INDIA COUNTRY BRIEF 111201

Basic Political Developments

Indian Parliament was adjourned for the eighth successive day Thursday over foreign investment in retail issue.

The Bharatiya Janata Party chief Nitin Gadkari said his party has not left issues like Ram Mandir, but the new generation in the party was laying more stress on economic issues and good governance.

Telangana Rashtra Samithi Legislature Party (TRSLP) on Thursday opined that Sonia Gandhi may take a decision on Telangana by the end of the winter session of the Parliament on December 21.

BJP on Thursday charged that there were differences between Congress party and the government on allowing FDI in multi-brand retail.

Former Telecom Minister A. Raja’s erstwhile private secretary R.K. Chandolia was on Thursday granted bail by a Delhi court related to 2G scam.

All-India bandh against FDI in retail was called on Thursday while small markets were by and large open while major markets responded to it with partial to complete shutdown.

National Economic Trends

Food inflation witnessed a sharp moderation to 8 per cent for the week ended November 19.

The government has run a fiscal deficit of nearly three-fourths of the full-year estimates in the first seven months of the current year, almost confirming it will miss the target of 4.6%. The April-October fiscal deficit was 74.4% of the full-year estimates, data released by the government on Wednesday shows, well ahead of the fiveyear moving average of 64.1%.

Business, Energy or Environmental regulations or discussions

The Union government on Thursday said it has approved to sell its entire stake in three sick PSUs Scooters India, Tyre Corporation of India and Central Inland Water Transport Corporation to strategic investors.

Trade and business was crippled across West Bengal Thursday as retailers and wholesalers shut shop to protest the central government's decision to allow 51 per cent foreign direct investment in multi-brand retail.

Coal Minister Sriprakash Jaiswal Thursday said Coal India Limited (CIL) could not meet the requirements of the power companies.

Tata Group Chairman Ratan Tata said political differences should not be allowed to come in the way of India's progress.

India's first global agri-business and food processing summit began in this tech hub Thursday on a bang, attracting investment proposals of over Rs.78,000 crore from a lead bank and about 30 private players.

Activity in the Oil and Gas sector (including regulatory)

State-owned Oil and Natural Gas Corp (ONGC) is investing nearly Rs 25,000 crore in bringing to production nearly a dozen marginal oil and gas fields by 2014.

Reliance Industries has said it followed a competitive bidding process in which state-owned HPCL was outbid.

Militant Activity/Terrorism (Particularly in Bangalore, Mumbai, Noida, Chennai, Coimbatore)

Home Minister P Chidambaram on Thursday batted for continuing effective and "intelligence-based" operations in Naxal-hit states as he announced over 800 fresh posts for the crucial snoop unit of BSF.

Labor/Social Unrest

After a period of silence, anti-dam protests once again erupted in Northern Assam yesterday with clashes taking place at various places between the Police forces and anti-dam protestors.

Full Text

Basic Political Developments

Parliament stalled for eighth dayhttp://www.newkerala.com/news/2011/worldnews-117979.htmlNew Delhi, Dec 1: It was the familiar sequence of protests leading to the adjournment of both houses of parliament for the eighth successive day Thursday with opposition MPs, and even some Trinamool Congress members, relentlessly pursuing their demand for a rollback of the decision permitting foreign investment in retail.

In fact, no substantive business has been transacted since the winter session of parliament began Nov 22. While the Rajya Sabha and Lok Sabha were adjourned after protests over price rise and the demand for statehood for the Telangana region during the first four days,the next four days including Thursday were disurpted because of the protests over the FDI.

The Mullaperiyar dam issue in Kerala also triggered protets in the parliament Thursday as MPs from the state and those from Tamil Nadu shouted slogans.

Eventhough there were no signs of a breakthrough Friday, political circles feel that a compromise, paving the way for normalcy, may be worked out by next Wednesday, when parliament meets after a four-day extended weekend. Tuesday is a holiday for Muharram while Monday has been announced as a holiday.

"The government gets four days to work on the angry opposition parties and some United Progressive Alliance (UPA) allies who are bitter over the decision on the FDI," a senior Congress leader told IANS.

The stalemate is costing the nation dear: Not only is the tax payers' money being wasted but key legislation is also awaiting approval from the two houses.

The 21-day winter session was scheduled to consider and pass 31 key bills, including the anti-graft Lokpal bill.

The government has so far refused to withdraw its Nov 24 cabinet decision to allow 51 percent FDI in multi-brand retail and 100 percent in single-brand retail.

The decision will facilitate global brands like Wal-Mart to open shop in India in cities with a population of over one million.

While the government says the decision will lower consumer prices, give a better deal to farmers and create employment, the opposition says it will harm retail traders.

The opposition - both the Bharatiya Janata Party (BJP) and the Left parties - has disurpted the proceedings since last Tuesday demanding a rollback of the FDI decision.

Despite the government's reluctance to do so, it may offer some minor concessions like raising the purchase cap from the small and medium units creating and a monitoring body to safeguard the interests of farmers and traders, sources said.

On Thursday, trouble erupted in the Lok Sabha soon after Speaker Meira Kumar made an obituary reference to former member Harish Kumar Gangawar of the Congress and read out a message on World AIDS Day. But that peace was short-lived.

Congress allies in the UPA were the first to target the government. Trinamool Congress MPs were seen standing in the aisles protesting against the FDI decision.

Buoyed by the cracks in the ruling combine, BJP members, some of them smiling, were also on their feet, raising slogans and demanding an adjournment motion on the issue.

Left members, ideologically opposed to any market reforms, also demanded that the policy be reversed.

There were other issues as well.

Congress members from Telangana region of Andhra Pradesh raised the decibel level, demanding a separate Telangana state.

MPs from Kerala also walked towards Meira Kumar's podium demanding a new dam downstream of the leaking Mullaperiyar dam. They said the leakage has threatened the safety of more than three million people in five districts of the state.

AIADMK members from Tamil Nadu were on the other side of the podium seeking implementation of the Supreme Court order on raising the storage level of the Mullaperiyar dam to 142 feet.

Meira Kumar tried to take up the Question Hour but the din led her to adjourn the house till noon. When the ruckus continued after the house met again, she adjourned it for the day.

There was similar chaos in the Rajya Sabha. As Chairman Hamid Ansari called for Question Hour, opposition MPs were already shouting slogans against the FDI decision in retailing.

Bahujan Samaj Party leader Satish Chandra Mishra said an adjournment notice had already been served to suspend business and take up a discussion on the government's new policy.

Ansari adjourned the house till noon. As protests continued when the upper house re-assembled, Deputy Chaiman K. Rahman Khan adjourned the house till Friday.

BJP has not left Ram mandir, but stressing on economic issueshttp://www.rediff.com/news/report/bjp-has-not-left-ram-mandir-but-stressing-on-economic-issues/20111201.htmThe Bharatiya Janata Party has not left issues like Ram Mandir, but the new generation in the party was laying more stress on economic issues and good governance, its President Nitin Gadkari has said.

"BJP has not left issues like Ram Mandir, but is giving more stress on economic issues. I am from a new generation and it is natural that economic issues will receive emphasis, as also GDP, politics of development, progress, besides nationalism and good governance," Gadkari said during an informal interaction with the media here last night.

Replying to questions, Gadkari said "unfortunately the BJP has been given a tag of being communal which we are trying to remove."

About the prime ministerial candidate of his party, the BJP chief said it was an issue created by the media. "There are many leaders in the party to become PM. When election comes, the candidate will be finalised." Asked if the BJP was ready for mid-term Lok Sabha elections, Gadkari said "We are ready."

Stating that his party hoped to get another chance to rule the country, he said "we hope to get over 170 seats in the Lok Sabha. Once we cross 170 seats, we will have more allies and we will not remain communal and untouchables any more.

"And, we expect to secure even 200 seats in the 2014 parliamentary elections." To a question, he said with the Left parties having been decimated in the last elections, the main contest would be between Congress-led UPA and the BJP-led NDA in 2014 Lok Sabha polls.

The BJP would also fare well in the February, 2012 elections in UP, he said. Slamming the UPA government, Gadkari said "it has been plagued by various scams, like CWG, 2G and financial scandals, and failed to deliver as it is neck deep in corruption.

Gadkari was critical of Trinamool Congress chief Mamata Banerjee's 'silence' over the UPA government's 'corruption', and said "while she is very vocal against the CPI(M) and against anything wrong, surprisingly she keeps silent on the corrupt UPA of which she is a major ally.

"Crime and abetement to crime are equally punishable offences and Mamataji is no exception," he said of the party's former ally.

On Anna Hazare's crusade against corruption, he said "if Anna receives support, it is welcome. We have no regret for this. I don't know what Congress thinks over it."

Speaking about the performance of BJP-ruled states, he said that Gujarat was a role model, while good work was reported from Uttarakhand Madhya Pradesh, Chhatishgarh and Karnataka. Gadkari said that BJP was also doing well in the governments in Bihar and Punjab.

TRS expects Sonia word on Telanganahttp://ibnlive.in.com/news/trs-expects-sonia-word-on-telangana/207571-60-114.htmlHYDERABAD: Telangana Rashtra Samithi Legislature Party (TRSLP) which met here on Thursday opined that Congress president Sonia Gandhi may take a decision on Telangana by the end of the winter session of the Parliament on December 21.TRS chief K Chandrasekhar Rao, who was present at the meeting, reportedly shared Delhi infromation privy to him with the party MLAs and MLCs at the meeting and hoped that the Congress leadership would direct the UPA government to take decision on T at the earliest.TRS sources said that according to Rao, Sonia Gandhi was not able to take a decision so far because her office has been receiving different reports from the state government and other Central government agencies. In this backdrop, Sonia Gandhi asked a separate agency for conducting a survey and submit a report on T.“Though we are only two members in the Lok Sabha, we could stall the proceedings and T Cong MPs also raised voice against the government.

After all these developments it is not so easy to defer T decision,’’ KCR said. TRSLP demanded that the Assembly pass a resolution in support of T during winter session. “If government does not do so, we will stall proceedings,” TRSLP leader Rajendar said.

Sushma: Sonia should make her views public on FDIhttp://www.thehindu.com/news/national/article2677881.eceBJP on Thursday charged that there were differences between Congress party and the government on allowing FDI in multi-brand retail and dared UPA Chairperson Sonia Gandhi, general secretary Rahul Gandhi and other senior party leaders to make their views public on the matter.

“Congress has not made its views clear on FDI in retail issue. That means there is a rift in Congress and between the ruling coalition and the government on the issue. Congress president Sonia Gandhi should make her views public on this issue,” Leader of the Opposition in the Lok Sabha Sushma Swaraj told reporters.

She pointed out that at a recent Youth Congress function, Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee had defended the government’s decision to allow 51 per cent FDI in multi-brand retail but Sonia Gandhi and Rahul did not air their views on the issue.

“No senior leader of Congress — its party president or any of the general secretaries — has defended the FDI decision,” Ms. Swaraj said.

When informed that Congress spokesperson Manish Tewari had stated at a press conference that the party was fully with the government, Ms. Swaraj maintained he was a “lightweight” and since this was a burning issue a senior leader of the ruling party should clarify their stand.

“The government’s view is clear that they want FDI in retail. The Prime Minister has categorically said so and he also got support of the majority in his Cabinet to get the proposal passed. But since the party has not spoken, the message going out is that some senior leaders in Congress do not agree with the government,” Ms. Swaraj said.

2G case: Raja’s private secretary Chandolia gets bailhttp://www.thehindu.com/news/national/article2677884.ece?homepage=trueFormer Telecom Minister A. Raja’s erstwhile private secretary R.K. Chandolia, arrested for his alleged role in the 2G spectrum case, was on Thursday granted bail by a Delhi court.

“The bail application is allowed,” Special CBI Judge O.P. Saini said, accepting Mr. Chandolia’s bail plea.

With grant of bail to Mr. Chandolia, only Mr. Raja and former Telecom Secretary Siddharth Behura have been left in jail. All 12 other accused, arrested in the case, have now secured bail.

Mr. Chandolia, who has been in jail since his arrest on February 2, 2011, was granted the relief on furnishing a personal bond of Rs. 3 lakh with two sureties of the like amount.

The court had on Wednesday reserved its order on Mr. Chandolia’s bail plea after hearing counsel for the accused and the Central Bureau of Investigation.

The CBI had opposed Mr. Chandolia’s bail plea saying he, Mr. Raja and Mr. Behura were public servants and formed the “core sector” of conspiracy and stood on a “different footing” from those granted bail in the case.

“The core sector of conspiracy comprises these three gentlemen (Mr. Raja, Mr. Behura and Mr. Chandolia) and they fall in the same category which is different from others who are granted bail,” Special Public Prosecutor U.U. Lalit had said.

“These three gentlemen are on a different footing… It will be unrealistic to draw parity with those released on bail,” he had said.

Vijay Aggarwal, counsel appearing for Mr. Chandolia, however, had contended that even the Supreme Court has “not dissected the case and granted bail not to the individual accused but in the 2G case”.

Bandh against FDI in retail; markets closedhttp://www.thehindu.com/news/national/article2677114.ece?homepage=trueNeighbourhood and small stores for protection of whose interest an all-India bandh against FDI in retail was called on Thursday were by and large open while major markets responded to it with partial to complete shutdown.

BJP and other Opposition parties have demanded a rollback on the FDI decision and the response to the bandh call in Opposition-ruled Gujarat and Bihar was partial. In Delhi, Andhra Pradesh and Assam also it was partial.

‘Kirana’ and neighbourhood shops remained open in a majority of places. In Delhi, markets like Sarojini Nagar and INA disassociated from the day-long strike call, saying the protest was uncalled for.

Shopkeepers in many cities took out marches demanding a rollback of the government move even as traders’ bodies said the decision will create an uneven playing field in the country, which will tilt towards multinational companies and prove to be a “nightmare” for traders and consumers.

Confederation of All India Traders’ (CAIT) secretary-general Praveen Khandelwal claimed traders across the country were participating in the strike.

“Around five crore traders belonging to 10,000 traders’ bodies across the country are participating in the bandh. Traders took out marches in commercial markets across the country,” Mr. Khandelwal said.

Big markets like Karol Bagh, Sadar Bazar, Kamla Nagar, Chawri Bazar, Kashmere Gate, Tilak Nagar, Rohini, Krishna Nagar and Greater Kailash M Block in Delhi remained closed.

BJP also joined the strike in Delhi by organising marches and burnt effigies of Prime Minister Manmohan Singh and Delhi Chief Minister Sheila Dikshit in at least 20 locations of the city.

Small and medium traders across Maharashtra including Mumbai downed their shutters. Federation of Associations of Maharashtra (FAM), the apex body of 750 trade, transport and small-scale associations, claimed that about 35 lakh traders in the State had joined the strike.

Most shops and establishments in West Bengal downed their shutters including in the wholesale market in Posta area of Burrabazar, the largest in the State.

Ruling out any rollback of the policy to allow foreign investment in multi-brand retail in the country, the government said it would issue the guidelines in due course.

“The rules will be framed, which answer the issues raised and decisions taken in the Cabinet,” Secretary of the Department of Industrial Policy and Promotion (DIPP) P.K. Chaudhery told reporters in Delhi. Shops and business establishments in Tamil Nadu, Karnataka and Odisha by and large remained shut.

Many private schools remained closed in Patna as a precautionary measure. While ruling NDA in Bihar has extended support to the strike, Congress and LJP have opposed it. Chief Minister Nitish Kumar has said he would not allow 51 per cent FDI in multi-brand retail.

“We have received good response for the bandh in Mumbai and Navi Mumbai as traders of the Agriculture Produce Market Committee (APMC) have joined call to support the one-day bandh. Major markets of grain, fruits and vegetables, onion and potato and ‘kirana’ have observed bandh on Thursday,” FAM president Mohan Gurnani said.

“Traders from all over the country, including Tamil Nadu, Gujarat, Kerala and other States, are strongly opposing FDI in retail. This is a question of our existence and, hence, there are no divisions,” he claimed.

National Economic Trends

Food inflation moderates to 8%http://www.thehindu.com/business/article2677331.eceFood inflation witnessed a sharp moderation to 8 per cent for the week ended November 19, though prices of most agricultural items, barring potatoes, onions and wheat, continued to rise on an annual basis.

Food inflation, as measured by the Wholesale Price Index (WPI), was 9.01 per cent in the previous week ended November 12. It stood at 9.03 per cent in the corresponding week of the previous year.

According to data released by the government on Thursday, onions became cheaper by 40.65 per cent year-on-year during the week under review, while potato prices were down by 10.98 per cent. Price of wheat also fell by 4.71 per cent.

However, all other food items grew more expensive on an annual basis.

Pulses became 13.80 per cent costlier during the week ended November 19, while milk grew dearer by 11.41 per cent and eggs, meat and fish by 13.55 per cent.

Vegetable prices were up by 5.13 per cent year-on-year.

However, this marked a substantial slowdown in the inflation rate in comparison to the past few months, when prices of vegetables had witnessed double-digit growth.

Fruits also became 7.98 per cent more expensive on an annual basis, while cereal prices were up 1.97 per cent.

Inflation in the overall primary articles category stood at 7.74 per cent during the week ended November 19, as against 9.08 per cent in the previous week. Primary articles have over 20 per cent weight in the wholesale price index.

Inflation in non-food articles, which includes fibres, oilseeds and minerals, was recorded at 2.14 per cent during the week under review, as against 4.05 per cent in the week ended November 12.

Fiscal deficit for 7 months to October at 75% of annual target

http://economictimes.indiatimes.com/news/economy/finance/fiscal-deficit-for-7-months-to-october-at-75-of-annual-target/articleshow/10937529.cmsNEW DELHI: The government has run a fiscal deficit of nearly threefourths of the full-year estimates in the first seven months of the current year, almost confirming it will miss the target of 4.6%. The April-October fiscal deficit was 74.4% of the full-year estimates, data released by the government on Wednesday shows, well ahead of the fiveyear moving average of 64.1%.

Though the government has managed to keep expenditure under check in this period, the sharp drop in revenues because of slowdown and large refunds has hurt the finances. "Both the fiscal deficit and GDP numbers are moving in adverse directions and it will be very difficult for the government to achieve it target, which was very aggressive to begin with," said Sunil Sinha, senior economist, Crisil.

Economists and market analysts expect the government to breach the fiscal deficit target by at least 0.5-1%. But, the government says it has not abandoned its goal. "The government is monitoring resource mobilization and expenditure and will not hesitate to take the required correctives to remain on the path of fiscal prudence so that the short-to-medium-term growth prospects are not undermined," Finance Minister Pranab Mukherjee said.

The plan expenditure is only 45.6% of budget estimates during Apr-Oct 2011 compared to 51.6% during last year, while non-plan expenditure is at 58.7% of the full year estimates, almost same level as last year. Main reason for high nonplan expenditure is the rising subsidy bills due to high global commodity prices and a depreciating rupee.

A higher-than-expected fiscal deficit will significantly limit the government's ability to aid slowing economic growth that plunged to a ninequarter low of 6.9% in Jul-Sep 2011 quarter, data released on Wednesday showed.

"Because the fiscal situation is stressed, the government can't provide much boost to the economy. There is no room for '2009-like' stimulus packages this time around. Sovereign rating-related concerns will keep them cautious on the expenditure front as well," said Siddhartha Sanyal, chief India economist, Barclays Capital.

The net revenue collections have also significantly slowed since last year, owing to a lower-than- expected GDP growth rate and the front-loading of tax refunds. The government budgeted a growth rate of 9% in GDP for 2011-12. Total receipts during Apr-Oct 2011 equaled Rs 3.73 lakh crore or 44.2% of budget estimates compared to 62.6% during the same period last year.

Net tax revenue collections have grown only 7% since last year in this period. Owing to an expected slippage in fiscal deficit and fall in small savings collections, the government has already announced extra market borrowings of Rs 52,800 crore in the current year. "The government might have some limited leeway in curbing plan expenditure but everything else is out of its control", said prof DK Srivastava, member of the twelfth finance commission and director at Madras School of Economics.

Business, Energy or Environmental regulations or discussions

Govt to sell entire stake in three sick PSUshttp://www.thehindu.com/news/national/article2677831.eceThe government on Thursday said it has approved to sell its entire stake in three sick PSUs Scooters India, Tyre Corporation of India and Central Inland Water Transport Corporation to strategic investors.

“The government has approved sale of entire shareholding to a strategic partner in Central Inland Water Transport Corporation, Scooters India Ltd and Tyre Corporation of India,” Minister of Heavy Industries and Public Enterprises Praful Patel told the Lok Sabha in a written reply.

The government owns 100 per cent equity in Central Inland Water Transport Corporation which is engaged in the transportation by inland waterways.

West Bengal-based Tyre Corporation, engaged in manufacturing and marketing of automotive tyres, is also wholly-owned by the government.

In Scooters India, the government holds 95.38 per cent stake.

Further, Patel said strategic sale in loss-making Central Public Sector Enterprises (CPSEs) is taken up on a case-to-case basis, when efforts for their revival fail.

The Board for Reconstruction of Public Sector Enterprises (BRPSE) advises the government on the revival and restructuring of sick state-owned companies.

The concerned ministries/departments prepare proposals for revival of loss-making companies and refer them to BRPSE for recommendations.

During 2009-10, 59 sick PSUs registered losses worth Rs 15,842 crore, Mr. Patel said.

FDI in India retail: Strike hits trade and business across Bengalhttp://economictimes.indiatimes.com/news/news-by-industry/services/retailing/fdi-in-india-retail-strike-hits-trade-and-business-across-bengal/articleshow/10943089.cmsKOLKATA: Trade and business was crippled across West Bengal Thursday as retailers and wholesalers shut shop to protest the central government's decision to allow 51 per cent foreign direct investment in multi-brand retail.

The city's business hub Burra Bazar, regarded as one of the largest wholesale markets in Asia, wore a deserted look with all shops and commercial establishments downing shutters to join the all-India strike by the trading community on the issue.

Emergency services like pharmacies and hotels which had boarders have been kept outside the purview of the strike.

Taraknath Trivedi, state general secretary of the Federation of Traders' Organisations that controls over 50 lakh small traders, said the strike was "total and spontaneous". "There has been no trading activity in Burra Bazar or any other market and even in the roadside shops."

He said reports pouring in from the districts indicate a totally successful strike.

"This is just a token agitation. If the government does not heed our protest, we will launch a bigger agitation," he said.

Attacking the government decision, Trivedi said: "The big foreign retail chains like Wal-Mart will initially buy the produce from the farmers at a high price and sell them to the consumers at a price lower than what we give. In this way, they will rob us of our business and force us to close down. Once they achieve their initial objective, they will dictate prices to the famers who will be forced to sell at lower prices."

"Then these companies will sell the products to the consumers at a higher price and make big profits," Trivedi said.

Tapas Mukherjee, convenor of the Coordination Committee of Burra Bazar Posta Business Association, said small retailers do not get any assistance from the government and are forced to run their business on their own strength.

"But we pay all kinds of taxes to the government. How could the government take such a big decision without holding any discussions with us?"

We cannot meet power firms' coal demands: Coal Minister Sriprakash Jaiswalhttp://economictimes.indiatimes.com/news/news-by-industry/energy/power/we-cannot-meet-power-firms-coal-demands-coal-minister-sriprakash-jaiswal/articleshow/10944345.cmsRANCHI: Coal Minister Sriprakash Jaiswal Thursday said Coal India Limited (CIL) could not meet the requirements of the power companies.

"A large number of power plants are coming in the country. We cannot meet the coal demand of the power companies," Jaiswal said at a press conference here.

He said, "We are trying to improve coal production to meet maximum requirements".

"Some of the subsidiaries of CIL like HSCL, WBCL are moving with the given target and some of the subsidiaries like Central Coalfield Limited (CCL), Bharat Coking Coal Limited and others are lagging behind in the production target," he added.

The minister admitted that some of the power stations do not have adequate stocks of coal. He advised the power companies to import coal considering their rising demand.

To a query about cancellation of coal blocks of the National Thermal Power Corporation ( NTPC) Ltd and the Jharkhand State Electricity Board (JSEB), Jaiswal said: "We have constituted a review committee which will look into the issue."

"The committee will look into only state-run and public sector undertakings' (PSU) power stations cancellation of the blocks," he added.

Jaiswal expressed unhappiness over the poor performance of the CCL in coal production. "Some CCL mines are not performing well."

Don't allow political differences hurt progress: Ratan Tatahttp://economictimes.indiatimes.com/news/economy/indicators/dont-allow-political-differences-hurt-progress-ratan-tata/articleshow/10944936.cmsNEW DELHI: Political differences should not be allowed to come in the way of India's progress, Tata Group Chairman Ratan Tata said, while expressing concerns over slowing down of the economy.

Other corporate leaders, including Biocon chief Kiran Mazumdar Shaw, UB Group Chairman Vijay Mallya and Mahindra Group Vice-Chairman Anand Mahindra, have also expressed concerns over the current state of economy in the country.

Tweeting at a time when political leaders are at loggerheads over foreign direct investment (FDI) in retail, Tata called for re-establishment of India's "economic leadership".

"Political differences and vested interests should never be allowed to stand in the way of India's economic progress," he posted on the social networking site.

"It would be a question of the national pride for every Indian to rebuild the past glory and re-establish the country's economic leadership," he added.

In his tweets, Tata also expressed concerns over the state of economic growth of the country.

"We should never let the extraordinary momentum achieved or global visibility we had, diminish...India's growth rate has dropped to 6.9 per cent. The manufacturing growth dropped to 2.7 per cent - a two year low!," he added

Expressing similar views, Biocon India Chairperson and Managing Director Kiran Mazumdar Shaw tweeted: "Partisan politics is deterring development in our country unfortunately. Its disagreement for the sake of it and not rationale".

UB Group chief Vijay Mallya highlighted how political compulsions are affecting decision making.

Karnataka's agri-business summit attracts Rs 78k crore investments

http://economictimes.indiatimes.com/news/economy/agriculture/karnatakas-agri-business-summit-attracts-rs-78k-crore-investments/articleshow/10943272.cms

BANGALORE: India's first global agri-business and food processing summit began in this tech hub Thursday on a bang, attracting investment proposals of over Rs.78,000 crore from a lead bank and about 30 private players.

As the lead investor, the state-run State Bank of India (SBI) signed an agreement with the state government to invest Rs.40,000 crore in funding agri-business projects in partnership with the private sector.

Among the leading firms which signed agreements to invest in the state are Srei Infrastructure Finance Ltd with Rs.15,000 crore in agri-business projects, Wadhawan Mega Infrastructure Ltd Rs.10,000 crore in corridor of excellence, knowledge hub and post-harvest infrastructure.

Similarly, Welspun Infratech Ltd plans to invest Rs.5,000 crore in agri-business infrastrcuture, Marg Ltd Rs.4,000 crore in agro-industrial clusters and agri infrastructure and Akshayakalpa Farms & Food Ltd Rs,1,000 crore in agri-based enterprise models, organic milk and milk products' manufacturing units.

"We have also signed agreements with another 23 firms on the first day of the two-day summit for an additional investments of Rs.3,674 crore in agri infrastructure, food processng, horticulture and sericulture," state agriculture department secretary Sandeep Dave told reporters here.

Union Agriculture Minister Sharad Pawar, who was to inaugurate the summit, could not do so as he was pre-occupied with the parliament session in New Delhi.

Opposition leader in the Lok Sabha Sushma Swaraj, who was invited to preside over the inaugural session, too was absent for the same reason.

In their absence, state Chief Minister D.V. Sadananda Gowda unveiled the summit in the presence of a dozen state ministers and scores of offcials from the central and state governments.

"As agriculture and farmers' welfare are main priorities of our government, the agri-business summit is intended to attract domestic and overseas investments in the farm sector and food processing," Gowda said in his presidential address.

In the run-up to the summit, the state government has come out with an agriculture business development policy to attract investments in the sector, which accounts for 16 percent of the state's gross domestic product.

Activity in the Oil and Gas sector (including regulatory)

ONGC investing nearly Rs 25K crore for development of 11 projectshttp://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/ongc-investing-nearly-rs-25k-crore-for-development-of-11-projects/articleshow/10944377.cmsNEW DELHI: State-owned Oil and Natural Gas Corp (ONGC) is investing nearly Rs 25,000 crore in bringing to production nearly a dozen marginal oil and gas fields by 2014.

"ONGC has taken up the development of marginal fields through 14 projects, out of which three projects have been completed," Minister of State for Petroleum and Natural Gas R P N Singh said in a written reply to a question in Lok Sabha.

The 14 projects entailed an investment of Rs 27,305.05 crore. Of these three, Rs 506.22 crore development of D-1 field, Rs 219.77 crore SB-11 development and Rs 1,688.38 crore investment in development of Vasai East in western offshore, have been completed.

Another 11 projects entailing an investment of Rs 24,890.38 crore are under various stages of investment.

Singh said the biggest among the projects is B-193 Cluster development at the cost of Rs 5,633.44 crore which would yield 5.57 million tonnes of oil and 5.12 billion cubic metres of gas in 15 years. The project is scheduled to be completed by June, 2012.

Besides, another Rs 3,241.03 crore is being spent on Cluster-7 development by March 2013 to produced 9.73 million tonnes of oil and 4.52 billion cubic metres of gas over a period of 16 years.

ONGC is also investing Rs 3,195.16 crore in producing 6.13 million cubic metres of condensate and 15.14 bcm of gas from C-Series field by 2022-23. Another, 2,218.01 crore is being investment in integrated development of G-1 and GS-15 fields in for producing 0.982 million tons of oil and 5.92 bcm of gas over 15 years period beginning May, 2012.

It is also investing Rs 2,920.82 crore in producing 2.46 million tonnes of oil and 6.56 bcm of gas from B-22 Cluster, Rs 2,523 crore in WO-15 Cluster development for 2.83 million tonnes of oil and 8.58 bcm of gas and 2,163.65 crore in additional development of D-1 field.

ONGC would also invest Rs 1,456.96 crore in B-46 Cluster development to product 1.68 million cubic metres of condensate and 5.273 bcm of gas in 12 years beginning May 2012.

Followed competitive bidding process for KG-D6 condensate: Reliance Industrieshttp://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/followed-competitive-bidding-process-for-kg-d6-condensate-reliance-industries/articleshow/10943676.cmsNEW DELHI: Rebuking criticism over the sale of condensate from its KG-D6 fields to the company's refinery in Jamnagar, Reliance Industries has said it followed a competitive bidding process in which state-owned HPCL was outbid.

RIL Senior Vice-President (Commercial) B Ganguly on November 18 wrote to the Oil Ministry and the Directorate General of Hydrocarbons (DGH) saying, "The price at which the condensate has been sold represented the best available price and there was no competing or even matching offer."

Replying to the DGH's concerns over the sale of gas condensate from KG-D6 to the Jamnagar refinery, the company wrote saying the sale was done following a transparent competitive bidding system, as envisaged under the Production Sharing Contract.

In response to a tender for June, 2011, to May, 2012, sale, the company's Jamnagar refinery in an April 18 bid quoted a price of Brent crude oil price minus USD 20 per barrel.

Hindustan Petroleum Corp Ltd (HPCL) submitted its bid on April 19 quoting a price of Brent minus USD 25 per barrel.

On RIL's request to both bidders to review their price proposals, "HPCL revised its bid upward by a mere 5 cents per barrel," the company said.

"HPCL's revised offer of Dated Brent minus USD 24.95 per barrel was still USD 4.95 per barrel lower than that offered by RIL's Jamnagar Refinery," he wrote.

"It may be noted that despite HPCL's Visakhapatnam Refinery being located on the East Coast, it quoted a price which was much lower than the price quoted by a refinery (RIL Jamnagar) at the northern end of the West Coast. HPCL's price was considered as not justified and against the interest of the parties to the PSC," he added.

"The bid of RIL Jamnagar, was clearly the best available price at the delivery point... Clearly the sale of KG-DWN-98/3 gas condensate was finalised through a competitive bidding process involving all oil refining companies in India, (and) the requirements of Article 19.2 of the PSC on valuation have been met," the company wrote.

RIL said no "positive response from any party (either from PSUs or private sector refineries)" was received against a tender for sale of condensate in 2010-11.

"HPCL specifically mentioned in their regret email dated May 28, 2010, that due to logistics constraints, they would not be able to participate in the tender," the company said, adding that only its Jamnagar Refinery quoted a price of Brent minus USD 25.6 per barrel.

RIL informed the Oil Ministry of the results of the tender through a letter dated June 2, 2010, which was followed by a reminder on June 30, 2010.

Militant Activity/Terrorism (Particularly in Bangalore, Mumbai, Noida, Chennai, Coimbatore)

‘Effective operations needed in Naxal hit areas’http://zeenews.india.com/news/nation/effective-operations-needed-in-naxal-hit-areas_744786.htmlNew Delhi: Home Minister P Chidambaram on Thursday batted for continuing effective and "intelligence-based" operations in Naxal-hit states as he announced over 800 fresh posts for the crucial snoop unit of BSF.

He also asked the force to deploy its "skills and tactics" for anti-Maoist offensives which it has developed over the years in anti-insurgency operations. "I would urge the BSF to continue to upgrade their skills and tactics that have been developed over years of experience in counter-insurgency operations and to adapt them in ongoing anti-Naxal operations," Chidambaram said while addressing jawans and officers of the force during their 46th Raising Day celebrations here.

"I am sure the BSF, with its proven capabilities, is ideally equipped and trained to undertake important intelligence-based operations to achieve success," he said after he reviewed the Border Security Force (BSF) parade at its camp in South-west Delhi's Chhawla.

The BSF is in the process of inducting close to 2,000 additional personnel (two battalions), adding to existing ten battalions, for anti-Naxal operations in Chhattisgarh and Orissa.

"I am happy to say that this year the government has approved major proposals for strengthening the BSF...1,520 posts for augmenting the training capacities, 450 additional posts for engineering (wing) and 825 posts for the BSF 'G' set up," the Home Minister announced.

The 'G' branch of the BSF acts as the backbone for conducting precision operations and it is being replicated by the CRPF at present for its anti-Naxal operations.

Labor/Social Unrest

Anti-dam movement resumes force in Assamhttp://www.timesofassam.com/headlines/anti-dam-movement-resumes-force-in-assam/After a period of silence, anti-dam protests once again erupted in Northern Assam yesterday with clashes taking place at various places between the Police forces and anti-dam protestors. The government, despite stiff protest by various democratic groups and organisations deployed police and paramilitary forces along the National Highway (NH) 52 to ensure the safe transportation of turbines to the Lower Subansiri Hydroelectric Power Project site.

Suspecting a truck to be carrying turbines to the dam site, activists tried to stop the truck at various places like Sootea, Biswanath Chariali, Behali, Gohpur and Dholpur. In order to disperse agitating people, the police even resorted to firing and lathi charge, injuring several protestors. The protestors included agitating local public, members of All Assam Students Union (AASU), Asom Jatiyotabadi Yuba Chatra Parishad (AJYCP), Takam Mising Porin Kebang (TMPK) and the Krishak Mukti Sangram Samiti (KMSS).

All the agitating organisations KMSS, AASU and AJYCP has made it clear to the authorities that they would not allow passage of any materials for construction of the dam.

It is to be mentioned that the continuous agitation programmes against the construction of mega dam have been reported to have created major losses to the National Hydroelectric Power Corporation (NHPC) and NHPC has repeatedly sought the intervention of the administration regarding the same.

Led by Akhil Gogoi the Krishak Mukti Sangram Samiti (KMSS), Takam Mising Porin Kebang (TMPK), AJYCP and AASU had been leading strong rallies across the state protesting the construction of the mega dams at lower Subansiri. The strikes and protests have been supported by majority of organizations including citizen forums and even insurgent group United Liberation Front of Asom (ULFA).