Will Amit Shah's bail be cancelled? Supreme Court verdict likely today

New Delhi: The Supreme Court is expected to give its verdict today on cancelling the bail of Amit Shah, former minister and close aide of Gujarat Chief Minister Narendra Modi, in the 2005 Sohrabuddin Sheikh fake encounter case, and whether to shift the trial to Mumbai.

The CBI had petitioned the court for cancellation of Mr Shah's bail on the grounds that he may try to influence witnesses in the case.

Sohrabuddin and his wife Kauser Bi were allegedly abducted by the Gujarat's Anti-Terrorist Squad (ATS) from Hyderabad and killed in a fake encounter near Gandhinagar in November 2005.

Mr Shah was arrested by the CBI on July 25, 2010 and had spent over three months in Sabarmati Jail in Ahmedabad. He had to quit the Modi government in July last year after having been slapped with kidnapping and murder charges in the fake encounter killing. Mr Shah is currently out on bail but has been barred by the Supreme Court from entering the state. In an election year, how critical is his return for the BJP and Mr Modi in particular?

The party leaders don't want to say on record but they admit that the absence of Amit Shah could mean trouble for the Chief Minister. He is considered not just an important strategist for the party but a crisis manager for Mr Modi.

Post-2002, Mr Shah played a key role in Mr Modi's political planning. He also ensured the BJP's growing clout in the milk cooperatives that were traditionally Congress held.

"It's fine that Mr Modi himself is a strategist, but Shah has ensured party's immense strength in cooperatives, cricket associations and urban municipal corporations. That's why his absence could prove a big hurdle for Mr Modi during elections," said Ganshyam Shah, a political analyst.

But what comes as another blow to Mr Shah's supporters is the CBI filing a chargesheet against him in Tulsiram Prajapati case and his imminent arrest which could mean his political isolation. The Opposition hopes to draw electoral mileage out of this.

"One minister is behind bars for riots, another finds himself in the middle of a fake encounter. It's clearly an embarrassment for the BJP," said Congress spokesman Manish Doshi.

The CBI had said that Mr Prajapati was a witness in the Sohrabuddin case and his killing was part of a larger conspiracy in which Mr Shah, as the then head of the state administration, was involved.

Mr Shah's supporters want him to reclaim his clout in state politics which has of late seen domination by another aide of Mr Modi, senior minister Anandiben Patel. But faced with arrest, it's clearly tough times for Amit Shah, the once powerful politician of Gujarat.

From: NDTV

Should all natural resources be auctioned? Supreme Court's answer today

New Delhi: The Supreme Court will pronounce its opinion today on whether all natural resources must be auctioned by the government, a decision the court made earlier this year in the context of the expansive telecom scam.

In February this year, the court cancelled 122 telecom licenses issued by former minister A Raja in 2008 on the basis of a first-come-first-serve policy which he allegedly manipulated.  In its landmark judgement, the court said that a get-in-line policy was fundamentally flawed and that a competitive bidding process must be followed for allocating all national resources.

The government, however, has argued that is not always possible, and that the verdict impedes upon the executive's right to decide policy.  It sought a clarification from the Supreme Court on whether its stand on an auction, as expressed in the telecom or 2G verdict, applies to other national resources too.

The government has been recently indicted  by the national auditor or CAG who said that because coal blocks were not auctioned from 2004-2009,  the country lost upto 1.86 lakh crores.  Though the government has challenged that estimate, the auditor's conclusion has added to the debate over how resources should be given away to private firms.  In the case of both airwaves for telecoms and coal blocks, the government has argued that an auction would have led to increased costs which would have adversely impacted consumers and the industry.

From: NDTV

Maharashtra irrigation scam: Whistleblower names BJP chief Nitin Gadkari

New Delhi: In a new twist in the irrigation scam in Maharashtra, that is the root of the political crisis in the state, one of the whistleblowers has named BJP chief Nitin Gadkari for trying to suppress it. The whistleblower, Anjali Damania, has been instrumental in blowing the lid off the Rs. 72,000 crore scam.

Speaking on NDTV, Ms Damania said that when she met Mr Gadkari in August at his Worli, Mumbai home, he told her to not push too hard to expose the scam. Earlier, without naming Mr Gadkari, Ms Damania had said that 'the opposition party chief' told her "we help Pawar and he helps us, can't do anything in this scam". She claimed to have met the BJP chief three times, once in Delhi in June 2011 and twice in Mumbai, in August 2011 and August 14 this year.

The BJP's Prakash Javadekar, who was also on NDTV, called it "rubbish". "Anyone can make allegations, it doesn't mean anything," Mr Javadekar said.


Ms Damania claimed that she had an SMS with her, sent to Mr Gadkari, right after the meeting, expressing her disappointment with his stand on the issue. Mr Javadekar dismissed this as well, saying that anyone can send SMSes. Mr Gadkari too has denied meeting her.

The BJP is in opposition in Maharashtra, whose Deputy Chief Minister Ajit Pawar has been accused by political opponents and activists of being involved in the scam, when he was water resources minister.

Ms Damania was one of the two whistleblowers who dug out the scam after her farmland that was with her for more than decade was taken over by an irrigation project, that eventually turned out be a dud.  

Arvind Kejriwal's party a foolish project: Jethmalani

New Delhi: Coming out in support of Anna Hazare, noted lawyer Ram Jethmalani on Thursday termed as "foolish project" the decision of Arvind Kejriwal-led group to form a party and urged the veteran activist to focus only on corruption.

In an open letter to Anna, the Rajya Sabha MP also suggested Anna to fight against candidates of Opposition parties who "do not have a spotlessly clean image" for integrity and selfless service of the nation.

"I have learnt with great disappointment, almost consternation, that some of your colleagues want to start a new political party. I mean no disrespect to anyone but this is a foolish project almost certain to perpetuate corruption and the regime of corrupt rulers.

"I almost suspect this move has been instigated by these whom you want to displace and destroy," Mr Jethmalani said and assured his "cooperation and assistance at all limits" to Anna. However, the lawyer did not take the name of Mr Kejriwal.

Anna and his supporters on Wednesday parted ways with the Kejriwal-led group who were pitching for the movement forming a party and fight elections.

Claiming that Anna's work was "much more important" than his "some success" in the fight against corrupt, the lawyer suggested that the activist should concentrate on the "single issue of corruption" and intensify struggle to tackle practisioners of graft.

"A new political party cannot have a one-point manifesto. People would like to know its views on other issues affecting every section of the electorate. You will only create confusion and invite ridicule," Mr Jethmalani, who has filed a petition in Supreme Court on blackmoney issue, said.

He also said that Anna should not succumb to the attraction of minority vote banks and he should tell minorities that he will support those parties who will honestly support the recommendations of the Sachar Committee report. 

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. 

Bharat bandh over FDI in retail, diesel price hike: Trains stopped in Bihar, UP, Mumbai unaffected

New Delhi: The BJP-led National Democratic Alliance along with other opposition parties have called a nationwide bandh today to protest against the government's reform measures announced last week. Nearly 5 crore traders and 25,000 trade associations are also taking part in this bandh demanding rollback of FDI in multi-brand retail. Schools, colleges, markets and transport services are likely to be affected in most states.

The protests began early this morning in Bihar and Uttar Pradesh. Workers belonging to BJP Yuva Morcha blocked three trains at Patna railway station and in Darbhanga, CPI(ML) workers stopped the Ganga Sagar Express. In Allahabad, Samajwadi Party workers staged demonstrations on rail tracks. There are also reports of trains being stopped in Bhubaneswar in Odisha.

In the national capital, public transport is running smoothly so far. Metro trains are also on time.

Mumbai and the rest of Maharashtra is likely to be unaffected by the bandh call due to Ganesh Chaturthi festivities. Both the MNS and the Shiv Sena and even the BJP have said that they will not enforce the nationwide strike in the state because of the ongoing festival. While MNS supports FDI in retail, BJP and Shiv Sena are opposed to it. So public transport, malls, super markets all other services are likely to function normally. Schools and colleges also will stay open.

Karnataka meanwhile has seen partial effect of the bandh call so far. While buses are off the road, autos are plying.  Trains are also running on time. There have been no protests so far.

Taking some politically tough decisions last week, the government had hiked the price of diesel by Rs. 5 per litre, capped the supply of subsidised liquefied petroleum gas (LPG) cylinders to six per household and cleared 51 per cent Foreign Direct Investment or FDI in multi-brand retail - reforms, which saw its biggest ally, Mamata Banerjee, pull out of the UPA. The opposition has called for the bandh to protest against these reform measures.

Today's strike against these new policies has won the support of parties ranging from the Left to the BJP, and crucially, Mulayam Singh Yadav, whose Samajwadi Party is now key for the government's survival. The Samajwadi Party, 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 been vehemently opposed to FDI in retail and has told the UPA that it cannot take its support for granted. "Let the Congress be enlightened," he said yesterday, of the political situation, "that it has to give people more than corruption and rising prices."

The Left Front will also be holding a 12-hour strike in West Bengal to oppose the Centre's new reforms. "The government is making a false claim that oil companies are facing losses. ONGC, Bharat petroleum, Hindustan petroleum are making profits and not losses. So, there is no reason for increase in the prices of oil. This will increase inflation and prices of all commodities," CPM General Secretary Prakash Karat had said.

Meanwhile, coming as a huge relief to the UPA, which is now in a minority in Parliament after the Trinamool Congress announced it was exiting the Congress-led ruling coalition, Mayawati's Bahujan Samaj Party (BSP) has said it will not participate in the nation-wide strike even though the party opposes FDI in retail. The Congress 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.

The DMK, a member of the UPA with 18 MPs, has said it remains with the government, though it will participate in nationwide protest against FDI in retail, and the new diesel prices. Sources in the Southern party say that the DMK has decided "not to embarrass the UPA" and that its course will not be affected by Ms Banerjee's pull-out.

Though the policy to allow 51 per cent FDI was cleared first in November by the cabinet, it was shelved after Ms Banerjee threatened to pull out of the UPA. Sources say that last Friday, when the cabinet decided to implement the reforms, many senior ministers were also caught off-guard. The policy had not been listed in notes circulated before the meeting. Though Commerce Minister Anand Sharma had a phone conversation with Ms Banerjee the night before, he did not refer to FDI in retail. The government had informed other allies Sharad Pawar, Farooq Abdullah, and TR Baalu about its plans - allies who it was confident would not block the reform.

The new reforms, designed to revive a sluggish economy, means global firms such as Wal-Mart can set up shop with a local partner and sell directly to consumers for the first time. Like the Left and the BJP, Ms Banerjee had argued that the entry of international super-markets will put thousands of corner shops and farmers out of business. 

Anna Hazare confirms split, asks Arvind Kejriwal not to use his name or photo

New Delhi: The group once referred to as Team Anna officially split into two rival halves on Wednesday with 75-year-old Anna Hazare refusing to support the political ambitions of Arvind Kejriwal, who was considered his closest aide.

Anna, who was the face of the India Against Corruption (IAC) campaign, said his name and photo should no longer be used by Mr Kejriwal's faction. "My best wishes are with them," said Anna, adding, "Both of us have chosen separate paths."

At a nine-hour meeting in Delhi, that was often acrimonious, according to sources, the senior leaders of the IAC movement took sides. Anna's supporters allegedly said he had been exploited; the other side said that he had been propped up by leaders from Delhi, according to the Press Trust of India. Anna, who says launching a political party is not correct for the activists, was backed by Justice Santosh Hegde and former top cop Kiran Bedi. Anna also said that he will not campaign for the party being launched on October 2 by Mr Kejriwal and lawyer-activist Prashant Bhushan. He wants to focus his efforts on pressuring the government to introduce a tough new law against graft based on the Lokpal Bill, a legislation that he has lobbied for over two years, with Mr Kejriwal by his side.

Mr Kejriwal tweeted, "country is on sale. It is passing through very difficult phase. I will do everything possible for me to save my country."

Earlier this week, Mr Kejriwal and his associates released the results of a survey which showed that 76 per cent of respondents want the activists to enter politics. Anna rejected that poll. On Tuesday, he said that elections require huge funds, which will be tough for the activists to organise without compromising on their values. He also said that it would be tough to ensure that candidates are not corrupted if they are elected.

With Anna at its forefront and Mr Kejriwal as his right-hand man, the India Against Corruption campaign turned the Lokpal Bill into a national cause. Named for the national ombudsman it creates to tackle complaints of venality against public servants, the Bill has been passed by the Lok Sabha but failed to clear the Rajya Sabha. India was introduced to the Lokal Bill through large street demonstrations and sit-in camps, many of them held while Anna went on lengthy fasts. Over the last few months, however, the protests drew thin crowds. At the last session in August, the poor turnout emboldened the government to ignore the protest in Delhi; no effort was made to ask activists like Mr Kejriwal, who was on a hunger strike, to end his fast. After six days, with poor response, Mr Kejriwal said that the need of the hour appeared to be forming a political alternative. Anna immediately said he would not contest elections or join any party, but said he would support the new front. In the last few days, he has distanced himself completely from Mr Kejriwal's plans. 

After splitting with his team, Anna also had a hush-hush meeting with yoga guru Ramdev, reported Press Trust of India. The surprise meeting was held in a house in Golf Links of Delhi in which former Army Chief General VK Singh is believed to have been present.

(With PTI inputs)

Govt likely to announce spending cuts on Saturday

New Delhi: The government could announce spending cuts for the 2013 fiscal year on Saturday, although the size of the cuts was not immediately clear, two government sources said.

Prime Minister Manmohan Singh will chair a meeting of top government economists to discuss India's five-year economic strategy and look at trimming expenditure in the light of an economic slowdown.

"The government is quite serious to keep the fiscal deficit as close to budgeted target of 5.1 per cent of GDP as possible," one of the sources said.

A second source, a senior government official who did not want to be named, said the meeting would "discuss cuts for current spending".

Copyright: Thomson Reuters 2012

FDI in multi-brand retail, aviation: PM introduces bold new policies

New Delhi: The Prime Minister has introduced the boldest reforms yet in his current term - foreign super-market chains can now enter India and foreign airlines can buy stake in Indian carriers. "The Cabinet took many decisions on Friday to bolster economic growth and make India a more attractive destination for foreign investment," tweeted Dr Manmohan Singh's office last evening. "I believe that these steps will help strengthen our growth process and generate employment in these difficult times."

Key ally Mamata Banerjee is reportedly furious and will decide on Tuesday whether to exit the ruling coalition - a threat issued by her party on Friday. "We cannot support price hike of diesel and reduction in subsidized LPG cylinders. On Friday, a decision has been taken allowing FDI in retail sector. It is a big jolt," Ms Banerjee said on her Facebook page, adding that she was prepared to take "hard steps" if the new policies are not reversed.


The government, though, made it clear that it will not be held hostage. Commerce Minister Anand Sharma pointed out that states have the right to reject the multi-brand reforms. "It is an enabling legislation," he said, adding that, "while we respect Mamata Banerjee's prerogative to implement or not implement...equally it is the prerogative of other states to have it." Late last year, the cabinet had allowed 51% Foreign Direct Investment or FDI in multi-brand retail, but suspended its plans after Ms Banerjee threatened to opt out of the Congress-led coalition at the Centre.

The new reforms, designed to revive a sluggish economy, means global firms such as Wal-Mart can set up shop with a local partner and sell directly to consumers for the first time. Like the Left and the BJP, Ms Banerjee has argued that the entry of international super-markets will put thousands of corner shops and farmers out of business.

The Cabinet on Friday also relaxed norms to allow international airlines to invest in domestic carriers, allowed more FDI in broadcasting services and announced disinvestment in four key profit-making public sector units (PSUs).

The dramatic announcements came a day after the government took the politically tough decision to hike the price of diesel by Rs. 5 per litre and also capped the supply of subsidised liquefied petroleum gas (LPG) cylinders to six per household. Faced with the threat of becoming the first in the BRIC (Brazil-Russia-India-China-South Africa) group of emerging economies to be downgraded to junk, the government now seems clear that economic imperatives far outweigh political expediency.

That signal has brought cheer to Industry and the markets, which surged on Friday in anticipation of reforms. The Sensex clocked the biggest one-day gain in 10 months. The BSE benchmark index closed at 18,464.27, up 443 points or 2.46 per cent - a 14-month high.

Foreign airlines can now own upto 49% in a domestic carrier, providing a much-needed source of funding for debt-laden airlines. Opening the sector to foreign airlines is likely to help passengers too with more competitive fares and world-class management and technology. 

Ailing Kingfisher Airlines, which was India's No. 2 local carrier a year ago but has since grounded most of its fleet, has lobbied hard for this move in hopes that it can attract a foreign airline investor, although none has publicly expressed interest. More successful players like IndiGo and Jet have expressed reservations in the past that allowing global players in will lead to cartelisation and takeovers of Indian carriers.

Budget carrier SpiceJet, the fourth-largest of India's six main airlines, said on Thursday it was in initial talks with several Gulf carriers and was waiting for the government to ease rules before it takes a final call.

With global airlines buffeted by the European debt crisis and high fuel costs, cash-rich and fast-growing Gulf carriers such as Dubai's Emirates, Qatar Airways and Abu Dhabi's Etihad are seen as the most likely buyers of stakes in Indian carriers, analysts say.

(With inputs from Agencies)

Govt clears FDI in multi-brand retail, 'furious' Mamata to decide on support on Tuesday

New Delhi: The government has cleared 51% Foreign Direct Investment or FDI for multi-brand retail, a major reform aimed at jumpstarting a lethargic economy and combating the image of an administration riddled with policy paralysis.

The move will allow global firms such as Wal-Mart Stores to set up shop with a local partner and sell directly to consumers for the first time, though individual states have the right to reject the reform. The proposal had been cleared by the cabinet in November last year but was suspended because of adamant opposition by key ally Mamata Banerjee, the chief minister of West Bengal. Her party warned today that it will take "a major decision on support" if the Congress does not withdraw both the FDI reforms cleared today and the decision yesterday to increase the prices of diesel by Rs. 5 and to cap the number of subsidised LPG cylinders available for each household. "We cannot support price hike of diesel and reduction in subsidized LPG cylinders. Today, a decision has been taken allowing FDI in retail sector. It is a big jolt," Ms Banerjee said on her Facebook page, adding that she was prepared to take "hard steps" if the new policies are not reversed.

The government appeared to have taken the risks into account. "We respect her decision...it is her prerogative to implement or not implement...equally it is the prerogative of other states to have it," said Commerce Minister Anand Sharma. The BJP and Left both described the multi-brand retail policy as a betrayal of the people, arguing that it will put thousands of small shop-owners and farmers out of business. 

The slew of reforms cleared by Dr Manmohan Singh today, the boldest in his current term, include permitting foreign airlines to buy upto 49% in an India carrier and selling off stake in major state-run firms, which will not be revoked, said sources. The government has also rejected demands from other political parties to revoke a hike in heavily subsidised fuel prices announced yesterday.

India's inability in the past months to push through major reforms and ease its subsidy burden as growth slowed sharply has put it in danger of becoming the first of the big "BRIC" emerging economies to see its credit rating downgraded to junk.

Foreign investors, experts, and industry have been stressing that the Prime Minister has a narrow political window to push reforms key to reviving India's flagging growth. The general elections are two years away, and international media in recent months has been critical of Dr Manmohan Singh, labelling him an "under-achiever" reluctant to take politically-tough but economically-critical decisions.

The government has been trying for months to build consensus around reforms in retail. Those plans appeared to come undone in June when Mulayam Singh Yadav, the head of the Samajwadi Party, wrote to the Prime Minister urging him not to proceed with reforming the retail sector because it would result in job losses.

Understanding FDI in multi-brand retail

New Delhi:  The Cabinet Committee on Economic Affairs on Friday cleared 51 per cent foreign direct investment in multi-brand retail.

FDI norms made easy:

1. Retail sales outlets may be set up in those states that have agreed or will agree in future to allow FDI in multi-brand retail under this policy. The establishment of the retail sales outlets will be in compliance of applicable state laws/regulations, such as the Shops and Establishments Act etc.
2. Retail sales outlets may be set up only in cities with a population of more than 10 lakh as per 2011 Census and may also cover an area of 10 km around the municipal/urban agglomeration limits of such cities.
3. Retail locations will be restricted to conforming areas as per the master/zonal plans of the concerned cities and provision will be made for requisite facilities such as transport connectivity and parking.
4. In states or union territories not having cities with population of more than 10 lakh as per 2011 Census, retail sales outlets may be set up in the cities of their choice, preferably the largest city and may also cover an area of 10 km around the municipal/urban agglomeration limits of such cities. The locations of such outlets will be restricted to conforming areas, as per the Master/Zonal Plans of the concerned cities and provision will be made for requisite facilities such as transport connectivity and parking.
5. At least 50 per cent of total FDI brought in shall be invested in ‘back-end infrastructure’ within three years of the induction of FDI, where ‘back-end infrastructure’ will include capital expenditure on all activities, excluding that on front-end units. For instance, back-end infrastructure will include investment made towards processing, manufacturing, distribution, design improvement, quality control, packaging, logistics, storage, ware-house, agriculture market produce infrastructure etc. Expenditure on land cost and rentals, if any, will not be counted for purposes of backend infrastructure.
6. A high-level group under the Minister of Consumer Affairs may be constituted to examine various issues concerning internal trade and make recommendations for internal trade reforms.

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.
 

Diesel price hiked by Rs. 5 per litre, allies demand rollback

New Delhi: The government raised the price of diesel by Rs. 5 per litre on Thursday, prompting angry responses from allies Mulayam Singh Yadav and Mamata Banerjee, who have demanded a rollback. The price hike is aimed at reining in the fiscal deficit and staving off the threat of becoming the first in the BRICS (Brazil-Russia-India-China-South Africa) group of emerging economies to be downgraded to junk.

The Cabinet Committee of Political Affairs headed by the Prime Minister left kerosene and petrol rates untouched. It also decided to restrict the supply of subsidised cooking gas to six cylinders per household in a year. The government says about 44 per cent of the total domestic LPG consumers, who consume 6 cylinders or less each year, will not be affected by this decision.

While prices of petrol have been deregulated, diesel is a partially deregulated product. In the past two years, diesel prices have been hiked twice.

West Bengal Chief Minister and Trinamool Congress chief Mamata Banerjee said, "We want rollback. I am shocked. The matter is very serious and sensitive; we can't compromise with the people's issue. We will discuss in our party meeting and our plan of action."

"If people do not mind, I will be most happy to withdraw support (to the UPA). If I withdraw support then other parties will provide support to them. And, then ask why we left the UPA which led to its collapse. People had misunderstood us when we had withdrawn support earlier. Therefore, we are having a detailed discussion in the party on these issues," she added, announcing here party would hold a protest rally on Saturday.

The Trinamool's lone minister in the cabinet, Mukul Roy, is not attending a cabinet meeting today that's scheduled to discuss relaxation of Foreign Direct Investment (FDI) norms in airlines.

Another UPA ally, the DMK, too has said it opposes the hike. DMK chief M Karunanidhi wants UPA chairperson Sonia Gandhi to convene a meeting of the alliance's coordination committee. The UPA coordination committee was set up recently to help keep allies in loop on critical policy decisions.

The Samajwadi Party, which provides external support to the UPA, also said it wants an immediate rollback. "The decision is ill-timed and will hurt the common man," Uttar Pradesh Chief Minister and Samajwadi Party leader Akhilesh Yadav told NDTV.

Even the Congress says  it was not in favour of such a steep hike. General Secretary Digvijaya Singh said, "We are not in favour of a hike in diesel prices to such an extent because it hurts the farmers and common man. At the same time, there are some unpleasant decisions that have to be taken by the government by taking an overall view of what is best for the country."

Reacting to the diesel hike, C Rangarajan, chairman of the Prime Minister's Economic Advisory Council, said the government had taken the right decision, and that fiscal deficit had to be contained. He told a private TV channel that an increase in diesel prices in India should help avert a credit rating downgrade for the country.

The BJP has slammed the government and senior leader Yashwant Sinha warned of mayhem in the economy. "This is going to cause undue hardship. Prices are not under control. This will lead to overall inflation," he said. Prices, he said, could have been increased in small doses.

The Left parties too want a rollback. Gurudas Das Gupta of the CPI said, "I have never seen such a massive increase. It will stimulate inflation and aggravate the economic slowdown, which will cost jobs. We will protest in every way we can."

However, the price hike led to some respite for the oil companies. State-run oil marketing companies are losing Rs. 550 crore everyday on under-recoveries as a result of higher crude prices in the global markets. They make a loss of Rs. 17 per litre on diesel sales, Rs. 32.7 per litre on kerosene sales, and Rs. 347 per cylinder on cooking gas sales every day.

"Diesel accounts for 53 per cent of total subsidies. Oil companies are running a deficit of Rs. 6000 crore every month. We are committed to cutting petrol prices whenever possible. By reducing excise duty on petrol, we have brought down the gap between the prices between petrol and diesel. A narrow margin between petrol and diesel will be good for economy. If prices of petrol fall internationally, we will pass on the benefits," said RS Butola, Chairman of the Indian Oil Corporation.

"This is a very good decision, and will certainly help oil companies and reduce the burden on the government in terms of subsidies. The reduction in the excise duty on petrol is good for us," said Bharat Petroleum's Chairman RK Singh.

The government subsidises the prices of diesel, cooking gas and kerosene to dampen inflation and protect the poor, a popular policy that has put a severe strain on public finances.

The government has acknowledged earlier that a price hike is essential for curbing fiscal deficit, a pre-condition for reviving growth in Asia's third-largest economy. A price increase will also aggravate inflation, as costs, such as road freight rates, will rise.

(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. 

Suresh Kalmadi can't contest Indian Olympic Association chief election: Delhi High Court

New Delhi: The Delhi High Court ruled on Thursday that Indian Olympics Association (IOA) chief, Suresh Kalmadi will not be able contest the same post this year. The Delhi HC ruled that the election will be held according to the sports code, which prohibits one office bearer to contest election more than three times.
The former Congress MP was arrested last year in April following charges of corruption with the CWG fund. He was under jail custody and was released on bail only recently. Following which he reclaimed the office of IOA chief once again.
Kalmadi had been at the helm of IOA affairs for the last 18 years.

India has highest child mortality rate says UN report

New Delhi: With almost 19,000 children under five years of age dying every day across the world, India tops the list of countries with the highest number of 16.55 lakh such deaths in 2011, according to a UN agency.

The 'Child Mortality Estimates Report 2012' released by Unicef in New York has said that in 2011, around 50 per cent of global under-five deaths occurred in just five countries of India, Nigeria, the Democratic Republic of the Congo, Pakistan and China.

Incidentally, India's toll is higher than the deaths in Nigeria, Democratic Republic of Congo and Pakistan put together.

While there have been 7.56 lakh deaths in Nigeria during the last year, Democratic Republic of the Congo accounts for 4.65 lakh deaths and Pakistan 3.52 lakh deaths of under-five children during 2011.

China reported 2.49 lakh deaths of under-5 kids last year, followed by 1.94 lakh by Ethiopia and 1.34 lakh each by Indonesia and Bangladesh. Uganda with 1.31 lakh such deaths and Afghanistan with 1.28 lakh deaths held the ninth and 10th position in the list of 10 top countries reporting under-five children deaths.

Singapore with a mortality rate of 2.6 has the lowest under-five deaths, while Slovenia and Sweden followed it with a mortality of 2.8.

The Unicef report also states that globally Pneumonia is the leading killer of children under five, causing 18 per cent of all under-five deaths worldwide - a loss of roughly 1.3 million lives in 2011, the bulk of which occur in just two regions, sub-Saharan Africa and South Asia.

Globally, the five leading causes of deaths among children under five include pneumonia (18 per cent); pre-term birth complications (14 per cent); diarrhoea (11 per cent); intrapartum-related complications (9 per cent) and malaria (7 per cent).

Besides, more than a third of child deaths are attributable to undernutrition globally, the report states.

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.

Bureaucrats hired by companies which they helped get coal fields allotted to?

New Delhi: The investigation into the coal scam has the Central Bureau of Investigation (CBI) looking at whether bureaucrats colluded with private companies to get coal blocks despite being ineligible.

What is clear already is that several senior bureaucrats who could have helped inference the allocation process were employed by private companies after leaving the government.

R V Shahi was India's longest serving power secretary - he held the position between 2002 and 2007. During this time, Jindal Steel and Power Limited, owned by Congress MP Navin Jindal, was allocated two coal blocks in Odisha and Chhattisgarh. Mr Shahi is now an Independent Director of the same company, whose businesses include steel, power and mining.


Like other companies, Jindal Steel and Power was chosen by a screening committee that included representatives of different ministries and stakeholders.  Mr Shahi says that the coal blocks given to Mr Jindal's firm were for sponge iron plants and not for power, therefore, he says, officials from his ministry would not have played a role in the selection process.

But during Mr Shahi's tenure as power secretary, two other Jindal Group companies - the Utkal A coal block in Odisha given jointly to both companies - were assigned coal blocks for power plants These companies are headed by Navin Jindal's brothers and he is a director of Jindal Stainless.

Like Jindal Steel and Power, a part of these firms are subsidiaries of the OP Jindal Group. Both Shahi and Navin Jindal dismissed any allegations of wrongdoing or favouritism.

In Jharkhand, PP Sharma was the Chief Secretary between December 2004 and January 2006, and then again from August 2007 to March 2008. Now, he is a full-time director with the Abhijeet Group, which has power and mining projects spread across Jharkhand, Maharashtra, Bihar and West Bengal.

During Mr Sharma's tenure as Chief Secretary, the same Abhijeet Group got five coal blocks in Jharkhand. Though the allocations are done by the Coal Ministry, the state government's views are critical in the selection process and senior officials from the state where the coal filed is located are on the screening committee that decides on applications.

Mr NC Jha is the CEO of the mining business of Monnet Energy and Ispat Limited' the second largest coal-based sponge-iron manufacturer in India.

Mr Jha was the Technical Director of government-owned Coal India from 2007 till January 2012 and Chairman of Coal India Limited in 2011.   The Technical Director of Coal India is a member of the Screening Committee.

Between 2008 and 2010, the group was allocated three coal blocks in states including Odisha and Chhattisgarh for power and sponge iron by the coal ministry.