INDIA POLITICS: What to expect if NDA comes to power

India Politics | Mandate 2014 - Vol 5

MANDATE 2014 – Volume 5

2014 General Elections is likely to be one of the most important event for India in this decade. The grandeur of the 16th Lok

Sabha Elections cannot be more justified especially at a time when the Indian economy is going through turbulent times. The

expectation of 1.2b+ population is to have a Central government which can bring back the era of high economic growth. The

recent state elections have shown the decisiveness of Indian electorate to vote for a change, to vote for development and

governance, and to vote against corruption. The theme for upcoming elections will be no different.

Given the scale of this event, we present to you “MANDATE 2014”, an Indian Politics series, covering our

analysis/perspectives, assimilation of key events/developments, apolitical opinions, quote shoot and lot more. In our fifth

volume, we highlight some of the policy actions that can be initiated by the BJP-led NDA if they come to power.

Contents

Page No.

1. INDIA POLITICS: What to expect if BJP-led NDA comes to power

......................................................

2. Voter turnout till Phase 7 – Key trends

................................................................................................

3. POLITICS IN PICTURES: Developments shaping current politics

.......................................................

4. Looking through the glass of opinion-makers

...................................................................................

5. Quote Shoot

.........................................................................................................................................

6. ANNEXURE: All important facts about elections

..............................................................................

Investors are advised to refer through disclosures made at the end of the Research Report.

Ashish Gupta

(Ashish.Gupta@MotilalOswal.com); +91 22 3982 5544

2 May 2014

Dipankar Mitra

(Dipankar.Mitra@MotilalOswal.com); +91 22 39825405

India Politics | Mandate 2014 - Vol 5

1. INDIA POLITICS: What to expect if NDA comes to power

Assimilating intended policy actions from BJPs manifesto / key decision-makers

Please refer to our India Politics

thematic “Mandate 2014 - Vol 4”

containing opinion polls update

dated 7 Apr-14

India concluded its seventh phase of polls thus ending polling for approximately

four-fifth of the total Lok Sabha seats (438 seats out of total 543 seats). Voter

enthusiasm was clearly visible with 66.2% turnout till Phase 7 v/s 57.6% in 2009 for

same number of seats (an increase of 8.6%) (

Please refer our India Politics report titled

‘Voter enthusiasm continues’ dated April 25, 2014

). Higher voter turnout has been a

harbinger of change and if opinion polls verdict are to be considered, we are likely to

see a BJP-led NDA government at the centre with Narendra Modi as the likely Prime

Minister.

With the 2014 general elections being the pivotal point for the world’s largest

democracy, there has been a lot of inquisitiveness from investor community with

regards to the probable economic policies which a Narendra Modi-led NDA

government could initiate. We have tried to gauge the probable policy initiatives

through a number of sources – BJP manifesto, various speeches by Narendra Modi

and other senior BJP leaders in various forums and media appearances.

BJP’s 3D by 3D framework



BJP’s manifesto begins with a note observing the three fairly indisputable

strengths of India, viz., democracy, demography and demand.

Evolving upon this, the economic think-tank of BJP and its leaders, have sought

to address a whole host of issues - both that need immediate attention as also

that of long term in nature. Consistent with this objective, they have also laid

down a mechanism to adapt the vision into practical implementable strategies.

We have put the above game plan into a 3D by 3D framework. In an economic

sense the inputs for their economic vision are the three core strengths, i.e.,

Democracy, Demography and Demand (3D).

The outcomes are also essentially 3D. The first pillar of the outcome is

‘Desirables’,i.e., issues that demand immediate attention. These are in the

nature of business sentiments and improvement in macroeconomic stability.

The second pillar is ‘Development’ on a fast track. Here, BJP and its leadership

have come out with a lot of innovative and game changing ideas that can

potentially put India into a higher growth orbit.

The third pillar of ‘Delivery’ gathers the key instruments needed to attain the

first two goals.

BJP’s 3D by 3D framework

Source: BJP Manifesto, MOSL

2 May 2014

India Politics | Mandate 2014 - Vol 5

#D1: The immediate DESIREABLES



Inflation:

Unbundle FCI operations, Price Stabilisation Fund, Special Courts to

tackle hoarding

Tax policy:

GST roll out, rule based, dispute resolution

FDI:

In all sectors barring multi-brand retail

Fiscal deficit:

Fiscal autonomy together with financial discipline

CAD and INR:

Preference for lower CAD and stronger INR

#D2: On the fast track of DEVELOPMENT



Urbanisation:

To build 100 new smart cities; twin cities and satellite towns;

focus on urban transport

Transport:

Diamond Quadrilateral project of High Speed Train network (bullet

train); expedite dedicated freight corridors and national highways development;

roads and rail to the hinterland

Manufacturing:

Develop industrial regions; single window clearance with time

bound environment clearance; address issues of labour, logistics and power

Infrastructure:

Set up gas grids, National Optical-Fibre Network, Housing for all

by 2022, creation of 50 affordable and theme based tourist circuits

Energy:

Comprehensive 'National Energy Policy’, e-auction of precious natural

resources, expedite oil and gas explorations; set up small-hydro power

generation projects

Agriculture:

Ensure a minimum of 50% profits over the cost of production; agri

rail network; linking MGNREGA to agriculture; reform the APMC act

#D3: Rethinking on the instruments of DELIVERY



Team India:

A body of Prime Minister and Chief Ministers and other

functionaries, Create 'Regional Councils of States' for addressing common

problems,

Relook in to the land acquisition:

To adopt a 'National Land Use Policy'; to

implement a monitoring agency; to work with the State Land Use Authorities

Labour and employment:

Reform labour laws; absorb labour in urbanisation,

infrastructure and housing; promote labour-intensive manufacturing; multi-skill

development

Integrate the nation:

Special focus on eastern and north eastern region and the

hilly areas, to people-public-private partnership (PPPP) model

2 May 2014

India Politics | Mandate 2014 - Vol 5

Narendra Modi: Prime Ministerial candidate of the BJP-led NDA government

Public sector privatisation



Case to case non-political decisions should be taken based on advise.

PSU employees should be taken

into confidence and given

chance if they can run it professionally

and better than private organizations.

Example of GSFC

that was about to be closed and was turned around.

Less political interference and more professional functioning in PSUs

Bring labour laws from the concurrent list to the state list

This will put the responsibility of ensuring labour is treated well on the state government

Gujarat government is purely the facilitator. It just puts the industrialist and farmer at the same table and

let them carry out negotiations. We ensure that the farmer is not exploited.

Never held back FDI in technology and defence.

Our stand is to block FDI in retail.

Export policies needed to be consistent

– Indian government still hasn’t been able to explain why it

stopped exporting cotton.

Government control on agriculture should not be much.

Public spending on education would be raised to 6% of the GDP,

and involving the private sector would

further enhance this.

Only poor has the right over the treasury of India

and would remain so.

But the approach would change to bring poor out of poverty quickly rather than to keep them poor

perpetually.

Visit Gujarat’s interior to poorest of villages (to enroll people for school, teach, develop) every year three

days (13-15 June) along with all ministers and bureaucrats.

Every year for one month between May-June ‘Krishi Mahotsav’ (farmers’ congregation) is conducted in

which 800 scientists of all Gujarat universities are brought together to reduce gap between lab to land

(discuss the use of fertilizer, seeds, pesticides every year).

On handling labour issues

On land acquisition

On FDI in technology and

defence manufacturing

On agriculture and policy

actions

Education

On India’s poor and poverty

On ground research

Arun Jaitley: Senior leader of BJP

On sentiments



The

political change itself will be the biggest change to investment sentiment,

we will rebuild and recreate the

investment cycle and make India an investment destination where it’s easy to do business.

The NDA government would be

more business friendly, more efficient, more honest

and its policies would have

greater stability.

You will need to back it up with

a government which easily clears investment proposals.

Additionally,

we will not

discriminate between states.

Whether it is a politically friendly government or opposition government we would

like to see the chief minister involved in the whole process of investment and clearance of investment proposals.

We will create an environment where states irrespective of their political complexion compete with each other for

attracting investment and growth.

The current

income tax exemption for income of INR0.2m should be gradually but significantly raised.

It will be

the major relief to small traders and mid-level employees and the common man.

Immediate implementation of the Goods and Service Tax (GST)

… that comfort level will be given to states which

anticipate a loss of revenue. This will ensure uniform rate of tax in all states.

Small industrial units

with turnover of INR15m are exempted from payment of excise duties and in view of the

depleting value of rupee and inflation; this

limit should be enhanced to INR50m.

Maybe their policy is being guided by the present circumstances, and I won’t make any judgement on them …

Higher rates are making the economy sluggish and a competitive economy cannot afford them.

This whole interplay of inflation controlling measures and interest rates being the key under the UPA made the

economy more sluggish. Therefore,

we would eventually like to see a softening of interest rates.

On RBI Governor:

We are not getting into issues relating to persons.

I don't think we have reached that stage.

Building capacity in ports, highways and power, developing townships and focusing on low-cost manufacturing

to create jobs.

We categorically say our party is not against FDI. I have always called

FDI an additionality of resource which is

required for investment but our stand is that FDI will always be sector specific.

As far as FDI in retail is concerned our party is completely opposed to it. What do you with what has already

happened? It's only if we are voted in that we will take a decision.

50 tourism circuits

centres to be declared, including Amritsar due to its religious and historical importance, and

such circuits should be exempted from strict compliance of Jawahar Lal Nehru Urban Renewal Scheme (JNURM)

conditions

on states on taxation on property owners

Source: Various media report

On investments



Taxation



On RBI policy



On infrastructure

On FDI



Tourism



2 May 2014

India Politics | Mandate 2014 - Vol 5

Highlights of BJP’s Manifesto

Inflation



Special Courts to stop hoarding and black marketing

Setting up a Price Stabilisation Fund

Unbundle FCI operations into procurement, storage and distribution

Disseminate real time data, especially to farmers - on production, prices,

imports, stocks and overall availability

Evolve a single 'National Agriculture Market'

Employment



Labour-intensive manufacturing (viz. textile, footwear, electronics assembly,

etc.) and tourism

Strengthen traditional employment bases of agriculture and allied industries and

retail through modernization

Upgradation of infrastructure and housing

Encourage and empower our youth for self-employment – incubating

entrepreneurship as well as facilitating credit.

Multi-skills development programme in mission mode

“People achieve Moksha by

visiting 4 pilgrimage sites.

However, government files

often had to travel to over

20 tables before it is

addressed” –

Narendra

Modi

Team India: States as partners in development



Team India to be built with Prime Minister and Chief Ministers and other

functionaries as equal partners

Ensure fiscal autonomy of States while urging financial discipline

Create 'Regional Councils of States', with common problems and concerns, with

a view to seeking solutions that are applicable across a group of states.

State-specific developmental priorities/ models to be evolved for problems of

the hill and desert states

Involve the state Governments in the promotion of foreign trade and commerce

The moribund forums like 'National Development Council' and 'Inter-State

Council' will be revived and made into active bodies

We need to put ‘life’ in a

‘file’ –

Narendra Modi

Integrating the Nation



Bring the eastern parts of the country on par with the western parts through

special focus and emphasis on the development of the eastern side of India.

NDA government will empower the Ministry of North-Eastern Region with a

broader charter and non-lapsable funds for the rapid development of the region

(massive infrastructure development and connectivity).

We will further evolve the Public Private Partnership (PPP) model into a People-

Public-Private Partnership (PPPP) model. People should get a chance to speak

before a government decision is taken. This will make people feel like they have

had a role to play. Wherever possible we should take the people of consent. This

will speed up the pace of development

Urbanisation



Major steps will be undertaken in Transport and Housing for 'Urban Upliftment'

in India.

2 May 2014

India Politics | Mandate 2014 - Vol 5



We will initiate building 100 new cities; enabled with the latest in technology

and infrastructure - adhering to concepts like sustainability, walk to work etc,

and focused on specialized domains.

Approach to urban development will be based on integrated habitat

development - building on concepts like Twin cities and Satellite towns.

Tax Policy Roadmap



Overhaul the dispute resolution mechanisms

Bring on board all State governments in adopting GST, addressing all their

concerns. For implementing the same, a robust IT network system will be put in

place.

Provide tax incentives for investments in research and development, geared

towards indigenization of technology and innovation

Foreign direct investment



Exclude multi-brand retail sector from FDI; to protect the interest of small and

marginal retailers

FDI will be allowed in all other sectors other than multi-brand retail

Agriculture



Enhance the profitability in agriculture, ensuring a minimum of 50% profits over

the cost of production

Linking MGNREGA to agriculture

Implement and incentivize the setting up of the food processing industry; will

lead to job creation and better income for farmers.

Set up the 'Organic Farming and Fertilizer Corporation of India'

Reform the APMC act

Genetically Modified (GM) foods will not be allowed without full scientific

evaluation on its long-term effects on soil, production and biological impact on

consumers

Land acquisition



BJP will adopt a 'National Land Use Policy', which will look at the scientific

acquisition of non-cultivable land, and its development; protect the interest of

farmers and keep in mind the food production and other economic goals

To implement a monitoring agency National Land Use Authority, which will work

with the State Land Use Authorities to regulate and facilitate land management.

Becoming a global manufacturing hub



2 May 2014

Invest in logistics infrastructure, ensure power supply and undertake labour

reforms

To move towards a single-window system of clearances both at the centre and

also at the State level through a Hub-spoke model

Decision-making on environment clearances to be made transparent as well as

time-bound

Increase the public spending on R&D and Incentivize R&D investments by the

industry to increase the competitiveness of the manufacturing sector.

Facilitate setting up of software and hardware manufacturing units.

India Politics | Mandate 2014 - Vol 5

Infrastructure



Business and trade:

Build world class Ports - modernize existing ports and

develop new ones, connecting them with roads and rail to the hinterland. Air

Cargo facilities will be enhanced throughout the country. Develop National

logistics network for faster movement of goods.

Housing:

Roll out a massive Low cost Housing programme in order to achieve

housing for all by 2022

Tourism:

Key role through creation of jobs, enterprise, infrastructure

development, and foreign exchange earnings. To create 50 tourist circuits that

are affordable and built around themes – archaeological and heritage; cultural

and spiritual, Himalayan, desert, etc.

Transport:

To expedite work on the Freight Corridors and attendant Industrial

Corridors. To expedite the National Highway construction projects.

Railways:

Hinterland will be connected to the ports through strategic new Rail

networks. Launch Diamond Quadrilateral project - of High Speed Train network

(bullet train). Agri Rail network will be established.

Other areas:

Set up gas grids to make gas available to households and industry.

To set up a National Optical-Fibre Network up to the village level. Inter-linking of

rivers based on feasibility.

Energy



To come out with a comprehensive 'National Energy Policy’

Set up small-hydro power generation projects

To set in place national policies on critical natural resources like coal, minerals,

spectrum, etc.

Increase the domestic coal exploration and production, to bridge the demand

and supply gap.

Oil and gas explorations would be expedited in the country

To implement auction of precious resources through efficient mechanisms

including e-auction

2 May 2014

India Politics | Mandate 2014 - Vol 5

2. Voter turnout till Phase 7 – Key trends

Voter enthusiasm continued to be high in the Phase 7 of the 2014 General

elections. Nearly 66% of the 139m eligible voters casted their votes during Phase 7.

With 438 of 543 Lok Sabha seats polled till Phase 7 (80% seats), total voter turnout

was 66.2% vs 57.6% in 2009 for same number of seats (increase of 8.6%).

Phase 8 polling on May 7 for 64 seats

States

Andhra Pradesh

Bihar

Himachal Pradesh

Jammu & Kashmir

Uttar Pradesh

Uttarakhand

West Bengal

Total

No of seats

Source: Election Commission, MOSL

Phase 9 polling on May 12 for 41 seats

States

Bihar

Uttar Pradesh

West Bengal

Total

No of seats

Source: Election Commission, MOSL

Voter turnout high for key states

2014 voter turnout (%)

Maharashtra

Bihar

Jharkhand

Rajasthan

Uttar Pradesh

Madhya Pradesh

Gujarat

Chhattisgarh

NCT OF Delhi

Karnataka

Odisha

Haryana

Andhra Pradesh

Tamil Nadu

Punjab

Kerala

Assam

West Bengal

2009 voter turnout (%)

Source: Election Commission, Media reports, MOSL

Uttar Pradesh records its highest-ever turnout (%)

Uttar Pradesh

Rajasthan replicates voter turnout of assembly elections (%)

Rajasthan

1991

1996

1998

1999

2004

2009

2014

1991

1996

1998

1999

2004

2009

2014

Source: Election Commission, Media reports, MOSL

2 May 2014

Source: Election Commission, Media reports, MOSL

India Politics | Mandate 2014 - Vol 5

Bihar shows a sharp increase in turnout (%)

Bihar

Karnataka records highest turnout in a decade (%)

Karnataka

1991

1996

1998

1999

2004

2009

2014

1991

1996

1998

1999

2004

2009

2014

Source: Election Commission, Media reports, MOSL

West Bengal records highest turnout amongst key states (%)

West Bengal

Tamil Nadu shows same turnout as in 2009 (%)

Tamil Nadu

1991

1996

1998

1999

2004

2009

2014

1991

1996

1998

1999

2004

2009

2014

Source: Election Commission, Media reports, MOSL

Delhi voters display high enthusiasm (%)

NCT OF Delhi

Maharashtra turnout picks up from lows of 2009 (%)

Maharashtra

1991

1996

1998

1999

2004

2009

2014

1991

1996

1998

1999

2004

2009

2014

Source: Election Commission, Media reports, MOSL

2 May 2014

India Politics | Mandate 2014 - Vol 5

3. POLITICS IN PICTURES: Developments shaping current politics

Events

Observations

Two FIRs against Narendra Modi for ‘flouting’ poll code



Narendra Modi courted trouble as he displayed his party’s symbol and delivered a

“political speech” outside a polling booth in Ahmedabad after he cast his vote.

Election Commission is of the view that by holding that meeting, Narendra Modi has

violated the provisions of sections 126 (1)(a) and 126 (l)(b) of RP Act 1951.

Hours later, the Ahmedabad Crime Branch filed an FIR against him on the orders of the

Election Commission.

Be careful henceforth when you take a selfie … you might end up with a FIR against

you!

Priyanka Gandhi creates more than a ripple



She chose to remain silent in the background. Then she chose to speak. A very late

entrant into the campaign trail, the Gandhi scion matched the name calling that

characterized the current election. She defended her family and launched a no-holds bar

attack on Narendra Modi and a few selected opponents.

Although she has joined the election campaign late, her high-decibel entry and

campaigning seems to have created some positive impact for Congress

BJP’s yogi politician



Yogi Adityanath, priest of the Gorakhnath mandir and Gorakhpur's Member of

Parliament from the Bharatiya Janata Party since 1998. A Hindutva hardliner and a key

coordinator of the BJP's election strategy for Uttar Pradesh, he is touted as the BJP's

most recognised face in east Uttar Pradesh.

His role would be critical in consolidating votes in eastern UP for BJP

Rags to riches story of the Jalna AAP candidate

He was forced to work as a construction labourer and his mother as a rag-picker after

his family lost their home in a slum demolition drive. He won a government scholarship

at the age of 10 and then went on to study at IIT, Mumbai, Harvard and University of

Pennsylvania. He has worked for New Jersey state government before returning India

and was nominated for the Mann Award that recognises innovations in health and

human rights. Deelip Mhaske, the AAP candidate from Jalna has surely seen a lot of it in

life at just 35 years of age.

Now that’s as good a CV as we have seen for any candidate



Congress candidate from Tamil Nadu with 1,000 cars

J M Aaroon Rashid, the Congress candidate from Theni in southern Tamil Nadu went to

file his nomination with about 500 cars in his cavalcade (he claimed 1,000 of all

followers). He distributes two books that total around 700 pages containing

compilations of all the questions he asked in Parliament in the last 10 years. His workers

distribute 2D cards, with his picture at one angle and Congress election symbol when

tilted. The other side is his achievements of last 10 years.

World’s largest democracy would have some grandiose shows too



The Spiderman, independent candidate from Mumbai

Indian Spider-Man Gaurav Sharma, is an independent candidate from Mumbai South.

Donning the quintessential red and blue Spider-Man costume, Sharma campaigned by

climbing residential buildings to campaign for the Lok Sabha elections. Incidentally, his

election symbol is a 'window'. A martial arts trainer and fitness consultant, Sharma

jumped into the poll fray as an independent after being denied a ticket from AAP.

We need no less than a Spiderman to pull the economy out

Source: Various media report



2 May 2014

India Politics | Mandate 2014 - Vol 5

4. Looking through the glass of opinion makers

Swapan Dasgupta,

senior Indian journalist and

political commentator



2014 elections a choice between two different sets of priorities:

BJP-led NDA is offering the

country the strong and decisive leadership of Narendra Modi and promise of higher economic

growth to a better future. Predictably, for a party that has been in opposition for the past 10

years, the BJP is also harping on the UPA government’s under-performance. As the incumbent,

the Congress began with the government-funded Bharat Nirman campaign that highlighted the

UPA’s achievements over the past decade. Running in tandem was the projection of Rahul

Gandhi as an emerging youth icon.

Congress campaign shifted track mid-way:

Unlike the BJP which has played the same theme

song without deviation for over six months, the Congress has shifted track midstream. Far from

building on the Bharat Nirman theme, it changed gear and made Modi the principal target of

attack. Apart from devaluing the Rahul brand and ensuring the centrality of Modi in the

campaign, it departed altogether from its original script and, in the final round of the campaign,

made Hindustaniyat, secularism and the ‘idea of India’ its theme in the final stages of the

campaign. Although still active in the campaign, the projection of Rahul was toned down.

What impresses voters:

Conventional wisdom argues that an overtly ideological campaign based

on abstract cultural-cum-identity issues takes a much longer time to register in the minds of

voters than a personality driven, bread-and-butter sales pitch. Yet, the Congress chose to leave

the elaboration of its ‘liberal’ ethos till the very last stage, and that too after suffering countless

desertion of notables from the ‘secular’ camp.

Good history cannot be written in hindsight:

A proper documentation of the 2014 campaign

could well reveal that anticipating the mind of India is more daunting than predicting the

commercial prospects of a big-budget Bollywood production. It may well reveal that those

entrusted with that task are often unable to rise above their personal inclinations and prejudices.

And it may also reveal that when it comes to understanding voter psychology, it is the much-

vilified Indian politician who is best able to sniff out the trends, even better than the pollsters.

The final outcome won’t surprise them, even if it leaves others recoiling in horror.

Anointment of Modi to widen India’s ‘democracy deficit’:

Not getting the support of the

country’s largest minority population (Muslims) and still being able to form a government is

always a possibility, but it is definitely not “desirable”. By all accounts, a very sizable population

of Muslims is not likely to vote for Modi and the BJP in this general election. What if Modi still

becomes Prime Minister? If you are on the “right” side of demographics, you may not bother at

all. But if you are a Muslim, it is a worrisome thought.

Muslims vote for a party which is in the best position to defeat BJP:

Wherever BJP is a primary

player, all other so-called “secular” parties take it for granted that a significant majority of

Muslims will not vote for the saffron party, rather they will vote for a party which is in the best

position to defeat it. The assumption that to win Muslim votes one needs to be seen as a

frontrunner to defeat BJP has created a sort of passive or rather negative outlook among political

parties. A party need not have a positive agenda to win the support of Muslims — it should just

be seen to be best placed to defeat BJP.

Winnability of a BJP candidate, at times, forces Muslims to practise “sly” politics:

Muslims fear

that too much open polarization may lead to consolidation of Hindu votes. This is what is likely to

happen in Varanasi this time. Going by media accounts, Muslims are keeping a low profile for

fear of polarization of Hindu votes. Working behind the scene, some Muslim leaders impressed

upon local don Mukhtar Ansari to withdraw his candidature against Narendra Modi to stop a

division of community votes. But Muslims are unlikely to openly vouch their support for a

particular candidate till the last moment. They are expected to wait and watch to guess who is

most likely to give a fight to Narendra Modi and then vote accordingly — that too without being

too vocal and open about it.

How to deal with the BJP-Muslim gulf in Indian politics:

The burden of making the first move

lies with Narendra Modi and BJP. If Modi becomes Prime Minister — though it is still a very big

“if” — he should reach out to Muslims. Modi will be in a “position of strength” to do so. He is

already signaling his desire to this effect — whether it’s electoral posturing or genuine, we don’t

know. In a recent interview, Modi said that it is his “responsibility” to reach out to all sections of

society, which includes Muslims.

Source: Media, MOSL



Indrajeet Rai,



Columnist at Times of India,

PhD in international

politics from JNU



2 May 2014

India Politics | Mandate 2014 - Vol 5

5. Quote Shoot

After elections, you will need a High

Resolution camera to see Congress

representatives in Parliament

–

Narendra Modi

In my entire life, not even a single FIR has been

registered against me, not even for driving a scooter on the

wrong side or for wrong parking. Suddenly today when I

landed here (Tirupati) I came to know that an FIR has been

registered against me... I will never forget April 30. If

someone is threatened with a knife an FIR is lodged,

all I did was show everyone a lotus

–

Narendra Modi

The contest is between two competing ideas of India.

The Congress’ idea of India is about inclusion, decentralisation,

empowering people and building partnerships for economic growth.

The Opposition’s idea seeks to divide the country on communal lines,

capture resources for a select few, and centralise decision-making by

putting all power into the hands of one individual. It has been the

proud legacy of the Congress party to fight and defeat this idea

since the birth of our nation. We are committed to continuing

this fight –

Rahul Gandhi

The Congress is not hankering for power. The party can

consider all options necessary to deny power to communal

forces (read BJP). The final decision will be taken by the

Congress president after due consultation

with all colleagues

–

Ahmed Patel when asked about the possibility

of Congress supporting a Third Front-

led government

When Rajiv Gandhi spoke of computers many

years ago, they laughed at him and called him

'the computer boy'. He had a long term picture

in mind. Today, the same people make fun of

Rahul Gandhi. He is also thinking of the big

picture

–

Priyanka Gandhi

I think the people of India want growth.

They also want distributive justice....

We should not have lifted the foot that have been

kept on the accelerator of growth. Somewhere

I think we thought that lower growth would

be acceptable...(but) people of India want

high growth, then want distributive justice

–

P Chidambaram

The political change itself will be the

biggest change to investment sentiment.

We will rebuild and recreate the

investment cycle and make India an

investment destination where it’s easy

to do business

–

Arun Jaitley

2 May 2014

Source: Various media articles

India Politics | Mandate 2014 - Vol 5

6. Annexure: Vital facts about elections

A. Opinion polls summary

Latest polls accord majority to NDA

Party

UPA

Congress

Allies

NDA

BJP

Allies

Others

Total

Lok

CNN IBN & CSDS

C-Voter

ABP News - Nielsen

NDTV Hansa

Sabha

Current Jul13 Oct13 Jan14 Feb14 Mar14 Jul13 Oct13 Jan14 Feb14 Jan14 Feb14 Mar14 Feb14 Mar14 Apr14

228

153

138

117

129

117

136

117

103

101

119

129

123

111

206

135

120

100

102

100

119

102

106

104

133

176

191

221

222

256

156

186

212

227

226

236

240

229

259

275

116

161

175

201

203

212

131

162

188

202

210

217

209

195

214

226

182

214

205

192

170

251

240

228

215

216

215

184

185

161

157

543

Source: Media, Election Commission of India

Note:

March 2014 projections for CNN-IBN and CSDS and ABP News – Nielsen includes TDP seats as predicted by these polls conducted before

the announcement of the alliance. NDTV Hansa Research already included TDP in the NDA alliance.

Sharp increase in vote share to result in seat share gains

2009

NDTV Hansa (Mar-14)

33%

30%

27% 27%

26%

NDTV Hansa (Feb-14)

NDTV Hansa (Apr-14)

33%

35%

NDA seats to nearly double from 2009 tally

Jul-13

Oct-13

Jan-14

Feb-14

Mar-14

Apr-14

24%

UPA

NDA

UPA

NDA

Others

Source: Media, MOSL Note: Average of polls during the month

Source: Media, MOSL

BJP-Shiv Sena alliance gaining momentum in Maharashtra

Maharashtra

Latest opinion poll indicates sharp gains for NDA in Odisha

Odisha

CNN-IBN

(Jan-14)

CNN-IBN

(Mar-14)

NDTV

(Feb-14)

NDTV

(Mar-14)

NDTV

(Apr-14)

CNN-IBN

(Jan-14)

CNN-IBN

(Mar-14)

NDTV

(Feb-14)

NDTV

(Mar-14)

NDTV

(Apr-14)

Source: Media, MOSL

2 May 2014

India Politics | Mandate 2014 - Vol 5

Pre-poll alliance with TDP has benefited NDA

Andhra Pradesh

In Bihar, momentum lost in March 2014 regained

Bihar

CNN-IBN

(Jan-14)

CNN-IBN

(Mar-14)

NDTV

(Feb-14)

NDTV

(Mar-14)

NDTV

(Apr-14)

CNN-IBN

(Jan-14)

CNN-IBN

(Mar-14)

NDTV

(Feb-14)

NDTV

(Mar-14)

NDTV

(Apr-14)

Source: Media, MOSL

The latest poll indicates gains for NDA in most states

States

Uttar Pradesh

Maharashtra

Andhra Pradesh

West Bengal

Bihar

Tamil Nadu

Madhya Pradesh

Karnataka

Gujarat

Rajasthan

Odisha

Assam

Jharkhand

Punjab

Chhattisgarh

Haryana

Delhi

Other states

Total NDA

Total BJP

Total NDA allies

221

201

256

212

Not separately

given

Not separately

given

CNN-IBN

(Jan-14)

CNN-IBN

(Mar-14)

NDTV

(Feb-14)

230

195

NDTV

(Mar-14)

259

214

NDTV

(Apr-14)

275

226

NDTV

(Apr - Mar) Swing

-2

-4

Source: Media, MOSL

2 May 2014

India Politics | Mandate 2014 - Vol 5

B. General Election 2014

Key dates

Phase

Schedule

1 Issue of Notification

2 Last Date for filing Nominations

3 Scrutiny of Nominations

4 Last date for withdrawal

5 Date of Poll

6 Counting of Votes

14-Mar

(Fri)

21-Mar

(Fri)

22-Mar

(Sat)

24-Mar

(Mon)

7-Apr

(Mon)

16-May

(Fri)

15-Mar

(Sat)

22-Mar

(Sat)

24-Mar

(Mon)

26-Mar

(Wed)

9-Apr

(Wed)

16-May

(Fri)

15-Mar

(Sat)

22-Mar

(Sat)

24-Mar

(Mon)

26-Mar

(Wed)

10-Apr

(Thu)

16-May

(Fri)

13-Mar

(Thu)

20-Mar

(Thu)

21-Mar

(Fri)

24-Mar

(Mon)

10-Apr

(Thu)

16-May

(Fri)

19-Mar

(Wed)

26-Mar

(Wed)

27-Mar

(Thu)

29-Mar

(Sat)

12-Apr

(Sat)

16-May

(Fri)

19-Mar

(Wed)

26-Mar

(Wed)

27-Mar

(Thu)

29-Mar

(Sat)

17-Apr

(Thu)

16-May

(Fri)

29-Mar

2-Apr

12-Apr 17-Apr

(Sat)

(Wed)

(Sat)

(Thu)

5-Apr

9-Apr

19-Apr 24-Apr

(Sat)

(Wed)

(Sat)

(Thu)

7-Apr

10-Apr 21-Apr 25-Apr

(Mon)

(Thu)

( Mon)

(Fri)

9-Apr

12-Apr 23-Apr 28-Apr

(Wed)

(Sat)

(Wed)

(Mon)

24-Apr 30-Apr

7-May 12-May

(Thu)

(Wed)

(Mon)

16-May 16-May 16-May 16-May

(Fri)

Source: Election Commission, MOSL

Elections to be held in nine phases for various states/UTs

spread out across April to early May (2014)

420 out of 543 constituencies would vote during the four

days of April, viz., 10th, 17th, 24th and 30th (2014)

122

117

Source: Election Commission, MOSL

Polls would be over by three days for most of the states

States with extended polling have many constituencies

167

120

116

Six poll

dates

Five poll

dates

Three poll

dates

Two poll

dates

Single poll

date

Six poll

dates

Five poll

dates

Three poll

dates

Two poll Single poll

dates

date

Source: Election Commission, MOSL

2 May 2014

India Politics | Mandate 2014 - Vol 5

Number of electorates touches 81m in 2014; ~14% increase in number of voters in 2014

Electors (in m)

(0)

% change

717

814

593

499

321

1977

356

1980

380

498

606

620

671

Voting age reduced

from 21 to 18 years

1984

1989

1991

1996

1998

1999

2004

2009

2014

Source: Election Commission of India, MOSL

General elections are to be held in 9 phases spread out across states (2014)

States

No. Of Parl.

Constituencies

Andhra Pradesh

Arunachal Pradesh

Assam

Bihar

Chhattisgarh

Goa

Gujarat

Haryana

Himachal Pradesh

Jammu & Kashmir

Jharkhand

Karnataka

Kerala

Madhya Pradesh

Maharashtra

Manipur

Meghalaya

Mizoram

Nagaland

Odisha

Punjab

Rajasthan

Sikkim

Tamil Nadu

Tripura

Uttar Pradesh

Uttarkhand

West Bengal

Andaman & Nicobar

Chandigarh

Dadra & Nagar Haveli

Daman & Diu

Lakshadeep

Delhi

Puducherry

Total

543

7-Apr

Mon

9-Apr

Wed

10-Apr

Thu

12-Apr

Sat

17-Apr

Thu

24-Apr

Thu

30-Apr

Wed

7-May

Wed

12-May

Mon

122

117

Source: Election Commission of India, MOSL

2 May 2014

India Politics | Mandate 2014 - Vol 5

C. Seat/vote share distribution

Party-wise seats won by major parties in past 3 general elections

Party Name

Congress (INC)

Bharatiya Janata Party (BJP)

Samajwadi Party (SP)

Bahujan Samaj Party (BSP)

Janata Dal (United) (JD (U))

All India Trinamool Congress (AITC)

Dravida Munnetra Kazhagam (DMK)

Communist Party Of India (Marxist) (CPI (M))

Biju Janata Dal (BJD)

Shiva Sena (SHS)

Nationalist Congress Party (NCP)

All India Anna Dravida Munnetra Kazhagam (AIADMK)

Telugu Desam Party (TDP)

Rashtriya Lok Dal (RLD)

Rashtriya Janata Dal (RJD)

Shiromani Akali Dal (SAD)

Communist Party Of India (CPI)

Jammu & Kashmir National Conference (JKN)

Janata Dal (Secular) (JD (S))

Other regional/independent parties

Total

1999

114

182

2004

146

138

2009

206

116

543

Source: Election Commission of India

Congress: Vote share has remained in the range of 26-29%, however seat share have

varied from 21% in 1999 to 38% in 2009

Seats won

Non-Congress led alliance

28.8

25.8

26.0

21.0

28.3

26.7

26.5

28.6

Vote share (%)

Seats won (%)

37.9

140

1996

141

1998

114

1999

145

2004

206

2009

Source: Election Commission of India

2 May 2014

India Politics | Mandate 2014 - Vol 5

BJP: 2009 vote share has been the lowest in the last 5 general elections

Seats won

29.7

33.5

Vote share (%)

33.5

25.4

25.6

20.3

21.4

23.8

22.2

18.8

Seats won (%)

161

1996

182

1998

182

1999

138

2004

116

2009

Source: Election Commission of India

Congress and BJP combined seats won ranges from 295-325

Seats won

Seat won (%)

Vote share (%)

301

1996

323

1998

296

1999

283

2004

322

2009

Source: Election Commission of India

UPA/NDA coalition bifurcation state-wise (pre-poll alliance of respective election year)

States

Uttar Pradesh

Maharashtra

Andhra Pradesh

West Bengal

Bihar

Tamil Nadu

Madhya Pradesh

Karnataka

Gujarat

Rajasthan

Orissa

Kerala

Assam

Jharkhand

Punjab

Chhattisgarh

Haryana

NCT of Delhi

Other States/UTs

Grand Total

1999

Congress

181

NDA

290

Others

Total

543

UPA

279

NDA

187

2004

Others

Total

543

2009

UPA NDA

Others

Total

259

160

124

543

Source: Election Commission of India

2 May 2014

India Politics | Mandate 2014 - Vol 5

D. Voter turnout

Voter turnout in general elections across different states (%)

States

Andaman & Nicobar Islands

Andhra Pradesh

Arunachal Pradesh

Assam

Bihar

Chandigarh

Chattisgarh

Dadra & Nagar Haveli

Daman & Diu

Goa

Gujarat

Haryana

Himachal Pradesh

Jammu & Kashmir

Jharkhand

Karnataka

Kerala

Lakshadweep

Madhya Pradesh

Maharashtra

Manipur

Meghalaya

Mizoram

Nagaland

NCT OF Delhi

Orissa

Puducherry

Punjab

Rajasthan

Sikkim

Tamil Nadu

Tripura

Uttar Pradesh

Uttarakhand

West Bengal

1999

59.5

69.1

72.2

71.3

61.5

48.4

74.7

71.7

45.1

47.0

63.7

56.8

32.3

67.6

70.2

80.2

54.9

61.0

65.7

56.2

65.3

76.3

43.5

55.6

63.3

56.1

53.9

81.7

58.0

68.1

53.5

75.1

2004

2009

63.7

64.2

70.0

72.6

56.4

68.2

69.1

69.5

58.0

44.5

51.1

65.5

52.1

55.3

69.0

73.2

70.2

71.3

58.8

55.3

45.2

47.9

65.7

67.5

59.7

58.4

35.2

39.7

55.7

51.0

65.1

58.8

71.5

73.4

81.5

85.9

48.1

51.2

54.4

50.7

67.4

77.1

52.7

64.4

63.6

51.8

91.8

90.0

47.1

51.9

66.1

65.3

76.1

79.8

61.6

69.8

50.0

48.4

78.0

83.8

60.8

73.0

67.1

84.5

48.2

47.8

48.1

53.3

78.0

81.4

Source: Election Commission of India

National average voter turnout: Higher turnout expected in 2014 elections (%)

64 Sympathy votes

1977

1980

1984

1989

1991

1996

1998

1999

2004

2009

Source: Election Commission of India

2 May 2014

India Politics | Mandate 2014 - Vol 5

Higher voter turnout in assembly elections than general elections; gap of 10pp highest in

2009-13

MP (5%): Voter turn-out at its peak in 2013

BJP win 72.7

69.8

Rajasthan (5%): Gradual rise in vote turnout over the years

BJP decisive win 75.2

67.2

57.1

60.6

63.4

66.5

67.3

60.5

54.2

49.8

60.2

52.2

54.9

1980

1985

1990

1993

1998

2003

2008

2013

1980

1985

1990

1993

1998

2003

2008

2013

Gujarat (5%): Decisive voting in favour of Narendra Modi

Decisive voting 72.5

64.4

59.3

52.2

48.1

48.8

61.5

59.8

Delhi (1%): AAP forms govt in 2013

Decisive voting against Congress 65.7

61.8

55.5

57.6

53.4

1980

1985

1990

1995

1998

2002

2007

2012

1983

1993

1998

2003

2008

2013

UP (15%): Decisive voting in favour of Samajwadi party

SP convincing win 59.5

57.1

51.4

48.5

44.9

45.6

55.7

53.8

Karnataka (5%): Voter turnout above 70% for the first time

Congress dethrones BJP 71.5

68.6

67.3

65.7

67.6

67.7

65.1

1980 1985 1989 1991 1993 1996 2002 2007 2012

1983

1985

1989

1994

1999

2004

2008

2013

2 May 2014

India Politics | Mandate 2014 - Vol 5

E. National and State parties at present

There are six National Parties in India at present

S. No. Name

1 Bahujan Samaj Party (BSP)

2 Bharatiya Janata Party (BJP)

3 Communist Party of India (CPI)

4 Communist Party of India (Marxist) CPI (M)

5 Indian National Congress (INC)

6 Nationalist Congress Party (NCP)

Year

1984

1980

1925

1964

1885

1999

Current leader

Mayawati

Rajnath Singh

Suravaram Sudhakar Reddy

Prakash Karat

Sonia Gandhi

Sharad Pawar

Symbol

Elephant

Lotus

Ears of Corn and Sickle

Hammer, Sickle and Star

Hand

Clock

There are 47 State Parties in India at present

S.No.Name of the party

1 Aam Aadmi Party

2 All India Anna Dravida Munnetra Kazhagam

3 All India N.R. Congress

4 All India Forward Bloc

5 All India Trinamool Congress

6 All India United Democratic Front

7 All Jharkhand Students Union

8 Asom Gana Parishad

9 Biju Janata Dal

10 Bodoland People's Front

11 Desiya Murpokku Dravidar Kazhagam

12 Dravida Munnetra Kazhagam

13 Haryana Janhit Congress (BL)

14 Hill State People's Democratic Party

15 Indian National Lok Dal

16 Indian Union Muslim League

17 Jammu & Kashmir National Conference

18 Jammu & Kashmir National Panthers

19 Jammu and Kashmir People's Democratic

20 Janata Dal (United)

21 Jharkhand Mukti Morcha

22 Jharkhand Vikas Morcha (Prajatantrik)

23 Janata Dal (Secular)

Karnataka Janata Paksha merged with BJP

Kerala Congress (M)

Lok Jan Shakti Party

Maharashtra Navnirman Sena

Maharashtrawadi Gomantak Party

Manipur State Congress Party

Mizo National Front

Mizoram People's Conference

Naga People's Front

Pattali Makkal Katchi

People's Democratic Alliance

People's Party of Arunachal

Rashtriya Janata Dal

Rashtriya Lok Dal

Revolutionary Socialist Party

Samajwadi Party

Shiromani Akali Dal

Shiv Sena

Sikkim Democratic Front

Telangana Rashtra Samithi

Telugu Desam Party

United Democratic Party

Zoram Nationalist Party

Year

2012

1972

2011

1939

1998

2004

1986

1985

1997

2005

1949

2007

1999

1948

1932

1982

1998

1999

1972

2006

1999

1979

2000

2006

1963

1959

1972

2002

1989

1987

1997

1996

1940

1992

1920

1966

1993

2001

1982

1997

Current leaders

Arvind Kejriwal

J. Jayalalithaa

N. Rangasamy

Biswas, Debabrata

Banerjee, Mamata

Ajmal, Badruddin

Mahto, Sudesh

Mahanta, Prafulla

Patnaik, Naveen

Mohilary, Hagrama

Vijayakanth

Karunanidhi, M

Bishnoi, Kuldeep

Lyngdoh, H.S.

Chautala, Om Prakash

Ahamed, E.

Abdullah, Omar

Singh, Bhim

Sayeed, Mufti Mhmd.

Yadav, Sharad

Soren, Shibu

Marandi, Babu Lal

Deve Gowda, H.D.

Thomas, C.F.

Paswan, Ram Vilas

Thackeray, Raj

Kakodkar, Shashikala

Zoramthanga, Pu

Lalhmingthanga, Pu

Rio, Neiphiu

Mani, G. K.

Riba, Tomo

Lalu Prasad Yadav

Choudhary Ajit Singh

Chandrachoodan, T. J.

Yadav, Mulayam Singh

Badal, Parkash Singh

Thackeray, Uddhav

Chamling, Pawan

Rao, K. Chandrashekar

Naidu, Chandrababu

Roy, Donkupar

Lalduhoma

States/UT

Delhi

Puducherry/ Tamil Nadu

Puducherry

West Bengal

Bengal/Arunachal/Manipur

Assam

Jharkhand

Assam

Odisha

Assam

Tamil Nadu

Puducherry/ Tamil Nadu

Haryana

Meghalaya

Haryana

Kerala

Jammu and Kashmir

Bihar

Jharkhand

Karnataka/Kerala

Symbol

Broom

Two Leaves

Jug

Lion

Flowers & Grass

Lock & Key

Banana

Elephant

Conch

Nangol

Nagara

Rising Sun

Tractor

Lion

Spectacles

Ladder

Plough

Bicycle

Ink Pot & Pen

Arrow

Bow & Arrow

Comb

A Lady Farmer carrying

Paddy on her head

Karnataka

Kerala

Two Leaves

Bihar

Bungalow

Maharashtra

Railway Engine

Goa

Lion

Manipur

Cultivator Cutting Crop

Mizoram

Star

Mizoram

Electric Bulb

Manipur, Nagaland

Cock

Puducherry

Mango

Manipur

Crown

Arunachal Pradesh

Maize

Bihar, Jharkhand

Hurricane Lamp

Uttar Pradesh

Hand Pump

West Bengal

Spade & Stoker

Uttar Pradesh

Bicycle

Punjab

Scales

Maharashtra

Bow and Arrow

Sikkim

Umbrella

Andhra Pradesh

Car

Andhra Pradesh

Bicycle

Meghalaya

Drum

Mizoram

Sun (without rays)

Source: Election Commission, MOSL

2 May 2014

Disclosures

This report is for personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. This research report does not constitute an offer, invitation or

inducement to invest in securities or other investments and Motilal Oswal Securities Limited (hereinafter referred as MOSt) is not soliciting any action based upon it. This report is not for public distribution

and has been furnished to you solely for your information and should not be reproduced or redistributed to any other person in any form.

Unauthorized disclosure, use, dissemination or copying (either whole or partial) of this information, is prohibited. The person accessing this information specifically agrees to exempt MOSt or any of its

affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSt or any of its affiliates or employees responsible for any such misuse and further agrees

to hold MOSt or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays.

The information contained herein is based on publicly available data or other sources believed to be reliable. While we would endeavour to update the information herein on reasonable basis, MOSt and/or

its affiliates are under no obligation to update the information. Also there may be regulatory, compliance, or other reasons that may prevent MOSt and/or its affiliates from doing so. MOSt or any of its

affiliates or employees shall not be in any way responsible and liable for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. MOSt or any

of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of

merchantability, fitness for a particular purpose, and non-infringement. The recipients of this report should rely on their own investigations.

India Politics | Mandate 2014 - Vol 5

This report is intended for distribution to institutional investors. Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision

based on this report or for any necessary explanation of its contents.

MOSt and/or its affiliates and/or employees may have interests/positions, financial or otherwise in the securities mentioned in this report. To enhance transparency, MOSt has incorporated a Disclosure of

Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report.

Disclosure of Interest Statement

1. Analyst ownership of the stock

2. Group/Directors ownership of the stock

3. Broking relationship with company covered

4. Investment Banking relationship with company covered

Companies where there is interest

The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is,

or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. The research analysts, strategists, or research associates principally

responsible for preparation of MOSt research receive compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues.

Analyst Certification

This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary

to law, regulation or which would subject MOSt & its group companies to registration or licensing requirements within such jurisdictions.

Regional Disclosures (outside India)

This report is intended for distribution only to persons having professional experience in matters relating to investments as described in Article 19 of the Financial Services and Markets Act 2000 (Financial

Promotion) Order 2005 (referred to as "investment professionals"). This document must not be acted on or relied on by persons who are not investment professionals. Any investment or investment activity

to which this document relates is only available to investment professionals and will be engaged in only with such persons.

For U.K.

Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United

States. In addition MOSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under

applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOSL, including the products and services

described herein are not available to or intended for U.S. persons.

This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major

institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only

available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange

Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the

U.S., MOSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this

report will have to be executed within the provisions of this chaperoning agreement.

The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-

dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a

research analyst account.

For U.S.

Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial

Advisors Regulations and is a subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed

in Singapore to accredited investors, as defined in the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time.

In respect of any matter arising from or in connection with the research you could contact the following representatives of Motilal Oswal Capital Markets Singapore Pte Limited:

Anosh Koppikar

Kadambari Balachandran

Email:anosh.Koppikar@motilaloswal.com

Email : kadambari.balachandran@motilaloswal.com

Contact(+65)68189232

Contact: (+65) 68189233 / 65249115

Office Address:21 (Suite 31),16 Collyer Quay,Singapore 04931

For Singapore

Motilal Oswal Securities Ltd

2 May 2014

Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai 400 025

Phone: +91 22 3982 5500 E-mail: reports@motilaloswal.com