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PM defends reforms, says money does not grow on trees
Views ::110 NEW DELHI: Prime Minister Manmohan Singh Friday defended his government's fresh economic reforms, saying these were needed to boost investor confidence domestically and globally.

In a nationally televised address, the prime minister accused the opposition of misleading the people and said the time had come to embrace "hard decisions" to revive the country's economy.

"The time has come for hard decisions. For this I need your trust, your understanding and your cooperation," he said, comparing the situation with what prevailed in 1991 when India embraced sweeping economic reforms.

"We are at a point where we can reverse the slowdown in our growth. We need a revival in investor confidence domestically and globally," he said. "The decisions we have taken recently are necessary for this purpose."

The prime minister's speech came hours after the Trinamool Congress quit his government over the decisions to hike diesel prices, cap the supply of cooking gas cylinders and allow FDI in multi-brand retail trade.

In his speech, Manmohan Singh defended all three decisions.

He said that subsidy on petroleum products had grown enormously, and would have been over Rs 200,000 crore this year.

"If we had not acted, it would have meant a higher fiscal deficit, that is, an unsustainable increase in government expenditure vis-a-vis government income.

"If unchecked, this would lead to a further steep rise in prices and a loss of confidence in our economy."

He said India had faced a similar situation in 1991 when "nobody was willing to lend us even small amounts of money".

"We are not in that situation today, but we must act before people lose confidence in our economy."

On the decision to limit to six the number of cooking gas cylinders a family can get in a year, the prime minister said "almost half of our people ... actually use only six cylinders or less".

"We have ensured they are not affected. Others will still get six subsidised cylinders, but they must pay a higher price for more," adding the price of kerosene, the poor man's fuel, remained unchanged.

Manmohan Singh denied accusations that allowing foreign direct investment in retail would hurt small traders.

He said that organised and modern retailing was already present in India and growing.

In Delhi, he said, despite the increasing number of shopping centres, there was a three fold increase in the number of small shops.

"The fear that small retailers will be wiped out is completely baseless."

Diesel price hike was needed to cover losses

Prime Minister Manmohan Singh said Friday a Rs.17 per litre hike in diesel price was needed to cover the losses and that the government only partially passed on the burden to the common people.

"We raised the price of diesel by just Rs.5 per litre instead of the Rs.17 that was needed to cut all losses on diesel," the prime minister said in an address to the nation.

The prime minister pointed out that much of diesel is used by big cars and sports utility vehicles (SUVs) owned by the rich and by factories and businesses.

"Should the government run large fiscal deficits to subsidise them," he asked.

The prime minister said taxes on petrol were reduced by Rs.5 per litre to prevent a rise in petrol prices.

"We did this so that the crores of middle class people who drive scooters and motorcycles are not hit further."

On the cap on subsidised LGP cylinders

On the decision to put a cap of 6 subsidised cylinders per year, Singh said, "Almost half of our people, who need our help the most, actually use only 6 cylinders or less. We have ensured they are not affected."

"We did not touch the price of kerosene which is consumed by the poor," he said.

He said despite the recent increase, diesel and cooking gas prices were lower in India than neighbouring countries like Pakistan, Sri Lanka, Bangladesh and Nepal.

"The total subsidy on petroleum products will still be Rs.160 thousand crore. This is more than what we spend on health and education together. We held back from raising prices further because I hoped that oil prices would decline," he said.
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Team Anna spilts , Is forming a political party a good idea for Team Kejriwal?
Views ::83 Team Anna splits, Anna tells Kejriwal faction not to use his name, photo for new party

Eighteen months after they came together to launch their anti-corruption movement, Anna Hazare and Arvind Kejriwal officially parted ways today. Opposing the decision of the Kejriwal-led group to form a political party, Hazare barred them from using his name or photograph.

Speaking to mediapersons at the end of the nine-hour meeting, Hazare said: �There is nothing wrong with fielding a political party but I will not be a part of it. It has my blessings and we will work towards the common goal of eradicating corruption. If they feel they can get a majority, it is a good thing, but they cannot use my photo or my name... The paths have been separated.�

Late in the night, Hazare met yoga guru Ramdev. However, no details were available on their meeting.

Hazare also rejected the �referendum� carried out by India Against Corruption (IAC) which reported huge support in favour of a political party. �I will tour the country and awaken the people... It is our misfortune that despite our best efforts the team is breaking up. I do not agree with the way the referendum was conducted, if the verdict was so clear, why call this meeting at all?� he said.

Hazare was flanked by Kejriwal, who refused to answer questions, and Kiran Bedi. According to IAC sources, of the 45 people who attended today�s meeting, only eight members opposed a political option, including Hazare, Bedi and Justice Santosh Hegde.

Earlier, Kejriwal had said that they would not launch a party without Hazare�s support. However, he declined to answer questions on this issue today.

Avoiding any reference to the meeting, Kejriwal later tweeted: �Country is on sale. It is passing through very difficult phase. I will do everything possible for me to save my country.�

Seeming to voice Team Kejriwal�s stand, Giriraj Kishore, former registrar of IIT-Kanpur, said: �There are allegations that we exploited Anna. The fact of the matter is that people who are accused of that have also made Anna Anna.�

Bedi tweeted: �Feel Anna was being expected to support political option when he was never inclined. Was it a case of misjudgement on the part of some?�
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After Mamata Banerjee exit, PM to address nation, trust vote likely
Views ::76 Governor discusses State issues with High Command New Delhi: Mamata Banerjee's ministers will meet the PM around 3 pm today to resign from his government over the new reforms he cleared last week. They will then head to Rashtrapati Bhawan where they will formally withdraw their letter of support to the ruling UPA coalition in which Ms Banerjee's Trinamool Congress was the second-largest ally. With his government reduced to a minority, the Prime Minister will most likely be asked by the country's President to seek a trust vote in Parliament.

This evening, he is expected to explain on television the economic measures for which he has staked his government. Even the opposition BJP concedes that he is likely to win his vote of confidence. The survival of the UPA depends on regional heavyweights Mulayam Singh Yadav and Mayawati, who provide external support to the government. So far, neither has indicated a change of heart, though Mr Yadav has warned that his party should not be taken for granted.

On Facebook last night, Ms Banerjee attacked the government for the notification it issued yesterday stating that its new policies for foreign investment in the retail sector are in effect. A week ago, Ms Banerjee said she would not accept either this or a hike in diesel prices and a cap on subsidised cooking gas for households. "Is it ethical, moral and democratic for a minority government to issue government order forcibly and hurriedly when massive protests against it are taking place across the country?" she posted on her Facebook page. (Read more)
The relationship status for the UPA and Ms Banerjee has for long been "It's complicated" with the chief minister often challenging the policies the government wanted to champion. Last year, when the cabinet first cleared 51 per cent foreign direct investment for multi-brand retail, Ms Banerjee threatened to quit the government, and the policy was shelved, provoking international criticism, and a loss of both face and investor confidence. This time around, the Prime Minister was resolute about standing his ground.

So though Ms Banerjee gave the government 72 hours of notice, creating a window for negotiations, no concessions were offered. The fact that the new retail guidelines were notified hours after she said she was sticking to her schedule for exiting the UPA was a clear message that the coalition was resigned to a future without her.

Agriculture Minister Sharad Pawar, whose party is another key member of the UPA, refuted Ms Banerjee's accusations that she hadn't been consulted about the new economic measures. He said that he was present along with Ms Banerjee at a meeting of senior leaders of the coalition when Dr Singh discussed FDI in retail. "Nobody was happy to do this...not even the PM....but it was required," Mr Pawar said.

Sources say that to appease other crucial partners like Mulyam Singh Yadav and Mayawati, the government is likely to announce a 50 paise rollback in diesel prices, and increase the quota of subsidised cooking gas cylinders per household from six to nine, and that the decision was not shared yesterday to prevent opposition parties who called a massive nationwide strike from claiming credit for the concessions.

Tags: diesel price hike, FDI, Mamata Banerjee, Sharad Pawar, UPA

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Mamata Banerjee withdraws support to UPA government
Views ::70 Trinamool Congress boss Mamata Banerjee on Tuesday, the second biggest constituent of the UPA, today dealt a major blow to the Manmohan Singh government when it decided to withdraw its support on the issue of petroleum price hike, FDI in retail and corruption. "We are withdrawing our support. Our ministers will go to Delhi, meet the Prime Minister and tender their resignations at 3 PM," TMC chief and West Bengal Chief Minister Mamata Banerjee announced after a meeting of party MPs, top leaders and office bearers.

However, party sources said compliance with her wish list would amount to an unconditional surrender. It would be a fatal blow to the government's effort to improve its finances and recoup its legacy, and make the prospect of a downgrade by international rating agencies a real one.

A capitulation would also defeat the government's effort to buff up its image by projecting the impression of a freshly-summoned will to press on with the reforms agenda. To the contrary, it would appear to be suing for peace and that too in sackcloth and ashes if it signs on to Mamata's agenda.

Mamata was in no mood to relent, and showed her hostile intent by echoing BJP's charge that FDI in multi-brand retail was intended to distract popular attention away from Coalgate - something which also dashed hopes of Mamata extending outside support.

With Mamata spurning all overtures from Congress, including the one that Prime Minister Manmohan Singh himself made on Monday, for talks, there is a strong likelihood that resignations of Trinamool ministers will be accepted without much delay and the vacancies filled up when the reshuffle takes place.

The desertion of Trinamool's 19 members in Lok Sabha leaves the UPA with a bench strength of 253 or 20 short of the majority mark in Lok Sabha. Government does have "reserves" like SP, BSP, and RJD who have consistently rescued the government from messy situations, and can count on several smaller parties and Independents, who usually tilt for the regime of the day.

In fact, the support from these quarters can take UPA's figure to above 300. Congress's calculation puts the tally of the ruling alliance at 284 even after discounting the 22 Lok Sabha members belonging to Samajwadi Party which hopes to profit from an early election.

However, the cushion will work in "fair weather" conditions, offering no guarantee against "rent seeking" by Mulayam Singh Yadav and Mayawati who can ruthlessly leverage their support. Government faces no life-threatening risk immediately since it is not required to face Parliament before January 6, but its ministers are already looking forward to what they called a hobbled existence.

"We will have to deal with demand-based support of these parties and that too on a day-to-day basis," said a senior Congress leader, confirming the estimate that Trinamool's pullout has rendered the government fragile, and with an acutely cramped maneuver space. Even for following up on the measures that triggered Mamata's withdrawal, government will be dependent on players whose support to reforms have been opportunistic.

SP repeated its opposition to FDI in retail on Tuesday while DMK's support to the opposition bandh against fuel price hike on September 20 underlined the problems awaiting the reformers in the government.

Mamata pointed to the cost that her strike may exact. "The government can stay for 3 months or six months, I don't know. But they have lost the credibility. And they cannot maintain friendship with us, then they cannot maintain friendship with anybody," she said.

The West Bengal CM also said Congress's tactic of playing one partner off another had its limitations and she had exposed that. Accusing the Congress of indulging in "blackmail politics, she said, "When they have trouble with Mamata, they go to Mayawati, if they have trouble with Mayawati, they go to Mulayam, if there is problem with Nitish (Kumar of JD-U) they go to Lalu, this blackmailing politics."

She also complained that Congress, despite having just 200-odd MPs, behaved as if it was running a majority government, giving short shrift to allies. "We are the second largest party in the UPA, but were never given minimum respect," she said.
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2G scam: BJP threatens to quit committee which says Chidambaram won't be summoned
Views ::70 New Delhi: Finance Minister P Chidambaram does not need to testify on the telecom scam before a parliamentary committee, said the panel's head, PC Chacko today, exponentially widening the chasm between the Congress and the opposition BJP, which has threatened to quit the panel in protest. Yashwant Sinha, a BJP leader on the committee, accused Mr Chacko of acting "in a totally dictatorial manner" and said that instead of behaving like an impartial chairman, "he only behaved like a spokesperson of the Congress party."

Mr Chacko, who is from the Congress, has reportedly decided that Mr Chidambaram's appearance is not needed because of the statements made today by D Subbarao, who was Finance Secretary in 2008 when the telecom scam played out. Before Mr Subbarao arrived, the BJP's representatives on the Joint Parliamentary Committee (JPC) had walked out of the meeting in protest against Mr Chacko's refusal to commit to a summons for the Prime Minister and Mr Chidambaram.

Mr Chacko described the BJP's decision as "extremely immature" and said "with folded hands, I urged them not to go."

Mr Subbarao, who is now the RBI governor, reportedly told the committee that reports that he had differences with Mr Chidambaram during the allocation of telecom licenses were inaccurate. A large part of the telecom scam was allegedly facilitated because spectrum was not auctioned - instead, airwaves were given at no cost along with licenses that cost companies about 1600 crores each. Mr Subbarao allegedly testified that the absence of an auction for airwaves did not cause a loss to the exchequer. He allegedly said that any losses were notional and not monetary. "Much depends on perception," he is learnt to have told the parliamentary committee.

Mr Subbarao also said that he disagrees with a controversial note prepared by the Finance Ministry last year, when it was headed by Pranab Mukherjee that suggested that Mr Chidambaram could have insisted on an auction of spectrum.

The BJP says that the PM and Mr Chidambaram must explain why they were unable to intervene in 2008 when former Telecom Minister A Raja engineered and executed the second-generation or 2G scam. Refusing to auction spectrum, Mr Raja followed a first-come-first-serve policy to award licenses for mobile operators. He then allegedly tweaked the process to help some companies jump to the head of the long queue.

Tags: 2G scam, Chacko, Chidambaram, Joint Parliamentary Committee, Subbarao, Yashwant Sinha

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Will Mamata Banerjee quit the UPA today? She hasn't returned PM's call
Views ::68 Kolkata: Mamata Banerjee has arrived for a meeting with top party leaders, where she is expected to make what she has described as "hard decisions" - the West Bengal chief minister will consult her partymen to finalise whether she should quit the Prime Minister's coalition over a menu of splashy reforms announced last week.
Here are the latest developments in this story:

    Mamata Banerjee is meeting now with her party leaders in Kolkata to decide whether to quit the ruling UPA coalition in protest against the government's decision to raise diesel prices, place a cap on subsidised gas cylinders and allow Foreign Direct Investment or FDI in multi-brand retail.

    Sources say the Prime Minister phoned her three days ago and left a message for her, but she has not returned his call. Senior ministers in Delhi have made it clear that Ms Banerjee's objections will not provoke a rethink or reversal. Her 72-hour deadline for a rollback expired today without any compromise, or phone call from either Sonia Gandhi or the Prime Minister.

    Ms Banerjee is reportedly weighing three options - whether to quit the UPA altogether, pull her six ministers out of government to provide external support, or ask her ministers to boycott work.

    Should Ms Banerjee opt out of the UPA altogether, regional powerhouses like Mulayam Singh Yadav and Mayawati will ensure the government does not fall. Ms Banerjee has 19 Lok Sabha MPs; Mr Yadav has 22 ; Mayawati can offer the support of another 21.

    So by exiting the UPA completely, Ms Banerjee will not change the political landscape. As a part of the UPA, her request for help from the Centre with her mangled finances is likely to carry more weight than as an outsider. Ms Banerjee has been asking the Centre for a moratorium on 21,000 crores that West Bengal owes as interest on loans from the Centre.

    The government has rejected her 72-hour deadline that asked for a rollback of the new policies. Finance Minister P Chidambaram said that there is no question of any reversal, and that the government is confident it can bring its allies around.

    The government has also stressed that states have the freedom to decide whether to allow FDI in retail. Ministers have said that while Ms Banerjee may oppose the reform in her state, others would like to implement it. Ms Banberjee's party says that once super-chains like Wal-Mart enter some parts of the country, they will lobby and pressure the government to open other regions to them.

    The Congress has admitted to back-channel talks with Ms Banerjee's party. A possible compromise may involve modifying the quota introduced for cooking gas cylinders.

    Last November, the cabinet cleared the proposal to allow foreign companies to buy majority stake in Indian firms to sell directly to customers but the policy went into cold storage after Ms Banerjee threatened to exit the government.

    The Prime Minister is focusing now on big-ticket reforms to revive a sputtering economy and to rescue the government from its image as a lame-duck administration fettered by the conflicting interests of its allies. .

Government should not cross Lakshman Rekha: Mamata on FDI, fuel hike
Views ::103 Kolkata: In an indirect attack at Prime Minister Manmohan Singh, Trinamool Congress supremo and West Bengal Chief Minister Mamata Banerjee today said that political leaders should be more bothered about the common people rather than winning personal laurels.

Infuriated over the twin "anti-people" decisions - hike in diesel prices and nod to FDI in retail - Ms Banerjee, whose Trinamool Congress is the United Progressive Alliance's second largest constituent, reminded the Congress not to cross the "Lakshman Rekha" (red line).

"We are not in favour of toppling the government. But they should not forget the 'Lakshman Rekha' of the alliance. We will not agree with any anti-people decisions. We have given 72-hour deadline to rethink... if you roll back, it's good. But if not, then be ready to face the consequences," she said, addressing a protest rally here.

"I don't agree with such economic reforms which are anti-people because I believe in grass root reforms which concern the masses. Leaders should stop taking decisions which help only four-five people for gaining personal laurels from handful of people. It is a matter of entire country," said Ms Banerjee.

"Everybody should think about the common masses of the country rather than the creamy section of the society. Because creamy section makes one per cent and common masses make the rest 99 per cent of the population," she said.

The government had on Thursday announced a hike in diesel price by Rs. 5 a litre and capped supply of subsidised cooking gas cylinders per family to six per year. The next day, it decided to allow up to 51 per cent foreign direct investment (FDI) in multi-brand retail.

The entire industrial community has hailed Manmohan Singh's - who has often been credited as the father of economic reforms of 1991 - bold decisions to allow FDI in retail and to hike diesel price. .

Cabinet reshuffle on cards; change of guard likely in Maharashtra, Andhra Pradesh: Sources
Views ::98 New Delhi: After announcing big-ticket reforms on Friday, the government is now gearing up for a cabinet reshuffle next week, sources told. And there are indications that this reshuffle could lead to a change of guard in Maharashtra and Andhra Pradesh.

Prithviraj Chavan, who is the Chief Minister of Maharashtra, could be brought back to Delhi, sources said, adding that the front-runner among the contenders to replace him is Maharashtra Industries Minister Narayan Rane.

Mr Chavan has however denied the reports of change in leadership in the state. He says he has not been notified of any change as yet. "I am very much in Maharashtra without any ifs and buts. I was sent here by the high command," he told reporters yesterday.

Sources also say that Andhra Pradesh Chief Minister Kiran Kumar Reddy could be inducted into the cabinet, and union minister Jaipal Reddy could replace him.

The speculation about a possible change of guard in Maharashtra was triggered after Congress President Sonia Gandhi met some leaders from the state yesterday. Mrs Gandhi also met Mr Rane, prompting speculation that he may take over as chief minister.

Sources say the Congress is keen to settle the tension with ally NCP and Mr Chavan's exit could help smoothen the relationship. The NCP is a member of the ruling coalition at the centre as well, which is led by the Congress.

The NCP has made its dissatisfaction with the alliance clear in the past. Its members in Maharashtra say Mr Chavan is uncommunicative and unresponsive to their requests, and slow to implement key infrastructure projects.

Mr Chavan was minister of state in the Prime Minister's Office (PMO) till he was deputed in November 2010 to implement a course-correction for the Congress. News of the Adarsh Scam had just broken, and then Chief Minister Ashok Chavan was linked to the swindle that saw apartments being grabbed by politicians, bureaucrats and retired defence officers in a building meant for war widows and veterans.

Mr Rane, who represents Kudal in the southern Maharashtra district of Sindhudurg, has served as Chief Minister for an eight-month stint in 1999. He was originally with the Shiv Sena, and then switched to the Congress in 2005. While Congressmen hold his political origins in the Shiv Sena against him, the other contenders have very little visibility and support base outside their own constituencies. .

Govt clears FDI in multi-brand retail, 'furious' Mamata to decide on support on Tuesday
Views ::97 New Delhi: The government has cleared 51% Foreign Direct Investment or FDI for multi-brand retail, a major reform aimed at jumpstarting a lethargic economy and combating the image of an administration riddled with policy paralysis. (Read: New, bold reforms announced by government)

The move will allow global firms such as Wal-Mart Stores to set up shop with a local partner and sell directly to consumers for the first time, though individual states have the right to reject the reform. The proposal had been cleared by the cabinet in November last year but was suspended because of adamant opposition by key ally Mamata Banerjee, the chief minister of West Bengal. Her party warned today that it will take "a major decision on support" if the Congress does not withdraw both the FDI reforms cleared today and the decision yesterday to increase the prices of diesel by Rs. 5 and to cap the number of subsidised LPG cylinders available for each household. (Read: Mamata Banerjee sets 72-hour deadline to withdraw FDI, diesel hike)

The government appeared to have taken the risks into account. "We respect her decision...it is her prerogative to implement or not implement...equally it is the prerogative of other states to have it," said Commerce Minister Anand Sharma. The BJP and Left both described the multi-brand retail policy as a betrayal of the people, arguing that it will put thousands of small shop-owners and farmers out of business.

The slew of reforms cleared by Dr Manmohan Singh today, the boldest in his current term, include permitting foreign airlines to buy upto 49% in an India carrier and selling off stake in major state-run firms, which will not be revoked, said sources. The government has also rejected demands from other political parties to revoke a hike in heavily subsidised fuel prices announced yesterday.

India's inability in the past months to push through major reforms and ease its subsidy burden as growth slowed sharply has put it in danger of becoming the first of the big "BRIC" emerging economies to see its credit rating downgraded to junk.

Foreign investors, experts, and industry have been stressing that the Prime Minister has a narrow political window to push reforms key to reviving India's flagging growth. The general elections are two years away, and international media in recent months has been critical of Dr Manmohan Singh, labelling him an "under-achiever" reluctant to take politically-tough but economically-critical decisions.

The government has been trying for months to build consensus around reforms in retail. Those plans appeared to come undone in June when Mulayam Singh Yadav, the head of the Samajwadi Party, wrote to the Prime Minister urging him not to proceed with reforming the retail sector because it would result in job losses.

Tags: FDI in multi-brand retail, Mamata Banerjee, multi-brand retail, Prime Minister, retail, retail sector, Samajwadi Party

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Diesel price hike of Rs. 5; allies want rollback
Views ::62 New Delhi: The government has raised the price of diesel by Rs. 5 per litre, prompting angry responses from allies Mulayam Singh Yadav and Mamata Banerjee, who have demanded a rollback. The price hike is aimed at reining in the fiscal deficit and staving off the threat of becoming the first in the BRICS group of emerging economies to be downgraded to junk.

The Cabinet Committee of Political Affairs headed by the Prime Minister left kerosene and LPG rates untouched. It also decided to restrict the supply of subsidised cooking gas to six cylinders per household in a year. The government says about 44% of the total domestic LPG consumers, who consume 6 cylinders or less each year, will not be affected by this decision.

While prices of petrol have been deregulated, diesel is a partially deregulated product. In the past two years, diesel prices have been hiked twice.

West Bengal Chief Minister and Trinamool Congress chief Mamata Banerjee said, "We want rollback. I am shocked. The matter is very serious and sensitive; we can't compromise with the people's issue. We will discuss in our party meeting and our plan of action. We know the economic crisis we are with the government but enough is enough."

The Trinamool's lone minister in the cabinet, Mukul Roy, is not attending a cabinet meeting tomorrow that's scheduled to discuss relaxation of Foreign Direct Investment (FDI) norms in airlines. Another UPA ally, the DMK, too has said it opposes the hike.

The Samajwadi Party, which provides external support to the UPA, said it wants an immediate rollback. "The decision is ill-timed and will hurt the common man," Uttar Pradesh Chief Minister and Samajwadi Party leader Akhilesh Yadav told NDTV.

Reacting to the diesel hike, C. Rangarajan, chairman of the Prime Minister's Economic Advisory Council, said the government had taken the right decision, and that fiscal deficit had to be contained. He told a private TV channel that an increase in diesel prices in India should help avert a credit rating downgrade for the country.

The BJP has slammed the government and senior leader Yashwant Sinha warned of mayhem in the economy. "This is going to cause undue hardship. Prices are not under control. This will lead to overall inflation," he said. Prices, he said, could have been increased in small doses. The Left parties too want a rollback. Gurudas Das Gupta of the CPI said, "I have never seen such a massive increase. It will stimulate inflation and aggravate the economic slowdown, which will cost jobs. We will protest in every way we can."

The government subsidises the prices of diesel, cooking gas and kerosene to dampen inflation and protect the poor, a popular policy that has put a severe strain on public finances.

The government has acknowledged earlier that a price hike is essential for curbing fiscal deficit, a pre-condition for reviving growth in Asia's third-largest economy. A price increase will also aggravate inflation, as costs, such as road freight rates, will rise.

State-run oil marketing companies are losing Rs. 550 crore everyday on under-recoveries as a result of higher crude prices in the global markets. They make a loss of Rs. 17 per litre on diesel sales, Rs. 32.7 per litre on kerosene sales, and Rs. 347 per cylinder on cooking gas sales every day.

Tags: Diesel price hike, Diesel price hiked, LPG cyliders, Mamata Banerjee, prices of diesel

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Harda's jal satyagraha: Prohibitory orders imposed, protesters may be arrested
Views ::86 Harda, Madhya Pradesh: A day after the victory of those sitting on a jal satyagraha in Madhya Pradesh's Khandwa district, the focus today shifted to Harda where a similar protest is going on for the last 13 days. More than 30 villagers are sitting here in neck-deep water demanding the water level in the Indira Sagar Dam be brought down to 260 metres from 262 metres, and rehabilitation of affected people.

But unlike Khandwa, prohibitory orders under section 144 of the Indian Penal Code have been imposed here by the order of the Sub-Divisional Magistrate (SDM), citing health risks. Sources say if the protesters will not come out of the water, they will most likely be arrested.

Reacting to the announcement, the protesters have gone at least 200 metres away from the banks, into the water. 200 others are protesting outside.

Meanwhile, over a hundred policemen and Rapid Action Force personnel deployed in the area,
are not allowing anyone to enter or leave the place. The SDM and the collector of the district are at the scene and are taking stock of the situation. Tomorrow morning, Congress state president Kantilal Bhuria and leader of Opposition Ajay Singh will visit the protesters.

The state government has increased the water level in the dam to 262 metres, which threatens to inundate 19 villages. Three villages are already submerged in water. In fact, the state government plans to further increase the water level in the dam by .02 metres.

"The Chief Minister has not announced anything for us, just for the protesters in Khandwa. He has agreed to bring down the water level there, and to rehabilitate the people affected. Until they will accept our demands we will not leave, the chief minister has done discrimination with us" said one of the protesters.

"It is 13th day, and we are in continuous talk with the people. Their demands are of administrative level, therefore we are not able to assure them. Cheques are being given to them, we appeal to then to stop agitation," said Manjusha Rai, Sub-Divisional Magistrate, Harda.

The protest in Khandwa's Ghogalgaon village ended yesterday after 17 days when Chief Minister Shivraj Singh Chouhan agreed to lower the water level in the Omkareshwar dam, one of the key demands of the 51 protesters, sitting in neck-deep water.

Both Omkareshwar and Indira Sagar dams are built across the Narmada river and are part of the Indira Sagar Project. The water protests were launched with the help of the Narmada Bachao Andolan to demand proper rehabilitation for land that the villagers have lost and a reduction in the water level of the dam.

The unusual protest was highlighted by the media and brought widespread attention to the villagers sitting in water. The photograph of the shriveled, bruised feet of a woman protestor went viral on social networking sites.

Tags: Harda jal satyagraha, jal satyagraha

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Narendra Modi in poll mode; compares Congress to chewing tobacco
Views ::99 Mehsana (Gujarat): Launching a month-long campaign in poll-bound Gujarat, Chief Minister Narendra Modi on Tuesday accused Congress of "misusing" the CBI to target him and also demanded that the Prime Minister face a SIT probe in the coal block allocation scam.

Seeking a fourth term in office, the BJP stalwart also slammed the Congress for "attacking the constitutional authorities", accusing it of whipping up an atmosphere of anger against the Government auditor CAG like it did against the Supreme Court in the 2G spectrum allocation case.

Signalling that he would fight the coming polls on the plank of "injustice meted out to Gujarat", Mr Modi struck an aggressive tone to kickstart his 2012 month-long campaign through Swami Vivekananda Yuva Vikas Yatra from the holy town of Becharaji in Mehsana.

He appealed to people to work towards "Congress-free Gujarat" on the lines of "gutka-free Gujarat" to wipe out "cancer". Assembly elections in the state are due in December this year.

"I have faced multiple probes, now let the Prime Minister face a SIT probe on coal block allocations," he said. He also added,"To corner me, they form an SIT whenever they want to."

"I appeal to him(Manmohan Singh) and Congress to come forward and have a competition in facing probes," Mr Modi said adding, "Let us see who has more prowess in facing such probes."

A Special Investigation Team (SIT) has been formed by the Supreme Court to investigate the 2002 post-Godhra riot cases. The CBI is also investigating various fake encounter cases in Gujarat.

Taking a swipe at Congress, the Chief Minister alleged that the opposition party was not alone in fighting the assembly polls, as the CBI was also with them.

He alleged that the Congress had a habit of targeting constitutional authorities by creating an atmosphere of anger against the institutions that did not toe its line.

"On the one hand they (Congress) praise the Constitution while on the other if anything goes against them, they speak against the authorities. Now, the Comptroller and Auditor General (CAG) is their target," Mr Modi said.

He further said that on the 2G issue, Congress leaders had adopted a similar stand towards the Supreme Court. Now, the CAG's credibility is being questioned by the Prime Minister and his colleagues.

"This was Indira Gandhi's way. If you are not with her, create an environment against them. Today Congress is doing the same," he said.

The Chief Minister also utilised the event to ridicule state Congress leaders for their pleas to the people to oppose him during his yatra.

"Are you so scared that you won't listen to my voice? Do you want Sonia Gandhi and the Prime Minister to face similar opposition when they come here," he said.

He said in a democracy everyone had a right to place his or her views. Taking a dig at local Congress leaders, he said his government would extend all possible support for them to place their views before public.

Blaming the UPA government for the current economic situation, he said the Prime Minister should follow the Gujarat model of development.

Addressing a huge gathering in the presence of former BJP president Rajnath Singh and the Leader of Opposition in Rajya Sabha Arun Jaitely, Mr Modi exuded confidence that BJP would easily retain power.

"I do not need to make different appeals to win elections among people. The decade-long record of government's hard work speaks (for itself)," Mr Modi said.

Taking a dig at Congress' poll ad-campaign in Gujarat, Mr Modi said, "There are advertisements on television ninety times a day- 'disha badlo, dasha badlegi'. But what disha (direction) is this? The same disha of Delhi?"

"Do you want the same durdasha of Delhi in Gujarat? Corruption, curfew-- do you want all this? Gujarat does not want to see it now," Mr Modi said.

Mr Jaitely said under the Congress-led UPA government, corruption had reached its zenith and all developmental work had come to a standstill.

"The term 'policy paralysis' has been used for the first time in the country for this government," Mr Jaitely said.

Tags: congress, Narendra Modi, poll, poll campaign

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Pakistan announces release of all jailed Indian fishermen
Views ::116 Islamabad: Pakistan today released all Indian fishermen in its jails as a goodwill gesture for External Affairs Minister S M Krishna's visit to the country.

"All Indian fishermen have been released - those who have completed their jail terms and those who are still serving," Foreign Minister Hina Rabbani Khar said at a joint press conference with her visiting Indian counterpart SM Krishna.

Mr Krishna thanked the Pakistan government for the "wonderful gesture" of releasing all Indian fishermen.

"I hope their boats and trawlers are also released," he said.

Earlier in the day, the announcement in this regard was made by Pakistan Interior Minister Rehman Malik after signing the new liberalised visa agreement with Krishna.

Over 80 Indian fishermen were in Pakistani jails while some 120 Pakistani fishermen were in Indian jails.

Last month also, Pakistan had freed 55 Indian fishermen as a "goodwill gesture" on the occasion of India's Independence Day.

On the visa agreement, Malik said it was signed as a "gesture of friendship".

"We have liberalised most of the things. It's a very significant move," he said.

Speaking on the issue of terrorism, Malik said more cooperation was needed between the two countries to tackle the threat from the sea route.

"There was need to have more cooperation, but if we could have stopped sea-borne terrorists, we would have stopped the terror here also," he said asserting that terrorists have no religion.

His remarks came on a day when Prime Minister Manmohan Singh pitched for a comprehensive maritime policy to maintain vigil along the Indian coastal line.

"...There are also indications about terrorist groups maintaining their ability to use the sea route. Vigilance, therefore, needs to be exercised not only on our land borders but along the coast line as well," Singh said at a meeting of top Indian police officers in New Delhi. .