Saturday, June 25, 2011

US pushing India for faster economic reforms! India, US increased cooperation at multilateral level!In a bid to clean its image, Prime Minister Manmohan Singh, who is planning to restructure the cabinet in the first week of July, is likely to drop te

US pushing India for faster economic reforms! India, US increased cooperation at multilateral level!In a bid to clean its image, Prime Minister Manmohan Singh, who is planning to restructure the cabinet in the first week of July, is likely to drop textiles minister Dayanidhi Maran as fresh revelations about his alleged role in the 2G scam during his earlier tenure as communications minister.Meanwhile, Abhijit Mukherjee , the son of Congress veteran and union finance minister Pranab Mukhejee, has become the chairman of West Bengal Industrial Development Finance Corporation. Junior Mukherjee gets the Top Job while senior SC, ST, OBC and Muslim leaders have NO ROLE but to control the Mind and heart of the Excluded Communities to Sustain Brahaminical Hegemony!Meanwhile, Hindutva Forces supporting Free Market Economy and the Zionist Satanic Order of Free Market Ecopolitics have Hijacked the Resistance against Steep Hike in LPG, Diesel and Kerosene Prices while the Ambedkarites as well as Marxists do MISS the Train Once again. They are in NO condition to lead any Mass Movement or Popular Resistance whatsoever!However, The Bharatiya Janata Party (BJP) and Left parties on Saturday staged nationwide demonstrations against the hike in the prices of diesel, kerosene and cooking gas, with leaders demanding a rollback.Token Protest only which is destined to subsidise!


Indian Holocaust My Father`s Life and Time - SIX HUNDRED SIXTY SEVEN

Palash Biswas

http://indianholocaustmyfatherslifeandtime.blogspot.com/



http://basantipurtimes.blogspot.com/


The United States is pushing India to provide greater market access, open up multi brand retail sector and step up the pace of economic reforms to realise the full potential of one of the fastest-growing economies in the world.

India, US increased cooperation at multilateral level!In a bid to clean its image, Prime Minister Manmohan Singh, who is planning to restructure the cabinet in the first week of July, is likely to drop textiles minister Dayanidhi Maran as fresh revelations about his alleged role in the 2G scam during his earlier tenure as communications minister.Meanwhile, Abhijit Mukherjee , the son of Congress veteran and union finance minister Pranab Mukhejee, has become the chairman of West Bengal Industrial Development Finance Corporation. Junior Mukherjee gets the Top Job while senior SC, ST, OBC and Muslim leaders have NO ROLE but to control the Mind and heart of the Excluded Communities to Sustain Brahaminical Hegemony!

Meanwhile, Hindutva Forces supporting Free Market Economy and the Zionist Satanic Order of Free Market Ecopolitics have Hijacked the Resistance against Steep Hike in LPG, Diesel and Kerosene Prices while the Ambedkarites as well as Marxists do MISS the Train Once again. They are in NO condition to lead any Mass Movement or Popular Resistance whatsoever!

However, The Bharatiya Janata Party (BJP) and Left parpties on Saturday staged nationwide demonstrations against the hike in the prices of diesel, kerosene and cooking gas, with leaders demanding a rollback.Token Protest only which is destined to subsidise!


All state governments are being asked to reduce their taxes according to their financial capacity, Congress general secretary Janardan Dwivedi said.

Under attack from the Left and the right over fuel price hike, Congress today asked party-ruled states to reduce taxes on petroleum products to give a reprieve to the common man.
Hailing the decision of the Centre to reduce custom and excise duty on the petroleum products as a "step for giving relief" to common man, party general secretary Janardan Dwivedi appealed to states to announce similar measures to give a reprieve to people.
"The Centre has tried to give relief by reducing the custom duty. Likewise all state governments can reduce their taxes according to their financial capacity. As far as Congress-ruled states are concerned, we are asking them to do it as far as possible," Mr. Dwivedi told reporters.
Senior party leaders, speaking on the condition of anonymity, said that some announcements in this regard are likely tonight by Congress-ruled states.
Talking to reporters at the AICC, Mr. Dwivedi, at the same time justified the government's decision to hike fuel prices citing compulsions and dismissed BJP's criticism on the issue, reminding that prices of oil were increased many times during the NDA rule.
He also cited examples of other countries in the region where the prices of diesel, LPG and kerosene are much higher than in India.
"There are times when you are compelled to take hard decisions. There is no doubt that when the prices of diesel go up, everybody feels the pinch. But if you see all the facts you will realize that there was no other option," Mr. Dwivedi told reporters here.


Flaying the UPA government for "smothering" common people with repeated hikes in the prices of petroleum products, CPI(M) in Kerala today said lives of Indians should not be turned into something to "play with" for the profit of oil companies.

Issuing a statement in Thiruvananthapuram, CPI(M) state secretariat said the present hike in the prices of diesel, LPG and kerosene came close on the heels of last month's petrol price hike by Rs5.

The hike in kerosene and diesel would largely affect the common people. Diesel price hike would badly hit a consumer state like Kerala with goods traffic becoming costlier.
Since the Centre lifted the control on petroleum prices heeding to the will of oil company managements in June last year, petrol prices had gone up by Rs17. The companies were exploiting the people using the licence given to them to increase prices at will, the statement said.

It had now become clear that the government was waiting for the elections to five state assemblies to be over to announce steep hike, the statement alleged.
Meanwhile, workers of the CPI(M) youth wing DYFI and pro-CPI AIYF took out protest marches in Thiruvananthapuram today against the diesel price hike.


"It would be good to reinvigorate the reforms process for India's continued growth prospects," a senior US official said ahead of what is billed as their "highest level' economic engagement here next week with Finance Minister Pranab Mukherjee and US Treasury Secretary Timothy Geithner leading the two sides.

"Greater market access and retail multi-branding, those are all areas which matter," Treasury Under Secretary Lael Brainard told select Indian media ahead of next week's meeting of the US-India Economic and Financial Partnership.

"There are a host of benefits for opening up the retail sector," ranging from more variety to cheaper cost to faster delivery of food products, she said suggesting that US companies had pioneered a lot of innovations and would like to participate.

Listing insurance and equity caps as some of the other areas US would like India to open up, Brainard said: "Some of these barriers are seen to less attract foreign investment overall coming into India than some of the other dynamic Asian economies without the benefits of greater quality or greater provision of services."

Asked about Indian corporate concerns on issues like new visa restrictions and tantalisation of social security benefits, she said India was the biggest beneficiary of H1B visas for professionals and that "Indian access has not changed in any way" with the new restrictions.

"On equalisation of social security, it's not clear how far India will want to participate as our systems are so very different," Brainard said. "Nevertheless, in principle US is ready to engage in discussions to figure out ways" to meet Indian concerns.


Despite one of the steepest hike in fuel prices , state-run oil firms will still end the fiscal will a whooping Rs 121,700 crore revenue loss on selling diesel, domestic LPG and kerosene at government rates.

"After taking into account the increase in diesel, domestic LPG and kerosene price as well as cut in customs and excise duty, the three oil marketing companies will see their under-recoveries (revenue loss) come down from Rs 171,140 crore to Rs 121,704 crore for the fiscal," said an official of Indian Oil Corp (IOC), the nation's largest oil firm.

An Empowered Group of Ministers had yesterday approved a Rs 3 per litre hike in diesel price, which after including local sales tax translated into a Rs 3.37 per litre increase in retail price at Delhi. This steepest raise in diesel rates ever, more than the Rs 3 per litre hike effect in June 2008.

A Rs 50 per cylinder hike in domestic LPG rates equals the increase in the then NDA government led by Atal Bihari Vajpayee had effect in March 2000.

The Rs 2 per litre increase in kerosene rate is the second hike in the price of cooking fuel used by poor in a decade. Last June, kerosene rates were raised by Rs 3 a litre.

IOC Chairman R S Butola said despite the Rs 3 per litre increase coupled with cut in customs or import duty from 7.5 per cent to 2.5 per cent and reduction in excise duty from Rs 4.60 per litre to Rs 2 a litre, diesel is still being sold at a loss of Rs 6.90 per litre.

Similarly, kerosene is being sold at Rs 25.37 per litre loss and domestic LPG at a loss of Rs 331.13 per 14.2-kg cylinder.


The junior Mukherjee replaced state finance secretary CM Bachhawat as the head of the corporation, which is a special purpose vehicle floated in 1997 for providing funding support to state's insfrastructure projects. The Mamata Banerjee government has issued the appointment letter on Friday evening.

Insiders in WBIDFC welcomed the move to bringing in someone like Abhijit, who had 26 years of experience in bluechip PSUs like BHEL and SAIL. "The state-run corporation needs to be run professionally and his corporate experience will help," a senior WBIDFC official said.

Abhijit Mukherjee, who joined politics just recently, has become an MLA from Nalhati of Birbhum district with Congress ticket. The choice of Nalhati assembly constituency to fight his first general election seems to be obvious since it is close to the family's ancestral home in Miriti village near Kirnahar in Birbhum.

After he won the election, many thought he would get a ministerial berth in the new government in West Bengal. But apparently, the state Pradesh Congress committee did not recommend his name to the party highcommand Sonia Gandhi.

Mukherjee has a degree in mechanical engineering from Jadavpur University. Prior to joining politics, he was general manager in SAIL and was in charge of corporate social responsibility.


India and the US have increased their cooperation and coordination at multilateral level, including G-20 , a top Obama administration official has said.

"The United States is looking for deep sustained engagement with India, commensurate with its role and US role in the world stage and the values that the two countries share," Lael Brainard, US Under Secretary of Treasury for International Affairs , told a group of Indian reporters.

"So we really are stepping up in our engagement in both bilaterally and multilaterally. The United States and India have increasingly been working together at various international platforms including G-20," she said during her interaction with Indian journalists ahead of the next week's second India-US Economic and Financial Partnership meeting.

"In G20 - India has been chairing the Framework Working Group- goals there were very well aligned and they are active member in the Finance Stability Board . So we are engaging more multilaterally as well," she said.

Brainard asserted the US supports India in having a greater role in the international financial institutions such as the World Bank and the International Monetary Fund .

The quota reforms and the capital replenishment that the two nations negotiated at the IMF and the World Bank, respectively, give India a much greater voice in at these institutions, the official said.

"We were supportive of those reforms. I worked closely together to create that greater voice for emerging markets and India benefited from that as it should given its growth and its role in the world economy."

"So we consult with them very closely on the goals that we are pursuing in the G20," Brainard said, adding, India and the US have been relatively aligned - both the nations are large market-based economies, democratic with rich tradition of entrepreneurship, competition and innovation.

"India like the US has the exchange rate that are relatively flexible and an economy that is powered by the domestic demand. These are all attributes that often give us common interest.

"When we talk about how do attain adjustment in the global economy how do we insure that growth is strong as well as balance we have common interest," she added.

Disregarding the resignation demands, Maran attended the cabinet meeting on Thursday. He has been denying the allegations as baseless and served notice on media organisations which published the initial stories.

"The Congress will not drag the issue as it happened with A Raja. The moment the probe agency or the court raises a small finger against Maran, the party will signal him to quit," the Congress leader said.

Sources say that the DMK leadership has asked Maran to "stay on" and attend the cabinet meetings and official functions.

According to them, the party fears that it will be pushed to the corner if Maran resigns in a hurry.

Already, two of its influential leaders - former communications minister A Raja and Rajya Sabha MP and party supremo M Karunanidhi's daughter Kanimozhi - are in Tihar Jail in connection with the 2G spectrum scam. Maran was communications minister from 2004 to 2007 in the UPA I government before Raja.

As Maran tries to put up a defence and Congress tries to avoid any comment, opposition parties - DMK's arch rival AIADMK, the Bharatiya Janata Party and the Left parties - have been raising the decibel for his resignation.

Maran has to battle his case on several fronts - the Central Bureau of Investigation (CBI), which has begun preliminary probe into his alleged role in the 2G spectrum scam, the Supreme Court where the civil society groups have filed petitions, media revelations and the opposition onslaught.

The main allegation, initially revealed by Tehelka magazine and followed up in several other reports, is that Maran forced C Sivasankaran, owner of Aircel, to sell the telecom company to Maran's Malaysia-based friend T Ananda Krishnan in 2006.

The reports allege that Maran deliberately delayed issuing spectrum licenses to Aircel's sister concern, Dishnet Wireless, when it was owned by Sivasankaran. He issued the licenses soon after it changed hands to Ananda Krishnan who owns Maxis.

Within four months of the spectrum allocation, Astro - a sister company of Maxis - got cabinet nod to buy Rs 675 crore equity in Sun Direct DTH, a company owned by Maran's brother Kalanidhi Maran and family, the reports have pointed out.

On June 6, Sivasankaran in his statement to the CBI reiterated the charge that he was forced to sell the company. Maran denied the allegation saying Sivasankaran was keen on selling the company.

The CBI is likely to complete the initial probe in the allegations against Maran in two to three weeks and file a report, sources said. If it finds substance in the allegations, Maran is likely to be questioned. This can lead to a new cases against him.

Maran has been on the backfoot after fresh media reports surfaced regarding his involvement. Though he filed defamation cases against Tehelka and the New Indian Express for the initial reports, he has not initiated any action against several Delhi-based newspapers and TV channels which have carried details of the scam, sources said.

On the political front, the chorus for his resignation is gaining momentum. "Maran should resign at the earliest. Otherwise, he will be forced to go the Raja way," BJP spokesperson Nirmala Sitharaman said.

Communist Party of India (CPI) leader D Raja said that the "complicity of Maran in a bigger scam than of A Raja is unfolding day by day." He should quit, he demanded.

The opposition parties will demand Maran's resignation in the coming monsoon session, if he does not resign by then, Janata Dal-United general secretary Javed Raza said.

Trouble is brewing for Maran on another front: the joint parliamentary committee (JPC) on 2G spectrum will be summoning him soon.

"We are calling all former telecommunication ministers, that includes Maran," JPC chief PC Chacko said.

As the clouds gather against Maran, the Congress is cautiously watching the scenario. So far, the party had left it to the besieged DMK minister to defend himself.

Slamming the government for the fuel price hike, the Left parties demanded its immediate rollback and asked their units to organise protest actions all over the country.Attacking the government for "striking another blow" to the 'aam admi', they said the hikes come at a time "when the people are suffering from all round price rise and the inflation rate has crossed nine per cent".

Asking all their units to immediately conduct hartals, demonstrations and other protest actions, the CPI(M), CPI, RSP and Forward Bloc said it was "another cruel blow" to the common people as the increase in diesel price would raise the transportation cost and affect farmers, while those in kerosene and LPG cylinders would burden the poor.

In a joint statement, the parties said the withdrawal of five percentage points in customs duty on crude oil, imposed last year, "shows how such taxes are levied by the Centre to raise revenue and this is the main cause for the high prices of petroleum products".
"Yet, the government refuses to restructure the taxes on petroleum products and give up the ad valorem tax", the four Left parties said, demanding that the hike be withdrawn immediately.
The statement was signed by CPI(M) General Secretary Prakash Karat, CPI's A B Bardhan, RSP's T J Chandrachoodan and Forward Bloc's Debabrata Biswas.
Earlier, CPI National Secretary D Raja accused the government of kneeling down before market forces and corporate houses, and demanded immediate roll back of prices.
Observing that the move came immediately after the assembly polls, he said, "There is no transparency in the oil sector. No one knows what the spot price of crude is, the cost of refining it and the real component of taxes."
Accusing the government of allowing corporate houses to plunder indigenous resources like natural gas, he said this has been recently exposed by the Kaveri—Godavari basin gas scandal.
"The Supreme Court has said that natural gases are national assets. How does the government give this national asset on a platter to corporate houses?"
CPI(M) leader Sitaram Yechury termed the hikes "completely unacceptable" and said "Government had committed to zero duty on petroleum products when it deregulated their prices. It has not stuck to its promise. Instead, it is imposing a burden on the people."
Punjab Deputy Chief Minister and SAD President Sukhbir Singh Badal said the UPA government "deliberately hastened the oil price hike as it feared that crashing crude prices every day would leave no justification for diesel, kerosene and LPG price hike."
He said the price hike would have direct bearing on farmers besides having a cascading effect on inflation.
INLD's secretary general Ajay Singh Chautala criticised the move saying, "The step has once again exposed the anti—people face of the Congress. The hike would further increase inflation and common-man would be directly affected."
Terming the price hike as an act of 'economic terrorism', the BJP unit in Jalandhar accused the Union government of trying to benefit oil marketing companies at the cost of the common man.
In Jammu, Shiv Sena activists holding gas—cylinders, kerosene stoves and earthen stoves staged a demonstration against the hike. Over 200 Sena activists led by J—K Shiv Sena unit president Ashok Gupta also raised anti-UPA slogans.
"The price rise in the past has already hit the financial backbone of the common man," Gupta said, adding the government should roll back the price.
In Kerala, Left parties and BJP staged demonstrations to protest against the hike while private bus operators threatened to organise a one-day strike on June 29.
Workers of CPI(M)'s youth wing DYFI blocked a passenger train at Kannur as part of their state-wide protest against the hike. BJP workers took out marches in the state capital and other centres condemning the price increase.
Criticising the move, JDS chief H.D. Deve Gowda alleged the Centre's action in reducing excise and customs duty was done to benefit oil companies.
"When prices of petroleum products remained stable at $ 90 per barrel in International market in the last four or five months, where is the need for going in for price hike?," the former Prime Minister asked.


"Instead of listening to the complaints of the common man, the government is showing a no-mercy attitude by raising the prices of essential commodities," said the BJP's VK Malhotra, leader of opposition in the Delhi state assembly.

"The hike in prices of fuel and cooking gas is unjustified," he added.

Shouting slogans against the government and asking the people to join in, the party organised the protest at Jantar Mantar at 11am.

"We demand an immediate rollback of this hike," Malhotra said.

Raising anti-Centre slogans, workers of CPM 's youth wing DYFI blocked a passenger train at Kannur as part of their state-wide protest against the fuel price hike .

In Kerala, private bus operators co-ordination committee announced that all the services would be suspended on June 29 demanding an immediate fare hike in view of the diesel price increase.

Petroleum minister S Jaipal Reddy on Friday announced that the price of diesel will be increased by Rs 3 per litre, kerosene by Rs 2 per litre and domestic liquid petroelum gas (LPG) by Rs 50 per cylinder, excluding state levies such as VAT.

The hike came a day after the government announced that food inflation had soared to nearly a 10-week high of 9.13 percent for the week ended June 11.

People voiced their woes after the hike, finding it an additional burden on the house budgets.

"The government says the petroleum companies are incurring a loss, so a hike. What about the loss that we as tax payers are suffering. We can't cut down on our basic needs now," said a miffed Sumati Dewan, housewife in east Delhi's Laxmi Nagar.

Before the hike, oil marketing companies suffered losses of Rs 13.72 per litre of diesel, Rs 26.16 per litre of kerosene and Rs 381.14 per LPG cylinder.

On a daily basis, Indian Oil, Hindustan Petroleum and Bharat Petroleum together incur a total loss of Rs 456 crore on the sale of the three petro-products.

Protests erupt over price hike

SPECIAL CORRESPONDENT
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Reeling under the impact of high prices of essentials, the hike in the prices of cooking gas, kerosene and diesel has come as a huge blow to the common man. These activists of the Janata Dal (United) are giving vent to their anger during a protest in Patna on Saturday. Photo: Ranjeet Kumar

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Left parties slam government for fuel price hikeFuel price hike will add to hardship: JayalalithaaPolitical parties demand rollback of fuel price hikeCentre insensitive to suffering of common man: SushmaRosaiah, Chandrababu slam Centre for fuel price hikeReduce tax on petroleum products: Cong. to party-ruled StatesDiesel price up by Rs. 3, LPG to cost Rs. 50 more

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Opposition parties: roll back hike in prices of diesel, kerosene and cooking gas

Opposition parties on Saturday protested the hike in prices of diesel, kerosene and cooking gas. Demanding its withdrawal, the parties charged the Congress-led UPA government with rendering a blow to the common man in whose name it came to power.

Street protests erupted in various parts of the country and supporters of the Bharatiya Janata Party and other parties raised slogans demanding a roll-back of prices. Demonstrations were held in, among other places, Orissa, Lucknow, Noida, Jammu and Srinagar.

Lashing out at the decision, BJP said the measure reflected the insensitivity of the government to the plight of the people and said it would push the rate of inflation into double digit.

Party spokesman Shahnawaz Husain said the statements by Union Ministers justifying the rise in prices showed that the government was more concerned with the health of oil companies than the people who were already groaning under the impact of high prices of essential commodities.

The BJP, he said, was seeking to wake up the government and caution it not to joke with the people. On her part, Leader of the Opposition in the Lok Sabha Sushma Swaraj said this was the 10th hike in the prices of petroleum products since the UPA government came to power. "The victims are housewives, farmers and the poorest of the poor."

Condemning the decision, the Left parties demanded that the hike be withdrawn and asked all their units to immediately conduct hartals, demonstrations and other protest actions.

In a joint statement, general secretaries Prakash Karat (Communist Party of India-Marxist), A.B. Bardhan (Communist Party of India), T.J. Chandrachoodan (Revolutionary Socialist Party) and Debabrata Biswas (All-India Forward Bloc) said the UPA government struck another cruel blow to the people by increasing the prices of diesel, kerosene and cooking gas at a time when the people were suffering from all-round price rise and the inflation rate had crossed 9 per cent.

The diesel price increase will push up transportation costs and affect farmers as well. The increase in the price of kerosene by Rs. 2 per litre will be an added burden to the poor. The Rs. 50 increase for a gas cylinder will also burden the common people.

"The withdrawal of 5 percentage points in customs duty on crude oil, which was imposed last year, shows how such taxes are levied by the Centre to raise revenue and this is the main cause for the high prices of petroleum products. Yet, the government refuses to restructure the taxes on petroleum products and give up the ad valorem tax,'' the statement said.

http://www.thehindu.com/news/national/article2134356.ece

Be part of India's growth story, US business urged
WASHINGTON: A US India trade group has called on American policymakers to strengthen trade relations with India or face the risk of being left behind in sharing the fruits of India's growth story.

"India's growth story is compelling nations around the world to seek stronger commercial ties with India by negotiating their own trade and investment agreements," said Harold "Terry" McGraw III, who chairs the the US-India Business Council (USIBC), Thursday.

"The United States and American companies are at risk of being left behind and extending a period of low, slow economic growth if we do not do more to foster trade and investment between the US and India," said McGraw, Chairman, President and CEO of The McGraw-Hill Companies.

"The priority is to deliver on a US-India Bilateral Investment Treaty (BIT) that incentivises greater two-way foreign direct investment. USIBC calls upon both governments to re-energize BIT discussions, by re-engaging in technical discussions, as soon as possible," said USIBC president Ron Somers at a conclave of US and Indian business leaders.

Urging a serious evaluation of a more specialised bilateral a economic arrangement with India, USIBC announced it will take the lead to develop a working group with Indian counterparts to study the elements needed for making it successful.

The group will look into details about market access in goods, the free flow of services, regulatory coherence, high technology trade, intellectual property rights, procurement, and greater movement of professional workers.

McGraw called on business and government leaders in both countries to find ways to work together to build on that momentum and create new economic growth that will lead to more jobs.


Sushma slams government on fuel price hike

Accusing the government of being insensitive to the sufferings of the common man, Bharatiya Janata Party (BJP) leader Sushma Swaraj Saturday slammed it for hiking the prices of diesel, kerosene and LPG.

"This is the 10th hike in the prices of petroleum products. Congress government came to power on the slogan 'Congress ka haath aam adami ke saath', but this is what the common man has got," said the leader of opposition in the Lok Sabha.

"The government is totally insensitive to the sufferings of the common man. The victims are housewives, farmers and poorest of the poor," she added.

The BJP staged its protest at Jantar Mantar against the government's hike on fuel prices .

The government Friday hiked the price of diesel by Rs.3 per litre, kerosene by Rs.2 a litre, and LPG by Rs.50 per cylinder.

Bengal slashes cess on cooking gas
The West Bengal government Saturday reduced cooking gas prices by Rs.16 per cylinder to partially offset the hike of Rs.50 announced by the central government.

Announcing the cut, Chief minister Mamata Banerjee said: "But for the increase in price, we would have got additional cess of Rs.16 per cylinder."

"Keeping in mind the interests of the people, the state government has decided not to take the cess of Rs. 16. This will help the people to manage their budget to some extent," she added.

The reduction in cess would be effective from Saturday and cause the state exchequer a loss of Rs.75 crore.

The chief minister said she took the decision after discussions with Finance Minister Amit Mitra , who was present when Banerjee announced her decision to the media at the state secretariat.

Banerjee said her government had a moral responsibility to the people and regretted that the erstwhile Left Front regime had not paid any heed to the opposition's request time and again to cut cess on fuel prices.

"The hike of Rs.50 now comes down to Rs.34," added Banerjee.

She also said her party does not support in any way the price hike. "We are totally against it. We do not support the price hike."

She also said that the price reduction will be notified Monday but it will become effective from Saturday.

The central government hiked the prices of diesel, kerosene and cooking gas respectively by Rs.3 per litre, Rs.2 per litre and Rs.50 per cylinder with effect from Friday midnight.

Farmers across India react strongly to fuel price hike
Reacting strongly to the hike in the prices of diesel , kerosene and LPG, farmers across the country have contended it would have adverse affects on the agriculture sector and even prompt them to end their occupation.

Petroleum Minister S Jaipal Reddy announced of a hike in the price of LPG (liquefied petroleum gas) cylinders by 50 rupees on Friday.

Apart from the price of LPG, the federal government's Empowered Group of Ministers (EGOM) also raised the price of diesel by three rupees and kerosene oil by two rupees per litre.


Farmers in Rohtak region of Haryana said the government is bothered about the losses incurred by the oil companies and ignorant about the farmers' expenses and income.

"Oil companies say they are facing losses, but the farmers are facing more losses than these firms. Without the fuel we are unable to do our work and we get it only once a month. Water from the tube well is not sufficient because the price of fuel has increased so much that the farmers are not able to irrigate their fields with water from the tube well. If we have to store water for once, we need at least 20 litre of diesel" said Rajendra, a farmer from Rohtak.

"Where and how can we manage such needs? It would be better that the farmers' occupation comes to an end. And, if such price hike keeps taking place, then who would do farming? We will have to leave these machinery and get back to manual work elsewhere," he added.

In Kanpur district of the Uttar Pradesh, farmers lamented that the price hike has increased their woes.

"The price hike would have a very bad impact on farmers because diesel has become expensive, the soil is expensive and water problem is increasing day by day. Whatever we produce and the money that we would earn is spent on diesel," a farmer of Uttar Pradesh, Alok said.

Fuel price hike will have inflationary pressure: Industrialists

KOLKATA: While conceding that the fuel price hike was inevitable, industrialists here Saturday said the increase in the rates of diesel, kerosene and cooking gas will have inflationary pressure in the economy.

The central government hiked the prices of diesel, kerosene and cooking gas respectively by Rs.3 per litre, Rs.2 per litre and Rs.50 per cylinder with effect from Friday midnight.

"It was inevitable...prices had to be increased. It is not surprising. We all know that the costs of diesel, kerosene and cooking gas are much higher. How long can the government provide subsidy?" Emami Limited director Manish Goenka told IANS.

"For a common person, I understand the problem," he added.

Shyam Steel director Lalit Beriwala said there will be inflationary pressure in the economy due to the price hike of diesel.

"Diesel price hike will have an impact on the industry. There will be more inflationary pressure. Logistic and transport costs will be increased because of the price hike," he said.

Stating that the steel industry was passing through a bad time, Beriwala said the increase in logistic and transport costs will put steel makers in a more disadvantageous position.

India expects partners to fulfil nuclear commitments

SIDDHARTH VARADARAJAN
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Notwithstanding new NSG rules, 'clean' exemption of 2008 must prevail
The Nuclear Suppliers Group may have decided to ban enrichment and reprocessing technology and equipment (ENR) sales to countries outside the Nuclear Non-Proliferation Treaty (NPT), but the Indian government will continue to insist that its partners fully implement the 2008 "clean" NSG waiver for India and all bilateral agreements, official sources told The Hindu on Saturday.
Under the terms of the 2008 waiver, NSG members are allowed to make ENR transfers to India.
Speaking on background because the text of the 46-nation supplier group's latest decision is yet to be received and properly studied, the sources sought to underline the fact that the India-U.S. nuclear agreement, the 2008 "clean" exemption by the NSG and India's agreements with other countries such as France and Russia all rested on the foundation of "mutual commitments."
If India's partners committed themselves to providing full civil nuclear cooperation, India had promised to implement a number of non-proliferation conditions, change its liability law and place commercial orders for reactors worth billions of dollars.
The sources said all mutual commitments, whether in the NSG decision of 2008 on India or in those contained in bilateral nuclear cooperation agreements, should be respected and fully implemented. "India will do so," they stressed, "and we expect the same from others as well."
Though the Obama administration's statement that the ENR restrictions would not "detract" from the 2008 NSG exception may be hard to square with reality, Indian officials say it is "reassuring" that the State Department has reiterated the U.S. "commitment to full civil nuclear cooperation" and its support for the "clean" NSG waiver. India takes these assurances very seriously and will insist on their fulfilment.
Indeed, India now expects other key suppliers such as France and Russia to be even more forthcoming in the reiteration of their commitment to implement the NSG waiver. This is all the more so, given the personal pledge President Nicolas Sarkozy made to Prime Minister Manmohan Singh in 2009 that France would not be bound by any G8 or NSG ban on the sale of ENR to India. As for Russia, the March 2010 bilateral agreement itself says the two countries "shall conclude a separate agreement for [ENR transfers]," and one round of negotiations have already been held. Therefore, the Russians too have an obligation to clarify their national position in the wake of the NSG's latest decision.
Keywords: NSG waiver, ENR transfer ban
http://www.thehindu.com/news/national/article2134960.ece?homepage=true

NSG ends India's 'clean' waiver

SIDDHARTH VARADARAJAN
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New guidelines bar 'sensitive' nuclear exports to countries outside NPT
The Nuclear Suppliers Group (NSG) on Friday adopted new guidelines on the transfer of sensitive nuclear technology that will effectively nullify the "clean" waiver India received from the cartel in 2008 as far as the import of enrichment and reprocessing equipment and technology (ENR) is concerned.
The decision was announced from Noordwijk, the Netherlands, where the 46-nation grouping held its 2011 plenary meeting. The NSG "agreed to strengthen its guidelines on the transfer of sensitive enrichment and reprocessing technologies," a formal statement blandly noted.
Though the guidelines have not been made public yet, the draft text makes it clear that the group will exclude countries which are not signatories to the Nuclear Non-proliferation Treaty and which do not have a full-scope safeguards agreement allowing international inspections of all their nuclear facilities.
Prior to this, the NSG had a catch-all requirement of full-scope safeguards — in paragraph 4 of its guidelines — for the supply of any nuclear equipment or material.
The only additional requirement for ENR exports — as contained in paragraphs 6 and 7 of the guidelines — was that the suppliers were asked to "exercise restraint" and to ensure that any supplied equipment or technology not be used to enrich uranium beyond 20 per cent.
The NSG's September 6, 2008 'Statement on Civil Nuclear Cooperation with India' waived the full-scope safeguards requirement of paragraph 4 and expressly allowed ENR exports, subject to paragraphs 6 and 7. In adopting its waiver, the NSG said it was acting "based on the commitments and actions" on non-proliferation undertaken by India.
But on Friday, the cartel tore up that bargain, adopting a new paragraph 6 specifying objective and subjective criteria a recipient country must meet before an NSG member can sell ENR to it. The very first of these is NPT membership.
Since all nuclear exports to the only other countries outside the NPT – Israel, Pakistan and North Korea – are already prohibited by paragraph 4, this provision in the guidelines was expressly designed to target India, to which the restrictions of that paragraph no longer apply.
When the U.S. first floated the guidelines in November 2008, Indian officials privately complained that the NPT provision would amount to a "rollback" of both the NSG waiver and the fundamental American commitment to ensure "full civil nuclear cooperation" with India.
Confidential U.S. embassy cables published by The Hindu last week quoted Shivshankar Menon, now National Security Adviser, and Foreign Secretary Nirupama Rao protesting the draft ENR rules.
Last week, a senior Indian official told journalists that the government "has deep reservations about any move by the NSG that prevents the transfer of these technologies ... that will dilute the ... exemption that was given in 2008."
Ironically, the U.S. insists that its support for the ban on ENR sales to India "in no way detract(s) from the exception granted to India by NSG members in 2008." The reality is that an entire category of nuclear items which NSG members were allowed to sell to India as a result of the 2008 exception can no longer be supplied.
"Before voluntarily placing our civilian facilities under IAEA safeguards," Prime Minister Manmohan Singh assured Parliament on August 17, 2006, "we will ensure that all restrictions on India have been lifted." What he didn't bargain for was that some restrictions, once lifted, might be imposed again.
Keywords: NSG guidelines, Nuclear Non-proliferation Treaty, IAEA safeguards, Manmohan Singh government, India-U.S civil nuclear cooperation

http://www.thehindu.com/news/national/article2132457.ece

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http://www.thehindu.com/topics/?categoryId=1992

Fuel price hike: Centre 'smothering' common people, says CPI(M)

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CPM slams UPA Government over fuel price hike

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Left parties slam government for fuel price hike

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Asking all their units to immediately conduct hartals, demonstrations and other protest actions, the CPI(M), CPI, RSP and Forward Bloc said it was "another cruel blow" to the common people as the increase in diesel price would raise the transportation ...

Fuel price hike: Left and right furious, nationwide protests on

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Parties slam govt for fuel price hike demand roll back

Moneycontrol.com - ‎7 hours ago‎
The CPI(M), CPI, RSP and Forward Bloc said it was "another cruel blow" to the common people as the increase in diesel price would raise transportation cost and affect farmers, while those in kerosene and LPG cylinders would burden the poor. ...

CPI slams govt for fuel price hike, demands roll back

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Price Hike 'Fuels' Angry Protests Across Country

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Meanwhile, terming the hike as a 'cruel blow' on the 'aam aadmi' the Left parties, chiefly the CPI (M) and the CPI said that the hike will have a domino effect leading to further inflation. It is the common man and the farmers who will be the most ...

Government hikes diesel and cooking fuel prices

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Govn under fire for hike in fuel price

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... unprecedented" and asked the Congress' allies to pull out of the government. BJP spokesperson Nirmala Sitharaman said, "The government decision is crude and insensitive." CPI(M) leader Sitaram Yechury said, "The decision is highly unacceptable."

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more by Manmohan Singh - 19 hours ago - The Hindu(10 occurrences)




'NSG move brings India closer to integration with nuke trade'

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NSG ends India's 'clean' waiver

The Hindu - Siddharth Varadarajan - ‎19 hours ago‎
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US circulates 'thought paper' on Indian membership of NSG

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Proving the adage that good news and bad news tend to come together, the Nuclear Suppliers Group (NSG) began consideration of an American proposal to enrol India as a member even as the 46-nation cartel voted to ban the sale of enrichment and ...

New nuke rules won't break Indo-US deal

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The US on Thursday said it fully supports the "clean" Nuclear Suppliers Group (NSG) exception for India and that nothing in the new restrictive guidelines issued by the NSG will detract from the nuclear deal between the two countries....

In full support of clean NSG exception for India: US

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PTI The Obama Administration has said it fully supports the "clean" Nulcear Suppliers Group exception for India and speedy implementation of the Civil Nuclear Cooperation Agreement between the two countries. "Nothing about the new Enrichment and ...

Is the enrichment debate reaching critical mass?

The Hindu - Narayan Lakshman - ‎Jun 23, 2011‎
Washington: With the second round of the United States-India Strategic Dialogue round the corner, public messages by both governments indicate a blossoming bonhomie. But if the Nuclear Suppliers Group proposes more restrictive guidelines this week for ...

The nuclear reality

Deccan Chronicle - K.C. Singh - ‎47 minutes ago‎
The nuclear issue is back to dog the United Progressive Alliance government. The 21st plenary of the Nuclear Suppliers Group (NSG), convening at Noordwijk, the Netherlands on June 23-24, undercut Prime Minister Manmohan Singh's assurances ...
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Pak views Indo-US ties as zero-sum game: Clinton 

IBNLive.com - ‎Jun 24, 2011‎
PTI | 05:06 PM,Jun 24,2011 From Lalit K Jha Washington, Jun 24 (PTI) Every time the US tries to improve its ties with India, it creates a lot of "cognitive dissonance" in Pakistan where theIndo-American relations have become a zero-sum game, ...

It's fairly safe to invest in India: Arun Jaitley 

Economic Times - ‎Jun 23, 2011‎
In future too India and the US could have diverse views on certain issues, but "this relationship can survive differences in perception in some areas", Jaitley said. The leader of Opposition in Rajya Sabha said former Prime Minister Atal Bihari ...

India - Pakistan: Confrontation To Cooperation - Analysis 

Eurasia Review - Rida Zeenat - ‎13 hours ago‎
India and Pakistan since 1947 have been involved in hostile relationship because of various ideological, historical and territorial differences. The three major wars before nuclearization is a clear example of their rivalry. ...

'For India and US, coming together is only a beginning' 

Times of India - ‎Jun 7, 2011‎
Through a strong partnership with India, we can best address any differences and shape a dynamic future"- George W. Bush During the Bush administration the Indo-US relation just started to take a turn that it had never before, a cordial hand of ...

'Iran issue may be a train wreck for Indo-US ties' 

Rediff - ‎Jun 23, 2011‎
Last year, the task force had published a study titled Natural Allies: A Blueprint for the Future of US-India Relations on the eve of President Barack Obama's [ Images ] trip to India in November; it was also catalytic in urging Obama to endorse ...

US official gets bitter memories from a Sino-Pak conference after Indo-US nuke ... 

Real Time News, India - Vijay Sharma - ‎Jun 16, 2011‎
"He referred to Newton's third law of motion -- every action has an equal and opposite reaction -- and explained a strong Sino-Pak relationship is a natural reaction to the Indo-US relationship." Aziz's barbs, however, were like rose-petals compared to ...

Bihar has made a mark under Nitish: US official 

Times of India - ‎Jun 18, 2011‎
He shared with the students how Indo-US relations have developed in the last decade. Blake said, "After 9/11 we realized that these two countries share more common interests that include terrorism." "Come together and fight against terrorism," he ...

Indian MPs Meet at Yale to Discuss Political-Social Challenges 

India Education Diary - ‎Jun 19, 2011‎
Encompassing all aspects of Indo - US relations, the Forum makes an effort to facilitate wider exchange of dialogue on crucial issues of bilateral and global concerns between parliamentarians of India and their counterparts in the US, senior US ...

Of Nuke States, Outliers and Global Security 

IDN InDepthNews | Analysis That Matters - Jayantha Dhanapala - ‎3 hours ago‎
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US to cooperate with Bihar in various fields: Blake 

Times of India - ‎Jun 18, 2011‎
Accompanied by minister for counsellor for political affairs in the US embassy in Delhi, Herro K Mustafa, Blake said that Indo-US relations are on upswing and president Barack Obama is very much keen to take it to a higher level. "We consider India a ...
US ready to address Indian concerns over visa fee hike
WASHINGTON: The US is ready to address Indian government's concerns on a host of trade and business issues, including the H1B visa fee hike and social security equalisation, a top official here has said, ahead of the bilateral economic dialogue next week.

"Purpose of this (India-US economic) dialogue and discussion would be to make sure that we know the full set of concerns and if there are measures that we need to take on that side, we would work on them as well," Under Secretary of Treasury for International Affairs Lael Brainard said.

In her interaction with a group of Indian reporters ahead of next week's India-US Economic Dialogue, Brainard said her understanding is that in the area of H-1B visas, the country is the biggest -- 50 per cent more than any other nation - beneficiary of this.

The concern of India with regard to the visa fee, she argued, has not altered this figure in any way.

"But this is an area, where we would continue to look at because this is important to you," she said when asked about India's concerns in this regard.

"On social security equalisation, at the moment it is not clear how far we are going to proceed because the systems of the two countries are very different. But we certainly in principle are going to engage in discussions and would continue to do so to see whether there is more potential there," she said.

"I think, in general to the extent to the areas where there are two-way reforms that can be made we are obviously going to be very interested in hearing about them and figure out ways to proceed.

For instance, it could be quite beneficial to reinvigorate conversations, starting at a technical level, looking at the potential to concluding a bilateral investment treaty which has two-way obligations, Brainard said.

20 killed in suicide bombing in east Afghanistan

PULE ALAM, AFGHANISTAN: A suicide car bomber killed at least 20 people, and possibly as many as 35, in an attack at a hospital in a remote district of eastern Afghanistan on Saturday that damaged its maternity ward, officials said.

Estimates of the casualties, which included patients and medical staff, varied widely in chaotic scenes outside the hospital in the remote Azra district of eastern Logar province, which is just south of Kabul .

Dozens more were wounded in one of the worst attacks this year.

Deen Mohammad Darwish, a spokesman for the Logar provincial government, said as many as 35 people were killed, although Afghanistan's Interior Ministry put the death toll at 20.

"The exact target is still not clear," Interior minister deputy spokesman Najib Nikzad said.

Taliban spokesman Zabihullah Mujahid denied responsibility and said the Islamist insurgents never attack hospitals.

President Hamid Karzai condemned the attack in which he said "tens of civilians" were killed. The United Nations said the maternity ward was hit in the bombing.

"This is a despicable attack against civilians who were seeking medical care, as well as visiting family members and health workers," Staffan de Mistura, the U.N. chief in Afghanistan, said in a statement.

Tensions have flared over civilian casualties, with insurgents and the Afghan government alike criticising NATO-led forces for killing innocent Afghans while hunting for militants.

United Nations figures however show that insurgents are responsible for three-quarters of civilian deaths.

Military and civilian casualties hit record levels in 2010, the most violent year of the war since U.S.-backed Afghan forces toppled the Taliban in late 2001.

This year is following a similar trend, with violence growing across Afghanistan since the Taliban announced a spring offensive at the beginning of May.

U.S. commanders had already said they expected a rise in attacks as insurgents hit back after U.S. and NATO forces made gains during operations in the Taliban heartland in the south over the past 18 months.

The United Nations said two weeks ago that May had been the deadliest month for civilians since it began compiling statistics four years ago.

It said it had documented 368 "conflict-related" civilian deaths, 82 percent of them caused by insurgents.

The latest violence comes as seven areas across the country prepare to take over security responsibilities from the NATO-led International Security Assistance Force (ISAF) fighting an increasingly unpopular war that has dragged on for 10 years.

That will coincide with the start in July of a gradual drawdown of U.S. troops. U.S. and NATO troops plan to hand over security responsibility for all of Afghanistan by the end of 2014, although critics warn the handover date is premature.

While most of the ISAF gains have been in Taliban strongholds in the south, the insurgency in eastern provinces like Logar and Kunar near the border with Pakistan is much more fragmented.

Taliban fighters often slip across the border from safe havens in Pakistan's largely lawless northwest but other groups like the al Qaeda-linked Haqqani network also operate extensively in the area.

India liberalises visa rules for Russian businessmen, tourists
MOSCOW: India took a lead in resolving the vexed visa issue by liberalising its rules for the Russian citizens visiting India on business and tourism.

"We are now issuing multi-entry business visas valid for one year against six months single or double entry in the past and tourist visas valid for six months with multiple entries," India's Ambassador to Russia Ajai Malhotra has said.

The Embassy of India in Moscow has streamlined and liberalised its issuance of business and tourist visas with a view to further encourage business contacts and promote tourism between India and Russia.

India and the Russian Federation already have in place a visa-free regime for diplomatic and official passport holders of both countries, that facilitates regular official contact.

Both business and tourist visas would normally be issued in three working days following the date of application against minimum ten working days previously.

The new pattern is also being followed by the Indian Consulates General in St Petersburg and Vladivostok.

The Russian citizens normally have to apply for the Indian visa by a Russian company appointed by the Indian mission to allow them to submit their applications even on weekends and holidays, when the Embassy is closed.

Ambassador Malhotra said these measures to facilitate the travel by Russian businessmen and tourists to India were actually implemented from June 12, Russia's national day.

According to him, the Indian Embassy in Moscow and the Consulates in St Petersburg and Vladivostok had issued about 110,000 visas to Russian citizens during 2010.

25 JUN, 2011, 11.04AM IST,TNN
Get ready for higher inflation

NEW DELHI: The government just increased the headache for households, itself and the Reserve Bank of India by increasing fuel prices as inflation is set to cross the double digit mark. The increase in diesel prices alone is expected to add 30 basis points (100 basis points equal one percentage point) to inflation and is going to have a cascading effect on prices of almost all commodities - from fruits and vegetables to industrial products - as transportation costs would go up due to the the hike of Rs 3 a litre.

"The total (direct and indirect) impact of the diesel price increase could be around 100 basis points," said D K Joshi, chief economist at ratings agency Crisil . Diesel has weight of 4.67% in the wholesale price index and any increase in diesel prices impact prices across the economy as goods are transported in trucks. Diesel is used as an input in manufacturing units as well in the farm sector. Add to that the impact of the Rs 2 hike for petrol and increase in cooking gas prices by Rs 50 per the inflation numbers -- which have been troubling households as well as policymakers for the past several months - would go past the 10% level over the next few weeks.

Already, based on provisional data, it was estimated at 9.06% in May. And if past trends are anything to go by, an upward revision is a near certainty.

Inflation has remained stubbornly high for the past more than a year and the government had dragged its feet on raising diesel prices fearing political backlash but was left with no choice due to the mounting losses of state-run oil firms. Joshi said an increase in diesel prices impacts core inflation which is currently an issue of concern. Food inflation which had shown signs of moderation for a few weeks have again started rising and latest data shows that it accelerated to 9.13% in mid-June due to pricey protein items. Monsoon is an added risk given that the forecast is not as optimistic as it was earlier.

Apart from the cost of key household items rising faster than earlier, high inflation is also expected to translate into further increase in your EMIs as economists expect RBI to raise interest rates further.
The price hike has not just upset household budgets but could also have a major impact on the government's own budget numbers.

By it's own admission, the Centre stands to lose Rs 49,000 crore during the financial year. With three months of the year gone, the loss might be 25% lower at Rs 36,750 crore. With uncovered losses of Rs 1.5 lakh crore for state-owned oil marketing companies -as they continue to lose money by selling subsidized fuel - the government could be in for some higher expenditure as well to meet the increased subsidy bill. Oil companies, of course, would be cajoled into taking their share of the cut, which will reflect in a hit on their bottomlines - and lower dividend for the government.
http://economictimes.indiatimes.com/news/economy/indicators/get-ready-for-higher-inflation/articleshow/8987372.cms


25 JUN, 2011, 05.42AM IST,TNN
Fiscal deficit target seen under pressure; inflation seen higher
NEW DELHI: The government just increased the headache for households, itself and the Reserve Bank of India by increasing fuel prices as inflation is set to cross the double digit mark.

The increase in diesel prices alone is expected to add 30 basis points (100 basis points equal one percentage point) to inflation and is going to have a cascading effect on prices of almost all commodities - from fruits and vegetables to industrial products - as transportation costs would go up due to the the hike of Rs 3 a litre.

"The total (direct and indirect) impact of the diesel price increase could be around 100 basis points," said D K Joshi, chief economist at ratings agency Crisil . Diesel has weight of 4.67% in the wholesale price index and any increase in diesel prices impact prices across the economy as goods are transported in trucks. Diesel is used as an input in manufacturing units as well in the farm sector.

Add to that the impact of the Rs 2 hike for petrol and increase in cooking gas prices by Rs 50 per the inflation numbers -- which have been troubling households as well as policymakers for the past several months - would go past the 10% level over the next few weeks.

Already, based on provisional data, it was estimated at 9.06% in May. And if past trends are anything to go by, an upward revision is a near certainty.

Inflation has remained stubbornly high for the past more than a year and the government had dragged its feet on raising diesel prices fearing political backlash but was left with no choice due to the mounting losses of state-run oil firms. Joshi said an increase in diesel prices impacts core inflation which is currently an issue of concern.

Food inflation which had shown signs of moderation for a few weeks have again started rising and latest data shows that it accelerated to 9.13% in mid-June due to pricey protein items. Monsoon is an added risk given that the forecast is not as optimistic as it was earlier.

Apart from the cost of key household items rising faster than earlier, high inflation is also expected to translate into further increase in your EMIs as economists expect RBI to raise interest rates further.
The price hike has not just upset household budgets but could also have a major impact on the government's own budget numbers.
http://economictimes.indiatimes.com/news/economy/indicators/fiscal-deficit-target-seen-under-pressure-inflation-seen-higher/articleshow/8985214.cms

Don't succumb to civil society's pressure tactics, CWC tells Centre

SMITA GUPTA
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The HinduCongress president Sonia Gandhi (right) and Prime Minister Manmohan Singh during the CWC meeting in New Delhi on Friday. Photo: S. Subramanium

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The Congress Working Committee (CWC), which met here on Friday evening to discuss the controversial Lokpal Bill, was unanimous in its view that the government should not allow itself to be held to ransom by a handful of civil society activists.

Simultaneously, it was clarified that the draft of the government representatives on the joint Lokpal Bill drafting committee was just that – it was not yet the official government draft that would emerge only after the government took a final view after the all-party meeting slated for July 3.

Issue of booklet

On the specifics of the Bill, CWC sources said a few members concurring with the view of the government representatives on the joint drafting committee said there was no need to include the Prime Minister in the Bill as he, along with all citizens, was covered by the Prevention of Corruption Act and the law of the land. There were, these sources added, no voices to the contrary.

Indeed, a few members even impressed on the CWC the need for party leaders to speak in one voice so that there were no reports about "a party view" and "a government view." The CWC, therefore, has taken the view that the party will concur with the government line on the Lokpal Bill, once it emerges after the meeting of July 3. The Congress may then issue a booklet on its views on the Lokpal Bill at that stage.

Indeed, though the focus of the meeting was the Lokpal Bill, anger against civil society members took centre stage. At Friday's meeting, there was no direct criticism of the government's handling of the issue but a couple of members indirectly suggested, sources said, that the government had given a long rope to civil society members by including them in the joint drafting committee, a gesture that was not appreciated. On the contrary, this inclusion, these sources added, paved the way for the pressure tactics adopted by yoga guru Baba Ramdev.

Earlier, shortly after the CWC meeting concluded, Congress media chairperson and party general secretary Janardan Dwivedi told journalists that Union Finance Minister Pranab Mukherjee gave a chronological, blow-by-blow account of the journey the Lokpal Bill had taken, from its inclusion in the party's manifesto, to a draft being readied in 2010 – before any civil society activist has asked for it – to the trajectory the joint drafting committee meetings had taken. In his intervention, Union Home Minister P. Chidambaram pointed out the finer legal points of the Bill.

According to Mr. Dwivedi, in her opening remarks party president Sonia Gandhi said that from time to time, both she and Prime Minister Manmohan Singh had highlighted the menace of corruption, and the action the government had taken to tackle it, as well as the many steps taken in the interest of the people. The Prime Minister made the concluding remarks, stressing that the government had done whatever it could to deal with corruption.

Party general secretary Digvijay Singh repeated at the meeting a line that he – and the party – have taken: that Anna Hazare and Baba Ramdev were the masks of the Rashtriya Swayamsewak Sangh and the Bharatiya Janata Party – and the party needed to tackle that larger threat.

Keywords: Congress Working Committee meeting, CWC meet, Congress president Sonia Gandhi, Prime Minister Manmohan Singh, Lokpal Bill, Anna Hazare, anti-corruption campaign


http://www.thehindu.com/news/national/article2132149.ece

24 JUN, 2011, 07.21AM IST,ET BUREAU
Salaried persons with less than Rs 5 lakh taxable income need not file returns

NEW DELHI: Salaried individuals with taxable income of less than Rs 5 lakh will not have to file income-tax returns in the current assessment year.

The finance ministry notified the scheme on Thursday, spelling out the conditions for the exemption announced in the Budget for 2011-12.

Individuals with total taxable salary income of less than Rs 5 lakh in FY 2010-11, after allowing all deductions, will be exempt from filing tax returns this year.

However, the entire income must accrue from a single employer. That is, if an individual has a taxable salary income of less than Rs 5 lakh but had switched jobs in the middle of 2010-11, then he would have to file tax returns, clubbing income from all the employers.

The exemption will also not be available to individuals who have interest income of more than 10,000 in their savings deposits. Those with interest income of less than 10,000 will need to declare such income to their employer and have tax deducted on it to avail of the exemption.

The employee will have to declare his permanent account number to his employer and obtain certificate of tax deduction in Form No 16.

Those individuals having income from sources other than salary or having refund claims will not be covered under the scheme.

In his budget speech for 2011-12, Finance Minister Pranab Mukherjee had proposed to exempt salaried employees from filing tax returns in order to reduce the compliance burden on small taxpayers.

The finance ministry also stated that the scheme shall also not be applicable in cases wherein notices are issued for filing the income-tax return under section 142(1) or section 148 or section 153A or section 153C of the Income Tax Act 1961.

22 JUN, 2011, 06.23PM IST,ET BUREAU
Raytheon in $23 million deal for India military air traffic upgrade

LE BOURGET, PARIS: Radars and missiles major Raytheon has bagged a $23.2 million contract from Tata Power Strategic Electronic Systems in a programme to automate air traffic management systems of the Indian Air Force .

Company officials taking part at the Paris Air Show here, said the contract was part of the IAF's project for modernization of its airfield infrastructure (MAFI). The project aims to make all IAF air bases capable of handling all types of modern transport and fighter aircraft at all times. Tata Power Strategic Electronic Systems is the prime contractor of the project, which is undertaking the programme to upgrade 30 airbases of IAF in the first phase of the project.

Raytheon also has tie-ups in India with L&T and BEL, and is eyeing a bigger presence in India in the long term.

In the MAFI project, Raytheon Network Centric Systems will supply a variant of its globally deployed AutoTrac family of air traffic management systems. Raytheon NCS command and control systems vice president Andy Zogg said the company's AutoTrac system would provide IAF with a modern automated systems backbone for easier and rapid incorporation of new tools and functionality as they become available.

The US-based $25-billion Ratyehon has a presence in electronics, mission systems integration and other capabilities in the area of sensing, and offers a broad range of mission support services, among others.

The Indian defence market has attracted the attention of defence and aerospace players at the Paris Air Show here, particularly in the backdrop of projections that the country's defence market could be in the range of $ 80 billion over the next 4-5 years. There are also expectations among participants here that the Indian defence sector would opt for unmanned air vehicles, tactical missiles destroyers and more radar-based warfare systems in the coming years.
http://economictimes.indiatimes.com/news/politics/nation/raytheon-in-23-million-deal-for-india-military-air-traffic-upgrade/articleshow/8952190.cms

Anna Hazare functioning under instigation of BJP: V Narayanasamy

Daily News & Analysis - ‎4 hours ago‎
Place: Puducherry | Agency: PTI Minister of State for Parliamentary Affairs V Narayanasamy today alleged that social activist Anna Hazare was functioning under instigation of BJP at a time when the Prime Minister was taking steps to curb corruption and ...

Lokpal Bill: Anna hits out at Congress

NewsX - ‎8 hours ago‎
Anna Hazare has slammed the Congress party over Lokpal bill. Anna says that the party has forgotten the ideals of Mahatma Gandhi and Lal Bahadur Shastri. Anna Hazare is getting the cold shoulder from the political class. Not just the Congress even the ...

Hazare's demand unconstitutional

Times of India - ‎9 hours ago‎
RANCHI: A couple of months before the D-Day when social activist Anna Hazare is set to sit on another fast to mobilize public opinion, senior Congress leaders are out on a campaign to convince the people about the government's stand on corruption and ...

What They Said: Stalemate Over Lokpal Bill

Wall Street Journal (blog) - Krishna Pokharel - ‎14 hours ago‎
Government talks aimed at reaching an agreement with civil society over a draft of the anti-corruption "Lokpal" bill reached a standstill on Tuesday. Gandhian activist Anna Hazare, who has led the civil society movement, ...

UPA's Lokpal Bill was ready in 2010: Pranab Mukherjee

Daily News & Analysis - Venkateshwar Rao Jr - ‎14 hours ago‎
Pranab Mukherjee on Friday told Congress president Sonia Gandhi at the Congress Working Committee (CWC) meeting that the government was ready with its own Lokpal bill in 2010 itself. ...

CWC turns itself into a Congress War Council

Daily News & Analysis - Anil Sharma, Mayank Aggarwal - ‎15 hours ago‎
By Anil Sharma & Mayank Aggarwal | Place: Mumbai | Agency: DNA The Congress Working Committee on Friday threw its weight behind the UPA government for a tough line against the "pressure tactics" of civil society on the controversial Lokpal Bill. ...

CWC asks Government to take firm stand on Lokpal Bill

Economic Times - ‎19 hours ago‎
NEW DELHI: The Congress Working Committee (CWC) on Friday cautioned the government against succumbing to pressure from the civil society over the Lokpal bill and asked the Centre to take a firm stand on the transparency legislation. ...

Manmohan Singh calls all-party meeting on Lokpal Bill on July 3

Economic Times - ‎19 hours ago‎
NEW DELHI: After nine meetings with Anna Hazare's team failed to evolve a consensus on the Lokpal bill , the government has called an all-party meeting on July 3 on the issue. At the meeting, convened by Prime Minister Manmohan Singh , the government ...

Team Anna meets Advani, Bardhan to canvass support

Times of India - ‎19 hours ago‎
NEW DELHI: Taking their fight for the Lokpal Bill to political parties, the Anna Hazare team on Friday met BJP veteran LK Advani and CPI leader AB Bardhan. India Against Corruption (IAC) members including Kiran Bedi, Arvind Kejriwal and Manish Sisodia ...

Our Lokpal draft real, Team Anna's just a dissent note: Moily

Times of India - ‎19 hours ago‎
NEW DELHI: Law minister Veerappa Moily on Friday said the government draft on the Lokpal Bill had been "evolved" after the nine meetings of the joint drafting committee and would be one considered for further consultations. The Team Anna draft was "at ...
All 220 related articles »

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Anna can't order Parliamentarians: Khurshid
‎2 hours ago‎ - Zee News
Govt Lokpal draft better than its 2010 one, says Agnivesh
‎Jun 24, 2011‎ - Times of India
Lokpal: Don't succumb to civil society pressure, Congress tells govt
‎Jun 24, 2011‎ - Daily News & Analysis
CWC to discuss Lokpal Bill today
‎Jun 23, 2011‎ - The Hindu
Hazare team slams govt. version of Lokpal
‎Jun 23, 2011‎ - The Hindu
Better if prime minister is included in Lokpal Bill
‎Jun 22, 2011‎ - Daily News & Analysis
Clear divergence on key issues in Lokpal draft bills
‎Jun 22, 2011‎ - Times of India

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24 JUN, 2011, 09.42AM IST, DIPAK KUMAR DASH,TNN
India's largest highway project up for grabs

NEW DELHI: Eleven players are in the fray to construct India's largest-ever highway project. The 555-km Ahemdabad-Udaipur-Kishangarh stretch is expected to cost nearly Rs 5,400 crore, which is sufficient to build a power project that generates 1,340-megawatt electricity.

And, the stretch could also help the government generate revenues of nearly Rs 10,000 crore over 20 years since the stiff competition is expected generate a premium during the bidding process that will now commence.

The list of shortlisted developers ranges from domestic giants L&T , GMR and Tata Infrastructure to First Pacific from the West Indies, Australia's Leighton and Malaysia's IJM. In addition, players such as GVK have formed a joint venture with Australia's Belford, while Nagarjuna Construction is bidding in partnership with Malaysian major Plus. Similarly, Hindustan Construction has tied up with Italian infrastructure company Vince as its partner, while local players Reliance Infra and IRB and Isolux and Soma have set up their own joint ventures.

This Kishangarh-Udaipur-Ahmedabad section, which is spread over NH -79 A, NH-79 , NH-76 and NH-8 , covers parts of Rajasthan and Gujarat. The stretch that falls under the crucial Golden Quadrilateral (GQ) network is already four-laned and is now being upgraded into a six-lane highway. "This is a lucrative highway sector with over 40,000 tolled vehicles plying on this stretch. The traffic on this corridor will increase manifold since it a crucial link to the Jawaharlal Nehru Port and the Mumbai-Pune expressway," said a senior NHAI official.

Sources said that while the Public Private Partnership Appraisal Committee (PPPAC) has set the benchmark of bidding out this project at not less than Rs 298 crore premium, the NHAI expects to get over Rs 400 crore, considering the competitive bidding by global infrastructure majors. "It's a big project for us. We will annually get the premium amount with an additional 5% increase every successive year," said an official.

So, if a company bids, say, Rs 400 crore, it has to pay the first installment as and when the deal is signed. The second year, the premium, which is referred to as a positive grant, would rise to Rs 420 crore, after factoring in the 5% increase. In the third year, it will go up further to Rs 441 crore. Typically, the concession period is 20 years, which can be longer in certain cases. NHAI has earned over Rs 800 crore as premium this year from various projects that have been bid out. This could almost double to Rs 1,500 crore by the close of the year.
http://economictimes.indiatimes.com/news/economy/infrastructure/indias-largest-highway-project-up-for-grabs/articleshow/8972484.cms

Fuel price hike will add to hardship: Jayalalithaa

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The Hindu"The diesel price rise would result in an increase in transportation cost and affect the poor and the downtrodden", Tamil Nadu Chief Minister Jayalalithaa said in a statement on Friday. File photo: Bijoy Ghosh

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Diesel price up by Rs. 3, LPG to cost Rs. 50 moreProtests erupt over price hike

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Tamil Nadu Chief Minister Jayalalithaa on Friday strongly condemned the hike in the prices of diesel, kerosene and cooking gas, and demanded that the Centre roll it back immediately.

While the petrol price hike affected motorists and car owners, predominantly from the middle class, the diesel price rise would result in an increase in transportation cost and affect the poor and the downtrodden, Ms. Jayalalithaa said in a statement. Inflation had already affected the poor and middle classes. This hike would lead to an increase in the cost of all products, including vegetables.

"While the Centre had marginally reduced the customs and excise duty on diesel and crude oil, it had asked the State government to reduce the value-added taxes. The State government is in constant touch with the people and spends a major portion on their welfare schemes. Value-added taxes account for major share of the State government's revenue. Having raised the prices of diesel, kerosene and LPG, the Centre has no right to ask the State government to reduce the value-added taxes," she said.

"When the income of people has been constant, how can they face price rise due to increase in diesel cost?"

On the hike in cooking gas price by Rs. 50 a cylinder, she said people could not bear it.

"Kerosene is being used by the poor people and an increase of Rs. 2 per litre is totally unacceptable. While there is inflation all around, the kerosene price hike would create great hardship to the poor people. Hence, I urge upon the Centre to withdraw it [the hike] immediately," she said.

Keywords: Fuel price hike, Jayalalithaa


http://www.thehindu.com/news/national/article2132634.ece

Why couldn't you prevent hike, Left Front asks Mamata

Times of India - ‎Jun 24, 2011‎
KOLKATA: West Bengal's Left Front on Friday strongly opposed the fuel price hike and attacked chief minister Mamata Banerjee asking how she failed to prevent the increase despite being a major ally of the UPA government. In a statement, Left Front ...

Why couldn't you prevent hike, Left Front asks Mamata

Hindustan Times - ‎13 hours ago‎
West Bengal's Left Front on Friday strongly opposed the fuel price hike and attacked chief minister Mamata Banerjee asking how she failed to prevent the increase despite being a major ally of the United Progressive Alliance government. ...

Mamata scraps land acquisition in Rajarhat

iNewsOne - ‎Jun 24, 2011‎
Kolkata, June 24 (IANS) West Bengal Chief Minister Mamata Banerjee Friday announced that there will be no more land acquisition in Rajarhat area of North 24 Parganas district that was begun by the previous Left Frontgovernment. ...

Over 1500 acres to be returned to farmers at Rajarhat: Mamata

IBNLive.com - ‎Jun 24, 2011‎
... on the heels of passing a bill in the Assembly to return land to unwilling farmers in Singur, the West Bengal government today decided to withdraw the notification issued by the previous Left Front government to acquire 1587 acres at Rajarhat. ...

Bengal cancels Rajarhat Township land

All India Radio - ‎11 hours ago‎
Announcing this in Kolkata on Friday night, Chief Minister Mamata Banerjee said the notification issued by the previous Left Front Government for acquiring the land will be withdrawn. She said the previous Government had forcibly acquired over 6800 ...

WB govt withdraws Rs 16 cess on LPG

Times of India - ‎3 hours ago‎
Banerjee also deprecated the erstwhile Left Front government in the state, saying it had not bothered to lift the cess on LPG. "Left Front talks big, but does nothing substantial. We have shown that we could do it," she said.

CPI-M leader flays Mamata for land return announcement

Mangalorean.com - ‎2 hours ago‎
... Banerjee's decision not to allow any further land acquisition in Rajarhat area on Kolkata's north eastern fringes, saying it will only help promoters and cripple a showpiece urban township process set rolling by the previous Left Front regime. ...

Mamata lifts cess on LPG-Congress to follow suit

TruthDive - ‎5 hours ago‎
Banerjee said that despite the repeated requests to the previous Left Front government, it did not bother to lift cess on LPG to give relief to the common people. "Left Front talks big, but does nothing substantial". "We have shown that we could do it" ...

Mamata land lock on New Town

Calcutta Telegraph - ‎20 hours ago‎
Mamata said the Left Front government had already acquired 7085 acres for the township in North 24-Parganas. "Out of that (7085 acres), only 250 acres were purchased from willing farmers. The rest (6835 acres) was forcibly acquired," she said at ...

<B>Aditi Phadnis:</B> A question of answers

Business Standard - Aditi Phadnis - ‎Jun 24, 2011‎
The protests of peasants in Singur whose land was taken away, allegedly forcibly, by the Left Front government propelled the Trinamool Congress to victory. So at the very first meeting of the cabinet, the government resolved that the land of peasants ...

Mamata to waive cess in West Bengal to cut LPG price sting

Hindustan Times - ‎5 hours ago‎
"We had repeatedly implored the Left Front government for sacrificing a part of their income from petro products to help the common man. But they never did it," said Mamata. West Bengal is going through one of the worst financial crisis in its history. ...

West Bengal slashes cess on cooking gas

Economic Times - ‎6 hours ago‎
Banerjee said her government had a moral responsibility to the people and regretted that the erstwhile Left Frontregime had not paid any heed to the opposition's request time and again to cut cess on fuel prices. "The hike of Rs.50 now comes down to ...

WB Chief Minister's mass appeal a worry for her officials

Business Standard - ‎Jun 24, 2011‎
On the other side, a nervous police commissioner of Kolkata said, "Around 650 people have gathered in front of the CM's residence. They want to meet the CM. What to do?" If this is a problem on the only holiday Banerjee has allowed during the week, ...

West Bengal government withdraws cess of Rs 16 on LPG cylinder

NetIndian - ‎5 hours ago‎
Ms Banerjee said she had also urged the Centre to reduce the price of petroleum products. She said the previousLeft Front government had promised to withdraw the cess on LPG when the prices of petroleum products were increased earlier, ...

Opposition slams UPA for fuel hike, stage protest

IBNLive.com - ‎6 hours ago‎
The Opposition - that is the BJP and the Left - have both asked for an immediate rollback. A day after the government raised prices of diesel, kerosene and LPG, opposition parties staged protests across the country. There were protests in the capital ...

Over 1500 acres to be returned to farmers at Rajarhat: Mamata

MSN India - ‎Jun 24, 2011‎
Kolkata, June 24 (PTI) Close on the heels of passing a bill in the Assembly to return land to unwilling farmers in Singur, the West Bengal government today decided to withdraw the notification issued by the previous Left Frontgovernment to acquire ...

Gas gasp with nudge to states

Calcutta Telegraph - ‎20 hours ago‎
But the cash-strapped Bengal government did not announce tonight if it would forgo a part of the local taxes and reduce the prices — something the current ruling party had persistently asked the previous Left regime to do. ...

Mamata -- the new leader

Mid-Day - Arindam Chaudhuri - ‎Jun 23, 2011‎
It is what she is doing on a daily basis by leading from the front that is creating the biggest impact. She starts her work sharp at ten in the morning and ends office at ten in the night. This means that the office staff, the bureaucracy "everyone is ...

Govt under fire from ally, rivals on fuel price hike

Moneylife Personal Finance site and magazine - ‎9 hours ago‎
The AIADMK has demanded an immediate rollback of the increase New Delhi: The fuel price hike saw the government coming under fire from ally Trinamool Congress and political rivals BJP and Left parties which decided to hit the streets on the issue while ...

Delay in notification denies relief for Bengal LPG users

Hindu Business Line - ‎5 hours ago‎
PTI The benefit of the waiver of Rs 16 per LPG cylinder offered by the West Bengal Government cannot be availed of by consumers till a notification is issued by it. "We cannot change the retail price unless there is a notification for the waiver of 4 ...

Mamata halts land acquisition at Rajarhat

Indian Express - ‎16 hours ago‎
The West Bengal government has halted the acquisition process of 1687 acres of land at Rajarhat-New Town — a sprawling township and industrial hub east of Kolkata. The decision, which was taken at a meeting of Housing Infrastructure Development ...

Trinamool set to retain railway ministry

Times of India - ‎18 hours ago‎
NEW DELHI: Trinamool Congress chief Mamata Banerjee, who was clear that she didn't want anyone else from her party to get Cabinet rank, may have to reverse her decision with the Congress making it plain that a crucial portfolio like railways needed a ...

Mamata opposes hike in fuel prices

IBNLive.com - ‎Jun 24, 2011‎
PTI | 10:06 PM,Jun 24,2011 Kolkata, June 24 (PTI) West Bengal Chief Minister Mamata Banerjee today opposed the fresh hike in fuel prices, saying it will put the common man in great difficulty. "We do not support the repeated rise in fuel prices. ...

WB govt not to acquire 1687 acres

Business Standard - ‎Jun 24, 2011‎
West Bengal chief minister Mamata Banerjee has said that her party, Trinamool Congress (TMC) said today that her government will not acquire the 1687 acres because the acquisition will put the livelihoods of many farmers in jeopardy. ...

We don't support frequent fuel hikes: Mamata

Hindustan Times - ‎Jun 24, 2011‎
West Bengal chief minister Mamata Banerjee, a major ally of the United Progressive Alliance (UPA) government, on Friday said that she does not support frequent fuel price-hikes as they put immense pressure on the common people of the country. ...

A greater burden on the poor

Deccan Chronicle - ‎56 minutes ago‎
The government did what was inevitable in its scheme of things by announcing a hefty rise in the prices of diesel, LPG and kerosene. To the credit of Ms Mamata Banerjee, the Trinamul Congress chief and West Bengal's Chief Minister, it must be said that ...

Revolution over, now WB needs results from Mamata

Rediff - ‎7 hours ago‎
It is now more than a month since Mamata Banerjee and her Trinamool Congress-Congress alliance government assumed power in West Bengal. What has the government achieved and where is the state going? No one said Bengal would have an easy time of it when ...

Mamata cuts cess to reduce LPG prices

indiablooms - ‎7 hours ago‎
New Delhi, June 25 (IBNS): West Bengal Chief Minister Mamata Banerjee on Saturday announced cut in the cess on LPG prices, thus reducing the prices of LPG cylinders by Rs 16 in the state. To reduce the effects of a hike in LPG, diesel and kerosene ...

We don't support fuel price hike: Mamata

iNewsOne - ‎Jun 24, 2011‎
Kolkata, June 24 (IANS) West Bengal Chief Minister Mamata Banerjee, whose Trinamool Congress party is a major ally of the United Progressive Alliance (UPA) government, Friday said she does not support frequent fuel price hikes as they put immense ...

25/06/2011

Mitra takes dig at Oppn for disturbing his presentation

Kolkata, Jun 24 (PTI) West Bengal Finance Minister Amit Mitra today took a dig at the opposition Left Front members for creating disturbances in the Assembly when he was presenting the vote-on-account for August and September.
"Instead of congratulating me for presenting the vote-on-account completely in Bengali including all typical financial terms, the opposition members started making fun of it, disturbing me repeatedly," Mitra rued while talking to reporters in his Assembly chamber.
"The opposition must be jealous about the way I countered the earlier vote-on-account passed by the former finance minister Asim Dasgupta till July, and thus behaved this way," he said.
In the earlier vote-on-account passed by Dasgupta, the state''s revenue projections had been highly exaggerated and expenditure depressed in the annual financial statement (AFS), said Mitra, who was also critical of various issues of the Left Front era.
"These matters perhaps compelled the opposition to disturb me during my presentation as it was difficult for them to digest," Mitra added.
During his presentation Mitra had to stop reading out his speech more than once, which was even protested by Chief Minister Mamata Banerjee, some of her cabinet colleagues and many ruling party members.
After Mitra completed his presentation, PHE Minister Subrata Mukherjee raised a point of order saying the opposition could never raise any point of order during the presentation of vote-on-account in the House.

25/06/2011

Fuel price hike: Left and right furious, protests on

Mamata cuts state cess on LPG, so gas now cheaper by Rs 16 in WB. BJP, other Opposition parties protest fuel price hike, demand rollback. In Kerala, price hike sparks protest, bus strike next week.

BJP protests fuel price hike, demands rollback

Slamming the government for the hike, the Left parties asked all their units to immediately conduct hartals, demonstrations and other protest actions.

The CPI(M), CPI, RSP and Forward Bloc said it was "another cruel blow" to the common people as the increase in diesel price would raise transportation cost and affect farmers, while those in kerosene and LPG cylinders would burden the poor.

CPI National Secretary D. Raja accused the government of kneeling down before market forces and corporate houses and demanded immediate roll back of prices.

The Central government on Friday increased diesel price by Rs. 3 per litre, domestic LPG by Rs. 50 per cylinder and kerosene by Rs. 2 per litre.

In the national capital, BJP activists marched towards Parliament but were prevented by police who resorted to use of water canons to disperse the protesters.

The activists tried to jump the barricade and march towards Parliament but police deployed in large numbers prevented them. When the protesters did not stop, police resorted to use of water canons.

Chanting slogans against Prime Minister Manmohan Singh, UPA president Sonia Gandhi and Delhi Chief Minister Sheila Dikshit, they alleged price rise have broken the back of common man.The activists also courted arrest.

The ruling SAD in Punjab and main opposition INLD in Haryana slammed the Centre for effecting "hefty and unwarranted" hike in fuel prices, terming the decision as "anti-people" and demanded a rollback.

Fuel price hike: Left and right furious, protests on

Political parties demand rollback of fuel price hike

Flaying the UPA government for the steep hike in fuel price, various political parties in the region have termed the move as 'anti-people' and demanded an immediate rollback of the increase.

Marching with gas cylinders, kerosene stoves and earthen chullas (stove), the Shiv Sena unit in Jammu and Kashmir on Saturday staged a demonstration in the Rani park area in Jammu city against the increase in LGP, diesel and kerosene oil price.

Over 200 Sena activists led by State unit president Ashok Gupta raised anti-UPA slogans.

"The price rise in the past has already hit the financial backbone of the common man in the country," Gupta said, adding that the government should roll back the price and his party would intensify protests in future over the issue.

Meanwhile, ruling Shiromani Akali Dal in Punjab and main opposition INLD in Haryana have slammed the Centre for effecting "hefty and unwarranted" hike in fuel prices.

Punjab Deputy Chief Minister and SAD president Sukhbir Singh Badal said the Congress-led UPA government "deliberately hastened the oil price hike as it feared that crashing crude price every day would leave no justification for diesel, kerosene and LPG price hike."

He said the diesel price hike would have direct bearing on economy of farmers and commuters and have a cascading effect on inflation.

INLD's secretary general Ajay Singh Chautala criticised the Centre's move saying, "The step has once again exposed the anti-people face of the Congress. The hike would further increase inflation and common man would be directly affected."

Terming the price hike as an act of 'economic terrorism', the BJP unit in Jalandhar in Punjab accused the Union government of trying to benefit the oil marketing companies at the cost of common man's pocket.

"Government's claim of standing with 'aam aadmi' is now well exposed. Its unfortunate that the UPA is more concerned about oil marketing companies than common man's interests," BJP leader and former state minister Manoranjan Kalia alleged.

In Ghaziabad in Uttar Pradesh, BJP's Rajya Sabha MP Vinay Katiyar said the fuel price hike would affect the middle and lower income groups.

Describing the hike in diesel and LPG prices as an "inhuman step", BJP spokesperson Nirmala Sitharaman said "the increase will also affect India's growth story" the party would hold protest demonstrations tomorrow across the country.

Fuel price hike: Left and right furious, protests on

"BJP president Nitin Gadkari has announced that the party will hold protests from the district to the national level across the country against the hike," BJP vice-president Mukhtar Abbas Naqvi told PTI.

He said the hike has been announced by the government to "serve the interest of the oil mafia". "In the last one year, the government has increased petroleum prices ten times. While the common man is bearing the brunt of price rise, the government has now added fuel to fire," Naqvi said.

BJP also dared the UPA allies opposing this price hike to come clear on their stand and leave the alliance in support of the common man, instead of doing mere lip service.

"The step to increase the LPG and diesel prices is an inhuman step, considering that this government has not taken any measures to contain food inflation", said Sitharaman. She said the hike in diesel and LPG prices will have a cascading effect on inflation.

Mamata cuts state cess on LPG

In response to the Centre's move, West Bengal Chief Minister Mamata Banerjee cut the state cess on LPG. Now, LPG will cost Rs 16 less in the state.

Earlier, the Trinamool Congress chief opposed the hike in fuel prices, saying it will put the common man in great difficulty. "We do not support the repeated rise in fuel prices. This will put the common man in great difficulty. We have conveyed our view where it needs to be conveyed," Banerjee, whose Trinamool Congress is a key UPA ally, said in Kolkata.

Pointing out that fuel prices were already high, she said "kerosene and domestic gas are used by common people. The price of petrol was also recently hiked."

Tamil Nadu chief minister Jayalalithaa described as "unacceptable" today's fuel price hike and demanded its immediate rollback.

"The price of LPG, which is being used by all strata of people has been increased by Rs 50. People cannot tolerate this. Further, the price of kerosene has also been increased by Rs 2. This will severely affect the poor people as they are the main consumers of kerosene" Jayalalithaa said in a statement in Chennai.

On the increase in diesel price by Rs 3 a litre, she said it would have a cascading effect on the prices of most commodities, including vegetables, as they are transported by road.

"When there is an overall rise in prices, this hike in fuel prices would severely affect the people. I, therefore, would like to insist that the Centre should immediately roll back the hike in prices of diesel, kerosene and LPG," she said.

Fuel price hike: Left and right furious, protests on

BJP protests fuel price hike, demands rollback

The Bharatiya Janata Party (BJP) Saturday staged a demonstration here against the hike in the prices of diesel, kerosene and cooking gas, with party leaders demanding a rollback.

"Instead of listening to the complaints of the common man, the government is showing a no-mercy attitude by raising the prices of essential commodities," said the BJP's V.K. Malhotra, Leader of Opposition in the Delhi state assembly.

"The hike in prices of fuel and cooking gas is unjustified," he added. Shouting slogans against the government and asking the people to join in, the party organised the protest at Jantar Mantar at 11 a.m. "We demand an immediate rollback of this hike," Malhotra said.

Petroleum Minister S. Jaipal Reddy Friday announced that the price of diesel will be increased by Rs.3 per litre, kerosene by Rs.2 per litre and domestic liquid petroelum gas (LPG) by Rs.50 per cylinder, excluding state levies such as VAT.

The hike came a day after the government announced that food inflation had soared to nearly a 10-week high of 9.13 percent for the week ended June 11. People voiced their woes after the hike, finding it an additional burden on the house budgets.

"The government says the petroleum companies are incurring a loss, so a hike. What about the loss that we as tax payers are suffering. We can't cut down on our basic needs now," said a miffed Sumati Dewan, housewife in east Delhi's Laxmi Nagar.

Before the hike, oil marketing companies suffered losses of Rs.13.72 per litre of diesel, Rs.26.16 per litre of kerosene and Rs.381.14 per LPG cylinder.

On a daily basis, Indian Oil, Hindustan Petroleum and Bharat Petroleum together incur a total loss of Rs.456 crore on the sale of the three petro-products.

Protests in Kerala, bus strike next week

Thiruvananthapuram: Left parties and BJP today staged demonstrations across Kerala in protest against hike in the prices of diesel and cooking gas while the private bus operators threatened to organise a one-day strike on June 29.

Raising anti-Centre slogans, workers of CPI-M's youth wing DYFI blocked a passenger train at Kannur as part of their state-wide protest against the fuel price hike.BJP workers took out marches in the state capital and other centres condemning the price increase.

Private Bus Operators Co-ordination Committee announced that all the services would be suspended on June 29 demanding an immediate fare hike in view of the diesel price increase.

The latest increase had come as a big blow to bus industry and immediate hike in minimum fares from Rs 4 to 5 was inevitable, its office-bearers said in Kozhikode.They said if their demands were not met by the government, they would think about launching an indefinite strike.

The Centre had yesterday hiked prices of diesel and kerosene by Rs 3 and Rs 2 respectively. The price of domestic LPG had also been increased by Rs 50 per cylinder.

Source: IANS & PTI

25/06/2011

Dayanidhi Maran likely to be dropped in next Cabinet reshuffle

New Delhi: In a bid to clean its image, Prime Minister Manmohan Singh, who is planning to restructure the cabinet in the first week of July, is likely to drop textiles minister Dayanidhi Maran as fresh revelations about his alleged role in the 2G scam during his earlier tenure as communications minister.

Dayanidhi Maran likely to be dropped in next Cabinet reshuffle

Disregarding the resignation demands, Maran attended the cabinet meeting on Thursday. He has been denying the allegations as baseless and served notice on media organisations which published the initial stories.

"The Congress will not drag the issue as it happened with A Raja. The moment the probe agency or the court raises a small finger against Maran, the party will signal him to quit," the Congress leader said.

Sources say that the DMK leadership has asked Maran to "stay on" and attend the cabinet meetings and official functions.

According to them, the party fears that it will be pushed to the corner if Maran resigns in a hurry.

Already, two of its influential leaders - former communications minister A Raja and Rajya Sabha MP and party supremo M Karunanidhi's daughter Kanimozhi - are in Tihar Jail in connection with the 2G spectrum scam. Maran was communications minister from 2004 to 2007 in the UPA I government before Raja.

As Maran tries to put up a defence and Congress tries to avoid any comment, opposition parties - DMK's arch rival AIADMK, the Bharatiya Janata Party and the Left parties - have been raising the decibel for his resignation.

Maran has to battle his case on several fronts - the Central Bureau of Investigation (CBI), which has begun preliminary probe into his alleged role in the 2G spectrum scam, the Supreme Court where the civil society groups have filed petitions, media revelations and the opposition onslaught.

The main allegation, initially revealed by Tehelka magazine and followed up in several other reports, is that Maran forced C Sivasankaran, owner of Aircel, to sell the telecom company to Maran's Malaysia-based friend T Ananda Krishnan in 2006.

The reports allege that Maran deliberately delayed issuing spectrum licenses to Aircel's sister concern, Dishnet Wireless, when it was owned by Sivasankaran. He issued the licenses soon after it changed hands to Ananda Krishnan who owns Maxis.

Within four months of the spectrum allocation, Astro - a sister company of Maxis - got cabinet nod to buy Rs 675 crore equity in Sun Direct DTH, a company owned by Maran's brother Kalanidhi Maran and family, the reports have pointed out.

On June 6, Sivasankaran in his statement to the CBI reiterated the charge that he was forced to sell the company. Maran denied the allegation saying Sivasankaran was keen on selling the company.

The CBI is likely to complete the initial probe in the allegations against Maran in two to three weeks and file a report, sources said. If it finds substance in the allegations, Maran is likely to be questioned. This can lead to a new cases against him.

Maran has been on the backfoot after fresh media reports surfaced regarding his involvement. Though he filed defamation cases against Tehelka and the New Indian Express for the initial reports, he has not initiated any action against several Delhi-based newspapers and TV channels which have carried details of the scam, sources said.

On the political front, the chorus for his resignation is gaining momentum. "Maran should resign at the earliest. Otherwise, he will be forced to go the Raja way," BJP spokesperson Nirmala Sitharaman said.

Communist Party of India (CPI) leader D Raja said that the "complicity of Maran in a bigger scam than of A Raja is unfolding day by day." He should quit, he demanded.

The opposition parties will demand Maran's resignation in the coming monsoon session, if he does not resign by then, Janata Dal-United general secretary Javed Raza said.

Trouble is brewing for Maran on another front: the joint parliamentary committee (JPC) on 2G spectrum will be summoning him soon.

"We are calling all former telecommunication ministers, that includes Maran," JPC chief PC Chacko said.

As the clouds gather against Maran, the Congress is cautiously watching the scenario. So far, the party had left it to the besieged DMK minister to defend himself.

Source: IANS

25/06/2011

Freight rates to increase by 8-9% on diesel hike

Chandigarh: Following hike in diesel rates, transporters today said they will raise freight rates by 8-9 per cent with immediate effect on all routes across India.

"Freight rates will be raised by 8-9 per cent for all the routes from today onwards because of increase in diesel rates," North India Motor Road Transport Association (NIMRTA) President Charan Singh Lohara told PTI.

Singh is also a senior member and Ex-President of All India Motor Transport Congress. The impact of increase in freight rates will be visible on transportation of all kinds of goods, including perishable commodities like vegetables and industrial items, he said.

"The new booking of orders will now be done on the basis increased rates," Singh added. The freight rate from Ludhiana to Mumbai will increase by Rs 2,000 to Rs 24,000. Similarly, freight rates of other routes will be also increased, he cited an example.

According to Lohara, there are over 60 lakh trucks running across the country, playing a vital role in transporting goods from one part of the nation to the other.
Centre yesterday hiked the diesel prices by Rs 3 a litre along with the increase in kerosene and LPG by Rs 2 per litre and Rs 50 a cylinder, respectively.

Transporters said hike in diesel prices would adversly impact their business. "Our input cost has already upped substantially in the last one year because of the rising tyre prices, surging toll taxes and insurance cost. Now increase in diesel rates will further hit our businesses," said Ludhiana-based transporter Sarabjit Singh.

Source: PTI

25/06/2011

Puttaparthi shuts down as AP probes Sathya Sai trust

Hyderabad: Traders in the pilgrim town of Puttaparthi in Andhra Pradesh's Anantapur district Saturday observed a shutdown to protest the alleged irregularities committed by the Sathya Sai Central Trust members.

Puttaparthi observes shutdown against Sathaya Sai trust

Shops and business establishments were voluntarily closed in the town as dozens of traders took out a rally, demanding the state government take over the trust in view of the allegations against trust members.

Holding placards and raising slogans, the protestors demanded the trust members come clean in view of the allegations that they are involved in misappropriation of money and valuables belonging to the trust.

As police intensified the probe into seizure of huge cash from a car last week, anger is sweeping among the business community in the town over the alleged acts of omission and commission by the trust.

Trust member and late Sathya Sai Baba's nephew R.J. Ratnakar is to appear before police later in the day while another member, V. Srinivasan, is likely to be quizzed Monday.

The police issued notices to two of the trust members after three people arrested with Rs.35.5 lakh on July 19 revealed they were transporting the cash from Puttaparthi to Bangalore on the instruction of the trust members.

Worried over the impact the controversies may have on their business, the traders are demanding that the government take over the trust, which manages the vast empire of Sai Baba.

The devotees, including the business community in Puttaparthi, want an administrative body on the lines of Tirumala Tirupati Devasthanam (TTD) to run the empire.

Taking a serious note of the goings on, the government June 22 sought a detailed report from the trust on its activities, its future programmes, assets and financial matters.

The government is also considering withdrawal of several exemptions enjoyed by the trust under the Endowment Act for last 35 years.

The trust, which runs educational and healthcare facilities in Puttaparthi, other parts of Anantapur, Bangalore and schools in various countries, has been facing series of allegations after the demise of Sathya Sai Baba April 24.

Puttaparthi observes shutdown against Sathaya Sai trust

Followers protest mishandling of Trust funds

Followers of Sathya Sai Baba on Saturday took out a rally here protesting the alleged mishandling of funds of the Sri Sathya Sai Central Trust and other controversies involving some of its members.

Traders in Puttaparthi also shut down their shops and gathered at the Hanuman Temple Circle to take part in the protests, police said.

Later, the protesters took out a rally from Hanuman Temple Circle to Mandal Revenue Office (MRO) where they submitted a memorandum demanding intervention of the government, they said.

The protesters were carrying placards and demanded abolishment of the Sathya Sai Central Trust board and appointment of a special officer on the lines of Titrumala Tirupati Devesthanam (TTD) to look after the activities of the Trust, police said. The rally was peaceful and about 100 traders and followers participated in it, they said.

A day after disclosure of assets by the Trust members, police seized Rs 35 lakh cash allegedly belonging to Sri Sathya Sai Trust while being transported in a four-wheeler at Kodikonda check-post under Chilamanthur police station limits in Anantapur district on July 18. Two trust members have been called by police for questioning in connection with the case.

Earlier on July 17, the trust members opened Yajur Mandir, private chamber of late Sathya Sai Baba, and it was disclosed that it contained 98 kg of gold, 307 kg of silver, apart from Rs 11.56 crore.

Source: IANS & PTI

25/06/2011

Mamata's mamata gives officials a headache

Two problems: Mass appeal & lazy babus; govt stenographers type just three and a half letters every day

Mamata's mamata gives officials a headache

New Delhi: What was once the biggest strength for her party -- her mass appeal -- has turned out to be a major worry for her officials and security personnel, after Trinamool Congress chief Mamata Banerjee has become the chief minister of West Bengal.

Ratan Mukherjee, Banerjee's most trusted aide and additional private secretary, recently got a call at 8.30 am on a Sunday. On the other side, a nervous police commissioner of Kolkata said, "Around 650 people have gathered in front of the CM's residence. They want to meet the CM. What to do?"

If this is a problem on the only holiday Banerjee has allowed during the week, during the working days, too, she is flooded with visitors from all walks of life. After assuming power for the first time, Banerjee has discovered there are innumerable staff associations at the Writers' Building, the state government secretariat. And, all of them want to meet the CM with bouquets and, of course, memoranda regarding their various demands.

After indulging them for the first few days, Banerjee had to ask one of her ministers -- Subrata Bakshi -- to sit in her office along with other staff to handle this stream of association leaders. Finally, they were told to seek an appointment with the CM after six months.

While some associations are keen to build a rapport with the new government, the dreaded coordination committee, infamous for its no-work-and-all-pay attitude and backed by the Left, is still maintaining its old style and little interest in the new government's work.

Mamata's mamata gives officials a headache

"We had brought six-seven staff from various departments to the CM's office. After working till 10 pm on the first day, all of them were missing from duty the next day. They didn't come to the CM's office but were found sitting leisurely in their native departments," Mukherjee says.

When asked, the staff flatly said they would not work till 10 pm. "At the most, they said they can work till 7, we were told," said another Banerjee aide.

"If the financial situation of the state poses a big threat to Banerjee's performance, the attitude of a section of the government employees is also depressing," said Saugata Ray, Union minister of state for urban development and a Trinamool Congress leader.

When asked how she was finding the workforce in Bengal, Banerjee replied, "The CPI(M) had tried to destroy the administration. I am hopeful I will get the cooperation of the employees."

Already, a group of teachers have staged a sit-in demonstration in front of Banerjee's house, demanding permanent jobs, even as the state is bleeding through its nose to pay salaries and pensions. Banerjee, who has spent her administrative career entirely in Delhi, is also amused to see the work culture 'nurtured' during the Left rule in Bengal.

She has observed that on an average a full-time stenographer types just three and a half letters every day at the Writers' Building!

Source: Business Standard

25/06/2011

Tatas, Bengal look for 'workable solution'

Even as Tata Motors is ready to vacate the Singur land if compensated, both parties may work out a formula over the weekend.

Kolkata: Tata Motors and the West Bengal government are likely to come up with a "workable solution" over the weekend before the hearing on the Singur Land Rehabilitation and Development Act, 2011, resumes at the Calcutta High Court on Monday.

Though it was not clear what it might be, Tata Motors counsel Samaraditya Pal requested the Advocate General on Friday to agree to a status quo on distribution of land, in the light of media reports.

Pal was referring to statements made by West Bengal commerce and industry minister Partha Chatterjee on Thursday that the process of returning land to unwilling farmers was underway. Chief minister Mamata Banerjee had also indicated, after Tata Motors moved court, that the land was with the state government.

Advocate General Anindya Mitra, however, refused to respond immediately and reserved his comments for Monday.

Siddhartha Mitra, also a Tata Motors counsel, said if anything worked out, which would be agreeable to both parties, steps could be taken in that direction. He said there were proposals from both sides.

Tata Motors had written to the Left government it would vacate the land if compensated. The company invested Rs 1,800 crore in developing and leveling the land, apart from the plant and machinery. Though, a lot of the infrastructure was shifted when the project was relocated to Sanand in Gujarat, building and sheds worth Rs 440 crore remained at Singur. The company said it was spending Rs 1 crore a month to maintain it.

One of the main points of argument of the Tatas' was to maintain status quo, since the company was entitled to compensation under to the Singur Act, which revoked the lease agreement between the West Bengal Industrial Development Corporation (WBIDC), on grounds of "non-commissioning and abandoning" of the project. In October 2008, the company pulled out the Nano project after a violent protest against land acquisition spearheaded by Mamata Banerjee's Trinamool Congress.

The Advocate General said the agitation was led by a third party and not WBIDC or the state government. "Why couldn't the company restart the project after 30-40 days," he asked. Mitra said the vendors and Tata Motors should be treated separately. Tata Motors was a lessee, while vendors were allottees.

Earlier in the court, Pal argued that the Singur Act was repugnant to the extent it was in conflict with some basic principles of the Land Acquisition Act, 1894, which was used to acquire the entire land (997 acres) at Singur for the company and its 54 vendors. There was no provision of returning the land under the Act to the erstwhile land losers.

"Once possession has been taken for public purpose, if that fails the land cannot be returned to owners. The state has to go for some other public purpose or auction," Pal said. Whereas, the purpose of the Singur Act was to vest the land with the state government for the purpose of returning the land to the "unwilling" owners who have not accepted any compensation.

This hearing would continue on Monday.

Source: Business Standard


Economic liberalisation in India

From Wikipedia, the free encyclopedia

The economic liberalisation in India refers to ongoing economic reforms in India that started in 1991. After Independence in 1947, India adhered to socialist policies. In the 1980s, Prime Minister Rajiv Gandhi initiated some reforms. In 1991, after India faced a balance of payments crisis, it had to sell 67 tons of gold to the International Monetary Fund (IMF) as part of a bailout deal, and promise economic restructuring. The government of P. V. Narasimha Rao and his finance minister Manmohan Singh (the present Prime Minister) started breakthrough reforms.[1] The new neo-liberal policies included opening for international trade and investment, deregulation, initiation ofprivatization, tax reforms, and inflation-controlling measures. The overall direction of liberalisation has since remained the same, irrespective of the ruling party, although no party has yet tried to take on powerful lobbies such as the trade unions and farmers, or contentious issues such as reforming labour laws and reducing agricultural subsidies.[2] The main objective of the government was to transform the economic system from socialism to capitalism so as to achieve high economic growth and industrialize the nation for the well-being of Indian citizens.[3][4] Today India is mainly characterized as a market economy.[5]

As of 2009, about 300 million people—equivalent to the entire population of the United States—have escaped extreme poverty.[6] The fruits of liberalisation reached their peak in 2007, when India recorded its highest GDP growth rate of 9%.[7] With this, India became the second fastest growing major economy in the world, next only to China.[8] An Organisation for Economic Co-operation and Development (OECD) report states that the average growth rate 7.5% will double the average income in a decade, and more reforms would speed up the pace.[9]

Indian government coalitions have been advised to continue liberalisation. India grows at slower pace than China, which has been liberalising its economy since 1978.[10] McKinsey states that removing main obstacles "would free India's economy to grow as fast as China's, at 10 percent a year".[11]

For 2010, India was ranked 124th among 179 countries in Index of Economic Freedom World Rankings, which is an improvement from the preceding year.

Contents

 [hide]

[edit]Pre-liberalisation policies

Part of a series on the
History of Modern India
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British Raj (1858–1947)
Indian independence movement (1857–1947)
Partition of India (1947)
Post-Independence Flag of India.svg
Political integration of India (1947–49)
Indo-Pakistani War of 1947
States Reorganisation Act (1956)
Non-Aligned Movement (1956– )
Sino-Indian War (1962)
Indo-Pakistani War of 1965
Green Revolution (1970s)
Indo-Pakistani War of 1971
Emergency (1975–77)
Siachen conflict (1984)
1990s in India
Economic liberalisation in India
Kargil War (1999)
2000s in India
See also
History of India
History of South Asia
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Indian economic policy after independence was influenced by the colonial experience (which was seen by Indian leaders as exploitative in nature) and by those leaders' exposure toFabian socialism. Policy tended towards protectionism, with a strong emphasis on import substitutionindustrialization under state monitoringstate intervention at the micro level in all businesses especially in labour and financial markets, a large public sector, business regulation, and central planning.[12] Five-Year Plans of India resembled central planning in theSoviet UnionSteelminingmachine toolswatertelecommunicationsinsurance, and electrical plants, among other industries, were effectively nationalized in the mid-1950s.[13]Elaborate licences, regulations and the accompanying red tape, commonly referred to asLicence Raj, were required to set up business in India between 1947 and 1990.[14]

Before the process of reform began in 1991, the government attempted to close the Indian economy to the outside world. The Indian currency, the rupee, was inconvertible and high tariffs and import licensing prevented foreign goods reaching the market. India also operated a system of central planningfor the economy, in which firms required licenses to invest and develop. The labyrinthine bureaucracy often led to absurd restrictions—up to 80 agencies had to be satisfied before a firm could be granted a licence to produce and the state would decide what was produced, how much, at what price and what sources of capital were used. The government also prevented firms from laying off workers or closing factories. The central pillar of the policy wasimport substitution, the belief that India needed to rely on internal markets for development, not international trade—a belief generated by a mixture ofsocialism and the experience of colonial exploitation. Planning and the state, rather than markets, would determine how much investment was needed in which sectors.

– BBC[15]

In the 80s, the government led by Rajiv Gandhi started light reforms. The government slightly reduced Licence Raj and also promoted the growth of the telecommunications and softwareindustries.[citation needed]

The Vishwanath Pratap Singh government (1989–1990) and Chandra Shekhar Singhgovernment (1990–1991) did not add any significant reforms.

[edit]Impact

[edit]Narasimha Rao government (1991–1996)

Present Prime Minister Manmohan Singhwas then Finance Minister in Cabinet of Prime Minister P V Narasimha Rao

[edit]Crisis

The assassination of prime minister Indira Gandhi in 1984, and later of her son Rajiv Gandhi in 1991, crushed international investor confidence on the economy that was eventually pushed to the brink by the early 1990s.

As of 1991, India still had a fixed exchange rate system, where the rupee was pegged to the value of a basket of currencies of major trading partners. India started having balance of paymentsproblems since 1985, and by the end of 1990, it was in a serious economic crisis. The government was close to default,[19] its central bank had refused new credit and foreign exchange reserves had reduced to the point that India could barely finance three weeks' worth of imports.

A Balance of Payments crisis in 1991 pushed the country to near bankruptcy. In return for an IMF bailout, gold was transferred to London as collateral, the Rupeedevalued and economic reforms were forced upon India. That low point was the catalyst required to transform the economy through badly needed reforms to unshackle the economy. Controls started to be dismantled, tariffsduties and taxesprogressively lowered, state monopolies broken, the economy was opened to trade and investment, private sector enterprise and competition were encouraged andglobalisation was slowly embraced. The reforms process continues today and is accepted by all political parties, but the speed is often held hostage by coalition politics and vested interests.

– India Report, Astaire Research[8]

[edit]Later reforms

  • Atal Bihari Vajpayee's administration surprised many by continuing reforms, when it was at the helm of affairs of India for five years.[20]
  • The Vajpayee administration continued with privatization, reduction of taxes, a sound fiscal policy aimed at reducing deficits and debts and increased initiatives for public works.
  • The UF government attempted a progressive budget that encouraged reforms, but the 1997 Asian financial crisis and political instabilitycreated economic stagnation.
  • Economic and technology-related sanctions have repeatedly not proved to be very effective in compelling nations to change their sovereign decisions made in enlightened self-interest. India faced severe sanctions after Pokhran-I (five nuclear tests on May 11 and 13, 1998 at the Pokhran range in Rajasthan Desert), and sanctions that were more comprehensive were imposed following Pokhran-II. There were dire predictions of the collapse of the economy, double-digit inflation etc.
  • After five years, most of the sanctions have been lifted and the Indian economy is continuing to grow at an acceptably satisfactory rate. The anticipated growth rate for 2003-04 is 6.0%. Though India's Gross National Income is only $477.4 billion by conventional calculations, it translates into $2,913 billion purchasing power parity (PPP), according to the latest world development indicators. In PPP terms, it is the world's fourth largest economy, behind only the US, China and Japan.

[edit]Impact of reforms

The HSBC Global Technology Center inPune develops software for the entire HSBCgroup.[21]

The impact of these reforms may be gauged from the fact that total foreign investment (includingforeign direct investmentportfolio investment, and investment raised on international capital markets) in India grew from a minuscule US$132 million in 1991–92 to $5.3 billion in 1995–96.[22]

Cities like GurgaonBangaloreHyderabadPuneChennai and Ahmedabad have risen in prominence and economic importance, become centres of rising industries and destination forforeign investment and firms.

Annual growth in GDP per capita has accelerated from just 1¼ per cent in the three decades after Independence to 7½ per cent currently, a rate of growth that will double average income in a decade. [...] In service sectors where government regulation has been eased significantly or is less burdensome—such ascommunicationsinsuranceasset management and information technology—output has grown rapidly, with exports of information technology enabled servicesparticularly strong. In those infrastructure sectors which have been opened to competition, such as telecoms and civil aviation, the private sector has proven to be extremely effective and growth has been phenomenal.

– OECD[9]

Election of AB Vajpayee as Prime Minister of India in 1998 and his agenda was a welcome change. His prescription to speed up economic progress included solution of all outstanding problems with the West (Cold War related) and then opening gates for FDI investment. In three years, the West was developing a bit of a fascination to India's brainpower, powered by IT and BPO. By 2004, the West would consider investment in India, should the conditions permit. By the end of Vajpayee's term as Prime Minister, a framework for the foreign investment had been established. The new incoming government of Professor Manmohan Singh in 2004 is further strengthening the required infrastructure to welcome the FDI.

Today, fascination with India is translating into active consideration of India as a destination for FDI. The A T Kearney study is putting India second most likely destination for FDI in 2005 behind China. It has displaced US to the third position. This is a great leap forward. India was at the 15th position, only a few years back. Thanks to the hard work of the politicians in control in Delhi for the last five years. To quote the A T Kearney Study "India's strong performance among manufacturing and telecom & utility firms was driven largely by their desire to make productivity-enhancing investments in IT, business process outsourcing, research and development, and knowledge management activities".

Still, India has not made into the grade where manufacturing investment will be targeted to it. That status belongs to China. But, progressively positive noises are being heard in the world financial circles to consider India at par with China. A few of the remaining antiquated labor laws in India need to be repealed and neglected infrastructure are upgraded to put an investor at ease. The irony is that all plans to redress the labor laws or upgrading of the infrastructure are shot down by left leaning politicians at the federal level. Only recently a proposal to use a part of India's huge foreign reserves to rebuild infrastructure was shot down by these politicians. To the contrary, they have nothing-worthwhile alternative to offer.

[edit]Ongoing economic challenges

OECD summarized the key reforms that are needed:

In labour markets, employment growth has been concentrated in firms that operate in sectors not covered by India's highly restrictive labour laws. In the formal sector, where these labour laws apply, employment has been falling and firms are becoming more capital intensive despite abundant low-cost labour. Labour market reform is essential to achieve a broader-based development and provide sufficient and higher productivity jobs for the growing labour force. In product markets, inefficient government procedures, particularly in some of the states, acts as a barrier to entrepreneurship and need to be improved. Public companies are generally less productive than private firms and the privatisation programme should be revitalised. A number of barriers to competition in financial markets and some of the infrastructure sectors, which are other constraints on growth, also need to be addressed. The indirect tax system needs to be simplified to create a true national market, while for direct taxes, the taxable base should be broadened and rates lowered. Public expenditure should be re-oriented towards infrastructure investment by reducing subsidies. Furthermore, social policies should be improved to better reach the poor and—given the importance of human capital—the education system also needs to be made more efficient.

– OECD[9]

[edit]Reforms at the state level

The Economic Survey of India 2007 by OECD concluded:

At the state level, economic performance is much better in states with a relatively liberal regulatory environment than in the relatively more restrictive states".[9]

The analysis of this report suggests that the differences in economic performance across states are associated with the extent to which states have introduced market-oriented reforms. Thus, further reforms on these lines, complemented with measures to improve infrastructureeducation and basic services, would increase the potential for growth outside of agriculture and thus boost better-paid employment, which is a key to sharing the fruits of growth and lowering poverty.[9]

[edit]See also

[edit]References

  1. ^ Timeline:India -BBC 1991
  2. ^ "That old Gandhi magic". The Economist. 27 November 1997.[dead link]
  3. ^ "India's surprising economic miracle"The Economist. 30 September 2010. Retrieved Sep 30th 2010.
  4. ^ Chakrabarti, Anjan; Cullenberg, Stephen (2003). Transition from socialism to capitalism in indiaISBN 9780415934855.
  5. ^ "India's great journey to market economy"Rediff.com. Retrieved 2010-03-29.
  6. ^ Nick Gillespie (2008). "What Slumdog Millionaire can teach Americans about economic stimulus". Reason.
  7. ^ https://www.cia.gov/library/publications/the-world-factbook/geos/in.html#Econ
  8. a b c "The India Report". Astaire Research.
  9. a b c d e f "Economic survey of India 2007: Policy Brief". OECD.
  10. ^ "India's economy: What's holding India back?". The Economist. 6 March 2008.
  11. ^ "The McKinsey Quarterly: India—From emerging to surging". The McKinsey Quarterly.
  12. ^ Kelegama, Saman and Parikh, Kirit (2000). Political Economy of Growth and Reforms in South Asia. Second Draft.
  13. ^ Sam Staley (2006). "The Rise and Fall of Indian Socialism: Why India embraced economic reform".
  14. ^ Street Hawking Promise Jobs in FutureThe Times of India, 2001-11-25
  15. a b c d "India: the economy". BBC. 12 February 1998.
  16. ^ "Redefining The Hindu Rate Of Growth". The Financial Express.
  17. ^ "Industry passing through phase of transition". The Tribune India.
  18. ^ Eugene M. Makar (2007). An American's Guide to Doing Business in India.
  19. ^ India's Pathway through Financial CrisisArunabha Ghosh. Global Economic Governance Programme. Retrieved on 2 March 2007.
  20. ^ J. Bradford DeLong (2001). "India Since Independence: An Analytic Growth Narrative".
  21. ^ "HSBC GLT frontpage". Retrieved 2008-08-22.
  22. ^ Local industrialists against multinationals. Ajay Singh and Arjuna Ranawana. Asiaweek. Retrieved on 2 March 2007.
  23. ^ "IMF calls for urgent reform in Indian labour laws".
  24. ^ Kaushik Basu, Gary S. Fields, and Shub Debgupta."Retrenchment, Labor Laws and Government Policy: An Analysis with Special Reference to India". The World Bank.
  25. ^ R. C. Datta / Milly Sil (2007). "Contemporary Issues on Labour Law Reform in India".
  26. ^ Aditya Gupta (2006). "How wrong has the Indian Left been about economic reforms?".
  27. ^ Basu, Kaushik (27 June 2005). "Why India needs labour law reform". BBC.
  28. ^ "A special report on India: An elephant, not a tiger". The Economist. 11 December 2008.
  29. ^ "India Country Overview 2008". The World Bank. 2008.
  30. ^ Gurcharan Das (July/August 2006). "The India Model". The Foreign Affairs.

[edit]External links


India – United States relations

From Wikipedia, the free encyclopedia
Indo-American relations
Map indicating location of India and USA

India

United States
President Barack Obama with Prime Minister Manmohan Singh at the White House.

Indo-American relations or India – United States relations refers to international relations between the Republic of India and the United States of America.

Despite being one of the pioneers and founding members of the Non-Aligned Movement, India developed a closer relationship with the Soviet Union during the Cold War. India's strategic and military relations with Moscow and strong socialist policies had an adverse impact on its relations with the United States. After the dissolution of the Soviet Union, India began to review its foreign policy in a non-polar world following which, it took steps to develop closer ties with the European Union and the United States. Today, India and the U.S. share an extensive cultural, strategic, military and economic relationship.[1][2]

During the tenure of the Clinton and Bush administration, relations between India and the United States blossomed primarily over common concerns regarding growingIslamic extremism, energy security and climate change.[3]

According to some foreign policy experts, there was a slight downturn in India-U.S. relations following the election of Barack Obama as the President of the United States in 2009. This was primarily due to Obama administration's desire to improve relations with China,[4] and Barack Obama's protectionist views on dealing with theeconomic crisis.[5] However, the leaders of the two countries have repeatedly dismissed these concerns.[6]

Contents

 [hide]

[edit]Country comparison

India India Flag of the United States.svg United States
Population 1,210,193,422 311,624,000
Area 3,287,240 km2 (1,269,210 sq mi) 9,850,476 km2 (3,803,290 sq mi)
Population Density 356/km² (922/sq mi) 31/km² (80/sq mi)
Capital New Delhi Washington, D.C.
Largest City Mumbai – 13,922,125 (21,347,412 Metro) New York City – 8,363,710 (19,006,798 Metro)
Government Federal parliamentary constitutional republic Federal presidential constitutional republic
Official languages Hindi and English, 21 other constitutionally recognized languages English (de facto)
Main religions 80.5% Hinduism, 13.4% Islam, 2.3% Christianity, 1.9%Sikhism, 0.8% Buddhism, 0.4% Jainism 76% Christianity, 16.1% non-Religious, 2 % Judaism,1%Buddhism. 0.4% Hinduism
Ethnic groups See Ethnic Groups of India 74% White American, 14.8% Hispanic and Latino Americans(of any race), 13.4% African American,
6.5% Some other race, 4.4% Asian American, 2.0% Two or more races,
0.68% American Indian or Alaska Native, 0.14% Native Hawaiian or Pacific Islander
GDP (nominal) $1.430 trillion ($1,176 per capita)[7] $14.256 trillion ($46,381 per capita)
GDP (PPP) $4.001 trillion ($3,290 per capita)[8] $14.256 trillion ($46,381 per capita)
Indian Americans 60,000 American born people living in India 2,765,815 People of Indian origin living in the USA
Military expenditures $37.6 billion (FY 2011-12) $663.7 billion (FY 2010) [9]

[edit]History

The historic relationship between India and the United States was very strong. One event is the visit of Swami Vivekananda who introduced Yoga and Vedanta to America. Vivekananda was the first known Hindu Sage to come to the West, where he introduced Eastern thought at the World's Parliament of Religions, in connection with the World's Fair in Chicago, in 1893]. Here, his first lecture, which started with this line "Sisters and Brothers of America," [9] made the audience clap for two minutes just to the address, for prior to this seminal speech, the audience was always used to this opening address: "Ladies and Gentlemen". It was this speech that catapulted him to fame by his wide audiences in Chicago and then later everywhere else in America, including far-flung places such as MemphisBostonSan FranciscoNew YorkLos Angeles, and St. Louis.

After Indian independence until the end of the cold war, the relationship between the two nations has often been thorny. Dwight Eisenhower was the first U.S. President to visit India in 1959. He was so supportive of India that the New York Times remarked "It did not seem to matter much whether Nehru had actually requested or been given a guarantee that the U.S. would help India to meet further Chinese communist aggression. What mattered was the obvious strengthening of Indian-American friendship to a point where no such guarantee was necessary."

During John F. Kennedy's period as President, he saw India as a strategic partner against the rise of communist China. He said "Chinese Communists have been moving ahead the last 10 years. India has been making some progress, but if India does not succeed with her 450 million people, if she can't make freedom work, then people around the world are going to determine, particularly in the underdeveloped world, that the only way they can develop their resources is through the Communist system." The administration was disturbed by what they considered "blatant Chinese communist aggression against India" after the Sino-Indian War. In a May 1963 National Security Council meeting, contingency planning on the part of the United States in the event of another Chinese attack on India was discussed. Defense Secretary Robert McNamara and General Maxwell Taylor advised the president to use nuclear weapons should the Americans intervene in such a situation. Kennedy insisted that Washington defend India as it would any ally, saying, "We should defend India, and therefore we will defend India".[10]

Kennedy's ambassador was the noted Canadian-American economist John Kenneth Galbraith. While in India, he also helped establish one of the first computer science departments, at the Indian Institute of Technology in Kanpur, Uttar Pradesh. As an economist he also presided over the largest (to that date) US-Foreign Aid program to any country.

From 1961 to 1963 there was a promise to help set up a large steel mill in Bokaro that was withdrawn by the U.S. The 1965 and 1971 Indo-Pakistani wars did not help their relations. During the Cold War, the U.S. asked for Pakistan's help because India was seen to lean towards the Soviet Union. Later, when India would not agree to support the anti-Soviet operation in Afghanistan, it was left with few allies. Not until 1997 was there any effort to improve relations with the United States.

Soon after Atal Bihari Vajpayee became Indian Prime Minister, he authorized a nuclear weapons test in Pokhran

The United States strongly condemned the test and promised sanctions, and voted in favor of aUnited Nations Security Council Resolution condemning it. United States President Bill Clintonimposed economic sanctions on India. These consisted of the cutting off of all military and economic aid, freezing loans by American banks to state-owned Indian companies and loans to the Indian government for all except food purchases, prohibiting American technology and uranium exports, and required the United States to oppose all loan requests by India to international lending agencies.[11] However, these sanctions proved ineffective. India was experiencing a strong economic rise, and its trade with the United States only constituted a small portion of its GDP. Only Japan joined the U.S. in imposing direct sanctions, while most other nations continued to trade with India. The sanctions were soon lifted. The Clinton administration and Vajpayee exchanged representatives to help build relations. In March 2000, President Bill Clinton visited India. He had bilateral and economic discussions with Prime Minister Vajpayee. Over the course of improved diplomatic relations with the Bush administration, India has agreed to allow close international monitoring of its nuclear weapons development while refusing to give up its current nuclear arsenal. India and the U.S. have also greatly enhanced their economic ties.

After the September 11 attacks in 2001, President George W. Bush collaborated with India to control and police the extremely crucial Indian Ocean sea-lanes from the Suez to Singapore. The December 2004 tsunami saw the U.S. and Indian navies cooperating in search and rescue operations and reconstruction of affected areas. An Open Skies Agreement was made in April 2005. This helped enhance trade, tourism, and business by the increased number of flights. Air India purchased 68 U.S. Boeing aircraft, which cost $8 billion.

Former U.S. Secretary of Defense Donald Rumsfeld and U.S. Secretary of State Condoleezza Rice have made recent visits to India as well. After Hurricane Katrina, India donated $5 million to the American Red Cross and sent two plane loads of relief supplies and materials to help. And on 1 March 2006, President Bush made another diplomatic visit to expand relations between India and the United States.

[edit]Military relations

President of the United States of AmericaRichard Nixon and Prime Minister of IndiaIndira Gandhi in 1971. They had a deep personal antipathy that colored bilateral relations.

The U.S.-India defense relationship derives from a common belief in freedom, democracy, and the rule of law, and seeks to advance shared security interests. These interests include maintaining security and stability, defeating terrorism and violent religious extremism, preventing the spread of weapons of mass destruction and associated materials, data, and technologies and protecting the free flow of commerce via land, air and sea lanes.

In recent years India has conducted joint military exercises with the U.S. in the Indian Ocean.

Recognizing India as a key to strategic U.S. interests, the United States has sought to strengthen its relationship with India. The two countries are the world's largest democracies, both committed to political freedom protected by representative government. India is also moving gradually toward greater economic freedom. The U.S. and India have a common interest in the free flow of commerce and resources, including through the vital sea lanes of the Indian Ocean. They also share an interest in fighting terrorism and in creating a strategically stable Asia.

There were some differences, however, including over India's nuclear weapons programs and the pace of India's economic reforms. In the past, these concerns may have dominated U.S. thinking about India, but today the U.S. views India as a growing world power with which it shares common strategic interests. A strong partnership between the two countries will continue to address differences and shape a dynamic and collaborative future.

In late September 2001, President Bush lifted sanctions imposed under the terms of the 1994 Nuclear Proliferation Prevention Act following India's nuclear tests in May 1998. The nonproliferation dialogue initiated after the 1998 nuclear tests has bridged many of the gaps in understanding between the countries. In a meeting between President Bush and Prime Minister Vajpayee in November 2001, the two leaders expressed a strong interest in transforming the U.S.-India bilateral relationship. High-level meetings and concrete cooperation between the two countries increased during 2002 and 2003. In January 2004, the U.S. and India launched the Next Steps in Strategic Partnership (NSSP), which was both a milestone in the transformation of the bilateral relationship and a blueprint for its further progress.

In July 2005, President Bush hosted Prime Minister Singh in Washington, DC. The two leaders announced the successful completion of the NSSP, as well as other agreements which further enhance cooperation in the areas of civil nuclear, civil space, and high-technology commerce. Other initiatives announced at this meeting include: an U.S.-India Economic Dialogue, Fight Against HIV/AIDS, Disaster Relief, Technology Cooperation, Democracy Initiative, an Agriculture Knowledge Initiative, a Trade Policy Forum, Energy Dialogue and CEO Forum. President Bush made a reciprocal visit to India in March 2006, during which the progress of these initiatives were reviewed, and new initiatives were launched.

In December 2006, Congress passed the historic Henry J. Hyde United States-India Peaceful Atomic Cooperation Act, which allows direct civilian nuclear commerce with India for the first time in 30 years. U.S. policy had opposed nuclear cooperation with India because the country had developed nuclear weapons in contravention of international conventions and never signed the Nuclear Non-Proliferation Treaty. The legislation clears the way for India to buy U.S. nuclear reactors and fuel for civilian use.

In July 2007, the United States and India reached a historic milestone in their strategic partnership by completing negotiations on the bilateral agreement for peaceful nuclear cooperation, also known as the "123 agreement." This agreement, signed by Secretary of State Rice and External Affairs Minister Mukherjee on October 10, 2008, governs civil nuclear trade between the two countries and opens the door for American and Indian firms to participate in each other's civil nuclear energy sector. The U.S. and India seek to elevate the strategic partnership further to include cooperation in counter-terrorism, defense cooperation, education, and joint democracy promotion.

[edit]Economic relations

The United States is also one of India's largest direct investors. From 1991 to 2004, the stock of FDI inflow has increased from USD $11.3 million to $344.4 million, totaling $4.13 billion. This is a compound rate increase of 57.5% annually. Indian direct investments abroad were started in 1992. Indian corporations and registered partnership firms are allowed to invest in businesses up to 100% of their net worth. India's largest outgoing investments are manufacturing, which account for 54.8% of the country's foreign investments. The second largest are non-financial services (software development), which accounts for 35.4% of investments.

[edit]Trade relations

U.S. President George W. Bush and Indian Prime Minister Manmohan Singh during a meeting with Indian and American business leaders in New Delhi.

The United States is one of India's largest trading partners. In 2007, the United States exported $17.24 billion worth goods to India and imported $24.02 billion worth of Indian goods.[12] Major items exported by India to the U.S. include Information Technology Services, textilesmachinery,ITeSgems and diamondschemicalsiron and steel products, coffeetea, and other edible food products. Major American items imported by India include aircraftfertilizerscomputer hardware,scrap metal and medical equipment.[13][14]

The United States is also India's largest investment partner, with American direct investment of $9 billion accounting for 9% of total foreign investment into India. Americans have made notable foreign investment in India's power generation, telecommunications, ports, roads, petroleum exploration/processing, and mining industries.[14]

In July 2005, U.S. President George W. Bush and Indian Prime Minister Dr. Manmohan Singhcreated a new program called the Trade Policy Forum. It is run by a representative from each nation. The United States Trade Representative is Rob Portman and the Indian Commerce Secretary is Minister of Commerce Kamal Nath. The goal of the program is to increase bilateral trade which is a two-way trade deal and the flow of investments.

There are five main sub-divisions of the Trade Policy Forum which include: Agricultural Trade group- This group has three main objectives: agreeing on terms that will allow India to export mangoes to the United States, permitting India's Agricultural and Process Food Products Export Development Authority (APEDA) to certify Indian products to the standards of the U.S. Department of Agriculture, and executing regulation procedures for approving edible wax on fruit.

Tariff and Non-Tariff Barriers group- Goals of the group include: agreeing that insecticides that are manufactures by United States companies can be sold throughout India. India had agreed to cut special regulations on trading carbonated drinks, many medicinal drugs, and lowering regulations on many imports that are not of agricultural nature. Both nations have agreed to discuss improved facets on the trade of Indianregulation requirements, jewelrycomputer partsmotorcyclesfertilizer, and those tariffs that affect the American process of exporting boric acid.

The two nations have discussed matters such as those who wish to break into the accounting market, Indian companies gaining licenses for the telecommunications industry, and setting policies by the interaction of companies from both countries regarding new policies related toIndian media and broadcasting. This group has strived to exchange valuable information on recognizing different professional services offered by the two countries, discussing the movement and positioning of people in developing industries and assigning jobs to those people, continuation of talks in how India's citizens can gain access into the market for financial servicing, and discussing the limitation of equities.

The two countries have had talks about the restriction of investments in industries such as financial services, insurance, and retail. Also, to take advantage of any initiatives in joint investments such as agricultural processing and the transportation industries. Both countries have decided to promote small business initiatives in both countries by allowing trade between them.

The majority of exports from the United States to India include: aviation equipment, engineering materials and machinery, instruments used in optical and medical sectors, fertilizers, and stones and metals.

Below are the percentages of traded items India to U.S. increased by 21.12% to $6.94 billion.

  1. Diamonds & precious stones (25%)
  2. Textiles (29.01%)
  3. Iron & Steel (5.81%)
  4. Machinery (4.6%)
  5. Organic chemicals (4.3%)
  6. Electrical Machinery (4.28%)

Major items of export from U.S. to India: For the year 2006, figures are available up to the month of April. Merchandise exports from U.S. to India increased by 20.09.26% to U.S. $2.95 billion. Select major items with their percentage shares are given below

  1. Engineering goods & machinery (including electrical) (31.2%)
  2. Aviation & aircraft ( 16.8%)
  3. Precious stones & metals (8.01%)
  4. Optical instruments & equipment (7.33%)
  5. Organic chemicals (4.98%)

[edit]Ties under Obama administration

President Barack Obama with Prime Minister Manmohan Singh during their bilateral meeting in the Oval Office.

Despite much gains in Indo-American relations during the tenure of the Bush administration, India was not one of the Asian countries U.S. Secretary of State Hillary Clinton visited in February 2009. The Foreign Policy magazine reported that even though Foreign Policy Staff of the previous administration had recommended India as a "key stop" during any such official tour of Asia, Hillary Clinton had struck New Delhi from her itinerary.[15][16] The exclusion of India from the Asian tour was regarded as a "mistake" by some analysts.[17] India was not even mentioned once in the Obama administration's official foreign policy agenda.[18] Former U.S. ambassador Robert D. Blackwill warned that Indo-U.S. relations faced a "downgrade" in the short term, as the Obama administration places China "on a substantially higher plane in U.S. diplomacy than India". However, he remained optimistic about the long-term prospect for Indo-U.S. relationship.[19][20] TheForbes magazine alerted U.S. President Barack Obama on the need to prevent United States' new-found alliance with India from erosion.[21] Following this, President Obama visited India in November 2010.[22]

The initial approach of the Obama administration towards ties with India raised concerns of a downturn in Indo-American relations.[23] In an editorial, the National Interest suggested that the Obama administration could possibly damage "the foundations underlying the geostrategic partnership" between India and the United States.[24] Another editorial published by the Taipei Times highlighted the importance of India-U.S. relations and urged Barack Obama to give "India the attention it deserves".[25] Terming India to be United States' "indispensable ally", theChristian Science Monitor argued that the Obama administration needs India's cooperation on several issues, including climate change, Afghanistan war and energy security and therefore, Obama cannot risk putting ties with India on "back-burner".[26]

In an attempt to bolster relations between the two countries, U.S. Secretary of State Hillary Clinton visited India in the second half of July 2009.[27] Calling India a "key partner" of the United States, Clinton said that the United States wants India "to succeed as an anchor for regional and global security". She also mentioned four platforms for building future U.S.-India relationship — "global security, human development, economic activity, science and technology".[23]

[edit]Foreign policy issues

According to some analysts, India-U.S. relations have strained over Obama administration's approach in handling the Taliban insurgency in Afghanistan and Pakistan.[28][29] India's National Security AdviserM.K. Narayanan, criticized the Obama administration for linking theKashmir dispute to the instability in Pakistan and Afghanistan and said that by doing so, President Obama was "barking up the wrong tree".[30] The Foreign Policy too criticized Obama's approach towards South Asia saying that "India can be a part of the solution rather than part of the problem" in South Asia and suggested India to take a more proactive role in rebuilding Afghanistan irrespective of the attitude of the Obama administration.[31] In a clear indication of growing rift between India and the U.S., the former decided not to accept a U.S. invitation to attend a conference on Afghanistan.[32] Bloomberg reported that since 2008 Mumbai attacks, the public mood in India has been to pressure Pakistan more aggressively to take actions against the culprits behind the terrorist attack and this might reflect on the upcominggeneral elections in May 2009. Consequently, the Obama administration may find itself at odds with India's rigid stance against terrorism.[33]

Robert Blake, assistant secretary of United States' Bureau of South and Central Asian Affairs, dismissed any concerns over a rift with India regarding United States' AfPak policy. Calling India and the United States "natural allies",[6] Blake said that the United States cannot afford to meet the strategic priorities in Pakistan and Afghanistan at "the expense of India".[34]

[edit]Economic relations

President George W. Bush shakes hands with India's Prime Minister Manmohan Singh during his visit to India in 2006, at Hyderabad House, New Delhi.

India strongly criticized Obama administration's decision to limit H-1B visas and India's External Affairs Minister, Pranab Mukherjee, said that his country would argue against U.S. "protectionism" at various international forums.[35] The Vishwa Hindu Parishad, a close aide of India's main opposition party the Bharatiya Janata Party (BJP), said that if the United States continues with its anti-outsourcing policies, then India will "have to take steps to hurt American companies in India."[36] India's Commerce Minister, Kamal Nath, said that India may move against Obama's outsourcing policies at the World Trade Organization.[37] However, the outsourcing advisory head of KPMG said that India had no reason to worry since Obama's statements were directed against "outsourcing being carried out by manufacturing companies" and not outsourcing of IT-related services.[38]

In May 2009, U.S. President Barack Obama reiterated his anti-outsourcing views and criticized the current U.S. tax policy "that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York."[39] However, during the U.S.-India Business Council meet in June 2009, U.S. Secretary of State Hillary Clinton advocated for stronger economic ties between India and the United States. She also rebuked protectionist policies saying that "[United States] will not use the global financial crisis as an excuse to fall back on protectionism. We hope India will work with us to create a more open, equitable set of opportunities for trade between our nations."[40]

In June 2009, United States provided diplomatic help in successfully pushing through a US$2.9 billion loan sponsored by the Asian Development Bank, despite considerable opposition from the People's Republic of China.[41]

[edit]Strategic and military relations

U.S. Army and Indian Army soldiers during opening ceremony of Yudh Abhyas 2010 in Alaska.
""As part of that strategy, we [India and U.S.] should expand our broader security relationship and increase cooperation on counterterrorism and intelligence sharing." "

Hillary ClintonUnited States Secretary of State[40]

In March 2009, the Obama administration cleared the US$2.1 billion sale of eight P-8 Poseidons to India.[42] This deal, and the US$5 billion agreement to provide Boeing C-17 military transport aircraft and General Electric F404engines announced during Obama's November 2010 visit, makes the U.S. one of the top three military suppliers for India, following Israel and Russia.[43]

India expressed its concerns that Obama administration's non-military aid to Pakistan will not be used for counter-insurgency, but for building up its military against India.[44] However, Robert Blake, assistant secretary of Bureau of South and Central Asian Affairs, said that the Pakistani Government was increasingly focused at fighting the Taliban insurgency and expressed hope that the people of India would "support and agree with what we are trying to do".[34]

Concerns were raised in India that the Obama administration was delaying the full implementation of the Indo-U.S. Nuclear Deal.[45] The Obama administration has also strongly advocated for the strengthening of the Comprehensive Test Ban Treaty and has pressurized India to sign the agreement. India's special envoy, Shyam Saran, "warned" the United States that India would continue to oppose any such treaty as it was "discriminatory".[46] In June 2009, U.S. Secretary of State Hillary Clinton said that the Obama administration was "fully committed" to the Indo-U.S. civil nuclear agreement.[47]

U.S. Chairman of the Joint Chiefs of Staff Mike Mullen encouraged stronger military ties between India and the United States and said that "India has emerged as an increasingly important strategic partner [of the U.S.]".[48] U.S. Undersecretary of State William Joseph Burns said, "Never has there been a moment when India and America mattered more to each other." [49]

[edit]2010 visit by President Obama

In November 2010 Obama became the second U.S. President after Richard Nixon (in 1969) to undertake a visit to India in his first term in office. On November 8 Obama became the 2nd U.S. President ever to address a joint session of the Parliament of India. In a major policy shift Obama declared U.S. support for India's permanent membership of United Nations Security Council.[50] Calling India-U.S. relationship a defining partnership of 21st century he also announced removal of export control restrictions on several Indian companies and concluded trade deals worth $10 billion which are expected to create/support 50,000 jobs in the U.S. during this visit.[51]

[edit]See also

[edit]Notes

  1. ^ India-U.S. Economic and Trade Relations
  2. ^ The Evolving India-U.S. Strategic Relationship
  3. ^ [1]
  4. ^ India frets over Obama's Chinamania
  5. ^ India renews criticism of "Buy American" drift
  6. a b Reflections on U.S. - India Relations - Robert O. Blake
  7. ^ http://en.wikipedia.org/wiki/Economy_of_india
  8. ^ http://en.wikipedia.org/wiki/Economy_of_india
  9. ^http://www.gpoaccess.gov/usbudget/fy10/pdf/budget/defense.pdf
  10. ^ [2] — Taipei Times,[3] Indian American Center for Political Awareness
  11. ^ http://www.business-standard.com/india/news/clinton-imposes-full-sanctionsindia/22222/
  12. ^ Foreign Trade Census
  13. ^ India - U.S. Trade and Economic Relations
  14. a b India (10/07)
  15. ^ [4]
  16. ^ A U.S. Asia strategy for Hillary Clinton's trip
  17. ^ Mrs. Clinton Goes To China
  18. ^ THE AGENDA • FOREIGN POLICY
  19. ^ [5]
  20. ^ [6]
  21. ^ Obama Should Visit India--Soon
  22. ^ "Obama to arrive in India on Diwali night"The Times of India. 6 October 2010. Retrieved 6 October 2010.
  23. a b Clinton to visit India
  24. ^ Ignoring India
  25. ^ The U.S. and India can't put off a strategic partnership any longer
  26. ^ India: America's indispensable ally
  27. ^ Clinton plans to visit India in second half of July
  28. ^ [7]
  29. ^ [8]
  30. ^ Obama should not link Kashmir with Pak's problems: NSA
  31. ^ India needs a lot more love from Obama
  32. ^ India not to attend conference on Afghanistan with Pakistan, U.S.
  33. ^ India's Terror Stance Vexes Obama Amid Voter Ire at Pakistan
  34. a b New Strategic Partnerships Robert O. Blake
  35. ^ India says it will oppose U.S. 'protectionism'
  36. ^ Anger Grows in India over U.S. Visa Rules
  37. ^ India may contest Obama's move against outsourcing in WTO
  38. ^ 'Obama on outsourcing is no reason to panic'
  39. ^ U.S.-India Relations Strained under Obama
  40. a b Remarks at U.S.-India Business Council's 34th Anniversary "Synergies Summit"
  41. ^ The China-India Border Brawl
  42. ^ U.S. OKs record $2.1 billion arms sale to India
  43. ^ Cohen, Stephen and Sanil Dasgupta. "Arms Sales for India". Brookings Institution. Retrieved 18 March 2011.
  44. ^ Indian Vote May Revive Stalled U.S. Defense, Nuclear Exports
  45. ^ Indo-U.S. nuclear deal in jeopardy
  46. ^ India warns Obama on nuclear test ban treaty
  47. ^ Hillary: fully committed to nuclear deal
  48. ^ India has emerged as a strategic partner for U.S.: Mullen
  49. ^ http://gsn.nti.org/gsn/nw_20100602_6708.php
  50. ^ Stolberg, Sheryl (8 November 2010). [http://www.tribuneindia.com/2010/20100131/spectrum/main1.htmRichard Nixon visited India in 1969 after becoming the presidenthttp://www.nytimes.com/2010/11/09/world/asia/09prexy.html"Obama Backs India for Seat on Security Council"]. The New York Times. Retrieved 8 November 2010.[dead link]
  51. ^ Reynolds, Paul (8 November 2010). "Obama confirms U.S. strategic shift towards India"BBC. Retrieved 8 November 2010.

India US TradeIndia US Trade in 2015US Trade with BRIC:China holds the key Economic profile of India and the United States iyty

[edit]Sources

  • Blake, Jr., Robert O. "U.S.-India Relations: the Making of a Comprehensive Relationship." U.S. Embassy India. Army War College, Indore, India. 23 August 2004, 6 October 2006 <www.state.gov>.
  • "India - U.S. Economics Relations." Embassy of India - Washington DC. 8 October 2006
  • Kronstadt, K. A. India-U.S. Relations. Library of Congress. 2006. 17–19. 8 October 2006.
  • Roy, Dr. P. C. Indo-U.S. Economic Relations. Rajouri Garden, New Delhi: Deep & Deep Publications, 1986. 73–125.

[edit]External links

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U.S.-India Civil Nuclear Agreement

From Wikipedia, the free encyclopedia
U.S. President George W. Bush and India's Prime MinisterManmohan Singh exchange handshakes in New Delhi on March 2, 2006.

The 123 Agreement signed between the United States of America and the Republic of India is known as the U.S.-India Civil Nuclear Cooperation or Indo-US nuclear deal.[1] The framework for this agreement was a July 18, 2005 joint statement byIndian Prime Minister Manmohan Singh and then U.S. President George W. Bush, under which India agreed to separate its civil and military nuclear facilities and to place all its civil nuclear facilities under International Atomic Energy Agency (IAEA) safeguards and, in exchange, the United States agreed to work toward full civil nuclear cooperation with India.[2] This U.S.-India deal took more than three years to come to fruition as it had to go through several complex stages, including amendment of U.S. domestic law, specially the Atomic Energy Act of 1954,[3] a civil-military nuclear Separation Plan in India, an India-IAEA safeguards (inspections) agreement and the grant of an exemption for India by the Nuclear Suppliers Group, an export-control cartel that had been formed mainly in response to India's first nuclear test in 1974. In its final shape, the deal places under permanent safeguards those nuclear facilities that India has identified as "civil" and permits broad civil nuclear cooperation, while excluding the transfer of "sensitive" equipment and technologies, including civil enrichment and reprocessing items even under IAEA safeguards. On August 18, 2008 the IAEA Board of Governors approved,[4] and on February 2, 2009, India signed an India-specific safeguards agreement with the IAEA.[5] Once India brings this agreement into force, inspections began in a phased manner on the 35 civilian nuclear installations India has identified in its Separation Plan.[6]

The deal is seen as a watershed in U.S.-India relations and introduces a new aspect to international nonproliferation efforts.[7] On August 1, 2008, the IAEA approved the safeguards agreement with India,[8] after which the United States approached the Nuclear Suppliers Group(NSG) to grant a waiver to India to commence civilian nuclear trade.[9] The 45-nation NSG granted the waiver to India on September 6, 2008 allowing it to access civilian nuclear technology and fuel from other countries.[10] The implementation of this waiver made India the only known country with nuclear weapons which is not a party to the Non Proliferation Treaty (NPT) but is still allowed to carry out nuclear commerce with the rest of the world.[11]

The US House of Representatives passed the bill on 28 September 2008.[12] Two days later, India and France inked a similar nuclear pact making France the first country to have such an agreement with India.[13] On October 1, 2008 the US Senate also approved the civilian nuclear agreement allowing India to purchase nuclear fuel and technology from the United States.[14][15] U.S. President, George W. Bush, signed the legislation on the Indo-US nuclear deal, approved by the U.S. Congress, into law, now called the United States-India Nuclear Cooperation Approval and Non-proliferation Enhancement Act, on October 8, 2008.[16] The agreement was signed by then Indian External Affairs Minister Pranab Mukherjee and his counterpart then Secretary of State Condoleezza Rice, on 10 October.[17][18]

Contents

 [hide]

[edit]Overview

The Henry J. Hyde United States-India Peaceful Atomic Energy Cooperation Act of 2006, also known as the Hyde Act, is the U.S. domestic law that modifies the requirements of Section 123 of the U.S. Atomic Energy Act to permit nuclear cooperation with India[19] and in particular to negotiate a 123 Agreement to operationalize the 2005 Joint Statement. As a domestic U.S. law, the Hyde Act is binding on the United States. The Hyde Act cannot be binding on India's sovereign decisions although it can be construed as prescriptive for future U.S. reactions. As per the Vienna convention, an international treaty such as the 123 agreement cannot be superseded by an internal law such as the Hyde Act.[20][21][22]

The 123 agreement defines the terms and conditions for bilateral civilian nuclear cooperation, and requires separate approvals by the U.S. Congress and by Indian cabinet ministers. According to the Nuclear Power Corporation of India, the agreement will help India meet its goal of adding 25,000 MW of nuclear power capacity through imports of nuclear reactors and fuel by 2020.[23]

After the terms of the 123 agreement were concluded on July 27, 2007,[24] it ran into trouble because of stiff opposition in India from thecommunist allies of the ruling United Progressive Alliance.[25] The government survived a confidence vote in the parliament on July 22, 2008 by 275–256 votes in the backdrop of defections by some parties .[26] The deal also had faced opposition from non-proliferation activists, anti-nuclear organisations, and some states within the Nuclear Suppliers Group.[27][28] . In February 2008 then U.S. Secretary of StateCondoleezza Rice said that any agreement would be "consistent with the obligations of the Hyde Act".[29] The bill was signed on October 8, 2008.

[edit]Background

Parties to the Non Proliferation Treaty (NPT) have a recognized right of access to peaceful uses of nuclear energy and an obligation to cooperate on civilian nuclear technology. Separately, the Nuclear Suppliers Group has agreed on guidelines for nuclear exports, including reactors and fuel. Those guidelines condition such exports on comprehensive safeguards by the International Atomic Energy Agency, which are designed to verify that nuclear energy is not diverted from peaceful use to weapons programs. Though neither IndiaIsrael, nor Pakistanhave signed the NPT, India argues that instead of addressing the central objective of universal and comprehensive non-proliferation, the treaty creates a club of "nuclear haves" and a larger group of "nuclear have-nots" by restricting the legal possession of nuclear weapons to those states that tested them before 1967, who alone are free to possess and multiply their nuclear stockpiles.[30] India insists on a comprehensive action plan for a nuclear-free world within a specific time-frame and has also adopted a voluntary "no first use policy".

Led by the U.S., other states have set up an informal group, the Nuclear Suppliers Group (NSG), to control exports of nuclear materials, equipment and technology.[31] Consequently, India was left outside the international nuclear order, which forced India to develop its own resources for each stage of the nuclear fuel cycle and power generation, including next generation reactors such as fast breeder reactors and a thorium breeder reactor[32][33] known as the Advanced Heavy Water Reactor. In addition to impelling India to achieve success in developing these new reactor technologies, the sanctions also provided India with the impetus to continue developing its own nuclear weapons technology with a specific goal of achieving self-sufficiency for all key components for weapons design, testing and production.

Given that India is estimated to possess reserves of about 80,000-112,369 tons of uranium,[34] India has more than enough fissile material to supply its nuclear weapons program, even if it restricted Plutonium production to only 8 of the country's 17 current reactors, and then further restricted Plutonium production to only 1/4 of the fuel core of these reactors.[35] According to the calculations of one of the key advisers to the US Nuclear deal negotiating team, Ashley Tellis:[35]

Operating India's eight unsafeguarded PHWRs in such a [conservative] regime would bequeath New Delhi with some 12,135–13,370 kilograms of weapons-grade plutonium, which is sufficient to produce between 2,023–2,228 nuclear weapons over and above those already existing in the Indian arsenal. Although no Indian analyst, let alone a policy maker, has ever advocated any nuclear inventory that even remotely approximates such numbers, this heuristic exercise confirms that New Delhi has the capability to produce a gigantic nuclear arsenal while subsisting well within the lowest estimates of its known uranium reserves.

However, because the amount of nuclear fuel required for the electricity generation sector is far greater than that required to maintain a nuclear weapons program, and since India's estimated reserve of uranium represents only 1% of the world's known uranium reserves, the NSG's uranium export restrictions mainly affected Indian nuclear power generation capacity. Specifically, the NSG sanctions challenge India's long term plans to expand and fuel its civilian nuclear power generation capacity from its current output of about 4GWe (GigaWatt electricity) to a power output of 20GWe by 2020; assuming the planned expansion used conventional Uranium/Plutonium fueled heavy waterand light water nuclear power plants.

Consequently, India's nuclear isolation constrained expansion of its civil nuclear program, but left India relatively immune to foreign reactions to a prospective nuclear test. Partly for this reason, but mainly due to continued unchecked covert nuclear and missile proliferation activities between Pakistan, China [36][37] and North Korea,[38][39] India conducted five more nuclear tests in May, 1998 at Pokhran.

India was subject to international sanctions after its May 1998 nuclear tests. However, due to the size of the Indian economy and its relatively large domestic sector, these sanctions had little impact on India, with Indian GDP growth increasing from 4.8% in 1997–1998 (prior to sanctions) to 6.6% (during sanctions) in 1998–1999.[40] Consequently, at the end of 2001, the Bush Administration decided to drop all sanctions on India.[41] Although India achieved its strategic objectives from the Pokhran nuclear tests in 1998,[42] it continued to find its civil nuclear program isolated internationally.

[edit]Rationale behind the agreement

[edit]Nuclear non-proliferation

The proposed civil nuclear agreement implicitly recognizes India's "de facto" status even without signing the NPT. The Bush administrationjustifies a nuclear pact with India because it is important in helping to advance the non-proliferation framework [43] by formally recognizing India's strong non-proliferation record even though it has not signed the NPT. The former Under Secretary of State of Political Affairs, Nicholas Burns, one of the architects of the Indo-U.S. nuclear deal said "India's trust, its credibility, the fact that it has promised to create a state-of-the-art facility, monitored by the IAEA, to begin a new export control regime in place, because it has not proliferated the nuclear technology, we can't say that about Pakistan." when asked whether the U.S. would offer a nuclear deal with Pakistan on the lines of the Indo-U.S. deal.[44][45][46] Mohammed ElBaradei, former head of the International Atomic Energy Agency, which would be in charge of inspecting India's civilian reactors has praised the deal as "it would also bring India closer as an important partner in the nonproliferation regime".[47] The reaction in the Western academic community was mixed. While some authors praised the agreement as bringing India closer to the NPT regime, others argued that it gave India too much leeway in determining which facilities were to be safeguarded and that it effectively rewarded India for continuously defying the Non-Proliferation Treaty by not acceding to it.[48]

[edit]Economic considerations

Financially, the U.S. also expects that such a deal could spur India's economic growth and bring in $150 billion in the next decade for nuclear power plants, of which the U.S. wants a share.[49] It is India's stated objective to increase the production of nuclear power generation from its present capacity of 4,000 MWe to 20,000 MWe in the next decade. However, the developmental economic advising firm Dalberg, which advises the IMF and the World Bank, moreover, has done its own analysis of the economic value of investing in nuclear power development in India. Their conclusion is that for the next 20 years such investments are likely to be far less valuable economically or environmentally than a variety of other measures to increase electricity production in India.[citation needed] They have noted that U.S. nuclear vendors cannot sell any reactors to India unless and until India caps third party liabilities or establishes a credible liability pool to protect U.S. firms from being sued in the case of an accident or a terrorist act of sabotage against nuclear plants. Although India's parliament passed The Civil Liability for Nuclear Damages bill on August 25, 2010,[50][51] the legislation does not meet international standards for nuclear liability as set forth in theConvention on Supplementary Compensation for Nuclear Damage, because it allows the operator to sue the supplier in case of an accident due to technical defects in the plant.[52] After the Fukushima Daiichi Nuclear Power Plant in Japan, issues relating to the safety of operating nuclear power plants, compensation in the event of a radiation-leak accident, disaster clean-up costs, operator responsibility and supplier liability has once again come into the spot-light.

[edit]Strategic

Since the end of the Cold WarThe Pentagon, along with certain U.S. ambassadors such as Robert Blackwill, has requested increased strategic ties with India and a de-hyphenization of Pakistan with India, i.e. having separate policies toward India and Pakistan rather than just an "India-Pakistan" policy. The United States also sees India as a viable counter-weight to the growing influence of China,[citation needed] and a potential client and job creator.[53]

While India is self-sufficient in thorium, possessing 25% of the world's known and economically viable thorium,[54] it possesses a meager 1% of the similarly calculated global uranium reserves.[55] Indian support for cooperation with the U.S. centers on the issue of obtaining a steady supply of sufficient energy for the economy to grow. Indian opposition to the pact centers on the concessions that would need to be made, as well as the likely de-prioritization of research into a thorium fuel cycle if uranium becomes highly available given the well understood utilization of uranium in a nuclear fuel cycle.

[edit]Passing of Agreement

On March 2, 2006 in New Delhi, George W. Bush and Manmohan Singh signed a Civil Nuclear Cooperation Agreement, following an initiation during the July 2005 summit in Washington between the two leaders over civilian nuclear cooperation.[56]

Heavily endorsed by the White House, the agreement is thought to be a major victory to George W. Bush's foreign policy initiative and was described by many lawmakers as a cornerstone of the new strategic partnership between the two countries.[57] The agreement is widely considered to help India fulfill its soaring energy demands and boost U.S. and India into a strategic partnership. The Pentagon speculates this will help ease global demand for crude oil and natural gas.

On August 3, 2007, both the countries released the full text of the 123 agreement.[58] Nicholas Burns, the chief negotiator of the India-United States nuclear deal, said the U.S. has the right to terminate the deal if India tests a nuclear weapon and that no part of the agreement recognizes India as a nuclear weapons state.[59]

[edit]Hyde Act Passage in the U.S.

On December 18, 2006 President George W. Bush signed the Hyde Act into law. The Act was passed by an overwhelming 359–68 in theUnited States House of Representatives on July 26 and by 85–12 in the United States Senate on November 16 in a strong show of bipartisan support.[60][61][62]

The House version (H.R. 5682) and Senate version (S. 3709) of the bill differed due to amendments each had added before approving, but the versions were reconciled with a House vote of 330–59 on December 8 and a Senate voice-vote on December 9 before being passed on to President G.W. Bush for final approval.[63][64] The White House had urged Congress to expedite the reconciliation process during the end-2006 lame duck session, and recommended removing certain amendments which would be deemed deal-killers by India.[65] Nonetheless, while softened, several clauses restricting India's strategic nuclear program and conditions on having India align with U.S. views over Iran were incorporated in the Hyde Act.

In response to the language Congress used in the Act to define U.S. policy toward India, President Bush, stated "Given the Constitution's commitment to the authority of the presidency to conduct the nation's foreign affairs, the executive branch shall construe such policy statements as advisory," going on to cite sections 103 and 104 (d) (2) of the bill. To assure Congress that its work would not be totally discarded, Bush continued by saying that the executive would give "the due weight that comity between the legislative and executive branches should require, to the extent consistent with U.S. foreign policy."[66]

[edit]Political opposition in India

The Indo-US civilian nuclear agreement was met with stiff opposition by some political parties and activists in India. Although many mainstream political parties including the Congress(I) supported the deal along with regional parties like Dravida Munnetra Kazhagam andRashtriya Janata Dal its realization ran into difficulties in the face of stiff political opposition in India. Also, in November 2007, former Indian Military chiefs, bureaucrats and scientists drafted a letter to Members of Parliament expressing their support for the deal.[67] However, opposition and criticism continued at political levels. The Samajwadi Party (SP) which was with the Left Front in opposing the deal changed its stand after discussing with ex-president of India and scientist Dr A P J Abdul Kalam. The SP then supported the government and the deal. The Indian Government survived a vote of confidence by 275-256 after the Left Front withdrew their support to the government over this dispute.[68] Incidentally, results showed ten MP's belonging to the opposing BJP party cross-voting in the favor of the government.

As details were revealed about serious inconsistencies between what the Indian parliament was told about the deal, and the actual facts about the agreement that were presented by the Bush administration to the US Congress, opposition grew in India against the deal. In particular, portions of the agreement dealing with guaranteeing India a fuel supply or allowing India to maintain a strategic reserve of nuclear fuel appear to be diametrically opposed to what the Indian parliament was led to expect from the agreement:

Prime Minister Manmohan Singh's statement in parliament is totally at variance with the Bush Administration's communication to the House Foreign Affairs Committee, which says India will not be allowed to stockpile such nuclear fuel stocks as to undercut American leverage to re-impose sanctions. To drive home this point, it says the 123 Agreement is not inconsistent with the Hyde Act's stipulation—the little-known 'Barack Obama Amendment' -- that the supply of nuclear fuel should be "commensurate with reasonable operating requirements". The 'strategic reserve' that is crucial to India's nuclear program is, therefore, a non-starter.[69] Furthermore, the agreement, as a result of its compliance with the Hyde Act, contained a direct linkage between shutting down US nuclear trade with India and any potential future Indian nuclear weapons test, a point that was factually inconsistent with explicit reassurances made on this subject by Prime Minister, Manmohan Singh, during final parliamentary debate on the nuclear deal. As professor Brahma Chellaney, an expert in strategic affairs and one of the authors of the Indian Nuclear Doctrine [70], explained:

While the Hyde Act's bar on Indian testing is explicit, the one in the NSG waiver is implicit, yet unmistakable. The NSG waiver is overtly anchored in NSG Guidelines Paragraph 16, which deals with the consequence of "an explosion of a nuclear device". The waiver's Section 3(e) refers to this key paragraph, which allows a supplier to call for a special NSG meeting, and seek termination of cooperation, in the event of a test or any other "violation of a supplier-recipient understanding". The recently leaked Bush administration letter to Congress has cited how this Paragraph 16 rule will effectively bind India to the Hyde Act's conditions on the pain of a U.S.-sponsored cut-off of all multilateral cooperation. India will not be able to escape from the U.S.-set conditions by turning to other suppliers.[71]

[edit]Indian parliament vote

On July 9, 2008, India formally submitted the safeguards agreement to the IAEA.[72] This development came after the Prime Minister of IndiaManmohan Singh returned from the 34th G8 summit meeting in Hokkaido, Japan, where he met with U.S. President George W. Bush.[73] On June 19, 2008, news media reported that Indian Prime Minister Dr. Manmohan Singh threatened to resign his position if the Left Front, whose support was crucial for the ruling United Progressive Alliance to prove its majority in the Indian parliament, continued to oppose the nuclear deal and he described their stance as irrational and reactionary.[74] According to the Hindu, External Affairs Minister Pranab Mukherjee's earlier statement said "I cannot bind the government if we lose our majority," [75] implying that United Progressive Alliance government would not put its signature on any deal with IAEA if it lost the majority in either a 'opposition-initiated no-confidence motion' or if failing to muster a vote of confidence in Indian parliament after being told to prove its majority by the president. On July 8, 2008, Prakash Karat announced that the Left Front is withdrawing its support to the government over the decision by the government to go ahead on the United States-India Peaceful Atomic Energy Cooperation Act. The left front had been a staunch advocate of not proceeding with this deal citing national interests.[76]

On 22 July 2008 the UPA faced its first confidence vote in the Lok Sabha after the Communist Party of India (Marxist) led Left Front withdrew support over India approaching the IAEA for Indo-U.S. nuclear deal. The UPA won the confidence vote with 275 votes to the opposition's 256, (10 members abstained from the vote) to record a 19-vote victory.[77][78][79][80]

[edit]IAEA approval

The IAEA Board of Governors approved the safeguards agreement on August 1, 2008, and the 45-state Nuclear Suppliers Group next had to approve a policy allowing nuclear cooperation with India. U.S. President Bush can then make the necessary certifications and seek final approval by the U.S. Congress.[81] There were objections from PakistanIranIrelandNorwaySwitzerland and Austria at the IAEA meeting.[82]

[edit]NSG waiver

On September 6, 2008 India was granted the waiver at the NSG meeting held in ViennaAustria. The consensus was arrived at after overcoming misgivings expressed by Austria, Ireland and New Zealand and is an unprecedented step in giving exemption to a country which has not signed the NPT and the Comprehensive Test Ban Treaty (CTBT)[83][84] The Indian team who worked on the deal includes Manmohan SinghPranab MukherjeeShiv Shankar MenonShyam SaranMK NarayananAnil KakodkarRavi Grover, and DB Venkatesh Varma.[83]

[edit]Versions of U.S. draft exemption

On August 2008 U.S. draft exemption would have granted India a waiver based on the "steps that India has taken voluntarily as a contributing partner in the non-proliferation regime".[85] Based on these steps, and without further conditions, the draft waiver would have allowed for the transfer to India of both trigger list and dual-use items (including technology), waiving the full-scope safeguards requirements of the NSG guidelines.[86]

A September 2008 waiver would have recognized additional "steps that India has voluntarily taken."[87] The waiver called for notifying the NSG of bilateral agreements and for regular consultations; however, it also would have waived the full-scope safeguards requirements of the NSG guidelines without further conditions.[86]

The U.S. draft underwent further changes in an effort to make the language more acceptable to the NSG.[88]

[edit]Initial support and opposition

The deal had initial support from the United States, the United Kingdom,[89] France,[90] Japan,[91] Russia,[92] and Germany.[93][94] After some initial opposition, there were reports of Australia,[95] Switzerland,[96] and Canada[97][98] expressing their support for the deal. Selig S. Harrison, a former South Asia bureau chief of The Washington Post, has said the deal may represent a tacit recognition of India as a nuclear weapon state,[99] while former U.S. Undersecretary of State for Arms Control and International Security Robert Joseph says the "U.S. State Department made it very clear that we will not recognize India as a nuclear-weapon state".[100]

NorwayAustriaBrazil, and Japan all warned that their support for India at the IAEA did not mean that they would not express reservations at the NSG. New Zealand, which is a member of the NSG but not of the IAEA Board of Governors, cautioned that its support should not be taken for granted.[28] Ireland, which launched the non-proliferation treaty process in 1958 and signed it first in 1968, doubted India's nuclear trade agreement with the U.S.[101] Russia, a potentially large nuclear supplier to India, expressed reservations about transferring enrichment and reprocessing technology to India.[102] China argued the agreement constituted "a major blow to the international non-proliferation regime".[103] New Zealand said it would like to see a few conditions written in to the waiver: the exemption ceasing if India conducts nuclear tests, India signing the International Atomic Energy Agency's (IAEA) additional protocol, and placing limits on the scope of the technology that can be given to India and which could relate to nuclear weapons.[104] Austria, Irelandthe NetherlandsSwitzerland and Scandinaviancountries proposed similar amendments.[105] The nuclear deal was opposed by former U.S. president Jimmy Carter, who opined that the U.S. would be making "a dangerous deal with India"[106]

After the first NSG meeting in August 2008, diplomats noted that up to 20 of the 45 NSG states tabled conditions similar to the Hyde Act for India's waiver to do business with the NSG.[107] "There were proposals on practically every paragraph," a European diplomat said.[107] A group of seven NSG members suggested including some of the provisions of the U.S. Hyde Act in the final waiver.[108] Daryll Kimball, executive director of the Washington-based Arms Control Association, said the NSG should at a minimum "make clear that nuclear trade with India shall be terminated if it resumes testing for any reason. If India cannot agree to such terms, it suggests that India is not serious about its nuclear test moratorium pledge."[109]

[edit]Reactions following the waiver

After India was granted the waiver on September 6, the United Kingdom said that the NSG's decision would make a "significant contribution" to global energy and climate security.[110] U.S. National Security Council spokesman Gordon Johndroe said, "this is a historic achievement that strengthens global non-proliferation principles while assisting India to meet its energy requirements in an environmentally friendly manner. The United States thanks the participating governments in the NSG for their outstanding efforts and cooperation to welcome India into the global non-proliferation community. We especially appreciate the role Germany played as chair to move this process forward."[111] New Zealand praised the NSG consensus and said that it got the best possible deal with India.[112] One of India's strongest allies Russia said in a statement, "We are convinced that the exemption made for India reflects Delhi's impeccable record in the non-proliferation sphere and will guarantee the peaceful uses of nuclear exports to India."[113] Australian Foreign Minister Stephen Smith said that the NSG granted waiver because of "India's rise as a global power" and added, "If such a request was made for another country, I don't think it would have been cleared by the NSG members."[114] During his visit to India in September 2008, Smith said that Australia "understood and respected India's decision not to join the Non-Proliferation Treaty".[115] German Foreign Ministry spokesman Jens Ploetner called India a "special case" and added, "Does this agreement send an approving message to Iran? No, it absolutely does not."[116]

Initially, there were reports of People's Republic of China analyzing the extent of the opposition against the waiver at the NSG and then revealing its position over the issue.[117] On September 1, 2008, prominent Chinese newspaper People's Daily expressed its strong disapproval of the civilian agreement with India.[118] India's National Security Advisor remarked that one of the major opponents of the waiver was China and said that he would express Indian government's displeasure over the issue.[119] It was also revealed that China had abstained during the final voting process, indicating its non-approval of the nuclear agreement.[120] In a statement, Chinese delegation to the NSG said the group should address the aspirations of other countries too, an implicit reference to Pakistan.[121] There were also unconfirmed reports of India considering the cancellation of a state visit by Chinese Foreign Minister Yang Jiechi.[122] However, External Affairs Minister Pranab Mukherjee said the Chinese Foreign Minister will be welcomed "as an honored guest".[123] The Times of India noted that China's stance could have a long-term implication on Sino-Indian relations.[124]

There were some other conflicting reports on China's stance, however. The Hindu reported that though China had expressed its desire to include more stern language in the final draft, they had informed India about their intention to back the agreement.[125] In an interview to theHindustan Times, Chinese Assistant Foreign Minister Hu Zhengyue said that "China understands India's needs for civil nuclear energy and related international cooperation."[126] Chinese Foreign Minister Yang Jiechi told India's CNN-IBN, "We didn't do anything to block it [the deal]. We played a constructive role. We also adopted a positive and responsible attitude and a safeguards agreement was reached, so facts speak louder ... than some reports".[127] During a press conference in New Delhi, Yang added, "The policy was set much before that. When consensus was reached, China had already made it clear in a certain way that we have no problem with the [NSG] statement."[128]Highlighting the importance of Sino-Indian relations, Yang remarked, "let us [India and China] work together to move beyond doubts to build a stronger relationship between us."[129]

[edit]Indian reactions

Indian PM Manmohan Singh visited Washington D.C. on September 26, 2008 to celebrate the conclusion of the agreement with U.S. President George W. Bush.[130] He also visited France to convey his appreciation for the country's stance.[131] India's External Affairs Minister Pranab Mukherjee expressed his deep appreciation for India's allies in the NSG, especially the United States, United Kingdom, France, Russia, Germany, South Africa and Brazil for helping India achieve NSG's consensus on the nuclear deal.[132]

Bhartiya Janata Party's Yashwant Sinha, who also formerly held the post of India's External Affairs Minister, criticized the Indian government's decision to seek NSG's consensus and remarked that "India has walked into the non-proliferation trap set by the U.S., we have given up our right to test nuclear weapons forever, it has been surrendered by the government".[133] However, another prominent member of the same party and India's former National Security Advisor Brajesh Mishra supported the development at the NSG and said that the waiver granted made "no prohibition" on India to conduct nuclear tests in the future.[134]

A leading advocate of the agreement was India's most eminent strategic affairs analyst K. Subrahmanyam, also known for his long and controversial championing of an Indian nuclear deterrent.[135] He argued that the convergence of strategic interests between the two nations forced such a remarkable gesture from the US, overturning its decades-long stand on non-proliferation, and that it would be unwise on India's part to spurn such an overture.[136] He also argued that not recognizing new geo-political realities would be even more foolhardy on the part of the Indian elite.[137][138]

Former President of India and noted Indian scientist, APJ Abdul Kalam, also supported the agreement and remarked that New Delhi may break its "voluntary moratorium" on further nuclear tests in "supreme national interest".[139] However, analyst M K Bhadrakumar demurred. He said that the consensus at NSG was achieved on the "basis" of Pranab Mukherjee's commitment to India's voluntary moratorium on nuclear testing and by doing so, India has entered into a "multilateral commitment" bringing it within "the ambit of the CTBT and NPT".[140]

The NSG consensus was welcomed by several major Indian companies. Major Indian corporations like Videocon GroupTata Power andJindal Power saw a $40 billion (U.S.) nuclear energy market in India in the next 10–15 years.[141] On a more optimistic note, some of India's largest and most well-respected corporations like Bharat Heavy Electricals LimitedNational Thermal Power Corporation and Larsen & Toubrowere eyeing a $100 billion (U.S.) business in this sector over the same time period.[141] According to Hindustan Times, nuclear energy will produce 52,000 MW of electricity in India by 2020.[142]

[edit]Other reactions over the issue

More than 150 non-proliferation activists and anti-nuclear organizations called for tightening the initial NSG agreement to prevent harming the current global non-proliferation regime.[143] Among the steps called for were:[27]

  • ceasing cooperation if India conducts nuclear tests or withdraws from safeguards
  • supplying only an amount of fuel which is commensurate with ordinary reactor operating requirements
  • expressly prohibiting the transfer of enrichment, reprocessing and heavy water production items to India
  • opposing any special safeguards exemptions for India
  • conditioning the waiver on India stopping fissile production and legally binding itself not to conduct nuclear tests
  • not allowing India to reprocess nuclear fuel supplied by a member state in a facility that is not under permanent and unconditional IAEA safeguards
  • agreeing that all bilateral nuclear cooperation agreements between an NSG member-state and India explicitly prohibit the replication or use of such technology in any unsafeguarded Indian facilities

The call said that the draft Indian nuclear "deal would be a nonproliferation disaster and a serious setback to the prospects of global nuclear disarmament" and also pushed for all world leaders who are serious about ending the arms race to "to stand up and be counted."[27]

Dr. Kaveh L Afrasiabi, who has taught political science at Tehran University, has argued the agreement will set a new precedent for other states, adding that the agreement represents a diplomatic boon for Tehran.[144] Ali Ashgar Soltanieh, the Iranian Deputy Director General for International and Political Affairs,[145] has complained the agreement may undermine the credibility, integrity and universality of the Nuclear Nonproliferation Treaty. Pakistan argues the safeguards agreement "threatens to increase the chances of a nuclear arms race in the subcontinent."[146] Pakistani Foreign Minister Shah Mahmood Qureshi has suggested his country should be considered for such an accord,[147] and Pakistan has also said the same process "should be available as a model for other non-NPT states".[148]. On July 19, 2010, U.S. Secretary of State Hillary Clinton countered Pakistan statements by saying that Pakistan's checkered history on nuclear proliferation "raises red flags" regarding nuclear cooperation with Pakistan.[149] Israel is citing the Indo-U.S. civil nuclear deal as a precedent to alter Nuclear Suppliers Group (NSG) rules to construct its first nuclear power plant in the Negev desert, and is also pushing for its own trade exemptions.[150]

Brahma Chellaney, a Professor of Strategic Studies at the New Delhi-based Centre for Policy Research, argued that the wording of the U.S. exemption sought to irrevocably tether New Delhi to the nuclear non-proliferation regime. He argued India would be brought under a wider non-proliferation net, with India being tied to compliance with the entire set of NSG rules. India would acquiesce to its unilateral test moratorium being turned into a multilateral legality. He concluded that instead of the "full" civil nuclear cooperation that the original July 18, 2005, deal promised, India's access to civil nuclear enrichment and reprocessing technologies would be restricted through the initial NSG waiver.[151]

[edit]Consideration by U.S. Congress

The Bush Administration told Congress in January 2008 that the United States may cease all cooperation with India if India detonates a nuclear explosive device. The Administration further said it was not its intention to assist India in the design, construction or operation of sensitive nuclear technologies through the transfer of dual-use items.[152] The statements were considered sensitive in India because debate over the agreement in India could have toppled the government of Prime Minister Manmohan Singh. The State Department had requested they remain secret even though they were not classified.[153] Secretary of State Condoleezza Rice also previously told the House Foreign Affairs Panel in public testimony that any agreement would "have to be completely consistent with the obligations of the Hyde Act".[29] Assistant Secretary of State for South and Central Asian Affairs Richard Boucher and the Former Assistant Secretary of State for Legislative AffairsJeffrey Bergner also said the agreement would be in conformity with the Hyde Act.[154]

Howard Berman, chair of the U.S. House Foreign Affairs Committee, in a letter to U.S. Secretary of State Condoleezza Rice warned that an NSG waiver "inconsistent" with the 2006 Hyde Act would "jeopardise" the Indo-U.S. nuclear deal in the U.S. Congress.[155] Edward J. Markey, co-chairman of the House Bipartisan Task Force on Non-proliferation, said that there needed to be clear consequences if India broke its commitments or resumed nuclear testing.[156]

[edit]Passage in Congress

On September 28, 2008 the US House of Representatives voted 298-117 to approve the Indo-US nuclear deal.[157] On October 1, 2008 the US Senate voted 86-13 to approve the Indo-US nuclear deal.[158] The Arms Control Association said the agreement fails to make clear that an Indian nuclear test would prompt the U.S. to cease nuclear trade;[158] however, Secretary of State Condoleezza Rice said that any nuclear test by India would result in the "most serious consequences," including automatic cut-off of U.S. cooperation as well as a number of other sanctions.[159]

After Senate approval, US President George W. Bush said the deal would "strengthen our global nuclear nonproliferation efforts, protect the environment, create jobs, and assist India in meeting its growing energy needs in a responsible manner."[160] Then-US presidential candidates Barack Obama and John McCain, as well as then-Vice Presidential candidate Joe Biden, voted in support of the bill.[161]

[edit]Formal signing of the deal

There was speculation the Indo-US deal would be signed on October 4, 2008 when U.S. Secretary of State Condoleezza Rice was in India. The deal was to be inked by Indian External Affairs Minister Pranab Mukherjee and U.S. Secretary of State Condoleezza Rice. The two leaders were to sign the deal at 2 pm at the Hyderabad House in New Delhi.[162] But Mr. Mukherjee announced that India would wait for the US President to sign the 123 agreement legislation first into law and address India's concerns on fuel supply guarantees and the legal standing of the 123 agreement in the accompanying signing statement.[163]

Ms Rice was aware of the Indian decision before she left Washington. But she was very hopeful that the deal would be signed as the US state department had said that the President's signature was not prerequisite for Rice to ink the deal.[164] Rice had earlier said that there were still a number of administrative details to be worked out even as she insisted that the US would abide by the Hyde Act on the testing issue:

Secretary Rice and Indian Minister for External Affairs Pranab Mukherjee after signing the 123 agreement in Washington on October 10, 2008.

"There are a lot of administrative details that have to be worked out. This (the deal) was only passed in our Congress two days ago. The President is looking forward to signing the bill, sometime, I hope, very soon, because we'll want to use it as an opportunity to thank all of the people who have been involved in this," said Rice.[165]

In Washington, a Senate Democratic aide said that such a delay was not that unusual because legislation needed to be carefully reviewed before being sent to the White House.[166]

US President George W Bush signed the legislation on the Indo-US nuclear deal into law on October 8.[16] The new law, called the United States-India Nuclear Cooperation Approval and Non-proliferation Enhancement Act, was signed by President Bush at a brief White House function in the presence of the Secretary of State Condoleezza Rice, Energy Secretary Samuel Bodman, Vice-President Dick Cheney and the Indian Ambassador to the U.S. Ronen Sen besides a large gathering of other dignitaries.[167] The final administrative aspect of the deal was completed after Secretary of State Condoleezza Rice and External Affairs Minister Pranab Mukherjee signed the bilateral instruments of the 123 Agreement in Washington on October 10 paving the way for operationalization of the deal between the two countries.[168] [169]


[edit]Chronology of the Indo-US Nuclear Deal

July 18, 2005: President Bush and Prime Minister Singh first announce their intention to enter into a nuclear agreement in Washington.

March 1, 2006: Bush visits India for the first time.

March 3, 2006: Bush and Singh issue a joint statement on their growing strategic partnership, emphasising their agreement on civil nuclear cooperation.

July 26, 2006: The US House of Representatives passes the 'Henry J Hyde United States-India Peaceful Atomic Energy Cooperation Act of 2006,' which stipulates that Washington will cooperate with New Delhi on nuclear issues and exempt it from signing the Nuclear Nonproliferation Treaty.

July 28, 2006: In India, the Left parties demand threadbare discussion on the issue in Parliament.

November 16, 2006: The US Senate passes the 'United States-India Peaceful Atomic Energy Cooperation and US Additional Protocol Implementation Act' to "exempt from certain requirements of the Atomic Energy Act of 1954 United States exports of nuclear materials, equipment, and technology to India."

December 18, 2006: President Bush signs into law congressional legislation on Indian atomic energy.

July 27, 2007: Negotiations on a bilateral agreement between the United States and India conclude.

Aug 3, 2007: The text of the 'Agreement for Cooperation between the Government of the United States of America and the Government of India concerning peaceful uses of nuclear energy' (123 Agreement) is released by both governments.

Aug 13, 2007: Prime Minister Manmohan Singh makes a suo motu statement on the deal in Parliament.

Aug 17, 2007: The CPI(M) General Secretary Prakash Karat says the 'honeymoon (with government) may be over but the marriage can go on'.

Sept 4, 2007: In India, the UPA-Left committee to discuss nuclear deal set up.

Feb 25, 2008: Left parties in India say the ruling party would have to choose between the deal and its government's stability.

March 3–6, 2008: Left parties warn of 'serious consequences' if the nuclear deal is operationalised and set a deadline asking the government to make it clear by March 15 whether it intended to proceed with the nuclear deal or drop it.

March 7–14, 2008: The CPI writes to the Prime Minister Singh, warns of withdrawal of support if government goes ahead with the deal and puts political pressure on the Manmohan Singh government not to go with the deal.

April 23, 2008: The Indian Government says it will seek the sense of the House on the 123 Agreement before it is taken up for ratification by the American Congress.

June 17, 2008: External Affairs Minister Pranab Mukherjee meets Prakash Karat, asks the Left to allow the government to go ahead with International Atomic Energy Agency (IAEA) safeguards agreement.

June 30, 2008: The Indian Prime Minister says his government prepared to face Parliament before operationalising the deal.

July 8, 2008: Left parties in India withdraw support to government.

July 9, 2008: The draft India-specific safeguards accord with the IAEA circulated to IAEA's Board of Governors for approval.

July 10, 2008: Prime Minister Manmohan Singh calls for a vote of confidence in Parliament.

July 14, 2008: The IAEA says it will meet on August 1 to consider the India-specific safeguards agreement.

July 18, 2008: Foreign Secretary Shivshankar Menon briefs the IAEA Board of Governors and some NSG countries in Vienna on the safeguards agreement.

July 22, 2008: Government is willing to look at "possible amendments" to the Atomic Energy Act to ensure that the country's strategic autonomy will never be compromised, says Prime Minister Singh.

July 22, 2008: The UPA government led by Manmohan Singh wins trust vote in the Lok Sabha in India.

July 24, 2008: India dismisses warning by Pakistan that the deal will accelerate an atomic arms race in the sub-continent.

July 24, 2008: India launches full blast lobbying among the 45-nation NSG for an exemption for nuclear commerce.

July 25, 2008: IAEA secretariat briefs member states on India-specific safeguards agreement.

Aug 1, 2008: IAEA Board of Governors adopts India- specific safeguards agreement unanimously.

Aug 21-22, 2008: The NSG meet to consider an India waiver ends inconclusively amid reservations by some countries.

Sep 4-6, 2008: The NSG meets for the second time on the issue after the US comes up with a revised draft and grants waiver to India after marathon parleys.

Sept 11, 2008: President Bush sends the text of the 123 Agreement to the US Congress for final approval.

Sept 12, 2008: US remains silent over the controversy in India triggered by President Bush's assertions that nuclear fuel supply assurances to New Delhi under the deal were only political commitments and not legally binding.

Sept 13, 2008: The State Department issues a fact sheet on the nuclear deal saying the initiative will help meet India's growing energy requirements and strengthen the non- proliferation regime by welcoming New Delhi into globally accepted nonproliferation standards and practices.

Sept 18, 2008: The Senate Foreign Relations Committee kicks off a crucial hearing on the Indo-US nuclear deal.

Sept 19, 2008: America's nuclear fuel supply assurances to India are a "political commitment" and the government cannot "legally compel" US firms to sell a "given product" to New Delhi, top officials tells Congressional panel.

Sept 21, 2008: US financial crisis diverts attention from N-deal as both the Bush Administration and the Congress are bogged down over efforts to rescue bankrupt American banks. financial crisis in the country.

Sept 26, 2008: PM Singh meets President Bush at the White House, but were not able to sign the nuclear deal as the Congress did not approve it.

Sept 27, 2008: House of Representatives approves the Indo-US nuclear deal. 298 members voted for the Bill while 117 voted against.

Oct 1, 2008: Senate approves the Indo-US civil nuclear deal with 86 votes for and 13 against.

Oct 4, 2008: Secretary of State Rice visits Delhi. India and the US unable to ink the nuclear agreement with New Delhi insisting that it would do so only after President Bush signs it into a law, an occasion when it expects certain misgivings to be cleared.

Oct 4, 2008: White House announces that President Bush will sign the legislation on the Indo-US nuclear deal into a law on October 8.

Oct 8, 2008: President Bush signs legislation to enact the landmark US-India civilian nuclear agreement.

Oct 10, 2008: The 123 Agreement between India and US is finally operationalized between the two countries after the deal is signed by External Affairs Minister Pranab Mukherjee and his counterpart Secretary of State Condoleezza Rice in Washington D C.

[edit]See also

[edit]References

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  5. ^ India Safeguards Agreement Signed
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[edit]External links

U.S. Government links
India Government links
Nuclear Suppliers Group links
Other links

WB govt withdraws Rs 16 cess on LPG

Times of India - ‎3 hours ago‎
PTI | Jun 25, 2011, 07.36pm IST KOLKATA: Providing some cushion to people hit by Centre's decision to hike cooking gas price by Rs 50 per cylinder, West Bengal chief minister Mamata Banerjee on Saturday decided to withdraw cess of Rs 16 per LPG ...

Mamata to waive cess in West Bengal to cut LPG price sting

Hindustan Times - ‎5 hours ago‎
In a bid to partially offset the price hike of LPG cylinders, West Bengal chief minister Mamata Banerjee announced that her government has surrendered a cess income of Rs 16 per cylinder, thereby effecting an equal reduction from the hike of Rs 50 ...

Delay in notification denies relief for Bengal LPG users

Hindu Business Line - ‎5 hours ago‎
PTI The benefit of the waiver of Rs 16 per LPG cylinder offered by the West Bengal Government cannot be availed of by consumers till a notification is issued by it. "We cannot change the retail price unless there is a notification for the waiver of 4 ...

"I am pained at such a decision by the Centre," she said adding, "we would like to urge the Centre to reduce LPG price".
more by Mamata Banerjee - 3 hours ago - Times of India(18 occurrences)

West Bengal slashes cess on cooking gas

Economic Times - ‎6 hours ago‎
KOLKATA:The West Bengal government Saturday reduced cooking gas prices by Rs.16 per cylinder to partially offset the hike of Rs.50 announced by the central government. Announcing the cut, Chief minister Mamata Banerjee said: "But for the increase in ...

CPI-M leader flays Mamata for land return announcement

Mangalorean.com - ‎2 hours ago‎
Kolkata June 25 (IANS) A Communist Party of India-Marxist (CPI-M) leader Saturday criticised West Bengal Chief Minister Mamata Banerjee's decision not to allow any further land acquisition in Rajarhat area on Kolkata's north eastern fringes, ...

WB Chief Minister's mass appeal a worry for her officials

Business Standard - ‎Jun 24, 2011‎
What was once the biggest strength for her party — her mass appeal — has turned out to be a major worry for her officials and security personnel, after Trinamool Congress chief Mamata Banerjee has become the chief minister of West Bengal. ...

Opposition slams UPA for fuel hike, stage protest

IBNLive.com - ‎6 hours ago‎
New Delhi: A day after hiking fuel prices that led to a lot of anger among consumers across the country - the Congress is in damage control mode. The party has asked its chief ministers to cut cess on LPG. West Bengal Chief Minister Mamata Banerjee has ...

Trinamool set to retain railway ministry

Times of India - ‎18 hours ago‎
NEW DELHI: Trinamool Congress chief Mamata Banerjee, who was clear that she didn't want anyone else from her party to get Cabinet rank, may have to reverse her decision with the Congress making it plain that a crucial portfolio like railways needed a ...

Gas gasp with nudge to states

Calcutta Telegraph - ‎20 hours ago‎
June 24: The Centre tonight came close to matching the domestic record in cooking gas price hike and made holy-cow fuels like diesel and kerosene costlier, using an election-free window and springing an unpalatable option on critics such as Mamata ...

Why couldn't you prevent hike, Left Front asks Mamata

Times of India - ‎Jun 24, 2011‎
KOLKATA: West Bengal's Left Front on Friday strongly opposed the fuel price hike and attacked chief minister Mamata Banerjee asking how she failed to prevent the increase despite being a major ally of the UPA government. In a statement, Left Front ...

West Bengal

Mamata to waive cess in West Bengal to cut LPG price sting 

Hindustan Times - ‎5 hours ago‎
In a bid to partially offset the price hike of LPG cylinders, West Bengal chief minister Mamata Banerjee announced that her government has surrendered a cess income of Rs 16 per cylinder, thereby effecting an equal reduction from the hike of Rs 50 ...

<B>Q&A:</B> Nirupam Sen, Former commerce and industry minister, WB 

Business Standard - ‎57 minutes ago‎
Nirupam Sen, former commerce and industry minister of West Bengal, was instrumental in bringing the Nano project to the state.

Bengal presents vote on account CM in talks for more grants 

Business Standard - ‎Jun 24, 2011‎
The West Bengal government on Friday presented a vote on account statement of about Rs 11165 crore to meet the expenditure for September and October.

Maa, Maati, Manush card for Bengali voters

Times of India - ‎11 hours ago‎
JAMSHEDPUR: After the West Bengal assembly elections, the Trinamool Congress (TMC) is all set to use the same formula of "Maa, Maati and Manush" in the Jamshedpur Lok Sabha bypoll.

Pranab Mukherjee's son Abhijit becomes WBIDFC chairman 

Economic Times - ‎5 hours ago‎
KOLKATA: Abhijit Mukherjee , the son of Congress veteran and union finance minister Pranab Mukhejee, has become the chairman of West Bengal Industrial Development Finance Corporation. The junior Mukherjee replaced state finance secretary CM Bachhawat ...
Pranab son Calcutta Telegraph

Mamata Banerjee bags 24 per cent hike in West Bengal funds

India Today - Kavita Chowdhury -‎Jun 22, 2011‎
Hardly 24 hours after she wholeheartedly supported the government's stand on the niggling Lokpal Bill draft, West Bengal chief minister Mamata Banerjee received an unprecedented hike of 24 per cent over last year's allocation for the state from the ...

Tata Motors move HC over Mamata's Singur Act 

Economic Times - ‎Jun 22, 2011‎
KOLKATA: Tata Motors has challenged theWest Bengal government's decision to take back land allotted to it in Singur, terming the law passed by the state as a "fraud on the Constitution".

Security major concern in battle of ballots 

Times of India - ‎11 hours ago‎
To make things worse, it shares the border with West Bengal and Orissa and there is easy movement of the Red rebels. The four assembly constituencies which are predominantly Maoist-dominated are Ghatshila, Bahragora, Chakulia and Jugsalai.

Man arrested for confining, raping woman for one year 

Times of India - ‎Jun 24, 2011‎
PTI | Jun 24, 2011, 09.33pm IST SIRSA(HARYANA): A person was arrested today by a team of West Bengal police for allegedly confining a woman for about a year and repeatedly raping her during the period.

Rs 16 L limit for poll expenses. Only 50 pc spent! 

Rediff - Vicky Nanjappa - ‎14 minutes ago‎
The recently concluded assembly polls in the four states -- Tamil Nadu, Kerala, West Bengal, Assam and one Union Territory -- Puducherry saw a blatant use of money power.

Heavy showers to lash Kolkata 

Times of India - ‎16 hours ago‎
Spread over Gangetic West Bengal and Bangladesh, the circulation would lead to heavy downpour across the southern parts of the state, including Kolkata.

Jilted lover kills girl, mob lynches him 

Times of India - ‎18 hours ago‎
MALDA: A 13-year-old girl was stabbed to death by a 22-year-old youth for rejecting his proposal of marriage at Kashimpur in West Bengal's Malda district on Friday. Angry villagers caught hold of the youth and lynched him. Around 10.30am, Sabina Khatun ...

Torrential rains render 2 lakh people homeless in West Bengal 

Economic Times - ‎Jun 21, 2011‎
KOLKATA: Mamata Banerjee's primary votebank in East andWest Midnapore appears to be suffering hugely. Torrential rain over the last few days due to an intense depression over the Bay of Bengal has rendered almost 2 lakh people in five blocks of Moina ...

Punjab, Kerala may get debt relief with Bengal 

Times of India - ‎Jun 20, 2011‎
NEW DELHI: Punjab and Kerala might end up benefiting from finance minister Pranab Mukherjee's succour to West Bengal. Officials say that West Bengal is a chronic case as far as state finances are concerned but Punjab and Kerala are marginally better ...

West Bengal govt in favour of amending APMC Act 

Business Standard - ‎Jun 22, 2011‎
PTI / Kolkata June 23, 2011, 0:03 IST The West Bengalgovernment today said it is in favour of amending the Agri-Produce Market Committee Act in line with the policies of the Centre.

Central India rains dry up with demise of 'low' 

Hindu Business Line - Vinson Kurian -‎Jun 24, 2011‎
A westerly trough would dip low to central India, within the confines of which monsoon easterlies from the Bay of Bengal could set up some 'interactive rain.

Bidhan Parishad motion on June 28 

Times of India - ‎Jun 21, 2011‎
KOLKATA: Leader of the House in West Bengal assembly Partha Chatterjee will move a motion on June 28 for revival of the Bidhan Parishad, or a legislative council, in the state legislature.
West Bengal floods under control Daily News & Analysis

West Bengal faces flood threat

The Hindu - ‎Jun 19, 2011‎
Incessant rain has led to a flood-like situation in some parts of West Bengal on Sunday, even as heavy rainfall is predicted over the next 24 hours.
Brace for more rain Indian Express

Renewable energy sector welcomes diesel price hike! 

Mangalorean.com - ‎34 minutes ago‎
"The real pricing of fossil based resources will make stake-holders understand the need for renewable energy (RE) which is misinterpreted to be costlier than conventional sources," said SP Gon Chaudhuri, adviser on renewable energy to theWest Bengal ...

CPI supports Mamata Banerjee's move to return Singur land 

iNewsOne - ‎59 minutes ago‎
Kolkata, June 25 (IANS) West Bengal Chief Minister Mamata Banerjee's move to return 400 acres of Singur factory land to farmers from whom land had been taken allegedly against their will by the erstwhile Left Front regime for the Tata's small car plant ...

CMO murder: Maya aide denies any involvement

IBNLive.com - ‎4 hours ago‎
New Delhi: CNN-IBN has tracked down Jaunpur MP Dhananjay Singh - a close aide of the Uttar Pradesh Chief Minster Mayawati - who is being linked to the mysterious death of CMO Dr YS Sachan. He refuted any connection with the three murders even as ...

Opposition demands dismissal of Mayawati govt

IBNLive.com - ‎5 hours ago‎
PTI Lucknow: Accusing Mayawati government of perpetrating 'jungle raj', the Opposition in Uttar Pradesh today demanded dismissal of the ministry and imposition of President's rule in the state. Demanding a CBI probe into the murder of chief medical ...

Deputy CMO murder: NCSCST issues notice to UP Govt

Indian Express - ‎6 hours ago‎
The National Commission for Scheduled Castes and Scheduled Tribes has issued a notice to the UP government seeking a reply as to why a CBI probe has not been ordered into the death of deputy CMO YS Sachan. "The Commission has sought a reply from the ...

"We have demanded that this government should be dismissed as there is a huge constitutional crisis in UP...... Women have been raped. MLAs and ministers have gone to jail," Yadav said.
more by Akhilesh Yadav - 5 hours ago - IBNLive.com(6 occurrences)

Prime suspect in Sachan's death claims innocence

IBNLive.com - ‎8 hours ago‎
New Delhi: The main suspect in the Uttar Pradesh Deputy Chief Medical Officer (CMO) Dr Yogendra Singh Sachan's death, BSP MP from Jaunpur Dhananjay Singh, has denied any involvement in the the case. "All the allegations against me are baseless. ...

Sachan death: Samajwadi Party demands Mayawati's dismissal

Economic Times - ‎10 hours ago‎
LUCKNOW: Accusing Uttar Pradesh's Mayawati government of terrorising the family of deputy chief medical officer YS Sachan, found dead mysteriously in a Lucknow jail, the Samajwadi Party Saturday urged Governor BL Joshi to dismiss it. ...

Sachan's family move to Supreme Court for CBI probe

NewsX - ‎12 hours ago‎
The family of Dr. YS Sachan will approach the Supreme Court for a CBI probe into how he died. Sachan had died in the jail hospital under mysterious circumstances.

Dy CMO cremated, but family sticks to CBI probe demand

Indian Express - ‎16 hours ago‎
Two days after his death in Lucknow jail premises, body of Deputy Chief Medical Officer Dr YS Sachan was cremated here at electric crematorium on Friday evening amid police security. Till afternoon, the family members were adamant on waiting for the ...

'Hired shooter' says knew neither victim nor 'boss'

Indian Express - ‎17 hours ago‎
Anand Prakash Tiwari, one of the alleged shooters of CMO Dr BP Singh who was killed in Lucknow on April 2, on Friday said he knew neither Dr Singh nor Deputy CMO Dr YS Sachan. According to police, Sachan had hired Tiwari and another shooter Vinod ...

After HC order, govt hands over autopsy report to family

Indian Express - ‎17 hours ago‎
Acting on the instructions issued by the Lucknow Bench of Allahabad High Court on Friday, the state government handed over a copy of the postmortem report of Dr YS Sachan to his family. The order was made by a vacation bench comprising Shabihul Hasnain ...

CMO Sachan cremated, kin seek CBI probe

Times of India - ‎18 hours ago‎
LUCKNOW: Deputy chief medical officer YS Sachan, who died under mysterious circumstances inside a Lucknow jail two days ago, was cremated on Friday. Earlier in the day, Sachan's family had said that he would not be cremated till a CBI probe was ordered ...

Mayawati

CMO murder: Maya aide denies any involvement 

IBNLive.com - ‎4 hours ago‎
New Delhi: CNN-IBN has tracked down Jaunpur MP Dhananjay Singh - a close aide of the Uttar Pradesh Chief Minster Mayawati- who is being linked to the mysterious death of CMO Dr YS Sachan.

Mayawati pitches for Telangana

Business Standard - ‎49 minutes ago‎
Adding her bit to the political turmoil in the Telangana region, Uttar Pradesh chief minister and BSP supremo Mayawati today announced her support to the demand for a separate statehood, adding that only a dalit would become the chief minister if a new ...

Mayawati suspends MLA on rape charge 

Times of India - ‎Jun 24, 2011‎
LUCKNOW: UP chief minister and BSP supremo Mayawati has suspended her party MLA Shahnawaz Rana whose aides have been arrested by the police for kidnapping two girls and trying to rape them in Muzaffarnagar.

Mayawati calls for more stringent punishment for rape accused 

The Hindu - Atiq Khan - ‎Jun 21, 2011‎
The Hindu Uttar Pradesh Chief MinisterMayawati addresses a press conference in Lucknow on Tuesday. Photo: Subir Roy Pushed on the back foot by the spate of rape incidents and concerned at an alarming increase in crimes against women, Uttar Pradesh ...

Opposition parties, allies protest fuel hike 

IBNLive.com - ‎1 hour ago‎
PTI | 09:06 PM,Jun 25,2011 Hitting out at the Centre, Uttar Pradesh chief minister Mayawati accused it of being indifferent to the suffering of the common man.

Mayawati orders govt depts to use 25% of their budget by June 

IBNLive.com - ‎Jun 22, 2011‎
PTI | 10:06 PM,Jun 22,2011 Lucknow, Jun 22 (PTI) Uttar Pradesh Chief Minister Mayawati has directed government departments to utilise 25 per cent of their budget for the current fiscal by June 30.

45% of UP rape cases in 2010 were of Dalits

Hindustan Times - ‎26 minutes ago‎
At a time when the Mayawati government battles potential damage to its credibility by recurrent reports of rapes of Dalit girls, the government clearly has a lot to do before the coming polls.

Politics Journal: The Trio of Female Chief Ministers Storms Delhi 

Wall Street Journal (blog) - Jyoti Malhotra - ‎Jun 24, 2011‎
Mamata Banerjee of West Bengal, Jayaram Jayalalithaa of Tamil Nadu, and Kumari Mayawati of Uttar Pradesh came to the capital from very different directions, as it were.

UP spent `8600 crore under NRHM in 5 years

Livemint - Liz Mathew - ‎Jun 24, 2011‎
The Mayawati government in Uttar Pradesh is in a fresh crisis after the mysterious death of deputy chief medical officer (CMO) YS Sachan in prison after he was suspended for his alleged role in the murder of another CMO BP Singh.

Show of strength for Mayawati in Bhopal 

The Hindu - Mahim Pratap Singh -‎Jun 19, 2011‎
The Hindu Bahujan Samaj Party supremo and Uttar Pradesh Chief Minister Mayawatiwaves during a partry convention in Bhopal on Sunday.

Mayawati on Mumbai tour from June 25 

Daily News & Analysis - ‎Jun 23, 2011‎
Uttar Pradesh chief minister and BSP leader Mayawatiwould be in Mumbai this weekend, on a visit aimed at strengthening the party's base in the state.

Opposition demands dismissal of Mayawatigovt in UP 

NewsX - ‎2 hours ago‎
In UP the Chief Minister Mayawati is under pressure from the opposition, that has asked the Governor to sack her government.

.Uma Bharti slams Mayawati over law and order in UP 

indiablooms - ‎Jun 24, 2011‎
Gorakhpur, June 24 (ANI): Taking a dig at UP Chief MinisterMayawati, Bharatiya Janata Party leader Uma Bharti on Friday slammed the state government over the mysterious death of Deputy Chief Medical Officer Yogendra Singh Sachan.

Cong says Mayawati should take responsibility for attacks 

IBNLive.com - ‎Jun 21, 2011‎
PTI | 10:06 PM,Jun 21,2011 New Delhi, Jun 21 (PTI) Congress today kept up pressure on Uttar Pradesh Chief Minister Mayawati on the issue of law and order asserting that the she should take moral responsibility for the growing atrocities on women in the ...

Mayawati slams Congress for corruption 

Times of India - ‎Jun 16, 2011‎
NEW DELHI: BSP chief Mayawati on Thursday slammed Congress for corruption which she said had brought global opprobrium on the country, inviting strong reaction from the lead UPA player and touching off sniping between the rivals which will only get ...

No objection to CBI probe into Lakhimpur case: Mayawati 

The Hindu - ‎Jun 15, 2011‎
PTI The Hindu Uttar Pradesh Chief MinisterMayawati said her government has no objection to a CBI inquiry into the Lakhimpur teenaged girl's murder case if the victim's family wanted it.

Crime and graft, not temple, poll plank in UP: Uma 

Indian Express - ‎Jun 22, 2011‎
Bhartiya Janata Party (BJP) leader Uma Bharti on Wednesday said crime and corruption under the Mayawati government - and not Hindutva - would be the party's main political agenda for the 2012 Assembly elections in the state.

Raped, humiliated 17-year-old girl commits suicide 

Hindustan Times - ‎Jun 21, 2011‎
Uttar Pradesh chief minister Mayawati on Tuesday announced a slew of measures to counter the increasing incidence of rape in the state.

Uma Bharti slams Mayawati 

Mangalorean.com - ‎Jun 19, 2011‎
Lucknow, June 19 (IANS) Days after rejoining the Bharatiya Janata Party (BJP), Uma Bharti Sunday termed Uttar Pradesh Chief MinisterMayawati a big disappointment. Addressing party leaders and workers at the state BJP headquarters here, Uma Bharti, ...
On relative terms Hindustan Times

Mayawati asks Lokpal Bill civil society to make it an election issue 

Economic Times - ‎Jun 15, 2011‎
LUCKNOW: Breaking her silence on the public campaign for a stringent Lokpal Bill , Chief Minister Mayawati said that civil society members should not rely upon the central government but take the issue to the masses.

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Timeline of articles

Timeline of articles
Number of sources covering this story
CMO murder: Maya aide denies any involvement
‎4 hours ago‎ - IBNLive.com
SP demanded a CBI probe into death of Dr YS Sachan Cong, SP demand CBI probe
‎Jun 24, 2011‎ - Times of India
Family demands Maya govt lodge case of murder
‎Jun 23, 2011‎ - Hindustan Times
Oppn demands CBI probe into Sachan's 'murder'
‎Jun 23, 2011‎ - Hindustan Times
Dead medical officer's kin demand CBI probe
‎Jun 23, 2011‎ - Times of India
Main accused in CMO murder found dead
‎Jun 22, 2011‎ - Times of India

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WB govt withdraws Rs 16 cess on LPG
‎3 hours ago‎ - Times of India
West Bengal slashes cess on cooking gas
‎6 hours ago‎ - Economic Times
WB Chief Minister's mass appeal a worry for her officials
‎Jun 24, 2011‎ - Business Standard

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