Today's Hot Stories - May 03, 2013
10 Headlines for Today(1) PMK leader Anbumani Ramadoss arrested
(2) Parliament disrupted over coal scam
(3) China expects ‘quick’ resolution to Ladakh standoff
(4) Airtel to sell 5% stake to Qatar Foundation
(5) RBI cuts interest rate by 0.25 per cent
(6) U.S. trade office hits out at Novartis ruling
(7) de Villiers’ blitz helps RCB beat the ‘away’ blues
(8) Grand Prix Gold badminton tournament: Sindhu enters semifinals of Malaysia Open, Gurusaidutt out
(9) Mathews steps down as Warriors’ skipper
(10) Hackers find hole in Google Glass security
5 Stories for Today
(1) Narendra Modi’s Patel test
(2) Most Muslims want sharia law, split on interpretation: Study
(3) Insider trading case: Sebi slaps Rs 11 crore fine on RIL firm
(4) Govt clears IKEA Rs.10,500-cr plan for FDI in retail
(5) Reserve Bank of India concerned over dependence on ECBs
(1) Narendra Modi’s Patel test
If BJP asks Modi to put party ahead of prime ministership, his decision would then be what truly sets him apart
Narendra Modi, prime ministerial aspirant, is faced with a problem of Patelian proportions. The party’s middle and lower orders want him to be Prime Minister but, eventually, the day will come when he will have to see what serves his party’s and India’s interests best.
A little reminder from history seems to be in order here because most people remain blissfully unaware of it throughout their lives. Even the few who do know it, often forget its caprices. It is the Gandhi-Patel-Nehru-Party story of April 1946.
In terms of expectations, 1946 was not dissimilar to 2013. It was not known then that the British would be gone in 16 months. That surprise came in February 1947 when Lord Mountbatten announced it out of the blue.
But an interim Indian government was to be formed. That in itself was a major reason for hope to be in the air, just as it is now, including the possibility of an interim government because neither the UPA nor the NDA might manage 272 seats.
In 1946, the Congress, like the BJP now, had to pick a PM. There were three candidates: Maulana Abul Kalam Azad who had been Congress president for six years; Sardar Vallabhbhai Patel, a great organiser and leader with an earthy sense of India and its politics; and Jawaharlal Nehru, with none of these attributes.
The nominations for the new Congress president were due on April 29. Gandhiji had already indicated his preference for Nehru to Azad on April 20.
On the appointed day, 12 out of the 15 Pradesh Congress Committees (PCC) nominated Patel. The remaining three did not nominate Jawaharlal Nehru. No one seems to know what they did.
Gandhiji, stubborn as ever, then asked J.B. Kriplani to canvass support for Nehru. So some signatures were collected from those who were not actually legally entitled to nominate a Congress president. That privilege belonged solely to the 15 PCC chiefs.
But no one challenged this and Nehru’s nomination was accepted. Immediately, Sardar Patel, on Gandhiji’s request, withdrew his nomination.
In fairness to him, Gandhiji did tell Nehru about what had happened. Nehru, it has been recorded, responded with silence.
After Nehru had been foisted by Gandhiji, Azad, who had wanted to continue as Congress president because that was the route to the PMship, decided to support him. But others, including Rajendra Prasad, were most upset that Patel had been asked to stand down (or in Nehru’s words, be ‘Number Two’ which he himself had refused to be).
Why did Patel agree? Firstly, because Gandhiji had asked him to and secondly, because he did not want a divided leadership to confront Jinnah and Co.
BJP’s Patel problem
It looks as if the BJP is faced with a similar dilemma. It has to choose between Mr. Modi as Prime Minister and someone else. Who that someone is doesn’t really matter.
There are four possibilities.
(A) It chooses Mr. Modi, and NDA wins;
(B) It chooses Mr. Modi, and NDA loses;
(C) It dumps Mr. Modi, and NDA wins;
(D) It dumps Mr. Modi, and NDA loses.
Clearly, A is the most preferred outcome for the BJP, and D is the least preferred one. B also is not to be countenanced. So the choice boils down to A and C.
The BJP has to work out the probability of these two events. On current reckoning, it seems to be assigning a very high probability to A and a very low one to C. Hence the tussle between L.K. Advani and Mr. Modi.
But eventually, as the elections come closer, it will have to revisit the odds on C. Even though they will change, they are unlikely to change drastically in C’s favour. Mr. Advani may think he has it in him but he is probably in a minority of one.
Modi’s moment
But politics is about surprises. So suppose something happens that closes the gap between A and C to a narrow one.
Will the party then tell Mr. Modi what Gandhiji told Patel, namely, in the interests of unity, will you stand down? What will Mr. Modi do then?
His decision might have to involve, when the time comes, paying heed to his ‘inner voice’ which places party and NDA above self. It worked wonders for the Congress, if you recall, in 2004.
The problem, however, is that there is no one in the BJP with the moral authority of Gandhiji. This means that if the party has to choose between Mr. Modi and someone else, Mr. Modi will have to show a degree of selflessness not usually seen in politics. Tyag works well in India.
That, truly, will be his real test, the one thing that will truly set him apart, and make him an even bigger and unstoppable force to reckon with, the next time around.
Source: The Hindu
(2) Most Muslims want sharia law, split on interpretation: Study
A majority of Muslims around the world want sharia law to be implemented in their countries but are split on how it should be applied, a Pew Research Center study has found.
A comprehensive study titled "The World's Muslims: Religion, Politics and Society" conducted between 2008 and 2012 focused on 38,000 people in 39 countries and territories drawn from a global Muslim community of 2.2 billion people.
A solid majority of Muslims, notably in Asia, Africa and the Middle East, were in favour of sharia — traditional Islamic law — being adopted as the law of the land.
The percentage of those in favour of sharia being implemented as their country's law varied from eight per cent in Azerbaijan to 99 per cent in Afghanistan.
The study revealed many Muslims were in favour of applying sharia in the private sphere to settle family or property disputes.
However, in most countries surveyed, there was less support for severe punishments, such as cutting off the hands of thieves or executing people who convert from Islam to another faith.
A majority of Muslims are also in favour of freedom of religion, even while backing sharia. In Pakistan, for example, 84 per cent of Muslims want sharia enshrined as official law but 75 per cent believe non-Muslims are free to practice their religion.
Around half of Muslims in the survey expressed concerns about religious extremism, particularly in Egypt, Iraq and Tunisia.
In most countries, a majority of Muslims said a wife must obey her husband, although a majority also said a woman should decide whether or not to wear a veil.
Most Muslims said they do not feel tension between their religion and modern life, prefer a democratic regime, enjoy music or Western movies, even if such pastimes are sometimes regarded as undermining morality.
An overwhelming majority viewed prostitution, homosexuality, suicide or alcohol consumption as immoral but there are sharp differences on issues such as polygamy.
Only four per cent polled in Bosnia and Herzegovina considered polygamy morally acceptable, against 87 per cent in Niger.
A strong majority surveyed said so-called honour killings could never be justified. The only exceptions came in Afghanistan and Iraq, where majorities condoned executions of women deemed to have shamed their families by engaging in premarital sex or adultery.
Violence carried out in the name of Islam was also widely rejected.
Source: The Times of India
(3) Insider trading case: Sebi slaps Rs.11 crore fine on RIL firm
The Securities and Exchange Board of India (Sebi) has fined Reliance Industries group entity Reliance Petroinvestments (RPIL) Rs 11 crore for violating insider trading norms in the shares of erstwhile IPCL before its merger with RIL.
"It may be concluded that by virtue of RPIL having control over IPCL, it was reasonably expected to have access to unpublished price sensitive information of IPCL. RPIL being the promoter having control over the company holding 46 per cent shares of IPCL is inherently expected to have access to price sensitive information. The company being in such a position it is unacceptable that it was not aware of such major/ important decisions of the company IPCL," the Sebi order said.
Share price of IPCL on March 5, 2007, declined by 8.13 per cent on the BSE when the Sensex declined by 3.79 per cent. However, in a divergence from the index, the scrip witnessed substantial price gain on March 8, 2007, and March 9, 2007, subsequent to the announcement of amalgamation of IPCL with Reliance Industries.
The findings of the investigation led to the allegation that RPIL was in the possession of unpublished price sensitive information while trading in the scrip of IPCL prior to announcement of declaration of interim dividend and amalgamation of IPCL with Reliance Industries which resulted in violation of regulation 3 of SEBI (Prohibition of Insider Trading) Regulations, 1992.
Source: The Indian Express
(4) Govt clears IKEA Rs.10,500-cr plan for FDI in retail
The Cabinet Committee on Economic Affairs (CCEA) on Thursday cleared Swedish furniture major IKEA’s Rs. 10,500-crore investment proposal in India, the largest FDI in single-brand retail so far.
This will pave the way for the iconic furnishing and homeware firm to set up 25
exclusive stores and in-house food cafes in the country.
“Yes, it is cleared,” information and broadcasting minister Manish Tewari said, referring to IKEA’s investment proposal.
“This will be the biggest foreign investment in the retail segment till now and will provide an opportunity to Indian small and medium enterprises in a wide range of labour intensive sectors for integrating into global value chain. On the other hand, it will also provide a diverse choice for the Indian consumers for a wide range of products,” Anand Sharma, commerce and industry minister, said.
“This decision has once again re-affirmed the commitment of the government for maintaining a liberal economic agenda,” said Sharma, who described the CCEA approval as “historic”.
Last year, the government had eased foreign investment norms allowing 100% FDI in single brand retail and had removed some of the restrictive conditions including dropping the mandatory 30% sourcing of goods from Indian small enterprises for single brand retail trading.
IKEA, with more than 300 stores across the world and an annual revenue of 27.5 billion euros (about Rs. 190,000 crore) had also sought approval to sell items such as upholstery and other accessories, consumer electronics, leather products, and lifestyle products, food and beverages at cafes in its premises.
IKEA had sought permission to set up cafes and restaurants inside all its stores in India, in line with its global concept.
The government has allowed the company to run food cafes but has prohibited it from selling packed food.
Source: Hindustan Times
(5) Reserve Bank of India concerned over dependence on ECBs
India's strong dependence on external and short-term debts for financing current account deficit remains a key concern for the Reserve Bank, although the deficit may ease in the fourth quarter due to the fall in global commodity prices. RBI said volatility in such flows remains a risk given the weak global economic recovery.
"Private sector external debt has become large and some prudence may be necessary on external commercial borrowing (ECBs) and short-term trade credit," it said in its macroeconomic and monetary development report, which sets the tone for the monetary policy statement.
The country's external debt rose due to a higher dependence on ECBs and short-term borrowings, the central bank said. Short-term debt on a residual maturity basis rose to 44% of total debt and 56% of the foreign exchange reserves by end-December 2012.
"What worries me is the way current account deficit is being financed," said economist Brinda Jagirdar, who has retired from State Bank of India just recently.
Modest pickup in exports and some deceleration in imports are likely to help current account deficit fall in the fourth quarter of 2012-13 after a record high of 6.7% of GDP in the previous quarter. Current account in 2013-14 is also likely to benefit from fall in global commodity prices including oil and gold. However, the ratio FY13 is expected to be around 5%, twice the sustainable level.
"CAD, ekven at this large level, could be fully financed by capital in flows during 2012-13 but the volatility in such flows remains a risk," RBI said. "It is necessary to lower external sector risks by lowering current account deficit to its sustainable level and not become complacent about external in flows," it said, as the possibility of capital outflows remains a concern due to the slowing growth and macro-financial risks.
Economies with high deficit are always remain cautious about external imbalances as sustainability of the deficit faces a risk from sudden geo-political shocks that may cause a sudden stop or reversals of capital inflows.
The Reserve Bank said the external vulnerability indicators worsened further in the third quarter. India's third quarter current account deficit was financed by capital inflows without any reserve depletion. The central bank underscored the need for structural adjustment in the current account through productivity enhancements to boost competitiveness.
Source: The Economic Times
Disclaimer: All news stories and content sourced from freely available material on the internet. All sources are acknowledged.
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