Neville Chamberlain on Appeasement (1939) by Chamberlain and The Essay

Neville Chamberlain on Appeasement (1939) by Chamberlain and The Munich Agreement A Total and Unmitigated Defeat by Churchill - Essay Example Neville Chamberlain on Appeasement (1939) by Chamberlain and the Munich Agreement â€Å"A Total and Unmitigated Defeat† by Sir Winston Churchill Appeasement is a diplomatic strategy that consists of pleasing the aggressor in order to avoid armed resistance. The most well-known example of appeasement is the the Munich Agreement that took place between Conservative British Prime Minister Neville Chamberlain and Adolf Hitler in 1938. In September 1938, Neville Chamberlain, met Adolf Hitler at his home in Berchtesgaden. Hitler informed Chamberlain about his his intension to invade Czechoslovakia unless Britain supported Germany’s plans to takeover the Sudetenland . After discussing the issue with the French Prime minister Edouard Daladier and Czechoslovakia's head of state Eduard Benes, Chamberlain informed Hitler that his proposals could not be acceptable. Chamberlain refusal put Adolf Hitler in a difficult situation but he exploited both Britain and France by their will a gainst war and on the suggestion of Italian Duce Benito Mussolini, he planed to held a four-power conference of Germany, Britain, France and Italy excluding both Czechoslovakia and the Soviet Union. The meeting took place in Munich on 29th September, 1938 and Chamberlain and Edouard Daladier signed the Munich Agreement. The agreement gave the right of accession of Sudetenland to Germany without Czechoslovakia’s will. In return, Hitler promised not to make any further territorial demands in Europe (Gado, para.1-3).

Lift of a Flat Surface in Wind

Lift of a Flat Surface in Wind When working with lift, there are several concepts[AR2]that need to be considered, most prominently Bernoullis Principle. This principle, named for its creator Daniel Bernoulli, states that when an incompressible, smoothly flowing fluid gains speed, internal pressure in the fluid decreases, and vice versa. (Hewitt, 2004) Put simply in terms of aerodynamics, Bernoulli states that when a fluids speed increases, the pressure perpendicular to the flow of the fluid is decreased. For example, the Bernoulli Effect can be clearly observed in terms of a plane in flight. Planes are able to fly [ar3]because their wings are designed to cause air to flow faster over the top than the bottom. This creates lower are pressure above the wing, and the greater pressure below the wing pushes the plane up. This upward pressure is referred to as lift force, or simply lift. (Actforlibraries.org, 2017) [ar4]      Lift is generated by deflecting airflow. By taking Newtons second law of motion (), it can be stated that the aerodynamic forces on a body with 0 drag [ar5]relate directly to the change in momentum of the fluid, which is equal to mass velocity of the fluid. (Hall, 2015) An objects lift capabilities can be measured using the equation: Where =density, =velocity, =surface area and =Coefficient of Lift. (Hodanbosi, 1996) Lift is dependent on velocity, air density, air viscosity/compressibility, the shape of the body and the bodys inclination in relation to the airflow. The velocity variable in the equation is, therefore doubling the velocity will quadruple the lift etc. Additionally, dependence on shape, viscosity/compressibility and inclination is complex; to deal with these they are characterized as a single variable, known as the coefficient of lift. (Hall, 2015) The lift coefficient, used to model the complex dependencies on lift, can be obtained using the equation: Where lift, the dynamic pressure () and surface area. Therefor, expresses the ratio of lift force to dynamic pressure times surface area. (Hall, 2015) It is most often found experimentally, however the values for this experiment have been taken from Aerospaceweb.com. (Jeff, 2003) Also, by using an International Standard Atmosphere (ISA) table, the air density variable for this experiment shall be assumed to be 0.9337kgm3, based on an assumed altitude of approx. 691m above sea level. (Cavcar, N/A) Lift is dependent of several variables, including inclination. The angle between a surface and the airflow is referred to as the angle of attack. The angle of attack has a strong effect on the lift being produced. In terms of an airplane: when an airplane is preparing to take off, it accelerates swiftly to reach the required velocity. However, just before lifting off, the pilot tilts the wings, creating a greater angle of attack and giving the airplane the required lift to leave the ground. In terms of surfaces such as thin aerofoils and roofs, the coefficient of lift is directly proportional to the angle of attack, when the angle is within +/- 10 °. For larger angles, the dependence becomes quite complex and is therefore defined by a coefficient of lift. (Hall, 2015) By using the above lift equation, theoretical equations can be created to assist in the analysis of the outcome of the experiment, for example: Where 3.61ms-1 (calculated using the iOS app Wind Meter), the area of one of the roof pieces and the corresponding coefficient of lift[AR6]. Below are the full results of the theoretical calculations performed for this experiment: Lift Applied to Roofs of Different Areas and Inclinations 0.0025m2 0.01 m2 0.015265 m2 0.0225 m2 0 ° 0.015N 0.061N 0.093N 0.137N 15 ° 0.011N 0.043N 0.065N 0.096N 30 ° 0.013N 0.052N 0.079N 0.116N 45 ° 0.016N 0.064N 0.098N 0.144N 60 ° 0.013N 0.052N 0.079N 0.116N Table 1 (created using[JB7] MS Excel)   Ã‚   Graph 1 (created using MS Excel) Based on these calculations, it can be assumed that the lift force will always peak at around 45 °, reach the minimum around 15 ° and follow an identical pattern for each roof size[AR8]. Based on the above background research, a hypothesis can be formulated regarding the factors affecting lift force. It can be hypothesized that: The lift applied to a surface in wind is dependent on its surface area and angle relative to the airflow. This relationship peaks towards larger angles and surface areas.[AR9] An electronic balance was set up on a workbench and turned on, ensuring the units were set to grams. An electronic balanced was utilised for this experiment because lift, as a force, can be recorded by measuring how much mass is being lifted away from the balance (in negatives) and converting this into Newtons. The fan was placed approximately 0.3m away from the electronic balance, adjusted to direct the airflow directly above the balance. The base piece of cardboard, measuring 0.1m by 0.15m (10cm2 by 15cm2), was attached to the balance with electrical tape, ensuring the edge (not the flat side) was directed at the fan. The first roof piece (measuring 0.0025m2, or 25cm2) was attached to the base piece, then the balance was TARED. The fan was turned on, set at speed 1. Three results were recorded from the balance[AR10] before the fan was turned off. The roof piece was removed, the first angled piece (at 15 °) attached the roof piece re-fixed. The balance was again TARED and the fan was then turned back on, three results recorded and turned off again. This process was repeated for every roof piece (measuring 0.0025m2/25cm2, 0.01m2/100cm2, 0.015265m2/156.25cm2 and 0.0225m2[AR11]/225cm2) fixed to every angled piece (at 15 °, 30 °, 45 °, 60 ° and 0 °). An average was later taken of each group of results, and these averages were graphed in Excel for further in-depth analysis. There were several variables involved with this experiment. The independent variables were the wind speed (which was controlled by using of the same fan), the roof area and the roof angle, and the dependent variable was the lift. The controlled variables included the use of the same[AR12] electronic balance, roof, angle and base pieces and the same speed setting on the fan, the position of the fan/airflow, the position of the scales and the position of the base piece and, by extension the roof structures.[AR13] These variables were controlled to ensure that all results are viable and in agreement. In order to maintain safety in this experiment, the following procedures were implemented: Safety glasses were worn, the electronic equipment was kept away from water, the guard around the blades was not touched while the fan was running, the cardboard was handled carefully so as not to cause paper cuts and, likewise, when the cardboard pieces were cut out the scissors were handled with care.[AR14] Lift Applied to Roofs of Different Areas and Inclinations 0.0025 m2 0.01 m2 0.015265 m2 0.0225 m2 0 ° 0.056N 0.175N 0.250N 0.287N 15 ° 0.075N 0.186N 0.259N 0.242N 30 ° 0.103N 0.159N 0.159N -0.640N 45 ° 0.111N -0.556N -0.620N -0.770N 60 ° 0.056N -0.631N -0.715N -0.787N Table 2 (created using MS Excel) Overall, the results of this experiment are plausible [AR16]at best. When comparing the empirical data to the theoretical data listed above, there are very few similarities and patterns. However, on close examination of the results there are several small connections. For example, even though each set of points has a different pattern, most of these patterns are similar in shape, and each set peaks at or before 45 °. However, from here the theoretical and empirical are completely different. A likely reason for the dramatic differences between the two sets of results is the conditions under which the experiment was performed. Despite the actions taken, there were still a number of uncontrollable variables that may have affected the outcomes recorded. For example, the air-conditioning unit operating on the roof may have disrupted the airflow, resulting in a less continuous stream and thus a more unpredictable amount of lift. Similarly, the fan used in the experiment may not have provided a strong enough direct flow of air to the structure, also causing anomalous results[AR17]. However, despite the obvious anomalies in results, the experiment still manages to examine the relationship between angle of attack, surface area and lift force. For three of the four data sets (excluding 0.0025m2) the graphs follow a very similar pattern, indicating that the results are accurate in terms of the relationship, not the actual data observed. In addition, all data sets drop off after they reach 45 °, showing that, just as observed in the theoretical results, lift force reaches its peak at around 45 ° inclination into the wind. The most likely reason for this is that past this inclination the structure presents a greater amount of its surface into the wind, allowing it to be pushed down. This phenomenon creates the positive mass results seen in the table above. This was not accounted for in the theoretical equations, which may have caused some of the anomalous results stated above[AR18]. Another prominent difference between empirical and theoretical results is the distinct differences between lift values in the theoretical data. These data sets remain at a fixed distance apart for the entire graph, directly opposed to the empirical data points which for the most part are plotted very close together. This illustrates a lower difference in lift force between different surface areas, however these results are likely due to the unstable nature of the structure used in the experiment. [AR19]Particularly in terms of the larger roof pieces, the structure became more unsteady, possibly resulting in the lower lift force recorded above. In terms of the patterns observed in the empirical data, the larger roof sizes do produce more lift, however past their peak they also create more downward force. While the smallest size does generate the greatest lift, the three larger sizes do produce an increasing amount of lift, in comparison with each other. As mentioned previously, the structure used in the experiment, particularly with the larger roof piece attached, was very unstable. [AR20]This is a likely reason for the outlying point for the area of 0.0225m2 at an inclination of 30 °. This surface area is the largest used, and it was very unstable atop the base piece, often sliding to the side and not remaining square with the base. Most likely, this instability is what has caused such an obvious anomaly, as the roof piece sliding may have exposed a larger surface area to the airflow, thus created more downward force and less upward lift. Therefore, with the above considerations it mind, and despite the severe anomalies between theoretical and empirical data, the hypothesis of: The lift applied to a surface in wind is dependent on its surface area and angle relative to the airflow. This relationship peaks towards larger angles and surface areas. Is supported by this experiment.[AR21] When performing an experiment, there are always a multitude of variables that affect the outcome, and a variety of ways in which the processes can be improved upon to achieve a better result. For example, in this experiment an ordinary household fan was used to generate the required airflow. Such a device is designed to provide air to an entire room, not to provide a direct flow of air such as is required to make this experiment a success. To make the experiment more successful, a more direct airflow should be utilised, possibly by making use of a wind tunnel, or even a hair dryer[AR22]. Similarly, the electronic balance used to take measurements was only a small, relatively simple piece of equipment. Also, as previously mentioned, the air-conditioning unit in the room was likely disrupting the already-unsteady airflow. This, along with the experiments position next to the doorway and the other people in the room, may have been the cause of the discrepant results, which often differed by up to 0.0015kg. To solve this, the experiment could be re-conducted in a controlled environment with nothing affecting the more direct airflow. Additionally, a more accurate electronic balance could be used[AR23]. A more accurate balance would a piece of equipment connected to a computer that records all results for each set of tests and identifies an accurate average. The most prominent issue with the experiment was the results created by the electronic balance. The results were greatly varied, as stated above, suggesting that there were several uncontrolled variables at play, affecting the data. There are several methods that could be employed to rectify this, including those already mentioned. Performing the experiment in an isolated area where all variables can be controlled so nothing can interfere with the results is the most likely way to generate more accurate results. This, coupled with the use of a more stable structure (i.e. made from a sturdier material and fixed for effectively), a more accurate airflow and more sophisticated measuring technologies, is the best course to re-perform the experiment and give more viable results. References   Actforlibraries.org, 2017. Bernoullis Principle of Lift. [Online] Available at: http://www.actforlibraries.org/bernoullis-principle-of-lift-4/[Accessed 04 March 2017]. Aerodynamics for Students, 2016. Lift and Lift Coefficient. [Online] Available at: http://s6.aeromech.usyd.edu.au/aerodynamics/index.php/sample-page/aircraft-performance/lift-and-lift-coefficient/[Accessed 04 March 2017]. Benson, T., 2014. Lift Formula. [Online] Available at: https://www.grc.nasa.gov/www/k-12/WindTunnel/Activities/lift_formula.html[Accessed 09 March 2017]. Cavcar, M., N/A. The International Standard Atmosphere. [Online] Available at: http://home.anadolu.edu.tr/~mcavcar/common/ISAweb.pdf[Accessed 04 March 2017]. Hall, N., 2015. Inclination Effects on Lift. [Online] Available at: https://www.grc.nasa.gov/www/k-12/airplane/incline.html[Accessed 19 March 2017]. Hall, N., 2015. Lift Equation. [Online] Available at: https://www.grc.nasa.gov/www/k-12/airplane/vel.html[Accessed 02 March 2017]. Hall, N., 2015. The Lift Coefficient. [Online] Available at: https://www.grc.nasa.gov/www/k-12/airplane/liftco.html[Accessed 04 March 2017]. Hall, N., 2015. Velocity Effects on Aerodynamic Forces. [Online] Available at: https://www.grc.nasa.gov/www/k-12/airplane/vel.html[Accessed 02 March 2017]. Hewitt, P. G., 2004. Bernoullis Principle. [Online] Available at: http://www.nsta.org/publications/news/story.aspx?id=49598[Accessed 02 March 2017]. Hodanbosi, C., 1996. Lift Formula. [Online] Available at: https://www.grc.nasa.gov/www/k-12/WindTunnel/Activities/lift_formula.html[Accessed 02 March 2017]. HyperPhysics, N/A. Bernoulli Equation. [Online] Available at: http://hyperphysics.phy-astr.gsu.edu/hbase/pber.html[Accessed 02 March 2017]. Jeff, S., 2003. Airfoils at High Angles of Attack. [Online] Available at: http://www.aerospaceweb.org/question/airfoils/q0150b.shtml[Accessed 04 March 2017]. Physics Forum, 2011. Fluid mechanics; Lift Force on a Roof; Bernoullis Equation. [Online] Available at: https://www.physicsforums.com/threads/fluid-mechanics-lift-force-on-a-roof-bernoullis-equation.533145/[Accessed 02 March 2017]. Scott, J., 2003. Airfoils at High Angle of Attack. [Online] Available at: http://www.aerospaceweb.org/question/airfoils/q0150b.shtml[Accessed 04 March 2017]. Scott, J., 2003. Lift Coefficient Thin Airfoil Theory. [Online] Available at: http://www.aerospaceweb.org/question/aerodynamics/q0136.shtml[Accessed 04 March 2017].   

Organic Molecules Challenge :: essays research papers

Organic Molecules Challenge Silicon's Reign as King of Semiconductors There is a revolution fomenting in the semiconductor industry. It may take 30 years or more to reach perfection, but when it does the advance may be so great that today's computers will be little more than calculators compared to what will come after. The revolution is called molecular electronics, and its goal is to depose silicon as king of the computer chip and put carbon in its place. The perpetrators are a few clever chemists trying to use pigment, proteins, polymers, and other organic molecules to carry out the same task that microscopic patterns of silicon and metal do now. For years these researchers worked in secret, mainly at their blackboards, plotting and planning. Now they are beginning to conduct small forays in the laboratory, and their few successes to date lead them to believe they were on the right track. "We have a long way to go before carbon-based electronics replace silicon-based electronics, but we can see now that we hope to revolutionize computer design and performance," said Robert R. Birge, a professor of chemistry, Carnegie- Mellon University, Pittsburgh. "Now it's only a matter of time, hard work, and some luck before molecular electronics start having a noticeable impact." Molecular electronics is so named because it uses molecules to act as the "wires" and "switches" of computer chips. Wires, may someday be replaced by polymers that conduct electricity, such as polyacetylene and polyphenylenesulfide. Another candidate might be organometallic compounds such as porphyrins and phthalocyanines which also conduct electricity. When crystallized, these flat molecules stack like pancakes, and metal ions in their centers line up with one another to form a one-dimensional wire. Many organic molecules can exist in two distinct stable states that differ in some measurable property and are interconvertable. These could be switches of molecular electronics. For example, bacteriorhodpsin, a bacterial pigment, exists in two optical states: one state absorbs green light, the other orange. Shinning green light on the green-absorbing state converts it into the orange state and vice versa. Birge and his coworkers have developed high density memory drives using bacteriorhodopsin. Although the idea of using organic molecules may seem far-fetched, it happens every day throughout nature. "Electron transport in photosynthesis one of the most important energy generating systems in nature, is a real-world example of what we're trying to do," said Phil Seiden, manager of molecular science, IBM, Yorkstown Heights, N.Y. Birge, who heads the Center for Molecular Electronics at Carnegie-Mellon, said two factors are driving this developing revolution, more speed and less space. "Semiconductor chip designers are always trying to cram more electronic

History of Pakistan

My History Notes Harris Masood Don’t Dare Touch! O Levelz  o2 lecture 1- ideology of pakistan. lecture 2- ideology of pakistan in the light of statements of quaid-i-azam and allama iqbal lecture 3- the aligarh movement lecture 4- sir syed ahmad khan and his contributions . lecture 5- major political developments 1857-1918 lecture 6- the khilafat movement lecture 7- muslim politics in british india: 1924-1935 lecture 8- allama iqbal’s presidential address december 1930 lecture 9- muslim politics and chaudhry rahmat ali lecture 10- the congress ministries– policies towards muslims lecture 11- the lahore resolution, 1940. lecture 12- major political developments in 1945-46 lecture 13- towards independence, 1947 lecture 14- constitutional development in british india lecture 15- the problems of the new state lecture 16- the objectives resolution (1949) lecture 17- constitutional issues lecture 18- constitution making(1947-56) Lecture 1 – Ideology of Pakistan Ideology of Pakistan Ideology is a set of beliefs, values and ideals of a group and a nation. It is deeply ingrained in the social consciousness of the people.It is a set of principles, a framework of action and guidance system that gives order and meaning to life and human action. Ideology emphasizes on some particular principles, ideals and blueprint for the future. It is a review of the existing political, social and economic arrangements that create consciousness based on its principles. It legitimizes or delegitimizes certain ac tions and philosophies. Ideology gives nation a direction and worldview and its implementation is the responsibility of the concerned people. Ideology of Pakistan The ideology of Pakistan took shape through an evolutionary process.Historical experience provided the base; Allama Iqbal gave it a philosophical explanation; Quaid-i-Azam translated it into a political reality; and the Constituent Assembly of Pakistan, by passing Objectives Resolution in March 1949, gave it legal sanction. It was due to the realization of the Muslims of South Asia that they are different from the Hindus that they demanded separate electorates. However when they realized that their future in a ‘Democratic India’ dominated by Hindu majority was not safe, they changed their demand to a separate state.The ideology of Pakistan stemmed from the instinct of the Muslim community of South Asia to maintain their individuality in the Hindu society. The Muslims believed that Islam and Hinduism are not on ly two religions, but are two social orders that produced two distinct cultures. There is no compatibility between the two. A deep study of the history of this land proves that the differences between Hindus and Muslims are not confined to the struggle for political supremacy but are also manifested in the clash of two social orders.Despite living together for more than one thousand years, they continue to develop different cultures and traditions. Their eating habits, music, architecture and script, all are poles apart. The basis of the Muslim nationhood was neither territorial nor racial or linguistic or ethnic rather they were a nation because they belonged to the same faith, Islam. They demanded that the areas where they were in majority should be constituted into a sovereign state, wherein they could order their lives in accordance with the teachings of Holy Quran and Sunnah of Holy Prophet (PBUH). Evolution of ‘Two Nation Theory’Concept of Muslims as a Nation deve loped before the establishment of Pakistan. Pakistan was the product of this concept of nationhood rather than Pakistan creating a concept of nationhood. Retrospectively the Muslim nationalism emerged with the advent of Islam that introduced new principles pertinent to every sphere of life. It pledged the redemption of the humankind establishing a benign society based on Qur’anic teachings. The beginning of the Muslim nationalism in the Sub-Continent may be attributed to the first Indian who accepted Islam. The Arab traders had introduced the new religion, Islam, in the Indian coastal areas.Muhammad bin Qasim was the first Muslim invader who conquered some part of India and after that, Mahmud of Ghazna launched 17 attacks and opened the gate to preach Islam. The Muslim sufi (saints) like Ali Hejveri, Miran Hussain Zanjani etc. entered Sub-Continent. They, rejecting the vices in the Indian society, presented the pure practical picture of the teachings of Islam and got huge con versions. Qutub-ud-Din Aibuk permanently established Muslim dynasty in India that followed Sultanate and Mughal dynasties. Thus a strong Muslim community had emerged in India who had its own way of life, traditions, eroes, history and culture. Islam could not be absorbed in Hinduism. Deen-e-Ilahi, Bakhti movements, etc. created reaction amongst the Muslim ulama to preserve the pure Islamic character and save it from external onslaught. Role of Sheikh Ahmad Sirhindi and others is noteworthy. Equality and social justice inspired conversions to Islam. The British won over the Muslim rulers due to the industrial and scientific developments and modern war strategy. The War of Independence (1857) was a shattering setback to the Indian Muslims who were held responsible for the rebellion by the British.The Muslims were put into the backwardness with the help of Hindus. This was one of the outstanding motivations that paved the way to declare the separate identity of nationalism, the Muslim nationalism. The Muslim scholars sought to reform the teaching of Islamic law and to promote its application in a Muslim society. The prominent name among them is Sir Syed Ahmad Khan (1817-98) who awakened and guided his community well in time. His educational drive, the Ali-Garh movement, proved to be the best means of social mobility for the Muslim gentry under colonial rule.In 1885 the Indian National Congress was founded to indicate the beginning of the Indian nationalist movement under the British. The Congress worked and helped the British rule. Sir Syed advised the Muslims not to join it because, he thought, the Muslims were not in position to involve into the anti-government activities. It has been argued that Sir Syed's fear of Hindu domination sowed the seeds for the â€Å"Two Nations Theory† later espoused by the All-India Muslim League, founded in 1906 and led to its demand for a separate state for the Muslims of India.Sir Syed argued that modern education and non -political activities might be the key to Muslim advancement. The Ali-Garh movement produced educated leadership who could protect the Muslims’ rights on the Western political lines. All India Muslim League had been founded in Dhaka to promote loyalty to the British and to protect and advance the political rights and interests of the Muslims of India. Thus the concept of ‘separate electorates’ was put forward to dawn a new day for the Indian Muslims. The Two-Nation Theory served as the basis of demand for Pakistan by the Muslims in British India.There are two major nations in British India. The Muslims are not a community but a nation with a distinctive history, heritage, culture, civilization, and future aspirations. The Muslims wanted to preserve and protect their distinct identity and advance their interests in India. They wanted to order their lives in accordance with their ideals and philosophy of life without being overwhelmed by an unsympathetic majority. Initially, they demanded safeguards, constitutional guarantees and a federal system of government with powers to the provinces for protection and advancement of their heritage, identity and interests.Later, they demanded a separate state when neither the British nor the Hindu majority community was willing to offer those guarantees and safeguards. Hindi-Urdu Controversy Hindu revivalist movements turned more against the Muslims. Hindu nationalism was rival to the Muslim nationalism. The Indian nationalism forced Muslims to organize themselves politically to defend their interests effectively. After 1857, Hindi-Urdu Controversy was the major assault by the Hindus on Muslim heritage and legacy of the great Muslim Empire.Hindus were biased against Urdu as it was the Muslims’ language. They demanded Hindi as the official language replacing Urdu. There were demonstrations against Urdu by the Hindus in Banaras in 1867. It was the start of the Hindi-Urdu controversy. On the very iss ue, Sir Syed foretold about the unstable future of Hindu-Muslim unity. Hindus struggled vigorously to replace Urdu by Hindi in the offices. This enhanced the importance of the sense of Muslim separatism. The Muslim nationalism is manifested with the sublime principles to implement like: 1.Rule of Law, socio-economic justice, equity and fair play. 2. Equality of opportunity to all citizens irrespective of caste, sect, religion or region. 3. Religious and Cultural tolerance. 4. Respect for human dignity and rights. 5. Protection of the rights and interests of non-Muslims and freedom to practice their beliefs and religions. These principles are enshrined in the constitutions. We ought to work towards realization of these goals in reality and create institutions and processes that reflect these principles and values.Lecture 2- Ideology of Pakistan in the Light of Statements of QUAID-I-AZAM and ALLAMA Ideology of Pakistan in the Light of Statements of QUAID-I-AZAM and ALLAMA IQBAL The De velopment of Muslim Identity and Two-Nation Theory and Quaid-i-Azam and Allama Iqbal The sense of nationhood developed among the Muslims before the establishment of Pakistan. Their goal was mostly to protect and promote their identity and interests and shape their lives in accord with their ideals and philosophy of life without being overwhelmed by an unsympathetic majority.They adopted the strategy to get constitutional safeguards from the British against the cruel majority of Hindus but because of the antagonistic treatment from the rivals they set the goal of a separate state. Islam had central place to their further developments. The role of leadership is very important to put nation on the way. A good leadership infuses the qualities of awareness, consciousness, mobilization, sense of direction, and defense against the adversaries. The Muslims were lucky having such competent leadership. Muhammad Ali JINNAH M. A.Jinnah was a history-making leader who changed the course of histo ry. He possessed a visionary leadership, commitment to the cause and political mobilization capacity. He was a Charismatic Leader in the real sense of the meaning. ROLE OF JINNAH Jinnah played a decisive role in articulating the Muslim demands and pursuing these faced strong opposition from the Hindus and the British. He started his political career in 1906 by joining the Indian National Congress. He was elected to the Legislative Council in 1909 and in 1913 he also joined the All India Muslim League (AIML).Now he was member of both the political parties. Having disagreement with Gandhi on the issue of Swaraj (self-rule), complete freedom from the British and on using extra-constitutional means, Jinnah resigned from the Congress in 1920. His early efforts to promote Hindu-Muslim unity were materialized when THE LUCKNOW PACT (1916) was signed. The Hindus accepted the Muslim demands: †¢ Separate Electorate †¢ One-third Seats in Central Legislature †¢ protection of minor ity rights In the Nehru Report, the accepted Muslim rights were ignored. Jinnah retaliated forcefully by presenting 14 Points in 1929.He defined Muslim identity and mobilized them with reference to Islam and convinced others that Muslims are different from the Hindus and the Congress. Islamic principles, concepts and symbols surfaced in his speeches and statements. Jinnah used the term NATION for the Muslims of India in Feb 1935 (Legislative Assembly). He argued that the combination of religion, culture, race, arts, music and so forth make a minority a SEPARATE ENTITY. In March 1936 Bombay, he stated that the Muslims could arrive at a settlement with Hindus as TWO Nations. In 1937, he asserted that there is also a third party in India, the Muslims.In 1939, he roared that the Muslims and Hindus are two nations and they are going to live as a nation and playing part as a nation: We are a nation with our own distinctive culture and civilization, language and literature, names and nomen clature, sense of values and proportion, legal laws and moral code, custom and calendar, history and tradition, aptitudes and ambitions; in short, we have our own distinctive outlook on life and of life. By all cannons of international law, we are a nation. Speeches and statements: 1940-47 Jinnah believed in the force of Islam as he said that Islam is a dynamic force that can unite the Muslims.It can help to overcome the present crisis. It’s a source of inspiration and guidance providing ethical foundation, a framework, social order and civilization. Guidance & inspiration for constitution-making and Governance He also talked of the modern notions of state, constitution, civil and political rights and democracy. He assured that constitution of Pakistan would be framed by the elected assembly. Modern democratic and Islamic State He gave assurance of equality of all citizens and rights and freedom to religious minorities in the new state. ALLAMA IQBAL: POET AND PHILOSOPHERVISIO N OF A SEPARATE MUSLIM STATE Men like Allama Iqbal are born but in centuries. He was conscious of significance of Islam in lives of the Muslims. His first public appearance was in 1899 at the annual session of Anjuman Himayat-i-Islam in Lahore when he presented the poem, Nala-i-Yatim. At initial stages Dr Iqbal was a nationalist by ideas and his poetry contained verses like Tarana-i- Hind. His poetry was a critique of the existing societal conditions. Being educated from Europe, he knew all weak aspects of the Western culture. He criticized capitalism, materialism and lack of spiritualism.IQBAL- Focus on the conditions of the Indian Muslims Islam can salvage the Muslims Islam has always saved Muslim Islam is a living and dynamic ideology that can meet modern challenges Islam to help them to overcome their internal discord and enable them to meet external challenges With spiritualism based derived from Islam Ijtehad and Reinterpretation (READ: Reconstruction of Religious Thought in I slam) Address to the Muslim League Session, Allahabad, December 1930 I would like to see the Punjab, NWFP, Sind, Balochistan amalgamated into a single state as a self government within the British empire or without.This is the final destiny of the Muslims of N. W. India. (Dr Iqbal’s verses may be quoted) web site may also be visited: Lecture 3 – The Aligarh Movement The Aligarh Movement The War of Independence 1857 ended in a disaster for the Muslims. The British believed that the Muslims were responsible for the war of 1857 and therefore, they were subjected to ruthless punishment and merciless revenge. The British had always looked upon the Muslims as their enemies because they had ousted them from power.With the war of 1857 this feeling was intensified and every attempt was made to ruin and suppress the Muslims forever. Thus the Mughal rule came to an end and the sub- continent went directly under the British crown. Sir Syed Ahmad Khan made modern education the way to progress After the Muslim rule, the new rulers, the British, implemented a new educational policy with drastic changes. The policy restricted Arabic, Persian and religious education in schools and made English as the only medium of instruction as well as the official language in 1835.A wrong attitude of everything modern and Western, and disinclination to make use of the opportunities opening under the new regime was created among the Muslims. This tendency, had it continued long, would have proved disastrous for the Muslim community. Such were the days of despair and despondency when Sir Syed appeared on the horizon of Muslim India to rescue them. Sir Syed had the conviction that regeneration of the Indian Muslims had not at all visualized that mankind had entered a very important phase of its existence, i. e. n era of science and learning which was the source of progress and prosperity for the British. Therefore, modern education became the pivot of his movement for the regener ation of the Indian Muslims, which brought a complete orientation in their lives. He tried to transform Muslim minds from medieval outlook to a modern one. Hali and Shibli were also associated with the Aligarh Movement. Sir Syed’s first and foremost objective was to modernize the Muslims following the Western cultural values that could create friendly atmosphere for the two communities.He motivated his community to learn the Western philosophy and English literature to get along with the ruling people. Therefore, in order to fulfill this desire he started the Aligarh movement. He had two immediate objectives in view: 1) To remove the state of tension between the Muslims and the British government, and 2) To induce them to get jobs and other facilities under the new government. To him, this was the only way for the Muslims to prosper. The ideas of Sir Syed may be summed up as following: 1. To create an atmosphere of mutual understanding between the British government and the M uslims 2.To motivate the Muslims to learn Western education 3. To persuade Muslims to abstain from agitational politics Fortunately, Syed Ahmad Khan was able to attract a number of sincere friends who shared his views and helped him. Among them were well-known figures like Nawab Mohsin ul Mulk, Nawab Viqar ul Mulk, Hali, Shibli, Nazir Ahmad, Chiragh Ali, Mohammad Hayat, and Zakaullah. All these personalities advocated the cause set by Sir Syed Ahmad Khan. Some English professors like Bech, Morison, Raleigh and Arnold also contributed greatly in building up the Aligarh college into a first rate institution.Syed Ahmad launched his educational movement by setting up Gulshan School at Muradabad – 1859; Victoria School at Gazipur in 1863; Scientific Society for the translation of English works in the native language, Urdu, at Aligarh in 1864; Aligarh Institute Gazette imparting information on history – ancient and modern, science of agriculture, natural sciences, physical s ciences and Advanced Mathematics in 1866; Committee Striving for the Educational Progress of Muslims – 1870; Mohammedan Anglo-Oriental School (MAO) at Aligarh in 1875 at the pattern of English public schools and later raised to the level of college in 1877 and university in 1920; Mohammedan Educational Conference (1886), which met every year to take stock of the educational problems of the Muslims and to persuade them to get modern education and abstain from politics; it later became a political mouthpiece of the Indian Muslims and the forerunner of the All India Muslim league. Besides his prominent role in the educational uplift of the Muslims, Syed Ahmad Khan’s writings played important role in popularizing the ideals for which the Aligarh stood.His Risala Asbab-i-Baghawat-i-Hind in 1858; and other writings as Loyal Mohammedans of India; Tabyin-ul-Kalam and Khutbat-i-Ahmadiya rooted out the misunderstandings about Islamic teachings and helped create a cordial relatio n between the British Government and the Indian Muslims and also helped to remove the misunderstanding about Islam and Christianity. It was this platform from where Syed Ahmad Khan strongly forbade the Muslims to join the Hindu dominated political party, the Indian National Congress. He regretted the Urdu-Hindi controversy initiated by Hindus and predicted that both the nations could no longer live together. He stood for reserved Movement theory. eats for Muslims and also promoted the idea that Hindus and Muslims are two distinct nations, which led to the Two Nation Syed Ahmad Khan’s Aligarh Movement played a significant role to bring about an intellectual revolution among the Indian Muslims. Thus Aligarh Movement succeeded in achieving its major objectives and boosted up the depressed Muslim community to the real status of nation. Lecture 4 – Sir Syed Ahmad Khan and His Contributions Sir Syed Ahmad Khan and His Contributions The great emancipator of the Indian Muslims Sir Syed Ahmad Khan was born at Delhi in 1817. This is the period when the great Mughal Empire was close to a complete collapse.Sir Syed’s family had already joined the East India Company and his maternal grandfather served in Iran and Burma under the British government. Sir Syed got interest in English from his maternal family. SM Ikram writes, â€Å"For this insight into the affairs of the state and first contacts with Western learning and civilization he was indebted to his maternal grandfather†¦Ã¢â‚¬  (S. M. Ikram, Modern Muslim India, p. 18). Sir Syed was very healthy by birth and his grandfather remarked: â€Å"A Jat has been born in our family. † (Ibid. , p. 19) The death of Sir Syed forced him to join the British as head clerk in 1839. The death of his brother made him serious and energetic to face the neuroses of life courageously. Another event that changed him entirely was the War of Independence in 1857.In 1841, he passed examination and became sub- judge. At the eve of the War of Independence he was performing the duties as sub-judge in Bijnore. He established educational institutions and after coming at Aligarh he rejuvenated his aspirations to work for the depressed Muslims of the Subcontinent. He devoted his entire life for this purpose to bring the Muslims close to the British. He died on March 27, 1898 and was buried in Aligarh. His Services He took responsibility of the Indian Muslims when they had been thrown in backwardness, depression andn humiliation. The British held them criminal of the War while the Hindus had won the British being anti-Muslim force.In such environment, Sir Syed guided his community to rejoin the life. To Dr Qalb-i-Abid, â€Å"Sir Syed Ahmad Khan was among a very few leaders produced by Muslim India, who like Mohammad Ali Jinnah made a tremendous contribution in guiding the destinies of the Indian Muslims. † (Dr Q. Abid, Muslim Struggle for Independence, p. 11. ) Sir Syed and Politics In th e political arena, Sir Syed carved numerous successes; he eradicated misunderstandings between the Muslims and the British infused due to the past particular incidents. Awakening among the Muslims about the political ups and downs and co-existence in the presence of other nations in India was another contribution of Sir Syed.He motivated the Muslims to absorb the modern education of the West because this was the very motive of the Western expansion in the world. He visualized the bright future of the Muslims if they engaged themselves in the Western learning. Sir Syed won the British confidence and cordial relationship by saving their lives during the War of Independence. He utilized this relationship for the betterment of the Muslims. It was a subtle situation because the government had put the War crimes on the Muslim shoulders and assaulted their every aspect of life: â€Å"These events were a trauma for the Muslims; †¦the methods used by them shocked the civilized world. T he detestation of Delhi as a centre of Muslim culture was horrendous; Bahadur Shah Zafar†¦was exiled to Rangoon; Lt.Hodson shot three Mughal princes and later 24 princes were tried and executed; a vast ocean of blood there was; Some Muslims were shot dead and their dead bodies were thrown into the river Jamna†¦Ã¢â‚¬  (Ibid. , p. 14). All Muslims were ousted from land, property and employments that made them third class citizens of India. This created revengeful sentiments among the Muslims who detested British, their culture and civilization. Sir Syed was of the view that British were a civilized, educated, wise and disciplined nation and occupied India with the new war strategy and munitions that could not be matched by the locals and particularly by the Muslims.Therefore at the juncture the Muslims should mould themselves according to the pace of time to avoid more disaster. Sir Syed published Loyal Mohammedans of India and Risala Asbab-i-Baghawat-i-Hind that helped bot h the nations to redress their grievances. In 1885 the Indian National Congress was founded but Sir Syed warned the Muslims from the sinister aspirations of the Hindus. Another factor was that he intended the Muslims to abstain from the politics that could result in friction with the ruling nation. Urdu-Hindi Controversy Urdu grew as common language of all the Indians regardless of origin or religion but in 1867 the Benarsi Hindus started campaign to replace Urdu by Hindi.To gain the objectives, they declared numerous organizations, which discouraged Sir Syed who said to Shakespeare that since now both the nations could not live together. Later the followers of Sir Syed tried their level best to save Urdu language. Mohsin ul Mulk was the outstanding person who organized the Muslims in defense of Urdu. Muslims-as a Nation Sir Syed used the word ‘nation’ for the Muslims. Some writers criticize that he declared Hindus and Muslims one nation. But as a matter of fact, he adv ocated the Hindu-Muslim unity that meant ‘the working relationship’ between the two nations as once he said: â€Å"Hindus and Muslims should try to be of one mind in matters which affected their progress. He favored separate electorate for the Muslims in 1883 saying that the majority would override the interests of the minority. (P. Hardy, pp. 136-37) United Indian Patriotic Association In 1888, he set up the Patriotic Association to meet the propaganda of the Congress. Muslims and Hindus joined the Association. It advocated the Muslims’ emotions. Mohammedan Defense Association In December 1893, Sir Syed founded the Association. Its main purpose was to protect the political, religious and social rights of the Muslims. Sir Syed was great because he contributed greatly to the Muslim struggle for identity. Otto von Bismarck served the German nation with the help of all government sources but Sir Syed did the same without all this.To Khalid Bin Sayeed, â€Å"Many t ributes have been paid to Sir Sayyed, particularly by modern educated Muslims for being daring enough to put forward such views in an age which was by no means liberal or tolerant. † (Dr Khalid Bin Sayeed, Pakistan, the Formative Phase, p. 17). Lecture 5- Major Political Developments 1857-1918 Major Political Developments 1857-1918 The year 1857 brought decline to the Muslim rule in India. Muslims and Hindus participated in the War of Independence but the British held only Muslims responsible for the rebellion. The Muslims were persecuted ruthlessly and left at the mercy of time. The post war era was disastrous for the Muslims but some personalities emerged on the national scene and played excellent role to guide their people in this critical situation.The Central Mohammedan Association of Justice Amir Ali Syed and the Aligarh movement are very prominent in this regard. Their efforts for revival of the self-identity and political positioning in the Indian society enabled them to face any challenge in the future. Some important issues have already been discussed in the previous lectures. So a brief reference to events in historical context may be given: †¢ Decline after the 1857 Uprising †¢ Sir Syed and his colleagues’ efforts for revival †¢ Removal of misunderstanding between the Muslims and the British †¢ Educational movement or acquisition of modern knowledge and English †¢ Hindi-Urdu Controversy was the issue that unearthed the hatred and enmity ofHindu community towards the Muslims. †¢ Formation of the Congress was a method to incorporate the Muslims in Hinduism. It popularized the agitational politics that Muslims could not afford because they were still recovering the past gaps. †¢ Hindu Revivalist movements mostly targeted the Muslims that accelerated the pace of widening the gulf between the two nations. Events Since the Beginning of 20TH Century 1. Partition of Bengal, 1905 2. Simla Deputation, 1906 3. F ormation of the Muslim League, 1906 4. Changes in the Goals of the Muslim League, 1913 5. Lucknow Pact, 1916 1: Partition of Bengal: 1905 United Bengal’s area covered 189,000 sq. miles with 80 million populations.Dr Abdul Hameed writes in his book, Muslim Separatism in India, that the partition was imperative even if Curzon had not initiated it. A Lt. Governor had problems in looking after the eastern areas. Mainly Muslim suffered because of the rotten administration by the British. Before 1905, many proposals of partition of Bengal had been under consideration but Lord Curzon decided to practicalise this administrative scheme. East Bengal became incidentally a Muslim majority province having 13000000 out of 31000000. West Bengal was a Hindu majority province. Muslims were very happy on the partition as this had enabled them to promote their life conditions.It was rightly an opportunity for compensation. The Muslim community supported it strongly but Hindus retaliated furious ly saying it the division of motherland. The Congress joined the anti-partition movement. They started widespread agitation, violence and boycott of foreign goods. The main reason of Hindu protest was that they had loosened grip over the eastern parts. Annulment of the Partition on 12 December 1911 The British government revoked the partition to avoid trouble on the visit of King George V. The Muslims were disappointed by the government response to the violent strategy of protests adopted by the Hindus. 2: The Simla Deputation 1906In fact Simla Deputation was in line with a kind of thinking that was developing amongst the Muslims during that time i. e. they had certain interests and they must stand up to protect their rights and unless they do that that objective would not be achieved. The Simla Deputation of 1906 was the first systematic attempt on the part of the Muslims to present their demands, to the British government and to seek their acceptance. The Simla deputation comprise d 35 Muslims from all over India. It was a galaxy of Muslims leaders from all the provinces, from one end of India to the other and it had Muslims of all background. Therefore, when in 1906, this deputation called on the Viceroy, it was the most representative Muslim delegation.This delegation was led by Sir Agha Khan and Nawab Mohsin ul Malik served as a secretary and this delegation met the Viceroy in Simla that was why it was called as Simla Deputation. The memorandum which they presented was a kind of demands which were the uppermost in the minds of the Muslims at that time. The delegation emphasized that the Muslims should not be viewed simply in numerical terms but they should take into account their historical importance and the kind of contribution the Muslims had made to British India and keeping in view that importance they should work towards accommodating their demands. The delegation emphasized that democratic principle should be introduced keeping in view the peculiar conditions and circumstances of India.The diversity, the fact that there different kinds of people living in India and the fact that the Muslims consider themselves to be a separate entity, all these things had to be taken into account because the India was not a homogenous amalgamated or monolithic political identity. It was a political identity comprising diversity, divergence in view, divergence in outlook and when you introduce some kind of system then these realities had to be accommodated. In view of this submission they presented some demands: Representation more than their population because of their importance. Separate electorate Reservations of Muslims seats in government jobs. Special share in Municipal or district boards University senates and yndicates Muslim representation in Viceroy Executive Council. Muslim University at Aligarh. The Viceroy was sympathetic towards the demands. It encouraged the Muslims to launch struggle for their rights parallel to the Indian Nati onal Congress but it required an organized platform. 3: Formation of the Muslim League in Dhaka: December 30, 1906 Time had come to formally organize the Muslims after the success of the Simla Deputation. The Muslim leaders desired to create a permanent political forum. After the meeting of the Mohammedan Educational Conference, the Muslim leaders met to set up the All India Muslim League. Wiqar-ul-Mulk chaired the meeting.Nawab Salimullah proposed Muslim League and Hakim Ajmal Khan and Maulana Zafar Ali Khan seconded. In the Karachi session Dec. 1907 its constitution was approved and in March 1908 at Aligarh, Agha Khan was formally elected its president. London Branch: May 1908 Justice Amir Ali Syed organised a branch of Muslim League at London and responded effectively to the misunderstandings and conspiracies of the Hindus against the Muslims. GOALS: 1. Protection and promotion of political rights and interests of the Muslims. 2. Cooperation with other communities without prejudi ce to the above goal. 3. Fostering sense of loyalty, among the Muslims, towards the government 4: Change in the Goals of the Muslim League 1913Important developments occurred during the first decade of the 20th century like annulment of the Partition of Bengal and Western aggression towards Muslim countries, Balkan wars, Libya-Italy war, Demolition of the mosque in Kawnpur (1913), etc. weakened Muslim faith in the British. This led to a major drift in the Muslim League’s policy. In 1913, the League changed its goals: †¢ Self government under the British Crown keeping in view the peculiar conditions in India. †¢ Good relations with other communities’ cooperation with any party working for similar goals. This change brought the ML and Congress closer. In this way the era of cooperation between Hindus and Muslims set in. The role of the Quaid-i-Azam is highly noteworthy to bring the Congress and the Muslim League to the table. He joined the Muslim League in 1913 . 5: Lucknow Pact, 1916The Lucknow pact was the product of Hindu-Muslim unity envisaged by M. A. Jinnah. In December 1915, the ML and Congress met separately in Bombay. Both the parties set up committees for making a scheme for constitutional changes in consultation with other political parties. Role of the Quaid-i-Azam Jinnah did a lot to unite the two nations along with the recognition of the rights of Muslims. Meeting of both parties held at Lucknow in 1916. The constitutional proposals were approved: 1. One Third seats for Muslims in the Imperial Legislative Council. 2. Separate Electorate 3. Half members of the Executive Council to be elected by the Imperial Legislative Council. 4. Commissioned ranks of the army for Indians. 5.Expansion of Provincial Legislative Councils. 6. Half members of the Governor’s Executive Council be elected by Provincial Legislative Council 7. Weightage to minorities in provinces. Gains from Muslim Point-of-view 1. Separate Electorate 2. One Th ird Muslim seats in Central Legislature. 3. Unofficial bill, if opposed by three-fourth members of a community, it will not be passed. August 20, 1917 Announcement by British Government Secretary of State Montagu promised for: 1. Greater association of Indian in all branches of government. 2. Responsible government 3. Induction of Indians in the commissioned ranks. Conclusion: The historical struggle of the Muslims confirmed their identity.They organized their political party to address the demands. They also got recognition by the Hindus as a separate nation. The British accepted their role in the political domain. Lecture 6 – The Khilafat Movement The Khilafat movement was a religio-political movement launched by the Muslims of British India for the retention of the Ottoman Caliphate and for not handing over the control of Muslim holy places to non-Muslims. Turkey sided with Germany in World War 1. As it began to lose the war, concerns were expressed in India about the futu re of Turkey. It was a peak period from 1919 to 1922 casting demonstrations, boycott, and other pressure by the two major communities, the Hindus and the Muslims.Being brothers, the Indian Muslims realized their religious duty to help the Muslim country. It was the extra territorial attachments based on Islam. Another factor same to the first was that the Indian Muslims considered Ottoman Caliphate a symbol of unity of the Muslim world as Ummah. Goals: 1. Ottoman Khilafat should be kept intact. 2. Territorial solidarity of Turkey be preserved. 3. Control of holy the places should not be given to non-Muslims. Dimensions: The writings of the Muslim intellectuals provoked the sentiments for the preservation of Khilafat and retention of the Muslims control of the holy places. The Muslims journalism played a vital role to steer the direction of the struggle.Zamindar of Zafar Ali Khan, Comrade and Hamdard of Maulana Muhammad Ali Jauhar, and Al-Hilal of Maulana Abul Kalam Azad etc. were th e prominent newspapers and magazines which performed their duties to express their resentment. The Allies imposed humiliating terms on vanquished Turkey. Protests in India: All India Khilafat Committee was formed at Bombay in July 1919. The first Khilafat Conference at Delhi in November 1919 was arranged in which the Congress leaders like Gandhi and Nehru participated. In this way, the major political parties joined hands to assault the injustice with the Muslim community. These steps were announced: No participation in victory celebrations. Boycott of British goodsNon Cooperation with the Government The second Khilafat Conference (Amritsar) was held in Dec. 1919. Maulana Muhammad Ali and Shaukat Ali joined the session after being released from prison. In Jan. 1920, M. A. Ansari led a delegation to Viceroy while Maulana M. A. Jauhar to Europe. The Khilafat Committee decided to start non-cooperation in collaboration with the Congress in May 1920. Rowlett Act, 1919 Rowlett Act was a b lack law introduced in India. To the law, the government got authority to persecute any Indian and the arrested had no facility of legal assistance and right to appeal just as the ‘Lettres de Cachet’ in France before the French Revolution.Jinnah resigned from the central legislature as a protest. Jallianwala Bagh Incident, April 1919 The people gathered in Jallianwala Bagh at Amritsar but General Dyer opened fire to disperse the throng that cast a huge human casualties (379). It is considered one of the great tragedies in India. In 1940, by killing Governor Punjab, Sir Michaal O’ Dayer, ‘Ram Muhammad Singh Azad’ got revenge of the Indian massacre. The Nagpur Session of the Congress (Dec. 1920) approved non-cooperation with Government but Jinnah opposed and left the Congress because he was against the use of extra-constitutional means of protests. Non-Cooperation: †¢ Return Titles. Boycott of courts and educational institutions. †¢ Resign fr om jobs. †¢ Later resign from police and military jobs. †¢ Refusal to pay taxes. Khilafat Conference, Karachi, July 1921 In the session the participants expressed their loyalty to Turkish Sultan. They decided to continue the agitation and supported Attaturk to expel foreign forces from Turkey. Hijrat Movement 1920-21 The Indian ulama (religious leaders) declared India ‘Darul Harab. ’ Darul Harab means the place (country) where Muslims are not allowed to perform their religious practices. In the said situation, the Muslims should migrate to the nearest safe place. The ulama issued verdicts to go to Darul Islam, Afghanistan.There was an impression that King of Afghanistan would welcome them. So the migration took place at large scale. Initially Afghans welcomed them. Later, they closed the border and pushed the migrants back to the Indian territories. It resulted in loss of lives and money. Many died during this mission. Some went to Soviet Union from Afghanista n because they had nothing in India now. End of the Movement Moplah Revolt Malabar Coast, near Kalicut Moplahs were the descendents of the Arab Muslims settled in the Sub-Continent even before the arrival of Muhammad Bin Qasim. In August 1921, they revolted against Hindu landlords whose treatment was very brutal with them.Later this clash changed as Moplahs versus the Police and Hindu. This embittered the Hindu-Muslim relations. There was an increase in violence day by day and the Chorachori Incident (UP) in February 1922 worsened the situation. The Congress volunteers set a police station on fire and 21 policemen were killed. Gandhi suddenly called off the movement. Developments in Turkey In 1922 Attaturk emerged as a national leader and restricted powers of Sultan. Next he was appointed Chief of the state by Grand National Assembly. In March 1924, Khilafat was abolished. This caused a widespread resentment among the Indian Muslims. They sent delegations to Turkey but failed to ach ieve their objectives. Conclusions: 1.It was re-affirmation of the reality that religion is a mobilizing force and especially Islam has mobilization capacity to organize masses. 2. It was the movement launched on the basis of extra-territorialism. Later, no such movement but Pan-Islamic sentiments continued. 3. It resulted in the sufferings of the Muslims 4. Hindu-Muslim unity proved short-lived. Reactivation of the Muslim League and other Muslim organizations to restart their activities as a separate nation was the great outcome. Lecture 7 – Muslim Politics in British India: 1924-1935 Muslim Politics in British India: 1924-1935 1. Delhi Muslim Proposals 2. Nehru Report 3. Quaid-i-Azam’s Fourteen Points 4. Simon Commission 5. Round Table Conferences 6. Constitutional Proposals Backdrop:The Khilafat movement brought Hindu-Muslim communities to cooperation. The leaders made the efforts to revive harmony for preparing constitutional proposals. 1: Delhi Muslim Proposals: M arch 1927 Important Muslim leaders on the initiative of the Quaid met in Delhi to discuss constitutional and political issues. The major demands were: †¢ Punjab and Bengal: statuary Muslim majorities †¢ No Weightage in provinces †¢ Sind to be separated from Bombay †¢ Constitutional Reforms in NWFP †¢ One-third seats for Muslims in Central Legislature †¢ On communal issues, no law will be passed if three-fourth members of the concerned community oppose it. If these demands are accepted, they will give up ‘separate electorate. Subsequently, the Muslim League was divided in the Punjab, Shafi League and Jinnah League. Sir Muhammad Shafi opposed Jinnah on the issues: †¢ Separate electorate †¢ Attitude towards the Simon Commission. Jinnah continued his unremitting efforts to promote Hindu-Muslim unity. 2: The Nehru Report: 1928 The main objective was to constitute proposals for the Indian Constitution. The Congress called All Parties Conferenc e that appointed a 10-member committee in May 1928 under the Chairmanship of Motilal Nehru and Secretary ship of Jawaharlal Nehru. Recommendations that threatened Muslim interests are: †¢ No Separate electorate †¢ No One-third seats for Muslims in Central Assembly No reservation of seats for Muslims in Punjab and Bengal. In Hindu- majority provinces, the Muslims may be given seats according to population †¢ Sind to be made a province if it can bear its expenses. Balochistan, NWFP were accepted to be given constitutional status on certain conditions. Quaid-i-Azam tried to get amendments in the Report in the All Parties Conference in Calcutta but did not succeed. This is the very moment when Jinnah remarked, â€Å"it is parting of the ways. † He presented the 14 points as a Muslim leader. 3: Jinnah’s Fourteen Points: 1929 1. Federal system with residuary powers with the provinces 2. Provincial autonomy. 3. Separate electorate for Muslims. 4.Effective repre sentation to minorities in the provinces but the majority should not be reduced to minority 5. One-third representation of Muslims in Central Legislature. 6. One third Muslim representation in cabinets. 7. No changes in the boundaries of the Punjab and Bengal that would adversely affect Muslim majority. 8. Religious freedom to all. 9. No law will be passed if three-fourth elected members of a community declare that it is against their interests. 10. Sind to be made a separate province. 11. Constitutional Reforms in NWFP and Balochistan. 12. Muslim representation in govt. jobs. 13. Constitutional safeguards for Islamic culture and civilization, education, language, personal laws and Muslim institutions.Government should provide financial assistance. 14. No constitutional amendment unless all constituent units of the federation agree to it. These points reflected the aspirations of every Muslim living in India. 4: The Simon Commission: The British government sent a commission to seek the opinion of Indians on the future shape of constitutional arrangements. It arrived in India in 1927 and it published the report in 1930. Most political parties boycotted it. It presented its report containing several constitutional proposals: †¢ Federal system of government with strong centre †¢ Two Houses. †¢ Abolition of Dyarchy system in provinces †¢ More powers to provincial governments. Governor not to interfere in day to day affairs. †¢ Constitutional changes in NWFP 5: Roundtable Conferences: 1930, 1931, and 1932 First Session of the Conference In the first session, a number of prominent Muslims like M. A. Jinnah, Sir Shafi, Maulana M. A. Jauhar, Zafarullah Khan participated. They emphasized federalism, self- government, safeguards for minorities, separate electorate, preferential representation in central legislature, secure majorities in Punjab and Bengal. Second Conference Maulana M. A. Jauhar had died after the first conference. Iqbal, Jinnah a nd others participated in the second conference. Gandhi represented the Congress.The key issues of the session were ‘Federation’ and ‘Minorities. ’ The Communal Award, August 1932 Prime Minister Ramsay MacDonald announced the Communal Award: 1. Separate electorate for all minorities of India. 2. Weightage to minorities 3. No Muslim majorities in Punjab and Bengal as was followed in Lucknow Pact 4. One third representation for Muslims in Central legislature 5. One fourth representation for Muslims in services 6. Sind to be made a province Poona Pact, September 1932 The Congress expressed strong reaction against the right of separate electorate to the Indian minorities, especially to low caste Hindus whom Gandhi named Harijan (sons of God).Dissonance in Gandhi is conspicuous that he observed fast unto death on the right to the ‘sons of God. ’ An agreement with low caste to surrender the separate electorate right was concluded to save Gandhiâ€⠄¢s life. 3rd Roundtable Conference: Nov. 17-Dec. 24 1932 The main issues had been discussed in the first two conferences and now the rest of them were to be discussed. It was poorly attended conference. Quaid did not participate despite living in London. Gandhi did not attend as he had been detained. The conference brought no change in party positions and widened Hindu-Muslim gulf. White Paper on Constitutional Proposals: March 1933 The British government issued a small document in the form the White Paper.It included detail of working basis of the Indian constitution with Dyarchy in the centre and full responsible governments in the provinces. Government of India Act, 1935 Approved by the King: August 1935 Despite these efforts the communal problems could not be settled as satisfactory to the nations living in India particularly the Muslim. Therefore the key issues remained unchanged: †¢ Hindu Muslim Relations †¢ Failure to arrive at settlement †¢ Muslim demands tra nsmuted from safeguarding rights to complete independence—Pakistan. Lecture 8 – ALLAMA IQBAL’s Presidential Address December 1930 ALLAMA IQBAL’s Presidential Address December 1930 Dr Allama Muhammad Iqbal ranks amongst the Muslim intellectuals who left a deep impact on history.He inspired Muslims of the Sub-Continent and beyond. He infused a moving spirit and identity in the Indian Muslims. He presented a framework of their political future and talked how that would help to achieve the goal of Ummah. He presented a vision and dream in his Allahabad Address. 1: Background The Hindu-Muslim question had great importance and stood crucial to British Indian history after 1857, especially in the 20th century. To Muslims, the key issue remained ‘separate identity. ’ They tried their level best to make the rival nations understand that the Muslims are a separate nation having different culture and civilization, interests and rights.The Two Nations th eory could not fascinate the Hindus and the British peoples because they believed in ‘territorial nationalism. ’ The Hindus desired to absorb them in their majority but they could not face the arguments of the Muslim intellectuals. By 1930, Muslims had developed a sense of identity and political demands. Iqbal delivered his Presidential address in this background. Iqbal’s stay in Europe, 1905-08, helped to crystallize his thoughts. He returned to India in 1908 and started work on the roots of Muslim decline and the mechanism to uplift the Muslims. He reminded them to follow the teachings of the Holy Prophet (PBUH) practically as the ideal leader. He emphasized on the ideals, teachings and principles of Islam.He sought salvation through Islam. He was awarded with many prominent social positions: †¢ Title of Sir was conferred in 1922 †¢ Member Punjab Legislative Council (1927-1930) He delivered lectures on Islam in Aligarh, Hyderabad and Madras (1928-29). At Allahabad, he presided over the meeting and delivered his famous address. The Address, December 1930 Iqbal presented a review of the political and social situation of India and solution of the ills befalling India. He evaluated the importance of role of Islam in the lives of Muslims of British India. He said that the European view of duality of religion and state does not apply here in the Indian society.Rejecting the secularism he said, religion is not a totally personal affair. He explained that Islam offers an ethical order, socio-political structure, legal framework, code of life, culture and civilization. It is a living, dynamic force that has a profound impact on the lives of Indian Muslims. With the force of Islam the scattered and disoriented people have been turned into an organized force. The Muslims are not willing to submerge their religious individuality. They have lack of trust, fear of domination from Hindus. If the British want any sort of internal harmony it wou ld be impossible unless the communal question is settled. It’s historical reality that India is a continent inhabited by diverse people.No political arrangement may be acceptable without recognizing this reality. †¢ If the Muslims have an opportunity to develop in accordance with their Islamic civilization and tradition, they would be willing to sacrifice their lives for India. †¢ Federalism cannot succeed without recognizing the national identity of the Muslims. †¢ Territorial redistribution of British India on the basis of religion has become a need of time. †¢ Punjab, NWFP, Sind and Balochistan be amalgamated into a state, self government within the British empire or without it. The formation of such a consolidated North Western Muslim state appears to be the final destiny of the Muslims, at least of North West India.To India, it will offer peace and security due to internal balance of power. †¢ Islam is a people building force in India that has gi ven moral consciousness and political identity to the people. Importance Iqbal’s address is a forceful and logical presentation of the Muslim case in India. Why should they be treated as a political entity rather than a minority? †¢ Territorial adjustments will enable the Muslims to develop themselves in accordance with their ideals and serve the cause of Ummah. †¢ Redistribution of territory developed later on concept of Muslim homeland. †¢ He further expressed these ideas in LETTERS TO JINNAH from May 1936 to November 1937.He talked of a separate federation of Muslim provinces. The North Western India and Bengal can be considered as entitled to self-determination like other nations in India and outside. Shariah’s development is impossible without a free Muslim state or states. He advised the Muslims to be above self-interest and devote themselves to Islam. †¢ In difficult times, Islam has saved the Muslims. †¢ Faith, culture and historical tr aditions are more important than patriotism. Lecture 9 – Muslim Politics and Chaudhry Rahmat Ali Muslim Politics and Chaudhry Rahmat Ali Intellectuals give lines of movement, leaders act upon and the masses prove good soldiers and this way nations accomplish their achievements.Rahmat Ali was one of the eminent scholars who made a significant contribution to the movement for the establishment of Pakistan. He was conscious of Muslim identity and outlined proposals for the partition of India for the sake of Muslims. He was the man who coined the name, PAKISTAN, for the Muslim state. When he first presented his proposal for a Muslim state, nobody took it seriously. The Muslim intellectuals and leaders were concerned about the future of the Muslims in India. They ensured a secure future for Muslims. For this purpose they worked out various proposals for securing a homeland. Rahmat Ali becomes relevant here. Biographical Sketch Ch. Rahmat Ali was born in Hoshiarpur district in 1893 . Traditionally he did his B. A. from Islamia College, Lahore.He did the private and government jobs for some time and then left for Cambridge University for higher education. He was involved actively in the activities for the protection of rights of the Indian Muslims along with some other students at Cambridge University. His activism goes back to his student days in Lahore when he talked of separate state for Muslims of India. Rahmat Ali’s Views He said that North Western areas are Muslim majority ares. We will not only keep these majorities but will turn them into a Muslim state. Muslims should get rid of Indianism, it is better for Muslims and Islam. In his writing, NOW OR NEVER (January 1933), he proposed the name of Muslim state, PAKISTAN. P Punjab A Afghania NWFP K Kashmir S Sind TAN BalochistanINDIA cannot be described as a state/country or home of single nation. This state did not exist as one political entity before the advent of the British. The Muslims are a dist inct nation who has maintained its identity throughout. They are a separate nation. They have as much right to live as the Hindus. Pakistan should be separated from the rest of India. He further said that the conflict between Muslims and Hindus is not religious, sectarian or economic but an international. The Muslims are striving for survival; Hindus are trying for domination over the other nations living in the Sub-Continent particularly the Muslims. He established the Pakistan National Movement in 1940.He began to talk about Bengal and Hyderabad as Muslim areas and separate states. Bang-i-Islam would comprise of Bengal and Assam and Osmanistan of Hyderabad Deccan. He visited Pakistan in 1948 but the atmosphere of the motherland did not suit him and so he returned to Cambridge. He died there on 11 February 1951. His Contribution It is the ever-shining contribution of Rahmat Ali that he coined the name of the Muslim state. He said that being nation, the Indian Muslims deserved a sep arate homeland. He gave the future lines to the Muslims considering Islamic thoughts universal and true in comparison with the contemporary isms. When the Lahore Resolution was passed, it was instantly described as Pakistan Resolution.It, the division of India, was the solution of Hindu-Muslim question but Rahmat Ali proposed this long before the Lahore Resolution. Lecture 10 – The Congress Ministries– Policies towards Muslims The Congress Ministries– Policies towards Muslims Topics: 1. Elections 2. Provincial Governments 3. Their Policies 4. Muslim Response Government of India Act, 1935: The Government of India Act, 1935 was not fully promulgated but the only provincial part was introduced in the country. Muslim League and the Congress criticized it but agreed to contest provincial elections. The 1937 Elections: The elections of 1937 were held with the restricted franchise and separate electorate.The Congress projected itself as an all-India force representing all religions and factions of the society. The Muslim League contested for the Muslim seats. There was a tough competition from the other Muslim organizations. The elections were completed in February 1937. The Congress got majorities in five provinces, Madras, U. P. , C. P. , Bihar, and Orissa. It emerged as the largest party in Bombay and won 704 out of 1585 general seats. The Muslim League performed poorly in the elections and got only about 21 percent of Muslim seats without winning majority anywhere, Bengal, Punjab, NWFP, and Sind. It was mostly due to the organizational problems and opposition by local Muslim groups. Formation of Provincial Governments:In July 1937, Congress formed governments in 6 provinces. In NWFP, Khudai Khidmatgar and Congress formed a coalition government. In the Muslim majority provinces, the Muslim League could not form the governments. The Muslim League desired to be in government in the U. P. but the Congress consented to a conditional support: 1. Di ssolve AIML Parliamentary Board 2. AIML members not to function as a separate group 3. AIML members to express allegiance to the Congress Definitely the above-mentioned terms were a device to subvert the existence of the Muslim League. Therefore, no agreement was possible on this issue. Policies of the Congress Governments: (July 1937-Nov. 939) First all Congress governments in the provinces launched anti-Muslim drive basically to exclude the ML and other Muslim organizations from the government making process. The Congress leaders had come to know that the ML had got roots in the masses. They started ‘Muslim Mass Contact’ movement to defame the ML in their favour. They were making cultural and educational policies that promoted the Hindu culture and symbols in the name of Indian culture. They introduced Banda-Mataram anthem from Annandmath in the institutions and offices etc. The Hindi language was given top most importance in their policies. Wardha Educational Scheme was to convert Muslims into Hindus through primary educational literature.Projection of Hindu heroes like Gandhi and distortion of Muslim history became their moral creed. They followed the policy of discrimination in services or new recruitment for jobs. The Congress ministries adopted overall negative and cruel attitude, especially towards the Muslim activists. This unjust treatment compelled the Muslims to be disciplined in every sphere of life. Muslim Response: The Muslims were well aware of the theocratic inclination of the Hindu people. They arranged a close monitoring of the government. They publicized their policies and raised the issues. The mobilization of Muslims on these matters required keen probe to collect the original facts of the Hindu atrocities. The Pirpur Report:On March 28, 1938, the Council of ML appointed an eight-member committee under the presidentship of Raja Syed Muhammad Mehdi of Pirpur that presented its report on, November 15, 1938. It tried to dig out the cruelties of the Congress ministries in seven provinces. The report took up the Congress support to the rival Muslim organizations, intimidation and threats to the pro-Muslim League people. The Sharif Report, March 1939 The ML deputed Mr. Shareef with members to investigate the injustices under the dictatorial rule of the Hindus. This report mainly collected the facts, concentrating on ill treatment of the government with the Muslims in Bihar. The Fazl-ul- Haq Report: (December 1939) A. K. Fazl-ul-Haq published a pamphlet entitled Muslim Sufferings Under the Rule of Congress and made many alarming revelations e. g. orbidding of Azan, attacks in mosques, noisy processions of the Hindu scoundrels, forbidding of the cow-slaughter etc. This pamphlet responded the indictments by the Congress on the Muslims. All the reports described the Congress government as an attempt to create ‘Hindu Raj’ that wanted to overwhelm the Muslim culture and their identity. It was a rigorou s threat to the Muslims’ interests. Muslim League Activism: The Muslim League highlighted the issues and mobilized the Muslims to counter them adequately. It reorganized the Muslim community to cope with the situation. The ML arranged its session at Lucknow in October 1937. Many prominent leaders like Fazlul Haq participated in the session while SikanderHayat and Saadullah announced their support to the ML. The Muslim leaders shed a sharp criticism on the Congress policies. They protested against the reduction of status of Urdu and other Muslim related issues. They created realization, amongst the Muslims, of what can happen under the Congress rule and urged for serious thinking about the future political and constitutional arrangements. They unearthed the real objectives of the Congress and urged the need of unity among the Muslims under the banner of Muslim League. The Second World War (September 1939) proved blessing for the Muslims in a sense that the Congress Ministries resigned in November 1939.The Muslims observed Day of Deliverance on December 22, 1939. The ML redefined its position during the World War II. They expressed their enthusiasm that no constitution to be enforced without the consent of the Muslims. They eradicated their organizational weaknesses and refined their objectives keeping the experiences of the Congress ministries. Lecture 11 – The Lahore Resolution, 1940 The Lahore Resolution, 1940 The experience of Congress Rule compelled the Muslims to launch the movement for separate homeland. The Hindus made them realize that Hindu government would mean an anti-Muslim ru

Project Report on Cost Analysis of Rice Mill in India Essay

1.1 Introduction Rice is the staple food for 65% of the population in India. It is the largest consumed calorie source among the food grains. With a per capita availability of 73.8 kg it meets 31% of the total calorie requirement of the population. India is the second largest producer of rice in the world next to China. The all India area, production, and yield of rice in the year 2001-02 was 44.62 million hectares, 93.08 million tons and 2086 kg/ ha respectively. In India paddy occupies the first place both in area and production. The crop occupies about 37 % of the total cropped area and 44% (2001-02 position) of total production of food grains in India. West Bengal is the leading producer of paddy in the country. It accounts for 16.39% of the total production, and the other leading states are Uttar Pradesh (13.38%), Andhra Pradesh (12.24%), Punjab (9.47%), Orissa (7.68%) and Tamil Nadu (7.38%); the remaining states account for 33.45% of the production. India is also one of the leading exporters of rice in the world market. India’s export of rice stood at 23.89 lakh MT in 1997-98. The corresponding value of foreign exchange earned was to the tune of Rs. 3371.00 crore in 1997-98. Indian Basmati Rice has been a favorite among international rice buyers. Following liberalization of international trade after World Trade Agreement, Indian rice will become highly competitive and has been identified as one of the major commodities for export. Look more:  capital budgeting examples essay This provides us with ample opportunity for development of rice based value-added products for earning more foreign exchange. Apart from rice milling, processing of rice bran for oil extraction is also an important agro processing activity for value addition, income and employment generation. Many of the rice processing units are of the traditional huller type and are inefficient. Modern rice mills are having high capacity and are capital intensive, although efficient. Small modern rice mills have been developed and are available in the market but the lack of information is a bottleneck in its adoption by the prospective entrepreneur. The present model will go a long way in bridging the information gap. 1.2 Description of Rice Milling Operations Paddy in its raw form cannot be consumed by human beings. It needs to be suitably processed for obtaining rice. Rice milling is the process which helps in removal of hulls and barns from paddy grains to produce polished rice. Rice forms the basic primary processed product obtained from paddy and this is further processed for obtaining various secondary and tertiary products. The basic rice milling processes consist of: 1. Pre Cleaning: Removing all impurities and unfilled grains from paddy 2. De-stoning: Separating small stones from paddy 3. Parboiling (Optional): Helps in improving the nutritional quality by gelatinization of starch inside the rice grain. It improves the milling recovery percent during de-shelling and polishing / whitening operation 4. Husking: Removing husk from paddy 5. Husk Aspiration: Separating the husk from brown rice/ unhusked paddy 6. Paddy Separation: Separating the unhusked paddy from brown rice 7. Whitening: Removing all or part of the bran layer and germ from brown rice 8. Polishing: Improving the appearance of milled rice by removing the remaining bran particles and by polishing the exterior of the milled kernel 9. Length Grading: Separating small and large brokens from head rice 10. Blending: Mixing head rice with predetermined amount of brokens, as required by the customer 11. Weighing and bagging: Preparing the milled rice for transport to the customer The flow diagram of the various unit operations are as follows: Figure 1: Block Diagram of Rice Processing 1.3 Status of Rice Milling Units in India Rice milling is the oldest and the largest agro processing industry of the country. At present it has a turnover of more than 25,500/- crore per annum. It processes about 85 million tons of paddy per year and provides staple food grain and other valuable products required by over 60% of the population. Paddy grain is milled either in raw condition or after par-boiling, mostly by single hullers of which over 82,000 are registered in the country. Apart from it there are also a large number of unregistered single hulling units in the country. A good number (60 %) of these are also linked with par-boiling units and sun -drying yards. Most of the tiny hullers of about 250-300 kg/hr capacities are employed for custom milling of paddy. Apart from it double hulling units number over 2,600 units, underrun disc shellers cum cone polishers numbering 5,000 units and rubber roll shellers cum friction polishers numbering over 10,000 units are also present in the country. Further over the years there has been a steady growth of improved rice mills in the country. Most of these have capacities ranging from 2 tons /hr to 10 tons/ hr. 1.4 Need for Improved Rice Mills The recovery of whole grains in a traditional rice mill using steel hullers for dehusking is around 52-54%. There is excessive loss in the form of coarse and fine brokens. Further loss of large portion of endosperm layers during the dehusking operation further accentuates the problem. Against it, the recovery percent of whole grains in modern rice mills using rubber roll shellers for dehusking operation is around 62-64%. The whole grain recovery percent further increases to 66-68% in case of milling of parboiled paddy. Thus it can be seen that there is an overall improvement of recovery of whole grains by about 10-14% if one uses rubber roll shellers for rice milling operations. The conversion ratio (i.e. recovery % of various final product and byproduct for every 100 kg feed of raw paddy) for these improved rice mills are can be as follows: 1. Percent of milled rice : 62-68%2. Percent of rice bran : 4-5% 3. Percent of rice husk : 25% 4. Percent of germ wastages : 2%-8% It has been observed that dehusking using rubber roll shellers reduces the risk of breaking the grain because husk is pulled off almost at once and pressure is applied by means of resilient surfaces across the width of the grain, where kernels, generally are much more uniform than they are by length. Moreover, the process does not remove the internal epidermis of the husk. Thus the deshelled grains with their silver skin envelope are protected against scratches and keep longer and better while the silver skin and the germ increases the quantity of bran which is produced while whitening. The improved rice mills have a better husk and rice bran aspiration system. The same prevents mixing of fine brokens with rice bran. Therefore the quality of rice bran obtained is better. It has also been observed that the location of rice mills are confined to a few selected production centers. Their development as a village level agro processing unit is yet to take a proper shape. In the absence of village level rice milling unit, the farmers have to travel great distances for milling the rice. This leads to increased transportation and handling losses. Thus there is a need to develop improved rice mills as a village level agro processing unit for bringing about technical up-gradation and development of the sector. Value addition and generation of gainful and sustainable employment opportunities are the other possible benefits arising out of this agro processing industry. The Central Govt. is also providing a big boost towards the development of this industry. It has since repealed w.e.f. May 27, 1998 the Rice Milling Industry (Regulation) Act, 1958 and Rice Milling Industry (Regulation and licensing) Rules, 1959. Further, rice milling sector which was earlier reserved for the small scale sector, have now been de-reserved. As such, no license/ permission is now required for setting up a rice mill. 1.5 Rice Husk Gasifier A rice husk gasifier aims at using wastes from rice mills to fuel a spark-ignition engine that will drive a generator to produce electricity. Instead of dumping rice husks along roadsides, it can now be converted into valuable fuel that can help in substituting the energy required at the mill itself. The gasifier basically employs a moving-bed downdraft gasifier reactor developed by CRHET in combination with a gas-conditioning device that removes impurities from the gas thereby making it highly suitable fuel for heat engines. The gasifier produces a clean gas with a very low amount of black carbon (i.e., only 50 um/m3of gas), and so the gas coming out of the muffler of an engine is also clean. CO2 emission is Operation of the likewise relatively low of about 0.6 kg per ton of rice husks. Figure 2: Block Diagram of Rice Husk Gasifier 1.6 Problem Description The Rice milling is the process that helps in removal of hulls and bran’s from paddy grains to produce polished rice. Rice is rich in genetic diversity with thousands of varieties grown throughout the world. Rice has been one of man’s most important foods. Today, this unique grain helps sustain two-thirds of the world’s population. It is life for thousands of millions of people. It is deeply embedded in the cultural heritage of their societies. About four-fifths of the world’s rice are produced by small-scale farmers and are consumed locally. The major portion of the paddy is being processed through hullers. The hullers are usually low capacity mills. In these hullers, both shelling and polishing operations are carried out simultaneously. Hence, there is no control on the polishing of rice, bran and a higher breakage of rice occurs. Today the number of middle class people is rising who want good quality of food. Thus a number of small, technically advance rice mills are being set up to meet the quality needs of the people and substitute for huller mill, to get polished rice, rice bran and paddy husk. In this project, profit analysis of a small scale technically advance rice mill is carries out using the business case of Jay Laxmi Rice Mill, Bazpur in Udham Singh Nagar district in the state of Uttarakhand. It has a nominal capacity of 4000kg/hr. It has been built for the production of raw rice. The relation between the cost of capital and the net present value of the project was developed. The internal rate of return was determined by finding the appropriate discounting rates for which the net present value is zero. Sensitivity analysis of various factors like paddy price, raw rice price, bran price versus internal rate of return and the net present value of the project were done to estimate profit. Also, the owner want to know the effect on internal rate of return and net present value if the husk produced is used for generating electricity for the plant. What is the minimum percentage of electricity consumption that should be substituted by rice husk gasifier such that the process is profitable? There are a lot of bottlenecks and unforeseen problems in estimating it. The owner needs to know the fixed and variable costs for operating this. The market forces decide the price/unit of raw rice in the market. Thus, the owner has to follow the supply demand dynamics and price its product. To maintain a pre-defined profit margin the owner should know its revenue and costs and aim to increase its revenue and decrease its costs. These problems are discussed and solved in this report. 1.6 Objectives On the light of the above discussion the following objectives will be addressed in this investigation: * Obtaining an exhaustive asset list along with its initial cost, life and salvage value to compute the Net Present Value, Payback Period and Internal Rate of Return of the project. * To create a programme in C and obtain a relationship between Internal Rate of Return (IRR) and yearly cash flow generated. * To obtain relationship between Net Present Value and Cost of Capital * To obtain relationship between Net income, Internal Rate of Return and Net Present Value * To perform sensitivity analysis for the owner on the basis of: * Buying price of Paddy versus Internal Rate of Return and Net Present Value * Selling price of Raw Rice versus Internal Rate of Return and Net Present Value * Selling price of Bran versus Internal Rate of Return and Net Present Value * Salvage value versus Internal Rate of Return and Net Present Value * To find the minimum percentage of total electricity consumption that should be generated from Rice Husk Gassifier so that the process is economic and obtain a relationship between percentage electricity substituted from the husk gassifier, Internal Rate of Return and Net Present Value. Chapter 2: Review of Literature ————————————————- This is a specific case study partening to Jay Laxmi Rice Mill at Bazpur in Udham Singh Nagar district in the state of Uttarakhand. This case study is an analysis of the establishment and functioning of small scale modern rice mill in India. It is neither a story of spectacular success, nor of a spectacular failure as case studies usually are. Rather, it is written with a purpose of illustrating the complexity of factors that enter into the establishment and functioning of an enterprise in a low income economy. These factors often distort both the factor and the product prices and make it difficult to measure the efficiency of an enterprise with the usual yardsticks of cost-benefit analysis. In conducting the analysis the classical analytical tools have been used. These tools take into account the Time Value of Money and are the core topics in books on Engineering Economics. The equations used in the analysis of the project have been taken from the book on ‘Essentials of Engineering Economics’ by James L. Riggs and Thomas M. West. The current market price of the assets used in the rice mill has been obtained from Satake, Japanese manufacturer and supplier of rice mill machinery. The Kolkata representative of Satake recommends the market price and setting up cost. The list of assets used in Rice Husk Gasifier, their current market price and salvage value were obtained from the various sites. The papers on ‘Electricity generation from rice husk in indian rice mills’ and ‘Rice husk gasifier for melting and reheating process’ helped me in detailed understanding of the rice husk gassifier. Keeping all these study in mind, I have perform the sensitivity analysis of various factors like paddy price, raw rice price, bran price versus the internal rate of return and the net present value of the project. Also found out the relationship between factors like Cost of Capital, Net Present Value and Internal Rate of Return. Chapter 3: Problem Solving ————————————————- 3.1 Important Terminology Time Value of Money: * It is the idea that money available at present time is worth more than the same amount in the future due to its potential earnings capacity. * Thus any amount of money is worth more the sooner it is received. For example, assuming a 5% interest rate, $100 invested today will be worth $105 in one year ($100 multiplied by 1.05). Cash Flow Diagram: * A cash flow diagram is a tool used to represent the transactions which will take place over the course of a given project. * Transactions can include initial investments, maintenance costs, projected earnings or savings resulting from the project, as well as resale salvage value of equipment at the end of their lives. * Cash inflow is positive e.g. – revenue, resale salvage value * Cash outflow is negative e.g. – cost of equipments and set-up, disbursements etc. Figure 3: Cash Flow Diagram Resale Salvage Value: The estimated value that an asset will realize upon its sale at the end of its useful life. The salvage value is used in conjunction with the purchase price and accounting method to determine the amount by which an asset depreciates each period. For example, with a straight-line basis, an asset that cost $5,000 and has a salvage value of $1,000 and a useful life of five years would be depreciated at $800 ([$5,000 – $1,000]/5 years) each year. Within the tax system, when a person donates a car he or she receives a tax deduction. The value of this deduction depends on the salvage value of the car. This salvage value is determined to be the current fair market value that could be obtained had the car been sold on that day rather than donated. Disbursements: Money paid out in the discharge of a debt or expense. Disbursements can include money paid out to run a business, spending cash, dividend payments, and/or the amounts that a lawyer might have to pay out on a person’s behalf in connection with a transaction. When money is disbursed, it is a cash outflow. Cash flow is a measure of the cash inflow, revenue, and cash outflows, or disbursements. Ideally, there will be more money flowing in than flowing out. If cash flow is negative (in other words disbursements are higher than revenues), it can be an early warning of potential insolvency. Internal Rate of Return (IRR): The discount rate often used in capital budgeting that makes the net present value of all cash flows from a particular project equal to zero. Generally speaking, the higher a project`s internal rate of return, the more desirable it is to undertake the project. As such, IRR can be used to rank several prospective projects a firm is considering. Assuming all other factors are equal among the various projects, the project with the highest IRR would probably be considered the best and undertaken first. IRR as the rate of growth a project is expected to generate. While the actual rate of return that a given project ends up generating will often differ from its estimated IRR rate, a project with a substantial higher IRR value than other available options would still provide a much better chance of strong worth. IRR can also be compared against prevailing rates of return in the securities markets. If a firm cannot find any project with IRRs greater than the returns that can be generated in the financial market, it may simply choose to invest its retained earnings into the market. IRR (before tax) of a business venture / commercial project can be computed when all the cash flows (P, R, D, F) and lives (n) of assets are given. It is calculated by equating the Net Present Value (NPV) to zero. The corresponding value of ‘i’ is the IRR. Payback period: Payback Period in capital budgeting refers to the period of time required for the return on an investment to â€Å"repay† the sum of the original investment. For example, a $1000 investment which returned $500 per year would have a two year payback period. The time value of money is not taken into account. Payback period intuitively measures how long something takes to â€Å"pay for itself.† All else being equal, shorter payback periods are preferable to longer payback periods. Payback period is widely used because of its ease of use despite the recognized limitations described below. Useful Life: Period during which an asset or property is expected to be usable for the purpose it was required. It may or may not correspond with the item`s actual physical life or economic life. The length of time that a depreciable asset is expected to be usable is its useful life. Cost of Capital: The required return necessary to make a capital budgeting project, such as building a new factory, worthwhile. Cost of capital includes the cost of debt and the cost of equity. It determines how a company can raise money (through a stock issue, borrowing, or a mix of the two). This is the rate of return that a firm would receive if it invested in a different vehicle with similar risk. The cost of capital is a term used in the field of financial investment to refer to the cost of a company’s funds (both debt and equity), or, from an investor’s point of view â€Å"the shareholder’s required return on a portfolio of all the company’s existing securities†. It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet. For an investment to be worthwhile, the expected return on capital must be greater than the cost of capital. The cost of capital is the rate of return that capital could be expected to earn in an alternative investment of equivalent risk. If a project is of similar risk to a company’s average business activities it is reasonable to use the company’s average cost of capital as a basis for the evaluation. A company’s securities typically include both debt and equity, one must therefore calculate both the cost of debt and the cost of equity to determine a company’s cost of capital. However, a rate of return larger than the cost of capital is usually required. Market Price: Market price is the economic price for which a good or service is offered in the market place. Market pricing is primarily determined by the interaction of supply and demand. Price is interrelated with both of these measures of value. The relationship between price and supply is generally negative, meaning that the higher the price climbs, the lower amount of supply is demanded. Market price is just the price at which goods and services are sold. Price, the amount of goods for which a product is sold, may be seen as a financial expression of the value of the product. Setting the right price is an important part of effective marketing, being the only part of the marketing mix that generates revenue, as product, promotion, and place are all about marketing costs. Price is also the marketing variable that can be changed most quickly. Collin Ta’eed’s ‘Making Money’ describes pricing strategy as a difficult task that depends on nine major factors. They are as follows: 1. Total Costs: If the market price doesn`t include enough just to break-even, one is heading for trouble. The best thing to do is sum up all costs and divide by the number of hours that can be billed a year. This doesn`t include sick days, holidays, and hours working on the business, hours with no work and so on. All hidden costs must be factored. E.g.: insurance, invoices that never get paid for one reason or another, and taxes. 2. Profit: The aim of every business is to make money. Profit is the target money one wants to make above breaking even. Profit is affected by the revenue generated which in turn depends on market price. 3. Market Demand: The concept of demand – supply states that if what one does is in high demand, then make your services more expensive. Conversely if there`s hardly any work around, then decide the market price based on competitors pricing strategy. Signs that demand are high include too much work coming in, other freelancers being overloaded and people telling you they`ve been struggling to find someone to do the job. Signs that demand are low include finding yourself competing to win jobs, a shortage of work and fellow freelancers re-entering the workforce. 4. Industry Standards: It is a technical standards used in business. It is based on the industry market price, value for money, services offered etc. in order to fit in the market, one must adhere to industry standards. 5. Skill Level: Different people, depending on the result they produce, possess a different skill level. When applies to companies, it implies that the market price must be commensurate with the company`s skill. 6. Experience: Although often bundled with skill, experience is a different factor altogether. Experience affects how much a company must charge. E.g.: You may have two very talented photographers, but one with more experience might have better client skills, be able to foresee problems (and thus save the client time and money), and intuitively know what`s going to work for a certain audience and so on. 7. Business Strategy Adopted: Business strategy or angle will make a huge difference to the pricing strategy. E.g.: Think about the differences between Revlon and Chanel, the two could make the same perfume but you would never expect to pay the same for both. Pitching oneself in front of the target customers helps define a company as cheap and cheerful, high end or somewhere in between. This largely affects the market price as people are ready to pay a premium for high end goods. 8. Service Offered: Services are an intangible equivalent of economic goods. Service provision is often an economic activity where the buyer does not generally, except by exclusive contract, obtain exclusive ownership of the thing purchased. The benefits of such a service, if priced, are held to be self-evident in the buyers` willingness to pay for it. Public services are those societies as a whole pays through taxes and other means. The services that a company provides for its clients make a big difference to its price tag. For example you might be a freelancer, who will do whatever it takes to get a job just right, or perhaps you are on call 24-7, or perhaps you provide the minimum amount of communication to cut costs. Whatever the case, adjusting the pricing to the type and level of service provided is a must. 9. Market Segment: Prices will often vary for different clients. This happens for a few reasons. Some clients require more effort, some are riskier, some are repeat clients, some have jobs you are dying to do, some you wouldn`t want to go near with a stick. Thus these factors must be taken into account while pricing a commodity. Fixed Costs: A cost that does not change with an increase or decrease in the amount of goods or service produced. Fixed costs are expenses that have to be paid by a company, independent of business activity. It is one of the two components of the total cost of a good or service, along with variable cost. Fixed costs are defined as expenses that do not change as a function of the activity of a business, within the relevant period. E.g. rent, property tax, insurance, or interest expense. An example of a fixed cost would be a company`s rent on a building. If a company has to pay $10,000 each month to cover the cost of the rent but does not manufacture anything during the month, the rent payment is still due in full. In economics, a business can achieve economies of scale when it produces enough goods to spread fixed costs. For example, the $100,000 lease spread out over 100,000 widgets means that each widget carries with it $1 in fixed costs. If the company produces 200,000 widgets, the fixed cost per unit drops to 50 cents. Variable Costs: A corporate expense that varies with production output. Variable costs are those costs that vary depending on a company`s production volume; they rise as production increases and fall as production decreases. Variable costs differ from fixed costs such as rent, advertising, insurance and office supplies, which tend to remain the same regardless of production output. Variable costs can include direct material costs or direct labor costs necessary to complete a certain project. For example, a company may have variable costs associated with the packaging of one of its products. Conversely, when fewer of these products are sold the costs for packaging will consequently decrease. Marketing Costs: It is the amount of money spent on advertisement, distribution and selling of finished goods in the market. It has components of fixed and variable costs. It is difficult to obtain an estimate of the marketing cost. Hence, it is taken as a percentage of total costs and added to it. Total Costs: Total costs (TC) describes the total economic cost of production and is made up of variable costs, which vary according to the quantity of a good produced and include inputs such as labour and raw materials, plus fixed costs, which are independent of the quantity of goods produced and include (capital) that cannot be varied in the short term, such as buildings and machinery. Total cost in economics includes the total opportunity cost of each factor of production as part of its fixed or variable costs. If one assumes that the unit variable cost is constant, as in cost-volume-profit analysis developed and used in cost accounting by the accountants, then total cost is linear in volume, and given by: total cost = fixed costs + unit variable cost * quantity. Figure 4: Total Cost = Fixed Cost + Variable Cost Revenue: In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. Revenue may refer to business income in general, or it may refer to the amount, in a monetary unit, received during a period of time. Profit: It is the difference between a firm`s total revenue and all costs. It is the positive gain from an investment or business operation after subtracting for all expenses. It is the opposite of loss. Profit = Total Revenue – Total Costs Profit is the money a business makes after accounting for all the expenses. Regardless of whether the business is a couple of kids running a lemonade stand or a publicly traded multinational company, consistently earning profit is every company`s goal. The path toward profitability can be long. For example, online bookseller Amazon.com was founded in 1994 and did not produce its first annual profit until 2003. Many startups and new business fail when the owners run out of capital to sustain the business. Profit Before Tax: A profitability measure that looks at a company`s profile before the company has to pay corporate income tax. This measure deducts all expenses from revenue including interest expenses and operating expenses, but it leaves out the payment of tax. This measure combines all the company`s profits before tax, including operating, non-operating, continuing operations and non-continuing operations. PBT exists because tax expense is constantly changing and taking it out helps to give an investor a good idea of changes in a company`s profits or earnings from year to year. 3.2 Data Procurement Data required for analysis * List of Assets * Cost Spent on assets at t=0 * Useful life of each asset * Resale salvage price of each asset * Average repair and maintenance cost per year * Administrative cost per year * Fixed expenses incurred per year like rent, wages etc. * Variable costs involved in rice production * Quantity of rice, bran, husk produced * Unit price of raw material (paddy) and products (rice, bran, husk) The current asset price, useful life and salvage value was provided by Satake. Refer: Appendix A, Table 1.1. Data Description Each asset has a list of the following variables (whichever is applicable) * Quantity * Model type * Capacity * Electrical Rating * Market Price Data required for analysis of Rice Husk Gassifier * List of assets * Cost Spent on assets at t=0 * Useful life of each asset * Resale salvage price of each asset It is obtained from various sites online. Refer: Appendix B, Table 2.1. 3.3 Specifications and Assumptions Some specific data: * Capital Expenditure incurred = Rs. 9,05,04,240 * Capacity of Rice Mill = 4 tons per hour * Maximum Run = 270 days * 16 hours * Annual Requirement of Paddy at installed capacity = Capacity*Maximum Run = 17280 Metric Tonnes per year * The yield of rice is Particulars| Yield Percentage| Annual Yield (in MT)| Raw Rice| 65| 11232| Husk| 21| 3628.80| Broken Rice| 4| 691.20| Rice Bran| 8| 1382.40| Rejected Rice| 1| 172.80| Impurities| 1| 172.80| * Price of Paddy in the market = Rs. 1250 per quintal * Market Price of Raw Rice = Rs. 2000 per quintal * Market Price of Broken Rice = Rs. 1400 per quintal * Market Price of Bran = Rs. 1500 per quintal * Market Price of Husk = Rs. 320 per quintal Assumptions: * The plant is assumed to run for 270 days (approximate value for the rice mill) for calculations pertaining to profitability of rice mill. * The salvage cost is unknown and is taken as 10% of total assets cost. * Quantity of raw rice produced = Quantity of raw rice sold. No inventory is utilized. * No wastage of products and byproducts. 3.4 Solution Approach Payback Period Payback Period Internal Rate of Return Internal Rate of Return Net Present Value Net Present Value Solutions Solutions Net Present Value: * It is the algebraic sum of all cash flows pertaining to the project discounted to present time (t=0) at a chosen rate (i.e. Cost of Capital) NPV= -P+R-DÃâ€"1+in-1i*1+in+SÃâ€"11+in Where, P = Cost of Asset spent at time t=0 R = Revenue Income D = Disbursements S = Resale Stock Salvage Value i = Cost of Capital n = Number of Periods (Useful life of asset) Internal Rate of Return: The internal rate of return on an investment or project is the â€Å"annualized effective compounded return rate† or â€Å"rate of return† that makes the net present value (NPV) of all cash flows (both positive and negative) from a particular investment equal to zero. Payback Period: It is calculated by calculating Cumulative Cash Flow = (Net Cash Flow Year 1 + Net Cash Flow Year 2 + Net Cash Flow Year 3 †¦ etc.) Accumulate by year until Cumulative Cash Flow is a positive number: that year is the payback year. k= ln⠁ ¡(R-DR-D-P*i)ln⠁ ¡(1+i) Where, K = Payback Period P = Cost of Asset spent at time t=0 R = Revenue Income D = Disbursements i = Cost of Capital For calculation of Profit obtained Profit Function = Revenue generated – Cost Incurred Revenue generated = ∑(Qi*pi) Where, Qi = Quantity of commodity i sold per year pi = Unit Price of commodity i in the market Cost Incurred = Fixed Costs (FC) + Variable Costs (VC) Refer: Appendix A, Table 1.3 and Table 1.4. Chapter 4: Results and Discussions ————————————————- Result 1: For initial estimated values of input parameters * Initial Project Cost incurred at t=0 (P) = Rs. 90504240 (Refer: Appendix A, Table 1.2) * Gross Revenue Income (R) = Rs. 266664960/year (Refer: Appendix A, Table 1.4) * Operating Expenditure/ Disbursement (D) = Rs. 223860420/year (Refer: Appendix A, Table 1.3) * Salvage Value /Resale Value (S) = Rs. 6707544, * Useful life of assets (n) = 20 years, * Cost of Capital (i) = 15% Figure 5: Cash Flow Diagram at estimated values of input parameters Refer: Appendix A, Table 1.5. Using engineering economics equations (Refer Chapter 3, section 3.4 – Solution Approach), we have found * NPV= -90504240+266664960-2435595801+0.1520-10.15*1+0.1520+6707544[11+0.1520] = Rs. 54529825.06 * IRR = 25.27% at NPV = 0 * Payback period, k= ln(266664960-243559580266664960-243559580-90504240*0.15)ln(1+0.15) = 6.34 years Figure 6: C programme for calculating IRR Refer: Appendix C. This is the C programme return to calculate the IRR of any cash flow correct upto two decimal places. This programme can be used for any type of cash flows. Result 2: The following two graphs depict the relation of Cost of Capital with NPV and Payback Period. Figure 7: Effect of Cost of Capital on NPV Refer: Appendix A, Table 1.6. This graph helps obtain an estimate of the NPV based on the Cost of Capital. In order to get higher NPV, the Cost of Capital should be less. With a variation of 10% in the Cost of Capital, from 11% to 20% the NPV decreases substantially from 94 million INR to 22 million INR. Figure 8: Effect of Cost of Capital on Payback Period Refer: Appendix A, Table 1.6 This graph helps obtain the estimate of the Payback period based on the Cost of Capital. In order to get lesser Payback Period, the Cost of Capital should be less. With a variation of 11% in the Cost of Capital, from 10% to 20% the Payback Period increases substantially from 3.56 years to 10.95 years. Discussion: The value of Cost of Capital is varied over a feasible range of 10% to 20% and the corresponding values of NPV and Payback period. If the Cost of Capital decreases, the NPV of the firm increases while the Payback Period of the firm will reduce as expected from the formulae of NPV and Payback Period – Refer Chapter 3, section 3.4 – Solution Approach. Result 3: The following two graphs depict the relation of cost of unit amount of paddy (raw material cost) with NPV and IRR. 1 Unit = 1 Quintal Figure 9: Effect of unit Paddy Price on NPV Refer: Appendix A, Table 1.7. This graph helps obtain an estimate of the NPV based on the cost of unit amount of paddy. The graph shows more or less a linear variation as expected. In order to get higher NPV, the cost of raw material should be less. A large variation could be seen in the NPV i.e. from 324 million INR to -216 million INR, when the price of paddy varies from 1000 INR per quintal to 1500 INR per quintal, keeping all other market price and other factors constant. In India, the Government of India fixes the minimum paddy price to save the interests of the farmers. So, if the price of the paddy goes above 1300 INR per quintal, the firm will not be beneficial at all instead will start incurring a loss. Figure 10: Effect of unit Paddy Price on IRR Refer: Appendix A, Table 1.7 In the graph the effect on IRR for different unit price of Paddy is shown. As the price of paddy increases from 1000 INR per quintal to 1350 INR per quintal, the IRR decreases substantially from 73.26% to 2.99% in eight uniform steps. Discussion: For a fixed market price of Raw Rice, NPV and IRR decreases substantially with increase in unit price of Paddy. This is an obvious conclusion from the NPV equation – Refer Chapter 3, section 3.4 – Solution Approach. As the unit price of paddy rises, the operating cost also starts increasing thus our annuity per year will decrease. With decrease in NPV and IRR, the payback period also increases. Result 4: In the following two graphs the unit price of Raw Rice (product) is varied to see the effect on the NPV and IRR. 1 Unit = 1 Quintal Figure 11: Effect of unit Raw Rice Price on IRR Refer: Appendix A, Table 1.8 This graph helps obtain the NPV of the firm based on the unit market price of Raw Rice. As the unit market price of Raw Rice increases, the Gross Revenue Income increases substantially which leads to increase in NPV. This graph shows linear variation with unit price of Raw Rice as expected. A large variation could be seen in the NPV i.e. from -191.5 million INR to -441.2 million INR, when the price of raw rice varies from 1650 INR per quintal to 2550 INR per quintal, keeping all other market price and other factors constant. With 1% increase in the unit market price of Raw Rice, the NPV of the firm increases substantially by 25.784%. If the unit market price of Raw Rice is above 1920 INR per quintal, the firm will be beneficial and below that price it will be running in loss. Figure 12: Effect of unit Raw Rice Price on IRR Refer: Appendix A, Table 1.8 In the graph, the variation of IRR for different unit market price of Raw Rice is studied. The unit market price of Raw Rice is varied in a feasible range of 1850 INR to 2550 INR, to estimate the effect on IRR. The IRR of the firm increases substantially from 3.71% to 93.79% in twelve uniform steps. This happens because as the unit market price of Raw Rice increases, the gross revenue income also increases which increases the IRR of the firm and reduce the payback period. Discussion: The unit market price of Raw Rice is required to estimate the profit that can be earned. As the unit price of Raw Rice increases, the gross revenue income increases and thus the NPV and IRR of the firm increases substantially. If the revenue increases, the payback period of the firm will reduce. If the unit market price falls beyond a certain point i.e. 1920 INR per quintal, the firm will start incurring loss. These graphs help in setting competitive market price of Raw Rice. Result 5: The following two graphs show the effect of unit market price of Bran (byproduct) on the NPV and IRR of the firm. 1 Unit = 1 Quintal Figure 13: Effect of unit Bran Price on NPV Refer: Appendix A, Table 1.9 This graph helps obtain the NPV of the firm based on the unit market price of Bran. The NPV of the firm increases from 11.27 million INR to 141 million INR in fifteen equal steps assuming 50 INR hike in unit market price of Bran at every step. This graph shows linear variation with unit price of Raw Rice as expected. With 1% increase in the unit market price of Bran, the NPV of the firm increases substantially by 2.38%. Figure 14: Effect of unit Bran Price on IRR Refer: Appendix A, Table 1.9 Since with the increase in the unit market price of Bran the NPV of the firm increases, therefore IRR of the firm also increases. With 1% increase in the unit price of Bran the IRR increases about 0.24%. This graph shows more or less a linear variation. The IRR of the firm increases from 17.20% to 40.76% as the price of Bran increases from 1000 INR per quintal to 2500 INR per quintal. Discussion: The unit market price of Bran, a byproduct, also has substantial effect on gross revenue income as it forms 8% part of the total outcome which is about 1382.40 Metric tons. Today market price of Bran is about 1500 INR per quintal through which 20.736 million INR revenue is generated per year. Since, an increase in unit market price of Bran increases the gross revenue income, the NPV and IRR of the firm also increases. With increase in revenue, the payback period of the firm decreases. Result 6: Figure 15: Effect of Salvage on NPV Refer: Appendix A, Table 1.10 Figure 16: Percentage change in NPV with percentage change in Salvage Value Refer: Appendix A, Table 1.10 Basic Assumption: Salvage value is hard to define as it is the future value of 20 years down the line from now. Hence it is assumed to be certain percentage of the total assets cost. It is assumed to be 10% of the total assets cost incurred and is discounted to today’s value at a rate of 15% to find the Net Present Value of the firm. The salvage value can vary over a range of 5% to 20% of the total assets cost. The NPV changes from -0.5% to 0.75% i.e. from 54.32 million INR to 54.94 million INR by changing the salvage value by -5% to 10% i.e. from 5% to 20% of the total assets cost. Discussion: The NPV of the firm doesn’t increases substantially with increase in the salvage value of the assets. The graph shows a straight line variation as expected. With 1% increase in salvage value the NPV increase by 0.075%. This increase in the NPV is negligible, therefore, even if the assumed resale value of the assets change in the future, it will not affect the calculations done in this case study for the profitability analysis of Jay Laxmi Rice mill. Result 7: The following two graphs will help in assessing the economy of generating electricity from husk (by product) using Rice Husk Gassifier. Figure 17: Effect of percentage of Total electricity requirement that is substituted by Rice Husk Gasifier on NPV Refer: Appendix B, Table 2.3 The graph shows that the NPV of the firm increases linearly as the amount of electricity produced by the husk Gasifier increases as expected. The NPV of the firm increases from 51 million INR to 89 million INR as the amount of electricity that is substituted by the Rice Husk Gasifier increases from 65% to 100% of total electricity requirement. The minimum amount of total electricity that should be produced from husk so that the firm has the same NPV as before implanting the husk gasifier is 68.8% Figure 18: Effect of percentage of Total electricity requirement that is substituted by Rice Husk Gasifier on IRR Refer: Appendix B, Table 2.3 This graph shows the variation of the IRR of the firm with respect to the percentage of the total electricity requirement that is substituted by Rice Husk Gasifier. The graph shows an expected linear increase in IRR as the amount of electricity produced by the husk Gasifier increases. The IRR of the firm increases from 24.52% to 31.32% as the amount of electricity that is substituted by the Rice Husk Gasifier increases from 65% to 100% of total electricity requirement. Discussion: To be economic at least 68.8% electricity requirement needs to be generated from Husk Gasifier i.e. the minimum amount of total electricity requirement that should be substituted by the Rice Husk Gasifier so that the firm profit as before setting up of the Rice Husk Gasifier. If the amount of electricity produced is more than this amount than the plant will earn more profit than before but if it is less, then the rice husk gasifier should not be set up, because the plant will be earning less than before. The plant may be beneficial but will be in loss as comparison to the current scenario. The following figure 19 shows the cash flow diagram when 68.8% of electricity requirement is generated from Husk Gasifier. Figure 19: Cash Flow diagram with Rice Husk Gasifier Refer: Appendix 8, Table 2.2 Chapter 5: Summary and Conclusions ————————————————- 5.1 Summary The main aim of this study was was to analyze the Jay Laxmi Rice Mill, Bazpur in Udham Singh Nagar district in the state of Uttarakhand, from its business point of view. It has a nominal capacity of 4000kg/hr. It has been built for the production of raw rice. Some estimates were required to analyze its profitability. The economic analysis of the project was carried out using engineering economics equations. The sensitivity of NPV, IRR and Payback period with respect to various factors like Cost of Capital, paddy price, raw rice price, bran price and salvage were studied. Also the economy assessing of generating electricity from husk (by product) using Rice Husk Gassifier was done. The minimum electricity requirement that needs to be generated from Rice Husk Gasifier for economic purposes was calculated. The following conclusions are drawn from the study: * For initial estimated values of input parameters (P = Rs. 90504240, R = Rs. 266664960/year, D= Rs. 223860420/year, S = Rs. 6707544, n = 20 years, i = 15%) * NPV = Rs. 54529825.06 * IRR = 25.27% * Payback period = 6.34 years * With a variation of 10% in the Cost of Capital, from 11% to 20% the NPV decreases substantially from 94 million INR to 22 million INR and Payback Period increases from 4.03 increases to 10.95 years. * A large variation could be seen in the NPV i.e. from 324 million INR to -53.5 million INR, when the price of paddy varies from 1000 INR per quintal to 1350 INR per quintal while IRR increases from 73.26% to 2.99%. * NPV increases from -50.9 million INR to -441.2 million INR and IRR increases from 3.71% to 93.79%, when the price of raw rice varies from 1850 INR per quintal to 2550 INR per quintal. * As the price of Bran increases from 1000 INR per quintal to 2500 INR per quintal, the NPV and IRR of the firm increases from 11.27 million INR to 141 million INR and 17.20% to 40.76% respectively. * With 1% increase in salvage value the NPV increase by 0.075%. This increase in the NPV is negligible, therefore, even if the assumed resale value of the assets change in the future, it will not affect the calculations done in this case study for the profitability analysis of Jay Laxmi Rice mill. * To be economic at least 68.8% electricity requirement needs to be generated from Husk Gasifier i.e. the minimum amount of total electricity requirement that should be substituted by the Rice Husk Gasifier so that the firm profit as before setting up of the Rice Husk Gasifier. References ————————————————- * James L. Riggs 2004, Engineering Economics, 4th edition, Tata Mc Graw Hill Education Private Limited, pp 67-147. * Chandra P. 2011, Fundamentals of Financial Management, 11th edition, Tata Mc Graw Hill Education Private Limited, pp 150-167. * T. Kapur, T. C. Kandpal and H. P. Garg, Electricity Generation from Rice Husk in Indian Rice Mills: Potential and Financial Viability, Indian Institute of Technology, New Delhi (1995). * Alexis Belonio, Victoriano Ocon, and Antonio Co, Garbage-In Fuel-Out: Small-Scale Rice Husk Gasifier Plant for Community Street Lighting, Suki Trading Corporation, Philippines (2011). * Email from Gaurav Vashisht (gaurav@satakeindia.com) working at Satake, kolkata.