Decoding resounding BJP victory

[email protected] (A K Verma)
March 12, 2017

Mar 12: The Bhartiya Janata Party (BJP) registered a landslide victory in Uttar Pradesh (UP) and Uttarakhand, capturing significant space in Manipur where it had no presence while Goa remains close. But, as expected, the Akali Dal-BJP alliance lost Punjab where it had already served two terms and faced anti-incumbency owing to drug menace, arms traffic and arbitrary police and general administration.

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In UP, the BJP's resounding win of 325 seats with 41% votes with allies, Apna Dal (AD) and Suheldev Bharatiya Samaj Party (SBSP), came as a surprise to all. It far surpassed the party's Mission-265 target and was really Herculean as compared to 2012 Assembly polls when it secured 47 seats and 15% votes. Thus, it won 278 more seats and 26% more votes as compared to 2012. How could the BJP do this?

Constituency transformation: The BJP fundamentally transformed its constituency. The party had been touted as upper caste-urban-middle class-traders party, a constituency that comprises of just 19-20% of electorate. It tried to go for 'sabka saath, sabka vikas,' a catchphrase for inclusive politics. The party included more backward, most backward and Ati-Dalit sections hitherto excluded from party constituency.

According to the Centre for the Study of Developing Societies (CSDS) data, a massive 32% more backwards, 37% most-backwards and 21% Ati-Dalits have shifted to the BJP since 2012. There appeared to be a democratic upsurge in UP that gave a massive win to the BJP.

Rural connect: Prime Minister Narendra Modi established a rapport with the rural people. Congress vice-president Rahul Gandhi used to mock him as heading a 'suit-boot ki sarkaar' and playing to the rich. But Modi bounced back with a massive rural push as he went for neem-coating of urea making it unfit for industrial use, introduced soil health card, provided farmers security by implementing the Fasal Bima Yojna (crop insurance), launched village toilets scheme and provided free LPG to village women under the Ujjwala scheme.

Further, during campaign speeches, he assured villagers that he would personally guarantee that the new BJP government in UP waived agricultural loans of small and marginal farmers in its first meeting and purchase their agricultural produce at minimum support price. What else could the farmers desire? That is the reason why 32% rural people voted BJP as against 14% in 2012.

Robust social engineering: To capture the largest social segment in UP — the OBCs — the BJP roped them into the leadership structure and offered them a large number of tickets in this Assembly polls. The non-Yadav OBCs in UP, called more-backwards and most-backwards, were not aligned to any particular party.

The BJP appointed Keshav Prasad Maurya from the most-backward as its state president and Anupriya Patel of Apna Dal, representing more-backwards, in the Modi cabinet. It also gave them 50% share in party tickets. This marginalised community was excited at getting a political space greater than their share in population. That positively impacted the BJP's victory in all constituencies.

Many failed to pay attention to the two marginal parties with which the BJP had alliance in UP – AD and SBSP — and calculate their electoral impact. Because of AD alliance, more-backwards, especially the Kurmis, massively shifted to the BJP. The SBSP is a party of Rajbhars, the people of tribal origin and wrongly placed in the most-backward category. They had polled five lakh votes in the contested constituencies in 2012 Assembly polls and their average comes to about 9,000 votes per contested constituency. That also made substantial difference to the BJP as add-on votes.

Policy initiatives: The BJP has also taken several policy initiatives in the domain of social security, economy and foreign policy. Modi's growing international stature, tough and fearless stand against Pakistan, and several bilateral and multilateral international collaborations beneficial for the country have not gone unnoticed by the people. His several schemes like Atal Pension Yojna, Jan Dhan Yojna, direct transfer of subsidy to the bank accounts of poor, Pradhaan Mantri Grameen Awas Yojna etc have greatly excited the people.

He also initiated schemes to tackle unemployment among youth through youth entrepreneurship in the form of Make in India, startup schemes, skill development etc. The youth of UP was unhappy because of the casteism in appointments and greatly expected the BJP government to undo that aberration.

Mayawati's Muslim outreach: There was much hype about BSP supremo Mayawati's Dalit-Muslim social engineering replacing her earlier Dalit-Brahmin social engineering of the 2007 fame. But, the BSP's poor performance demonstrates its complete failure. Mayawati did not understand that such social coalitions are not mechanical processes that you terminate at will and go for another. These experiments take time and should be not only a matter of political convenience but must also reflect in the coming together of the two communities at grassroots.

Secondly, Maya¬wati lost her upper caste votes after the infamous Dayashankar Singh (BJP) episode (he called Mayawati a prostitute), following which Naseemuddin (BSP) made vulgar remarks about the wife and daughter of Dayashankar. It not only pushed Thakurs but the entire upper caste, including Brahmins, away from Mayawati and that is clearly reflected in the CSDS data. Thirdly, Maya¬wati also lost Dalit votes, especially non-Jatavs Pasi, Valmiki, Kori, Khatik etc as she had been unfair to them.

SP-Cong alliance: The SP-Congress alliance was a disaster for both parties. It was formed on the premise of transferability of votes to each other on the Bihar model but did not materialise on ground. It may have been just a political experiment for a Congress revival as the party had no stakes in UP. For Akhilesh, however, it turned out to be a very unwise decision because he might have managed near majority on his own owing to his clean and development-centric image.

The alliance was suicidal for the Congress because it took a big risk not worthy of a national party. One, by ceding 298 seats to the SP, it literally offered its Muslim vote share on a platter in those constituencies, a mistake the party committed in 1996 when it went for an alliance with the BSP and offered its Dalit votes to the party. Secondly, the Congress did not think big for the 2019 Lok Sabha elections. This Assembly poll was a chance to galvanise its party apparatus and cadre for the coming LS poll. By not contesting in 298 constituencies, the Congress' organisational apparatus might disintegrate beyond repair.

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News Network
February 5,2020

Feb 5: Tesla is making Elon Musk a lot richer without paying him a dime.

A blistering stock rally has bolstered the value of CEO Musk's 19% stake in the electric car maker by $16 billion since the start of 2020, to $30 billion.

Tuesday's steep climb in the share price could sweeten Musk's payday under his record-breaking compensation package, which is built on stock options that rely on market value targets. Two milestones have now been achieved that could see Musk unlock options worth $1.8 billion.

The controversial chief executive, who is also the majority owner and CEO of rocket maker SpaceX, recently testified that he did not have a lot of cash as he successfully defended himself in a defamation lawsuit. He previously has taken loans using his Tesla shares as collateral.

Musk does not take a salary, choosing instead a risky options package that envisions the stock market value of Tesla rising to $650 billion over 10 years, a prospect that was derided by some investors when the deal was announced in 2018.

That target now looks less crazy. Shares of Tesla have rallied over 50% since the company posted its second consecutive quarterly profit last Wednesday, which was viewed as a major accomplishment for a company competing against established automotive heavyweights including General Motors Co  and BMW.

Tesla shares have climbed about 400% since early June, helped by the company's better-than-expected financial results and ramped-up production at its new car factory in Shanghai.

On Tuesday, Tesla surged as much as 24% before falling back in the final minutes of the trading session to end the day up 13.7%. That put its market capitalization at $160 billion, almost twice the combined value of Ford Motor and General Motors.

The shares had also rallied on Monday, partly fueled by Panasonic Corp's 6752.T saying its automotive battery venture with Tesla was profitable for the first time.

The options Musk was awarded in 2018 vest incrementally based on targets for Tesla's stock market value and its financial performance. The market capitalization would have to sustainably rise by $50 billion increments over the agreement's 10-year period, with the full package payout reached if the market cap reaches $650 billion, as well as the company's meeting revenue and profit targets.

Musk is on his way to seeing his first two tranches of options vest. He achieved operational targets on revenue and adjusted earnings last year.

The rise in Tesla's market capitalization last month to a target of $100 billion opened the way for Musk's first tranche of options to vest. With Tuesday's surging share price, the market capitalization blew past the second target of $150 billion, opening the way for the second tranche to vest. Tesla's market capitalization must stay at or above each target level for one- and six-month averages for each set of options to vest.

Tesla was valued at about $52 billion when shareholders approved the pay package in March 2018, a time when the company faced a cash crunch, production delays and increasing competition from rivals.

A full payoff for Musk would surpass anything previously granted to U.S. executives, according to Institutional Shareholder Services, a proxy advisor that recommended investors reject the pay package deal at the time.

Musk currently owns about 34 million Tesla shares, and his compensation package would let him buy another 20.3 million shares if all his options tranches vest.

When Tesla unveiled Musk’s package, it said he could in theory reap as much as $55.8 billion if no new shares were issued. However, Tesla has since awarded stock to employees and last year sold $2.7 billion in shares and convertible bonds, diluting the value of the stock.

Musk has transformed Tesla from a niche car maker with production problems into the global leader in electric vehicles, with U.S. and Chinese factories. So far it has stayed ahead of more established rivals including BMW and Volkswagen.

Many investors remain skeptical that Tesla can consistently deliver profit, cash flow and growth. More Wall Street analysts rate Tesla "sell" than "buy," and the company's stock is the most shorted on Wall Street.

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Agencies
July 3,2020

Mumbai, Jul 3: In yet another move to keep Chinese technologies companies at bay, the Centre has cancelled the 4G upgradation tender for BSNL as it has decided to come up with fresh specifications for the upgrade process, sources said.

The Department of Telecommunications (DoT) is likely to issue a fresh tender in the next two weeks.

People in the know said that the fresh tender may not allow Chinese companies to participate and that the new tenders that will be floated in the next two weeks will emphasise on Make in India.

As the border tussle with China escalated last month and around 20 soldiers lost their lives, the government had last month asked both BSNL and MTNL not to use equipment of Chinese makers in their upgrading process to 4G facilities.

Huawei and ZTE are the major Chinese telecom equipment makers working with Indian telecom companies and they would be the hardest hit by the decision.

The impact may be felt in terms of the much-awaited 5G trials in the country. After much deliberation, the Centre last December decided to allow Huawei to take part in the 5G trials.

The cancellation of tender for BSNL's 4G upgradation comes after the Centre on Monday banned 59 Chinese apps including TikTok, WeChat and UC Browser.

A statement by the Ministry of Electronics and IT said that the decision was taken since "there is credible information that these apps are engaged in activities which are prejudicial to sovereignty and integrity of India, defence of India, security of state and public order".

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Agencies
May 20,2020

In a bid to help struggling small businesses in Covid-19 times, Facebook has introduced Shops to help set up a single online store for customers to access on both Facebook and Instagram.

While Facebook Shops is being rolled out from Wednesday, the company will introduce Instagram Shop, a new way to discover and buy products in Instagram Explore, this summer, starting in the US.

The social networking giant also announced that it will invest in features across its family of apps to inspire people to shop and make buying and selling online easier.

"Creating a Facebook Shop is free and simple. Businesses can choose the products they want to feature from their catalogue and then customise the look and feel of their shop with a cover image and accent colours that showcase their brand," Facebook said in a statement late Tuesday.

Any seller, no matter their size or budget, can bring their business online and connect with customers wherever and whenever it's convenient for them.

People can find Facebook Shops on a business' Facebook Page or Instagram profile, or discover them through stories or ads.

"From there, you can browse the full collection, save products you're interested in and place an order — either on the business' website or without leaving the app if the business has enabled checkout in the US," informed the company.

Last month, Facebook announced $40 million in grants for 10,000 small businesses in the US to help them get through these challenging time.

The grants will go to small businesses in 34 locations where Facebook employees live and work.

The company said that in Facebook Shops, users will be able to message a business through WhatsApp, Messenger or Instagram Direct to ask questions, get support, track deliveries and more.

In the future, they will be able to view a business' shop and make purchases right within a chat in WhatsApp, Messenger or Instagram Direct.

Later this year, Facebook will add a new shop tab in the navigation bar, so people can get to Instagram Shop in just one tap.

Facebook said it is making it easier to shop for products in real time.

Soon, sellers, brands and creators will be able to tag products from their Facebook Shop or catalogue before going live and those products will be shown at the bottom of the video so people can easily tap to learn more and purchase.

"We're starting to test this with businesses on Facebook and Instagram, and we'll roll it out more broadly in the coming months," said the company.

Facebook is also working with partners like Shopify, BigCommerce, WooCommerce, ChannelAdvisor, CedCommerce, Cafe24, Tienda Nube and Feedonomics to support small businesses.

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