Monday, December 12, 2011

India, US discuss ways to end differences on nuclear liability law!Morgan Stanley lowers India’s 2012 GDP forecast to 7.4 p.c.Telcos see red even as CBI files chargesheet against Loop!The CBI on Monday filed before a Special Court the second suppleme



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India, US discuss ways to end differences on nuclear liability law!Morgan Stanley lowers India's 2012 GDP forecast to 7.4 p.c.Telcos see red even as CBI files chargesheet against Loop!The CBI on Monday filed before a Special Court the second supplementary chargesheet in the 2G spectrum case against five individuals including Essar Group's Mr Ravikant Ruia and Mr Anshuman Ruia.Consumer confidence on the Indian economy has seen a significant decline in the June- September quarter, shows a consumer confidence survey carried out by Reserve Bank of India. The RBI says the positive perception about Indian economy has gone down from 61.2 percent in the last quarter to 56.9 percent in September 2011. The good news is higher percentage of people feel employment conditions could improve next year.


Lokpal Bill likely to come up for consideration on December 20

BCCI scraps Nimbus deal; forfeits Rs. 2,000 cr bank guarantee


The Indian rupee on Monday hit an all-time low of 52.84/85 against the dollar as demand for the U.S. currency soared amid signs of FIIs pulling out money in the wake negative growth in industrial production in October.

Meanwhile, the industrial output, as measured by Index of Industrial Production (IIP) registered a negative growth of 5.1 per cent in October, the lowest in over two years, mainly due to rising interest rate, high prices and global uncertainties.
Reacting to the disappointing IIP numbers, the BSE benchmark index Sensex closed down by 343 points, or 2.12 per cent, to dip below the crucial 16,000 level.

Centre scales down GDP growth forecast to 7.5 %

Coal outlook dim, indecision makes it dimmer
Even as the 5.1-percentage points contraction in the factory output data came as a rude shock, leading economists and analysts today advised the Reserve Bank against any knee-jerk reaction on the monetary front as inflation still remains highly elevated.

LIC (Amendment) Bill 2009 passed in the Lok Sabha

Cabinet nod to National Food Security Bill likely Tuesday

Economic reforms implementation key to turnaround growth in coming months: Montek Singh Ahluwalia

Troubled Galaxy Destroyed Dreams ,Chapter 720


Palash Biswas


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12/12/2011

CBI files chargesheet against Ruias, Khaitans in 2G case

New Delhi: The Central Bureau of Investigation (CBI) on Monday filed chargesheets against corporate giants Ruias and the Khaitans in connection with the telecom scam.
The CBI chargesheet names Ravi Ruia, the Vice Chairman of Essar Group; Anshuman Ruia, Director of the Essar Group; promoters of Telecom, IP Khaitan and Kiran Khaitan; and Vikas Saraf, CEO, Essar Telecommunication.
This is the third chargesheet in the case that has ripped through corporate and political India.
The CBI has alleged that in 2008, Loop was used as a front by Essar to collect more licenses and spectrum than was legally allowed.
The licenses for Loop - 21 circles for about 1450 crores - were granted by A Raja, who was arrested in February for using his post as telecom minister to gift licenses to ineligible companies.
Law and Justice Minister Salman Khurshid had last week said he did not believe either company had broken the country''s laws.
Attorney General G E Vahanvati when asked for his opinion, advised the CBI that the two firms seemed to be "alter egos."
India's telecom rules mandate that a company cannot hold more than 10 per cent in two operating licenses in the same circle.
To get around that, the CBI says, Essar used Loop as a proxy.
Essar has denied all charges and said it will take legal recourse.
The first chargesheet in the telecom scam, filed early in April this year, saw a similar accusation by the CBI against Reliance Telecom, which accused Anil Ambani''s company of using Swan Telecom as a proxy.
Top executives from both companies were arrested and spent several months in jail before being granted bail just a few weeks ago.
The Ministry of Corporate Affairs, headed by Veerappa Moily, has said that in its opinion, neither Loop nor Swan can be considered "associates" of Essar and Reliance.
The ministry said it''s up to the Department of Telecom to determine if laws on ownership were broken.
In July, the Essar group exited the telecom sector after selling its 33 per cent stake in a joint venture with Vodafone.
Source: ANI

Expressing concern over the slump in industrial output that plunged to minus-5.1 percent in October,Planning Commission Deputy Chairman Montek Singh Ahluwalia said key economic reforms need to be implemented to ensure a turnaround in the coming months.
"I don't have a gameplan for it but we recognise that we have to take a holistic look at all aspects of the situation that may be constraining investment," Ahluwalia told reporters while reacting on the recent slump in industrial output.
Industrial output growth has declined in the last few months and slumped into negative territory in October.
Factory output, measured in terms of the Index of Industrial Production ( IIP), slumped to minus-5.1 percent in October this year as compared to 11.3 percent growth registered during the corresponding month of last year.
Reacting on the monthly data, Ahluwalia said slump in investment was the biggest concern.
"We have identified a few things that need to be done. The most important thing is to get rid of the implementation bottlenecks," he said adding that infrastructure bottlenecks such as in coal and power sector also needed urgent attention.
"A lot of meetings are taking place in government to try and do that. If that succeeds then hopefully there will be a turnaround." he said.
Cumulative growth in industrial output has slumped to 3.5 percent in April-October 2011 period as compared to 8.7 percent during the corresponding period of last year.
India's overall economic growth has decelerated to 7.7 percent in the first quarter of 2011-12 and it fell further to 6.9 percent in the second quarter against the government's budgetary target of around 9 percent.
Ahluwalia said there was no certainty whether the growth will turnaround in the third quarter of the current fiscal.
"When you see a deceleration occurring quarter by quarter you have to wait and see when deceleration turns around. So I think we need to look at the third quarter GDP numbers," he said.

Commerce and Industry Minister Anand Sharma will hold a government-industry consultation next week to discuss the slump in factory output, an official statement said Monday.


"The minister will hold government-industry consultation on the issue Dec 19, 2011, after his return from the WTO ministerial meeting," the ministry of commerce and industry said in a statement.


The ministerial meeting of the World Trade Organisation (WTO) is scheduled to be held in Geneva Dec 15-17.


Industrial output growth has declined in the last few months and slumped into negative territory in October.


Factory output, measured in terms of the Index of Industrial Production (IIP), slumped to minus 5.1 percent in October this year as compared to 11.3 percent growth registered during the corresponding month of last year.


Sharma expressed "deep concern over the sharp decline in industrial production, particularly in the fall of manufacturing which are engaging the government's attention at the highest level".


The output of the manufacturing sector, which constitutes over 75 percent of the IIP index, declined by six percent in October, as against a growth of 12.3 percent registered during the corresponding month of 2010.


India Inc has blamed policy paralysis and rising cost of capital for deceleration in industrial and overall economic growth. The Reserve Bank of India has hiked key policy rates 13 times since the beginning of 2010 to curb stubborn inflation.

Centre scales down GDP growth forecast to 7.5 %

In a grim alert to the nation at large on the economic hardships that may lie ahead during the current fiscal and beyond, the government on Friday scaled down its GDP (gross domestic product) growth forecast for 2011-12 from 9 per cent to about 7.25-7.75 per cent in view of the gloomy global environment and specific negative factors at home.

MID-YEAR ANALYSIS

Tabled in Parliament by Finance Minister Pranab Mukherjee, the Finance Ministry's 'Mid-Year Analysis 2011-12' said: "The analysis of several data series and simple macro-econometric modelling lead us to forecast GDP growth of 7.5 per cent (plus/minus 0.25 per cent) during 2011-12."
The economic report card asserted that the sharply deteriorating global economic environment "has had a dampening effect on India" and "compounded with some domestic factors, the global situation has led to a clear slowdown in the growth rate of the Indian economy during the first half of 2011-12" to 7.3 per cent from 8.6 per cent year-on-year.
The government, however, expressed cautious optimism on a likely turnaround next fiscal but also pointed out that much would depend on the global economic environment, especially with regard to the aftermath of the sovereign debt crisis in Europe and the slowdown in the U.S.
"We expect some revival next year but the outlook remains mixed. If Europe slides into proper recession, with all the attendant financial contagion that will no doubt affect other nations, the entire world economy will slowdown and we could also be impacted," the analysis said. Alongside, however, it maintained "… given that India's fundamentals are strong, if Europe and the U.S. remain stable, it should be possible for us to get back close to our long-run target of 9 per cent."
On the burning issue of high prices, the Finance Ministry's analysis noted that the overall inflation at 9.73 per cent in October was likely to moderate to 7 per cent by the end of March next year. With demand side pressure moderating following withdrawal of fiscal stimulus and tightening of credit, the overall WPI (wholesale price index) inflation is likely to decline December onwards. "...the current fiscal may end with headline inflation of around 7 per cent," it said while pointing out that "maintaining the growth momentum in the economy with price stability is one of the biggest policy challenges that India is facing in recent times."
As for adhering to the budgeted fiscal deficit target of 4.6 per cent of the GDP in 2011-12, the government conceded that it would not be an easy task. "...adhering to the fiscal deficit target of 4.6 per cent of GDP is a major challenge," the mid-year analysis said, especially in view of the fact that the government will find it difficult to raise Rs.40,000 crore from disinvestment and Rs.13,000 crore telecom spectrum auction.
The analysis noted that even as the government is determined to "keep overshooting of the fiscal deficit target as minimal as possible", the uncertainty on disinvestment receipts — when markets are in a tailspin — and a likely higher subsidy requirement owing to rising prices of oil, fertilizer and other commodities "do make it a challenging task to adhere to the overall fiscal deficit target." Raising concerns over rising expenditure on account of major subsidies, including oil, food and fertiliser besides higher interest payment, it said: "Higher growth in expenditure explains structural problem of government finances which needs to be addressed through policy initiative."
Interacting with the media outside North Block, the Finance Minister maintained that the major challenges before the country were issues such as reverting to high growth, managing inflation and insulating India from adverse global economic situation.

India, US discuss ways to end differences on nuclear liability law!


Lokpal Bill likely to come up for consideration on December 20


BCCI scraps Nimbus deal; forfeits Rs. 2,000 cr bank guarantee


Morgan Stanley lowers India's 2012 GDP forecast to 7.4 p.c.


Even as the 5.1-percentage points contraction in the factory output data came as a rude shock, leading economists and analysts today advised the Reserve Bank against any knee-jerk reaction on the monetary front as inflation still remains highly elevated.

Earlier in the day, the government released the factory output number for October that showed manufacturing contracted by a whopping 5.1 percent in the month against 11.3 percent a year ago, hitting a 34-month low.

The RBI has increased its key lending rate by a total of 375 basis points since March 2010 to batten down inflation that has stayed above nine percent for nearly a year. However, its rate hikes have done more to dampen growth than tame inflation. The September quarter GDP rose only 6.9 percent, the slowest in over two years.

Manufacturing output, which contributes about 76 percent to industrial production, fell an annual 6 percent in October, reflecting weak consumer demand at home and overseas.

HDFC Bank chief economist Abheek Barua said, "even though price pressure is likely to ease going ahead with the first sign of moderation coming as early as this week, inflation still remains high and there is still some uncertainty over how it can pan out going ahead.

"We therefore expect RBI to maintain key policy rates on December 16, and abstain from a CRR cut. The central bank could, however, build in a dovish forward guidance throwing the door open for a CRR cut when it meets in January, timing it with a possible expansion in government borrowings at the time," Barua said.

HSBC Asia chief economist Lief Eskeseen too opined that "though the massive contraction in the IIP numbers was partly coloured by the volatility of the capital goods segment and the timing of Diwali, it goes well-beyond this and reflects a broad-based slowdown.

"However, this does not mean that rate cuts are just around the corner. Inflation remains too high for comfort and downward pressures on the exchange also act as a constraint.

"Despite the slowdown in growth, there are still significant upside risks to inflation from tight capacity, pent-up commodity prices pressures, and the depreciated exchange rate. Moreover, RBI is fighting a lonely battle against inflation, with the fiscal stance not sufficiently tight and structural reform efforts to lift supply-side constraints not rolling out fast enough," he said.
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Investment banking major Morgan Stanley has revised downwards its India's economic growth forecast for 2012 to 7.4 per cent.
The global brokerage firm has also reduced its year-end target for the Bombay Stock Exchange benchmark Sensex by 15 per cent to 18,850.
Morgan Stanley reduced its forecast for India's gross domestic product growth for 2012 to 7.4 per cent from 7.8 per cent amid high inflation and weak global capital markets environment.
Its new Sensex target for December 2011 is down 15 per cent to 18,850 points and the December 2012 target is 22,750.
"Reflexivity is at work -- lower share prices are affecting growth and vice versa," Morgan Stanley said in a research note.
"Earnings have support from decade-low gross margins and strong balance sheets, but face headwinds from fragile global growth. We think broad-market earnings growth may have troughed," Morgan Stanley added.
The Sensex has fallen two per cent to 16,141.67 points on Friday. The 30-share benchmark index has tanked as much as 31 per cent from its November 2010 high of 21,108.64 points.
Key positives for Indian equities outlined by the brokerage include surging corporate activity and good progress in sowing season, which bodes well for respective rural incomes and taming food inflation.
According to the report, the main factors that could adversely impact the markets include oil prices, inflation, high rates, slowing growth and alleged corruption scandals.
"During the 2008 crisis, Indian earnings outperformed, but equities fell due to a large outflow of capital... Massive global stimulus or a breakdown in capital markets will hurt India on a relative basis a la 2008," the report said.
Regarding the growth prospects of emerging market economies, including India, Morgan Stanley said that emerging market economies will not be immune to the developed market slowdown and the countries with higher global exposure will be ones which will be most hurt.
"The countries which are more externally oriented such as Korea, Singapore, Malaysia, Taiwan and Thailand will see a greater adjustment in their growth outlook compared with the economies with higher dependence on domestic demand, such as China, India and Indonesia," the report said.
Morgan Stanley expects emerging market growth to fall to 6.4 per cent this year from 6.6 per cent previously.




Telcos see red even as CBI files chargesheet against Loop!The CBI on Monday filed before a Special Court the second supplementary chargesheet in the 2G spectrum case against five individuals including Essar Group's Mr Ravikant Ruia and Mr Anshuman Ruia.Consumer confidence on the Indian economy has seen a significant decline in the June- September quarter, shows a consumer confidence survey carried out by Reserve Bank of India. The RBI says the positive perception about Indian economy has gone down from 61.2 percent in the last quarter to 56.9 percent in September 2011. The good news is higher percentage of people feel employment conditions could improve next year.

US Monday said India shared its commitment to the "full implementation" of the Civil Nuclear Agreement as both countries discussed ways to iron out differences on the nuclear liability law.

The much debated Lokpal Bill is expected to come up for consideration in the Lok Sabha on December 20 amid indications that the Prime Minister could be brought under its purview with some safeguards.

Taking a tough stand, the Board of Control for Cricket in India on Monday scrapped the contract with its broadcast rights holder Nimbus for defaulting on payments and forfeited the bank guarantee amount of Rs. 2,000 crore.

The decision to terminate Nimbus' contract, three years before its expiry, was taken at the BCCI's emergent working committee meeting where members were "unanimous" in scrapping the telecast deal for India's home series matches.
"Members were unanimous that such an organisation which has been a regular defaulter in terms of payments cannot be continued with," one of the members of the working committee said on condition of anonymity.

Nimbus, which had signed a four-year deal with the BCCI in October 2009 for a whopping Rs. 2,000 crore, paid Rs. 24 crore on Monday ahead of the working committee meeting here but there was still an outstanding amount of Rs. 88 crore.
"Not a single series has gone where they have paid the full amount on time. Also another reason is that India's international commitments at home have finished with the ODI series against the West Indies," the official said.

Since there was a big gap before the next home series gets underway, the BCCI top brass felt that there is enough time to find a new broadcaster.
The termination of Nimbus means that the rest of the domestic season would not be televised.
It was also learnt that the working committee members were unhappy about World Series Hockey (WSH) being promoted in the air time scheduled for cricket.

"They were bringing hockey players during the breaks of the cricket matches and forcing commentators Sanjay Manjrekar and Courtney Walsh to ask questions with the hockey players.
The break-time show was supposed to be solely dedicated to cricket," the official said.

As per the contract, Nimbus had to pay an approximate amount of Rs. 31.5 crore per game to the BCCI.

Apart from the current payment, the BCCI and Nimbus also had a long-pending 'issue' over radio rights. Nimbus was not happy with the All India Radio's offer and had asked the BCCI to deal with them directly.

When contacted, Yannick Colaco, COO, Nimbus Sport said that he was not yet aware of any such development.

LIC (Amendment) Bill 2009 passed in the Lok Sabha

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NEW DELHI: One of the key financial bill, Life Insurance Corporation (Amendment) Bill 2009 was passed in the Lok Sabha amongst opposition from key parties and a walk out by the Left parties.

The bill seeks to raise the capital base of the state-owned insurer to Rs 100 crore from 5 crore, bringing it on a par with private insurers, both in life and non-life segments, which are required to have a minimum capital base of 100 crore as per IRDA norms.

Minister of State for Finance Namo Narain Meenasaid once the bill is enacted, it will not have any effect on the present policy holders.

The bill was introduced in the Lok Sabha in 1999 and referred to the Standing Committee on Finance, which had strongly opposed the provision in the Bill that empowered the government to limit the extent of sovereign guarantee.

The government, Meena clarified, will continue to provide sovereign guarantee to the policies sold by LIC.

The bill also seeks to allow LIC to allocate 90% or more such surplus - excess of assets over liabilities - for life insurance policy-holders and the rest to a separate account maintained by LIC.
http://economictimes.indiatimes.com/news/economy/policy/lic-amendment-bill-2009-passed-in-the-lok-sabha/articleshow/11084457.cms

Cabinet nod to National Food Security Bill likely Tuesday
With the cabinet all set to approve the draft National Food Security Bill Tuesday, the government plans to introduce it in the ongoing winter session of parliament, which ends Dec 22.

"The cabinet will take up the bill Tuesday," Food Minister K.V. Thomas told IANS.

The draft bill, which bears the stamp of Sonia Gandhi-led National Advisory Council, seeks to cover upto 75 percent of the rural population and 50 percent of urban households. It proposes right to 7 kg foodgrains per month per person, at Rs.3 per kg for rice, Rs.2 per kg for wheat and Rs.1 per kg for coarse grains to the priority beneficiaries.

"We have fast-tracked the process and will introduce the bill this session," said Thomas.

Sources said the food ministry has obtained views of the related ministries and has adequately addressed their concerns in the draft bill.

For instance, the draft bill suggests investment in the agriculture sector to boost food production in the long run. It also stresses on revamping the public distribution system, which will deliver the grains to the beneficiaries.

Taking note of concerns expressed by the states, the ministry has provided for cost- sharing in all the schemes under the draft bill.

The states want the central government to fully or partially share the cost of implementing the proposed law which is expected to substantially push the current food subsidy bill to Rs.63,000 crore.

For instance, the cost-sharing model in the Integrated Child Development Services Scheme would be different from the mid-day meal scheme.

Other objections of the states include authority to decide on the criteria to identify the beneficiaries.

While the Chhattisgarh government wants to do the job itself, Bihar prefers an independent body to identify the beneficiaries.

Officials said the draft bill proposes legal rights to women, children, special groups including the destitute and homeless, emergency and disaster affected persons and persons living in starvation to take home ration/meals.

To implement the right to food, the government has proposed to set up a three-tier grievance redressal mechanism at district, state and national level for the implementation of the legislation.

Parliamentary Affairs Minister Pawan Kumar Bansal said that the legislation could now come up for approval in the Lower House on December 20, giving ample time for the Upper House to consider the measure.

The current session adjourns sine die on December 22.

Bansal indicated that the Prime Minister could be brought under the ambit of the ombudsman with some safeguards. At the same time, he said his personal opinion was that PM should be kept out of the Lokpal's purview.

Consultations over the legislation would gain momentum from tomorrow with Prime Minister Manmohan Singh holding talks with allies at a meeting of UPA leaders.

The meeting is expected to project a united face of the ruling alliance on the issue of Lokpal at a time when it was under attack from opposition parties and Anna Hazare for coming out with a "weak" bill.

The consultations will be held a day ahead of an all-party meeting convened by the Prime Minister on the ticklish issue.

Though some opposition parties have been demanding extending the Winter session, government managers are ruling out such a possibility at present.

At Jantar Mantar yesterday, several political parties flayed the government and the Parliamentary Standing Committee for preparing a "weak" Lokpal draft. Some of them also appealed to Anna and his team to be flexible in their approach towards the bill.


US Deputy Secretary of State William Burns, who is in Delhi on a visit, Monday held wide-ranging talks with Foreign Secretary Ranjan Mathai covering the issue of implementation of civil nuclear deal and other subjects like Afghanistan and Pakistan.

He also met Prime Minister Manmohan Singh, External Affairs Minister SM Krishna and National Security Adviser Shivshankar Menon.

"We had very productive discussions on a wide range of bilateral, regional and global issues. We stressed our shared interest in expanding our economic cooperation between our two countries (and) our shared commitment to the full implementation of the Civil Nuclear Agreement," Burns told reporters.

He said he was pleased to follow-up on the "excellent meeting" President Barack Obama had with Prime Minister Singh in Bali in Indonesia last month.

Implementation of the civil nuclear agreement, signed in 2008 by Prime Minister Manmohan Singh and the then President George W Bush, has been a matter of contention, particularly due to American reservations on India's nuclear liability law.

The US contends that the legislation is not in tune with the IAEA's Convention on Supplementary Compensation thus making it difficult for US companies to start nuclear commerce with India.

Singh had told Obama that India had gone "some way" to allay concerns of US firms on nuclear liability but made it clear that any specific grievance has to be addressed within the "four corners" of the law.

Burns stressed that the US government was giving "high-level attention" to its relationship with India and said this partnership is not going to see everyday the "dramatic breakthroughs or announcements" like the civil nuclear deal.

"But I think everyday we can continue with our hard, steady work on building and strengthening the relationship that matters great to our two governments and our people," he said.

On former Home Secretary GK Pillai's comments that US was very reluctant in sharing information about 26/11 plotter David Headley, Burns said the two countries have put very hard and effective work not only in intelligence sharing in counter-terrorism cooperation.

Burns said US understands the "significance" of Headley case and that the US is determined to continue to work with our "Indian partners not only on that case but as I said shared interest in fighting terrorism around the world."


Essar group promoters Anshuman and Ravi Ruia were among the five corporate honchos who were Monday made accused by the CBI in its third charge sheet filed in a Delhi court arising out of investigations in the 2G scam.

The other three named in the chargesheet are Loop Telecom promoters Kiran Khaitan, her husband IP Khaitan and Essar Group director (Strategy and Planning) Vikas Saraf.

Interestingly, the five have been charged with cheating the Department of Telecom (DoT) by using Loop Telecom as a "front" to secure 2G licenses in 2008.
They were slapped with offences only under the Indian Penal Code as the CBI did not find enough evidence to prosecute them under the Prevention of Corruption Act.

The fresh charge sheet, filed before Special CBI Judge OP Saini, added eight new accused, including Loop Telecom Pvt Ltd, Loop Mobile India Ltd and Essar Tele Holding, in the list of existing 17 accused in the case.

The court has now fixedDecember 17 for taking cognizance of the 105-page-long charge sheet for prosecution on offences of cheating and criminal conspiracy under the IPC.

"The matter requires further consideration. Put up on December 17 for the consideration of the charge sheet," the court said.

Essar Group, in a statement, denied any involvement in the 2G spectrum allocation scam and said it has complied with in totality with all conditions of telecom licences.
It claimed that the CBI has confirmed that Essar was not not involved in the 2G scam.

"We would like to reiterate that Essar has complied with all conditions of clause 8 under UASL guidelines (dealing with cross-holding) in totality and all the facts which have been given at the time of submitting the application for telecom licence i.e, shareholding/ownership have been independently verified by the government agencies," Essar Group said.

Essar Group is a responsible corporate citizen and has always complied with all government guidelines and the law of the land, the group said.

The charge sheet names 100 prosecution witnesses.
The CBI alleged that Essar, which already had a stake as an existing telecom operator, created a front company Loop Telecom to secure additional spectrum which was in contravention of the Telecom policy.

Essar Group, however, have been saying that they have not been holding nearly or over 10 per cent stake in the Loop Telecom and its stake was only 2.15 per cent and there was no violation of clause 8 of the Unified Access Services Licences (UASL) guidelines.

Meanwhile,Prime Minister Manmohan Singh will hold consultations with allies on Tuesday on the Lokpal issue at a meeting of UPA leaders, the first such exercise after the fiasco over FDI in retail.

The meeting is expected to project a united face of the ruling alliance on the issue of Lokpal at a time when it was under attack from opposition parties and Anna Hazare for coming out with a "weak" bill.

The consultations will be held a day ahead of an all-party meeting convened by the Prime Minister on the issue.
Last week, the government had to put the decision on allowing 51 per cent FDI in multi-brand retail on hold following key allies Trinamool Congress and DMK expressing opposition to it and demanding its rollback.
The Lokpal bill is expected to come up for consideration in the Lok Sabha on December 20, two days ahead of the conclusion of the current session of Parliament.

Though some opposition parties have been demanding extending the Winter session, government managers are ruling out such a possibility at present.

The consultations in the UPA come close on the heels of several non-Congress parties including the BJP and the Left sharing dais with Hazare at Jantar Mantar where he underwent a day-long fast to protest against the report of the Parliamentary Committee on the Lokpal bill.

At Jantar Mantar yesterday, several political parties flayed the government and the Parliamentary Standing Committee for preparing a weak Lokpal draft. Some of them also appealed to Anna and his team to be flexible in their approach towards the bill.

Following is the chronology of events in the run up to the Central Bureau of Investigation on Monday filing its third charge sheet naming Essar Group and Loop Telecom and their promoters.
May 2007: A Raja takes over as Telecom Minister.
Aug 2007: Process of allotment of 2G Spectrum along with UAS Licences initiated by Department of Telecom (DoT).
Sept 25, 2007: Telecom Ministry issues press note fixing deadline for application as October 1, 2007.
Oct 1, 2007: DoT receives 575 applications by 46 firms.
Nov 2, 2007: PM writes to Raja to ensure fair licence allocation and proper revision of fee. Raja writes to PM allegedly rejecting many of his recommendations.
Nov 22, 2007: Finance Ministry writes to DoT raising concerns over the procedure adopted.
Jan 10, 2008: DoT decides to issue licences on first—come—first—serve basis (FCFS), preponing cut—off date to September 25. Later in the day, DoT says those who apply between 3.30 and 4.30 pm would be issued licences.
2008: Swan Telecom, Unitech and Tata Teleservices sell off a part of their stakes at much higher rates to Etisalat, Telenor and DoCoMo respectively.
May 4, 2009: NGO Telecom Watchdog complains to the Central Vigilance Commission (CVC) on the illegalities in the 2G spectrum allocation to Loop Telecom.
2009: CVC directs CBI to investigate the matter.
July 1, 2009: Single judge of Delhi HC holds change of cut—off date as illegal. S—tel had moved the petition.
Oct 21, 2009: CBI files FIR against "unknown officers of DoT and unknown private persons/ companies and others".
Oct 22, 2009: CBI raids DoT offices.
Nov 16, 2009: CBI seeks help from Directorate General of Income Tax for information on lobbyist Niira Radia and records pertaining to middlemen in award of 2G spectrum licences.
Nov 20, 2009: Information by IT dept shows role of corporate players in influencing policies of DoT via illegal means. Shows Radia directly in touch with Raja.
Mar 31, 2010: CAG report notes "whole process of issue of licence lacked fairness and transparency".
May 6, 2010: Telephonic conversation between Raja and Radia made public by the media.
May 2010: Government constitutes GoM for allocation of 3G spectrum, reducing DoT under Raja as mere implementing body.
Aug 18, 2010: HC refuses to direct PM to decide on a complaint by Janata Party chief Swamy seeking sanction to prosecute Raja for his alleged involvement in 2G scam
Sept 13, 2010: SC asks government, Raja to reply within 10 days to three petitions alleging a Rs 70,000 crore scam in the grant of telecom licences in 2008.
Sept 24, 2010: Swamy moves SC seeking direction to PM to sanction prosecution of Raja.
Sept 27, 2010: Enforcement Directorate informs SC of probe against firms suspected to have violated FEMA. Says can't deny or confirm now Raja's involvement in the scam.
Oct 2010: SC asks government to respond to CAG report about the scam. Pulls up CBI for its tardy progress in probe.
Nov 10, 2010: CAG submits report on 2G spectrum to government stating loss of Rs 1.76 lakh crore to exchequer.
Nov 11, 2010: DoT files affidavit in SC; says CAG did not have the authority to question the policy decision as per which licence were issued to new players in 2008.
Nov 14—15, 2010: Raja resigns as Telecom Minister. Kapil Sibal given additional charge of Telecom Ministry.
Feb 10, 2011: SC asks CBI to bring under its scanner corporate houses which were beneficiaries of the 2G spectrum. Raja remanded to CBI custody for four more days by a special CBI court along with Balwa.
Feb 17—18, 2011: Raja sent to Tihar Jail under judicial custody. Balwa too jailed.
Feb 24, 2011: CBI tells Delhi Court Balwa facilitated transaction to DMK—run Kalaignar TV.
March 14, 2011: The Delhi High Court sets up special court to deal exclusively with 2G cases.
March 29, 2011: SC permits CBI to file charge sheet on April 2 instead of March 31. Two more persons — Asif Balwa and Rajeev Agarwal arrested.
April 2, 2011: CBI files its first charge sheet. Names Raja, Chandolia and Behura. Reliance ADAG Group Managing Director Gautam Doshi, its senior Vice President Hari Nair, Group President Surendra Pipara, Swan Telecom Promoters Shahid Usman Balwa and Vinod Goenka and Managing Director of Unitech Ltd Sanjay Chandra made accused. Three companies —— Reliance Telecom Ltd, Swan Telecom Pvt Ltd and Unitech Wireless (Tamil Nadu) Pvt Ltd —— also charge sheeted.
April 25, 2011: CBI files second charge sheet naming DMK chief M. Karunanidhi's daughter and MP Kanimozhi, 4 others.
Oct 23, 2011: Charges framed against all 17 accused.
Nov 11, 2011: Trial begins.
Nov 23, 2011: SC grants bail to 5 corporate executives —— Nair, Doshi, Pipara, Chandra and Goenka.
Nov 28, 2011: Delhi HC grants bail to Kanimozhi, Kumar, Morani, Asif and Rajiv.
Nov 29, 2011: Special court grants bail to Shahid Balwa
Dec 1, 2011: Chandolia gets bail from special court.
Dec 12, 2011: CBI files third charge sheet. Names Essar Group promoters Anshuman and Ravi Ruia, its director (Strategy and Planning) Vikas Saraf, Loop Telecom promoters Kiran Khaitan and her husband I P Khaitan. Also charge sheets Loop Telecom Pvt Ltd, Loop Mobile India Ltd and Essar Tele Holding.


Confused and intimidated by the amount of news hurtling at you everyday? Well, to make your life easier, here's a quick round-up of the major local and international business and economic news events.
The biggest event of the day was the Indian industrial production numbers that came in at 11 am in the morning. And since then the rupee and the markets, both refused to recover. A 5.1 percent drop in industrial growth is not a slowdown, but a serious contraction. And Firspostsays though the government will try and put it on the global slowdown, they actually need to look at themselves for the answer.
And one look at IIP numbers you know India is in deep trouble. Not only has investment gone down, over past few months even consumption numbers like auto sales and mobile subscription numbers have started looking bad. And here again, the experts tell Firstpost one had to blame inflation, interest rates, eurozone crisis. But the biggest issue was the much required government investment into production that could pump up the numbers.
No doubt about it:  this will be a nerve-racking week for investors. That's because the Reserve Bank of India (RBI) has a policy meeting scheduled for 16 December, when it is broadly expected to announce no further hikes in interest rates after relentlessly raising it 13 times over the past 18 months. So what are the expectations?

The CBI today filed the third and final chargesheet in the 2G spectrum. AFP

The telecom  counters have fallen between 15 and 20 percent over the last one week. The main reason for the fall is the acceptance of Telecom Regulatory Authority of India's  (TRAI's) recommendations by Telecom Commission. We tell you how Idea could even turn loss making as a result.
The CBI today filed the third and final chargesheet in the 2G spectrum allocation case against the promoters of Loop telecom. The CBI contends that Loop telecom was controlled by Essar group through the latter's stake in Vodafone. Here is the story.
Here is a scandal that is bigger than even Satyam. The government was already coming under criticism from some quarters for planning some questionable 'money transfers' via state-owned entities; now it seems it can't even be trusted on providing reliable economic data. While it's not exactly a fraud, the casual attitude displayed by the government when providing information to the public is certainly a scandal. Find out more.
Consumer confidence on the Indian economy has seen a significant decline in the June- September quarter, shows a consumer confidence survey carried out by Reserve Bank of India. The RBI says the positive perception about Indian economy has gone down from 61.2 percent in the last quarter to 56.9 percent in September 2011. Here is the story.
Reliance Industries Ltd (RIL), India's biggest private-sector company by market capitalisation, is the biggest wealth creator for the fifth time in a row. While RIL added almost Rs 1,74,200 crore of investor wealth during the past five years, tech firm TCS came in second as it created Rs 1,37,900 crore of wealth during the same period. State Bank of India came third. Here are details.
Stocks of Jet Airways and Kingfisher  traded nearly 2.5 percent higher in opening session today on account of  the government allowing 26 percent FDI in aviation companies. But these airlines  are unlikely to benefit from it in the near to medium term. Here is why.
At a time when most research firms are cautious on banking stocks, Goldman Sachs has initiated a report on Federal Bank with a 'Buy' call and a price target of Rs 470 in the next 12 months. The stock currently trades at Rs 383. Here is the rationale.
http://www.firstpost.com/investing/telecom-companies-see-red-even-as-cbi-files-chargesheet-against-loop-154448.html
12 DEC, 2011, 10.42AM IST, DEEPSHIKHA SIKARWAR,ET BUREAU

FDI in retail: Relief for Walmarts, cap on group sales may go

EDITORS PICK



NEW DELHI: The industry ministry is looking to allow foreign retailers a bigger play in their wholesale ventures after the government backtracked from opening the $450 billion supermarket sector.

The department of industrial policy and promotion (DIPP), a government department that frames policy on foreign direct investment (FDI), has proposed that only wholly owned subsidiaries be treated as group companies in the FDI policy.

This will allow the foreign retailers to sell more to organised multi-brand retailers with whom they have a tie-up.

At present, foreign retailers cannot have more than 25% of their sales coming from group companies, the definition of which is not clear in the policy.

"There are multiple definitions for 'group company', so there is a need to clarify what constitutes it under the FDI policy," a government official said.

The DIPP has proposed to treat only those entities as group companies in which the company has more than 51% stake, the official said. However, the definition will be finalised only after inter-ministerial consultations.

With FDI in retail on the backburner, the industry ministry is keen to incentivise wholesale cash-and-carry to attract investments in backend infrastructure and cold chains.

The government allows 100% FDI in wholesale cash-and-carry. After years of consultations it agreed to allow 51% FDI in multi-brand retail but backed down after facing stiff opposition from political parties, including allies, and traders.

A liberal definition of group company would have implications for wholesale cash-and-carry ventures such as Bharti Wal-Mart, Tata-Tesco and Future group-Carrefour.

"We have not seen any official notification to this effect and, therefore, are not in a position to comment, " said a spokeswoman for Bharti Walmart, the equal joint venture of India's Bharti Enterprises and the world's biggest retailer Walmart.

Experts say the current framework imposes significant restrictions on conducting wholesale trading business. "This move will provide the much-needed clarity and promote FDI in the sector," said Punit Shah, partner, tax and regulatory services, KPMG.

In many countries it is common for foreign companies to have singlebrand retail joint ventures and wholly owned wholesale companies.

A company that operates in the wholesale sector imports in bulk and sells to various franchisees, retailers and the single-brand JVs.

The 25% limit on group company sales and a further rider of internal use makes this business impractical.

The earlier thinking in the DIPP was to base the group company given in the foreign trade policy or the Competition Act. The definition in these policies says a company with more than 26% investment by another company will be considered a group company of the latter.

http://economictimes.indiatimes.com/news/economy/policy/fdi-in-retail-relief-for-walmarts-cap-on-group-sales-may-go/articleshow/11075973.cms

Spectrum Scam
The Public Accounts Committee(PAC), which has been pressing ahead with its schedule of summoning corporates, lobbyists, journalists, and senior bureaucrats, has decided to finalise its report by this month-end.
12 December 2011 Last updated at 22:43 GMT

Latest Articles on Spectrum Scam

Essar denies role in 2G scam, says it complied with norms
Essar Group today denied any involvement in the 2G spectrum allocation scam and said it has complied with in totality.
2G case: CBI files charge sheet against Ravi Ruia, Anshuman Ruia of Essar Group
Essar group director (strategy & planning) Vikas Saraf, Loop Telecom promoters Kiran Khaitan & IP Khaitan were also named as accused.
2G scam: Subramanian Swamy demands Chidambaram's resignation
Swamy today demanded the resignation of Chidambaram claiming he had decided the price of 2G spectrum with A Raja.

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http://economictimes.indiatimes.com/fullcoverage/spectrum-scam
12/12/2011

Mamata pays homage at AMRI victims' memorial column

Kolkata: In a subtle message to the police and administration, West Bengal Chief Minister Mamata Banerjee Monday called for ensuring there was no recurrence of the horrific AMRI Hospital fire tragedy that has so far claimed 93 lives - mostly patients trapped in beds.
"We all know how tragic and horrific the incident was. Such an incident should never ever recur. We need to ensure that such a tragedy is never repeated," said Banerjee paying homage at a column erected in memory of the victims at the Lions Safari Park, a short distance from the ill-fated hospital.
The names of the victims are inscribed in the column put up by Kolkata Police.
Along with Banerjee, several of her ministers, her party's lawmakers and top police officers paid floral tributes and lighted candles at the solemn half-hour function as the police band played solemn tunes, bugles sounded the last post and policemen reversed guns.
Banerjee wished peace for the departed souls and called for non-recurrence of such an incident while penning her thoughts at the memorial diary kept under the column.
"People died a horrible death struggling to breathe. It's so tragic and painful to realise. We must ensure that such a mishap never happens again," said Banerjee.
She also said a family member of the victims desirous of a job should approach the government.
"Along with the compensation from the central and the state government, whoever is desirous of getting a job should approach the authorities concerned. Necessary direction in this regard has already been issued," said Banerjee.
She also had words of praise for the people who worked tirelessly during and after the fire tragedy.
"By expressing my thanks, I do not want to belittle the efforts of those who worked tirelessly and silently rescuing the people, dousing the fire or doing the post-mortem procedures. They have done their jobs excellently. It is their duty to stand beside people in times of need," she said.
Source: IANS
12/12/2011

2003 Mumbai blasts: Ruling on three death penalties put off

Mumbai: The Bombay High Court Monday deferred its verdict on the confirmation of death sentences for three convicts in the 2003 Mumbai twin blasts that killed 52 people, a lawyer said.
"The final judgment will now be delivered either before the Christmas vacation or in the first week of January 2012," S. Kunjuraman, lawyer for one of the accused convicted by the lower court, told IANS.
The division bench of Justice A.M. Khanwilkar and Justice P.D. Kode was hearing the matter related to the confirmation of death sentences awarded to Mohammed Hanif Syed, 46, and his wife Fahmida, 43, and their associate Ashrath Shafique Ansari, 35, for their role in the 2003 twin blasts which killed 52 and injured 244, the lawyer said.
The three convicts were awarded death sentences in January 2009 by a special court here for the Prevention of Terrorism Act (POTA) cases.
A total of 52 people were killed Aug 25, 2003, when a powerful bomb went off near Gateway of India, a prime tourist landmark, and another at Zaveri Bazar, the hub of the gold and jewellery trade, barely four km apart. The injured were mainly tourists.
Source: IANS

DoT to soon take action against operators for 3G roaming pacts

PTI
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The Telecom Ministry on Monday said it would soon take action against service providers that have entered into roaming agreements for 3G services, as the pacts violate licence terms and conditions.
Stating that the Ministry had received the views of the Law Ministry, among others, on the matter, Telecom Secretary R. Chandrashekhar said, "The broad view that is emerging is that it is impermissible." The Ministry will soon take action, he said, but declined to give further details.
He was speaking to reporters on the sidelines of an Assocham event in New Delhi.
The issue pertains to the pact between major service providers, including Bharti Airtel, Vodafone Essar and Idea Cellular, for providing a 3G roaming network on a pan-India basis. Other service providers, like Tata Teleservices and Aircel, had also entered into similar agreements to offer services in six circles.
The Department of Telecom (DoT) had sought a legal opinion on this matter and the Law Ministry had also supported the DoT's view.
In an internal note, the DoT had said the roaming agreement among telecom companies for 3G services would lead to a significant loss of revenue for the government. There may also be an impact on revenues from spectrum usage charges collected from operators, the note added.
The chiefs of three leading telecom firms — Bharti, Idea and Vodafone — had then sought Prime Minister Manmohan Singh's intervention in the dispute over the 3G roaming pact, failing which they said they would surrender spectrum.
Dr. Singh, on his part, had assured the industry that the government will look into their concerns and formulate forward-looking policies to sustain growth in the sector.
Keywords: 3G roaming, telecom operators, telecom service providers

BUSINESS » INDUSTRY

NEW DELHI, December 11, 2011

Coal outlook dim, indecision makes it dimmer

SUJAY MEHDUDIA
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Situation critical for power projects, which are facing acute fuel shortage
Embroiled in one controversy after another, the Manmohan Singh government's time and attention have been consumed by efforts to put out the fire on "troubled political fronts," and it has ignored the power and coal crisis, which stares the country in the face and threatens to get out of hand.
Import costly
For instance, production of about 15,000 MW of thermal power, dependent on imported coal, has run into problems following the Indonesian government's decision making it mandatory for exports to be benchmarked to international prices since September. The most impacted by this decision are Tata Power, Reliance Power, Adani Power, JSW Energy and Lanco Infratech. These companies, once bullish on Indonesian coal, bid in the tariff-based competitive process for power projects, based on the agreements they had made for long-term fuel stock from Indonesia. The developers worked out their financial and other factors of the projects based on an average coal price of $40-$50 a tonne. But that has changed dramatically, thanks to the decision of Indonesia, South Africa and Australia to benchmark the price with international movement.
Developers going slow
The Manmohan Singh government has been sitting tight on the issue for the past few months. As a result, the developers have decided to go slow on these projects. Adding to this, Coal India Limited announced that it would not be able to achieve the production target and scaled it down from 452 million tonnes to 440 million tonnes, indicating that public and private coal-fired plants could face serious raw material problems in future.
The issue was to be debated and decided by a panel headed by the Prime Minister, after submission of reports by Planning Commission Deputy Chairman Montek Singh Ahluwalia and Member (Energy) B. K. Chaturvedi.
"The meeting by the Prime Minister has been postponed four or five times now. There is a complete lack of seriousness on the part of the government to confront such a serious issue which could lead to serious power and coal shortages in the coming months. The indecision on imported coal or, for that matter, on captive mines clearances is going to hit the economic growth and power production hard," a senior official said.
According to Ashok Khurana, director-general, Association of Power Producers, the issue concerns about 20,000 MW of stranded capacity. "A decision needs to be taken. The bankers and investors are spurning the developers due to indecision on how to deal with these issues." What has heightened the misery is the CIL lowering its production target for the ongoing financial year. It has already fallen short of its April-September target by about 20 million tonnes, recording an output of 176 million tonnes against the target of 196 million tonnes. The government undertaking has blamed it on inclement weather, including heavy rains in August-September that affected production in almost all its collieries.
India has 75 thermal projects that depend on CIL for fuel supplies. CIL has an 82 per cent share of the country's coal production, but has been unable to keep pace with the rising demand. On the other hand, the situation is critical for the power projects which have been facing a serious shortage of coal for the past few months with no solution in sight. Nearly a dozen projects, with a combined capacity of 16,175 MW have only a day's stock with them, going by recent Central Electricity Authority data.
According to official norms, power projects situated near coalmines are supposed to have two weeks' reserve stock and those located afar, at least a month's supply. Of these dozen-odd projects, six having a capacity of 11,410 MW belong to NTPC. "The situation for the NTPC projects is quite worrisome. We are getting our daily requirements but there is no stock build-up. There is a coal crisis and any small disruption will ultimately lead to a power crisis,'' a senior NTPC official stated.
At present, 30-odd thermal plants have coal stocks of less than four days. As per approach paper to the 12th Plan, the aggregate coal demand at the end of the 12 Plan period is likely to be between 900 and 1,000 million tonnes. The domestic output is unlikely to exceed 750 million tonnes, leaving a shortfall of more than 200 million tonnes to be met from imports. Coal imports are expected to rise from about 90 million tonnes at present to over 200 million tonnes from 2016-17.
Keywords: Coal demand, power crisis, Manmohan Singh government
http://www.thehindu.com/business/Industry/article2706941.ece

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Kingfisher, AI accounts frozen over Rs 220cr service tax dues

TNN | Dec 9, 2011, 01.11AM IST
NEW DELHI: NEW DELHI: Mumbai's service tax department froze several accounts of cash-strapped Air India and Kingfisher on Thursday, as both airlines owed it crores of rupees which was collected from passengers but not paid to the exchequer. This is the second time in less than a month that Kingfisher has had its accounts blocked for non-payment of service tax dues.

AI owes the department Rs 150 crore, while Kingfisher has to pay up Rs 70 crore.

"We have frozen 11 accounts of AI and 10 of Kingfisher for defaulting on service tax payments over the past five days," agency reports quoted S K Solanki, commissioner of service tax (zone 1, Mumbai commissionerate ) of the Central Board of Excise and Customs, as saying. Solanki said the two airlines have defaulted on payment though they had collected service tax from their customers.

The action was taken after the airlines failed to clear the dues in "sufficient time" given to them. While Kingfisher had to pay for April-September period , AI has to cough up dues for April-August . Solanki pointed out that Kingfisher's accounts were frozen for two days in November too and the order was reversed only after the airline promised to deposit the dues in three instalments.

S K Solanki, commissioner of service tax (zone 1, Mumbai commissionerate) of the Central Board of Excise and Customs pointed out that Kingfisher's accounts were frozen for two days in November too and the order was reversed after the airline promised to deposit the dues in three instalments.

"AI's financial condition is well known. AI has to pay dues to a number of agencies and even our employees," said a senior AI official. "We are making a part payment to service tax and hope that the accounts will be unblocked soon." Kingfisher's spokesperson declined comment on the latest setback. Apart from service tax, Kingfisher is also accused of deducting tax at source from payments made to vendors and employees but not depositing it with the government. Airports Authority of India and Kingfisher pilots have brought up the issue with the airline after queries from the income tax department.

Both AI and Kingfisher owe hundreds of crores to airport operators as well, but being a PSU, the aviation ministry - which controls airports - has not allowed airport operators to put AI on cash-and-carry. Kingfisher, however, now pays on a daily basis in Mumbai and Delhi to operate the severely truncated schedule of flights this winter. A senior aviation ministry official said: "The DGCA is doing a financial audit of airlines to check if the cash crunch is affecting safety, with airlines not being able to spend the required amount on maintenance or spares of aircraft needed for safe operations. "
http://timesofindia.indiatimes.com/business/india-business/Kingfisher-AI-accounts-frozen-over-Rs-220cr-service-tax-dues/articleshow/11038327.cms
Five more people named in CBI's latest charge sheet
Essar Vice-Chairman Ravi Ruia and Khaitans 'used' Loop Telecom as a front to acquire spectrum
Arpit Parashar
New Delhi
The Central Bureau of Investigation (CBI) has named five more people and three more companies as accused in the 2G scam case.
In its third overall and second supplementary charge-sheet filed on Monday, the CBI has charged Anshuman Ruia, Ravi Ruia, IP Khaitan, Kiran Khaitan and Vikas Saraf, and Essar group, Loop Telecom and Loop Teleholdings for conspiracy and cheating under Sections 120B and 420 of the Indian Penal Code. However, at the trial court hearing, special CBI Judge OP Saini did not take cognisance of the 105-page charge-sheet. He said that the matter needed further consideration posting the hearing to 17 December. The CBI has named 100 people as prosecution witnesses and submitted 398 documents supporting its case against the accused in the charge-sheet.
Ravi Ruia is Vice-Chairman of Essar and Anshuman Ruia a director while Vikas Saraf is the company's President for strategy and planning. IP Khaitan is the promoter of Loop Telecom and Santa Trading Pvt Limited. Kiran Khaitan is the sister of Essar group founders and promoters Shashi and Ravi Ruia and wife of IP Khaitan.
The CBI has charged the Ruias and Khaitans for using Loop Telecom as a front to apply for licences and spectrum even as they held and controlled 33 per cent stake in Vodafone Essar Limited. According to the CBI, they [Ruias and Khaitans] violated Clause 8 of the Unified Access Services Licence (UASL) guidelines, which state that a company with a telecom licence cannot hold more than 10 per cent equity in another company with licence in the same area of operation, and indulged in anti-competitive practices.
Loop was allocated spectrum in January 2008 for 21 circles for about Rs 1,450 crore by former Telecom Minister A Raja, who is the main accused in the case and is lodged in Tihar Jail under judicial custody.
No minister or bureaucrat has been named in the charge-sheet and no charges framed under the Prevention of Corruption Act reportedly due to difference of opinion between the CBI and prosecution lawyers. While the Director of Prosecution was not in favour of charge-sheeting Essar and Loop, CBI Director AP Singh and investigating officers wanted to prosecute both the companies and their promoters.
The Ministry of Corporate Affairs, under M Veerappa Moily, had also rejected the charges of the CBI and reportedly said that the stake of the Essar group in Loop Telecom was within the 10 per cent cap. Subsequently, the CBI had referred the matter to Attorney General GE Vahanvati, who recommended charge-sheeting the two companies and its promoters, which was then overruled by Union Law Minister and then-Minister of Corporate Affairs Salman Khurshid.
The Essar Group, meanwhile, has been claiming that they hold only 2.15 per cent in Loop thereby not violating of Clause 8 of the UASL guidelines. In a press statement distributed among reporters at the court, the company denied the charges saying it contest them in the court. "The Central Bureau of Investigation and the Attorney General have gone contrary to the opinion given by Ministry of Law and Justice and Ministry of Corporate Affairs. The CBI has also gone against their internal legal advice," the statement said. It added that the charge-sheet would not impact the business of the group.
The company had reportedly sold its entire 33 per cent stake in Vodafone and exited the telecom industry in July. Significantly, the company also pointed out that the Department of Telecom had neither complained of a Clause 8 violation nor cheating as alleged by the CBI.
Arpit Parashar is a Senior Correspondent with Tehelka.com.
arpit.parashar@tehelka.com
http://www.tehelka.com/story_main51.asp?filename=Ws1212112G_SCAM.asp
The much debated Lokpal Bill is expected to come up for consideration in the Lok Sabha on December 20 amid indications that the Prime Minister could be brought under its purview with some safeguards.

Parliamentary Affairs Minister Pawan Kumar Bansalsaid that the legislation could now come up for approval in the Lower House on December 20, giving ample time for the Upper House to consider the measure.

The current session adjourns sine die on December 22. Bansal indicated that the Prime Minister could be brought under the ambit of the ombudsman with some safeguards. At the same time, he said his personal opinion was that PM should be kept out of the Lokpal's purview.

Consultations over the legislation would gain momentum from tomorrow with Prime Minister Manmohan Singhholding talks with allies at a meeting of UPA leaders.

The meeting is expected to project a united face of the ruling alliance on the issue of Lokpal at a time when it was under attack from opposition parties and Anna Hazare for coming out with a "weak" bill.

The consultations will be held a day ahead of an all-party meeting convened by the Prime Minister on the ticklish issue.

Though some opposition parties have been demanding extending the Winter session, government managers are ruling out such a possibility at present.

At Jantar Mantar yesterday, several political parties flayed the government and the Parliamentary Standing Committee for preparing a "weak" Lokpal draft. Some of them also appealed to Anna and his team to be flexible in their approach towards the bill.

Anna vs govt: We won't accept anybody's demand, will do what is good for country, says Salman Khurshid

PTI | Dec 12, 2011, 09.57PM ISTArticle

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Read More:Salman Khurshid|Law Minister|India Against Corruption|Anna Hazare

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Will continue agitation till Lokpal is passed: AnnaSee photo

NEW DELHI: As the government braced to deal with the agitation threatened by Anna Hazare, law minister Salman Khurshid tonight said the government will do whatever is good for the country.


"We are not accepting anybody's demand. We are doing what is good for the country," he told PTI when asked whether the government accepts Hazare's demands.


Queried whether the government was confident of averting the next agitation by Hazare, he said, "Agitation, I cannot speak of. But we will do our job. We will do something good for the country. I am confident we will do what we need to do."


Earlier in the day, he said Parliamentary democracy is based on discussion and there should be discussion on every issue.


Asked whether opposition did the right thing in discussing Lokpal issue outside Parliament, Khurshid said, "This should also be discussed in Parliament."


Opposition parties had shared dais with Hazare on Sunday at his fast venue and participated in a debate on Lokpal.


12 DEC, 2011, 08.59AM IST, TNN

Anna Hazare's campaign: Political parties use stage, grind own axe


NEW DELHI: The show of strength by major political parties, including BJP and Left, was driven by the recognition that activist Anna Hazare had struck a chord with the people on the issue of corruption. But party leaders used the opportunity not just to express solidarity with Hazare's campaign, but also to push their pet political agendas.


So, TDP's K Yerran Naidu used the forum to talk about political influence on CBI while protesting against the agency investigating Chandrababu Naidu. CPM's Brinda Karat struck a familiar note, attacking big corporates and their "loot'' of public money. Shiromani Akali Dal reminded the country about lack of justice for victims of 1984 Sikh riots.


Karat, a CPM politburo member, charged big corporate houses with looting the country and demanded they should be brought under the Lokpal. "They (private companies) will have to be brought under Lokpal. They are looting the country whether it is black money, 2G spectrum, mining leases or land acquisition," she said.


She also argued for inclusion of MPs in its ambit. This was supported by BJP with the rider that if a corrupt practice took place outside the confines of Parliament, the representative should be charged.


TDP's Naidu taunted Rahul Gandhi saying he was speaking about corruption only when faced with an election in Uttar Pradesh. He accused Congress of using CBI for political gains. "This is why the government does not want CBI within the Lokpal,'' he said, adding that TDP chief Chandrababu Naidu was implicated in false cases by the agency.


Akali Dal's S S Dhindsa stressed on the need for an independent authority, saying there was still no justice for victims of the 1984 anti-Sikh riots.

More stories from this edition of Lokpal Bill


http://economictimes.indiatimes.com/news/politics/nation/anna-hazares-campaign-political-parties-use-stage-grind-own-axe/articleshow/11078189.cms

Essar Group on Monday denied any involvement in the 2G spectrum allocation scam and said it has complied with in totality with all conditions of telecom licences.
"We would like to reiterate that Essar has complied with all conditions of clause 8 under UASL guidelines (dealing with cross—holding) in totality and all the facts which have been given at the time of submitting the application for telecom licence i.e, shareholding/ownership have been independently verified by the government agencies," Essar Group said.
Essar Group is a responsible corporate citizen and has always complied with all government guidelines and the law of the land, the group said in a statement.
The CBI on Monday filed the third charge-sheet in the 2G spectrum allocation scam case alleging involvement of Essar Group and Loop Telecom.
"The only charge filed by CBI is regarding the interpretation of a contractual issue. This relates to the question of violation of clause 8 under the UASL guidelines," Essar said.
The group said despite the Ministry of Corporate Affairs and the Ministry of Law and Justice having confirmed that there was no clause 8 violation, the CBI has proceeded with the charge sheet.
"CBI and the Attorney General have gone contrary to the opinion given by the Ministry of Law and Justice and the Ministry of Corporate Affairs. The CBI has also gone against their internal legal advice," it said.
Essar will take legal recourse in this regard, the statement said.
Essar Group promoters Anshuman and Ravi Ruia were among five persons charge sheeted on Monday by the CBI in a Delhi Court in connection with the 2G Spectrum allocation scam.
Besides Ruias, CBI also charged Essar Group director (Strategy and Planning) Vikas Saraf, Loop Telecom promoters Kiran Khaitan and her husband I P Khaitan.
The agency also named three companies — Loop Telecom Pvt Ltd, Loop Mobile India Ltd and Essar Tele Holding as accused in the case.
All of them have been charge-sheeted under section 120 B (criminal conspiracy) and 420 (cheating) of the IPC.
Denying all allegations against its officials and the company, the company statement said, "Essar has always maintained that it held only 2.15 per cent in Loop during the time of the application and therefore there is no violation of clause 8."
It also added that the charge sheet would not impact the business operations of the group.
Importantly, the Department of Telecom has neither complained of a clause 8 violation nor cheating as alleged by the CBI, it said.'

The Indian rupee on Monday hit an all-time low of 52.84/85 against the dollar as demand for the U.S. currency soared amid signs of FIIs pulling out money in the wake negative growth in industrial production in October.

Forex dealers said a slew of measures like plunging stock markets, dollar gaining strength against its rivals in the overseas market weighed against the local currency which lost a whopping 81 paise against the Greenback on Monday.
"As FIIs pulled out from markets due to weak IIP numbers, the rupee has seen such a big fall today. Also, a weakening euro has added to the pressure," Head of Treasury Operation of IDBI Bank N.S. Venkatesh said.
Analysts said existing economic woes were compounded by decline in industrial output which dent the confidence of investors.
At the Interbank Foreign Exchange (Forex) market, the rupee opened lower at 52.09/10 a dollar and dropped further to finish at an all-time record low at 52.84/85, down 81 paise, or 1.56 per cent from its previous close.

Mr. Venkatesh said buying pressure from importers for their unhedged exposure also supported Monday's trend.

Meanwhile, the industrial output, as measured by Index of Industrial Production (IIP) registered a negative growth of 5.1 per cent in October, the lowest in over two years, mainly due to rising interest rate, high prices and global uncertainties.
Reacting to the disappointing IIP numbers, the BSE benchmark index Sensex closed down by 343 points, or 2.12 per cent, to dip below the crucial 16,000 level.

Not just India Inc, consumers also losing confidence

FP Staff Dec 12, 2011
Consumer confidence on the Indian economy has seen a significant decline in the June- September quarter, shows a consumer confidence survey carried out by Reserve Bank of India. The RBI says the positive perception about Indian economy has gone down from 61.2 percent in the last quarter to 56.9 percent in September 2011. The good news is higher percentage of people feel employment conditions could improve next year.
Positive opinion about future has also come down from 62.8 percent to 59.5 percent. The confidence about economic conditions has improved in households  when compared to last year but deteriorated when compared to the June quarter.

The RBI says the positive perception about Indian economy has gone down. Reuters

Almost half of the households said they were better off due to better salaries and improved business income. But pessimism was also rampant as price levels have gone up over this time period.
Regarding future income, optimism is still high but the level of optimism has gone down consistently over the past four quarters. But 85 percent people still feel prices could continue to go up over the next year. Consumer confidence was also dampened by high interest rates as almost three fourth of consumers felt the rates were too high from borrowers' point of view.
Another interesting point is the RBI notes that more people have gone into a "Neutral" zone while responding to the questions as they were not sure about how things will pan out over the next year.
The RBI conducts the survey of six metropolitan cities: Bangalore, Chennai,  Hyderabad, Kolkata, Mumbai and New Delhi. Each city is divided into three major areas and each major area is further divided into three sub-areas. From each sub-area, about 100 respondents are selected randomly. For each round of survey 5,400 respondents are selected (900 respondents from each city). The  respondents are well-spread across the cities to provide good geographical coverage.
http://www.firstpost.com/business/its-not-just-corporates-consumer-confidence-is-also-dipping-154374.html

2G: CBI files chargesheet on Essar-Loop transactions

ARUN S.
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Names Essar's Ravikant and Anshuman Ruia; Court to decide on future action on Dec 17
NEW DELHI, DEC 12:
The CBI on Monday filed before a Special Court the second supplementary chargesheet in the 2G spectrum case against five individuals including Essar Group's Mr Ravikant Ruia and Mr Anshuman Ruia.
The others named as accused in the 106-page chargesheet include Mr Vikash Saraf, Director (Strategy and Planning), Essar Group as well as Loop Telecom promoters Ms Kiran Khaitan (reportedly related to the Ruias) and her husband Mr Ishwari Prasad Khaitan.
Besides, three companies, including Loop Telecom Pvt Ltd (earlier shippingstop.com), Loop Mobile India Ltd and Essar Teleholdings Ltd are also named. The agency has levelled charges of cheating and criminal conspiracy against all.
The chargesheet -- with 398 files, over 22,000 documents and 100 prosecution witnesses -- was brought to the Special Court this afternoon in five trunks.
The Special Court will decide on December 17 its further course of action, that is, whether to take cognisance of the chargesheet or to assign it to some other court.
The allegation against Essar is that though it had substantial stake in Vodafone Essar, it set up Loop Telecom as a front company in violation of the existing norms to illegally obtain additional spectrum. Essar has denied all charges.
Under Unified Access Services Licences (UASL) guidelines, a company cannot hold over 10 per cent stake in two entities offering telecom services in the same circle. Essar had nearly 33 per cent stake in Vodafone Essar and hence could not own more than 10 per cent in Loop. Essar has been maintaining that it had complied with Clause 8 of UASL guidelines as it had only 2.15 per cent holding in Loop Telecom during the time of the application (for 2G licence) and therefore it did not violate the norms.
The counsel for Essar Mr Mahesh Agarwal said since it appears that the charges are only that of cheating and conspiracy, there is no allegation of corruption. The case is not a part of the 2G scam as the allegation is only of contractual violation, he said. He added that even the allegation of cheating is contrary to the 'opinion' of the Ministries of Law and Justice as well as Corporate Affairs. Importantly, the Department of Telecom has neither complained of a Clause 8 violation nor cheating as alleged by the CBI, an Essar statement said.
The Corporate Affairs Ministry had reportedly opined that Essar Group's stake in Loop Telecom was below 10 per cent. The CBI had referred the case to the Attorney General who in turn was reportedly in favour of filing the charge sheet. But this was later reportedly overruled by the then Corporate Affairs Minister Mr Salman Khurshid.
Since the charges were only of cheating and criminal conspiracy, any Magistrate court can take cognisance of the matter, legal sources said. But the CBI chose to file the chargesheet before the Special Court since the latter has been exclusively set up under the directions of the Supreme Court to hear the 2G spectrum cases. The Special Court will now decide on taking cognisance of the chargesheet.
Keywords: 2G case, chargesheet, Essar Telecom, Loop Mobile, Shippingstock.com

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http://www.thehindubusinessline.com/industry-and-economy/info-tech/article2708983.ece?homepage=true

Industrial output shrinks by 5.1 p.c. in October

PTI
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The HinduAn established tool room which is a common facility centre for about 100 plastic products manufacturing companies in central Kerala. File photo
India's industrial output shrunk by 5.1 per cent in October after witnessing a sustained slowdown over the past few months, led by a steep fall in production of almost sectors, particularly manufacturing, mining and capital goods.
Factory output, as measured by the Index of Industrial Production (IIP), had grown by 11.3 per cent in October last year.
As per data released by the government today, industrial output grew by 3.5 per cent in the April-October period this fiscal, as against 8.7 per cent in the same period last year.
Output of the manufacturing sector, which constitutes over 75 per cent of the index, declined by 6 per cent in October, compared to a growth of 12.3 per cent in the same month of 2010.
In addition, mining output declined by 7.2 per cent in October this year, as against a growth of 6.1 per cent in October last year.
Production of capital goods fell sharply by 25.5 per cent in the month under review. The segment had grown by 21.1 per cent in the corresponding month of 2010.
Output of consumer goods also fell by 0.8 per cent during the month under review, as against a growth of 9.3 per cent in the corresponding month of 2010.
Furthermore, consumer durables production declined by 0.3 per cent, compared to a growth of 14.2 per cent in October last year.
During the month under review, output of consumer non-durables fell by 1.3 per cent. The segment had expanded by 5 per cent in October last year.
In a similar fashion, basic goods production witnessed a 0.1 per cent decline in October this year, as against a growth of 9.8 per cent in the same month of 2010.
Production of intermediate goods also fell by 4.7 per cent during the month, compared to a growth of 9.7 per cent in the year-ago period.
However, electricity production grew by 5.6 per cent during the month under review, as compared to 8.8 per cent growth in October, 2010.
Meanwhile, the IIP growth figure for September this year has been revised upward to 2 per cent from the provisional estimate of 1.9 per cent.
The decline in industrial production numbers, as per the latest data, suggests continued sluggishness in the economy, experts said.
Last week, the government revised its growth projection for the Indian economy in 2011-12 downward to 7.5 per cent from the earlier forecast of around 9 per cent in the pre-Budget Survey.
India's economy grew by 6.9 per cent in July-September, 2011, the slowest rate of expansion in nine quarters.
India Inc had attributed the slowdown to rising interest rates, which have led to an increase in the cost of borrowing, thus hindering fresh investment.
The Reserve Bank has hiked interest rates 13 times since March, 2010, to tame inflation. Headline inflation has been above the 9 per cent-mark since December last year

Senior Ambani biggest wealth creator, junior Ambani worst

Sanjit Oberai Dec 12, 2011

Senior Ambani biggest wealth creator, junior Ambani worst

Sanjit Oberai Dec 12, 2011
#Adani Enterprises Limited #RCom #Reliance Industries #Reliance Industries Limited #wealth creator
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While RIL added almost Rs 1,74,200 crore of investor wealth during the past five years, tech firm TCS came in second as it created Rs 1,37,900 crore.
No prizes for guessing. According to Motilal Oswal's "Wealth Creation Study 2006-11″ report, Reliance Industries Ltd (RIL), India's biggest private-sector company by market capitalisation, is the biggest wealth creator for the fifth time in a row.
While RIL added almost Rs 1,74,200 crore of investor wealth during the past five years, tech firm TCS came in second as it created Rs 1,37,900 crore of wealth during the same period. State Bank of India came third.

Reuters

In addition, the report had a list of the biggest wealth destroyers. Of the Rs 3,25,400 crore destroyed, Anil-Ambani run Reliance Communication accounted for 8 percent of that share. While Suzlon topped the list of total wealth destroyed, RCom came in at second spot with a destruction of Rs 25,200 crore.
Between financial years 2006 and 2011 (April-March), total wealth destroyed stood at almost 15 percent of total wealth created vis-a-vis 2 percent, according to their last study which covered financial years 2005-2010 (April-March).
That was also reflected in the increase in the number of wealth-destroying companies — up to 1,036 from 650 earlier. While Suzlon, RCom and Satyam Computer accounted for a combined 25 percent of total wealth destroyed, among sectors, capital Goods, telecom, technology, construction/real estate accounted for almost 56 percent of shareholder wealth destroyed.
The study also named companies that have been the fastest and most consistent wealth creators.
Sanwaria Agro topped the list of fastest wealth creators as its stock price climbed at a compounded annual growth rate (CAGR) of 119 percent over the past five years. Adani Enterprises and Bhushan Steel emerged second and third, posting growth of 86 percent and 64 percent, respectively. (see table)
However, the most consistent wealth creator was Kotak Mahindra Bank, followed by Sun Pharma and Asian Paints.
Among sectors, financials emerged as the largest wealth-creating sector. According to the study, its share in the total investor wealth created increased to 24 percent at the end of March 2011 compared with 12 percent at the end of March 2006.
The report also said the importance of the financial sector would increase once insurance companies hit the bourses and new banking licences are issued.
http://www.firstpost.com/business/senior-ambani-biggest-wealth-creator-junior-ambani-worst-154259.html

A federal Indian probe agency Monday unveiled fresh charges in the multi-billion-dollar telecommunications scam, adding the steel-to-shipping Essar group and its founders to a growing list of companies and individuals named in the high-profile case.

The Central Bureau of Investigation had previously filed two sets of charges as part of its investigation into the 2008 allocation of mobile-phone spectrum and licenses. The agency is probing allegations that the process favored some companies and caused the government a potential revenue loss of almost $7 billion, making it India's biggest-ever corruption scandal by far.

The CBI's third set of charges, pertaining to cheating and criminal conspiracy, names Essar group Vice Chairman Ravikant Ruia and his nephew Anshuman Ruia, who is a director at the group, which was founded by the Ruia family.

The CBI also filed similar charges against Kiran Khaitan--sister of Ravikant Ruia--and her husband, Ishwari Prasad Khaitan. Vikas Saraf, director of strategy and planning and mergers and acquisitions at the Essar group, also features in the CBI's charges.

Enlarge Image

Indranil Mukherjee/Agence France-Presse/Getty Images

A file photo of a security guard standing at the entrance to the headquarters of the Essar group in Mumbai.

The CBI said Essar group used Loop Telecom Pvt. Ltd. as a "front company" to get spectrum and licenses in 21 of India's 22 telecom service areas in 2008, at a time when the group already had a 33% stake in the U.K.-based Vodafone Group PLC's Indian mobile telecom unit, Vodafone-Essar Ltd.

This violated Clause-8 of the Unified Access Service License guidelines, which refers to cross-holding rules preventing any operator from owning more than a 10% stake in another mobile telecom company with licenses in the same service area, the CBI said.

A trial court will go through the charges on Dec. 17.

The Essar group Monday denied all charges and said in a statement that it will take legal recourse. It said that there was no corruption involved as the charges are regarding the "interpretation" of Clause 8.

Essar said it held only 2.15% of Loop when the latter applied for telecom licenses and, therefore, there was no violation of the cross-holding rules.

The charges won't impact the group's business operations, it added.

Shares of Essar group companies slumped on the Bombay Stock Exchange Monday. Essar Oil Ltd. slid 11% to 59.75 rupees, Essar Ports Ltd. ended 7.7% lower at 61.65 rupees, while Essar Shipping Ltd. tumbled 9.7% to 21.80 rupees.

The CBI has already arrested 14 people including former Telecom Minister Andimuthu Raja in relation to the scam, though 11 of them have since got bail.

--Kenan Machado in Mumbai contributed to this article.

http://online.wsj.com/article/SB10001424052970203518404577093952613526624.html

Anna Hazare is controlled by some local or foreign forces: Ashok Gehlot

Launching a scathing attack on Anna Hazare, Rajasthan Chief Minister Ashok Gehlot Monday alleged the social activist's anti-graft movement was part of a "conspiracy by local or foreign forces".
"Anna is directly or indirectly controlled by some local or foreign forces and it appears the atmosphere being created today is a part of some conspiracy..this is dangerous," he said.
"Senior BJP leader LK Advani could not attract more than 5,000 people at his public meeting here a few days back but thousands gathered for Anna's dharna. How do they arrange it? It gives the impression that some forces are working behind it," Gehlot said.
The Chief Minister was speaking after unveiling a folder ahead of Congress' completion of three years at the helm in the state.
Gehlot dubbed as "disgraceful" Hazare's initial reaction after Union minister Sharad Pawar was slapped by a youth in Delhi last month.
"Look at Anna Hazare's attitude...it is arrogance. It is unfortunate that the man who calls himself a Gandhian and wants to be called as a sign of transformation reacted in a disgraceful manner by justifying the incident," he said.
He also slammed the BJP alleging corruption was rampant during NDA's rule at the Centre and when Vasundhara Raje was Rajasthan Chief Minister.
"Corruption was rampant during the BJP rule in the state and at the Centre. Not only the opposition Congress but BJP leaders also levelled corruption charges againsg Raje," he said.

Moneycontrol » News » Stocks » Expert Advice

Stocks likely to impact from CBI charge sheet

Published on Mon, Dec 12, 2011 at 18:49 |  Source : CNBC-TV18

Prakash Diwan, Asit C Mehta Investment shares his view on stocks that are likely to impact from CBI charge sheet.
Diwan told CNBC-TV18, "I don't think news surprises me because this is an identical case what we have seen in case of Swan and DB Realty or may be the Swan and R Comm exactly because if you see Loop the 2 Khaitans and 1 Vikas Saraf. In fact they are the promoter of the loop and here the section 420 cheating and 120 B criminal conspiracy, the same charges have been livid which we have seen in case of 3 Reliance executives or may be in case of Vinod Goenka having livid there. So this is an identical case of R Comm and Swan Telecom Nexus and similar way this is again an identical case because CBI has been taking the stand that Loop is the Benami owner and Essar's are controlling more than 10% stake in the Loop and that's the reason 2 Khaitan's and 1 Saraf, Kiran and IP Khaitan and Vikas Saraf are the promoters of the Loop tally. They are no way connected with the McNeil Russell group or in whatever way it is."
He further added, "Any of the telecom stocks of the groups are listed because neither Loop nor Essar Tele and again in Essar Tele they have already exited, the control has gone to the foreign buyer but yes because since the group they have their two listed stocks which is Essar port and Essar Oil so obviously the negative reflection will only get seen on those stocks but I am not too gung-ho or too positive on both the stocks because already the value destruction has happened in Essar Shipping post the demerger move and all that."
( Enjoy Moneycontrol.com on iPad and be prepared for a fantastic experience. Get real time stock quotes, interactive charts, market buzz, and watch CNBC-TV18, CNBC Awaaz live on your iPad. Check out the free moneycontrol app. Click here to download now )
http://www.moneycontrol.com/news/stocks-views/stocks-likely-to-impactcbi-charge-sheet_632507.html

Pawar sees nothing wrong in politicians joining Hazare's Lokpal debate

PTI
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The HinduNCP chief Sharad Pawar on Monday said that it was nothing wrong with politicians sharing the dais with Anna Hazare and discussing the Lokpal issue. File photo: R.V. Moorthy

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Team Anna selectively targeting Congress: DigvijayMassive, inspired turnout at Jantar MantarKejriwal told to leave specifics to ParliamentSharing Anna's dais, Opposition vows to fight for strong LokpalTeam Anna mounting pressure on Parliament, alleges CongressLeft leaders give bitter pill to Team AnnaPM not able to take decisions: Hazare'This Lokpal will not be effective'Lokpal report makes Bill passage doubtful in this session: JaitleySinghvi hits back at Team Anna

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NCP chief Sharad Pawar on Monday saw nothing wrong with politicians sharing the dais with Anna Hazare and discussing the Lokpal issue and said it is "good" that all parties emphasised the supremacy of Parliament which cannot be overlooked.

"A debate can take place at any place. It could be done at a seminar or in an open ground. It is good that all political parties at Jantar Mantar emphasised the importance of Parliament. We cannot overlook Parliament," Pawar said.

He was asked whether it was right for political parties to participate in the debate at Jantar Mantar on Sunday when Parliament is already seized of the matter.

He was speaking to reporters after a function at his residence here where he was greeted by his supporters on his 71st birthday.

His remarks came a day after several non-Congress parties including the BJP and the Left parties shared stage with Hazare at Jantar Mantar where he held a day-long fast to protest against the report of the Parliamentary Committee on the Lokpal bill.

Asked about his views on the Jan Lokpal Bill being advocated by Mr. Hazare, he merely said that everyone has the right to give his views and if someone gives a good suggestion, then it is welcome. "But Parliament is the place for final discussions and decision".

At the Jantar Mantar on Sunday, several political parties flayed the government and the Parliamentary Standing Committee for preparing a weak Lokpal draft. Some of them also appealed to Anna and his team to be flexible in their approach towards the bill.

Keywords: NCP leader Sharad Pawar, Lokpal Bill, Anna Hazare, social activist, Hazare fast, Lokpal debate, Parliament Session, Winter Session, anti-corruption movement


http://www.thehindu.com/news/national/article2708763.ece

BUSINESS » ECONOMY

December 11, 2011

The coming Dark Age of India

RAGHUVIR SRINIVASAN
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Tata Power's Trombay thermal power plant. Photo: Special Arrangement
Need for positive, clear-headed reform measures
Andhra Pradesh, Kerala, Tamil Nadu, West Bengal, Delhi, Haryana, Uttar Pradesh, Madhya Pradesh, Maharashtra… no, this is not a listing of States with high growth. These are States that imposed rolling power cuts as late as in October, well after autumn had set in.
In fact, Tamil Nadu still has power cuts for periods ranging from 1-3 hours across the state. So, what's new, you might ask. Aren't power outages a fact of life in India?
Well, the difference this time is that it is happening not during the height of summer but during winter, a period of relatively low demand. Second, the duration of the power cuts is longer than what was faced during the summer.
The frightening fact though is that this could just be a taste of things to come unless the government takes corrective policy measures to clean up the mess in the power sector. What ails the industry?
There are two mainly. First, a conundrum over fuel, which, even a couple of years ago was non-existent. And second, a mess created by the inability of state electricity boards and distribution utilities to charge consumers the right price for the electricity they consume leading to losses.
Fuel trouble
As a country we may be tapping every available source of power generation but sadly all those sources are mired in problems either due to faulty policies or resource constraints or simply inept implementation. Thermal power is the most critical for India (see accompanying graphic), yet that is where we seem to have messed up the most.
Thanks to protective policies on coal mining in the country, coal output is unable to keep pace with the growth requirements in power. In the first four years of the current Plan period ending 2012, coal demand, mainly for power generation, grew by 7.3 per cent but coal output grew by just 5.4 per cent.
In the coming XII Plan period (2012-17), the projected coal deficit is 200 million tonnes and the sector to suffer the most will be power generation. Though 194 blocks have been allotted for coal production to public and private companies, only 28 have commenced production. This is mainly due to problems of environmental clearances and "no-go" policies for mining.
Imports were an option till recently, but not anymore. Countries such as Indonesia that have large coal reserves are clamping down on exports and making it more expensive and difficult for buyers. Indian companies such as Tata Power, Reliance Power, the Adanis and others who have a toehold there are now finding their toes crushed by the weight of the Indonesian government's policy to tax exports.
The options are just two: push domestic coal output in a big way through positive policies and second, brace ourselves for high cost coal imports, wherever they are available. With more than half of thegenerating capacity being coal-fired, the country just cannot afford to go wrong here.
Gassed out
The technical problems that Reliance Industries is reported to be facing in the KG Basin have affected gas-based generation. Gas output from the KG Basin now is less than half of what was projected as possible by Reliance and even this is being supplied to fertiliser companies on priority basis. Imported gas is an option but it is expensive.
The hope is that Reliance will be able to surmount the problems in the near term and gas output will rise again. But even if it does, the gas-based generation capacity available now may not be enough to substitute for the shortfall from coal-based generation.
Hydro dam(ned)
Hydel power, supposed to be environmentally-friendly, has ironically run into trouble with the green lobby. NTPC was forced to halt work on two of its projects in Uttarakhand after pressure from environmentalists. Even last week there were protests in Assam against a large hydro project, Subansiri, being executed by NHPC in Arunachal Pradesh. Hydel projects have always been sensitive anyway due to submergence of land.
If we thought that nuclear power will be our long-term saviour that hope is also now fading away. The imbroglio over supplier liability clauses means that American companies are unable to commence business for reactor supplies. With the performance of the French EPR reactor being questioned after the experience in Finland where it ran into time and cost overruns, it appears unlikely that the first of the planned ones at Jaitapur will ever take off.
The public protests against nuclear power at Jaitapur and lately, in Kudankulam, also mean that progress will be slow and painful in future. Public opinion is veering around against nuclear power post-Fukushima and the example of Germany, which will be totally off nuclear power by 2021, is being widely quoted as an example for us to move away too.
Financial mess
Part reason for the fuel trouble may lie outside our control but the same cannot be said for the financial mess that the sector is in today which is entirely due to our governments, Central and State. State electricity boards are estimated to have accumulated losses of a massive Rs.70,000 crore. Ratings agency Crisil estimates that distribution utilities alone had a cumulative loss of between Rs.35,000 crore and Rs.40,000 crore as of 2010-11.
Riding on government backing, the state electricity boards have been borrowing merrily from banks to sew up the gaping holes in their finances due to these massive losses. And the hole is only growing bigger. Banks, after initially accommodating the state electricity boards have now grown wiser and are refusing to lend.
According to a Crisil report, the total debt of state electricity boards and distribution utilities touched a huge Rs.3-lakh crore or Rs.3 trillion as of March 31, 2011. The same report estimates that as much as a third of the 56,000 MW of thermal generation capacity is in trouble due to the combined impact of fuel and financial problems.
So where does all this leave us? Hopefully not in darkness. We need positive, clear-headed reform measures to be undertaken, including passing on full prices to consumers who can bear them and subsidising the genuinely poor. Some States have reluctantly allowed their boards to revise power prices in the last few weeks.
We need to cut down on transmission and distribution losses and untangle the environmental problems that coal mining has run into. Policymakers have to balance the needs of development with environmental considerations. But for some urgent steps from the government the country may well return to the Dark Ages, literally.
Keywords: Indian economy, power cuts, power shortage, electricity boards, coal reserves, power generation

http://www.thehindu.com/business/Economy/article2706793.ece

BUSINESS » ECONOMY

NEW DELHI, December 9, 2011

Pranab for bringing inflation down to a sustainable position of 5 to 6 p.c.

AARTI DHAR
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The 7 per cent annual growth was not adequate and Opposition parties should cooperate in improving the investment climate, Union Finance Minister Pranab Mukherjee said on Friday.
Mr. Mukherjee, who was replying to a debate on inflation in the Lok Sabha, said he was keen to step up growth while tackling inflation, which was perilously close to double digits, though food prices showed a declining trend over the last seven weeks. "We have to bring inflation down to a sustainable position of 5 to 6 per cent."
Dissatisfied with the Minister's reply, the National Democratic Alliance and Left parties staged a walkout. Leader of the Opposition Sushma Swaraj said the arguments given by the government were old and did not offer any relief to the common man.
Mr. Mukherjee said there was need to create confidence to encourage investment. "That can be done by allowing institutions to function. We can create that confidence despite divergence of views on issues."
Global developments
India, which was the fourth largest economy in the world, cannot remain oblivious to global developments. "When we discuss price rise, we have to keep in mind the state of the world economy... no country lives in isolation."
Oil and commodity prices had gone up, impacting the price situation at home. Just when there were signs of recovery in a modest way after the global slowdown in 2008, the Euro zone crisis erupted and it was obstinately continuing. "We cannot ignore the adverse impact," he pointed out.
Crisis in smaller countries such as Greece, Portugal and Spain, he said, would have implications for the rest of the world, including India, although the country's financial sector had no direct link with these countries.
Rejecting the Opposition allegation that nothing was done by the government to check price rise, he said food inflation had come down from 22 per cent in February, 2010 to 6.6 per cent in November.
Food production, because of the efforts of the government, had increased from 198 million tonnes in 2004-05 to 241.56 million tonnes now. He noted that price rise and inflation were discussed in the sessions of the current and previous Lok Sabha.
Mr. Mukherjee hit out at the Opposition for moving adjournment motions, arguing that everything should be done as per rules. If the Opposition was so insistent on adjournment motion, the rules should be changed. "Adjournment motions have their own rules, you change the rules, you are the masters."Governments had always been reluctant to allow adjournment motions. If anybody wanted to throw out the government they should resort "straight to no-confidence motion."
On the controversy over subsidies on petroleum goods, he said the issue could be discussed collectively. "Why don't we sit together and discuss? Parliament should collectively deal with the issue. Standing Committee can make suggestions."
"If the international situation is conducive, we can have better confidence," he said. He hoped that the declining trend of crude prices in international markets would continue without any fluctuation.
Keywords: India economy, India GDP, economic growth
http://www.thehindu.com/business/Economy/article2701156.ece

12/12/2011

After drought, bumper paddy crop cheers Bihar farmers

Patna: Ramesh Singh and Satender Yadav are in a relaxed frame of mind these days. After two years of successive drought, a bumper paddy crop this season has come as a huge relief to millions of farmers like them in Bihar who are eagerly waiting for government procurement to commence.
"We are waiting to sell our crop. I will not sell at throwaway prices to local traders after the state government has announced their procurement plans," said Singh, who owns nearly seven bighas of land in Naubatpur village on the outskirts of Patna.
"We are thankful to god for normal rain and this bumber crop. Now we are eagerly looking to sell our produce to government agencies at the MSP (minimum support price)," Yadav told IANS.
Officials in the agriculture department expect an output of eight million tonnes of paddy this season. Last year, the state produced just about 3.5 million tonnes of the crop due to rain shortage.
Harvesting of paddy continues till January and the procurement lasts till April. According to the MSP announced by the central government, farmers will get Rs.1,080 per quintal of paddy, up from last year's price of Rs.1,010.
"We have worked very hard for this. Unlike 2010 and the year before, the bumper crops this time has provided a new lease of life to farmers like us," Singh said.
Agiculture department officials said farmers would be paid within 24 hours of stock sale.
Development Commissioner Ashok Kumar Sinha said he has directed the officials concerned to show an "election-like urgency" towards early procurement of paddy.
"The state government has already initiated a move to speed up the procurement," he said.
Deputy Chief Minister Sushil Kumar Modi said: "Government agencies would procure three million tonnes of paddy at MSP at an estimated cost of Rs.2,700 crore."
The remaining stock of around five million tonnes would go towards the domestic consumption needs of this state of more than 100 million people.
The state government has already approved a Rs.800-crore loan to cooperative banks in the state for procurement.
Last year the situation was grave for farmers as the state suffered its second consecutive drought.
In August 2010, the Bihar government declared all the 38 districts drought-hit due to a rainfall deficit of nearly 25 percent. Inadequate rains had severely hit paddy sowing and transplantation in most districts except Araria, East and West Champaran.
Source: IANS
12/12/2011

Glad supremacy of parliament hailed, says Sharad Pawar

New Delhi: Nationalist Congress Party (NCP) leader and Agriculture Minister Sharad Pawar Monday said while he did not get an invite, it was good that the supremacy of parliament was hailed during the Lokpal debate at Jantar Mantar during Team Anna rally.
"Good that all political parties at Jantar Mantar emphasised the importance of parliament. We cannot overlook parliament," Pawar told reporters.
"There are many discussions, seminars, some in open, some in close, it does not make a difference," he said.
"They said they had sent the invite to my office, I did not get it but it's ok, parliament will debate it. Our party has this line that we want a strong Lokpal bill, and we will present this point in the meeting with the prime minister," Pawar said.
Prime Minister Manmohan Singh has called a meeting of government allies Tuesday.
Source: IANS
12/12/2011

Enforce law, don't gag social networking sites: Experts

Communications Minister Kapil Sibal has clarified that the government did not intend to either interfere or restrict social networking sites but the furore over his proposed monitoring of internet content refuses to subside with legal experts cautioning the authorities against doing so and suggesting better enforcement of existing laws.
Not many jurists endorse Sibal's advocacy of monitoring social networking sites for weeding out objectionable material. The reactions of the legal colleagues of Sibal, himself a lawyer, range from "let us be fair to him" to "perhaps India too needs a Tahrir Square-like revolution".
Known for his advocacy of human rights, particularly among those belonging to the minorities and the vulnerable sections of society, senior counsel Colin Gonsalves told IANS: "It (Sibal's attempt of monitoring the social network sites) shows that India also needs a revolution like the Arab countries because Sibal's comment shows that India like other Arab dictatorships is moving towards spying on its own people and censoring internet content."
Gonsalves said censoring was not the correct way. "If there is any material on the net which breaks Indian laws, the government can prosecute those persons," he said.
To be fair to Sibal, he was highlighting the "need for a regulator and not advocating any governmental control", said another senior counsel Raju Ramachandran.
Ramachandran, who assisted the Supreme Court in a 2002 Gujarat riots case, said the issues raised by Sibal were "serious and there is no doubt that there is a need for a regulator" but it had to be "independent of the government's control".
Instead of censoring by the government, there should be an independent regulatory mechanism to intervene and act in case of any objectionable material on the social network sites, he said.
"Freedom of media is sacrosanct and it can't be violated," I.H. Syed, another apex court counsel, told IANS.
If there was something that posed a threat to the peace and tranquillity of society or was intimidatory or defamatory, then it could be dealt with by taking recourse to law, he said.
Syed said there were only two ways of dealing with a situation -- either it should be prevented or dealt with after it happened.
In the case of the media, prevention could mean censoring which may not be good for democracy. So unlike medicine, where emphasis is on prevention, in the case of media it should be left to the law taking its course effectively in the event of a mischief, he said.
Who is stopping the government from taking steps available under the law, asked Syed, adding "any day, enforcing law is better than gagging media".
US Secretary of State Hillary Clinton and UN Secretary General Ban Ki-moon have also cautioned against policing the internet but have not specifically mentioned India.
Source: IANS
Palash Biswas
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