It is for India to take advantage of a sea of US goodwill
By Ven Parameswaran
The US has recommended that India must get rid of Jaish-e-Mohammed and Lashkar-e-Taiba thru surgical strikes. It is implied that once India decides, both the U.S. and India would jointly formulate military strategy and execute it.
Pakistan sponsored Jaish-e-Mohammed, a terrorist organization, killed 41 Indian para military personnel on February 14th. Immediately upon hearing the news, a chain of successive events took place in Washington D.C. The Secretary of State and the National Security Adviser issued statements of strongest support to India. This was followed by discussion on the situation in the U.S. Senate and the U.S. House of Representatives. All important and leading senators and congressmen/women condemned Pakistan and extended political support to India. The Chief of the US Central Command, General Joseph Votel gave his assessment to the Congress and offered support to India.
The US has recommended that India must get rid of Jaish-e-Mohammed and Lashkar-e-Taiba thru surgical strikes. It is implied that once India decides, both the U.S. and India would jointly formulate military strategy and execute it. Indian Ambassador Shringla said: “The designation of India as a Major Defense Partner was also codified into law by the US Congress in the National Defense Authorization Act of 2017, thanks to the unstinted support of the members of the India Caucus.”
President Trump has been demanding that Pakistan dismantle all terror cells and organizations inside Pakistan. He is the first US President to cancel military aid to Pakistan. Prime Minister Imran Khan of Pakistan has been wanting to meet President Trump to seek support for loans from the I.M.F. President Trump has told him that unless he gets rid of all terror outfits and terrorists from Pakistan, he would not support Pakistan’s request.
Pakistan was defeated by India in three conventional wars. India defeated Pakistan in its third war and Pakistan lost East Pakistan. Since then, Pakistan has been using the homegrown terrorist organizations, such as Jaish-e-Mohammed; Lashkar-e-Taiba; and others as proxy to fight India. This resulted in attacks on the Indian Parliament, , New Delhi shopping mall, and the City of Mumbai that killed 165 Indians and foreigners.
Pakistan is controlled by its military and the I.S.I., its intelligence agency. The military has selected its Prime Minister and therefore the Parliament is a joke. Because India so far has not retaliated, Pakistan has taken advantage and continues to use the terrorists to attack India.
India’s new Ambassador to the U.S.A., Harsh Vardhan Shringla after presenting his credentials to President Trump was given the most enthusiastic reception at the Capitol Hill. This was attended by more senators and congressmen/women than ever before. The grand reception given to Ambassador Shringla is a reflection of India-US relations, with India now branded as “CLOSEST ALLY”. The chain of events in Washington after Pakistan’s attack in Kashmir reinforces President Trump’s new policy towards South Asia. India should be pleased because the “CLOSEST ALLY” status has bipartisan support. It is time for India to take full advantage of the US support and draw up a plan to end the scourge of terrorism from inside Pakistan.
(The author, in the U.S. for 65 years, lives in Scarsdale, N.Y. He is a Senior Adviser to Imagindia Institute, New Delhi, a think tank. He can be reached at vpwaren@gmail.com)
Sources at the UN said the UNSC statement was released after prolonged Security Council negotiations.
UNITED NATIONS(TIP): The United Nations Security Council (UNSC) on Thursday, February 21, issued a statement condemning the Pulwama attack and underlining the need to hold those responsible, accountable. Significantly Jaish-e-Mohammed (JeM) has been named on the statement as having taken responsibility for the attack.
“The members of the Security Council condemned in the strongest terms the heinous and cowardly suicide bombing in Jammu and Kashmir, which resulted in over 40 Indian paramilitary forces dead and dozens wounded on February 14, 2019, for which Jaish-e-Mohammed has claimed responsibility,” the statement said.
Sources at the UN said the UNSC statement was released after prolonged Security Council negotiations. China had wanted additional time to think it through as it had some concerns, they said. France is also working, in parallel, to sanction JeM chief Masood Azhar at the UNSC. Similar action against Azhar in 2017 was blocked by China (India had moved the 1267 Sanctions Committee to ban Azhar twice before in 2009 and 2016). On Tuesday, UN Secretary General António Guterres had called on India and Pakistan to defuse tensions and for “meaningful mutual engagement.”
Condemning terrorism in all its forms as one of the most serious threats to international peace, the UNSC offered its condolences to those impacted by the attack.
“The members of the Security Council expressed their deepest sympathy and condolences to the families of the victims, as well as to the Indian people and the government of India and wished a speedy and full recovery to those who were injured,” the statement said.
In what appears to be a thinly veiled reference to Pakistan, the Council has asked countries to cooperate actively with the Government of India.
“The members of the Security Council underlined the need to hold perpetrators, organizers, financiers and sponsors of these reprehensible acts of terrorism accountable and bring them to justice, and urged all States, in accordance with their obligations under international law and relevant Security Council resolutions, to cooperate actively with the Government of India and all other relevant authorities in this regard,” the statement read.
“The members of the Security Council reiterated that any acts of terrorism are criminal and unjustifiable, regardless of their motivation, wherever, whenever and by whomsoever committed. They reaffirmed the need for all States to combat by all means, in accordance with the Charter of the United Nations and other obligations under international law, including international human rights law, international refugee law and international humanitarian law, threats to international peace and security caused by terrorist acts,” it said.
India withdraws Most Favored Nation status given to Pakistan
United Nations and US condemn the attack
Police say the 21-year-old suicide bomber driving the explosive-laden vehicle was Adil Ahmad from Kakapora in Pulwama who joined the JeM in 2018
SRINAGAR(TIP): At least 40 CRPF personnel were killed in Jammu and Kashmir’s Pulwama district on February 14 (Thursday) when a Jaish-e-Mohammed terrorist rammed an explosives-laden vehicle into the bus they were travelling in, one of the worst terror strikes in the state in recent years, officials said.
More than 2,500 Central Reserve Police Force personnel, many of them returning from leave to rejoin duty in the Valley, were travelling in the convoy of 78 vehicles when they were ambushed on the Srinagar-Jammu highway at Latoomode in Awantipora.
Police said the terrorist driving the suicide vehicle was Adil Ahmad from Kakapora in Pulwama who joined the JeM in 2018.
The terror group has claimed responsibility for the attack that took place about 30 km from Srinagar, they said.
Over 20 people were injured in the terror attack, which reduced the bus to a mangled heap of iron. Body parts could be seen strewn around the area.
“It was a large convoy and about 2,500 personnel were travelling in multiple vehicles. Some shots were also fired at the convoy,” CRPF DG R R Bhatnagar told PTI.
National Security Advisor (NSA) Ajit Doval is monitoring the situation in Kashmir, said sources. Senior CRPF officials are also briefing him about the developments.
The convoy started from Jammu around 3.30 am and was supposed to reach Srinagar before sunset, officials said.
The number of personnel travelling back to the Valley was high as there was no movement on the highway for the last two to three days because of bad weather and other administrative reasons, they said.
Usually, about 1,000 personnel are part of a convoy. A road opening party was deployed, and the convoy had armored counter-terror vehicles, officials said. Forensic and bomb analysis teams are on the spot.
The bus that was the focus of the attack belongs to the 54th battalion of the force and had 44 personnel on board, officials said.
CRPF Inspector General (Operations) in the Kashmir Valley Zulfiqar Hasan described it as a “vehicle-bound attack” and said Jammu and Kashmir Police has taken up the investigation.
“Governor Satyapal Malik observed forces responsible for the insurgency in J&K are desperate & frustrated and just want to prove presence. Visibly it seems to be guided from across the border as Jaish-e-Mohammad has claimed responsibility,” said J&K Raj Bhawan PRO on the terror attack.
Rajnath, who will visit Srinagar on Friday, has also spoken to Satyapal Malik. Home Minister Rajnath Singh has already spoken to DG CRPF RR Bhatnagar over the terror attack.
“Senior officers at the spot, the investigation is underway. Injured being taken care of. There were 2500 personnel in the convoy,” said Bhatnagar.
Condemning the attack, Union Minister Arun Jaitley said, “attack on CRPF in Pulwama is cowardice & a condemnable act of terrorists. Nation salutes martyrs & we stand united with families of martyrs. We pray for the speedy recovery of the injured. Terrorists will be given an unforgettable lesson for their heinous act.”
In the attack on the Uri military base in September 2016, JeM militants killed 18 Army jawans and injured dozens of others.
Experts of the anti-terror commando force National Security Guard (NSG) and investigators of the National Investigation Agency (NIA) are being sent to Jammu and Kashmir to join the probe into the terror attack in Pulwama in which at least 39 CRPF personnel were killed, officials said Thursday, Feb 14.
The January 2019 MOTN predicts that if an election were held now, the NDA tally would drop by 100 seats from the 336 seats it got in the 2014 election. The BJP would be the single largest loser in the alliance with the number of seats dropping as much as 80 from 282 in 2014 to 202 now.
By Ven Parmeswaran
I wrote on December 19, 2018 that the next general election in India may result in a hung parliament. As things stand today, one can predict no party will be able to win a majority. A hung Parliament looks imminent as both the ruling NDA and challenger UPA fail to reach the majority mark of 272 by a distance. The NDA remains the biggest political alliance, with the BJP emerging as the single largest party. This is the stunning conclusion of the India Today Group-Karvy Insights biannual Mood of the Nation (MOTN) survey conducted between December 28, 2018, and January 8, 2019. This MOTN is significant as it comes barely four months before the general election.
It must be pointed out that it is the first time since Modi came to power in May 2014 that an MOTN poll is predicting that the NDA will not cross the majority mark. It confirms the declining trend in its fortunes that these surveys have recorded in the past two years with the NDA and the BJP progressively losing ground.
The January 2019 MOTN predicts that if an election were held now, the NDA tally would drop by 100 seats from the 336 seats it got in the 2014 election. The BJP would be the single largest loser in the alliance with the number of seats dropping as much as 80 from 282 in 2014 to 202 now. In such an eventuality, the NDA would have to scout for other partners to garner a majority and there could also be doubts about Modi emerging as the consensus candidate to head the coalition government.
While the opposition may rejoice at having put the NDA and Modi on the mat, the survey also reveals that neither the Congress-led UPA nor any other Opposition alliance will be in a position to form the government on their own. The UPA is likely to multiply its tally by three times, according to this survey, from 59 in 2014 to 166. That is still 106 shy of a majority. And the rest of the opposition, that includes the Samajwadi Party, Bahujan Samaj Party, the AIDMK (Tamil Nadu) and dozen others, will get the remaining.
For many voters, such a fractured mandate and the political uncertainty it spells is a disconcerting scenario. That is why Modi and the BJP have been hammering home the need for voters to give them a full majority or, as they warn, the country could be plunged into chaos.
THE SINGLE BIGGEST FAILURE OF MODI IS HIS INABILITY TO CREATE ADEQUATE NUMBER OF JOBS.
Lack of jobs rank 34%; Rising prices 20%; Demonetization 14%; Farm Subsidies 7%; Ineffective Implementation of GST 7%; Agrarian distress 5%; and Crisis in the CBI 2%.
THE VOTERS WILL BE ASKING: “Is India better off today than 5 years ago?”
Failure of Prime Minister Modi to create 10 million new jobs per year has changed the public opinion against his government.Modi could have done what the Congress failed to do, that is to emulate China. Modi failed to liberalize India’s economy to attract sizeable foreign private investment. Modi could have built modern infrastructure and built large scale factories to produce consumer and industrial goods for export. President Trump, after winning the election offered India “closest ally” status on a par with the U.K. India has a comparative advantage over China and if India had the capability and the capacity to produce consumer goods, the US was ready to replace China. Failure of Modi to embrace President Trump’s offer may cost him in the coming election.
Modi by overemphasizing Hindutva and not being fair to the minorities,has invited severe opposition of Christians, Muslims, Sikhs. In addition, 300 million Dalits are unhappy , giving a great political opportunity to the leader of BSP, Mayavati. Killing of cows and serving beef in restaurants were banned, but India is the largest exporter of beef meat in the world to the tune of $5 billion.
The Demonetization created severe hardships to the vast majority of Indians living from hand to mouth with cash economy.
Modi failed to privatize public sector corporations.He has failed even to sell the most inefficient Air India which is running at a heavy loss.
On his inauguration, Modi invited the heads of all neighbors, signaling development of better relations. That was just a photo opportunity. His foreign policy towards India’s neighbors failed miserably. China capitalized on the opportunity. China has almost taken over Nepal, and its influence in Sri Lanka, Maldives, Bangladesh, Sikkim, and Bhutan is a huge setback for India. Modi also failed to deal with Pakistan, which has refused to mete out justice to the terror organizations Lashkar-e-Taiba and its leaders. Though President Trump requested India to influence and help Afghanistan, Modi has nothing new to show.
Today, the public opinion is against Modi’s government on the administration of coming elections. There have been reports of computer tampering, manipulating computers to suit the goals of BJP and other irregular methods. The public has lost confidence in Modi government in running a fair and just election.
The Achilles’ heel of Modi and the NDA, though, lies in the widespread farmer unrest, rural distress and the perceptible lack of jobs.
The UPA and the other opposition partners, especially BSP (Mayavati) are bound to push the knife deeper in o these three big issues. Large sections of people have been pushed to the margins by a series of blows dealt to the economy, including demonetization and GST. This will determine the course of the coming election.
If Rahul Gandhi and his party have surged ahead in the ratings, it is because he has successfully mobilized public opinion on these issues. The recent wins of Congress in the Hindi heartland states of Rajasthan, Madhya Pradesh and Chhattisgarh are an indication of the traction Rahul has been able to get. But the Congress President will not be able to win by just running down Modi’s performance. He will also need to come out with a convincing enough vision of how he plans to put the nation on a high grown path, apart from maintaining peace and harmony.
U.P. being the largest State with 80 parliamentary seats, is surely more important than other States. Mayavati has already formed coalition with Samajwadi Party. Thus, this coalition should be able to challenge Modi’s B.J.P. The Congress and the Muslims are also challenging Modi. The result may be shocking on for . BJP which may have to to accept a very small number of seats from U.P.
I am getting the impression that almost all parties are opposed to Modi except BJP ruled states. West Bengal with the leadership of Mamata Banerjee; Tamil Nadu; Karnataka; Kerala; Andhra Pradesh and other States could mount a formidable opposition to Modi.
In a hung Parliament, the President will be forced to accept any leader who can attract enough coalitions to create a majority. Although Modi may try, he has severe competition from Mayavati and other non-Congress leaders. The big question between now and the general election is : can Modi do anything to turnaround the precarious situation he is in?
(The author is a Senior Adviser to Imaagindia Institute, a think tank in New Delhi. He lives in Scarsdale, New York. He can be reached at vpwaren@gmail.com)
Addressing House, heaps praise on govt on triple talaq, surgical strikes
NEW DELHI(TIP): Ahead of the Lok Sabha elections, President Ram Nath Kovind, on January 31, defended the BJP government’s controversial decisions, from Rafale jet purchase and demonetization to GST implementation, saying the government had commenced its journey towards building a “New India”.
His hour-long Address to the joint sitting of Parliament marked the start of Budget Session with PM Narendra Modi, former PM Manmohan Singh, BJP chief Amit Shah and Congress president Rahul Gandhi in attendance. Gandhi debuted in the front rows.
The President used the occasion to hail demonetization as “a defining moment in the government’s war on corruption and black money”; term the GST a “means to establish an honest system of trade”; call surgical strikes India’s “new policy and strategy”; and laud Rafale jets as ultra-modern aircraft that will strengthen India’s strike capability.
The speech also lavished praises on government’s recent legislative moves, including the controversial Citizenship Amendment Bill that the Opposition is questioning, Triple Talaq Bill, death penalty for aggravated child sexual assault and the new law on 10 per cent quota for General Category poor in education and public jobs. The Address drew thunderous applause from the ruling MPs when the President mentioned Rafale jet induction into the IAF and surgical strikes by the Army.
On both occasions Opposition leaders Rahul Gandhi, Manmohan Singh and Ghulam Nabi Azad sat unamused as the Congress continues to question the government over Rafale fighter jets deal, demonetization and GST.
The President said: “The (demonetization) decision struck at the very root of parallel economy thriving on black money and the money outside the formal system was brought within the ambit of nation’s economy… and broke the back of the forces destabilizing the country and the systems sustaining the flow of black money.”
Listing other achievements of the government, including women-centric schemes like Mudra loan, Swachh Bharat and Pradhan Mantri Ujjwala Yojana besides Ayushman Bharat for cashless medical care, Kovind said the “new India” vowed by the BJP-led NDA government had no place for “imperfect, corrupt and inertia-ridden systems”.
On Rafale fighter jets purchase, he said, “My government believes that neglecting the country’s defense needs even for a moment is detrimental to the present and future of the country… after a gap of many decades, the Indian Air Force is preparing to welcome, in the coming months, its new generation ultra-modern fighter aircraft Rafale and strengthen its strike capability.”
Hailing surgical strikes, the President said, “Through the surgical strike on cross-border terror posts, India has shown its new policy and strategy.” The President also listed the Central Government’s flagship plans, including doubling farmers’ incomes and housing for all by 2022 as he wished the best to first time voters of the 2019 General Election before delineating contours of government’s “New India”.
“We are beating Netflix in India. We spent more money on content in India than Netflix does in India. And we have already 13 million monthly paying subscribers as of Sep 30. I don’t believe Netflix even has 1 million in India today. So that shows we are pre-eminent.”
Prem Parameswaran is an institution in himself. A financial wizard, Prem achieved phenomenal success as investment banker. In his 23 -year career in Investment Banking, Prem became one of the top Media and Telecom bankers on Wall Street. He advised clients and many Fortune 10 companies on mergers and acquisitions, as well as both public and private equity and debt financings.
In 2015, after a long and successful career as an investment banker in the Global Media and Telecom sector Prem Parameswaran joined Eros as the Group Chief Financial Officer (CFO) and President of Eros International’s North America Operations. A new feather was added to his crown when on December 20, 2018 Eros announced that Prem has been appointed to the Company’s Board of Directors.
Established in 1977, Eros is a respected global brand name in the Indian cinema world, which focuses on distributing films and other content through various mediums. Its relatively new OTT (Over-the-Top Service) platform, Eros Now, has over 128 million registered users globally with over 13 million monthly subscribers as of September 30, 2018. People term Eros Now as the “Netflix” of India, which owns rights for about 11, 000 films from Bollywood and regional languages of India spanning several decades. No other company in the world has such a rich and vast Indian content to offer to its viewers globally.
Prem with US President Trump
Obviously, Mr. Parameswaran is a subject of interest for the media and anybody attempting to analyze what contributes to success of a person or an institution. The Indian Panorama Chief Editor Prof. Indrajit S Saluja caught up with Mr. Parameswaran two days before the end of 2018 to interview him at his residence in Purchase, New York.
Here are excerpts from the interview.
TIP: I am told you were born in USA.
Yes, I was born on October 4th,1968 in New York. My parents, who were both immigrants who came to US as students in pursuit of the American dream, were the first Indian family to move to Scarsdale in 1970.There were no other Indians in Scarsdale at this time. Scarsdale was predominantly a Jewish Community at that time. Today, Scarsdale has approximately 20% Asians and is one of the most affluent areas in all of New York. It also has one of the best school systems in the country and that is sole reason why my dad wanted the family to move to Scarsdale to give me the best education.
TIP:And you went to which College and University?
First, I went to Scarsdale public school system and graduated from Scarsdale High School. Then I went to Columbia University and then I went to also Columbia Business School. So I have a BA from Columbia University and MBA Finance Honors from Columbia Business School.
TIP:Do you also have a Ph.D.?
No, I don’t. I thought about it and even now I think about it, to perhaps do a Ph.D. in Finance after my business career, but you know family and work come first. So, I haven’t thought about it recently ,but as you grow older one thinks perhaps why not. I enjoy teaching just like when I was working, I would like to go back to Columbia Business School and sometimes teach a case study in the one of the Advanced Corporate Finance classes about a deal or a transaction and how it works and how you value companies. So it is always nice to be able to teach business school students how to apply theory to practice because in Finance there is a lot of theory but in practice you have to think about other variables in valuations. For example, you see valuations of companies like Amazon or Facebook, Netflix or even us at different value levels and different multiples and as a result you have to apply different kind of theories whether it is a discounted cash analysis or an applied public value multiple analysis or a comparable transaction analysis and any of these methods could yield different results. Teaching how to apply these valuation methods with respect to both public and private companies is an art not a science.
TIP:So is it because of your deep understanding of finance and the practices involved that the companies trusted you with taking your advice on mergers and acquisitions which you specialized in?
After college and business school, I worked in Investment banking. I started my career in 1991 with Salomon Brothers which was one of the pre-eminent Wall Street Investment banking firms and from there I went to the prestigious Goldman Sachs and I spent many years with them as a Vice President; and from Goldman Sachs to Deutsche Bank in 2003 where I eventually became a Managing Director and Head of Americas for media, telecom investment banking. I worked on mergers and acquisitions as well as public and private financings for large multinational companies.
TIP: I think for that you were given an award also?
Yes, there were some awards over time. It is always nice to receive something for your accomplishments. There was Deal of the Year, Businessman of the Year, there was a whole bunch of different and nice awards and that was from advising different clients but eventually I finished my investment banking career at Jefferies where I was the Global Head of Media, Telecom investment banking. After an investment banking career of over 23 years of my career , I had executed over 300 transactions and those transactions for some of the world’s best companies including AT&T, Comcast, T-Mobile, Reliance, The Boston Red Sox, Windstream, Level 3 and Eros International to name a few.
In fact the company now that I work for, Eros International is a company that I helped take public in November 2013. We also did a follow on equity offering for that company. So, over the course of a 23 -year career you can do a lot of deals , I really enjoyed doing those deals , I enjoyed working with very talented smart people who would challenge you every day. The people we hire whether it was Salomon or a Goldman or a Deutsche are the top of the top -you have to be a top student, top GMAT, top SAT and then once you are working you are working 80 to 100 hours a week. These people are really committed, and you have to enjoy what you are doing . If you are not enjoying what you are doing , working 80 to 100 hours of a week is tedious and you are not going to do it well. I loved it and especially the fast pace nature of the business. I worked very hard and that’s how you succeed, and I think I really have enjoyed a great career in investment banking and now I am enjoying the best career as a CFO.
Prem with Priyanka Chopra at the Bajirao Mastani Press Conference
TIP: By the way, you said hard work, but having a vision to create something or to take a company to a higher level that is a different thing. You may be very hard working but if you have lack of vision you may not be able to achieve as much as you want to. So, you have a vision, what kind of a vision you had when you moved over the present company you are working for?
Eros International is the preeminent Bollywood content, Indian content company, in the world. We have largest library of films from a theatrical perspective, we have the largest Indian OTT platform-Eros Now, OTT is Over The Top, which is similar to Netflix. We are bigger actually than the Netflix in terms of number of Indian Films and Original Series. So, we are like the Netflix of India except bigger and we are publicly listed on the New York Stock Exchange ticker symbol EROS. I joined the company 2015, Kishore Lulla , the chairman of the company who I originally worked with on listing Eros on the NYSE came to me in December of 2014 regarding joining Eros and building a global digital company. We were at the Montage Hotel at the Beverly Hills and we were both there doing business. We sat down and literally on a napkin he said this is what I want to do, and I want this digital piece, EROS NOW our OTT platform to be a $10 billion dollar market capitalization company. Here’s where the growth is going to come from. Here’s where the subscribers will come from as there are over a billion people in India, billion people on cellphones. I said, can we start with $1 billion, so we joked around but what was interesting was the vision was there, the vision to build a preeminent digital platform was there and all of the groundwork and infrastructure was already laid down, so I thought this was a huge opportunity and he came to me and said he wants somebody with M& A experience and public capital market experience to help drive the company with him and the current management team. I got excited, after 23 years of banking you usually get excited about deals, this was the first time I got excited about the company and I have been approached before to join other public companies but none of them really appealed to me. This appealed to me cause this you have the opportunity to build the next Netflix, the next Facebook, the next Amazon right now and getting in on the ground floor with the infrastructure in place. Two, I get to work with my Indian heritage in Bollywood. So, it was nice to deal with all of the aspects of films. You know in India there are three things, there is religion, there is Cricket and there is Bollywood may be not in that order. You know it was such a big opportunity and I thought this is perfect .
TIP:So 2015 to 2018, what has been the growth trajectory?
The growth trajectory has been tremendous in the sense that we went from a 3000 film library to an 11,000 film library for Eros Now. From basically the time I joined we had less than 10 million registered users and today we have 128 million registered users and over 13 million monthly paying subscribers. Our revenue growth on the top line is roughly 15 % and our EBITDA margins are over 30 %, last quarter we did 39.2% EBITDA margins earnings before interest and taxes depreciation and amortization. Tremendous growth continues as we have premium content on Eros Now including original series like Side Hero and Smoke that have been highly rated by IMDB.
TIP:So, what would be the net worth of the company now?
Our market cap is roughly around on an enterprise value of about $900 million and a market capitalization of about $750 million today. Actually, it fluctuates with the market. If you asked me two weeks ago, we were closer to a billion. We had a little bit of a global sell off in the market in December. So, that happens; that’s ok as we believe in the long term growth of our business and our stock price will be a by product of our success.
TIP: But then it will bounce back, too?
I am not worried about the small blips in the stock market here and there. Right now our stock price is 9.50, we believe this could be $100 stock if we continue to operate and execute on our business strategy with premium content.
TIP:So, the flop doesn’t bother you?
No, given our business fundamentals are strong, I believe we will achieve new heights.
TIP: So, ultimately it does affect your net worth or what would you call it your net capital or whatever you may like to call it?
Yes, of course our market cap today as I told you is roughly just over $750 million and yes, the stock price goes up and down , but we have close to $100 million cash on our balance sheet, we are fully financed, and poised for growth. We have a very conservative balance sheet as well. And it’s part of being a CFO is making sure that one: our capital structure is correct and poised for a growth and two: that we have cash on our balance sheet to sustain the growth.
TIP:And from here as you said about the growth until now what are your plans, where do you go from here?
Sure, so we are in the process of doing 40 to 50 films each year as well as over 100 new Originals on Eros Now. This similar to what Netflix does except we have the Studio business as well so more like a combination of Warner and Netflix equals Eros. We also just launched Eros Now Quickie which is short form content that is great for the millennials. Quicke premiered First Dates Gone Wrong this month which was well viewed because this content transcends globally. We also released Smoke which is a drama based on the underworld in Goa , drugs, violence, very similar to Narcose but I think I am a little biased and I think Smoke is better and its in HINGLISH (Hindi & English) with subtitles. So anybody can view it, you don’t have to know the language of Hindi. Anyone around the world can view it. You can just download our app from EROS NOW.COM.
TIP:So, this is one way where you want to head on at the moment but is there anything revolutionary, exceptional and doesn’t exist anywhere else, but you can think of introducing to promote your business?
Yeah what’s interesting about us is that we have been on the cutting edge of Bollywood cinema and Indian content since 1977. The company was formed in 1977 in an International distribution house by Arjan Lulla, God Rest his Soul , he just passed away. Kishore Lulla, the chairman , his son has built it up to make it a global phenomenon, a global company. Again, similar to Netflix except better from an Indian content perspective there is no one that even comes close. So much so that Reliance industries, Mukesh Ambani’s company bought a 5% stake in our company at $15 a share this past February 2018. Ironically our stock is at $9.50 but it is good that the 19thrichest man in the world bought 5 % stake in our company at $15 a share. It shows you that he believes in the growth potential of our company. He is a smart businessman and knows the principals of value investing.
TIP: Did Ambanis have anything to do with you probably when they bought some theatres here?
No, that was Anil Ambani, his brother not Mukesh. Anil had invested in DreamWorks and unfortunately, I don’t think that turned out well for him because I think he bought it at the top. Ours is a different story because Mukesh Ambani is populating his telecom company and his data offering with content and he knows that we can be one of the preeminent content providers not only in India but globally. .
TIP:What challenges do you face from may be your competitors or from the other advancing technology?
Netflix has gone into India. Amazon has gone into India. Then you have others like Voot and Hotstar but having said that we look at ourselves in a different light because the EROS brand is so strong in India and globally amongst the Indians. We have the deepest and the richest library than any of our competitors. Of the last 10 years and the last 110 highest box office grossing films, over 36 of them are ours which I think is a strong testament to our preeminent content. EROS NOW or OTT App which is being driven by Rishika Lulla is phenomenal. We are beating Netflix in India. We spent more money on content in India than Netflix does in India. And we have already 13 million monthly paying subscribers as of Sep 30. I don’t believe Netflix even has 1 million in India today. So that shows we are pre-eminent.
The Parameswarans with President Donald Trump at the White House. Ven Parameswaran is on left, Priscilla Parameswaran is second from left and Prem stands next to President Trump (Official White House Photo by D. Myles Cullen)
“…you are looking at Indians now who have conquered Wall Street, you see Indian CEOs on Wall Street. There are Indian CEOs at some of the top companies in the world like Google, Microsoft, Pepsi, Mastercard and Adobe and they all exemplify the strength of Indians. In addition, most people are not threatened by Indians, we are smart, but we are good people with a lot of intellectual horsepower.”
TIP:EROS is focusing solely on Indian content?
Today we are into India content and that may change too. But the price point is also different. Our price point is lower, we want to get people in and we want to get them hooked because we love our content and we think that people will love the creative content that we have whether it is Smoke or Side Hero, Bajirao Mastani or a Bajrangi Bhaijaan, and they will get hooked. As our business grows and viewers get a hooked we can start thinking about different pricing scenarios.
Close friends. Tennis player Mahesh Bhupathi (left) and Prem Parameswaran
TIP:So while you are ahead of the rest in the Indian market be it Netflix or Amazon, so one is that you have a very strong subscriber base and then your price point , and then your library and content. So you don’t see any competitor near you now?
Well we have the best library of over 11,000 films and theatrically we have many new productions. There is always competition but just like here the competition that you see is Disney, Fox, Warner and MGM, you see competition but of you bring a brand and having good content. Premium content wins. I know it sound cliché, if you put out good content, you will win. We truly believe that, so that’s what we lead with, First is the best content, and we have the best infrastructure whether through our theatrical distribution or through EROS NOW our digital platform which we think is the best in the world for Indian content.
TIP: And how about the scenario in the US?
In US you have 4.3 million Indians that’s not including the 3rdand 4thgeneration. You have another almost 1 million in Canada. So there is a big opportunity. Here I want to drive this our business and market penetration. I want EROS NOW to be preeminent in the United States and North America. And in order for that to happen again it leads with premium content. If we give the best content, then people want to watch it. So EROS NOW is priced at $7.99 a month in US. Indians in the United States are the highest ethnic group by income than any ethnic group in the country. We have the highest per capita income than any ethnic group including Chinese, or other Asians which is again very strong so $7.99 is not very expensive for an Indian to get the best Indian content offering. How do we get subscribers – we are focused on our tearing strategy of marketing. One is through theatrical distribution to the theaters. The goal is to use social media correctly as we are a digital company so we want to use Instagram, we want to use Twitter , we want to use Facebook, we want to digitally advertise our EROS NOW product because the millennial average age is 27 and here also people are becoming more and more digitally oriented including my parents, my 88 year old dad is now learning how to text and tweet. So you have to adapt. So the old school of putting up posters is not how you get the eye balls so for example. Whether it is Priyanka Chopra: she has over 50 million Instagram followers , Donald Trump has 75 million social media followers , we know that we need to get eye balls to view our content. We could do partnerships with some of these folks like a Priyanka Chopra for example. And then we get right there 50 million eye balls. So there are opportunities that we see from a visionary perspective that we think there are going to be new things , new techniques and how to get more subscribers into our system,
TIP:You will be able to attract the subscribers as you say because of the content?
Yes.
Time for kids. Prem with daughters Trinity (13), Kayla (10), and son Hudson (8)
“So you have to believe in yourself, you have to believe in your employees, you have to have goals and that’s what you strive to achieve. We will do it with integrity because that is the most important thing. Finally it is important to spend time with your family because that’s what gives you soul, that’s the infrastructure that you need to achieve anything outside.”
TIP:So content is the most important thing?
Yes content is the most important thing because if you have good content then people always want to watch it . Be it Indian, American or other , if it is good content people are going to watch it. If it’s a good play you are going to watch it like Hamilton on Broadway was one of the top plays and everyone wanted to watch it and they could raise their ticket prices . Springsteen on Broadway was sold out for a year. You could not get a ticket; the second-hand market was charging you had
$1500 to $4000 for a ticket. So that shows you just that if the content is great people will want it.
TIP: You said merge Hollywood with Bollywood Merge in what sense?
Slumdog Millionaire was a good test so that did well, but it didn’t do well originally at the box office until it won an Academy award. Million Dollar arm which was done by Disney and that was film about 2 cricketers that were trying to find if they could pitch in major league baseball in the US. That didn’t do too well. So again you have got to find the right mix between Hollywood and Bollywood- western content and Indian content that makes sense because culturally it’s a difference. In India only 8-10 % of the box office today is western that’s Hollywood. 88 to 90 % is pure Indian regional content. Indians are in globally, with healthy and tasty Indian food, Yoga and Bollywood dance studios, so we want to capture viewers globally.
TIP: What I look at when I look at the movies made in India or here, I find here in Hollywood there are very few movies which have Indian content/ story as theme or background , In India the stories which are being made on some American or Canadian or British background , they deal mostly with Indians abroad like you know people living in UK but of Indian origin , Indians living in US, Indians living in Canada. So they are doing really well. So I see your point there that this merger does exist somewhere at some point. And the movies have been doing well.
Yes 100%. You know Aziz Ansari, the Indian comedian did a show for Netflix called Master of None. Very good show and I commend Netflix for the good job done on it and I commend him he did a good job on it. I saw him the other day doing his show in the Atlantic City and he did a great job. I can see that we can do those what they are doing but perhaps even better. And it’s a show about an Indian American who has come here, immigrant parents and he wants to become an actor and it is almost like Seinfeld and I think more of that can pertain because India is very popular in US now and I have said this many times Indians are in , when we look at EROS or EROS NOW Indians are in whether its Yoga , whether its Indian Food , whether its Bollywood dance which they have studios all over the country now, and there are competitions all over the country whether it’s even Zumba which is again a take off of Bollywood dance, in all of these things we see Indian culture and Indians also I know we are the most affluent ethnic group here one, Two you are looking at Indians now who have conquered Wall Street, you see Indian CEOs on Wall Street. you There are Indian CEOs at some of the top companies in the world like Google, Microsoft, Pepsi, Mastercard and Adobe and they all exemplify the strength of Indians. In addition, most people are not threatened by Indians, we are smart, but we are good people with a lot of intellectual horsepower
TIP:What kind of values are we talking about, the work culture or something more?
So when we talk about values, one is that it is shown by Lead by example. One, it comes from hard work. Two, it comes from treating everyone with respect. We have close to 500 employees and we treat everyone whether it is the tiffin person in Mumbai to my Executive Assistant to high end professionals, sales & marketing with the same level of respect as that is important. Three , Integrity. I believe everyone needs to have integrity in this company and ethics are important. I will tolerate mistakes, but I won’t tolerate anyone who does not have integrity. That’s where we draw the line. And then finally Team work, it’s important to be a team player and a lot of companies use that as a cliché, but we mean it. In our company its stressed everyone has a goal, and everyone has to do their bit . But I can’t emphasize enough integrity. To me that’s the most important. It takes many years to build a company and to build a reputation and it can take 15 seconds to blow it all up.
TIP: So you were born here so how come you connect so well with the Indian movies, Bollywood or regional movies without being there or living in that country?
So that’s a great question. I grew up here in US. I did not grow up watching Bollywood films or regional or Indian movies. In fact, my, when we first moved to the affluent community of Scarsdale, NY , my Mom and Dad would only speak English in the house. No Malayalam, no Tamil no Hindi , Only English. They wanted me to assimilate and grow up like a true American. You know I was the only Indian American in grammar school in the first few years. I never felt discriminated even though the color of my skin was brown . At times I would look around and say how come I am brown, and they are white, but I never felt discrimination. Two you learn the American Ideals , good and bad . But that was something my parents wanted for me, to grow up as a true American. Now, I joined an Indian company and one of the things growing up I missed was the culture. So there was always Indian culture in the house but at the same time I didn’t watch the traditional Bollywood films. I wanted to go see Star Wars. Those are the things I might have missed growing up, but I am glad that I now get to know and understand more of my Indian heritage. I watch all of our top films and Originals. Most of them are excellent. Bajirao Mastani was one of the greatest films that was produced. . I loved it. Bajrangi as well. So while I did not grow up watching Indian movies, today I really enjoy them and love all of our Originals that I usually binge watch as well.
TIP: And how about the language barrier?
Again there are subtitles for everything. If you are in South India and you speak Malayalam, you may not necessarily speak Hindi but subtitles and dubbing solve this problem. We are over 135 countries.
Prem is with Bruce Springsteen
TIP: So I am looking at summing up from you that at the end of the day you may be an accomplished and a brilliant student , you may be an accomplished sportsperson, you may be a successful professional in your career but what counts most is the goodness in you. Being good transcends everything else. Is there anything that you would like to tell our readers. You may conclude with a message.
I think when I think about life in general, I think about all these things. For kids, you want to teach them hard work and good values, strong infrastructure , same with work, EROS International and EROS NOW we want to build the company to new heights. I would like to help Eros to grow to over $10 billion market capitalization company. Today, we are a $750 million market capitalization company, listed on the New York Stock Exchange ticker symbol EROS and we have big growth ahead. I am very excited. I mean there is a big opportunity and I believe we will do it. So you have to believe in yourself, you have to believe in your employees, you have to have goals and that’s what you strive to achieve. We will do it with integrity because that is the most important thing. Finally it is important to spend time with your family because that’s what gives you soul, that’s the infrastructure that you need to achieve anything outside. I want to be known as a great father sometimes that means disciplining my kids. They may not like it now but later on they will appreciate it. That also means teaching them the right values so that they treat others with respect, be good to people and work hard. Finally when this all comes together, whether family or business success, it really all comes down to being a good person. If you are good to others and work hard, God will do the rest. Thank you for your time and God Bless Eros and God Bless America.
Trump Signs Bill Reopening Government for 3 Weeks through February 15
WASHINGTON (TIP): The House and Senate both approved a measure Friday, January 25 to temporarily reopen the federal government with a short-term spending bill that does not include President Donald Trump’s requested $5.7 billion for a border wall, CNN reported.
The measure — a three-week stop-gap spending bill would reopen shuttered parts of the government through February 15 with President having signed the Bill.
Congressional approval of the measure came quickly after the President conceded earlier Friday to mounting pressure over the ongoing shutdown, agreeing to a temporary funding measure that would allow federal employees to return to work.
“I will sign a bill to open our government for three weeks,” the President said in an address on Friday, saying that he was announcing that “we have reached a deal to end the shutdown.”
Trump said that “a bipartisan conference committee of House and Senate lawmakers and leaders” will work to “put together a homeland security package for me to shortly sign into law.”
“Over the next 21 days, I expect that both Democrats and Republicans will operate in good faith,” the President said.
Democrats have insisted throughout the shutdown that the President should sign a measure to reopen the government before they proceed to a debate on border wall funding. After weeks of resistance, Trump agreed to just that on Friday, paving the way for congressional Democrats and Republicans to approve a stop-gap funding bill.
The action on Capitol Hill comes after weeks of negotiations largely going nowhere. And it is not yet clear what kind of a deal can be struck between Democrats and Republicans in the weeks to come over border security.
Senate Democratic leader Chuck Schumer suggested at a news conference on Friday that the President’s decision to accept a stop-gap funding measure amounted to a validation of the position taken by Democrats during the shutdown fight.
“The President has agreed to our request to open the government and then debate border security,” Schumer said.
Schumer appeared optimistic that a resolution over border security can be reached once the government is reopened.
“We in Congress will roll up our sleeves and try to find some agreement on border security,” Schumer said.
Democrats have maintained throughout the shutdown fight that they support border security measures, but not new funding for a border wall, a signature promise of Trump’s campaign for the White House.
“We don’t agree on some of the specifics of border security. Democrats are firmly against the wall,” Schumer said on Friday.
“But we agree on many things such as the need for drug inspection technology, humanitarian aid, strengthening security at our ports of entry. And that bodes well for finding an eventual agreement,” he added.
In his Rose Garden remarks, Trump did not appear conciliatory nor did he concede defeat. Instead, he continued to paint the matter as a national security crisis and said another shutdown is possible if lawmakers cannot agree to new border wall funding.
“As everyone knows I have a very powerful alternative but I’m not going to use it at this time,” Trump said after declaring he’d struck a deal to reopen government. CNN reported exclusively on Thursday that a national emergency proclamation had been drafted that would allow for potentially billions of federal dollars to be put toward wall construction.
“If we don’t get a fair deal from Congress, the government will either shut down on February 15 again, or I will use the powers afforded to me under the laws and the Constitution of the United States to address this emergency,” Trump said. “We will have great security.”
Nearly his entire Cabinet and many of his senior advisers had assembled along the Rose Garden colonnade to listen to Trump speak. They offered enthusiastic applause during his speech, which Trump opened by saying he was “very proud to announce today that we have reached a deal to end the shutdown and reopen the federal government.”
“I will make sure that all employees receive their back pay very quickly or as soon as possible. It’ll happen fast,” Trump said.
“When I say make America great again — it could never be done without you,” Trump said, calling federal workers “great people.”
South African President Cyril Ramaphosa attends as Chief Guest
Impressive Parade and enthusiasm mark the celebration
PM lays a wreath at Amar Jawan Jyoti and pays tribute to martyrs
NEW DELHI (TIP): Celebrations for the 70th Republic Day began on Saturday, January 26, with South African President Cyril Ramaphosa in attendance as the chief guest, amid heavy security deployment in the city.
Prime Minister Narendra Modi paid his tributes to the martyrs by laying a wreath at Amar Jawan Jyoti in the presence of Defense Minister Nirmala Sitharaman and the three service chiefs.
Later Modi, wearing his traditional kurta-pajama and trademark Nehru jacket, reached the Rajpath and received and greeted President Ram Nath Kovind and the chief guest.
At the unfurling of the Tricolor, the band played the national anthem with a 21-gun salute fired in the background.
In a display of woman power, Lt. Ambika Sudhakaran leads Indian Navy’s marching regiment at Republic Day 2019 parade Photo /courtesy PIB
Most of the ministers of the Modi government, including Home Minister Rajnath Singh and External Affairs Minister Sushma Swaraj, former prime ministers Manmohan Singh and Deve Gowda, and Congress veteran Ghulam Nabi Azad were among those present on the occasion.
The overall theme for the Republic Day celebrations this year is the 150th birth anniversary of Mahatma Gandhi and tableaux of many states, themed on the iconic freedom fighter, were lined up for the occasion.
Congress, AIADMK call for deliberation by select committee, walk out before voting
NEW DELHI(TIP): The Lok Sabha on Thursday, December 27 passed The Muslim Women (Protection of Rights on Marriage) Bill, 2018, after a heated debate. The opposition Congress and All India Anna Dravida Munnetra Kazhagam (AIADMK) staged a walkout before the voting.
The two parties through their floor leaders, Mallikarjuna Kharge and P. Venugopal of the AIADMK had earlier opposed the Bill during the debate and asked that it be referred to a Joint Select Committee for consideration rather than be debated and passed. However, Law Minister Ravi Shankar Prasad asked members to pass the Bill citing humanitarian considerations with regard to Muslim women suffering under triple talaq.
The Bill to make the practice of triple talaq among Muslims a penal offence was introduced in the Lok Sabha on December 17 to replace an ordinance issued in September. Under the proposed law, giving instant triple talaq will be illegal and void, and will attract a jail term of three years for the husband. The fresh bill is proposed to supersede an earlier bill passed in the Lok Sabha and pending in the Rajya Sabha.
In the face of strong objections by the opposition, led by leader of the Congress legislative party in the Lok Sabha, Mallikarjuna Kharge, Mr. Prasad in his reply said as many as 477 cases of triple talaq have been reported since January 2017 with over 200 coming after the Supreme Court verdict declaring Talaq-e-Bidat as void. He explained the penal provision in the Bill as a deterrent, stating, “deterrent is also important while combating a crime.”
“I am surprised that this House says that triple talaq is wrong but that it wants to keep silent on combating it. When penal provisions were introduced for the Anti-Dowry Act, this House passed such a Bill, penal provisions are there in the Domestic Violence Act as well and this House passed it. So why that objection with regard to this Bill?” asked Mr Prasad.
He said he had incorporated several suggestions made by the opposition during the debate last year on the Bill, including removal of the clause that neighbors of the victim could file a case. “Conditions for bail and mediation have also been added to the Bill as suggested by members,” he said.
The Congress’ attack during the debate was led by president of its women’s wing Sushmita Dev who said the Bill would do nothing to ameliorate the condition of Muslim women other than saddling them with a criminal case.
“This law is not about empowering Muslim women; it is about criminalizing a Muslim man,” Ms. Dev said.
N.K. Premachandran of the Revolutionary Socialist Party (RSP) who also moved several amendments said his “strong objection was to the fact that the Bill criminalizes a civil wrong when it is not so among statutes regarding Hindu personal law or even [for] Christians.”
Anwhar Raajhaa of the AIADMK demanded to know why Muslim men were being singled out for punishment under penal provisions. He also said educational and social backwardness was responsible for the condition of Muslim women far more than triple talaq. “Who will provide maintenance to the wife if the husband is in jail?” he asked.
‘Targeting minorities’
All India Majlis-e-Ittehadul Muslimeen (AIMIM) chief Asaduddin Owaisi in an impassioned speech, accused the government of wanting to “go after” Muslim men. “Why have you decriminalized homosexuality and criminalizing triple talaq? Because it would be used against us. Sexual minority got choice in Section 377, then why not religious minorities,” Mr Owaisi said.
“If your faith is your faith, then my faith should also be my faith. Your (Government) intentions are not clean. You can bring your own law, but we will not forfeit our religion,” Mr. Owaisi said.
The government also saw ministerial interjections by Minister for Minority Affairs Mukhtar Abbas Naqvi and Textile Minister Smriti Irani. “There should be fear in the hearts of those who commit this crime, and the tendency to sell fatwas (religious interpretations) on the streets like vegetables should stop. This country runs on the Constitution and not Sharia law,” Mr. Naqvi said.
The Bill was passed after the Congress and AIADMK walked out and will now be tabled in the Rajya Sabha.
As I sit down to pen the last editorial comment of the year for The Indian Panorama, a few days before the end of the year, on December 27 evening, to be exact, my thoughts go to millions across the world who suffered on account of Nature’s fury, or were subjected to man’s inhumanity, in 2018.
I think of the wild fires in California which, besides causing colossal damage to property and displacement of people, caused hundreds of deaths. The earthquake and Tsunamis which struck Indonesia on two occasions in 2018 , mowed down hundreds of lives and caused huge damage to property. The volcanic eruptions in some parts of the world were responsible for much loss of life and property. Then, all the storms and hurricanes in US and elsewhere, mudslides and floods in Japan, dust storm in India, and many other natural calamities in various parts of the world played havoc with human life.
I am also reminded of the destruction and misery caused by man which is much greater in proportion than Nature’s wrath could cause. In the armed conflicts across the world hundreds and thousands of lives have been lost .Wars in Afghanistan, Iraq, Syria, Yemen have killed thousands. In 2018 alone, some 40,000 have lost life in Afghanistan; 5000 in Iraq; 30000 in Syrian Civil war; 25000 in Yemen. Then there are many countries having internal conflicts which caused a heavy loss of human life, besides bringing misery to many more.
Mass shootings in USA in 2018 which included shootings in schools and public places, numbered more than 300 and claimed lives of thousands who ranged from school going small kids of 5 to old people.
On this day, I remember all those who fell to Nature’s fury or man’s madness and pray for their souls. For all the sufferings of the people affected by the unfortunate incidents of 2018, I have deep regret and great sympathy. For all their sufferings, I have prayers to make that it does not happen again with God’s own people.
I have also to make an appeal to rulers all over the world to always keep in mind that their first obligation is to people and their wellbeing. Let them not sow the seeds of conflicts to satisfy their ego and please themselves. Let them work to ensure that peace alone prevails.
However, let me add, 2018 has not only been a year of terrible suffering for many; there have been considerable achievements and accomplishments to be proud of. Scientists and technologists made new discoveries, including that there is mineable ice on Mars, and there is a way to grow vegetables without earth or daylight. Many more. And many more in various other spheres.
We will follow up with details of what 2018 meant to the world, in our New Year special edition next week.
WASHINGTON(TIP): Indian Ambassador to the United States Navtej Sarna was given a warm send off on December 13th, as diplomats from both the countries praised the Trump administration and the state of bilateral relations. Sarna, who took over as Ambassador in November 2016, ends an illustrious 38-year foreign service career.
In an extraordinary move and to showcase the strength of the ties that bind the two countries, the farewell was hosted by the State Department at Blair House, opposite the White House, a residence reserved for heads of state during visits to this country.
Principal Deputy Assistant Secretary of State for South and Central Asia, Alice Wells told the gathering that President Trump calls India a “true friend,” and pointed to the two years during which the “Indo-Pacific” region was renamed, And Secretary of State Mike Pompeo “has characterized the U.S.-India bilateral relationship as one deeply bound by our shared values,” Wells is quoted saying in news reports, at the event attended by top White House and State Department officials.
Both Wells and Sarna dwelt on the accomplishments of the past two years, the highlight of which was the state visit of Prime Minister Narendra Modi; as well as the inauguration of the new 2+2 Dialogue on security and strategic priorities
“Under your leadership, our countries have negotiated and finalized a landmark communications compatibility and security agreement, which makes our military cooperation more profound and advanced. We have also taken significant steps to build on India’s status as a US major defense partner, including elevating India to strategic trade authorization, tier one status,” Wells is quoted saying in a Financial Express news report. She also praised Sarna for engaging the 3-million strong Indian-American community in the U.S., to strengthen relations.
Sarna noted that the “personal chemistry” between Modi and President Donald Trump “were so strong” and “so, so evident,” resulting in the joint statement which would set the chart for bilateral relations in coming months
“We have found a huge amount of understanding for our political space, for our strategic autonomy, for the needs of our economy, for our role, for our taking into account our art history and our regional position vis a vis several other countries,” Sarna is quoted saying, adding that the two countries had found ways to serve their own national interests and still grow the relationship.
Seasoned diplomat Harsh Vardhan Shringla, a 1984-batch Indian Foreign Service diplomat will succeed Navtej Sarna.
“He is expected to take up the assignment shortly,” the Ministry of External Affairs said in its statement today.
At present, Mr Shringla is serving as the Indian High Commissioner to Bangladesh.
Incidentally, his place in Dhaka is being taken by a senior diplomat Riva Ganguly Das, who was Consul General in New York only 2 years ago . She is presently Director General of Indian Council for Cultural Relations.
SBI, Bank of Baroda, Indian Bank and Vijaya Bank may not need capital.
NEW DELHI(TIP): The government on Thursday, December 20, said it will enhance the capital infusion in public sector banks to Rs 83,000 crore, taking the total to Rs 1.06 lakh crore for the fiscal.
The capital will be pumped in over the next few months, Finance Minister Arun Jaitley said, adding that the move will increase the lending capacity of public sector banks (PSBs) as well as help some of them come out of RBI’s watchlist.
The government had earlier announced infusion of Rs 65,000 crore in PSBs in 2018-19, of which Rs 23,000 crore has already been disbursed, while Rs 42,000 crore is remaining.
The government Thursday sought Parliament’s approval for infusion of an additional Rs 41,000 crore.
This amount, sought to be infused in the banks through issue of government securities (recapitalization bonds), is over and above the Rs 2.11 lakh crore recapitalization plan announced in October 2017.
The recapitalization, the finance minister said, will enhance the lending capacity of state-owned banks and help them come out of RBI’s Prompt Corrective Action (PCA) framework.
“Now this Rs 1.06 lakh crore this year and Rs 83,000 crore which is remaining is going to be utilized under four different heads. The first of course is to ensure that banks meet their regulatory capital norms.
“The second will be that the better performing banks under PCA are given capital to achieve a 9 per cent Capital to Risk Weighted Assets Ratio (CRAR) and required capital conservation buffer and the 6 per cent net NPA requirements so that some of them are able to come out of the PCA itself,” he said.
The third category will be the non-PCA banks which are very close to the PCA red-line will be provided capital so that they do not come under the framework, he said.
Some capital will also be provided to banks which are going to be amalgamated to meet regulatory norms and growth capital, Jaitley added.
Earlier this year, the government had announced merger of Dena Bank and Vijaya Bank with Bank of Baroda.
Jaitley also said the non-performing assets (NPAs) recognition, started in 2015, is almost complete, and the September quarter has shown decline in bad loans.
Gross NPAs of PSBs started declining after peaking in March 2018, registering a reduction of Rs 23,860 crore in the first half of the fiscal.
Speaking to reporters, Financial Services Secretary Rajiv Kumar said three banks were on the verge of being included in the PCA, but with this infusion, they will be safe.
A total of 11 out of the 21 PSBs are under RBI’s PCA framework, which imposes lending restrictions on weak banks.
“India’s PCA framework for weaker banks has more onerous thresholds, that is higher capital thresholds and a net NPA threshold that further embeds capital requirement on account of provisioning of NPAs.
“Today’s proposal is an expression of government’s commitment that each PSB is an article of faith and aims at securing compliance even for the higher regulatory norms,” Kumar said.
Asked if the Nirav Modi scam-hit Punjab National Bank (PNB) will get capital support, he said it could be a candidate for fund infusion.
Kumar said PSBs have recovered Rs 60,726 crore of bad loans in the first half of the current fiscal year, which is more than double the amount recovered in the corresponding period last year.
In October 2017, the government decided to infuse Rs 2.11 lakh crore in PSBs over the next two years-through budgetary provisions of Rs 18,139 crore, recapitalization bonds of Rs 1.35 lakh crore, and the balance through raising of capital by banks from the market.
The government envisaged that PSBs would raise Rs 58,000 crore from the stock markets by March 2019 to meet Basel III norms.
Kumar said out of this, Rs 24,400 crore has been raised by banks so far.
The secretary also said four banks-SBI, Bank of Baroda, Indian Bank and Vijaya Bank-may not need capital.
WASHINGTON(TIP): Defense Secretary James Mattis will resign at the end of February, he informed President Trump in a letter Thursday, December20. The defense secretary said he is stepping down because of the differences in viewpoints with Mr. Trump.
News of Mattis’ impending departure comes the day after Mr. Trump’s sudden announcement about Syria, a decision he made without consulting security officials in his administration.
“Because you have the right to have a Secretary of Defense whose views are better aligned with yours on these and other subjects, I believe it is right for me to step down from my position,” Mattis wrote.
Mr. Trump announced the news in a tweet and praised Mattis’ tenure as secretary.
“During Jim’s tenure, tremendous progress has been made, especially with respect to the purchase of new fighting equipment,” Mr. Trump wrote on Twitter. “General Mattis was a great help to me in getting allies and other countries to pay their share of military obligations. A new Secretary of Defense will be named shortly. I greatly thank Jim for his service!”
A senior White House official said that Mattis came to the White House for a meeting, not previously scheduled, around 3:30 p.m. Thursday, and informed the president he would be leaving. The president hopes to announce a replacement by the end of the year.
Text of Defense Secretary’s resignation letter.
“Dear Mr. President:
I have been privileged to serve as our country’s 26th Secretary of Defense which has allowed me to serve alongside our men and women of the Department in defense of our citizens and our ideals.
I am proud of the progress that has been made over the past two years on some of the key goals articulated in our National Defense Strategy: putting the Department on a more sound budgetary footing, improving readiness and lethality in our forces, and reforming the Department’s business practices for greater performance. Our troops continue to provide the capabilities needed to prevail in conflict and sustain strong U.S. global influence.
One core belief I have always held is that our strength as a nation is inextricably linked to the strength of our unique and comprehensive system of alliances and partnerships. While the US remains the indispensable nation in the free world, we cannot protect our interests or serve that role effectively without maintaining strong alliances and showing respect to those allies. Like you, I have said from the beginning that the armed forces of the United States should not be the policeman of the world. Instead, we must use all tools of American power to provide for the common defense, including providing effective leadership to our alliances. NATO’s 29 democracies demonstrated that strength in their commitment to fighting alongside us following the 9-11 attack on America. The Defeat-ISIS coalition of 74 nations is further proof.
Similarly, I believe we must be resolute and unambiguous in our approach to those countries whose strategic interests are increasingly in tension with ours. It is clear that China and Russia, for example, want to shape a world consistent with their authoritarian model – gaining veto authority over other nations’ economic, diplomatic, and security decisions – to promote their own interests at the expense of their neighbors, America and our allies. That is why we must use all the tools of American power to provide for the common defense.
My views on treating allies with respect and also being clear-eyed about both malign actors and strategic competitors are strongly held and informed by over four decades of immersion in these issues. We must do everything possible to advance an international order that is most conducive to our security, prosperity and values, and we are strengthened in this effort by the solidarity of our alliances.
Because you have the right to have a Secretary of Defense whose views are better aligned with yours on these and other subjects, I believe it is right for me to step down from my position. The end date for my tenure is February 28, 2019, a date that should allow sufficient time for a successor to be nominated and confirmed as well as to make sure the Department’s interests are properly articulated and protected at upcoming events to include Congressional posture hearings and the NATO Defense Ministerial meeting in February. Further, that a full transition to a new Secretary of Defense occurs well in advance of the transition of Chairman of the Joint Chiefs of Staff in September in order to ensure stability Within the Department.
I pledge my full effort to a smooth transition that ensures the needs and interests of the 2.15 million Service Members and 732,079 DoD civilians receive undistracted attention of the Department at all times so that they can fulfill their critical, round-the-clock mission to protect the American people.
I very much appreciate this opportunity to serve the nation and our men and women in uniform.”
Both Republican and Democratic lawmakers expressed regret that Mattis was leaving the administration. House Democratic Leader Nancy Pelosi said she was “shaken” by Mattis’ resignation and expressed admiration for the letter he wrote to the president. “I think that everybody in the country should read his letter of resignation,” she told reporters. “It’s a letter of great patriotism, respect for the President, but also a statement of his values.”
NEW YORK (TIP): President Donald Trump’s former personal lawyer Michael Cohen was sentenced to three years in prison on Wednesday, December 12, for financial crimes and orchestrating hush payments to women before the 2016 election, telling the judge his “blind loyalty” led him to cover up for Trump.
The sentencing by US District Judge William Pauley in Manhattan capped a stunning about-face by a lawyer who once said he would “take a bullet” for Trump but has now implicated the Republican President in criminal conduct. Cohen said in his guilty plea in August he was directed by Trump to make hush money payments to two women who said they had sexual affairs with Trump in the past.
Trump has denied the affairs and any involvement in the payments.
The three-year sentence was a modest reduction from the four to five years recommended under federal guidelines, but still underscored the seriousness of the charges of violating campaign finance laws and seeking to influence the outcome of an election.
Pauley sentenced Cohen to 36 months for the payments and to two months for Cohen’s lies to Congress about a proposed Trump Tower project in Russia. The two terms will run simultaneously.
The judge set March 6 for Cohen’s voluntary surrender.
As part of the sentence, the judge ordered Cohen to forfeit $500,000 and pay restitution of nearly $1.4 million.
Cohen pleaded guilty in August to charges including tax evasion, bank fraud and campaign finance violations in a case brought by federal prosecutors in New York.
Cohen was sentenced on a separate charge of lying to Congress brought by Special Counsel Robert Mueller, who is investigating Russia’s role in the 2016 election and possible coordination between Trump’s campaign and Moscow.
NEW DELHI(TIP): A resurgent Congress on Tuesday, December 11 made significant gains in the Assembly elections, dealing a body blow to the BJP in Chhattisgarh Rajasthan and Madhya Pradesh.
The reverses for the BJP in the Hindi heartland threw wide open the 2019 Lok Sabha elections which until a few months ago appeared to be in the grip of Prime Minister Narendra Modi’s party.
The Assembly polls held for five states also saw the Telangana Rashtra Samithi (TRS) recording a landslide win for a second consecutive term and the Mizo National Front (MNF) scripting a spectacular victory dislodging the Congress in its last bastion in the Northeast to return to power after 10 years.
Buoyed by the Congress’ good showing in the polls that was dubbed as a semi-final for the 2019 general elections, party president Rahul Gandhi said the outcome is a “clear message” to the Modi government that people are not happy with it and time has come for a change.
Prime Minister Narendra Modi got a massive mandate but refused to listen to “heartbeat of the country”, Gandhi told reporters.
With Congress set to form governments in Chhattisgarh, Rajasthan and Madhya Pradesh, Gandhi said the selection of chief ministers in the three states will be done “smoothly”. “We have defeated the BJP in Madhya Pradesh, Rajasthan and Chhattisgarh… There will be no issue over (selection of) chief minister. It will be done smoothly.”
Finance Minister Arun Jaitley said the results were certainly not as expected and asserted the poll outcome was an opportunity to pause and analyze.
