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Oped
— Neighbours

EDITORIALS

Modi does it in style
Industry will look beyond 'make in India' rhetoric
H
elped by the media, Prime Minister Modi has launched a high-pitch campaign to woo industry, which will be carried forward during his US visit. An energized Modi administration has identified 25 sectors, including automobiles, electronics and pharmaceuticals, for domestic and foreign companies to set up factories here. The thrust on manufacturing is unquestionable since unemployment is a major issue. The fast growth achieved under the UPA was largely jobless since manufacturing was ignored despite a clear message from China's success story.

Cleaning up the black
Coal cancellation is no harm done
T
he Supreme Court's cancellation of captive coal block allocations has evoked strong reactions from industry. It had to. When anyone is denied some benefit - justified or not - he will protest. But a morning-after assessment of the situation shows things are not at all as bad as it is made out to be. First, all companies have till March 2015 to operate the mines they have. And only about 40 mines out the 214 cancelled were operational.


EARLIER STORIES

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Lessons from Scotland
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Towards ending the stalemate with US
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Better together
September 20, 2014
Reprieve for stock markets
September 19, 2014
United in words
September 18, 2014
Ouch! That hurt
September 17, 2014
Safety on wheels
September 16, 2014
Gearing up for the battle
September 15, 2014
The legend of Mary Kom
September 14, 2014
Obama vs ISIS
September 13, 2014


On this day...100 years ago


Lahore, Saturday, September 26, 1914
Censor's circular to the Press
THE following circular letter to the Press has been issued from Simla:— The Deputy Chief Censor presents his compliments, and in response to many written, printed, and verbal representations on the subject begs to say that he can hold out no hopes of being able to impart to the press any details whatever of the composition of the forces, or of their staffs, now en route from India. No such details have been given to the Press in Europe by any of the belligerent Powers, and the same strong military reasons, which influenced the Home authorities in coming to that decision, are equally and even more applicable in the case of troops from India.

ARTICLE

Modi’s historic US visit
Hoopla will hinder, rather than help
S Nihal Singh
D
espite the hype of the Indian electronic media on Prime Minister Narendra Modi’s visit to the United States — one television channel repeating his interview to CNN International ad nauseam - the results of the trip will be determined by the economic achievements. But it would be well to remember that the Barack Obama administration will be distracted by the new American venture into a Middle East war.

MIDDLE

From Elvis Presley to Boman Irani
Zahur H Zaidi
I
remember it was 20 years ago when we joined this wonderful academy in Mussoorie to steer the future of India. Our young heads were full of fancy ideas and large egos. These were further boosted by a stream of regular visitors who came seeking suitable matches for their children from amongst future civil servants. One such family met me in a nice restaurant just outside the academy gates.

OPED — Neighbours

India, Bangladesh need to be proactive
Pinak Ranjan Chakravarty
P
RIME Minister Modi has made it amply clear that his government seeks friendly and cordial relations with Bangladesh despite the election rhetoric about Bangladeshi illegal immigrants being sent back. Bangladesh Foreign Minister Abul Hassan Mahmood was in Delhi recently to meet his counterpart, Indian External Affairs Minister (EAM) Sushma Swaraj, for the third session of the bilateral Joint Consultative Meeting (JCM). The Indian EAM had visited Dhaka in June for her first “stand-alone” visit to a foreign country. Prime Minister Modi is reported to have told Foreign Minister Mahmood that Bangladesh and India are linked by the past, present and future. He also reiterated to the visiting Bangladeshi Minister that India would do everything possible for the growth, peace and prosperity of Bangladesh.





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EDITORIALS

Modi does it in style
Industry will look beyond 'make in India' rhetoric

Helped by the media, Prime Minister Modi has launched a high-pitch campaign to woo industry, which will be carried forward during his US visit. An energized Modi administration has identified 25 sectors, including automobiles, electronics and pharmaceuticals, for domestic and foreign companies to set up factories here. The thrust on manufacturing is unquestionable since unemployment is a major issue. The fast growth achieved under the UPA was largely jobless since manufacturing was ignored despite a clear message from China's success story. Special economic zones were proposed, then abandoned. Apart from delays in project clearances, corruption, costly capital and land acquisition problems, Indian industry lacked confidence and the will to improve quality so as to be able to compete at the global level, being used to state protection for long years.

Modi is targeting foreign companies for manufacturing at a time when President Obama is determined not to let American jobs move out. He knows the task is not easy. "I agree that you cannot attract investment just by an invitation", he said, addressing industrialists on Thursday. He wants industry to "trust" his government and promises non-interference. "… the government will intervene only if it sees any deficiencies". But foreign industrialists are spoilt for choice in investment destination. India has to be competitive in offering the "ease of doing business". It is not enough to declare that India has, as Modi put it, "democracy, the demographic dividend and strong demand". They want the abolition of the retrospective tax and flexible labour laws to empower them to hire and fire employees. As Prime Minister, Modi has to match foreign and domestic concerns.

If Modi really wants to make India a manufacturing powerhouse, he will also have to look at the large unorganised sector in India where small and medium companies, the main job creators, struggle for survival. They need help in technology and skill upgrade, and cheap capital infusion. Industrial pickup is contingent on RBI rate cuts, which depend on the government controlling inflation. The onus is ultimately on the Modi government for boosting manufacturing and growth.

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Cleaning up the black
Coal cancellation is no harm done

The Supreme Court's cancellation of captive coal block allocations has evoked strong reactions from industry. It had to. When anyone is denied some benefit - justified or not - he will protest. But a morning-after assessment of the situation shows things are not at all as bad as it is made out to be. First, all companies have till March 2015 to operate the mines they have. And only about 40 mines out the 214 cancelled were operational. These will now either be auctioned or handed over to Coal India. In essence, the overall production in the country will roughly remain the same, or may even improve. It is only a matter of reconnecting coal producers and consumers. Just that some companies will lose the luxury of squatting over coal and exploiting it as per their wish - practically denying others access to it.

Next is the anguish expressed over loss of investment. This is also exaggerated. Most of the investment is in steel or power plants, which is not lost. Just the coal supply will have to be rearranged. In any case, many of the 'losers' had made windfall gains from free allocations secured through political connections. Their low production costs would have encouraged inefficiency and kept out competition unfairly. It must be noted that these allocations were free, based on inconsistent parameters. These translated more into profits for the companies than low prices for the end consumer. The cancellation opens up the field to a fair and transparent system of division of natural resources.

The ball now is in the government's court. First, it has to ensure a smooth takeover of the mines, and then a fair auction or reallocation under a clear policy. The ideal process would be to auction mining, rather than giving captive blocks, and allowing mining companies to sell coal. This would ensure efficiency of production as well as provide a competitive market to purchase from for all coal consumers, not just a chosen few. That would lead to fair competition in the steel and power industries also.

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Thought for the Day

Give me golf clubs, fresh air and a beautiful partner, and you can keep the clubs and the fresh air. — Jack Benny

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On this day...100 years ago



Lahore, Saturday, September 26, 1914

Censor's circular to the Press

THE following circular letter to the Press has been issued from Simla:— The Deputy Chief Censor presents his compliments, and in response to many written, printed, and verbal representations on the subject begs to say that he can hold out no hopes of being able to impart to the press any details whatever of the composition of the forces, or of their staffs, now en route from India. No such details have been given to the Press in Europe by any of the belligerent Powers, and the same strong military reasons, which influenced the Home authorities in coming to that decision, are equally and even more applicable in the case of troops from India. It is hoped that editors in India will accept this decision in the same loyal spirit as prevailed at Home, and that they will not only refrain themselves from useless complaints on the subject, but will exclude from their columns letters from correspondents of a similar tendency.

Free libraries in Mysore

THE Government of Mysore have just issued orders for establishing two large and well-equipped free libraries in the two largest cities of the State. They will be followed by smaller libraries to be established in different parts of the cities and in the districts. The policy of establishing free public libraries was, so far as we know, initiated by His Highness the Gaekwar of Baroda. What are known as "circulating free libraries" were established in that State and are reported to have been liked by the people. In the Mysore State there have been libraries equipped by the Government, but they have not all been opened to the public free and are scattered. The Government have sanctioned Rs. 35,000 non-recurring and Rs. 6,800 recurring for the two libraries.

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ARTICLE

Modi’s historic US visit
Hoopla will hinder, rather than help
S Nihal Singh

Despite the hype of the Indian electronic media on Prime Minister Narendra Modi’s visit to the United States — one television channel repeating his interview to CNN International ad nauseam - the results of the trip will be determined by the economic achievements. But it would be well to remember that the Barack Obama administration will be distracted by the new American venture into a Middle East war.

Mr Modi starts with an advantage inasmuch as he is viewed as a decisive leader and, judging by his Gujarat reputation, is classed as a doer. But untangling the web of regulations and antiquated laws on a national scale is a more daunting undertaking.

The grouses of American business and industry are familiar. Apart from the difficulty of doing business emphasised by several US chief executives retrospective legislation or rulings are a great let down because they strike at the roots of predictability.

On the political plane, what is going for Mr Modi is that after some three decades his Bharatiya Janata Party has an absolute majority in the Lok Sabha and is not subject to the vicissitudes of coalition politics as well as the peculiar double-headed arrangement of the preceding regime.

In principle, the US establishment is favourably inclined towards Mr Modi in view of his pro-business and right-wing beliefs. Although the Congress party gave up the credo of the socialist pattern of society in 1991, if not earlier, there was always the suspicion in Washington that many of its members still clung to the romanticism implied in the Nehru philosophy.

Washington is also very conscious of Mr Modi's nationalist credentials, rather in the manner of Japanese Prime Minister Shinzo Abe. But this should not be an insurmountable barrier because, in the American ethos, the heart of any right-wing pro-business leader is in the right place.

Since Mr Modi has made “Make in India” his special motto, the country will judge him by how much new investment he can lure in the manufacturing sector. There are many things going for India — its young population, relatively inexpensive hiring and an abundance of young graduates who need to be put through their paces through intense training.

On the obverse side are dilatory methods of governance, difficult labour and land laws and the prevailing unease among the lower classes of what the hyped new manufacturing revolution will amount to. The Modi administration is seeking to winnow out antiquated laws but it will be a long process to chip away at sets of regulations that hinder efficient manufacturing. Above all, the reform process involves political issues of labour unrest and the banding together of opposition parties to attack Mr Modi where he is vulnerable.

It is true that the potential of Indo-US relations has never been fully realised. In the beginning of independent India's history, the two countries were on opposite sides in the Cold War, India’s non-alignment classed as pro-Soviet. In the end, it tilted towards the then Soviet Union, thanks to US policies.

In arriving at the nuclear agreement, the George W. Bush administration went out of its way to accommodate India in the hope of launching a new era in relations. But the potential of the nuclear pact, making an exception of India not signing the Nuclear Non-Proliferation Treaty, was negated by the narrow-minded Indian legislation imposing onerous costs on suppliers in cases of accident. The BJP was prominent in pleading for such restrictions.

Prime Minister Modi's effort will be to smooth these waters and in the field of foreign policy cordial relations with Washington are an essential element in the trilateral balancing of interests among Japan and China. Mr Modi's special relationship with Mr Abe is a plus factor for the US because Japan is an old American ally. And both New Delhi and Washington are wary of a rising China while the latter banks on India and Japan to balance Beijing’s expansionist policies.

There is, of course, the past of a denial of a visa to Mr Modi on the basis of his inaction in the 2002 anti-Muslim riots in Gujarat. But neither side is interested in dwelling upon that past, although one can expect some anti-Modi demonstrations during his visit. Perhaps to guard against that possibility, the Prime Minister made a point of declaring that Indian Muslims' loyalty to the country was unquestionable in his CNN International interview.

Overall, Prime Minister Modi's visit to the US will mark a new chapter in relations between the two countries. There are of course affinities he personally shares with America. He admires its vitality, its sophistication in public relations he has imported into his own election campaigns, the great technological achievements and a free-wheeling economy that has reached immense heights.

Besides, as the Prime Minister has reminded the world on more than one occasion, he is a Gujarati, with trade and commerce being in his blood stream. Indeed, the buzz among the diaspora in the US, a proportion of them being Gujaratis, is reaching dizzying heights and it plans to give him a gala reception. Indeed, the credo of frugal living and hard work favoured by Gujaratis is also valued in the American scheme of things.

There are reasons to believe that Mr Modi is setting high hopes on his US visit. How much he will be able to achieve remains to be seen, but if the economic dimensions turn out to be right, he would be satisfied. The new series of crises in the Middle East will, indeed, be an impediment in so far as the future of President Obama's remaining term in office and legacy will depend upon how his new gamble in the Middle East turns out.

In any event, the country is looking forward to the concrete results from the trip. The hoopla created by the electronic media will hinder, rather than help, in forming a correct perspective.

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MIDDLE

From Elvis Presley to Boman Irani
Zahur H Zaidi

I remember it was 20 years ago when we joined this wonderful academy in Mussoorie to steer the future of India. Our young heads were full of fancy ideas and large egos. These were further boosted by a stream of regular visitors who came seeking suitable matches for their children from amongst future civil servants. One such family met me in a nice restaurant just outside the academy gates.

I recall it was a pleasant evening. The family was accompanied by their chirpy 20-year-old daughter who wanted to see her prospective “Jijaji”. Trying to make PC, this sweet girl remarked, “Bhaiyya! You look just like Elvis Presley!” Schooling in an all-boys' boarding school in dusty Rajasthan ensured that I would always be ill at ease in the company of women. I blushed and said something inane.

Destiny ordained that I would not become that girl’s “Jija”. Instead I chose to marry my wife whose love for me has only grown with age and today it is only marginally less than her love for my ATM card. In 15 years of our marriage she has never even hinted that I resemble Elvis — the handsome king of Rock ‘n’ Roll.

From Mussoorie I went on to serve the nation wearing a khaki uniform, lived half my life in mofussil towns, underwent numerous transfers, fathered two wonderful children who have been to numerous schools, lived on a pre 6th Pay Commission salary for a large part of my career, rebuked by bosses, visited different places and made some wonderful friends. After taking several blows on the chin, the fancy ideas and my large ego have long vanished.

Last month I met a friend from college. Over dinner that evening I discovered that his wife was the pretty Jija-seeking Elvis fan I met briefly two decades ago in Mussoorie. She is a beautiful woman now. Over kebabs she remarked, “Bhai Sahab! You have an uncanny resemblance to a film star. Who? I can't place.” I wanted to suggest Elvis Presley but my life-long discomfort in the company of women wouldn't allow anything but a visible blush.

Then she exclaimed, “Yes! I got it! You look so much like Boman Irani!”

Boman Irani!! But he is a far cry from the legendry Elvis Presley! For the rest of the evening I was rendered silent. My wife loves such moments.

That night I kept wondering how I had metamorphosed from Elvis to Boman.

And then I figured it out. Dear Elvis, if only you had traded your blue suede shoes for Sam Brownes, your guitar for a baton, survived on a sarkari salary for 20 years not in ‘Graceland’ but in houses built by the state PWD and seen the rough and tumble of the Indian civil services, perhaps you would have looked like me.

But I am not complaining. I look forward to the next 15 years that I will serve my country in khaki. And what the heck! Boman Irani is also a star!

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OPED — Neighbours

India, Bangladesh need to be proactive
Pinak Ranjan Chakravarty

The External Affairs Minister Sushma Swaraj greets her Bangladeshi counterpart Abdul Hassan Mahmood Ali during a meeting in New Delhi.
The External Affairs Minister Sushma Swaraj greets her Bangladeshi counterpart Abdul Hassan Mahmood Ali during a meeting in New Delhi. PTI

PRIME Minister Modi has made it amply clear that his government seeks friendly and cordial relations with Bangladesh despite the election rhetoric about Bangladeshi illegal immigrants being sent back. Bangladesh Foreign Minister Abul Hassan Mahmood was in Delhi recently to meet his counterpart, Indian External Affairs Minister (EAM) Sushma Swaraj, for the third session of the bilateral Joint Consultative Meeting (JCM). The Indian EAM had visited Dhaka in June for her first “stand-alone” visit to a foreign country. Prime Minister Modi is reported to have told Foreign Minister Mahmood that Bangladesh and India are linked by the past, present and future. He also reiterated to the visiting Bangladeshi Minister that India would do everything possible for the growth, peace and prosperity of Bangladesh.

Goodwill for Sheikh Hasina

There is no dearth of goodwill in India for the Prime Minister Sheikh Hasina. India recognizes her crucial role in enhancing bilateral relations, after she came to power in 2009. Relations had touched rock bottom during the government led by former prime minister Begum Khaleda Zia. She had adopted a confrontational approach, in alliance with the Islamist party Jamaat-e-Islami and other pro-Pakistan political elements. Her policies brought Bangladesh to the brink of chaos, with Islamists running amok. Her government also played into the hands of Pakistan by cooperating with the ISI in all kinds of anti-Indian activities designed to de-stabilise India. Khaleda’s Zia’s and her allies were routed in 2009 election. Her defeat underlined how much she had alienated the Bangldeshi people. The culpability of her son Tarique Zia , the so-called “Crown Prince”, in promoting these policies for pecuniary gain is now well known. Tarique has paid a price and was forced into exile with no hope of returning home, unless the Bangladesh Nationalist Party (BNP) makes a comeback in the electoral race and withdraws the arrest warrant and bribery cases against him. By boycotting the subsequent election last year, the BNP made a cardinal error and the Sheikh Hasina-led Awami League (AL) and her secular alliance partners swept back into power unopposed.

Ticklish issues
Bangladesh wants an assurance from India that it will ensure that any funnelling of money to Bangladeshi extremist groups is stopped.
Earlier, India was worried about Bangladeshi territory being used by Indian insurgent groups, terrorist infiltration, pushing in fake Indian currency, arms smuggling and other subversive activities.
A new complication, with potential to create mistrust, has arisen after allegations that have surfaced linking money laundering by the Saradha scam that has netted politicians in West Bengal.
CBI probe into the scam included Assam and Odisha in its ambit. A serious allegation has emerged regarding transfer of Saradha’s money to the Jamaat-e-Islami, a pro-Pakistani fundamentalist Islamic organisation, whose leaders are on trial for war crimes during the 1971 War of Liberation.

The Saradha scam
The Saradha Group financial scam was caused by the collapse of a Ponzi scheme run by Saradha Group, a consortium of over 200 private companies believed to be running a wide variety of collective investment schemes in Eastern India. The group leveraged apparent proximity to political and bureaucratic power centres to build an image of a successful and trustworthy financial organisation among investors.
An estimated Rs 200-300 billion, was collected from over 1.7 million depositors, before the scheme collapsed in April 2013. In the aftermath of the scandal, the state government of West Bengal, where the Saradha Group and the majority of duped investors were based, instituted an inquiry commission to investigate the collapse. The Union Government, through the Income Tax Department and Enforcement Directorate, launched a multi-agency probe to investigate the Saradha scam, as well as other similar Ponzi schemes.
In May 2014, the Supreme Court of India citing inter-state ramifications, possible international money laundering, serious regulatory failures and alleged political nexus transferred all investigations in the Saradha scam and other Ponzi schemes to the Central Bureau of Investigation.
The Special Crime Branch of CBI probing the Saradha scam recently interrogated Trinamool Congress Lok Sabha MP Subhendu Adhikari. He is the second Trinamool Congress MP after Srinjoy Bose, who was questioned by the CBI in the Saradha case apart from Kunal Ghosh, who was already behind bars before the CBI took charge of the probe.

Special economic zone

The 31-para joint statement, issued at the conclusion of the JCM, is impressive in so far its length is concerned. Shorn of its diplomatic verbiage, there are no new elements, except for the proposed setting up of a special economic zone in Bangladesh for Indian industries. Bangladesh-India relations seem to be going over the same ground and the same issues. Many such issues revolve around connectivity infrastructure, utilisation of the lines of credit, energy trade, border management including border trade, non-tariff barriers, customs cooperation and enhancement of people-to-people contacts. A serious review of the ground rules relating to utilisation of lines of credit is much overdue. There is a huge overhang of archaic procedures that delays implementation of procurement and projects. MEA’s severe human resource crunch also takes its toll on efficiency, as overworked officials battle multiple issues on a wide-ranging front. Bilateral ties need a new big idea to re-energise the relationship. The Teesta Water-Sharing Agreement and the Land-Boundary Agreement have become markers for further progress in bilateral relations. It need not be so but domestic political compulsions on both sides appear to trump the pragmatic approach that should make both countries focus on other issues and keep the ball in play.

Effect of Saradha scam

A new complication, with the potential to create mistrust has arisen after allegations that have surfaced linking money laundering by the Saradha scam that has netted politicians in West Bengal. The CBI probe into the scam is expanding its coverage to Assam and Odisha. A serious allegation has emerged regarding funnelling of Saradha’s money to the Jamaat-e-Islami, a pro-Pakistani fundamentalist Islamic organisation, whose leaders have been put on trial for war crimes during the 1971 war of liberation. When the Jamaat leader Qader Mollah was convicted and hanged there were demonstrations on the streets of Kolkata by Indian Islamist sympathisers of the Jamaat. It seems that West Bengal’s Islamist leaders are opposed to Sheikh Hasina and the AL because of the Bangladeshi PM’s determined effort to punish the war criminals belonging to the Jamaat.

Bangladesh has taken the view that the allegations of money transfers by Saradha to the Jamaat-e-Islami is a matter for India to investigate but there is little doubt that Sheikh Hasina’s government will be deeply worried, if the allegations are proven to be true. As the investigations into the scam proceeds further and murky details emerge, India will then have to manage the fallout on bilateral ties. It is even being alleged that West Bengal’s Chief Minister Mamata Banerjee’s opposition to the two pending agreements on the Teesta and the Land Boundary has been influenced by West Bengal’s Islamist leaders because of their antipathy to Sheikh Hasina and their sympathy for the Islamist Jamaat in Bangladesh. While this may or may not be true, the needle of suspicion has been pointed, adding to complications that permeate Bangladesh-India relations.

Extremist groups

Indeed the visiting Bangladeshi foreign minister has flagged his country’s concern to Indian leaders and officials, on the issue of money reaching Bangladeshi extremist groups, without naming any party or group in India. For Bangladesh this issue comes at a time when the second Jamaat leader has been convicted of war crimes and sentenced to death which has, on appeal, been changed to life imprisonment. This verdict will trigger countrywide hartals and protest by Islamists that has the potential of unleashing violence across the country. It is now Bangladesh’s turn to seek assurances from India that it will ensure that any funnelling of money to Bangladeshi extremist groups is stopped. Earlier, it was India which was worried about Bangladeshi territory being used by Indian insurgent groups, terrorist infiltration, pushing in fake Indian currency, arms smuggling and other subversive activities.

Transfer of funds

Bangladeshi Civil Society representatives have already come out and raised questions on this issue. Human rights activist Shahriar Kabir, a staunch secular stalwart, has questioned the role of Trinamool Congress’s Rajya Sabha MP Ahmed Hassan Imran, in the context of transfer of funds by Saradha to the Jamaat in Bangladesh. The Enforcement Directorate has questioned the Indian MP in connection with allegations that money from the Saradha scam was diverted to the Jamaat for its activities directed against the Sheikh Hasina government. The Indian MP is one of the founder members of the Students’ Islamic Movement of India (SIMI) in West Bengal which now stands banned. The CBI is also investigating this connection. When the Sheikh Hasina government launched a crackdown on the Jamaat and allied Islamist organisations, reports surfaced that many of their leaders fled across the border into West Bengal and were reportedly given shelter by local Islamist leaders.

Both Bangladesh and India need to move quickly to bury the Sarada scam fallout by quick and thorough investigation to reveal the truth. The nexus between the Jamaat and its sympathisers in West Bengal must be exposed and any wrongdoing punished. If required Bangladesh’s cooperation should be sought in the investigation. India’s ties with Bangladesh are too important and cannot be left at the mercy of parochial and religious forces.

The writer, a former Secretary in the Ministry of External Affairs, is also a former High Commissioner to Bangladesh

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