Friday 30 October 2015

S H Kelkar's IPO fully subscribed

HNI category has got 1.14 times subscribed and the retail quota was subscribed 42%

SH Kelkar & Company has received full subscription from its Rs 500-crore Initial Public Offering (IPO), which closes on Friday. IPO is the act of selling shares in a company for the first time.

SH Kelkar Listing Date: The Mumbai-based firm has so far received 22.3 million bids for the 20.2-million shares on offer in the IPO. The qualified institutional buyer category quota got subscribed 2.25 times. Wealthy or high net worth individual quota was subscribed 1.14 times. The retail quota was subscribed 42 per cent.

SH Kelkar Allotment Date: SH Kelkar has set a price band of Rs 173-180 apiece for its IPO. On Tuesday, the company had raised Rs 150 crore from 13 anchor investors, including T Rowe Price, ICICI Prudential Mutual Fund, and Axis Mutual Fund.

S H Kelkar's IPO fully subscribed
S H Kelkar's IPO fully subscribed

Mumbai-based fragrance manufacturer SH Kelkar’s Initial Public Offering (IPO) was subscribed 42 per cent on day one, on Wednesday. The 20.2-million share offering has so far received 8.4 million bids. SH Kelhar is looking to raise a little over  Rs 500 crore from its IPO, to close on Friday. The company has priced its IPOin the range of Rs 173 to Rs 180 per share.

JM Financial, Kotak Mahindra Capital, and Keynote Capital are handling the IPO.
Article Source: Business Standard

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IndiGo IPO flies mostly on global wings

70% of bids from foreign investors; share offering lapped up six times; retail quota under-subscribed

Pankaj Madan, CFO, Aditya Ghosh, President and Whole-time Director, InterGlobe Aviation Limited, Aditya Ghosh, President and Executive Director of InterGlobe Aviation Limited and Sanjay Kumar, Chief Commercial Officer, InterGlobe Aviation Limited
Pankaj Madan, CFO, Aditya Ghosh, President and Whole-time Director, InterGlobe Aviation Limited, Aditya Ghosh, President and Executive Director of InterGlobe Aviation Limited and Sanjay Kumar, Chief Commercial Officer, InterGlobe Aviation Limited

The Rs 3,000-crore initial public offering (IPO) of InterGlobe Aviation, which runs IndiGo, sailed through without any turbulence, with foreign investors on board. It was subscribed a little over six times. The 30-million share offering saw nearly 185 million bids, worth about Rs 14,000 crore. About 70 per cent of the offering, or 127 million bids, came from foreign institutional investors (FIIs).

IndiGo Listing Date: Global investors scrambled to buy InterGlobe shares, hoping India’s air travel penetration would increase through the next few years. As of now, the penetration level is only 0.08 annual domestic seats per capita, against penetration rates of 0.35-0.6 in other developing markets such as Brazil, Turkey, Indonesia and China, according to Angel Broking.

IndiGo Allotment Date: IndiGo operates in the lucrative low-cost carrier (LCC) segment. On listing, the airline would be one of the world’s leading LCCs in terms of market value.
The qualified institutional buyer segment, which includes institutional investors such as FIIs, mutual funds and insurance companies, was subscribed 17.8 times. The non-institutional investor category was subscribed 3.6 times.

IndiGo IPO flies mostly on global wings The retail investor category — those investing less than Rs 2 lakh — was subscribed only 92 per cent. Around 45 per cent of the IPO was reserved for retail investors, while seven per cent of the issue was reserved for InterGlobe employees.

Despite a 10 per cent discount on offer, the employee quota was subscribed nearly 13 per cent. The undersubscribed shares meant for the retail category, as well as employees, will be distributed among other investor segments, which saw high subscription.
Experts said the retail investor portion received a lukewarm response, owing to concern over valuations. Most domestic brokerages had termed the IPO pricing expensive; grey market activity, too, suggested marginal listing day gains.

For the IPO, InterGlobe had set a price band of Rs 700-765 a share. Given the heavy demand, the IPO is likely to be priced at the top end of the band. That will value the company at about Rs 27,500 crore. At Rs 765 a share, InterGlobe’s market value will be six times that of Jet Airways and 10 times that of SpiceJet.

Though most analysts had hailed IndiGo’s operational efficiencies, they felt the pricing had left little on the table for investors. “While we appreciate Indigo’s efficient operations and management capability to deliver profitable growth in a sector where few have succeeded globally, we find valuations expensive. At 10.2 times the FY15 EV (enterprise value)/Ebitdar (earnings before interest, tax, depreciation, amortisation and rent), at the higher end of the peer sector range, the proposed issue price fully factors profits on aircraft trading and lower than the sector’s aircraft maintenance costs in perpetuity, plus the benefits of lower crude prices and mid-teen volume growth through the next 10 years,” domestic brokerage house Ambit had said in a report.

"Foreign investors that applied in IndiGo have a record in being invested in other LCCs like RyanAir, Air Asia and others. So, they had a greater level of confidence, while for domestic investors, this offering was a first of its kind. That's why it was more FII-led. Still a deal of this size has seen good demand from most investors,” V Jayasankar,  head of equity capital markets, Kotak Investment Banking.

Investment bankers handling the IPO had said marquee global investors made big-ticket applications. According to reports, famed investor Rakesh Jhunjhunwala invested a significant sum. Business Standard couldn’t confirm this independently.

Citigroup Global Markets, JP Morgan, Morgan Stanley, Barclays Bank, Kotak Mahindra, UBS Securities were the investment banks that handled the IPO.

Article Source: Business Standard

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Monday 26 October 2015

IndiGo IPO: A robust business model but no discount in Indigo Airline IPO price

India's largest airline company, InterGlobe Aviation, which operates IndiGo, is seeking to raise about Rs 3,000 crore from its initial public offering (Indigo IPO). While about Rs 1,800 crore of this is an offer for sale, going to the existing shareholders, the rest is a fresh issue. At Rs 765, upper end of the band, the company is looking at a valuation of Rs 27,500 crore. The two listed aviation players, Jet Airways and SpiceJet, have a combined market cap about a fourth of this number.

IndiGo IPO: A robust business model but no discount in Indigo Airline IPO price.
IndiGo IPO: A robust business model but no discount in Indigo Airline IPO price.

Why IndiGo is asking for a higher valuation is due to a consistent record of superior operational performance, across parameters. The key differential is, of course, the way it manages costs. Costs per available seat km (CASK, measured in US cents) at 5.95 is much lower than SpiceJet's 6.68 and Jet Airways' 9.05. Excluding fuel, the single biggest cost item, its CASK at 2.87 cents is lower than GoAir and SpiceJet, the other low-cost carriers. A single aircraft type, low distribution costs and a younger fleet have helped keep down costs on operations and maintenance. Its decision to order 100 A320s in 2005 helped it negotiate favourable terms, analysts say. The sale-and-lease back arrangement helped it gain about Rs 3,500 crore.

IndiGo Airline IPO: A robust business model but no discount in IPO price Coupled with the fleet expansion and strong passenger volumes, the low CASK has helped it grow faster than the market. IndiGo's market share has increased from 14.5 per cent in FY10 to about 36 per cent with passenger volumes increasing 26 per cent. Higher volumes and load factors, along with growing revenue per passenger, has translated to 40 per cent annual growth in domestic revenues over FY10-15, while earnings before interest, taxes, depreciation, amortisation and rentals (Ebitdar) have grown 25 per cent. The company has also benefited due to the multiple challenges faced by competition (management change, high cost structure, lack of pricing discipline, etc.), which helped IndiGo move ahead.
A few favourable tailwinds will benefit the entire sector going ahead. The first is passenger volumes. The sector has been growing at about 12 per cent annually and analysts say demand would be 1.2-1.5 times gross domestic product growth which should help all players. Especially IndiGo, given its fleet strength and the fact that it is growing faster than the market. Growth in recent months has been a strong 20 per cent for the sector, with IndiGo outperforming peers. The other positive for the company is cheaper fuel costs which should boost its profits.

In FY15, the company made Ebitdar margins of 27 per cent and net margins of nine per cent as compared to 20 per cent and four per cent in FY14. Ebitdar margins, given lower fuel costs, spurted to 37 per cent in the June quarter, with net margins at 15 per cent enabling the company to report a net profit of Rs 640 crore. While the September quarter and the March quarter are not the best quarters of the year, analysts believe the company should be able to close the year at about Rs 2,400 crore in net profits.

The listed players far lag IndiGo and have a patchy net profit record; so, a comparison with the better global performers is in order. Low cost European and American carriers have their enterprise value/Ebitdar ranging between seven and eight times. While the company deserves a higher multiple given that the Indian market is growing faster, the IndiGo IPO, at about 7.6 times its FY16 EV/Ebitdar estimates, is slightly on the expensive side. Analysts say the company should have left something on the table for investors.

Article Source: Business Standard

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Friday 23 October 2015

Indigo Airlines said to launch Rs 2,500-cr IPO price in June quarter: report

The low-cost carrier, India's largest by market share, is reported to be working on a public listing in the first quarter of FY2015-16

Low-cost carrier Indigo Airlines is preparing for a public listing in the April-June 2015 quarter to raise about Rs 2,500 crore, the Times of India newspaper reported Wednesday.

Indigo Ipo date: The airline, which is India’s largest by market share, has consistently reported profits, is also expected to be profitable in the fiscal year ending March 2015.

Indigo Ipo: Indian commercial airlines have also had a reprieve of late due to all-time lows in crude prices, enabling them to save significantly on aviation fuel costs, which is the single largest operational expense. Some of the fuel savings, however, have been offset by heavily discounted tickets offered by airlines to try and increase passenger load and market share.

Indigo Airlines said to launch Rs 2,500-cr IPO price in June quarter: report
Indigo Airlines said to launch Rs 2,500-cr IPO price in June quarter: report

However, private airlines Jet Airways and SpiceJet, both of which are listed, continue to bleed money, while debt-addled Kingfisher Airlines has closed operations for close to three years now, with no signs of resuscitation by either promoter Vijay Mallya or any new investors.

indigo airlines ipo price: The operator of top Indian airline IndiGo has set the indicative price band for its initial public offering of shares at between 700 rupees ($10.83)and 765 rupees ($11.83) apiece, three sources directly involved in the transaction said.
Indian markets have been on a rise since late last year, with the BSE Sensex breaching the 29,000 mark, driven largely by expectations of reforms from the Narendra Modi-led government and two surprise interest rate cuts by the Reserve Bank of India.
Indigo has been preparing for the IPO since last year when it restructured its shareholding to become eligible for foreign direct investment (FDI), the newspaper reported.

Article SourceBusiness Standard

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Tuesday 20 October 2015

Six reasons why the BJP might win Bihar elections

Bharatiya Janata Party (BJP) president Amit Shah said at a rally in Patna on Monday that the National Democratic Alliance would win a majority of the seats that went to polls in the first two phases earlier this month in Bihar. Shah claimed the party would win 28 to 32 of the 49 seats from Bihar Election Phase-I, and 20 to 24 of the 32 seats voted for in Phase-II.

Senior BJP leaders are convinced that its alliance will surprise naysayers, just like the party did with its performance in Uttar Pradesh in the Lok Sabha elections, and then in Maharashtra, Jharkhand and Haryana Assembly polls. Indeed, they insist the party will turn in an equally splendid performance in the remaining three phases of voting in Bihar.

Voters wait in queue to cast their vote during second phase of Bihar elections at Gaya
Voters wait in queue to cast their vote during second phase of Bihar elections at Gaya

So, what explains the BJP’s confidence? Here are six reasons why the party is so gung-ho about its performance:

1) Cadre and resources: The BJP claims to have over 600,000 workers, 10 workers each for the more than 60,000 polling booths. The five-phased polling also gives it the advantage of re-deploying these workers from areas where polling is over. Its membership drive had notched up 9.6 million members in Bihar — a seventh of Bihar’s 68 million electorate. Add to this an estimated 70,000 Rashtriya Swayamsevak Sangh workers from across the country and enormous resources at the command of the alliance. This cadre strength is helping the BJP not only mobilise its voters more efficiently on polling days but more effectively spread its message to the remotest of villages. In contrast, the Grand Alliance is a rag-tag coalition with little synergy. Even Janata Dal (United) and Rashtriya Janata Dal insiders speak of workers that are liable to switch loyalties for reasons other than political commitment.

2) Haryana model and anti-Lalu vote: The BJP believes its ‘jungle raj’ campaign has struck a chord. Only the Muslims, Yadavs and Kurmis, who account for 35 per cent, are with the ‘Grand Alliance’ while the remaining 65 per cent will vote for BJP-led alliance, it believes. The BJP calls this its ‘Haryana model’, where it had succeeded in consolidating all other castes against the dominant Jats in the 2014 Assembly polls.

3) Perfect patchwork of caste alliances: BJP strategists think they have stitched together a perfect alliance of castes, with the 15 per cent upper castes supporting the BJP, eight per cent Kushwahas behind their leader — Rashtriya Loktantrik Samata Party’s Upendra Kushwaha — the evenly distributed five per cent Paswans with Ram Vilas Paswan and rest of the 10 to 11 per cent Mahadalits with former Bihar chief minister Jitan Ram Manjhi. It also estimates that the majority of the 30 per cent Extremely Backward Castes, comprising 114 castes, will also support its alliance.

4) Narendra Modi: The prime minister’s popularity is still undiminished. The large crowds that have turned up at his dozen election rallies are evidence of this. The BJP estimates the ‘Modi effect’ will help it increase its vote share in Bihar from the 38.5 per cent that its alliance received in the 2014 multi-polar Lok Sabha contest. The BJP needs a vote share of at least 43 to 44 per cent to win Bihar in what is now essentially a two-horse race. It hopes to beat the trend of failing to match its vote share of the 2014 Lok Sabha polls in subsequent state elections in Haryana, Jharkhand, Maharashtra, Jammu and Kashmir, and Delhi. Incidentally, its only defeat — drubbing, in fact — since 2014 came where its main rival was a credible non-Congress party: In Delhi against the Aam Aadmi Party in February.

5) Women voters: The high turnout of women in the first two phases is thought to be a vote for Modi’s promise of security and development.

6) Beef: The BJP thinks it has Rashtriya Janata Dal chief Lalu Prasad on the run for his remarks about eating beef, forcing the former Bihar chief minister to clarify them at each of his rallies. This, it believes, has also neutralised whatever damage the party suffered because of Rashtriya Swayamsevak Sangh chief Mohan Bhagwat’s remarks on reviewing the caste-based reservation policy.

There is hope the Left parties and Third Front alliance that the Samajwadi Party leads will eat into the votes of the Grand Alliance. The BJP has a well-oiled team of strategists that have undertaken a course correction after realising the ‘Bihar versus Bahari (or outsider) campaign of its rivals could be getting traction because it over-projected Modi and Shah. It has now put up more hoardings of its local leaders like Sushil Modi, Rajiv Pratap Rudy, Nand Kishore Yadav, Ravi Shankar Prasad, and others.

Article Source: Business Standard

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Wednesday 14 October 2015

Whirlpool India: Huge stocks, better realisation push up Whirlpool's yearly profit 71%

Whirlpool of India Ltd, the Indian subsidiary of the global appliances major, has posted Rs 55.3 crore net profit due to better realisation from its inventories in the quarter ended 31st March, 2015. During the period, the company’s net earnings surged 55% from Rs 36 crore same period last year. In the quarter, Whirlpool’s net sales grew 18% to Rs 748 crore from Rs 637 crore on a year on year basis.

Commenting on the result, Arvind Uppal, Chairman, Whirlpool of India Limited and President Asia Pacific, Whirlpool Corporation said, "We delivered strong resultsin the fouth quarter driven by both top line growth and moderation in input costs.
Whirlpool India: Huge stocks, better realisation push up Whirlpool's yearly profit 71%
Whirlpool India: Huge stocks, better realisation push up Whirlpool's yearly profit 71%

Whirlpool India Share Price - During 2014-15, Whirlpool’s net profit surged 71% to Rs 211 crore from Rs 123 crore in the previous financial year. On a yearly basis, the company’s revenue grew 16% to Rs 3,167 crore from Rs 2,726 crore. In 2014-15, while Whirlpool’s raw material costs shoot up by 20%, higher realisation from its inventory stocks from the previous year helped the company keep its total expenses at a 13% higher level.

Since the beginning the current financial year lower temperature across the country has subdued the sales of home appliances. However", Uppal seems optimistic. “The impact of unseasonal weather conditions is likely to moderate demand in semi-urban and rural areas, but we remain optimistic that growth will accelerate in the second half of the year, he said.

At the end of yesterday, the home appliances major’s stocks surged 2.26% to Rs 734.4 in BSE. Bombay Stock exchange’s benchmark 30-share index grew 0.69% to 27,837.21 points at the closing of the day.

Article Source- Business Standard

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Monday 12 October 2015

Bihar elections: First phase of Assembly poll begins in 49 constituencies

The first of five voting phases in the high-stakes Bihar election began today with voting starting at 7 a.m in 49 seats, spread over 10 districts, amid elaborate security arrangements. In this phase, a total of 1,35,72,339 voters will elect MLAs to 49 Assembly seats for which 583 candidates, including 54 women, are in the fray.

The polling will be held between 7 a.m and 3 p.m in nine constituencies - Tarapur, Jamalpur, Suryagraha, Rajauli (SC), Govindpur, Sikandara (SC), Jamui, Jhajha and Chakai. In four constituencies - Alauli (SC), Beldaur, Katoria (ST), Belhar - voting will end at 4 p.m. The polling for the remaining 36 constituencies will be held between 7 a.m and 5 p.m. The duration of polling hours in 13 Assembly seats have been shortened on the basis of assessment of law and order situation with all these constituencies falling in Naxal-hit areas, Additional Chief Electoral Officer (ACEO) R Laxmanan said.

Bihar elections - First phase of Assembly poll begins in 49 constituencies
Bihar elections - First phase of Assembly poll begins in 49 constituencies
Of the total electors, there are 72,37,253 male, 63,17,602 female and 405 third gender, he said.

Among the break-up of seats being contested by different political parties in the first phase, the BSP leads the pack with 41 candidates, followed by BJP (27), RJD (17), LJP (13), Congress (8) and RLSP (6).

Among the left front constituents, the CPI has fielded 25 candidates followed by the CPI-M at 12.

As many as 13,212 polling stations have been set up for the first phase for which 63,624 polling personnel have been deployed, he said. Laxmanan said that 1.20 lakh personnel of Central Paramilitary Forces have been deployed to ensure free and fair polls adding that every polling station will be manned by a CPF personnel.

Out of the total number of 13,212 polling stations, 7,384 are tagged as critical and 2,255 are Left-Wing Extremists-hit. He said that five helicopters, including three Unmanned Aerial Vehicles (UAVs) have been deployed for air surveillance during polling. The number of mounted police force to be used for patrolling stands at 50, while 33 motor boats have been pressed into service for riverine petrolling.

As many as 935 video cameras and 339 android mobile phones have been put into use to ensure free and fair poll, the ACEO said.

Article Source: Business Standard

Friday 9 October 2015

Bihar Election - Lalu Prasad provoking disaffection by defending cow slaughter- Bhupender Yadav

After being at the receiving end from Rashtriya Janata Dal chief Lalu Prasad on the issue of reservations, the Bharatiya Janata Party (BJP) has cornered the former Bihar CM for his comments defending cow slaughter. While Prasad struggles to distance himself from his comments after the Dadri incident that even Hindus ate beef, the BJP has upped the ante on the issue. Bhupender Yadav, BJP Rajya Sabha MP and party's chief strategist for Bihar polls, tells Archis Mohan that Prasad is trying to cause disaffection among people by defending cow slaughter.


Bihar Election - Lalu Prasad provoking disaffection by defending cow slaughter- Bhupender Yadav
Bihar Election - Lalu Prasad provoking disaffection by defending cow slaughter- Bhupender Yadav

Why is the BJP increasingly looking nervous as the Bihar elections draw near?
It isn't the BJP but the 'grand alliance' that is nervous. It shows in their strategy which is beset with confusion. At times they talk of development and in the same breath of caste.

But hasn't the controversy over reservations and discontent within BJP ranks after ticket distribution hurting the BJP?
Our stand on reservation is clear. The BJP is not in favour of any review of the current policy of reservation. The discontent is not in the BJP but among parties opposed to us. The Samajwadi Party, for instance, broke away from the 'grand alliance'.

The BJP has outdone Bihar CM Nitish Kumar in announcing poll sops by promising scootys and laptops to students. Isn't it the kind of competitive populism that Prime Minister Narendra Modi has always stood against?
Prime Minister Modi has already put in motion infrastructure development in Bihar under the Rs 1.65 lakh crore package for the state. Scootys and laptops to encourage education for girl students, for which Nitish Kumar and Lalu Prasad did little, should be appreciated in this context and not viewed as poll sops.

Let alone development, Nitish Kumar and Lalu Prasad couldn't even deliver their promise of social justice in 25-years of their rule. Governance suffered after Kumar parted ways with the BJP. You should ask Lalu ji what kind of development he is promising to the people of the state. His son (Tejaswi) has declared in his affidavit that he is only ninth pass but has assets worth nearly a crore.

How do you think the controversy over the Dadri incident will impact Bihar polls?
Our party stands for harmony among different castes and communities based on respect for each others' beliefs and sentiments, including on cow slaughter. Lalu Prasad Yadav is trying to provoke disaffection among communities. It is unfortunate for a Yadav to have said what he did by defending cow slaughter.

But hasn't the Dadri incident affected the international image of the PM and his government at a time when he is seeking foreign investments for 'Make in India?
It is erroneous to connect an issue that has to do with people's sentiments with the international image of the Prime Minister or our government.

Article Source:  Business Standard

Bihar Election : Grand Alliance going all out to checkmate BJP

The 'Grand Alliance' of JD(U), RJD and Congress in Bihar is making an all-out attempt to checkmate the BJP using its multiple star campaigners -- Nitish Kumar, Lalu Yadav, Sonia Gandhi and Rahul Gandhi. While the Congress leaders will be holding ten odd rallies between them, the bulk of the campaigning will be done by the RJD chief and the Bihar chief minister. Lalu and Nitish are slated to visit each of the 243 constituencies' at least once during the campaign. The alliance is also slated to unveil a common programme (manifesto) of the alliance in the next few days.

Bihar Elections: The alliance may have a joint campaign committee but the Congress contesting only on 40 seats realizes that it is a junior partner in the alliance. Campaign managers said that effort was to ensure that all assembly seats were covered since they have the benefit of having several leaders unlike the BJP which is banking solely on PM Narendra Modi (likely to address about 20 rallies). During the 2014 polls, when Lalu Yadav and Nitish contested separately it was challenging for them to cover all constituencies singlehandedly.

Bihar Election : Grand Alliance going all out to checkmate BJP
Bihar Election : Grand Alliance going all out to checkmate BJP

Sources said that a joint rally of all three party leaders could take place in the fourth and fifth phase of the polls possibly in Seemanchal. For now, Congress President Sonia Gandhi has already visited Bihar last week and is scheduled to address two rallies again on October 17. Rahul Gandhi separately will visit the state on October 7 and then on 26.

Even as the BJP led alliance has released its manifesto, the Grand alliance has decided to unveil a "common programme" which would charter out its commitments should it come to power. Figuring among the top priorities of the alliance, disclosed a leader are issues like tacking employment, student scholarships, women empowerment.

Although the BJP is claiming that there are faultlines within the "united" alliance due to which Lalu Yadav and Sonia Gandhi are unlikely to be seen sharing a stage, alliance election managers say otherwise. "Our priority is not a display of being united but rather to keep out the BJP. For the first time in the state, a sitting chief minister released the list of candidates of all three alliance partners contesting elections. That is unity, we do not need a certificate from the BJP to prove that are alliance is intact," said a senior alliance leader.

Article Source: Business Standard

Bihar Election: Sushil Modi says NDA will ban cow slaughter in Bihar if it wins.

Latching on to the RJD supremo Lalu Prasad's controversial remarks that the 'Hindus too eat beef', senior BJP leader Sushil Kumar Modi on Monday promised to frame a legislation to ban cow slaughter in the state, if NDA comes to power in Bihar elections.

"The forthcoming Assembly polls in Bihar is going to be a direct contest between those, who justify beef eating and those seeking effective ban on cow slaughter....We, on our part, promise to frame an effective legislation to totally ban cow slaughter in the state if the NDA comes to power," he said in a statement.

Such a stringent law banning cow slaughter in Bihar, would be framed in line of legislations in place in states such as Rajasthan, Madhya Pradesh, Chhatisgarh and Gujarat among others, Sushil Modi said, adding that though Bihar had a law banning slaughter of cows below 14 years of age, the same had not been effectively implemented by successive governments.

Bihar Election: Sushil Modi says NDA will ban cow slaughter in Bihar if it wins.
Bihar Election: Sushil Modi says NDA will ban cow slaughter in Bihar if it wins.

In Bihar, cows of tender age were being slaughtered despite having legislation against it, he claimed, adding that the NDA government would prevent cow slaughter and take steps for protection of the sacred animal in order to ensure that those rearing cows become prosperous.

The senior BJP leader claimed that thousands of animals used to be brought to Sonepur fair by trains from across the country and transported to Assam and other North-East states before being transported across the border for slaughter, which Sushil Modi said, he had banned when he was a minister.

The NDA government at the Centre has also saved lives of lakhs of cows by preventing smuggling of animals to neighbouring country, the former deputy chief minister said.
He expressed dismay at the RJD supremo sticking to his remarks that the 'Hindus too eat beef' and questioned Chief Minister Nitish Kumar and the Congress President Sonia Gandhi's stony silence on Prasad's controversial remarks.

In an apparent bid to drag the chief minister in the raging controversy over the RJD supremo's remarks, the senior BJP leader claimed that Kumar had insulted crores of Hindus by keeping mum on the issue.

Article Source: Business Standard

Bihar Election: The legacy of the Nitish Kumar administration

In 2005, just when Nitish Kumar had taken over as chief minister, one of his MLAs died of a heart attack. Being an MLA, he had to be given a state funeral with a five-gun salute. The body lay in state, awaiting the salute. Five guns were required to fire in the air. The first round went off perfectly. But in the second round, three rifles jammed and merely responded with an empty 'click' when fired. Policemen scurried to get rifles that would work. In the third and fourth round, only two rifles fired. In the fifth round, all the rifles jammed so bystanders saw, rather than heard, the rifles firing. Nitish was mortified. But that was what he had inherited: jammed guns and Remington typewriters. Little wonder then when he was asked what his top three priorities for the state were, he said: "Governance, governance, governance".

Bihar Election: The legacy of the Nitish Kumar administration
NItish Kumar

Bihar Election: For five years, Nitish worked tirelessly to devise a new strategy for Bihar that had slid on all metrics during the rule of Lalu Prasad and family for the previous 15 years. Some ideas were innovative, some just common sense. "The division of Bihar had cost us all the mining and mineral activity: everything had gone to Jharkhand. We had no industry. All we had was agriculture, tourism… and our human resource, the people of Bihar. So education was the only way to develop the state," said a bureaucrat closely associated with the state's educational reform.

Apart from law and order, if agri-produce was to be brought to the market, better and more roads were necessary. "In the first phase (2005-09), we built schools, roads, did health sector reforms. We had planned in the second phase to work on improving the quality of education, deepening power sector reforms, concentrating on IT," said a bureaucrat.
The 2009 Lok Sabha elections reaffirmed that governance was a slogan that still worked and was not suborned by caste. Nitish led the National Democratic Alliance (NDA) to victory in 32 of the state's 40 Lok Sabha seats in 2009 and 206 of the 243 Assembly seats in 2010. Between 2010 and 2014, Bihar worked on improving the girl child's access to education: the distribution of bicycles was hugely popular, first only for girls and then for the entire school-going population. Recruitment of teachers by the panchayat would lead to its own set of problems: but at that time, everything seemed to be going swimmingly.

Then disaster struck. Narendra Modi was made chief of the Bharatiya Janata Party (BJP)'s campaign committee and it was clear that he would be the BJP's prime ministerial candidate in the 2014 general elections. Although the Janata Dal (United), or JD(U), tried to keep a distance from the happenings within the BJP, it was clear that as an alliance partner, it would inevitably be affected. The denouement came when Modi came to Bihar for a meeting of the national executive, a dinner was organised but Nitish sent a message that Modi (and Varun Gandhi) were not invited. Nitish's reason was the advertisements sponsored by the BJP said Muslims in Gujarat were better off than in other states (ads did not name Bihar). The BJP rejected this condition and, finally, Nitish snapped ties with the BJP.

The 2014 election results were cataclysmic for the JD(U). It got two seats out of 40. Nitish thought he could shrug the BJP and the people of Bihar would still vote for him because of his good governance. But the verdict was the opposite. Worse, everywhere else in India, regional leaders - from Mamata Banerjee to Naveen Patnaik - did not lose the election; only Nitish did. "He couldn't understand. He had done so much for people. Everyone told him: 'The thinking is different in Lok Sabha elections and different in Vidhan Sabha elections. For the Lok Sabha, people might vote for Modi but in state elections, they will vote for you'. But it was as if a dam had broken," said a bureaucrat associated with that phase of reforms.

In panic, Nitish decided to resort to the lowest common multiple of Bihar politics: caste. He quit the chief ministership, installed a Dalit Musahar, Jitan Ram Manjhi, as CM, and held out a hand to oldest foes Prasad and the Congress and created a caste alliance that, arithmetically at least, looked invincible. In the Lok Sabha election, the aggregate vote share of these parties had crossed 41 per cent. But there was widespread dismay among people. Nitish could not - and did not - say the alliance was only tactical. Because of his prison term in the fodder scam conviction, Lalu had been outlawed from contesting elections forever. But the anti-Yadav castes which had figured prominently in Nitish's earlier coalition could only see empowerment of the Yadavs who had been out of the power loop for 10 years and were yearning to return. There is a tiny section of the Yadavs that believes Lalu's greatest weakness is the promotion of his own family (two of his sons are contesting this election) and that he needs to be stopped. Among this lot is Pappu Yadav who is contesting from Kosi against Lalu's parivarvaad. But most Yadavs still consider Lalu their unquestioned leader.
Moreover, it was not just the Yadavs that Lalu was bringing to the table - it was also the Muslims. Although a section of Muslims had voted for Nitish even when he was with the BJP, with Lalu, there was a reason to vote en bloc against the BJP. However, the extremely backward classes (EBCs) and the poorest among Dalits were unconvinced. Depending on the region, it was the Yadavs and the upper caste Bhumihars that were their greatest oppressors. Now, not only was Nitish bringing that very caste, Yadav, into the alliance but had already favoured Bhumihars by appointing Bhumihar officers as his most trusted bureaucrats. So when it came to a crunch, where would EBCs go for justice if the Nitish-Lalu combine came to power? Worse followed even as they were mulling this: Nitish realised Jitan Ram Manjhi wasn't making the cut in governance. So he sacked him and re-appointed himself as CM. Humiliated, Manjhi went to the BJP which welcomed him with open arms. During this period, there was virtually no governance initiative. "The new bridge over the Ganga is almost ready. But Nitish is delaying inaugurating it because he doesn't want Manjhi to get the credit," say BJP leaders.

But away from the noise of the election, there is acceptance that Nitish put in motion a process - admittedly from a very low base - that put Bihar on a definite trajectory. "Even among the developed states, there is no government that spends 24 per cent of its Budget on education - we do. There is now a school within one kilometre of every village. The school is the hub of all activity. We concede that in Bihar, we cannot dream of big industry - land is too difficult to acquire. But we can promote tourism; we can promote IT and most of all, education… You will not see the results of this path of development immediately. But in the future, not only literacy, but the quality of literacy, too, will improve," says a bureaucrat.
For now, Nitish is fighting back grimly but is convinced that whatever the hue of the government, his is the road that it will have to take.

Article Source: Business Standard