INDIA COUNTRY BRIEF 101102

Basic Political Developments

Haryana's Jat leaders Tuesday said that they will gather in the capital Nov 25 to give the central government the ultimatum on their demand.

The Congress party Tuesday studiously avoided all reference to two raging controversies - the Adarsh housing society scam and the corruption in the Commonwealth Games.

NCP today said it would continue to support the coalition government in Maharashtra.

Congress today went full blast in attacking the RSS and its sister organisations, accusing them of being involved in terrorism.

The BJP today called for a shutdown in Jammu next Monday to protest Chief Minister Omar Abdullah's recent remarks in the Legislative Assembly.

The interlocutors on Jammu and Kashmir today submitted their report to Home Minister P Chidambaram after their maiden visit to the state.

National Economic Trends

The RBI today made its lending and borrowing activity with banks expensive by 25 basis points.

Expressing concern over high rates of inflation the Reserve Bank of India today said that though the headline inflation has moderated in recent months, the current inflation rate is still well above the comfort zone.

Uttar Pradesh Government today increased the state advisory price of sugarcane by Rs 40 per quintal.

Business, Energy or Environmental regulations or discussions

Chinese electronics and appliance maker TCL Corporation will invest 30 million USD in India to enhance its share in the domestic market.

JSW Energy will invest Rs 3,300 crore to expand the capacity at its 860 megawatts (MW) power plant at Vijayanagar in Karnataka by 660 mw.

Hinduja Group flagship firm Ashok Leyland today launched 10 models of tippers and tractor trailers on the new U-truck platform.

India Inc today expressed apprehensions that the RBI's decision to hike short-term lending and borrowing rates could lead to higher interest rates and impact the growth momentum of the economy.

Gujarat takes the lead among states in solar power.

Activity in the Oil and Gas sector (including regulatory)

Central Electricity Authority (CEA) has given its nod for allocation of gas to Reliance Power’s 2,400 megawatt (mw) Samalkot project in Andhra Pradesh.

Oil and Natural Gas Corporation plans to invest over USD 10 billion in bringing to production gas discoveries off the east coast.

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

Maoists today gave a call for a 24-hour 'Bharat bandh' on November eight protesting against the proposed visit of the US President Barack Obama to India.

Seeking to downplay the Headley controversy, National Security Advisor Shivshankar Menon said on Tuesday, that the access given by the US to the Pakistani-American terrorist was "unprecendented", saying such cooperation may not have been possible five years ago.

Labor/Social Unrest

Police personnel were today deployed in the tense campus of North Eastern Hill University after it was virtually shut down by agitating students who have been demanding removal of new vice-chancellor.

Full Text

Basic Political Developments

Jats adamant on quota, to assemble in Delhi http://in.news.yahoo.com/43/20101102/812/tnl-jats-adamant-on-quota-to-assemble-in_1.htmlNov 25 Tue, Nov 2 03:26 PMChandigarh, Nov 2 (IANS) Haryana's Jat leaders Tuesday said that they will gather in the capital Nov 25 to give the central government the ultimatum on their demand for other backward class (OBC) status and job quota for the community.

Members of the Jat community are seeking reservation in government jobs and educational institutions, as given to OBC sections.

'Both the central and state governments are delaying the issue of our demands and they are not at all serious about them. They are only buying time by making false promises. We have decided to converge in New Delhi on Nov 25 to give final ultimatum to the central government,' said Yash Pal Malik, president of the All India Jat Aarakshan Sangarsh Samiti, while addressing reporters here Tuesday.

'Thereafter, we would intensify our campaign and there is a possibility that we would also show a small trailer to the government on Nov 25,' he added.

Earlier, Jat community members had threatened to seal the Delhi borders Oct 3, before the start of the Commonwealth Games. They later changed their decision.

'We had got a request from the Congress government not to interrupt the Games. They had promised us that immediately after the Games, they would take up our issue, but it did not happen,' said Malik.

'Some members of a political party had also attacked and threatened me. But we are not going to step back and would continue fighting till all our demands are met,' he said.

Earlier Sep 13 and 14, Hisar district of Haryana saw a widespread violence by Jat community members on this issue. A mob went on the rampage, targeting government and private property.

One youth was killed in police firing, and several people were injured in clashes. Following the violence, Hisar superintendent of police Subhash Yadav was booked and transferred from his post.

Congress avoids Adarsh scam, CWG graft at AICC meethttp://www.newkerala.com/news/world/fullnews-75892.htmlNew Delhi, Nov 2 : The Congress party Tuesday studiously avoided all reference to two raging controversies - the Adarsh housing society scam and the corruption in the Commonwealth Games - at its special All India Congress Committee (AICC) meet here. The AICC meet was addressed by party chief Sonia Gandhi, Prime Minister Manmohan Singh, Rahul Gandhi and other Congress leaders and attended by around 1,200 delegates.

Not a single word was mentioned by the leaders - including Pranab Mukherjee - on the two controversial topics.

In fact, Maharashtra Chief Minister Ashok Chavan whose role in the Adarsh housing scam is being probed by a two-member Congress panel, was seated on the dais. Party MP

Suresh Kalmadi, facing allegations of corruption in the organisation of the Commonwealth Games, was seated in the front row.

When a former chief minister of Orissa, Hemanand Biswal, mentioned about the Commonwealth Games, there was expectation that he would touch upon the corruption issue. But Biswal limited his references to the demand for reservation for tribals in Delhi, who had worked for the Games projects in the national Capital.

The AICC meeting was convened Tuesday to fulfil the party's constitutional obligation to elect members to the party working committee, the party's highest decision-making body.

The meeting unanimously authorized Sonia Gandhi to nominate the CWC members and other office-bearers.

Since Sonia Gandhi became president of the party in 1998, elections to CWC have not been held.

In her inaugural remarks, Sonia Gandhi emphasized that the Congress respects its coalition partners in states but would also attempt to gain strength on its own and keep its "political space".

"The party is in coalition in some states. We respect coalitions but that does not mean we will not work to gain strength or that we will leave our political space," she said.

Pointing out that 10 states will go to assembly polls in next two years, Gandhi said the party has to work with dedication and unity for its victory in the polls.

Gandhi said the party was steadfast in opposing communalism. The statement adopted by the meeting, which was read by Mukherjee, said "recent revelations through detailed investigations have exposed the true character of RSS (Rashtriya Swayamsevak Sangh) and its sister organizations".

Without mentioning Congress general secretary Rahul Gandhi, she praised his efforts at democratising the working of the Youth Congress and the National Students Union of India (NSUI).

Expressing concern over rising prices, Gandhi said the prices of food items needed to be brought down further and the responsibility for doing so also lay with the states.

Referring to opposition-ruled states, she said they have as much responsibility to check prices as the central government.

On the Allahabad High Court verdict on the Ayodhya dispute, she said it did not condone the demolition of the Babri Masjid and added that the perpetrators must be "brought to justice".

In his address, Prime Minister Manmohan Singh said the United Progressive Alliance (UPA) government will always try to ensure that economic development reaches the poorer and weaker sections of society.

"We want an economic development which is equitable," he said, adding that the Congress-led UPA had in the last six and half years always looked after the welfare of the "aam aadmi (ordinary people)", he said.

He praised the Congress president for her "dynamic" leadership.

Rahul Gandhi, who participated in the debate on the statement adopted at the meeting, said the empowerment of the poor will take the country forward and his party was striving to bridge the gap between those getting prosperous and those lagging behind.

'Alliance with Cong in Maharashtra to continue' http://www.ptinews.com/news/1083351_-Alliance-with-Cong-in-Maharashtra-to-continue--New Delhi, Nov 2 (PTI) NCP today said it would continue to support the coalition government in Maharashtra even if there is a change of guard in the Congress leadership in the wake of the Adarsh Housing Society scam.

"We have a coalition government in Maharashtra with the Congress party. A decision has to be taken by them alone. As far as NCP is concerned, we fully support the Congress-led government," senior NCP leader and Union Civil Aviation Minister Praful Patel told reporters here.

He was asked about NCP's position in the wake of Chief Minister Ashok Chavan offering to resign in the wake of the Adarsh Society scam and apparent moves to replace him with someone else.

"We have a formula by which we have been working for the last 10 years in government with the Congress. Therefore, that arrangement continues," Patel said after felicitating Commonwealth Games medalists.

Congress accuses RSS of terror 'links', skirts scamshttp://www.ptinews.com/news/1083003_Congress-accuses-RSS-of-terror--links---skirts-scamsRepeating after deletion of some portion in 5th para) Cong accuses RSS of terror "links", skirts scams

New Delhi, Nov 2 (PTI) Congress today went full blast in attacking the RSS and its sister organisations, accusing them of being involved in terrorism and held that the Allahabad High Court verdict does not condone the demolition of Babri Masjid but skirted the raging issue of housing scam in Mumbai.

The day-long session of AICC, to ratify re-election of Sonia Gandhi as party President, saw over 1,000 delegates authorising her to nominate members to the Congress Working Committee, the highest policy-making body of the party.

In her inaugural speech, Gandhi said Congress and the governments led by her party will "forcefully" resist attempts by anyone to abuse religion for political gains.

BJP calls Jammu bandh next weekhttp://www.ptinews.com/news/1083877_BJP-calls-Jammu-bandh-next-weekJammu, Nov 2 (PTI) The BJP today called for a shutdown in Jammu next Monday to protest Chief Minister Omar Abdullah's recent remarks in the Legislative Assembly and also what it said discrimination of the region by the government.

"The bandh has been called to protest Chief Minister's remarks that the state had only acceded with the Union of India and not merged with it," state BJP chief Shamsher Singh Manhas told reporters here.

He said they would also gherao Congress Ministers on November eight, the day government offices, shifted from the summer capital to the winter capital as part of the Darbar move, would open in Jammu.

The shutdown was also called to protest "step-motherly being meted out to transporters, traders, businessmen and shopkeepers by the Centre and the NC-Congress government," the BJP state unit head said.

Interlocutors submit report to HM, hopeful of solutionhttp://www.ptinews.com/news/1083624_Interlocutors-submit-report-to-HM--hopeful-of-solutionNew Delhi, Nov 2 (PTI) The interlocutors on Jammu and Kashmir today submitted their report to Home Minister P Chidambaram after their maiden visit to the state, with their leader Dileep Padgaonkar saying he is "hopeful" of a solution of the issue but did not have a "magic formula".

The three-member group today briefed Chidambaram about its visit to J-K and presented its report which included recommendations.

"This was our first visit to the state. We gave our set of recommendations," Padgaonkar told PTI but refused to divulge details about the contents of the report.

He said, "Let it be between government and the interlocutors".

When asked about their next visit to the state and possibility of talks with separatist groups, Padgaonkar said, "We do not have any magic formula other than to keep with our efforts to be engaged with them (separatists).

National Economic Trends

RBI ups key rates; loans may not become expensive just yethttp://www.thehindu.com/business/Economy/article864863.eceBattling high prices, the RBI today made its lending and borrowing activity with banks expensive by 25 basis points, but bankers said that they would not increase their commercial lending rates for now in view of the festival season.

While raising the short-term lending (repo) and borrowing (reverse repo) rates to 6.25 per cent and 5.25 per cent, respectively, the central bank kept its benchmark lending rate (Bank Rate) and CRR unchanged at 6 per cent.

The Planning Commission said the move was in sync with the actions of other central banks, while the Finance Ministry described it as a good balancing act to tame inflation without hurting growth.

The industry, however, feared that the hike in the key rates could make loans costlier and hit the growth momentum.

This was the sixth time this year that the RBI has raised repo and reverse repo rates. The apex bank, however, hoped that going forward it may not have to up the rates further.

"I see this more as a signal of getting back to normal interest rate regime," Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters.

"So, whether it (hike by RBI) will raise pressure on the system? Eventually, it will. Whether there would be immediate reaction? Not likely," said SBI Chairman O P Bhatt.

In the mid-year review of its monetary policy, the central bank also tightened norms for upper-end housing loans to check asset bubble, and possible defaults.

Although banks said they would refrain from immediately hiking rates, they may not be able to hold on to the existing rate-level for long as demand for credit increases and depositors put pressure on them to raise interest rates.

Realty companies said this may not have any negative impact on home demand.

The RBI also asked banks to keep more money aside for teaser home loans as a cushion in case of defaults on such a product. Teaser home loans are given at low interest rates for initial years.

"It has been decided to increase the repo rate by 25 basis points from 6 per cent to 6.25 per cent with immediate effect...It has been decided to increase the reverse repo by 25 basis points from 5 per cent to 5.25 per cent," RBI said.

The RBI said its moves are expected to "rein in rising inflationary expectations...be moderate enough not to disrupt growth."

Meanwhile, RBI said that even in the background of uncertain economic revival in advanced economies, the Indian economy is on a growth momentum, despite volatile nature of industrial numbers.

It pegged inflation at 5.5 per cent by the fiscal-end, but it should not be confused with reducing the target for rate of price rise from earlier six per cent, since the new projection is based on new series

RBI expresses concern over high rates of inflationhttp://www.newkerala.com/news/world/fullnews-75684.htmlMumbai, Nov 2 : Expressing concern over high rates of inflation the Reserve Bank of India today said that though the headline inflation has moderated in recent months, the current inflation rate is still well above the comfort zone.

In his second quarter review of the monetary policy for the current fiscal, RBI Governor D Subbarao said the RBI quarterly inflation expectation survey conducted during the first fortnight of September 2010 indicated that short-term household inflationary expectations have increased marginally. Further, notwithstanding some moderation, food price inflation has remained persistently elevated for over a year, reflecting the structural demand-supply mismatches in several commodities - besides protein sources, oilseeds and vegetables also show this pattern.

Given the changing consumption patterns and as yet inadequate supply response, food price inflation is becoming increasingly structural in nature. Further, even as non-food manufacturing inflation has indeed moderated, it still remains above its medium-term trend, he added.

He said going forward, the inflation outlook would be shaped by evolving good price inflation, rising global commodity prices and demand pressures arising from sustained growth amidst tightening capacity constraints.

''On balance, inflation is expected to moderate from the present elevated level, reflecting in parts, some easing of supply constraints and concerted policy action,'' he added.

On the basis of currently available information and the fact that expected moderation in food price inflation has also not fully materialised, the baseline projection of WPI inflation for March 2011 has been placed at 5.5 per cent, which is equivalent to 6 per cent under the old series.

He said the Reserve Bank will endeavour to achieve price stability and anchor inflation expectations. In pursuit of these objectives, the Apex Bank will continue to evaluate an array of aggregate and disaggregated measures of inflation in the context of the evolving macroeconomic situation.

He said notwithstanding the current inflation scenario, it is important to recognise that in the 2000s, the average headline inflation rate remained in the range of 5-5.5 per cent, down from its historical trend rate of about 7.5 per cent. A combination of factors played a role in this transformation. One of these was the commitment on the part of the monetary policy to keep inflation low and stable.

This record is an important foundation for the credibility of monetary policy and, more generally, the broader inflation management framework.

Against this backdrop, the conduct of monetary policy will continue to condition and contain perception of inflation in the range of 4.0-4.5 per cent. This will be in line with the medium-term objective of 3 per cent inflation consistent with India's broader integration into the global economy, he added.

UP hikes sugarcane price by Rs 40 per quintal http://www.ptinews.com/news/1082989_UP-hikes-sugarcane-price-by-Rs-40-per-quintal-Lucknow Nov 2 (PTI) Uttar Pradesh Government today increased the state advisory price of sugarcane by Rs 40 per quintal. The decision was taken in the cabinet meeting presided by Chief Minister Mayawati.

Mayawati said the officials have been directed to ensure that sugar mills start crushing at the earliest, so the farmers do not face any problems due to the move.

Business, Energy or Environmental regulations or discussions

TCL to invest 30 million USD in Indiahttp://www.newkerala.com/news/world/fullnews-75737.htmlMumbai, Nov 2 : Chinese electronics and appliance maker TCL Corporation will invest 30 million USD in India to enhance its share in the domestic market. The company which has a turnover of 6.84 billion USD had chalked up an ambitious plan to launch an impressive line of products besides expanding into new markets in the country.

The company in a release here said that it was one of the fastest growing enterprise in China and had a brand value of nearly 6.84 billion USD.

The Chinese company entered the Indian market by establishing a 100 per cent subsidiary, TCL India Holdings Pvt Ltd, with a range of impressive products that embodied the latest technology and met the budget of every Indian household.

TCL in its endeavor to focus and establish itself as a strong contender in the Indian market, plans to expand its sales and services network across the India, from the current

base of 20 branch offices and dealer network of over 5000, which is supported by 136 service franchisees.

At present, TCL has a stronghold in southern market and is now eyeing the eastern and western regions to garner larger market share, it said.

The company is also an OEM to some of the leading electronic brands in the country and has reinforced its position as a quality manufacturer with the signing of a strategic partnership with Videocon which entitles them to supply Videocon with LCD, CRT TVs and ACs for a period of 2010-2011.

JSW Energy plans Rs 3,300-cr expansionhttp://economictimes.indiatimes.com/news/news-by-industry/energy/power/JSW-Energy-plans-Rs-3300-cr-expansion/articleshow/6856283.cmsMUMBAI: JSW Energy will invest Rs 3,300 crore to expand the capacity at its 860 megawatts (MW) power plant at Vijayanagar in Karnataka by 660 mw, the company said on Monday.

The Vijayanagar expansion plan raises the company’s total expansion target for 2015 to 12,050 MW from 11,390 MW aimed earlier, said chief financial officer Pramod Menon.

The company currently has an operational capacity of 1,430 MW.

The Vijayanagar brownfield expansion would be financed with a debt-to-equity ratio of 3:1. Work on the thermal power plant would start in April and is expected to be completed in about 42 months, the Mumbai-headquartered company said. The company is working on financial closure of its upcoming units at Chhatisgarh (1,320 MW) and West Bengal (1,620 MW) and the financing of its Ratnagiri power project (3,200 MW). “West Bengal financial closure may happen by March. Financial closure of Chhatisgarh may get spilled over to June,” Mr Menon told reporters at a press meet.

The company hopes to complete the refinancing loans worth Rs 3,375 crore raised for its 1,200-MW Ratnagiri power plant by December. “We hope to lower the interest rate by 100-150 basis points,” said joint managing director LK Gupta.

The company sees its consolidated debt rising to Rs 9,250 crore by March from around Rs 8,500 crore now.

The company reported a consolidated net profit of Rs 184.6 crore for the quarter ended September, clocking a modest growth of 6.1% year-on-year weighed by higher fuel cost. Company’s consolidated net sales rose to Rs 777.4 crore in the quarter from Rs 557.97 crore. The company saw a 7% y-o-y fall in average realisation per unit sales at Rs 4.3.

Ashok Leyland launches 10 models of tippers, tractor trailershttp://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Ashok-Leyland-launches-10-models-of-tippers-tractor-trailers/articleshow/6859019.cms

CHENNAI: Hinduja Group flagship firm Ashok Leyland today launched 10 models of tippers and tractor trailers on the new U-truck platform.

Ashok Leyland Managing Director R Seshasayee launched the vehicles at a function here today.

The vehicles, under the 16-49 tonne category, would be available for pan-India sale in a phased manner over the next six weeks. In the next 12 months, the company plans to launch 15 more models in the domestic market.

RBI rate hike may impact economic growth: Industryhttp://economictimes.indiatimes.com/news/economy/finance/RBI-rate-hike-may-impact-economic-growth-Industry/articleshow/6859443.cmsNEW DELHI: India Inc today expressed apprehensions that the RBI's decision to hike short-term lending and borrowing rates could lead to higher interest rates and impact the growth momentum of the economy.

Industry chambers Ficci, CII and Assocham asked the Reserve Bank to strike a good balance between maintaining the country's growth and managing inflation.

"The move could have an impact on interest rates and the cost of borrowing, which in turn could affect areas which are still to pick up and come full stream," Ficci Secretary General Amit Mitra said.

Echoing Mitra, Assocham President Swati Piramal said that the policy rate hikes are likely to increase lending as well as deposit rates of banks immediately.

However, CII was of the opinion that the banks would not immediately raise the lending rates.

"We are reassured by the RBI's statement that it is unlikely to increase rates again in the near future," CII Director General Chandrajeet Banerjee said.

In the RBI's mid-year policy review, it announced an increase of 25 basis points in key short-term lending and borrowing rates to 6.25 per cent and 5.25 per cent respectively, to tame high inflation.

Headline inflation stood at 8.6 per cent for August, while the food inflation at an elevated 13.75 per cent for the week ended October 16.

The RBI retains GDP growth forecast at 8.5 per cent for 2010-11. In the first quarter of 2010-11, the economy grew at 8.8 per cent.

Ficci said the policymakers' focus be on extending growth which would lead to greater employment.

Gujarat takes the lead among states in solar powerhttp://economictimes.indiatimes.com/features/sunday-et/special-feature/Gujarat-takes-the-lead-among-states-in-solar-power/articleshow/6855821.cmsWhen his design didn’t find takers nationally, Narendra Modi went local. A few years ago, the Gujarat chief minister was at an international summit. When a session on energy crisis cast light on solar power , Modi thought of the Rann of Kutch in his home state, where the land was endless and the sun’s heat relentless. He wondered: could countries blessed with sunlight form a solar alliance, led by India, to mainstream this promising source of power?

He wrote to Prime Minister Manmohan Singh, with a broad concept of such an entity. He called it ‘Sun-Son’ — offspring of the sun. The Prime Minister’s Office acknowledged the proposal, but left it at that. So, Modi turned inwards. He asked his trusted lieutenants, energy minister Saurabh Patel and principal secretary S Jagdeesan, for a plan to turn the state into a hub in solar power.

The maiden expression of that vision came in January 2009, when Gujarat became the first Indian state to launch a solar-power policy. Several states followed suit. Like Gujarat, they also showed a long list of companies interested in generating solar power. But, unlike them, Gujarat is following through with an unmatched sense of purpose.

This June, it signed power purchase agreements (PPAs) — an operational and financial commitment from both the state and the developers — with 21 companies to generate 365 MW of solar power. At an estimated capital cost of Rs 15 crore per MW of solar capacity, that’s a likely investment of about Rs 5,500 crore. And supply is expected to begin by December 2011.

By all markers, Gujarat is the clear leader in solar power. Other states, notably Tamil Nadu and Rajasthan, have installations or commitments of a capacity in double digits. At an all-India level, the National Solar Mission, launched by the Centre in November 2009, has set a target of 1,000 MW target for 2013. In other words, Gujarat is on its way to rolling out one-third, probably more, of what the Centre is targeting for all of India in the next three years.

“Gujarat has the most aggressive plans,” says Ratul Puri, executive director, Moser Baer India , a sister company of which is setting up three solar plants of 15 MW each in the state. The plans also have a big idea: integrate solar into Gujarat’s power ecosystem by simultaneously smoothening both the demand and the supply sides.

On the supply side, Gujarat is incentivising developers by announcing solar tariffs for 25 years. The Gujarat Electricity Regulatory Commission (GERC), the state distribution arm, has fixed tariffs for the two kinds of solar technologies. And, many say, the rates are generous to developers.

The first technology is photovoltaic (PV) cells. Here large, solar panels made of silicon are erected on land in such a way that sunlight falls directly on them, and gets converted

into power. Solar producers in Gujarat using the PV technology will get Rs 15 per unit for the first 12 years and Rs 5 per unit from year 13 to year 25. By comparison, thermal and hydro cost Rs 4-6 per unit.

Activity in the Oil and Gas sector (including regulatory)

R-Power's AP project gets gas allocationhttp://economictimes.indiatimes.com/news/news-by-industry/energy/power/R-Powers-AP-project-gets-gas-allocation/articleshow/6856244.cmsNEW DELHI: Central Electricity Authority (CEA), the country’s apex power sector planning body, has given its nod for allocation of gas to Reliance Power’s 2,400 megawatt (mw) Samalkot project in Andhra Pradesh, allowing the power ministry to include it in the priority list of power projects that would need gas on an urgent basis.

In a letter to the power ministry, senior officials in the CEA have said that Samalkot could be commissioned by March 2012 (within 11th Plan) as Reliance Power has already placed orders for all six gas turbines for the project with General Electric , who, in turn, have informed that all turbines will be synchronised by February 2012.

In addition, environment issues for the project have, by and large, been settled and the power evacuation plan is ready.

“The power ministry may decide for allocation of 9.6 mmscmd of gas in light of the facts/progress submitted by the company,” the letter said. The empowered group of ministers, in its meeting in July, did not allocate gas to any new power plant and decided to ask fertiliser and power ministries to prepare a new list of projects that would require gas on an urgent basis.

“The prioritisation is being done due to scaled-down projection of gas flows from the KG basin,” an oil ministry official said.

ONGC plans to invest $10 bn in gas discoverieshttp://economictimes.indiatimes.com/news/news-by-industry/energy/oil--gas/ONGC-plans-to-invest-10-bn-in-gas-discoveries/articleshow/6859394.cmsNEW DELHI: State-owned Oil and Natural Gas Corporation plans to invest over USD 10 billion in bringing to production gas discoveries off the east coast, its Director (Exploration) D K Pande said today.

ONGC is aiming to develop finds in Krishna Godavari basin through four different projects, he said on the sidelines of the Petrotech-2010 oil and gas conference here.

"We are targeting 25-30 million standard cubic meters per day of natural gas production by 2014-15," he said.

The G-1 and G-15 fields will produce 2 mmscmd of natural gas from 2011 while S-1 and Vasistha deep-water project will produce 5 mmscmd.

However, the major push will come from development of finds in and around block KG-DWN-98/2, which sits next to Reliance Industries' giant KG-D6 block.

Pande said the block now has 10 gas discoveries and ONGC plans to tie-up nine of these with six gas finds in neighbouring 1G block to produce 20-25 mmsmcd from 2014-15.

"This development will cost USD 4.5 billion," he said. Another USD 5 billion will be needed to develop the ultra-deepsea UD-1 discovery in the KG-DWN-98/2. This discovery will be developed at a later date.

ONGC is in talks with energy majors BP Plc , Exxon Mobil , BG Group and Eni for a strategic tie-up for developing the KG basin discoveries.

Besides, ONGC plans to produce 10,000-20,000 barrels of oil per day from G-4-6, GS-29-1 and G-4-5 by 2012-13, he said.

The company has commissioned an onshore processing terminal at Odalarevu that will receive hydrocarbons from GS-15 field. The terminal is 90-km south-east of Rajahmundry in Andhra Pradesh.

ONGC has approached the Directorate General of Hydrocarbons (DGH) for declaring commerciality of nine discoveries in the northern part of the KG-DWN-98/2 block.

The southern exploration area of the block includes the UD-1 deepwater discovery, which is being appraised, Pande said.

The UD-1 discovery was made at a water depth of 2,841 metres and in-place reserves have been estimated at about 82.3 billion cubic meters of gas.

ONGC holds 90 per cent interest in the block and the rest is with Cairn India.

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

Maoists call Bharat bandhhttp://www.ptinews.com/news/1083138_Maoists-call-Bharat-bandhKolkata, Nov 2 (PTI) Maoists today gave a call for a 24-hour 'Bharat bandh' on November eight protesting against the proposed visit of the US President Barack Obama to India.

"We strongly protest the visit as it is a further step to sell-out of our country to American imperialism and for that we have called the bandh," Maoists Central Committee Member, Kishenji told PTI from an undisclosed location.

Obama is on a three-day visit to India beginning November 6.

Ahead of Obama visit, NSA downplays Headley tiffNovember 02, 2010 16:50 ISThttp://news.rediff.com/report/2010/nov/02/obama-visit-nsa-downplays-headley-tiff.htmSeeking to downplay the Headley controversy, National Security Advisor Shivshankar Menon said on Tuesday, that the access given by the US to the Pakistani-American terrorist was "unprecendented", saying such cooperation may not have been possible five years ago.

Menon's remarks seeking to clear the air ahead of the visit of US President Barack Obama [ Images ], came within days of Home Secretary G K Pillai voicing disappointment over the US not sharing specific information on David Headley [ Images ], a key accused in the 26/11 Mumbai terror attacks [ Images ]. "In India [ Images ], (there is a debate on) how much did the US knew about Headley at what time and how much did they tell us. If you look at the broader picture, the kind of access we got to Headley is unprecedented. This is not what many states do very easily," he said at a function organised by FICCI in New Delhi [ Images ].

Menon wondered whether this kind of cooperation would have been possible about five years ago. He said the dissatisfaction over certain aspects of the ties was because people expect "much more" out of this growing relationship. "People expect much more out of this relationship. So, a lot of dissatisfaction we hear, whether it is outsourcing or counter-terrorism, (it is because) we expect this relationship to do much more," Menon said.

The NSA said the achievements of the relationship were "unprecedented" which neither of the two countries would have considered five or ten years back. "The level of engagement between our two countries is unprecedented. We never had this kind of engagement with each other in our history. There is no sphere of human endeavour in which we do not actually cooperate... the range of our engagement is quite unprecedented," he said.

Menon said the visit of Obama has given both the countries an opportunity to "actually put into practice and not just to showcase what we actually practice".

Asserting that he was "very optimistic" about the future of Indo-US ties, the NSA said the best thing for the countries to do was to be have a pragmatic approach in furthering the relationship. "I think we should do what we do best. We should be pragmatic and work the relationship where it works... I think we have the moment where we can be ambitious about the relationship," Menon said.

Labor/Social Unrest

Police deployed at NEHU following shutdown by students

http://www.ptinews.com/news/1083799_Police-deployed-at-NEHU-following-shutdown-by-studentsShillong, Nov 2 (PTI) Police personnel were today deployed in the tense campus of North Eastern Hill University after it was virtually shut down by agitating students who have been demanding removal of new vice-chancellor A N Rai.

The Meghalaya Tribal Students Coordination Committee (MTSCC), a conglomerate of several student bodies, began an indefinite non-cooperation agitation since yesterday, virtually shutting down the university.

The agitating students demanded removal of Rai who was appointed as the V C on October 11.

Nearly 100 police personnel have been deployed at vital points in the campus, including all university gates, officials said.

The police tried to open the gates forcibly today, but the agitators refused to budge holding a demonstration at the entrance displaing placards like ?Go Back Rai?.

The students locked all entry points to the varsity, virtually closing down administrative and academic works.