Archive for ‘India alert’

20/09/2012

* India strike over supermarket reforms

BBC News: “Opposition parties and trade unions in India are staging a day-long strike over plans to open the country’s retail sector to global supermarket chains.

Demonstrators from the Samajwadi Party, a regional political party, shout slogans after they stopped a passenger train during a protest against price hikes in fuel and foreign direct investment (FDI) in retail, near Allahabad railway station September 20, 2012.

Workers blocked railways in Uttar Pradesh and Bihar states, and Calcutta and Bangalore virtually shut down, but the response was more mixed elsewhere.

The reforms are essential to revive India’s slowing economy, ministers say.

A key ally left the ruling coalition in protest, although its majority in parliament is not at immediate risk.

The Congress-led government attempted to introduce the retail reforms last year, but backed down in the face of opposition.

Thursday’s nationwide strike, called by the main opposition Bharatiya Janata Party (BJP), its allies and Communist parties, has shut down schools, businesses and public transport in many cities.

TV channels showed protests taking place in the cities of Patna, Allahabad and Varanasi in northern India.

Most businesses were shut in the eastern city of Calcutta and public transport was disrupted, reports said.

The southern state of Karnataka, which is governed by the BJP, was shut down in response to the strike call with buses off the roads and schools, hotels and businesses closed. The state capital, Bangalore – home to hundreds of IT companies including multinationals like IBM and Microsoft – was completely shut down.

“We have asked our employees to stay back at home. We will instead work on Saturday,” an official of Infosys, one of India’s leading software companies, said.

“The fear factor is the reason for the closure,” a spokesperson for another multinational company told the BBC.

The Confederation of All India Traders said 50 million people were expected to participate in the protests, and that large demonstrations were planned in Delhi and other cities.

However, much of the capital was operating normally on Thursday, BBC reporters said. There was a similar picture in the financial capital, Mumbai.”

via BBC News – India strike over supermarket reforms.

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18/09/2012

* In India, Mamata Banerjee May Bring Down Coalition

NY Times: “When Mamata Banerjee, a 5-foot-tall dynamo in flip-flops, finally defeated the Communists last year after decades of misrule here, she became one of the most powerful but unpredictable politicians in India. Now the country is left to guess whether she will announce on Tuesday that she intends to try to pull down India’s governing coalition.

Ms. Banerjee may bring down the governing coalition.

Ms. Banerjee is the chief minister of West Bengal, a state more populous than Germany, and she leads a regional party with 19 ministers in Parliament, a crucial block of votes for the governing United Progressive Alliance. Indeed, she is so influential that Secretary of State Hillary Rodham Clinton paid her a special visit on a recent trip to India, a highly unusual honor for any regional leader.

On Thursday and Friday, the government pushed through several sweeping policy changes, including one that would allow Walmart and Ikea to set up shop in India. Ms. Banerjee has repeatedly opposed plans to open India up to more competition. She is in some ways more leftist than the Communists she replaced.

But while she has vowed to protest the changes, it is unclear whether she will go further on Tuesday and push for early elections after she meets with her party leaders. As is often the case with Ms. Banerjee, her public statements are often contradictory.”

via In India, Mamata Banerjee May Bring Down Coalition – NYTimes.com.

15/09/2012

* Coalgate: Supreme Court issues notice to Centre over coal block allocations

The Times of India: “The Supreme Court has issued notice to the Centre on coal block allocations and has asked the govt what action it proposes to take against illegal allotments and those allottees who breached the contract.

The apex court has asked the coal secretary to file affidavit answering 6 questions on a PIL seeking cancellation of all 194 coal mine blocks under controversy.

The apex court’s posers to the government includes —

Why competitive bidding process was not followed for allocation of coal blocks?

What were the guidelines for allocation of coal blocks and whether there was any deviation during actual allocation?

Why so many politicians and their relatives figure among the alleged irregular allottees?

Whether the guidelines for allocation overlooked the safety mechanism to render the allotments as largesse in favour of private parties?

Whether govt’s objective in coal block allocation has been achieved through the present mode of allocation, which was faulted by the CAG?

The apex court has asked the coal secretary to file a response in 8 weeks.

Turning down the Centre’s plea that the court should not go into the issue as it is being looked into by a Parliamentary committee, the apex court said “these are different exercises.”

A bench of justices R M Lodha and A R Dave said the petition raised serious questions and “it requires explanation from the government”.”

via Coalgate: Supreme Court issues notice to Centre over coal block allocations – The Times of India.

See also: https://chindia-alert.org/2012/09/07/india-parliament-ends-in-deadlock/

14/09/2012

* India opens retail to global supermarkets

BBC News: “India’s government has once again cleared a controversial plan to open up its lucrative retail sector to global supermarket chains.

Last year, the government suspended a similar plan after fierce opposition from its allies and political rivals.

International firms such as Walmart and Tesco will now be able to buy up to a 51% stake in multi-brand retailers.

Analysts say the government has reintroduced the measure in an effort to revive a flagging economy.

Prime Minister Manmohan Singh is reported to have told cabinet colleagues that “the time for big bang reform has come; we have to go down fighting”.

Strong opposition

The decision was one of several key reforms announced by the government. It also approved a plan to allow foreign airlines to buy 49% stakes in local carriers, in the hope that this will boost the country’s troubled aviation sector.

The decision to open up India’s lucrative retail sector to international supermarket chains has come as a major surprise. It was among a slew of key economic reforms announced by the government and is seen as vital to reviving the country’s slowing economy.

For months the decision has been held up by political gridlock, especially because it was opposed by the government’s own allies. But it now appears the government has decided to bite the bullet, especially as its own credibility – and that of Manmohan Singh – is at an all-time low following a series of financial scandals.

Much will now depend on Mr Singh’s ability to keep his disparate coalition together, as opposition to these measures is expected to be fierce.

Many will see this as a final throw of the dice, not just to revive the economy and boost confidence among investors but also ahead of the national elections due in 2014.

It also follows Thursday’s dramatic 14% rise in the price of diesel, which is heavily subsidised in India.

The government was forced to back down on retail reform after the cabinet first undertook to open up the retail sector last November.

The move had been strongly opposed by tens of thousands of small businesses and cornershops who fear they will be put out of business.

But this latest move has already been welcomed by economists who say it will transform the way Indians shop and will boost the economy.

The opposition Bharatiya Janata Party and the Communists labelled it a “betrayal of democracy”.

via BBC News – India opens retail to global supermarkets.

07/09/2012

* Indian Caste affirmative action – controversy

Reuters: “Passions are running high in parliament and the stakes are huge. The contentious issue of reservation is back to haunt Indian politics and it may well decide who runs the next government in the world’s largest democracy. Sparks were seen flying in the upper house on Wednesday when two MPs from rival parties came to blows during the tabling of a bill to amend the Constitution, providing for reservations in promotions at work for backward castes.

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The issue, however, is nothing new. Reservation is a recurring theme in India’s democracy. And Prime Minister Manmohan Singh’s embattled government seems to be returning to identity politics at a time when it is badly cornered, thanks to a string of corruption scandals, a ballooning fiscal deficit and low investor sentiment.

The move comes after the Supreme Court in April struck down former Uttar Pradesh chief minister Mayawati’s policy of a promotion quota in government service.

It also comes at a time India is seeing something of an upsurge in communal tensions that seem to have been stoked by political parties — witness the Bodo-Muslim violence in the northeast, which the BJP has linked to illegal immigration, a favourite fallback of politicians around the world when they are short on ideas and achievements. At the other end of the country, in Tamil Nadu, Chief Minister J Jayalalithaa has been stirring sentiment against Sri Lankans.

While affirmative action is recognised in several countries and even gender quotas for woman have been debated in Europe, the multiplicity of religious, cultural, caste and class identities in the world’s second most populous country make it a complex issue.

Reservation in jobs and educational institutions for the underprivileged in a country where the caste system reduced millions to the status of untouchables for centuries is much needed. And almost all opposition to reservation comes from the so-called higher castes who believe it isn’t fair to them.

A promotion quota is, however, a different ball game. After getting a job, shouldn’t all employees be given an equal opportunity to learn, prove themselves and move high up the organisational ladder? As it is, the practice of promoting employees on the basis of seniority — the case with almost all government service promotions — is an archaic idea. Add to it the reservation in promotions and it becomes a heady cocktail of low productivity and mismanagement.”

via India Insight.

07/09/2012

* India parliament ends in deadlock

BBC News: “The latest session of India’s parliament has ended without resolving deadlock which paralysed it for days.

The Gevra coal mine in the central Indian state of Chhattisgarh

The impasse was caused by an uproar over alleged corruption in the allocation of coalfield concessions.

The opposition BJP wants the government to cancel the awards and hold an independent probe.

Earlier this week, police raided companies which allegedly misrepresented facts prior to being awarded coalfield concessions.

State auditors say India lost $33bn (£20bn) awarding coalfields at below market rates in the years up to 2009.

The auditors’ report does not mention Prime Minister Manmohan Singh, but BJP leaders say he must step down because he had direct responsibility for the coal ministry when most of the awards were made.

Mr Singh denies any wrongdoing and has refused to resign.

Parliament was deadlocked for 13 of the 20 days of the monsoon session which concluded on Friday without much business being done.

Some 30 bills were due to be considered and passed during the session, but very little legislative work was done.

“This session is likely to be remembered for the work that was not done,” the chairman of the upper house, Hamid Ansari, said.”

via BBC News – India parliament ends in deadlock.

05/09/2012

* Who will be next Indian Prime Minister?

Reuters: “With the Congress-led coalition government more than halfway through its five-year term, the political temperature is heating up in the world’s largest democracy. The question on everyone’s minds is — who’s going to be the next prime minister?

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A recent Nielsen survey had showed Gujarat chief minister Narendra Modi was the top choice for the post, ahead of Congress party scion Rahul Gandhi and Bihar chief minister Nitish Kumar.

But last week’s conviction of a Bharatiya Janata Party (BJP) lawmaker in the Gujarat riots is a blow to Modi, and the political fallout from the case may have dented his hopes of sitting in the prime minister’s chair.

Senior party leader Lal Krishna Advani had earlier stoked controversy by blogging about the possibility of a “non-Congress, non-BJP prime minister” after the 2014 elections.

It’s not just internal party dynamics, the BJP’s allies are also giving Modi sleepless nights. Janata Dal (U) leader Nitish Kumar has made it clear he won’t be happy if Modi is projected as the BJP candidate.

And what about the Congress? Incumbent Manmohan Singh seems to be out of the reckoning and several senior Congress leaders have hinted at the elevation of Rahul Gandhi.

But that’s easier said than done. A political crisis over suspected corruption in the allocation of coal blocks has put the government on the back foot. Its performance in this year’s Uttar Pradesh state elections, often a barometer of success at the national level, wasn’t good enough to stave off regional rivals. What was more painful — its main campaigner was Rahul Gandhi and his ‘magic’ did not work.

With the Congress-led coalition government more than halfway through its five-year term, the political temperature is heating up in the world’s largest democracy. The question on everyone’s minds is — who’s going to be the next prime minister.”

via India Insight.

03/09/2012

* India’s top court allows some iron ore mining to resume

BBC News: “India’s Supreme Court has partially lifted its 16-month-old ban on iron ore mining, allowing some mines to resume work in southern Karnataka state.

Iron ore mining in Goa

Companies which had “not violated their lease conditions” could resume mining, the court ruled on Monday.

The ban was imposed last year in Bellary, Chitradurga and Tumkur districts over environmental concerns.

The order will open up about 5 million tonnes a year of production again, reports say.

India is the third largest producer of iron ore in the world and Karnataka, which produces about 45 million tonnes of iron ore per year, is India’s second largest supplier.

But mining in the state has been under the spotlight for some time with reports of illegal mining and has become a hot political issue.

The Supreme Court order follows recommendations of the court-appointed Central Empowered Committee (CEC).

In a report in February, the CEC recommended that licences of as many as 49 iron ore miners in Karnataka should be cancelled.

It said 72 other miners should be fined for operating mining pits and burden dumps outside sanctioned areas.

“The extent and level of unauthorised, unregulated, environmentally unsustainable and illegal mining in its various facets has no other parallel in the country,” the CEC said it is report.

Last year, BS Yeddyurappa, the then chief minister of Karnataka, resigned after an anti-corruption panel indicted him in a mining scandal. Mr Yeddyurappa denies the allegation.”

via BBC News – India’s top court allows some iron ore mining to resume.

02/09/2012

* Asian giants seek better ties; China defence minister in India

The Times of India: “A rare visit to India by China’s defence minister should help avoid flare-ups along the border between the nuclear-armed Asian giants at a time when Beijing is grappling with a change of leadership and friction in the South China Sea.

Chinese Minister of National Defense General Liang Guanglie stands on a balcony overlooking the campus of the U.S. Military Academy in West Point, New York, May 10, 2012. REUTERS/Mike Segar

But General Liang Guanglie‘s trip — the first by a Chinese defence minister in eight years — also highlights growing competition between the two emerging powers as they jostle for influence and resources across Asia.

Liang is due to arrive in Mumbai on Sunday afternoon after stopping in Sri Lanka, the island nation off the south coast of India that sits on vital ocean trade routes.

There he sought to play down Indian fears that China is threading a “string of pearls” — or encircling it by financing infrastructure and military strength in neighbours stretching from Pakistan to the Maldives.

“China attaches great importance to its relations with the South Asian nations, and commits itself to forging harmonious co-existence and mutually beneficial and win-win cooperation with them,” he said in speech to Sri Lankan soldiers.

“The PLA’s (People’s Liberation Army) efforts in conducting friendly exchanges and cooperation with its counterparts in the South Asian nations are intended for maintaining regional security and stability and not targeted at any third party.”

As neighbours and emerging superpowers, India and China have a complex relationship. Trade has grown at a dizzying rate but Beijing is wary of India’s close ties to Washington and memories of a border war with China half a century ago are still fresh in New Delhi.

Despite 15 rounds of high level talks to resolve the dispute about where their Himalayan border lies, neither side is close to giving up any territory. Liang is not expected to broach the territorial issue on his trip.

Analysts say Liang’s India tour will demonstrate that Beijing is managing the often twitchy relations with its neighour just ahead of its once-in-a-decade leadership transition.”

via Asian giants seek better ties; China defence minister in India – The Times of India.

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31/08/2012

* India’s economic growth better than forecast

BBC News: “India’s economy grew faster than expected in the three months to the end of June, easing some fears about a sharp slowdown in Asia’s third-largest economy.

Growth was 5.5% in the April to June period from a year earlier. Most analysts had forecast a rate of 5.2%.

That compares with a 5.3% annual growth rate in the previous quarter.

However, there are concerns that a lack of reforms, slowing factory output and investment may hurt long-term growth.

“Whilst an upside surprise at 5.5%, the pace of growth is undeniably below potential and validates the need for the government to address sluggishness in investment and external sector activity,” said Radhika Rao an economist at Forecast Pte.”

via BBC News – India’s economic growth better than forecast.

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