INDIA COUNTRY BRIEF
110323
Basic Political Developments
· A united opposition today mounted attack on Prime Minister Manmohan Singh over the cash-for- votes scam.
· The turf war over 2G Scam inquiry has refused to die down with the Joint Parliamentary Committee planning to discuss tomorrow whether the PAC.
· Unidentified persons threw a 'petrol-bomb' at the residence of a DMDK candidate for Trichengode in the April 13 Tamil Nadu Assembly polls.
· The Andhra Pradesh High Court today directed the Centre to make public the eighth chapter of the Sri Krishna Committee report on Telangana which deals with sensitive law and order issues.
· Three Trinamool Congress MLAs were today suspended from the West Bengal Assembly till March 25.
· The Telugu Desam Party forced adjournment of the Andhra Pradesh Assembly without transaction of any business today over the demand of a Joint Legislature Committee to probe the land allotments in the last six years.
National Economic Trends
· India's Lok Sabha on Tuesday passed the Finance Bill 2011 after the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) walked out of the House saying it did not want to create a constitutional crisis. The BJP-led NDA opposition members in the Lok Sabha walked out in protest against the speaker's decision to not allow a discussion regarding the PM's response to a Wiki Leak revelation on the cash-for-votes scam.
· Bowing to demands from all around, Finance Minister Pranab Mukherjee on Tuesday exempted five per cent ‘misery’ tax on healthcare as Finance Bill 2011 was passed in the Lok Sabha in the absence of Opposition.
· Morgan Stanley sees its India wealth management assets growing at a "sustainable pace" of 25 percent a year in the near future as the bank adds more advisers in the rapidly growing Asian economy, a senior official said on Wednesday.
Business, Energy or Environmental regulations or discussions
· The Government today approved 14 proposals of foreign direct investment (FDI),including that of Mauritius based Ghir Investments, totalling Rs 1,289.85 crore.
· Acropetal Technologies Ltd today announced that it has entered into a definitive agreement to acquire LineBeyond Inc, USA, and Optech Consulting Inc, USA.
· Faced with surging raw material costs, Indian car-makers now face three additional serious challenges, including a shortage of key components, which could impact their performance this year.While they could pass on the burden of increased input costs to customers, a shortage of components, compounded by the March 11 tsunami and quake in Japan and the Reserve Bank’s latest rate hike - which could affect car financing - have made them jittery over their prospects in the short-to-medium term.
· U.K.-based business and technology service company Logica is keen on expanding its business in India.
· The Reserve Bank of India will allow a promoter or a promoter group to establish new banks if they set up a holding company.
· Saroj Poddar today announced a unified corporate brand 'Adventz' and said the group will invest $ 2 billion (around Rs 10,000 crore) for expansion in the next four years.
· The Northern Railway has suffered losses of over Rs 200 crore ($44 million) due to disruption of rail traffic caused by the Jat community's job quota agitation.
Activity in the Oil and Gas sector (including regulatory)
· Essar Energy Plc sees a significant near-term hit on its product sharing contracts with Indian state-run oil marketing companies.
Militant Activity/Terrorism (Particularly in Bangalore, Mumbai, Noida, Chennai, Coimbatore)
· A wanted Hizbul Mujahideen militant Mudassir Nazir Lone was today arrested from the Batamaloo area of Srinagar.
· As many as 100 National Security Guard (NSG) commandos reached the city on Tuesday as part of a security set up to prevent any terror attack during the cricket match to be played on Thursday at the Motera Stadium between India and Australia.
· Amid reports that underworld don Dawood Ibrahim is planning to target the Central Bureau of Investigation's (CBI) headquarters here to "destroy" the documents related to the alleged 2G spectrum scam, the agency today denied that it has received any such "specific threat".
Labor/Social Unrest
· As the Jat agitation continues to wreak havoc on the rail traffic in northern India, Railways today cancelled two important trains connecting the Union Territory with the national Capital.
Full Text
Basic Political Developments
Oppn mounts attack on PM in LS on cash-for-votes scam
http://www.ptinews.com/news/1453057_Oppn-mounts-attack-on-PM-in-LS-on-cash-for-votes-scam-
New Delhi, Mar 23 (PTI) A united opposition today mounted attack on Prime Minister Manmohan Singh over the cash-for- votes scam wondering as to how he could wash his hands of the matter as he had headed the government in 2008 and was the "biggest beneficiary" of the trust vote.
Leader of the Opposition Sushma Swaraj made a stinging attack on Singh in the Lok Sabha telling him that as head of the government he should take responsibility instead of making others scapegoat for the omissions and commissions of his regime.
"It is the habit of the Prime Minister to blame others. If it is price rise then (Agriculture Minister) Sharad Pawar is responsible, if it is 2G then (former Telecom Minister) A Raja is responsible and if it is Commonwealth Games then (Suresh) Kalmadi is to blame," she said.
JPC to discuss PAC probe into 2G scam
http://www.ptinews.com/news/1454106_JPC-to-discuss-PAC-probe-into-2G-scam
New Delhi, Mar 23 (PTI) The turf war over 2G Scam inquiry has refused to die down with the Joint Parliamentary Committee planning to discuss tomorrow whether the PAC, chaired by senior BJP leader Murli Manohar Joshi, has gone beyond its mandate.
After discussing the issue its first meeting tomorrow, the JPC plans to write to the Public Accounts Committee Chairman about the Committee confining itself to inquiring issues over which the CAG report has made its observations.
"We have no quarrel with them. Propriety demands that we will point out to them. Joshiji is a very senior member of parliament and he also knows propriety is very important," JPC Chairman P C Chacko said.
Bomb hurled at DMDK candidate's house
http://www.ptinews.com/news/1452908_Bomb-hurled-at-DMDK-candidate-s-house-
Namakkal (TN), Mar 23 (PTI) Unidentified persons threw a 'petrol-bomb' at the residence of a DMDK candidate for Trichengode in the April 13 Tamil Nadu Assembly polls, police said today.
The front door, a two-wheeler and window panes were damaged when the bomb exploded, they said, adding no one was injured.
The candidate, Sampath Kumar and his family, who were inside the house at the time of the incident last night, have lodged a complaint with police.
Actor Vijayakant's Desiya Murpokku Dravida Kazhagam (DMDK) is contesting 41 seats as part of the Jayalalithaa-led AIADMK combine.
Make eighth chapter of Telangana report public: HC
http://www.ptinews.com/news/1452909_Make-eighth-chapter-of-Telangana-report-public--HC-
Hyderabad, Mar 23 (PTI) The Andhra Pradesh High Court today directed the Centre to make public the eighth chapter of the Sri Krishna Committee report on Telangana which deals with sensitive law and order issues.
Justice L Narasimha Reddy of the High Court gave the order on a petition requesting the court to direct the Centre to disclose the eighth chapter of the report.
The court observed that the committee was constituted to gather larger public opinion on carving out a separate state for Telangana region and the pros and cons of taking a decision on the ticklish issue.
The committee also held an open hearing and interacted with various social groups and nothing was shown to be secret, it noted.
Three Trinamool Congress MLAs suspended
http://www.ptinews.com/news/1453158_Three-Trinamool-Congress-MLAs-suspended-
Kolkata, Mar 23 (PTI) Three Trinamool Congress MLAs were today suspended from the West Bengal Assembly till March 25 for indulging in unparliamentary behaviour and heckling Speaker Hasim Abdul Halim in July last year.
Firhad Hakim, Arup Biswas and Dibyendu Adhikari were suspended for three days from today, the Speaker said.
Incidentally, no Trinamool Congress member is attending the Budget session, the last session before the coming Assembly elections.
On July 29, 2010, the three Trinamool Congress members had brought a privilege notice against Chief Minister Buddhadeb Bhattacharjee, which was rejected by the Speaker.
The three members then protested the rejection and this led to commotion inside the House and also in front of the Speaker's chamber.
On July 30, CPI(M) MLA Rabindranath Mondal and seven other MLAs of Left Front brought a privilege motion against the three TC MLAs alleging unparliamentary behaviour and heckling the Speaker.
Andhra Assembly stalled over JLC for 6th day
http://www.ptinews.com/news/1453696_Andhra-Assembly-nbsp-stalled-over-JLC-for-nbsp-6th-day-
Hyderabad, Mar 23 (PTI) The Telugu Desam Party forced adjournment of the Andhra Pradesh Assembly without transaction of any business today over the demand of a Joint Legislature Committee to probe the land allotments in the last six years.
This was the sixth day that the issue has rocked the Assembly. The government today said it would consider the demand for JLC only if Opposition allowed discussion on the issue in the House first.
The TDP, however, remained adamant, saying it wanted nothing but a JLC.
TDP MLAs stormed the Speaker's podium soon after proceedings began, and shouted slogans, which led to first adjournment for half an hour.
But order could not be restored after the House reassembled. Officiating Speaker, Nadendla Manohar, then adjourned the proceedings till noon.
National Economic Trends
Lok Sabha Passes Finance Bill
http://www.rttnews.com/Content/IndianNews.aspx?Id=1581474&SM=13/23/2011 1:27 AM ET
(RTTNews) - India's Lok Sabha on Tuesday passed the Finance Bill 2011 after the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) walked out of the House saying it did not want to create a constitutional crisis.
The BJP-led NDA opposition members in the Lok Sabha walked out in protest against the speaker's decision to not allow a discussion regarding the PM's response to a Wiki Leak revelation on the cash-for-votes scam.
Terming the walkout as rather unfortunate, Finance Minister Pranab Mukherjee said the Opposition parities have missed an opportunity to lend their voice and expertise to influence public policy in the larger national interest.
While moving the Finance Bill, Mukherjee announced a reduction in dividend distribution tax threshold for foreign companies to 26 percent from 50 percent and cut the basic customs duty on completely knocked down automobile kits, containing a pre-assembled engine, gear box or transmission assembly, to 30 percent from the proposed 60 percent.
Mukherjee also rolled back a proposed five percent tax on healthcare, which many called the misery tax, and provided some relief to ready-made garment manufacturers by enhancing the abatement available for levy of taxes on some branded garments and textile made-ups to 55 percent from 40 percent on the retail sale price.
The Finance Bill was later cleared by the Lok Sabha through a voice vote.
FM rollbacks ‘misery tax’ on healthcare
ENS Economic Bureau
http://expressbuzz.com/finance/fm-rollbacks-%E2%80%98misery-tax%E2%80%99-on-healthcare/258910.html
First Published : 23 Mar 2011 03:38:29 AM IST
NEWDELHI: Bowing to demands from all around, Finance Minister Pranab Mukherjee on Tuesday exempted five per cent ‘misery’ tax on healthcare as Finance Bill 2011 was passed in the Lok Sabha in the absence of Opposition.
“I have decided to exempt the new levy in its entirety, both in respect of services provided by hospitals as well as by way of diagnostic tests until goods and service tax (GST) comes into force,” said Pranab Mukherjee who was flooded with representations against what was described as “misery” tax in the form of five per cent service charge on air conditioned hospitals with 25 or more beds and diagnostic tests.
“The proposed levy on healthcare has raised considerable anxiety in this House and outside. The purpose of the levy was not merely to mobilise revenue. It was to pave the way for the introduction of the Goods and Services Tax.
He also went on to reduce custom duty on raw silk from 30 to five per cent and gave excise relief to small scale readymade garment firms.
Wrapping up discussion on the Finance Bill, Mukherjee regretted the absence of Opposition in the House. The BJP had led an opposition walkout as it wanted discussion on WikiLeaks exposure on cash for vote scandal before the passage of Finance Bill. The Finance Minister said his budget had given priority to economic growth momentum and the government introduced amendment to bring Goods and Services Tax regime. Three more bills - the revised Pension Fund Regulatory and Development Authority Bill, the Factoring and Assignment of Receivables Bill and the State Bank of India (subsidiary banks laws) Amendment Bill - are in the offing. Mukherjee stressed on fiscal consolidation and said that spending beyond means was unacceptable as he outlined the need to reduce deficit to 2.5 per cent and revenue deficit to zero.
Some of the other changes made were reducing dividend distribution tax (DDT) limit for foreign companies to 26 per cent. The excise duty for completely knocked down (CKD) automobile kits has been reduced to 30 per cent from 60 per cent.
M. Stanley sees India wealth assets growth, to add staff
2011-03-23 17:50:00
http://www.sify.com/finance/m-stanley-sees-india-wealth-assets-growth-to-add-staff-news-others-ldxrOhbdfdb.html
Morgan Stanley sees its India wealth management assets growing at a "sustainable pace" of 25 percent a year in the near future as the bank adds more advisers in the rapidly growing Asian economy, a senior official said on Wednesday.
The business in India, however, faces challenges due to the lack of a large pool of qualified people to manage assets of wealthy individuals, Leslie Menkes, a Singapore-based managing director for the Wall Street bank's private wealth management arm, told Reuters.
"We have a strategic plan to expand our footprint and continue to grow the business," he said. "I believe there are many successful wealthy individuals and families here in India that have never had a discussion with a world-class sophisticated wealth manager."
Asia, home to more than 3 million millionaires, has become a battleground for private banks as global and Asian players compete for market share in a region that is fast outpacing the United States and Europe in economic growth.
But the competition for wealth management talent in fast-growing Asian markets such as India is becoming cut-throat, with a slew of global banks vying with the local financial institutions for a bigger share of the market.