adjacent "Jesus tomb," was uncovered by the same construction company in 1980, just one year earlier. It was thoroughly excavated and its contents removed by the Israel Antiquities Authority. This tomb's controversial ossuaries with their unusual cluster of names (that some have associated with Jesus and his family) are now part of the Israel State Collection and have been on display in various venues, including the Israel Museum. These ossuaries will be in an exhibit running from late February through April 15 at Discovery Times Square.

In 2009 and 2010, Tabor and Rami Arav, professor of archaeology at the University of Nebraska at Omaha, working together with Jacobovici, obtained a license to excavate the current tomb from the Israel Antiquities Authority under the academic sponsorship of the University of North Carolina at Charlotte. Because of its physical location under a modern building (making direct access nearly impossible), along with the threat of Orthodox Jewish groups that would protest any such excavation, Tabor's team determined to employ a minimally invasive procedure in examining the tomb.

Funding for the excavation was provided by the Discovery Channel/Vision Television/Associated Producers. Jacobovici's team at the Toronto based Associated Producers developed a sophisticated robotic arm to carry high definition cameras, donated by General Electric. The robotic arm and a second "snake camera" were inserted through two drill holes in the basement floor of the building above the tomb. The probe was successful and the team was able to reach all the ossuaries and photograph them on all sides, thus revealing the new inscriptions.

Beyond the possible Christian connection, Tabor noted that the tomb's assemblage of ossuaries stands out as clearly extraordinary in the context of other previously explored tombs in Jerusalem.

"Everything in this tomb seems unusual when contrasted with what one normally finds inscribed on ossuaries in Jewish tombs of this period," Tabor said. "Of the seven ossuaries remaining in the tomb, four of them have unusual features."

There are engravings on five of the seven ossuaries: an enigmatic symbol on ossuary 2 (possibly reading Yod Heh Vav Heh or "Yahweh" in stylized letters that can be read as Greek or Hebrew, though the team is uncertain); an inscription reading "MARA" in Greek letters (which Tabor translates as the feminine form of "lord" or "master" in Aramaic) on ossuary 3; an indecipherable word in Greek letters on ossuary 4 (possibly a name beginning with "JO…"); the remarkable four-line Greek inscription on ossuary 5; and finally, and most importantly, a series of images on ossuary 6, including the large image of a fish with a figure seeming to come out of its mouth.

Among the approximately 2000 ossuaries that have been recovered by the Israel Antiquities Authority, only 650 have any inscriptions on them, and none have inscriptions comparable to those on ossuaries 5 and 6.

Less than a dozen ossuaries from the period have epitaphs but, according to Tabor, these inscribed messages usually have to do with warnings not to disturb the bones of the dead. In contrast, the four-line Greek inscription contains some kind of statement of resurrection faith.

Tabor noted that the epitaph's complete and final translation is uncertain. The first three lines are clear, but the last line, consisting of three Greek letters, is less sure, yielding several possible translations: "O Divine Jehovah, raise up, raise up," or "The Divine Jehovah raises up to the Holy Place," or "The Divine Jehovah raises up from [the dead]."

"This inscription has something to do with resurrection of the dead, either of the deceased in the ossuary, or perhaps, given the Jonah image nearby, an expression of faith in Jesus' resurrection," Tabor said.

The ossuary with the image that Tabor and his team understand to be representing Jonah also has other interesting engravings. These also may be connected to resurrection, Tabor notes. On one side is the tail of a fish disappearing off the edge of the box, as if it is diving into the water. There are small fish images around its border on the front facing, and on the other side is the image of a cross-like gate or entrance—which Tabor interprets as the notion of entering the "bars" of death, which are mentioned in the Jonah story in the Bible.

"This Jonah ossuary is most fascinating," Tabor remarked. "It seems to represent a pictorial story with the fish diving under the water on one end, the bars or gates of death, the bones inside, and the image of the great fish spitting out a man representing, based on the words of Jesus, the 'sign of Jonah' – the 'sign' that he would escape the bonds of death."


Provided by University of North Carolina at Charlotte

North Dakota Considers Eliminating Property Tax Jim Wilson/The New York Times
Keith Colville, who supports the abolition of property taxes in North Dakota, listened to a debate on the issue last month at a school auditorium in Edgeley.
By MONICA DAVEY
Published: June 11, 2012
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BISMARCK, N.D. — Since Californians shrank their property taxes more than three decades ago by passing Proposition 13, people around the nation have echoed their dismay over such levies, putting forth plans to even them, simplify them, cap them, slash them. In an election here on Tuesday, residents of North Dakota will consider a measure that reaches far beyond any of that — one that abolishes the property tax entirely.

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A group of Edgeley residents, including Nicole Gibson, who held a “Vote No on Measure 2” sign, gathered after the debate.
“I would like to be able to know that my home, no matter what happens to my income or my life, is not going to be taken away from me because I can’t pay a tax,” said Susan Beehler, one in a group of North Dakotans who have pressed for an amendment to the state’s Constitution to end the property tax. They argue that the tax is unpredictable, inconsistent, counter to the concept of property ownership and needless in a state that, thanks in part to wildly successful oil drilling, finds itself in the rare circumstance of carrying budget reserves.

“When,” Ms. Beehler asked, “did we come to believe that government should get rich and we should get poor?”

An unusual coalition of forces, including the North Dakota Chamber of Commerce and the state’s largest public employees’ unions, vehemently oppose the idea, arguing that such a ban would upend this quiet capital. Some big unanswered questions, the opponents say, include precisely how lawmakers would make up some $812 million in annual property tax revenue; what effect the change would have on hundreds of other state laws and regulations that allude to the more than century-old property tax; and what decisions would be left for North Dakota’s cities, counties and other governing boards if, say, they wanted to build a new school, hire more police, open a new park.

“This is a plan without a plan,” said Andy Peterson, president and chairman of the North Dakota Chamber of Commerce, who acknowledged that property taxes have climbed in some parts of the state and that North Dakota’s political leaders need to tackle the issue. “But this solution is a little like giving a barber a razor-sharp butcher knife — and by the way, this barber is blind — and asking him or her to give you a haircut. You’ll get the job done, but you might be missing an ear or an eye.”

Polls conducted last month and last week suggest that voters here overwhelmingly oppose the ballot measure to ban the property tax.

Still, even if the measure here fails on Tuesday, the notion is picking up steam in some Republican circles in other states, including North Carolina, Texas and Pennsylvania.

“No tax should have the power to leave you homeless,” said Jim Cox, a state representative in Pennsylvania who has proposed legislation to eliminate the school property tax in the state where, he said, such taxes have led to residents’ losing homes to sheriff’s sales, entering into reverse mortgages or simply moving away.

In a way, North Dakota, though 48th in population among the states, was a logical place for such a movement to brew. While the state’s property tax collections per capita generally fall near the middle among states, the surge in oil production over the past five years, mainly in the western portion of the state, has seen its effects ripple through other parts of life here. The state’s coffers are full, overflowing even. Assessments of home values, especially in some areas, have risen drastically too.

The political mood here, too, leans toward Republicans (who dominate Bismarck), small government, little intrusion and fiscal conservatism. Though opponents to the property tax here received a $12,000 donation in 2010 from the American Tax Reduction Movement, a sister group to the Howard Jarvis Taxpayers Association, which grew out of California’s Proposition 13, members say the efforts here were largely organic, the result of unhappy property taxpayers getting fed up.

“The same problem kept coming up,” said Charlene Nelson, a homemaker who became a leader of the effort to amend the Constitution, pointing to what she deems the underlying problem with the property tax. “It means all of us are renters — none of us are homeowners.”

In recent years, state officials sent more money to localities to pay for schools in an effort to lower property tax bills. But opponents of the property tax said those efforts did not go nearly far enough, and collected nearly 30,000 signatures on petitions to bring the matter to the ballot.

Those who want to keep the property tax have vastly outraised the opponents, gathering more than $500,000, campaign finance reports show. Though the question is among four on ballots here on Tuesday — including the highly contentious question of whether the University of North Dakota should give up its Fighting Sioux nickname — residents here said they had been deluged with information about the property tax measure, on signs, in radio talk shows and through months of debates in school gymnasiums and recreation halls in small towns like Edgeley and Bowman.

For his part, Gov. Jack Dalrymple, a Republican, said he opposed the property tax ban. “It’s mind-boggling, really,” he said, in an interview, of the effects of such a ban. “We’d be changing everything, frankly.”

The notion, he said, that the state has enough surplus to replace property taxes for localities around the state without raising other taxes is false. For starters, he said, much of the state’s benefits from the oil boom are already dedicated legally to particular funds and cannot simply be transferred to support schools, counties, towns, park districts and the like.

Even if the ban fails, North Dakota lawmakers now seem all but certain to tackle broader solutions to the property tax question as early as next year.

“I have to say that we totally understand that North Dakotans are very concerned about their property tax payments,” Mr. Dalrymple said. “You have a tension there, and people say this can’t keep on.”