Today's Hot Stories - January 15, 2013 - PT education

Today's Hot Stories - January 15, 2013

10 Headlines for Today

(1) Nitin Gadkari to stay BJP boss
(2) Rising suicides in Himachal alarm authorities
(3) UN backs French intervention in Mali
(4) Sensex breaches 20,000-mark after two years, turns flat
(5) Maruti launches new Wagon R at Rs 3.58L
(6) Qatar Airways may buy stake in SpiceJet
(7) Ruthless South Africa show Test cricket supremacy
(8) Federer cruises into Australian Open second round
(9) Tennis: Ice-cool Murray crushes Dutch Haase
(10) Mahakumbh begins, lakhs take holy dip

5 Stories for Today

(1) LoC tension: Govt cautions against jingoism
(2) Barack Obama backs gun limits, concedes tough fight ahead
(3) SC asks govt reserve price for 2G auction
(4) Toyota retakes global auto sales crown from GM
(5) Remarkable economic transformation in India, China: Federal Reserve chairman

(1) LoC tension: Govt cautions against jingoism

Government on Tuesday cautioned against "jingoism" after the BJP upped the ante on the issue of beheading of an Indian soldier by Pakistani army along the Line of Control.

"Professional armies respect rules of engagement. Transgressions are surmounted through tactical responses and not driven by jingoism," information and broadcasting minister Manish Tewari said on micro-blogging site Twitter.

His comments came a day after BJP leader Sushma Swaraj said that if Pakistan does not return the head of martyred soldier Hemraj, India should get at least ten heads from the other side.

After visiting Hemraj's family along with party president Nitin Gadkari and leader Rajnath Singh yesterday, Swaraj had said, "The question is: will we sit without any reaction and engage in a dialogue?... That is why we have said that government should take some tough measures".

NSA meets Sushma, Jaitley

National security advisor Shivshankar Menon on Tuesday met BJP leaders Sushma Swaraj and Arun Jaitley to brief them on developments along the Line of Control (LoC).

The meeting took place at Sushma Swaraj's residence.

Amid tension with Pakistan on the Line of Control (LoC), Prime Minister Manmohan Singh on Monday spoke to BJP leaders Arun Jaitley and Sushma Swaraj and assured them that the opposition would be kept in loop over the situation.

(2) Barack Obama backs gun limits, concedes tough fight ahead

President Barack Obama endorsed controversial bans on assault weapons and high-capacity ammunition magazines, as well as stricter background checks for gun buyers but conceded he may not win approval of all in a Congress reluctant to tighten restrictions.

Obama said lawmakers would have to "examine their own conscience'' as they tackle gun control legislation after the horrifying Connecticut school shootings last month. The influential National Rifle Association and other pro-gun rights groups are fiercely opposed tighter gun laws.

Obama spoke Monday at a White House news conference one month after the Dec. 14 elementary school rampage, which ignited a national discussion on preventing mass shootings. The 20-year-old shooter killed 20 children and six adults at the school before committing suicide.

The president said he would unveil a comprehensive roadmap for curbing gun violence within days, based on recommendations from VP Joe Biden, who spent weeks holding talks with gun victim's groups, the entertainment and video game industries and gun owner advocacy groups.

Obama's plan is expected to include both legislative proposals and steps Obama can implement by himself using his presidential powers.

But the most sweeping and contentious elements, including an assault weapons ban, will require approval from a Congress that has been loath to tackle gun control legislation for more than a decade. The politically powerful NRA has vowed to fight any measure that would limit access to guns and ammunition, a hardline position that could sway some Republicans and conservative Democrats.

Despite the opposition, Obama said he would "vigorously pursue'' measures to tighten gun laws.

The president's new resolve follows a lack of movement in tackling gun violence throughout much of his first term, despite several high-profile shootings. He called the massacre at Sandy Hook Elementary School in Newtown the worst day of his presidency and vowed to take action.

Parents of the slain Connecticut children added their voices to the national dialogue Monday. Members of the newly formed group Sandy Hook Promise called for an open-minded discussion about a range of issues, including guns, mental health and safety in schools and other public places.

And lawmakers in New York state were poised to vote Monday night to enact tougher anti-violence legislation in what would be the nation's first gun control measure approved since the school shootings.

People familiar with closed-door negotiations told The Associated Press a tentative deal was struck over the weekend following a push last week by Gov. Andrew Cuomo. The people spoke on condition of anonymity because the proposal had not been discussed among rank and file legislators.

The package hits on several fronts including a much tighter assault weapon ban and restrictions on ammunition and the sale and storage of guns, according to final provisions obtained by The Associated Press. The package would also create a mandatory police registry of assault weapons under a more restrictive definition.

White House officials believe moving swiftly on gun proposals at a national level, before the shock over the Newtown shooting fades, gives Obama the best chance to get his proposals through Congress.

Officials said Obama and Biden met Monday afternoon to discuss the vice president's recommendations. Ahead of that meeting, Biden huddled with a dozen House Democrats who have formed their own gun violence task force and whose political muscle will be needed to push legislation through Congress.

The president, without mentioning the NRA, said some gun rights groups have "a pretty effective way of ginning up fear on the part of gun owners that somehow the federal government's about to take all your guns away.''

Seeking to ease those fears, Obama insisted that responsible gun owners who have weapons for protection or hunting "don't have anything to worry about'' under the proposals he will push.

The NRA and other pro-gun groups insist that gun control conflicts with the Second Amendment of the U.S. Constitution, which guarantees the right of citizen to bear arms. Others say the country's founders more than two centuries ago could not have imagined the kind of high-powered guns available now.

The assault weapons ban, which Obama has long supported, is expected to face the toughest road. Congress passed a 10-year ban on the high-grade military-style weapons in 1994, but supporters didn't have the votes to renew it once it expired in 2004.

Senate Majority Leader Harry Reid, a Democrat, on Friday predicted that a ban might win Senate approval but he doubted it could pass in the Republican-led House.

Obama will also need congressional help to limit high-capacity ammunition magazines, like the ones used by the Newtown shooter, and to require background checks for anyone seeking to purchase a gun. Some gun control advocates, including The Brady Campaign to Prevent Gun Violence, are urging Obama to make the broader background checks his top priority, believing it has the best chance of winning congressional approval.

The Brady Campaign said some 40% of gun sales happen with no background checks, such as at gun shows and by private sellers over the Internet or through classified ads.

Among the executive actions Biden is believed to have recommended to Obama are tougher penalties for people who lie on background checks, elevating gun trafficking to a felony charge and ending limits that make it harder for the federal government to research gun violence.

The president's proposals are also expected to include steps for improving school safety and mental health care, as well as recommendations for addressing violence in entertainment and video games. Pro-gun rights groups, including the NRA, have long insisted that insufficient mental health care and violent images are more to blame for mass shootings than the availability of guns.

(3) SC asks govt reserve price for 2G auction

The Supreme Court on Monday asked the Centre to provide in a sealed cover the reserve price it has decided for the second round of auction of 2G spectrum scheduled for March 11.

The government had decided to lower the reserve price going by the poor response to the first round of auction of spectrum licences, which was available after cancellation of licences on February 2 last year by an apex court judgment. The government had decided to slash the reserve price for 1800 MHz band by 30% from what was stipulated for the auction in November last year. However, it has not yet made public the reserve prices for 800 MHz and 900 MHz bands. While 800 MHz was part of the earlier auction, the 900 MHz band has been added to the auction process for the first time.

A bench of Justices G S Singhvi and K S Radhakrishnan told the government that slashing the reserve price for the second round of auction was bound to generate more litigation. "Those who participated in the first round of auction could seek inter se parity with the others who are going to benefit from the second round of auction," it said. The bench asked senior advocate P P Rao, who appeared for the Centre, to furnish details of the reserve price in a sealed cover and posted the matter for hearing on February 4.

(4) Toyota retakes global auto sales crown from GM

The Japanese company sold 9.7 million cars and trucks worldwide in 2012, although it's still counting. GM sold 9.29 million. Both companies saw higher sales.

GM was the top-selling carmaker for more than seven decades before losing the title to Toyota in 2008. But GM retook the sales crown in 2011 when Toyota's factories were slowed by an earthquake and tsunami in Japan. The disaster left Toyota dealers with few cars to sell. The company has since recovered.

Toyota's comeback is only part of the story, said Jeff Schuster, senior vice president of forecasting for LMC Automotive, an industry forecasting firm. The company also has rolled out new vehicles, such as the revamped midsize Camry, the most popular vehicle in the United States.

GM's global sales were up 2.9 percent last year. Toyota sales rose 22 per cent.

Schuster expects Toyota to keep the lead over GM this year as it launches a new Corolla.

"I think that's going to be enough to keep them in their position," he said.

GM is also contending with a stronger Volkswagen. It narrowly edged out the fast-growing German company for second place in 2012, when VW sold a record 9.1 million vehicles.

Volkswagen, with fast-selling vehicles like the Passat midsize sedan and Jetta compact, closed in on GM with an 11 percent sales increase across the globe. The United States, where VW Group sales rose 34 percent, led the way.

Schuster expects GM to hold off Volkswagen in 2013 because VW has more of a presence in Europe, where sales are falling as the region heads struggles with high unemployment and weak economies.

GM has said in the past that it's more concerned with profitable growth than the global sales race.

(5) Remarkable economic transformation in India, China: Federal Reserve chairman

Emerging markets like India and China are witnessing a remarkable transformation, despite a slowdown in economic growth, lifting millions of people out of poverty, Federal Reserve Chairman Ben Bernanke has said.

"In the emerging markets, you have a variety of different stories, but I think the fundamentals there, in the emerging markets, are pretty good, and even if there's some moderation of growth in some countries, we are seeing overall a rather remarkable transformation of places like China and India, which has been the biggest anti-poverty programme in history," he said yesterday.

"The growth in those countries has lifted many millions of people out of poverty. So, I think growth will proceed in those areas as well, with each country, each region -- Latin America, Asia -- dealing with different sets of issues," he said in his remarks on 'Monetary Policy, Recovery from the Global Financial Crisis and Long-Term Challenges Facing the US Economy' at the University of Michigan, Ann Arbor.

Globally, he said, the different parts of the world that are facing slowdowns, each has to address its own set of issues.

"In Europe, some progress has been made in addressing their sovereign debt and banking issues that they have. The European Central Bank has taken some important steps to try to stabilise the financial markets there have been helpful," he said.

"They're working on improving their fiscal arrangements, both to create longer-term sustainability in individual countries, but also to put up a set of agreements under which countries will be willing to work with each other on fiscal matters," Bernanke said.

Today's Hot Stories - January 14, 2013 - PT education

Today's Hot Stories - January 14, 2013

10 Headlines for Today

(1) Won’t remain passive when attacked: Army chief
(2) Lakhs throng confluence of Ganga, Yamuna, Saraswati
(3) UPS dumps $6.9-billion TNT Express takeover bid
(4) Retail inflation rises to 10.56 per cent
(5) Amid volatile rupee, NRI deposits nearly double to $11.24 bn, says RBI data
(6) Swatch to buy luxury brand Harry Winston for $1 billion
(7) Former Test cricketer Rusi Surti dead
(8) Thirimanne’s ton leads Sri Lanka past Australia
(9) Women’s (under-20) hockey: Karnataka in semifinals
(10) NASA buys private inflatable room for space station

5 Stories for Today

(1) Govt. postpones GAAR implementation by 2 years
(2) India-Pak flag meeting fails to ease border tension
(3) TRAI says existing tariff regime to continue
(4) Nokia ‘Xpress’ browser faces privacy concerns
(5) The challenge of gold

(1) Govt. postpones GAAR implementation by 2 years

Giving a big relief to overseas investors, the government has postponed implementation of controversial GAAR provisions by two years to April 1, 2016.

“Having considered all the circumstances and relevant factors, the government has ...decided that provisions of Chapter 10A of the Income Tax Act (dealing with GAAR) will come into force from April 1, 2016 as against April 1, 2014,” Finance Minister P. Chidambaram said in New Delhi on Monday.

The General Anti Avoidance Rules (GAAR) provisions, introduced by the then Finance Minister Pranab Mukherjee in the Budget 2012-13, were aimed at checking tax avoidance by overseas investors. The proposal, however, generated controversy, with investors expressing apprehensions that it would result in unnecessary harassment by tax authorities.

The decision to postpone the implementation, Mr Chidambaram said, follows the recommendations of the Shome Committee which was set up by Prime Minister Manmohan Singh in July last year to look into investor concerns.

The government, Mr Chidambaram further said, has accepted major recommendations of the panel with some modifications.

“The modifications that we have done are fair, non-discriminatory, just and strike a balance between interest of revenue and interest of investors. So, all apprehensions should now be addressed,” he said.

(2) India-Pak flag meeting fails to ease border tension

Brigade-level meeting lasts only 15 minutes; India conveys outrage over the killing of two soldiers, no discussion on restoration of cross-LoC trade and travel

The Brigade-level flag meeting between Indian and Pakistani authorities at Chakan Da Bagh near the Line of Control in Poonch on Monday afternoon ended without any breakthrough.

Official sources revealed to The Hindu that the meeting on the Zero Line between Commander of the 10th Brigade, Brig. T.S. Sandhu and his Pakistani counterpart, lasted just 15 minutes. The two were joined by over a dozen of the field commanders from the two sides.

Brig. Sandhu is understood to have conveyed India ’s deep outrage over the brutal killing of two soldiers of the 13 Rajputana Rifles regiment, allegedly by a joint Border Action Team of Pakistan’s 29 Baloch regiment commandos and militants of Lashkar-e-Taiba, near Chattri post in Mendhar area of Poonch on January 8, 2013.

Brig. Sandhu made it clear to the other side that India reserved the “right to retaliate” until there was publicly an apology besides returning of the severed head of Lance Naik Hemraj and the weapons looted from the two slain soldiers, the sources said. He also demanded an assurance that there would be no repeat of such an “unprecedented and unprofessional heinous act” and made it clear that the Indian Army would respond to such a violation of the November 2003 ceasefire with “appropriate and quick response”, they added.

It was not immediately clear as to what was the response from the other side.

Sources said that, contrary to expectations, there was no discussion on restoration of cross-LoC trade and travel that remains suspended since January 10. As many as 65 trucks loaded with perishables have been returned to Poonch and Rajouri and over a hundred passengers have been stranded on either side of the LoC in the Jammu-Poonch sector on the Indian side and the Hajeera-Rawalakote area across the border.

Cross-LoC travel is handled on Mondays and trade on the four following days at Chakan Da Bagh in Jammu and Salamabad, Uri, in Kashmir valley. However, the skirmishes since January 6, when a Pakistani soldier reportedly died in the Indian retaliation across Charonda village, trade and travel operation has not got disrupted on Srinagar-Uri-Muzaffarbad route.

Brig. Sandhu proceeded to the district headquarters without speaking to the media on his return from the Trade Facilitation Centre at Chakan Da Bagh. Unconfirmed reports said that he drove all the way to the Rajouri-based headquarters of the 25 Division where the Divisional Commander would hold a meeting with all brigade commanders of the Poonch-Rajouri belt.

(3) TRAI says existing tariff regime to continue

Regulator TRAI has decided to continue with the existing tariff regime for the time being that allows operators to decide on charges for telecom services.

“TRAI sought views of stakeholders on the need to review the existing regime of tariff forbearance... Taking into account the feedback received from stakeholders, the Authority has decided to continue with the existing tariff regime for the time being,” TRAI said in its annual report.

The Telecom Regulatory Authority of India (TRAI) had started consultation process in February 2012 to review existing tariff regime which is under forbearance except for rural land line services, national roaming and leased circuits.

Forbearance of tariff for a service means TRAI has not, for the time being, notified any tariff for that particular telecommunication service and the service providers are free to fix tariff for such service.

The consultation paper ‘Review of Policy of Forbearance in Telecom Tariff’ was floated by TRAI after telecom companies increased call and mobile Internet services rates in 2011.

Telecom experts were of the view that the Supreme Court’s cancellation of 122 telecom licences has reduced competition in the market that can lead to increase in telecom tariffs.

In mid 2012, telecom operators openly said multi—fold high spectrum price recommended by TRAI can lead to increase in telecom tariff by up to 100 per cent.

The telecom regulator had sought comments from sectoral players to review the existing policy and see if it was required to put a ceiling on tariffs.

“Some of the recent developments indicate that there is perhaps a need to review the policy of forbearance in telecom tariffs,” TRAI had said in its consultation paper.

In the annual report TRAI said, “Views were also sought on a suitable tariff framework for data services” and based on the comments received from stakeholder, it decided to continue with existing tariff regime.

Telecom major Airtel and Vodafone had recently raised tariff of their 2G Internet service by up to 30 per cent. The consultation paper was opposed by telecom operators.

(4) Nokia ‘Xpress’ browser faces privacy concerns

While the ‘Xpress’ browser is quick and used on resource-constrained devices that cannot run a full-fledged web browser, it appears that it decrypts data that flows through its ‘HTTPS’ connections – giving the company the ability to peep at connections set up for banking session, encrypted email and the like.

The fast-loading default browser used on most Nokia mobile handsets, including its ‘Asha’ range, appears to be a double-edged sword.

While the ‘Xpress’ browser is quick and used on resource-constrained devices that cannot run a full-fledged web browser, it appears that it decrypts data that flows through its ‘HTTPS’ connections – giving the company the ability to peep at connections set up for banking session, encrypted email and the like.

“From the tests that were performed, it is evident that Nokia is performing a ‘man in the middle attack’ for sensitive HTTPS traffic originating from their phone – and, hence, they have access to information which could include user credentials to various sites such as banking and social networking,” said Gaurav Pandya, a security analyst at Unisys Global Services India.

Nokia, in a statement, however has rejected claims that it might be spying on its user’s encrypted Internet traffic but admitted that it temporarily decrypts secure HTTPS connections for the benefit of customers.

“The compression that occurs within the browser means that users can get faster web browsing. When temporary decryption of HTTPS connections is required by our proxy servers, it is done in a secure manner. Claims that we would access complete unencrypted information are inaccurate,” a company spokesperson said.

(5) The challenge of gold

Can policy actions by themselves reduce the demand for gold in India? The craving for gold, both as jewellery as well as an investment option, has reached such dimensions that the government and the Reserve Bank of India (RBI) are working in tandem to moderate the domestic demand. The point has been made several times before, including by the Finance Minister, P. Chidambaram, recently that the demand for gold has been such that the macro economy has been adversely impacted. The widening of the trade deficit and with it the current account deficit (CAD) is one obvious fall-out. Recently, the CAD seems spinning out of control to touch 5.2 per cent of gross domestic product (GDP) during the second quarter (July-September of 2012-13). Gold and petroleum imports have been behind the high trade imbalance. Both have remained inelastic. Policy-makers have had very limited success in moderating the imports of both.

A working group constituted by the RBI to study the issues connected with gold and gold loans by non-banking finance companies (NBFCs) has just submitted its report (see RBI’s website). Apart from addressing the key question as to whether the large gold imports pose a threat to macro-economic stability, the group has sought to examine whether there are any systemic issues arising out of the inter-connectedness of some banks and gold loans of NBFCs.

Necessary moderation

Moderation of gold imports is necessary for the sake of external sector’s stability. However, in the past, gold imports have not strictly been amenable to policy changes. They have also been price inelastic for a variety of reasons. The banking system has a definite role to play although its share of canalised gold imports has been declining.

One promising remedy would be “financialisation” of gold, both the imported component as well as the domestic stock. Banks and institutions need to introduce attractive savings packages based on gold. Simultaneously, alternative avenues for investment should be made to provide a real rate of return that is higher than what obtains now. Only then can domestic consumers be weaned away, at least partially, from their craving for gold.

Simultaneously, there is a need to monetise the domestic stock of gold. Gold loans are already popular. There is a need to refashion them to safeguard the interests of consumers as well as banks that disburse them directly or through refinancing of NBFCs. Banks can consider accepting gold as collateral for their regular loans.

An opposite view is that since the easy availability of gold loans is a principal factor behind the increased demand for gold, policy measures must aim at reining in such loans. Given the certain appreciation of gold, it pays for even the average person to pledge his or her gold to buy more gold and repeat the cycle. A decent return of around 15 per cent is assured, say experts. That, of course, is an unproductive use of gold.

Obviously, the group is hard-pressed to find “real” solutions to the problem. There is really no magic bullet. In the past, neither higher duty on gold imports nor any other form of restraint has been effective. The Finance Minister has hinted that the duty might be increased. It is doubtful whether that will reduce the demand. Gold trade might shift underground and adopt other illegal channels. India’s jewellery industry is vast and flourishing. Any move to curtail imports of gold will adversely affect the prospects of an industry that has immense export potential as well.

There are very few recommendations of the expert group that might be considered original or novel. The ones that can be implemented need to be taken up. Products such as gold accumulation plan, gold-linked account, modified gold deposit and gold deposit have been suggested by the committee. Most of these obtain in other principal ‘gold’ centres such as Singapore. Basically, these involve an amalgam of the features of existing deposit schemes (example recurring deposit) with the features of gold trading. It goes without saying that banks and others who will operate these schemes should be equipped to handle gold as an investment. While popularising such schemes it must be ensured that the intermediation (bank) charges are kept low and publicised as such.

Breaking status quo

Ultimately, it is a question also of breaking the strong emotional and cultural links that owning gold has in this country. Long before this current craze, in States such as Andhra Pradesh, agricultural gold loans have been extremely popular. In times of crop failures or agrarian distress, gold loans were taken to tide over the crisis. Gold in the hands of individual households might not be large but they came in handy during difficult times. By no stretch of imagination can this be considered speculative demand for gold. It would be good, therefore, if policy-makers recognise the different facets of the current gold craze. From a macro-economic point of view, there is really no permanent solution, except by winning the battle over inflation, and, equally importantly, convincing ordinary people that their investments in conventional bank deposits as well as in those backed by gold yield a real return.

Today's Hot Stories - January 12, 2013 - PT education

Today's Hot Stories - January 12, 2013

10 Headlines for Today

(1) Kapil Sibal warns against foreigners who come to India to do business
(2) JMM seeks more time to form govt
(3) Sri Lankan parliament impeaches chief justice
(4) Exports fall for eighth month in a row
(5) Chidambaram keen to discuss tax case of Vodafone
(6) Boston consulting group names Rich Lesser new president and CEO
(7) Golf: Jeev stays in tied fourth in South AfricaJeev stays in tied fourth in South Africa
(8) NBA: Deng shines as Bulls beat NY Knicks
(9) SFL: Shyam wins welter weight title in style
(10) Run! There is nothing like running

5 Stories for Today

(1) High alert, reports of troop build-up on both sides of Indo-Pak border
(2) North Korea tells China planning nuclear test: Report
(3) Decision on raising LPG cap, fuel price hike soon: Veerappa Moily
(4) Boeing 787 Dreamliner faces review after mishaps: US agency
(5) India 119th on economic freedom index: Report

(1) High alert, reports of troop build-up on both sides of Indo-Pak border

Tension continued to prevail along the Line of Control (LoC) between India and Pakistan on Saturday, a day after cross-LoC firing was reported on at least eight border posts.

There are also reports of a troop build-up on both sides of the border.

Pakistan has so far not responded to requests from India and its army for a flag meeting at the brigade level to de-escalate tension along the LoC.

Indian intelligence intercepts reveal that the Pakistan Army has cancelled all leaves and ordered its troops to report for duty.

According to sources, defence secretary Shashi Kant Sharma and the three service chiefs are likely to brief defence minister AK Antony on Saturday on the latest situation prevailing along the LoC.

The Indian side has been bolstered with the presence of additional Border Action Task Force personnel. Surveillance has been heightened with both the Army and Air Force deploying unmanned aerial vehicles in areas over Poonch and Rajouri sectors.

Sources said Pakistani troops fired intermittently at eight Indian border posts on the LoC in Krishna Ghati and Sonagali around Mendhar sector and Poonch on Friday.

The firing lasted for 20 minutes.

On Friday, India confirmed that Pakistan has suspended cross-border trade.

"As per our understanding, because of some circumstances in one sector, neither trucks nor buses could go," said Syed Akbaruddin, a spokesperson for the Ministry of External Affairs, according to ANI.

Also, Pakistan's foreign secretary Jalil Abbas Jilani summoned India's high commissioner Sharat Sabharwal to protest against "repeated", "unacceptable" and "unprovoked" attacks by the Indian Army which led to the death of a Pakistani soldier on Thursday.

Jilani asked India to "investigate violations of ceasefire by Indian troops" and "emphasised that such unprovoked attacks were against the spirit of the ongoing peace process".

Sabharwal said India's troops undertook "controlled retaliation" in the face of "unprovoked firing".

Pakistan also reiterated its demand for a United Nations Military Observers Group for India and Pakistan (UNMOGIP) probe, but India maintains that that following the Shimla agreement in 1972 and the establishment of the LoC, the UNMOGIP has no relevance or role to play whatsoever.

Prime Minister Manmohan Singh has also been briefed on the tense border situation by National Security Advisor Shiv Shankar Menon.

(2) North Korea tells China planning nuclear test: Report

: A North Korean official has apparently told Chinese authorities that the communist state is planning to conduct a third nuclear test in the coming week, a news report said Saturday.

"We've heard a North Korean official in Beijing told the Chinese side that the North planned to carry out a nuclear test between January 13-20," the Joongang Ilbo daily quoted an unidentified Seoul official as saying. South Korean officials have a policy of not commenting on intelligence matters.

"We're now stepping up surveillance over the Punggye-ri nuclear test site," the official said in reference to the North's only nuclear test site, where tests were carried out in 2006 and 2009.

With the UN Security Council still debating possible sanctions against the North following the launch of a long-range rocket last month, there has been widespread speculation that Pyongyang may carry out a third nuclear test.

However, Professor Yang Moo-Jin of the University of North Korean Studies in Seoul said there were "no signs of a nuclear test being imminent".

"Chances are slim that the North might push ahead with a nuclear test in this winter season, especially when China is insisting on a moderated response to the rocket launch to prevent a third nuclear test taking place," Yang told AFP.

Last month a US think-tank citing satellite photos said the North had repaired extensive rain damage at the nuclear test site in the northeast of the country and could conduct a detonation on two weeks' notice.

The US-Korea Institute at Johns Hopkins University said satellite photos as recent as December 13 showed Pyongyang was determined to maintain a state of readiness at Punggye-ri.

South Korea's unification minister Yu Woo-Ik told a parliamentary committee last month it was "highly probable" the North would likely follow up the successful rocket launch with another nuclear test.

"Judging from analysis of intelligence, significant preparations have been made," he said.

North Korea had a track record of conducting nuclear tests following missile launches, which were aimed at developing a delivery system for nuclear warheads, Yu said.

The North's previous nuclear tests were both carried out within months of long-range rocket launches.

Pyongyang insists the launch was a purely scientific mission aimed at placing a polar-orbiting earth observation satellite in space, but most of the world saw it as a disguised ballistic missile test.

(3) Decision on raising LPG cap, fuel price hike soon: Veerappa Moily

The government will soon take a decision on raising the cap on subsidised cooking gas cylinders and increasing prices of diesel and liquefied petroleum gas (LPG), Petroleum and Natural Gas Minister Veerappa Moily said.

Moily said the government was seriously considering the recommendations of the Kelkar Committee, which proposed raising diesel, kerosene and cooking gas rates in a staggered manner and linking diesel prices with international rates by next fiscal year.

"Expect a decision (on raising cap on subsidised LPG supply and fuel price hike) as quickly as possible," he told reporters after announcing the ministry's move to allow consumers to switch cooking gas distributors like cellphone users change their service provider. ET first reported about it on November 15.

Government officials have said in the past that the oil ministry has proposed to raise the cap on supply of subsidised cooking gas cylinders from six to nine, with about Rs 50 per unit price hike and to increase diesel prices by less than Re 1 a litre per month to bring it on par with market prices in the next 10-15 months. Moily did not share details of his ministry's proposal.

The finance ministry is keen to reduce the subsidy burden. Oil companies have estimated that if they had sold fuel at international rates they would have gained additional revenue of Rs 1.63 lakh crore in the current fiscal year.

Moily said the government was committed to ensure smooth supply of cooking gas to consumers. To ensure this, the government will launch a system of rating gas dealers on the basis of time taken to deliver cylinders, and allowing customers to switch dealers.

"The portability will give choice to consumers through an online system. It is dedicated to better halves of the family (women) who can now manage cooking gas supply sitting at home," Moily said.

The petroleum ministry felt the need to bring transparency in LPG distribution and empower consumers to dump their distributors for poor service since September when the government capped the supply of subsidised LPG cylinders at six per household per year, which saw large-scale diversion of cheap domestic fuel for commercial use.

(4) Boeing 787 Dreamliner faces review after mishaps: US agency

Boeing Co's sophisticated new aircraft, the 787 Dreamliner, will undergo a review of its critical systems by regulators, the US Department of Transportation said on Friday after a series of problems in recent weeks.

The review of the jet will involve design, manufacture and assembly, including a battery that caught fire on an empty 787 parked in Boston on Monday.

Adding to the tally of incidents that have tested confidence in the Dreamliner, on Friday the passenger jet suffered a cracked cockpit window and an oil leak on separate flights in Japan.

The US Department of Transportation said it plans to announce more details of the review at a press conference Friday at 9:30 am ET (1430 GMT).

The 787 is Boeing's newest jet and its boldest effort to revolutionize commercial aviation by using new technology to cut the fuel cost for operating the plane by 20 percent. Airlines are pleased with the savings, and have so far given the plane their approval, both by ordering more than 800 jets and sticking by it through the current spate of troubles.

But Boeing already is far over its budget and more than three years behind schedule in delivering Dreamliner planes, and any further expenses or problems have the potential to affect the company's finances significantly.

The wide-ranging review by US officials, including the Federal Aviation Administration, has the potential to deal a serious setback to Boeing's newest jet, especially if it led to a costly design change.

Analysts have said that a problem in manufacturing or assembly of the plane would probably be fixed with minimal cost and disruption. Most have said that the issues with the plane so far appear to fall into those categories.

On Friday in Japan, All Nippon Airways Co said a domestic flight from Tokyo landed safely at Matsuyama airport in western Japan after a crack developed on the cockpit windscreen, and the plane's return to Tokyo was canceled.

The same airline later said oil was found leaking from an engine of a 787 Dreamliner after the plane landed at Miyazaki airport in southern Japan. An airline spokeswoman said it later returned to Tokyo after some delay. No one was injured in either incident.

As Boeing's 787 comes under review, the company is involved in difficult labor contract negotiations with its engineering union, which represents the workers who would be called upon to solve any problems with the Dreamliner.

The two sides resumed talks on Wednesday that broke off in December after federal mediators joined the sessions. There was no breakthrough in the two days of meetings this week. The talks were scheduled to resume on Friday.

Scott Hamilton, an analyst with the aerospace industry consultant Leeham, said "the prospects of a total breakdown in talks appears more and more likely, perhaps as soon as today. If this happens, look for a strike voted early next week. A walk-out could occur in early February."

(5) India 119th on economic freedom index: Report

India has been ranked as the 119th freest country in the world out of 177 in the 2013 index of economic freedom, according to a report.

Among the BRIC economies China, Russia were ranked below India in the index, while Brazil was above India.

India's economic freedom score stood at 55.2, as its institutional shortcomings continue to undermine the foundations for long-term economic development, the report complied by Heritage Foundation said.

The rankings were made under various sub-heads -- free, mostly free, moderately free, mostly unfree, repressed and unranked which included countries like Afghanistan, Iraq, Kosovo, Libya, Liechtenstein, Somalia, Sudan and Syria.

India was ranked in the mostly unfree category and was ranked below countries like the Philippines, Tanzania, Fiji, Oman, Peru among others.

The top ten countries in the list include Hong Kong, Singapore, Australia, New Zealand, Switzarland, canada, Chili, Mauritius, Denmark and US.

The overall score of India at 55.2 was below the world average of 59.6, the regional average of 57.4 and well behind the average quoted by free economies which stood at 84.5.

The score represents a slight uptick than the last year (up 0.6 per cent) as the improvements in the management of public finance and monetary freedom was offset by a continuing decline in freedom from corruption.

"In the absence of a well-functioning legal and regulatory framework, corruption throughout the economy is becoming a more serious drag on the emergence of a more dynamic private sector," the report said.

In the Asia-Pacific region, India is ranked 23rd out of 41 countries.

The report further noted that "the state's presence in the economy remains extensive through state-owned enterprises and wasteful subsidy programs that result in chronically high budget deficits."

Progress in structural reform has been uneven and often stalled. Plans to open up key service sectors have been reversed, and no significant reforms have been implemented effectively in recent years, it said adding that efforts are being taken by the government as reform measures aiming at reducing government subsidies and encouraging foreign direct investment were announced in 2012.

The report noted that, economic freedom is not advancing strongly across the world.

Only 31 countries have increased their economic freedom scores by 1 point or more over the past year, and 35 registered declines of that magnitude. The average world economic freedom score increased only 0.1 point, reflecting policy stagnation that in turn is reflected in lower world growth rates, the report said.

Today's Hot Stories - January 11, 2013 - PT education

Today's Hot Stories - January 11, 2013

10 Headlines for Today

(1) SC quashes Karnataka Upa Lokayukta appointment
(2) PAC panel points out lapses in irrigation projects
(3) Pak blasts toll rises to 115
(4) Power, Coal Ministry to speed up NTPC coal blocks re-allocation
(5) SAT adjourns RIL-SEBI case till January 24
(6) India’s trade with China falls 12 %
(7) AITA snubs rebels, picks second-string team for Davis Cup |
(8) Cook, Bell put on record stand to pilot England to 325/4
(9) Saina loses in Korea Open quarters
(10) Women in black: burqa gets a makeovers

5 Stories for Today

(1) Announcement on ‘T’ before January 28, says Shinde
(2) Iran, U.N. envoy hold talks ahead of Geneva meet
(3) Govt not satisfied with Kingfisher’s investment plan
(4) Nokia launches 920 model
(5) Govt approves 14 FDI proposals worth over Rs 1,300 cr

(1) Announcement on ‘T’ before January 28, says Shinde

‘I have heard the views of eight political parties from Andhra Pradesh’

Union Home Minister Sushil Kumar Shinde has reiterated that the Congress-led United Progressive Alliance government would make some announcement on the separate Telangana issue before January 28.

Replying to queries at a press conference in New Delhi, he said he had heard the views of eight political parties from the State on December 28 last and promised to make an announcement within a month. “But I did not say this way or that way. There is nothing at this moment,” he said.

He said the government was consulting all the concerned apart from political parties and collecting necessary information so that something could be worked out before January 28. It was in receipt of various suggestions on what to do and what not to do. Asked what would be the decision, he merely smiled.

Replying to a query on the possibility of Hyderabad becoming a Union Territory, he said there was no discussion on the issue as yet. “There are several suggestions including those made by the Justice B.N. Srikrishna Committee and these will be looked into,” he added.

Speculation

Mr. Shinde’s latest statement assumes significance in the light of speculation among different sections in the State over the stand that would be adopted by the Congress-led United Progressive Alliance government on the long pending issue.

Expectations over the kind of announcement to be made by the Centre are divergent. Pro-Telangana parties such as Telangana Rashtra Samiti (TRS), Communist Party of India (CPI) and Bharatiya Janata Party (BJP) have made it clear that they expect the Centre to make a firm announcement on separate Telangana.

On the other hand, speculation in the Congress circles hovers around a regional board, a special package and even another States Reorganisation Commission.

(2) Iran, U.N. envoy hold talks ahead of Geneva meet

Iran has held talks with Lakhdar Brahimi, U.N. and Arab League envoy on Syria, who is set to jointly hold talks with American and Russian officials in Geneva on Friday.

Mr. Brahimi’s meeting with William Burns, U.S. Deputy Secretary of State, and Mikhail Bogdanov, Kremlin’s West Asia envoy, has generated speculation that a plan to defuse the Syrian crisis that is jointly engineered by Moscow and Washington, is in the works.

Late on Wednesday, Iran’s visiting Foreign Minister Ali Akbar Salehi met Mr. Brahimi at Cairo. Iran’s Press TV reported that the two discussed Syrian President Bashar al-Assad’s roadmap for peace and Iran’s six-point plan to settle the unrest in Syria.

Rebels

Mr. Assad on January 6 had proposed a conference with the opposition, but insisted on the exclusion of the western-backed “rebels” and Jihadists, with al-Qaeda affiliation, in the dialogue. He stressed that the proposed talks were meant to write a constitution, which would come into force once the draft was approved during a national referendum. He also proposed the formation of an interim government and an initiative for reconciliation.

Iran has supported Mr. Assad’s plan, and Russia has stressed that the presidential proposals “must be given consideration”.

Russian Foreign Ministry officials hoped that the Geneva meet would yield a solution based on last June’s Geneva Communiqué and the President’s proposals.

The agreement had called for the formation of a transitional government, but did not seek Mr. Assad’s exit.

Resistance

The Russian and Iranian positions are expected to encounter resistance from the U. S. which has already rejected Mr. Assad’s plan.

Separately, without mincing words, Mr. Brahimi also trashed the Syrian initiative. Speaking to BBC, he said “what has come out is very much a repeat of previous initiatives that obviously did not work... it’s not really different and perhaps is even more sectarian and one-sided.

“The time of reforms granted magnanimously from above has passed. People want to have a say in how they are governed and they want to take hold of their own future.”

(3) Govt not satisfied with Kingfisher’s investment plan

Government is not satisfied with Kingfisher Airlines’ plans to invest Rs 650 crore to resume its operations as it may not guarantee an efficient and reliable service, a senior DGCA official said on Friday.

“We want an airline to operate in consistent, efficient and reliable manner. The revival plan, which was submitted by the airline, had lots of issues regarding lenders, staff payment which we felt may not lead to reliable services,” the official said.

Kingfisher Airlines plans to invest Rs. 650 crore as part of its plan to return to the skies. The airlines had lost its operating licence on December 31, 2012 and had stopped flying since October last year.

The official, not wishing to be named, said the revival plan filed by Kingfisher Chairman Vijay Mallya last month with the country’s aviation regulator Directorate General of Civil Aviation (DGCA) may not be sufficient to carry out a reliable service.

“The plan had no provision for payment of airport operators, who want their dues to be paid before the airlines starts flying again,” the official said.

The official said the payment plan of due salary and wages of staff was in a phased manner, which “we felt may not lead to reliable services.

“If the employees were not paid, then the staff may stop working again which may cause inconvenience to passengers. There should be no inconvenience to passengers,” the official said.

On Thursday, Mr. Mallya had written a letter to Kingfisher employees, who have not been paid for eight months now, after they threatened to file a winding up petition in the court under the Company’s Act if the management did not share its revival plan with them.

In his letter, Mr. Mallya said, “We have submitted a detailed restart plan to the DGCA which is in two parts. The first part deals with a limited re-start utilising 7 aircraft ramping up to 21 aircraft in 4 months. The second part is a full scale rehabilitation of our airline growing to 57 aircraft within 12 months of recapitalisation.”

The letter, however, did not mention anything about the payment schedule of dues of the employees, but it said that “both plans contain detailed information on key assumptions and funding requirements, including payment of outstanding salaries to employees.”

The airline has not paid to its employees since May last year.

The official also said that four of Kingfisher’s leased Airbus 320 aircraft had been deregistered by the DGCA on the request of lessor two years back.

Once India’s second-largest airline, Kingfisher is burdened with a loss of Rs 8,000 crore and a debt burden of another over Rs 7,524 crore, a large part of that has not been serviced since January.

(4) Nokia launches 920 model

Nokia has launched its full range of Nokia Lumia Windows Phone 8 devices in the Indian market.

Three models of Nokia Lumia were unveiled on Thursday. While the top of the line Nokia Lumia 920 and the Nokia Lumia 820 would be available in the market from Friday, the affordable model Nokia Lumia 620, targeted at the youth, would be launched in February, company officials said.

With the latest range of Lumia WP8 devices, Nokia said it was all set to lead the change for the Windows Phone ecosystem with its Lumia differentiators.

Nokia Lumia 920, priced at Rs.38,199, will be available in yellow, red, white and black while Nokia Lumia 820, priced at Rs.27,559, will come in red, yellow, cyan, white and black. The price for Nokia Lumia 620 has not been announced but it will come in magenta, yellow, cyan, white and black colours.

The company refused to divulge the number of phones it would sell this year.

Addressing via video conferencing, Nokia India Managing Director and Vice-President P. Balaji, said, “We are focussed on redefining the future of smart devices and continue to invest towards delivering truly compelling experiences to consumers across price points.

“The launch of Lumia 920 and 820 on WP8 has instantly catapulted Windows Phone into the high-end smartphone shoot-out with their unique innovations.”

(5) Govt approves 14 FDI proposals worth over Rs 1,300 cr

The government on Friday said it has approved 14 FDI proposals worth about Rs 1,311 crore including that of Hindustan Port Ltd.

“Based on the recommendations of FIPB in its meeting held on December 21, government has approved 14 proposals of foreign direct investment amounting to Rs 1,310.60 crore approximately,” the Finance Ministry said in a statement.

The proposal of Mumbai-based Hindustan Port Ltd to induct foreign funds worth Rs 440 crore for investment in downstream companies was among those cleared by FIPB.

The Foreign Investment Promotion Board, headed by Economic Affairs Secretary Arvind Mayaram, has also allowed pharma firm Aanhaneya Lifecare to raise funds worth Rs 405 crore through issue of foreign currency convertible bonds.

Besides, the board has allowed Bangalore-based Syngene International to induct foreign equity of Rs 125 crore.

US-based Gavis Pharma LLC can also invest Rs 73.75 crore in an Indian company engaged in the business of manufacture of injectable products.

Other major proposals which were approved by the FIPB include Excedo Reality Fund-I to accept NRI investment worth Rs 210 crore, and that of Punjab-based pharma company Saurav Chemicals Ltd to issue fresh equity shares valued Rs 14.85 crore to foreign company.

Other proposals approved include that of Ordain HealthCare Global for acquisition of manufacturing facility for its group pharma company and that of Arshiya International to issue warrants.

FIPB has deferred six and rejected three proposals. The proposals which were deferred include that of Mahindra & Mahindra Ltd to provide service support for radar systems and defence electronic systems.

Those rejected include proposal of Mumbai-based Fullife Healthcare for induction of foreign equity.

Today's Hot Stories - January 10, 2013 - PT education

Today's Hot Stories - January 10, 2013

10 Headlines for Today

(1) Visa-on-arrival for Pakistani nationals above 65 years from January 15
(2) Khaps to request for lok adalat status
(3) China gets ready for Bo Xilai trial
(4) Diesel, LPG price hike on anvil
(5) KFA employees to move court
(6) Morgan Stanley to cut 1,600 jobs in investment bank: Source
(7) Johnson wins PGA Tour opener|
(8) SFL: Shyam wins welter weight title in style
(9) Djokovic eyes Australian Open hat-trick
(10) World’s first subway marks 150 years in operation

5 Stories for Today

(1) Some sort of goondaism going on in West Bengal, says governor
(2) Anti-Muslim ads go up in New York City subways
(3) Has India lost attraction in global car market?
(4) A flexible ‘paper tablet’ that can be twisted and dropped
(5) Fiscal strain shows in run-up to Budget

(1) Some sort of goondaism going on in West Bengal, says governor

West Bengal Governor M K Narayanan on Wednesday virtually rapped the Mamata Banerjee-led government over the clashes between CPM and Trinamool Congress workers, saying it was akin to “some sort of goondaism” which was “not acceptable”.

He asked the police and the administration to function impartially in arresting the guilty.

“This is not a good political culture. I think some sort of goondaism is going on here,” Narayanan told mediapersons on the sidelines of a programme here.

“The last two-three days have been very disturbing and distressing. This violence should not have taken place. We should not tolerate the violence that is taking place. This is not acceptable,” Narayanan said.

“It is the duty of the administration and the police to take action against those who are responsible. There is clear evidence against the guilty. The police and the administration have to be impartial,” the governor said when reporters sought his reaction on the issue.

Trouble flared up in Bhangar in South 24 Parganas district late last week after one party office each of the Communist Party of India-Marxist (CPM) and Trinamool Congress were damaged and set afire respectively.

When CPM legislator Abdur Rezzak Mollah went to the area, he was attacked by allegedly Trinamool workers, led by former lawmaker Arabul Islam.

Mollah has been admitted to a hospital.

Then Tuesday, many people were injured in firing and stone pelting in clashes between Trinamool Congress and CPM workers in Bamanghata in Bhangar.

(2) Anti-Muslim ads go up in New York City subways

The group that equated Muslim radicals with savages in advertisements last year has put up another set of provocative ads in dozens of New York City subway stations.

The American Freedom Defense Initiative purchased space next to 228 clocks in 39 stations for ads with an image of the burning World Trade Center and a quote attributed to the Quran saying: “Soon shall we cast terror into the hearts of the unbelievers.”

The Metropolitan Transportation Authority said the ads went up on Monday and will run for a month.

The same group paid for ads to be displayed in 10 stations in September. Those ads implied enemies of Israel are “savages.”

The MTA also sold space last year to competing advertisements that urged tolerance.

(3) Has India lost attraction in global car market?

Has the Indian car market lost steam? Against expectations of a boom in India which was being projected as the next big frontier for global carmakers battling financial crisis and stagnation in Europe and the US, the market has slowed down considerably, with growth rate projected to fall to a 10-year low.

Not only that, lobby group Society of Indian Automobile Manufacturers (Siam) has said that the industry will not be able to meet the government’s target of achieving $145 billion turnover by 2016, and this needs to be extended by as much as a decade.

The pessimistic outlook goes against the accolades the Indian market had been receiving just two years ago before high interest rates and slowing economy depressed sentiments and started to pull the market down. While many carmakers say privately that they will be going slow on new investments, some like the Volkswagen group have come out in the open, expressing reservations over the way the market has been behaving.

The Volkswagen group, Europe’s number one carmaker that runs three key brands here (VW, Skoda and Audi), made its intentions clear when it said recently that it will not make any fresh investments in India till 2015, blaming the government for the change in its otherwise-bullish stance. “The policy framework here is not stable. Which company will like to invest?” John Chacko, MD of Volkswagen India, said. The official blamed “uncertainties on fuel prices and diesel policy”, apart from the poor economic climate, among reasons prompting the group to go slow in the market.

Siam has itself not been able to gauge the market mood correctly as it has been deteriorating fast. The auto body made its third downgrade to its original car sales forecast for this fiscal and said the growth will be only 0-1% against the healthy 10-12% projection it had given at the beginning of the year.

The actual performance in the first nine months brings this out evidently. Car sales in the April-November-12-13 period have fallen by 0.33% at 13.81 lakh units against 13.86 lakh units in the same period last year. As many as 10 of the 19 carmakers who report their numbers to Siam have seen volumes go down year-on-year and these big ones like include Tata Motors, Ford, General Motors, Toyota and VW. Even market leaders Maruti Suzuki and Hyundai have managed a low single-digit growth and complain of the difficult times.

Mayank Pareek, COO (sales & marketing) at Maruti Suzuki, said that the going will remain tough in 2013 too. “People buy cars when they feel good. The overall factors are not that positive now,” Pareek said. Hyundai’s sales & marketing VP Rakesh Srivastava is equally worried. “If the current macro-economic conditions continue to prevail, then the challenges will become more and more stronger.”

Most of the companies are now pinning their hopes on the Budget to get a relief from the troubled times. Also, they expect central bank RBI to take some action on interest rates and bring them down gradually. “It will continue to remain very challenging unless the government improves market sentiments. We are looking for some positive energy in the market through government’s efforts in terms of economic reforms and RBI’s moves on interest rates,” Toyota’s deputy MD Sandeep Singh said.

(4) A flexible ‘paper tablet’ that can be twisted and dropped

Researchers have developed a revolutionary tablet screen as thin as a sheet of paper that can be twisted and dropped without damage -and it could replace your laptop within five years. Developed by Queen’s University in Canada in collaboration with Plastic Logic and Intel Labs, it could lead to revolutionary new gadgets that are virtually unbreakable - and as thin as a piece of paper.

The PaperTab is fully interactive with a flexible, high-resolution 10.7-inch plastic display developed by Plastic Logic, a flexible touchscreen, and powered by the second generation Intel CoreTM i5 Processor , the ‘Daily Mail’ reported. “Plastic Logic’s flexible plastic displays allow a natural human interaction with electronic paper, being lighter, thinner and more robust compared with today’s standard glassbased displays,” said Indro Mukerjee , CEO of Plastic Logic. Researchers plan to launch the screen at the Consumer Electronics Show in Las Vegas. They have shown off the concept for a new desktop - using sheets of paper for each app rather than a traditional screen with windows. Instead of using several apps or windows on a single display, users have ten or more interactive displays or ‘PaperTabs’ , with each being a different app.

They can also be used as ebooks , with users simply bending the screen to turn pages. “Using several PaperTabs makes it much easier to work with multiple documents,” said Roel Vertegaal, Director of Queen’s University’s Human Media Lab.

(5) Fiscal strain shows in run-up to Budget

For the finance ministry, budget-making is usually an annual exercise with a focus on the new year. But this year is different. As finance minister P Chidambaram gets into a final huddle with his officers for the 2013-14 budget, he is worried about the targets set for the current financial year.

After all, government finances have never looked as bad in recent memory, with the Centre staring at the prospect of ending the year with lower-than-budgeted revenues from taxes, disinvestment and spectrum sale, besides overshooting its spending target.

The disinvestment and revenue departments are going to be on an overdrive to mop up every possible paisa over the next 12 weeks. The success of the spectrum auction, the second in a span of three months, will only be known in March but before that, a message has gone to every government department that they should try and cut expenditure, and if possible defer some to the first quarter of the next financial year. Already, the finance ministry is talking of a saving of Rs 65,000-70,000 crore in plan expenditure, which is around 5% of budgeted spending, as ministries that have not spent in line with the allocation will have to surrender a part of the resources at their disposal. There are others, which have for years not bothered to collect utilization certificates of funds released earlier. They will now have to adjust their “past dues” with this year’s allocation. For some, the reduction is as much as 25%, conceded a minister.

“It’s normal budget practice but this year the enforcement is tougher,” said the financial advisor in a ministry with a large allocation. Finance ministry officials admitted that the budget division is keeping tabs on every single paisa that flows out of the treasury.

A request from agriculture minister Sharad Pawar to clear Rs 30,000 crore of unpaid fertilizer subsidy has been turned down. Similarly, oil companies may have to deal with a new subsidy-sharing mechanism that will translate into a higher burden for them. From defence to rural development, no one is surviving the axe as Chidambaram is keen to ensure that at least the revised fiscal deficit target of 5.3% of GDP is met. He has so far scoffed at the possibility of the government missing the revenue targets but that’s something that experts are worried about. After all, the run rate, as far as tax collections are concerned, is lower than the asking rate and his ministry’s own document in Parliament has talked about corporation tax, customs and central excise duty targets being tough to achieve given the trend in the first half, although it said that “slippage” may be minimal by the time the year ends. Even on Tuesday, Fitch reiterated its fears and joined Moody’s and Standard and Poor that have warned India of a possible downgrade in sovereign rating to junk status.

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

Today's Hot Stories - January 09, 2013

10 Headlines for Today

(1) Arjun Munda resigns after JMM ends support
(2) India test-fires manoeuvrable version of BrahMos
(3) Venezuela govt postpones Chavez swearing-in
(4) Lenders set to ask KFA to clear dues
(5) PC gaming makes a fighting comeback
(6) India becomes 4th largest market for Sony
(7) Tennis: Radwanska’s dream run continues, Li Na breezes past Morita |
(8) Shikhar Dhawan leads from the front
(9) PCB to hold T20 league in March
(10) Alarm bells ring over hunting of rare India-bound birds in Pakistan

5 Stories for Today

(1) Jawans mutilation: India summons Pak High Commissioner
(2) World divided over Syrian President’s peace plan
(3) PSUs to meet minimum public holding requirement deadline: SEBI
(4) Sony looks to replicate Indian model in Europe
(5) Rangarajan for quick action to prune diesel subsidy

(1) Jawans mutilation: India summons Pak High Commissioner

India on Wednesday summoned the Pakistan High Commissioner in New Delhi to protest the “highly provocative” attack on its territory in Jammu and Kashmir by Pakistani troops, describing as “extremely distressing” and “inhuman” the mutilation of the bodies of its two soldiers.

As the Government closely monitored the situation after the attack, Pakistan High Commissioner Salman Bashir was summoned to the Foreign office here.

Defence Minister A.K. Antony said the Indian government will convey to Pakistan its protest against the attack on Tuesday in the Mendhar sector in Poonch district.

“Pakistan Army’s action is highly provocative. The way they treated the dead bodies of Indian soldiers is inhuman. We will convey our protest to Pakistan government and our DGMO will talk to his counterpart. We are closely following the situation,” Mr. Antony told reporters.

External Affairs Minister Salman Khurshid said the way the bodies of the two Indian soldiers were treated was “extremely extremely distressing” and “ghastly” and that this will be taken up seriously with Pakistan.

“It is an extremely sensitive matter. It is a matter of great concern. We will do whatever we can do,” he said, adding “We will take up the matter seriously with Pakistan government.”

Mr. Khurshid warned that the Pakistani action could be “counter-productive” in efforts by the two neighbouring countries to improve bilateral relations.

In political reaction condemning the brutal killing of the two Indian soldiers, the BJP said this is a “warning” to India and asked the Government to place all the facts before the international community so that Islamabad can be named and shamed before the world at large.

Pakistani regular soldiers crossed into Indian territory in Poonch sector and ambushed an Indian patrol killing two soldiers, one of whom was decapitated.

Army’s Additional Director General (Public Information) Major General S L Narasimhan yesterday confirmed that one of the two bodies was mutilated.

Other sources said the heads of both the Indian soldiers — Lance Naiks Hemraj and Sudhakar Singh — have been chopped off and one was taken away by Pakistani intruders.

The attack took place along the Line of Control(LoC) in Poonch district when Pakistanis came about 100 metres into Indian territory and assaulted the patrol party.

Besides killing two, they also injured two other soldiers and took away their weapons and other belongings.

(2) World divided over Syrian President’s peace plan

Iran has been quick off the blocks in support of Syrian President Bashar al-Assad’s plan to resolve the internal conflict, which may soon be yielding ground to diplomacy as the limits to finding a military solution to the crisis get exposed.

“The Islamic republic... supports President Bashar al-Assad’s initiative for a comprehensive solution to the country’s crisis,” said Iran’s Foreign Minister Ali Akbar Salehi in a statement posted on his Ministry’s website.

“Assad’s plan includes solutions which reject violence and terrorism and any foreign interference in the country, and outlines a comprehensive political process”, he observed.

On Sunday, Mr. Assad stressed that the crisis in his country could be resolved not through military but political means.

“The political solution entails regional and international powers halting their support for armed groups, which will be followed by a halt in our security forces’ crackdown against them,” Mr. Assad told a packed opera house audience in the heart of Damascus.

After spelling out his terms for a ceasefire, the Syrian President said that the next step would be to convene a national conference, where all parties who work in Syria’s interest would participate. These deliberations would result in a new constitutional draft, which will be put to vote in a national referendum.

Finally, the crisis would end with a process of national reconciliation that would include the granting of amnesty to those who have been imprisoned during the conflict.

However, the President said he would not negotiate with two main components of the opposition: The pro-western rebels, whom he described as “western puppets”; and “terrorists” known for their links with al-Qaeda. “We never rejected a political solution … but with whom should we talk? With those who have extremist ideology who only understand the language of terrorism?” he said. “Or should we negotiate with puppets whom the West brought.” He added: “We dialogue with the master not with the slave.”

During the speech, the President called for popular mobilisation to counter the existential threat that confronts Syria. “Everyone must defend it… the attack on the entire nation… every citizen who is aware… and refusing to join solutions is taking the nation backwards,” he said.

In its response to the presidential address, the Chinese Foreign Ministry urged both sides in the conflict to “follow the objectives and principles set forth in the Action Group Geneva Communiqué and establish an inclusive transitional governing body to realise a political transition in the country”. Conceived on June 30 last year, the Geneva plan calls for the formation of a transitional government in Syria, drawn from the government and the opposition, without seeking Mr. Assad’s exit.

While there has so far not been an official Russian response to the presidential address, the Voice of Russia radio quoted Boris Dolgov from the Institute of Eastern Studies of the Russian Academy of Sciences as saying that the President’s speech was a significant event not only for Russia but the entire region. He concurred with Mr. Assad’s perception that the external support to the opposition was the main cause of instability in the region.

Analysts point out that the President’s speech comes at a point of inflection in the Syrian crisis. In the United States, a major change of personnel is taking place in the State Department, CIA and the Pentagon, which might be a precursor to a policy shift on Syria.

Later in January, Lakhdar Brahimi is hosting a trilateral meeting with senior Russian and U.S. officials, amid anticipation that a new U.S.-Russia plan on resolving the Syrian crisis is in the works.

Nevertheless, Victoria Nuland, the spokeswoman for the State Department, did not signal on Sunday any change in Washington’s stance towards Syria. She described Mr. Assad’s speech as “yet another attempt by the regime to cling to power, and [which] does nothing to advance the Syrian people’s goal of a political transition”.

(3) PSUs to meet minimum public holding requirement deadline: SEBI

The government has assured SEBI that listed public sector undertakings will meet the August 2013 deadline to meet the capital markets regulator’s mandatory public shareholding norms, SEBI chief U K Sinha said on Wednesday.

“I am happy to inform that we have received confirmation from government that it will abide by public shareholding guidelines within the timeframe,” SEBI Chairman U K Sinha said at a conference organised by industry body Assocham.

According to Mr Sinha, the promoter holding in Indian companies is very high as compared to other Asian markets and SEBI took up the matter with the government as it feels that PSUs should also follow the rules. Under the norms, privately promoted companies are expected to have a public shareholding at 25 per cent by June 2013, while the same for the state-run listed companies has been relaxed to 10 per cent, which has to be met by August 2013, Mr Sinha said.

According to analysts, 11 PSUs, including Rashtriya Chemicals and Fertilizers and State Bank of Mysore, have government holding beyond the 90 per cent mark and the government will have to bring it down.

Mr Sinha also said that the SEBI is continuously taking measures to improve retail investors’ confidence in the equity market and stressed that the market is not a “casino” where one can do anything and get away with it.

It has put up a sophisticated surveillance mechanism which is putting out up to 100 alerts a day on potentially fraudulent transactions, he said.

“I assure you, if there is any attempt to manipulate the market or to bypass the rules, we will take action and with this surveillance mechanism, we are in a much better position to do that today,” he said.

(4) Sony looks to replicate Indian model in Europe

Japanese consumer electronics giant Sony Corporation is looking to replicate its Indian subsidiary’s style of working in the European business by synchronising different verticals to have better growth, its Europe chief said on Tuesday.

Sony Europe’s President Masaru Tamagawa joined the operations of the region in July last year and is highly appreciative of the business model in India, where he had led the company for five years from 2007.

“We want to replicate everything of India in Europe. The working style of various divisions, including product strategy, distribution channel and marketing, are very good in India and we want to replicate these in Europe,” Tamagawa said on the sidelines of the Consumer Electronics Show in Las Vegas.

Sony Europe wants to synchronise different verticals of the company like that in India to have better growth in the region, he added.

Although Sony India’s revenue contribution is very small compared to Sony Europe, Tamagwa said: “India is much ahead of Europe (in working style).”

Sony Europe, which comprised the UK, France, Germany, Russia, Spain and Sweden, recorded net sales of 300.24 billion yen (about Rs 18,930 crore) during the quarter ending September 2012 compared to 293.49 billion yen (about rs 15,100 crore) in the year-ago period, up 2.3 per cent.

In contrast, the Indian operations’ revenue contribution for the entire 2011-12 financial year was just Rs 6,313 crore. It is expecting 30-40 per cent growth in this fiscal.

The newly appointed Sony Corp President and CEO Kazuo Hirai also emphasised the importance of developing economies in the company’s overall growth.

“When I was made the CEO nine months ago, my focus was to revitalise the business... My aim is to drive growth in the emerging markets, where we are already strong,” he added.

The company’s Indian operations, which is a part of Sony Corp’s Asia Pacific business which also includes South Korea and Oceania, is targeting to treble its revenue to Rs 20,000 crore by 2015 even as its Japanese parent continues to suffer losses globally due to adverse conditions in major markets such as the US.

Besides, Sony India plans to increase its headcount by 500 people in the current financial year. This is in contrast to Sony Corp’s decision to lay off about 10,000 people globally last year to cut operational cost.

Sony Corporation on Tuesday unveiled a range new products such as Xperia range of smartphones and 4K ultra high definition TV. These products will commercially be launched within next few months.

(5) Rangarajan for quick action to prune diesel subsidy

Diesel prices may have to be raised by Rs.10 a litre over the next one year, if government accepts the recommendations of Vijay Kelkar Committee.

The Central Government should act quickly to raise diesel rates to bring them in line with global prices in order to reduce its subsidy bill, Prime Minister’s Economic Advisory Council Chairman C. Rangarajan has said.

“I think we need to cut subsidies’ proportion of GDP... Therefore, there is an imperative need to reduce the diesel subsidies,” Dr. Rangarajan told PTI in an interview.

“Therefore, we should act quickly on it... The need to adjust domestic prices in line with crude prices globally has become absolutely essential,” he said.

The crude oil price is around $95 a barrel.

Diesel prices may have to be raised by Rs.10 a litre over the next one year, if government accepts the recommendations of Vijay Kelkar Committee.

The committee, which was appointed by the Finance Ministry to formulate the fiscal consolidation roadmap, had in its report suggested raising diesel and kerosene rates. The price hike is being considered as the government scrambles to find ways to meet an unprecedented Rs.1,60,000 crore deficit expected this fiscal on selling diesel, cooking gas (LPG) and kerosene below their production cost.

Price of diesel, which at present costs Rs.47.15 a litre in Delhi, was last revised on September 14 when it was hiked by a steep Rs.5.63 per litre.

State-owned oil companies at present sell diesel at a loss of Rs.9.28 per litre, and the hikes over the next 10 months will eliminate all of the losses and absolve the government from providing any subsidy on the nation’s most consumed fuel. They are likely to end the fiscal with a revenue loss of over Rs.1,63,000 crore on sale of diesel, LPG and kerosene at government-controlled rates that are way lower than cost.

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

Today's Hot Stories - January 08, 2013

10 Headlines for Today

(1) Arjun Munda resigns after JMM ends support
(2) Hate speech: Akbaruddin Owaisi to undergo medical tests today
(3) Hundreds protest violence against women in Nepal
(4) Lenders set to ask KFA to clear dues
(5) PC gaming makes a fighting comeback
(6) Britannia announces new management appointments
(7) Messi wins record 4th FIFA Ballon d'Or |
(8) Stars sweat it out in Sydney 'sauna'
(9) NBA: Short-handed Celtics down NY Knicks
(10) NASA's Kepler mission discovers 461 more potential planets

5 Stories for Today

(1) India says Pakistan violated ceasefire
(2) Obama lines up second term national security team
(3) Budget interest payments on refunds: PAC
(4) Bank of America to pay $11.6 billion in Fannie Mae deal
(5) Government tightens tax recovery norms

(1) India says Pakistan violated ceasefire

Even as the Pakistan foreign office in Islamabad on Monday summoned the Indian deputy high commissioner there to protest against what it called a ceasefire violation by Indian troops, New Delhi flatly denied the allegation.

Pakistan strongly urged India to take "appropriate measures'' to avoid recurrence of such incidents in future. "The Deputy High Commissioner of India was called to the Foreign Office today and handed over a protest note on the unprovoked Indian attack on a Pakistani post in the Hajipir sector on January 06, 2013 which resulted in the Shahadat of a Pakistani soldier and injuries to the other,'' the Pakistan foreign ministry said in a statement.

The Indian Army, in turn, said it was actually Pakistani Army posts that had "opened unprovoked heavy machine gun and mortar fire" on Indian posts in the Uri sector of Jammu and Kashmir "to help terrorists infiltrate across the Line of Control" at about 3.30 am on Sunday.

"The Indian Army gave a calibrated response and foiled their attempt to sneak across. The firing continued till about 8 am. There was no cross border movement by Indian troops. Ceasefire violations by Pakistani Army has escalated in recent times, attempting as it is to push in maximum number of infiltrators into J&K under the cover of heavy firing and poor weather conditions," said an officer.

"In just the last 30 days, Pakistani Army has violated the ceasefire agreement nearly a dozen times. Most of these firing incidents were in Rajouri, Uri and Keran sectors to assist infiltration attempts by terrorists. In 2012, there were almost 120 ceasefire violations by Pakistani Army," he added.

(2) Obama lines up second term national security team

US President Barack Obama is nominating a decorated Vietnam veteran and former Republican senator Chuck Hagel for defence secretary in a bold choice that is likely to a trigger a political scrap with both his own party faithfuls and Republican hardliners.

Hagel is regarded as somewhat of a maverick who does not subscribe to typical Republican prescriptions about muscular unilateral interventions. He had a change of heart on the US war in Iraq (after initially voting to authorize it) and is against bare-knuckle remedies for Iran, broadly conforming to Obama's own outlook. He is also a votary of a quick exit from Afghanistan and a pared down military.

While all this makes Hagel acceptable to many liberals and will suit Obama's agenda and his bipartisan approach to cabinet composition, it makes his confirmation process tricky.

Senators are typically respectful of one of their own tribe during confirmations hearings, but Hagel has rubbed enough conservatives the wrong way to forestall any smooth sailing like the one John Kerry is expected to have on his way to becoming secretary of state.

Republican hardliners are leery of his support for cuts to the defence budget, which has doubled since 9/11, and liberal Democrats have reservations over his views on gays in the military and his utterances on Israel where he is seen as being opposed to what he once referred to as the "Jewish lobby". Both fringes have indicated they will oppose Obama's choice of Hagel in a list that included Pentagon veterans Ashton Carter and Michelle Flournoy, although the White House believes it has enough votes to get him through.

But the president is likely to press ahead with Hagel's nomination, in part because he wouldn't like to be seen as backing down for a second time after he was forced to drop Susan Rice's possible nomination as secretary.

The president is also expected to nominate his long time counterterrorism chief John Brennan as director of the CIA, replacing David Petraeus who resigned after an affair with his biographer.

If Obama can get Hagel and Brennan through the confirmation process, they will join John Kerry as the president's core national security team, replacing Clinton-Panetta-Petraeus.

Hillary Clinton is expected to return to work on Monday after recovering from illness in what could be her last couple of weeks in the state department.

(3) Budget interest payments on refunds: PAC

The Union finance ministry pays more than Rs 10,000 crore every year as interest on delayed IT refunds. In the five years till 2010-11, it had paid over Rs 37,000 crore as interest, and without the approval of Parliament or any budgetary provision.

The Parliament's Public Accounts Committee (PAC) — the watchdog that reviews all expenditure made by the government out of the Consolidated Fund — has now finalized a report on this issue asking the government to take Parliament's prior approval for making any expenditure of this kind. The payment of interest on refunds of excess tax lies with the Consolidated Fund of India, and is payable only after having been authorized by Parliament.

Sources said the PAC has called the expenditure illegal, saying the government cannot make such huge payments unless it is provided in the Budget and Parliament's approval is taken for it. The PAC report is likely to be tabled in the Budget session.

This is only going to make the job of revenue department officials difficult as even during the current fiscal, the I-T department has only been clearing refunds below Rs 5 lakh. Refunds of bigger amounts have been delayed to show the net tax mop up positive.

The PAC recommendations have been made over a report of the Comptroller and Auditor General (CAG) on the Union Accounts for 2010-11 tabled in Parliament last year. The CAG report had said that CBDT violated provisions of Article 114(3) of the Constitution which stipulates that no money shall be withdrawn from the Consolidated Fund except under appropriation made by law.

The excess expenditure, as pointed out by the auditor, works out to over 2.3 times of the total expenditure budget of CBDT (Rs 4,522 crore) for 2010-11, and the trend was similar in past financial years as well. Sources said by not making a budgetary provision for interest payments, the government has been trying to avoid a debate in Parliament over such a huge expenditure.

The revenue department sources said the average growth of 8% in gross direct tax collection in the current fiscal may result in the shortfall in Budget target exceeding Rs 30,000 crore. An average growth of 15% was required to meet budget estimates of Rs 5.70 lakh crore for 2012-13. The situation is all that rosy on the indirect tax front either. Against an average growth of 27% required to meet the budget estimate of Rs 5.07 lakh crore, the indirect taxes collections have grown at an average of 15% so far. The shortfall estimated could exceed Rs 45,000 crore, say sources.

(4) Bank of America to pay $11.6 billion in Fannie Mae deal

Bank of America said on Monday it would pay $11.6 billion to settle claims on soured loans sold to government-backed mortgage finance giant Fannie Mae during the home price bubble.

Under the agreements, Bank of America Corp. said it would pay $3.55 billion in cash to Fannie Mae and repurchase for $6.75 billion some residential mortgage loans it had sold to the government-controlled firm.

In addition, Bank of America will pay $1.3 billion to address mortgage servicing issues, Fannie Mae said in a separate statement.

"A favorable resolution of this long-standing dispute between Fannie Mae and Bank of America is in the best interest of taxpayers," said Bradley Lerman, Fannie Mae executive vice president.

Fannie Mae said the deal would compensate it for actual and projected losses resulting from the loans.

The loans had been bundled into mortgage-backed securities and bought by the finance giant over 2000-2008, but had not met its underwriting standards.

The Bank of America settlement covers residential mortgage loans originated by its own home loan unit and by entities related to Countrywide Financial Corporation, which Bank of America acquired in 2008.

"These agreements are a significant step in resolving our remaining legacy mortgage issues, further streamlining and simplifying the company and reducing expenses over time," said Brian Moynihan, Bank of America chief executive.

The Charlotte, North Carolina-based bank estimated the measures would reduce pre-tax earnings for the 2012 fourth quarter by $2.7 billion.

Shares in Bank of America were up 0.6 percent at $12.18 in opening trade in New York.

Fannie Mae and sister firm Freddie Mac were saved from collapse amid the 2008 financial crisis in a combined $180 government bailout.

(5) Government tightens tax recovery norms

The Central Board of Excise and Customs (CBEC) has sought to initiate recovery proceedings on custom, excise and service tax orders raised if the tax evader is unable to obtain a stay within 30 days.

After 30 days of filing of an appeal together with a stay application by the taxpayer with the Commissioner (Appeals) or the Customs, Excise and Service Tax Tribunal (CESTAT), the indirect tax authorities will move to recover the demands raised, even if the stay application has not been heard. In case of appeals before the courts, even this 30-day period is not available and recovery will be initiated immediately, according to a CBEC circular issued last week.

Practically, it is difficult for taxpayers to obtain a stay order within such a short period. The irony is that the law itself permits the appellate authorities, both the Commissioner (Appeals) and the higher authority CESTAT to hear a stay petition within six months from the date of filing a stay appeal. There are various other situations outlined in this circular, but the essence in each case is the same—it all boils down to expediting recovery proceedings.

For indirect tax matters, the taxpayer when filing a litigation appeal in parallel also files a stay application. Prior to the issue of this circular, dated January 1, 2013, which is addressed to the chief commissioners, the
indirect tax authorities did not resort to coercive action to recover the demand raised, till the stay application was heard. This circular has also rescinded seven
earlier circulars, some of which were more beneficial to the taxpayer.

This circular will not only impact India Inc—both large and small entities—but will also impact service providers and professionals that pay service tax. Bipin Sapra, partner, Ernst & Young, said: "While this circular refers specifically to excise, the procedure set out would be applicable to service tax matters also." Today almost all services, apart from 17 exempt heads under the negative list, such as school educational services, public transport, health care, services provided by an individual advocate to other individuals, to name a few, are covered under the service tax net and taxed at 12.36%. Ramifications of this circular are wide, as the cash flow situation now arising owing to prompt payment of service tax demand, may cascade down to consumers through higher pricing.

Sunil Gabhawalla, a chartered accountant, said: "The circular is draconian and detrimental to the interests of taxpayers. Taxpayers will have to follow up aggressively to ensure they get a stay within 30 days.

However, if for instance, the Commissioner (Appeals) or the Tribunal bench does not hear the matter due to huge pendency or non-availability of bench members,
it may be difficult to obtain the stay. Typically, even the government department representatives ask for an alternative date for hearing
of the stay application which results in delays."

A government official said: "This circular was issued after a Supreme Court order. The Supreme Court in the case of Krishna Sales had observed: 'As it is well known, mere filing of appeal does not operate as a stay or suspension of the order appealed against'." He also added that taxpayers delay hearing proceedings to buy time to pay the demands. An added procedural problem arises for taxpayers.

"Once a stay is obtained, refund will have to be given. However, obtaining a refund is time consuming. The circular will cause an added administrative burden to both taxpayers and tax authorities," added Sapra.

During the first half of the current financial year 2012-13, indirect tax collections had arisen at a low rate of 15.6% to Rs 2.17 lakh crore only. The government has fixed the target of indirect tax collection, comprising customs, excise and service tax, at Rs 5.05 lakh crore for the current fiscal.

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

Today's Hot Stories - January 07, 2013

10 Headlines for Today

(1) Toll rises to 4 in Dhule violence, curfew remains
(2) Akbaruddin Owaisi plea to delay police deposition
(3) World’s longest subway system boosts China’s public transport push
(4) Mahindra plans to launch ‘Mojo’ next fiscal
(5) India’s foreign reserves up by near $40 million
(6) Need to align bilateral investment treaty regime with global reality
(7) Warne banned for T20 Big Bash clash with Samuels
(8) India pulls off a dramatic win to avert clean sweep
(9) Tipsarevic solves the Chennai riddle
(10) Cold wave continues to sweep Delhi

5 Stories for Today

(1) SGPC, Akali Dal keep off Akal Takht function
(2) Iran wants all “aliens” out of Afghanistan after 2014
(3) Govt to consider diesel price de-regulation
(4) Lenovo to release giant 27-inch ‘coffee table PC’
(5) Worrying numbers compound problems

(1) SGPC, Akali Dal keep off Akal Takht function

In a departure from previous occasions, the top leadership of the Shiromani Gurdwara Parbandhak Committee and the ruling Akali Dal stayed away from a function on Sunday within the Golden Temple complex in which the Jathedar of the Akal Takht, Giani Gurbachan Singh, honoured the relatives of assassins of the former Prime Minister, Indira Gandhi. At the function organised to mark the 24th anniversary of the hanging of Satwant Singh and Kehar Singh, the Jathedar bestowed “siropa” (robes of religious honour) on their relatives.

(2) Iran wants all “aliens” out of Afghanistan after 2014

As Afghanistan’s President Hamid Karzai prepares for a visit to the United States, Iran has made it plain that it opposes the presence of American troops on Afghan soil after a formal exit in 2014.

Using a convoluted formulation, the visiting head of Iran’s Supreme National Security Council Saeed Jalili said in Kabul that not only should “aliens” leave the country, Afghanistan’s national sovereignty must also always be respected. Mr. Jalili — fresh from his visit to India where Afghanistan’s transition post-2014 was a salient topic for discussion — praised the Afghan people’s “historical background in not accepting aliens”. He added that this was Afghanistan’s “big asset” that imparted a powerful impulse to preserve “national sovereignty”.

The New York Times reported that the Obama administration was considering maintaining a force of 3,000 to 9,000 troops in Afghanistan after 2014. It noted that the U.S. and Afghanistan began talks in November on a possible agreement that would authorise an American troop presence in Afghanistan after 2014.

“Any force that remains is expected to have several missions. It would include Special Operations forces, which would be assigned to carry out raids against Al Qaeda and other terrorist groups that are deemed to threaten American interests,” said the report. The write-up also observed that “troops would also advise and mentor the Afghan Army and police in conjunction with forces from other NATO nations”.

On the contrary, Mr. Jalili signalled a regional approach, free from foreign presence, for providing security and enabling nation-building in Afghanistan.

“He [Mr. Jalili] expressed pleasure with process of formation and consolidation of national government in Afghanistan and expressed Iran’s readiness to transfer its experiences in different fields for more security development, progress and prosperity for Afghan people,” reported the state-run Islamic Republic News Agency (IRNA) following Mr. Jalili’s meeting with Mr. Karzai on Saturday.

Apart from the Iranians, the Russians have also declared their opposition to the presence in Afghanistan of American forces that are not mandated by the United Nations Security Council. In an interview with Afghan website Tolonews, Russian Foreign Minister stated that he found it “strange that while insisting that in 2014 the American troops, NATO troops I assume, would leave Afghanistan, at the same time Washington discusses with Afghanistan very purposefully the establishment of four five military bases for the post 2014 period”. He added: “I don’t think why this should be done this way because if you need the military presence, then you continue the implement the mandate of the Security Council. If you don't want to implement the mandate of the Security Council or you believe that you have implemented the mandate already, but still want to establish and keep the military bases, I don’t think it's logical.”

Separately, the Taliban has issued a statement berating Mr. Karzai for undertaking his journey to Washington “to sign a security pact which would pave the way for the presence of American troops in Afghanistan and through which America would continue its crooked policies in the region”. The Talban warned Washington that if it believes “it can implement its malicious policies and find a secure base for itself by leaving a residual troops presence then we clearly state that these dreams are only dreams which can and will not materialise just as they failed to materialise in the past eleven years”.

During his visit, Mr. Jalili also discussed with Rangeen Dadfar Spanta, Afghanistan’s national security advisor, the expansion of the transit corridor from the Iranian port of Chabahar into Afghanistan — a move that would reduce the landlocked country’s dependence on Pakistani ports for its trade.

(3) Govt to consider diesel price de-regulation

Diesel, kerosene and cooking gas LPG prices may be hiked soon as the government considers Vijay Kelkar Committee recommendations on cutting fiscal deficit.

The Kelkar Committee, which was appointed by Finance Ministry to suggest a roadmap for fiscal consolidation, has suggested immediate hike in fuel prices and complete deregulation of diesel prices by start of 2014-15 fiscal. It also suggested raising kerosene and LPG rates.

“It is still at proposal stage. The (Petroleum) Ministry is only processing that report and we are yet to take a decision,” Oil Minister M Veerappa Moily told reporters here, when asked about deregulation of diesel prices.

The panel had in September recommended “immediate increase in Petroleum prices. This should be continued in the next year in such a way that the prices of diesel are fully deregulated by the start of 2014-15. The prices of kerosene and LPG also should be revised regularly to keep the subsidy levels at affordable levels.”

Price of diesel, which currently costs Rs 47.15 per litre in Delhi, was last revised on September 14 when it was hiked by a steep Rs 5.63 per litre. Kerosene rates have not changed since June 2011 and it currently costs Rs 14.79 per litre in Delhi.

State-owned oil companies currently sell diesel at a loss of Rs 10.16 per litre, kerosene at Rs 32.17 a litre and LPG at Rs 490.50 per 14.2-kg cylinder.

Mr. Moily said the government was also considering raising the cap on supply of subsidised cooking gas (LPG) cylinders to 9 per household in a year from current limit of six.

(4) Lenovo to release giant 27-inch ‘coffee table PC’

Dismayed that family members are spread out over the house, each with a separate PC or tablet? Lenovo has something it believes will get them back together — a PC the size of a coffee table that works like a gigantic tablet and lets four people use it at once.

Lenovo Group Ltd., one of the world’s largest PC makers, is calling the IdeaCentre Horizon Table PC the first “interpersonal computer” as opposed to a “personal computer.”

At first glance, it looks like a regular all-in-one machine in the vein of the iMac- It’s a 27-inch (685.8-millimeter) screen with the innards of a Windows 8 computer built into it, and it can stand up on a table.

But you can pick it up off the table, unhook the power cord and lay it flat for games of “Monopoly.” It is big enough to fit four people around it, and the screen can respond to ten fingers touching it at the same time.

As a tablet, it’s a monstrosity. The screen is the size of eight iPads stitched together, and it weighs 15 pounds (6.8 kilograms). It’s almost as homebound as a flat-panel TV.

The Table PC will include plastic “strikers” for “Air Hockey,” and joysticks that attach to the screen with suction cups for other games, including multiplayer shooter “Raiding Company.”

In a demonstration at the International CES on Sunday, photos and videos could be rotated with fingers. Spreading five fingers at once on the screen cleared the screen of clutter, while squeezing them together brought the photos and videos back.

Lenovo, a Chinese company that owns IBM Corp.’s former PC business, said the Table PC will go on sale this summer starting at $1,699.

Microsoft Corp. pioneered the idea of a table PC with the Surface, a PC with a 30-inch (762-millimeter) touch-sensitive screen released in 2008. It was designed for store displays and other commercial applications. The concept is now called PixelSense, as Microsoft started using the “Surface” name for an unrelated tablet computer last year.

More recently, Sony Corp. released the Tap 20, an all-in-one PC that can also be laid flat. But it’s smaller than the Lenovo model, at 20 inches (508 millimetres) diagonally, and doesn’t have as much table-oriented software as the Table PC.

(5) Worrying numbers compound problems

At the beginning of the New Year, there has been a succession of bad news concerning the external sector. The Reserve Bank of India (RBI) released its quarterly report on balance of payments (BoP) covering the period July-September 2012, the second quarter of the current fiscal year. The report showed the current account deficit (CAD) spinning out of control to reach a record 5.4 per cent of gross domestic product (GDP). This is sharply higher than the 4.2 per cent recorded during the same period last year. In absolute terms, the CAD worsened to $22.3 billion in the second quarter from $16.4 billion in the preceding quarter (April-June 2012) and $18.9 billion a year ago.
External debt

On the same day, the finance ministry released a report on India’s external debt as on September-end. India’s external debt stood at $365.3 billion, up by $20 billion over the level of March 2012. These figures by themselves do not mean anything but the finance ministry’s explanation for the jump is telling. According to the report, the rise in external debt is largely due to higher non-resident Indian (NRI) deposits, short-term debt and commercial borrowings. Long-term debt, at $280.8 billion at end-March, was up by 5.1 per cent over end-March. Short-term debt, accounting for 23 per cent of the total external debt, increased by 8.1 per cent to $84.5 billion.
Limitations of policy-makers

The two data releases are significant in that they show the limitations of policy-makers in arresting the deterioration in two key external account indicators.

Take the current account deficit first. The expectation among policy-makers has been that it could be contained within “reasonable” limits of between 3.5 per cent and 4 per cent of GDP by March 31, 2013. That now looks very difficult to achieve, if not impossible.

Merchandise trade deficit, the excess of imports over exports, widened to $48.3 billion during the second quarter of the current fiscal year, up from $44.5 billion a year ago. Exports recorded a decline of 12.2 per cent and imports by 4.8 per cent. During the corresponding period last year, exports and imports had increased, making this year’s decline all the more pronounced.

Exports have declined month after month this year, the reason being that the principal markets for India’s exports, the developed countries, have not yet recovered from the recession. There is not much that the Government of India can do to reverse the decline beyond export promotion measures targeted at specific sectors. Recent foreign trade policies have sought to diversify foreign trade away from traditional markets and products. This is a strategy worth pursuing even if it is going to pay dividends only in the long haul.

Imports have decreased but not at the level of decline in exports. The two significant contributories to imports are petroleum and gold. During 2011-12, gold imports were of the order of $56 billion. The Finance Minister has hinted at raising the tariff on imported gold in the Union Budget. The difficulty with tariff barriers and physical controls is that either the higher cost might be absorbed given the inelastic demand, or the trade might be driven underground. The government will, however, have to persist with a wide range of measures to lower the demand, and, hence, imports of physical gold. Attempts at developing and popularising gold-linked deposit schemes, through mutual funds and banks, ought to be encouraged.
Portfolio flows

For the overall balance of payments, the implications of the trade and current account deficits are clear. The dependence on portfolio and other capital flows through foreign institutional investors (FII) continues. Recent months have seen a bounty of such flows into the stock markets, boosting their valuation. Exactly a year ago, the situation was very different as the FII pulled out and the indices tumbled.

Adding to the problem, certain other categories that would help in reducing the trade deficit have been coming in at a slower pace. For instance, net receipts under private transfers and other earnings from “invisibles” such as software exports have grown at a more modest pace than a year ago.

There are reasons to worry over India’s external debt, too, though for very different reasons. Whereas factors behind the CAD are mostly beyond the control of the government, it is wrong policies that have accentuated the problems connected with external debt. As the finance ministry has pointed out, the rise in external debt is largely due to higher NRI deposits, short-term debt and commercial borrowings. Recent government policies have sought to encourage these, driven by reasons of expediency. For instance, the government has sought to tap the global markets awash with liquidity through external commercial borrowings. NRIs have been given special concessions.

These policies represent a U-turn. Not long ago, the government sought to discourage the flow of funds from these sources. The rates on NRI deposits were pegged lower, and by prescribing stiff caps on borrowings through ECBs, the government ensured fewer borrowings. The accumulation of short-term loans might pose a threat to external account stability, if “bunched up “repayments” become due.