Monday, August 1, 2011

Robust revenue growth, but profit under pressure for India Inc!US debt deal offers respite, but downgrade looms! Reuter reports. But I have been writing since the First Gulf War while the Cold War still continued and USSR was INTACT that the War Econ

Robust revenue growth, but profit under pressure for India Inc!US debt deal offers respite, but downgrade looms! Reuter reports. But I have been writing since the First Gulf War while the Cold War still continued and USSR was INTACT that the War Economy of Imperialist America has to break up soon or later. Debt Crisis is Averted for the time being but the Economy as well as DOLLAR remain in DEEP! We must NOT forget the END of RUBAL and MARK empire at all! Unfortunately Indian Economy is LINKED to DOLLAR thanks to Free Market Economy and India Incs Governace! As US is Predestined for the Ultimate Doom`s Day, India may NOT avert the same Fate! The INDIAN Parliament is Hijacked by INDIA INCS and MNCs!Masses are represented by Billioairs. Media survives on FDI! Journalists do NOT get Wage Board and FM decides Policies meeting with Industrialists! Companies register ROBUST GROWTH at the Cost of EXCLUDED Bahujan Majority! The Brahaminical Hegemony has Connected India`s Fate with ZIONIST Corporate Imperialism for the Sustenace of Manusmriti Apartheid Rule and GENOCIDE Culture! Whereas AMERICA banks on EMERGING Market. china may NOT be Trapped as it SUSTAINED its Production system!But we reamain in dark TOTALLY Mind Controled by Brahaminical Politicians and Political Parties, Media, Intelligentsia and Civil Society! Not only the Misinformed masses by Enlightened Creamy layer is also BEFOOLED and Fate of AIR INDIA Starving Employees does NOT create any difference in Attitude! Who may folw the Global Phenomenon!Parliamentary Procedure is only a Reality show or Soap Opera at best while the Democracy and CONSTITUTION KILLED ! MONSON Session is meant to Pass all the Reforms for Ethnic Cleansing diverting the Main Issues in Media Hype of Civil Society!I know personally Editors and Media CEOs who NEVER meeat the Editorial team and often go on Foreign Trip and Decide Editorial policy in CORPORATE Meetings! It is OPEN Secret that NOTHING against REFORMS or Economic Policies should be PUBLISHED or AIRED!Media is all about Branding and Marketing! How to communicate the Masses who have NO Access to internet! strict Cyber Laws all set to kill the Virtula Alternative media also!

Indian Holocaust My Father`s Life and Time - SIX HUNDRED NINETY NINE

Palash Biswas

http://indianholocaustmyfatherslifeandtime.blogspot.com/

http://ibasantipurtimes.blogspot.com

1 AUG, 2011, 04.16AM IST, RANJIT SHINDE,ET BUREAU

Q1 results: Robust revenue growth, but profit under pressure for India Inc

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Indian corporates continue to report robust revenue growth going by the quarterly results so far, but profits are under pressure due to rising interest rates and input costs. The good news is despite inflationary pressures, operating profits have not fallen much in the quarter to June.

An analysis by the ET Intelligence Group, based on the performance of 612 companies that have announced results so far, shows aggregate revenue grew 23.5% during the June quarter over the year-ago period. Operating profit before depreciation rose 19.4%, compared with 12.5% in the same quarter previous year. However, net profit growth slowed to 13% from 21% in the year-ago quarter due to higher depreciation and interest outgo.

Two-wheeler players Hero MotoCorp and Bajaj Auto, metals and mining major Sterlite, and software exporters TCS and HCL Technologies led the overall sample growth. The sample excludes companies from the banking, finance, and oil and gas sectors.

The early results yet again reflect resilience on the margin front during the quarter. Operating margin shrank just over 60 basis points to 19.3% despite double-digit increase in raw material costs and salary expenses from the year ago. This validates the Reserve Bank of India's assessment last week that manufacturers still have pricing power. The central bank last week raised interest rates for the 11th time to cool inflation, making loans costlier by 325 basis points in a span of over two years.

Some economists feel such a steep increase in input costs may not necessarily have impacted corporates this time around due to their ability to pass it down the value chain.

"A key worry is manufacturing non-food inflation, which is at 7.3% compared with around 4% during the last six years. This indicates that producers are passing on rising input prices and wage costs," Citigroup Global Markets said in its latest report. While margins have compressed a bit during the first quarter of FY12, producers still have pricing power, Rohini Malkani and Anushka Shah said in the report.

Despite rising prices of goods and services, over 600-odd companies in the sample have recorded double-digit topline growth in each of the last seven quarters. This shows demand continues to be robust, and vindicates the RBI's belief that growth may not decelerate in the near term.

Rising Borrowing Costs a Worry

In its policy review last week, the central bank had indicated that trends in indirect tax payment, merchandise trade and bank credit growth revealed demand might moderate but not sharply. It has retained GDP growth forecast at 8%.
http://economictimes.indiatimes.com/news/news-by-company/earnings/earnings-analysis-/q1-results-robust-revenue-growth-but-profit-under-pressure-for-india-inc/articleshow/9437390.cms

US debt deal offers respite, but downgrade looms! Reuter reports. But I have been writing since the First Gulf War while the Cold War still continued and USSR was INTACT that the War Economy of Imperialist America has to break up soon or later. Debt Crisis is Averted for the time being but the Economy as well as DOLLAR remain in DEEP! We must NOT forget the END of RUBAL and MARK empire at all! Unfortunately Indian Economy is LINKED to DOLLAR thanks to Free Market Economy and India Incs Governace! As US is Predestined for the Ultimate Doom`s Day, India may NOT avert the same Fate! The INDIAN Parliament is Hijacked by INDIA INCS and MNCs!Masses are represented by Billioairs. Media survives on FDI! Journalists do NOT get Wage Board and FM decides Policies meeting with Industrialists! Companies register ROBUST GROWTH at the Cost of EXCLUDED Bahujan Majority! The Brahaminical Hegemony has Connected India`s Fate with ZIONIST Corporate Imperialism for the Sustenace of Manusmriti Apartheid Rule and GENOCIDE Culture! Whereas AMERICA banks on EMERGING Market. china may NOT be Trapped as it SUSTAINED its Production system!But we reamain in dark TOTALLY Mind Controled by Brahaminical Politicians and Political Parties, Media, Intelligentsia and Civil Society! Not only the Misinformed masses by Enlightened Creamy layer is also BEFOOLED and Fate of AIR INDIA Starving Employees does NOT create any difference in Attitude! Who may folw the Global Phenomenon!Parliamentary Procedure is only a Reality show or Soap Opera at best while the Democracy and CONSTITUTION KILLED ! MONSON Session is meant to Pass all the Reforms for Ethnic Cleansing diverting the Main Issues in Media Hype of Civil Society!I know personally Editors and Media CEOs who NEVER meeat the Editorial team and often go on Foreign Trip and Decide Editorial policy in CORPORATE Meetings! It is OPEN Secret that NOTHING against REFORMS or Economic Policies should be PUBLISHED or AIRED!Media is all about Branding and Marketing! How to communicate the Masses who have NO Access to internet! strict Cyber Laws all set to kill the Virtula Alternative media also!

The meeting between Finance Minister Pranab Mukherjee and top industrialists, including Ratan Tata, Anil Ambani, Sunil Mittal and Anand Mahindra, began here on Monday to discuss the current economic scenario.

Other top industry leaders like Narayana Murthy, Shashi Ruia, Y C Deveshwar, Sunil Munjal, Venu Srinivasan, GVK Reddy, GM Rao and RP Goenka are also participating in the discussion.

Commerce and Industry Minister Anand Sharma and top officials like Commerce Secretary Rahul Khullar and Financial Services Secretary D K Mittal are also attending the meeting.

The meeting assumes significance as there are visible signs of slugishness in the different economic indicators like industrial production and rising cost of inputs.

Coincidentally, the Prime Minister's Economic Advisory Council today lowered India's GDP growth forecast for the current fiscal to 8.2 per cent, against earlier estimates of around 9 per cent.

The industry is reeling under a high interest regime for quite sometime now as the Reserve bank has been hiking key policy rates since March 2010 in its bid to check rising inflation.

To tame inflation, which has remained close to double digit mark through April-June quarter, the Reserve Bank has hiked interest rates three times so far this fiscal.

Industry is of the view that rising interest rates is increasing the input cost as loans are getting costlier.

The impact of slowing credit is also visible in industrial output growth rate, which dipped to a nine-month low of 5.6 per cent in May due to poor show of manufacturing and mining sectors and lower off take of capital goods.

Prime Minister's Economic Advisory Council on Monday said India's exports would be impacted if the recovery of the US economy is hindered but expressed optimism that the country would overcome its debt crisis.

"...I can only say, any mishap in the developed world and any factor contributing to the recovery becoming even slower than what it is now will have impact on India in terms of our ability to exports," Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan told reporters here.

He was responding to a query on what could be the implications of the debt crisis in the US where President Barack Obama announced this weekend an agreement between lawmakers over a deal to break the deadlock over raising the country's borrowing limits.

In its forecast for 2011-12, the PMEAC has pegged India's total exports at USD 330.2 billion as compared to USD 250.5 billion in 2010-11.

Rangarajan said that more than the US debt crisis, it would be the economic growth in America that would have a bearing on Indian exports.

"In the second half (of 2008-09), the growth rate came down quite sharply. Therefore, the effect (on exports) will be because of a slowdown in the growth rate of American economy," he said.

India's exports to the US stood at over USD 35 billion in 2009-10, while for the April-December period 2010-11, it was at USD 30 billion.

Ahead of the Tuesday deadline for raising the debt ceiling above its current USD 14.3 trillion, Obama announced that Republican and Democratic congressional leaders have reached an agreement, but cautioned the crisis was not over yet.

The treasury had warned that in case of the US failing to raise the sovereign debt ceiling by August 2, the country would run out of the money to pay all its bills, leading to a possible default on debts for the first time in its history.

"I think this particular crisis may be overcome...I think that when (the) chips are down, some compromise will be worked out," Rangarajan added.

1 AUG, 2011, 11.34AM IST, POOJA SURI,

Change in FDI policy in retail sector

The pace of economic policy reforms have slackened considerably in the recent years. On top of this inflation has been over 9 per cent since December 2010 and in June this year inflation soared to 9.44% from 9.06% in the previous month. The RBI has tried to make this inflation situation comfortable at the cost of increasing the already high interest rates by 50bps in its quarterly review on July 26, 2011.

There has been a change in the policy dimension in the recent weeks - the economy came one step closer to a particularly significant reform in the multi - brand retail sector. A committee of secretaries has recommended 51% of foreign direct investment (FDI) in multi - brand retail with some conditions paving the way for the entry of some of the world's biggest retailers such as Wal - Mart, Carrefour and Tesco to setup shops.

We have been battling inflation for a long time now. The constant trade off between inflation and output is soon going to put pressure on the economy to reform. Allowing FDIs to come in single brand as well as multi brand industries is going to combat inflation better and it is the reform the country requires.

If the FDI policy reform is approved, it can have significant benefits for the Indian economy. Allowing FDIs in organised retail will be significant in checking the price rise. For one there will be a significant rise in the foreign direct investment which may help in solving India's chronic food distribution problem and high food inflation.

The supply chain from the farmer to the consumer which suffers with severe inefficiencies mostly due to the middleman will definitely show an improvement.

However, this reform will not be easy. It has met with resistance from retailers and traders all over the country. India's biggest traders' association held a series of demonstrations against proposals to allow supermarket chains like Wal-Mart and Tesco into the country's retail sector. They believe that the international retail companies by selling at cheaper prices will turn the independent traders into suppliers for these multinational firms.

While we have to increase the size of the economic pie, its time to redistribute the size of its slices. The liberalisation policy adopted by the government in 1991 seems to be on track again. The question now is whether the government will realize the urgency of this liberalisation or not?
http://economictimes.indiatimes.com/news/economy/policy/change-in-fdi-policy-in-retail-sector/articleshow/9440392.cms

The possible slowdown in the US economy as a result of the debt crisis will hit India's growth, C. Rangarajan, chairman of the prime minister's economic advisory council, said Monday.

"Any slowdown in the US will have an impact on India in terms of our ability to export," Rangarajan told reporters about the implications of US debt crisis on Indian economy.

Rangarajan, also a former governor of the Reserve Bank of India, pointed out that Indian exports had declined sharply in the second half of 2008-09 due to a slowdown in the US economy.

In its economic outlook for 2011-12, the prime minister's economic advisory panel has pegged India's total exports for the current fiscal at $330.2 billion as compared to $250.5 billion in the previous year.

Rangarajan said merchandise trade deficit is estimated to rise to $154 billion in 2011-12, accounting for 7.7 percent of the country's GDP. In 2010-11, merchandise trade deficit was $130.5 billion or 7.59 percent of GDP.

India's exports surged 46.45 percent at $29.21 billion in June as compared to $19.94 billion in the same month last year, according to official data released Monday.

During the first three months of the current fiscal, exports grew 45.71 percent to $79 billion, while imports increased 36.22 percent at $110.61 billion.

Rangarajan said exports were strong in the first quarter of the fiscal but might ease in the remaining part of the year.

The Lok Sabha was on Monday adjourned for the day after paying tributes to former Haryana Chief Minister and sitting member Bhajan Lal, who died during the inter-session period. In the Rajaya Sabha uproarious scenes were witnessed over the government's handling of the corruption issue.

As soon as the House met on the first day of the monsoon session of Parliament, Speaker Meira Kumar made obituary reference to Lal, a member from Hissar, who died on June 3.
She described him as an able administrator and champion of the causes of the masses and worked for the uplift of the weaker sections throughout his political career spanning over four decades.
The House also made obituary references to former members Dharmabhiksham, Sribatcha Digal, Sripal Singh Yadav, L S Tur and Chaturanan Mishra.
The House also mourned the loss of lives in twin attacks in Norway, the terrorist attack in Mumbai on July 13, train accidents at Thanagaon on July 7 and at Fatehpur, both in Uttar Pradesh, on July 10.
"I am sure the House would join me in expressing grief over these terrorist attacks and tragic accidents," Ms. Kumar said.
The members observed silence for a while before the House was adjourned for the day.
Adjournment in RS
The BSP and the Opposition BJP forced adjournment of the Rajya Sabha protesting delay in introduction of new law on land acquisition and scams, including 2G spectrum.
The Upper House witnessed uproarious scenes, both in the Question Hour and at noon with BSP members trooping into the well and shouting slogans, blaming the Congress-led UPA government for the plight of the farmers.
The BJP, on the other hand, sought to corner the government on various scams which are hogging the headlines.
In an apparent bid to turn the table on the Congress which has launched a movement against land acquisition in Mayawati-ruled Uttar Pradesh, MPs from her party made a strong demand for early introduction of new land acquisition amendment bill. The Congress is working hard to gain ground in the state which goes to elections next year.
Congress General Secretary Rahul Gandhi had promised a new law which will give a fair deal to those displaced by land acquisition. Mr. Gandhi had also supported the farmers' agitation in Greater Noida on Delhi's outskirts.
New Rural Development Minister Jairam Ramesh has since released a draft bill, which has provisions for higher compensation and rehabilitation of farmers losing land.

Pranab promises India Inc 'second chapter' of reforms

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The Finance Minister, Mr. Pranab Mukherjee and Minister for Commerce and Industry, Mr. Anand Sharma with captain of Industry, Tata Group, Mr. Ratan Tata,Chairman of CESC Ltd., Mr. R. P. Goenka,Chairman and Managing Director, Bharti Airtel, Mr. Sunil Bharti Mittal, at a meeting, in the Capital on Monday. Kamal Narang
NEW DELHI, AUG 1:
The Finance Minister, Mr Pranab Mukherjee, has assured India Inc of a 'second chapter' of economic reforms, alongside concrete measures aimed at eliminating any 'trust deficit' between the Government and industry.
"There was an assurance of action in a time-bound manner. On things like the Goods and Services Tax (GST) and the Direct Taxes Code (DTC), the Finance Minister himself expressed his readiness to act and the need for Government, politicians and industry to come together," Mr Anand Mahindra, Vice-Chairman of Mahindra & Mahindra, told reporters after a nearly two-and-a-half-hour brainstorming session between the Finance Minister and the honchos of Corporate India here on Monday.
"The meeting was a broad discussion about creating a new coalition between business and the Government in order to create a second chapter of reforms," Mr Mahindra added.
Most industry leaders present at the meeting came out visibly satisfied, with some even going on to say that the "trust deficit" between India Inc and the Government has now "vanished".
Today's meeting between the Government and industry came in the backdrop of widespread perception that economic growth was faltering on account of lack of adequate movement on policies and institutional processes. The Finance Minister sought to allay fears of policy paralysis, stating that he found no basis for such cynicism. Mr Mukherjee told captains of industry that he found such views to be based more on perception than facts, as several significant policy initiatives had, in fact, been taken in the recent past and many others were in the pipeline.
Mr Anand Sharma, Commerce and Industry Minister, was also present at the meeting. He later told reporters that industry leaders have been asked to come up with five suggestions each on how reforms should be taken forward. They have four weeks to do so and the Finance Ministry will provide the Government's response to them after consultations with other ministries.
The Commerce Minister also noted that this was only the first of many such interactions planned in the coming days between Government and industry. Mr Anil Ambani, Chairman, Anil Dhirubhai Ambani Group (ADAG), said in a statement issued after the meeting that Monday's interaction would certainly go a long way in building the momentum needed to catalyse economic growth. He said both ministers were receptive to a large number of suggestions made by industry to accelerate growth in key infrastructure sectors.
Mr Sunil Bharti Mittal, Chairman of Bharti Airtel Group, told reporters that the meeting was very satisfactory and that he had come out of it extremely confident that Government was "fully behind Indian industry" and that they would look at acceleration of industrial activity as well as the country's economy.
krsrivats@thehindu.co.in
Keywords: Pranab Mukherjee, India Inc, 'second chapter', economic reforms, concrete measures, 'trust deficit'

http://www.thehindubusinessline.com/industry-and-economy/government-and-policy/article2313996.ece?homepage=true

01/08/2011

Anna ready to go to jail if fast not allowed

Police mum on Hazare request for fast; Anna fumes

New Delhi: Gandhian Anna Hazare Monday said police has not indicated whether or not he can hold a hunger strike against corruption at the Jantar Mantar here from Aug 16.
"If they don't let us sit on fast, I will go to jail," Hazare said. "This is India's second struggle for freedom and I will fight against corruption till my last breath."
"We sent an application to the police commissioner seeking permission for the fast but have got no response. There has been no formal letter denying us permission, from anyone," Hazare told reporters here.
Hazare's team member and activist Arvind Kejriwal added: "Until now we have not got any rejection letter. They (police) asked for clarifications, we gave them. As of now we are going ahead with our fast."

Delhi Police Thursday said prohibitory orders banning any gathering of five or more people will be imposed in places of Delhi, including Jantar Mantar area, during the monsoon session of parliament that began Monday.
The curbs were Friday withdrawn from Jantar Mantar and India Gate areas.
Dissatisfied with the government version of the anti-graft Lokpal bill, Hazare has decided to go on fast from Aug 16.
The anti-corruption crusader went on a 97-hour fast in April at Jantar Mantar demanding a strong anti-graft Lokpal bill.
He also sat on a one-day token fast June 8 at Rajghat, the memorial to Mahatma Gandhi, to denounce the police crackdown on yoga guru Baba Ramdev's anti-corruption protest in June.
Source: IANS

01/08/2011

LS adjourned till tomorrow; uproar in RS

The Lok Sabha was on Monday adjourned for the day after paying tributes to former Haryana Chief Minister and sitting member Bhajan Lal, who died during the inter-session period. According to TV reports, uproarious scenes were witnessed in the Rajya Sabha over the government's handling of the corruption issue.

As soon as the House met on the first day of the monsoon session of Parliament, Speaker Meira Kumar made obituary reference to Lal, a member from Hissar, who died on June 3. She described him as an able administrator and champion of the causes of the masses and worked for the uplift of the weaker sections throughout his political career spanning over four decades.
The House also made obituary references to former members Dharmabhiksham, Sribatcha Digal, Sripal Singh Yadav, LS Tur and Chaturanan Mishra.
The House also mourned the loss of lives in twin attacks in Norway, the terrorist attack in Mumbai on July 13, train accidents at Thanagaon on July 7 and at Fatehpur, both in Uttar Pradesh, on July 10.
"I am sure the House would join me in expressing grief over these terrorist attacks and tragic accidents," Kumar said. The members observed silence for a while before the House was adjourned for the day.

Main opposition BJP and other parties on Monday forced a brief adjournment of the Rajya Sabha by creating uproar over several issues including the 2G spectrum scam. Immediately after Chairman Hamid Ansari read out obituary references, BJP members were up on their feet raising the issue of statements made by former Telecom Minister A Raja in the court.
They were supported by members of AIADMK who displayed copies of a Tamil newspaper. BSP members raised the issue of farmers plight and were seen moving into the aisles.
Dr Ansari said he could not hear anyone as members were speaking simultaneously.Minutes into the din, he adjourned the house for 15 minutes till 12 noon.
Source: PTI
Also read:
Parliament should function smoothly: PM
01/08/2011

BJP wants discussion on PM's role in 2G scam

New Delhi: The Bharatiya Janata Party (BJP) said Monday that it wanted an urgent discussion in parliament on the role of Prime Minister Manmohan Singh and Home Minister P. Chidambaram on the 2G spectrum scam.

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Manmohan Singh and then finance minister Chidambaram were "an equal party" in the corruption scam, BJP spokesperson Prakash Javadekar told reporters.
The party has moved a notice for discussion on the issue in the Rajya Sabha.
"We want an urgent discussion on the statement issued by the Prime Minister's Office yesterday (Sunday) distancing the prime minister from the 2G spectrum scam," Javadekar said.
"He and then finance minister P. Chidambaram are an equal party in the decision," he said.

The Rajya Sabha member added that they would press for a discussion in the house Tuesday.
A BJP leader said the two leaders were key targets of the party and it wanted action against them.
"Till Sep 8, we will keep demanding the resignation of prime minister and home minister," a BJP leader told IANS.
The Prime Minister's Office Sunday strongly rebutted allegations in a leading publication that Manmohan Singh had "looked the other way" despite being in the knowledge of irregularities in the allocation of 2G spectrum licences.
Source: IANS

FM looking to unleash 2nd wave of reforms: Anand Mahindra

Excerpts from What's Hot on CNBC-TV18 Watch the full show Â»
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Mah and Mah
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Are Mutual Funds betting on Mah and Mah?

Published on Mon, Aug 01, 2011 at 20:28 | Source : CNBC-TV18
Updated at Mon, Aug 01, 2011 at 22:51
he Finance Minister Pranab Mukherjee met top leaders of the Indian industry - including Ratan Tata, Anil Ambani and Sunil Bharti Mittal to discuss the state of the economy, the reform agenda and crucial policy changes.
In an interview to CNBC-TV18, Anand Mahindra, vice chairman and managing director of Mahindra and Mahindra said, it was a very significant and productive meeting. "FM is looking to build a coalition between industry and government to create a second wave of reforms."
Also read: FM lends an ear to India Inc, industry feels reassured
Below is the transcript of the interview. Also watch the accompanying videos.
Q: Was policy paralysis discussed in the meeting? Was there an acknowledgement from the government that indeed there has been a policy paralysis?
A: This was one of the most productive meetings I have attended. That issue was taken up head on, and there was no shying away from it. The wonderful thing about this meeting was that at the end of it the Finance Minister said that he is looking for more granular suggestions from all of us. He wants us to provide those within four weeks. He is willing to give a time bound response.
He is looking to build a coalition between industry and government to create a second wave of reforms. So, this was a very significant meeting. All of us were very encouraged. I think most of us who came up with suggestions and talked about challenges also spoke about the fact that there is no darkness about every thing in India. This is a very strong economy. I think you have seen our own figures today show that the rural consumption story is alive. So, there was a feeling of facing the challenges, but recognising that there was great strength in this economy and most importantly that we were going to work together to create new momentum.
Q: What were the specific challenges that industry raised? What are those specific areas that have been identified by the Finance Minister and industry where government intervention is needed urgently?
A: There is nothing new in all the topics that came up. The media has infact highlighted all of these. So, there is nothing new I can add.
We are talking about high interest rate regimes, although we have recognised that given the need to curb inflation, there was an absolute necessity to win the battle. But we would try and win the war on long-term inflation by creating interventions both by business and the government on the supply side. We should have agricultural policy reforms, investment in roads, reforms in power so that, on a long-term basis, you would have a society and an economy less prone to inflationary trends. So, this was a big picture conference. This was a discussion, which I am very glad did not get bogged down in details.
There was a galaxy of secretaries present there who knew all the answers. Somebody put it very eloquently that look all of us know the problems, and we know the answers to them. The important thing was that this was about collectively generating a will to attack these and for the world to once again recognise that India is going to be an engine of growth.
Q: You spoke about how the government is keen to unleash the next wave of reforms. There are several crucial bills that are currently pending in Parliament. There are several reforms on the agenda which haven't actually moved forward. Was some indication given to you by the Finance Minster about the reforms that the government feels are politically feasible and they will be able to move ahead with?
A: There was no giving up on anything. The interesting thing about this was that it was not as if the government said that this is what we can do or what we can't do. The core theme of this meeting is what we can do together. So, for example, on the DTC (Direct Tax Code) and GST the Finance Minister gave us a lecture on how important it was for the economy. He talked about the need to build a political consensus and how business and government needs to work together to get it done. So, I see a very distinct shift in how we are going to attack these challenges. This was not us versus them, this was not simply to listen and to digest. This was really a beginning, if you will, of a suggested public private partnership.
Tags: Pranab Mukherjee, Finance Minister, Ratan Tata, Sunil Bharti Mittal, Anand Mahindra, Mahindra and Mahindra
http://www.moneycontrol.com/news/business/fm-looking-to-unleash-2nd-wavereforms-anand-mahindra_571634.html
Inviting investments from South Korea and other countries into the infrastructure sector, President Pratibha Patil on Tuesday said nearly $1 trillion will be spent in the coming years to improve India's roads, ports, railways and other core sectors.

"India attaches great importance to improving its infrastructure, for which about 1 trillion US Dollars will be required in the coming years.
"This provides a great investment opportunity for foreign companies, including those from Korea," Ms. Patil, who is on a three-day visit to South Korea said.
"In expanding and modernising our roads, highways, airports, sea ports and railways, we will require investment from foreign entities and firms.
"We look forward to greater participation in this endeavour by Korean companies," she said inaugurating a business interaction organised by Korea Chambers of Commerce.
"To us, in India, the Korean economic miracle is inspiring. It was the hard work of the people of this country, coupled with the successful business model that was adopted, which has created the incredible economic success that the Republic of Korea today represents.
"In India too, you spotted the economic opportunities long before others, and this first-mover advantage has enabled Korean companies to reap great profits in our country.
"Hyundai, Samsung and LG are household names in India today," the President said.
Ms. Patil said that both India and Korea are exploring the possibility of upgrading the Comprehensive Economic Partnership Agreement (CEPA), implemented since January 2010, to boost trade between them.
A high-level discussion in this regard is to begin in late September.
"Korean companies have adjusted extremely well to conditions in India. You are also making India the manufacturing hub for exports to third countries in South Asia, the Middle East and even Eastern Europe.
"Our bilateral trade rose by 40 percent last year, and by current projections is slated to reach 21 billion US Dollars during the current calendar year, and would comfortably reach the level of 30 billion US Dollars by 2014, the target we have set for ourselves.
"President Lee and I discussed the possibility of further upgrading our CEPA," the President said adding that "expert level discussions will commence from late-September this year."
The Indian President asked the North-East nation to further facilitate exchange of expertise between the two countries in industry and service sectors.
"Our IT companies are among the best in the world, and will be able to help Korean businesses in reducing costs and enhancing competitiveness.
"Similarly, Indian pharmaceuticals are of high quality coupled with low prices, and will be beneficial to Korean consumers," Ms. Patil said.
The function was attended by members of Korean Chambers of Commerce and a delegation of about 30-members led by Deep Kapuria, Chairman, CII, National Committee on Automatation and Robotics.

Investors boosted stocks and sold some safe-haven assets on Monday, betting that a last-minute deal in Washington meant the US economy would avoid default.

Wall Street looked set for significant gains but caution was the watchword, with the dollar falling to a new record low against the Swiss franc.

There remained a widespread assumption that ratings agencies could downgrade US Treasuries from their vaunted triple-A status, a move that would impact the valuation of numerous other assets.

Investors were also digesting data pointing to stagnant growth in the global economy, with Chinese factory activity slowing and euro zone manufacturing falling.

After a tense weekend spent in search of a compromise to allow the US borrowing limit to be lifted, US President Barack Obama said leaders from both parties reached a deal to cut the budget deficit by $1 trillion over 10 years, with additional savings of $1.4 trillion possible.

The plan must be passed by both houses of Congress and will still face some opposition. But it is expected to allow the debt ceiling to be raised, avoiding the prospect of Washington not being able to pay its bills and defaulting.

World stocks as measured by MSCI climbed 0.7 per cent with emerging market shares up 1.3 per cent.

There were large gains in Japan, where the Nikkei rose 1.3 per cent. In Europe, the FTSEurofirst 300 rose 0.5 per cent with banking shares enjoying a big boost.

But scepticism persisted about how long the rise in risk sentiment might last, given the likely US downgrade that some believe could come this week.

"It is a relief rally on the back of the parties coming together, but it could only last for a couple of days as the United States could now face a ratings downgrade," Manoj Ladwa, senior trader at ETX Capital, said.

"That would impact every part of the United States." It would also raise issues for other assets. Some large pension funds, for example, will only hold triple-A debt, meaning they may have to sell Treasuries and buy elsewhere, crowding trades into German Bunds, for example.

The relative valuations of a number of assets, meanwhile, are based on their divergence from supposedly risk-free Treasuries.

UNWINDING

An unwinding of investor positions taken to protect against US default was short-lived.

Gold fell more than 1 per cent before recovering to stand just half a per cent down. It was at $1,618 an ounce after hitting all-time nominal highs last week.

Early dollar gains against the Swiss franc reversed, leaving the US currency at a new record low. The franc has seen intense interest from investors as the twin euro zone and US debt crises have stirred markets this year.

"The problems are not fully solved so I think we will see a muted reaction," said Richard Falkenhall, currency strategist at SEB in Stockholm.

"You have the risk of ratings agency downgrades, and no further fiscal stimulus in this deal," he said.

On bond markets, yields on US Treasuries and core euro zone debt rose, reflecting some selling to release money parked in fixed income in the runup to the US deal.

India crashes to an embarrassing defeat

S. RAM MAHESH
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APEngland's Tim Bresnan celebrates with team members after taking the wicket of India's captain MS Dhoni, on the fourth day of the second Test at Trent Bridge, Nottingham, England on Monday.
India suffered a crushing, mortifying defeat in the second Test at Trent Bridge, both the manner and the magnitude (319 runs) ill-befitting a team ranked No. 1.
Asked to bat five sessions and a bit, the batsmen were roughed up by a disciplined, bruising performance from England's seamers, who used their height and their strength forcefully.
There were pockets of resistance — Sachin Tendulkar's 56, Harbhajan Singh's 46, Praveen Kumar's 25 — but they merely delayed the inevitable. England took a 2-0 lead, Tim Bresnan adding to his second-innings 90 with five wickets.
India has a formidable task ahead of it in the two remaining Tests, but there is time yet to pursue that line of thought.
The immediate need is an account of Monday, the fourth day of what had shaped to be an enthralling contest before ending anti-climactically.
Impeccable delivery
Stuart Broad began England's victory charge with an impeccable delivery to Rahul Dravid. The angle of the delivery — it was directed from wide of the crease into the right-hander — and the movement off the wicket — it straightened after pitching on the seam — complemented the three-quarter length.
Dravid's hands flicked out like a switchblade; the thin edge was taken by the 'keeper.
V.V.S. Laxman fell in the second over after lunch, to another magnificent delivery. James Anderson produced an in-swinging leg-cutter — the action of the wrist and fingers can sometimes conjure this magic ball (as it can, the out-swinging off-cutter), especially if the fingers drag down the side of the ball.
Laxman's off-stump was violently unearthed.
Bresnan, who had enjoyed his time batting earlier in the day, then got two wickets with two wickedly directed bouncers.
Abhinav Mukund might have narrowly escaped a king pair (it was Bresnan who put the catch down at second slip, a difficult chance), but he had no chance against a short ball of considerable pace that seamed across him. The ball looped to slip, bringing to memory the young opener's dismissals in the West Indies.
Suresh Raina was caught between ducking, swaying, and pulling in the first innings. He chose valour in the second (or fool hardiness, depending on how you see the world). He had no control of the hook stroke: he didn't play the ball; the ball played him. The top-edged hook travelled straight to fine-leg.
Bresnan also had Yuvraj Singh in trouble with the short ball, hitting the left-hander's fingers with a particularly nasty one. Broad smashed Yuvraj's elbow once, after the batsman had advanced!
Yuvraj looked to be walking off (perhaps he thought it was tea); eventually he turned and shook his head, and England's review of a caught-behind decision was of no avail.
Bresnan eventually overwhelmed Yuvraj, having him well caught at short-leg with a lifter.
The next ball found M.S. Dhoni offering no stroke; because the seam had been scrambled, swing, whatever little there was, had been turned off. The 'lbw' decision was fairly straightforward for Asad Rauf, who's had an excellent two Tests.
At the other end, Tendulkar appeared to be batting in another match. When the ball was pitched up, it was driven surely, majestically.
When it was short, it was ducked under. A pity none of his mates, barring Harbhajan, wanted to hang around for the master-class. It ended when his bete noire, Anderson, trapped him 'lbw' with a dramatic break-back.
Embattled bowling
The distressing batting performance followed an embattled bowling effort — England piled on the pain on Monday morning, continuing Sunday's charge. Matt Prior (73) feathered one behind, but Bresnan and Broad (44) plundered a tired attack.
There are few more exhausting things for a bowler than contending with a line-up that bats deep — and bats deep convincingly, the lower-order men playing with a batsman's judgment and repertoire.
Fatigue
For Ishant Sharma and Praveen Kumar, who've bowled more than 210 overs between them in less than two weeks' time, it was an effort just to run up.
Harbhajan, who it's learnt is struggling with a stomach muscle injury, didn't bowl, and Yuvraj and Raina's part-time offerings were — as Shane Warne suggested on commentary — as inviting as a bowl of Caesar salad and a side of fries.
Substitute Wriddhiman Saha sparked a moment of fielding brilliance to run Broad out; Praveen got another to bounce off a length to end Bresnan's stay: it mattered little, for the Test was long gone by then.
Scoreboard
England — 1st innings: 221.
India — 1st innings: 288.
England — 2nd innings: A. Strauss c Dhoni b Sreesanth 16 (52b, 1x4), A. Cook c Yuvraj b Ishant 5 (11b, 1x4), I. Bell c Laxman b Yuvraj 159 (206b, 24x4), K. Pietersen c Dhoni b Sreesanth 63 (120b,7x4), E. Morgan c Dhoni b Praveen 70 (88b, 8x4, 1x6), M. Prior c Dhoni b Praveen 73 (60b, 10x4, 1x6), J. Trott c Dravid b Praveen 2 (10b), T. Bresnan c Dravid b Praveen 90 (118b, 17x4), S. Broad (run out) 44 (32b, 5x4, 2x6), G. Swann c (sub, Saha) b Ishant 3 (12b), J. Anderson (not out) 1 (15b); Extras (b-9, lb-5, w-2, nb-2): 18; Total (in 120.2 overs): 544.
Fall of wickets: 1-6 (Cook), 2-57 (Strauss), 3-219 (Pietersen), 4-323 (Bell), 5-329 (Morgan), 6-339 (Trott), 7-458 (Prior), 8-540 (Broad), 9-540 (Bresnan).
India bowling: Praveen 36-5-124-4, Ishant 29.2-4-131-2, Sreesanth 27-5-135-2, Yuvraj 11-0-51-1, Harbhajan 9-1-47-0, Raina 8-0-42-0.
India — 2nd innings: A. Mukund c Strauss b Bresnan 3 (41b), R. Dravid c Prior b Broad 6 (12b, 1x4), V.V.S. Laxman b Anderson 4 (7b, 1x4), S. Tendulkar lbw b Anderson 56 (86b, 8x4), S. Raina c sub b Bresnan 1 (5b), Yuvraj c Cook b Bresnan 8 (32b, 1x4), M.S. Dhoni lbw b Bresnan 0 (1b), Harbhajan c sub b Bresnan 46 (44b, 8x4, 1x6), Praveen b Anderson 25 (25b, 5x4), Ishant (not out) 8 (25b), Sreesanth b Broad 0 (8b); Extras (b-1): 1; Total (in 47.4 overs): 158.
Fall of wickets: 1-6 (Dravid), 2-13 (Laxman), 3-31 (Abhinav), 4-37(Raina), 5-55 (Yuvraj), 6-55 (Dhoni), 7-107 (Tendulkar), 8-129 (Harbhajan), 9-153 (Praveen), 10-158 (Sreesanth).
England bowling: Anderson 17-3-51-3, Broad 14.4-5-30-2, Bresnan 12-2-48-5, Swann 3-0-21-0, Pietersen 1-0-7-0.
Man of the Match: Stuart Broad.
http://www.thehindu.com/sport/article2313636.ece?homepage=true

The Debt Deal: Barack Obama's Big Mistake

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By David Magee | August 1, 2011 2:01 PM EDT
Political observers are already questioning why President Barack Obama didn't demand more from Republicans in the debt deal.
They suggest Obama yielded more leverage to Republicans than deserved, considering conservatives had already agreed that raising the debt ceiling was a must. But pushing Republicans harder in recent days, with an Aug. 2 deadline looming, became a risky proposition for the President and the nation.

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(Photo: REUTERS / Jonathan Ernst)

U.S. President Barack Obama talks about the debt ceiling crisis in the briefing room at the White House in Washington July 31, 2011.

Analysis: Asia dodges one debt bullet, plenty more in chamber

Debt Deal Doubts Lower Wall St

US debt crisis: angry Democrats turn their fire on Obama

Angry Democrats turned their fire on President Barack Obama with unprecedented ferocity on Monday, accusing him of a capitulation to Republicans that has seriously harmed his chances of re-election in 2012.

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President Barak Obama talks in the Diplomatic Reception Room of the White House in Washington Photo: AP

By Alex Spillius, Washington

6:53PM BST 01 Aug 20119 Comments

Though the White House boasted about a triumph for compromise, Left-wingers felt betrayed, saying the price of striking a deal to raise the US borrowing limit had been much too high.

Representative Emanuel Cleaver, a Missouri Democrat, said of the deal: "On the surface it looks like a Satan sandwich."

Another, Cedric Richmond from New Orleans, said he feared it would have a "devastating impact" on low earners, with the working and middle classes bearing the brunt of the cuts.

The bill was expected to pass the Senate on Monday night, but party leaders from both sides in the House were non-committal on whether they had the necessary votes. Today is the deadline set by the US Treasury to raise the debt ceiling and avoid the first default in the country's history.

However, it could still run into last minute problems. An alliance in the House of Representatives of discontented liberal congressmen and Tea Party Republicans who want even more spending cuts could yet unite to defeat the bill.

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The agreement reached by the White House and party leaders in the House and Senate during tense talks over the weekend will allow Mr Obama to borrow a further $2.4 trillion to allow the government to meet its debt obligations into 2013.

But it came with considerable strings attached to cut the ballooning $14.3 trillion national debt.

About $1 trillion will be cut immediately from government spending, with a further $1.4 trillion to follow by the end of the year.

Liberals who once lionized Mr Obama were enraged that the White House failed to twist Republicans' arms in Congress and include revenue increases in the deal, through closing tax loopholes for oil companies and removing various tax deductions that benefit the wealthy. The savings are made up entirely of spending cuts, though conservatives have had to swallow unwanted savings on the military.

The left-leaning grassroots organisation MoveOn described the deal as "grotesquely immoral".

"Our members are wondering, 'What in God's name is going on in D.C.?'" said Justin Ruben, executive director of the group, which claims five million members. "The country needs jobs, and Washington is debating what vital programme needs to be cut."" Michael Tomasky, a leading liberal commentator, wrote: "This is the lowest moment of Obama's presidency."

While George W Bush wrecked the country "through rank incompetence", Mr Obama "is simply handing the Republicans the keys to the house and saying 'take what you want'," he said in the Daily Beast.

In the New Republic, Jonathan Chait said: "There's a limit to how much faith one can place in a man who has so badly misjudged his political opponents time and time again."

Robert Borosage, co-director of the Campaign for American Future, a liberal think tank, accused Mr Obama of yielding to "the Tea Party terrorists - the extremist faction willing to hold the economy hostage to get their way".

The cuts would not improve the slow recovery, which would in turn affect Mr Obama's prospects of a second term, he claimed.

Figures revealed yesterday showed that US manufacturing grew at its slowest pace in two years in July as new orders contracted.

"I think he is in increasing danger. The whole argument against him that he has been there four years and there are no jobs, that he has failed, will be an increasingly strong argument," said Mr Borosage.

Without a major push to create jobs, the alliance of young voters, African Americans , Latinos and single women that elected Mr Obama in 2008 may well not turn out to vote next time, he added.

"Right now, his base is all he has left from 2008. The independents and working-class Democrats have begun to flee," said Ed Morrissey on the Hot Air blog. "This deal won't bring those voters back, and his source of organization and funding may largely give up on him."

The White House defended the deal, saying it was "not the case that Democrats "got nothing".

"We think the president's leadership has been essential to this process," said Jay Carney, the White House press secretary.

http://www.telegraph.co.uk/news/worldnews/us-politics/8675899/US-debt-crisis-angry-Democrats-turn-their-fire-on-Obama.html

1 AUG, 2011, 10.11PM IST, REUTERS

Wall Street falls 1 per cent on weak data, deal uncertainty

EDITORS PICK

NEW YORK: US stocks dropped 1 per cent on Monday as weaker-than-expected US manufacturing data and uncertainty over the debt deal in Washington left investors wary about the outlook for the economy and the market.

Healthcare stocks, including United Health, were among the worst performers as investors feared the debt-ceiling deal could lead to cuts in Medicare and other federal health programs, analysts said.

Early gains over the deal quickly faded as investors still saw road bumps ahead in tackling the US deficit problem, and as the Institute for Supply Management (ISM) reported the US manufacturing sector grew at the slowest pace in two years in July.

The ISM report also showed new orders contracted. "It was a patched compromise deal, with still a lot of uncertainty, so people don't want to get their hands on this issue. If the deal passes, we've averted the threat of a default, but I always thought that was unlikely," said Carl Kaufman, who helps manage just under $2 billion at the Osterweis Strategic Income fund in San Francisco.

Lawmakers have until Tuesday to come up with a deal to avoid a debt default. They were due to vote later Monday on the White House-backed agreement, which includes spending cuts of $2.4 trillion over 10 years.

Even though a default was considered unlikely by many investors, the threat of a credit rating downgrade continued to weigh on sentiment after Wall Street's worst week in a year last week.

The Dow Jones industrial average was down 128.97 points, or 1.06 per cent, at 12,014.27. The Standard & Poor's 500 Index was down 15.04 points, or 1.16 per cent, at 1,277.24. The Nasdaq Composite Index was down 33.63 points, or 1.22 per cent, at 2,722.75.

The S&P health care index fell 2.5 per cent, leading losses among S&P 500 sectors.

Shares of United Health were down 6.2 per cent at $46.53 while shares of Humana Inc dropped 4.3 per cent to $71.36, despite Humana reporting a higher-than-expected second-quarter profit.

Among other health-care stocks, shares of Pfizer were down 1.8 per cent at $18.90.
http://economictimes.indiatimes.com/markets/global-markets/wall-street-falls-1-per-cent-on-weak-data-deal-uncertainty/articleshow/9446969.cms

20 firms like JSW Energy, NTPC, Nalco, Tata Power, Welspun Energy show interest in UMPP project

As many as 20 companies have shown interest in setting up the 4000 MW Ultra Mega Power project ( UMPP)) at Bedabahal in Orissa, sources said.

The companies include JSW Energy, NTPC, Nalco, Tata Power, Welspun Energy, AES India, Torrent Power, L&T Ltd, Adani Power and GVK Energy Ventures Pvt Ltd, they said.

Lanco Hydro Power Ventures Pvt Ltd, GMR Energy, Senator Energy, Jaiprakash Power Ventures, Gujarat Paguthan Energy Corporation, CESC Ltd, Jindal Power Ltd, Sterlite Energy Ltd, Vadinar Power Company Ltd and Aditya Birla Power Venture Ltd havealso shown interest in the project, the sources added.

Economic Advisory Council scales down growth to 8.2 %

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C. Rangarajan

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Inflation will remain at 9 % or higher till October: Rangarajan

Painting a grim economic scenario in the wake of an uncertain global outlook and high domestic inflation coupled with a subdued trend in investment and factory output, the Prime Minister's Economic Advisory Council (PMEAC) on Monday scaled down its GDP (gross domestic product) growth projection for the current fiscal to 8.2 per cent from around 9 per cent estimated earlier.

In its 'Economic Outlook for 2011-12', which was submitted to Prime Minister Manmohan Singh last month, the PMEAC also maintained that headline inflation would remain at 9 per cent or higher till October and thereafter ease to 6.5 per cent by the end of March, 2012. In the event, the Reserve Bank of India (RBI) would certainly continue with its tight monetary policy for some more months to come.

"The Council expects that the headline WPI inflation rate would continue to be at 9 per cent or higher in the months of July-October, 2011. There will be some relief starting from November, but even in December the headline numbers may remain high. However … we expect inflation to be around 6.5 per cent in March 2012... It is certain that the RBI will have to continue to maintain a tight monetary policy stance for quite some time, given the combination of domestic inflationary situation, the international backdrop and the fairly strong growth that the domestic economy is experiencing," the report said.

Briefing the media on the Council's projections, PMEAC Chairman C. Rangarajan sought to argue that in such an uncertain scenario, even the scaled-down growth would be commendable. "The projected growth rate of 8.2 per cent, though lower than the previous year, must be treated as high and respectable, given the current world situation," he said, quoting the report.

Farm output

However, it is the Council's projection on the farm front that appeared to be of concern. The country's agriculture output, he said, is projected to grow at 3 per cent in the current fiscal as against 6.6 per cent in the previous fiscal, provided the ongoing monsoon remains favourable during the next two months.

Evidently, the overall uncertain environment at home and abroad has led to a slowdown in investment as well as inflow of foreign capital and as a result, the industrial performance has weakened. In 2011-12, the sector is expected to grow by 7.1 per cent as compared to a higher 7.9 per cent expansion in 2010-11. Explaining the reasons for the deceleration in growth, PMEAC Member Saumitra Chaudhuri said: "Domestic industries are uncertain about their investments, because they feel, right or wrong, something is not moving... Surely foreign investors will be doubly conscious."

Even the services sector, which has a share of over 50 per cent of the GDP, is projected to grow at 10 per cent this fiscal, down from 10.3 per cent estimated earlier though higher than the 9.4 per cent in the previous fiscal. "We have looked at what is happening in the U.S. and Europe, which have an impact on Indian economy... International situation has not improved since February, 2011. It has rather deteriorated... the current international environment is not conducive for rapid growth," Dr. Rangarajan said.

Dr. Rangarajan said: "To keep the economy growing at 9 per cent, it is important to increase the fixed investment rate.''

As for the fiscal deficit, the Council expects the government to achieve its target for 2011-12 at 4.6 per cent but it would be at 4.7 per cent with off-budget liability of 0.1 per cent for the Centre and 2.1 per cent for States. "Revenue may be equal to the budgeted level, but expenditure needs to be checked," Dr. Rangarajan said.

The PMEAC stressed the urgent need to ensure that the Goods and Services Tax (GST) materialises by the next fiscal as this along with the Direct Taxes Code (DTC) would play a key role in the medium-term as it would help in the government's efforts to boost revenue and reduce tax arrears.

Turning to the issue of capital flows, the PMEAC report said that inflows this fiscal were likely to go up to $72 billion from $61.9 billion last fiscal.

Keywords: Economic Advisory Council, economic growth, PMEAC, economic outlook, Dr. C. Rangarajan

http://www.thehindu.com/business/Economy/article2313995.ece

BUSINESS » ECONOMY

July 31, 2011

Reserve Bank springs a big surprise

C.R. L. NARASIMHAN
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Reserve Bank of India Governor D. Subbarao

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Recognises the signs of a slowdown but says that it is essentially confined to sectors that are sensitive to interest rates

Going by newspaper headlines and television commentaries, the larger than expected hike in the repo rate might seem to be the main, if not, the only noteworthy feature of the Reserve Bank's first quarter review of monetary policy.

Before the policy statement, there was a near consensus among market participants that the RBI was nearing the end of its monetary tightening phase.

Since March, 2010, policy rates have been raised by 425 basis points in ten instalments. Therefore, even though inflation has remained persistently high, the RBI will act by raising the rates but by not more than 25 basis points. Lending credence to the view has been the fact that there has been a slowdown and a steep hike in interest rates on top of the past cumulative monetary actions will be detrimental to economic growth.

In short, the view among market participants was that the RBI would 'pause' after taking another 'baby' step, a 25-basis point increase.

In that event, the 50-basis point increase has come as a 'shocker'. Predictably, the stock markets tumbled. However, as always, it is difficult to attribute the steep decline in the indices to one factor alone. Global stock indices have been under pressure at the same time. The inability of the U.S. administration to reach an agreement with the Opposition over some critical issues of the federal budget has been the main cause for worry for the global stock markets.

Returning to the monetary policy, it is likely that the RBI intended to spring a surprise. So persistent has been inflation that something out of the way was needed. In that sense, the larger than expected hike in the policy is akin to past RBI actions in announcing monetary measures in between two policy statements to catch the markets off guard.

However, in those days there were four policy statements and the period between two statements was sufficiently long. The impact of an unexpected interest rate change would consequently be more on markets and intermediaries not expecting an intervention by the central bank. Nowadays, with eight statements in a year, the scope for announcements outside the scheduled policy dates has been reduced although there is nothing that prevents the central bank from doing so.

The other more plausible explanation as why the markets were surprised by the large hike is that the participants simply misread the direction of the monetary policy over the recent past. Deputy Governor Subir Gokarn has said that there has been a decisive change in the central bank's monetary stance consequent to the change in the inflation trajectory. Inflation is not expected to come down. A mild policy response, which is also well anticipated such as a 25-basis point hike, will not help in moderating inflation expectations. Moreover, it is not as though the RBI has totally shunned hikes above 25 basis points. As recently as on May 3 at the time of the annual credit policy, the RBI hiked the repo rate by 50 basis points.

Focus on inflation

Though focussed on inflation, monetary policy can never ignore economic growth.

The RBI has recognised the signs of a slowdown but says that it is essentially confined to sectors that are sensitive to interest rates. There is no evidence yet of a broad-based slowdown.

Several indicators such as exports as well as imports, indirect tax collections, corporate sales and earnings and demand for bank credit suggest that demand is moderating but only gradually.

The above reasoning notwithstanding, the RBI's decision to stick to its growth projection for the current year at 8 per cent — first made in its May 3 policy statement — has come as a surprise.

It is no surprise however that the year-end inflation projection has been marked up by one percentage point to 7 per cent. Inflation remains the dominant macroeconomic concern. Actual inflation so far has been even higher than expected. In particular, non-food manufactured product inflation has been significantly higher than the average rate of 4 per cent over the last six years. Crude oil prices remain volatile.

Fuel prices

The recent increase in domestic administered fuel prices and the Minimum Support Price for certain food items will keep adding to the inflationary pressures.

The overwhelming emphasis on containing inflation is to be seen in the context of the traditional trade-off between growth and inflation. That the RBI has come out decisively on the side of inflation control has been well recognised for a long time and certainly since May 3 when the annual policy was announced. The government would play its role in tackling inflation through the quarterly review. Supply side initiatives, especially concerning food and infrastructure, have been mentioned as also reining in fiscal deficit.

The burden on the monetary authorities is that much enhanced if the government does not do its bit. To quote from the policy review: One of the objectives is to "reinforce the point that in the absence of complementary policy responses on demand and supply sides, stronger monetary policy actions are required.''

Keywords: Reserve Bank of India, quarterly policy review, RBI Governor D. Subbarao, monetary policy

http://www.thehindu.com/business/Economy/article2311127.ece

India, Japan open markets

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The HinduCommerce Secretary Rahul Khullar and Japanese Ambassador Akitaka Saiki exchange documents after signing an agreement during the first meeting of Joint Committee of India- Japan CEPA , in New Delhi on Monday. Photo Rajeev Bhatt
Comprehensive Economic Partnership Agreement comes into force from Monday
India and Japan on Monday asserted that the Comprehensive Economic Partnership Agreement (CEPA), which came in to force from Monday, would give a big boost to bilateral trade, enabling it to touch the $25-billion mark by 2014.
Immediately after the first meeting of the Joint Committee of India-Japan CEPA here, Japanese Ambassador Akitaka Saiki said business communities of the two countries should make the best use of this new economic arrangement. "This arrangement will definitely facilitate and enhance both ways flow of trade and investment,'' Mr. Saiki said.
Good for commerce
"CEPA comes into force with effect from Monday. It will be good for commerce, trade and investment for India and Japan. It is a part of the building block for much large agenda for building a comprehensive economic partnership for East Asia, which covers ASEAN, China, Korea, Japan, India, Australia and New Zealand,'' Commerce Secretary Rahul Khullar told reporters here.
Officials said CEPA would bring immediate gains to exporters of textiles, seafood and spices to Japan, as duties on these products would be eliminated. It would ultimately result in the removal of duties on almost 90 per cent of the products traded between the countries.
Other sectors that would gain from the pact include agricultural products such as mangoes, citrus fruit, spices and instant tea, spirits, chemicals, cement and jewellery.
Under CEPA, duties will be brought to zero in ten years on 66.32 per cent of the products traded between the nations.
The exclusion list of Japan (where no duty concessions are proposed) mainly consists of items such as rice, wheat, oil, milk, sugar, leather and leather products.
On the other hand, India will not reduce duties on sectors like auto and agriculture. Further, the Japanese government should accord no less favourable treatment to the applications of Indian companies than it accords to the like applications of its own persons for drug registration. This will greatly help Indian pharmaceutical companies.
Under the new arrangement, Indian professionals will be able to provide their services and contribute toward further development of IT sector of Japan. Mr. Khullar co-chaired the first meeting of the Joint Committee with Mr. Saiki. The current bilateral trade is a little over $12.6 billion and it is aimed to touch $25 billion by 2014.
Keywords: Comprehensive Economic Partnership Agreement, India-Japan bilateral trade
http://www.thehindu.com/business/Economy/article2313667.ece

Framework for budget deal struck in the U.S.

CARL HULSE
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APBACK FROM THE BRINK: U.S. President Barack Obama after making a statement on the debt crisis at the White House in Washington.

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Republicans postpone vote on debt bill U.S. House to vote on raising borrowing cap Republican rift heats up debt crisis Asian stock markets sink over U.S. debt fears U.S. debt fears hit world markets

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economy, business and finance

"I think it's important as a party to show Americans that we're serious about deficit reduction,' says an administration official.

U.S. President Barack Obama and congressional leaders of the Republican Party and the Democratic Party late on Sunday (local time) agreed to a framework for a budget deal that would cut trillions of dollars in federal spending over the next decade and clear the way for an increase in the government's borrowing limit.

With the fragile economy poised precariously and financial markets watching closely, the leaders said they would present the compromise to their caucuses on Monday, hoping to enact it before a Tuesday deadline to avert default.

Even as the President was speaking from the White House on Sunday night, Speaker John A. Boehner was on a conference call with House Republicans, trying to sell them on the proposal he had signed off on only minutes before.

Since he is likely to lose the most conservative elements of the caucus, Mr. Boehner faces the task of framing the pact as friendly enough to Republican principles to win over a significant group of his rank-and-file without alienating Democrats who he will need to push it over the top.

Mr. Obama, in a hurriedly called appearance with the media that ended a day of uncertainty, said the compromise would "allow us to avoid default and end the crisis that Washington imposed on the rest of America."

"It ensures also that we will not face this same kind of crisis again in six months, or eight months, or 12 months," he said. "And it will begin to lift the cloud of debt and the cloud of uncertainty that hangs over our economy."

Just before Mr. Obama spoke on television, Harry Reid and Mitch McConnell, the two Senate leaders, took the floor to endorse the pact as well. "I'm relieved to say that leaders from both parties have come together for the sake of our economy to reach a historic, bipartisan compromise that ends this dangerous standoff," said Mr. Reid, the majority leader.

The tentative agreement calls for at least $2.4 trillion in spending cuts over 10 years, a new congressional committee to recommend a deficit-reduction proposal by Thanksgiving (November 24), and a two-step increase in the debt ceiling.

The announcement ended a tumultuous 24 hours that saw hopes rising on Saturday night over the prospects of a deal that might have concluded the budget stalemate. By Sunday, worry set in again as lawmakers and White House officials struggled to hammer out the fine points of an agreement that must clear a Senate controlled by Democrats as well as by the Republican House.

If the deal clears Congress, with its new special joint committee to explore deficit reduction, it will ensure that the size and scope of the federal government and the tension between spending and taxes will remain front and centre in the Washington debate headed into the 2012 election.

Markets up

Markets reacted favourably to the announcement, with Asian markets jumping on news of the deal. The Nikkei was up nearly two per cent in late-morning trading; the dollar rose against the Japanese yen.

President Obama tempered his comments by noting that "there are still some very important votes to be taken" and that winning House approval would be a particular challenge.

On the conference call, Mr. Boehner sought to portray the new agreement as one heavily tilted toward the Republican call for no new revenue, and he said it met the goal of instituting cuts greater than the amount of the debt limit increase. In a presentation, he said the pact would prevent a "job-killing default" — a warning to lawmakers that failure to raise the limit could add to the bleak employment picture.

"Our framework is now on the table that will end this crisis in a manner that meets our principles of smaller government," said Mr. Boehner, who said he hoped to get the legislation onto the House floor as quickly as possible. Participants on the call, which lasted about an hour, said that the tone was cordial and that lawmakers expressed less resistance than had been anticipated.

Nancy Pelosi's reaction

At the same time, Representative Nancy Pelosi of California, the former speaker and current Democratic leader, was non-committal about the plan, suggesting that Democrats might not rally behind it. "I look forward to reviewing the legislation with my caucus to see what level of support we can provide," she said in a written statement.

Senior White House officials said they were hopeful that Congressional leaders from both sides would manage to sell the deal to their parties. While "there are some Democrats who simply don't believe in the necessity of deficit reduction," one administration official said, "most do. I think it's important as a party to show Americans that we're serious about deficit reduction."

The Senate seemed an easier sell. Senator Mike Johanns, Republican of Nebraska, said that from the terms of the deal described to him, "I think I will be satisfied and supportive." After years of work, he noted, Congress has become "serious about cuts in spending."

As conversations flowed between the White House and Capitol Hill early on July 31, Mr. Reid publicly embraced the compromise that would tie deep spending cuts to a debt ceiling increase even though some Democrats believed the White House has given too much ground to Mr. McConnell and Mr. Boehner.

While lawmakers awaited word of an agreement, talks dragged on. Congressional and administration officials attributed the delay to efforts by Mr. Boehner, Republican of Ohio, to limit immediate reductions in the Pentagon budget and better protect it from future cuts in order to cement votes from defence hawks. He needs those votes to win approval of the plan in the House.

Officials said that Mr. Boehner ultimately did not gain much and that the dispute was settled through an agreement to expand the definition of "security-related" spending to include departments beyond the Pentagon, spreading out potential cuts to the Department of Homeland Security and other agencies.

With 2012 elections in mind

The tense, last-minute negotiations were taking place against a backdrop of uncertainty, with a looming threat of a costly downgrade of the nation's credit rating and with investors worried about the global economic impact of a possible default. The political stakes were unusually high as well, with leaders in both parties staking out positions that may well be central to their re-election chances in 2012. Vice-President Joseph R. Biden Jr. was on the phone all weekend with Republican leaders of the House and Senate.

Referring to the torturous negotiations, Senator Dianne Feinstein, Democrat of California, said: "Sausage making is not pretty. But the sausage we have, I think, is a very different sausage from when we started."

But not everyone was pleased. "It may be the best we can do," said Senator Jeff Sessions of Alabama, the senior Republican on the Budget Committee. "But I do not think it's enough."

With the talks appearing to make progress, the Senate blocked a Democratic proposal for a debt limit increase on a vote of 50-49, falling 10 votes short of the 60 required to limit debate. The plan that ultimately won the support of Congressional leaders was described by officials briefed on its outline. They said the debt limit would be increased by $900 billion in the first instalment, subject to a Congressional vote of disapproval that Mr. Obama would be able to veto. To prevent a default, $400 billion would be added immediately. A second increase of $1.2 trillion to $1.5 trillion would be available subject to a second vote of disapproval by Congress. At the same time, a new joint Congressional committee would be created to find cuts roughly matching the increase in the debt limit.

If the evenly divided committee failed to agree on a plan, Congress would either have to approve a balanced budget agreement to the Constitution or accept an across-the-board cut in spending in line with the committee's goal, with 50 per cent of the savings coming from the Pentagon beginning in 2013. Medicare would also sustain cuts, though the reductions would be capped; Social Security and other programmes would be exempt.

The rationale for picking favoured programmes like the Pentagon for Republicans and Medicare for Democrats was to provide a strong incentive for the new committee to avoid a deadlock and deliver a deficit reduction plan that could clear Congress. (Robert Pear and Jackie Calmes contributed reporting.) — © New York Times News Service

Keywords: U.S. President Barack Obama, U.S. debt default, budget deal, Republicans, Democrats, U.S. Senate

http://www.thehindu.com/opinion/op-ed/article2313919.ece?homepage=true

Team Anna gathers support, slams Manmohan

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Civil society activist Anna Hazare addresses the media in New Delhi on Monday. Photo: Ramesh Sharma

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Congress dares Anna to contest from Chandni Chowk PM under Lokpal not advisable: Manmohan Hazare's next movement should be different, says Hegde Referendum on Lokpal Bill launched at IIT-Madras

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Targeting Prime Minister Manmohan Singh, civil society activist Anna Hazare on Monday termed as "unfortunate" his justification for keeping his post out of the purview of the proposed Lokpal and wondered whether the "honest" person was telling lies.

Mr. Hazare questioned the government's intentions on the Lokpal Bill and said he was ready to go to jail if he was not allowed to demand a strong anti-corruption law.

Gathering Support

Mr. Hazare, who addressed the press to give out results of "referendum" conducted by the civil activists in Chandni Chowk constituency of HRD Minister Kapil Sibal, said an overwhelming 85 per cent of people favoured (their version) Jan Lokpal Bill.

He attacked Mr. Sibal for alleging that the "referendum" was carried out by Sangh Parivar.

"They sometimes link me with RSS, sometimes with BJP. Never in my life I had linked myself with anyone. I am a self-made person," said the activist who hails from Maharashtra.

Claiming that the "interim" results of the referendum showed that an overwhelming 85 per cent of 72,000 responses counted so far were in favour of Jan Lokpal Bill, Mr. Hazare said he favoured a national referendum on the issue.

On the referendum conducted in Chandni Chowk, Mr. Hazare said government will have to listen to the voices of people.

Activist Arvind Kejriwal said, "Seeing these results the question arises, does Kapil Sibal still represent the people of his constituency?"

Team Anna claimed that the referendum revealed that the elected representatives were not voicing their electorate's wishes. "85 per cent of the people surveyed in Sibal's constituency have opted in favour of the provisions proposed by team Anna," Mr. Kejriwal said.

"Four lakh referendum forms were distributed in the constituency, of which 86,000 forms have been collected till now. The referendum forms constituted a questionnaire of 8 questions on components of the bill. The result of 72,000 forms has been compiled, rest 14,000 could not be scanned as they got wet due to rains and will be done manually," he said.

Mr. Kejriwal also alleged that there were attempts to derail their exercise. "There were 30 forms from an area which was fully in favour of government provisions. We approached the respondents through the phone number given in these forms and we were told by them that the RWA president collected the forms from them and he filled it," he said.

However, he said, they did not exclude these forms from the counting.

'Venue not important'

Mr. Hazare made it clear that he was not insisting on undertaking the fast at Jantar Mantar because for him the issue is more important than the venue.

"If they can provide a place where people can reach, where all amenities are provided, then we can go there. I don't want people to say that Anna is stubborn on this. Our issue is not Jantar Mantar, our issue is Lokpal," he said.

Mr. Kejriwal said police has not informed them about rejection of permission for conducting the protest at Jantar Mantar.

'Fight not against Parliament'

Mr. Hazare reacted strongly to the Prime Minister's justification of keeping his post out of the ambit of Lokpal.

"This statement is unfortunate. Till now, the people of the country and me too felt that we have an honest and non-corrupt Prime Minister," Mr. Hazare said.

"..our fight is not against Parliament but against the government. I have written a letter to him (PM) and even after that if he is saying this, it is unfortunate. Many people in the government are telling lies. The Prime Minister was a good person and even, if he is telling lies then what will happen," he said but did not elaborate.

Dr. Singh yesterday said bringing the office of Prime Minister under the ambit of Lokpal would "not be advisable" and government has taken the decision after "taking all factors into account". He had earlier favoured inclusion of the office of Prime Minister under Lokpal.

Rubbishing suggestions that he was trying to blackmail the government, Mr. Hazare said, "It is not that I am very happy to go to fast. Government is forcing us to sit on fast. Why don't the government bring a strong Lokpal Bill."

Mr. Hazare said scams would not have taken place if the government listens to the voice of people. "We would not have A. Raja committing such corruption if the government had listened to the voice of people," he said.

Keywords: Lokpal Bill

http://www.thehindu.com/news/national/article2313532.ece?homepage=true

2G scam: Tata highest contributor in 'so-called' huge loss: Shahid Balwa

Swan Telecom promoter Shahid Balwa today accused the Tata as the "highest contributor" in the "so-called" loss of over Rs 30,000 crore to the state exchequer in the award of licenses for the spectrum.

"Due to Tatas, the exchequer suffered a loss of Rs 4,930 crores while Swan Telecom is placed seventh in the alleged list with its contribution Rs 2,624 crores," Majeed Memon, advocate for Balwa, told special CBI Judge O P Saini.

"The highest contributor of loss is Tata. Somebody came before this court with a ground to implead Tata so that the matter can be decided fairly but the application was rejected and penalty was also imposed. All the nine applicants, among which the 122 licences for 22 circles were distributed, have not been charge sheeted," Memon said.

During the hearing, Balwa advanced arguments himself for around five minutes to accuse Tata of having sold the equities and earning a "windfall profit".

"Tata was the only company to sell secondary equity. They earned Rs 12,000 crore from it, out of which Rs 3,000 crore went into Tata Sons' pocket while only Rs 9,000 crore were put into the company," Balwa alleged.

"Every other company, including Swan and Unitech, diluted their equity and the entire money has gone into the company for rolling out services, infrastructure purposes and expanding business. Even then, we are being accused of making windfall profit.

http://economictimes.indiatimes.com/news/news-by-industry/telecom/2g-scam-tata-highest-contributor-in-so-called-huge-loss-shahid-balwa/articleshow/9447569.cms

First on chest, second on head, that's how Osama bin Laden was killed

NEW YORK: The US Navy SEALs pumped two 5.56-mm bullets to kill an unarmed al-Qaida chief in Pakistan's garrison city Abbottabad, a media report said on Monday, providing new insight into the covert operation.

"There was never any question of detaining or capturing him -- it wasn't a split-second decision. No one wanted detainees," a special-operations officer in the raid was quoted as saying by The New Yorker magazine.

Six US helicopters - two MH-60 Black Hawk and four MH-47 Chinooks - were involved in the May 2 special operation to kill bin Laden, the weekly reported in its latest edition.

"The first round, a 5.56-mm bullet, struck bin Laden in the chest. As he fell backward, the SEAL fired a second round into his head, just above his left eye," the report said while detailing the blow-by-blow account of the special operation.

On his radio, The SEAL personnel who shot the al-Qaida mastermind, reported, "For God and country--Geronimo, Geronimo, Geronimo." After a pause, he added, "Geronimo E.K.I.A."--"enemy killed in action."

The comprehensive report on the nearly 40 minute raid on 54-year-old Osama's hide out said that the climax began when a SEAL personnel stepped into Osama's bedroom and trained the infrared laser of his M4 on his chest.

Bin Laden, who was wearing a tan shalwar kameez and a prayer cap on his head, froze; he was unarmed, the report said, while adding Osama's two wives tried to protect him by placing themselves as human shields.

BJP: Manmohan diverting attention from tough questions

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PTIBJP MP Tarun Vijay holds a placard at Parliament House in New Delhi on Monday.

In a strident response to Prime Minister Manmohan Singh's remark that "there are many skeletons in the Opposition's cupboard," the BJP on Monday accused him of vitiating the environment even before the start of the Parliament session and this was meant to deflect attention from several inconvenient questions being raised against him in the 2G spectrum scandal.

At a joint news conference here, Leaders of the Opposition in the Lok Sabha and the Rajya Sabha Sushma Swaraj and Arun Jaitley said available information left little scope for ambiguity that Dr. Singh was involved in 'micro-managing' the telecom policy and allotment of 2G licences.

'Unwarranted remark'

The Prime Minister's "unwarranted, unprovoked and irresponsible" remark against the Opposition was a bogey to divert attention from the several questions for which he had no answer, the BJP leaders said.

To a question, Mr. Jaitley said the Opposition had no skeletons in its cupboard. "Let them raise the issues pertaining to the Opposition. We would answer."

Seeking answers from Dr. Singh on specific issues in the 2G matter, the BJP leaders said the Prime Minister had changed his stand several times.

"From an initial support to his Telecom Minister Shri A. Raja, whom he defended as following a well-established policy, he then pleaded ignorance of telecom matters and informed Parliament that he had trusted the judgment of his Ministers and when Shri Raja and the then Finance Minister, Shri P. Chidambaram, came with an agreed proposal, he unsuspectingly accepted the same."

PMO clarification

On the PMO's clarification, on the noting by the Prime Minister's Private Secretary on a file, that Dr. Singh wanted to maintain an 'arms length distance' on the 2G spectrum, Mr. Jaitley said it only sought to give an impression that Dr. Singh was ' hands-on' on spectrum allotment.

The BJP leaders said Mr. Raja had kept Dr. Singh informed through at least nine letters that spectrum allocation was to be made not by auction and that in 2008, spectrum was being allotted at 2001 prices. Mr. Raja had also informed the Prime Minister that he had changed the basis of the first come, first served policy, which would no longer depend on the date of application but on the date of compliance i.e. the date of payment of entry fee.

Dr. Singh already agreed that Mr. Raja and Mr. Chidambaram , at a meeting in the first week of July 2008, explained to him the lower entry fee rationale. Mr. Jaitley said the government now admitted that when some of the companies which were given licence and spectrum went for issuance of additional equity in favour of some foreign entities, the then Finance Minister was fully involved and the Prime Minister was informed that the sale of equity was as per the FDI (foreign direct investment) policy.

The inconsistency on the part of Dr. Singh made his position far worse, the BJP leaders said, adding a Prime Minister, who maintained an "arm's length distance," was trying to plead ignorance on the ground that he did not know.

'Simple economics'

"Did it not strike the 'hands-on' PM that if a sale of a fraction of the shares of a company which owned the licence and the spectrum could fetch Rs. 6,000 crore, how the government could have allotted the entire spectrum at Rs.1,651 crore? This was simple economics, a subject of the PM's specialisation," Mr. Jaitley said.

Keywords: BJP, Manmohan Singh, Monsoon Session, 2G spectrum scam

Congress dares Anna to contest from Chandni Chowk

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Congress on Monday dared social activist Anna Hazare to contest from Chandni Chowk Lok Sabha seat here after the latter released findings of his team's survey in Union Minister Kapil Sibal's constituency on the Lokpal issue.

"I had heard about his survey...he could contest the next Lok Sabha elections in 2014 from Chandni Chowk. Truth will clearly come out then," party spokesperson Manish Tewari told reporters dismissing the civil society members' initiative.

He was responding to questions on the claims of the Team Hazare that an overwhelming 85 per cent of people surveyed in the area favoured (their version) Jan Lokpal Bill.

Hazare's team carried out a four-day survey on Lokpal bill there. Mr. Hazare, who addressed the press on Monday to give out its results of the survey, claimed its "interim" results showed 85 per cent of 72,000 responses counted so far were in favour of Jan Lokpal Bill.

Another activist Arvind Kejriwal commented, "Seeing these results the question arises, does Kapil Sibal still represent the people of his constituency?"

Mr. Tewari, however, said Mr. Hazare and his friends should have "faith in the wisdom and discretion of Parliament" once the government tables the Lokpal Bill in the House. "You can do surveys. But you cannot play with the basic structure of the Constitution," he said.

Team Hazare is bitterly opposed to the government's decision to keep the Prime Minister, the higher judiciary and MPs' conduct inside Parliament outside Lokpal's purview.

Keywords: Team Anna Hazare, Congress, Lokpal Bill, Jan Lokpal bill, civil society activists

http://www.thehindu.com/news/national/article2313536.ece

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BJP: Manmohandiverting attention from tough questions

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	BJP says PM's skeleton remark confrontationist ‎14 minutes ago‎ - Hindustan Times
	BSP, BJP force adjournment in Rajya Sabha ‎10 hours ago‎ - The Hindu
	PM under Lokpal not advisable: Manmohan ‎Jul 31, 2011‎ - The Hindu
	Will parliament conduct its legislative business? ‎Jul 31, 2011‎ - Economic Times

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We can still bounce back: Dhoni

NDTV.com - ‎14 minutes ago‎

Nottingham: India captain Mahendra Singh Dhoni said on Monday that his team can turn it around in the remaining two Test matches to retain their world No.1 status. India lost the second Test by a massive 319 runs as England took a 2-0 lead in the ...

Broad — a match-winner and game-changer

The Hindu - ‎30 minutes ago‎

Stuart Broad is a force of nature. This has been a series where he has blown away the Indians with the ball and the bat. Behind his seemingly effortless and explosive ways, lie methods that are well honed. Technically, Broad impresses....

England v India: Ian Bell can learn how to protect his wicket from the 'old ...

Telegraph.co.uk - Steve James - ‎14 minutes ago‎

It wouldn't have happened to the other Warwickshire batsman in the England side. Of that you can be certain. Jonathan Trott would not have been run out, as Ian Bell was on Sunday. By Steve James He would have run the third run and then religiously and ...

England blow India off the Bridge

Daily News & Analysis - Vijay Tagore - ‎33 minutes ago‎

Here in Nottingham, the commentators have already started talking of a whitewash. After their 319-run defeat against England in the second Test at Trent Bridge, India have the unenviable task of not only saving the series but also the No 1 ranking. ...

Staruss hails England's performance

Cricketnext.com - ‎40 minutes ago‎

Nottingham: Andrew Strauss was confident at the start of the Nottingham's Test. By the time it ended, he was jubilant with his team's victory over India on Monday. England registered a massive 319 runs against the No. 1 Test team and the English ...

Batting is an area of concern: Dhoni

Cricketnext.com - ‎55 minutes ago‎

Nottingham: Indian skipper MS Dhoni on Monday admitted that batting has been a big concern for Team India right from the West Indies tour to the ongoing England series. "It is a big concern because this is a continuation of the West Indies series. ...

Clinical England demolish India by 319 runs

The Hindu - ‎1 hour ago‎

A spineless India on Monday crashed to one of their heaviest defeats in terms of runs in the lop-sided second cricket Test against England, who have now become serious contenders for the world number one tag by taking an unassailable 2-0 lead in the ...

England thump India by 319 runs at Trent Bridge to go 2-0 in the series

TheSportsCampus.com - ‎6 minutes ago‎

The Indian team produced yet another spineless batting performance as England bulldozed the tourists by 319 runs on day 4 at Trent Bridge to take an unassailable 2-0 lead in the 4 match series. Set an improbable target of 478, the visitors crumbled ...

English tail scripts lessons aplenty for Indian batsmen

Deccan Herald - ‎39 minutes ago‎

If one were to analyse the reasons, it will emerge that tail-enders' contributions with the bat have played a significant role in India's rise to the top of Test rankings. Matches have either been won or saved solely on the grit and determination ...

Indian rationale behind Bell recall

Deccan Herald - ‎44 minutes ago‎

VVS Laxman's dismissal in the West Indies during the Dominica Test, Rahul Dravid revealed, had a part to play in India reinstating Ian Bell on the third day of the second Test here when the England batsman was given run out in controversial ...

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House vote first test of debt-ceiling bill

Los Angeles Times - Michael A. Memoli - ‎12 minutes ago‎

The first test of legislation to raise the nation's debt ceiling comes in the House, which plans to vote late Monday evening on the plan agreed to by party leaders Sunday. Senate Majority Leader Harry Reid said the Senate would...

House, Senate Leaders Rally Votes For Debt-Deficit Compromise

RTT News - ‎9 minutes ago‎

(RTTNews) - Congressional leaders in both parties are meeting with rank-and-file members of their parties to drum up support Monday for a deal aimed at raising the US debt ceiling while taking steps to cut growing federal deficits. ...

Historic compromise in Washington: US will raise the borrowing limit

SUSPECT SPAM SITES - Angela Khan - ‎12 minutes ago‎

President Barack Obama announced on Sunday evening, an agreement between the Republican and Democrat leaders in Congress, which will allow the US to reduce the deficit and avoid default, reported AFP. Obama said that the bill will be adopted in coming ...

Pleasing Few, Debt Deal to Go to Vote

New York Times - Michael D. Shear, Carl Hulse -‎2 hours ago‎

WASHINGTON — Democratic and Republican leaders in Congress began making their final arguments Monday on behalf of the debt ceiling deal to skeptical members in advance of votes in both chambers. ...

Framework for budget deal struck in the US

The Hindu - Carl Hulse - ‎1 hour ago‎

US President Barack Obama and congressional leaders of the Republican Party and the Democratic Party late on Sunday (local time) agreed to a framework for a budget deal that would cut trillions of dollars in federal spending over the next decade and ...

US lawmakers reach deal to cut deficit

Indian Express - ‎2 hours ago‎

The US Congress is set to vote on a deal on Monday to raise the debt ceiling from $14.3 trillion and cut deficit by $2.4 trillion over 10 years, hours after President Barack Obama and Republican leaders reached a last-minute compromise that buoyed ...

Democrats seem to end up on the short end of the deal

Washington Post - Rosalind S. Helderman - ‎2 hours ago‎

Susan Walsh / AP, Joshua Roberts/ Reuters, Carolyn Kaster/ AP, Harry Hamburg/AP, Scott J. Applewhite/ AP/AP, Reuters - The White Hosue and Congressional leaders announced Sunday night they had at last reached a deal to raise the debt ceiling. ...

US debt crisis: angry Democrats turn their fire on Obama

Telegraph.co.uk - Alex Spillius - ‎48 minutes ago‎

Angry Democrats turned their fire on President Barack Obama with unprecedented ferocity on Monday, accusing him of a capitulation to Republicans that has seriously harmed his chances of re-election in 2012. By Alex Spillius, Washington Though the White ...

White House, congressional leaders reach debt-limit deal

Washington Post - Lori Montgomery, Paul Kane -‎3 hours ago‎

President Obama and congressional leaders Sunday night sealed a deal to raise the federal debt limit that includes sharp spending cuts but no new taxes, breaking a partisan impasse that has driven the nation to the ...

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	House vote first test of debt-ceiling bill ‎12 minutes ago‎ - Los Angeles Times
	Obama-GOP debt debate isn't over ‎6 hours ago‎ - USA Today (blog)
	The Hitchhiker's Guide To How the Debt Deal Could Fall Apart ‎11 hours ago‎ - Fox News (blog)
	Obama, Boehner Announce Agreement to Raise Debt Ceiling, Avoid Default ‎17 hours ago‎ - ABC News (blog)
	Harry Reid signs off on possible debt-ceiling deal ‎20 hours ago‎ - Los Angeles Times
	'Really close' to debt deal as deadline nears ‎22 hours ago‎ - Houston Chronicle
	Senate shelves Reid bill as final debt-ceiling plan comes into focus ‎Jul 31, 2011‎ - Los Angeles Times
	Senate GOP votes to watch in debt-limit drama ‎Jul 31, 2011‎ - USA Today
	McConnell outlines framework of potential debt deal ‎Jul 31, 2011‎ - Washington Post (blog)
	Reid postpones vote on debt ceiling until Sunday afternoon ‎Jul 30, 2011‎ - Washington Post (blog)

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Congress Plans Votes on Deal to Prevent Default
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Congress to vote on last-minute US debt deal
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Obama, Congress reach debt deal
ABC Action News - 6 hours ago

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World Markets Jump As Obama Announces Debt Deal
The Associated Press - 8 hours ago

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Obama announces deal reached to end debt impasse
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Timeline of articles

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	Are England the world's top side in waiting? ‎34 minutes ago‎ - Yahoo! Eurosport UK (blog)
	Live score: Tottering at 55/6, India all set to lose No 1 tag ‎4 hours ago‎ - Daily News & Analysis
	British media, former players hail Dhoni ‎11 hours ago‎ - The Hindu
	For whom the 'Bell' tolled ‎Jul 31, 2011‎ - Rediff
	Ian Bell's run-out: sportsmanship prevails thanks to MS Dhoni ‎Jul 31, 2011‎ - The Guardian (blog)
	Stuart Broad's hat-trick magic for England has India spellbound ‎Jul 30, 2011‎ - The Guardian
	England face anxious wait to discover extent of Trott's shoulder injury ‎Jul 30, 2011‎ - Daily Mail
	Stuart Broad drags England back from the brink against India ‎Jul 29, 2011‎ - The Guardian