New Delhi, May 19 

“The reason behind increasing call rates is that none of the players has a serious incentive to lower prices. The intensity of competition has come down after many players left the Indian market following cancellation of some licences after 2G scam,” Mahesh Uppal, director, Com First telecom consultancy, told.

Now the telecom players are concentrating more on usage and not on the number of subscribers. “Certainly not on the number of SIM cards they are selling,” Uppal added.

Earlier this month, Reliance Communications raised call rates by 20-30 percent across India. Bharti Airtel did away with its promotional offers in January. But Idea Cellular does not plan anything of that sort yet, said Rajat Mukarji, chief corporate officer of the company.

“The cost of spectrum has gone up. The cost of providing services has gone up. The companies are not trying to undercut one another despite being competitors. The problem seems common to all the telecom operators. The competitive market is still sufficiently competitive to deter collusion,” Uppal added.

According to Romal Shetty, head (telecom) for KPMG in India, rates in the country “are the lowest in the world. The quarter-on-quarter results of the telecom companies show that they are clocking lower margins. The EBITDA (Earnings Before Interest Depriciation and Amortisation) margins are under pressure. Lowering prices does not result in a competitive advantage. The companies are struggling to survive.”

He opined that even if the telecom operators increase prices by 10-20 percent, this will not hugely impact their businesses.

“Continuously lowering prices was proving to be counter-productive. Even the quality of customer service was going down. At times, it is important to apply some checks and balances as well,” Shetty told IANS.

Rishi Tejpal, Principal Research Analyst, CSP Business Strategy, Gartner Technology & Service Provider Research, said telecom companies in India have seen constant declining margins in the last few quarters. The Average Revenue Per User (ARPU) in India is among the lowest in the world.

On hiking call rates, he said: “This step has been taken to rationalize margins. The operators had been thinking about this for quite some time; now they have put this into action as they are now left with no other options, considering the increasing costs and declining margins.”

Even Reliance Communications, while increasing prices, said in a statement that the Indian telecom industry was now heading for a consolidation phase, with smaller operators shutting down or scaling down their operations and easing off hyper-competitive pressures. This will help the pricing power move back to serious, long-term and pan-India operators and positively impact profitability.

Tejpal said rising call rates are usually linked with declining usage and thus the impact on ARPU (average revenue per user) might not be significant. But average revenue per minute will be impacted and it will go up, he added.

“It is too early to say whether ARPU will actually go up or go down, but the average revenue per minute will definitely increase. It will take atleast another quarter or so to see whether it is impacting an operator’s revenue. Some of the operators have not directly increased rates but have reduced freebies and promotional offers, which will make the average user to pay nearly 20-30 percent more,” Tejpal added.

The Union Minister for Labour and Employment, Mallikarjun Kharge with the DG International Labour Organisation (ILO), Guy Ryder, at the special session of the 45th Indian Labour Conference, in New Delhi on May 18, 2013.

From India, Li will go to Pakistan, Switzerland and Germany, reports Xinhua.

Li is visiting these countries at the invitation of Indian Prime Minister Manmohan Singh, the Pakistan government, Swiss President Ueli Maurer and German Chancellor Angela Merkel.

The Election Commission ordered re-polling after political parties alleged that election officials had been stopped from reaching the polling centres May 11, reports Xinhua.

Voting will continue until 5 p.m. on one National Assembly and two provincial assembly seats.

Hours before the polling, gunmen shot dead a senior woman member of the Tehreek-e-Insaf party (PTI), causing tension in the city.

PTI chief Imran Khan blamed the powerful Mutahida Qaumi Movement (MQM) for the killing of Zara Shahid Hussain, 59. MQM denied the charge.

Re-polling is being held at 43 polling stations in the posh Clifton and cantonment areas of Karachi. The MQM and the Pakistan Peoples Party have boycotted the re-polling.

Security personnel including soldiers and paramilitary forces have been deployed at 44 polling stations to maintain peace.

Kolkata, May 19 

On the back of huge gold imports, the Reserve Bank of India (RBI) earlier suggested that banks should be less active on selling gold coins at their branches, seeking to check demands for gold.

“I don’t know whether it would lead to reduction in consumption. Because in India there is such a fascination for gold,” Chaudhuri said here.

“If you discourage banks from selling, you can do that, but what stops people from going to the jewellery shops and banks so long as attraction for gold remains in India,” he averred.

With gold imports putting pressure on the current account deficit, the RBI also tightened the screws on imports of the yellow metal by restricting banks to import bullion on a consignment basis only to meet genuine needs of exporters of gold jewellery.

The Indian government has earlier also taken steps like hike in import duty to restrict gold imports.

“Gold, I think, is deep in our psyche and to take people away from gold, greater steps are needed,” the SBI head added.

GDA chairman Santosh Yadav said under the new rule even a building built-in an area of 90 square metres can be raised to a height of 15 metres (four-storeys).

The builder can even further raise its height if he provides parking facilities in the basement or on the first floor and fulfils the rules of the fire department.

The land holder can now construct a basement even on a 90 square metre plot but has to leave two metres of space on three sides, the official said.

Farmers will now be allotted six percent plot in lieu of their acquire land from the developed land at a minimum rate of Rs.3,500-4,000 per square metre, while the reserve price in this area would at least Rs.25,134 per square metre.

The builders do not build the designated 10 percent low income groups flats in their project.

Now the GDA will itself regulate the construction and it will allot such flats to the weaker sections and collect payments from them, the officer added.

This will ensure the proper allotment of the flats to the EWS (economic weaker sections) and LIG (low income group) people from the group housing developers’ lay out plan.

The state government uploaded the draft policy on its websites Saturday and invited suggestions from various industry bodies as well as business community.

It said that several incentive schemes for new investors have been incorporated in the draft industrial policy and that thrust has been on setting up industrial parks and hubs in the state largely through public private partnership (PPP) model.

Industry Minister Partha Chatterjee said the government would soon publish a document on the new industrial policy.

The Mamata Banerjee-led government was expected to unveil the new policy January this year. Chatterjee said that before drafting the new policy, the government reviewed and studied industrial policies of several other states.

“We kept in view industrial policies of about 10 states while formulating the draft industrial policy,” he said.

“We have incorporated in it the issue of land allocation and several incentive schemes which we will offer to the entrepreneurs who will come in our state to set up new industrial units,” the minister said.

Stating that the government was “open” to suggestions from the industry till June 30, he said it would incorporate those suggestions “if found practical” in the final industrial policy.

The Banerjee government announced the draft policy two days before completing two years in office.

The state’s previous industrial policy was announced in 1994 by the erstwhile Left Front government. Late Jyoti Basu was then the chief minister.

Mumbai, May 19 

Singapore Deputy Prime Minister T. Shanmugaratnam, who also holds the finance portfolio, will be the guest of honour. He is scheduled to deliver the keynote address on ‘Asian Capital Markets – Future Engine of the Global Economy’ on the occasion.

Maharashtra Governor K. Sankaranarayanan, Chief Minister Prithviraj Chavan, union Finance Minister P. Chidambaram, union IT & Law Minister Kapil Sibal and union Corporate Affairs Minister Sachin Pilot are also expected to be present on the occasion, the official said.

A commemorative postage stamp and a book on the history of the Indian securities market, “Banyan Tree to e-Trading” will be released on the occasion.

Established in 1988 to safeguard the interests of investors, the market regulator was vested with statutory powers through the SEBI Act, 1992, and in 1998, it was constituted as the regulator of the Indian capital markets.

Armed with quasi-executive, quasi-judicial and quasi-legislative powers, over the years, the SEBI has come to be both respected and feared by various market stake-holders.

It has been successful as a market regulator by pushing systemic reforms aggressively, making the markets electronic and paperless from July 2001.

SEBI has also been credited for taking quick and effective steps in the light of the global meltdown by liberalizing the takeover code to facilitate investments, acted during the Satyam fiasco and other major decisions.

“We have sought Indian support in constitution drafting. We can learn a lot from the Indian experience,” Libyan Ambassador to India Ali Al-Issawi told in an interview.

He said Libya would like India’s assistance in specific areas like parliamentary system and local administrative setup.

The North African country, which witnessed a regime change last year after a powerful nationwide uprising against Gaddafi’s autocratic rule, is in the process of drafting a new constitution.

“We are building the system from scratch. I am hopeful that by the end of 2014, we will have a new constitution and a democratically elected government,” he said.

India, the world’s most populous democracy, has already offered support to Libya in drafting a new constitution and transition to a democratic system. The two countries last year signed a memorandum of understanding (MoU) for cooperation in the field of election conduct and management, in which India has acknowledged expertise.

Members of the new democratically elected legislature, the General National Congress, also visited India last month to witness parliamentary proceedings and learn from the Indian experience.

Al-Issawi said India could play a crucially important role in the rebuilding of the Libyan economy.

“We would like India to participate in such transitional period. There is a huge scope of investments in sectors like petrochemical, construction, manufacturing and financial services,” he said.

Several Indian companies, including the government-run Bharat Heavy Electricals Limited, ONGC Videsh, Indian Oil Corporation and Oil India are engaged in upstream as well as downstream hydrocarbon projects in the North African country.

Private firms like Punj Llyod, Unitech, KEC International, Dastur Engineering, Shapoorji Pallonji Intenational and Global Steel Limited are involved in several projects in the country.

Most of these companies either stopped or suspended their works in 2010-11 when the country was passing through political turmoil.

Al-Issawi said the new regime was providing all possible assistance to Indian and other foreign firms to resume their business. He said many of the Indian workers who had returned home during the revolution were going back to Libya.

“There is great potential for cooperation between the two countries which has not been utilised yet and we should not miss this opportunity to use it for the sake of mutual benefit,” he said.

According to data available with India’s external affairs ministry, around 18,000 Indian workers were in Libya prior to the uprising. Most of them were evacuated to India in early 2011. Currently, as per official figures, nearly 2,000 Indians are engaged in Libya.

The envoy said the number of new visa seekers from India had increased sharply in the recent months.

“A lot of people are applying for visas. It includes new people as well as workers who had returned during the revolution,” he said.

According to the ambassador, Indians are seeking Libyan visas mainly for employment in the areas like engineering, medical and teaching professions.

The Union Minister for Commerce & Industry and Textiles, Anand Sharma meets the Prime Minister of Japan, Shinzo Abe, in Tokyo on May 17, 2013.

Addressing the media, World Gold Council India managing director P.R. Somasundaram said demands for the yellow metal for both jewellery and investment purposes remained strong in the first quarter of 2013.

“The price fluctuations in gold have only served to reinforce Indian consumers’ appetite for purchasing physical gold,” he said.

Global demands for gold was 963 tonnes in January-March this year, 13 percent lower year-on-year. The global demands for gold during the period under review was valued at $50.5 billion.

In India, the jewellery demand increased by 15 percent to 159.5 tonnes in January-March quarter while investment demand surged by 52 percent to 97 tonnes.

CONGRESS, BJP SPAR ON NITISH

By Insaf

New Delhi, May 18 : The Centre is leaving no stone unturned to woo Bihar Chief Minister and JD (U) Chief Nitish Kumar. First, Union Finance Minister Chidambaram asserted “granting Bihar  Special Category status was a possibility,” on his maiden visit to Patna. Then he hurriedly revised the definition of backwardness for determining a States eligibility to enhance Bihar’s access to central funds whereby special assistance would now be judged on the basis of measuring a State’s distance from the national average on parameters such as per capita income and other human development indicators. Indeed, tailor-made for the State as it lags behind in the development index. Predictably, this has set the cat among the pigeons and opened another fissure of mistrust between coalition partners JD (U) and BJP. Worried that it was a Central ploy to wean Nitish,  the Saffron Sangh advised its ally not to be “tricked”. Taking umbrage to unsolicited opinion the CM hit out at those “conjecturing a growing bonhomie”’ between Congress and JD(U).  Adding, “Those who see politics behind it are victims of ignorance.” Clearly, the 16 year-old trust between the allies seems to be fast evaporating, advantage Congress?

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Of Yatras & Poll Fever

In the rising tensions between BJP and JD(U)’s Nitish Kumar over the Congress’ promise of granting Special Status to Bihar, all Parties have started preparations for the forthcoming general elections. While Chief Minister Nitish Kumar is busy wooing his electorate by resuming his Sewa Yatra, RJD’s Lalu Prasad has completed Parivartan Yatra while LJP’s Ram Vilas Paswan is hoping to ring in a change with his ongoing Bihar Bachao Yatra. To underscore his claim that he is not a ‘has been’ Lalu Yadav at a massive rally  in Capital Patna unleashed his “T2” sons Tej Pratap and Tejaswi to carry forward the RJD flag, urging the crowds to throw out “dictator” Nitish, who is “behaving like a parrot sitting in the lap of BJP and RSS”. His message was clear: His successors were not wife Rabri, S2 brother-in-law, Sadhu and Subhash but his sons. Undeniably, dynasty is no longer the prerogative of the Congress alone, the regional satraps RJD and SP are not far behind. Leaving one wondering if Lalu’s charisma and days are numbered wherein he has to lean on the Gen Next for support? An unperturbed Nitish continues nonchalantly in the hope of making Bihar’s “Special status” his poll mantra.  What next?

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TN Celebration Mode

Tamil Nadu is in mega celebration mode. It’s Chief Minister and AIADMK supremo J Jayalalitha has completed two years of rule. The announcement on Thursday last, was splashed across full page (some six pages) ads in national dailies! For those who would have missed her blowing her own trumpet, it’s worth a recap. Not one, but many feathers in her cap is the unabashed message. The topmost being “CM Wins Cauvery waters for TN” wherein she states that 30 years in politics, “this is the first time that I have experienced a sense of fulfilment and achievement.” Perhaps, she would have done one better had she been magnanimous to acknowledge the Supreme Court’s role in resolving the TN-Karnataka dispute. But that is obviously not her style. What is, are the innumerable freebies that have been doled out —“laptops to students, mixies, grinders and electric fans, milch cows, goats and sheeps, free rice to provide food security, four gms gold, Amma canteens giving low priced but quality food to poor …et al. To top it, Jayalalitha is all set to dwarf rival DMK, with the tallest statue in the State of Tamil Thai (mother of Tamil) at a cost of Rs 100 crore! Guess it’s only a fraction of the mega bucks being spent on the celebrations.

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Andhra-Centre On Collision Course

It was unthinkable that Congress-ruled Andhra would be on a collision course with the Centre. But, the cancellation of bauxite mining leases in tribal Vishakhapatnam district has lead to a whopping row. While the State has challenged the move, the Union Tribal Affairs Ministry headed by Congressman Kishore Chandra Deb first asked Governor Narasimhan to use his special powers under Scheduled Areas to cancel the mining leases due to adverse ecological impact May last. When that didn’t work he has now evoked the Forest Rights Act which bars non-tribals from getting mining rights and provisions of the Panchayat Extension to Scheduled Areas Act
(PESA). Many State watchers smell a political rat as the mining leases were given by the late Chief Minister YS Rajasekhar Reddy in 2004 and 2009. Another stick to beat YSR’s son and Congress bête noire Jagan Reddy with?

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Drought, Flood States Get Relief

Three drought and flood hit States can breathe easy. This follows the Centre’s approval of Rs.511-crore assistance for Rajasthan, Nagaland and Arunachal Pradesh following their plight during last year’s natural calamities.  While Rajasthan gets Rs.320 crore, Arunachal Rs.147 crore and Nagaland Rs.44 crore under the National Disaster Management Fund. Further, an additional grant of Rs 256 crore was given to Maharashtra for rejuvenation of orchards in the State’s drought-hit regions. Another bonus is to provide feed concentrates for cattle under the National Mission on Protein Supplements during the current fiscal year. Recall, the Centre had given Rs 3,039 crore for Karnataka, Maharashtra, Gujarat and Kerala earlier which too were affected by drought. Clearly, the weather God might play hooky but the Government is not leaving anything to Lord Indra.

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Baby Boom In Kerala

Kerala has once again notched up a new record in the country. Whereby it is the first State which has succeeded in reducing deaths of new-born between 28 days or less. According to the latest Sample Registration System the country’s neonatal mortality rate   decreased six per cent from 37 during 2004-10 to 31 per 1000 berths. Significantly,  neonatal deaths comprise the largest fraction of infant moralities. Shockingly, Madhya Pradesh has the highest neonatal deaths followed by Uttar Pradesh. But happily, taking a leaf from God’s own country, Rajasthan and Chhattisgarh too have shown dramatic improvement in infant deaths. Thanks to new initiatives likes special new-born care units, new-born stabilization units, warmers and phototherapy units across villages.  Clearly this should help erasing India’s record of abysmal infant mortality.—INFA

(Copyright, India News and Feature Alliance)

“In the gradual convergence scenario, in 2030, China will save far more than any other developing country – $9 trillion in 2010 dollar terms – with India a distant second at $1.7 trillion, surpassing the levels of Japan and the United States in the 2020s,” the World Bank says in a report.

China will account for 30 percent of global investment in 2030, with Brazil, India and Russia together accounting for another 13 percent.

In terms of volumes, investment in the developing world will reach $15 trillion (in 2010 dollars), versus $10 trillion in high-income economies.

China and India will be the largest investors among developing countries, with the two countries combined representing 38 percent of the global gross investment in 2030, and they will account for almost half of all global manufacturing investment, the World Bank’s Global Development Horizons report said.

“In less than a generation, global saving and investment will be dominated by the developing world,” says the report, released Thursday.

By 2030, half the global stock of capital, totalling $158 trillion (in 2010 dollars), will reside in the developing world, compared to less than one-third today, with countries in East Asia and Latin America accounting for the largest shares of this stock, says the report, which explores patterns of investment, saving and capital flows as they are likely to evolve over the next two decades.

Titled “Capital for the Future: Saving and Investment in an Interdependent World”, the report projects developing countries’ share in global investment to triple by 2030 to three-fifths, from one-fifth in 2000.

Productivity catch-up, increasing integration into global markets, sound macroeconomic policies, and improved education and health are helping speed growth and create massive investment opportunities, which, in turn, are spurring a shift in global economic weight to developing countries.

A further boost is being provided by the youth bulge. By 2020, less than 7 years from now, growth in world’s working-age population will be exclusively determined by developing countries.

With developing countries on course to add more than 1.4 billion people to their combined population between now and 2030, the full benefit of the demographic dividend has yet to be reaped, particularly in the relatively younger regions of Sub-Saharan Africa and South Asia, it said.

Bilateral trade between the two countries stood at $14.7 billion during 2012-13.

“We expect that in the in next two to three years the trade volume would cross the $20 billion mark,” Sarat Pradhan, senior economic advisor, High Commission of South Africa in India, said at an interactive meeting organised by Bengal National Chamber of Commerce and Industry (BNCCI) here.

Bilateral trade between the two countries grew exponentially from $3 million in 1992-93 to $4 billion in 2005-06, while the figure was close to $7 billion by the end of 2011.

While raw materials, gold, inorganic chemicals, precious metals and oils have been the major export items to India, South Africa is now emphasising on several value-added products for export promotion.

“Value-added products such as capital equipment, electrotechnical equipment, safety equipment as well as mining and mineral products will be the thrust areas,” said Stefanus Botes, minister counsellor (Economic) at high commission.

Informing that currently Indian firms had a total investment of $7 billion in South Africa, Botes invited more companies to invest and form joint-ventures in different sectors in the country.

The officials said inland fishing was an important area where Indian companies could invest.

“If you purchase land directly from the farmers, you will get it at a much cheaper rate than we can provide it to you,” said Naveen Verma, director of Food Processing Industries, Bihar.

Verma was speaking at the “Roadshow on Promotion of Food Processing Industry in Bihar”, organised by the Indian Chamber of Commerce.

“If the government acquires land for anyone, we have to purchase it at a price which is 2.4 times higher than the circle rate. After including development charges, the price is around Rs.1 crore per acre, which does not attract many investors,” he said.

Verma said that the Bihar government has initiated a scheme called “Aao Bihar” (come to Bihar) where farmers, who are willing to sell or lease out their land, can contact the government with the details of land. In turn, the government would upload the details on its website for potential investors.

“Though the negotiations will be between the farmers and the investors, the government will bring them closer,” he said.

He urged entrepreneurs to invest in the state’s food processing, manufacturing, tourism and IT sectors as Bihar had ample scope for those both in terms of market as well as raw materials.

Kolkata, May 18 

“It is to be decided in the boardroom. We are examining now,” Oil and Natural Gas Corporation (ONGC) chairman and managing director Sudhir Vasudeva told reporters here to queries if his company would bid for a stake in HPL.

“If it is commercially viable, then we will bid,” he added.

Vasudeva was speaking to the media after an event organised by the organised by the Bengal Chamber of Commerce and Industry here.

The state government has recently invited expressions of interest (EoI) through West Bengal Industrial Development Corporation (WBIDC) for 39.99 percent stake in the petrochemical company, the second largest maker of polyethylene in India and co-promoted by The Chatterjee Group (TCG).

The 675 million shares being put on the block also included the 155 million shares on which TCG laid claim.

The meet was held Thursday between Saif Mohamed Al Suwaidi, the UAE’s director general of General Civil Aviation Authority, and Mohamed Ibrahim Sharif, the chairman of Egypt’s Civil Aviation Authority.

The meeting also discussed coordination ahead of the general assembly elections of the International Civil Aviation Organisation (ICAO), to be held in September.

A Metro-North train heading from New Haven to New York City derailed around 6:10 p.m. Friday, hitting the other train in Bridgeport, Connecticut, about 60 miles northeast of New York City on the Long Island Sound, authorities said.

That caused some cars on the second train, which was destined for New Haven, to likewise leave the tracks, CNN reported citing a Metro-North spokesperson.

Connecticut Governor Dannel Malloy told reporters Friday night that five people were “critically injured,” one of whom was in “very critical condition.”

Officials from the National Transportation Safety Board will head the investigation into the crash, with Malloy saying that agency’s team should be on site by Saturday morning.

“We have no reason to believe that it’s anything but an accident,” the governor said.

Power was shut off along the line and service has been halted — westbound past Bridgeport, and eastbound beyond South Norwalk — because of the derailment.

Amtrak train service also announced early Friday night that it had suspended all travel between New York and Boston indefinitely after the crash.

Such travel headaches could persist for weeks, because the two tracks affected by the derailment — which are both “shot right now” — may take weeks to repair, CNN quoted Bridgeport Mayor Bill Finch as saying.

Because of a bridge replacement project, those two tracks are the only way in and out of New York City by train from that part of Connecticut.

Workers will need to not only remove disabled trains, but also remove the tracks, regrade the rail bed, then lay down the tracks again, according to Finch.

A passenger in a middle car of the New York-bound train, Chris Martin, recalled to CNN how his car went dark after the crash, then someone over the intercom “called all the doctors up front.”
.
Brian Alvarez, who saw the wreckage, described the scene as “pretty graphic.”

“I saw this one car and it was completely destroyed, and they were pulling people out of the car,” Alvarez was quoted as saing. “… They were all bloody.”

The blasts occurred in Malakand district of the province from where the bodies and injured were shifted to a hospital. Many of the wounded were said to be in a critical condition, sources said.

Local paramilitary troops said that the first blast took place before the Friday prayer while the second occurred when people were offering prayers in another mosque in the same area, Xinhua reported.

The nature of blasts was yet to be determined.

SOCIO-ECONOMIC FALLOUT

By Dhurjati Mukherjee

New Delhi, May 17 :  The Saradha crisis, which has engulfed not only West Bengal but also the neighbouring States of Bihar, Assam, Odisha and Jharkhand has raised many questions which need to be addressed by the powers-that-be. Analyzing the problem in depth, it clearly emerges that the policies of both the Central and State governments are to blame for the crisis reaching such unprecedented proportions. And, as usual it is the common man who takes the brunt of it all.

The light-hearted nature of the Chit Funds Act and the casual approach of the supervisory mechanism prompted many chit funds to turn into Ponzi schemes. In 1999, the Securities & Exchange Board of India (SEBI) brought out the SEBI (Collective Investment Scheme) Regulations 1999. There were eight instances given in the regulations as to what would not constitute a CIS scheme or an arrangement falling within the meaning of chit business as defined under clause (d) of Section 2 of the Chit Fund Act 1982 (40 of 1982).

Actions that the SEBI would take, as per the Act, include criminal prosecution, passing directions to the person concerned not to collect any money from the investor to launch any scheme, prohibiting the person concerned from disposing of any property of the scheme acquired in violation of the regulations, requiring the person concerned to refund money or the assets to the concerned investors along with requisite interest or otherwise collected under the scheme etc.

But unfortunately SEBI failed miserably in its responsibility and did not function as a strict regulator and carry out its duties of monitoring these companies. The moot question is: How did the schemes of these companies escape the SEBI’s glare? In fact, this has led to people seeking answers whether the “oversight” was due to political lobbying and pressure or whether SEBI itself was part of the entire scam.

At the same time, many social analysts are veering round to the view that the present crisis reflects the rot that has set into the society, with a clamor to earn more by hook or by crook and that greed surpassing all limits amongst the better off.

In this particular case, the Saradha group was able to hoodwink the depositors from the economically weaker sections, low income groups, as also by the middle class, specially in rural areas, as apart from the high rates of interest they were being offered these people had no other option and easy means of keeping their meager earnings. One must keep in mind that most of those duped are not so financially literate as to understand that such high rates of interest cannot be given by a company which wants to do sustainable business.

Additionally, it is important to look at the banking network in West Bengal where financial inclusion is low, as per a study of the Reserve Bank of India (RBI) conducted last year. So far only 9.805 villages with a population of 2.000 each have been covered against a target of 37,945 villages to be achieved by March 2018. The banks obviously are primarily interested in concentrating in the urban centres and therefore there has been no significant increase in the rural network to the extent desired.

In such a situation, without a proper banking network, villagers keep choosing among the so-called chit funds that are presently quite active in almost every village. One estimate has it that around 20 chit funds are found to be operating in every village.

Add to this, the cumbersome procedures related to documentation which nationalized banks seek for opening an account. This obviously is problematic for the villagers, specially the illiterate and the self employed, and many of whom may not be having the requisite documents sought. Additionally, the rate of interest offered by nationalized banks too is a factor. It has been seen that the inflation rate now appears to be higher than the normal rate of interest offered by the banks. One can question, and quite justifiably, whether this is judicious? This action may be attributed as the backdrop to the present crisis.

A different aspect of the present chaotic situation which craves attention is the question of what happens to the lakhs of agents, mostly belonging to the younger generation, employed if these chit funds and/or micro finance institutions are not allowed to operate. How will they earn a living and where are the jobs?

Underemployment and unemployment is a major problem of the rural areas which has resulted in large-scale migration from these places to the urban centers. Thus added to the financial crisis, it is quite obvious that a socio-economic crisis of a huge dimension may impact the rural scenario as in the current situation alternate means of earning a livelihood appear remote for these agents.

Meanwhile, the Financial Sector Legislative Reforms Commission (FSLRC), headed by Justice B. N. Srikrishna, submitted its two-part report to the Finance Ministry in March, including a draft bill which details the regulatory landscape to deal with the challenges of the fast growing financial sector. It suggested setting up a ‘resolution corporation’ which would watch all financial firms and intervene when the net worth of the firm is near zero but not yet negative. It also called for establishing a Financial Redressal Agency (FRA), which would have a nationwide machinery to become a one-shop where consumers can carry complaints against all financial firms.

Even the SEBI chairman recently stated that the market regulator is “working extremely hard to ensure that the savings of small investors are not put to risk”. But that doesn’t alone help resolve the problem. The larger aspect of avenues of rural savings in areas far off from banks, the question of agent’s employment etc. need to be considered.

Viewed in totality, the Saradha scam has indeed again reiterated the fact that development has been lop-sided and urban centric and a balanced approach is essential. The rural sector has to be given priority in the planning process so that the economy of these areas becomes strong and sustainable. This may at least safeguard the poor from getting duped by the chit fund sharks and spare them of another Saradha-like crisis. —-INFA

(Copyright, India News and Feature Alliance)

New Delhi, May 17 

Unveiled by Tennis star Boris Becker, the GL class car named ‘Launch Edition’ has at present only 100 units to buyers in the form of CBUs (Completely Built Units) and boasts of features like AMG body kit, heated leather seats and temperature-controlled cup holders.

However, from September, the assembly of Semi-Knocked Down (SKD) kits will begin at Mercedes’ Chakan plant in Pune, Maharashtra, which will result in a drop in price as well as some accessories. India will be the second market after US to locally produce the car.

Currently, cars with a landed cost of over $40,000 (around Rs.22 lakh) and engine capacity of more than 3 litre for petrol and 2.5 litre for diesel have to pay 100 percent customs duty, and those below that pay 60 percent while only 30 percent duty is levied on SKD cars.

“The GL Class with its proven off-roading prowess and luxurious appointments exudes absolute supremacy statement and is ideal to suit the taste of growing number of off-roading aficionados in India,” said Eberhard Kern, managing director and chief executive of Mercedes-Benz India.

The second generation of the GL 350 CDI which was first launched in India in 2010 is powered by a 3 litre V6 diesel unit which puts out 258 bhp-34 hp more than the outgoing model.

When it comes to safety, the SUV is packed to the gills with intelligent light-assist system, night view assist plus, a 360 degree camera, active park assist, collision prevention assist, attention assist as well as nine airbags.

The net profit stood at Rs.3,044 crore from Rs.3,004 crore in the fiscal year 2012-13.

The company reported a three percent growth in turnover for the period under review at Rs.20,793 crore from Rs.20,137 crore in the first quarter of last fiscal.

The company’s total sales in 2012-13 declined by three percent at 4,237,162 units from 4,349,560 the 2011-12.

“Company’s strategy to build strong brands and offer differentiated products in the front-end, and focus on cost and productivity improvements at the back-end, has yielded the desired results. On a full year basis, operating EBITDA stood at Rs.3,990 crore as a percent to net sales and operating income,” the company said in a statement.

Domestic motorcycle sales were down by four percent at 2,463,874 units from 2,566,757 units. However, exports were up two percent at 1,293,231 units from 1,267,648 units.

Overall motorcycle sales in 2012-13 were marginally lower by two percent at 3,757,105 units from 3,834,405 units sold in 2011-12.

In terms of commercial vehicle segment sales, the company reported a decrease of seven percent at 480,057 units. Exports plunged by 19 percent at 253,926 units.

“It was a courtesy call, as Siddaramaiah is in the capital on his maiden visit after assuming office May 13. He discussed governance issues and sought the prime minister’s advice in administering the state,” an official in the chief minister’s office told IANS in Bangalore.

Siddaramaiah, who is in New Delhi since Wednesday to meet the Congress high command and finalise names of his ministers, urged union Food and Distribution Minister K.V Thomas to release an additional 1.83 lakh tonnes of rice per month for distributing 30kg rice per month at Re.1 per kg to 87 lakh people coming in the below poverty line (BPL) category.

“The official in Bangalore said that the state government would require a total of 3.31 lakh tonnes of rice per month for distribution through the public distribution scheme (PDS), over the 1.48 lakh tonnes the Food Corporation of India (FCI) allots to the state every month.

Giving a break-up of the subsidised scheme for distribution to Thomas, the chief minister said as Karnataka was a decentralised procurement state, it would not be possible for the state to procure the additional quantity of rice on its own due to non-availability of the foodgrain in the state.

“Without the support of the Government of India, it would not be possible for the state government to implement the popular scheme,” Siddaramaiah told Thomas.

The susbidised rice scheme was one of the promises the ruling party made in its election manifesto ahead of the state legislative assembly poll May 5.

Currently, the state food and civil supplies department distributes 32,913 tonnes of rice under the Antodaya Anna Yojana at Rs.3 per kg, 57,616 tonnes under the BPL category at Rs.5.65 per kg, and 57,663 tonnes under the APL (above poverty line) category at Rs.8.30 per kg.

Siddaramaiah also called on Defence Minister A.K. Antony, Labour Minister Mallikarjun Kharge, and Small Enterprises and Lok Sabha speaker Meira Kumar.

He will return to Bangalore Friday after meeting party president Sonia Gandhi again and securing her approval to constitute the cabinet by Saturday.

Moscow, May 17

The helicopters were options in a $367.5 million deal Rosoboronexport signed with the Pentagon in May 2011 for delivery of 21 Mi-17V5s.

According to US officials, the deal could be worth up to $900 million including spares and servicing.

“The option agreement has been signed and the delivery will be completed by the end of this year,” said Grigory Kozlov, director of Rosobornexport’s helicopter exports department.

Koslov said the Pentagon has already started paying for the option deal as well as delivering US equipment to be installed on Russian helicopters specifically for Afghan missions.

Russia and the US may soon start new negotiations on the purchase of additional Mi-17 helicopters for Afghanistan despite opposition from some US lawmakers, Kozlov said.

“I think this issue (the additional purchase) will be decided by the end of May and we will enter a new round of talks on the delivery of helicopters on top of the current 21 plus 12 units,” Kozlov said.

The deal to provide Russian helicopters for Afghanistan’s armed forces, paid for by the US, has attracted considerable criticism from some politicians there.

The US Department of Defense said in April it plans to sidestep a Congressional ban to purchase helicopters from Rosoboronexport, despite objections from US lawmakers who allege that the firm has equipped the Syrian government with equipment, including helicopters, to attack civilians.

The Afghanistan armed forces want Russian-made helicopters in preference to others, because they have a history of using them since the Soviet invasion, and because of their low prices, durability and simplicity.

Moscow, May 17 

Most of that funding – 335 billion rubles – will be provided from the federal budget, he added.

The cash should help Russia create a competitive base for pursuit of applied research projects and development of priority scientific fields, he said.

The programme should also stimulate an inflow of young specialists into various research areas, Medvedev said.

Medvedev has championed a move toward reorientation of the Russian economy toward high-tech products ever since he was president (2008-2012).

He has been a major proponent of the Skolkovo project, a high-tech hub including research institutes and a supporting foundation in the Moscow region.

Russia has also set up a scientific project support fund known as the Future Research Fund, touted as an analog to the US’ Defense Advanced Research Projects Agency (DARPA), to assist promising scientific projects with military potential.

Srinivasan, 46, who in August last year was named principal deputy solicitor general of the US, succeeding another Indian American, Neal Kumar Katyal, Thursday won unanimous approval from the Senate Judiciary Committee.

If confirmed by the full Senate, which appears all but certain with all the Republicans on the Democrat controlled panel joining in the 18-0 vote, Srinivasan would also become the first new judge on the powerful appeals court, often called the nation’s second-highest court, since 2006.

Some court-watchers are already touting him as the next likely Supreme Court nominee as the appeals court has served as a stepping-stone for four justices on
the top court: Chief Justice John Roberts and Justices Antonin Scalia, Ruth Bader Ginsburg and Clarence Thomas.

The White House, which has fought hard for his confirmation, soliciting letters of support from former solicitors general and Supreme Court law clerks from both parties, applauded the vote for Srinivasan.

“Srinivasan’s confirmation will be an important first step to filling this court’s four vacancies, and the full Senate should act without unnecessary delay,” White House press secretary Jay Carney said.

The committee’s Democratic chairman, Senator Patrick Leahy, said that while he was gratified Srinivasan’s nomination is moving forward, he was concerned about future Republican efforts to slow nominees to the appeals court.

But the panel’s top Republican Charles Grassley said Srinivasan had “the correct judicial temperament.” And he believed any fear that Srinivasan would be filibustered was “unfounded.”

The lone Indian-American member of the House of Representatives expressing pleasure at Srinivasan unanimous approval by the Senate panel said: “Sri is widely regarded as one of the best legal minds in the country, and his breadth of experience makes him extremely well-qualified for the appointment to one of our country’s most important courts.”

“His appointment would also be historic for the Indian American and Asian American community. Representation of Indian Americans within our judicial system is overdue,” he said.

The 11-seat appeals court has been operating with just seven judges throughout President Barack Obama’s tenure. If Srinivasan is confirmed, there would be four Republican and four Democratic nominees serving there.

Srinivasan was born in Chandigarh and grew up in Lawrence, Kansas. He received his BA with honours and distinction in 1989 from Stanford University and his JD with distinction in 1995 from Stanford Law School, where he was elected to Order of the Coif and served as an editor of the Stanford Law Review.

He also holds an MBA from the Stanford Graduate School of Business, which he received along with his JD in 1995.
He received the Attorney General’s Award for Excellence in Furthering US National Security in 2003 and the Office of the Secretary of Defence Award for Excellence in 2005.

The Chief Minister of Maharashtra, Prithviraj Chavan along with senior State officials meeting the Deputy Chairman, Planning Commission, Montek Singh Ahluwalia for finalizing plan size for 2013-14 for the State, in New Delhi on May 16, 2013. The Minister of State for Parliamentary Affairs & Planning, Rajiv Shukla is also seen.

According to a steel ministry release, the decision will help in meeting the shortfall in the domestic availability of coking coal.

As per existing policy, vessels for shippping imported coal by government companies have to be chartered through TRANSCHART, and an exemption has been given to both the steel public sector units.

SAIL and RINL import around 14-15 million tonnes of coking coal annually.

“SAIL and RINL will have better control of logistics, shipping and operations of importing coal and other raw material from overseas,” the statement announcing the cabinet exemption said.

The Minister of State (IC) for Women and Child Development, Krishna Tirath with the Minister of the Special Secretariat for Policies on Women, Brazil, Tatau Godinho and the Minister for Women, Children and Persons with Disabilities, South Africa, Lulu Xingwana signing the IBSA Women’s Forum 2013 Resolution, in New Delhi.

The resolution was jointly signed by Women and Child Development Minister Krishna Tirath, her South African counterpart Lulama Xingwana and Maria do Carmo Godinho Delgado, secretary of evaluation of policies and economic autonomy of women of Brazil.

The resolution stated the three countries were committed to recognising the key role of government with the support of civil society to accelerate all efforts towards achieving gender equality and empowerment of women.

It also acknowledges the forum’s shared commitment to various global conventions on rights of women and girls.

The resolution recommends the following: To end violence against women and girls, to work towards economic empowerment of women, especially rural and marginalised women, to promote gender responsive budgeting and equitable development.

Speaking at the signing, Tirath said: “Through this resolution the three countries commit to working for women’s empowerment and for fighting gender-based discrimination and violence against women in all forms.”

Mumbai, May 16

This would include even delivery of non-subsidised cylinders, and no transactions will be allowed in such cases after the connections are blocked by the OMC – Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, the official said.

The official said that customer data has been shared among the three OMCs and all multiple connection holders have already been identified and intimated accordingly.

The list of such customers has also been put up at the respective cooking gas distributorships and published on the companies’ websites.

These customers are required to submit their KYC details along with identity proof and residence proof to their distributors to continue receiving their quota of subsidized cylinders.

The OMCs have appealed to the multiple connection holders to submit their KYC details immediately pertaining to the connection they wish to retain to their distributor.

It has also asked such customers to immediately surrender their other connections immediately to avoid blocking of further supplies.

Moreover, the official added that these customers shall not be given LPG refills till they comply with the KYC norms.

Though the deadline of KYC submission ended Dec 31, 2012, the OMCs are continuing to accept KYC and connections are being regularized for supply of subsidized cylinders till date.

During the five-day visit, Chidambaram will hold talks with industrialists, ministers and government officials in the three countries.

The finance minister will lead Indian side at the sixth ministerial India-UK economic and financial dialogue Thursday in London, according to an official statement released here.

British Chancellor of Exchequer George Osborne will lead the UK side in the meeting at which the two countries are scheduled to discuss macro-economic issues, trade and investment related matters, infrastructure financing, insurance and pension sector reforms.

Chidambaram is accompanied by a delegation that include Shaktikanta Das, additional secretary in the department of economic affairs, Anand Sinha, deputy RBI governor; and Arvind Kumar, joint secretary in the department of financial services.

The finance minister is scheduled to hold discussions with secretary-general of OECD Angel Gurria and meet leading French investors in Paris Friday.

Chidambaram will be in Qatar for two days from May 18-19 where he will try to woo the Gulf investors.

He will meet Qatari finance minister Yousef Hussan Kamal and chief executive officer of Qatar Investment Authority and Qatari firms in Doha.

Launching the scheme here Petroleum Minister M. Veerappa Moily said 7.6 million consumers in 20 districts like Mysore, North Goa, Pondicherry, Mandi and Hyderabad, will get Rs.435 in their back accounts each time they book an LPG refill.

The consumers then will have to buy cooking gas at the market price which is twice the subsidised price in Delhi of Rs. 410.50 for a 14.2 kg cylinder.

“We are ready to launch the direct benefit transfer (DBT) scheme for LPG all over the country but we want to see the results of the roll-out in these 20 districts,” he said.

The 20 districts selected have high penetration of the Aadhaar unique identification (UID) number project.

While 89 percent LPG consumers have UID numbers, the government will give a three-month grace period to those still without Aadhar numbers in these districts to get the UID number and seed it with their bank accounts, where the cash subsidy has to be transferred.

From September 1, only consumers having Aadhaar linked bank accounts will get cash subsidy, while the rest will have to buy LPG at market price, Moily said.

The government anticipates a saving of Rs. 8,000 to Rs.10,000 crore per year in LPG after the scheme is rolled out all over the country.

The government had in January launched the DBT scheme whereby government benefits like pensions and scholarships are directly transferred to beneficiaries.

Currently, consumers are entitled to nine 14.2 kg cylinders of LPG at subsidised rates in a year.

The 20 districts where the DBT for cooking gas is being launched include Anantpur, Chittoor, East Godavari and Hyderabad in Andhra Pradesh, Bilaspur, Hamirpur, Mandi and Una in Himachal Pradesh, Mysore and Tumkur in Karnataka, Pathanamthitta and Wayand in Kerala, Wardha in Maharasthra, Pondicherry, and SBS Nagar/Nawanshahar in Punjab.

Norwegian ambassador Eivind S. Homme said Oslo, a member of the eight-nation Arctic Council, is “happy India has shown interest in that part of the world”. India has a research station at Svalbard, Norway.

The Council Wednesday agreed to include India, China, Japan, Italy, South Korea and Singapore as observers.

According to official estimates, the Arctic holds 13 percent of the world’s undiscovered oil reserves and 30 percent of undiscovered gas deposits.

Homme said it was for the Council to discuss ways to find the right balance between saving the ecology and using the available resources.

Referring to the Indian station at Svalbard, Homme told IANS: “That is a laboratory to see what is happening on climate change. We all need to increase our research and see what is happening.”

The station is operated by the National Centre for Antarctic and Ocean Research. It was set up in 2008.

“In general and with regard to climate change, India is a key partner (with Norway),” said Homme on the sidelines of an event to celebrate Norway’s Constitution Day Wednesday.

The melting Arctic ice has opened up the region’s waterways to commercial shipping traffic.

It has also made accessible the region’s abundant quantities of oil, gas and minerals.

Asked about global concerns on the rapidly melting ice at the Arctic, which scientists predict will be ice-free by 2050, Homme said the melting was happening much faster than anticipated.

Norway, he said, was naturally worried. In areas of climate change, India is a key player, he added.

The Council members are Canada, Denmark, Finland, Iceland, Norway, Russia, Sweden and the US.

Panaji, May 16 

This included 22.5 lakh Indian tourists and 4.5 lakh foreigners. The coastal state, famous for its beaches, also witnessed an increase in arrival of chartered flights.

According to Goa tourism department statistics, 987 chartered flights carrying 2.15 lakh tourists landed in Goa as against 910 flights with 1.69 lakh tourists in 2011-12 from nine international destinations.

Of these, 742 flights came from Russia and 152 from Britain.

Similarly, the number of cruise ship arrivals in Goa has also seen an increase, with 25 vessels carrying 22,233 passengers in 2012-13 berthing at the Mormugao Port Trust, 40 km from here.

In 2010-11, this stood at 20 vessels and 11,946 passengers.

“In 2012-13, Goa did extremely well, better than previous years. We are delighted to see the upswing in the arrivals of domestic and foreign tourists, which touched an all-time high,” said Tourism Minister Dilip Parulekar.

He added that the state had emerged as a preferred destination for conferences and the like as well as weddings.

“Positive steps have been taken by the Goa government such as introduction of water sports policy, security force on Goan beaches, improvement of tourism infrastructure, marketing and promotional,” he said.

The agreement followed extensive negotiations between Australia’s Defence Materiel Organisation and the Swedish Defence Materiel Administration, Smith said in a statement issued jointly with Sweden’s Minister for Defence Karin Enstrom, reported Xinhua.

“This agreement gives effect to Australia’s rights to use and disclose Swedish Intellectual Property rights for complex submarine design and technology,” Smith said.

“Defence materiel cooperation has been a key feature of the Sweden-Australia relationship, most notably in the area of submarine technology where our collaboration over the construction and support of the Collins submarines has spanned two decades, and more recently, with the vital ‘sense and warn’ capability provided to protect our troops in Afghanistan,” he added.

In 1987, Australia ordered six submarines of the Collins Class designed by Swedish firm Kockums AB. The submarines were built in Adelaide and will be in service for another 20 years.

Australia is now planning for their replacement with 12 new boats with the recent 2013 Defence White Paper settling on two options – an evolution of Collins or a completely new design.

Smith said the government announced last year it would engage Kockums to undertake initial design studies for the evolved Collins. But before that could occur, Australia needed to reach an agreement with Sweden on use of Collins and other Swedish technology for the Future Submarine Program.

New Delhi, May 16 

Bharti Airtel clinched the top position with 188.80 million subscribers after adding 601,252 new customers in April, followed by Vodafone India with 153.78 million subscribers up by 1.42 million. Idea Cellular gained 1.28 million new customers in April.

The MTNL lost 100,127 GSM customers ending April with 4.72 million subscribers. Loop Mobile’s customer base remained flat at 3.03 million. The BSNL’s customer base was stable at 97.17 million.

INDIA TOO IN GLOBAL MESS

By Shivaji Sarkar

New Delhi, May 16 :  India’s growth parameter has got stuck. The journey has got jammed in one of the lowest factory output (Index of Industrial Production) in 20 years at 0.6 per cent. It appears to be as bad if not worse than the crisis of 1991-92. In percentage terms it may look as bad as that but in absolute numbers it seems to be more sinister.

Growing unemployment is an indicator that happiness eludes the nation. It is supposed to be a worldwide phenomenon but the latest International Labour Organisation (ILO) report, Global Unemployment Trend 2013, gives a broad hint to countries such as India to decouple from global policy framework. The situation is likely to worsen till 2017 as both the US and EU are likely to further plunge into a crisis, indicates the report.

In India, the total employment grew by just 27 lakh (2.7 million) from 2004–05 to 2009-10, co-terminus with the rule of UPA-I, compared to over 6 crore (60 million) during the previous five-year period (1999–2000 to 2004–05), coincidentally the period of NDA rule.

Moreover, young people are hit hard by this crisis. Indians with a certain amount of education suffer particularly. The unemployment rates in the country increased rapidly for high-skilled workers, in particular women. Indians having skilled degrees suffer particularly, with unemployment rates reaching 34.5 per cent for women and 18.9 per cent for men during 2009-2010.

However, occupational choices bear a strong impact on the risk of joblessness as workers with technical education face lower unemployment rates than other graduates. At the same time, Indian employers have trouble hiring staff: according to the 2011 Manpower Talent Shortage Survey, 67% of employers stated that they had difficulties in filling positions.

“India has 66 per cent of its total population below the age of 35 which makes for the world’s largest youth population. However, unemployment rate in the country is quite high, especially in urban areas”, states Tine Staermose, Director, India office and Decent Work Team of ILO for South Asia.

Globally, 196 million people remain jobless. It projects global unemployment to continue rising until it hits 210.6 million by 2017. “It is unlikely that the world economy will grow at a sufficient pace over the next couple of years to both close the existing jobs deficit and provide employment for the over 80 million people expected to enter the labour market.”

The share of formal employment in India on the other hand declined from around 9 per cent in 1999–2000 to 7 per cent in 2009–10, in spite of record growth rates. Moreover, it remains unclear whether the manufacturing sector will be able to absorb large numbers of job-seekers since the share of workers in manufacturing was just 11 per cent in 2009–10, no higher than a decade earlier.

There is a difference indeed. While percentage quotient reveals a bit, when it is turned into absolute numbers as population has increased during this period, it suggests the problem is deeper than the statistics speak.

Globally, the ILO report says, the real unemployment whether in India or the US would be higher than the official statistics. It notes that the US officially estimates unemployment at 8.3 per cent whereas the unofficial figures are around 14 per cent. In the case of India too, the actual situation might be worse than officially depicted.

Another ILO concern is the poor quality of jobs. India had adopted Decent Work Country Programme in 2010, but it sadly seems to remain on paper. “A large number of workers in India remain in unprotected jobs. These are jobs in the informal sector, with low wages, without security safety or health standards. Almost 83.6 per cent of the work force is engaged in informal employment.”

A large share – 58 per cent – of workers remains in the agriculture sector. Some of them have small land holdings. They are in abject poverty but at times their overall conditions are better than the jobless in the urban centres. The farm worker has also little to gain in terms of official social security. The only insurance he has is in the close knit rural community.

However, this does not suggest a static labour market; rather there are many transitions taking place, most importantly a withdrawal from the labour force among young people and women, lowering net employment growth. This is partly associated with higher enrolment of women in educational institutions. The other reason is said to be the unwillingness of the workers to join a job offering poor wages and other working conditions.

Another new trend being seen is in the rise in part-time employment, often termed self-employment, by skilled and semi-skilled workers. In India, there has been a remarkable rise in the class of “consultants”, which covers most of the part-time workers. Contrary to the belief, the workers do not choose for such jobs voluntarily. But in most cases, as they reach their 40s they are thrown out by their employers. The same employers often re-employ them as “consultants” or “advisors” at much lower emoluments.

This trend has increased with the powers bestowed on the employers to hire and fire. Simultaneously, the workers’ benefits even in regular employment have come down drastically in India.

This problem is particularly severe in the developed economies and the EU region, where the labour force participation rate declined by close to 1 percentage point. It is expected to recede further as long-term unemployment and a weak economic outlook discourages people from staying in the labour market. As a consequence, the employment-to-population ratio has fallen sharply – in some cases 4 percentage points or more – and has not yet recovered even in cases where the unemployment rate has started to decline.

India, however, is catching up with the profit trends of the global business houses. Their profits are phenomenally increasing, the report indicates, while workers jobs and benefits are being lost.

Importantly, the ILO report condemns the austerity policies adopted in most of the industrialized countries, particularly in Europe and the US, stating that slashing spending on social programmes had produced “devastating consequences” for employment while budget deficits had actually increased because austerity measures exacerbated the economic slump.

Despite accepting India as a major South Asian economy, the ILO report warns the trends in the near future are not favourable for the working class. Dampening growth prospects, falling investments, higher taxes and tightening of purse by the Government for welfare schemes foretell a deepening crisis. The only hope there can be is if the Government changes policy tack to include the workers in the growth and development process. Will it heed the advice?–INFA

ONGC CMD SudhirVasudeva and Director (HR) K S Jamestin after unveiling the Plaque for ONGC ‘Green Hills’ at Dehradun

It has a number of state-of-the-art  ‘Green’ features like Conservation of water upto 30% through use of onsite sewage plant, rainwater harvesting, energy saving upto 43% energyby use of energy efficient motors and under floor air conditioning. Besides this, solar power generation will meet 7.5% of total electrical load.

It was a dream of the erstwhile CMD of ONGC Late Subir Raha that ONGC should  take the initiative to create Green Buildings as its prime location offices. Turning his dream into reality, five ONGC Green Buildings are coming up at Delhi, Mumbai, Kolkata and Hyderabad, apart from the one commissioned at Dehradun.

The Minister of State (Independent Charge) for Power, Jyotiraditya Madhavrao Scindia meeting the Germany’s Minister of State for Economic Co-operation & Development, Gudrun Kopp, in Berlin on May 13, 2013.

The President, Pranab Mukherjee inaugurating the Grass-roots Innovation Exhibition, at the 13th Annual Convocation of Assam University, at Silchar, Assam on May 14, 2013.

The Indian Diaspora participants of 24th Know India Programme (KIP) called on the Union Minister for Overseas Indian Affairs, Vayalar Ravi, in New Delhi on May 14, 2013.

‘SOFT’ DELHI NEEDS TO ACT TOUGH

By Col (Dr) PK Vasudeva (Retd)

New Delhi, May 15 :  Notwithstanding, the Chinese troops withdrawal which ended the standoff in Ladakh, the Sino-Indian boundary dispute cannot be put behind. It is expected to loom larger in the upcoming bilateral engagement during Chinese Premier Li Keqiang’s visit than it would have ordinarily done. The face-off, which had kept the two countries on tenterhooks for three weeks, ended on May 5, following Indian and Chinese deciding to pull back from their respective campsites in Depsang plains in eastern Ladakh.

The sudden withdrawal was completed by 7:30 pm, following tough high-level negotiations between the two sides and the fourth Brigadier level flag meeting at Chusul a day earlier.  The pullback came following another round of discussions between local military commanders. However, the stubborn refusal by the officials to even confirm what on the face appears to be a victory for Indian diplomacy gives rise to suspicions on the terms of agreement.

The concessions may involve Indian troops pulling back from their forward positions in some sectors close to the Line of Actual Control (LAC). The withdrawal leaves unanswered key questions: What Chinese demands did India accept? Has the People’s Liberation Army platoon retreated to its side of the LAC? Why has India withdrawn troops from its own areas?

As Chinese troops returned to their pre-April 15 position, Indian troops from Army’s Ladakh Scouts and the Indo-Tibetan Border Police (ITBP), too, returned to their base camps. The closest ITBP camp at Burtse is 15 km from the face-off site at Raki Nalla, which is a dry riverbed running parallel to the LAC.

The campsite is 40 km south east of Daulat Beg Oldie (DBO), a World War II airstrip reactivated by the Indian Air Force in 2008 as part of India’s strategy to bolster border defence. Beijing has reportedly objected to new constructions at the DBO, which lies just 10 km from the LAC and 80 km south of the Siachen glacier.

With the exception of Siachen, DBO is India’s northernmost military post, from which India can keep an eye on the strategically vital 15,937 ft high Karakoram pass. Close on the other side of the LAC are at least four known Chinese border defence regiment posts, two of which are at Chip-Chap (25 km from the LAC) and Sundo (40 km from the LAC).

Unfortunately, India’s acceptance to remove some of the structures is only a “face saver” to enable Chinese troop to withdraw to their pre-April 15 positions. This shows that Depsang Bulge, a tabletop plateau of 750 sq km area in northern Ladakh: an area roughly half the size of Delhi becomes a disputed area and is considered to be a ‘no mans’ land’. The face-off site is just about 35km south of the strategic Karakoram Pass, which is at the tri-junction of China-Pakistan-India borders, and overlooks the Siachen Glacier-Saltoro Ridge to the west and the Indian observation post in the Chumar sector to the east.

Anxiously, Indian foreign policy towards China has been tested now, with PLA intrusion into Indian Territory and when India was in ‘catch 22 situation’. Though the diplomacy partially succeeded, New Delhi, however, should have acted tough with Beijing. Clearly, it was not a localised action as was made out in the initial stages. How can India dismantle infrastructure on its side of LAC and stop development of the border areas when China has already made highways and airstrips in Aksai Chin area claimed by India.

Sources in the security establishment familiar with the negotiations and the local topography noted that the 21-day confrontation on Ladakh’s desolate Depsang plains ended only after the Indian Army agreed to demolish bunkers it had built in the region of Chumar near the LAC, to keep an eye on the Karokram Highway. The Chinese, close to what India considers its current border and part of the proactive measures, had objected to these.

But, in future, New Delhi needs to realise that only a hardline policy pays dividends, when dealing with China, especially with incidents of territorial violations of such a serious nature. This is borne out by the fact that the 1986-87 Sumdorung Chu episodes, when the Indian and Chinese troops were in a similar face-off against each other, was resolved through an Indian show of force at the tactical level. If the Ministry of External Affairs was solely allowed to manage the crisis, the chaos perhaps would have been unimaginable. Fortunately, the Indian Army had good field level commanders who acted as they deemed fit which saved the day in the Sumdorung Chu episode.

Evidently no other Government agency, apart from the Army and the ITBP, really knows the layout of the land; but their local commanders are not allowed autonomy to act instantaneously and instead have to await instructions from the MEA mandarins. The problem is that the Ministry bosses are not familiar with the terrain, which proves a major handicap in their decision-making during crises of a territorial nature.

If New Delhi needs to adopt a hardline policy, how does it translate on the ground? Well, it should act tough with Beijing by suspension of trade ties, however small it may be, which is bound to impact China. Why does New Delhi have to bend backwards and be worried or overly sensitive about Beijing’s sentiments? It is high time that it speaks tough and not projects a meek face and ‘we-are-desperate-to-be-friendly with you’ attitude.

The only way out of such an impasse is to jolt relations with China and convey clearly to Zhongnanhai — the seat of Chinese government, that South Block means business and India is strong in political, military and economic terms. Any other policy approach would amount to appeasement and convey the wrong signal to Beijing.

For some strange reasons, LAC on DBO side is patrolled by the ITBP – a force of 5,000 and beefed up but without matching teeth by which the Chinese hold this sector. Further, it has been handed over to the Home Ministry, whereas the ITBP and BSF, along the borders should be under the command of the Army for operational purposes.

The Government is so short-sighted that after being slaves for centuries, it has no shame in losing border territories, making police, customs and bureaucrats superior to the military every one way or the other, degrading it at every corner.

The Defence Secretary is responsible for the defence of India as per the Rules of Business of Government of India. Strangely, there is a National Security Adviser (NSA) who is responsible for total security of India and the three Service Chiefs report to him. Both of them should have been shown the door by now.

Is this hold of the bureaucracy because of the fear of the Army take over? The Government in the name of democracy and rule of the law has sadly been humiliating and degrading the Armed Forces since Independence. It is high time that it make all efforts to modernise the Armed Forces to safeguard national integrity and sovereignty and involve them in decision-making, rather leaving it to Defence Secretary and NSA, who have no clue of defence strategies. —INFA

(Copyright, India News and  Feature Alliance)

New Delhi, May 15 

She referred to those projects which have already been approved by the Rural Development Board which is vested with the responsibility of creating infrastructural facilities.

“In a meeting of the Rural Development Board, the chief minster asked MLAs to execute the development works to ensure proper development in rural villages,” said an official of the Delhi government.

While MLAs, who are also the members of the board, demanded execution of development works they also stressed upon the need of streamlining the developmental works by irrigation and flood control department, Delhi’s three municipal corporations and Delhi Jal Board.

She also stated that the government would consider utilisation of panchayat department fund on development in rural areas.

The 46-member board had approved development works in rural villages in May 2012. The rural population as per 2011 census was 4.19 lakh.

Out of the total area of 1,483 sq.km. of Delhi, 369.35 sq. km are rural and 1,113.65 sq.km are urban.

The meeting was attended by Development Minister Raj Kumar Chauhan, Health Minister A.K. Walia, Transport Minister Ramakant Goswami, and chairman (Rural Development Board) Mangat Ram Singhal besides 15 legislators.

“The committee will also discuss issues related to the pre-paid auto-rickshaw system, monitoring and analysis of GPRS data and colour marking of auto-rickshaws for deciding their direction of movement, especially at night,” Delhi Transport Minister Ramakant Goswami said.

Kolkata, May 15

The kolkata-headquartered bank will use the capital for overseas expansion.

“It (QIP) is a long-term process. It requires at least three to five months,” said United Bank of India chairperson and managing director Archana Bhargava.

“The bank requires capital for its overseas expansion. Rs.1,000 crore money to be raised through QIP will be used for it,” Bhargava said.

The state-run lender was also planning a rights issue after the QIP, she added.

The services would be the first in eight months as only Kingfisher Airlines operated services between New Delhi and three airports in Himachal Pradesh – Jubbarhatti near Shimla, Gaggal near Dharamsala and Bhuntar near Kullu.

There have been no flights in all three airports after Kingfisher Airlines was grounded last October, affecting tourist and business travellers to the state.

According to Kangra airport in-charge Kuldeep Sharma, Alliance Air will operate the service with a 48-seater turbo-prop ATR aircraft.

The airline also conducted a test-flight at Kangra Tuesday.

Likewise, Air India is starting its regular flight between Delhi and Kullu, near picturesque resort of Manali from Wednesday.

State Urban Development Minister Sudhir Sharma said SpiceJet is also keen to start its regular flights from Delhi to Dharamsala, the abode of Tibetan spiritual leader the Dalai Lama.

“SpiceJet is awaiting approval from the DGCA (Directorate General of Civil Aviations),” Sharma, who is legislator from Dharamsala, told.

However, Shimla airport will not have any air service.

Google will also train the trainers/mentors of AP Society for Knowledge Networks (APSFKNW) and provide required software, services and training material free of cost, said a statement from the office of Minister for Information Technology Ponnala Lakshmaiah.

The MoU was signed between the IT minister and Nelson Mattos, vice president (Europe & Emerging Markets), Google here.

The government-owned APSFKNW runs Jawahar Knowledge Centres in selected engineering colleges.

Google Inc, a Fortune 100 company with net worth of $200 billion, has set its research and development center in Hyderabad, the first of its kind in Asia-Pacific. It has occupied over eight lakh square feet builtup space and employs close to 3,000 software professionals located in three IT parks.

“The state government has given 20 acres of land to Google India for setting up their campus. Google has committed to employ 6,000 software professionals in their new campus over a period of five years,” said the statement.

The minister urged Google to expedite the construction of their campus on the land allotted by the government and assured of full support for the same.

Mattos said 70 percent of their business in India comes from Hyderabad. He appreciated the talent pool availability in Andhra Pradesh.

Moscow, May 15 

Tuesday’s launch was the 386th of a Proton rocket and the third Proton launch this year.

The launch took place at 20.02 Moscow time (4.02 p.m. GMT), the Roscosmos spokesman said.

Separation of the French W3D satellite from the Russian rocket was scheduled for 5.15 a.m. (1.15 a.m. GMT) Wednesday, he added.

The W3D satellite was built by Thales Alenia Space for Paris-based Eutelsat on the Spacebus 4000 C3 platform.

The 5,400 kg satellite has a service life of 15 years.

It will provide extensive Ku-band coverage across Europe, North Africa, the Middle East and Central Asia for video links and data networks as well as Direct-to-Home (DTH) reception and Internet services.

Issues relating to sustainable development were in spotlight at the just concluded US-India Energy Partnership Summit with the theme of ‘Stimulating Technology, Trade and Development,’ organised by The Energy and Resources Institute (TERI) in association with Yale University.

In a message to the summit Prime Minister Manmohan Singh noted that through the India-US Energy Dialogue, “bilateral co-operation has made remarkable progress in seeking solutions to the energy challenges of our times.”

He expressed confidence that the summit would bring energy experts of the two countries “into deeper engagement in an area of great importance for the prosperity of our two nations and for a sustainable future of our world”.

India’s Minister for Renewable Energy Farooq Abdullah said India and the US share a common interest in lessening the dependence on fossil fuel.

US cooperation is important in the area of technology development and transfer, but some other areas that need more attention are manufacturing and investment, he said.

Giving the keynote address, acting US Secretary of Energy Daniel Poneman said the creativity seen in technology development in dealing with issues of climate change should now be carried over to the area of finance in order to
ensure that capital is available for renewable sources of energy.

The joint research and development programme at TERI University focused on solar and biofuels., which is funded by the US to the tune of $125 million, will have the participation of 95 government and private entities through the next five years, he said.

Indian ambassador to the US Nirupama Rao said energy security is a question of life and survival for the Indian masses and in ensuring sustainable development, cooperation between India and the US is crucial.

R. K. Pachauri, Director General, TERI and President, TERI-North America, suggested institution of policies that are comprehensive and integrated across various sectors of the economy.

Richard C Levin, President of Yale University, in a video address stressed private and public sector cooperation in dealing with the problem of growing concentration of carbon dioxide.

“Comparative analysis has shown that China is not doing anything to help the Nigerian government in its attempt to control the import of counterfeit medicines, even though much of these medicines have been traced to China,” NAFDAC spokesman Abubakar Jimoh told on the phone from Nigerian capital Abuja.

On the other hand, the Indian government “has joined hands with the Nigerian authorities to fight the influx and has thus reduced the flow of such medicines from India,” Jimoh added.

Nigeria has been faced with the influx of counterfeit medicines over the years and has tried several methods to overcome the scourge. Last year the government proposed a bill providing stiffer punishment for organisations and individuals who may be arrested for dealing in the manufacture and sale of counterfeit medicine.

The government at the time wanted to use the bill to protect local manufacturers against inferior imports that were selling cheap on the market. It was proposed to provide support to three agencies – Standards Organisation of Nigeria (SON), National Agency for Food and Drug Administration and Control (NAFDAC) and the Consumer Protection Council (CPC) – to link their activities and work in concert.

The government at the time promised to support to the organisations in the enforcement of regulations in the control of fake products. It has been revealed that NAFDAC has been able to bring the prevalence rate of fake drugs down to six percent from the 16.7 percent over the past five years.

The proposed bill, however, turned out to be much ado about nothing as there was no movement forward.

Jimoh’s comments come to confirm an earlier statement by NAFDAC director general Paul Orhii that most fake, substandard and counterfeit drugs imported and openly sold on the Nigerian market were from China through smuggling with the connivance of some unscrupulous persons whose only interest is to make money.

Orhii said even though Nigeria had been doing everything possible to fight the scourge of counterfeit drugs, China had remained a problem. This is because the authorities in China have refused to show any interest to assist in the elimination of the chain that had been traced to their country .

“India has tried to collaborate with Nigeria maximally on strategies to reduce the importation of counterfeit medicines to the country,” Orhii said, adding: “But, concerning China, we are still trying to work out how to collaborate with each other. For now, without fear of contradiction, I will say that China remains the highest exporter of these fake products and China is a problem for Nigeria.”

He said the Agency was working closely with the Chinese embassy in Nigeria to track down the company in China that connived in the shipping of counterfeit medicine into this country.

Orhii said the recent discovery of a huge consignment of counterfeit drugs had also revealed that these drugs were being sold in the market by those who also dealt in other products to escape the attention of the security agencies.

Expressing his determination to fight the influx, Orhii said: “There will be no sacred cow in the fight against counterfeit medicines. Any counterfeiter arrested will be prosecuted according to the law of the land.”

This is an indication that foreigners who hide behind the cordial relationship between their country and Nigeria to engage in negative activities will not be spared the rod. It is however not clear how the Nigerian authorities intend to deal with the Chinese diplomatic mission that doesn’t seem to be interested in helping to fight the influx of counterfeit medicine.

To achieve its aim to beat the influx, NAFDAC has also appealed to the general public, market unions and transporters to report any suspicious activities that would help it ensure that those who may try to avoid arrest were not spared but were prosecuted according to the law.