Economic growth slows down to 6.1% in Q3; lowest in 2 yrs

India's economic growth rate slipped to 6.1 per cent in the third quarter this fiscal, lowest in more than 2 years due to poor performance of the manufacturing, mining and farm sectors.

The Gross domestic product (GDP) growth the in third quarter (October-December) last fiscal was 8.3 per cent, as per the latest data released by the government on Wednesday.

GDP in April-December period also moderated to 6.9 per cent from 8.1 per cent in the first nine months of 2010-11.

During the quarter ending December 31, growth in the manufacturing sector dipped to a meagre 0.4 per cent from 7.8 per cent in the corresponding period of 2010-11.

Farm output also exhibited a similar trend and expanded by just 2.7 per cent during the quarter, compared to 11 per cent in the corresponding period last fiscal.

Mining and quarrying production contracted by 3.1 per cent during the quarter under review, as against a growth of 6.1 per cent in Q3 of last fiscal.

Growth in the construction sector also slowed to 7.2 per cent during the quarter from 8.7 per cent in the same period a year ago.

Furthermore, the trade, hotels, transport and communications segments grew by just 9.2 per cent in the quarter under review, as against 9.8 per cent expansion in the year-ago period.

However, electricity, gas and water supply grew by robust 9 per cent in the October-December period, compared to 3.8 per cent growth in the corresponding period last fiscal.

The growth of the services sector, including insurance and real estate, slowed to 9.9 per cent in the third quarter ended December, compared to 11.2 per cent expansion in Q3 of 2010-11.

The Central Statistical Organisation has pegged the GDP growth for 2011-12 at 6.9 per cent, while the Prime Minister's Economic Advisory Council (PMEAC) expects that it would be 7.1 per cent.

The Indian economy expanded by 8.4 per cent in 2010-11.

As per the data released today, manufacturing growth in the 9-month period ending December, slowed to 3.4 per cent as compared to 7.6 per cent during the same period a year ago.

During April-December, output of mining and quarrying sector declined by 1.4 per cent as against a positive growth of 6.7 per cent in same period last fiscal.

Furthermore, the agriculture, forestry and fishing sector grew by just 3.2 per cent in the nine month period, as against 6.8 per cent expansion a year ago.

Growth of the construction sector stood at 4.2 per cent during the 9-month period, compared to 7.7 per cent in the same period last fiscal.

The slowdown in the manufacturing sector, coupled with decline in mining and quarrying, is likely to put pressure on the Reserve Bank of India to cut interest rate at its mid-quarter monetary policy review on 15^th March.

Finance Minister Pranab Mukherjee too, in his Budget for 2012-13, to be presented on March 16 in Lok Sabha, is expected to announce steps for arresting economic slowdown.

India Inc has been blaming RBI's tight monetary policy, which has increased the cost of borrowings, for hindering fresh investments and slowing down the industrial growth.

PM emphasise the need for increased outlay for Health sector

Prime Minister Dr. Manmohan Singh has emphasised the need for increased outlay on health sector during 12th plan so that adequate funds are made available for the sector.

He said, "though funds for the Health sector will not be a constraint, there is a need to create adequate capacity at the Centre and the states to meaningfully absorb the increased outlay."

In a meeting in PMO it was decided that government must work towards increasing the total govt health expenditure to 2.5 per cent of GDP by the end of the 12th Plan, from the current 1.4 per cent.

A high-level meeting chaired by Prime Minister Manmohan Singh also decided that the Planning Commission be requested to allocate adequate resources for the health sector to achieve the target, for which it could seek cooperation of the states.

During the meeting, convened on the direction of the Prime Minister and held at PMO, it was suggested that Planning Commission may motivate and incentivise states to allocate more funds for the health sector, for which it would work out an appropriate mechanism in consultation with the Health Ministry.

With the Health Ministry working towards its goal of Universal Health Care, it was also decided that the Ministry may set up a Central Procurement Agency early for providing 'free medicine for all through public health facilities' under the National Rural Health Mission (NRHM) and prepare Standard Treatment Protocols early.

The Cabinet has already approved the setting up of the procurement agency.

The meeting specifically focused on implementation of recommendations of the National Commission for Macroeconomics & Health (NCMH) and the High Level Expert Group (HLEG) on Health set up by Planning Commission and listed various measures, including bringing important bills and legislations, to be implemented soon.

The Health Ministry has also been asked to prepare a clear roadmap to merge all the NRHM schemes to bring them under one umbrella.

"The merger may begin with the coming financial year and the process may be completed by 2013-14," the meeting decided.

Among the various measures decided at the meeting which the Health Ministry has been asked to specifically focus on is strengthening of primary health centres, community health centres and district hospitals to help provide cashless, hassle free out-patient, in-patient and diagnostic care and supply of essential medicines.

Ambulance services will be strengthened to provide access to health services to far off and inaccessible areas, it was decided.

It was also decided that work on establishment of National Centre for Disease Control may be completed in two years time and the Integrated Disease Surveillance Project may be strengthened with setting up of public health laboratories in districts and states.

The Ministry has also been asked to strengthen enforcement mechanism for drug control, for which it may examine the Drugs and Cosmetics (Amendment) Bill, so that it is introduced in Parliament soon.

To focus on prevention of disease and promotion of good health, the Ministry has also been asked to work closely with agencies dealing with social determinants of health like nutrition, safe drinking water, hygiene and sanitation and education.

The Ministry will also work towards strengthening of public health through creation of necessary human resources capacities at all levels and prepare an approach paper for induction of health managers and create a Public Health Cadre for inclusion in the 12th Plan.

It has also been suggested to build human resources for health by producing adequate number of doctors, nurses, ANMs and other paramedics, for which the Ministry has been asked to work towards getting the National Commission on Human Resources in Health (NCHRH) Bill passed by the Parliament early.

The ministry has also been asked to bring into effect and operationalise the provisions of the Clinical Establishments (Registration and Regulation) Act, 2010, which has been passed by Parliament.

China's objection to Arunachal visit most unfortunate: Antony

Defence Min A K Antony has slammed China for raising objections to his visit to Arunachal Pradesh, describing Beijing's comments on the issue as most unfortunate and really objectionable.

He said Arunachal is an intergral part of India as Jammu and Kashmir and as Defence Minister it is his right and duty to visit the state, which has recently celebrated 25th anniversary of its statehood.

"I was surprised to see such a reaction. I feel it is most unfortunate and, at the same time, it is really objectionable," he told reporters in New Delhi on Monday.

His comments came as China reacted sharply to Antony's visit to Arunachal Pradesh for its statehood celebrations and said India should refrain from taking any action that could complicate the border issue.

Antony said it was his right as Defence Minister to visit all border states.

"I have been visiting Arunachal since 1984. This time, I was thrilled to visit the state on its silver jubilee of attaining statehood," he said, adding the state has achieved progress.

He said he was happy about the progress of the state and, at the same time, he felt that one has to give full support to it.

Asked about Pakistan's objection to induction of nuclear submarines by India, he said New Delhi is strengthening its capabilities to protect its security and not for confronting anybody.

He said whatever steps have to be taken to ensure country's security in the emerging security scenario, India will take it.

57 pc voters exercise franchise in UP polls

An estimated 57 per cent votes were on Tuesday cast in the sixth and penultimate phase of Uttar Pradesh Assembly polls in 68 seats across 13 districts, popularly known as the Jat land, where voting was by and large peaceful. 

"Barring minor incidents, polling process was peacefully over at 5 PM and as per an estimate 57 per cent of 2.17 crore voters exercised their franchise," an Election Commission official said.

Today polls will decide the fate of 1103 candidates, including 86 women.

Police used mild force to disperse a local BSP leader and his supporters who created a ruckus at a polling centre at Singhani gate area in Ghaziabad on the outskirts fo Delhi.

They were protesting against the absence of booth level officers to distribute voter slips.

Similarly, in Agra, people were agitated over alleged irregularities at a centre at Ahmadia Hameedia college in Mantola.

In Bhatta Parsaul, which was the centre of the land acquisition row, farmers were seen coming out to vote.

Their leader Manvir Singh Tevatia, who had spearheaded the farmers' agitation, is fighting elections from jail.

The area falls under the Jewar Assembly seat.

Congress has fielded Dhirendra Singh from Jewar.

He was the man on whose bike Congress general secretary Rahul Gandhi had reached Bhatta Parsaul last year.

In Chief Minister Mayawati's native Badalpur village, farmers had lined up to cast their vote even before the polling began.

BSP has fielded Satvir Gujjar, the sitting MLA, while Congress has fielded Samir Bhatti.

Bhatti had once served as MLA from Dadri and his father Mahinder Singh Bhatti represented the seat twice.

BJP has fielded Nawab Singh Nagar, who was twice elected MLA from the seat.

Samajwadi Party has fielded Raj Kumar Bhatti.

This phase would also decide the fate of youth face of RLD Jayant Chaudhary, as well as Energy Minister Ramveer Upadhyaya, deputy leader of BJP Legislative Party Hukkum Singh and former minister Rajveer Singh, who is also son of former Chief Minister Kalyan Singh.

To ensure active role of junior Chaudhary in state politics Ajit Singh has fielded Jayant, who is MP from Mathura, from Math seat in Mathura.

RLD state president and bureaucrat-turned-politician Baba Hardeo Singh is also in the fray from Aitmadpur seat in Agra district.

A former officer of Provincial Civil Services, Baba Hardeo was the president of PCS Association for the longest time.

Energy Minister Ramveer is also seeking rerun from Chattriya dominated Sikandrarau seat in Hathras district.

Ramveer's prominence would also be put to test in Sadabad and Dibai seats from where his brother-in-law Satyendra Sharma and brother Vinod Updhayaya are contesting respectively.

Ramveer's brother Vinod is pitched against Rajveer Singh, a former minister and son of ex-CM Kalyan Singh.

Popularity of Rashid Masood, who left SP and joined Congress as a Muslim leader would also be put to test in this phase as his nephew Imran Masood is in fray from Nakud seat in Saharanpur district.

This phase would also decide the impact of an appeal made by Shahi Imam of Delhi's Jama Masjid Maulana Ahmad Bukahri in favour of SP as his son-in-law Umar Ali is in the fray for Behat seat in Saharanpur district.

Meanwhile, BKU President Naresh Tikait cast his vote today for the first time, breaking his father's tradition of not favouring any party.

The head of the farmers' organisation cast his vote at the polling centre Sisauli in the district, BKU's national spokesman Rakesh Tikait said.

According to Rakesh, the late Mahender Singh Tikait had never cast his vote to maintain the non-political status of his organisation

Ailing Kingfisher files fresh flight schedule before DGCA

Ailing Kingfisher Airlines, whose services remained affected for the sixth day, on Wednesday filed a fresh flight schedule with DGCA, scaling down its operations to about 170 daily flights with 28 functional aircraft. 

 

Faced with the regulators deadline, the airline submitted a revised winter schedule of flights it would operate till March. This schedule is being examined, DGCA sources said.

On a day when over 30 flights were cancelled by Kingfisher, DGCA chief E K Bharat Bhushan briefed Civil Aviation Minister Ajit Singh on the tough financial situation faced by the carrier.

With reports that banks were offering to help out the airline, the Minister again made it clear that government would not give any dole to a private carrier.

"We have made it clear and I am sure Mr (Vijay) Mallya knows that Air India is a government concern. Whatever help we give them (Air India), we cannot do it to any private industry,” he said.

"We have said it before that banks will decide that (pumping in money). Government is not going to interfere in it. Banks have to follow RBI guidelines. They have to worry about their NPAs (non-performing assets). They have to decide on the basis of the business plan of the company. If they are satisfied with the business plan, they can lend money," he said.

Sources said that as per the revised schedule, the airline would operate about 170 flights daily, instead of over 400 it had sought permission for last October when the winter schedule for the airlines came into operation.

At that time, Kingfisher had informed the regulator that it would fly 64 aircraft, a number which has now come down to 28 as many of its planes have either been taken away by the lessors or were awaiting repairs and spare parts or been cannibalised.

The DGCA, which summoned the Kingfisher's CEO Sanjay Agarwal on Tuesday, had asked the airline to come up with a "realistic" schedule which can be operated by 28 planes.

Bhushan is understood to have apprised the Civil Aviation Minister on the discussions he had with the Kingfisher top brass and the airline's plan to restore its flight schedule over the next few days.

Issues relating to whether any action could be taken against the struggling carrier for flouting the provisions of Aircraft Rules of 1937 are also understood to have come up for discussion, though the Minister has made it clear that closure of any airline would not be good for the health of the Indian aviation industry.

Kingfisher also partially resumed flights from Kolkata, operating four to the Northeast, though it cancelled 14 from Mumbai, eight from Bangalore and two from Delhi.

The entire Kolkata operations were shut down from Friday night.

The cash-strapped carrier had faced the wrath of the Income Tax authorities which froze its bank accounts, which, the airline said had been primarily responsible for large- scale disruption of its flights.

Kingfisher, which suffered a loss of Rs 1,027 crore in 2010-11 and has a debt of Rs 7,057.08 crore, posted a Rs 444 crore loss in third quarter this fiscal. 

Govt dismisses reports on Model Code of Conduct

The Govt has dismissed as totally mischievous reports that it was considering a move to give statutory backing to the Model Code of Conduct (MCC), a move that would take away its enforcement from Election Comm to courts.

"The contents of the report are totally misconceived as there is no such move under contemplation of the Government or the Group of Ministers," the Department of Personnel said in an official release on Tuesday.

The DoPT was reacting to reports that the Group of Ministers on corruption was going to consider giving a statutory backing to the MCC at its meeting on Wednesday.

"The GoM has not made any recommendation to make the MCC statutory or to take it outside the purview of the Commission," the DoPT said.

The release recalled that the news reports said that the Government has started working on giving the MCC a statutory backing and that if it is successful, complaints pertaining to code violations will go out of the purview of the EC.

The report also indicated that the Union Legislative Secretary has been asked to make a presentation before the GoM on Corruption at its meeting scheduled to be held on Wednesday on the issue of giving statutory shape to executive instructions issued by the EC and that such a statutory backing means the code violations would be covered by law and hence be tried in a court rather than being left to the discretion of the EC, as is the case now.

The DoPT clarified that the "State Funding of Elections" is one of the mandates given to the GoM on Corruption under its terms of reference.

"The subject has, accordingly, been receiving the attention of the GoM at its deliberations from time to time and the Legislative Department of Law Ministry has been updating the GoM on the several initiatives taken by that Ministry and by the Election Commission on issue of State funding of elections along with other electoral reforms," it said.

The GoM, in its last meeting held on 30^th September 2011 considered a presentation made by the Secretary, Legislative Department on the viability of various alternatives on the question of State funding of Elections.

In the course of discussions, incidental references were made to the issue of "Code of Conduct".

The presentation also highlighted the fact that the Legislative Department, along with the EC, had conducted seven regional consultations across the country, inter alia, with the political parties and sought guidance of the GoM for further course of action.

The GoM had directed the Legislative Department to bring out specific proposals, as regards State funding of Elections, for consideration and decision of the GoM, excluding such areas where consultation with political parties was required, the release recalled.

Govt releases retail inflation numbers; CPI up 7.65% in Jan

Inflation based on the all India Consumer Price Index stood at 7.65 per cent in January, as per the first nationwide retail inflation data released by the government on Tuesday.

While 'food and beverages' reported a moderate rate of price rise of 4.11 per cent year-on-year in January, the inflation numbers for fuel and light, and clothing, bedding and footwear segments were in double-digits.

Overall retail inflation in rural and urban areas stood at 7.38 per cent and 8.25 per cent in January, respectively.

"There was a long pending demand of ministries and various users for a comprehensive consumer inflation rate. To meet this demand, annual inflation rates based on this broad based CPI series for January 2012 are released today," Minister of State (Independent Charge) in the Ministry of Statistics and Programme Implementation Srikant Jena said.

The all India CPI will be in addition to the three retail price indices -- for agricultural labourers, rural labourers and industrial workers -- prepared by the Ministry of Labour.

The new nationwide CPI is being prepared by the Ministry of Statistics and Programme Implementation (MOSPI) and is eventually expected to replace the Wholesale Price Index (WPI) as the benchmark inflation.

Vegetables were cheaper by over 24 per cent on a nationwide basis in January over the same month last year. However, other food and beverages reported a rise in prices. In rural and urban areas, inflation in the category stood at 4.18 per cent and 3.98 per cent, respectively.

Milk and milk products became 16.53 per cent more expensive on an annual basis, while price of oils and fats went up by 13.47 per cent in January. Condiments and spices became dearer by 11.83 per cent and fruits by 10.62 per cent in the month.

Egg, meat and fish were dearer by 10.45 per cent in January, while cereals and pulses reported a price rise of 2.69 per cent and 5.66 per cent, respectively.

Sugar was 1.84 per cent expensive in January as compared to the same month of last year.

Inflation in non-alcoholic beverages stood at 11.52 per cent and prepared meals were dearer by 10.39 per cent.

Inflation in fuel and light segment stood at 13.13 per cent in January for the whole country. In rural areas, fuel and light inflation stood at 13.70 per cent and in urban areas at 12.43 per cent.

On an all India basis, clothing, bedding and footwear reported an inflation of 14.25 per cent in January. The category reported a price rise of 13.78 per cent and 15.39 per cent in rural and urban areas respectively.

However, the government did not release the retail inflation data for two other segments -- housing and miscellaneous items.

The MOSPI had launched the nationwide CPI from January 2011, without quoting the inflation rate so that the data gets stabilised.

It is for the first time that the government has come out with inflation based on retail prices in rural, urban and all India basis.

The government had earlier said that CPI will "reflect the actual movement of prices at the micro-level and help policymakers like the RBI in better framing of decisions."

The data for the index is collected from 310 cities and towns and over 1,180 rural centre.

Experts believe that the CPI will become a benchmark the Reserve Bank's monetary policy decisions, besides being used by the government but it will take some time for its to replace the WPI.

Inflation based on WPI was 6.55 per cent in January this year.

Campaigning in 5th phase of assembly polls in UP to conclude today

Campaigning for the fifth phase of assembly polls in Uttar Pradesh will come to an end on Tuesday; One crore, 53 lakh voters will decide the fate of 840 candidates in the voting on Thursday.

49 seats are at stake in 13 district of Bundelkhand besides Central and Western regions of the state.

In the first four phases, voting took place in 226 assembly constituencies out of the total 405.

Congress releases manifesto for Goa Assembly polls

Congress party on Monday released its election manifesto for next month's Assembly polls in Goa, promising up to 150 units of free electricity and water to the poor if voted to power in the state.

The manifesto was released by All India Congress Committee general secretary Oscar Fernandes in the presence of national and state party leaders.

The manifesto seeks to address land issues and promises creation of an agency that would train school dropouts in security and disaster management skills.

Congress has also assured to solve the problem of housing in the state by providing 5,000 flats and row houses through the Housing Board Corporation in the next five years.

"We will also form a committee of agricultural experts to survey fallow paddy fields and suggest an action plan to make it cultivable and fast track courts would be set up to solve land related disputes," the manifesto said.

The Congress has also promised a slum-free Goa through rehabilitation of existing slum dwellers.

The party has assured to increase the ceiling of mediclaim scheme from Rs 1.2 lakh to Rs seven lakh, covering all illness.

The Congress further said that it would increase monthly allowance to senior citizens under Dayanand Niradhar Yojana from Rs 1,000 to Rs 2,500 and every application of widow and handicapped people would be disposed of within three months.

Aadhaar numbers will be used to streamline PDS: Nilekani

The Unique Identification Authority of India (UIDAI) Chief Nandan Nilekani on Tuesday said Aadhaar numbers will be used for streamlining the Public Distribution System (PDS) and plugging leakages in it. 

"The draft food security bill clearly says that Aadhaar will be used for the enrollment into PDS because that is a very important way of eliminating ghosts and duplicates from the system," he told reporters in New Delhi.

He said this while responding to reports that the Food Ministry is not keen on using the Public Distribution System Network (PDSN)-- a technology back-office and central system which was suggested by a task force headed by Nilekani.

According to reports, the Food Ministry is keen to use the information technology platform developed by the state-run National Informatics Centre for revamping the PDS.

On media reports, Nilekani said, "I am not aware of this. The Food Ministry is very much promoting use of Aadhaar in PDS."

"There was a taskforce which I was heading. It has come out with creation of body called PDS Network which will operate the PDS. That report is under consideration by the government," he added.

About progress in the project, he said, "We have completed the initial pilot (project) of 20 crore (enrolments). We will roll out the (enrollment programme for 40 crore people) in April."

The Cabinet Committee on UIDAI headed by the Prime Minister has recently mandated the body to enroll 40 crore more people in the country across the 16 states.

UIDAI has also launched its online authentication facility on Tuesday, using which a person can be identified.

Maldives new President Hassan calls for calm

The Maldives new president promised to protect his predecessor from retribution after he stepped down amid protests and clashes between the army and police over his decision to arrest a top judge.

President Mohammed Waheed Hassan, who was sworn in Tuesday, called for chaos on the streets to stop and for citizens of this Indian Ocean island nation to work together after months of political turmoil. "I urge everyone to make this a peaceful country," he said.

Former President Mohamed Nasheed's Maldivian Democratic Party insisted his ouster was a "coup" engineered by rogue elements of the police and supporters of the country's former autocratic leader.

However, a Nasheed adviser denied the resignation came under duress from the military.

Hassan's office also denied the military pressured Nasheed to quit in the wake of Tuesday's street clashes. "It was not a coup at all. It was the wish of the people," said Ahmed Thoufeeg, Hassan's secretary.

"Mr. Nasheed is protected by the current government because there might be some people wanting to harm him," said police spokesman Ahmed Shyam. "He's in a safe place now, but any other action will be decided by the government."

Nasheed's resignation marked a stunning fall for the former human rights campaigner who defeated the nation's longtime ruler to become its first democratically elected president.

Nasheed was also an environmental celebrity, traveling the world to persuade governments to combat the climate change that could raise sea levels and inundate his archipelago nation.

Nasheed presented his resignation in a nationally televised address after police joined the protesters and then clashed with soldiers in the streets. Some of the soldiers then defected to the police side.

"I don't want to hurt any Maldivian. I feel my staying on in power will only increase the problems, and it will hurt our citizens," Nasheed said. "So the best option available to me is to step down."

U.S. State Department spokeswoman Victoria Nuland said that Hassan had informed the U.S. that the security situation in the Maldives was now under control and generally peaceful.

Hassan expressed his strong commitment to a peaceful transition of power and the preservation of democracy.

According to Nuland, the new Maldivian leader expressed his intent to form a national unity government with opposition participation in the lead-up to a presidential election scheduled for November 2013.

Hassan Saeed, a former attorney general, said, "I am happy that the rule of law and justice prevailed. Nasheed's government accused the judge of political bias and corruption.The crisis came to a head Tuesday when hundreds of police demonstrated in the capital, Male, after officials ordered them to withdraw protection for government and opposition supporters protesting close to each other. The withdrawal resulted in a clash that injured at least three people."

Later, troops fired rubber bullets and clashed with the police. When Nasheed visited the police and urged them to end the protest, they refused and instead chanted for his resignation. Mohamed was released after Hassan took power.

Nasheed began his term with great hopes, ending Maumoon Abdul Gayoom's 30-year-reign by winning the country's first democratic elections in 2008.

But over the past year, Nasheed was battered by protests. Police routinely cracked down on opposition protests, while letting government supporters gather freely. For many, the judge's arrest three weeks ago was the final straw.

PM reaches out to new Maldives Prez, assures India's support

A day after the sudden change of regime in Maldives following turmoil, Prime Minister Manmohan Singh on Wednesday reached out to new President Mohamed Waheed expressing India's "continued support" to him.

Dr. Singh wrote a letter to Waheed, who took over after Mohamed Nashed stepped down in the face of widespread protests.

"I take this opportunity to extend my warm felicitations to you on your assumption of office as President of the Maldives," he said in the letter.

The Prime Minister said that as a "close and friendly neighbour" India will, "as always, continue to support the Maldivian people`s efforts to build a stable, peaceful and prosperous country."

Noting that the two countries share a common destiny and have common security interests, he told Waheed that "India is committed to working with you and the Government in Maldives to further enhance our close, bilateral cooperation to mutual benefit and for the continued security, progress and prosperity of our two countries."

Nasheed announced his resignation after weeks of public protests over his order to arrest a senior judge, who had ordered release of a government critic, and handed over the power to his Vice President Mohammed Waheed Hassan.

India had on Tuesday described the change of regime in Maldives due to protests as an internal matter of the country.

GoM allows airlines to directly import jet fuel

In major initiatives to strengthen the cash-strapped aviation sector, a Group of Ministers on Tuesday decided to allow airlines to directly import jet fuel to enable them save on high incidence of tax and permit Air India to raise Rs 7,400 crore by issuing bonds or other means.

The GoM, headed by Finance Minister Pranab Mukherjee, was also apprised of the decision to allow foreign airlines pick up 49 per cent stake in Indian carriers.

While the decisions on direct import of aviation turbine fuel (ATF) and allowing foreign airlines to invest would go to the Union Cabinet for a final nod, the Cabinet Committee on Economic Affairs would take up Air India's financial restructuring plan for approval soon, Civil Aviation Minister Ajit Singh told reporters after the 90-minute meeting in New Delhi.

"First thing is that on Air India's financial restructuring, the GoM has taken a view. Bonds will be issued, but this will have to go to the Cabinet. Bonds, and there are other ways, GoM has more or less taken a view on this," he said, adding that about Rs 7,400 crore would be raised through these means.

On ATF imports, Singh said airline "companies will be allowed to import fuel directly for their use. This also has to go to the Cabinet. GoM has approved this. We will try to see whether some kind of credit arrangement can be made."

The meeting was also attended by Home Minister P Chidambaram, Petroleum Minister S Jaipal Reddy, Commerce Minister Anand Sharma and Planning Commission Deputy Chairman Montek Singh Ahluwalia, apart from top officials.

To questions on allowing foreign airlines to buy equity in Indian carriers, the Civil Aviation Minister said the issue, on which a decision was taken earlier, did not come up before the GoM which was apprised of the issue.

"FDI (by foreign carriers) did not come before the GoM. I met Finance Minister (Jan 17). We are moving a note. Then it will be moved to the Cabinet. It is basically for allowing 49 percent FDI by foreign airlines. I expect this note to be sent soon," Singh said.

Asked about government infusing additional equity of about Rs 6,600 crore in Air India, official sources said this would also be done. Allowing the ailing national carrier to raise funds through government-guaranteed bonds or other means was "over and above equity infusion decision", they said.

Banks and financial institutions had proposed several measures to beef up Air India's net worth and these were among the measures approved by the GoM, the sources said.

Official figures show the debt-ridden carrier has outstanding loans and dues worth Rs 67,520 crore, of which Rs 21,200 crore is working capital loan, Rs 22,000 crore is long -term loan on fleet acquisition, Rs 4,600 crore is vendor dues besides an accumulated loss of Rs 20,320 crore. On jet fuel imports, they said the procedure for direct import of ATF and filling up the planes would be decided in the coming days.

Noting that flights were disrupted when oil companies suddenly stopped fuel supplies to airlines due to non-payment of dues, the sources said, "Some ways have to be worked out to see that this does not happen."

In the same vein, Singh also said that "we have to see if any step can be taken to avoid such situations. Now the airlines are given a three-month credit period by oil companies."

The sources said FDI was one of the key factors that would help the industry to survive the current financial crisis. A Committee of Secretaries has proposed a 49 per cent cap on FDI by foreign airlines. "We all know that the aviation industry is under a lot of stress. Allowing foreign airlines to pick up stake in Indian carriers would mark a major policy shift," Singh had said.

Earlier, foreign airlines were not allowed to invest in Indian airlines, though foreign direct investment of up to 49 per cent was allowed. While the Civil Aviation Ministry had suggested 24 per cent as the limit, the Department of Industrial Policy and Promotion (DIPP) had recommended 26 per cent.

At present foreign investment of up to 49 per cent is permitted in the aviation sector, apart from 100 per cent in MRO (maintenance, repair and overhaul), airports, helicopter and sea-plane operations, but foreign carriers are not allowed to invest in their Indian counterparts.

Stage set for first phase of UP Assembly polls

Polling for the first phase of the high voltage Uttar Pradesh Assembly elections for 55 seats in 10 districts would be held on Wednesday.

More than 1.70 lakh electorate would seal the fate of 862 candidates in the polling to be held in Sitapur, Barabanki, Faizabad, Ambedkar Nagar, Bahraich, Shravasti, Balrampur, Gonda, Siddharth Nagar and Basti amidst tight security.

Stakes are high for ruling BSP, Congress, SP and the BJP in the no holds barred fight for the 403 assembly seats.

Congress and BJP had announced not to support any political parties or group in view of the possibility of a hung assembly while the SP and BSP were confident of being in the race to grab the power.

More than 2 lakh policemen, including 780 companies of Central forces, have been deployed for this phase of elections.

Additional chief electoral officer Mrityunjay Narain said that polling in 10 districts, including Sitapur, Barabanki, Faizabad, Ambedkar Nagar, Bahraich, Shravasti, Balrampur, Gonda, Siddharth Nagar and Basti would be held amidst tight security arrangements.

Narain said that in the first phase 6,855 polling stations have identified as critical and to ensure free and fair elections more than two lakh jawans, including of state police and central forces, have been deployed.

It would be a litmus test for Congress leaders including Beni Prasad Verma and National Commission for Scheduled Caste Chairman PL Punia as both of them represent the areas going to the polls.

Meanwhile, the campaigning in the areas of the state going for other phases is in progress.

BJP President Nitin Gadkari and Samajwadi Party leader Akhilesh Yadav are scheduled to adress rallies in Allahabad later in the day.

Allahabad is going for polls in the third phase on the 15th of this month.

Congress President Sonia Gandhi will address a rally in Karchana area of the city on Wednesday.

BSP Chief Mayawati will also address a rally in the city on Thursday.

Poll process in Goa starts

The poll of filing nominations for the 40 Assembly constituencies in Goa started on Monday.

13^th February is the last day for filing nominations.

Scrutiny of nomination papers will be held the next day.

The last date for withdrawl of candidature will be 16th February.

The polling will be held in single phase on 3rd March.

Facebook files compliance report before court

Facebook India on Monday filed its compliance report before the Delhi court which had ordered it and 21 other websites to remove objectionable content from their websites. 

Google India also told the court that it has removed certain web pages from the Internet on which objections were raised by the petitioners.

Meanwhile, Facebook, Yahoo and Microsoft told the court that they have no role to play in the case and there is no cause of action against them in the matter.

Additional Civil Judge Praveen Singh also posed a query to the counsel appearing for petitioner Mufti Aijaz Arshad Qasmi, as to whether the blog service-providing companies can be made a party to the case for any content posted by the users on the blogs.

The court asked these social networking websites to file written statements in 15 days, and posted the next hearing on 1^st March.

The court had on 20^th December last year, in a ex-parte order issued summons to 22 social networking website asking them to remove “anti-religious” or “antisocial” content in the form of photographs, videos or text which might hurt religious sentiments.

It had on 24^th December set 6^th February as deadline for the websites for the same.

The court’s order had come amid a raging controversy over monitoring the content on Internet and of those websites depending on user generated contents, which arose after Union Telecommunications Minister Kapil Sibal had asked the social networking websites to “screen” the contents.

Out of 21 websites, Google India, Facebook India and Yahoo India have approached the high court for quashing of magisterial court’s summons to them.

The High Court will hear the arguments on the 14^th of this month.

Rahul's politics not aimed at becoming PM: Priyanka

Becoming Prime Minister is not the "central focus" of Rahul Gandhi's politics, according to his sister Priyanka, who said that Manmohan Singh is "extremely good" and a question of change does not arise at the moment.

On a campaign trail in poll-bound Uttar Pradesh, Priyanka also backed Union Home Minister P Chidambaram, saying she feels "sad" about the attacks on him in the 2G spectrum case when he has an "onerous and huge" responsibility towards the people of this country.

Priyanka said that for Rahul the post of party president or Prime Minister was not important and for him his mission of development was more important.

"You see the political career of Rahul Gandhi that whether he should be the party president or Prime Minister, but neither he nor us see it that way...he is more concerned about what he is doing.

"I do not think that is the central focus of his politics. We have an extremely good Prime Minister. We are fortunate to have a person who is honest and works well and I don't think this question arises at the moment," Priyanka told reporters here.

She was replying to a question on whether the time has come for Rahul to become Prime Minister, a demand that is often made by sections within the Congress.

The 40-year-old daughter of Congress president Sonia Gandhi, who was all-praise for Rahul and his contribution to building up the Congress in UP, said he is more concerned about his work than worrying about how the election results would impact his reputation."It his work that matters. He is not concerned about his reputation. Only cowards don't lead from the front."

Asked about the allegations against Chidambaram in the 2G spectrum case, Priyanka said she feels "sad" about the attacks on him. Chidambaram got a huge relief yesterday when a Delhi court threw out a plea to make him an accused in the case. "I feel as the Home Minister he has an onerous and huge responsibility towards the people of this country. I feel sad when he has to waste his time responding to the rants of people who are not concerned about the kind of issues he has to deal with...," she said.

Priyanka maintained that she feels in a similar way with regard to the attacks on the UPA government."I feel sad on how much time is wasted on not allowing the government to function," she said, adding that this takes away precious time.

While stating that becoming Prime Minister or Congress president was not the "central focus" of Rahul's political career, she however did not rule out her brother holding any post, saying if his work requires him to do so, he will.

Priyanka insisted that Rahul is working for bringing about a change in politics.She said that before the 2007 Assembly elections Rahul had explained to her that though Congress was not organisationally strong in UP. He wanted to get involved as his concern was building up the party and work for the welfare of the state. She asserted that Rahul was not working for a reputation but for change. "As I understand it, the mandate my brother is trying to set is for development of the state," said Priyanka, who is campaigning for the UP assembly polls.

Priyanka said her stand on entering politics remains what it was when she was 15 years old and sought to know from an aggressive BJP if it was attacking her as it wanted her venture into active politics.

Asked if she has any plans of entering politics and what was preventing her from taking the plunge, Priyanka said, "I have been answering this question since I was 15 years old. And the answer is constant and the same. If you do not want to accept my answer to this, and of course, if I want to enter politics, you will know immediately."