Ajit Pawar's resignation signals family feud, pressure tactic

Mumbai: Leaders of the Sharad Pawar-led Nationalist Congress Party will meet in Mumbai this afternoon to discuss next steps after the resignation of party leader Ajit Pawar as Maharashtra's Deputy Chief Minister; sources say partymen are expected to request Mr Pawar, who has quit over allegations of an irrigation scam, to withdraw his resignation. Senior leader Praful Patel is flying to Mumbai to handle the crisis.

Immediately after Mr Pawar, who is also Sharad Pawar's nephew, announced last evening that he was resigning, the NCP's 19 ministers in the state too handed resignation letters to the NCP's state president, a gesture that was described by party leaders as expressing solidarity with "the state's tallest leader." Immediately too, speculation began over why Mr Pawar had really quit - there has been talk of a power struggle between Sharad Pawar and his powerful nephew, hotly denied, but fuelled by the fact that the NCP ministers sent their resignation letters very soon after Mr Pawar senior said that no other minister would quit and that there was no threat to the NCP-Congress government in Maharashtra. The NCP has 62 MLAs in the 288-member Maharashtra Assembly.

The complicated politics being played out in Mumbai is also seen as pressure tactics at two levels. At the state level, where ties between the two partners have been less than amicable ever since Chief Minister Prithviraj Chavan of the Congress began a clean-up drive. Several NCP leaders like Mr Ajit Pawar and PWD minister Chhagan Bhujbal among others face corruption charges and the latest crisis is being seen as a signal from the junior partner that the Congress and its zealous CM must back off. Mr Chavan said in a statement last night, "I have received a letter of resignation from Mr Ajit Pawar. He has also suggested some alternative arrangements about the two portfolios he held - finance and energy. After speaking to leaders of both parties, I will take a final decision."

In Delhi, the Congress - still hurting from the blow dealt by Mamata Banerjee who exited the UPA government last week - is a soft target for allies like the NCP, which can flex muscle and ask for their pound of flesh when a Cabinet reshuffle is effected soon.

Mr Ajit Pawar faces allegations that as Maharashtra's irrigation minister some years ago, he allegedly granted 32 contracts within three months, worth Rs. 13,500 crores, in the state's Vidarbha region at high rates. The Opposition alleges that a change in tender processes meant that all tenders of over a crore required his signature. It has also been alleged that Mr Pawar overruled officials who tried to stop this. The Vidarbha region has come to be known for desperate and impoverished, debt-ridden farmers committing suicide. A failed monsoon this year has highlighted the problem of faulty canals that do not work throughout the region.

He said yesterday, ""I am just an MLA now. I won't accept any ministry or post till I am cleared of all allegations... I have not done this, why should I suffer the allegations? But if I did not resign, people will think I am guilty and did not want to give up my political posts." Mr Pawar also quit his post of the state's Power Minister.

This July, the Chief Minister announced, much to the NCP's dismay, that his government would present a white paper on what the state had spent on irrigation in the last 10 years; this after the opposition alleged that Maharashtra spent over 70,000 crores in that period but added only 0.1 per cent to the area under irrigation. Mr Pawar was the state's water resources minister between 1999 and 2009.

A senior NCP leader said yesterday that Mr Pawar had put in his papers because the NCP was "tired of the whisper campaign, mainly by friends." He did not name anyone but was clearly indicating Mr Chavan.

The white paper on irrigation is slated to be tabled in the next session of the Maharashtra Assembly. A report of the state auditor or CAG is also expected in a few months. The Opposition has also demanded a CBI inquiry into the alleged scam.

The Congress has already weathered an NCP crisis a few months ago, when, after the Presidential elections, Sharad Pawar complained that his party was not getting its due as an ally. That came soon after Mr Chavan announced the white paper and it was clear that the conflict in Maharashtra between the two partners lay at the heart of the sulk. The crisis blew over with the setting up of a UPA coordination committee, but the NCP's misgivings about Mr Chavan continuing as Maharashtra Chief Minister are said to remain. There has been speculation that Mr Chavan might be called back the Centre  in the next reshuffle of the Manmohan Singh Cabinet, though he has denied this. 

From: NDTV

Former President Pratibha Patil in trouble over gifts

New Delhi: Controversy seems to be following Pratibha Devisingh Patil even after she finished her term as President of India.

Following a Right to Information (RTI) inquiry that revealed Ms Patil had taken several "gifts" given to her when she was President to her hometown Amravati, Rashtrapati Bhawan has acted. In his application, RTI activist Subhash Agarwal has said that the former President must return all the gifts by January 13, 2013.

In reply to the application, Rashtrapati Bhawan has said that all articles should be back by January 13. "It was a decision taken by President Pranab Mukherjee soon after he took office," said the President's Press Secretary.

When contacted by NDTV, the Patil family said that they were yet to receive any intimation from Rashtrapati Bhawan about this.

The gifts include things like a stone box given to Ms Patil as a memento by visiting US president Barack Obama.

Ms Patil's predecessor A P J Abdul Kalam had also moved gifts out of Rashtrapati Bhawan, but they were for display at the Defence Research and Development Organisation, where he used to work.

Conventionally, presidents and other dignitaries who are given these gifts deposit them with the government. 

Phone was tapped, says Mamata; not true, says centre

Kolkata: After pulling out of the UPA government over differences on the Centre's recent decision to hike diesel prices and allow Foreign Direct Investment in retail, West Bengal Chief Minister Mamata Banerjee today hinted that the central government was tapping her phones.

"If you have the central government in your hand you can get the phones tapped. It has happened with me before. My number had three copies. When I would go to Nandigram or Midnapore, I could not use my number as it was being used in Kolkata," said Banerjee in Kolkata.

She said that she had filed police complaints then against the misuse of her phone.

"I have been in the central government and I am aware about all these methods. There is no need to make me open my mouth," added Banerjee.

Home Minister Sushil Kumar Shinde has, however, denied this, saying Mamata Banerjee's phone was 'never' tapped.

(With inputs from Indo-Asian News Service)

FDI in retail: Mamata Banerjee-less UPA will need Mulayam Singh Yadav on its side, why he may oblige

New Delhi: Mulayam Singh Yadav, crucial to the survival of the UPA government, is making the Congress squirm.  He co-starred with Left leaders today in a massive protest in Delhi against the new reforms introduced by Dr Manmohan Singh. Like the Left and the BJP, the Samajwadi Party chief is also against opening India's vast retail sector to foreign super-chains and has attacked them publicly.

Mr Yadav walked to a police station with Left leaders like Sitaram Yechury and Prakash Karat to court arrest.  But he pointed out that he  did not share a stage with BJP leaders.  I am supporting the government to stop communal forces. BJP se hamara koi vaasta nahi hai (We have no relationship with the BJP)."

Sources say that the regional powerhouse has indicated that he is not ready to be a part of attempts to bring down the government and force mid-term elections. Like the Left and the BJP, the Samajwadi Party chief is also against these reforms and has attacked them publicly. That doesn't mean that the Samajwadi Party won't cash in on the government's new vulnerability.

"Don't take our support for granted," Ram Gopal Yadav, a senior party leader and Mr Yadav's brother, warned earlier this week.  The UPA is in a minority after its biggest ally, Mamata Banerjee, quit the government over last week's decisions to raise diesel prices, reduce the amount of subsidised cooking gas for households, and allow foreign giants like Wal-Mart to set up large retail outlets in India.  Mr Yadav's party has 22 MPS, three more than Ms Banerjee. But his party has said it will not join the government, and that it will decide in the next few weeks whether to continue external support to the coalition. 

In fact, Ram Gopal Yadav, said clearly that the party was prerparing its list of candidates for the 2014 elections, which is when they are due. But remarks like those - and there have been many - are political swagger that belie careful calculations. "Let the Congress get some wisdom," Mulayam Singh had said yesterday. "What have they given the people apart from corruption and rising prices?" he asked.

But behind the scenes, sources in the Congress say that back-channel talks with the Samajwadi Party chief are showing results. After initially announcing that the party would meet today to decide whether to continue support to the UPA, the session has been deferred. Samajwadi Party sources say that their leaders are worried that the Congress' decline could strengthen the BJP and that may bring Narendra Modi to power.

Mr Yadav's party has often justified its support to the UPA as its contribution to ensuring that the "communal forces" of the BJP are restrained.  Uttar Pradesh's large Muslim population is a crucial votebank for the Samajwadi Party. The BJP has been dithering over whether to pick Gujarat Chief Minister Narendra Modi as its prime ministerial candidate for the next general election.  Mr Yadav wants to impede any plans that could help Mr Modi's ascension to the national centrestage.

There's also the fact that Mr Yadav's rival, Mayawati, has made it clear that she is firmly on the UPA's side for now.  Since her humiliating defeat in Uttar Pradesh earlier this year - Mr Yadav's son, Akhilesh, powered the campaign and his party's victory and is now chief minister-  Mayawati has found it expedient to team with the UPA on important policies.  Though her party is opposed to FDI in retail, she is not participating in today's bandh or strike.  She has 21 Lok Sabha MPs, just one less than Mr Yadav, and like him, she guaranteed her support to the UPA in a letter to the President when the government was formed.  Even if Mr Yadav kills his support to the government, she can keep it in power. Mr Yadav is unlikely to take any move that would allow her that sort of prominence at the centre.

If that looks like a win-win for the Congress and the government, it will have to consider the fact that Mr Yadav could turn into a tougher opponent of reforms. He warned the government of a "bigger agitation" along with other parties if there is no rollback of its reform decisions. And he knows that with the Trinamool exiting, the Congress' options of allies to support it are also shrinking.

Mr Yadav's decision is important not only for the Congress' future, but also for the way the BJP will plan its next steps. The main opposition party reportedly feels that till the SP decides to ditch the Congress, the BJP will not be in a position to take political advantage of the situation. As long as Mr Yadav keeps the UPA safe, any move to seek a special session of parliament or pushing for a confidence vote to test the UPA's strength could well back-fire.

(with inputs from Agencies)

BJP packs mean punchline for Congress

Jaipur: After the success of cartoons lampooning the ruling Congress's role in the coal scam, the Bharatiya Janata Party (BJP) has now launched an all-out cartoon war. Today, demonstrating against the UPA's decision to allow Foreign Direct Investment or FDI in retail, a BJP worker on his scooter, carrying posters inspired from various internet and blogging sites was quite the centre of attraction.

BJP worker Mahendra Shastri from Jaipur's walled city area, set out to be part of the BJP's dharna at the city's Badi Chaupar. On his scooter were BJP flags and some interesting posters.

One of them, clearly a take on Pirates Of The Caribbean, showed Sonia Gandhi and Manmohan Singh in lead roles. The caption read 'Dakuon Ki Rani Choron Ka Sardar.' It was obviously a poster made for the Hindi release of Pirates of the Caribbean 2 - the uncomplimentary reference to the Prime Minister and the Congress President didn't appear to have daunted the party worker in the least.

Speaking to NDTV, Mahendra Shastri said his aim was to protest and show people how the aam adami was at the receiving end of the UPA's unfair policies especially when it came to price rise.

Mr Shastri's second poster showed Manmohan Singh and Sonia Gandhi lugging an LPG cylinder between them. Mrs Gandhi in an ordinary saree and Dr Singh in a striped black shirt were made to look like an ordinary middle class couple, burdened with the hike in LPG prices.

The state secretary of the BJP, Sunil Kothari, says he received such a tremendous response to the cartoons on coal that even after the protest was over they actually left the hoardings for a day at the site of the protest at Ambedkar Circle in Jaipur for people to stop and stare. Now they plan to take these cartoons and posters to districts units every time they stage a protest. Clearly, the BJP has discovered that communicating through cartoons is a more effective way of taking on the UPA than mundane political rhetoric. 

FDI in retail: Mamata Banerjee's ministers to resign today, PM to address nation, trust vote likely

New Delhi: Mamata Banerjee's ministers will meet Prime Minister Manmohan Singh around 3 pm today to resign from his government over the new reforms he cleared last week. They will then head to Rashtrapati Bhawan where they will formally withdraw their letter of support to the ruling UPA coalition in which Ms Banerjee's Trinamool Congress was the second-largest ally. With his government reduced to a minority, the Prime Minister will most likely be asked by the country's President to seek a trust vote in Parliament.

This evening, the PM is expected to explain on television the economic measures for which he has staked his government. Even the opposition BJP concedes that he is likely to win his vote of confidence. The survival of the UPA depends on regional heavyweights Mulayam Singh Yadav and Mayawati, who provide external support to the government. So far, neither has indicated a change of heart, though Mr Yadav has warned that his party should not be taken for granted.

On Facebook last night, Ms Banerjee attacked the government for the notification it issued yesterday stating that its new policies for foreign investment in the retail sector are in effect. A week ago, Ms Banerjee said she would not accept either this or a hike in diesel prices and a cap on subsidised cooking gas for households. "Is it ethical, moral and democratic for a minority government to issue government order forcibly and hurriedly when massive protests against it are taking place across the country?" she posted on her Facebook page.

The relationship status for the UPA and Ms Banerjee has for long been "It's complicated" with the chief minister often challenging the policies the government wanted to champion. Last year, when the cabinet first cleared 51 per cent foreign direct investment for multi-brand retail, Ms Banerjee threatened to quit the government, and the policy was shelved, provoking international criticism, and a loss of both face and investor confidence. This time around, the Prime Minister was resolute about standing his ground.

So though Ms Banerjee gave the government 72 hours of notice, creating a window for negotiations, no concessions were offered. The fact that the new retail guidelines were notified hours after she said she was sticking to her schedule for exiting the UPA was a clear message that the coalition was resigned to a future without her.

Agriculture Minister Sharad Pawar, whose party is another key member of the UPA, refuted Ms Banerjee's accusations that she hadn't been consulted about the new economic measures. He said that he was present along with Ms Banerjee at a meeting of senior leaders of the coalition when Dr Singh discussed FDI in retail. "Nobody was happy to do this...not even the PM....but it was required," Mr Pawar said.

Sources say that to appease other crucial partners like Mulayam Singh Yadav and Mayawati, the government is likely to announce a 50 paise rollback in diesel prices, and increase the quota of subsidised cooking gas cylinders per household from six to nine, and that the decision was not shared yesterday to prevent opposition parties who called a massive nationwide strike from claiming credit for the concessions.

Mayawati helps government, her party to skip bandh

New Delhi: Mayawati's Bahujan Samaj Party (BSP) has said it will not participate in the nation-wide strike called by opposition parties on Thursday to protest the government's reform measures announced last week.

This will come as a huge relief to a beleaguered UPA, which is now in a minority in Parliament after the Trinamool Congress announced it was exiting the Congress-led ruling coalition. The ruling party is now looking at the BSP, which supports the UPA from outside, as its best bet to make up the numbers it needs to survive. The BSP has 21 MPs, two more than the Trinamool Congress.

Mulayam Singh Yadav's Samajwadi Party (SP), which has 22 MPs and was for long considered the Congress' Plan B if Mamata Banerjee ditched the UPA, has been playing hard to get. The SP has said it will participate in tomorrow's bandh.

The BSP's Uttar Pradesh chief Ramachal Rajbhar's announced that the party would have nothing to do with Thursday's strike at a meeting of party workers today. Sources in Mayawati's party have said that she will decide on her relationship with the UPA at a meeting of her party on October 9 - the party supports the UPA from outside. Though the BSP too has opposed the hike in diesel prices and the new norms on foreign direct investment in retail effected last week, Ms Mayawati is seen to be the softest on the government right now. Unlike Ms Banerjee or Mr Yadav, who are riding recent electoral successes and would not mind mid-term elections to extend their gains, Ms Mayawati was the big loser in the Uttar Pradesh assembly elections this year and she will not want early polls since she is unlikely to make too many gains.

BJP keen on special Parliament session to corner government on FDI

New Delhi: With the Trinamool Congress deciding to quit the United Progressive Alliance (UPA), the Bharatiya Janata Party (BJP) sees an opportunity to corner the ruling coalition and is planning to demand a special session of Parliament to discuss the issue of Foreign Direct Investment (FDI) in retail but its key ally Janata Dal (United) is not in favour of this move.

The BJP says it feels the government will not last its full term till 2014 if the Trinamool Congress goes ahead with its decision to exit the UPA.

Senior party leader L K Advani said his party would like a special session to be convened to discuss this issue, holding that the government has committed a "breach of trust" of Parliament.

The party, however, said it will consult its allies of National Democratic Alliance (NDA) after tomorrow's nationwide agitation against FDI in retail and diesel price hike before firming up its position.

"Yesterday's development has destabilised the present government. It is only a matter of time that it will collapse. The present government cannot last its full term till 2014. Anything can happen before that," Mr Advani told Press Trust of India.

He said since the then Finance Minister Pranab Mukherjee had promised in both houses of Parliament that the decision on FDI in retail would not be taken before evolving a consensus with all stakeholders, the government had committed a "breach of trust of Parliament".

"The promise had been made to both houses of Parliament by the then Finance Minister Pranab Mukherjee that we will not bring FDI in retail until a consensus is evolved with all stakeholders including all political parties and all Chief Ministers. Therefore, we hold that the announcement of FDI in retail is a breach of trust of Parliament," Mr Advani said.

He said "therefore, we would request for convening of a special session of Parliament. We will make a formal request to the President for the special session after the September 20 nation-wide bandh called by us."

Asked whether there is a need for convening a special session of Parliament, JD(U) leader Sharad Yadav said there is "no need" for it as it will not solve any problem.

BJP spokesperson Prakash Javadekar said "our leader L K Advani has said that we can demand a special session of Parliament on the issue as the Prime Minister had promised on the floor of the House that this is an era of federalism and if we bring FDI in retail, we will try and build a consensus before".

"We in NDA will decide on whether to convene a special session of Parliament... We will decide at the NDA meeting after tomorrow's nationwide bandh," he said. 

Prime Minister will make final attempt to change Trinamool's mind on Friday

New Delhi: The Prime Minister is likely to make a last attempt to persuade the Trinamool Congress to reconsider its decision of exiting the UPA government when its ministers come to resign. The TMC's six ministers are expected to resign on Friday.

At the same time, sources say, both the Congress and the government are standing fast on the reforms decisions taken last Friday that have now put the UPA government in a minority in Parliament, following the TMC pull-out.

The government also remains confident that it will manage the numbers and survive a trust vote if required in Parliament.

The sources said that both the PM and Congress Chief Sonia Gandhi are unanimous in their decision to push through the reforms. Both the party and government are firm that there will be no rollback on foreign investment in retail as well as the hike in diesel prices and a cap on subsidised LPG cylinders for homes.

The party has already announced that the states ruled by it will increase the cap on subsidised cylinder from six to nine. Delhi has already done so for the poor.

About the reported secrecy around the Cabinet decision on allowing FDI in multi-brand retail, the sources say that the decision was taken on September 14. The PM consulted Sonia, and allies Sharad Pawar and Farooq Abdullah. DMK's T R Baalu was also informed.

The government consciously decided not to circulate papers before the Cabinet meeting regarding FDI in retail. Most cabinet ministers were also in the dark about the consultations on FDI and that Cabinet would take it up soon.

A day before the Cabinet meeting, commerce minister Anand Sharma spoke to Mamata Banerjee but did not raise the issue of FDI in retail with her.





 

From: NDTV

Did Nitish Kumar just put NDA on notice? His comment suggests he's up for grabs

Patna: With the UPA government reduced to a minority after Mamata Banerjee's withdrawal, political alignments are shaping and reshaping themselves virtually by the hour. And regional parties are looking at pushing their agendas and demands in the politically uncertain situation. Though it is the Congress which is in most pain right now, the Bharatiya Janata Party-led NDA got a bit of kick in the shins as well.

It came from Bihar chief minister Nitish Kumar, who said that his party, the Janata Dal (United) was willing to support whoever gave the state special status. "Whoever supports special status for Bihar, we will support them at the Centre," Mr Kumar said.

His party, which is in alliance with the BJP in Bihar, has 22 MPs in Parliament, three more than the exiting Trinamool Congress. He said that Bihar, which has 40 Lok Sabha seats, will play a lead role in deciding who comes to power next.
 And if Mr Kumar indicated his party was available, the Congress suggested it was available. "Several states including UP, Bihar need special packages, so we will have to discuss," Congress General Secretary Digvijaya Singh told NDTV. He also said that Mr Kumar had "proved" his secular credentials several times, while pointing out that he was the Railway Minister during the Godhra riots in 2002.

But JD(U) chief Sharad Yadav, who is also the NDA convener, made light of Mr Kumar's remark. "I speak to Nitish Kumar three times a day... He is usually three-four places ahead of me so what can I say about what he has said... there is nothing of the sort," he said.

The BJP, which leads the NDA coalition, of which Mr Kumar's JD(U) is a key constituent, downplayed the latter's remark. "You misunderstood what he (Nitish Kumar) was saying. He was taunting the Congress as there was a request for special assistance earlier. There is nothing more to it," said BJP spokesperson Prakash Javadekar.

Earlier this year, the Centre rejected the 'special status' tag for Bihar which would entitle the state to large loans, major tax concessions, financial packages, infrastructure development, and a concerted effort by the Centre to boost private investment in Bihar. Mr Kumar's administration says that when Bihar was bifurcated in 2000, it lost a significant part of its natural resources to the new state of Jharkhand. In retaliation to the Centre's refusal, Mr Kumar began his Adhikar Yatra (Rights March) from Bettiah in West Champaran district today. It will culminate on November 4 with a rally in Patna, the first since in the state capital in nearly seven years.

Over the last few months, the relationship of the BJP and the JD(U) has been disturbed by the chief minister's remarks against senior BJP leader Narendra Modi. Mr Kumar has said that as the largest party in the ensemble, the BJP has the prerogative of picking the coalition's prime ministerial candidate. However, he has warned that he will exit the group if the BJP makes Mr Modi its nominee. 18% of Bihar is Muslim, and their vote is crucial for Mr Kumar. He has stressed that the NDA's prime ministerial candidate must have secular credentials - a thinly-veiled remark against Mr Modi, whose ambitions to move to the national landscape from Gujarat are hampered by the communal riots in his state in 2002.

Congress-led Kerala rejects 51% FDI in multi-brand retail

Kochi: Congress-ruled Kerala Chief Minister Oommen Chandy today said the Centre's decision to allow 51 per cent foreign investment in multi-brand retail business would not be implemented in the state.

"Kerala government has already informed its position to the central leadership. We are not in favour of that. We will not implement it in Kerala," Mr Chandy told reporters.

"The central government has given freedom to each state on whether it is to be implemented or not. So, at any cost, we will not proceed with this," the Chief Minister said.

Announcing some major economic reforms, the Centre today announced operationalisation of 51 per cent Foreign Direct Investment (FDI) in multi-brand retail, despite opposition from certain states, including those ruled by the Congress and its allies including Mamata Banerjee-led Trinamool Congress (TMC).

The decisions, which have prompted angry reactions from its key ally TMC, as well as BJP and Left parties, came a day after the government announced a hike in diesel prices and capping supply of subsidised LPG cylinders to cut oil subsidies.

"Let us not confuse consensus with unanimity. For unanimity, we will have to wait in eternity. This (today's decision) has consensus," Commerce Minister Anand Sharma told reporters in the national capital, while conveying the message that the Centre has decided to go ahead with the reforms notwithstanding opposition.

Hope the Indian housewife rises to the occasion: Ambika Soni on LPG limit

New Delhi: Union minister Ambika Soni  has said in reaction to the restriction of subsidised gas cylinders announced on Thursday night, "I do hope that the Indian housewife will once again rise to the occasion. As a woman, I know how difficult it will be as the Indian housewife has to manage budgets."

Earlier, BJP leader Sushma Swaraj had said, "I wish the woman president of the Congress Party (Sonia Gandhi) had felt the problems of a lady of the house."

After Thursday night's announcement, the government will allow only six subsidised gas cylinders in a year at a cost of around Rs. 400. Any cylinders above that will cost a family Rs. 750.

"As a member of the council of ministers I do realize the imperative of raising prices of commmodities like diesel and LPG, but this tough measure is imperative for growth. Sensex and industry has welcomed as signals in the right direction by the government," Ms Soni said.

She added that tough decision hurt but they have to be taken so that the government has money to spend on social welfare and infrastructure.

She also said that chief ministers could "make the bitter pill more palatable". The last hike in petrol prices of Rs. 7 was softened by states reducing taxes, after protests by allies and opposition parties.
 

In Amethi, Rahul Gandhi faces protests from angry villagers

Amethi: Congress General Secretary Rahul Gandhi, who is on a two-day visit to his parliamentary constituency Amethi, faced protests from unhappy residents for the second day in a row today. While he faced angry college girls yesterday, villagers protesting against lack of roads confronted him today.

Villagers from Chachkapur gathered outside Rahul Gandhi's guest house this morning and shouted slogans, asking him to leave Amethi. This forced the young MP to invite them for talks.

Yesterday, on the first day of his visit, girls from Rajkiya Balika Inter College blocked the road which Mr Gandhi was to take on his way to inaugurate a bank branch. The students were reportedly upset over lack of basic amenities in their college.

Mr Gandhi's cavalcade was diverted to another route after local intelligence unit alerted the Special Protection Group (SPG) about the protests. The students later raised slogans and condemned the MP for not meeting them.

Mr Gandhi is in Amethi to attend a District Monitoring and Vigilance Committee meeting at the collectorate, party sources said. He is expected to meet party workers, distribute tricycles in Salon area and take part in a closed door workers' meet in Jamo area before leaving for Delhi, sources added.

In the Uttar Pradesh Assembly polls held earlier this year, the Congress lost eight out of the 10 Assembly seats in the twin Lok Sabha constituencies of Amethi and Rae Bareli despite Rahul Gandhi campaigning extensively in the state. While Mr Gandhi is an MP from Amethi, his mother and Congress President Sonia Gandhi is an MP from Rae Bareli. The Congress has had a stronghold in both these constituencies since decades.

(With inputs from Agencies)
 

Coal scandal: Four coal blocks de-allocated, two assigned by NDA

New Delhi: Up against allegations that the government implemented a coal policy that provided windfall benefits to private players and cost  the country thousands of crores,  the Coal Ministry has decided  today to de-allocate four coal blocks given to companies who did not develop them within the deadlines  specified in their contracts.

The recommendation for revoking these coal permits was made by an inter-ministerial group (IMG) which is studying 58 companies, public and private, who have not made adequate progress and were sent notices in April. The IMG  met representatives of 29 private firms last week to hear their defense. Today's recommendations are the first offered by the IMG since it was set up in July. 

The companies whose coal blocks will be taken away include Castron Mining Limited, Fieldmining and Ispat Limited, and DOMCO Smokeless Fuels Pvt. Limited.

A company named Shri Virangana Steels Limited will lose a portion of the bank guarantee it provided when it filed its application.

Monnet Ispat and Energy Limite  has made substantial progress in the coal block it was given but did not provide a bank guarantee. It  will now have to submit an amount that  equal  to three years royalty within a month or lose it coal block.

Action against defaulters and under-achievers was promised by the government after a report by the national auditor said the government had lost upto 1.86 lakh crores because its coal allocation policy was not transparent. The auditor or CAG said coal fields should have been auctioned. The government responded that earlier laws did not allow for a competitive bidding process, and that the extensive process required to change policy would have hurt industrial development and the economy.

Its defense has been somewhat punctured by the fact that a long list of firms that got coal fields at a fraction of their true worth then failed to begin mining.  While the inter-ministerial group is looking at companies guilty of squatting, the CBI has begun filing cases against firms and their executives who misreported their finances and technical expertise to corner coal blocks.

The coal scandal paralysed the last session of parliament because of daily disruptions by the main opposition party, the BJP, which is demanding the PM's resignation over "coal-gate."

Among revoked coal permits, a firm that appears close to BJP

New Delhi: Among the four firms whose coal licenses have been revoked yesterday by the government is Castron Mining. 

In 1999 when the BJP-led NDA was in power, Castron Mining was given one coal block in Jharkhand. In India,  private firms cannot operate coal mines for commercial use -the coal blocks they get have to feed power, steel or cement plants.

Castron was meant to use its coal block in Jharkhand for an iron and steel project.   Because it has yet to begin mining, its coal license is being cancelled.

Castron's office at Nariman Point in Mumbai is shared by businessman Anup Aggarwalla's BLA Group , which has interests in the power sector. Both companies list the same address on their websites. Mr Aggrawala's firm was allotted two coal blocks in Madhya Pradesh in 1996.

Mr Aggarwala is listed as the co-convener of the BJP's Commerce Cell on the party's website.  In 2009, he was the BJP's candidate for the Rajya Sabha election from Ranchi, but lost.

In June 2012, the businessman was also part of a business delegation to Tokyo led by Madhya Pradesh Chief Minister Shivraj Singh Chouhan. 

Mulayam Singh Yadav talks of mid-term polls again, doesn't discount him becoming PM

Kolkata: Mulayam Singh Yadav has sewn up his election game plan in Kolkata and says those elections can happen before 2014. And though he has clearly taken a lead in cobbling together a non-Congress and non-BJP alternative, he insisted today that any Third Front would take shape only after the next Lok Sabha elections.

Mr Yadav has made no bones about the fact that after his party's spectacular showing in the Uttar Pradesh Assembly elections, he is eyeing a bigger role for his party at the Centre. Asked if he was in the running for being the next Prime Minister, the veteran politician said, "I am not in line, but I am not a sadhu-sant (saint) either.

The Samajwadi Party, he said, would fight elections alone. "The Third Front can happen only after the polls. It will depend on the situation," Mr Yadav said. He also refused to say who of the two West Bengal rivals, the Left and Mamata Banerjee, would be part of such a Front, merely stating that, "We will keep good relations with all parties." Mulayam Singh Yadav has for years had political affinity with the Left parties and has joined hands with them on several issues like FDI in retail and the coal allocation scam in recent times.

But the Yadavs, Mulayam and son, Akhilesh, have also indicated during the Kolkata sojourn that they are willing to explore new equations. Mr Yadav said today that he had the greatest regard for Ms Banerjee and described a meeting between her and son Akhilesh yesterday as "very good talks." After the meeting Mr Yadav junior had said, "After coming to Kolkata, I would not have felt good not meeting Didi. It was necessary to meet her." Just a few months ago, the Congress managed to blunt a growing closeness between Mr Yadav and Ms Banerjee ahead of the Presidential elections. Ms Banerjee partners the Congress at the Centre, but that relationship has been at breakpoint for some time now. 

A common political imperative binds Mamata Banerjee and Mulayam Singh Yadav - both would like early elections to consolidate on their big wins in their respective states. In the first flush of victory and from a position of strength they know that they are likely to do much better now than after two years, when the honeymoon period is well over and anti-incumbency factors set in. Ms Banerjee swept the Assembly elections in West Bengal last year; Mr Yadav's Samjawadi Party won UP early this year.     

What Mr Yadav was startlingly unambiguous about today was where exactly he stood in his equation with the Congress, that leads the UPA government at the Centre.

"Let me make it clear, the Samajwadi Party does not support the UPA government. The Samajwadi Party is against communalism. If the Congress is weakening and needs support against communalism, we may provide that support." Not words of comfort for the ruling party which depends heavily on Mr Yadav to bail it out at crucial moments. Mr Yadav's assertion today that "the situation is such there may be elections earlier than 2014," makes it worse.

For three days in Kolkata, where his party is holding a convention, Mr Yadav has appeared determined to prove he's on a different team. Yesterday he had slammed the Congress for financial scams, especially the coal swindle that has forced the government on the defensive amid allegations of entrenched corruption. This after referring to his Samajwadi Party as the opposition on Monday.

That distancing from the Congress continued today when he said that both the national parties - the Congress and the BJP have weakened and are plagued by issues. He said that he would not field a candidate in Congress president Sonia Gandhi's constituency Rae Bareli as a return of favour for the Congress not contesting against his daughter-in-law Dimple in the Kannauj by-election a few months ago, but would not promise the same in Amethi, Rahul Gandhi's constituency. His party colleagues had made things rather awkward yesterday by saying that they saw little political ability in Rahul Gandhi.  Today Mr Yadav wished Mr Gandhi much luck.

(With PTI inputs)

Govt may allow foreign airlines to invest in aviation sector

New Delhi: Prime Minister Manmohan Singh, who has had to face some stinging criticism both at home and abroad for failing to push reforms that are crucial to revive a depressed economy, meets his ministers today to discuss norms to allow investment by foreign airlines in the aviation sector. This time the government hopes to get past its main hurdle, ally Trinamool Congress.

A Cabinet note - a copy of which has been accessed by NDTV - says that under the FDI proposal, foreign airlines will be allowed to invest in Indian peers, but can only hold up to a 49% stake. Although a 49 per cent stake gives the investors minority shareholder control, they will get the right to block a special resolution.

Current FDI norms allow foreign entities other than airlines to directly or indirectly own an equity stake of up to 49 per cent in Indian airlines.

The new proposal incorporates suggestions not just by the Aviation Ministry but also the Home Ministry, since this is a crucial sector with security implications.

The government, in its FDI in aviation proposal, has attempted to cover most areas of concern voiced by political parties. According to the Cabinet note, it is proposed that the chairman and two-thirds of the board of any domestic airline receiving FDI will need to be Indians, and substantial ownership and control will remain with Indian nationals.

Also, all foreign nationals participating in the venture will need security clearance. Equipment imports will have to be vetted by the aviation ministry.

Most of India’s airlines are bleeding and private airlines like Vijay Mallya’s Kingfisher have been pushing for FDI to boost the sector. But even if the Cabinet does clear the proposal, it has to get the Trinamool Congress’ ok on it.

The Trinamool has said its one Cabinet minister Mukul Roy will not attend today’s meeting – the excuse this time is President Pranab Mukherjee’s first visit to Kolkata. Mr Roy was also absent at a yesterday's meeting of the Cabinet Committee on Political Affairs, which was discussing, among other things, a hike in fuel prices.

Staying away from meetings is a classic indication of a Trinamool sulk, but the party usually follows it up with a letter seeking a deferment on the issue it is opposing. This time it has sent no such letter on FDI in aviation yet, and the government has its fingers crossed that it will not. It has also done its homework better this time and circulated its proposal among ministers yesterday.

The Cabinet note explains the rationale behind the move to allow foreign airlines to invest. The Indian aviation industry, it says, is steering through acute turbulence as most private airlines are in dire need of funds for operation. A denial of access to foreign capital could result in collapse of these airlines, and any airline’s closure could create a systemic risk for financial institutions, which have a large exposure to these companies.

The total FDI inflow in the aviation industry, the note says, stands at a mere $433.75 million (Rs 2,405.36 crore). FDI inflow into the aviation industry is a meager 0.25 per cent of the total FDI inflow.

A capital raise by these airlines is not easy as private equity funds are not keen to invest in the sector.

The Manmohan Singh government and the Prime Minister personally, have for some time now been facing severe criticism for allowing the economy to slide by not taking politically tough reform decisions.

Long feted for his pivotal role in liberalising the Indian economy, Dr Singh has recently received several less than flattering report cards from international publications like Time magazine and the Washington Post.

India has been downgraded by major overseas rating agencies and investment banks which have reiterated their concern about the “policy paralysis” afflicting the Indian government.

Back home a panicked Industry has been sending out SOS’ that the government must now place economic revival over coalition dynamics.

Ms Banerjee is the Congress’ most difficult ally; she has resisted most reform measures, arm-twisting the UPA government with the threat of exiting with her 19 crucial MPs in the Lok Sabha. Ms Banerjee is seen as having single-handedly given the UPA government its image of suffering a “policy paralysis”.

Analysts and overseas rating agencies have reiterated their concern about the policy paralysis afflicting the Indian government.

She has opposed FDI in various sectors like retail and aviation. She has forced the government to roll back fuel price hikes despite the deregulation of petrol. She has also stalled privatization of the pension sector.

I am not joining politics: Priyanka Gandhi to NDTV

New Delhi: Priyanka Gandhi has dismissed reports that she is likely to contest the 2014 general elections from Rae Bareli, her mother Sonia Gandhi's constituency.

After sudden rumours that Ms Gandhi was set to enter electoral politics sent social media and political circles into a tizzy yesterday, the 40-year-old sent an SMS to NDTV that read, "I am not joining politics. I am looking after my mother's constituency as I did from 1999 to 2004 without being in politics. There is nothing new in my interacting with workers in Rae Bareli and Amethi constituencies. I have been doing so since 1991. As there have been organisational issues lately, I will be travelling to Rae Bareli now and then to look into them."

The immediate trigger for the latest round of speculation seems to have been Ms Gandhi beginning to hold weekly meetings with people from her mother's constituency to discuss issues and problems last month. Congress sources say her mother's poor health is a major reason behind that. Mrs Gandhi had undergone a surgery in the US in August last year and has since reduced the number of public meetings she attends. She was away abroad again for a week-long medical check-up and returned this Monday.

Priyanka Gandhi had both strategised and extensively campaigned in the Gandhi pocket borough of Rae Bareli and Amethi, her brother Rahul's Lok Sabha constituency, for the Uttar Pradesh Assembly elections early this year. She had camped there for weeks and hand-picked the Congress candidates for that region. The party, however, fared poorly, losing eight out of the 10 Assembly seats in the twin Lok Sabha constituencies.

Rahul Gandhi 'decoded' in a book

New Delhi: Does Rahul Gandhi have an overarching political and economic vision asked panelists at a book release function here Wednesday while debating the strategy and thinking of the Congress leader.

Some panelists suggested that the Congress general secretary should take a bigger political role upfront to guide his party for the 2014 electoral challenge.

Senior journalist M.D. Nalapat, who released the book "Decoding Rahul Gandhi" by Aarthi Ramachandran, set the tone of a freewheeling discussion by posing questions about the possibility of Rahul Gandhi being able to outshine his father Rajiv Gandhi because of the "very low expectations" of him.


Hartosh Singh Bal, political editor, Open magazine, said Rahul Gandhi was by nature a fairly decent man but was not willing to step ahead. Bal said the Congress would shape around the role Rahul Gandhi takes but "he does not want to take a role upfront".

"He may be forced in 2014," Bal said, and added that Rahul Gandhi should either step back completely or step forward.

He said Rahul Gandhi had wasted too much time being in charge of the Youth Congress and the National Students' Union of India.

Columnist Santosh Desai said the charisma of the Gandhi dynasty was no longer sufficient and vote catching abilities of a single person were unlikely to deliver results.

Referring to Rahul Gandhi's work in the Youth Congress, Desai said that the young leader had the idea of seeing politics as a management consultant and converting everything into projects.

"He is trying to impose a new kind of framework. It is a tall order," Desai said.

Ramachadran, who has worked with dailies, said her book was an attempt to critically look at the person who could be the country's prime minister.

"He does not want to put much of himself out. The book is neutral, set out to examine what he adds up to," Ramachadran said.

The author said Rahul Gandhi had "a large economic point of view" which was "left of centre" and could be placed between that of Congress president Sonia Gandhi and Prime Minister Manmohan Singh.

She said that Rahul Gandhi's politics had conveyed a sense of opportunism as issues like the land acquisition bill taken up by him before the Uttar Pradesh assembly polls appear to have been left for another election.

She said the Congress leader had the right intentions but managed to come across as a process-driven individual.

"He had in him a desire to strike out and do differently but pressure to deliver (forced him) to go back to (paths of) Sonia Gandhi, Indira Gandhi. He is very uncomfortable with that," she said.

Ramachadran said despite criticism of Rahul Gandhi not being upto the task, he was not a political figure who could be wished away.

Answering queries, she said it will be a rough ride if Rahul Gandhi became prime minister and added that people had not seen him engage with allies.

The 280-book has been published by Tranquebar Press.

Air Force turns down Rahul Gandhi's request

Kokrajhar (Assam): Congress leader Rahul Gandhi was today forced to change his travel plans as the Indian Air Force (IAF) did not oblige to his request for flying him from Kokrajhar to Guwahati, citing bad weather.

Mr Gandhi was on a day's trip to Assam to meet victims of ethnic violence in relief camps and held discussions with Bodoland Territorial Council leaders on the prevailing situation in the state.

While travelling back to Guwahati with Chief Minister Tarun Gogoi, he was denied permission by the IAF officials to take off due to the bad weather, sources said.

An IAF spokesperson in New Delhi confirmed that Mr Gandhi had wanted to fly to Guwahati urgently for a meeting there but due to bad weather prevailing en route and at the destination, the permission was not given.

During the visit, Mr Gandhi met relief camp inmates and also held discussions with leaders from the Bodoland Territorial Council (BTC) as well as representatives of other civil organisations in the district regarding the prevailing situation along with relief and rehabilitation being provided to the affected people.

He was accompanied by Assam Pradesh Congress Committee President Bhubaneswar Kalita. 

From: NDTV