Today's Hot Stories - March 26, 2014 - PT education

Today's Hot Stories - March 26, 2014 

10 Headlines for Today

(1) Narendra Modi begins Jammu visit
(2) No need for CBI, SIT probe into Muzaffarnagar riots: SC
(3) Defiant N Korea fires 2 ballistic missiles
(4) Jet Airways' acting CEO quits
(5) Govt to blame for gas price fiasco
(6) Wal-Mart to recall 174,000 dolls over burn risk
(7) Sony Open: Nadal brushes off bomb scare for victory
(8) Man City beat United 3-0 in EPL derby
(9) SC sets stage for N Srinivasan's exit
(10) World weather body warns of extreme weather due to climate change

5 Stories for Today

(1) Tamil Nadu could shape India's next government
(2) Why Malaysian MH370 jet mystery 'may never be solved'
(3) Sahara makes fresh proposal for repayment of Rs.20,000 crore
(4) Hyundai Motor eyes major expansion with new plant in China
(5) Slump in infrastructure, corporate investment hit India's growth, says IMF

(1) Tamil Nadu could shape India's next government


The politics of forming India's next government could come down to how many seats a 1960s matinee siren can wrest from a rival named Stalin in Tamil Nadu.

At stake are 39 parliamentary seats in Tamil Nadu, a state known for its ancient Hindu temples, its modern auto industry — and a history of electoral landslides.

With pollsters predicting that no party will win a majority in the 543-seat parliament, the caucus returned by India's sixth-largest state could hold the key to forming a government after the five-week general election that starts on April 7.

Tamil Nadu chief minister Jayalalithaa Jayaram — or 'Jaya' to her fans — is riding a wave of popularity that could take her AIADMK party's seat count to 27, according to one survey, potentially casting her in a new role as national powerbroker.

Her party is one of many regional groups whose proliferation over the past two decades has made it impossible for national parties to rule alone in India. Two more are led by female firebrands, Mamata Banerjee in West Bengal and Mayawati in Uttar Pradesh.

The portly, fair-skinned Jayalalithaa bears little resemblance to the singing, dancing heroine of 1960s Tamil cinema. But, at 68, she is probably more popular than she has ever been.

Hopping around the state by helicopter, she is addressing enthusiastic crowds, including one last week near Tiruvannamalai, a holy site where Hindu pilgrims, in an act of devotion, walk around a mountain barefoot at full moon.

"She is the only one who gives voice to the Tamils," said tea seller MK Baskran, an AIADMK grassroots organizer, to noisy agreement from fellow supporters. Others thanked Jayalalithaa for food handouts that sustained their families.

Pundits in Chennai, the former port of Madras founded by the British in the 17th century, describe Tamil Nadu as a 'sweep' state; not a swing state. That is the result of another British legacy: first-past-the-post voting.

"A gap of 4-5 percentage points in the popular vote between the first and second party gives you a hugely disproportionate result," N. Ram, publisher of The Hindu newspaper, told Reuters.

Split like an amoeba

Cinemas in Chennai are screening a digitally restored version of Jayalalithaa's 1965 movie 'One Man In A Thousand', in which she plays a damsel in distress saved by leading man M.G. Ramachandran — or 'MGR' — in the role of a swashbuckling pirate.

As well as bringing her extra publicity, the film revival holds the key to regional politics: It was actor-turned-politician Ramachandran who formed the AIADMK party four decades ago when he was kicked out of the DMK.

"The DMK split was like an amoeba dividing or an earthworm being cut in two," said Chennai journalist and commentator Gnani Sankaran. "These two formations are the major players - always. The others are minor players — always."

The DMK is still led by the 89-year-old M. Karunanidhi, who fired Ramachandran in 1972. But it is his son M.K. Stalin — named in honour of the late Soviet dictator — who is leading the party's rearguard action.

"There's a wave against the Jayalalithaa government's misrule, massive corruption and undemocratic governance," Stalin told the Economic Times last week. Neither party commented to Reuters for this story.

The DMK is, however, riven by in-fighting after quitting the Congress-led government in New Delhi a year ago. The party on Tuesday expelled Karunanidhi's second son, a former cabinet minister, having banned him from the party slate for disloyalty.

The DMK, the Congress and a minor ally won 27 seats in Tamil Nadu in the 2009 election. A decade ago, their alliance won all 39 seats, aiding the return to power of the Nehru-Gandhi dynasty that has dominated Indian politics since independence.

Missing out

Congress, isolated, now faces a wipeout in the state. In one sign of looming defeat, finance minister P Chidambaram has bowed out of contesting his family bailiwick in Tamil Nadu, giving his son the chance to cut his political teeth.

And, although the Bharatiya Janata Party (BJP) is poised to emerge as the largest parliamentary party — with 195 seats according to this month's poll by the NDTV news channel — the Hindu nationalist opposition party has no base in Tamil Nadu.

Even with its allies, the BJP could fall some 40 seats short of the 272 needed for a majority in the national parliament, according to the poll. That is where regional players like Jayalalithaa come into the equation.

Her reluctance to criticise the BJP's candidate for prime minister, Narendra Modi, and a past dalliance with his party, suggest she is positioning herself for power and influence in the next government.

"Jayalalithaa is both in the BJP alliance and not in it," said N. Sathiya Moorthy, director of the Chennai chapter of the Observer Research Foundation, a think tank.

Her ability to dictate terms — or even stake a claim to the premiership — would depend on how big a "last mile" problem the BJP faces in cobbling together a majority.

A weaker BJP result would strengthen Jayalalithaa's hand, as she eyes the alternative of a coalition made up of regional parties, often referred to as a 'Third Front'.

"Within these different groups, anyone with 25-30 MPs is going to be contender for the prime minister's position," said commentator Sankaran. "And if Jayalalithaa has 30 MPs from Tamil Nadu, she will be able to demand the prime ministership."

Source: The Times of India

(2) Why Malaysian MH370 jet mystery 'may never be solved'


Even if searchers are able to miraculously pluck Malaysia Airlines flight 370's 'black box' from the depths of the vast Indian Ocean, experts say it may not solve one of aviation's greatest mysteries.

Planes, ships and state-of-the-art tracking equipment are hunting for any trace of the passenger jet, which Malaysia said crashed in the forbidding waters after veering far from its intended course.

They face a huge challenge locating the Boeing 777's "black box", which holds vital clues to determining what caused the plane to vanish after it took off from Kuala Lumpur en route to Beijing on March 8.

But experts believe the flight data recorder and cockpit voice recorder may not yield answers on the riddle of how and why the plane diverted an hour into the flight, and embarked on a baffling journey to the southern reaches of the Indian Ocean.

The data recorder details the aircraft's path and other mechanical information for the flight's duration, and "should provide a wealth of information", US-based aviation consultancy firm Leeham Co said in a commentary.

But the cockpit voice recorder -- which could reveal what decisions were made by those at the helm and why -- retains only the last two hours of conversations before the plane's demise.

That means potentially crucial exchanges surrounding the initial diversion, which took place halfway between Malaysia and Vietnam, will be lost.

"Clearly, it won't reveal anything that happened over the Gulf of Thailand -- this will have been overwritten by the end of MH370," it said.

Leeham added that it also remains to be seen whether the cockpit recorder will contain anything pertinent about the plane's final two hours, when it is believed to have either ditched or run out of fuel.

Malaysian Prime Minister Najib Razak said Monday that Flight MH370 had gone down in the Indian Ocean with its 239 passengers and crew, citing new satellite data analysis.

But its exact location and the circumstances of its diversion remain a mystery. No distress signal was ever received.

Three scenarios have gained particular traction: hijacking, pilot sabotage, or a sudden mid-air crisis that incapacitated flight crew and left the plane to fly on auto-pilot for several hours until it ran out of fuel.

Malaysia has said it believes the plane was deliberately diverted by someone on board.

But with the travelling public and aviation industry hanging on every twist in the drama, no firm evidence has emerged from a Malaysian investigation to support any of the theories circulating.

British aviation expert Chris Yates said that even if the black boxes are found, "it seems unlikely that we will get that answer" of why the plane ended up thousands of kilometres off course.

"We still have no idea as to the mental state of the pilot and co-pilot, we have no idea if somebody managed to get into the cockpit to seize the aircraft, and we've certainly had no admissions of responsibility since this whole episode started," he told BBC television.

"It is a mystery like no other."

Debris has been sighted far off Australia's west coast but an international search effort has been unable to retrieve any for confirmation, and wreckage could have drifted hundreds of kilometres from where the plane crashed.

"As investigators, we deal with physical evidence and right now we don't have any physical evidence to work with," Anthony Brickhouse, a member of the International Society of Air Safety Investigators, told AFP.

The batteries powering the locator signal of the black boxes will run out in less than two weeks.

A US device capable of detecting that signal even on the ocean floor was being sent to the scene, but weather and treacherous sea conditions have hampered the effort to pinpoint the black box location.

Paul Yap, an aviation lecturer at Singapore's Temasek Polytechnic, said that if the black box is not found, "chances are we are never going to find out what really happened".

"With the new satellite data, I think we can say it is a chessboard," he said of the wide search area.

"The question now is to find which grid on that chessboard to focus on, where the black boxes are."

Source: Hindustan Times

(3) Sahara makes fresh proposal for repayment of Rs.20,000 crore


The Sahara Group on Tuesday submitted a fresh proposal in the Supreme Court seeking to repay Rs. 20,000 crore in five instalments spread over a year, with an initial deposit of Rs.2,500 crore to Securities and Exchange Board of India (SEBI) within three days.

The company said: “The amount raised by Sahara by issuance of OFCDs [Optional Fully Convertible Debentures] is Rs.25,781 crore; the amount deposited on December 5, 2012, Rs.5,120 crore; the amount credited to SEBI by various banks (approximately), Rs.21 crore. The total amount to be paid comes to Rs.20,640 crore.”

“Upon acceptance of this proposal on March 25, Sahara will make the payment of Rs.20,000 crore to SEBI in the following manner: Rs.2,500 crore within three working days of the restriction on operation of bank accounts/deposits being lifted; Rs.3,500 crore by June 30, 2014; Rs.3,500 crore by September 30, 2014; Rs.3,500 crore by December 31, 2014; and Rs.7,000 crore by March 31, 2015.”

It wanted the court to permit the Sahara Group to give an irrevocable bank guarantee at any time for any unpaid amount then due (plus the amount made available by SEBI for obtaining the bank guarantee) or for all the remaining unpaid amounts, instead of cash.

To enable the group to furnish the bank guarantee(s), the amounts (other than the sum of Rs.5,120 crore, which shall remain with SEBI) lying with SEBI may in such an event, to the extent necessary for obtaining the bank guarantee, be deposited with the bank, which is furnishing such guarantee.

The proposal said: “To enable Sahara to generate the necessary funds to make the first and subsequent payments, this court ma

It wanted all restrictions imposed by the SEBI to be withdrawn upon making the first payment of Rs.2,500 crore. The title deeds of the assets, which were deposited with SEBI pursuant to the October 28, 2013 order as security may continue with SEBI and be returned to Sahara, only when it needs “to dispose of/leverage the said assets so as to enable them to honour the payment obligation here under or to provide bank guarantee.”

It wanted SEBI to forthwith undertake examination and verification of the documents and refund to all investors (holding single or multiple accounts), who file their claim, subject to verification, and shall also involve Sahara in such a process. “Sahara would offer all assistance as may be required by SEBI…”

Source: The Hindu

(4) Hyundai Motor eyes major expansion with new plant in China


Hyundai Motor Co plans to build its fourth plant in China for about 1 trillion won ($926.48 million) and start production in early 2016, a source said, in its first major overseas expansion in more than two years.

Hyundai and its affiliate Kia Motors Corp are betting the facility in Chongqing will protect their share of the world's biggest car market, which accounted for more than a fifth of their global vehicle sales last year.

"Considering China's future demand growth outlook, we need to build a new plant to maintain our stable market share of 10% in China," Hyundai said in a statement on Wednesday.

The move signals the end of a period of consolidation for the world's fifth-biggest automaker, which has been focusing on improving quality rather than expanding capacity in a bid to avoid the sort of recalls that have dogged Toyota Motor Corp .

Analysts expect Hyundai or Kia to consider additional production facilities in the United States, China and other countries to address a capacity shortage and defend market share from rivals such as Volkswagen, General Motors and Nissan Motor, which are aggressively boosting capacity in China.

"They are expected to build more plants in China to keep up with market growth," said Ko Tae-bong, an auto analyst at Hi Investment & Securities.

"I also carefully expect Hyundai to build a new plant in the United States as it is physically impossible to further expand production due to capacity constraints."

Group chairman Chung Mong-koo will sign a preliminary deal on Thursday with the government of Chongqing city, in southwestern China, Hyundai said. Hyundai already has three plants in Beijing with its joint venture with Beijing Automotive Industry Holding Co Ltd.

The plant will bring Hyundai and Kia's total China capacity to 2.3 million vehicles a year from a projected two million at the end of 2014, Hyundai said.

Funds for the facility will come from the joint venture and it will aim to start production in early 2016, according to the source who has direct knowledge of the matter.

"The plan is subject to approval from China's central government ... Hyundai looks to break ground on the factory this year, and expedite it as the project has been delayed," said the source, who was not authorised to speak publicly about the matter.

Hyundai shares jumped 4.5% to 243,000 Korean won, their highest level in more than two weeks, beating the wider market's 1.2% rise as of 0521 GMT.

China bright spot

The last time Hyundai or Kia announced a new factory project was in late 2011, when Kia unveiled a plan to build a third China facility. That plant will be completed early this year.

China is a bright spot for Hyundai, which has been grappling with lacklustre sales in the United States and Europe.

The Asian giant was the biggest market for Hyundai and Kia last year, which saw their combined sales jump 18% to 1.58 million vehicles.

Those sales should rise 8% to 1.7 million vehicles this year as the new Kia plant comes online. Hyundai also plans to start production at a new commercial car plant in Sichuan province this year.

Global carmakers including Ford Motor Co and Volkswagen are stepping up investment in China's hinterland, where rising personal income is fuelling car sales.

In 2012, Ford announced it would invest $600 million to make more cars at its plant in Chongqing, and GM unveiled plans to build a $1 billion auto assembly plant in the city.

The focus on Chongqing comes as car markets in China's coastal cities grow increasingly crowded and vulnerable to restrictive government policies.

On Wednesday, China's eastern city of Hangzhou started restricting car sales, joining major cities including Shanghai and Beijing in the fight against pollution and traffic jams.

Source: The Economic Times

(5) Slump in infrastructure, corporate investment hit India's growth, says IMF


The slump in infrastructure and corporate investment has been the single largest contributor to India's recent growth slowdown, an International Monetary Fund (IMF) working paper has said.

"India's Investment Slowdown: The High Cost of Economic Policy Uncertainty", authored by Rahul Anand and Volodymyr Tulin was released yesterday.

It finds that heightened uncertainty regarding the future course of broader economic policies and deteriorating business confidence have played a significant role in the recent investment gloom.

"The recent Indian investment slowdown has been, to a large extent, reflective of deteriorating confidence and rising policy uncertainty," it said adding that some widening of interest rates has accompanied these developments; however, only a portion of the investment slowdown can be attributed to the increase in financing costs.

"We find that heightened policy uncertainty has had a particularly pronounced link with the decline in new investments as well as with the rising value of investments that were postponed or cancelled. After controlling for these factors, financing costs do not appear to be a critical factor in explaining the decline in new investments," the paper said.

Therefore, it appears that the current Indian investment slowdown is primarily driven by weak business confidence and policy uncertainty, though factors not explicitly captured in the regression analysis, for example supply bottlenecks, are also at play, the two authors wrote.

"In the short term, lowering nominal interest rates may provide some relief in terms of a reduced interest burden, especially to corporates with high leverage," the IMF working paper recommended.

However, in the medium term, lower rates with little slack in the economy would stoke inflation further and exacerbate inflation trends across sectors, hurting investment.

Source: The Indian Express

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