PM apologises for remarks by a Cong member against Vajpayee

Prime Minister Manmohan Singh on Wednesday apologised to the Lok Sabha on behalf of the government for certain “undesirable” remarks by a Congress member against former Prime Minister Atal Bihari Vajpayee.   

“Yesterday I was not present in the House. I have heard some undesirable remarks were made by a member of the ruling coalition which was inappropriate.

   

“On behalf of our government, I apologise to the House,” Dr Singh, who returned last night after a three-day visit to Russia, said.

   

BJP and allies had on Tuesday created pandemonium in the House after Beni Prasad Verma (Congress) used demeaning remarks against Vajpayee forcing two adjournments.

 

The NDA members were agitated when Verma used a derogatory word against the former Prime Minister during a debate on the Liberhan Commission report and demanded an apology from him.

        

Prime Minister Manmohan Singh said the report of Ranganath Misra Committee, which went into the issue of reservation for minorities, will be placed in Parliament during this session. 

“We will place the report on the table of the House in this session,” Dr Singh said in the Lok Sabha on Wednesday.

 

His assurance came after Samajwadi Party members led by Mulayam Singh Yadav and others demanded that the report be tabled immediately.

    

The Prime Minister said, “I take note of this matter and we will place the report on the table of the House.”

 

Opposition members had raised the issue in the Rajya Sabha on Tuesday demanding that the government make public the report which, they said, was freely available under the RTI Act.

    

The Ranganath Committee is understood to have recommended reservation for minorities in employment, higher education and economic and developmental schemes funded by the government.

 

17 killed ,30 injured in Imphal blast

At least 17 people have been killed and more than 30 others injured Tuesday night when unidentified militants exploded a bomb attached to a two-wheeler near a police commando complex in Imphal West district.Sources said the victims included a few security personnel.

While 13 people died on the spot, four more succumbed to injuries in hospital.

The death toll is likely to increase as the condition of several injured people is critical, sources said.

According to the first official report, the militants raided the place where security personnel and civilians were gambling ahead of the Diwali.

The injured were shifted to Regional Institute of Medical Science and Hospital and Jawaharlal Nehru Hospital.

RBI cuts CRR by 1 percent releases additional Rs 40K cr

The Reserve Bank fed the banking system yet another Rs 65,000 crore through a one percent cut in banks’ mandatory cash deposits (CRR) and disbursal of funds under the farm debt waiver scheme, with the promise that more would be done, if needed :

Major banking sector players said they would assess the situation and response of the market before taking a call on cutting interest rates, even though the second largest public sector bank PNB slashed its retail lending rates by half-a-percent even before Wednesday’s reduction in CRR.

“RBI is monitoring developments in the financial markets closely and continuously and would respond swiftly and even preemptively to any adverse external developments impinging on domestic financial stability,” the apex bank said announcing release of Rs 40,000 crore through cut in CRR to 6.5 percent.

Similar cuts announced by RBI since 6th October has injected a whopping Rs 60,000 crore and along with Wednesday’s development, banks would get Rs 1,00,000 crore.

Factoring in the Rs 25,000 crore that RBI is releasing under the debt waiver scheme and Rs 20,000 crore for mutual funds, the total liquidity infusion amounts to Rs 1,45,000 crore.

RBI’s liberal measures came on a day when stock markets tanked close to 700 points, ending a two-day winning streak that came on the back of government’s reassurance that it was continuing to fight the liquidity problems.

RBI Governor D Subbarao returned from New Delhi after holding discussions with the Prime Minister and the Finance Minister on options to combat the liquidity crunch caused by the global financial meltdown.

Continuing to feed the insatiable appetite of the system, the Finance Minister announced that foreign institutional investors would be allowed to double their limit to 6 billion dollars in the corporate bond market.

In addition, both the RBI as well as the government took steps to give benefits to the depositors, especially non-residents. Besides, Finance Minister P Chidambaram pledged full support to banks for accessing funds to raise their capital adequacy ratio to 12 percent.

Pointing out that the continuing uncertain global situation is having an indirect impact on the financial situation; the RBI said the CRR cut would be effective for the fortnight beginning 11th October, a decision that would immediately release Rs 40,000 crore for the banking system.

The central bank further said that Rs 20,000 crore repo auction facility to enable banks to meet liquidity requirements of mutual funds will continue till the entire amount is auctioned.

The banks have drawn only Rs 3,500 crore from the scheme on the first day of opening of the addition repo window by the RBI on Tuesday.

The central bank further said that a similar facility will be made available for the oil bonds which were instituted under the Special Market Operations (SMO) for public sector oil marketing companies in June-July earlier.

In order to lure non-resident deposits, the RBI has increased the interest rate ceiling by 50 basis points on FCNR(B) and NR(E)RA deposits.

The RBI has also allowed the banks to borrow funds from their overseas branches and correspondent banks up to USD 10 million or 50 percent of their unimpaired Tier 1 capital as against the existing limit of 25 percent.

The decision will help the banks with foreign branches to bring in funds into the country.

Promising to take more measures, the RBI said that “it is committed to maintaining financial stability and active, and flexibility liquidity manegement using all policy instruments is an integral part of this objective.”

Commenting on the CRR reduction, Punjab National Bank Chairman and Manging Director K C Chakrabarty said, “It is a welcome step and would ease liquidity pressure. To ensure credit to the borrowers at a lower rate during the festive season we already have cut interest rate in the retail segment even before RBI announced the measure.”

However, the bank has to assess the asset liability condition as well as the market rate before taking decision on further cut in interest rates, he said.

Once the liquidity condition eases, the logical conclusion is moderation in the interest rates, said Indian Bank Chairman and Managing Director M S Sundara Rajan.

Welcoming the move that would infuse Rs 40,000 crore in the banking system, he said, it would help in credit expansion for the productive sector.

Parl session likely to witness ‘fireworks’

Skipping the monsoon session because of a confidence vote and meeting now with “erstwhile friends” in opposition benches, Parliament begins a new session on Friday that is likely to be stormy on a number of issues like communal violence, terror attacks and price rise :

External Affairs Minister Pranab Mukherjee is likely to make a statement on the nitty-gritty of Indo-US nuclear agreement as it is going to be the first session after conclusion of the pact.

In between the special two-day sitting in July when the government secured a vote of confidence with the shifting of sides by Samajwadi Party and the session beginning on Friday, the government successfully went through the process of clinching the nuclear deal through IAEA, NSG and the US Congress.

With the deal in its bag, an upbeat Congress is gearing up to take on the combined opposition which is likely to corner the government on issues like spiralling prices and incidents of terror attack in some parts of the country.

Main opposition BJP has been accusing the government of going soft on terror besides being critical of its handling of the internal security and failing to check inflation.

To counter the opposition onslaught, Congress is likely to raise the issue of attacks on Christians in BJP-ruled Karnataka and Orissa governed by BJD-BJP charging Sangh Parivar outfits like Bajrang Dal and VHP with indulging in attacks against minority communities in the two states.

Parliamentary Affairs Minister Vayalar Ravi said the government was willing to have a thorough discussion on these issues.

An indication of the shape of things to come during the session was evident at the meeting of the National Integration Council (NIC) which saw both government and opposition trading charges on issues of terrorism and communalism.

RJD, LJP and some Congress ministers are likely to raise the issue of banning Bajrang Dal, allegedly behind the attacks on Christians and Christian prayer halls in Orissa and Karnataka.

The opposition, on the other hand, has decided to renew its demand for bringing a tough POTA-like anti-terror law, a suggestion already shot down by the government which feels efforts should be made to strengthen the federal system rather than bringing a new law.

While External Affairs Minister Pranab Mukherjee is likely to make a statement on the nitty-gritty of Indo-US nuclear agreement as it is going to be the first parliament session after conclusion of the pact, the government is likely to come under attack by Left parties which withdrew support to the government on the deal.

Since it could be the last session before the general elections early next year and with assembly polls to nearly half a dozen states next month, both UPA and NDA would try their best to outscore each other on various issues.

Spiralling prices along with the jolt to the economy because of the meltdown of global financial markets are also likely to figure prominently in the session.

The Mayawati government’s cancellation of allotment of land for a rail project in Rae Bareli, Congress chief Sonia Gandhi’s Lok Sabha constituency in Uttar Pradesh, and virtual scuttling of Gandhi’s rally there are expected to generate enough heat among members belonging to BSP and Congress in the two Houses.

Other issues that are likely to come up include flood devastation in several states. The cash-for-vote scam which had rocked the Lok Sabha on 22nd July might resurface with a bang.

The five-week session, which will end on 21st November, is the second phase of the two-day session which saw Manmohan Singh government winning the trust vote.
The session which would have 24 sittings will take up supplementary demands for grants of railways and general budgets.

Some of the important bills listed for the session include those to check corruption, money laundering and communal violence besides one seeking to provide social security to unorganised sector workers.

Under attack Jet retracts and reinstates sacked 1900 workers

Under severe attack for sacking its 1,900 employees a day after it alliance with Kingfisher, leading private airline Jet Airways on Thursday apologised to the terminated staffers and ask them to join duty from Friday :

“I apologise for what they have gone through…my decision is without external or internal pressure,” Jet chief Naresh Goyal told reporters in an emotionally choked voice.

He dismissed questions relating to political pressure, including a threat by Raj Thackeray that Jet would not be allowed to fly from Mumbai, Goyal said that the decision was taken by the management due to economic conditions.

Dubbing the entire workforce as part of a family, he said, “How we continue to fly and not be grounded due to economic conditions we will work it out and see how to strengthen.

“The decision is not any under pressure. My wife (Anita) is standing by it.”

Repeatedly apologising for the decision, he appealed to the sacked employees saying “sab log wapas aayenge” (everybody will come back).

The top two private airlines, Jet and Kingfisher, which account for about 60 percent of domestic aviation traffic, had announced on Monday an alliance to share their resources and flying routes to beat the economic downturn.

Asked if the decision was taken to sack the employees because of alliance, Goyal said, “It has nothing to do with alliance. Alliance is a separate thing. A steering group has already being constituted and it is working for rationalisation of routes and other things.”

Goyal, however, evaded all the questions on whether the sacked employees were from JetLite, a company that was created after the acquisition of Air Sahara, or the political pressure including that from the government.

India’s Aravind Adiga defies odds to win

India’s Aravind Adiga defies odds to win Man Booker prize 2008 :

Beating predictions by bookies and others, debutant Indian novelist 33-year-old Aravind Adiga’s book “The White Tiger” was on Wednesday declared the winner of the prestigious Man Booker Prize for Fiction for 2008.

Adiga beat favourite Sebastian Barry to take the 50,000 pound (USD 47,000) prize.

The other authors in the shortlist were Amitav Ghosh, Steve Toltz, Linda Grant and Philip Hensher.

Adiga’s novel was described as a “compelling, angry and darkly humorous” novel about a man’s journey from Indian village life to entrepreneurial success. It was described by one reviewer as an “unadorned portrait” of India seen “from the bottom of the heap”.

Adiga, who wanted to be a novelist since he was a boy, was born in Madras (now known as Chennai) and now lives in Mumbai.

He becomes the fifth Indian author to win the prize, joining V S Naipaul, Salman Rushdie, Arundhati Roy and Kiran Desai who won the prize in 1971, 1981, 1997 and 2006 respectively.

In addition, “The White Tiger” is the ninth winning novel to take its inspiration from India or Indian identity.

His book, “The White Tiger”, has been published by Atlantic Books and has already won rave reviews.

Michael Portillo, chairman of the judges, said: “In many ways it was the perfect novel.

The judges found the decision difficult because the shortlist contained such strong candidates. In the end, The White Tiger prevailed because the judges felt that it shocked and entertained in equal measure.

Peter Clarke, Chief Executive of Man Group PLC, presented a cheque of 50,000 pounds to Adiga at a gala dinner in the Guildhall in London.

Michael Portillo, Chair of the judges, said “The judges found the decision difficult because the shortlist contained such strong candidates. In the end, The White Tiger prevailed because the judges felt that it shocked and entertained in equal manner.”

“The novel undertakes the extraordinarily difficult task of gaining and holding the reader’s sympathy…dealing with pressing social issues and significant global developments with astonishing humour.”

Each of the six shortlisted authors, including the winner, receives 2,500 pounds (USD 4,357) and a designer-bound edition of their book.

The judging panel for the 2008 Man Booker Prize for Fiction comprised: former MP and Cabinet minister Michael Portillo, editor of Granta Alex Clark; novelists Louise Doughty, founder of Ottakar’s bookshops James Heneage and Hardeep Singh Kohli, a TV and radio broadcaster.

Sensex tanks over 680 points in opening trade

The Bombay Stock Exchange benchmark Sensex plunged by over 680 points in early trade on Wednesday following melting global stock markets on deepening worldwide financial crisis.

The 30-share index, which had lost nearly 1,360 points in the last three sessions, plummeted by 682.82 points at 11,012.42 due to heavy sell-off by foreign funds in the stocks of capital goods, metals, banking and oil and gas sectors.
The National Stock Exchange index Nifty tumbled by 200.80 points to 3,405.80 with all the heavy-weight stocks trading in the negative zone.
Marketmen said apart from sharp losses in the global stock markets, depreciating Indian rupee against the US dollar too dampened the trading sentiments.
Indian rupee fell by 37 paise to 48.28 against the dollar in early trade on the Forex market on Wednesday.
Stocks which dragged the BSE barometer down are Larsen and Toubro, BHEL, Tata Steel, Reliance Industries, Reliance Infra, Rcom, ICICI Bank, HDFC Bank, State Bank of India, Bharti Airtel, Infosys Technologies, Satyam Computers, Tata Consultancy, Wipro, Grasim Industries, ACC and HDFC Ltd.
Meanwhile, Hong Kong and Japanese shares plunged nearly 5 percent each in early trade.
The US Dow Jones Industries lost more than 500 points to 9,447.11, its lowest close in five years.