INDIA COUNTRY BRIEF 100203

Basic Political Developments

Tamil Nadu Chief Minister and DMK leader M Karunanidhi on Wednesday said it has no takers in Maharashtra and dismissed all reports that said the people of the South were 'anti-Hindi'. He said, "Even in Maharashtra there is no support for his (Shiv Sena President Uddhav Thackeray's) views."

The Bharatiya Janata Party (BJP) spokesman Prakash Javadekar on Wednesday rejected the Union government's announcement of a committee to deliberate on a mechanism for statehood for Telangana, terming it an 'eyewash' and a 'delaying tactic'.

Shiv Sena chief Bal Thackeray today hit back at Congress General Secretary Rahul Gandhi's 'Mumbai for all Indians' comment by saying Mumbai may belong to all Indians, but how can it belong to an Italian mummy. In a statement in the party mouthpiece "Saamna", Thackeray said Mumbai was not a guesthouse of the country that anyone comes to Mumbai and leaves."

Media reports said after the announcement of the Telangana Committee by the Union Home Ministry, all the political parties and also the Joint Action Committee (JAC) which is spearheading the agitation, on Wednesday refrained from reacting and said they would react only after the announcement of the terms of reference of the Committee.

A Home Ministry spokesperson said that the Union government on Wednesday constituted a five-member expert committee on Telangana issue headed by former Supreme Court Judge B N Srikrishna. The committee will hold wide-ranging consultations with all sections of people and different political parties and groups in Andhra Pradesh.

Media reports today said students who have been demanding for a separate Telengana state felt the panel should only deal with select issues and not about the formation of the state.

Union Law Minister Veerappa Moily met Congress president Sonia Gandhi on Wednesday to apprise her about the five-member committee that will deliberate on a mechanism for a separate Telangana state and consult all sections of people, political parties and groups in Andhra Pradesh.

Tamil Nadu Chief Minister M. Karunanidhi on Wednesday said the state administration will take a decision on the premature release of S. Nalini and

others convicted for the assassination of former prime minister Rajiv Gandhi only after consulting the central government.

Media reports today said Telegu Desam Party (TDP) and Praja Rajyam leaders hailing from Andhra and Rayalaseema regions met state Governor E S L Narasimhan and said there was no need to constitute a Central committee on the bifurcation of Andhra Pradesh as majority of people were opposed to it.

After expulsion from Samajwadi Party, Amar Singh today praised Congress and ruled out joining BSP. He also suggested that he could do business with the Mayawati-led party on issues like trifurcation of Uttar Pradesh.

National Economic Trends

The Reserve Bank of India (RBI) said on Wednesday it had decided to withdraw a short-term foreign currency funding facility provided to non-banking financial and home finance firms, with immediate effect.

Pronab Sen, the Secretary, Union Ministry of Statistics and Programme Implementation, today said Economic growth numbers for the current fiscal, to be released by May, will provide actual picture to the government to decide if Know what is monetary policy India's road to economic reform India a safe bet stimulus packages could be rolled back.

Business, Energy or Environmental regulations or discussions

Larsen and Toubro (L&T) on Wednesday said it has been awarded projects worth Rs 1,100 crore to construct residential towers, warehouses and a factory. The projects involve residential towers in Ghatkopar, Mumbai at a cost of Rs 500 crore, warehouses in Khurja, Uttar Pradesh for Rs 305 crore, a mall in Kolkata and a factory building in Samalkha, Haryana for Rs 295 crore.

The Civil Aviation Minister said on Wednesday that the Union government may approve a capital infusion of Rs 800 crore in loss-making national carrier Air India by next week. It said "We will move the proposal to the cabinet for the Rs 800 crore capital infusion in Air India by next week."

Media reports today said the Union government has priced the follow on public offer of NTPC at Rs 201 per share, at a 5% discount to Monday’s closing price.

Activity in the Oil and Gas sector (including regulatory)

Kirit Parikh Committee on Wednesday presented the report on fuel pricing to Petroleum Minister Murli Deora. The panel in its report advocated the freeing of petrol prices. In its report tha panel suggested to free petrol prices at refinery and at retail level. PSU oil companies at present lose Rs 3/litre of petrol. It also recommended retail diesel prices be market driven.

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

The Manipur Police gunned down two militants after a prolonged encounter near Iribung in Imphal East district on Tuesday.

The Mumbai police have stepped vigil after terror threat to three railway stations including the Chhatrapati Shivaji Terminus (CST), which bore the brunt of the November 2008 terror attacks.

Two United Liberation Front of Asom (ULFA) militants, including a top bomber of the outfit, were killed in a shootout with soldiers in Assam, but the crossfire also claimed the life of a boy, police Wednesday said.

The banned Assam-based militant outfit ULFA on Wednesday rejected Union Home Minister P Chidambaram's offer for peace talks echoing their chairman Arabinda Rajkhowa's stand "no peace talks with ULFA leaders in jail".

A hardcore Maoist was arrested in Orissa's Rayagada district and five landmines and an equal number of guns besides a large quantity of explosives were recovered from his possession.

A new Meghalaya militant outfit -- Hynniewrtrep Liberation Front (HLF) -- backed by NSCN-IM, has been neutralised at the nascent stage, a senior police officer has said. "We have netted five key members of the new group, including its commander-in-chief and chairman. I think we have picked up almost all of them," SP (Shillong city) Claudia Lyngwa said last evening.

The cave shrine of Vaishnodevi, one of the most visited pilgrimage centres in the country, is on the radar of militants, a senior official said today. "There is a threat to the cave shrine of Vaishnodevi from militants. We have received inputs that militants want to do some mischief," Special Director General of Central Reserve Police Force (CRPF) N K Tripathi told reporters here.

Labor/Social Unrest People's Committee aganist Police Atrocities (PCPA) activists torched a private

car carrying patients and three other private cars carrying a marriage party in Kusumghati village near Manikpara under Jhargram police station in West Midnapore district on the first-day of their indefinite strike today. The PCPA

called for the bandh, protesting against the 'killing of their two women activists' yesterday in front of Barikul police station under Bankura district.

Visiting diplomats from the European Union faced protest from Vishwa Hindu Parishad activists at the Bhubhaneshwar airport as soon as they landed in Orissa, on Tuesday. The diplomatic delegation comprised representatives from Hungary, Poland, Ireland, Italy, Netherlands, Britain, Finland and Sweden. The delegation was on a four-day visit to the state during which they would go to Kandhamal district, 25 months after large-scale rioting.

Tight security arrangements have been put in place ahead of senior Congress leader Digvijay Singh's visit to Azamgarh Wednesday. The decision was made following an announcement of the Ulema Council (a body of clerics) that it wouldn't allow Congress leaders to enter the district. "In the wake of the announcement made by members of the Ulema Council, security has been deployed in every nook and corner of the district, particularly in Sanjarpur town," district police chief Ramit Sharma told reporters Wednesday in Azamgarh, about 300 km from Lucknow.

Full Text

Basic Political Developments

Karunanidhi has a war of words with Shiv Sena Wed, Feb 3 05:20 PMhttp://in.news.yahoo.com/139/20100203/816/tnl-karunanidhi-has-a-war-of-words-with.htmlChennai, Feb 3 (ANI): Locking horns with the Shiv Sena over the 'Mumbai for Marathis' issue, Tamil Nadu Chief Minister M Karunanidhi on Wednesday said it has no takers in Maharashtra and dismissed all reports that said the people of the South were 'anti-Hindi'.

The DMK patriarch said, "Even in Maharashtra there is no support for his (Shiv Sena President Uddhav Thackeray's) views."

Uddhav Thackeray had on Sunday attacked all the other parties that countered its views by saying that 'Mumbai was all for Indians.'

On Sunday, the Bharatiya Janata Party (BJP)'s ideological associate, the Rashtriya Swayamsevak Sangh (RSS) had asked its activists to protect north Indian immigrants from attacks in Maharashtra.

In response, Thackeray had asked them to look to the South and teach Hindi in the region.

Refuting the impression that people in the South were 'anti-Hindi', Karunanidhi saidolitical parties did not have any 'narrow view' to drive out people speaking other than the respective regional languages.There is no political party in the region which has a narrow view and sought to drive out people speaking other than the respective regional languages," he added.ahul Gandhi on Tuesday criticized both the Shiv Sena and the Maharashtra Navnirman Sena (MNS) for their unwarranted attacks on north Indians, and said that every inch of India belongs to each and every Indian.

Gandhi reminded both political outfits that the commandoes who saved Mumbai during the 26/11 terror attacks were north Indians.

He further said that the commandoes, who forced their way into the besieged buildings, did not bother about which state they belonged to.

Committee on Telangana an eyewash, delaying tactic: BJP Wed, Feb 3 05:04 PMhttp://in.news.yahoo.com/43/20100203/818/tnl-committee-on-telangana-an-eyewash-de.htmlNew Delhi, Feb 3 (IANS) The Bharatiya Janata Party (BJP) Wednesday rejected the government's announcement of a committee to deliberate on a mechanism for statehood for Telangana, terming it an 'eyewash' and a 'delaying tactic'.

BJP spokesman Prakash Javadekar said the five-member committee would serve no purpose as there was no clear reference for creation of a separate state of Telangana.

'The BJP rejects lock stock and barrel the committee set up by the central government for consultation on the situation in Andhra Pradesh,' Javadekar said.

He said no time frame had been laid for the committee and its terms of reference had also not been been spelt out.

'The committee is an eyewash and adds insult to the injured sentiments of the people of Telangana. It is a delaying tactic and futile exercise,' he said.

Demanding that the central government move a bill for creation of Telangana in the ensuing budget session of parliament, Javadekar said the BJP was committed to support the bill.

'The BJP believes that two states will co-exist peacefully and prosper rapidly,' he said.

Javadekar said bifurcation of Andhra Pradesh for creation of two separate states - Telangana and Andhra - was essentially a political issue 'which required firm political decision and action by the central government'.

'Instead of deciding the time frame to carve out two states, the government has abdicated its constitutional obligation by shifting its responsibility to the committee. Appointment of a committee headed by a retired Judge is irrelevant as no legal issue is involved.'

Asserting that the problems had arisen because of 'u-turn and double standards' of the Congress, Telugu Desam Party and Praja Rajyam Party on the issue, Javadekar said all parties had agreed for creation of Telangana in the meeting convened by Chief Minister K. Rosaiah in Hyderabad on Dec 7.

'These parties started speaking in two voices, one in Telangana and another in Andhra region. This u-turn has caused turmoil in the state. These parties need to take a definite stand, which is a political process,' he said and demanded that the Congress and TDP must come clean on the issue.

The government Wednesday announced a five-member panel headed by retired Supreme Court judge B.N. Srikrishna to deliberate on a mechanism for a separate Telangana state and consult all sections of people, political parties and groups in Andhra Pradesh.

The government however said the terms of reference of the committee would be decided later.

The other members of the committee are vice chancellor of the National Law University Ranbir Singh, senior research fellow of the International Food Policy Research Institute Abusaleh Shariff, former home secretary Vinod Duggal and Ravinder Kaur, professor, department of humanities and social sciences, IIT Delhi.

'The terms of reference are being drafted and will be finalised in consultation with the chairman and announced shortly,' said a statement from the home ministry.

Shiva Sena hits back at Rahul Gandhi's 'Mumbai for all Indians' commentMumbai | February 03, 2010 11:39:27 AM ISThttp://news.webindia123.com/news/articles/India/20100203/1437929.htmlShiv Sena supremo Bal Thackeray today hit back at Congress General Secretary Rahul Gandhi's 'Mumbai for all Indians' comment by saying Mumbai may belong to all Indians, but how can it belong to an Italian mummy.

In a statement in the party mouthpiece "Saamna", Thackeray said Mumbai was not a guesthouse of the country that anyone comes to Mumbai and leaves."

Mumbai belongs to Maharashtra and Marathi people, Thackeray said, and added that "If anyone is going to murder this truth, he will have to face weapons of Maharashtra".

Rahul Gandhi on Tuesday criticized both the Shiv Sena and the Maharashtra Navnirman Sena (MNS) for their unwarranted attacks on north Indians, and said that every inch of India belongs to each and every Indian.

Gandhi reminded both political outfits that the commandoes who saved Mumbai during the 26/11 terror attacks were north Indians.

He further said that the commandoes, who forced their way into the besieged buildings, did not bother about which state they belonged to.

Andhra leaders await terms of reference of Telangana committeeHyderabad | February 03, 2010 2:50:25 PM IST http://news.webindia123.com/news/articles/India/20100203/1438070.htmlAfter the announcement of the Telangana Committee by the Union Home Ministry, all the political parties and also the Joint Action Committee (JAC) which is spearheading the agitation, refrained from reacting and said they would react only after the announcement of the terms of reference of the Committee.

The Telangana Joint Action Committee (JAC) on Wednesday said that it would wait till the announcement of terms of reference of the Telangana Committee by the Union Home Ministry before giving its views.

Interacting with the media here, the JAC convener C Kodandaram said: "We would like to know the terms of reference of the and the time-frame of the committee."

He said the JAC would meet later in the day to discuss the issue.

The Telugu Desam Party (TDP) MLA N Janardhan Reddy, said his party would respond only after the terms of reference of the committee are announced.

"We want to know the terms of reference of the committee before giving our reaction. What we want is Telangana state in a time-frame. If this committee is for it, then we will welcome it", he said.

The Telangana Rashtra Samiti (TRS) too said it would wait for terms of reference of the committee to be announced.

Interacting with the media, Telangana Rashtra Samiti leader K T Rama Rao said: "We are waiting for terms of reference of the committee to know if it is in furtherance to the December 9 statement made by Home Minister P Chidambaram."

"If it is so, then we can look forward to it. If it is a step back to explore whether to give Telangana or not then we will not be happy with it", he added. (ANI)

Centre constitutes 5-member Telangana committeeLast updated on: February 03, 2010 11:22 ISThttp://news.rediff.com/report/2010/feb/03/centre-forms-5-member-telangana-committee.htmThe central government on Wednesday constituted a five-member expert committee on Telangana issue headed by former Supreme Court Judge B N Srikrishna.

A Home Ministry spokesperson said the committee will hold wide-ranging consultations with all sections of people and different political parties and groups in Andhra Pradesh.

The other members of the Committee are Prof (Dr) Ranbir Singh, Vice Chancellor, National Law University, Delhi, Dr Abusaleh Shariff, Senior Research Fellow, International Food Policy Research Institute, Delhi, Dr (Ms) Ravinder Kaur, Professor, Department of Humanities and Social Sciences, IIT, Delhi and Vinod K Duggal, former Home Secretary, who will also function as its Member Secretary.

The spokesman said the terms and references are being drafted and will be finalised in consultation with the chairman of the Committee and announced shortly.

In Hyderabad, Telangana Rashtra Samiti, which has been spearheading the separate statehood movement, said it would wait for the terms of reference of the committee before giving its views on it.

"We are waiting for terms of reference of the committee to know if it is in furtherance to the December 9 statement made by Home Minister P Chidambaram.

"(If it is so), then we can look forward to it. If it is a step back to explore whether to give Telanagana or not then we will not be happy with it. We are demanding a committee for the formation of Telangana within a timeframe," K T Rama Rao, TRS MLA and party president K Chandrashekhar Rao's son, said.

Last week, Chidambaram had said the committee to examine the demand for separate Telangana will be announced shortly.

Chidambaram, in the meeting with political parties from Andhra Pradesh on January 5, had said that its agenda was to "deliberate on the mechanism and lay down a road map for consultations" on the Telangana issue.

The meeting followed Chidambaram's statement on December 23 last year when the government had put on the back burner the formation of the separate state for which it had on December 9 promised to initiate the formation process.

New Telangana panel irks students bodyFebruary 03, 2010 13:07 ISThttp://news.rediff.com/report/2010/feb/03/andhracrisis-new-telangana-panle-irks-students-body.htmThe Centre may have set up a five-member committee on Telangana, but students who have been most vocal in their demand for a state feel the panel should only deal with select issues and not about the formation of the state.

Dr Prithviraj, the chief of the Students Telangana Joint Action Committee, told rediff.com that the basic idea of the committee should be to deal with issues pertaining to distribution of water and fixing the border.

"If the committee interferes with the formation of the state, then we will oppose it all out. There is no need for a committee to be formed for this purpose," says Prithviraj.

"Let me point out that there is a big difference between a committee and a commission. The Fazal Ali Commission has long back said that Telangana should be formed and in such a circumstance there is no need for another committee to be formed to decide on the same issue. Implement the recommendations of the Fazal Ali commission and that would be enough. Moreover, I think there is no need to further debate this issue since the home minister's statement made it clear that a roadmap would be drawn out to form the state. What sort of a home minister is he if he goes back on his word. We have trusted what he said and expect him to keep up his word," he added. Moily meets Sonia to discuss Telangana committeeNew Delhi |Wednesday, 2010 5:05:06 PM ISThttp://news.webindia123.com/news/articles/India/20100203/1438136.htmlUnion Law Minister Veerappa Moily met Congress president Sonia Gandhi here Wednesday to apprise her about the five-member committee that will deliberate on a mechanism for a separate Telangana state and consult all sections of people, political parties and groups in Andhra Pradesh.

Congress sources said the minister, who is Congress in-charge of Andhra Pradesh, informed Gandhi about the views of party MPs about the committee.

The five-member panel will be headed by retired Supreme Court judge B.N. Srikrishna, it was announced Wednesday. The other members of the committee are vice chancellor of the National Law University Ranbir Singh, senior research fellow of the International Food Policy Research Institute Abusaleh Shariff, former home secretary Vinod Duggal and Ravinder Kaur, professor, department of humanities and social sciences, IIT Delhi.

Ahead of the expected announcement of the committee, Congress MPs from Telangana and coastal Andhra and Rayalaseema had met Moily to express their views.

Party MPs from Telangana have been insisting on a time-frame for formation of the new state while its leaders from the other two regions have demanded that the committee should not have the formation of Telangana on its agenda.

Party sources said Moily had asked party leaders from Telangana to dissociate themselves from the joint action committee and not to resort to any agitation.

They said that party leaders from Telangana have so far been muted in their reaction to the formation of committee.

"The terms of reference are being drafted and will be finalised in consultation with the chairman and announced shortly," said a statement from the home ministry.

UPA government to be consulted on Nalini's release: KarunanidhiChennai |Wednesday, 2010 5:05:06 PM ISThttp://news.webindia123.com/news/articles/India/20100203/1438144.htmlTamil Nadu Chief Minister M. Karunanidhi Wednesday said the state administration will take a decision on the premature release of S. Nalini and others convicted for the assassination of former prime minister Rajiv Gandhi only after consulting the central government.

"The Tamil Nadu government cannot decide on its own in respect to releasing life convicts like Nalini. It will take a decision in joint consultation with the central government," Karunanidhi told reporters here.

The Prison Advisory Board (PAB) set up by the state government to consider the premature release of 11 life convicts lodged in Vellore prison has submitted its report to the state government.

The board has considered the release plea of Nalini, Robert Pyas and Jayakumar convicted for the assassination of Gandhi in 1991.

Referring to the issue of rehabilitation and resettlement of Tamils in Sri Lanka, he said that his party DMK will pass a resolution asking the country to fulfil the assurances given earlier on the devolution of powers to the community there.

He said the party's executive committee and general council will meet Feb 20 here to discuss the issue.

On the issue of Marine Fisheries (Regulation and Management) Bill, Karunanidhi reiterated his party's opposition to the proposed law.

He said Union Agriculture Minister Sharad Pawar has given an assurance to his cabinet colleague Dayanidhi Maran that the bill will not be introduced in Parliament.

Speaking about the ensuing World Classical Tamil Conference in Coimbatore, Karunanidhi said 4,625 persons have registered for participation, out of which 464 are from overseas.

The synopses of 3,401 research papers have been received, he added.

TDP, PRP MLAs meet Andhra Guv over Telanganahttp://www.ptinews.com/news/497743_TDP--PRP-MLAs-meet-Andhra-Guv-over-TelanganaHyderabad, Feb 2 (PTI) TDP and Praja Rajyam MLAs hailing from Andhra and Rayalaseema regions met state Governor E S L Narasimhan here tonight and said there

was no need to constitute a Central committee on the bifurcation of Andhra Pradesh as majority of people were opposed to it.

"Even if the Centre decides to constitute a committee, it should only be confined to eliciting public opinion and not for bifurcation of the state," the delegation said in the memorandum submitted to the Governor.

"We have explained to the Governor that majority of the people of the state are for a unified Andhra Pradesh. We have also told him about the aspirations of the people of Andhra and Rayalaseema regions and discussed the ill-effects of smaller states," senior TDP MLA Payyavula Kesav told reporters after the meeting with Governor.

Amar Singh praises Congress, rules out joining BSPhttp://www.ptinews.com/news/498120_Amar-Singh-praises-Congress--rules-out-joining-BSPNew Delhi, Feb 3 (PTI) After expulsion from Samajwadi Party, Amar Singh today praised Congress and ruled out joining BSP.

But he suggested that he could do business with the Mayawati-led party on issues like trifurcation of Uttar Pradesh.

As regards Congress, Singh struck a conciliatory note.

He said that though the "family" was important there, it was different from other parties which are run by political families including the SP.

"There is a difference (between two parties). In Congress Rahul Gandhi talks of internal party democracy. The party holds polls, there is a war room to tackle situations, there is a core committee to take decisions.

"It is not where the party president says something and the next day the exact opposite of what he had said happens. This gives out a bad image of party because it affects political credibility of the party," Singh told PTI in an interview.

National Economic Trends

RBI withdraws forex funding plan for financial firms3 Feb 2010, 1659 hrs IST, REUTERShttp://economictimes.indiatimes.com/RBI-withdraws-forex-funding-plan-for-financial-firms/articleshow/5531517.cmsMUMBAI: The Reserve Bank of India (RBI) said on Wednesday it had decided to withdraw a short-term foreign currency funding facility provided to non-banking financial and home finance firms, with immediate effect.

"The decision has been taken after a review of the prevailing macro-economic conditions and improvements in the domestic credit and liquidity conditions," the Reserve Bank of India said in a statement.

It had introduced this facility in October 2008, which allowed the firms to raise foreign currency borrowings from the central bank to refinance short-term liabilities.

Stimulus exit may be delayed: Govt official3 Feb 2010, 1254 hrs IST, PTIhttp://economictimes.indiatimes.com/news/economy/finance/Stimulus-exit-may-be-delayed-Govt-official/articleshow/5530674.cmsNEW DELHI: Economic growth numbers for the current fiscal, to be released by May, will provide actual picture to the government to decide if Know what is monetary policyIndia's road to economic reform India a safe bet stimulus packages could be rolled back, Chief Statistician Pronab Sen said today.

However, strong industrial growth numbers do indicate that the government may start thinking of withdrawing these measures, Sen told reporters here.

Industry growth has started picking up in recent months fueling suggestion from RBI and other analysts for partial roll back of stimulus measures taken to ward off the impact of global economic slowdown last year.

Sen, the Secretary, Ministry of Statistics and Programme Implementation, said industrial growth figures give supply side picture and does not tell whether demand is actually there to take that supply or only inventories are building.

The GDP data provide demand side figures also, Sen said, adding it is up to Finance Minister Pranab Mukherjee to take a call in the upcoing Budget on stimulus measures, depending on industrial growth numbers or economic growth figures.

"It is up to the Finance Minister to either play safe (in the Budget) and wait for actual economic figures to come out or play gamble and take a decision depending on industrial growth numbers," Sen said.

Industrial growth for November stood at 11.7 per cent against just 2.5 per cent a year back. For the first eight months, industrial production grew by 7.6 per cent against 4.1 per cent a year ago.

Business, Energy or Environmental regulations or discussions

Bank of Baroda sets guidance for dollar bond: Source3 Feb 2010, 1445 hrs IST, REUTERShttp://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/Bank-of-Baroda-sets-guidance-for-dollar-bond-Source/articleshow/5531014.cms

HONG KONG: Bank of Baroda plans to sell a five-year bond "around mid-200" basis points over comparable US Treasuries, according to a market source.

The road show for the state-owned lender would end Wednesday in London and the bond may price on Thursday, the source said. It had hired Barclays Capital, Citigroup, Deutsche Bank, Standard Chartered Bank and HSBC for the deal.

Larsen and Toubro bags Rs 1,100 crore construction deal3 Feb 2010, 1248 hrs IST, PTIhttp://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/Larsen-and-Toubro-bags-Rs-1100-crore-construction-deal/articleshow/5530649.cmsMUMBAI: Engineering and construction major Larsen and Toubro (L&T) Wednesday said it has been awarded projects worth Rs 1,100 crore to construct residential towers, warehouses and a factory. (Video)

The projects involve residential towers in Ghatkopar, Mumbai at a cost of Rs 500 crore, warehouses in Khurja, Uttar Pradesh for Rs 305 crore, a mall in Kolkata and a factory building in Samalkha, Haryana for Rs 295 crore.

The order was bagged by L&T's buildings and factories operating company, part of its construction division.

Around noon, the L&T scrip was ruling 2.77 per cent higher at Rs 1,435.45 at the Bombay Stock Exchange.

Govt may approve Rs 800 cr infusion in Air India: Praful Patel3 Feb 2010, 1519 hrs IST, AGENCIEShttp://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/Govt-may-approve-Rs-800-cr-infusion-in-Air-India-Praful-Patel/articleshow/5530802.cmsNEW DELHI: The government may approve a capital infusion of Rs 800 crore in loss-making national carrier Air India by next week, the Civil Aviation Minister said on Wednesday.

"We will move the proposal to the cabinet for the Rs 800 crore capital infusion in Air India by next week," Praful Patel told reporters after a group of ministers' meet.

The government had earlier infused Rs 800 crore to the troubled carrier. In 2007, Indian Airlines Ltd, the state-owned carrier that flew largely within the country and Air India, which flew international routes, were merged into one company, the National Aviation Co of India Ltd (Nacil) which now operates under a single brand Air India.

The Group of Ministers (GoM) on Aviation sought clarification from national carrier Air India, which had incurred a loss of Rs 7,200 crore last fiscal, about its cost-cutting and revenue enhancements measures.

The carrier had earlier been asked to bring down losses before it got the first tranche of equity infusion from the government as a bail-out measure.

"The GoM has asked for some clarifications. We will meet again. There has been massive cost cutting by Air India," Civil Aviation Minister Praful Patel told reporters after a meeting of the GoM.

"There were number of issues discussed," he added.

The minister said the cabinet would be approached for approval of the Rs 800-crore equity infusion, a proposal that the GoM led by Finance Minister Pranab Mukherjee had cleared last November.

The ailing carrier was expected to get the first tranche of Rs 400 crore last month.

The equity infusion, once cleared by the cabinet, will cover part of the funds promised by the government to rescue the ailing national carrier.

The GoM had asked the carrier to cut costs by at least Rs 2,000 crore by the end of the current fiscal. Air India, however, has only managed to reduce it by Rs 150-180 crore till now.

Earlier, a committee headed by Cabinet Secretary K.M. Chandrasekhar had proposed a Rs 5,000-crore capital infusion over the next three years, on the condition that the airline cut costs and raise revenues.

Cash-strapped Air India continues to post losses with working capital debts at Rs 17,000 crore and losses of Rs 7,200 crore last fiscal.

The airline, which has been incurring losses since 2004-05, currently has 111 aircraft on order.

NTPC fixes FPO price at Rs 201 a share3 Feb 2010, 1033 hrs IST, Arun Kumar , ET Bureauhttp://economictimes.indiatimes.com/markets/ipos/NTPC-fixes-FPO-price-at-Rs-201-a-share/articleshow/5530130.cmsNEW DELHI: The government has priced the followon public offer of NTPC at Rs 201 per share, at a 5% discount to Monday’s closing price, hoping to Q3 EarningsTop Q3 performers for FY-10Earnings: What Q3 numbers mean for companies attract individual investors who showed a lack of interest in some of the high-profile offers that hit the market in recent months. ET NOW was the first to announce the price of the follow-on offer.

The discount may ensure better participation of retail investors who enjoy a quota of 35%, said bankers. “In case the market price holds at the current level of Rs 211 and above, it will have good response from retail investors. This, in turn, could increase the auctioning price,” said a banker, who asked not to be named. Another 15% of the issue is reserved for high net worth individuals.

The government will mop up a minimum of Rs 8,286 crore from the sale of 41.22 crore shares, representing 5% of the existing paidup capital of NTPC, India’s largest power producer. The proposed offer will open for subscription on February 3. Since this is the first issue through the French auctioning route, the government mobilisation may go up significantly . Half of the issue will be sold through auctions.

The price is significantly lower than the government’s expectation of around Rs 265 per share. The government was hoping to raise Rs 11,000 crore from NTPC sale.

The previous two issues from state-owned companies failed to elicit a good response from retail investors, though they received an overwhelming response from institutional investors. The retail portions of Oil India and NHPC issues were subscribed only 1.76 times and 2.97 times, while the issues were oversubscribed 31 times and 24 times, respectively.

At the time of giving the mandate, bankers had assured the government that they would be able to sell the shares at Rs 250 per share or above, provided the market remained bullish, said a senior NTPC official.

On Monday, the bankers recommended a discount of 8% to the current price of Rs 211 per share. Based on the recommendations of the four bankers, the empowered group of ministers (eGoM), which met on Monday evening, agreed to give a 5% discount to the current market price. “NTPC issue should not be equated with recent public offerings of other power companies that failed to make major gains in trading. The company’s shares have been in the market for some time and has given good returns to investors,” said the government official quoted earlier.

NTPC last tested the market with its initial public offer in October 2004. That time the public offer involved issue 5.25% of fresh equity shares and sale of equivalent (5.25%) number of shares held by the government. The issue raised over Rs 5,000 crore.

Post-issue, the government holding in the company came down to 89.5% of the expanded capital of the company, which will come down further to 84.5% after the proposed sale. NTPC, which has an installed capacity of over 31,134 mw, is expected to add another 22,000 mw by March 2012.

Activity in the Oil and Gas sector (including regulatory)

Kirit Parikh panel for freeing petrol prices3 Feb 2010, 1651 hrs IST, AGENCIES

http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/Kirit-Parikh-panel-for-freeing-petrol-diesel-prices/articleshow/5531478.cmsNEW DELHI: Kirit Parikh on Wednesday presented the report on fuel pricing to Petroleum Minister Murli Deora. The panel in its report advocated the freeing of petrol prices.

"The fuel pricing policy will address government's fiscal problems," said Parekh at a press conference. In its report tha panel suggested to free petrol prices at refinery and at retail level. PSU oil companies at present lose Rs 3/litre of petrol. It also recommended retail diesel prices be market driven.

Parikh panel, however suggested that the kerosene subsidy should be continued.

The government may take a decision on freeing petrol and diesel prices after the report. Price of petrol may go up by Rs 4.70 a litre and diesel by Rs 2.30 a litre if the government gives the pricing freedom to state-owned oil marketing companies — IndianOil Corporation (IOC) Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL).

A price hike of petrol and diesel is imminent unless finance ministry pays full cash compensation to state-owned oil companies for kerosene and cooking gas, an oil ministry official said requesting anonymity. The finance ministry has decided to pay a compensation of only Rs 12,000 crore in 2009-10 to public sector oilcos for selling kerosene and cooking gas below cost as against total estimated revenue loss of Rs 31,000 crore in the fiscal year.

In July last year, the cabinet had taken a decision to meet the entire revenue loss of public sector OMCs on cooking gas and kerosene either through oil bonds or cash.

Losses on petrol and diesel were to be compensated by state-owned upstream companies — ONGC, Oil India and Gail India, he said. The upstream companies have already paid about Rs 8,364 crore to the three public sector oil companies for their losses on auto fuels in the first three quarters of 2009-10 .

The finance minister, however, wants to reduce fuel subsidy burden. He is in favour of deregulation , as mounting subsidy burden is a major concern for the public exchequer. The government had to pay over Rs 71,000 crore in 2008-09 as fuel subsidy though oil bonds.

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

Two militants killed in Imphal Wed, Feb 3 03:30 PMhttp://in.news.yahoo.com/139/20100203/808/tnl-two-militants-killed-in-imphal.html

Iribung (Manipur), Feb 3 (ANI): The Manipur Police gunned down two militants after a prolonged encounter near Iribung in Imphal East district on Tuesday.

Briefing the media persons, Rajen Singh, Superintendent of Police, Imphal East said that on receipt of specific information about the presence of militants in the Lair Hills region, the commandoes were rushed to the spot.

" We went on this road and were checking the whereabouts. There we saw a youth strolling. In fact he was waiting with arms, I guess. When we were returning back after checking the suspected house, the same youth fired upon us," said Rajen Singh.

The security personnel also recovered AK-56 assault rifles, 180 live rounds of ammunition and a powerful Chinese grenade. (ANI)

Mumbai on alert after terror threatMumbai | February 03, 2010 2:57:47 PM ISThttp://news.webindia123.com/news/articles/India/20100203/1438091.htmlThe Mumbai police have stepped vigil after terror threat to three railway stations including the Chhatrapati Shivaji Terminus (CST), which bore the brunt of the November 2008 terror attacks.

Railway Protection Force personnel could be seen frisking every passenger at CST Railway Station while local police set up pickets and searched vehicles thoroughly on Tuesday.

"I believe that after the 26/11 attack, the police has become very alert, and whatever threat the terrorists might give I don't think they will succeed in their plans," said Sanjay Merolia, a commuter.

"Everywhere the police is very alert, and the search is on to avert any mishap, the police has been performing their duty accordingly, trying their best," added Prashant Gaikwad, another commuter.

Mumbai has witnessed a series of terror attacks at sunset on November 26, 2008.en gunmen had landed on Mumbai shores by boats and fired randomly inside a railway station, a Jewish settlement, a cafe and two luxury hotels.

Several people were held hostage for the next three days and at least 166 died before commandoes smoked out the last of the terrorists on November 28 last year. (ANI)

Two ULFA militants shot dead, crossfire kills boyGuwahati |Wednesday, 2010 4:05:06 PM ISThttp://news.webindia123.com/news/articles/India/20100203/1438097.html

Two United Liberation Front of Asom (ULFA) militants, including a top bomber of the outfit, were killed in a shootout with soldiers in Assam, but the crossfire also claimed the life of a boy, police Wednesday said.

A police spokesperson said ULFA bomber Basa Singh was killed early Wednesday after an overnight shootout that also left two others dead. The encounter began around 5 p.m. Tuesday and ended around 6 a.m. Wednesday near Kalaigaon in Udalguri district, about 90 km north of here.

"One ULFA militant was killed in the encounter, while a school boy lost his life in the crossfire. A soldier was also wounded in the attack late Tuesday," a senior police official said.

The encounter continued till early Wednesday.

"We realised there was one more ULFA militant inside a house and after the first round of firing, our suspicion came right and we later managed to eliminate Basa Singh early this morning after a fierce gunfight," the official said.

"In all, there were three deaths - two ULFA militants and the school boy - and an army soldier was injured."

Singh is said to have been involved in at least 20 deadly explosions in the past three years in different parts of Assam.

"Basa Singh's death will surely impact on the ULFA's overall morale as he was one of their main bombers and a dedicated leader," the official said.

No talks with handcuffs on: ULFA to CentreFebruary 03, 2010 15:44 ISThttp://news.rediff.com/report/2010/feb/03/ulfa-rejects-centres-talks-offer.htmThe banned Assam-based militant outfit ULFA on Wednesday rejected Union Home Minister P Chidambaram's offer for peace talks echoing their chairman Arabinda Rajkhowa's stand "no peace talks with ULFA leaders in jail".

"The ULFA leaders cannot sit for peace talks from jail with handcuffs," jailed ULFA ideologue Bhimkanta Buragohain told reporters in Tezpur where he was produced before a fast track court.

The leaders have to be free for convening meetings of the ULFA's highest decision making committee to decide on peace talks, he said.

Buragohain, whose real name is Bishnujyoti Buragohain, and is addressed as 'Mama' by ULFA cadres, accused Chidambaram of not perceiving the sentiments of the local people.

"Chidambaram is not sensitive to the sentiments of the people here. He is not fully aware about Assam's situation, including its economic problems and geographical set up," he said.

Buragohain also accused some intellectuals of the state of acting as "brokers of the government for negotiating talks between ULFA and government for their own interest".

Burogohain "rejected" the claim of arrested surrendered ULFA (SULFA) cadre Kamal Nath's claim last week at the Tezpur Sessions Judge Court that 11 ULFA leaders, handed over to the Indian army during Operation All Clear in Bhutan against ULFAin 2003, were killed in Shillong.

He suspected that the 11 were still in the custody of army as they along with him and six others were together till they were handed over to Indian Army on December 25 that year by the Royal Bhutan Army.

Meanwhile, jailed ULFA publicity secretary Mithinga Daimary, who was being taken to the Regional Dental Hospital at Guwahati for medical care told reporters, "No letter will be sent from jail to the Centre offering ULFA's willingness for talks. If we are set free, we will talk. No talks with handcuffs."

Yesterday ULFA chairman Arabinda Rajkhowa said his outfit cannot think of talks when the leaders were inside jail and not free.

Maoist explosive expert held, gun and landmines seizedhttp://www.ptinews.com/news/498076_Maoist-explosive-expert-held--gun-and-landmines-seizedRayagada (Orissa), Feb 3 (PTI) A hardcore Maoist was arrested in Orissa's Rayagada district and five landmines and an equal number of guns besides a large quantity of explosives were recovered from his possession.

Purna alias Ramesh Mambalika, an explosive expert and a master in making landmines, was nabbed from his native village at Tubuni in the Gudari police stattion area last night on a tip-off, Rayagada SP Anup Kumar said.

Ammunition, including gelatines and 15 kilograms of splinters used in the making of landmines, were seized, the SP said.

"Ramesh was coordinating ultra movement in Rayagada district and as many as six criminal cases were pending against him at different police stations," the SP said.

Besides being involved in the killing of two persons at Dhepaguda area, Ramesh also confessed to have been directly involved in the Nayagarh armoury attack in 2007, the police said.

NSCN-backed outfit neutralised in Meghalaya: Police

http://www.ptinews.com/news/498241_NSCN-backed-outfit-neutralised-in-Meghalaya--PoliceShillong, Feb 3 (PTI) A new Meghalaya militant outfit -- Hynniewrtrep Liberation Front (HLF) -- backed by NSCN-IM, has been neutralised at the nascent stage, a senior police officer has said.

"We have netted five key members of the new group, including its commander-in-chief and chairman. I think we have picked up almost all of them," SP (Shillong city) Claudia Lyngwa said last evening.

She said there was "hard evidence" that the new outfit had close links with the NSCN-IM.

HLF commander-in-chief Shembhalang Dkhar, chairman Roykupar Marbaniang and three others were caught in a series of operations last month, nipping the nascent outfit in the bud, the SP said.

According to police, NSCN-IM had floated the group primarily to extort money in the state.

"Void of any objective, the activists didn't even know what they were up to.

Vaishnodevi on militants' radar: CRPFhttp://www.ptinews.com/news/498371_Vaishnodevi-on-militants--radar--CRPFJammu, Feb 3 (PTI) The cave shrine of Vaishnodevi, one of the most visited pilgrimage centres in the country, is on the radar of militants, a senior official said today.

"There is a threat to the cave shrine of Vaishnodevi from militants. We have received inputs that militants want to do some mischief," Special Director General of Central Reserve Police Force (CRPF) N K Tripathi told reporters here.

"Elaborate security measures are in place as per the threat perception. There is no laxity on part of the CRPF," he said.

Jawans have been put on high level of vigilance and they started patrolling well before January 26 in Trikuta hills, the abode of cave shrine, Tripathi said, adding "the shrine is secured and safe so pilgrims should not fear. They can undertake pilgrimage as CRPF is there for their security".

Labor/Social Unrest

PCPA activists torch 4 cars on 1st day of indefinite strikeJhargram | Wednesday, Feb 3 2010 ISThttp://news.webindia123.com/news/articles/India/20100203/1437874.htmlPeople's Committee aganist Police Atrocities (PCPA) activists torched a private car carrying patients and three other private cars carrying a marriage party in Kusumghati

village near Manikpara under Jhargram police station in West Midnapore district on the first-day of their indefinite strike today. The PCPA called for the bandh, protesting against the 'killing of their two women activists' yesterday in front of Barikul police station under Bankura district. Jhargram SDO P Ulaganathan said the PCPA activists put up blockades on the roads in the Jungle Mahal areas since this morning by digging roads and failing trees.

A car, used by the Health Department, was set on fire when it was returning to Manikpara Primary Health Centre (PHC), he added.

The PCPA activists also torched the three cars after asking the members of the marriage party to get down from the cars.

VHP protests EU diplomats' Kandhamal tripFebruary 03, 2010 00:28 ISThttp://news.rediff.com/report/2010/feb/03/vhp-protests-eu-diplomats-kandhamal-visit.htmVisiting diplomats from the European Union faced protest from Vishwa Hindu Parishad activists at the Bhubhaneshwar airport as soon as they landed in Orissa, on Tuesday. The diplomatic delegation comprised representatives from Hungary, Poland, Ireland, Italy, Netherlands, Britain, Finland and Sweden. The delegation was on a four-day visit to the state during which they would go to Kandhamal district, 25 months after large-scale rioting.

Though the agitators failed to reach near the diplomats' cavalcade due to heavy security arrangements at the airport, they shouted slogans of "diplomats go back". Some agitators were later rounded up by the police. The diplomats are scheduled to go to Kandhamal on Thursday, after meeting state government officials and the director general of police in Bhubhaneshwar on Wednesday. They will make a night halt at Phulbani, the district headquarters of Kandhamal before they return to the state capital on Friday. Earlier, the VHP state leadership had strongly opposed the diplomats visit to Kandhamal and sought a withdrawal of permission given to them by the state government.

"The proposed visit of the EU delegation should be cancelled forthwith and the Orissa government must withdraw the permission granted for the purpose," VHP state secretary Gouri Kumar Rath told media-persons. Maintaining that peace had returned to the tribal dominated district after prolonged violence following the killing of VHP leader Laxmanananda Saraswati, he said the visit would only spark off fresh tension in the region.

Rath said only the Indian government can deal with the problems and added the diplomats should return from the state capital. "The diplomats will know for themselves about the situation in Kandhamal," according to Archbishop Raphael Cheenath. At least 38 people were killed and hundreds of houses damaged in the riot which took place in the aftermath of VHP leader Laxmananada Saraswati's killing on August 23, 2008.

Security tightened in Azamgarh as Muslims vow to protestLucknow |Wednesday, 2010 2:05:06 PM IST http://news.webindia123.com/news/articles/India/20100203/1438005.htmlTight security arrangements have been put in place ahead of senior Congress leader Digvijay Singh's visit to Azamgarh Wednesday. The decision was made following an announcement of the Ulema Council (a body of clerics) that it wouldn't allow Congress leaders to enter the district.

"In the wake of the announcement made by members of the Ulema Council, security has been deployed in every nook and corner of the district, particularly in Sanjarpur town," district police chief Ramit Sharma told reporters Wednesday in Azamgarh, about 300 km from Lucknow.

Expressing resentment over alleged harassment of youth from the minority community by police on the pretext of tackling terror, the Ulema Council has vowed to hold protests against Congress leaders, who would visit Azamgarh district.

"We have vowed not to allow Digvijay Singh to enter Sanjarpur and other places too. Locals in Azamgarh have already extended their support to us and promised to make every effort so that Congress leaders can't meet the families of those killed in the Batla House shootout," Ulema Council's general secretary Tahir Madni told IANS over phone from Azamgarh.

During his two-day tour to Azamgarh, Digvijay Singh and other Congress leaders would visit Sanjarpur where they would meet families of the two alleged Indian Mujahideen (IM) operatives Atif and Chhota Sajid, killed in September 2008 by the police during the Batla House shootout in New Delhi.

Since then, the council has been demanding probes by the Central Bureau of Investigation (CBI) and the judiciary into the incident.

"Digvijay and other Congress leaders have backtracked from their assurance to conduct judicial and CBI probes into the Batla House encounter," said Madni.

Terming the visit of Digvijay and other Congress leaders as "a gimmick to collect Muslim votes", the Ulema Council has already announced to carry out a series of protests against all those Congress leaders who would visit Azamgarh.

"Actually, they (Congress leaders) are not coming to console the family members of those who have been implicated in false terror cases, instead the visit by the party leaders is driven by politics," alleged Madni.