General Affairs
Armed Forces Are Answerable To Government, Says Supreme Court
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NEW DELHI: Armed forces are answerable to the government, otherwise there will be martial law in the country, the Supreme Court said today.
A bench of Justices Amitava Roy and U U Lalit made this observation as it dismissed a plea seeking action against Defence Minister Manohar Parrikar for allegedly interfering and claiming credit for the surgical strikes conducted by the Indian Army in PoK.
"This plea is not maintainable and is hence dismissed. Armed forces are answerable to the government, otherwise you will have martial law in this country. We don't see any merit in the plea," the bench said.
Advocate M L Sharma, who had filed the plea, said that Union Ministers including the Defence Minister had been claiming credit for the surgical strikes carried out by the Indian Army, for which they are not entitled to because as per the provisions of the Constitution, the President is the head of the armed forces.
He alleged that the armed forces' action was being used for the personal interests of a few.
Mr Sharma sought that prosecution be initiated against those who tried to interfere and claim credit for the operations carried out by the armed forces.
To this, the bench said "what is the personal interest in this? Armed forces are answerable to the government." The court said the plea was not maintainable and hence dismissed.
A bench of Justices Amitava Roy and U U Lalit made this observation as it dismissed a plea seeking action against Defence Minister Manohar Parrikar for allegedly interfering and claiming credit for the surgical strikes conducted by the Indian Army in PoK.
"This plea is not maintainable and is hence dismissed. Armed forces are answerable to the government, otherwise you will have martial law in this country. We don't see any merit in the plea," the bench said.
Advocate M L Sharma, who had filed the plea, said that Union Ministers including the Defence Minister had been claiming credit for the surgical strikes carried out by the Indian Army, for which they are not entitled to because as per the provisions of the Constitution, the President is the head of the armed forces.
He alleged that the armed forces' action was being used for the personal interests of a few.
Mr Sharma sought that prosecution be initiated against those who tried to interfere and claim credit for the operations carried out by the armed forces.
To this, the bench said "what is the personal interest in this? Armed forces are answerable to the government." The court said the plea was not maintainable and hence dismissed.
India, Pakistan Need To Solve Issues Themselves: US On Diplomat Row
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WASHINGTON: The US has said that India and Pakistan need to solve issues among themselves following heightened tensions over the expelling of diplomats.
"We've seen the reports of these decisions. These are sovereign decisions that nation-states make, and these are issues that we're going to leave to India and Pakistan to work out," US State Department spokesman John Kirby said on Thursday during a press briefing.
Hours after Indian Foreign Secretary S Jaishankar summoned Pakistan High Commissioner Abdul Basit in New Delhi on Thursday to protest against Mehmood Akhtar, a visa officer at the Pakistan High Commission, who India accused of spying, Islamabad retaliated with a similar move.
In the evening, Pakistan Foreign Secretary Aizaz Ahmad Chaudhry summoned Indian High Commissioner Gautam Bambawale in Islamabad and declared Indian High Commission official Surjeet Singh as persona non grata and asked that he leave the country by Saturday.
Pakistan denied the espionage charges levelled against Akhtar as "false and unsubstantiated", and alleged that Indian police "manhandled" him.
"These are issues that we believe India and Pakistan need to discuss, need to talk about, need to work out between themselves," Kirby added.
"We've seen the reports of these decisions. These are sovereign decisions that nation-states make, and these are issues that we're going to leave to India and Pakistan to work out," US State Department spokesman John Kirby said on Thursday during a press briefing.
Hours after Indian Foreign Secretary S Jaishankar summoned Pakistan High Commissioner Abdul Basit in New Delhi on Thursday to protest against Mehmood Akhtar, a visa officer at the Pakistan High Commission, who India accused of spying, Islamabad retaliated with a similar move.
Pakistan denied the espionage charges levelled against Akhtar as "false and unsubstantiated", and alleged that Indian police "manhandled" him.
"These are issues that we believe India and Pakistan need to discuss, need to talk about, need to work out between themselves," Kirby added.
Chinese Businesses Staying Away From India Would Be Unwise: State Media
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BEIJING: Arguing that anxieties of Chinese businesses in investing in India are "overblown", official media today said investors can make "fat gains" by cashing in on the rapid growth in India's manufacturing sector and staying away is indisputably an "unwise choice".
Making a strong case for why Chinese should rush their investments to India, an article in the official daily Global Times said "the rapid growth in India's manufacturing sector has thus far had little to do with Chinese capital".
"In other words, China does not have the capability to limit India's manufacturing development. What China is capable of is preventing Chinese investment from capitalising on India's admired growth outlook, indisputably an unwise choice," the article written by Ge Cheng, Research fellow at the National Institute of International Strategy of Chinese Academy of Social Sciences, said.
The article titled 'Chinese investment can capitalise on India's growth' said Chinese capital invested in the Indian market is "likely to reap fat gains in the future, which is a de facto win-win for all parties".
"The recently concluded eighth BRICS Summit in Goa has again thrust India into the spotlight, giving the world a breath of fresh air amid almost endless populist fights haunting the US and Europe.
"Since 2014, India's domestic reforms have come to fruition and its economic growth has been impressive, thanks to efforts by Prime Minister Narendra Modi, which include regulating the manners of government employees, eliminating corruption, degeneration and outdated conventions as well as addressing deep-rooted social and economic problems," it said.
However, in light of the "robust momentum in India's economy", confusion prevailed in China over whether businesses should shift their manufacturing into India, it said.
"Those opposing the shift argue that the relocation of manufacturing operations will inevitably prompt Indian companies to outpace their Chinese counterparts in producing low- to medium-range goods, and consequently force Chinese businesses to compete against companies from the US, Japan and Europe in the high end of the value chain," it said.
In the worst-case scenario, China might be left in the precarious position of being incapable of competing against its Western rivals in high-end manufacturing while also being challenged by a dominant India in the lower end.
"However, I would argue that this anxiety over Chinese investment in India is overblown. Rather, there are many reasons why investing in India could boost the clout of Chinese capital in the Indian economy," Ge said.
Outlining India's growth figures specially the GDP, it said the "growth numbers might be inflated". "Behind the brilliant figures, however, were the dramatic drop in oil prices between 2014 and 2016 and a 2015 change to India's GDP calculation method," it said.
But at the same, "investing in India is an inevitable choice of capital, which essentially pursues profits. The accelerated flows of foreign direct investment (FDI) into India do not seek to make contributions to India, but instead are allured by the promising profit prospects enabled by the economy's growth and an array of favourable policies".
"Based on realist thoughts, India is simply striving to improve its investment environment and revise rules and regulations. The Modi government also updated FDI rules, raising the foreign investment cap to 49 per cent from 26 per cent, except for in state-owned banks and state-owned listed companies.
"The threshold limit for automatic approval has also been loosened to 500 billion rupees (USD 7.4 billion) from 300 billion rupees. If India can continue its current growth momentum, quicken (or at least maintain) its current pace of reform, the Chinese capital that has entered the Indian market is likely to reap fat gains in the future, which is a de facto win-win for all parties," the article said.
Also, China cannot effect whether or not its low-end manufacturing will be overtaken by India.
"The rise of various emerging economies after World War II has shown that the economic takeoff pivoting around manufacturing requires external capital, foreign technologies, massive orders in the US and European markets, a competitive labour force in the emerging country as well as a relatively stable international environment.
"China neither controls nor monopolises these necessary components," it said pointing out that India's manufacturing so far had little to do with Chinese capital.
Making a strong case for why Chinese should rush their investments to India, an article in the official daily Global Times said "the rapid growth in India's manufacturing sector has thus far had little to do with Chinese capital".
The article titled 'Chinese investment can capitalise on India's growth' said Chinese capital invested in the Indian market is "likely to reap fat gains in the future, which is a de facto win-win for all parties".
"The recently concluded eighth BRICS Summit in Goa has again thrust India into the spotlight, giving the world a breath of fresh air amid almost endless populist fights haunting the US and Europe.
"Since 2014, India's domestic reforms have come to fruition and its economic growth has been impressive, thanks to efforts by Prime Minister Narendra Modi, which include regulating the manners of government employees, eliminating corruption, degeneration and outdated conventions as well as addressing deep-rooted social and economic problems," it said.
However, in light of the "robust momentum in India's economy", confusion prevailed in China over whether businesses should shift their manufacturing into India, it said.
"Those opposing the shift argue that the relocation of manufacturing operations will inevitably prompt Indian companies to outpace their Chinese counterparts in producing low- to medium-range goods, and consequently force Chinese businesses to compete against companies from the US, Japan and Europe in the high end of the value chain," it said.
In the worst-case scenario, China might be left in the precarious position of being incapable of competing against its Western rivals in high-end manufacturing while also being challenged by a dominant India in the lower end.
Outlining India's growth figures specially the GDP, it said the "growth numbers might be inflated". "Behind the brilliant figures, however, were the dramatic drop in oil prices between 2014 and 2016 and a 2015 change to India's GDP calculation method," it said.
But at the same, "investing in India is an inevitable choice of capital, which essentially pursues profits. The accelerated flows of foreign direct investment (FDI) into India do not seek to make contributions to India, but instead are allured by the promising profit prospects enabled by the economy's growth and an array of favourable policies".
"Based on realist thoughts, India is simply striving to improve its investment environment and revise rules and regulations. The Modi government also updated FDI rules, raising the foreign investment cap to 49 per cent from 26 per cent, except for in state-owned banks and state-owned listed companies.
"The threshold limit for automatic approval has also been loosened to 500 billion rupees (USD 7.4 billion) from 300 billion rupees. If India can continue its current growth momentum, quicken (or at least maintain) its current pace of reform, the Chinese capital that has entered the Indian market is likely to reap fat gains in the future, which is a de facto win-win for all parties," the article said.
Also, China cannot effect whether or not its low-end manufacturing will be overtaken by India.
"The rise of various emerging economies after World War II has shown that the economic takeoff pivoting around manufacturing requires external capital, foreign technologies, massive orders in the US and European markets, a competitive labour force in the emerging country as well as a relatively stable international environment.
"China neither controls nor monopolises these necessary components," it said pointing out that India's manufacturing so far had little to do with Chinese capital.
Can PM Narendra Modi's Foreign Trip Bills Be Public Information? Review Begins
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Files related to Prime Minister Narendra Modi's foreign travel have been called for by the Chief Information Commission, which wants to know if details of how much was spent and how bills are cleared can be made public.
PM Modi has travelled to over 40 countries since he took office in May 2014. But there have been delays in clearing flight charter bills, for which national carrier Air India is paying heavily, says Right to Information campaigner Lokesh Batra. He had used RTI to ask for details of the foreign travels of PM Modi and his predecessor Manmohan Singh.
"Air India is in deep financial crisis and I wanted to know why it takes so long to clear bills to the national carrier under different regimes," Commodore Batra told NDTV.
The information commission will decide whether these records can be disclosed.
The Prime Minister's Office and the External Affairs Ministry had refused to share the details, flagging security concerns.
PMO officials had informed the Chief Information Commissioner that security details would be compromised if the files were shown to the RTI activist. Commodore Batra, however, told the information body that he only wants to study the reason for delays in clearing bills to Air India.
The Information Commission has asked the Prime Minister's Office to produce the information by November 18.
Earlier this year, the PM's official website put up details of his visits and the cost of chartering flights. For many of the tours, there are gaps as bills are described as "under process" or "not received".
Spending for the Prime Minister's foreign trips is listed under "Cabinet Ministers - Maintenance of PM's aircraft - other charges" in the Budget. For his domestic visits, the expenses are billed to the Defence Ministry.
PM Modi has travelled to over 40 countries since he took office in May 2014. But there have been delays in clearing flight charter bills, for which national carrier Air India is paying heavily, says Right to Information campaigner Lokesh Batra. He had used RTI to ask for details of the foreign travels of PM Modi and his predecessor Manmohan Singh.
"Air India is in deep financial crisis and I wanted to know why it takes so long to clear bills to the national carrier under different regimes," Commodore Batra told NDTV.
The information commission will decide whether these records can be disclosed.
The Prime Minister's Office and the External Affairs Ministry had refused to share the details, flagging security concerns.
PMO officials had informed the Chief Information Commissioner that security details would be compromised if the files were shown to the RTI activist. Commodore Batra, however, told the information body that he only wants to study the reason for delays in clearing bills to Air India.
The Information Commission has asked the Prime Minister's Office to produce the information by November 18.
Earlier this year, the PM's official website put up details of his visits and the cost of chartering flights. For many of the tours, there are gaps as bills are described as "under process" or "not received".
Spending for the Prime Minister's foreign trips is listed under "Cabinet Ministers - Maintenance of PM's aircraft - other charges" in the Budget. For his domestic visits, the expenses are billed to the Defence Ministry.
India Seeks 'Shoot To Kill' Hardware In Military Upgrade: Foreign Media
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India's armed forces have embarked on a shopping spree for modern assault rifles, body armor and helmets, providing a potential boost to global arms suppliers.
The 1.3 million-strong military is abandoning its two decade-old Indian made rifles and seeking to outfit its infantry with more up-to-date equipment, scouting for a new model on the global market for 185,000 assault rifles. The Ministry of Defence also needs to buy hundreds of thousands of helmets and tens of thousands of bullet proof vests.
The moves are part of Prime Minister Narendra Modi's $250 billion push to modernize India's armed forces, as infantry continue to face the brunt of deadly attacks in disputed border areas such as Kashmir and the north-east.
Plans to buy new equipment from overseas, however, have been held back by bureaucratic delays and the military's desire to balance the needs of troops against efforts to have equipment built domestically under Modi's " Make in India" program, a key plank in his drive to boost local manufacturing.
"It's encouraging that they're going ahead with this, but it's discouraging that it's not made under 'Make in India,' " said Anit Mukherjee, a former major in the Indian Army and assistant professor at Singapore's S. Rajaratnam School of International Studies. "The fact that it took 10 years for Indians to go ahead and say, 'we're importing' means the bureaucracy is still holding back modernization of the armed forces. That's problematic."
Local Rifles
The army currently uses the INSAS, or Indian Small Arms System, rifle, introduced in the late 1990s and built by the state-owned Ordnance Factory. Yet the Indian and Nepalese soldiers issued with the guns complained the 5.56mm rifles were unreliable, prompting the ministry to go to the global market for their replacement.
To identify possible vendors, the ministry last month issued a request for information. It said it wants a larger, more deadly 7.62mm model that will "shoot to kill."
India needs 65,000 rifles within 28 months of signing the contract and has asked global manufacturers to reply by November 7, the ministry said. India plans to issue a tender for procuring rifles in April 2017.
This is India's second attempt since 2011 to procure assault rifles for its infantry. The 2011 tenders were issued to Colt's Manufacturing Company LLC, Italy's Fabbrica d'Armi Pietro Beretta S.p.A., Swiss Sig Sauer Inc., the Czech Republic's Ceska zbrojovka and Israel Weapons Industry Ltd. But it was canceled in 2015 after the rifles offered up by the global manufacturers did not meet the multi-caliber requirements of the army.
Procurement Delays
Apart from assault rifles, the army also sought to buy light automatic rifles and machine guns, as well as sniper rifles. Initially, it planned to buy 43,000 carbines off the shelf from international companies and build 120,000 others at ordnance factories in India.
But a tender issued four years ago to buy the carbines was canceled earlier this month over procedural issues, according to a senior army officer who asked not to be identified discussing information that is private.
The rifle procurement is part of the army's efforts to modernize personnel equipment, including body armor and helmets. It needs over 350,000 bullet-proof vests, and earlier this year decided to buy 50,000 units of body armor to meet emergency requirements. The army has also inched closer to procuring 150,000 lightweight helmets.
Delays in procuring basic equipment should concern policy makers as infantry troops take on the brunt of India's current operations, according to Srinath Raghavan, a former infantry officer and senior fellow at New Delhi's Centre for Policy Research.
The "Make in India" program, where foreign firms team up with local ones, is helping to address that, he said. But there were still tensions between the army's urgent requirements for modern equipment and the slow pace of defense sector joint ventures, meaning at least some equipment must be bought "off the shelf".
"The fact that you can't even design your own small arms system reflects very poorly on the military ecosystem in India," he said. "The military innovation cycle is dysfunctional and broken down and it should be a matter of huge concern."
The 1.3 million-strong military is abandoning its two decade-old Indian made rifles and seeking to outfit its infantry with more up-to-date equipment, scouting for a new model on the global market for 185,000 assault rifles. The Ministry of Defence also needs to buy hundreds of thousands of helmets and tens of thousands of bullet proof vests.
Plans to buy new equipment from overseas, however, have been held back by bureaucratic delays and the military's desire to balance the needs of troops against efforts to have equipment built domestically under Modi's " Make in India" program, a key plank in his drive to boost local manufacturing.
"It's encouraging that they're going ahead with this, but it's discouraging that it's not made under 'Make in India,' " said Anit Mukherjee, a former major in the Indian Army and assistant professor at Singapore's S. Rajaratnam School of International Studies. "The fact that it took 10 years for Indians to go ahead and say, 'we're importing' means the bureaucracy is still holding back modernization of the armed forces. That's problematic."
Local Rifles
The army currently uses the INSAS, or Indian Small Arms System, rifle, introduced in the late 1990s and built by the state-owned Ordnance Factory. Yet the Indian and Nepalese soldiers issued with the guns complained the 5.56mm rifles were unreliable, prompting the ministry to go to the global market for their replacement.
To identify possible vendors, the ministry last month issued a request for information. It said it wants a larger, more deadly 7.62mm model that will "shoot to kill."
India needs 65,000 rifles within 28 months of signing the contract and has asked global manufacturers to reply by November 7, the ministry said. India plans to issue a tender for procuring rifles in April 2017.
This is India's second attempt since 2011 to procure assault rifles for its infantry. The 2011 tenders were issued to Colt's Manufacturing Company LLC, Italy's Fabbrica d'Armi Pietro Beretta S.p.A., Swiss Sig Sauer Inc., the Czech Republic's Ceska zbrojovka and Israel Weapons Industry Ltd. But it was canceled in 2015 after the rifles offered up by the global manufacturers did not meet the multi-caliber requirements of the army.
Procurement Delays
Apart from assault rifles, the army also sought to buy light automatic rifles and machine guns, as well as sniper rifles. Initially, it planned to buy 43,000 carbines off the shelf from international companies and build 120,000 others at ordnance factories in India.
But a tender issued four years ago to buy the carbines was canceled earlier this month over procedural issues, according to a senior army officer who asked not to be identified discussing information that is private.
The rifle procurement is part of the army's efforts to modernize personnel equipment, including body armor and helmets. It needs over 350,000 bullet-proof vests, and earlier this year decided to buy 50,000 units of body armor to meet emergency requirements. The army has also inched closer to procuring 150,000 lightweight helmets.
Delays in procuring basic equipment should concern policy makers as infantry troops take on the brunt of India's current operations, according to Srinath Raghavan, a former infantry officer and senior fellow at New Delhi's Centre for Policy Research.
The "Make in India" program, where foreign firms team up with local ones, is helping to address that, he said. But there were still tensions between the army's urgent requirements for modern equipment and the slow pace of defense sector joint ventures, meaning at least some equipment must be bought "off the shelf".
"The fact that you can't even design your own small arms system reflects very poorly on the military ecosystem in India," he said. "The military innovation cycle is dysfunctional and broken down and it should be a matter of huge concern."
Business Affairs
How a scooter on a rainy day turned into Ratan Tata's dream project Nano
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On a rainy day in November 2003, Tata Sons Chairman Ratan Tata noticed a family of four on a scooter - the father driving it with a young kid standing in the front, behind the handlebars and wife sitting behind him with another child on her lap.
Ratan Tata was moved by this incident and asked himself whether one could conceive of a safe, affordable, all weather form of transport for such a family. And after four years, Ratan Tata turned his dream into reality with the launch of Nano -People's car- in Delhi.
"Today's story started some years ago when I observed families riding on two wheelers, the father driving a scooter, his young kid standing in front of him, his wife sitting behind him holding a baby and I asked myself whether one could conceive of a safe, affordable, all weather form of transport for such a family," Tata said while unveiling Nano in New Delhi.
He said, "This is been referred to as one man's dream and indeed it was."
"This singular observation sparked several provocative questions about the possibility of creating an affordable "people's car". The two-wheeler observation [with the family of four piled on the scooter] got me thinking that we needed to create a safer form of transport," Tata was quoted as saying in The Innovator's DNA - a book written by Jeff Dyer, Hal Gregersen, Clayton Christensen.
Former Tata Sons Chairman Cyrus Mistry on Tuesday called Ratan Tata's brainchild Nano a loss-making project. He also said that any turnaround strategy for Tata Motors required it to shut it down, but was not done due to emotional reasons.
"The Nano product development required concept called for a car below Rs 1 lakh but the cost were always above this. This product has consistently lost money, peaking at Rs 1,000 crore," Mistry wrote in his five-page email written a day after he was sacked as the Chairman of Tata Sons.
Back in January 2008, Ratan Tata made a statement saying that he was aware of a very steep increase in input prices of steel, tyres and various sundry inputs that could lead to increase in final price of the car. However, he went ahead with the initial price of Rs 1 lakh because it was a promise he had made to the people.
"Since we commenced this exercise four years ago, we are all aware that there has been a very steep increase in input prices of steel, tires and various sundry inputs. Bearing all this in mind, I would like to announce today that the standard car will in fact have a dealer price of 1 Lakh only, VAT and transport being extra. Now having said that, I just want to say that that is because a promise is a promise and that's what we would like to leave you with," Tata had said.
Tata lived upto his promise but Nano couldn't. In fact, the sales number was so disappointing that against the installed capacity of 2,50,000 cars per annum, the car factory at Sanand produced only 42,561 cars in two-year period between January 2014 to December 2015.
Nano sales have been dwindling since 2011-12, when it sold 74,521 cars but the sales plunged to 53,847 cars in 2012-13, followed by 21,130 cars sold in 2013-14 and 16,903 cars in 2014-15.
Earlier in 2014, Tata attempted to reposition the brand from a cheap microcar to a 'smart city car' with the launch of Nano Twist but again it didn't work out for the project.
Despite Tata's several attempts to revive the Nano project, including the GenX which had automatic transmission, the sales never took off.
Ever since Mistry called Nano a loss-making project, many have strated questioning the Tata's decision to continue with the production.
However, Maruti Suzuki India Chairman RC Bhargava backed Ratan Tata for his attempts to offer an affordable cars to the masses.
"The intention was a good intention and Tatas tried to fulfil that intention. Anyway we could not have done it. I think he needs credit for having attempted it," DNA quoted Bhargava as saying.
On a rainy day in November 2003, Tata Sons Chairman Ratan Tata noticed a family of four on a scooter - the father driving it with a young kid standing in the front, behind the handlebars and wife sitting behind him with another child on her lap.
Ratan Tata was moved by this incident and asked himself whether one could conceive of a safe, affordable, all weather form of transport for such a family. And after four years, Ratan Tata turned his dream into reality with the launch of Nano -People's car- in Delhi.
"Today's story started some years ago when I observed families riding on two wheelers, the father driving a scooter, his young kid standing in front of him, his wife sitting behind him holding a baby and I asked myself whether one could conceive of a safe, affordable, all weather form of transport for such a family," Tata said while unveiling Nano in New Delhi.
He said, "This is been referred to as one man's dream and indeed it was."
"This singular observation sparked several provocative questions about the possibility of creating an affordable "people's car". The two-wheeler observation [with the family of four piled on the scooter] got me thinking that we needed to create a safer form of transport," Tata was quoted as saying in The Innovator's DNA - a book written by Jeff Dyer, Hal Gregersen, Clayton Christensen.
Former Tata Sons Chairman Cyrus Mistry on Tuesday called Ratan Tata's brainchild Nano a loss-making project. He also said that any turnaround strategy for Tata Motors required it to shut it down, but was not done due to emotional reasons.
"The Nano product development required concept called for a car below Rs 1 lakh but the cost were always above this. This product has consistently lost money, peaking at Rs 1,000 crore," Mistry wrote in his five-page email written a day after he was sacked as the Chairman of Tata Sons.
Back in January 2008, Ratan Tata made a statement saying that he was aware of a very steep increase in input prices of steel, tyres and various sundry inputs that could lead to increase in final price of the car. However, he went ahead with the initial price of Rs 1 lakh because it was a promise he had made to the people.
"Since we commenced this exercise four years ago, we are all aware that there has been a very steep increase in input prices of steel, tires and various sundry inputs. Bearing all this in mind, I would like to announce today that the standard car will in fact have a dealer price of 1 Lakh only, VAT and transport being extra. Now having said that, I just want to say that that is because a promise is a promise and that's what we would like to leave you with," Tata had said.
Tata lived upto his promise but Nano couldn't. In fact, the sales number was so disappointing that against the installed capacity of 2,50,000 cars per annum, the car factory at Sanand produced only 42,561 cars in two-year period between January 2014 to December 2015.
Nano sales have been dwindling since 2011-12, when it sold 74,521 cars but the sales plunged to 53,847 cars in 2012-13, followed by 21,130 cars sold in 2013-14 and 16,903 cars in 2014-15.
Earlier in 2014, Tata attempted to reposition the brand from a cheap microcar to a 'smart city car' with the launch of Nano Twist but again it didn't work out for the project.
Despite Tata's several attempts to revive the Nano project, including the GenX which had automatic transmission, the sales never took off.
Ever since Mistry called Nano a loss-making project, many have strated questioning the Tata's decision to continue with the production.
However, Maruti Suzuki India Chairman RC Bhargava backed Ratan Tata for his attempts to offer an affordable cars to the masses.
"The intention was a good intention and Tatas tried to fulfil that intention. Anyway we could not have done it. I think he needs credit for having attempted it," DNA quoted Bhargava as saying.
Struggling Indian savers threaten Narendra Modi's growth ambition
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For India's dream of taking the baton of global growth from China, its savings rate is flashing a warning sign.
Gross national savings as a per cent of the South Asian nation's gross domestic product will slip this year to 30.2 per cent, the lowest since 2003, and fall further over the next two years, the International Monetary Fund forecasts.
Since companies use domestic savings to fund their capital spending, the fall would increase their vulnerability to external risks - such as uncertainty over the US presidential election or the prospect of monetary tightening there - that could staunch the flow of cheap investment dollars to emerging markets such as India.
It's a worry for Prime Minister Narendra Modi who aspires to achieve economic growth rates of 8-9 per cent - much higher than the current 7.1 per cent - not only to replicate China's growth miracle but also to create jobs for the one million people who join India's workforce every month.
Nearly two-thirds of India's 1.3 billion people are under 35 years old. But to fully harness the biggest youth bulge the world has ever seen, economists say its saving rate needs to be around 35 per cent.
"Raising the savings rate is one of the main pre-conditions for India's long-term sustainable growth," said Hanna Luchnikava-Schorsch, senior economist for Asia Pacific at IHS Markit.
The tiger economies of China and East Asia realised their economic potential by keeping their savings rates above 30 per cent for decades.
But India's economic travails stem from flagging investment, which as a proportion of GDP fell by about 3 percentage points to 29.6 percent of GDP in the June quarter from a year ago.
Its infrastructure development has failed to keep up with the increasing needs of the economy. The World Bank estimates that Asia's third-largest economy needs up to $1.7 trillion to close its infrastructure gap.
The Siege
Households are the main source of savings in India, but years of high inflation, weak job creation, sluggish growth in incomes and two successive droughts have left their finances under siege.
Take Manohar Lal, a 50-year-old marketing manager at an electric cable company in New Delhi, who is struggling to pay for his kids' education and mother's medical bills on his monthly income of $1,120.
While his salary has grown by an average 8 percent in the past three years, Lal's spending on tuition fees and medicines have shot up by nearly 40 percent, leaving him with little to save for his retirement.
Pressing him further is India's bid to stimulate consumption through low interest rates. As inflation has fallen in recent years, the Reserve Bank of India has cut its official rates by 175 basis points - and banks have cut deposit rates accordingly.
"In all, I am saving barely a fourth of what I used to," Lal said. "The way things are, I would be lucky if I just manage to provide a quality education to both the kids."
To get by, Lal has cut down spending on movies and clothing. Dining out has become a "luxury" for his family, Lal said.
Government officials say the savings rate should bottom out of its own accord thanks to an expected improvement in rural incomes after a good monsoon, better corporate profits and, most importantly, a sharp moderation in retail inflation.
SAVERS VS BORROWERS
The slide also poses a dilemma for the RBI, which is widely expected to respond to a decline in inflation to 4.3 percent with further cuts in its 6.25 percent policy rate.
Former RBI chief Raghuram Rajan advocated maintaining a real interest rate of 1.5-2 percentage points to protect savers. Still, Rajan said small savers would send him heart-rending letters, complaining about cuts in retail deposit rates.
Following his recent departure, the central bank lowered its real interest rate target - or the margin by which its policy rate exceeds inflation - to 1.25 percent.
With the new regime at the RBI under Governor Urjit Patel sounding dovish, the odds are high the target would come down further.
Globally interest rates are on a downward trajectory, with some central banks in the developed world using negative rates to boost consumption.
"If you continue to compress real rates, savings will fall and dependence on capital inflows will rise, which can get risky if oil prices abruptly shoot up," said Sonal Varma, Chief India Economist at Nomura.
A search for higher yields by India's small savers has reduced growth in bank deposits to its lowest level in 53 years. Cash held by households has, meanwhile, surged 40 percent from last year to $266 billion.
Low returns on bank deposits are also goading some like Madhav Narayan to resort to riskier ways to augment their incomes.
The 45-year-old school teacher in New Delhi lends a part of his $745 monthly salary in unsecured short-term loans. The return he makes is twice the rates on bank deposits, but he also runs a greater risk of losing money.
"The government, the RBI - no one cares for common people like us," Narayan said. "You have no option but to fend for yourself."
For India's dream of taking the baton of global growth from China, its savings rate is flashing a warning sign.
Gross national savings as a per cent of the South Asian nation's gross domestic product will slip this year to 30.2 per cent, the lowest since 2003, and fall further over the next two years, the International Monetary Fund forecasts.
Since companies use domestic savings to fund their capital spending, the fall would increase their vulnerability to external risks - such as uncertainty over the US presidential election or the prospect of monetary tightening there - that could staunch the flow of cheap investment dollars to emerging markets such as India.
It's a worry for Prime Minister Narendra Modi who aspires to achieve economic growth rates of 8-9 per cent - much higher than the current 7.1 per cent - not only to replicate China's growth miracle but also to create jobs for the one million people who join India's workforce every month.
Nearly two-thirds of India's 1.3 billion people are under 35 years old. But to fully harness the biggest youth bulge the world has ever seen, economists say its saving rate needs to be around 35 per cent.
"Raising the savings rate is one of the main pre-conditions for India's long-term sustainable growth," said Hanna Luchnikava-Schorsch, senior economist for Asia Pacific at IHS Markit.
The tiger economies of China and East Asia realised their economic potential by keeping their savings rates above 30 per cent for decades.
But India's economic travails stem from flagging investment, which as a proportion of GDP fell by about 3 percentage points to 29.6 percent of GDP in the June quarter from a year ago.
Its infrastructure development has failed to keep up with the increasing needs of the economy. The World Bank estimates that Asia's third-largest economy needs up to $1.7 trillion to close its infrastructure gap.
The Siege
Households are the main source of savings in India, but years of high inflation, weak job creation, sluggish growth in incomes and two successive droughts have left their finances under siege.
Take Manohar Lal, a 50-year-old marketing manager at an electric cable company in New Delhi, who is struggling to pay for his kids' education and mother's medical bills on his monthly income of $1,120.
While his salary has grown by an average 8 percent in the past three years, Lal's spending on tuition fees and medicines have shot up by nearly 40 percent, leaving him with little to save for his retirement.
Pressing him further is India's bid to stimulate consumption through low interest rates. As inflation has fallen in recent years, the Reserve Bank of India has cut its official rates by 175 basis points - and banks have cut deposit rates accordingly.
"In all, I am saving barely a fourth of what I used to," Lal said. "The way things are, I would be lucky if I just manage to provide a quality education to both the kids."
To get by, Lal has cut down spending on movies and clothing. Dining out has become a "luxury" for his family, Lal said.
Government officials say the savings rate should bottom out of its own accord thanks to an expected improvement in rural incomes after a good monsoon, better corporate profits and, most importantly, a sharp moderation in retail inflation.
SAVERS VS BORROWERS
The slide also poses a dilemma for the RBI, which is widely expected to respond to a decline in inflation to 4.3 percent with further cuts in its 6.25 percent policy rate.
The slide also poses a dilemma for the RBI, which is widely expected to respond to a decline in inflation to 4.3 percent with further cuts in its 6.25 percent policy rate.
Former RBI chief Raghuram Rajan advocated maintaining a real interest rate of 1.5-2 percentage points to protect savers. Still, Rajan said small savers would send him heart-rending letters, complaining about cuts in retail deposit rates.
Following his recent departure, the central bank lowered its real interest rate target - or the margin by which its policy rate exceeds inflation - to 1.25 percent.
With the new regime at the RBI under Governor Urjit Patel sounding dovish, the odds are high the target would come down further.
Globally interest rates are on a downward trajectory, with some central banks in the developed world using negative rates to boost consumption.
"If you continue to compress real rates, savings will fall and dependence on capital inflows will rise, which can get risky if oil prices abruptly shoot up," said Sonal Varma, Chief India Economist at Nomura.
A search for higher yields by India's small savers has reduced growth in bank deposits to its lowest level in 53 years. Cash held by households has, meanwhile, surged 40 percent from last year to $266 billion.
Low returns on bank deposits are also goading some like Madhav Narayan to resort to riskier ways to augment their incomes.
The 45-year-old school teacher in New Delhi lends a part of his $745 monthly salary in unsecured short-term loans. The return he makes is twice the rates on bank deposits, but he also runs a greater risk of losing money.
"The government, the RBI - no one cares for common people like us," Narayan said. "You have no option but to fend for yourself."
Dhanteras buying fails to lift gold price, falls Rs 110
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Gold prices drifted lower by Rs 110 to Rs 30,590 per 10 gram at the bullion market in New Delhi despite token buying by jewellers and retailers on the occasion of 'Dhanteras' today.
A weak trend in the precious metals overseas mainly led to the fall in gold prices, bullion traders said.
Silver, however, managed to close steady at Rs 42,700 per kg on scattered demand from coin makers ahead of the Diwali festival. Dhanteras is considered to be an auspicious day for buying gold, silver and other valuables and is largely celebrated in North and West India.
Despite buying support from jewellers for the auspicious festival of Dhanteras, gold failed to glitter largely due to a weak trend in global market. Globally, gold fell 0.17 per cent to trade at $1,265.90 an ounce in Singapore, while silver shed 0.34 per cent to $17.53 an ounce.
Back home, gold 99.9 and 99.5 per cent purity fell by Rs 110 each to Rs 30,590 and Rs 30,440 per 10 gram, respectively. Sovereign, however, continued to be enquired at Rs 24,500 per piece of 8 grams.
In futures trading, gold for delivery in December too was down by Rs 46, or 0.15 per cent at Rs 29,881 per 10 gram. On the other hand, silver ready in restricted activity held steady at Rs 42,700 per kg, while weekly-based delivery was down Rs 15 at Rs 42,170 per kg.
Silver coins remained unaltered at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces on some support. Gold prices have gone up by Rs 4,360, or 16.6 per cent, while silver has spurted by Rs 7,290, or 20.58 per cent from last year's Dhanteras.
Gold prices drifted lower by Rs 110 to Rs 30,590 per 10 gram at the bullion market in New Delhi despite token buying by jewellers and retailers on the occasion of 'Dhanteras' today.
A weak trend in the precious metals overseas mainly led to the fall in gold prices, bullion traders said.
Silver, however, managed to close steady at Rs 42,700 per kg on scattered demand from coin makers ahead of the Diwali festival. Dhanteras is considered to be an auspicious day for buying gold, silver and other valuables and is largely celebrated in North and West India.
Despite buying support from jewellers for the auspicious festival of Dhanteras, gold failed to glitter largely due to a weak trend in global market. Globally, gold fell 0.17 per cent to trade at $1,265.90 an ounce in Singapore, while silver shed 0.34 per cent to $17.53 an ounce.
Back home, gold 99.9 and 99.5 per cent purity fell by Rs 110 each to Rs 30,590 and Rs 30,440 per 10 gram, respectively. Sovereign, however, continued to be enquired at Rs 24,500 per piece of 8 grams.
In futures trading, gold for delivery in December too was down by Rs 46, or 0.15 per cent at Rs 29,881 per 10 gram. On the other hand, silver ready in restricted activity held steady at Rs 42,700 per kg, while weekly-based delivery was down Rs 15 at Rs 42,170 per kg.
Silver coins remained unaltered at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces on some support. Gold prices have gone up by Rs 4,360, or 16.6 per cent, while silver has spurted by Rs 7,290, or 20.58 per cent from last year's Dhanteras.
Govt's $20 billion refinery expansion to cut fuel oil output
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India may turn into a net importer of fuel oil as its state-owned refiners are making multi-billion dollar investments to upgrade their refineries and produce more profitable refined products such as gasoline or diesel.
India has traditionally been a net exporter of fuel oil, the residue oil left after initial crude refining that is typically used in shipping and power generation.
That is about to change. Three state-run energy firms -- Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum -- plan to spend $20 billion on refinery expansions to add units by 2022 that would process fuel oil into gasoline and diesel, boosting their output to meet growing local demand for transport fuels.
"Our fuel oil production will be less because everywhere we are going for residue upgrades," said B. Ashok, Chairman of the country's biggest refiner Indian Oil Corp (IOC).
Private refiners Reliance Industries and Essar Oil have already invested heavily to build advanced refineries which produce gasoline at the expense of fuel oil.
With state refiners now doing the same, India will soon have to sharply raise imports of fuel oil, two traders that participate in the market said.
India's net fuel oil exports averaged 109,000 tonnes from April to September, according to the country's Petroleum Planning and Analysis Cell, and the traders estimate this could flip into a need to raise fuel oil imports as early as late 2017.
As a result, the price difference between diesel and fuel oil could narrow further from its current $17.61 a barrel, as Indian shipping fuel demand rises with the government's thrust on the coastal movement of cargoes, considered more cost efficient than road transport.
"Already, gasoil and fuel oil differentials have started shrinking from about $30 three years ago to $16-$18 now and it is likely to narrow further as refiners are destroying fuel oil to produce gasoil and gasoline," said S. Thangapandian, director at Gulf Petrochem.
Indian refiners' expansion plans almost coincide with changing shipping fuel norms from 2020 requiring the use of low-sulphur fuels.
IOC is the biggest expansion investor, planning to spend 500 billion rupees ($7.48 billion) by 2022 to raise its refining capacity by about 30 percent to 2.08 million barrels per day (bpd) including expanding its Panipat refinery in northern India to about 400,000 to 500,000 bpd.
HPCL and BPCL plan to spend $11.25 billion to expand refineries and install fuel oil upgrading units, halting fuel oil output in almost all plants.
India may turn into a net importer of fuel oil as its state-owned refiners are making multi-billion dollar investments to upgrade their refineries and produce more profitable refined products such as gasoline or diesel.
India has traditionally been a net exporter of fuel oil, the residue oil left after initial crude refining that is typically used in shipping and power generation.
That is about to change. Three state-run energy firms -- Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum -- plan to spend $20 billion on refinery expansions to add units by 2022 that would process fuel oil into gasoline and diesel, boosting their output to meet growing local demand for transport fuels.
"Our fuel oil production will be less because everywhere we are going for residue upgrades," said B. Ashok, Chairman of the country's biggest refiner Indian Oil Corp (IOC).
Private refiners Reliance Industries and Essar Oil have already invested heavily to build advanced refineries which produce gasoline at the expense of fuel oil.
With state refiners now doing the same, India will soon have to sharply raise imports of fuel oil, two traders that participate in the market said.
India's net fuel oil exports averaged 109,000 tonnes from April to September, according to the country's Petroleum Planning and Analysis Cell, and the traders estimate this could flip into a need to raise fuel oil imports as early as late 2017.
As a result, the price difference between diesel and fuel oil could narrow further from its current $17.61 a barrel, as Indian shipping fuel demand rises with the government's thrust on the coastal movement of cargoes, considered more cost efficient than road transport.
"Already, gasoil and fuel oil differentials have started shrinking from about $30 three years ago to $16-$18 now and it is likely to narrow further as refiners are destroying fuel oil to produce gasoil and gasoline," said S. Thangapandian, director at Gulf Petrochem.
Indian refiners' expansion plans almost coincide with changing shipping fuel norms from 2020 requiring the use of low-sulphur fuels.
IOC is the biggest expansion investor, planning to spend 500 billion rupees ($7.48 billion) by 2022 to raise its refining capacity by about 30 percent to 2.08 million barrels per day (bpd) including expanding its Panipat refinery in northern India to about 400,000 to 500,000 bpd.
HPCL and BPCL plan to spend $11.25 billion to expand refineries and install fuel oil upgrading units, halting fuel oil output in almost all plants.
Bajaj Auto net profit rises 7.2 per cent in Q2
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Bajaj Auto on Friday reported a 7.2 per cent rise in consolidated net profit at Rs 1,200.72 crore for the second quarter ended September 30.
The company had posted a consolidated net profit of Rs 1,120.04 crore in the same quarter of last fiscal.
Total income from operations during the quarter under review was marginally up at Rs 6,432.32 crore as against Rs 6,407.54 crore.
Unit volume sales during the quarter were at 10,31,945 units as against 10,56,596 units in the year-ago period, down 2.33 per cent.
The company said its domestic motorcycle sales in the second quarter were at 5,79,545 units compared to 4,69,330 units in the same period last fiscal, up 23.33 per cent.
Bajaj Auto said due to headwinds in international markets, total exports were down at 3,78,017 units as compared to 5,20,149 units in the corresponding period last year, down 27.32 per cent.
Shares of Bajaj Auto were trading 0.96 per cent up at Rs 2,791 on BSE.
Bajaj Auto on Friday reported a 7.2 per cent rise in consolidated net profit at Rs 1,200.72 crore for the second quarter ended September 30.
The company had posted a consolidated net profit of Rs 1,120.04 crore in the same quarter of last fiscal.
Total income from operations during the quarter under review was marginally up at Rs 6,432.32 crore as against Rs 6,407.54 crore.
Unit volume sales during the quarter were at 10,31,945 units as against 10,56,596 units in the year-ago period, down 2.33 per cent.
The company said its domestic motorcycle sales in the second quarter were at 5,79,545 units compared to 4,69,330 units in the same period last fiscal, up 23.33 per cent.
Bajaj Auto said due to headwinds in international markets, total exports were down at 3,78,017 units as compared to 5,20,149 units in the corresponding period last year, down 27.32 per cent.
Shares of Bajaj Auto were trading 0.96 per cent up at Rs 2,791 on BSE.
General Awareness
UP Government confers Yash Bharti award to 54 people
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The Government of Uttar Pradesh announced the names of 54 eminent personalities who have been selected for the award in recognition of their contributions in their respective field.
About the Award,
Uttar Pradesh’s highest honour Yash Bharti award will be given to 54 personalities. Among them, nine Muslims were conferred the award by Chief Minister Akhilesh Yadav in presence of Mulayam Singh Yadav. The award is given annually by Culture Department of UP government.
Yash Bharti comes with a cash prize of Rs 11 lakh, citation and a shawl. The awardees are also eligible for a monthly pension of Rs 50,000 for their life.
Yash Bharti award were constituted in 1994 by the then CM Mulayam Singh Yadav but were discontinued between 2007 and 2012 by Mayawati. It has since been revived by CM Akhilesh Yadav.
About the Awardees,
- Leading cardiologist Dr Naresh Trehan, historian Irfan Habib and personalities from entertainment world like Sudhir Misra, Anurag Kashyap and Vishal Bhardwaj will be among 54 achievers to be presented Yash Bharti Award by Chief Minister Akhilesh Yadav at a function at Ram Manohar Lohiya National Law University on Monday.
- Samajwadi Party chief and MP Mulayam Singh Yadav and culture minister Aruna Kori will also be present at the function. The CM will also give away the Ahilyabai Holkar award to lyricist Sameer Anjaan and Anjali Misra.
- Mountaineer Arunima Sinha and IPS Aparna Kumar, ghazal singer Iqbal Siddiqui, poet Ashok Chakradhar, singer Surbhi Ranjan hockey player Jagvir Singh, Kathak artist Kumkum Adarsh and young playback singer Ankit Tewari will also be presented the Yash Bharti award.
- Bhojpuri actor Dinesh Lal Nirhua and standup comedian Raju Srivastava will be awarded for their contribution towards films and entertainment along with Urdu poet Nawaz Deobandi.
- The list includes names of folk artist Kamla Srivastava, Narendra Singh Rana (power lifting), cricketer R P Singh, King George’s Medical University vice chancellor Dr Ravi Kant and Sthavi Asthana for equestrianism.
- One of the highest state-level awards conferred for excellence in literature, fine arts, classical music, folk music and sports, Yash Bharti award was instituted by SP chief Mulayam Singh Yadav during his tenure as Chief Minister in 1994. It was, however, discontinued during BJP and BSP regimes.
- It is noted that after the Samajwadi Party came to power in 2013, CM Akhilesh Yadav revived the award with a hike in prize money from Rs 5 lakh to Rs 11 lakh.
- Noted film personality and an alumnus of the Aligarh Muslim University, Naseeruddin Shah has been selected for the prestigious Yash Bharti Samman, for the year 2016-17, for his contributions and achievements in the field of film acting. Shah is also the younger brother of the Vice Chancellor of the Aligarh Muslim University, Lt. Gen. Zameer Uddin Shah
The Government of Uttar Pradesh announced the names of 54 eminent personalities who have been selected for the award in recognition of their contributions in their respective field.
About the Award,
Uttar Pradesh’s highest honour Yash Bharti award will be given to 54 personalities. Among them, nine Muslims were conferred the award by Chief Minister Akhilesh Yadav in presence of Mulayam Singh Yadav. The award is given annually by Culture Department of UP government.
Yash Bharti comes with a cash prize of Rs 11 lakh, citation and a shawl. The awardees are also eligible for a monthly pension of Rs 50,000 for their life.
Yash Bharti award were constituted in 1994 by the then CM Mulayam Singh Yadav but were discontinued between 2007 and 2012 by Mayawati. It has since been revived by CM Akhilesh Yadav.
About the Awardees,
- Leading cardiologist Dr Naresh Trehan, historian Irfan Habib and personalities from entertainment world like Sudhir Misra, Anurag Kashyap and Vishal Bhardwaj will be among 54 achievers to be presented Yash Bharti Award by Chief Minister Akhilesh Yadav at a function at Ram Manohar Lohiya National Law University on Monday.
- Samajwadi Party chief and MP Mulayam Singh Yadav and culture minister Aruna Kori will also be present at the function. The CM will also give away the Ahilyabai Holkar award to lyricist Sameer Anjaan and Anjali Misra.
- Mountaineer Arunima Sinha and IPS Aparna Kumar, ghazal singer Iqbal Siddiqui, poet Ashok Chakradhar, singer Surbhi Ranjan hockey player Jagvir Singh, Kathak artist Kumkum Adarsh and young playback singer Ankit Tewari will also be presented the Yash Bharti award.
- Bhojpuri actor Dinesh Lal Nirhua and standup comedian Raju Srivastava will be awarded for their contribution towards films and entertainment along with Urdu poet Nawaz Deobandi.
- The list includes names of folk artist Kamla Srivastava, Narendra Singh Rana (power lifting), cricketer R P Singh, King George’s Medical University vice chancellor Dr Ravi Kant and Sthavi Asthana for equestrianism.
- One of the highest state-level awards conferred for excellence in literature, fine arts, classical music, folk music and sports, Yash Bharti award was instituted by SP chief Mulayam Singh Yadav during his tenure as Chief Minister in 1994. It was, however, discontinued during BJP and BSP regimes.
- It is noted that after the Samajwadi Party came to power in 2013, CM Akhilesh Yadav revived the award with a hike in prize money from Rs 5 lakh to Rs 11 lakh.
- Noted film personality and an alumnus of the Aligarh Muslim University, Naseeruddin Shah has been selected for the prestigious Yash Bharti Samman, for the year 2016-17, for his contributions and achievements in the field of film acting. Shah is also the younger brother of the Vice Chancellor of the Aligarh Muslim University, Lt. Gen. Zameer Uddin Shah
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