Push for FDI in Retail as dictated by Washington, continues!Funny, AMIDST ECONOMIC Intervention of Corporate Imperialism and INTENSE Corpoarte Lobbying the Brahaminical Zionist LPG Mafia Rule ENACTS the Most Amusing Nautanki!While,Swiss treaty won't allow India to glean data on older accounts!However,Kaushik Basu , chief economic advisor to finance minister Pranab Mukherjee, has just returned from the US where he was part of the FM's high-level delegation to thrash out future India-US financial and economic partnerships.The Supreme Court on Monday appointed a high-level Special Investigation Team (SIT) headed by former apex court judge BP Jeevan Reddy to monitor the investigation and the steps being taken to bring back black money stashed away in foreign banks.On the other hand,FDI inflows saw a whopping 111% increase in May at $4.66 billion, the second highest monthly inflows in 11 years, marking revival of investor confidence in the Indian economy.With majority of political parties batting for Parliamentary supremacy on the lokpal bill, Government on Monday expressed confidence that a consensus will emerge on the issue and the draft legislation would be introduced in Parliament in the upcoming Monsoon Session. "We are very happy With the outcome of the all party meeting yesterday...we are confident we can take the process forward to bring the bill in the Monsoon Session and pass it as soon as possible," home minister P Chidambaram said in New Delhi.He pointed out that Sunday's all party meeting called by Prime Minister Manmohan Singh emphasised the primacy of the Parliamentary process and the role of political parties to pilot and approve legislations.
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Push for FDI in Retail as dictated by Washington, continues!Funny, AMIDST ECONOMIC Intervention of Corporate Imperialism and INTENSE Corpoarte Lobbying the Brahaminical Zionist LPG Mafia Rule ENACTS the Most Amusing Nautanki!While,Swiss treaty won't allow India to glean data on older accounts!
However,Kaushik Basu , chief economic advisor to finance minister Pranab Mukherjee, has just returned from the US where he was part of the FM's high-level delegation to thrash out future India-US financial and economic partnerships.
The Supreme Court on Monday appointed a high-level Special Investigation Team (SIT) headed by former apex court judge BP Jeevan Reddy to monitor the investigation and the steps being taken to bring back black money stashed away in foreign banks.
On the other hand,FDI inflows saw a whopping 111% increase in May at $4.66 billion, the second highest monthly inflows in 11 years, marking revival of investor confidence in the Indian economy.
With majority of political parties batting for Parliamentary supremacy on the lokpal bill, Government on Monday expressed confidence that a consensus will emerge on the issue and the draft legislation would be introduced in Parliament in the upcoming Monsoon Session.
03/07/2011
Lokpal bill in monsoon session: PM
Govt committed to control corruption, but Lokpal must work within Constitution: PM
Affirming government's commitment to enact Lokpal Act that will provide for a strong and effective way to tackle corruption in high places, Prime Minister Manmohan Singh said such an institution will have to work within the framework of Constitution.
He told the all-party meeting on Lokpal Bill that strong laws to tackle corruption were a necessary but these would not suffice as there was a need to focus on "simplifying procedures, reducing discretion, eliminating arbitrariness and increasing transparency in the way government functions."
Singh noted that there was a feeling that institutional arrangements in place are not strong enough to ensure that the guilty, especially those occupying high positions, are brought to book swiftly and given deterrent punishment.
"I must make it clear at the outset that we, in government, are committed to the enactment of a Lokpal Act, which provides for a strong, effective and quick institutional arrangement for tackling corruption in high places," he said in his opening remarks at the meeting.
"We are also committed to bringing the bill before Parliament in the coming Monsoon Session," he said.
Apparently acknowledging concerns over certain demands by the civil society which are considered to be creating a "parallel structure", Singh emphasised that "the institution of the Lokpal has to work in harmony with other institutions and laws and it has to function within the framework of the basic structure of our Constitution."
He said the Lokpal will have "to add to and not detract from the legitimate role and authority of other institutions in our democratic structure."
Underlining that the Constitution provides for an "intricate system of checks and balances", he said the new institution of Lokpal has to find an appropriate place in that matrix."
Source: PTI
"We are very happy With the outcome of the all party meeting yesterday...we are confident we can take the process forward to bring the bill in the Monsoon Session and pass it as soon as possible," home minister P Chidambaram said in New Delhi.
He pointed out that Sunday's all party meeting called by Prime Minister Manmohan Singh emphasised the primacy of the Parliamentary process and the role of political parties to pilot and approve legislations.
04/07/2011
SIT empowered to further probe cases already investigated
New Delhi, Jul 4 (PTI) The Special Investigation Team (SIT) appointed by the Supreme Court today is empowered to probe those cases relating to black money in which the probe agencies failed to act with "alarcity" in arriving at desirable results."That the SIT also be empowered to further investigate even where charge sheets have been previously filed and that the SIT may register further cases and conduct appropriate investigations and initiate proceedings for the purpose of bringing back unaccounted monies unlawfully kept in bank accounts abroad," a bench of justices B Sudershan Reddy and S S Nijjar said.
The order assumes importance as the Enforcement Directorate had filed a charge sheet against Pune stud farm owner Hassan Ali Khan in a case of alleged FEMA violation and money laudering without informing the apex court.
Khan had even succeeded in getting bail from the trial court, which was later cancelled by the apex court which had pulled up the ED for keeping it in the dark as the charge sheet was filed a day after the hearing before it.
Although the Swiss Parliament has ratified a treaty allowing Indian authorities to get information on illegal funds stashed in Swiss banks, the government can't glean much data as the pact is applicable with prospective effect, a top tax official said on Tuesday.
"As far as I can remember, it is prospective... I think it is prospective date, from the date the treaty comes into effect," Central Board of Direct Taxes chairman Prakash Chandra told reporters when asked about the prospects of getting data from the Swiss banks.This would mean that accounts opened in the secretive Swiss Banks before the ratification of the treaty would not be liable to scrutiny by Indian authorities.
Finance minister Pranab Mukherjee and Swiss Federal Councillor Micheline Calmy-Rey had in August last year signed a protocol to amend the double taxation agreement (DTA) in the area of taxes, which was ratified by the Swiss Parliament's upper house on June 17.
Chandra said that although the Swiss Parliament has ratified the treaty, under the Swiss law around 90-100 days are required to make the law take effect.
Once the treaty takes effect, "The understanding is that yes, if we ask specific information with regard to a tax payer giving details as asked for, then they are willing to part with that (information) which earlier was not the case," Chandra said.
Meanwhile, Chandra said a government-constituted committee on black money has received more than 2,500 suggestions from across the country in the last 10 days to deal with the issue.
When asked about efforts to re-negotiate DTAA with Mauritius, news on which had led to a sharp fall in equity markets earlier this month, Chandra said both the countries have decided to take the negotiations - stuck since 2008 - forward and will be meeting to discuss the modalities.
He, however, refused to give any timeframe for the same. The BSE Sensex had tanked by 550 points in intra-day trade on June 20 on fears that the Government might impose capital gains tax on investments routed via Mauritius once the DTAA is through.
Chandra said the quarterly tax numbers will have to grow at a "sustained" 20-24 per cent in the coming quarters in order to achieve the tax collection target of Rs 5,32,000 crore announced in the Budget.
In order to check the illegal fund flows, the Government had decided to place Indian tax officers abroad and two such officials have already been posted in Singapore and Mauritius.
Plans are afoot to operationalise similar offices in Japan, UAE, Germany, UK, USA, France and Canada, he said.
Chidambaram's remarks reflected a sense of relief in the government which was so far battling the civil society led by Anna Hazare on the lokpal issue alone while receiving flak from Opposition parties on the issue of corruption.
"We will therefore bring a bill in the monsoon session of Parliament. That bill will be examined. Every effort will be made to pass the bill at the earliest. But that will depend on the members of Parliament and their desire to follow established procedures," Chidambaram said.
| Editorial |
Toothless LokPal Bill will once again take India for a ride : corrupt crooks can't be controlledIt is very easy to deceive the Indians. Particularly those classified as Hindu. Though the SC/ST/BC (65%) are not Hindu and never Hindu, they have been Hinduised (made unthinking morons) in the past thousands of years under this violent and also non-violent Hinduaisation drive. The shudra section, forming the fourth order of the chathur varna (caste system) have been also made unthinking fellows. That means over 80% of the Hindu social order can be easily fooled by the upper castes (dwijas),meaning Brahmins, Kshtriyas and Vaishyas The first person who successfully fooled the unthinking, poor, gullible masses was M.K.Gandhi. Then came another bogus fellow hailed Lok Nayak J.P. the latest to enter this lucrative business is the Marathi Brahnin, Anna Hazare, also "Gandhian". The multi-million dollar yoga guru, Ramdev Yadav, gate crashed into this field. His yoga clients are the overfed upper castes but they did not join his June 5 Ramlila ground circus in Delhi fearing violence. It is again the unthinking "low caste" morons, made monkeys by the myths manufactured by Brahminism. Ramdev is being groomed by the Hindu terrorist party which wants to seize the initiative taken by the other fake Gandhian who is also close to the Hindu terrorist party. Thanks to the "khatri sick" PM's June 5th midnight foolishness, the two rival "saviours" are merging. This is an important development in the crisis- ridden history of India manipulated by its less than 3% Brahminical upper castes. This is incident clearly proved that the Indian constitution and all the creatures it created, namely parliament, executive, judiciary-have all failed. And this country of 1,300 millions, the second largest in the world, is being taken hostage by extra-constitutional mischief-makers. Every effort is being made by the ruling class to bury the LokPal Bill after raising sky high the hopes of the oppressed millions. Both the nakli Gandhi, Anna Hazare, and the "Khatri sick" PM--the two sides of the same coin--are party to the conspiracy which once again took the country's innocent millions for a ride. If you closely observe, the "Gandhian" Anna's gang leaders are all urban-based corrupt parasites. Do you remember the same fellows once hoisted the Lok Nayak Jayprakash Narayans(JP) whose bogus "Total Revolution" brought the Hindu terrorist party to power? Anna is a great admirer of Gandhi, JP, Gujart's Modi and Karnataka's Yediyurappa. This is enough to sum up Anna. Financial crooks: If the PM and the Supreme Court are so pure and lily white why they should not be subjected to LP probe? If the PM is so honest, as he pretends, why should he not himself volunteer for scrutiny? DV was the one and only paper in India to declare that the country's biggest financial crooks and criminals have all flourishied under the PM. Swiss bank stolen money: The one single case of Harshad Mehta is enough to prove our point. Now look. The Supreme Court has been repeatedly asking the govt. to get back the stolen money kept in Swiss Bank. But it is our "Khatri Sick" PM who is side-tracking the issue. The latest proof for this is the govt. appointing an "expert committee" to count the quantum of money and where it goes funny. This is a typical "Hindu style". When you want to kill an inconvenient problem, appoint a committee. The country's topmost frauds have all kept their stolen money in Swiss banks but the "Khatri Sick" PM is shielding them. DV never proved wrong: Telecom Minister Raja had repeatedly said he had kept thePMfully briefed at every stage on the spectrum issue. Kalmadi also had kept PM fully informed. But Raja and Kalmadi are sent to jail. Why commission yet another yoga guru Ramdev (54) darling of the Hindu terrorist party, fraud to say PM should be kept out of the LokPal? The entire economic portrait of the country was painted by him, right from his days as the Governor of the Reserve Bank, then as Financial Minister and later as PM. All the biggest sharks are sheltered under his broad wings. Our suspicions and criticisms will continue to stick until the "Khatri Sick" PM and the Supreme Court voluntarily subject themselves toLPprobe. The ruling class is very effectively shielding us the "Khathri Sick" PM who is the principal cause of India's fall and fall. DV has been consistently telling it. And we have never proved wrong. |
http://www.dalitvoice.org/Templates/july2011/editorial.htm
Telecom minister Kapil Sibal made it very clear that the government had promised to bring the lokpal bill in the Parliament in the Monsoon Session but there was no commitment on the timeline of passing the same.
"We had said we are committed to bringing the bill in the monsoon session. We never said it will be passed in the monsoon session," Sibal said.
The Minister also said that two parties which took part in the all party meeting suggested that the bill could be passed in the Winter Session.
Reflecting their eagerness to build a consensus, the union ministers said there was nothing wrong in a number of political parties, including BJP not spelling out their stand on contentious provisions of the bill like bringing Prime Minister and the higher judiciary under lokpal's ambit.
Chidambaram said it was "legitimate and valid" that most parties reserved their views on the provisions of the bill till it will be brought before Parliament.
Supporting Chidambaram's statement, Sibal said that BJP may be requiring more time to finalize a view on the provisions.
Chidambaram described as "preliminary views" opinions expressed by some political parties for or against bringing the Prime Minister and the judiciary under Lokpal's ambit.
"Our impression is that all these views are subject to change when we go through the procedures," Chidambaram said.
Going a step further Sibal said, "Many of these voices that you hear will merge into the consensus."
Chidambaram downplayed UPA ally DMK's strong assertion that both Prime Minister and the judiciary should be brought under Lokpal and refused to see a "divide" in the alliance.
"UPA is not a political party. It's a coalition of political parties. When you have more than one party, you may have different views on some issues. That does not mean that the UPA is divided," Chidambaram said.
He said as long as there is a broad consensus on the bill, there is nothing to be alarmed, and suggested the government has no problem even if some allies express different views on some provisions of the bill.
Sibal pointed out that leaders of many political parties wondered at the definition of the civil society and wanted to know whether five members led by Hazare represented the entire civil society of India.
04/07/2011
Lokpal: govt hides behind Constitution
Cannot rewrite Constitution for Lokpal bill, says Chidambaram; bill pushed to Winter session
New Delhi: The government was committed to tabling the anti-corruption Lokpal bill in parliament's monsoon session beginning Aug 1 but won't rewrite the constitution for the legislation, Home Minister P. Chidambaram said on Monday.
Addressing a media conference, a day after an all-party meeting agreed that a "strong and effective" bill should be introduced in the next session of Parliament, Chidambaram was noncommittal on when the legislation would be passed because it would have to be referred to a standing committee for broader consensus.
This means that Lokpal (ombudsman) bill would have to wait for the winter session in mid-November to be passed.
"We will bring (the) bill in the monsoon session of parliament. That bill will be examined according to established procedures... Members of parliament desire to follow the established procedures," the Home Minister said at the press conference that was also addressed by Human Resource Development (HRD) Minister Kapil Sibal and Parliamentary Affairs Minister P.K. Bansal.
Chidambaram was categorical in saying that the final draft bill would be in accordance with the constitution of India as the government didn't consider it as "an occasion to rewrite the constitution".
He said an "aspect" established at the all-party meeting was that the bill must be within the constitution.
"We are drafting a bill and the bill will be within the constitution. That point was emphasised more than once (in the meeting)," he said.
Asked whether referring the bill to a standing committee would mean a delay, at least till the winter session, in seeing the measure through, HRD minister Sibal said: "We had said we are committed to bring the bill. We will keep the promise. We never said it would be passed in the monsoon session."
The all-party meeting was part of the government's efforts to evolve a consensus on the anti-graft bill after it failed to do so in the meetings of a joint drafting committee comprising five nominees of social reformer Anna Hazare and five central ministers.
The drafting panel was divided on several issues, including inclusion of the prime minister and the judiciary under the purview of the proposed Lokpal. Two drafts of the proposed bill have thus emerged.
Chidambaram clarified that it was not the draft prepared by the ministers on the panel that will be submitted to parliament. He said this draft would be refined to be allowed to follow "established procedures".
"What was presented (at the all party meeting) is a draft. It will go to departments and ministries concerned. It will be sent to the nodal ministry (before being referred to the cabinet). The cabinet will finalise the draft. The draft approved by the cabinet will be introduced in parliament."
Chidambaram said that the "government is very happy with the all-party meeting yesterday".
"It took place in a very cordial atmosphere. And we are confident that we can take the process forward, bring the bill in the monsoon session and try to get it passed as soon as possible," he said.
Asked about Hazare's threat to launch a hunger strike from Aug 16, in case the bill was not made into law by then, Chidambaram said it was "premature" to predict what would happen in the future as the government will bring the bill that "will satisfy the vast majority of this country".
"Why do you consider it (fast) as inevitable? I don't think we should assume. It is too premature," he said.
The home minister played down the differences within the Congress-led United Progressive Alliance (UPA) over the issue, saying the ruling combine was "not a political party".
"It is a coalition. There will be some differences. It only means that we should talk and arrive at a consensus."
Source: IANS
Meanwhile,the Supreme Court on Monday appointed a high-level Special Investigation Team (SIT) headed by former apex court judge BP Jeevan Reddy to monitor the investigation and the steps being taken to bring back black money stashed away in foreign banks. Besides Justice Reddy, who will be the
chairman of the SIT, the apex court also appointed its former judge, Justice M B Shah as the vice-chairman of the panel.
A bench comprising justices B Sudershan Reddy and S S Nijjar directed that the High-Level Committee (HLC) constituted by the government to look into the issue of black money would "forthwith" be a part of the SIT.
The bench also directed the government to disclose the names of all the persons who have been issued show cause notices by the authorities in connection with the probe into the black money issue.
The court, however, made it clear that the authorities would not disclose the names of those who have not been investigated in connection with deposits made in foreign banks including Liechtenstein bank.
The court passed the order on a petition filed by eminent jurist Ram Jethmalani and others seeking directions to the government to track black money stashed away abroad and bring it back.
The apex court directed the government to issue notification forthwith regarding the appointment of SIT and ordered that government machinery to cooperate with it.
The bench, while passing the order, made some hard-hitting observation against the Centre for its "failure" to take proper action against people who have illegally stashed away money in foreign banks.
Observing the phenomenon of black money as "extremely dangerous to the country", the court said the quantum of money in foreign banks is a rough measure of "weakness" and "softness" of the nation.
The bench said that it was a serious lapse on the part of the government which will have implications on the country's external and internal security.
"We must express serious reservation on the steps taken by the government...It's clear to us that investigation was completely stalled and expedited only after the court's intervention.
"It was only upon this court's insistence that proper investigation was conducted," the bench said while referring to Pune stud farm owner Hasan Ali Khan's case.
"There was much to be desired," the court said, adding there was a need for it to get involved in the case.
"We hold that continued involvement of the court is necessary," the bench said, while directing the SIT to take over all the cases relating to the issue of black money and file a status report before it.
The court also asked the SIT to submit a comprehensive action plan to deal with cases relating to the black money issue.
Justifying its decision to constitute the SIT, the bench said that in previous cases also the court has been passing such orders to fulfil its constitutional obligation.
The court also said that it's not possible for it to be involved in day-to-day investigations in the case as the resources at its disposal were scarce.
The bench said the issue of black money has to be taken with a degree of seriousness and the state is primarily responsible to make all efforts to bring back into the country such wealth and punish people who have stashed away money in foreign banks.
2 JUL, 2011, 07.13AM IST, RAKESH BHARTI MITTAL,
Why postpone agriculture reforms?
In the rapidly transforming Indian economy all the attention has consistently centered on the emerging sectors, almost by default.
Though not by design, agriculture has ended up a much neglected sector despite the fact that more than 60% of the population still depend on it for their livelihood. It's time we relooked at the sector in the context of new priorities like controlling food inflation, managing food security, improving productivity, reducing wastages and increasing farmers' income.
Economic reforms have done wonders for various sectors in terms of productivity, income generation and consumer welfare. It does not make any sense to deprive agriculture of similar benefits any longer. Since it's not possible to go into all the issues facing the sector in this piece, I would rather limit myself to two most critical areas in the sector crying for reforms. While one relates to the marketing and distribution of agricultural produce, particularly for fresh produce; the other relates to the structure of ownership and leasing of land in the country. Laws and regulations governing these areas were created long time back in a different environment, and were probably relevant at that time. Ironically, a large section of these laws were originally created to protect the small farmers from unscrupulous landlords, moneylenders and traders. They have largely turned dysfunctional and counterproductive in the changed environment.
Presently, they are working against the interest of both the farmers and consumers. In fact, agri produce is the only sector where one needs a licence to purchase through the Adhtiyaasin the mandis. First, let's look at trade in agricultural products in the country. Since farmers are prohibited by regulation to sell directly to aggregators, food processing companies and retailers, they are compelled to sell their produce to the middlemen at the mandis. The worst part of this arrangement is the lack of transparency in the price discovery process. Small farmers invariably fall prey to the middlemen and Adhtiyaasworking in tandem. The plight of the farmers is aggravated particularly in the case of perishable produce like fruits and vegetables.
Distress sale remains a common phenomenon given the farmers' inability to store or transport products at will. Lack of adequate cold storage network in the country clearly remains a big hurdle. There is a very strong case for amending the Agricultural Produce Market Committees (APMC) Acts in different states to exempt fruits and vegetables and other perishables like fisheries from the ambit of the law. Exempting them from the restrictions will help streamline the distribution channels of the products, shortening the distance between the producer and consumer. Reducing the number of hands through which the product passes through will have a direct impact on the degree of wastage.
It's worth mentioning here that about 25-40% of India's agri produce goes waste due to improper transportation, storage, warehousing and lack of cold chain infrastructure. Eliminating the middlemen's margins and reduction in wastage can have a twin impact; increasing realisation for farmers and decreasing consumer price. Reforming the APMC Acts to allow big organised retailers to buy directly from farmers, I believe, will lead to bigger investments in the cold chain infrastructure in the country. There is a strong case to give complete freedom to farmers to sell perishable produce directly to wholesalers, aggregators, food processing companies and retailers, in addition to selling in mandis. Fragmentation of landholdings in the country is another serious problem facing the sector today.
The average size of landholding in the country has declined progressively from 2.63 hectares in 1996 to 1.06 hectares in 2004-05. Around 60% of the households today possess less than one hectare of land for cultivation. This has seriously affected the scale of operations, crop diversification and scope of aggregation of farm produce. Subsistence and marginal farming has unfortunately become the norm.
A possible solution to the above problem lies in legalising the leasing of agricultural land on long tenure basis through legislation. Fear of landowners about losing ownership rights while leasing it out to another party remains the biggest obstacle to leasing. Hence, one focal point of any proposed legislation should be to ensure that the landowner is not dispossessed of his land in the process of leasing and that the lessee has no tenancy rights.
http://economictimes.indiatimes.com/opinion/comments-analysis/Why-postpone-agriculture-reforms/articleshow/9072609.cms
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News for FDI Multi Brand
www.newsworms.comDecision on FDI in multi-brand retail likely this month
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No FDI in Multi-Brand Retail
The Polit Bureau strongly opposes any move to allow FDI in multi-brand retail trade as suggested by the Inter-Ministerial Group on Inflation headed by the Chief Economic Advisor.
Having utterly failed to curb the relentless increase in prices of essential commodities, the move is to utilize that very failure to push for more concessions to multinational companies like Walmart. The specious arguments put forward that entry of MNC retail giants like Walmart will enhance efficiency of the supply chain and bring down the trading margins belie international experience which shows that any State regulation of these giant retailers are always rendered ineffective. In fact, MNCs will enjoy much greater monopoly power over both farmers and consumers and will manipulate prices to their benefit while at the same time, the livelihood of millions of small unorganized retailers will be virtually wiped out.
This is yet another instance of pro-MNC neo-liberal framework which will badly affect the Indian people. It is shocking that the Group of Ministers has refused to accept the Supreme Court direction to strengthen the public distribution system and distribute foodgrains to the people which is also one of the ways of controlling market prices. It is to be noted that the Inter-Ministerial Group has not suggested any meaningful step to curb food inflation, like enhancing agricultural productivity or stepping up public investment in storage and transportation. Options like strengthening the PDS and banning future trade in essential commodities are also being ignored.
The CPI(M) calls upon other political parties and organisations to protest against this retrograde move.
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FKCCI opposes FDI in multi-brand retailing - The Hindu
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CPI-M opposes move to allow FDI in multi-brandretail News
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Monetary and Financial Sector Reforms in India:
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Aiyar blames PC for not acting on CWG graft
New Delhi: Former sports minister Mani Shankar Aiyar has blamed former finance minister P. Chidambaram for not taking cognizance of his letters that warned about alleged embezzlement of funds earmarked for the Commonwealth Games.
Aiyar said that he wrote several letters to Chidambaram, who is now the home minister, but never got any acknowledgement.
"I don't know that these letters went to the finance minister at all," Aiyar told CNN-IBN. "But after one meeting of the group of ministers, where my insistence on observing the general financial rules (GFR) was overruled by the finance minister himself, I did write to Chidambaram."
Aiyar said that in the letter he also asked the finance minister to directly release the funds instead of the sports ministry doing so.
"In that letter, I did say because I was so upset with the situation that instead of the sports ministry being asked to release these grants in violation of the GFR to Suresh Kalmadi-led Organising Committee, why not the finance ministry itself does it?" he said.
"And to the best of my memory, I may be wrong here, that letter was neither acknowledged nor acted upon," he said, adding he had also expressed his concerns to the ministerial group that was set up to oversee the preparations for the Games.
"I think, you know, we must also remember that there was a group of people who were supervising all this. It was chaired by the late Arjun Singh, it included a number of ministers," he said.
"My memory is, it was chaired by the human resource development minister and included the information and broadcasting minister, urban development minister, Planning Commission deputy chairman and the finance minister, besides himself.
"So this was the group to which I had taken in detail what my concerns were," he said, recalling that he was alerted by Prithviraj Chauhan, then minister in Prime Minister's Office, that he should be careful while releasing funds for the Commonwealth Games.
"Well, in fact I was tipped off to the need to ensure that sanctions of authority were properly given by my immediate predecessor who was Sri Prithviraj Chauhan. He was the one who tipped me off within weeks of my becoming minister that something was rotten and that it was in my own best interest that I should check out what was happening," he said.
"So I'm grateful to him for that. My secretary was a gentleman who was not in the public eye at that time, but has since gone renowned as one of the most able and honest Chief Election Commissioner we've ever had, that was S.Y. Quraishi and he shared all my concerns."
During last week' interaction with the media, Prime Minister Manmohan Singh had admitted that Aiyar was ideologically opposed to the games. Aiyar said that it was his responsibility to write to the prime minister warning him about the corruption in the Commonwealth Games Organising Committee.
Earlier, Aiyar had told Headlines Today that the publication of his letters may refresh the prime minister's memory.
"I brought it to the attention of the prime minister, cabinet ministers and the group of ministers. I was overruled in the GoM by the finance minister. The seriousness of my charges was dismissed by the GoM," he said.
"I didn't want to share a cell with Kalmadi in Tihar. It (the CWG fiasco) was entirely avoidable. But I will blame myself. My fault is I didn't carry the conviction," he said.
"Everyone thought it was a personality clash," he said, adding: "My primary concern was ideological. Then I realised there was a great deal of financial impropriety."
Source: IANS
India not likely to get Hasan Ali's Swiss bank details
HT Correspondent, Hindustan Times
Mumbai, June 29, 2011
Getting information on the accounts of Pune businessman Hasan Ali Khan in Swiss banks isn't going to be easy. This is because the Double Taxation Avoidance Agreement (DTAA) signed between India and Switzerland recently, which will allow India to obtain information on specific individuals holding Swiss bank accounts, will be applicable only for prospective accounts.
Prakash Chandra, chairman of Central Board of Direct Taxes (CBDT) who was in Mumbai on Tuesday said India would soon be able to get information on certain individuals holding account in Swiss banks.
He said that Switzerland's parliament has ratified the DTAA and after a mandatory waiting period, the agreement would be implemented.
However, he said that as per the DTAA, information of accounts opened in the past would not be given.
Chandra also heads a committee formed recently to look into ways to strengthen the law to curb black money.
The committee had met in the first week of June and decided to invite suggestions from the public before meeting next month.
Chandra said that in the past 10 days, the committee has received more than 2,500 suggestions from people all over the country.
"We have to go through the suggestions and see how many are practical," he said.
He also said that tax refund issues were a priority for the income-tax department. "We have issued a majority of refunds that were pending," he said.
When asked if the CBDT was working on a proposal whereby taxpayers would be able to file returns from their mobile phone, he said the department wants more people to file electronic returns.
"Filing returns from mobile phones is a step further than e-returns and will be introduced in due course of time," he said.
http://www.hindustantimes.com/News-Feed/mumbai/India-not-likely-to-get-Hasan-Ali-s-Swiss-bank-details/Article1-715022.aspx
04/07/2011
Lokpal: govt hides behind Constitution
Cannot rewrite Constitution for Lokpal bill, says Chidambaram; bill pushed to Winter session
New Delhi: The government was committed to tabling the anti-corruption Lokpal bill in parliament's monsoon session beginning Aug 1 but won't rewrite the constitution for the legislation, Home Minister P. Chidambaram said on Monday.
Addressing a media conference, a day after an all-party meeting agreed that a "strong and effective" bill should be introduced in the next session of Parliament, Chidambaram was noncommittal on when the legislation would be passed because it would have to be referred to a standing committee for broader consensus.
This means that Lokpal (ombudsman) bill would have to wait for the winter session in mid-November to be passed.
"We will bring (the) bill in the monsoon session of parliament. That bill will be examined according to established procedures... Members of parliament desire to follow the established procedures," the Home Minister said at the press conference that was also addressed by Human Resource Development (HRD) Minister Kapil Sibal and Parliamentary Affairs Minister P.K. Bansal.
Chidambaram was categorical in saying that the final draft bill would be in accordance with the constitution of India as the government didn't consider it as "an occasion to rewrite the constitution".
He said an "aspect" established at the all-party meeting was that the bill must be within the constitution.
"We are drafting a bill and the bill will be within the constitution. That point was emphasised more than once (in the meeting)," he said.
Asked whether referring the bill to a standing committee would mean a delay, at least till the winter session, in seeing the measure through, HRD minister Sibal said: "We had said we are committed to bring the bill. We will keep the promise. We never said it would be passed in the monsoon session."
The all-party meeting was part of the government's efforts to evolve a consensus on the anti-graft bill after it failed to do so in the meetings of a joint drafting committee comprising five nominees of social reformer Anna Hazare and five central ministers.
The drafting panel was divided on several issues, including inclusion of the prime minister and the judiciary under the purview of the proposed Lokpal. Two drafts of the proposed bill have thus emerged.
Chidambaram clarified that it was not the draft prepared by the ministers on the panel that will be submitted to parliament. He said this draft would be refined to be allowed to follow "established procedures".
"What was presented (at the all party meeting) is a draft. It will go to departments and ministries concerned. It will be sent to the nodal ministry (before being referred to the cabinet). The cabinet will finalise the draft. The draft approved by the cabinet will be introduced in parliament."
Chidambaram said that the "government is very happy with the all-party meeting yesterday".
"It took place in a very cordial atmosphere. And we are confident that we can take the process forward, bring the bill in the monsoon session and try to get it passed as soon as possible," he said.
Asked about Hazare's threat to launch a hunger strike from Aug 16, in case the bill was not made into law by then, Chidambaram said it was "premature" to predict what would happen in the future as the government will bring the bill that "will satisfy the vast majority of this country".
"Why do you consider it (fast) as inevitable? I don't think we should assume. It is too premature," he said.
The home minister played down the differences within the Congress-led United Progressive Alliance (UPA) over the issue, saying the ruling combine was "not a political party".
"It is a coalition. There will be some differences. It only means that we should talk and arrive at a consensus."
Source: IANS
Action on black money after studying SC order: Govt
The government on Monday said the future course of action on black money will be decided after studying the Supreme Court order to appoint a high-level team to monitor the investigation and the steps being taken to bring illegal wealth stashed away in foreign banks.
"... we will examine it (the order)...and then we will decide what course of action will be necessary," Finance Minister Pranab Mukherjee told reporters when asked to comment on the Supreme Court's order on black money.
Home Minister P Chidambaram said, "I do not think one should give off-the-cuff reaction on a Supreme Court order. If Supreme Court has given an order it is final because it is the final court. Let us first read the order."
The Supreme Court on Monday appointed a high-level Special Investigation Team (SIT) headed by former Supreme Court judge B P Jeevan Reddy to monitor the investigation and the steps being taken to bring back black money stashed away in foreign banks.
Besides Justice Reddy, who will be the chairman of the SIT, the apex court appointed former judge M B Shah as the vice-chairman of the panel.
Chidambaram also said that after going through the details a government spokesman will respond to it, if necessary.
A bench comprising justices B Sudershan Reddy and S S Nijjar passed the order on a petition filed by eminent jurist Ram Jethmalani and others seeking directions to the government to track black money stashed away abroad and bring it back.
13 MAY, 2011, 03.48AM IST,ET BUREAU
SC raps govt for not informing about Hasan Ali chargesheet
NEW DELHI: The Supreme Court has castigated the Enforcement Directorate for not telling it that a chargesheet has been filed against Pune-based stud farm owner Hasan Ali in a case related to black money.
"Why is it that we were not informed that investigation is complete against that man (Hasan Ali). In your (ED) status report you had said that investigation was still going on. But two days after we read it in the newspapers, you have filed the chargesheet. We must express our reservation on it," a bench comprising Justice B Sudershan Reddy and Justice SS Nijjar said on Thursday.
ED on May 6 had filed a chargesheet against Ali in the case before a special court in Mumbai. However, it was not disclosed to the apex court when the black money case was heard on May 4.
The court expressed dismay on why the chargesheet was not placed before the 10-member committee which was appointed by the government to monitor the probe and steps taken by various agencies to retrieve huge amounts of unaccounted money stashed away in foreign banks.
"We thought that someone(retired SC judge) should monitor all such cases but you put in place a mechanism to monitor such cases. We want to see where lies your mechanism and how it has been doing", the bench said. It expressed reservations over ED filing the chargesheet without placing it before the high-powered committee.
"You (ED) filed the charge sheet without placing it before the committee you have constituted and we are surprised," the judges remarked.
The court passed such observations after ED counsel and Solicitor General Gopal Subramanium acknowledged it.
"We are surprised to know. You put in the mechanism. Why was the chargesheet not placed before the committee," the bench asked.
Subramanium said that the chargesheet should have been placed before the committee and assured the bench that corrective measures will be taken.
The Centre on April 25 had constituted a committee to deal with the issue of black money. It consists of the Revenue Secretary, Deputy Director, RBI, Directors of CBI , Intelligence Bureau, Enforcement Directorate, Chairman of the Central Board of Direct Taxes, Director General of Revenue Intelligence, Director General of Narcotics Control, Director of Foreign Intelligence Office and Joint Secretary of Foreign Trade.
http://economictimes.indiatimes.com/news/politics/nation/SC-raps-govt-for-not-informing-about-Hasan-Ali-chargesheet/articleshow/8283591.cms
13 MAY, 2011, 03.43AM IST,ET BUREAU
SC orders CBI probe into irregularities in Orissa NREGA
NEW DELHI: The Supreme Court has directed the Central Bureau of Investigation to probe misappropriation of funds from the National Rural Employment Guarantee Scheme in 100 villages in Orissa , in 2006-07.
The court asked the Centre to tell it within eight weeks the plan it proposes for states to prevent recurrence of irregularities in the scheme.
"It will be useful for concerned authorities in the Central Government to ponder over the entire matter and propose such directions or measures which the state government should take in order to prevent recurrence of the events that have taken place in number of states and particularly in the state of Orissa," said a bench comprising Chief Justice SH Kapadia, Justice KS Radhakrishnan and Justice Swatanter Kumar in its order on Thursday.
"We also direct the Central Government to consider the entire matter objectively within the framework of the provisions of the statute and place on record of this court, before the next date of hearing, the directions or measures which it proposes to issue to all the states to prevent recurrence of what has happened in the state of Orissa."
The bench said the Central Government on receipt of complaints is vested with the power to stop release of the funds to NREGA scheme and institute appropriate remedial measures for its proper implementation.
The Central government has full power to refer complaints to CBI for investigation, pointed out Chief Justice Kapadia writing the order for the bench.
The court also expressing concern over the persistent default by a large number of state governments in implementing the provisions of the act and Central government's NREGA Operational guidelines of 2008. It was issued for the proper implementation of the scheme by the state governments. "We hereby direct all the state governments to file affidavits stating whether they have accepted and are duly implementing the Operational Guidelines issued by the government of India, within six weeks," the court ordered.
http://economictimes.indiatimes.com/news/politics/nation/sc-orders-cbi-probe-into-irregularities-in-orissa-nrega/articleshow/8283528.cms
CII favours decontrolling diesel prices
CHENNAI: Confederation of Indian Industry today favoured decontrolling diesel prices saying the subsidy on fuel would hit the country's growth in the long term.
"We are not in favour of subsidies...Though it is important temporarily, if it becomes a habit, it will hamper the long term productivity of the country," CII President B Muthuraman told reporters here.
The prices should be driven by the market conditions so that the competitiveness was increased. "We want competitive scenario and at the same time it should be a level playing field (for industries)", Muthuraman, also the Vice-Chairman of Tata Steel , said ahead of the CII National Council Meeting.
He also sought modifications in the Land Acquisition Bill currently in the drafting stage.
"It is not practical for industry to acquire large acres of land.. It can be done in a different way. We are trying to discuss the issue with the policy makers." he said.
It was in this context, the CII was planning to set up a Land Development Corporation which can be a public-private partnership that works on business objective.
"The idea is to buy and develop land for industry purposes," he said.
On rising interest rates, he said any further hike would kill the growth of industry.
"Any further increase (on interest rates) will kill the industry," he said adding the supply and demand sides needed to be addressed.
Detailing some of the affirmative actions taken by CII in the recent past, he said so far 276 ITIs had been adopted and 10,900 scholarships distributed since 2007.
27 JUN, 2011, 05.10AM IST,ET BUREAU
The oil sector needs decontrol and competition, not sporadic price changes
The Centre has belatedly raised retail prices marginally of diesel, cooking gas and kerosene, after a whole year of inaction even as crude prices kept rising. This, and the cuts in duties on crude and products, helps the oil companies, but fall short of much needed systemic reform. There is no move yet again to decontrol prices of diesel, the most used fuel, never mind the inprinciple okay some time ago for oil companies to revise retail prices on their own. It is sensible that oil marketers now willy-nilly get to revise petrol prices.
However, after the latest revision for diesel, the price differential vis-avis petrol has further risen, which distorts demand, for example, favouring cars that run on diesel. And despite the long-overdue increase in the prices of the trio of petroproducts, the estimated under-recoveries in oil, the difference between the cost price and realised price of petrogoods, would nevertheless reportedly add up to Rs 1,20,000 crore this fiscal alone. The massive imbalance underscores the need for purposeful reform in oil, with real scope for competitive, market-determined prices rather than sporadic, politicised price revisions that leave an inefficient, opaque oil marketing structure intact.
In tandem, the customs duty on crude has been reduced from 5% to nil, and that on petrol and diesel brought down to 2.5% from 7.5%. It would have made more sense to unify the rates for crude and refined products at 1.5-2%. The state governments do need to bring down and rationalise local levies on oil products. After all, in a regime of ad valorem duties on petro-products, runaway prices do tend to disproportionately rev up indirect levies. Additionally, excise on diesel has been almost halved.
But the special excise on petrol remains anomalously in place. Abroad, the relative price differential is minimal. The cooking gas (LPG) price per cylinder goes up by Rs 50, to about Rs 395, and subsidised kerosene (SKO) by Rs 2/litre. But LPG prices are already double ours in the immediate neighbourhood, and SKO is heavily used as adulterant. The express need is for comprehensive subsidy overhaul for both the household fuels.
http://economictimes.indiatimes.com/opinion/editorial/The-oil-sector-needs-decontrol-and-competition-not-sporadic-price-changes/articleshow/9007936.cms
27 JUN, 2011, 04.59AM IST,ET BUREAU
Boosting production and rural incomes should be the core of food security
An article by the Commission for Agricultural Costs and Pricing chairman Ashok Gulati in this paper (ET, June23) made a telling point that the government and the leadership of the ruling coalition would do well to take on board while finalising their view on food security. Food security is achieved far more by boosting rural output and incomes than by distribution. Agricultural growth dents rural poverty directly and proportionately much more than growth in town-based activities such as industry and services. Fast growth on the farm was precisely the route that China took to bring down its poverty rate.
Boosting farm output would also increase vital supplies and hold the price line. At a time when even the least developed economies of the world are registering sustained growth of 7% a year and more, it is inevitable that food demand would go up around the world. Without a coherent strategy to boost output, any attempt to identify food security with distribution would push up government dominance in the market for grain, jack up the subsidy bill, paying for expensive imports as well, and leave demand squeeze as the only way to contain inflation, leading to higher interest rates and lower investment and growth. This is a recipe for ever-rising food subsidy without materially enhancing welfare.
Another point the article highlights had been articulated by 40 noted economists in an open letter to UPA chairperson Sonia Gandhi as well: it would be a big mistake to rely on the public distribution system as the sole means of ensuring popular access to food. The procurement, storage and distribution through the Food Corporation of India and state civil supplies departments is riddled with corruption, inefficiency, pilferage, spoilage, special devolution to Punjab and Haryana which corner central funds in the name of mandi tax.
Cash transfers to beneficiaries and an enhanced role for the private trade would cut costs and minimise leakages. Food security is not just distribution of food, but increasing production, and enhancing efficiency across the board: and that would call for organised retail and the supply chains they can bring, as Amul did in the case of milk.
http://economictimes.indiatimes.com/opinion/editorial/boosting-production-and-rural-incomes-should-be-the-core-of-food-security/articleshow/9007854.cms
20 JUN, 2011, 01.14PM IST,REUTERS
Indian agricultural infrastructure deperately needs overhauling
SHIVTHAR (Maharashtra): Ajit Govind Sable's family have owned their farm in western Maharashtra for 10 generations, which even for a region that has been farming for more than 10,000 years is long enough to witness plenty of changes.
Two generations back, they started cultivating sugar cane here in Shivthar, a village in Maharashtra's highlands near the Krishna river. India's most industrialised state soon became its largest sugar producer.
Today, it's not sugar the 35-year-old Sable is talking about as he sips sweet tea in the front yard of the low, two-storey farmhouse where half the ground floor houses his turmeric crop.
He's discussing peppers, which he is now growing under polythene plastic coverings. Like an increasing number of farmers in the country, Sable is exploiting a shift in taste towards fruits and vegetables among Indians.
"My colleagues grow flowers under poly," Sable says. "But the investment for that is too much for me, so I'm trying out peppers. You can't eat flowers if you can't find buyers for them," he notes.
While many farmers are eager to adjust to changing diets in one of the world's fastest growing markets, the government continues to subsidise the cultivation of wheat, sugar and rice crops to ensure basic food needs for the country's poor.
The result is overflowing stocks of these carbohydrate-heavy staples and a huge subsidy bill that is adding to a ballooning budget deficit.
India, many agricultural experts say, is spending billions to prop up a traditional farm sector at the expense of investment in new crops and agricultural innovation.
But in a country where one out of five goes hungry, the government has had to focus on foods that fuel or fill -- carbohydrate-heavy wheat, rice and sugar. About 36 percent of women and 34 percent of men in India are underweight. The costs of that undernourishment is high in terms of healthcare, lost productivity and poor quality of life.
At the same time, a growing urban middle class is consuming more higher-value, high protein foods, which is stoking food price inflation -- as well as changing business and farm models in rural India.
The food chain in India is undergoing deep change. "There is a view that this is a structural shift and pulses, milk, meat, eggs, fish, protein items -- these are sectors where you need to concentrate," Abhijit Sen, who sits on the government's planning committee, said in a speech on June 5.
RISING MIDDLE CLASS
Those shifts have been under way for years but are accelerating with rapid urbanisation and the expansion of middle class. Take Avantika Singh , for example. A consultant in the hotel industry, she lives in an apartment block in Delhi with her husband Sanjay, a television producer, and their 7-year-old daughter, Romsha.
The Singhs are still fond of traditional Indian food such as idlis, southern style rice pancakes served with spicy sauce, and parathas, wheat flatbreads cooked with oil or ghee.
But on this day Avantika, 41, is cooking pasta with fresh peppers.
"As a working person, I look at whatever is easy to do and nothing too elaborate," she says. "When you make idlis it's a whole day, day-and-a-half procedure. I don't have that kind of time."
She sees her parents' generation suffering the effects of the sugar-heavy, oily diet they grew up on.
"Even if we make parathas, we don't put butter and ghee in," Avantika says.
India is getting wealthier as well as healthier. Its 8 percent annual growth, second only to China among major countries, is boosting incomes rapidly in the trillion dollar economy. Per capita income surged to $1,265 in 2010 from $857 in 2006 -- a nearly 50 percent increase -- according to the World Bank and IMF .
Middle class households are expected to grow 67 percent in the next five years, bringing over 53 million households into an annual income bracket between 340,000 and 1.7 million rupees ($7,600-38,000).
Bijay Kumar, managing director of the National Horticulture Board , says having more money than your parents is pushing up demand for high-protein foods.
"Rising income levels are allowing people to spend on high value stuff," he says. "People are more aware of health. They are increasing their intake of fruits in their regular diet."
In 2009-10, Indians boosted spending on fruit and vegetables by nearly 9 percent over the year earlier. They shelled out almost 31 percent more on meat, eggs and fish. Spending on cereals, on the other hand, was flat.
"A dietary transformation is underway in the country and demand for high value, vitamin and protein rich food such as fruit, vegetables, milk, eggs, poultry, meat and fish is increasing," the International Food Policy Research Institute (IFPRI) said in a study this year.
FOOD SECURITY
Years of eating an oil-rich, sugary diet high in carbohydrates have left many with a paunch and a health problem. India has the world's largest diabetes population at just below 51 million people, while heart disease is the single-largest cause of death.
Yet hunger is endemic among the country's 500 million poor. The government is drafting a Food Security Act that promises to expand subsidised wheat and rice well beyond the current 30 percent of the population in a country that is home to 40 percent of the world's malnourished children.
That could mean India spending about $25 billion a year on providing cheap food or about 9 percent of total spending this year -- more than four times the expenditure on healthcare.
While the farm sector is slowly diversifying, it is a declining contributor to growth, despite providing a living to more than half the country's workforce.
About 600 million are dependent on farming -- half the population of 1.2 billion -- even though agriculture makes up only 14.6 percent of the economy and has been declining from 30 percent a decade ago.
A severe drought meant no growth for the sector in 2009-10 and last year it missed its 4 percent target for expansion, officials said, even as the overall economy powered ahead with 8.5 percent growth.
The average size of farms in India is a mere 1.33 hectares -- about the size of two soccer pitches -- and that figure has been steadily declining.
Farmers are finding it ever more difficult to make ends meet. The introduction of high-yielding seed varieties and increased use of fertilisers and irrigation spawned the Green Revolution in the 1960s that allowed India to become self-sufficient in grains. But experts say agriculture innovation and efficiency has stalled in recent years and farmers are getting squeezed by rising costs and inefficient agronomy.
Since the mid-1990s, an estimated 150,000 small farmers have committed suicide, according to the Center for Human Rights and Global Justice at New York University, most of them over debts.
Increasingly, voices in government and among experts are calling for a different approach, one that curbs subsidy spending, tackles inflation and boosts agricultural production of higher-value foods.
CUT SAFETY NETS
Ashok Gulati is a recent recruit to the government's inner circle from the world of research. His white hair and beard marked him out at conferences when he worked for IFPRI in New Delhi.
Now as chairman of the government's commission on farm prices and costs he has moved, as he puts it, from talking a lot with hardly anyone listening to being heard every time he speaks.
Gulati says too much money is going into safety nets such as subsidies and minimum wages when the government should be investing more to boost agricultural growth and innovation.
Agriculture ministry plans to invest about $4.8 billion in 2011-12.
"I would say you should have 70 percent of resources for growth and 30 percent for welfare objectives, but it's the other way around," Gulati says.
The World Bank has criticised the subsidies as highly inefficient. But they have powerful political supporters, especially Sonia Gandhi , president of the ruling Congress Party, whose vote bank has long been in rural areas.
Gulati also favours modernising distribution networks. Supply chains should be shortened, by making it easier for retailers and food processors to buy direct from farmers.
Although many states now allow retailers to do this outside the regulated local markets known as mandi, in practice poor infrastructure makes that difficult.
COLD STORAGE
Ganpat Chowdhary, 45, is a trader at a mandi in Pune. Surrounded by piles of rose and pale green mangoes sweating in the fierce summer sun, he has his own problems -- the perishable nature of his products.
About 30 percent of fruit and vegetable production goes to waste. Summer temperatures which regularly top 40 degrees Celsius (104 F) also mean fruit stored without chilling can ripen overnight.
Temperature-controlled warehouses are sprouting up across India but are mostly small-scale private enterprises.
"We are also keen to set up a cold storage facility," Chowdhary says. "It's essential, as damage levels are very high in fruits."
The National Horticulture Board's Kumar says wastage can be trimmed by increasing the amount of cold storage facilities available.
"We need good infrastructure to collect and aggregate farm goods produced in remote areas," he said. "They need to be delivered to consumers as early as possible.
Chowdhary, who's been in the fruit business for the past two decades, has a different idea.
"In the last four to five years, sales of fruit have risen by 25-30 percent. The next stage for us is to go back to the farm and process fruits."
That way he could sell direct to the supermarkets.
SUPERMARKET SUPPLY CHAINS
Devendra Chawla is showing off his display of chutney jars at a branch of a Big Bazaar supermarket in an expensive South Delhi neighbourhood.
People are increasingly heading to air-conditioned stores like this, where aisles are packed with choice instead of the tiny mom-n-pop stores where items are lifted off dusty shelves offering just one or two brands of essential groceries.
Chawla says Big Bazaar's size and presence across India allows them to buy from both big distributors and local suppliers.
He sees huge potential for those who get it right. "If the country is growing by 8 to 9 percent, incomes will increase and I think food as a category will get developed," he says.
"The market is so huge that it can absorb many more (retail) brands," says the clean-shaven Chawla, sporting the intercontinental look of open-necked check shirt and chinos .
"The supply chain and cold storage are also getting developed, so I think for the country and for our company, food is a big bet. It's huge."
But the government needs to invest much more in distribution infrastructure, he said.
"If we can develop good infrastructure and then supply chains and cold storage, I think that can make a lot of difference to the country."
India's supply chains are fragmented and often involve several layers of middlemen between tractor and table.
Its road system is clogged and underdeveloped, while railway freight turnaround times are slow with limited availability of refrigerated freight vans. Cold storage of about 24 million tonnes is woefully inadequate for the world's second-biggest producer of fruit and vegetables. All of this means availability of fresh produce is highly regionalised.
It's not unusual to see wooden flatbed carts loaded with vegetables and fruits right on the doorstep even in big cities -- very convenient for shoppers but it does increase the mileage and moves for produce and raising the chance of damage.
Back in Shivthar (Shiva's ground), transportation is also on Sable's mind as his daughter takes the evening's milk from their cow in a metal churn up to the end of the road for collection.
He says he'd like to sell to retail food chains because they offer higher prices, but it's hard to deal with them directly.
"It's a headache to arrange transport according to their needs. I prefer to sell to wholesalers. They buy from the farm gate, so I don't need to worry about the transportation delay and wastage," he says.
Moneycontrol » News » General News » Current Affairs 'SC appointed SIT will lend credibility to govt panels'Published on Mon, Jul 04, 2011 at 21:00 | Source : CNBC-TV18Updated at Mon, Jul 04, 2011 at 22:00 All-New Fiesta Revealed India.Ford.com/All-NewFiesta Premium Sedan with Cruise Control &Advanced Blue-tooth Voice Controls. Ads by Google Share    The Supreme Court recently went out of its way to appoint a two-member Special Investigation Team (SIT) to probe the black money issue. Criticising the government for its shoddy work, it ruled that the new team will take over and the existing two panels who are already investigating the matter, will become a part of the SIT. Former apex court judge BP Jeevan Reddy is to head to the team. Lawyer and former additional solicitor general, KTS Tulsi joins CNBC-TV18 to give a better perspective to the move. Below is the verbatim transcript. Also watch the accompanying video Q: Is it unusual for the Supreme Court to have gotten into this matter in the manner in which it has because there are already two panels that have been looking into this issue driven by the finance ministry, and now you have the Supreme Court saying those will be subsumed, this matter will now be probed by an SIT. Can you recall an instance of this where the Supreme Court has in a sense, apart from the 2G matter, gotten involved in such a direct fashion as far as an economic issue is concerned? A: No, but this issue is one of an unprecedented nature. We are dealing with USD 1.4 trillion of the money which has been deposited by Indians in Swiss Bank or the other banks. The total deposits in the Swiss Banks are itself to the tune of about USD 2.5 trillion. That is more than 60% of the total deposits in the US that rests in the Swiss Banks. The point is that this case is very complex, it's a question of a multi-tax avoidance treaties and bilateral treaties. There is the organization of economic corporation and also the UN initiative and that of the World Bank, which is called Return of Illicit Assets Act. Then, there is stolen assets recovery initiative. All these initiatives are taking place, but no one is showing… (interrupted by anchor). Q: I agree with everything that you are saying that this is a very complex matter. There are treaties involved, there are bilateral agreements involved and so on and so forth. But the point is that isn't the signal that the Supreme Court descending out seems to suggest that the government is not equipped to deal with business appropriately? A: No, not necessarily. In fact it is the same committee under the revenue secretary. The revenue secretary as committee head, the director of CBI, director of enforcement directorate, CBDT, director general of revenue intelligence, then, the director general of Narcotics, director general of foreign intelligence office, and the joint secretary of foreign trade, all these are the persons who will now assist or help the committee. The all learned judges of the Supreme Court have such impeccable reputation that it will carry far greater credibility for whatever may be the efforts that are reported to them because in the country, in the last few years, we have noticed a very partisan attitude across the political spectrum. It has give out an impression as if the government is not doing enough. Also read: No reaction to SC order on black money issue: Govt Q: Doesn't this lead to a dangerous precedence? The message that seems to be coming through this is that you are undermining the bureaucracy and the government. You are saying - the Supreme Court judges have an impeccable track record. In a sense are you trying to suggest that the bureaucrat's record or credibility is in question - that they cannot handle such complex matters? A: It's not in question. The question is only that the partisan role that is being played by our political parties, where they fail to rise above partisan levels, and look at the problem from the national perspective, from the perspective where nations reputation and relations with foreign states are involved. Even in the United States, when in Florida Court, the case was filed against UBS and the bank agreed to give the names of the 4000 Americans' wealthy depositors, still the Swiss Parliament revoked that agreement and said that we would rather pay the fine and not compromise the secrecy laws on which the banking industry rests in that country. It's not easy. Our domestic laws are not applicable to other countries. Other countries are also sovereign and they have their own laws. It's a difficult situation. After 9/11, the world is trying to come around that when there are offences involved you must reveal information. Q: What recourse does the government have? Can the government for instance approach a constitutional bench? Do you think that would be appropriate for the government to do at this stage and do you think that the government is likely to exercise that option? A: No, if the government is doing all that it can, it will place everything that it is doing before the committee constituted by the Supreme Court. The committee, if it is satisfied, it will carry much greater credibility with the people, with the media, with even the politicians across the spectrum. So therefore, I think it is a good step, where consensus can be built on this issue that the government is doing all that it can and we can't go against the treaties and bilateral obligations which we have created. We can't go against the foreign international law, we can't go against the other countries' domestic laws. If we can get information only for the purpose or recovery of tax and, we continue to say that no, this is corruption, therefore a crime, then it first falls outside the bounds of those treaties and therefore, at least when the committee which is headed by eminent judges of the Supreme Court when it also realizes that there are limitations to what the government can do, I am sure it will create a greater consensus amongst the people. Tags: Supreme Court, Special Investigation Team, black money, Swiss Bank, World Bank, Return of Illicit Assets Act, enforcement directorate, revenue secretary, political spectrum, Florida Court, UBS |
*http://www.moneycontrol.com/news/current-affairs/39sc-appointed-sit-will-lend-credibility-to-govt-panels39_562548.html
Any further hike in interest rate will kill industry: CII
Industry body CII today cautioned against any further hike in interest rates, saying it would further hamper the growth prospects of the country and "kill" the industry."Any further increase (in interest rates) will kill the industry.. the supply and demand side should be addressed...", CII President B Muthuraman told reporters here.
Stating that the solution was not only in changing the monetary policy by the Reserve Bank, he said issues like demand and supply side needed to be addressed first.
Leading industrialist and Bajaj Auto Chairman Rahul Bajaj, who was also in city, echoed similar views saying any further hike in interest rates would affect the fixed income and poorer sections of the society besides the industry.
"In the last 15 months, RBI has increased the basis points by 10 times totalling to 275 basis points. But what happend to inflation"", Bajaj asked referring to the apex bank's action to contain the price spiral.
He said RBI's move would only affect the demand which would further lead to decrease in flow of investments into the country.
"If India has to grow like other countries, then demand has to increase and because of that investment will also increase," he said.
The tightening of interest rates was the whole problem of growth and inflation. "The industry was the worst hit and ultimately crazy inflation will affect the industry's growth..by increasing the interest rates, we are increasing the cost to the customer which is artificially containing demand," he said.
On June 16, the Reserve Bank raised the key short-term lending and borrowing rates by 25 basis points for the 10th time since March, 2010.
In May, the country's inflation stood at 9.06% while food inflation as measured by the Wholesale Price Index was at 7.78%.
04/07/2011
I paid for watching Wimbledon, says tennis fan Krishna
External Affairs Minister S.M. Krishna Monday clarified that he had paid for the two extra days he spent in London last week to watch a Wimbledon match."I love watching tennis. What's wrong with it," Krishna retorted when asked by reporters whether he overstayed in London to watch the Wimbledon men's singles semifinal between Novak Djokovic and Jo-Wilfried Tsonga on July 1.
"I paid for the expenses for the subsequent part of the trip," Krishna told reporters when asked about a media report that he had stayed at the luxurious Bentley Hotel run by the Waldorf Astoria chain on government expense after the official leg of his five-day visit to Britain, during which he held talks with British Foreign Secretary William Hague.
The talks ended on Thursday, but according to some reports, Krishna stayed back for the Wimbledon match.
"There is nothing unusual. I myself have been a tennis player," said Krishna, adding he is the president of the Karnataka Lawn Tennis Association and the vice president of the All India Tennis Association.
The controversy erupted ahead of a cabinet reshuffle that is expected later this month. Analysts point out that the controversy could not have come at a worse time for Krishna as it may give a handle to his opponents who want him shifted from the external affairs ministry.
Source: IANS
04/07/2011
Telangana cyclone hits AP, Congress
Crisis in Andhra as Telangana MPs, MLAs quit enmasse; 48-hr shutdown from Tuesday
Congress legislators headed by K Jana Reddy address the media after submitting their resignation letters to Dy.Speaker Bhatti Vikramarka in Hyderabad on Monday. PTI
New Delhi/Hyderabad: The movement for separate statehood to Telangana region of Andhra Pradesh entered a crucial phase Monday with the mass resignations of MPs, state ministers and legislators of the Congress and Telugu Desam Party (TDP) while the Joint Action Committee (JAC) spearheading the movement called for a 48-hour shutdown beginning Tuesday.
On a day of fast-paced developments, seven MPs of the Congress party from the region submitted their resignations to Lok Sabha speaker Meira Kumar while Rajya Sabha member K. Keshava Rao gave his resignation to house chairman Hamid Ansari.
In an attempt to build pressure on the party-led United Progressive Alliance government to concede their demand for creation of a separate Telangana state, seven out of 12 Lok Sabha members of Congress submitted their resignations while both members of TDP said they would also put in their papers.
Karimnagar MP Ponnam Prabhakar told reporters that two other Lok Sabha members, Madhu Goud Yaskhi and Suresh Shetkar, have faxed their resignations.
Another MP Sarvey Satyanarayana has refused to resign saying he would do so only after Union Petroleum Minister S. Jaipal Reddy quits. MP from Secunderabad Anjan Kumar Yadav is also reluctant to resign.
In Hyderabad, 79 members of the assembly including 11 ministers submitted their resignations, plunging the state into a crisis.
Four rebel TDP legislators had quit Sunday.
Suspended TDP MLA Nagam Janardhan Reddy(fourth from left) along with TRS President K Chandrasekhar Rao, MP Vijaya Shanty and other party leaders during his 48-hour hunger strike in Hyderabad on Monday. PTI
Those who resigned Monday include all 33 of TDP, 40 of Congress and two of Praja Rajyam Party (PRP).
Deputy Chief Minister Damodar Raja Narasimha and three other ministers have not resigned. The ministers who submitted their resignations include Home Minister Sabita Indra Reddy.
While five ministers personally submitted their resignations to deputy speaker Mallu Bhatti Vikramarka, six others including the home minister sent their papers.
In all, 10 legislators of the Congress party from Telangana are yet to submit their resignations.
Speaker N. Manohar, who is in the US, will take a decision on the resignations after his return. The resignations, if accepted, may reduce the Congress government to minority.
In the 294-member assembly, Congress has 174 members, including 18 from the PRP, which merged with the ruling party recently.
Telangana accounts for 119 legislators in the 294-member assembly. The Congress has 52 members (including two of PRP), TDP 37 and Telangana Rashtra Samithi (TRS) 11.
Senior Minister K. Jana Reddy told reporters that their resignations were not aimed at creating a constitutional or political crisis but to achieve a separate state in tune with the aspirations of the people.
TDP Telangana Forum members (legislators) staging a Protest after paying tributes to Martyrs demanding introduction of Telengana separate state bill in parliamentat Telengana Memorial at Gun Park in Hyderabad on Monday.PTI
"Today is United States' Independence Day and we hope today will also become Telangana's Independence Day," the minister said outside the assembly building.
Jana Reddy, who later left for Delhi for talks with the central leadership, claimed that their fight was for self-rule and self-respect of the Telangana region.
Twelve Congress members of the legislative council and three of TDP have also submitted their resignations to council chairperson K. Chakrapani.
The legislators said the resignations were aimed at pressurising the central government to carve out a separate Telangana state as promised by it on Dec 9, 2009.
The Congress leaders resigned despite the efforts of the central and state leadership of the party over last three days to dissuade them.
Union Home Minister P. Chidambaram told reporters in New Delhi that a final decision on the "extremely sensitive and complex" issue was yet to be taken.
"The central government's view will be made known after the consultation process is over. We have to bring everyone on board. There is a strong view of a large number of people. We are yet to take a final decision," Chidambaram told reporters.
TDP Telangana Forum members (legislators) with TDP chief Nara Chandrababu Naidu in Hyderabad on Monday. PTI
"This is an extremely sensitive and complex issue. We will try to expedite... One should have understanding and patience. Especially, the media should have understanding and patience," Chidambaram said.
Chidambaram said the government would convene an all-party meeting immediately after the views of all parties are known. Two of the parties have not yet finalised their views on the separate statehood issue, he said.
However, his statement evoked sharp reaction not just from TRS but also from his own party ranks. MP Manda Jagannatham termed his remarks incomprehensible.
Alleging that the centre is making light of the mass resignations, the JAC, which is spearheading the Telangana movement, called for a 48-hour Telangana shutdown beginning Tuesday.
TRS chief K. Chandrasekhara Rao criticized Chidambaram for reacting to the resignations in a casual manner. He announced that the protest in the region would continue till the central government agrees to initiate the process for formation of separate state.
JAC also called for rail blockade in Telangana on July 8 and 9 and cook-and-eat protest on roads on July 10.
Source: IANS
04/07/2011
Lokpal meet ends with a one-liner
No consensus on bill, only point of agreement was on the need to have a strong Lokpal
New Delhi: An all-party meet on Lokpal on Sunday evening failed to reach a consensus on any of the crucial aspects of the proposed Bill -- neither on how the Lokpal should be appointed, nor on where his writ should run and where it should not.
This means the issue of corruption in high places -- and even elsewhere in government, the bureaucracy and the state apparatus -- will be the central point of discussion and agitation in the forthcoming monsoon session of Parliament.
The meeting did not even discuss the legislation and its clauses. Its first objection was that the government had brought two sets of proposals -- its own and those of civil society -- before elected Members of Parliament. This was unacceptable.
"We want a strong Lokpal...bring a government bill, send it to the standing committee so that all parties can give a point of view," said Leader of Opposition Sushma Swaraj.
She was reacting to the fact that two sets of proposals -- one from the government and the other from the Anna Hazare-led social activists -- had been presented. The Bharatiya Janata Party (BJP) said it was not the Opposition's job to create a consensus between the government and sundry groups of activists. It wanted the government to put out one comprehensive draft.
The only thing that all parties agreed on was the need to have a strong Lokpal. A terse resolution issued at the end of the meeting said: "The all-party meeting agreed that the government should bring before the next session of Parliament a strong and effective Lokpal Bill following the established procedures."
The absence of a consensus at Sunday's meeting means Hazare's fast, which he plans to resume in the middle of August, will be on course where he will charge the government with attempting to shield and let off those engaged in corruption.
In fact, in his opening remarks, Prime Minister Manmohan Singh took the unusual step for conceding that there was a need to stem corruption in high places and that while there were several laws in place to check corruption, an institutional arrangement was needed.
However, he put in two caveats: That the Lokpal has to work in harmony with other institutions and laws; and it has to function within the framework of basic structure of Constitution.
This continued to be the problem, although today's meeting did not discuss them, except the Dravida Munnetra Kazhagam, which asserted that both the PM and the Judiciary must come under the purview of the Lokpal).
The stumbling blocks are not just whether the PM or the higher judiciary should be brought under the Lokpal's supervision (both propositions violative of the constitution and requiring an amendment to the basic structure of the Constitution) but also nitty gritties like bringing the Central Bureau of Investigation's anti-corruption wing, MPs' conduct inside Parliament, and the lower bureaucracy across the country within the ambit of Lokpal, besides the mode of financing and the panel for selecting the ombudsman.
The meeting was also attended by Congress President Sonia Gandhi, Union ministers Pranab Mukherjee, P Chidambaram, Kapil Sibal, M Veerappa Moily, Salman Khurshid and Pawan Kumar Bansal. Agriculture Minister Sharad Pawar and Heavy Industries Minister Praful Patel (both NCP), and T R Baalu (DMK) were among the UPA constituents to attend the deliberations.
The Opposition was represented by BJP veteran L K Advani, Leaders of Opposition Sushma Swaraj (Lok Sabha) and Arun Jaitley (Rajya Sabha), NDA Convenor and JD(U) chief Sharad Yadav, Sitaram Yechury (CPI-M), Gurudas Dasgupta and D Raja (both CPI) and Lalu Prasad (RJD), among others.
Source: Business Standard
03/07/2011
Maid in Strauss-Kahn case working as prostitute: report
The Guinean maid, who accused former IMF chief Dominique Strauss-Kahn of sexual assault, was also working as a prostitute, a media report has claimed.
'The New York Post' reported that the 32-year-old maid at the Sofitel Hotel was doing double duty as a prostitute, collecting cash on the side from male guests.
"There is information... of her getting extraordinary tips, if you know what I mean," a source close to the defence investigation told The Post.
The woman also had "a lot of her expenses -- hair braiding, salon expenses -- paid for by men not related to her," the source said.
Strauss-Kahn, 62, was accused of forcing the maid at the Sofitel hotel in Manhattan to perform oral sex. He was taken into custody a few minutes before his Air France flight departed for Paris in May. Strauss-Kahn has claimed that their sexual encounter was consensual.
The source said that immigrants from Guinea had been targeted by the maid. "We have people who have been victimized, who have claimed she ripped them off. Nice working people from her neighborhood," a source said.
This week the case against Strauss-Kahn unraveled quickly as it emerged the maid, who accused him, has been lying and has criminal connections.
On Friday, Strauss-Kahn was released from house arrest and is now allowed to travel inside the US. While the case against him has been weakened, the charges still stand.
Source: PTI
04/07/2011
Govt Inc alone matches India Inc's top-10 in market wealth
New Delhi: Combined market valuation of all listed government entities grown to close to Rs 20,000,000 crore, according to analysis of data available with BSE, NSE.
Tatas and Ambanis may be known for being among the country's wealthiest groups, but it takes as many as 10 of them to match the stock market wealth of the conglomerate comprising of various government companies.
The combined market valuation of all listed government entities has grown to close to Rs 20,000,000 crore, according to an analysis of data available with the two bourses, BSE and NSE.
In comparison, all the companies belonging to the country's 10 most valued private business groups together command a cumulative market valuation of this magnitude.
This makes the group of the government companies the most valued conglomerate in the country with a size over four times of the most valued private business house Tatas.
Among the private corporate groups, the Ratan Tata-led salt-to-software conglomerate is currently the largest with a market wealth of Rs 4,47,351 crore, followed by Mukesh Ambani- led Reliance group at Rs 283,000 crore, Deepak Parekh-led HDFC group (Rs 221,000 crore) and Infosys (Rs 168,500 crore).
These are followed by tobacco-to-FMCG conglomerate ITC (Rs 156,000 crore), retail-to-telecom giant Bharti group (Rs 145,600 crore), Anil Agarwal-led Vedanta group (Rs 141,200 crore), Adani Group (Rs 137,400 crore), ICICI Bank (Rs 126,00 crore) and Aditya Birla group (Rs 117,500 crore).
Together, these 10 most valued private business houses command a cumulative stock market valuation of Rs 19,43,000 crore, based on the value of all their 60 listed entities.
In comparison, there are close to 100 listed government entities in the country, including 50 central public sector enterprises and 28 public sector banks, while the rest are state-level public sector companies and the companies promoted by various PSUs.
There are more than 100 other unlisted public sector companies, including behemoths like BSNL and Air India.
The combined market valuation of the 100 listed companies have grown to Rs 19,35,000 crore as on July 1, 2011, which is only a shade below the cumulative figure for 10 largest private sector business houses.
It is the strong investor appetite for public sector companies that makes them such a strong group and this is evident from close to Rs 1,00,000 crore garnered by the government through disinvestment in various PSUs.
The government has set a disinvestment target of Rs 40,000 crore for the current fiscal also, while it aims to garner Rs 95,000 crore in three financial years.
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Experts said that the government companies have always remained a good investment proposition for investors, barring a few exceptions, while the private companies, despite belonging to large groups, generally pass through both good and bad phases.
For example, the experts pointed out, Tatas have been doing good in past few months, but Reliance group of companies, as also some others, have not been able to perform well.
A year ago, Mukesh Ambani-led Reliance group was the country's most valued business house, ahead of Tatas, but the scenario has reversed currently.
On the other hand, Anil Ambani group (ADAG), which was third-largest after Mukesh-led Reliance group and Tatas with a market cap of Rs 1,32,600 crore as on June 30, 2010, is not even in top-ten now and is currently ranked 14th with a market valuation of Rs 82,500 crore. Mukesh Ambani group has also lost about Rs 75,000 crore of its market cap in past one year, while Tatas have gained over Rs 1,20,000 crore.
Among other groups, Sunil Mittal-led Bharti group has gained close to Rs 45,000 crore, while that of Vedanta group has grown by only about Rs 10,000 crore.
Vedanta group's market cap would rise further by about Rs 62,000 crore once it completes the Cairn India acquisition.
Among the government companies, Coal India is the most valued with a stand-alone market cap of Rs 242,600 crore, followed by ONGC (Rs 236,400 crore), SBI (Rs 153,800 crore), NTPC (Rs 153,400 crore), NMDC (Rs 104,500 crore) and BHEL (Rs 100,350 crore).
Other large public sector companies include MMTC, Indian Oil, GAIL, SAIL,
PowerGrid, PNB, Bank of Baroda, Oil India, NHPC and PFC.
All the government companies together account for nearly 30 per cent of the country's total stock market wealth, while there are four public sector companies (Coal India, ONGC, SBI and NTPC) among the country's 10 most valued entities.
Source: PTI
04/07/2011
It's not jobless growth, show official data
New Delhi: Recent government data do not show that the Indian economy has experienced 'jobless growth'.Claiming that there has been a 'gross misrepresentation' of the National Sample Survey Organisation (NSSO) data, Planning Commission Deputy Chairman Montek Singh Ahluwalia said, "We need to have a better understanding of statistics to correctly interpret statistical findings like the NSSO employment survey."
According to principal advisor with the Planning Commission and former chief statistician, Pronob Sen, there were 40-45 million more people in the age group of 15-59 between 2004-05 and 2009-10. The unemployment rate has correspondingly fallen from 2.3 per cent to 2 per cent of the labour force.
"It means the additional people in the working-age population were given jobs and some past unemployed people also got jobs... (They) may not be (getting) remunerative wages," Sen told Business Standard.
The unemployment rate ('usual status activity' in technical jargon) is computed, as the number of people in the age group of 15-59 who are willing to work but did not obtain, paid employment for at least 180 days during the past 365 days. The latest NSSO survey was conducted between July 2009 and June 2010 and included a sample of over 100,000 households.
"The usual status activity is a poor indicator of the employment rate, but is a reliable indicator when it comes to knowing whether workers are finding jobs or not. For example, between 2004-05 and 2009-10, the working-age population grew by an average of two per cent per year, which is about 8-9 million individuals. They all got some jobs, as did few people previously unemployed," said Sen.
What then explains the decline in the Worker's Population Ratio (WPR) from 42 per cent to 39.2 per cent during this period? Sen ascribes this decline to the rise in the ratio of enrolment in post-secondary school classes. Staying longer in schools delays the entry into the workforce because students are not really looking for work during this period. Sen's explanation is enthusiastically corroborated by Chief Statistician T C A Anant, "A declining WPR is a positive indicator as it shows an increase in the number opting for higher education...which means we will have a skilled workforce in the future".
This decline is also reflected in the declining Labour force Participation Rate (LFPR), a measure of the number of working-age population either employed or willing to work. The three percentage point fall in LFPR between 2004-05 and 2009-10 could have to do with more than mere structural factors. For example, rural women working in agriculture or animal husbandry consider their contributions simply as part of household work and not employment. This probably results in an underestimation of the actual size of the labour market, a problem that can be largely overcome by better training and cultural sensitization of the survey staff to ask the right follow up questions.
Sen recalled that when he was chief statistician and secretary in the Ministry of Statistics and Programme Implementation, there were 1,200-1,300 vacancies for the survey staff.
"As many as 900 contract investigators were hired. They don't have enough experience to ask follow up questions."
Source: Business Standard
04/07/2011
Jairam's sudden clearance rush on coal
New Delhi: Union environment minister Jairam Ramesh, often criticised for his controversial 'no-go' policy on mining in foreted areas, has been on a clearance spree of late. The heightened activity on permissions to power and mining projects, which had been stuck for long, coincides with the run-up to a likely reshuffle of the council of ministers this month.In the past week, the minister has cleared at least nine coal blocks earlier caught in the go/no-go maze since 2009. The blocks were allotted to NTPC, the Oriss Ultra Mega Power Project (UMPP), Orissa Power Generation Corporation (OPGC) and Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL), among others.
On June 23, Ramesh had given approval to opening the Tara, Parsa East and Kante Basan blocks in the Hasdeo-Arand forest region of Chhattisgarh. The blocks were opened despite the Forest Advisory Committee (FAC) recommending against it.
The ministry of coal had awarded the Parsa East and Kente Basan coal blocks to RRVUNL to feed two thermal power projects in Rajasthan. The Adani Group and RRVUNL had formed a joint venture firm, Parsa Kente Collieries Ltd, to develop these mines. Tara was allotted to Chhattisgarh Mineral Development Corporation.
On June 29, the environment ministry gave clearance to another six coal blocks in Orissa, of which five were in the no-go area. Of these, three (Meenakshi-A, Meenakshi-B and Meenakshi Dipside) have been allocated to the 4,000 Mw UMPP. Two blocks (Manoharpur and Manoharpur Dipside) were allocated to the 1,320 Mw power plant of OPGC and one (Dulanga) to NTPC's 1,600 Mw unit. These six cleared blocks could free generation of 6,000 Mw.
The state governments involved -- mainly Rajasthan, Orissa and Chhattisgarh -- have been persistently following the issue with the ministry and also the Prime Minister for several months, citing development concerns.
Incidentally, while clearing the coal blocks in Chhattisgarh, minister Ramesh said his decision came from the "imperative to sustain the momentum generated in the 11th Plan in terms of capacity addition...I have necessarily to keep the broader development picture in mind and balance out different objectives and considerations."
During the 11th Plan (2007-2012), 52,000 Mw is expected to be added, as compared to 21,000 Mw in the previous Plan period. Of this, 42,000 Mw is expected to be coal-based capacity, as compared to 15,000 Mw in the 10th Plan period.
The environment ministry started to classify the country's forests as 'Go' and 'No-Go' areas from 2009. The categorisation specifies regions where coal mining could be permitted only after stringent forest clearances were obtained. The decision came under severe criticism from the power ministry, with several projects stuck due to the classification. The outcome was formation of a group of ministers (GoM) this February to sort out the tussles on the issue. The 12-member GoM has met thrice -- in February, April and June -- but is yet to reach any consensus.
Coal is a critical input for fuelling growth of major infrastructure sectors such as power, steel and cement. Any irreversible slump in coal production, thus, directly affects the country's gross domestic product (GDP) growth. In all, 203 blocks were in the no-go areas. The output from these can generate around 130,000 Mw of power per annum, says the coal ministry. The 'no go' criterion covers nine coalfields, including Singrauli, North Karanpura, Ib Valley, Mand-Raigarh, Talcher, Sohagpur, Wardha Valley, Hasdeo-Arand and West Bokaro.
Source: Business Standard
04/07/2011
Conditions for Cairn deal to cost govt Rs 5,000 crore
New Delhi: ONGC's return on investment becomes positive after govt makes Barmer block royalty cost-recoverable.The government's income from Cairn India's Barmer field is estimated to fall 9 per cent to Rs 52,757 crore after the royalty from the block is made cost-recoverable.
This is one of the conditions the government has put to clear Vedanta Resources' deal to buy a majority stake in Cairn India.
The government's income from a gas/oil block is known as profit petroleum. "The government's share of profit petroleum is estimated to fall by about Rs 5,000 crore if the royalty is made cost-recoverable," said a senior government official.
He, however, added that if the entire royalty was paid by ONGC, Cairn's partner in the Barmer block, the government would have had to reimburse the full amount, incurring an expenditure of Rs 12,600 crore. "In a way, this is a saving for the government," he said.
While making a case for approval to the deal, Cairn had time and again impressed upon the government that making the royalty payment cost-recoverable would hit it hard as the amount went to the state government. The Centre got its share in the form of profit petroleum.
While ONGC, as a licensee, was obliged to bear the full royalty burden, the accounting procedure in the production sharing contract said the royalty paid by ONGC was cost-recoverable from the common pool of revenue before profit petroleum was calculated. The issue surfaced after Cairn Energy announced the sale of a majority stake in Cairn India to Vedanta Resources.
ONGC insisted that the royalty should be treated as cost-recoverable. In line with ONGC's suggestion, the government has given conditional clearance to the deal, but has decided that the royalty will be treated as cost-recoverable.
If Cairn and Vedanta accept this condition, ONGC will continue to pay 100 per cent royalty despite holding a mere 30 per cent stake in the block, but will be able to cost-recover the amount. ONGC's return on Barmer investment would have been negative if it was to bear the full royalty burden. Since royalty has been made cost-recoverable, the net present value of ONGC's investment in the project has become positive. The royalty is 16.67 per cent, assuming the crude oil price of $70 per barrel. Over the full life cycle of the block, the amount is estimated to be Rs 18,000 crore.
Barmer is the largest onshore oil block in the country. Crude oil production from Mangala, the main field in Barmer, started in August 2009. The field produces 125,000 barrels crude oil per day and is expected to produce 175,000 barrels at its peak.
Source: Business Standard
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Categorisation of Dalits droppedNEW DELHI: The move to divide Dalits into sub-castes is dumped into cold storage. The Centre is apprehensive of the political consequences of the proposal which has polarized the volatile community along subcastes. The social justice ministry has recalled its earlier proposal to amend the Constitution to facilitate division of the SC list as per wishes of some states. It will now seek the views of states on the entire issue. This is set to put off the sensitive move by a few years. Categorisation of SCs was mooted as a solution to the grievance that powerful Dalit communities had cornered reservation benefits disproportionately to their population. The division of SCs into sub-groups, with each bloc assigned a fraction of the 15% Dalit quota, would ensure better distribution of benefits, it was argued. The Social Justice ministry has proposed that the Centre consult the states and then hold discussions with political parties. Supreme Court No: This is an about-turn from the earlier proposal which said that Article 341 of the Constitution should be amended to enable states to seek division of the SC list in their territory. The proposal said a state assembly could pass a resolution seeking categorisation and send it to the Centre for Parliament's assent. A five-judge bench of the Supreme Court had in 2004 struck down categorisation in AP, forcing the state to ask the Centre for a constitutional amendment to overrule the court order. For an issue which has polarized the SCs into stronger and weaker blocs across the country, the Centre now wants to tread carefully lest it be caught between the warring factions. Categorisation is seen to harm stronger SCs like Chamars in the north and Malas in Andhra Pradesh because they enjoy claim over the entire 15% quota for Dalits. The ncategorisation would limit the bloc to a fraction of the 15% quota earmarked for them. The National Commission for SCs, chaired by PL Punia, has also been strongly opposed the move to amend the Constitution. DV reference CATEGORISATION DV Aug.16, 2009 p.10: "DV predictions of caste wars will come true - soon". DV March 1, 2009 p.21: "Caste identity & Mahar movement". DV Feb.1, 2009 p.11: "Caste identity graduates into caste armies: DV theory takes big leap" & p. 12: "Centre upholds subcaste-wise quota". DV Edit June 16, 2008: "Lingayat - Vokkaliga caste war in Karnataka election trampls SC/ST/BCs & Muslims". DV April 1, 2008 p.20: "Madigas support caste identity". DV Oct.16, 2006 p. 8: "Categorisation: DV's time-tested argument stands vindicated". DV Jan.1, 2004 p.12: "Karnataka nod for categorisation?" DV Feb.16, 2002 p.8: "Karnataka's largest Dalit organisation supports categorisation demand". DV Jan.16, 2002 p.23: "Caste identity comes to Karnataka". DV Dec.1, 2000 p.7: "DV proves right on categorisation of Dalit reservations". DV Feb.16, 2001: "AP categorisation act stayed". DV Feb.1, 2001 p.11: "Karnataka Dalits support categorisation".
Ramdev & Anna Hazare are ManuwadisPALASH BISWAS, CACUTTA Zionist Brahminical hegemony and LPG mafia stand united to support baba Ramdev`s JIHAD for MANUSMRITI Rule. Neither Ramdev nor Anna Hazaare and the "Civil Society" ever did oppose economic reforms and LPG mafia rule. They have nothing against free market of corporate imperialism where from Infinite corruption is generated. They may not utter a single word against corporate lobbying and rather they support the killing of constitution, democratic Institutions and democracy itself. They had been active to Manipulate mandate in last elections to see UPA and its partners romp home thanks to mobilization of Hindutva Forces in support of economic ethnic cleansing and exclusion In Gangtok.
Yet another bogus Gandhi fools Those willing to be fooledThere is already enough information out there written by honest journalists about Anna Hazare. Nobody is born with knowledge, pre-embedded in their brains when they are in their mother's womb. Anybody can find out all this stuff -- even non-journalists. If you are literate, know English and have access to Google, you have access to all the information in the world. What is the need to wait for anybody to "enlighten" you? Is it not your own responsibility to not fall into anybody's trap? Including that manufactured by the media and politicians? When in doubt, simply find out. Cultivate a skeptical attitude. That's all that is needed. No need to blindly follow anything including the corporate and politician-controlled media. No need to trust any journalists, whorenalists or presstitutes either. You have a brain and Google. Simply keep it open and use it. Like the Nike slogan goes "Just Do It". Just because you don't get nectar, kindly do not go and swallow poison. Anyway, permit me to bring to your notice yet another piece on Anna Hazare... By the way, I got it simply by using Google. Manu Joseph became a journalist because he didn't have to crack any objective-type entrance exam to be one. His first novel, Serious Men, is the winner of The Hindu Best Fiction Award. It is one of Huffington Post's 10 Best Books of 2010, and was shortlisted for the Man Asian Literary Prize 2010. He is the editor of Open.
Missing DV issues & Editor's healthWe have received a large number of complaints about non-receipt of three issues of DV April 16, May 1 and May 16, 2011. Yes. We have already explained about our shifting from Bangalore to Mangalore and setting up our new office. Hence we had to miss the three issues However, we have maintained the continuity, assuring the 24 fortnightly issues for each year. As it is not possible to reply to each individual inquiry, please treat this as our explanation. Nothing wrongWe have also received a large number of anxious inquiries expressing anxiety over our health. While thanking all of them for the kindness, we want to assure that our health is perfect. It was a case of minor ailment, called allergic cold because of the Bangalore climate—EDITOR
THUS SPAKE AMBEDKAR Brahmin acrobatic to suppress VedasThere is a third means adopted by the Brahmins to make the Smiritis equal if not superior to the Vedas. It is to be found in the Atri Smirti. Atri says that those who do not respect the Smiritis will be subject to curse. Atri's argument is that Brahmanyam arises only as a result of a joint study of the Sruti and Smiriti and if a person studies the Vedas only but hold the Smriti in contempt he would be immediately condemned to be born as a beast for 21 generations. Why did the Brahmins adopt such desperate means to place the Smirits on the same footing as the Sruti? What was their purpose? What was their motive? Prof. Altekar's argument that the Smiritis were given supremacy over the Vedas because they gave legal justification to customary law which was of later growth, cannot be accepted as adequate. If the case was that, there was law in the Vedic period and custom had grown later on; and if there was a conflict between the two, one could have understood the argument that the Smiritis were given predominance because they set right the conflict recognizing the progressive doctrines of the custom. This is not the case. There was no such thing as law in the Vedas. As Professor Kane points out: " All law was customary and there was no necessity to give recognition to the custom because they were recognized by the people. Secondly the smiritis cannot be said to be more progressive than the Vedas. Barring the Chathurvarna doctrine which everybody knows the Vedas except in the matter of forms of worship left society quite free to develop. What the Smiritis have done is, take out the unprogressive element in the Vedas namely the Chaturvarna theory and to propagandize it and hammer it into the heads of the people" Therefore there must be some other reason why the Brahmins gave supremacy to the Smiritis over the Vedas. The Brahminis were not content with their first acrobatics. They performed another. The Smiritis were followed in point of time by the Puranas. There are 18 Puranas and 18 Up-Puranas altogether 36. In one sense the subject matter of the Puranas is the same. They deal with the creation, preservation and destruction of the world. But in the rest of their contents they differ altogether. Some propagate the cult of Brahma, some the cult Shiva. Some the cult of Vishnu, some the cult of Vayu, some the cult of Agni, some the cult of Surya and some the cult of Goddesses and other deities. As has been noted there was a time when the Puranas were not included in the Shruthi. In later times, however, a striking change seems to have taken place. The Puranas which were considered as too profane to be included in the Shruti were given a superiority over the Vedas. The Vayu Purana says "First, of all the Shastras, the Purana was uttered by Brahma. Subsequently the Vedas issued from his mouth" The Matsya Purana not only claims priority of creation for the Puranas as against the Vedas, but also the qualities of eternity and identity with sound, which was once predicated of the Vedas alone. It Says: Pitamaha(Brahma ) first of all the immortals, took shape; then the Veda with their Angas and Upangas (appendages and minor appendages) and the various modes of their textual arrangements, were manifested. The Puranas, eternal, formed of sound, pure, extending to the length of a hundred corers of verses, was the first of the Sastras which Brahma uttered; and afterwards the Vedas, issued from his mouth; and also the Mimansa and the Nyaya with its eightfold system of proofs. The Bhagawat Purana claims equality of authority with the Vedas. It says: "(Bramharatra) declared the Purana called the Bhagavata, which stands on an equality with the Veda". The Brahma-Vaivartta Puranas has the audacity to claim superiority over the Vedas. It says: "That about which venerable sage, you have inquired, and which you desire, is all known to me the essence of the Puranas, the pre-eminent Brahma- Vaivartta, which refutes the errors of the Puranas and Upa-puranas, and the Vedas". This is the second acrobatic performed by the Brahmins in assigning priority, precedence. and authority to their sacred books. This does not complete the story of the suppression of the Vedas. The worse is yet to come. The Puranas were followed by another class of literature called Tantras. Their number is also quite formidable. Shakaracharya refers to 64 Tantras. There might be many more. (To be continued) Dr. Babasaheb Ambedkar Writings & Speeches, Vol.4, Riddles in Hinduism (p.58-59) 1987, Rs. 35. Maharashtra Govt., Manager, Govt. Central Book Depot, Near Charni Road Railway Station, Netaji Subhash Road, Bombay - 400 004.
THUS SPAKE PERIYAR What use is freedom without Self-respectWe can easily get books on these vital subjects written by experts. There are many cheap editions also written by research scholars. Ignoring this fact what is the use of searching for rice in the Sahara desert, when you have varieties of rice abundant in the grocer's shop? There are plenty of story books in the market. Our people do not read them. Why? It is because of those stories are not religious. They are not stories of divinity. They are not preaching religious sanctity. They do not disgrace the Tamil community. Those books do not subjugate us as slaves. They are not religious. They are not barbarous. That is the reason why we do worry about anything else except the religious book. The religion and god and the book concerned about them should be destroyed completely. We must efface them out of existence. We should not allow them to exist in any form. Only then we can live with self-respect. It is with this noble objective that we are for destroying all the books which are religious. We are of the firm conviction that Tamils have no salvation with these books. That is why we are for destroying them. we have not decided to do so blindly. We are aware of the price we have to pay for it. Yet we are resolute to sacrifice our utmost to destroy these books. We are determined to face any serious consequence. We are ready to lose our precious life. We are ready to undergo any difficulty for this. We are not like others, who are foolish enough to be content with the blind support for carrying on religious propaganda. We know that we can lead a carefree life and attain fame easily. We have not succumbed to such an evil. We are self-respectors. During the last 18 years, our speeches and actions are almost the same. Those who have keenly observed us and followed our activities would not find anything new. We are always wedded to one policy. Perhaps a few may misconstrue our ideals. They may feel perturbed and get angry. Any person who involves himself in public activities is bound to do something which he sincerely feels as right and good. Atleast he must show the right way for our ladies. Otherwise he must lose his life in either of the ways. So far as we are concerned, we are aware of the fate of true reformists. We know of the difficulties faced by the wisemen. We do know of what the people then valued about their genuine services. I do not want to mingle politics in our social matters. I am speaking here as a reformist and not as a politician. I am not very much enamoured of Swaraj(Freedom)? I do not attach much importence to it. My objective is whether we want Swaraj or self-respect raj. Those who are really worried about the present status of affair of the Tamillians, would definitely feel that these books are retrogative to our interest. True Tamils would deem these books as poisonous. Now you people see what Mr. MARAIMALAI ADIGALs aid. He is peerless amongst Tamil scholars. His views on Kamba Ramayana cannot be ignored. We have of course many differences of opinion with him. Adigalar is praised today and held in high esteem by the Tamil Scholars and pundits. See what he has written: "Some of the Tamil poets were very much enamoured of the propaganda by the Aryans. So they created Bharatham and Ramayanam with all sorts of unbelievable things. They made their writings familiar amongst the people whowere adoring the Aryans" . "Perum Devanar recreated Bharatham into Tamil and it has become obsolete" "Bharatham is a bundle of unbelievable things. The ancient authors in Tamil could not translate Ramayana written in the Aryan language as it was fully dumped with absurdities". The Ramayana written by the poet Kambar is an adoption of the Ramayana written in the Aryan language Sanskrit. As there were many unbelievable things in the writings of Kamabar, the Tamil scolars of the later ages were not able to reconcile with Kambar. Because Kambar wrote a false story and as Kambar was accustomed to the alien language and its culture, he has dared to adopt and strictly follow the aliens and utter lies in his work. (To be continued). Collected Works of Periyar , (pp.170to 172) (4th edn. 2007), The Periyar Self-Respect Propaganda Institution, Periyar Thidal, 50-EVK Sampath Rd., Vepery, Madras - 600 007 |
http://www.dalitvoice.org/Templates/july2011/articles.htm
Reports
Anna Hazare's Gandhian stunts to fool innocent Indians
OUR CORRESPONDENTMangalore: Take it from us, "Hindu India" can never eradicate corruption.
Why? Because the very Indian social system is corrupt. We have said it in our report in DV of Oct 16,2010
Neither the anti-corruption crusader, Anna Hazare, nor his opponents in the govt. are above corruption. Because corruption (meaning money corruption).flows from the top. It is the ruling upper castes, as the leaders of society, who taught us corruption. And that is how the whole society is today buried in corruption. There is not a single wing of the society which is free from corruption.
Hazare defends the corrupt: If the current "Khatri Sick" PM or future PMs are free from corruption, why are they afraid of including the office of the PM in LokPal Bill?
If Anna Hazare is lily white why did he defend Narendra Modi, the killer, and also the country's most corrupt CM of Karnataka? Anna Hazare is said to be a Gandhian-but it is the Muslims, Christians and Sikhs who became victims of Gandhi and his Gandhism
Dr. Ambedkar, the Father of India, called Gandhi a top class fraud in his writing and speeches.
The whole excercise on Lokpal Bill is a waste of time. The frauds on both sides are united while publicly quarreling. But they are secretly trying to take the country on a joy ride, and thereby fool all of us. This is what is happening in the current Anna Hazare's Gandhian drama.
As our memory is short-lived, we would like to remind our DV family how the whole Indian social system is corrupt by reproducing our DV report of Oct 16, 2010. "The very Indian system is corrupt".
The Very Indian System Is Corrupt
OUR CORRESPONDENTRThe fence is erected to protect the field. Now, we get the high-voltage shock that the fence itself is eating the field. This shocking revelation has come from an ex-Union Law Minister who named eight corrupt former chief justices of the Supreme Court.
That the judiciary, including the highest court, is not above suspicion is well known. Not only the judges, even the Supreme Court top lawyers.
KALMADIS CORRUPTION
Shanti Bhushan has named the corrupt CJS and many of them are Brahmins. Corruption is not the monopoly of any caste but the Bhoodevatas are leaders in this field also.The whole world is shocked by the Brahmin culprit Kalmadi's corruption in the Commonwealth Games. But we are not.
Because it is not possible in "Hindu India" to exist without being corrupt.
The problem we face in India is we always have different meaning to every act.
DEFENDING MANU'S LAW
When a person is accused of corruption, what we mean is "money corruption". But we have said in our book, India's Intellectual Desert (DSA-1999, Rs. 50) that money corruption is the last and the least dangerous of the four forms of corruption. "Intellectual corruption" is the most dangerous form of the four.A Supreme Court sitting judge recently delivered in Bangalore three lectures on a working day at Brahminical institutions on different aspects of Brahminical law. And fully defending it. When the country and its SC are governed by the constitution how could this Brahmin judge uphold the hated anti-human law of Manu?
Nobody criticised this judge's conduct in defending Manu which is more dangerous than crores of corruption.
There is yet another important side to the "corruption stories" which always get front-page publicity. Why the readers love "corruption stories", like to see corrupt fellows pictures and punished by the law of the land?
BRIBE-GIVER IS ALSO CORRUPT
An official, judge or a minister takes money. And this is called corruption.But did we ever think that the "corrupt fellow" took the bribe because it was willingly given to him by the interested party? Then why don't we criticise the bribe-giver? Without the bribe-giver how can there be a bribe-taker? Both are too sides of the same coin.
In this Brahminical India there is no single govt. dept., central or state, which is not corrupt. It is top to bottom. Corruption begins from the top. Not the bottom.
TEMPLE CORRUPTION
It is also wrong to say that corruption is confined to only govt. sector. The private sector is equally corrupt. All private education institutions collect heavy capitation fees — all unaccounted. Private hospitals, loot the patients.All shops cheat the customers with faulty weighing machines. Drug stores dispense spurious medicines. Taxis and autos cheat people. There is no place without corruption.
What about temple corruption? Yes. The list of bribe amount is displayed at the very entrance. All auditors bribe income tax officers. Traders avoid paying tax. Liquor stores sell adulterated stuff.
Cricket is top to bottom corrupt.
Newspapers and journals resort to all sorts of corruption. If you give Scotch and chicken tikka you will get a good report.
WORST CORRUPT COUNTRY IN WORLD
Every Press Club in big cities get big money from the powers-to be. "Paid News" is the latest corruption charge against the daily papers. Even the Press Commission is trying to hush up the crime.In another two years newspapers will have to devote almost every page to report corruption stories.
You will be shocked to hear even village voters have started demanding money for votes. That means our Brahminical system has made even the people corrupt.
The top in every branch of the society is corrupt. Those in the bottom are watching and learning. India will then become the worst corrupt in the world.
HARSHAD MEHTA &BAL THACKERAY
Who is not corrupt in India?Our very system itself is corrupt. Our entire socio-economic-cultural-political machinery has become totally corrupt.
Harshad Mehta was not a govt. servant. Bal Thackeray, sitting on a mountain of money today, too was never in govt. Our Dalal Street Dagalbajis are not govt. servants.
The Kanchi Shankarachari nogetting any conviction despite his proven scandals and murders is neither a govt. servant nor a politician.
The whole lot is corrupt. Our very system is corrupt.
The Christian church, the Muslim masjid, the Sikh gurdwaras are not above corruption.
ARMY GENERALSENTENCED
The No.2 man in the Army is today facing court martial for corruption,. We saw the army corruption in the purchase of coffins when George Fernandes was the Defence Minister.To repeat: Our very system itself is corrupt — rotten. The "Khatri Sick" PM himself defended CW Games corruption.
What is this system?
GLORIFYING THE RICH
This system glorifies the rich. Ambanis are praised and paraded. They are always front-paged. Why the people "respect" the Ambanis even when they don't pay the tax?Why the papers always front-page news of "India's richest"? Because we are silently admire the rich and would like to emulate them.
Get-rich-quick is the advice given to every youth by the father and mother.
About 20 years ago the parent wished his son to study well and lead a happy life.
HOW TO MAKE MONEY?
Now, this has changed.The common talk is: "Do you know so and so is doing very well?" What he means by that "wellness" is the fellow has made pots of money. But nobody asks how he has made that money.
Nobody is interested in knowing it. So when the rich are glamourised, praised and paraded, get front page in Times of India, our value system changes. We aim at making money by hook or crook.
But making money is the easiest. You must have no scruples, no principles. Cheat, rob, bribe or take bribe, resort to any means including murder — you become rich. And once you become rich you become the Ambani. Your past is quickly forgotten. And get all awards, rewards. Front page pictures, TV interviews, Rotary Club honour.
Your wife, mother, father will all love you, run after you only if you are rich.
DESPISED BY FAMILY
This writer is the eldest in the family and yet poorest. The family is not interested in our intellectual attainments. Who is interested in all this useless things? "All his brothers and sisters live in their own bungalows but this fellow lives in a rented house and always clad in a jungle dress". This how we are ridiculed.Look at the value system of the society. It honours, loves, adores only the rich. So the natural rush to make money and be known to the society as a crorepati.
Our value system has changed. It does not give any mark to your character, values, intellectual attainments, your work and suffering for social change. Nothing.
CORRUPTION IS KILLING INDIA
In a temple .no poor man is allowed inside. Only the one who comes in a big car with post of money to the "god"(meaning the priest)gets the first preferenceThe god also respects the rich.
What is the point in blaming the Supreme Court CJs? Poorfellows. They are all victims of the socio-cultural system that governs this Brahminical society.
The whole thing is sickening.
That is why nothing in India is progressing. Nothing in India is moving. Corruption is killing India.
CW Games is the best proof. The whole country has become one vast CW Games village. (See p.3 Edit)
Our entire traffic, railways, police system, banks, education, health system — are all cracking, collapsing.
"KHATRI SICK" PM
The "Khatri Sick" is called India's most "honest PM". But just because he is not taking bribes (we do not know it) does not mean he is not corrupt.Corruption is not "money corruption" alone. We have explained this in our book, India's Intellectual Desert.
Corrupt thoughts are more dangerous than mere money corruption. The "Khatri Sick's" thoughts itself are corrupt. A World Bank (Jewish-owned) nominee, he is supporting the "Jews of India" blindly. Is it not corruption?
Over 150 stone-pelting students were fired at and killed in Kashmir. Amnesty International has taken serious objection to this action but the country's ruling class is fully backing this PM. Our ruling class is itself corrupt to the core and this corruption is spreading deep into villages. Dangerous days are ahead.
As the PM, he is responsible for every action of the govt. All the actions of the govt under him are in favour of the rich who in India are none but the upper castes (15%). It is only after he took over more Indians were pushed below the poverty line.
DALIT CHRISTIANS
Money corruption is the last and the least dangerous part of the over all world of corruption.The church (both Catholic and Protestant) keeping the Dalit Christians (2.5%) out of power is corruption. Syrian Christians dominating the entire North East Mongoloid church is corruption.
Hindu temples not allowing Dalits to enter is corruption.
MARATHA CASTEM RULE
Kashmiris not being allowed self-determination is corruption.Upper caste Muslims opposing separate reservation for Pasmanda Muslims is corruption.
Jat Sikhs abandoning the Guru Granth and taking to Dasam Granth is corruption.
Casteist rule of the Marathas in Mahrashtra, Reddi-Khamma rule in Andhra Pradesh, Brahmin-Kayasth, Baidya rule in Bengal, Brahmin-Nair-Syrian Christian rule in Kerala, Brahmin-Lingayat rule in Karnataka all these are part of the overall world of systemic corruption.
Our whole body itself has become corrupt, diseased. The disease has entered all parts of our body through the roots or shoots and freely transported within every tissue.
Nothing can save this country from this systemic disease. It is sure death.
Eliminating corruption is impossible in "Hindu India". Because the cancer is too deep, spreading its roots all over.
IMPOSSIBLE TASK
What is needed is not a drive to curb corruption but to destroy the very value system that prompts you to become corrupt. But the value system comes mostly from the religion. Who is ready to touch the religion?May be the Brahminical India will rot, stink and degenerate — until another foreign invader comes and takes over. China stands a good chance.
Who killed constitution & how?
OUR CORRESPONDENTMangalore: upper castes less than 15% are playing a very dangerous game of sub vesting the very constitution of India and the fragile democratic structures—using a Hindu party nominee
In the course of the past 64 year, they successfully Hinduaised, the meaning enslaved, the non-Hindu SC/ST/BCs (65% ,instigated them against –Muslims/ Christians/ Sikhs(20%), and after making them unthinking slaves they are bend upon breaking the constitution itself setting up two phantoms- Anna Hzare and Baba Ramdev who flies in his own jet.
Bogus J.P movement: Earlier, (1970s) another (J.P) messiah came promising heaven and pushed us to hell.
Brahmana Jati Party (BJP) created Hindu terrorists, the Congress the orginal brahminical Prarty blessed by Gandhian frauds mislead whole country and finally the Manuvadi Marxists built their upper caste empire shouting socialist slogans.
DV said all this: Every party deceived the people and finally the two unelected extra- constitutional authorities, Hazare and Ramdev had to come to prove the parliament, state legislature, functioning under the constitution have totally failed.
What they are telling is true. DV has been telling the very same thing for the past 32 years.
But none botherd
Now the two unelected fellows- exploiting the blind beliefs of the poor suffering, unemployed, illiterate masses—had to come to announce that the constitution has been killed. Who is telling it? The very representatives of the ruling class who killed the constitution.
How do you like this? Is it not clear that India that is Bharat is slowly dying.
DV prove right on "Khatri Sick" PM
OUR CORRESPONDENTMangalore: The Ramdev Yadav is a multi-multi-billionaire, a Hindu terrorist party fan and person of doubtful character are all known facts.
Still knowing all these, why "Khatri Sick" PM and his govt. beg before him, allow the Ramlila thamasha. And then suddenly the crack down?
Does it not prove that the highest level of the country there is utter anarchy? Does is not prove our oft-epeated charge of "Khatri Sick" PM's soft coroner for the crooks and the corrupt?
Whether it is left, right or the centre, the upper castes (15%) are in full control of India. No govt. will not allow to function if it goes against their interests.
Did we not say India as a failed state (2004-pp-25-Rs.35)
Saudi must mend before it ends
OUR CORRESPONDENTMangalore: From the very beginning, DV has been criticizing Saudi Arabia for being the stooge of America and acting as the protector of a monarchy which is not recognized under Islam. Yet Saudi poses as the custodian of Islam.
Today, the Saudi rulers, controlled by the American Jews, are deeply worried as revolutions are sweeping over the whole Arab world and killing its tyrannical rulers. But Saudi is spending and even sending troops to defend the corrupt, anti- people rulers and suppress the people's revolt.
US double game: US as usual is a playing double game. It is pretending to support the Arab revolution but also friendly with the oil-rich Saudi.
You can take it that neither Saudi's oil (money) power nor the Islamic pretensions will stand before people's revolution.
Two major revolutionary countries are fast coming up: Iran and Turkey Muslim Brotherhood influence is spreading.
Revolutionary Islam will take over with the doomsday of Zionist Israel fast nearing.
Powerful castes get the cake
Our correspondentMangalore: "Khatri Sick" PM's Congress-led UPA Govt. has pleased the ruling upper castes much more than the Hindu terrorist party. Upper castes are enjoying a heaven on earth.
The PM and his cronies have given a free hand to the corrupt. But inconvenient fellows among Dalits, OBCs and Muslims are thrown into jail.
Dalits deceived: It deceived the Dalits by rejecting their demand for quota within the quota but accepting the same principal in the case of OBCs. The govt. is likely to split the 27%BCs quota among different OBCs to oblige the influential OBCs like the Yadavas and Kurmis.
At the same time it rejected the Dalit demand for quota within the quota.
Caste-based census rejected: In yet another mischief, it rejected the over-whelming demand for caste-based census but the Cabinet has approved a count aimed at segmenting the population economically-below and above the poverty line—and socially into numerous caste groups.
The BPL census and the caste census is a mammoth task involving identification of the real poor in the country along with listing of caste affiliation of the entire population .the counting will begin in June. Excellent diversion. But the OBC communities would not be counted as demanded. The six-month long census for conducting a head count of "poor people", along with their caste and religious affiliations, will be almost paperless as the enumerators will be armed with low-cost tablet computers.
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Countercurrents.org
Educate! Organize! Agitate!
An Actionable Plan For 9/11 Truth And Justice
By Senator Mike Gravel
http://www.countercurrents.org/gravel040711.htm
As new evidence and new whistleblowers come forward seemingly every week, the import of the 9/11 truth movement multiplies in historic significance. All of this points to the urgent need for a new, independent investigation with subpoena and other grand jury powers—a citizen's commission that is truly free of partisan political interference
For July 4, Passengers On U.S. Boat To Gaza
Call ForNew U.S. Declaration Of Independence - From Israel
By Henry Norr
http://www.countercurrents.org/norr040711.htm
Two hundred and thirty-five years after the American colonies declared independence from Britain, the passengers on the U.S. Boat to Gaza call for a new American Declaration of Independence, this time from Israel
Stop Occupations: Make 4 July
Independence From America Day
By Dr Gideon Polya
http://www.countercurrents.org/polya040711A.htm
Decent people must (a) inform everyone they can about the continuing US or US surrogate occupation, mass murder, mass pedocide, holocaust and genocide in the Occupied Palestinian, Somali, Haitian, Iraqi, and Afghan Territories, (b) demand Sanctions and political sidelining against the genocidal Neocon American and Zionist Imperialists (NAZIs), and (c) make 4 July Independence From America Day around the World
A Question For Reflection On The 4 th Of July:
Is The United States A Representative Democracy
Or A Mirage Democracy?
By Kevin Zeese
http://www.countercurrents.org/zeese040711.htm
It is a shame to have to ask whether democracy is a mirage in the United States, no doubt most Americans would rather be celebrating U.S. democracy than questioning it. But the reality of the disconnect between government and the people has become so stark it is impossible to ignore
Multi-National Corporations, Personified
By David Ruhlen
http://www.countercurrents.org/ruhlen040711.htm
This week we learned that a leading denier of climate change has taken $1 million from the oil and coal industries over the last decade; among his many services on behalf of the skeptic crowd, Dr. Willie Soon of the Harvard-Smithsonian Centre for Astrophysics has sought to weaken a major assessment of global warming by the UN's leading climate science body
Climate Censorship And Climate Injustice
By Climate Criminal, Climate Racist Australia
By Dr Gideon Polya
http://www.countercurrents.org/polya040711.htm
Australia leads the First World in annual per capita greenhouse gas pollution, is the world's leading coal exporter and is among the world's top liquid natural gas exporters. However Australia, like its fellow major GHG polluters Canada and the US, wants business as usual
Britain Arrests Respected Palestinian Leader
By Jonathan Cook
http://www.countercurrents.org/cook040711.htm
The outcry in Britain against Sheikh Salah has shocked Israel's 1.3-million Palestinian citizens. For them, he is a spiritual leader and head of a respected party, the Islamic Movement. He is also admired by the wider Palestinian public. The secular Fatah movement, including Salam Fayyad, the Palestinian Authority's prime minister, were among those condemning his arrest
A Defiant African Union
By Farooque Chowdhury
http://www.countercurrents.org/chowdhury040711.htm
African Union's decision to ignore International Criminal Court's arrest warrant against Libyan leader Gaddafi manifests a resistance to imperial NATO's design being imposed on Africa . The African resistance is getting generated in the background of a changing geopolitical reality with a declining trend of a section of capital. The AU defiance is actually against the world masters, especially NATO, the masters' military arm
AERB : No, Mera Joota (Nahee) Hai Japanee!
By Sadanand Patwardhan
http://www.countercurrents.org/patwardhan040711.htm
Indian Reactors Can Keep Cool without Power for a Week , claims S K Sharma, former Chairman of Atomic Energy Regulatory Board of India (AERB), and head of the safety review committee appointed by AERB to study the status of Indian Nuclear plants in the wake of the disaster at Fukushima Daiichi Nuclear power plant
West Bengal Movement For Release Of
Political Prisoners
By Ranjit Sur
http://www.countercurrents.org/sur040711.htm
Its almost one and half a month since a New Government has sworn in West Bengal under the leadership of Ms Mamata Banerjee. Yet, not a single Political Prisoner is released, as promised
On The Cusp Of Afghan Drawdown
And Reconciling With Taliban
By Rahil Yasin
http://www.countercurrents.org/yasin040711.htm
With the announcement of Afghan drawdown plan by US President Obama, Afghan Taliban are likely to follow 'wait and watch' policy in which they are supposed to revitalise their energies, regroup their factions, recruit 'new blood' and widen their control in most of the provinces
Where Ignorance Is A Virtue
By Dr. Murali Sivaramakrishnan
http://www.countercurrents.org/siva040711.htm
Let us also allow the Mahatma's statue in Coimbatore to stand headless—as a reminder of our blighted childishness! All we need to do is only to put a charka by the demolished statue as a remainder of our mindless acts. After all, where ignorance is a virtue it is certainly folly to be wise
Hidden Aspect Of The Ayodhya Dispute
By Yoginder Sikand
http://www.countercurrents.org/sikand040711.htm
A vihar dedicated to the Buddha, the apostle of universal love, instead of a Brahminical Hindu temple or a Muslim mosque, being built on the disputed site might actually be a mutually acceptable and eminently sensible settlement for many Hindus and Muslims themselves, who are fed up of the hate-driven politics of mandir and masjid being played in their name
My ResponseTo Geert Wilders
By Habib Siddiqui
http://www.countercurrents.org/siddiqui040711.htm
In his website, Geert Wilders, the Dutch politician, posted an article – My message to Muslims, which deserve some response. Here below is my response to him
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| Retail Sector in India Retail and real estate are the two booming sectors of India in the present times. And if industry experts are to be believed, the prospects of both the sectors are mutually dependent on each other. Retail, one of India's largest industries, has presently emerged as one of the most dynamic and fast paced industries of our times with several players entering the market. Accounting for over 10 per cent of the country's GDP and around eight per cent of the employment retailing in India is gradually inching its way toward becoming the next boom industry. As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This has also contributed to large scale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business. The trends that are driving the growth of the retail sector in India are
Another credible factor in the prospects of the retail sector in India is the increase in the young working population. In India, hefty pay-packets, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector. These key factors have been the growth drivers of the organized retail sector in India which now boast of retailing almost all the preferences of life - Apparel & Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many more. With this the retail sector in India is witnessing a rejuvenation as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. The retailing configuration in India is fast developing as shopping malls are increasingly becoming familiar in large cities. When it comes to development of retail space specially the malls, the Tier II cities are no longer behind in the race. If development plans till 2007 is studied it shows the projection of 220 shopping malls, with 139 malls in metros and the remaining 81 in the Tier II cities. The government of states like Delhi and National Capital Region (NCR) are very upbeat about permitting the use of land for commercial development thus increasing the availability of land for retail space; thus making NCR render to 50% of the malls in India.
India is being seen as a potential goldmine for retail investors from over the world and latest research has rated India as the top destination for retailers for an attractive emerging retail market. India's vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. Even though India has well over 5 million retail outlets, the country sorely lacks anything that can resemble a retailing industry in the modern sense of the term. This presents international retailing specialists with a great opportunity. The organized retail sector is expected to grow stronger than GDP growth in the next five years driven by changing lifestyles, burgeoning income and favorable demographic outline. Another cap to the retailing industry in India is allowing 51% FDI in single brand outlet. The government is now set to initiate a second wave of reforms in the segment by liberalizing investment norms further. This will not only favor the retail sector develop in terms of design concept, construction quality and providing modern amenities but will also help in creating a consumer-friendly environment. Retail industry in India is at the crossroads but the future of the consumer markets is promising as the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations in India. And this upsurge in the retail industry has made India a promising destination for retail investors and at the same time has impelled investments in the real estate sector. As foreign investors cautiously test the Indian Markets forinvestments in the retail sector, local companies and joint ventures are expected to be more advantageously positioned than the purely foreign ones in the evolving India's organized retailing industry. |
Foreign Direct Investment in Indian Retail Sector – An Analysis
BY:-Pulkit Agarwal
Esha Tyagi
Introduction
Just back from first frenzied shopping experience in the UK, a four year old ever-inquisitive daughter asked to her father, "Why do we not have a Harrods in Delhi? Shopping there is so much fun!" Simple question for a four-year-old, but not so simple for her father to explain.
As per the current regulatory regime, retail trading (except under single-brand product retailing — FDI up to 51 per cent, under the Government route) is prohibited in India. Simply put, for a company to be able to get foreign funding, products sold by it to the general public should only be of a 'single-brand'; this condition being in addition to a few other conditions to be adhered to. That explains why we do not have a Harrods in Delhi.
India being a signatory to World Trade Organisation's General Agreement on Trade in Services, which include wholesale and retailing services, had to open up the retail trade sector to foreign investment. There were initial reservations towards opening up of retail sector arising from fear of job losses, procurement from international market, competition and loss of entrepreneurial opportunities. However, the government in a series of moves has opened up the retail sector slowly to Foreign Direct Investment ("FDI"). In 1997, FDI in cash and carry (wholesale) with 100 percent ownership was allowed under the Government approval route. It was brought under the automatic route in 2006. 51 percent investment in a single brand retail outlet was also permitted in 2006. FDI in Multi-Brand retailing is prohibited in India.
Definition of Retail
In 2004, The High Court of Delhi[1] defined the term 'retail' as a sale for final consumption in contrast to a sale for further sale or processing (i.e. wholesale). A sale to the ultimate consumer.
Thus, retailing can be said to be the interface between the producer and the individual consumer buying for personal consumption. This excludes direct interface between the manufacturer and institutional buyers such as the government and other bulk customersRetailing is the last link that connects the individual consumer with the manufacturing and distribution chain. A retailer is involved in the act of selling goods to the individual consumer at a margin of profit.
Division of Retail Industry – Organised and Unorganised Retailing
The retail industry is mainly divided into:- 1) Organised and 2) Unorganised Retailing
Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses.
Unorganised retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedishops, convenience stores, hand cart and pavement vendors, etc.
The Indian retail sector is highly fragmented with 97 per cent of its business being run by the unorganized retailers. The organized retail however is at a very nascent stage. The sector is the largest source of employment after agriculture, and has deep penetration into rural India generating more than 10 per cent of India's GDP.[2]
FDI Policy in India
FDI as defined in Dictionary of Economics (Graham Bannock et.al) is investment in a foreign country through the acquisition of a local company or the establishment there of an operation on a new (Greenfield) site. To put in simple words, FDI refers to capital inflows from abroad that is invested in or to enhance the production capacity of the economy.[3]
Foreign Investment in India is governed by the FDI policy announced by the Government of India and the provision of the Foreign Exchange Management Act (FEMA) 1999. The Reserve Bank of India ('RBI') in this regard had issued a notification,[4] which contains the Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2000. This notification has been amended from time to time.
The Ministry of Commerce and Industry, Government of India is the nodal agency for motoring and reviewing the FDI policy on continued basis and changes in sectoral policy/ sectoral equity cap. The FDI policy is notified through Press Notes by the Secretariat for Industrial Assistance (SIA), Department of Industrial Policy and Promotion (DIPP).
The foreign investors are free to invest in India, except few sectors/activities, where prior approval from the RBI or Foreign Investment Promotion Board ('FIPB') would be required.
FDI Policy with Regard to Retailing in India
It will be prudent to look into Press Note 4 of 2006 issued by DIPP and consolidated FDI Policy issued in October 2010[5] which provide the sector specific guidelines for FDI with regard to the conduct of trading activities.
a) FDI up to 100% for cash and carry wholesale trading and export trading allowed under the automatic route.
b) FDI up to 51 % with prior Government approval (i.e. FIPB) for retail trade of 'Single Brand' products, subject to Press Note 3 (2006 Series)[6].
c) FDI is not permitted in Multi Brand Retailing in India.
Entry Options For Foreign Players prior to FDI Policy
Although prior to Jan 24, 2006, FDI was not authorised in retailing, most general players ha\d been operating in the country. Some of entrance routes used by them have been discussed in sum as below:-
1. Franchise Agreements
It is an easiest track to come in the Indian market. In franchising and commission agents' services, FDI (unless otherwise prohibited) is allowed with the approval of the Reserve Bank of India (RBI) under the Foreign Exchange Management Act. This is a most usual mode for entrance of quick food bondage opposite a world. Apart from quick food bondage identical to Pizza Hut, players such as Lacoste, Mango, Nike as good as Marks as good as Spencer, have entered Indian marketplace by this route.
2. Cash And Carry Wholesale Trading
100% FDI is allowed in wholesale trading which involves building of a large distribution infrastructure to assist local manufacturers.[7] The wholesaler deals only with smaller retailers and not Consumers. Metro AG of Germany was the first significant global player to enter India through this route.
3. Strategic Licensing Agreements
Some foreign brands give exclusive licences and distribution rights to Indian companies. Through these rights, Indian companies can either sell it through their own stores, or enter into shop-in-shop arrangements or distribute the brands to franchisees. Mango, the Spanish apparel brand has entered India through this route with an agreement with Piramyd, Mumbai, SPAR entered into a similar agreement with Radhakrishna Foodlands Pvt. Ltd
4. Manufacturing and Wholly Owned Subsidiaries.
The foreign brands such as Nike, Reebok, Adidas, etc. that have wholly-owned subsidiaries in manufacturing are treated as Indian companies and are, therefore, allowed to do retail. These companies have been authorised to sell products to Indian consumers by franchising, internal distributors, existent Indian retailers, own outlets, etc. For instance, Nike entered through an exclusive licensing agreement with Sierra Enterprises but now has a wholly owned subsidiary, Nike India Private Limited.
FDI in Single Brand Retail
The Government has not categorically defined the meaning of "Single Brand" anywhere neither in any of its circulars nor any notifications.
In single-brand retail, FDI up to 51 per cent is allowed, subject to Foreign Investment Promotion Board (FIPB) approval and subject to the conditions mentioned in Press Note 3[8] that (a) only single brand products would be sold (i.e., retail of goods of multi-brand even if produced by the same manufacturer would not be allowed), (b) products should be sold under the same brand internationally, (c) single-brand product retail would only cover products which are branded during manufacturing and (d) any addition to product categories to be sold under "single-brand" would require fresh approval from the government.
While the phrase 'single brand' has not been defined, it implies that foreign companies would be allowed to sell goods sold internationally under a 'single brand', viz., Reebok, Nokia, Adidas. Retailing of goods of multiple brands, even if such products were produced by the same manufacturer, would not be allowed.
Going a step further, we examine the concept of 'single brand' and the associated conditions:
FDI in 'Single brand' retail implies that a retail store with foreign investment can only sell one brand. For example, if Adidas were to obtain permission to retail its flagship brand in India, those retail outlets could only sell products under the Adidas brand and not the Reebok brand, for which separate permission is required. If granted permission, Adidas could sell products under the Reebok brand in separate outlets.
But, what is a 'brand'?
Brands could be classified as products and multiple products, or could be manufacturer brands and own-label brands. Assume that a company owns two leading international brands in the footwear industry – say 'A' and 'R'. If the corporate were to obtain permission to retail its brand in India with a local partner, it would need to specify which of the brands it would sell. A reading of the government release indicates that A and R would need separate approvals, separate legal entities, and may be even separate stores in which to operate in India. However, it should be noted that the retailers would be able to sell multiple products under the same brand, e.g., a product range under brand 'A' Further, it appears that the same joint venture partners could operate various brands, but under separate legal entities.[9]
Now, taking an example of a large departmental grocery chain, prima facie it appears that it would not be able to enter India. These chains would, typically, source products and, thereafter, brand it under their private labels. Since the regulations require the products to be branded at the manufacturing stage, this model may not work. The regulations appear to discourage own-label products and appear to be tilted heavily towards the foreign manufacturer brands.[10]
There is ambiguity in the interpretation of the term 'single brand'. The existing policy does not clearly codify whether retailing of goods with sub-brands bunched under a major parent brand can be considered as single-brand retailing and, accordingly, eligible for 51 per cent FDI. Additionally, the question on whether co-branded goods (specifically branded as such at the time of manufacturing) would qualify as single brand retail trading remains unanswered.
FDI in Multi Brand Retail
The government has also not defined the term Multi Brand. FDI in Multi Brand retail implies that a retail store with a foreign investment can sell multiple brands under one roof.
In July 2010, Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce circulated a discussion paper[11] on allowing FDI in multi-brand retail. The paper doesn't suggest any upper limit on FDI in multi-brand retail. If implemented, it would open the doors for global retail giants to enter and establish their footprints on the retail landscape of India. Opening up FDI in multi-brand retail will mean that global retailers including Wal-Mart, Carrefour and Tesco can open stores offering a range of household items and grocery directly to consumers in the same way as the ubiquitous 'kirana' store.
Foreign Investor's Concern Regarding FDI Policy in India
For those brands which adopt the franchising route as a matter of policy, the current FDI Policy will not make any difference. They would have preferred that the Government liberalize rules for maximizing their royalty and franchise fees. They must still rely on innovative structuring of franchise arrangements to maximize their returns. Consumer durable majors such as LG and Samsung, which have exclusive franchisee owned stores, are unlikely to shift from the preferred route right away.
For those companies which choose to adopt the route of 51% partnership, they must tie up with a local partner. The key is finding a partner which is reliable and who can also teach a trick or two about the domestic market and the Indian consumer. Currently, the organized retail sector is dominated by the likes of large business groups which decided to diversify into retail to cash in on the boom in the sector – corporates such as Tata through its brand Westside, RPG Group through Foodworld, Pantaloon of the Raheja Group and Shopper's Stop. Do foreign investors look to tie up with an existing retailer or look to others not necessarily in the business but looking to diversify, as many business groups are doing?
An arrangement in the short to medium term may work wonders but what happens if the Government decides to further liberalize the regulations as it is currently contemplating? Will the foreign investor terminate the agreement with Indian partner and trade in market without him? Either way, the foreign investor must negotiate its joint venture agreements carefully, with an option for a buy-out of the Indian partner's share if and when regulations so permit. They must also be aware of the regulation which states that once a foreign company enters into a technical or financial collaboration with an Indian partner, it cannot enter into another joint venture with another Indian company or set up its own subsidiary in the 'same' field' without the first partner's consent if the joint venture agreement does not provide for a 'conflict of interest' clause. In effect, it means that foreign brand owners must be extremely careful whom they choose as partners and the brand they introduce in India. The first brand could also be their last if they do not negotiate the strategic arrangement diligently.
Concerns for the Government for only Partially Allowing FDI in Retail Sector
A number of concerns were expressed with regard to partial opening of the retail sector for FDI. The Hon'ble Department Related Parliamentary Standing Committee on Commerce, in its 90th Report, on 'Foreign and Domestic Investment in Retail Sector', laid in the Lok Sabha and the Rajya Sabha on 8 June, 2009, had made an in-depth study on the subject and identified a number of issues related to FDI in the retail sector. These included:
It would lead to unfair competition and ultimately result in large-scale exit of domestic retailers, especially the small family managed outlets, leading to large scale displacement of persons employed in the retail sector. Further, as the manufacturing sector has not been growing fast enough, the persons displaced from the retail sector would not be absorbed there.
Another concern is that the Indian retail sector, particularly organized retail, is still under-developed and in a nascent stage and that, therefore, it is important that the domestic retail sector is allowed to grow and consolidate first, before opening this sector to foreign investors.
Antagonists of FDI in retail sector oppose the same on various grounds, like, that the entry of large global retailers such as Wal-Mart would kill local shops and millions of jobs, since the unorganized retail sector employs an enormous percentage of Indian population after the agriculture sector; secondly that the global retailers would conspire and exercise monopolistic power to raise prices and monopolistic (big buying) power to reduce the prices received by the suppliers; thirdly, it would lead to asymmetrical growth in cities, causing discontent and social tension elsewhere. Hence, both the consumers and the suppliers would lose, while the profit margins of such retail chains would go up.
LIMITATIONS OF THE PRESENT SETUP
Infrastructure
There has been a lack of investment in the logistics of the retail chain, leading to an inefficient market mechanism. Though India is the second largest producer of fruits and vegetables (about 180 million MT), it has a very limited integrated cold-chain infrastructure, with only 5386 stand-alone cold storages, having a total capacity of 23.6 million MT. , 80% of this is used only for potatoes. The chain is highly fragmented and hence, perishable horticultural commodities find it difficult to link to distant markets, including overseas markets, round the year. Storage infrastructure is necessary for carrying over the agricultural produce from production periods to the rest of the year and to prevent distress sales. Lack of adequate storage facilities cause heavy losses to farmers in terms of wastage in quality and quantity of produce in general. Though FDI is permitted in cold-chain to the extent of 100%, through the automatic route, in the absence of FDI in retailing; FDI flow to the sector has not been significant.
Intermediaries dominate the value chain
Intermediaries often flout mandi norms and their pricing lacks transparency. Wholesale regulated markets, governed by State APMC Acts, have developed a monopolistic and non-transparent character. According to some reports, Indian farmers realize only 1/3rd of the total price paid by the final consumer, as against 2/3rd by farmers in nations with a higher share of organized retail.
Improper Public Distribution System ("PDS")
There is a big question mark on the efficacy of the public procurement and PDS set-up and the bill on food subsidies is rising. In spite of such heavy subsidies, overall food based inflation has been a matter of great concern. The absence of a 'farm-to-fork' retail supply system has led to the ultimate customers paying a premium for shortages and a charge for wastages.
No Global Reach
The Micro Small & Medium Enterprises ("MSME") sector has also suffered due to lack of branding and lack of avenues to reach out to the vast world markets. While India has continued to provide emphasis on the development of MSME sector, the share of unorganised sector in overall manufacturing has declined from 34.5% in 1999-2000 to 30.3% in 2007-08[12]. This has largely been due to the inability of this sector to access latest technology and improve its marketing interface.
Rationale behind Allowing FDI in Retail Sector
FDI can be a powerful catalyst to spur competition in the retail industry, due to the current scenario of low competition and poor productivity.
The policy of single-brand retail was adopted to allow Indian consumers access to foreign brands. Since Indians spend a lot of money shopping abroad, this policy enables them to spend the same money on the same goods in India. FDI in single-brand retailing was permitted in 2006, up to 51 per cent of ownership. Between then and May 2010, a total of 94 proposals have been received. Of these, 57 proposals have been approved. An FDI inflow of US$196.46 million under the category of single brand retailing was received between April 2006 and September 2010, comprising 0.16 per cent of the total FDI inflows during the period. Retail stocks rose by as much as 5%. Shares of Pantaloon Retail (India) Ltd ended 4.84% up at Rs 441 on the Bombay Stock Exchange. Shares of Shopper's Stop Ltd rose 2.02% and Trent Ltd, 3.19%. The exchange's key index rose 173.04 points, or 0.99%, to 17,614.48. But this is very less as compared to what it would have been had FDI upto 100% been allowed in India for single brand.[13]
The policy of allowing 100% FDI in single brand retail can benefit both the foreign retailer and the Indian partner – foreign players get local market knowledge, while Indian companies can access global best management practices, designs and technological knowhow. By partially opening this sector, the government was able to reduce the pressure from its trading partners in bilateral/ multilateral negotiations and could demonstrate India's intentions in liberalising this sector in a phased manner.[14]
Permitting foreign investment in food-based retailing is likely to ensure adequate flow of capital into the country & its productive use, in a manner likely to promote the welfare of all sections of society, particularly farmers and consumers. It would also help bring about improvements in farmer income & agricultural growth and assist in lowering consumer prices inflation.[15]
Apart from this, by allowing FDI in retail trade, India will significantly flourish in terms of quality standards and consumer expectations, since the inflow of FDI in retail sector is bound to pull up the quality standards and cost-competitiveness of Indian producers in all the segments. It is therefore obvious that we should not only permit but encourage FDI in retail trade.
Lastly, it is to be noted that the Indian Council of Research in International Economic Relations (ICRIER), a premier economic think tank of the country, which was appointed to look into the impact of BIG capital in the retail sector, has projected the worth of Indian retail sector to reach $496 billion by 2011-12 and ICRIER has also come to conclusion that investment of 'big' money (large corporates and FDI) in the retail sector would in the long run not harm interests of small, traditional, retailers.[16]
In light of the above, it can be safely concluded that allowing healthy FDI in the retail sector would not only lead to a substantial surge in the country's GDP and overall economic development, but would inter alia also help in integrating the Indian retail market with that of the global retail market in addition to providing not just employment but a better paying employment, which the unorganized sector (kirana and other small time retailing shops) have undoubtedly failed to provide to the masses employed in them.
Industrial organisations such as CII, FICCI, US-India Business Council (USIBC), the American Chamber of Commerce in India, The Retail Association of India (RAI) and Shopping Centers Association of India (a 44 member association of Indian multi-brand retailers and shopping malls) favour a phased approach toward liberalising FDI in multi-brand retailing, and most of them agree with considering a cap of 49-51 per cent to start with.
The international retail players such as Walmart, Carrefour, Metro, IKEA, and TESCO share the same view and insist on a clear path towards 100 per cent opening up in near future. Large multinational retailers such as US-based Walmart, Germany's Metro AG and Woolworths Ltd, the largest Australian retailer that operates in wholesale cash-and-carry ventures in India, have been demanding liberalisation of FDI rules on multi-brand retail for some time.[17]
Thus, as a matter of fact FDI in the buzzing Indian retail sector should not just be freely allowed but per contra should be significantly encouraged. Allowing FDI in multi brand retail can bring about Supply Chain Improvement, Investment in Technology, Manpower and Skill development,Tourism Development, Greater Sourcing From India, Upgradation in Agriculture, Efficient Small and Medium Scale Industries, Growth in market size and Benefits to govemment through greater GDP, tax income and employment generation.[18]
Prerequisites before allowing FDI in Multi Brand Retail and Lifting Cap of Single Brand Retail
FDI in multi-brand retailing must be dealt cautiously as it has direct impact on a large chunk of population. Left alone foreign capital will seek ways through which it can only multiply itself, and unthinking application of capital for profit, given our peculiar socio-economic conditions, may spell doom and deepen the gap between the rich and the poor. Thus the proliferation of foreign capital into multi-brand retailing needs to be anchored in such a way that it results in a win-win situation for India. This can be done by integrating into the rules and regulations for FDI in multi-brand retailing certain inbuilt safety valves. For example FDI in multi –brand retailing can be allowed in a calibrated manner with social safeguards so that the effect of possible labor dislocation can be analyzed and policy fine tuned accordingly. To ensure that the foreign investors make a genuine contribution to the development of infrastructure and logistics, it can be stipulated that a percentage of FDI should be spent towards building up of back end infrastructure, logistics or agro processing units. Reconstituting the poverty stricken and stagnating rural sphere into a forward moving and prosperous rural sphere can be one of the justifications for introducing FDI in multi-brand retailing. To actualize this goal it can be stipulated that at least 50% of the jobs in the retail outlet should be reserved for rural youth and that a certain amount of farm produce be procured from the poor farmers. Similarly to develop our small and medium enterprise (SME), it can also be stipulated that a minimum percentage of manufactured products be sourced from the SME sector in India. PDS is still in many ways the life line of the people living below the poverty line. To ensure that the system is not weakened the government may reserve the right to procure a certain amount of food grains for replenishing the buffer. To protect the interest of small retailers the government may also put in place an exclusive regulatory framework. It will ensure that the retailing giants do resort to predatory pricing or acquire monopolistic tendencies. Besides, the government and RBI need to evolve suitable policies to enable the retailers in the unorganized sector to expand and improve their efficiencies. If Government is allowing FDI, it must do it in a calibrated fashion because it is politically sensitive and link it (with) up some caveat from creating some back-end infrastructure.
Further, To take care of the concerns of the Government before allowing 100% FDI in Single Brand Retail and Multi- Brand Retail, the following recommendations are being proposed [19]:-
- Preparation of a legal and regulatory framework and enforcement mechanism to ensure that large retailers are not able to dislocate small retailers by unfair means.
- Extension of institutional credit, at lower rates, by public sector banks, to help improve efficiencies of small retailers; undertaking of proactive programme for assisting small retailers to upgrade themselves.
- Enactment of a National Shopping Mall Regulation Act to regulate the fiscal and social aspects of the entire retail sector.
- Formulation of a Model Central Law regarding FDI of Retail Sector.
Conclusion
A Start Has Been Made
Walmart has a joint venture with Bharti Enterprises for cash-and-carry (wholesale) business, which runs the 'Best Price' stores. It plans to have 15 stores by March and enter new states like Andhra Pradesh , Rajasthan, Madhya Pradesh and Karnataka.[20]
Duke, Wallmart's CEO opined that FDI in retail would contain inflation by reducing wastage of farm output as 30% to 40% of the produce does not reach the end-consumer. "In India, there is an opportunity to work all the way up to farmers in the back-end chain. Part of inflation is due to the fact that produces do not reach the end-consumer," Duke said, adding, that a similar trend was noticed when organized retail became popular in the US.[21]
Many of the foreign brands would come to India if FDI in multi brand retail is permitted which can be a blessing in disguise for the economy.[22]
Back-end logistics must for FDI in multi-brand retail
The government has added an element of social benefit to its latest plan for calibrated opening of the multi-brand retail sector to foreign direct investment (FDI). Only those foreign retailers who first invest in the back-end supply chain and infrastructure would be allowed to set up multi brand retail outlets in the country. The idea is that the firms must have already created jobs for rural India before they venture into multi-brand retailing.
It can be said that the advantages of allowing unrestrained FDI in the retail sector evidently outweigh the disadvantages attached to it and the same can be deduced from the examples of successful experiments in countries like Thailand and China; where too the issue of allowing FDI in the retail sector was first met with incessant protests, but later turned out to be one of the most promising political and economical decisions of their governments and led not only to the commendable rise in the level of employment but also led to the enormous development of their country's GDP.
Moreover, in the fierce battle between the advocators and antagonist of unrestrained FDI flows in the Indian retail sector, the interests of the consumers have been blatantly and utterly disregarded. Therefore, one of the arguments which inevitably needs to be considered and addressed while deliberating upon the captioned issue is the interests of consumers at large in relation to the interests of retailers.
It is also pertinent to note here that it can be safely contended that with the possible advent of unrestrained FDI flows in retail market, the interests of the retailers constituting the unorganized retail sector will not be gravely undermined, since nobody can force a consumer to visit a mega shopping complex or a small retailer/sabji mandi. Consumers will shop in accordance with their utmost convenience, where ever they get the lowest price, max variety, and a good consumer experience.
The Industrial policy 1991 had crafted a trajectory of change whereby every sectors of Indian economy at one point of time or the other would be embraced by liberalization, privatization and globalization.FDI in multi-brand retailing and lifting the current cap of 51% on single brand retail is in that sense a steady progression of that trajectory. But the government has by far cushioned the adverse impact of the change that has ensued in the wake of the implementation of Industrial Policy 1991 through safety nets and social safeguards. But the change that the movement of retailing sector into the FDI regime would bring about will require more involved and informed support from the government. One hopes that the government would stand up to its responsibility, because what is at stake is the stability of the vital pillars of the economy- retailing, agriculture, and manufacturing. In short, the socio economic equilibrium of the entire country.
Bibliography
Websites :-
- www.Legalserviceindia.com
- www.Manupatra.com
- www.Scribd.com
- www.cci.in
- www.rbi.org.in
- www.dipp.nic.in
- www.legallyindia.com
- www.icsi.edu
Reports/ Research Papers
- A.T. Kearney's Report on Indian Retail, 2008
- FDI Consolidated Policy
- Dr.R.KBalyan "FDI in Indian Retail- Beneficial or Detrimental-research paper
- Damayanthi/S.Pradeekumar-FDI is it the Need of he Hour? Google search
- Dipakumar Dey-Aspects of Indian Economy-Google search
Newspapers
- The Economic Times
- The Business Standard
[1]Association of Traders of Maharashtra v. Union of India, 2005 (79) DRJ 426
[2] India's Retail Sector (Dec 21, 2010) http://www.cci.in/pdf/surveys_reports/indias_retail_sector.pdf
[3]Hemant Batra, Retailing Sector In India Pros Cons (Nov 30, 2010)http://www.legallyindia.com/1468-fdi-in-retailing-sector-in-india-pros-cons-by-hemant-batra
[4] Notification No. FEMA 20/2000-RB dated May 3, 2000
[5]FDI_Circular_02/2010, DIPP
[6] http://siadipp.nic.in/policy/changes/pn3_2006.pdf
[7] Supra Note 4
[8] Ibid.
[9] Mohan Guruswamy, Implications of FDI in Retail, (Dec 16 2010) http://www.scribd.com/doc/36888679
[10]Ibid.
[11] Discussion Paper on FDI in Multi Brand Retail Trading, http://dipp.nic.in/DiscussionPapers/DP_FDI_Multi-BrandRetailTrading_06July2010.pdf
[12] National Accounts Statistics, 2009
[13] Nabael Mancheri, India's FDI policies: Paradigm shift, http://www.eastasiaforum.org/2010/12/24/indias-fdi-policies-paradigm-shift/-
[14] Discussion Paper on FDI in Multi Brand Retail Trading, http://dipp.nic.in/DiscussionPapers/DP_FDI_Multi-BrandRetailTrading_06July2010.pdf
[15] Ibid
[16]Sarthak Sarin, (Nov 23, 2010) Foreign Direct Investment in Retail Sector http://www.legalindia.in/foreign-direct-investment-in-retail-sector-others-surmounting-india-napping
[17] Nabael Mancheri, India's FDI policies: Paradigm shift, http://www.eastasiaforum.org/2010/12/24/indias-fdi-policies-paradigm-shift/-
[18] Supra Note 11
[19] Ibid
[20]Economic Times Retail News, FDI in retail to contain inflation (Dec 31, 2010) walmart http://retail-guru.com/allow-100-fdi-in-retail-to-contain-inflation-walmart
[21] Ibid
[22] Supra note 17
http://www.legalindia.in/foreign-direct-investment-in-indian-retail-sector-%E2%80%93-an-analysis
Consensus route to retail FDI | |||||||||||
| OUR SPECIAL CORRESPONDENT | |||||||||||
New Delhi, June 28: India is trying to build a consensus on liberalising foreign direct investment (FDI) in retail and defence, finance minister Pranab Mukherjee today told a gathering of business leaders and policy makers in Washington. "Discussions are under way to build a consensus on further liberalisation of the FDI policy in retail and defence," Mukherjee said. Differences exist within the Indian government on the appropriate policies for foreign direct investments in the two sectors. The commerce ministry has proposed majority FDI in defence and retail, but the defence ministry wants a maximum of 49 per cent FDI in its field. Some other ministries are opposed to the freeing up of retail and have asked foreigners to invest heavily in cold chains and retail logistics. Mukherjee will be holding talks on bilateral economic partnership with US treasury secretary Timothy Geithner from tomorrow. The US wish list includes the opening up of Indian industry and the financial sector. "We are just at the very beginning of unlocking the enormous potential of this relationship," Geithner told the same gathering. "India is at the point now where future growth will depend on the success of the next wave of reforms," Geithner added. Washington is keenly awaiting New Delhi's moves on retail. The Indian government allows 51 per cent FDI in single-brand retail and 100 per cent in wholesale cash-and-carry. However, multi-brand retailers such as Walmart and Tesco are barred. An inter-ministry group on inflation under Mukherjee's chief economic adviser Kaushik Basu has recommended the opening up of the sector. However, the government has sought time to bring on board its allies as well as the Opposition parties, who fear for the future of small retail stores. Research shows a well developed retail chain can eliminate middlemen in the food business — who pocket 60-80 per cent of the price paid by a consumer. Organised retail comprises just 4 per cent of the business. Limits on defence FDI, now at 26 per cent, have become a bone of contention between not only the defence and commerce ministries, but also between foreign investors and Indian corporate houses. Foreign aerospace firms backed by European embassies have been making a case for 74-100 per cent stake; only then can they bring proprietory technology into India, the companies said. Indian corporate houses engaged in defence such as the Tatas, Mahindra and L&T are, however, bitterly opposed to such a blanket relaxation and have instead argued in favour of relaxing FDI to 49 per cent, with Indians remaining in majority control. http://www.telegraphindia.com/1110629/jsp/business/story_14173827.jsp
Assocham in a note to the government has also sought FDI cap to be kept at 49 per cent. Ficci has even said that 49 per cent FDI should be allowed as a special case. http://www.telegraphindia.com/1110704/jsp/business/story_14193663.jsp
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Palash Biswas
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