INDIA MODI-fied – Volume 1: MODI MYTH-OLOGY

India Politics | INDIA MODI-fied Vol 1

INDIA MODI-fied – Volume 1; Gujarat under Mr Modi and what we can infer for India

The Narendra Modi-led government has assumed charge, with a historic mandate after three decades of coalition politics.

Voters seem to have delivered a decisive judgment in favor of resetting India on a path of development. The first signs

emanating point to the new government’s keenness to spend this political capital on making good the promises made,

especially in the areas of infrastructure development, urbanization and agriculture, and in addressing issues related to

investment climate and sectoral bottlenecks. It has also indicated continuance of some of the focus areas of the erstwhile

government, albeit in a modified form, to ensure that the process of change is non-disruptive.

Given the nature of the mandate, the emerging structure of governance and centrality of the role played, it would not be an

exaggeration to term this a MODI-fied era. It is pertinent to look back at this juncture at the track record of the person on

whom India has placed upmost faith. In Volume-I of our “INDIA MODI-fied” series, we track the man, his personal journey so

far, his notable achievements as Chief Minister of Gujarat, both on hard economic parameters as well as in ushering landmark

projects, which have become examples for other states to follow. We have also appended our Gujarat visit notes of 2011,

highlighting the Gujarat story, which has subsequently only grown bigger, raising his stature in the Indian political scene.

Contents

Page No.

1. MODI MYTH-OLOGY

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

2. Gujarat MODI-fied

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

3. Ten showcase projects of Gujarat under Modi

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

4. The Upsurge of Narendra Modi

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

5. Annexure-I: Council of Ministers........................................................................................................... 20

6. Annexure-II: Gujarat – a profile, 2011

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

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

Dipankar Mitra

(Dipankar.Mitra@MotilalOswal.com); +91 22 3982 5405

Ashish Gupta

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

5 June 2014

India Politics | INDIA MODI-fied Vol 1

1 MODI MYTH-OLOGY

Busting some myths through recent Gujarat visit

Please refer to our

comprehensive report

dated September 2011,

containing takeaways

from our Gujarat visit

We visited Gujarat recently to gauge the impressions of key bureaucrats who have

worked with Mr Modi on his much discussed functioning style. It turns out that

many of the impressions (or myths) need correction. We highlight five of these

below.

Myth #1: Narendra Modi prefers to dictate than consult

The bureaucrats we met vouched, “He is misunderstood”. Mr Modi listens to both

concrete ideas and concrete objections. He does not dictate but selects after careful

consideration. For instance, when presented with 10 options for BRT design, he

worked through the night to suggest 10 more.

Myth #2: Narendra Modi would bypass other Ministries and work with

Secretaries

This was strongly contested by the people we spoke with, as something neither

feasible nor likely. The fact that Mr Modi is no longer dependent on the center itself

would make things somewhat easier for him. However, the Ministries would remain

the key decision making units. Yet, Mr Modi is number-1 among equals.

Myth #3: Narendra Modi runs the government through a coterie

The stern message from the bureaucrats we met was, “It is not possible to hobnob

with him”. He meets officials or visitors only with a purpose. That is not the same as

being inaccessible. Mr Modi creates a team by subsuming people with the bigger

vision that he has. And like a good leader, he stands by his bureaucracy for bonafide

mistakes.

Myth #4: Narendra Modi is tilted towards discretion than rules

Among the first things Mr Modi did in Gujarat was to put in place policies related to

every sector, reducing the scope for discretionary action. For example, Gujarat set

up software (a power exchange) to buy power from all producers, thus leaving no

scope even for the Chief Minister to make discretionary power purchases from any

player.

Myth #5: Narendra Modi chases only big ideas

The bureaucrats we met in Gujarat believe Mr Modi is more pragmatic than

idealistic in his decision making. His choice to opt for BRT with a cost of only INR9b

compared to the INR300b metro project for Ahmedabad highlights one such

instance where exigencies of the day were accorded priority over the ideal long-

term solution for city transport. It was conceptualised in the early 2000s, when

Gujarat was facing challenges on multiple fronts and the government had to apply

its limited resources to create situations for an upturn. It is another matter that with

time, the small initiative has turned into a big success, to be replicated in other cities

of India.

5 June 2014

India Politics | INDIA MODI-fied Vol 1

2 Gujarat MODI-fied

Gujarat under Mr Modi scores on core economic parameters



Gujarat under Mr Narendra Modi accelerated its journey towards an industrial and

modern economy. All three sectors – agriculture, industry and services – grew faster

than India. Growth in Gujarat during the slowdown period equaled that of India during

the boom period.



Key to this success was industrial performance that was able to absorb surplus labor

from agriculture, in sharp contrast to the all-India stagnation in industrial

employment. At the heart of its industrial success lie efforts to improve the business

climate culminating into the “Vibrant Gujarat” summit every second year.

Modi’s Gujarat: Faster and stable growth through industrialization



There is a clear break in Gujarat’s growth path post-Modi. While GDP growth

was nearly equal to the all-India level during the eight year period before Mr

Modi assumed office, it jumped to double-digit level during his tenure, a lead of

2.5% over the all-India growth.

More significantly, Gujarat growth was higher in respect of all three sectors

–

agriculture, industry and services.

Agriculture growth increased somewhat during Mr Modi’s

reign, in contrast to stagnant all-India growth

Gujarat

5.8

7.5

India

6.3

GDP growth jumped to double-digit levels during Mr Modi’s

reign, accelerating well past all-India growth

Gujarat

India

10.0

6.4

6.3

3.3

3.1

Before Modi (FY95-FY02)

During Modi (FY03-FY13)

Before Modi (FY95-FY02)

During Modi (FY03-FY13)

Source: Government, MOSL

Industrialization received a big push during Mr Modi’s reign,

with double-digit growth, similar to services sector growth

Gujarat

India

10.6

7.8

6.5

6.2

Services sector growth accelerated further during Mr Modi’s

tenure from an already high level

Gujarat

India

11.0

8.9

8.0

Before Modi (FY95-FY02)

During Modi (FY03-FY13)

Before Modi (FY95-FY02)

During Modi (FY03-FY13)

Source: Government, MOSL

5 June 2014

India Politics | INDIA MODI-fied Vol 1



Agricultural growth accelerated to 6.3% in Gujarat under Mr Modi as compared

with 5.8% during the period before him. In contrast, agricultural growth at the

all-India level decelerated to 3.1% from 3.3% over the same period.

However, it is industrial growth, where Mr Modi’s Gujarat took a leap forward.

Industrial growth jumped to 10.6% from 6.5% earlier in Gujarat as compared

with 6.2%, quickening to 7.8% at the all-India level.

Again, in services, while pre-Modi growth rate at 8% equaled that of all-India, it

jumped to 11% as compared with 8.9% for India during Mr Modi’s regime.

Strikingly, growth during Mr Modi’s stint was not only higher than all India but it

was also more stable, especially during the slowdown phase.

Illustratively, growth rate during the slowdown phase in Gujarat equaled that

during the boom phase at the all-India level.

Key to such growth resilience was the industrial sector, which continued to grow

a high rate of 8.3% during the slowdown phase. More so, services sector growth

in Gujarat at 11.3% during the slowdown phase equaled that during the boom

period, in contrast to the deceleration seen at the all-India level.

Growth during slowdown phase in Gujarat was equivalent to

boom period at the all-India level

Gujarat

11.6

8.7

6.7

India

Gujarat growth has been higher and more stable during

slowdown phase

Gujarat (Avg: 9.7%)

India (Avg: 7.2%)

India (Avg: 8%)

Boom period (FY04-FY08)

Slowdown phase (FY09-FY14)

Source: Government, MOSL

Growth and structural transformation of the economy



The higher growth in industry and services were successful in providing a fillip to

the structural transformation of the Gujarat economy.

The share of industry in Gujarat’s economy increased to 39% from 37% during

the period under Mr Modi while it remained nearly constant at 27% at the all-

India level during the same period.

The share of services too increased to 50% from 45% during the same period.

While the share of services had grown to still higher level of 59% from 51% at

the all-India level, this was more reflective of lagging performance of agriculture

and industry at the all-India level.

As a further proof of undergoing structural transformation in the Gujarat

economy, the share of employment in the industry and services sector increased

at a faster rate than the all-India level. This enabled faster absorption of labor

released from agriculture in Gujarat.

Higher employment opportunities also resulted in much lower unemployment

rate in Gujarat than at the all-India level.

5 June 2014

India Politics | INDIA MODI-fied Vol 1

During Mr Modi's regime, the share of industry increased as

opposed to stagnant share at the all-India level

FY94

FY13 (Modi's last year of office)

FY02 (Modi assumes office)

Services sector share increased too, but to a lesser extent

than the all-India level

FY94

FY13 (Modi's last year of office)

FY02 (Modi assumes office)

Gujarat

India

Gujarat

India

Source: Government, MOSL

During Mr Modi's regime, the share of industrial and services Industrial development paved the way for lower

sector employment increased at sharper rate

unemployment in Gujarat

20 25

FY05

FY12

24 27

2.4

4.4

3.2

2.7

Gujarat

5.7

4.7

All India

Gujarat

India

Rural

Urban

Overall

Source: Government, MOSL

Economic stability indicators in Gujarat equal those of other states



Gujarat under Mr Modi has broadly followed the path of fiscal prudence, just

like other states. Both the revenue deficit and fiscal deficit path of Gujarat under

Mr Modi were similar to other states. This has also led to its outstanding

liabilities declining in consonance with other states.

The poverty ratio too declined in Gujarat in similar measure as the rest of India.

Poverty dropped by 15% in Gujarat from 32% in FY05 to 17% in FY12. At the all-

India level too, poverty ratio declined 15% from 37% to 22%.

Recent CPI inflation trend shows that Gujarat has seen similar extent of inflation

as across India, though urban inflation was a notch lower in Gujarat.

5 June 2014

India Politics | INDIA MODI-fied Vol 1

Gujarat followed fiscal discipline like most states (% of GSDP)

Gujarat RD/GSDP

All States RD/GSDP

Gujarat GFD/GSDP

All States GFD/GSDP

This has resulted in its outstanding debt coming down (% of GSDP)

Gujarat

All-States

-5

-10

Source: Government, MOSL

Decline in poverty ratio in Gujarat is similar to that witnessed Recent inflation trend (CPI index) is a notch lower in Gujarat

at the all-India level

than all-India

FY05

31.6

21.9

16.6

135

FY12

37.2

142

141

137

138

139

Gujarat

All-India

Gujarat

All-India

Rural

Urban

Source: Government, MOSL

Combined

Source: Government, MOSL

Improving business climate and showcasing ‘Vibrant Gujarat’



“Once

upon a time,

Gujarat was the gateway to

the Globe from India. Now

it is becoming the Global

Gateway to India.”

- Narendra Modi



From the above analysis, it would be apparent that the real differentiator of the

Gujarat story under Mr Modi is industrial growth combined with service sector

rejuvenation.

Various initiatives during the period under Mr Modi can be credited with an

improvement in investment climate.

In a recent study conducted by Deloitte under the aegis of Planning Commission,

Gujarat scores high on most parameters of doing business in India.

Specifically, it was on top in terms of ‘finance, tax and regulatory’ issues as well

as ‘other business regulatory’ compliances, including e-governance related

initiatives. However, contrary to wider perceptions, the approvals related to

labor and environment were listed as areas of improvement.

The flagship investors' summit,

Vibrant Gujarat,

conceived to provide a platform

to showcase investment opportunities, government policy initiatives and

investment climate, is held once in every two years, with six such events already

held. The event has also catapulted itself into an ideal platform for other states

and other countries to showcase their strengths, highlight business

opportunities and facilitate knowledge dissemination.

5 June 2014

India Politics | INDIA MODI-fied Vol 1

Gujarat ranked among first three in business environment

Source: Planning Commission, MOSL

5 June 2014

India Politics | INDIA MODI-fied Vol 1

Gujarat ahead in most indicators of doing business

Source: Planning Commission, MOSL

Gujarat ranked among first three in business environment

Source: Government of Gujarat, MOSL

5 June 2014

India Politics | INDIA MODI-fied Vol 1

3 Ten showcase projects of Gujarat under Modi

Creating success stories is an important part of mobilizing opinion and effort in the

direction of development. Under the leadership of Mr Narendra Modi, Gujarat has

pioneered many landmark projects that have subsequently become examples for other

states to emulate. We highlight ten such projects that have changed the face of Gujarat

over the decade. Importantly, a few of them, while initiated by the previous government,

saw their logical end during Mr Modi’s tenure.

1. Interlinking of rivers



Gujarat has only 2% of India’s available surface water, whereas it covers 5% of

its population. Besides, the rainfall patterns in various regions of the state are

uneven and erratic.

Around 71% Gujarat’s land area is water deficit, while 29% area of South and

Central Gujarat has surplus water. The National Water Policy (year 2002)

emphasized that water should be made available to water-deficit areas by

transfer from other areas having surplus water.

Inter-basin transfer of water from Narmada main canal to 11 en-route rivers has

been completed. Besides, under Sujalam Sufalam Scheme, overflowing flood

water from the Kadana dam is being diverted to Panchmahals and the North

Gujarat region.

River basins of Gujarat

Sardar Sarovar Project

Source: Media, MOSL

2. Jyotigram Yojana



Jyotigram Yojana was an initiative to ensure availability of 24-hour three-phase

quality power supply to rural areas of the state and to supply power to farmers

residing in scattered farm houses through feeders having specially designed

transformers.

Under the scheme, (a) 1,847 feeders have been constructed, (b) 56,307km of HT

line and 22,146km of LT line have been laid, (c) 18,724 new transformer centers

have been built, and (d) 1.7m poles have been erected.

5 June 2014

India Politics | INDIA MODI-fied Vol 1



Stockholm International Water Institute (SIWI) has commended the scheme,

saying that it has radically improved the quality of village life, spurred non-farm

economic enterprises, and halved the power subsidy in agriculture.

Source: Media, MOSL

3. Roads



Road density in the state stands at 146km per 0.1m of population, higher than

the all-India average of 126km per 0.1m of population.

Special emphasis was laid on 4 and 6-lane roads that have grown by more than

two and half times from only 394km in 2001 to 1,432km in 2013. Priority was

also accorded to connect the tourism circuits as also villages for providing

market access to farmers.

Roads of Gujarat are considered to be close to international standards as per

World Bank. Besides, a recent report by Independent Evaluation Group (IRG) of

World Bank said that Gujarat state highways’ International Roughness Index (IRI

– the commonly used method worldwide for evaluating quality of road) is better

than the internationally desirable level.

Source: Media, MOSL

5 June 2014

India Politics | INDIA MODI-fied Vol 1

4. Gas grid



Gujarat has the longest gas pipe network in India. It is the only state in the

country where the gas pipeline network is being operated by more than one

player, namely, GAIL (India) Limited (GAIL), Gujarat State Petronet Limited

(GSPL) and Gujarat Gas Company Limited (GGCL).

GSPL acts as a nodal agency and is mandated to to set pipeline network of

around 3,000km in Gujarat. It currently operates a 1,550km pipeline network (a

further 350km is under construction/development), serving consumers in the

Hazira, Vapi, Halol, Bharuch, Vadodara, Ahmedabad, Morbi, Rajkot, Jamnagar,

Mehsana, Himmatnagar and Kutch regions.

Source: Media, MOSL

5. Dholera Industrial Region



Seizing the opportunity thrown up by the Dedicated Freight Corridor and as part

of the plan to develop the Delhi-Mumbai Industrial Corridor, Dholera Special

Investment Region is one of the first attempts to build a self-governed global

manufacturing and trading hub of this scale.

The objective of the scheme was to focus towards creating an enabling

environment to protect local industries, enhance investment climate, improve

quality of life, upgrade human skills, create world class infrastructure and attract

global investment.

The project, with a total area of 920 square kilometers (of which 567 square

kilometers is developable), would comprise of a high-access corridor, world class

infrastructure and connectivity, proximity to airport, sea port, major cities and

other investment regions and smart cities.

5 June 2014

India Politics | INDIA MODI-fied Vol 1

Source: Media, MOSL

6. Solar power



During 2012, Gujarat commissioned a unique 1MW grid-connected canal-top

solar power plant. This was an engineering innovation, as it serves three

purposes: (1) generation of clean energy, (2) reducing 90,000 litres of water

evaporation per year from the canal, and (3) avoiding use of precious land for

the solar power plant.

Gujarat Solar Park is another initiative where a group of solar parks is being

constructed, making Gujarat Asia's largest solar park hub, with 84 developers

registered to build a total of 968.5MW.

Gujarat has also put in place policies related to most sources of sustainable

energy.

Source: Media, MOSL

5 June 2014

India Politics | INDIA MODI-fied Vol 1

7. GIFT city



With India’s service sector offering enormous potential for growth and the need

to provide high quality physical infrastructure to attract tech and finance firms,

Gujarat International Finance Tec-City is an underconstruction central business

district between Ahmedabad and Gandhinagar.

It will be built on 986 acres (3.99 square kilometers) of land and will have a

special economic zone (SEZ), international education zone, integrated

townships, an entertainment zone, hotels, a convention center, an international

techno park, Software Technology Parks of India (STPI) units, shopping malls,

stock exchanges and service units.

Source: Media, MOSL

8. BRTS



While Pune was India’s first city to adopt BRTS and BRTS is currently at different

stages of implementation at 22 cities, it is the Ahmedabad BRTS that has been

widely held as hugely successful.

Starting in October 2009, Ahmedabad BRTS covers 75km (19km under

construction), with 12 lines and 126 stations.

Ahmedabad BRTS was showcased at 2012 United Nations Climate Change

Conference as a 'lighthouse project' as part of the United Nations Secretary

General Ban Ki-moon's Momentum for Change Initiative.

Ahmedabad BRTS would be linked with upcoming Metrolink Express for

Gandhinagar and Ahmedabad (MEGA), which is the proposed mass-transit rail

system for the cities of Ahmedabad and Gandhinagar.

5 June 2014

India Politics | INDIA MODI-fied Vol 1

Source: Media, MOSL

9. Sabarmati riverfront



The Sabarmati Riverfront Development Project is an initiative to develop the

Sabarmati riverfront in the city of Ahmedabad.

In the first phase, a 20km stretch (around 10km already operational) is to be

developed along with reclamation of 162 hectares (400 acres) of the riverbed.

The project includes walkway development, road development along the river,

promenades, garden, construction of 4,000 houses under slum rehabilitation,

amusement parks, golf courses, water sports park, and construction of Kotarpur

Weir.

Source: Media, MOSL

E-governance



A recipient of many awards, the Government of Gujarat has initiated many e-

governance projects aimed at enhancing transparency, efficiency and outreach.

Important initiatives in this regard include SWAGAT (direct grievance redressal

in the presence of Chief Minister), Vishvagram (connecting 13,695 gram

panchayats and 6,000 citizen common service centers, e-Dhara

(computerization of land records), Hospital Management Information System, E-

city (for delivery of municipal services like birth and death registration, building

plans, primary health and education, city cleanliness, water supply, sewage,

roads, street lights, parks and gardens), Integrated Workflow and Document

Management System (IWDMS; for automating government functions and

5 June 2014

India Politics | INDIA MODI-fied Vol 1

processes at all levels of the administrative hierarchy), E-Procurement (for all

purchases

and

procurements

all

government

departments,

boards/corporations and societies), and indeed, many more.

Source: Media, MOSL

5 June 2014

India Politics | INDIA MODI-fied Vol 1

4 The Upsurge of Narendra Modi

Nationalist, service-oriented mindset, diligent, avid reader

Our ideology is that the

Nation is bigger than party.

We will live and die for the

nation. Our ideology is not

about aspiring for posts, it’s

based of sacrifice –

Narendra Modi

Mr. Narendra Modi (17 Sept 1950), son of Mr. Damodardas Mulchand Modi, is the

Prime Minister of India and four-time chief minister of Gujarat. He has been a

member of Rastriya Swayamsevak Sangh (RSS) since his childhood and came into

politics in his adolescence.

Adolescence:

Narendra Modi completed his schooling in Vadnagar. He has done his

Masters in Political Science from Gujarat University. Mr. Modi was a Pracharak

(campaigner) in the RSS during his university years. As a young man, he joined the

Akhil Bhara tiya Vidyarthi Parishad, a student organisation and was involved in the

anti-corruption Nav Nirman ("Reconstruction") Movement.

Seeds of a leader:

He took up the challenging task of energizing the party cadres in

right earnest. In partnership with Shankersingh Vaghela, Mr. Modi set about

creating a strong cadre base in Gujarat. In the initial period, Mr. Vaghela was seen as

a mass leader, while Narendra Modi was recognised as a master strategist.

Narendra Modi used to write a diary but burnt the pages every 6-8 months. One day

a Pracharak saw him doing that and urged him against it; those papers took form of

‘Sakshibhaav’ (in Gujarati), a collection of thoughts of a 36-year-old Narendra Modi.

Man with the Midas touch:

In 2004-05, Kanya Kelavani and Shala Praveshotsav was

initiated with the aim to increase school enrolment, especially among girl students.

In 2006, Annual Krishi Mahotsav kicks-off. These Mahotsavs have revolutionized

agriculture across Gujarat, giving farmers cutting-edge technology, proper guidance

and resources at their doorstep. In 2009, E-Gram, Vishwa Gram Yojana was

launched with the long-term vision to take technology to every corner of Gujarat.

On Oct 31, 2013, the foundation stone for ‘Statue of Unity’ was laid by LK Advani

and Narendra Modi. The ‘Statue of Unity’ will be the world’s largest statue and a

tribute to the Iron Man of India, Sardar Vallabhbhai Patel.

He is known to be a workaholic Chief Minister and an introvert. He is a crowd puller

as a speaker.

Yoga is India’s gift to

humankind through which

we can reach out to the

entire world. Yoga is not

only about Rog Mukti but

also about Bhog Mukti

Narendra Modi … a writer and poet



Narendra Modi is a passionate writer, poet and a lover of culture. Despite his

busy, often punishing schedule, he devotes time for Yoga, writing, interacting

with people on social media etc.

He has been writing since he was young. Apart from penning numerous articles,

poems and essays, he has also authored several books on myriad topics such as

education, nature and his experiences. Mr Modi is a powerful orator, an avid

reader and an original thinker.

5 June 2014

India Politics | INDIA MODI-fied Vol 1

Narendra Modi over the ages

1950

1970

1990

2014

Diligent student

and teenager

RSS calling … NaMo

the organiser

Rise of NaMo:

The leader



Narendra Modi (63) was born

Sept 17, 1950

in the by-

lanes of Vadnagar, a small

town in North Gujarat’s

Mehsana district.



Third of the sixth children of

Damodardas Modi and

Hiraba Modi.



Penchant for debating and

reading in school days. He

would spend hours reading

in the school library.



Had a wide range of friends

from all the communities.



Developed an inclination

towards renunciation and

asceticism from a young age.

He gave up eating salt,

chilies, oil and jaggery.



1967

- At the age of 17,

made an extraordinary

decision to leave home and

travel across India.



Among the places that he

traveled included the

Himalayas (where he stayed

at Garudachatti), Ramkrishna

Ashram in West Bengal and

even the Northeast.



One word that characterized

Narendra Modi and is with

him for the rest of his life is

‘Service’.



1972,

he became a

Pracharak, giving his full time

to the RSS.



He was at the core of the

anti-emergency movement

1975.

He became the

General Secretary of the

Gujarat Lok Sangharsh Samiti

(GLSS), which was formed to

resist tyranny. His primary

role was to coordinate

between the activists across

the state.



Around 1980,

Narendra

Modi was made the

‘Sambhag Pracharak’

(equivalent of a regional

organiser) as an appreciation

of his activism and

organisational work.



He became the General

Secretary in Gujarat BJP in

1987

and was the force

behind organising the Nyay

Yatra in

1987

and Lok Shakti

Yatra in

1989.

Both these

Yatras became a focal point

in the quest for justice for

the people of Gujarat, under

a repressive and corrupt

Congress regime.



1990,

Modi facilitated the

first stretch of the Somnath-

Ayodhya yatra undertaken by

LK Advani.



1995,

Narendra Modi was

in Delhi, working as the

National Secretary of BJP of

five major states in India – a

rare distinction.



Gujarat, at the same time,

was facing successive natural

calamities that combined

with poor relief work

alienated people from BJP.



It was in these trying times

that he was asked to become

Chief Minister of Gujarat in

Oct 2001.



Post Godhra fiasco, assembly

was dissolved and elections

were announced in 2002.



Narendra Modi campaigned

hard but unlike earlier times,

he was the face of the

campaign – a strategy he

adopted again during Lok

Sabha elections. The result

was a spectacular win for BJP

2002

with 127 seats.



In 2012, Narendra Modi

leads BJP to yet another

victory and becomes CM for

the fourth time.



Sep 13, 2013,

Narendra

Modi was named NDA’s

Prime Ministerial candidate

and sworn as PM on

May 26,

2014

with overwhelming

majority.

5 June 2014

India Politics | INDIA MODI-fied Vol 1

Quote Shoot

On 16th May 2014 the people of India gave

their verdict. They delivered a mandate for development,

good governance and stability. As we devote ourselves to

take India's development journey to newer heights, we seek

your support, blessings and active participation. Together we

will script a glorious future for India. Let us together dream

of a strong, developed and inclusive India that actively

engages with the global community to strengthen

the cause of world peace and development

–

Narendra Modi

PM Narendra Modi has chosen an energetic,

promising team that has the potential to fulfil

the aspirations of our people and change the

fortune of our country

–

Kumar Mangalam Birla | CHAIRMAN, ADITYA

BIRLA GROUP

"We have decided to provide

automatic exchange of tax

information with India."

–

Mauritius Prime Minister Navin

Ramgoolam

The key positions, as expected, are with Arun Jaitley,

Rajnath Singh and Nitin Gadkari. Both transport and

shipping are with the same minister and so are power

and coal. I think this is an excellent idea and will

improve coordination as the power ministry cannot

blame the coal ministry and vice versa

–

Deepak Parekh | Chairman, HDFC

The eclectic mix gathered at the

swearing-in ceremony was a

wonderful tribute to the diversity of the

subcontinent. Team Modi definitely has

one of the finest talent mix ever.

–

Harsh Goenka

Chairman, RPG Group

"Your victory rewards your tireless

commitment to serving the people of India. It

recognises your inspirational qualities of

leadership and represents the hopes and

aspirations of the Indian polity,"

–

Mahinda Rajapaksa,

Sri Lankan Prime Minister

Both governments have a strong mandate.

This could help in turning a new page in our

relations…I stressed to Prime Minister Modi that

we have a common agenda of development and

economic revival, which is not possible to achieve

without peace and stability in the region,

–

Nawaz Sharif on India-Pak relations

in the Modi era

We need expeditious action on pending

reforms. Nothing is more energizing than the

govt showing a commitment to act. Labour & land

reforms would bring back investor confidence.

– Pawan Munjal, MD & CEO,

Hero MotoCorp

5 June 2014

Source: Various media articles

India Politics | INDIA MODI-fied Vol 1

5. Annexure-I: Council of Ministers

Sr.

No.

Name of the

minister (Age)

Rajnath Singh (63)

Portfolio

Ministry

Affairs



Home

Brief background



Associated with the Rashtriya Swayamsevak Sangh (RSS) since the age of

13 years

Served as Cabinet Minister, Surface Transport in 1999 and also held

Agriculture & Food Processing ministries from May 2003 till May, 2004

Appointed as the BJP President in 2013

Implemented the National Highway Development Programme (NHDP),

which included the Golden Quadrilateral and the North South East West

corridor



Introduced projects like Farm Income Insurance Scheme and Kisan Call

Centre and also brought down the rate of interest on agricultural loans

from 14-18% to 8%

Arun Jaitley (62)

Ministry of Finance;

Ministry of Corporate

Affairs & Ministry of

Defence



Rajya Sabha member from Gujarat and elected as Leader of the

opposition in Rajya Sabha in June 2009

Appointed Minister of State for Information and Broadcasting

(Independent Charge) in Oct 1999

Also appointed Minister of State for Disinvestment (Independent

Charge), a new Ministry created for the first time. Additional charge of

the Ministry of Law, Justice and Company Affairs in July 2000 following

the resignation of Ram Jethmalani.

Sushma Swaraj (62)

Ministry

Affairs

;

External



Served as Union Cabinet Minister, Information & Broadcasting during

various BJP-led governments at the Centre in 1996, 1998 and 1999-04

Appointed as Union Minister of Health and Family Welfare and

Parliamentary Affairs from Jan 2003 till May 2004

Declared production and distribution of films as an industry, which

made them eligible for finance from financial institutions

As Health Minister, set up six AIIMS (All India Institute of Medical

Sciences) at Bhopal (MP), Bhubaneshwar (Odisha), Jodhpur (Rajasthan),

Patna (Bihar), Raipur (Chhattisgarh) and Rishikesh (Uttarakhand).

Venkaiah Naidu (64)

Ministry

Urban



Bachelor’s Degree in Politics & Law with specialization in International

Law

National President of the BJP from 2002 to 2004

Union Cabinet Minister for Rural Development in the Vajpayee

government

Aggressively pushed for reforms in Rural development and introduced

many schemes such as the ‘Pradhan Mantri Gram Sadak Yojana’

Development; Ministry

of Housing and Urban

Poverty Alleviation and

Ministry

Parliamentary Affairs

Ministry

Overseas Indian Affairs

5 June 2014

India Politics | INDIA MODI-fied Vol 1

Nitin Gadkari (57)

Ministry of Road

Transport and

Highways; Ministry of

Shipping

Ministry of Rural

Development; Ministry

of Panchayati Raj and

Ministry of Drinking

Water and Sanitation



Promoted to National President of BJP in 2010, holding the position till

2013

Has never held a Union ministerial portfolio but has served as Minister

for Public Works in the BJP-Shiv Sena government in Maharashtra

Widely credited with the inception and swift execution of major road

projects like the Mumbai-Pune expressway

Established Maharashtra State Road Development Corporation (MSRDC)

through which funds were raised from open market for infrastructure

projects for the first time in India



Showed strong support for privatization in the infrastructure areas and

pioneered the Public Private Partnership (PPP) model of infrastructure

projects

Harsh Vardhan (59)

Ministry of Health and

Family Welfare



An MBBS and MS in otolaryngology from Kanpur college

Pioneer of Pulse Polio Programme, which he launched first in Delhi in

1993, which was then adopted throughout India

Has won all 5 Delhi Legislative Assembly elections since 1993

Former Union Railway Minister in 1996

Union Minister for Communications in NDA government from 1999 till

2001, following which he was shifted to the Coal Ministry, a portfolio he

held till April, 2002

Ram Vilas Paswan

(67)

Ministry of Consumer

Affairs, Food and

Public Distribution



Minister for Chemicals and Fertilizers and Minister of Steel in the first

Congress-led UPA government

Uma Bharati (55)

Ministry of Water

Resources, River

Development and

Ganga Rejuvenation



Held various state-level and cabinet level portfolios of Human Resource

Development, Tourism, Youth Affairs & Sports, and finally Coal & Mines

in the BJP-led NDA government from 1999 till 2003

Maneka Gandhi (57)

Ministry of Women

and Child Development



Became India’s youngest minister in the Janata Dal government holding

the Ministry of Environment & Forests in two successive governments

Introduced legislations such as Coastal Zone Regulation Act and The

Public Liability Act for Hazardous Chemicals

Served as Minister for Social Justice and Empowerment in 1999-2004

Instrumental in creating India’s Animal Welfare Ministry - a first in the

world, and serving as its first Minister

Also served as Minister for Culture and Minister for Programme

Implementation

5 June 2014

India Politics | INDIA MODI-fied Vol 1

10.

Sadananda Gowda

(61)

Ministry of Railways



Appointed as Chief Minister of Karnataka in August 2011

Introduced various schemes such as Sakaala, aimed at providing time

bound services at government offices

11.

Najma Hepatullah

(74)

Ministry of Minority

Affairs



Grand niece of prominent freedom fighter Maulana Abdul Kalam Azad

Deputy Chairperson of the Rajya Sabha twice- January, 1985 to January,

1986 and 1998 to 2004

Joined BJP in 2004 and was named as head of the Indian Council of

Cultural Affairs, leading many Indian delegations abroad

12.

Kalraj Mishra (73)

Ministry of Micro,

Small and Medium

Enterprises



As Minister of Public Works and Tourism, he formulated the Road

Development Policy in Uttar Pradesh

Several link roads were constructed in a number of villages under the

Dindayal Link Road Scheme’

13.

Anant Kumar (54)

Ministry of Chemicals

and Fertilizers



Won six consecutive Lok Sabha terms from the Bangalore South

constituency

Served as Minister of Civil Aviation, Tourism, Sports & Youth Affairs,

Culture, Urban Development and Poverty Alleviation during the NDA

government from 1999 to 2004

14.

Ravi Shankar Prasad

(59)

Ministry of

Communications and

Information

Technology; Ministry

of Law and Justice



Earned BA Hons, MA (Political Science) and LLB degrees from Patna

University and practiced as a Patna High Court and Supreme Court

advocate



Served as Minister of State (Coal and Mines) in 2001 and accelerated

the reforms process in mining and coal sector

Was given additional charge of Minister of State in Ministry of Law and

Justice in July 2002. Within a fortnight had prepared a bill amending the

Representation of People Act.



15.

Ashok Gajapathi

Raju (63)

Ministry of Civil

Aviation



Sped up the process of fast-track courts

Comes from Pusapati Royal family

Held the Excise Minister and Commercial Taxes and the Finance and

Legislative and the Revenue ministries in the Andhra Pradesh

government

16.

Anant Geete (62)

Ministry of Heavy

Industries and Public

Enterprises



MP from Maharashtra's Raigad

Served as former union minister of power in the previous NDA

government from Aug 2002 to May 2004

Also Chairman of the Committee on Chemicals and Fertilizers and

Member of Committee on Petitions in 2004

5 June 2014

India Politics | INDIA MODI-fied Vol 1

17.

Harsimrat Kaur

Badal (47)

Ministry of Food

Processing Industries



Married to the Deputy Chief Minister of Punjab, Sukhbir Singh Badal

Started a project named "Nanhi Chhan" (innocent lives), a movement to

save girl child and trees

18.

Narendra S Tomar

(57)

Ministry of Mines;

Ministry of Steel and

Ministry of Labour and

Employment



Two-time MP Served as Cabinet Minister in Madhya Pradesh

government between 2003-07 and was later tasked to head the state

party unit in November 2006

19.

Jual Oram (53)

Ministry of Tribal

Affairs



Worked for about six years in a public sector company with his diploma

in electrical engineering before joining politics

A firebrand tribal leader who created history by becoming India's first

tribal affairs minister in Vajpayee government

Presently national vice-president of BJP; has held several important

posts including MLA and MP

A five-term MP from Motihari, Bihar since 1989

Bihar unit chief from 2006 to 2009 and BJP's Kisan Morcha Vice-

President and incharge of Uttar Pradesh and Uttarkhand units

Served as member of various committees on ministries of Railways,

Communications, Petroleum and Natural Gas, Surface Transport and

External Affairs

20.

Radha Mohan Singh

(64)

Ministry of Agriculture



21.

Thawar Chand

Ghelot (66)

Ministry of Social

Justice and

Empowerment



Rajya Sabha member and BJP’s national general secretary

Has held several positions in Madhya Pradesh and was also head of

BJP’s Scheduled Castes Cell

Deputed as the central observer of the party for Gujarat and is

considered close to Modi

22.

Smriti Irani (38)

Ministry of Human

Resource Department



Popular television actress till the mid-2000s before she shifted her focus

to politics

Served as All India President of the BJP Mahila Morcha and raised

various issues like women empowerment in Indian Military and crime

against women

NA: Not available; Source: Various media reports, MOSL

5 June 2014

India Politics | INDIA MODI-fied Vol 1

Minister of States (MoS) (Independent charge)

Name of the minister

Portfolio

(Age)

Dharmendra Pradhan

MoS (Ind charge) of

(44)

Petroleum and Natural Gas

Brief background



A post graduate in Anthropology from Utkal University in Odisha

Rajya Sabha MP from Bihar

A vocal opponent of religion based reservation in jobs

Organisational in-charge of party affairs in the states of Karnataka, Uttarakhand,

Jharkhand and Odisha

Prakash Javadekar (63)

MoS (Ind charge) of



Information and Broadcasting;

MoS (Ind charge) of



Environment, Forest and

Climate

Change and MoS of

Parliamentary

Affairs

Nirmala Sitharaman (54)

MoS (Ind charge) of



Commerce and Industry; MoS



of Finance and Corporate



Affairs

Was a member of the Maharashtra Legislative Council for two terms from 1990

to 2002 before being elected to Rajya Sabha in 2008

Former banker; has been awarded “Sir Purshottam Das Thakur Memorial"

National Award, for research papers on ‘Rural Development & Banks role in co-

ordinated approach’

Works as part of a team of six spokespersons headed by Ravi Shankar Prasad

Likely to be nominated to the Upper House by BJP

Former member of National Commission for Women

Piyush Goyal (49)

MoS (Ind charge) of Power;



MoS (Ind charge) of Coal and

MoS (Ind charge) of New and



Renewable Energy

Strong academic record with all-India second rank holder Chartered Accountant

and second rank holder in Law in Mumbai University

Participated in Leadership Programs at Yale University (2011), Oxford University

(2012) and Princeton University (2013) and is currently pursuing the Owner /

President Management (OPM) Program at Harvard Business School

Well-known investment banker; advised top corporates on management

strategy and growth; also served on the Board of the State Bank of India and

Bank of Baroda.



Nominated by the Government of India to the prestigious Task Force for

Interlinking of Rivers.

Source: Various media reports, MOSL

5 June 2014

6. Annexure-II: Gujarat – a profile, 2011

the

26 September 2011

olicy

aker

Insights from bureaucrats

Gujarat: In full throttle on all fronts

Industrialization, Innovation, Inclusion



Recently, we visited Gujarat and interacted with several key policy

makers led by the state CEO himself, Chief Minister Mr Narendra Modi.

Starting off as a predominantly industrialized state, we believe Gujarat

has now laid the foundation for many years of balanced development.

Combined this with the Gujarati entrepreneurial spirit and you have a

formidable growth engine – a shining role model for 'India Shining'.

Special report: Gujarat

The Inside Story

Summary findings and assessment

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

Chief Minister Speak

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

3-4

Industry:

Growth SIR-ge .......................................................................................................................

5-12

Agriculture:

Marrying the micro and the mega ......................................................................................

13-16

Services:

Eyeing the GIFT facelift .........................................................................................................

17-18

Annexure:

Gujarat state profile ............................................................................................................

20-21

Dipankar Mitra

(Dipankar.Mitra@MotilalOswal.com) +91 22 3982 5405

olicy

aker

Gujarat: In full throttle on all fronts

Industrialization, Innovation, Inclusion

Growing at 2-2.5% higher than all-India average with 20%

higher per capita income, Gujarat has chalked out a two-

pronged strategy for the next phase of its growth boom:

1) Capitalize on its existing strength of industry and

entrepreneurship; and

2) Achieve new breakthroughs in agriculture and services

sectors.

the

Services: Eyeing the GIFT facelift

IT and finance remained the only gap facing the state in

the gamut of the service sector activities. This is now being

corrected with the GIFT City initiative that is a globally

benchmarked international financial centre (IFC) which,

when completed, would be many a multiple of scale

compared to global peers.

Industry: Growth SIR-ge

Gujarat's successful industrialization drive owes a lot to:

(1) facilitating role played by the government by way of

simplified procedures, investment platforms such as

Vibrant Gujarat, etc, which helped in reduction in

transaction costs for business, and

(2) effective resolution of a key issues involving land, water,

environment and labour.

Now, Gujarat is poised to push the boundaries of industrial

development to higher orbit in different phases e.g.



SIR-ging scale:

Making the most of the Central sector

projects like Dedicated Freight Corridor (DFC) and Delhi

Mumbai Industrial Corridor (DMIC), Gujarat has now

have initiated planned industrial development of special

investment regions (SIR). One such SIR at Dholera is

planned to surpass Shenzhen China in its scale.



Energetic turnaround:

On the energy front, Gujarat

has scripted a remarkable turnaround story in SEB

(state electricity board) finance without major increase

in power tariff while at the same time ensuring 24x7

power supply to each village and town of Gujarat.

Our assessment: Industrialization,

Innovation, Inclusion



From industrialization by default …:

We see a

fascinating story in Gujarat. Inherent natural

disadvantage (of infertile land and lack of irrigation)

and advantage (of mines and ports) led to Gujarat

choosing an industrialization-based growth model

almost by default.

… to innovation by design …:

But then, it ushered

in several landmark innovations in diverse areas e.g.

establishment of a gas grid, interlinking of rivers,

industrial zoning and investment regions, push to PPP,

turnaround in the co-operative system, corporatization

of SHG model, cattle care to improve livestock,

promotion of clean energy, environmental regeneration,

etc.

… and inclusion by diligence:

And now, Gujarat is

increasing focus on various social indicators including

skill improvement of the workforce, women

empowerment, lower mortality rates, large scale

plantation, etc. While rapid growth helps address these

issues in part, efforts are needed to upscale the state's

flagship programs to a comprehensive framework of

social sector improvement.

Shining role model for 'India Shining':

Together

with the many initiatives of scale that only Gujarat can

possibly think now, the foundation is being laid for many

years of balanced development. Combined this with

the Gujarati entrepreneurial spirit and you have a

formidable growth engine - a shining role model for

'India Shining'.



Agriculture: Marrying the micro & the mega



Completion of the command area development of the

mega Sardar Sarovar project by FY15 would raise gross

irrigated area from 30% to 46% of gross cropped area.

Further, it would help reap 81% of the ultimate irrigation

potential (currently 53%) and nearly achieve full

potential (93% v/s 56% at present) so far as irrigation

through surface water is concerned.

This comes on top of a close to double digit growth for

nearly a decade on the back of cumulative efforts

towards micro irrigation, water conservation and soil

improvement.



26 September 2011

olicy

aker

Chief Minister Speak: Mr Narendra Modi

Tale of 3 B's: Business-like, Best practices, Balanced growth

the

Mr Narendra Modi

Chief Minister, Gujarat

Three biggest challenges while assuming office

(1) Earthquake, (2) Drought (both in 2001), and (3) Failure of Madhabpura Co-operative

Bank along with 123 other urban co-operative banks. The entire administrative machinery

was pooled together to deal with the first two situations along with common people. Against

the World Bank' estimate of seven-year average time to recover from an earthquake of that

magnitude, Gujarat turned around in three years flat. Rainfall was good next year to solve

the water problem. However, to restore credibility of co-operative movement, some harsh

decisions needed to be taken (including banning loans to Directors, 50% cut in staff strength

and 50% cut in salary). Such unpopular steps were taken even in the face of impending

election in 2002, but eventually the sector turned up again.

Governance cynicism is overdone

Rules should leave

minimum scope

for grey areas

Reemphasised that the currently prevailing cynicism regarding widespread corruption, failure,

and lack of governance is overdone. Underscoring the need for positive thinking, the CM

drew attention on Gujarat as a role model for governance. Rules should leave minimum

scope for grey areas.

Investment in agricultural is critical

India is primarily an agricultural economy, and real wealth is generated in rural areas. The

agricultural investment in 11th Five-Year Plan (ending FY12) failed to keep pace with inflation.

Farmers are under stress and this is not sustainable.

Skill-oriented education

It is true that only 13% of the people in Gujarat migrate from elementary education to

higher education. But higher education is not necessary for everyone - the focus should be

on skill development. The government has identified about 976 such skill sets that are

required to live through in every village; these have been grouped and skill centres established.

At all stages, dignity of labor needs to be maintained.

Higher education is not

the focus should be on

skill development

necessary for everyone -

Cross-pollination of ideas among states

Gujarat bureaucrats are constantly on the look-out for best practices of various states that

are relevant to Gujarat. Every year, one state is invited to Gujarat to present its best practices.

Likewise, several states visit Gujarat regularly to understand its programs and the best

practices. Visits happen at all levels, central/state officials, MPs, MLAs, political party leaders,

etc. It is only a matter of time before some of these good practices get adapted and

implemented. However, no one state can fully replicate the model of another. Even within

Gujarat, in the initial stages, the development model for the city of Bhavnagar had to be

thought through differently than that for Ahmedabad.

No one state can fully

another. Even within

Gujarat, the

replicate the model of

development model for

Bhavnagar is different

than that for

Ahmedabad

26 September 2011

olicy

aker

the

The culture of business

In Gujarat, PSUs and

even the government

approach

itself have a business-like

In Gujarat, PSUs and even the government itself have a business-like approach. This ensures

viability of projects undertaken and infuses professionalism. Besides, in Gujarat, PSUs are

both encouraged and induced to deliver on their corporate social responsibilities as well.

Other issues



Compulsory voting needs

to be seriously

considered as we are too

concerned about our

about our duties

rights but too negligent



Teamwork and motivation:

His team motivates him and he in turn motivates them.

Besides, regular interactions in informal setting help achieve breakthroughs in many

critical decisions.

GST and Lokpal:

Federal system of India ensures autonomy to states and this should

not be altered. A Lokpal system needs to be introduced.

Compulsory voting:

Compulsory voting needs to be seriously considered as we are

too concerned about our rights but too negligent about our duties.

Sports:

Cited how China has banned telecasting cartoons on TV so that kids engage in

sports. Gujarat government has taken several steps in sports including popularization

of chess.

Failure:

Despite good performance, the media does quite often portray a negative

image. However, such negative publicity has served the opposite end with Gujarat getting

established as a benchmark for other states.

Examples

1) Milk wastage:

Nearly 20% of milk used to get wasted due to lack of refrigeration in

the production and distribution chain. This was corrected through the Jyotigram scheme

which ensured 24x7 electricity in all villages, and installation of small chillers for

transportation. This led to 66% higher realization too much extra effort.

2) Livestock improvement:

Gujarat is perhaps the only state to organize camps for

cataract operations and dental treatment of cattle.

3) Mission Mangalam:

Through Mission Mangalam, 150,000 self-help groups have

been connected to 2.2m members, primarily women, in the BPL segment (below

poverty line). It's now been converted into INR10b company now and plans to grow

to INR50b by 2014. Each partner of the company, viz., the government, NGOs and the

corporate brings in a unique set of skills for the success of the program.

Small initiatives

reap big benefits

26 September 2011

India Politics | INDIA MODI-fied Vol 1

NOTES

5 June 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 | INDIA MODI-fied Vol 1

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

5 June 2014

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

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