Today's Hot Stories - May 09, 2013 - PT education

Today's Hot Stories - May 09, 2013

10 Headlines for Today

(1) Pak prisoner Sanaullah, attacked in Jammu jail, dies
(2) Siddaramaiah, Mallikarjun Kharge lead contenders for Karnataka CM
(3) Vertebrae broken, Imran fights from hospital
(4) Liquor baron Kishore Chhabria buys Wales Distilleries in Bengal
(5) Quadricycles set to get transport vehicle tag
(6) Ferrari to sell fewer cars to boost exclusivity
(7) Super Kings end Sunrisers' home run
(8) Nadal eases through Madrid opener
(9) Hockey: India beat Netherlands 4-2 in Rotterdam
(10) Surat diamonds found in Hollywood-style heist

5 Stories for Today

(1) Railway bribery scam: Mamu will fix Kumar’s posting, Singla boasted
(2) U.S., Russia agree on Syria peace process
(3) Verify and refund Sahara investors: SC to SEBI
(4) China inflation data shows central bank policy dilemma
(5) Inflation-linked bonds to debut soon

(1) Railway bribery scam: Mamu will fix Kumar’s posting, Singla boasted


CBI sources on Wednesday said they had evidence to prove that Pawan Bansal's nephew Vijay Singla had been "boasting about his maternal uncle (mama) being the railway minister and confidently assuring Sandeep Goyal that Mahesh Kumar would be made member (electrical)" in the Railway Board.

This could spell trouble for Bansal as he has maintained that Singla was acting on his own and he had nothing to do with his nephew's activities. The CBI probe also got closer to the minister with sources saying the agency had examined his long-time private secretary Rahul Bhandari on Wednesday.

According to sources, while invoking his mama to assure that Kumar's promotion would be cleared, Singla also allegedly talked about other postings/transfers he got done in the Railway Board in the past.

"Recorded conversations between Vijay Singla, Sandeep Goyal, Mahesh Kumar and Manjunath have several references to the railway minister. Singla is confidently assuring Goyal that the minister would get the work done and Goyal further assures Mahesh Kumar. We have to verify the same by checking whether the railway minister signed any document to give dual charge to Mahesh Kumar," a top CBI source said.

After Singla's assurance, Mahesh Kumar verified the claim on his own and also checked the track record of Singla and Goyal to ascertain whether they could get the job done. "Once Mahesh Kumar got convinced, he agreed to pay and that's when he called Manjunath, asking him to arrange the money," the CBI officer said. The agency will soon call Bansal to clarify the claims made by his nephew and about previous postings which have come under the scanner.

CBI has, meanwhile, formally started investigations into all recruitments, transfers, postings and promotions since October 28, 2012, the day Bansal took charge of the ministry.

Sources said the crucial appointments include member (engineering) S K Jain, member (mechanical) Arunendra Kumar and member (staff) Mahesh Kumar and the agency has sought all documents related to their appointment apart from that of some general managers.

The agency is questioning all 10 accused - Vijay Singla, Sandeep Goyal, Ajay Garg, Mahesh Kumar, Manjunath, Dharmendra Kumar, Vivek Kumar, Sushil Daga, Samir Sandhir and Rahul Yadav -- confronting them with documentary and telephonic evidence. About Delhi-based businessmen Rahul Yadav and Samir Sandhir and Faridabad-based Sushil Daga, sources said they were not regular contractors in railways and were "money-arrangers" for Manjunath, who had got several contracts in the railways.

The agency has received documents related to appointment of Mahesh Kumar from the railway ministry and the Appointments Committee of Cabinet (ACC) while documents related to other postings are expected in a week's time.

CBI officials on Wednesday said they will not "share any details of investigations/status reports or any other details with railway ministry, board or any other government authority", in the 'jobs for sale' scam, a claim which comes in the backdrop of Supreme Court's strictures against the CBI in Coalgate.

Source: The Times of India

(2) U.S., Russia agree on Syria peace process


Russia and the United States agreed to work together to bring the warring sides in Syria to the negotiating table raising hopes for an end to carnage in the war-torn country and a thaw in frosty relations between Moscow and Washington.

Emerging from hours-long talks with U.S. Secretary of State John Kerry that stretched late into the night on Tuesday, Russia’s Foreign Minister Sergei Lavrov announced that the sides agreed to convene “as soon as possible, maybe at the end of this month” an international conference on Syria.

The meet will be a follow-up to the Geneva peace conference in June 2012, which called for the Syrian government and the opposition to create a transitional government to steer the peace process in Syria. The Geneva plan got stalled because the U.S. demanded that Syrian President Bashar al-Assad step down as a precondition for peace talks.

On Tuesday Mr Kerry essentially fell in line with what Russia has been saying all along – that Assad’s fate should be decided by the Syrians themselves.

“I’m not going to decide that [Assad departure] tonight. And I’m not going to decide that in the end. Because the Geneva communique says that the transitional government has to be chosen by mutual consent by the parties. Who are the parties? The parties are the current regime and the opposition,” Mr Kerry said.

The U.S. Secretary of State said the failure to reach a negotiated settlement would push Syria to “chaos”, “breakup” and “ethnic cleansing” and trigger “wider instability in the Middle East.”

Moscow appears to have convinced Washington that a violent removal of the current regime in Syria will land the country in the hands of Al-Qaeda-linked jihadists.

“One of the threats in Syria is – that has become a magnet for extremists, for people who have already announced their desire to do harm to other people in the world, to align themselves with al-Qaida, to attack Western interests or other interests,” Mr Kerry said addressing at a joint press conference with his Russian counterpart.

He also said Russia and the United States agreed that “our special services will be in close contact” on the controversial issue of chemical weapons use in Syria.

Earlier on Tuesday U.S. Secretary of State called on President Vladimir Putin and their meeting continued for 21/2 hours, well beyond the planned 40 minutes.

“I was impressed by his [Putin’s] desire to try to see us make a transformation [in bilateral relations],” Mr Kerry said.

Relations between Moscow and Washington have recently soured over alleged human rights violations in Russia and differences over Syria. However, on Tuesday Mr Kerry said the two countries shared “some very significant common interests” in Syria.

“What we’ve done today is come together and try to focus on those [larger strategic interests], even as we will work on these other [divisive] issues in a constructive and thoughtful way.” the U.S. Secretary of State said.

Source: The Hindu

(3) Verify and refund Sahara investors: SC to SEBI


The SEBI should come out with a mechanism to verify the genuineness of investors, who had invested in the Sahara Group, and start refunding money to them, the Supreme Court said on Wednesday.

A bench of justices KS Radhakrishnan and JS Khehar also sought an affidavit detailing

their assets from Sahara India Real Estate Corp Ltd (SIREC) and Sahara India Housing Investment Corp Ltd (SHIC), the two companies in which the investors had put in their money, and are facing property attachment proceedings in the case.

The court said that Securities and Exchange Board of India (SEBI) should start making payments to the investors whose genuineness had been verified. The bench added that if any investor is not found to be genuine, the same must be put to Sahara Group for verification.

The court has fixed July 17 for hearing on SEBI's plea for initiating contempt proceedings against the two companies, its directors, and Sahara Group chief Subrata Roy for not obeying its August 31 last year orders.

Meanwhile, in a statement, Sahara's advocate Keshav Mohan said that during the hearing, they also pointed out that modalities for such a verification process needs to be worked out for implementation of the order.

On May 2, the apex court had stayed the proceedings on pleas filed by Sahara Group and Roy in the tribunal and the high court.

Earlier, the bench had accused Sahara Group and Roy of "manipulating courts" by approaching different forums for relief.

Sahara Group and the market regulator, SEBI, are locked in legal dispute over the refunding of Rs. 24,000 crore by its two companies--SIREC and SHIC--to over three crore investors.

Earlier, the Supreme Court had dismissed Sahara's plea for more time to refund the amount.

SIREC and SHIC along with Roy are facing contempt proceedings in the apex court which had on February 6 allowed SEBI to freeze accounts and seize properties of its two companies for defying court orders by not refunding the money to the investors.

Source: Hindustan Times

(4) China inflation data shows central bank policy dilemma


China's annual consumer inflation rose by more than expected in April while factory prices fell for a 14th consecutive month, highlighting the dilemma facing the central bank as it balances support for the economy against the threat of rising prices.

With global growth sputtering, China's central bank has limited room to move, unlike counterparts in South Korea and Australia which both made surprise rate cuts this week.

Any easing could fuel property market risks, while tightening would hurt a nascent recovery after economic growth unexpectedly slowed to 7.7 per cent in the first quarter from 7.9 per cent in the previous three months.

Instead the onus may be on the government to push structural reforms to help sustain long term growth in the world's second largest economy.

"We cannot rely too much on the central bank to support the economy," said Xu Hongcai, senior economist at China Centre for International Exchange ( CCIEE), a top government think-tank in Beijing.

The government will instead rely on fiscal policy by boosting infrastructure investment and cutting taxes to underpin the economy, said Xu, a former central bank researcher.

Indeed, any investors betting on easing could be disappointed after the central bank's sale on Thursday of 10 billion yuan ($1.63 billion) of three-month bills, the first time since 2011 it has done this.

The move suggested the central bank will rely on other tools.

Tightening, meanwhile, is unlikely given a series of factory and services PMIs issued earlier this month that signalled tepid economic activity in April.

Chinese factories are saddled with excess capacity due to weak demand, putting downward pressure on producer prices that in turn erodes their profits.

"On policy, the priority now is industrial reform to tackle the problem of excess capacity. As such, the focus will be shifted away from macro policy to micro policy. We expect the monetary policy to remain intact this year," said Dongming Xie, China economist at OCBC Bank in China.

The National Bureau of Statistics said that China's producer prices dropped 2.6 per cent in April, the 14th consecutive month of year-on-year declines and sharper than a drop of 1.9 per cent in March. China's biggest listed steelmaker, Baoshan Iron & Steel , said on Thursday it would cut its main steel product prices for June bookings, its first reduction in nine months, underscoring demand worries amid a fragile economic recovery.

The firm, known as Baosteel, usually sets the tone for pricing by the rest of China's steel sector, which is currently gripped by a supply glut due to less than expected demand.

CONSUMER PRICES TICK UP

Consumer inflation quickened to 2.4 per cent in April from March's 2.1 per cent due to higher food costs, data from the National Bureau of Statistics, showed on Thursday.

Economists polled by Reuters had forecast April inflation to quicken to 2.3 per cent and factory gate prices to fall 2.3 per cent from a year earlier.

Food prices rose 4.0 per cent in April from a earlier, quickening from the 2.7 per cent rise in March.

"Rising vegetable prices were the main factor pushing up the CPI," Yu Qiumei, a senior statistician at the statistics bureau, said in a statement accompanying the data, noting bad weather and lower rainfall had reduced supplies.

Consumer inflation may quicken to around 3 per cent in May, partly because of the base effect, said Zhou Hao, China economist at ANZ in Shanghai.

But he added that the central bank is widely expected to keep policy broadly neutral with some fine-tuning to support the economy amid the global uncertainties.

"Monetary policy is likely to stay relatively accommodative as China's economic recovery remains fragile."

Source: The Economic Times

(5) Inflation-linked bonds to debut soon


The proposed inflation-indexed bonds are likely to make a debut this month with the Reserve Bank of India and the finance ministry finalising the structure of these instruments. Further, the tax treatment of these bonds is also being debated in order to ensure sufficient retail participation.

With its eye firmly on attracting retail investors, the finance ministry is likely to index the principal on these instruments to the wholesale price index. To help determine the coupon rate, the ministry plans to hold an auction for institutional investors, before the bonds are launched for the retail segment.

"An auction will enable us to get response from the market on what they perceive to be the interest rate on these bonds. This will ensure that it is attractive enough to wean away retail investors from instruments like gold by providing them real returns that do not get eroded by inflation," said a senior government official, adding that the bonds are likely to have a 10-year maturity.

In the interim, the department of economic affairs is also in talks with the department of revenue to finalise the tax treatment of these bonds. "Investments in these bonds will be under the 80C limit of the Income Tax Act. The principal will be tax free but returns will be taxed," the official said.

Announced as part of the Union Budget 2013-14 by finance minister P Chidambaram, inflation indexed bonds are expected to incentivise the household sector to save in financial instruments rather than buy gold.

"I propose to introduce instruments that will protect savings from inflation, especially the savings of the poor and middle classes. These could be Inflation Indexed Bonds or Inflation Indexed National Security Certificates," the minister had said at the time. Accordingly, the finance ministry plans to issue such bonds worth Rs 15,000 crore in this fiscal. "The RBI is in talks with market dealers to get their response and will soon decide on the structure of these bonds," the official said.

INVESTING HOUSEHOLD SAVINGS

* Finance ministry is looking at indexing the principal on the bond to the wholesale price index
* In order to determine the coupon rate, the ministry plans to auction the bonds to institutional investors before launching it in the retail segment
* Experts feel sovereign bonds would bring in more transparency for credit rating agencies and strengthen the rupee
* The bonds are likely to be brought under Section 80C of the Income Tax Act, where the principal would be tax free but the interest earnings would be subject to tax
The bond was announced in the Union Budget 2013-14 to channel household savings away from gold

Source: The Indian Express

Disclaimer: All news stories and content sourced from freely available material on the internet. All sources are acknowledged.

Today's Hot Stories - May 08, 2013 - PT education

Today's Hot Stories - May 08, 2013

10 Headlines for Today

(1) Mumbai NSUI chief suspended for ‘indecent behaviour’
(2) Stay hanging until review plea is disposed of, Bhullar’s wife asks court
(3) Imran falls from forklift at rally, injured
(4) No powers for coal regulator to determine fuel prices: GoM
(5) RBI panel favours differential tax regime for exporters
(6) Indian-American scientists help pharma cos stay ahead in export race
(7) Easy day at the office for Mumbai Indians
(8) Rahane-Dravid keep Royals’ home run going
(9) Bike racer Dinesh battling for life
(10) World Heritage Sites status sought for 6 Rajasthan forts, Himalayan Park

5 Stories for Today

(1) I&B Ministry has done little to curb paid news: parliamentary panel
(2) Stephen Hawking joins academic boycott of Israeli
(3) India's cheap food plans to prove costly for government
(4) Bank of England set to hold rates after upbeat data
(5) India story on investment is just starting out: Chidambaram

(1) I & B Ministry has done little to curb paid news: parliamentary panel


The standing committee bats for content regulation by empowered mechanism

In a comprehensive 100-page report covering issues across the print and electronic media landscape, a parliamentary standing committee has documented the trend of ‘paid news’ in its various forms and recommended content regulation by an empowered mechanism. It has also strongly criticised the Ministry of Information and Broadcasting (I&B) for “failing to discharge its responsibility”.

The Standing Committee on Information Technology (IT) began examining the issue of ‘paid news’ in 2010. Three years later, it has concluded that the “dangerous trend of presenting [paid-for] information as news content” has spread at a remarkable pace in sections of the media. ‘Paid news’ has had a “serious and damaging impact” on innocent audiences; undermines democratic practices; affects markets, industry and health; is a tax fraud; and a question of ethics.

First noticed in the 2004 general elections, the practice of ‘paid news’ became more widespread in 2009. During the 2012 Gujarat elections, a Press Council of India sub-committee found 444 suspected cases of ‘paid news’, with 61 candidates admitting they had paid up. The committee said it was not merely an “election-time phenomenon”, but “everyday and prolific”, and went beyond the corruption of individual journalists.

The practice, according to the committee, assumed different forms — gifts, sponsored travels, direct or indirect payment of money, indirect blackmailing by media houses and, increasingly, award ceremonies by media houses where regular advertisers are awarded. The parliamentary panel warned that this would assume “gigantic proportions” if not tackled immediately.

In a strong indictment of the I&B Ministry, the panel said it was “disconcerting” that the Ministry had not done “anything substantial” to check the “menace” of paid news, and demanded action in the next six months.

The Ministry should take steps to ensure there was a “clear demarcation” between what constituted advertisements and what, news. While accepting that it was difficult to establish violations because of clandestine transactions, the committee urged the Ministry to put forward innovative solutions to consider and establish “circumstantial evidence”. It also recommended that a team of experts be set up to track the coverage pattern and that the regulatory body swing into action in case of any “unusualness”.

The committee also noted the “pathetic working conditions” of significant sections in the media, disapproved of the media’s tendency to “hire and fire”, and noted that the contract employment should not be used for “attraction and allurement”.

On the ‘Jindal versus Zee’ case, the committee deplored the Ministry’s “indecisiveness” and urged it to take immediate action based on the recommendations of the Inter-Ministerial Committee.

But in its most controversial remarks, the committee has dismissed self-regulation as “an eyewash”, and recommended that a statutory body such as the Media Council be set up to look at “media contents in both print and electronic media” with powers to take “strong actions”. Alternatively, the Press Council could be revamped in case of print journalism and a separate statutory body be set for the electronic media. It called for strengthening election laws and empowering the Election Commission and asked the I&B Ministry to act swiftly on issues of cross-media ownership.

Responding to the criticism, I&B Minister Manish Tewari told The Hindu: “I have not seen the report yet, but we hold the observations of the Standing Committee in high esteem. We will peruse it closely, identify what is actionable, and build a broad-based consensus to implement the actionable points.”

Source: The Hindu

(2) Stephen Hawking joins academic boycott of Israeli


World renowned physicist Stephen Hawking has decided to join the academic boycott of Israel and he won't be attending the annual conference hosted by Israeli president ShimonPeres in Jerusalem, the British paper Guardian reported on Tuesday.

Hawking had earlier agreed to participate in the conference called 'Facing Tomorrow' in June where international personalities join to discuss new ideas. Since the announcement of his participation four weeks ago, Hawking was reportedly flooded with letters and emails urging him not to go to Israel.

Although Hawking has not issued a public statement saying he will boycott the upcoming event, a statement by the British committee for the Universities of Palestine said that it was "his independent decision to respect the boycott, based upon his knowledge of Palestine, and on the unanimous advice of his own academic contacts there", according to Guardian. Hawking is reported to have approved of the statement.

Several public personalities in the UK have been leading a sustained campaign to promote boycott and divestment from Israeli universities and other academic entities to protest against the occupation of Palestine and treatment of Palestinians at the hands of Israelis.

Hawking had last visited Israel in 2006 at the invitation of the British Embassy there. He gave lectures in both Israeli and Palestinian universities.

After the 2009 Israeli attack on Gaza in 2009, Hawking condemned Israel strongly and publicly.

Hawking has been known to take anti-war positions in the past. In 2004, he joined an anti-Iraq war demonstration in London and addressed the demonstrators, calling the US led invasion of Iraq a 'war crime' and based on 'lies'.

Hawking suffers from a rare motor neuron disease called ALS or Lou Gehrig's disease. As a result he is confined to a computer run wheel chair. He is 71 years old now and reportedly not keeping well.

Source: The Times of India

(3) India's cheap food plans to prove costly for government


India may soon pass a new law to give millions more people cheap food, fulfilling an election promise of the ruling Congress party that could cost about $23 billion a year and take a third of annual grain production.

The National Food Security Bill, which aims to feed 70 percent of the population, could widen India's already swollen budget deficit next year, increasing the risk to its coveted investment-grade status.

The ambitious bill, a priority for Congress President Sonia Gandhi, will raise India's annual food subsidy spending by 45 percent. It promises wheat and rice at a fraction of the cost to some 810 million people, expanding current handouts to roughly 318 million of India's poorest.

Critics say the food bill is little more than an attempt to help Congress, reeling from corruption scandals, win re-election in a vote expected by next May.

The government has already budgeted 900 billion rupees ($16.6 billion) for the scheme in the current fiscal year ending March 2014. If the bill is passed, it will need to come up with as much as 1.3 trillion rupees in 2014/15, adding to a total subsidy burden that already eats up about 2.4 percent of gross domestic product.

"It is very difficult to say whether the government will be able to get the Food Security Bill passed or not, but it is definitely going to further widen the budget deficit," D.H. Pai Panandiker, head of private think-tank RPG Foundation, said.

"The finance minister is already worried about the budget deficit, and it is going to add to his agony."

Reducing fuel and fertiliser subsidies would be the best way of mitigating the costs, Panandiker said. Other measures will also be needed to fund the plan, which may include spending cuts and higher taxes.

Finance Minister Palaniappan Chidambaram said in March the rollout of the new food subsidies was unlikely to happen before the middle of the current fiscal year, which started April 1, curbing the financial cost. Chidambaram aims to cut the fiscal deficit to under 4.8 percent of GDP in the current year from around 5 percent in 2012/13.

BULGING STOCKS

Feeding its poor is a matter of urgency for India, home to about 25 percent of the world's hungry poor, according to the World Food Programme, the food aid arm of the United Nations.

India is one of the world's biggest producers of rice, wheat and sugar, but it is also one of the largest consumers with a 1.2 billion population. It exports little and builds up stockpiles to cover handouts, which are now overflowing after bumper harvests, which have come close to 200 million tonnes a year of rice and wheat.

The law would have little effect on India's export volumes in a good crop year, but "in a year of shortage, there could be some impact" on international markets, a Singapore-based trader said.

The bill will give rice at 3 rupees per kg to the poorest people, less than 10 percent of current retail prices, and wheat at 2 rupees per kg.

The government estimates it would need about 61 million tonnes of grains, only 3 million tonnes than it currently makes available, to provide the extra food, hoping better distribution systems and a clamp-down on corruption will reduce wastage.

Last year only about 41.4 million tonnes was actually distributed by state governments in cheap food schemes.

The Congress party, which leads the ruling coalition, wants to pass the bill by May 10 when the parliament session ends.

But debate this week has been disrupted by opposition parties, which say the government is pushing the populist move as a smokescreen to avoid defending itself over corruption scandals.

Last week, police arrested the nephew of Railway Minister Pawan Kumar Bansal in connection with allegations that he accepted a bribe of $160,000 to arrange the promotion of a railway official.

The government may try to pass the bill again in the parliamentary session that starts around July 23 or push it through without a vote when parliament is not sitting, using special constitutional powers. It must then win approval for the bill within six weeks of parliament's return.

Source: The Indian Express

(4) Bank of England set to hold rates after upbeat data


The Bank of England is expected this week to hold record-low interest rates and its quantitative easing cash stimulus, after encouraging British economic growth data and despite fresh moves elsewhere to loosen monetary policy, dealers said.

The nine members of the British central bank's Monetary Policy Committee (MPC) -- which includes governor Mervyn King who steps down next month -- will cast their votes on Thursday at the conclusion of their regular two-day meeting in central London.

The BoE's key lending rate has stood at a record low level of 0.50 percent for more than four years, while it has also injected £375 billion ($582 billion, 443 billion euros) under its quantitative easing (QE) stimulus programme since March 2009.

King, who will be replaced by Canadian central bank chief Mark Carney in July after he retires from the role, has called at the previous three meetings for more emergency QE to stimulate economic growth and fend off the threat of recession.

However, recent official data showed that Britain has avoided falling into its third recession since the 2008 global financial crisis.

British gross domestic product (GDP) expanded by 0.3 percent in the January-March period, rebounding from a 0.3-percent contraction in the fourth quarter of 2012, in a major boost to Prime Minister David Cameron's coalition government.

The economy -- which has been hit hard in recent times by government austerity measures and the eurozone debt crisis -- outperformed market expectations for more modest first-quarter expansion of 0.1 percent. The technical definition of a recession is two successive quarters of economic contraction.

"The odds favour the Bank of England continuing to hold off from more stimulus on Thursday," said IHS Global Insight economist Howard Archer.

"GDP growth of 0.3-percent quarter-on-quarter in the first quarter and an improved set of purchasing managers' surveys for April has eased pressure on the Bank of England for immediate further action to support the economy."

However, he cautioned that the committee could still decide to implement another tranche of QE cash, in line with recent calls by Mervyn King.

"It is by no means a nailed-on-certainty that the MPC will sit tight on Thursday, and it is far from inconceivable that they could go for a further £25 billion of QE."

Since the last BoE gathering, the British government has overhauled and extended its "funding for lending" scheme (FLS) in a bid to boost the flow of credit from banks to struggling small businesses, and thereby aid economic growth

The Bank of England and the Treasury last month revealed that the FLS will now make central bank funds available for an extra year, until January 2015.

"A resumption of quantitative easing (QE) looks unlikely this month," said Capital Economics analyst Vicky Redwood.

"The preliminary estimate of first-quarter GDP was better than expected and some MPC members will feel that they have done enough to support the economy by extending the Funding for Lending Scheme.

"Accordingly, Mervyn King looks unlikely to get his wish for more asset purchases fulfilled before he leaves at the end of June," she added.

Britain, though not a member of the eurozone, counts the single currency bloc as its main trading partner and has therefore been struck by fallout from the region's ongoing sovereign debt crisis.

Added to the picture, the European Central Bank last week trimmed its key interest rate to a record low level of 0.50 percent as it sought to boost the crisis-hit eurozone.

Also last week, the US Federal Reserve maintained its stimulative monetary policy stance. And this Tuesday, the Reserve Bank of Australia (RBA) cut rates to a record low.

"We are in era of global ultra-easy monetary policies which is unprecedented in the modern era," said VTB Capital economist Neil MacKinnon.

"However, tight fiscal policies designed to reduce government debt levels pulls in the opposite direction, as far as the impact of economic growth is concerned.

"In the UK, the economic outlook is still uncertain and requires a looser monetary policy," he added..

Source: The Economic Times

(5) India story on investment is just starting out: Chidambaram


With government liberalising FDI norms and setting up a system to speed up mega projects, finance minister P Chidambaram today said India story of investment is "just starting out". Addressing the First Business Session of ADB Annual Meeting in Greater Noida, he said many projects are

plagued by "last mile" bottlenecks in fuel supply, environment clearance, forest clearance, and land acquisition and a Cabinet Committee on Investment (CCI) has been set up to fast track the projects.

"We have permitted FDI in areas such as multi-brand retail, power exchanges, aviation and broadcasting," he said, adding "As I am fond of saying, India's story on investment is just starting out".

The CCI has cleared several mega major projects, including those in the oil and natural gas sectors, which were stuck due to various regulatory clearances.

Following liberalisation of the FDI policy in the aviation sector, Malaysian budget carrier AirAsia has joined hands with Tata Sons and Telestra Tradeplace to launch an airline in India.

Chidambaram, who is also chairman of the ADB Board of Governors, said the government is determined to accelerate the pace of inclusive growth, while maintaining macroeconomic stability.

"We are committed to fiscal consolidation. It will reverse the slippages that took place as a result of the stimulus packages (given in aftermath of global slowdown)," he said.

The finance minister said the fiscal deficit as a proportion of GDP would be brought down to 3 per cent by 2016-17.

"This we will achieved by a prudent combination of revenue enhancement as well as expenditure rationalisation," he said, adding India was determined to boost investment – both domestic as well as foreign.

Referring to India-ADB engagement, Chidambaram said he was pleased to note that ADB is now embarking on supporting initiatives in skills development.

Source: Hindustan Times

Disclaimer: All news stories and content sourced from freely available material on the internet. All sources are acknowledged.

Today's Hot Stories - May 07, 2013 - PT education

Today's Hot Stories - May 07, 2013

10 Headlines for Today

(1) Defence ministry locks horns with MHA over ITBP reins
(2) Chit fund collapse: Deaths due to aftermath on a rise
(3) N Korea removes missiles from launch site: Officials
(4) No immediate cut in lending rates: SBI
(5) Investments in realty sector fall over 55%: Assocham
(6) US continuing to recover from the worst recession: White House
(7) Miller takes KXIP to an improbable win
(8) Football: Messi edges Barcelona closer to title
(9) Golf: Rookie Ernst wins Wells Fargo in playoff
(10) India tops global list of 1st-day deaths of infants

5 Stories for Today

(1) It did not occur to us to inform court of changes: CBI chief
(2) China's cyber spying targets US government: Pentagon
(3) DLF to sell 81 million shares, ropes in eight banks
(4) Warren Buffett defends choice of son as successor
(5) RBI to use all means to manage liquidity: Subbarao

(1) It did not occur to us to inform court of changes: CBI chief


The CBI Director claimed in the Supreme Court on Monday that it did not occur to the agency to bring it to the notice of the court that the draft status report had been shared with the Law Minister and officials in the PMO and Coal Ministry as there was no specific direction to this effect.

In his affidavit, the Director said: “It was our honest and bona fide belief that there was no specific direction on this issue by the court.” It claimed that the Attorney General saw PE 2 and PE4 (preliminary enquiries dealing with coal allocations between 1993 and 2005). Coal and PMO officials also went through them and suggested some amendments. The affidavit, however, backed the Attorney General saying “the AG neither asked for nor was given a copy of the final status reports” but admitted he made “minor changes” in status report of PE2.

The CBI Director admitted that the issue of status report was first discussed with the Law Minister in the first week of February, when a meeting was held in the Minister’s chamber. It clarified that this meeting was not called at the request of the CBI.

During the March 6 meeting with the Law Minister, the AG was also present. The AG glanced through the portions of the status reports of PE2 and PE4 and he made certain observations which were explained to him.

On the court’s query whether or not the CBI Manual empowered the CBI to share the status reports with the Law Minister, the CBI Director said: “There is nothing in the CBI (Crime) Manual to guide whether status reports in respect of on-going investigation in a sub judice matter were to be shared with others. The departmental circulars and government instructions are also silent on this point. In our institutional memory too, no such general guidelines could be located,” it said.

On the court’s query whether the status reports were shown to any one other than those mentioned in the affidavit, such as the Law Minister and the officials in the PMO and the Coal Ministry, the affidavit said that the draft report was not shown to others. “Sharing of status reports (with Law Minister and officials in PMO and Coal Ministry) and the consequent changes therein have neither altered the central theme of the report nor shifted the focus of enquiries or investigations in any manner. No names of suspect or accused were removed from the status reports and also that no suspect or accused were let off in the process.”

While sharing the details of the officers investigating the case (in a sealed cover), the CBI Director extended unconditional apology for any inadvertent omission or commission on his part and assured the court that enquiries and investigations were being conducted independently by a team of officers with utmost sincerity and professionalism and would continue with the same zeal and purpose.

Source: The Hindu

(2) China's cyber spying targets US government: Pentagon


China has engaged in widespread cyber espionage in a bid to extract information about the US government's foreign policy and military plans, said a Pentagon report issued Monday.

China kept up a steady campaign of hacking in 2012 that included attempts to target US government computer networks, which could provide Beijing a better insight into America's policy deliberations and military capabilities, according to the Pentagon's annual assessment of China's military.

"China is using its computer network exploitation (CNE) capability to support intelligence collection against the US diplomatic, economic, and defense industrial base sectors that support US national defense programs," said the report to Congress.

"In 2012, numerous computer systems around the world, including those owned by the US government, continued to be targeted for intrusions, some of which appear to be attributable directly to the Chinese government and military," it said.

The report marked the most explicit statement yet from the United States that it believes China's cyber spying is focused on the US government, as well as American corporations.

Although President Barack Obama's administration has demanded China stop widespread cyber theft, officials have tended to focus their public comments on the hacking of private business networks and not US government agencies.

The information targeted by the cyber spying could possibly benefit China's arms and technology sectors, as well policymakers interested in US leaders' thinking on China-related issues, the report said.

The cyber spying could assist Chinese military planners in "building a picture of US network defense networks, logistics, and related military capabilities that could be exploited during a crisis," it said.

US officials have grown alarmed over what they call increasingly brazen hacking from China that has penetrated defense contractors including Lockheed Martin and a host of other organizations and agencies.

The digital espionage was part of a broader industrial espionage effort that seeks to secure military-related US and Western technology, allowing Beijing to scale back its reliance on foreign arms manufacturers.

"China continues to leverage foreign investments, commercial joint ventures, academic exchanges, the experience of repatriated Chinese students and researchers, and state-sponsored industrial and technical espionage to increase the level of technologies and expertise available to support military research, development, and acquisition," the report said.

Apart from describing the Chinese military's focus on cyber warfare, the Pentagon report portrayed a steady build-up of Beijing's armed forces, with investments in anti-ship missiles, space satellites, a new aircraft carrier and stealth fighter jets.

China in March announced a 10.7 per cent increase in its annual defense spending, with a budget of $114 billion.

But the report estimated China's total military spending for 2012 was much higher, between $135 billion and $215 billion.

Although China's top strategic concern remained Taiwan, its "military modernization has begun to focus to an increasing extent on capabilities and mission sets that extend beyond immediate territorial concerns," David Helvey, deputy assistant secretary of defense for East Asia, told reporters.

The report said much of China's investments are concentrated on missiles and other weaponry to attack "military forces that might deploy or operate within the western Pacific," where Beijing stakes territorial claim to an arc of disputed islands.

The Pentagon has been particularly concerned about the DF-21D anti-ship ballistic missile, as well as air defenses and other weapons that could hit destroyers or aircraft carriers from a long distance.

"Obviously, something that can hold at risk large surface ships, including aircraft carriers, is something we pay attention to," Helvey said.

But the report stressed "positive momentum" in military relations between the United States and China, citing more high-level contacts and a joint counter-piracy exercise in the Gulf of Aden last year.

Source: The Times of India

(3) DLF to sell 81 million shares, ropes in eight banks


India's DLF Ltd is planning to sell up to 81 million shares and has mandated eight banks for the institutional placement sale, according to a term sheet.

The price range and size are yet to be determined, according to the term sheet, which also did not specify the timeframe.

DLF picked Bank of America-Merrill Lynch, Deutsche Bank, JPMorgan and Standard Chartered, along with CLSA, HSBC, Kotak, and UBS to handle the sale, according to the term sheet.

Kushal Pal Singh or K.P. Singh is the chairman and CEO of DLF Limited.

Source: The Indian Express

(4) Warren Buffett defends choice of son as successor


Warren Buffett on Saturday gave the most extensive comments to date about the future of Berkshire Hathaway Inc after he is gone, saying he still expects the conglomerate to be a partner of choice for distressed companies.

Buffett, 82, also defended his plan to install his son,

Howard, who has little investing experience, as nonexecutive chairman, saying the younger man's role would be to ensure that Berkshire had the right CEO in place.

During the financial crisis and its immediate aftermath, Berkshire helped prop up a number of companies, among them blue-chips such as General Electric and Goldman Sachs.

Buffett's investments were viewed by many shareholders as a seal of approval from one of the world's most respected businessmen.

Short-seller Doug Kass, invited by Buffett to Berkshire's annual meeting on Saturday to offer contrarian points of view, asked whether a successor would have the same heft. Buffett said it would not matter.

"Berkshire is the 800 number when there is really some panic in the markets, and people really need significant capital," Buffett said.

"If you come to a day when the Dow has fallen 1,000 points a day for a few days and the tide has gone out and you find some naked swimmers, those naked swimmers ... will call Berkshire," he added.

Whoever ultimately takes over Berkshire will run a conglomerate that employs more than 280,000 people in dozens of businesses worldwide, covering everything from ice cream to insurance and retail to railroads.

Kass later asked what qualified Howard Buffett, a 58-year-old farmer and philanthropist, to step in as Berkshire's non-executive chairman when his father is gone. The elder Buffett insisted his son was ideal for the task at hand.

"He has no illusions at all of running the business. He won't get paid for running the business," Warren Buffett said.

"He'll only have to think about whether the board ... needs to change the CEO."

As in the past, Buffett talked about his successor as CEO without actually identifying him. Speculation usually focuses on a small group of top Berkshire executives, among them insurance boss Ajit Jain and railroad leader Matt Rose.

One long-time Buffett-watcher said the legendary investor seemed to handle the pressure from Kass and others well.

"Buffett hasn't broken much new ground, but he's handled Doug's question well ... and, as always, reinforced the Berkshire culture every chance he's had," said Jeff Matthews, founder of hedge fund Ram Partners LP and a Buffett biographer.

Economic indicator

Berkshire's breadth means that its performance is seen as a barometer for the broader economy.

On Saturday, Buffett said he still stands by the actions taken by the US Federal Reserve to stimulate the economy, even as he cautioned that the program could be "very inflationary."

"This is like watching a good movie, and I do not know the end," he said.

"We have benefited significantly, and the country has benefited significantly, by what the Fed has done."

Buffett also endorsed the last four years of deficit spending by President Barack Obama's administration, saying it is a problem to get off that program but much less of a problem than if the government had followed a strict austerity program instead.

"We are seeing some recovery in housing prices which has psychological effects," he said.

"(By the next annual meeting) I think we will have moved forward ... I don't think there will be a surge of any sort, but I don't think we will stall."

Earlier Saturday, one of Buffett's top lieutenants said things were picking up but could improve further.

"It feels like a 2% economy. If we want to see GDP click up to 3.5%, 4%, you need to see more consumption," said Rose, CEO of the railroad Burlington Northern, in an interview.

Rose said Burlington Northern was seeing "across the board" increases in demand to ship things like concrete, roofing tiles and cars.

No Twitter, thank you

Buffett may be optimistic about the economy, but he is decidedly more cautious about technology.

Earlier this week he joined Twitter, taking the handle @WarrenBuffett - but insisted he only knew enough about it to press a button when told to.

On Saturday he said he disagreed with the recent guidance from the US Securities & Exchange Commission that lets companies release material information on Twitter. Some see that as a threat to Berkshire's press release service, Business Wire.

"The key to disclosure is accuracy and simultaneity ... I do not want it, if I am buying Wells Fargo, to keep hitting up their web page and hoping I'm not 10 seconds behind someone else for some important announcement," he said.

He also stuck by one of Berkshire's more controversial investments, its recent acquisition of a number of newspapers. The annual meeting crowd applauded when CNBC anchor Andrew Ross Sorkin asked a critical question about the stable of papers.

"It's not going to move the needle in Berkshire ... we are buying the papers at very, very low prices with (regard to) current earnings," Buffett said, adding that he expected to meet or beat a 10% rate of return, after-tax.

Yet as much as investors want to hear about Berkshire's growth potential and the state of the economy, some also attend the meeting just for a good laugh.

The meeting opened, as it does every year, with a video montage. This year's included a duet between Buffett and singer Jon Bon Jovi and a take-off on the TV series Breaking Bad.

Some of the best comedy, though, usually comes in the verbal sparring between Buffett and Vice Chairman Charlie Munger over the course of the day. The two are close - they shared an oversize box of peanut brittle during the meeting - but Munger's acerbic tongue pops out from time to time.

"I come to see Charlie Munger needle Warren Buffett - only he can," said Sherman Silber, a doctor and shareholder.

Source: Hindustan Times

(5) RBI to use all means to manage liquidity: Subbarao


Reserve Bank Governor D Subbarao on Monday said the Reserve Bank of India will consider all options available, including reducing the cash reserve ratio (CRR), to manage liquidity in the system.

"The assumption that OMOs will be the preferred tool is wrong. Don't go with that assumption. We will use all options available to us depending on the liquidity situation... it could be OMOs, it could be CRR (cut) or it could be something else...," Subbarao told analysts during the customary post-policy conference call. Stating that liquidity squeeze is likely to be "less uncomfortable" in the coming months as the government starts spending, he said: "Our objective is to maintain liquidity at plus or minus 1 per cent of NDTL. We have actively managed liquidity conditions....and it should be less uncomfortable going forward. We have also indicated that we will actively manage liquidity. Consistent with that policy, we have announced an OMO of Rs 10,000 crore on Friday."

Banks are borrowing close to Rs 90,000 crore from the RBI through the overnight window, which is above the central bank's comfortable level of 1% of NDTL (net demand and time liabilities) at Rs 60,000 crore.

The tight liquidity condition will ease further as and when the difference between deposit and credit growth rates reduces, he said. Despite the high liquidity deficit, the RBI kept the CRR — the portion of deposits that banks keep with RBI — unchanged at the annual policy announcement on Friday, saying the liquidity shortage was not a structural issue.

It had also said that it would actively manage liquidity to ensure adequate credit to the productive sector. Referring to the proposal to auction government cash balances to banks, Subbarao said RBI is in discussion with the government on this. But he was quick to add that the proposal, if implemented, will not change the overall liquidity situation. Earlier, there were reports that the government might auction its cash balance, which is close to Rs 1 lakh crore, to banks.

Subbarao also said economic growth, which is likely to be modest in the first half, could pick up in the second half. To a question on the rising house prices, the governor said: "There is no housing price bubble building up in the country." Referring to monetary policy transmission, Subbarao said the RBI expects base rates of banks to come down in the coming months, adding that as yields on government securities come down, money will be cheaper to that extent for corporates.

Source: The Economic Times

Disclaimer: All news stories and content sourced from freely available material on the internet. All sources are acknowledged.

Today's Hot Stories - May 04, 2013 - PT education

Today's Hot Stories - May 04, 2013

10 Headlines for Today

(1) Rail bribery case: Bansal distances himself from nephew
(2) PILs against major irrigation project in Mumbai: HC seeks Centre's reply
(3) US to tighten border checks on foreign students
(4) Infosys loses number of sales people in US
(5) Rs.100 crore found in Saradha Group chief's 254 accounts
(6) Qatar group to buy 5% in Airtel
(7) Top seed Ferrer in Portugal Open semis
(8) Golf: Phil Mickelson seizes Quail Hollow lead
(9) Hockey: Haryana win 3rd Women National C'ship
(10) For third time in a row, a woman tops UPSC exam

5 Stories for Today

(1) House panel seeks statutory backing for CBI
(2) Cameron spooked by party of ‘fruitcakes’ and ‘loonies’
(3) TV broadcasters bleed money in ad blackouts over billing
(4) U.S. employers add 165,000 jobs
(5) Moody's sees India's sovereign outlook stable, pegs GDP growth at 6%

(1) House panel seeks statutory backing for CBI


At the time when the government is accused of interfering in the CBI's functioning by virtue of its administrative control over the agency, a parliamentary panel on Friday suggested enactment of a separate law or amendment in the existing "archaic" Delhi Special Police Establishment Act to give CBI "statutory backing".

The panel - parliamentary standing committee on ministry of personnel, public grievances and pensions — said that the Delhi Special Police Establishment (DSPE) Act, governing the CBI, was "grossly inadequate", and asked the ministry to either make changes in it or enact a new law.

"The committee reiterates its recommendation made in its 56th report that in the event of enacting a fresh statute for CBI not found to be feasible, requisite amendments may be made in the DSPE Act," it said in the report tabled in Parliament on Friday.

The committee in its earlier report on demands for grants had recommended legislation on the lines of the National Investigation Agency Act, 2008, so that the CBI can probe corruption cases throughout the country without the states' consent.

The standing committee in its report also expressed unhappiness over large number of vacancies in the CBI and suggested the investigating agency to have its own cadre of officials to fill up vacant posts. As many as 831 posts at different levels were lying vacant in the CBI, according to a data updated till December 31, 2012. The total sanctioned strength of CBI is 6,586.

The vacancies existed in the ranks of special or additional director, joint director, deputy inspector general of police, superintendent of police, additional superintendent of police, deputy superintendent of police, inspector, sub- inspector, assistant sub-inspector and head constable.

The posts of 54 Law Officers and 94 Technical Officers at various levels were also lying vacant.

"The committee wishes to drive home the point that a premier investigating agency such as CBI should have an independent and proficient departmental cadre of its own, rather than being dependent on the States and other organisations to spare their officers or personnel for deputation in CBI," the report said.

Taking into account the sensitive nature of the cases dealt by the CBI, the Committee also advocated the need for full-fledged forensic labs at the agency's disposal.

Source: The Times of India

(2) Cameron spooked by party of ‘fruitcakes’ and ‘loonies’


Britain’s political landscape was set for a big shake-up on Friday after the ruling Tory-Liberal Democrat coalition and the opposition Labour party were routed in local elections by an upstart United Kingdom Independence Party (UKIP) in a massive protest vote against the national political establishment.

The Labour, however, had the satisfaction of retaining its parliamentary seat vacated by former Foreign Secretary David Cameron who stepped down recently to take up a job in America.

The anti-immigrant and Europhobic UKIP, which Prime Minister David Cameron once contemptuously dismissed as a party of “fruitcakes, loonies and closet racists”, declared itself the “official opposition” after making stunning electoral gains at the expense of all the three main parties, but mostly the Tories and the Liberal Democrats.

UKIP’s feisty leader Nigel Farage said the results revealed a “total disconnect” between the mainstream national parties and ordinary people on the streets.

“UKIP is actually speaking the language of millions of ordinary voters,” he said.

“We’ve been abused by everybody, attacked by the entire establishment who did their best to stop ordinary decent people going out and voting UKIP, and they have done in big, big numbers,” he told Sky News.

As results for elections to 27 English county councils were announced, with the Tories losing some of their supposedly safest strongholds ahead of the next general elections barely two years away, Mr. Cameron tried to put up a brave front saying voters liked to punish governing parties between elections.

But the party chairman Grant Shapps was more contrite.

“We hear the message, we get it, we understand what people are saying,” he said.

Labour admitted it was a “wake-up call”.

“We should listen very seriously if people are feeling disaffected and disenchanted,” said its deputy leader, Harriet Harman.

Keywords: Britain politics, U.K. local elections, David Cameron, Conservative Party, United Kingdom Independence Party, UKIP, Labour Party, Liberal Democrats

Source: The Hindu

(3) TV broadcasters bleed money in ad blackouts over billing


A spat between the television channels and advertising agencies over billing practices has turned costlier for the broadcasters as they may loose up to Rs. 20-25 crore everyday for taking the commercials off the air. "Broadcasters may lose Rs. 20-25 crore per day, which means over Rs.100 crore if tiff continues for next five days," said a senior executive from Multi Screen Media, which runs Sony Entertainment.

Broadcasters have blacked out commercials since Wednesday in protest against a new billing method but are carrying ads for agencies that have agreed to move to the new 'net' billing method.

Earlier, broadcasters used to issue gross bills to the advertising agencies for TV commercials. These bills included a 15% charge, which was later deducted from the gross amount.

In recent assessments, the income tax (IT) department has taken a view that the 15% trade discount given by broadcasters is actually an agency commission.

I-T department has issued notices to Indian Broadcasting Foundation (IBF) members for non-payment of tax deducted at source on this 15% agency commission.

To avoid unnecessary litigation, the IBF then decided to issue net bills, which was not accepted by media agencies.

Major networks such as Star India, TV18, Viacom18, Zee Entertainment Enterprises, Sony Entertainment, Times Television Network, and ETV have joined hands to drop advertisements.

"Broadcasters are losing revenue every minute. This will hurt the finances badly," said Ashok Venkatramani, CEO, Media Content and Communications Services, a venture by ABP Ltd.

But in or a longer term, the new billing system will hit hard the revenues of media agencies as well. The commission rate is expected to dip from 15% to 3% and further down.

"Also, the proposed tax system will make clients more dominant over media agencies as they will negotiate on the percentage of commissions," said Santosh Sood, former COO, Rediffusion Y&R, an ad firm.

However, efforts are on to end the standoff.

"Discussions are on. And hopefully, we will find a solution soon," said Arvind Sharma, president, Advertising Agencies Association of India.

Source: Hindustan Times

(4) U.S. employers add 165,000 jobs


U.S. employers added 165,000 jobs in April, and hiring was much stronger in the previous two months than first thought. The gains trimmed the unemployment rate to a four-year low of 7.5 per cent.

The Labor Department report showed the job market was improving despite higher taxes and government spending cuts.

In addition to the April gains, the government said employers added 138,000 jobs in March and 332,000 in February. That’s 114,000 more over the two months.

The economy has created an average of 208,000 jobs a month from November through April.

That’s above the 138,000 added in the previous six months.

Source: The EconomicTimes

(5) Moody's sees India's sovereign outlook stable, pegs GDP growth at 6%


Global rating agency Moody's has said India's sovereign outlook is stable and does not warrant any action on the country's credit rating in the next 12-18 months.

"We feel the outlook (on India) is stable. We do not see ratings movement up or down in the next 12-18 months," Moody's Sovereign Ratings VP and lead analyst (India) Atsi Sheth said on the sidelines of ADB annual meet here.

Sheth said Moody's has already incorporated the possibility of an improvement in India's growth in its current rating outlook.

In January, Moody's had reaffirmed sovereign credit rating of India at 'Baa3', which indicates investment grade, with a stable outlook. It had, however, cautioned that a high fiscal deficit could pull down the growth in the coming years.

"We expect the downturn will be extended if that is what the world is going through right now. But we do expect that as conditions globally improve, if the domestic situation improves, growth too will see an upward trajectory," Sheth said.

Moody's representatives are slated to meet the Finance Ministry officials next week, where the ministry would be pitching for a ratings upgrade.

Moody's expects Indian economy to grow by 6 per cent in 2013-14. In 2012-13, the economic growth is estimated to have slowed to a decade low of 5 per cent.

Finance Minister P Chidambaram has pegged fiscal deficit for this fiscal at 4.8 per cent, lower than 5.2 per cent in the last financial year.

There are concerns on Current Account Deficit (CAD) which has touched a record high of 6.7 per cent in the December quarter of 2012-13. For the entire fiscal, CAD is likely to be around 5 per cent.

Despite global uncertainty, the Finance Minister expects the economic growth to be over 6 per cent in the current fiscal. To boost growth, the government has taken several measures in the recent past, including liberalising FDI norms in various sectors like multi-brand retail and aviation.

Besides, it has also set up Cabinet Committee on Investment to accord fast-track clearances to large projects. The CCI has cleared projects worth over USD 27 billion in the past four months.

Source: The Indian Express

Disclaimer: All news stories and content sourced from freely available material on the internet. All sources are acknowledged.

Today's Hot Stories - May 03, 2013 - PT education

Today's Hot Stories - May 03, 2013

10 Headlines for Today

(1) PMK leader Anbumani Ramadoss arrested
(2) Parliament disrupted over coal scam
(3) China expects ‘quick’ resolution to Ladakh standoff
(4) Airtel to sell 5% stake to Qatar Foundation
(5) RBI cuts interest rate by 0.25 per cent
(6) U.S. trade office hits out at Novartis ruling
(7) de Villiers’ blitz helps RCB beat the ‘away’ blues
(8) Grand Prix Gold badminton tournament: Sindhu enters semifinals of Malaysia Open, Gurusaidutt out
(9) Mathews steps down as Warriors’ skipper
(10) Hackers find hole in Google Glass security

5 Stories for Today

(1) Narendra Modi’s Patel test
(2) Most Muslims want sharia law, split on interpretation: Study
(3) Insider trading case: Sebi slaps Rs 11 crore fine on RIL firm
(4) Govt clears IKEA Rs.10,500-cr plan for FDI in retail
(5) Reserve Bank of India concerned over dependence on ECBs

(1) Narendra Modi’s Patel test


If BJP asks Modi to put party ahead of prime ministership, his decision would then be what truly sets him apart

Narendra Modi, prime ministerial aspirant, is faced with a problem of Patelian proportions. The party’s middle and lower orders want him to be Prime Minister but, eventually, the day will come when he will have to see what serves his party’s and India’s interests best.

A little reminder from history seems to be in order here because most people remain blissfully unaware of it throughout their lives. Even the few who do know it, often forget its caprices. It is the Gandhi-Patel-Nehru-Party story of April 1946.

In terms of expectations, 1946 was not dissimilar to 2013. It was not known then that the British would be gone in 16 months. That surprise came in February 1947 when Lord Mountbatten announced it out of the blue.

But an interim Indian government was to be formed. That in itself was a major reason for hope to be in the air, just as it is now, including the possibility of an interim government because neither the UPA nor the NDA might manage 272 seats.

In 1946, the Congress, like the BJP now, had to pick a PM. There were three candidates: Maulana Abul Kalam Azad who had been Congress president for six years; Sardar Vallabhbhai Patel, a great organiser and leader with an earthy sense of India and its politics; and Jawaharlal Nehru, with none of these attributes.

The nominations for the new Congress president were due on April 29. Gandhiji had already indicated his preference for Nehru to Azad on April 20.

On the appointed day, 12 out of the 15 Pradesh Congress Committees (PCC) nominated Patel. The remaining three did not nominate Jawaharlal Nehru. No one seems to know what they did.

Gandhiji, stubborn as ever, then asked J.B. Kriplani to canvass support for Nehru. So some signatures were collected from those who were not actually legally entitled to nominate a Congress president. That privilege belonged solely to the 15 PCC chiefs.

But no one challenged this and Nehru’s nomination was accepted. Immediately, Sardar Patel, on Gandhiji’s request, withdrew his nomination.

In fairness to him, Gandhiji did tell Nehru about what had happened. Nehru, it has been recorded, responded with silence.

After Nehru had been foisted by Gandhiji, Azad, who had wanted to continue as Congress president because that was the route to the PMship, decided to support him. But others, including Rajendra Prasad, were most upset that Patel had been asked to stand down (or in Nehru’s words, be ‘Number Two’ which he himself had refused to be).

Why did Patel agree? Firstly, because Gandhiji had asked him to and secondly, because he did not want a divided leadership to confront Jinnah and Co.

BJP’s Patel problem

It looks as if the BJP is faced with a similar dilemma. It has to choose between Mr. Modi as Prime Minister and someone else. Who that someone is doesn’t really matter.

There are four possibilities.

(A) It chooses Mr. Modi, and NDA wins;
(B) It chooses Mr. Modi, and NDA loses;
(C) It dumps Mr. Modi, and NDA wins;
(D) It dumps Mr. Modi, and NDA loses.

Clearly, A is the most preferred outcome for the BJP, and D is the least preferred one. B also is not to be countenanced. So the choice boils down to A and C.

The BJP has to work out the probability of these two events. On current reckoning, it seems to be assigning a very high probability to A and a very low one to C. Hence the tussle between L.K. Advani and Mr. Modi.

But eventually, as the elections come closer, it will have to revisit the odds on C. Even though they will change, they are unlikely to change drastically in C’s favour. Mr. Advani may think he has it in him but he is probably in a minority of one.

Modi’s moment

But politics is about surprises. So suppose something happens that closes the gap between A and C to a narrow one.

Will the party then tell Mr. Modi what Gandhiji told Patel, namely, in the interests of unity, will you stand down? What will Mr. Modi do then?

His decision might have to involve, when the time comes, paying heed to his ‘inner voice’ which places party and NDA above self. It worked wonders for the Congress, if you recall, in 2004.

The problem, however, is that there is no one in the BJP with the moral authority of Gandhiji. This means that if the party has to choose between Mr. Modi and someone else, Mr. Modi will have to show a degree of selflessness not usually seen in politics. Tyag works well in India.

That, truly, will be his real test, the one thing that will truly set him apart, and make him an even bigger and unstoppable force to reckon with, the next time around.

Source: The Hindu

(2) Most Muslims want sharia law, split on interpretation: Study


A majority of Muslims around the world want sharia law to be implemented in their countries but are split on how it should be applied, a Pew Research Center study has found.

A comprehensive study titled "The World's Muslims: Religion, Politics and Society" conducted between 2008 and 2012 focused on 38,000 people in 39 countries and territories drawn from a global Muslim community of 2.2 billion people.

A solid majority of Muslims, notably in Asia, Africa and the Middle East, were in favour of sharia — traditional Islamic law — being adopted as the law of the land.

The percentage of those in favour of sharia being implemented as their country's law varied from eight per cent in Azerbaijan to 99 per cent in Afghanistan.

The study revealed many Muslims were in favour of applying sharia in the private sphere to settle family or property disputes.

However, in most countries surveyed, there was less support for severe punishments, such as cutting off the hands of thieves or executing people who convert from Islam to another faith.

A majority of Muslims are also in favour of freedom of religion, even while backing sharia. In Pakistan, for example, 84 per cent of Muslims want sharia enshrined as official law but 75 per cent believe non-Muslims are free to practice their religion.

Around half of Muslims in the survey expressed concerns about religious extremism, particularly in Egypt, Iraq and Tunisia.

In most countries, a majority of Muslims said a wife must obey her husband, although a majority also said a woman should decide whether or not to wear a veil.

Most Muslims said they do not feel tension between their religion and modern life, prefer a democratic regime, enjoy music or Western movies, even if such pastimes are sometimes regarded as undermining morality.

An overwhelming majority viewed prostitution, homosexuality, suicide or alcohol consumption as immoral but there are sharp differences on issues such as polygamy.

Only four per cent polled in Bosnia and Herzegovina considered polygamy morally acceptable, against 87 per cent in Niger.

A strong majority surveyed said so-called honour killings could never be justified. The only exceptions came in Afghanistan and Iraq, where majorities condoned executions of women deemed to have shamed their families by engaging in premarital sex or adultery.

Violence carried out in the name of Islam was also widely rejected.

Source: The Times of India

(3) Insider trading case: Sebi slaps Rs.11 crore fine on RIL firm


The Securities and Exchange Board of India (Sebi) has fined Reliance Industries group entity Reliance Petroinvestments (RPIL) Rs 11 crore for violating insider trading norms in the shares of erstwhile IPCL before its merger with RIL.

"It may be concluded that by virtue of RPIL having control over IPCL, it was reasonably expected to have access to unpublished price sensitive information of IPCL. RPIL being the promoter having control over the company holding 46 per cent shares of IPCL is inherently expected to have access to price sensitive information. The company being in such a position it is unacceptable that it was not aware of such major/ important decisions of the company IPCL," the Sebi order said.

Share price of IPCL on March 5, 2007, declined by 8.13 per cent on the BSE when the Sensex declined by 3.79 per cent. However, in a divergence from the index, the scrip witnessed substantial price gain on March 8, 2007, and March 9, 2007, subsequent to the announcement of amalgamation of IPCL with Reliance Industries.

The findings of the investigation led to the allegation that RPIL was in the possession of unpublished price sensitive information while trading in the scrip of IPCL prior to announcement of declaration of interim dividend and amalgamation of IPCL with Reliance Industries which resulted in violation of regulation 3 of SEBI (Prohibition of Insider Trading) Regulations, 1992.

Source: The Indian Express

(4) Govt clears IKEA Rs.10,500-cr plan for FDI in retail


The Cabinet Committee on Economic Affairs (CCEA) on Thursday cleared Swedish furniture major IKEA’s Rs. 10,500-crore investment proposal in India, the largest FDI in single-brand retail so far.

This will pave the way for the iconic furnishing and homeware firm to set up 25

exclusive stores and in-house food cafes in the country.

“Yes, it is cleared,” information and broadcasting minister Manish Tewari said, referring to IKEA’s investment proposal.

“This will be the biggest foreign investment in the retail segment till now and will provide an opportunity to Indian small and medium enterprises in a wide range of labour intensive sectors for integrating into global value chain. On the other hand, it will also provide a diverse choice for the Indian consumers for a wide range of products,” Anand Sharma, commerce and industry minister, said.

“This decision has once again re-affirmed the commitment of the government for maintaining a liberal economic agenda,” said Sharma, who described the CCEA approval as “historic”.

Last year, the government had eased foreign investment norms allowing 100% FDI in single brand retail and had removed some of the restrictive conditions including dropping the mandatory 30% sourcing of goods from Indian small enterprises for single brand retail trading.

IKEA, with more than 300 stores across the world and an annual revenue of 27.5 billion euros (about Rs. 190,000 crore) had also sought approval to sell items such as upholstery and other accessories, consumer electronics, leather products, and lifestyle products, food and beverages at cafes in its premises.

IKEA had sought permission to set up cafes and restaurants inside all its stores in India, in line with its global concept.

The government has allowed the company to run food cafes but has prohibited it from selling packed food.

Source: Hindustan Times

(5) Reserve Bank of India concerned over dependence on ECBs


India's strong dependence on external and short-term debts for financing current account deficit remains a key concern for the Reserve Bank, although the deficit may ease in the fourth quarter due to the fall in global commodity prices. RBI said volatility in such flows remains a risk given the weak global economic recovery.

"Private sector external debt has become large and some prudence may be necessary on external commercial borrowing (ECBs) and short-term trade credit," it said in its macroeconomic and monetary development report, which sets the tone for the monetary policy statement.

The country's external debt rose due to a higher dependence on ECBs and short-term borrowings, the central bank said. Short-term debt on a residual maturity basis rose to 44% of total debt and 56% of the foreign exchange reserves by end-December 2012.

"What worries me is the way current account deficit is being financed," said economist Brinda Jagirdar, who has retired from State Bank of India just recently.

Modest pickup in exports and some deceleration in imports are likely to help current account deficit fall in the fourth quarter of 2012-13 after a record high of 6.7% of GDP in the previous quarter. Current account in 2013-14 is also likely to benefit from fall in global commodity prices including oil and gold. However, the ratio FY13 is expected to be around 5%, twice the sustainable level.

"CAD, ekven at this large level, could be fully financed by capital in flows during 2012-13 but the volatility in such flows remains a risk," RBI said. "It is necessary to lower external sector risks by lowering current account deficit to its sustainable level and not become complacent about external in flows," it said, as the possibility of capital outflows remains a concern due to the slowing growth and macro-financial risks.

Economies with high deficit are always remain cautious about external imbalances as sustainability of the deficit faces a risk from sudden geo-political shocks that may cause a sudden stop or reversals of capital inflows.

The Reserve Bank said the external vulnerability indicators worsened further in the third quarter. India's third quarter current account deficit was financed by capital inflows without any reserve depletion. The central bank underscored the need for structural adjustment in the current account through productivity enhancements to boost competitiveness.

Source: The Economic Times

Disclaimer: All news stories and content sourced from freely available material on the internet. All sources are acknowledged.

Today's Hot Stories - May 02, 2013 - PT education

Today's Hot Stories - May 02, 2013

10 Headlines for Today

(1) Sarabjit's body to be flown back, Pak orders judicial probe
(2) Sikhs protest outside Sonia Gandhi's house against Sajjan Kumar's acquittal
(3) Americans hold nationwide rallies for immigration reform
(4) Uninor appoints Yogesh Malik as CEO
(5) FDI in retail is a boon: Supreme Court
(6) ADB may lower lending to India
(7) IPL: Warner rocks again, DD stay alive
(8) Bayern humiliate Barca to reach final
(9) Ferrer beats Roger-Vasselin in Portugal
(10) Google doodle celebrates Satyajit Ray's 92nd birthday

5 Stories for Today

(1) Don't bare legs in India, Asian Development Bank warns delegates
(2) We will stand by Syria: Hizbollah
(3) Infosys tries new recipe for revival
(4) Drugs Patent: Access to medicine and innovation not mutually exclusive, says US
(5) Subsidy on fertilizers slashed

(1) Don't bare legs in India, Asian Development Bank warns delegates


When in India, don't show bare legs or wear short dresses. This could hurt Indian sensibilities and may lead to sexual harassment.

That's the advice being offered by Manila-based multilateral agency Asian Development Bank (ADB), which is hosting its 46th annual meeting in Greater Noida, to more than 4,000 delegates.

The annual meeting is being held in the India-Expo mart in Greater Noida and several of the delegates from nearly 67 countries are staying in hotels in Noida, Greater Noida and Delhi. The meeting will discuss issues related to the global economy, Asian challenges and development.

The advisory posted on the general information section on the ADB website says Indians are very conservative about dress and advises women to dress modestly, with legs covered.

"Trousers are acceptable, but shorts and short skirts are offensive to many. If you want to keep cool in the Indian sun, cotton clothing is essential along with a comfortable pair of open sandals," says the advisory.

Clicking on the 'read more' section takes one to a website TravelIndia.com, which elaborates on what is acceptable and what should be avoided while travelling in India. Among other subjects, it covers taking pictures, visiting religious places, eating, concept of time, tipping, siesta and common faux pas.

It also has a special section for gay travellers. "While travelling in India you might see a lot of men holding hands. This should not be taken as a sign of their sexual orientation, in all probability they are not gay," the advisory says.

"Most gays in India are of the closet kind as Indian society does not accept homosexuality. Declaring yourself to be a homosexual is a sure way of being disowned by family and friends."

It goes on to say that in big cities and amongst the higher strata of the society, homosexuality is not considered abnormal behaviour any more but cautions about showing affection in public.

"You would be better off avoiding public displays of affection such as cuddling and kissing each other in public (not just for gays). Homosexual relations between men are illegal in India and the penalty according to the Indian Penal Code is seven years rigorous imprisonment. However, had this law been enforced strictly, the Indian prisons would have been overflowing by now," the website says.

In the section titled: "Common Faux Pas", it says that kissing and embracing are regarded in India as part of sex and asks travellers to not engage in these activities. "It is not even a good idea for couples to hold hands," it says.

The advisory on eating says that when eating or drinking, your lips should not touch other people's food - "jutha or sullied food is strictly taboo."

"Don't, for example, take a bite out of a chapati and pass it on. When drinking out of a cup or bottle to be shared with others, don't let it touch your lips, but rather pour it directly into your mouth. This custom also protects you from things like hepatitis. It is customary to wash your hands before and after eating," the advisory says.

Source: The Times of India

(2) We will stand by Syria: Hizbollah


The conflict in Syria has inched closer to a regional conflagration with the bold declaration by Hizbollah that it would prevent the armed opposition and its allies from toppling the government of President Bashar al-Assad.

In his fiery address on Tuesday, where he delivered a thinly veiled message for possible intervention, Hizbollah chief Sheikh Hassan Nasrallah seemed to allude to Iran and Russia as Syria’s real friends who would not hesitate to support Mr. Assad.

“Syria has real friends in the region and the world that will not let Syria fall in the hands of America, Israel or Takfiri groups [referring to groups who believe they are the only true Muslims], they will not let this happen,” he said, adding, “I say this based on information rather than wishful thinking.”

War clouds thickened over the region after The Washington Post reported on Wednesday that President Barack Obama is preparing to send lethal weaponry to the Syrian opposition.

Talks with Russia

Sheikh Nasrallah’s assertions followed his two rounds of talks with Mikhail Bogdanov, Russia’s West Asia envoy, who had spent quality time last week in Beirut. Arriving in there from Tehran, Mr. Bogdanov held talks with with Mohammad Raad, the Hizbollah representative in the Lebanese Parliament.

The website al-Monitor reported that the talks focused on establishing, behind the international scenes, “a formula to link the political solution to the crisis in Bahrain with the crisis in Syria”.

United stance

Besides, Moscow intended to reinforce a united stance for resolving the Syrian crisis on the basis of Geneva agreement, which supported an internally-driven process of political transition in Syria, without demanding Mr. Assad’s exit.

Sheikh Nasrallah underscored that the Syrian regime cannot be toppled militarily and “until the moment no Iranian forces have entered Syria”.

The Hizbollah leader stressed that the resolution of the crisis was necessary as its continuation had serious repercussions for the region. He observed that the “Palestinian cause is facing the danger of serious elimination”, because of the bloodletting in Syria. “The Syrian situation also has an effect on Lebanon, Iraq, and the whole region.”

Sheikh Nasrallah pointed out that the assault on Syria served multiple objectives, including the capture of the country’s oil and gas fields — some of which have been discovered off-shore recently.

“The objective behind what is happening in Syria is not only to remove Syria from the axis of resistance. One can confidently say that the objective of all those behind the unrest in Syria is to destroy the Syrian state, people, society, and army in order to turn Syria into a failed state that cannot make decisions concerning its oil, gas, and assets.”

He declared that Hizbollah would defend people targeted by the Syrian opposition in the area of Qusayr along the border with Syria, as the Lebanese state had failed to protect all its citizens. The Hizbollah leader said only a political dialogue could defuse the Syrian crisis. “I tell the Arab and Muslim peoples and all Syrians that whoever wants to rescue Syria ... that they must seek political dialogue and a political settlement.”

Source: The Hindu

(3) Infosys tries new recipe for revival


NR Narayana Murthy, who founded Infosys with half-a-dozen friends and a capital of only Rs. 10,000 in 1981, ever the man to convince people with a mix of charm and wisdom, used to say that reinventing a company was like changing the wheels of an aircraft mid-flight. The company has been going through just that in recent years, with the rise of its Infosys 3.0 story. While the financial crisis and the recession it spawned across the West made eager customers turn thrifty, emerging technologies have accentuated the challenge. As an industry insider puts it, what cost $20 million to make in the mainframe era is now wanted by customers at 2.5% of the same cost as a mobile application.

With the miniaturisation of technology, even mid-sized companies such as MindTree Consulting can swim with giants like Infosys in the emerging alphabet soup called SMAC (social, mobility, analytics and cloud) that involves everything from deciphering Facebook updates for brands and developing tablet apps to sundry data crunching.

“The industry is getting more and more commoditised and clients are trying to extract the most of its vendors,” admits Infosys board member V. Balakrishan, a long-time Infosys executive. “You do go through tough times.”

Narayana Murthy rattled the stock market 12 years ago, when, after the Internet “dotcom” meltdown, he said there was “fog on the windshield.”

Sounding cautious to the market is not new for the company that has prided itself on under-promising and over-delivering.

But is this time different?

Those not happy with SD Shibulal’s less-than-flamboyant style seem to think so. Four months before he formally took over as CEO in 2011, he re-organised the business into four industry verticals--financial services and insurance (FSI); manufacturing; energy, utilities, communications and services (ECS); and retail, consumer products, logistics and life sciences.

There are those who think this shifted a sales-oriented culture into something more staid that hurt revenue growth. Infosys now lags TCS by $3 billion in revenues. Board member Ashok Vemuri, a former banking expert, now looks after manufacturing as a vertical head, while BG Srinivas runs insurance after specialising in supply chains. For Infosys, this could be the job-rotation route to readying potential CEOs.

There are sceptics who question the changes, and analysts who think this can slow down work.

“I would think the management restructuring has had an impact. But I don’t think this management is incapable,” said Dipen Shah, IT analyst at Kotak Securities.

Shah notes that both TCS and HCL Technologies have shown decisively stronger volume growth and “clearly superior execution” that needs to be taken note of.

Infosys watchers say TCS also has exposure to crisis-hit financial service clients but has done well. It could be that with a presence in 44 countries against the 30 that Infosys has, TCS has a wider sales footprint. Also, TCS, HCL and Cognizant are led by marketing honchos -- something that may give an edge of aggression in difficult times. But you could also say the diligent, caring Shibulal builds deep relations in difficult times.

HCL has clearly stolen a march with its infrastructure management practice that helps companies manage data centres better -something that is not adversely affected by recession.

“Different companies have different revenue profiles. Our dependence on discretionary spend is definitely higher than other companies,” Shibulal admits.

This, however, is not good enough for those who say the new story is yet to grow wings.

The PPS (products, platforms and solutions) business that relies on intellectual property to boost profit margins is hardly 6% of the revenue, notes Angel Broking’s analyst Ankita Somani.

“It will take some time for us to see substantial change. What has been talked about is so qualitative. We have to see the fruits of what they have done,” she said. “Performance issue is definitely there.”

Balakrishnan admits “scalability is a challenge” - and he adds that this includes entry-level staff training, which is now stretched to six months from the earlier three because the new crop of workers need more hand-holding.

Betting more on reusuable intellectual property to boost margins, Infosys has set up a $100 million fund for products and platforms. These steps are not overnight successes but the company is moving fast.

Earlier this week, Infosys announced a partnership with IPsoft, which industry researcher Forrester’s analyst Fred Giron said takes “automation efforts to a whole new level.”

Infosys staffers bound by company rules are reluctant to talk, but the buzz is clearly about not seeing clear career growth paths. And that makes them comfortable.

“They (management) are struggling to articulate to shareholders and employees what this 3.0 is all about,” said a former Infosys employee. “They are confident but somehow they cannot communicate this.”

Optimism also lurks in the form of a $4.3 billion cash chest - that’s about R24, 000 crore. Analysts say even a small acquisition can trigger the stock. The company however, says it will acquire competencies, not size or revenues, through its buyouts.

Balakrishnan says the current recovery in the US economy, which accounts for 63% of Infosys revenues, augurs well.

“There is a lot of pent-up demand that is waiting to come,” he said.

And asked to say why critics still abound, he said: “Infosys is like the elephant and the blind men (tale). Everybody says something but only people in Infosys know what’s on.”

Right now, the blind men outside feel they are playing poker with what was once the unquestionable darling of India’s software prowess.

Source: Hindustan Times

(4) Drugs Patent: Access to medicine and innovation not mutually exclusive, says US


Expressing concern over the recent order by Indian Supreme Court on the patent of a cancer drug, the US has said the access to medicine and innovation are not mutually exclusive.

"On the Indian Supreme Court decision regarding pharmaceutical patents, I think it's fair to say that the governments of India and the US share the goal of providing safe, affordable medicines. The US believes that access and innovation are not mutually exclusive," a senior official from the US Trade Representative (USTR) said.

Speaking on condition of anonymity, the USTR official was briefing reporters after the release of a Congressional-mandated report on violations of intellectual property rights by countries across the globe.

"We can increase access to medicines and at the same time support innovation through development of new and improved drugs. We're very interested in working within it to achieve right policy mix to maximise both innovation and access. And supporting innovation is, in our view, an important part of that policy mix," the official said.

Putting India along with China and Russia and seven other countries in its "Priority Watch List" on the issue of violation of the intellectual priority watch, the USTR report urged India to reconsider how it can meet legitimate domestic policy objectives by fostering, rather than undermining that innovation climate.

The USTR, in its report, designated Ukraine a priority foreign country (PFC) under the 'Special 301' statute due to severe deterioration of enforcement in the areas of

government, use of pirated software and piracy over Internet, as well as denial of fair and equitable market access through authorisation and operation of copyright collecting societies.

USTR, in its report expressed, concerns about misappropriation of trade secrets in China, and incremental progress on a few of China's many other significant IPR and market access challenges. It also added Barbados, Bulgaria, Paraguay, and Trinidad and Tobago to the 'Watch List' due to specific problems identified in the report.

On India, the USTR said that the recent actions by the Indian Government have raised serious questions about the innovation climate in the country and risk hindering the country's progress towards an innovation-focused economy.

Noting that in pharmaceutical sector, some innovators are facing serious challenges in securing and enforcing patents in India, the report urged New Delhi to adopt policies that support both cutting-edge innovation to address important health challenges and promote a robust generic market.

"The US is concerned that the recent decision by India's Supreme Court with respect to prohibition on patents for certain chemical forms absent a showing of 'enhanced efficacy' may have the effect of limiting the patentability of potentially beneficial innovations," the report said. Such innovations will include drugs with fewer side effects, decreased toxicity, or improved delivery systems, it added.

"Moreover, the decision appears to confirm that India's law creates a special, additional criterion for select technologies, like pharmaceuticals, which could preclude issuance of a patent even if the applicant demonstrates that the invention is new, involves an inventive step, and is capable of industrial application," USTR said. Stating that the US will also continue to monitor closely developments concerning compulsory licensing of patents in India, the report said New Delhi's decision to restrict patent rights based, in part, on the innovator's decision to import its products rather than manufacture them in India establishes a troubling precedent.

"Unless overturned, the decision could potentially compel innovators outside India, including those in sectors well beyond pharmaceuticals, such as green technology and

information and communications technology, to manufacture in India in order to avoid being forced to license an invention to third parties," it said.

- See more at: http://www.indianexpress.com/news/drugs-patent-access-to-medicine-and-innovation-not-mutually-exclusive-says-us/1110489/2#sthash.XeTt2O6Z.dpuf

Source: The Indian Express

(5) Subsidy on fertilizers slashed


The move may save the government around Rs.5,000 crore

The Union Cabinet, on Wednesday, gave its go-ahead for slashing the subsidy on phosphatic and potassic (P&K) fertilisers for this fiscal.

The move is expected to save the government around Rs. 5,000 crore.

The decision to cut subsidy has been taken in view of falling global prices.

Despite the reduction in subsidy, the government is hopeful that the maximum retail price (MRP) of di-ammonium phosphate (DAP) and Muriate of Potash (MoP) would come down by Rs. 1,500 and Rs. 1,000 per tonne, respectively.

“The Cabinet has taken a very important decision on P&K fertilisers. The total subsidy outgo for P&K fertilisers for 2013-14 will be lower by 15 per cent because of decline in global prices. Actually, outgo of subsidy cost will depend on consumption,” Finance Minister P. Chidambaram told reporters after a Cabinet meeting.

The Fertiliser Ministry estimates the subsidy on P&K fertilisers to come down by Rs. 4,500-5,000 crore to around Rs. 27,500 crore in this fiscal. The government has been implementing the NBS policy on P&K fertilisers since April 2010, under which it announces a fixed subsidy for 22 grades of P&K fertilisers and their MRP is freed.

Mr. Chidambaram said the subsidy on nitrogen had been reduced to Rs. 20.875 per kg from Rs. 24 per kg last year. Similarly, the subsidy for phosphate had been cut to Rs. 18.679 per kg from Rs. 21.804 per kg last year, while the subsidy on potash had been slashed to Rs. 18.333 per kg from Rs. 24 per kg. However, the subsidy for sulphur has been kept unchanged at Rs. 1.677 per kg for this fiscal. “This subsidy will be the lower than the rates approved for 2012-13. As a result, subsidy on DAP will be Rs. 12,350 per tonne, and on MoP it would be Rs. 11,300 per tonne,” he added.

The Fertiliser Ministry would put in place a mechanism to ensure that a lowered MRP is fixed by manufacturers , he added.

“If there is any violation or contravention, there will be a monitoring mechanism which will take corrective steps to ensure that the benefit is passed on to farmers,’’ he said. The country requires around 29-30 million tonnes of DAP, MoP and complex fertilisers. The bulk of this requirement is imported.

According to the NBS policy, the government announces NBS rates for various nutrients, namely nitrogen, phosphate , potash and sulphur , for P&K fertilizers covered under the policy every year.

Source: The Economic Times

Disclaimer: All news stories and content sourced from freely available material on the internet. All sources are acknowledged.