Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
INDIA COUNTRY BRIEF 111010 Basic Political Developments The 38-day nationwide 'Jana Chetna Yatra' of L K Advani will start tomorrow from Chapra in Bihar. Santosh Hegde on Monday disapproved Anna Hazare's anti-Congress stance in the Hisar bypolls. Tension prevailed at a private college in Hyderabad as Telangana activists attacked it demanding its closure. The West Bengal Congress has named MLA Ajoy Dey and a 15-member committee that will monitor the Centre's flagship programmes in West Bengal. CBI registered a first information report (FIR) against Dayanidhi and his brother and Sun Network managing director Kalanithi Maran in the Aircel-Maxis deal. National Economic Trends Ratings agency Crisil on Monday lowered its projection of India's economic growth in the 2011-12 financial year to 7.6 per cent from its earlier estimate of 8 per cent on account of the deteriorating domestic investment climate and global economic uncertainty. The Government wants to borrow more in the second-half of this financial year. Business, Energy or Environmental regulations or discussions Some of India’s biggest and most-respected entrepreneurs have released an open letter to the government. The group which includes Wipro’s Azim Premji, Anu Aga of Thermax and HDFC's Deepak Parekh, refers to the anti-corruption Lokpal Bill that is meant to be introduced soon in Parliament. The industrialists write, “The Lokpal Bill is only one small but critical step in the national task of weeding out the plague of corruption in India. Private equity deals in India are likely to slow down due to a recent industry guideline that restricts exit options for foreign investing entities. GE Energy Financial Services and clean energy developer Greenko Group Plc today announced a venture to develop wind energy projects with a combined investment of USD 115 million in the country. Activity in the Oil and Gas sector (including regulatory) Oil and Natural Gas Corp (ONGC) has said its net profit will drop by over 47 per cent to below Rs 10,000 crore this fiscal if the government forces it to shell out a higher fuel subsidy. Militant Activity/Terrorism Coimbatore) (Particularly in Bangalore, Mumbai, Noida, Chennai, The Supreme Court on Monday suspended the death sentence awarded to Pakistani terrorist Ajmal Kasab in 26/11 Mumbai attack case. The CPI-Maoist has called all India general shut down on October 11. The arrest of two PLA cadres in New Delhi has busted the link of Maoists with northeast rebels and procures consignment of sophisticated weapons from China. Labor/Social Unrest At least four farmers were killed and over a dozen injured in Assam on Monday after police opened fire to disperse a mob of jute cultivators. The operations of state-owned Coal India Limited (CIL) in Orissa were hit on Monday by a one-day strike called by its major workers unions. Striking employees of Maruti Suzuki have seized control of a factory hit by weeks of labour unrest. Full Text Basic Political Developments Advani's rath to roll for nationwide Jan Chetna Yatra http://www.uniindia.com/ New Delhi, Oct 10 (UNI) The 38-day nationwide 'Jana Chetna Yatra' of BJP stalwart L K Advani to awaken the people against corruption and clean leadership will start tomorrow from Chapra in Bihar. The BJP has been claiming that the six-phase 7600 km nationwide yatra, which will criss cross nearly 100 districts in 23 states and Union Territories, will decide political agenda of the country. Bihar Chief Minister and Janata Dal (United) leader Nitish Kumar will flag off the yatra. For the first time, the BJP's yatra will touch Arunachal Pradesh and Assam. The octogenarian leader will commence the yatra at 1000 hrs each day and wind up at 2200 hrs touching 100 districts of the country. The yatra will conclude with a rally in Delhi on November 20. BJP general secretary Ananth Kumar will be Mr Advani's ‘sarathi' charioteer) during his journey. Mr Kumar said the yatra would be carried out with the participation of the people and austerity. BJP spokesman Ravishankar Prasad is also a part of the entire yatra which has a control room in New Delhi. Mr Advani yesterday said he would focus on corruption, price rise and poverty in his speeches during his journey. "During this journey, I will speak against corruption, I will speak against price rise. I will mention about the massive poverty despite 60 years of Independence, but I will speak maximum against black money stashed in the foreign banks," the BJP veteran said. Anna Hazare's anti-Congress stance incorrect: Justice Hegde http://www.rediff.com/news/slide-show/slide-show-1-anna-hazare-s-anti-congressTeam Anna member Santosh Hegde on Monday disapproved Anna Hazare's anti-Congress stance in the Hisar bypolls, saying campaigning against a political party is not correct. Speaking to PTI in Bengaluru, the former Supreme Court judge said every political party has "good and honest people" and targeting an outfit as a whole is not correct. He said he is opposed to such an idea (campaigning against a party). "The (use of) word Congress is wrong according to me. But to campaign against a corrupt person or group of persons (is fine) -- not a party....certainly not a party...because every party has good people..honest people," the former Karnataka Lokayukta said. Hazare has appealed to the electorate in Hisar not to vote for Congress and other parties who have not given letters assuring their support to Jan Lokpal Bill. Telangana protestors attack Hyderabad college http://ibnlive.in.com/news/telangana-protestors-attack-hyderabad-college/191754-62-131.html Hyderabad: Tension prevailed at a private college in Hyderabad as Telangana activists attacked it demanding its closure while the parents of students staged a protest asking the management to keep it open. Protestors pelted stones at the NRI College in Kukatpally, damaging its window panes. They were demanding that the management shut the college in view of the ongoing general strike in Telangana for a separate state. Earlier, parents of students staged protests outside the college, demanding that the management run classes. They voiced concern over the future of their children who have already lost classes for a month. The protestors, who had a heated argument with the parents, pelted stones on the college building. Police used batons to disperse protestors, eyewitnesses said. Confusion prevailed on Monday among students over whether schools and colleges would open after Dussehra holidays. The parents' association of the same college had on Sunday held a meeting demanding that the Telangana Joint Action Committee (JAC) exempt educational institutions from the strike. Utter confusion prevailed on Monday among students over whether schools and colleges would open after Dussehra holidays. A large number of students were seen returning from schools as the managements decided not to run the classes in view of JAC's call to all educational institutions to remain closed. In Kukatpally, where a large number of residents hail from coastal Andhra and Rayalaseema regions, some schools opened amid tight security provided by police. However, the majority of colleges and schools, especially those run by institutions from Andhra, remained shut in the twin cities of Hyderabad and Secunderabad. All government-run educational institutions in Hyderabad and nine other districts of Telangana also remained closed as over 120,000 teachers continued the strike seeking a separate state. The educational institutions are closed in the region for nearly a month as teachers have joined hands with other government employees in the people's strike. West Bengal: Congress names Mamata detractors http://indiatoday.intoday.in/story/congress-mamata-banerjee-ajoy-dey-deepadasmunshi/1/154401.html Trinamool Congress chief Mamata Banerjee.In a move that is certain to anger Mamata Banerjee, the Congress has named MLA Ajoy Dey and known detractors of the chief minister like Deepa Dasmunshi to a 15-member committee that will monitor the Centre's flagship programmes in West Bengal. This is expected to complicate matters with the Trinamool Congress. The state government has not fared well in implementing schemes connected with the rural health mission, the urban renewal mission, the right to education and the rural jobs scheme. The committee is expected to submit its assessment every quarter to the Congress high command, an exercise which will surely make the CM fume. Party, family desert Dayanidhi Maran as CBI conducts raids http://timesofindia.indiatimes.com/india/Party-family-desert-Dayanidhi-Maran-as-CBI-conductsraids/articleshow/10299728.cms CHENNAI: As CBI sleuths continue raiding the residence of former Union minister Dayanidhi Maran and six other places including Sun TV's office in Chennai, the Maran brothers stand deserted by the DMK and the Karunanidhi family. The raids started at 7am on Monday after the CBI registered a first information report (FIR) against Dayanidhi and his brother and Sun Network managing director Kalanithi Maran in the Aircel-Maxis deal. A team led by assistant superintendent of police Ravi Gambhir from Delhi and six other officers including a woman officer went to Dayanidhi Maran's house at 7.15am. The security guard at the gate refused to let them in. After 20 minutes, the officials barged into the house when the gate was opened to let in a maid. Maran doesn't appear to have the sympathies of the party leaders or members of the Karunanidhi family. While Karunanidhi's elder son M K Alagiri has been openly against Maran, Karunanidhi's younger son M K Tamilarasu is the only person who went to Maran's place on Monday. Party functionaries kept away from the place. Party president M Karunanidhi and treasure M K Stalin are in Trichy for the local body poll campaign. "We passed on the message to Thalaivar (leader) in the morning as soon as he reached Sangam Hotel in Trichy. He just received the message with a smile," a former DMK minister told TOI. Earlier Karunanidhi had commented that Maran has the capacity to face the matter on his own. Sources said Karunanidhi is unlikely to spring to Maran's defence. "The DMK has suffered a lot because of Dayanidhi Maran. Thalaivar feels that he is the main reason for many damages. So he will watch the developments silently" said a senior DMK MP. Sources said Kalanithi Maran and his wife Kavery Kalanithi Maran had been in Delhi in the last week. "Kalanithi's children came to Chennai this morning and they have gone to school. We don't know where the boss is," a driver said. National Economic Trends Crisil cuts India GDP growth forecast for FY12 to 7.6% Press Trust of India, October 10, 2011 ( New Delhi ) http://profit.ndtv.com/news/show/crisil-cuts-india-gdp-growth-forecast-for-fy12-to-7-6-182581 Ratings agency Crisil on Monday lowered its projection of India's economic growth in the 201112 financial year to 7.6 per cent from its earlier estimate of 8 per cent on account of the deteriorating domestic investment climate and global economic uncertainty. "The forecast has been scaled down in view of the deteriorating global economic scenario and the grim investment climate in India on account of the policy environment," Crisil said in a statement. The forecast for the Indian economy is based on the assumption that developed economies will witness a slowdown, but another recession will be averted, it said. In May, Crisil had projected the economic growth rate of the country in FY'12 at 7.7-8.0 per cent. During the first quarter of the current fiscal, the Indian economy grew by 7.7 per cent. "While we had anticipated the impact of rising interest rates and slowing government expenditure, the deceleration in advanced countries has been sharper than expected. This, in conjunction with the weak investment climate, is impacting India's GDP growth prospects. We now project the Indian economy to grow at 7.6 per cent in 2011-12," said Crisil Managing Director Roopa Kudva. The industry is projected to grow at a slower rate of 6.5 per cent in 2011-12, as against the previous forecast of 7.3 per cent. Besides the adverse impact of interest rate hikes, regulatory hurdles in the mining sector (an important source of raw material) are likely to hamper industrial activities. The slowdown in the industrial sector is expected to spill over to services and will affect sectors such as trade, hotels and investment-led services like banking, she said. "Overall, we now expect services to grow at 9.2 per cent this year as compared to our previous estimation of 9.4 per cent. Normal monsoons and good sowing, however, have led us to upwardly revise the agricultural GDP forecast for 2011-12 to 3.2 per cent from 2.7 per cent," she added. In addition, Crisil's WPI inflation forecast for 2011-12 has been revised upward to 9.1 per cent from the earlier projection of 8.0-8.5 per cent. "Inflation in the first five months of the current fiscal, at 9.6 per cent, has surged past our earlier expectations," Kudva said. In addition, Crisil said the recent rupee depreciation will limit the positive impact of a decline in commodity and oil prices. Crisil has also revised its outlook for the rupee to 45-46 per US dollar by March, 2012, from the earlier projection of Rs. 43-44/USD per dollar. According to Crisil Chief Economist Dharmakirti Joshi, the worsening global outlook and the consequent risk aversion in emerging markets has affected FII inflows into India, thereby reducing the supply of US dollars in the country. Simultaneously, rising repayment pressure on external debt held by the private sector has led to increasing demand for US dollars. The ensuing imbalance has necessitated the change in the rupee outlook, it said. If there is no double-dip in advanced countries, FII inflows may pick up in the early part of 2012, as risk appetite for investment in emerging markets will return. This would help strengthen the rupee, it added. Government's apathy to small savings schemes http://www.thehindu.com/business/Economy/article2523378.ece The Government wants to borrow more in the second-half of this financial year. Thus, fiscal slippage has come to the centre stage along with the discussions on controlling inflation. Spiraling and unabatedly continuing inflation is a concern. But fiscal indiscipline will very much exacerbate inflation. The reasons the government cited for this was due to lower-than-expected cash surplus at the start of the financial year and also on account of revenue shortfall under the National Small Savings Fund (NSSF). Even though the government indicated that its fiscal deficit calculations remain unchanged, one of the major sources of the budget deficit — considered at the time of the last Union Budget — was small savings schemes of the government. A report of the Finance Ministry released recently said that net small savings deposits turned negative in the first quarter of 2011-12 and it has impacted government's cash management. Interestingly, interest rates of many savings schemes offered by the government were static since 2003, while bank deposit rates moved up many folds. Various types of small savings schemes offer interest rates between 3.5 per cent and 8.40 per cent. The only scheme which offers a higher interest rate is the 5-year Senior Citizens' Savings Scheme (SCSS) which offers 9 per cent. However, for senior citizens, many public sector banks are offering much higher rates, adding another 25-50 basis points. Further the government's borrowing programme surprised markets. The government announced its borrowing programme for the second-half of the current fiscal which was higher by Rs.52,900 crore over the market expectations. Yields of the benchmark 10-year Government Securities (GSec) had been in the range of 8.28-8.35 per cent till recently. After the announcement of higher borrowing programme by the government, the yields of the 10-year government bonds have shot up by 10 basis points to close at 8.44 per cent in the previous week. Last week, it moved up further to close at 8.55 per cent against 7.93 per cent a year ago. The 5-year G-Sec also was at 8.33 per cent last Friday against 7.75 per cent a year ago. The deposit rates now hover around 8.50-9.25 per cent as compared to 7-8 per cent a year ago. However, some banks offer higher fixed deposit rates which are floating between 9.50 per cent and 10.50 per cent for various maturities. The Prime Lending Rates (PLRs) charged by various banks remain almost static as compared to one year ago at 11-15.75 per cent. The rate for savings bank account had also been revised by the Reserve Bank of India from 3.50 per cent to 4 per cent in May 2011, when it announced Monetary Policy for 2011-12. However, the gap between savings bank rate and other bank rates have been widened significantly. In tandem with rising interest rates, Call Money rate, which is an overnight rate, has also moved up to 8.05 per cent from 5.75 per cent around the same period in 2010. Meanwhile, headline inflation in August accelerated to 9.78 per cent, its highest in more than a year, from 9.22 per cent in July. Weekly food inflation as on September 24 accelerated to 9.41 per cent from 9.31 per cent in the previous week. Fuel price inflation moved up to 14.69 per cent as per the latest data of the government. Clearly, the high interest rates being offered by banks make people move out of the small savings schemes. The Shyamala Gopinath Committee on Comprehensive Review of National Small Savings Fund recommended to the government a positive spread of 25 basis points, vis-àvis government securities of similar maturities with a few exceptions, “taking into account the interests of small savers, and in view of the absence of social security among the unorganised sections of the society, as also the liquidity augmenting measures for various instruments”. Exceptions are recommended only in the case of 6-year National Savings Certificate (NSC) and SCSS. The Committee notes that NSC cannot be withdrawn before maturity, which affects its liquidity. Keeping in view the longish tenor of the 6-year NSC and the absence of liquidity, the Committee favours a higher illiquidity premium of 50 basis points (instead of 25 basis points as in the case of other instruments). As regards SCSS where the rate of interest is currently fixed at 9 per cent, the Committee recommended a spread of 100 basis points over and above the secondary market yield of government securities of similar maturity. The Committee, which had given its report in June to the government agrees with the recommendations of the Reddy (2001) and Rakesh Mohan (2004) committees that the secondary market yields on Central Government securities of comparable maturities should be the benchmark for various small savings instruments (other than savings bank deposits, which do not have a fixed maturity). The Shyamala Gopinath Committee also recommended various measures to improve liquidity, flexibility in revising rates and maturities as well as making schemes more attractive for small savers. The government's apathy towards small savings schemes is clear. If the authorities make the small savings schemes more attractive, more funds will come through this government channel. The government had borrowed Rs.2.50-lakh crore in the first-half of 2011-12 out of the announced dated borrowing programme for the fiscal at Rs.4.17-lakh crore. Taking these figures into consideration, the market was expecting the Reserve Bank of India to announce a dated borrowing programme of Rs.1.67-lakh crore for the second-half of the current fiscal. But the government announced a dated borrowing programme of Rs.2.20-lakh crore, or around Rs.52,900 crore in excess of the anticipated amount. If small savings collections do not improve by the financial year end, the government has to resort to another bout of borrowing. This will make the central bank's position further difficult while shaping its monetary stand for the year 2012-13. Business, Energy or Environmental regulations or discussions DIPP's new rule restricts exit options may hit PE deals for foreign investing entities http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/dipps-new-rulerestricts-exit-options-may-hit-pe-deals-for-foreign-investing-entities/articleshow/10295019.cms MUMBAI: Private equity deals in India, one of the fastest growing markets in the world, are likely to slow down due to a recent industry guideline that restricts exit options for foreign investing entities. Since the new policy issued on September 30, by the Department of Industrial Policy and Promotion (DIPP) would effectively cover all transactions between Indian and foreign entities, joint venture arrangements could also likely come under its ambit. The DIPP, through the initiative, has aimed at revising the foreign direct investment policy on the use of put and call options. Under this consolidated FDI policy, which is effective from October 1, instruments with built-in options of any type would not qualify as an eligible instrument of FDI. Any equity instrument issued by an Indian company and subscribed by any foreign entity which allows the foreign firm to exit the arrangement through a buyback or through put and call option, will be treated as external commercial borrowing (ECB), says the department. Since ECBs are subject to caps and limits, such a move would restrict all foreign companies from exiting ventures, which will discourage any foreign investor. "It is a significant setback for most private equity transactions where the investor is a foreign entity," said the head of a large international private equity firm that has significant investments in Indian infrastructure projects. Most large private equity firms that ET spoke to were concerned about the impact the policy would have on all deals and did not want to comment. Most of the world's large PE firms have a presence in India. The firms include marquee names like Blackstone, Goldman Sachs, Actis, 3i, Bain & Co. Typically, all agreements between resident companies and non-resident entities invariably include the option that allows the foreign entity to exit or for the Indian company to buy out the foreign investment. "It can be termed the single biggest deterrent for private equity transactions," said Punit Shah, partner, tax and regulatory services at KPMG. "In an economy like India where exit options are very limited, including IPOs, such a step would adversely impact the FDI flows into the country," he added. The DIPP guidelines were issued at a time when the Reserve Bank of India raised concerns about foreign investors exiting through the put option route. According to people familiar with the framing of the guidelines, the DIPP move was aimed at reining in transactions in real estate that came under the garb of FDI-compliant investment, but were actually ECBs. "It is a big impediment for foreign investors," says Bharat Banka, CEO of Aditya Birla Private Equity. "Most PE deals will now not be concluded, but will be deferred," he added. While the policy does not clearly mention whether it would apply to previous deals, senior executives of PE firms that ET spoke to said that policy would 'grandfather' past deals, implying that it will apply only to future transactions. GE, Greenko announce USD 115 mn wind energy venture in India http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/ge-greenkoannounce-usd-115-mn-wind-energy-venture-in-india/articleshow/10301952.cms BANGALORE: GE Energy Financial Services and clean energy developer Greenko Group Plc today announced a venture to develop wind energy projects with a combined investment of USD 115 million in the country. The GE unit would invest USD 50 million - its first renewable energy investment in India - to support the development of 500 MW of wind projects out of Greenko's planned development of 1 GW of wind projects in India. Greenko has committed USD 65 million for the venture, a newly created subsidiary of Greenko, known as Greenko Wind Project Private Limited. "This investment expands GE's presence in one of the world's fastest growing power markets with a local, proven renewable energy developer," Raghuveer Kurada, Managing Director and leader of India at GE Energy Financial Services, said. Greenko is currently developing a pipeline of wind projects in Maharashtra, Andhra Pradesh, Karnataka and Rajasthan, which the new venture, an Indian holding company and Greenko subsidiary specifically set up to develop wind projects, would own. The first project, the 65-MW Ratnagiri wind farm in Maharashtra, is planned for completion in December and would use GE's 1.6-MW turbines. The wind turbines, specifically designed for low and medium wind speeds, would be assembled at GE's facility in Pune. "Once operational, a 500-MW wind portfolio could generate enough renewable electricity to power 8,75,000 average Indian households and displace 7,00,000 tonnes per year of greenhouse gas emissions," a GE statement said. "Wind power is an increasingly important part of the Indian energy market, and through our partnership with GE, a global energy leader, we are well positioned to play an important role in helping to meet the country's energy needs with clean power using advanced technology," Anil Kumar Chalamalasetty, CEO and Managing Director of Greenko, said. India Inc write second open letter to govt about corruption NDTV Correspondent, October 10, 2011 (New Delhi) http://profit.ndtv.com/news/show/india-inc-write-second-open-letter-to-govt-about-corruption182583 Some of India’s biggest and most-respected entrepreneurs have released an open letter to the government. The group which includes Wipro’s Azim Premji, Anu Aga of Thermax and HDFC's Deepak Parekh, refers to the anti-corruption Lokpal Bill that is meant to be introduced soon in Parliament. The industrialists write, “The Lokpal Bill is only one small but critical step in the national task of weeding out the plague of corruption in India. This draft Lokpal Bill is intended to address episodic corruption, but is unlikely to have any significant impact on the day-to-day corruption which is insidious and demeaning. In January, the same group made headlines with its first letter which alerted the leaders of the country to a “growing governance deficit” and “galloping corruption.” The entrepreneurs had offered to periodically share suggestions with politicians and the government. The new note follows that lead. With India hurtling from news of one massive swindle to another, all of them involving bureaucrats, politicians and practitioners of power, the industrialists write, “It is acknowledged that a strong nexus exists between certain corporates, politicians, bureaucrats and power brokers. This is one of the greatest threats for the Indian economy.” The letter refers to the UK’s recent enactment of the ‘The Bribery Act, 2010’ which makes it illegal to offer and receive bribes; it also penalises failure to prevent bribery. India Inc says the Act “extends culpability to the highest levels in an accused corporation. Only if timely and punitive action is taken against both, the giver as well as the receiver of the bribe, will the fight against ground level corruption be won effectively.” In addition to asking for specialized and fast-track courts to ensure that complaints against corruption are dealt with quickly and effectively, the letter asks for land, judicial, electoral and police reforms. “It is imperative, however, that legislative reforms be constructively and constitutionally debated in a time-bound and orderly manner and not in uncivil and hostile environments. Disruption, both in the Parliament and outside is socially debilitating and erodes public confidence,” the note warns. India Inc also makes the point that the delay in environmental clearances is affecting investment in the country. The group writes, “It is worthwhile considering the introduction of an on-line auction process for allocation of natural resources.” Activity in the Oil and Gas sector (including regulatory) ONGC says net profit to dip below Rs 10,000 crore this fiscal http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/ongc-says-netprofit-to-dip-below-rs-10000-crore-this-fiscal/articleshow/10301341.cms NEW DELHI: State-owned Oil and Natural Gas Corp (ONGC) has said its net profit will drop by over 47 per cent to below Rs 10,000 crore this fiscal if the government forces it to shell out a higher fuel subsidy. Upstream oil firms, led by ONGC, traditionally bear one-third of the actual revenue that retailers lose on selling diesel, LPG and kerosene at government-controlled prices. But this year, the share of upstream companies would not be based on the actual underrecoveries, or revenue losses, of retailers. Rather, they would be based on the projected notional under-recoveries that existed before the June fuel price increase and duty cuts. At a $110 per barrel crude oil price, the revenue loss before the June price hike was estimated at Rs 171,140 crore, while at today's prices, it stands at around Rs 121,140 crore. ONGC, in a letter to the Oil Ministry, said the one-third share of upstream companies as per the June estimates works out to Rs 57,041 crore, of which ONGC's share would be Rs 47,361 crore. But if current estimates, are taken the upstream share would be Rs 40,380 crore (Rs 33,528 crore of ONGC). The company gives discounts on the crude oil it sells to Indian Oil, Bharat Petroleum and Hindustan Petroleum to part- meet the revenue loss retailers incur on subsidised fuel sales. "In such a scenario (where upstream firms are asked to pay one-third of the projected underrecoveries in June), the price realisation of ONGC would be $41.27 per barrel," it wrote. ONGC said it expects to register a net profit of Rs 15,000 crore in the 2011-12 fiscal, based on a net crude oil price realisation of $55 per barrel. "In case realisation is of the order of $40 per barrel, the profit-after-tax would be below Rs 10,000 crore." It had in 2010-11 reported a net profit of Rs 18,924 crore. ONGC said a lower profit would hurt its Rs 30,000 crore planned capital expenditure and also impact plans to provide another Rs 7,500 crore in financial support to its overseas subsidiary in 2011-12. Stating that it normally caters to investment plans from its internal resources, it said even at a net profit of Rs 15,000 crore, the company faced a shortfall of about Rs 12,500 crore in meeting its planned expenditure and assistance to ONGC Videsh Ltd in FY'12. "However, in case ONGC's net realisation for 2011-12 works out to $40 per barrel, ONGC's profit-after-tax is expected to fall down below Rs 10,000 crore and the deficit would increase to Rs 17,500 crore," it wrote. ONGC had in 2010-11 paid Rs 24,892 crore out of the total upstream fuel subsidy share of Rs 30,297 crore. In the first quarter of current fiscal, it paid Rs 12,046 crore to compensate for fuel subsidies. Militant Activity/Terrorism Coimbatore) (Particularly in Bangalore, Mumbai, Noida, Chennai, Supreme Court stays Ajmal Kasab’s death sentence http://www.thehindu.com/news/article2525662.ece?homepage=true The Supreme Court on Monday suspended the death sentence awarded to Pakistani terrorist Ajmal Kasab in 26/11 Mumbai attack case, saying that it would like to hear his plea challenging capital punishment at length as “due process of law” has to be followed, even though many feel that the appeal should be outrightly “rejected”. While staying Kasab’s death sentence and agreeing to deal with the appeal expeditiously, a special bench of justices Aftab Alam and C. K. Prasad also permitted him to amend his Special Leave Petition and furnish additional grounds to challenge the sentence awarded to him by the special court and confirmed by the Bombay High Court. While staying the execution, the bench also complimented senior counsel and amicus curie Raju Ramachandran for taking up the 2008 terror attack case and agreeing to assist the court. “In our country many people are of the view that the appeal should be rejected (outrightly) and should not be heard at all but we are happy that you have decided to assist the court as amicus,” the bench told Mr. Ramachandran. It said it would like to hear the matter at length “as the rule of law is supreme in the country and the due process of law has to be observed“. Agreeing with the bench’s view, former Solicitor General Gopal Subramaniam, appearing for the Maharashtra government, said despite the magnitude of the terror attack, the due process of law has to be maintained and the matter needed to be dealt with expeditiously. He submitted that all documentation and translation work relating to the trial court and the High Court have been completed and as such the apex court may deal with the appeal in an expeditious manner. The court agreed that it would deal with the appeal in an expeditious manner. Maoists hold meet in Agency http://www.thehindu.com/news/cities/Visakhapatnam/article2525041.ece The CPI (Maoist) organised a meeting during the weekly shandy at Korukonda in the Visakha Agency on Sunday, where they wanted people to support and participate in the Bharat bandh they called on October 11. Maoists gave the bandh call to protest against the “arrest” of one of its top leaders and member of the Andhra-Orissa border special zonal committee Damodar alias Azad 15 days ago by the Andhra Pradesh police on the Andhra-Orissa border. Narendra, leader of the Korukonda area committee of the CPI (Maoist), said during the meeting that there was a possibility of Damodar being killed in custody and demanded that the police produce Damodar in court. He warned that the government would pay a heavy price if Damodar was not produced in court. Naxal plan to procure Chinese arms foiled http://www.asianage.com/india/naxal-plan-procure-chinese-arms-foiled-779 Oct 10, 2011 - MANOJ ANAND | Age Correspondent| GUWAHATI.Share ..The arrest of two PLA rebels in New Delhi has not only busted the link of Left wing Maoist groups with northeast rebels but also foiled their attempt to procure consignment of sophisticated weapons from China through northeast separatist groups. Disclosing that security agency was following self-style captain of PLA Wangba, alias N. Dilip Singh, and Lt. Arun Kumar Singh Salam for past several weeks, the authoritative security sources, however, said that their one of the important linkman managed to flee from its hideout in Maharashtra’s Pune. Informing that security forces are still trying to apprehend the PLA rebel who managed to escape from Pune, security sources said that PLA captain Wangba has confessed to have received about `20 lakhs from Maoists to supply sophisticated weapons available with northeast rebels in their hideout in Burma. Wangba also visited Dantewara in Chhattisgarh besides Jharkhand where he had meeting with Maoist leader Kihshenji. Asserting that arrest of duo has shattered the link between Maoist and Manipur’s PLA, security sources said that Mr Wangba was key man who was coordinating training of Maoist cadres in Burma camps. Claiming that a group of Maoist rebels have already been imparted training at Burma camp of PLA, security sources said that Wangba was in process of coordinating training for a new batch. Referring that left-wing Maoist had signed a joint declaration with PLA in 2008 to develop a working relationship between the two organisations, security sources pointed out that since then Wangba who was also the in charge of external affairs of PLA was in touch with Maoist and coordinating various kind of help to each others. Wangba had recently shifted his hideout from Guwahati to New Delhi. Apart from arms and ammunition, Wangba was also supplying high-tech communication equipment to Maoists. . Labor/Social Unrest Four Assam jute farmers killed in police firing http://zeenews.india.com/news/north-east/four-assam-jute-farmers-killed-in-policefiring_735864.html Guwahati: At least four farmers were killed and over a dozen injured in Assam on Monday after police opened fire to disperse a mob of jute cultivators who were enforcing a road blockade to demand better prices for their produce. A police spokesperson said that about 500 jute farmers resorted to a highway blockade near Besimari in Darrang district, about 80 km north of Assam's main city of Guwahati. "The protestors pelted stones and attacked a security team that went to clear the road blockade. The situation turned violent and that prompted police to open fire," a senior police official said. Four farmers were killed and about 15 people injured, including six policemen. "The injured were shifted to local hospitals with multiple injuries," the official said. Witnesses said the protestors attacked security personnel using crude implements and that led the police to open fire. "The situation is under control, but tense. Additional reinforcements have been rushed to the area," the official said. A bumper jute harvest this year has added to the woes of farmers and in the absence of a market to sell their produce, the cultivators were demanding government support to sell their produce. "We were demanding that the government should create some mechanism to help the farmers to sell our produce. But persistent demands failed, so we resorted to the road blockade," Abdul Hamid, a jute farmer, said. "The police firing was uncalled for as they first tried to chase us by caning and that infuriated the protestors." Strike hits Coal India mines in Orissa http://profit.ndtv.com/news/show/strike-hits-coal-india-mines-in-orissa-182564 The operations of state-owned Coal India Limited (CIL) in Orissa were hit on Monday by a oneday strike called by its major workers unions, an official said. There was no mining or transportation of coal from the two fields run by Mahanadi Coalfields Ltd (MCL), a CIL subsidiary. Workers skipped work at all the mines in the Talcher coalfield area in Angul district and IB Valley Coalfield area in Jharsuguda district. "The raising and transportation have been totally stopped," Mahanadi Coalfields Ltd (MCL) public relations officer Dikken Mehera said. The daily output at CIL's Orissa mines is estimated at 300,000 tonnes. Monday's strike will cause a loss of about Rs.18 crore, he added. Five leading unions of CIL -- the Congress-backed Indian National Trade Union Congress (INTUC), the Left backed CITU and AITUC, the Hind Mazdoor Sabha and the Bharatiya Janata Party (BJP)-backed Bharatiya Mazdoor Sangh, have joined the strike. The unions have been demanding Rs.25,000 as productivity-linked bonus or ex-gratia this year, but the management offered only Rs.17,000. Other demands include early wage revision. Maruti workers seize control of Manesar plant wracked by unrest http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/maruti-workersseize-control-of-manesar-plant-wracked-by-unrest/articleshow/10301308.cms MUMBAI: Striking employees of Maruti Suzuki, India's biggest carmaker, have seized control of a factory hit by weeks of labour unrest, the company said on Monday, as a stand-off that has cost the firm over $150 million descended into violence. Workers attacked managers and supervisors and damaged equipment at the Manesar plant, Maruti said, shutting down production for a third consecutive day as the company battles slowing demand in Asia's third-largest economy. "The plant is effectively captive in the hands of striking workers who are bent upon violence," the company said in a statement, describing the situation at the factory as "grave." Maruti has said it would not compromise with the workers who began their initial strike on August 29 after refusing to sign a discipline agreement ordered by the company following accusations of workers deliberately sabotaging car production. A spokesman for the Maruti Suzuki Employees Union (MSEU), the body co-ordinating the unrest that is not recognised by the company, was not reachable for comment on Monday. But the union has repeatedly denied sabotaging production. "What we are demanding is that the casual workers should be taken back," MSEU executive member Sushil Kumar said on Saturday, referring to hundreds of part-time workers fired by Maruti during the unrest. Maruti, 54.2-percent owned by Japan's Suzuki Motor, said 1,500 workers were inside the factory on Monday. The plant produces about 1,000 vehicles a day and the unrest has caused a production loss of 2,600 cars since Friday afternoon. Supporting strikes by workers at other Suzuki-owned plants in India that supply parts to Maruti's second car factory have resulted in a total loss of production of about $22 million. Maruti announced an agreement with striking workers last week to end a month-long strike that has already cost the automaker 6.6 billion rupees ($134 million) in lost output and contributed to a 21-percent slump in September sales. The carmaker's total losses due to labour unrest this year stand at close to $250 million, following a 13-day strike by 800 workers in June at Manesar that crippled production and caused more than $90 million in lost output. The continued unrest at Manesar comes as Indian carmakers reported a 1.8-percent drop in September sales, as rising interest rates and vehicle costs hurt demand in the world's secondfastest growing major auto market after China. "The company cannot throw out mobs of people," a Maruti spokesman said. "The action has to come from the police and the authorities." The strikes at the Manesar plant, which produces the popular Swift and A-Star hatchbacks, have also sparked unrest at Suzuki Powertrain India, which provides engines to Maruti. The unrest had reduced output at the plant to around 65 percent on Monday. Gunshots were fired by a labour contractor at a Suzuki motorcycle factory after workers there also downed tools to support the Manesar action, a Maruti spokesman said. Shares in the carmaker closed down 3.8 percent at 1,071 rupees ($21.79) on Monday, against a 2.2-percent rise in Mumbai's benchmark index . Maruti shares have fallen nearly 24 percent in 2011, underperforming a nearly 20-percent fall in the broader market.