The LPG Mafia Rulimg India for the Zionist Brahaminical Apartheid Manusmriti Hegemony just Focused on Second Generation Reforms Agenda By Passing Parliament and Constitution as the Political Class is Engaged in Reality SHOW for Vote Bank TRP.Parliamentary proceedings were once again disrupted on Thursday with the Opposition demanding the resignation of Home Minister P. Chidambaram for his alleged role in the controversial 2G spectrum allocations.The Centre is gearing up to notify 100 per cent foreign direct investment (FDI) in single-brand retail, putting behind the embarrassing saga of FDI in multi-brand retail.Krishna, 2 ex-CMs booked over illegal mining charges!A Delhi court on Thursday allowed Janata Party chief Subramanian Swamy to depose as a witness and lead further evidence in support of his private complaint against Union Home Minister P Chidambaram in the 2G spectrum case.Govt comes under sharp attack on prise issue!

Strongly defending its decision to allow FDI in retail, finance minister Pranab Mukherjee today told Congress MPs that the government was "compelled" to suspend the move to avoid "pre-mature elections".

Special project for Naxal areas to be extended to 18 more districts
Social worker Anna Hazare, who has been struggling for the setting up of theLokpal to tackle corruption, may launch another agitation at Jantar Mantar in the Capital on Sunday.

Troubled Galaxy Destroyed Dreams ,Chapter 718

Palash Biswas

http://indianliberationnews.com/

http://indianholocaustmyfatherslifeandtime.blogspot.com/

http://basantipurtimes.blogspot.com/

The LPG Mafia Rulimg India for the Zionist Brahaminical Apartheid Manusmriti Hegemony just Focused on Second Generation Reforms Agenda By Passing Parliament and Constitution as the Political Class is Engaged in Reality SHOW for Vote Bank TRP.Parliamentary proceedings were once again disrupted on Thursday with the Opposition demanding the resignation of Home Minister P. Chidambaram for his alleged role in the controversial 2G spectrum allocations.

Govt comes under sharp attack on prise issue!

Special project for Naxal areas to be extended to 18 more districts!

Sehwag smashes highest ever ODI score

The Indian opener smashed his way into the record books with his 219, surpassing Tendulkar's 200 not out against South Africa in Gwalior on February 24. »

INDORE: Skipper Virender Sehwag, who on Thursday created history by scoring the highest ODI score of 219, admitted that he never expected to score a double hundred although the thought only crossed his mind during the batting Powerplays.

Pics: Sehwag slams highest ODI score |Sehwag's profile | Scorecard

"I never expected to score a double hundred. While opening the innings, I told Gautam Gambhir that if we can show some patience on this track, we will be in for a big one as the wicket is a good one. The outfield is fantastic and the distance of the boundary is only 50 yards," Sehwag said after his epic knock of 219 off just 149 balls against the West Indies.

The dashing opener said that once the batting Powerplay started, the thought of reaching double hundred crossed his mind.

"It was only after the batting Powerplay started, I felt that I could reach double hundred. Also when Sammy dropped me (at 170), I knew that God was with me," Sehwag stated.

He thanked his family and thousands of fans who had always had the expectation that he can score a double hundred in ODIs.

"I want to thank my family and fans. I know people expected me to score a double century. Today when I wanted to hit a six, I just did that."

Sehwag said that he was determined to make amends for the string of poor scores in the first three ODIs.

"I have said this earlier also that the top-order needs to contribute. It was a wicket where one could score big runs if he stayed around for 30 overs."

The historic knock certainly seemed to have taken a toll on Sehwag as he smiled and said: "Obviously, I am very tired. I am an old man now and my back gets stiff. So I need to take an ice bath."

Player	Country	Best	Opp	Venue	Year
Virender Sehwag	India	219	WI	Indore	2011
Sachin Tendulkar	India	200*	SA	Gwalior	2010
Charles Coventry	Zimbabwe	194*	Bangladesh	Bulawayo	2009
Saeed Anwar	Pakistan	194	India	Chennai	1997
Viv Richards	West Indies	189*	England	Old Trafford	1984
Sanath Jayasuriya	Sri Lanka	189	India	Sharjah	2000
Gary Kirsten	SA	188*	UAE	Rawalpindi	1996
Sachin Tendulkar	India	186*	New Zealand	Hyderabad	1999
Shane Watson	Australia	185*	Bangladesh	Mirpur	2011
MS Dhoni	India	183*	Sri Lanka	Jaipur	2005

Krishna, 2 ex-CMs booked over illegal mining charges!

The Centre is gearing up to notify 100 per cent foreign direct investment (FDI) in single-brand retail, putting behind the embarrassing saga of FDI in multi-brand retail.

Strongly defending its decision to allow FDI in retail, finance minister Pranab Mukherjee today told Congress MPs that the government was "compelled" to suspend the move to avoid "pre-mature elections".

Addressing the Congress Parliamentary Party, Mukherjee also apologised to members who had supported the government in allowing FDI in retail but said going ahead with the decision could have created a "crisis" for the government.

"I am sorry to those members who had supported FDI in retail and might be feeling let down. But if we had gone ahead it could have created a crisis for the government," he said.

A member quoted Mukherjee as saying that had the government gone ahead, it could have led to mid-term polls.

It was the responsibility of the Congress to take allies on board, he said in an apparent reference to Trinamool Congress which had opposed the decision.

Trinamool Congress, a UPA constituent and partner in the government, had said it would vote in favour of an Adjournment Motion against FDI in retail.

This stand had created a piquant situation for the government, Mukherjee said pointing out that an Adjournment Motion was similar to a no-confidence motion and never before has any party in the government voted in favour of such a motion.

"This compelled us to put the brake on FDI decision," he said.

Making it clear that suspension of the FDI decision did not amount to roll-back, Mukherjee said that the government would strive to develop a consensus on the issue.

An FIR was registered against External Affairs Minister S.M. Krishna and two other former Karnatka Chief Ministers by the Lokayukta Police on Thursday on a private complaint alleging that they facilitated illegal mining during their tenure.

On the other hand, a Delhi court on Thursday allowed Janata Party chief Subramanian Swamy to depose as a witness and lead further evidence in support of his private complaint against Union Home Minister P Chidambaram in the 2G spectrum case.

External affairs minister SM Krishna on Thursday said he had no role in issuance of licences for mining as chief minister and expressed confidence that the judiciary will put to rest "unholy attempts" at his character assassination.

Krishna was reacting to reports of FIR filed in connection with the mining scam in Karnataka.

"I find from media reports that a private complaint has been filed in the Hon'ble Court dealing with Lokayukta cases in Bangalore. I am given to understand that allegations have been made against me, two other ex-chief ministers and a number of officers," he said in a statement.

He said while his legal team would take "appropriate action at the appropriate time", he considered it necessary to clarify matters as "silence on my part would give rise to speculation". "I wish to point out that I never retained the portfolio of mines and geology. Further, to the best of my knowledge, no mining licence was issued during my tenure," he said.

"Even if such licences were issued, this would have been done by the competent authority of the mines and geology department," the minister said, adding "in view of the above there is no wrongful loss to government. Consequently, there can be no wrongful gain."

Krishna, who had served as Karnataka chief minister from 1999 to 2003, said "there has been no de-reservation of forests, as being incorrectly reported."

He said the cabinet had sometime in 2003 decided to de-reserve mineral wealth for mining. "Government is fully empowered to take such a decision as per the Minerals Concession Rules, 1960," he said.

UPA's Multiple Dysfunctions

UPA's multiple dysfunctions created the perfect FDI storm
The fiasco has highlighted what was till recently only whispered about - infighting in the cabinet and rapid diminution in the authority of PM.

FMCG Companies & Govt Policy

Govt move to restrict pack sizes & weight irks FMCG companies
Cos have urged the govt to keep price points Re 1, Rs 2, Rs 5, Rs 10 and Rs 20 out of this rule in the interest of lower-income group.

Social Media & Censorship

Govt wanted 358 items removed from Google's YouTube, Orkut in Jan-Jun
The report said we only restricted videos that appeared to violate local laws prohibiting speech that could incite enmity between communities.

http://economictimes.indiatimes.com/news/economy/indicators/govt-comes-under-sharp-attack-on-prise-issue/articleshow/11034089.cms

Government today came under sharp attack on the issue of price rise with the Opposition accusing it of failing to curb inflation and the BJP even asking it to quit if it fails to "find a way out" of the current situation.

Leader of the Opposition in Lok Sabha Sushma Swaraj accused the government of pursuing wrong economic policies, while Gurudas Dasgupta ( CPI) said the seasonal reprieve from inflation should not work as a respite for the government which should aim at brining down inflation in the long term.

Referring to Finance Minister Pranab Mukherjee's statement 'I don't know where this country is going' made after a man slapped Agriculture Minister Sharad Pawar, Swaraj said it was the duty of the government of the day to find a way out.

"...You find a way. If you cannot, leave the chair and then we will show the way," Swaraj said, winding up her speech on a discussion on inflation.

She blamed "wrong" economic policies and corruption in government behind price rise.

"CAG has exposed six scams worth crores of rupees. 60,000 tonne of foodgrain is rotting in in godowns and government has taken a loan of Rs 53,000 crore...the RBI has increased interest rates 13 times...have goodies by taking loan," she said.

At one point, Swaraj and Mukherjee had a brief exchange of words.

Swaraj asked Mukherjee to listen to what she was saying instead of reading documents.

Mukherjee shot back by saying that it was repeat of her old speeches and said he was listening to "every word" she has said while going through the notes.

At this Swaraj said the speech can be changed if the government is able to change in situation, prompting the Finance Minister to say that people know what the BJP did when it was in power.

Documents on consultations between Chidambaram and Raja on 2G pricing

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Janata Party President Subramanian Swamy released documents at a press conference in Chennai on November 22, 2011 that throw light on consultations between then Union Finance Minister P. Chidambaram and Communications Minister A. Raja on the pricing of 2G spectrum. While one of them was a note titled 'Spectrum Issues -- Update' from the Department of Economic Affairs of the Finance Ministry, the other was a letter from Mr. Chidambaram to Mr. Raja suggesting that they meet and discuss the issues and later present their conclusions to the Prime Minister.
P.Chidambaram's letter to A. Raja
Spectrum issues - Update by Ministry of Finance, Department of Economic Affairs
Keywords: 2G spectrum scam, 2G pricing, P. Chidambaram, A. Raja, Subramanian Swamy, Finance Ministry note

http://www.thehindu.com/news/resources/article2650856.ece

Social worker Anna Hazare, who has been struggling for the setting up of theLokpal to tackle corruption, may launch another agitation at Jantar Mantar in the Capital on Sunday. reports times of India.

The crusader appeared determined to launch his stir with a day-long dharna at Jantar Mantar on Sunday.

"They (the government) were telling us to honour Parliament. The same Parliament has passed a resolution. Why are you not honouring it? Why do you want it (lower bureaucracy) to be left to the states?" Hazare said in his village.

But Hazare appeared to have relented on the inclusion of the prime minister in the ambit of the Lokpal.

Politics News | Updated Dec 08, 2011 at 05:34pm IST

BJP, Left target Govt on price rise and economy

CNN-IBN

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New Delhi: The Opposition tore into the Government's claims that all efforts were being made to bring down prices and control inflation during the discussion on price rise in Parliament on Thursday.
Opposition MPs including Communist Party of India's (CPI) Gurudas Dasgupta, Leader of Opposition in the Lok Sabha and Bharatiya Janata Party (BJP) leader Sushma Swaraj and Samajwadi Party MP Rewati Raman Singh blamed the Government for not taking enough steps to control spiralling prices even as Finance Minister Pranab Mukherjee argued that the situation was not as bad as it was being projected by the Opposition.
Sushma said, "It is the wrong government policies that is leading to price rise and the government is taking loans to handle the situation."
The BJP also blamed graft and mismanagement and cited Montek Singh Ahluwalia's admission to CNN-IBN of miscalculating on inflation. Sushma Swaraj also said the aam admi continues to deal with high prices.
Earlier the CPI's Gurudas Dasgupta set the terms of the debate by attacking the government on price rise.
Dasgupta said, "Due to capitalism, we are heading to a recession."
Sushma also pointed out that the infrastructure sector development has taken a back seat.
Taking a dig at Planning Commission Deputy Chairman Montek Singh Ahluwalia, who has been educated at Harvard University, Sushma said, "The Indian economy cannot be understood by a Harvard pass-out and they cannot give a solution to the Indian economy."
The Opposition also pointed out that the wrong procurement policy is adding to woes.
Sushma also brought farmers' plight into the picture and said, "The situation of farmers remains the same. Thirteen cotton farmers have committed suicide in 72 days in Maharashtra."
"The FDI in retail would have affected the poor Indian farmers and retailers adversely and the daily wagers would have lost employment," argued Sushma.
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#Sushma Swaraj #Pranab Mukherjee #Gurudas Dasgupta #BJP #CPI #UPA #NDA #Infaltion #Price Rise #Parliament #Winter Session
http://ibnlive.in.com/news/bjp-left-target-govt-on-price-rise-and-economy/210032-37-64.html

Vedanta completes Cairn India acquisition
Press Trust Of India
New Delhi, December 08, 2011

Mining group Vedanta Resources on Thursday completed the long delayed acquisition of oil producer Cairn India Ltd, after 16 months of protracted wrangling over royalty payments. Vedanta paid $8.67 billion for 58.5% stake in Cairn India, the company said in a press statement. Iron-ore unit
Sesa Goa Ltd holds 20% of that stake.
The London-listed mining group with no experience in oil and gas, paid $5.5 billion to British oil firm Cairn Energy for 40% stake and accumulated the rest from public and Petronas of Malaysia.
The third largest acquisition ever by an Indian enterprise globally gives Vedanta control of nation's biggest onshore oilfield in Rajasthan and 9 other properties in India and one in Sri Lanka were a gas discovery was made recently.
"We firmly believe that Cairn India has the potential to double its current capacity and we will work together to achieve it," Vedanta Chairman Anil Agarwal said.
While the transaction was proposed in August last year, the government approved of the deal on June 30 on condition that Cairn/Vedanta pay a share of royalties and oil cess on the crownjewel Rajasthan oil fields.
State-owned Oil & Natural Gas Corp (ONGC), which holds a 30% stake in the Rajasthan block, has paid all the royalties since output started in August 2009. ONGC had demanded sharing of royalty paid by it be treated like other project costs and taxes and recouped from revenues earned from oil sales, a demand opposed by Cairn India.
Cairn India also felt the Rs 2,500 per tonne oil cess was a liability of the licencee and was opposed to deviating from the signed contract to share any of this burden.
The government, however, supported ONGC's stand and made sharing of royalty and acceptance of cess liability by Cairn India preconditions for giving its nod to the transaction.
Despite Cairn India's reservations, its current and future promoters -- Cairn Energy and Vedanta, respectively --accepted the government conditions, following which ONGC waived its preemption rights over the deal.
The Home Ministry also late last month gave security clearance to a Vedanta, which acquired 40% of Cairn Energy's stake at Rs 355 per share.
Cairn India CEO Rahul Dhir in a conference call said Mangala, Bhagyam and Aishwariya oilfields, the largest of the 18 discoveries the company has made in the Rajasthan block, can produce 240,000 barrels per day by 2012.
Mangala, the largest field, is currently producing at 125,000 bpd has potential to go up to 150,000 bpd. Bhagyam, the second largest field, is ready for production and can pump up to 40,000 bpd. Aishwariya can produce 10,000 bpd.

Government has decided to expand its ambitious Integrated Action Plan (IAP) being implemented in 60 selected tribal and backward Maoist-affected districts to 18 more districts.

The Union Cabinet has cleared the home ministry's proposal of expanding the project under which the government is carrying out various development schemes like construction of roads, bridges, school building, provide drinking water to rural population, sanitation and electric works.

Of the 18 additional districts which will be covered in the 12th five year plan beginning next fiscal, six are in Andhra Pradesh, three each in Orissa and Jharkhand and two each in West Bengal, Bihar and Uttar Pradesh.

Under the focused development of 60 tribal and backward Maoist districts in nine states, government sanctioned Rs 25 crore in 2010-11 and Rs 30 crore in 2011-12 through which 63,416 projects were sanctioned and 26,593 projects completed, incurring an expenditure of Rs 1,391 crore till November.

The funds for the project are placed at the disposal of a Committee headed by the District Collector which oversees its implementation.

Among the projects undertaken under IAP scheme, drinking water, sanitation and electric lighting together account for nearly 30 per cent of the projects, school infrastructure 16 per cent and anganwadi centres 13.5 per cent.

The first phase of 60 selected districts are: 15 in Orissa, 14 in Jharkhand, 10 in Chhattisgarh, eight in Madhya Pradesh, seven in Bihar, two in Andhra Pradesh, two in Maharashtra and one each in Uttar Pradesh and West Bengal.

Naxal violence has been reported in areas falling under 270 police stations in 64 districts in eight states.

Trouble in both Houses started following a Delhi High Court order allowing Janata Party president Subramanian Swamy to depose as a witness and led further evidence in support of his private complaint against the Union Home Minister in 2G spectrum scam. Members of Bharatiya Janata Party-led National Democratic Alliance created uproar in both Lok Sabha and Rajya Sabha to seek Mr. Chidambaram's resignation.
The Lok Sabha could not conduct any business as the protests began right from the moment the House assembled with the NDA demanding Mr. Chidambaram's resignation, and members of the AIADMK demanding a discussion on Mullaperiyar dam, which led to the first adjournment, taking a toll on the Question Hour.
In the Rajya Sabha, NDA members created uproar towards the end of Question Hour prompting Chairman Hamid Ansari to adjourn the House for ten minutes till noon and then again till 2 pm.
As soon as Speaker Meira Kumar called for the Question Hour in the Lok Sabha, NDA members were on their feet demanding resignation of Mr. Chidambaram. DMK member T. R. Baalu was heard demanding a discussion on the Mullaperiyar dam issue in Parliament while some other members trooped into the Well and raised slogans. With unruly scenes continuing, the Speaker adjourned the House till noon.
Similar scenes were witnessed when the House met again at 12 noon. After papers were laid and Communist Party of India member Gurudas Dasgupta was asked to initiate the discussion on price rise, NDA members started shouting and demanded that Mr. Chidambaram should step down.
The Speaker tried to pacify the members, saying the House wanted to take up the discussion on price rise for a long time and hence they should cooperate. However, the NDA members continued to raise slogans while MPs from Tamil Nadu walked into the Well to press for their demand on Mullaperiyar dam. The Speaker then adjourned the House till 2 pm.
BJP leader Murli Manohar Joshi later told reporters that since a Delhi court has taken note of this, there should be a probe. "In this situation, Chidambaram should submit his resignation on his own, or else the Prime Minister should sack him," he said.
In the Rajya Sabha, NDA members disrupted proceedings during fag end of the Question Hour. The House had functioned for about 50 minutes when BJP members M. Venkaiah Naidu and S.S. Ahluwalia suddenly stood up to raise the matter. Prime Minister Manmohan Singh was present in the House then.
Disallowing them Chairman Hamid Ansari said, "this is wrong'' and adjourned the House for 10 minutes.
When the House reassembled, unruly scenes were witnessed with several NDA, AIADMK and Left members on their feet. Several BJP members trooped into the Well of the House demanding Mr. Chidambaram's resignation while AIADMK members too walked into the Well raising slogans that were not audible in the pandemonium following, which the chair ordered tabling of papers and reports and adjourned the House till 2 pm.
Earlier both the Houses paid rich tributes to legendary actor Dev Anand, who passed away on December 3 in London.
http://www.thehindu.com/news/national/article2697749.ece

"Complainant Dr Subramanian Swamy is permitted to recall himself as complainant witness one for leading further evidence," Special CBI Judge O P Saini said.

The court told Dr. Swamy that the list of witnesses, which he had filed with his application, for summoning some senior CBI officials and other public servants to press his case would be allowed only after he could explain the relevance of their testimony.

"Other witnesses as mentioned in the list of witnesses filed with the application shall be allowed to be summoned only after relevance of their testimony is explained by the complainant (Swamy)," the court said.

The judge said Dr. Swamy could lead evidence in support of his complaint as he has referred to the role of other conspirators in it.

"In view of the facts that complainant was not aware of the identity of additional proposed accused (s) at the time of filing of complaint, but has now come to know about it, he is not prevented in law from leading evidence on this point, more so, when he has referred to the role of other conspirators in his complaint," the judge said.

The court directed Dr. Swamy to appear in the witness box on December 17 to lead further evidence in support of his complaint against Mr. Chidambaram.

The court had on December 3 reserved its order on Dr. Swamy's plea seeking permission to examine himself afresh, senior CBI officials and others to prove that Chidambaram had taken a joint decision with former Telecom Minister A Raja regarding fixing the price for 2G spectrum.
He had claimed that Mr. Chidambaram, as the then Finance Minister, had permitted Swan Telecom and Unitech, who had secured the licences, to sell their shares to foreign companies.

Apart from Mr. Krishna, his senior Congress colleague N. Dharam Singh and Janata Dal (Secular) Karnataka unit president H.D. Kumaraswamy, who succeeded him as Chief Ministers, have been named in the FIR, Lokayukta ADGP Satyanarayana Rao told PTI.

Eleven bureaucrats have also been named in the FIR filed under various sections of the Prevention of Corruption Act, Forest Conservation Act, Forest Act and Minerals and Metals Regulation and Development Act (MMRDA) and IPC.

Admitting a private complaint filed by T.J. Abraham on December 3, Lokayukta Court Judge N.K. Sudhindra Rao had directed the police to investigate it and submit a report on or before January 6, 2011.

The complainant has alleged Mr. Krishna, who was Chief Minister from October 1999 to May 2004, and Mr. Dharam Singh and Mr. Kumaraswamy permitted illegal mining for pecuniary gains.

Mr. Abraham, a city-based social activist and businessman, had submitted that his complaint was based on the report on illegal mining presented to the government by then Lokayukta Santosh Hegde in August 2011.

With this, four former Chief Ministers are facing Lokayukta Police probe based on private complaints. B.S. Yeddyurappa was released on bail last month after his arrest on a private complaint alleging irregularities in land denotification to benefit his family members.

Reacting to the development, Mr. Krishna said, "Everyone is aware that the then Lok Ayukta Mr. Justice Santosh Hegde conducted a very detailed and comprehensive inquiry into the issue of mining from 1999 to 2010 which covered my tenure as Chief Minister from 1999 to 2004," adding "there is no indictment of me anywhere in the Lokayukta report".

The fact that Mr. Hegde has gone on record in public only further confirms this, he said.

"I fail to comprehend, in the light of the above, the bona fides of the allegations. Attempts at character assassination are one of the most despicable of human behavioural patterns," Mr. Krishna said.

"I am more than certain that the judiciary would vindicate me and put to rest once and for all such unholy attempts," the Minister added.

Finance Minister Pranab Mukherjee on Wednesday expressed the hope that the Direct Taxes Code ( DTC), which seeks to modernise tax laws in the country, will come into force from April 1, 2012.

"The proposed Direct Taxes Code brings together the policy initiatives on direct taxes. It is slated to come into force from the next financial year," he said while addressing an international conference on 'Tax and Equality'.

In a bid to modernise the tax system, the governmenthas proposed to replace the Income Tax Act, 1961, with a new legislation.

With regard to indirect tax reforms, the minister said, "We are moving toward an economy-wide, generalised value-added tax system of Goods and Service Taxes (GST) at all levels in the country."

While giving details of the tax reforms being pursued by the Indian government, Mukherjee also called for greater international cooperation to deal with the menace of tax evasion and black money.

"Tax evasion undermines the intended benefits of a progressive tax policy," the minister said, adding, "Resolution of these issues requires international cooperation and alignment of tax systems for better cross-border compliance."

Quoting global financial integrity report, Mukherjee said annual illicit outflows from emerging economies and developing countries average between $725 to $810 billion.

The Indian government, Mukherjee said, has adopted a four-pronged strategy to deal with the issues of tax evasion and black money.

The strategy includes joining the global crusade against black money and creation of a legislative and institutional framework to deal with illicit money.

Although the strategy has started showing results, Mukherjee said, "The complexity of cross-border transactions is on the rise and presents a serious challenge to tax administrators in practicing and bringing equality."

"The opacity of tax systems in some of the jurisdictions is adding to the challenges. There has been some movement on these issues in response to the initiative by the G-20. We need to pursue this to its logical end," he added.

Referring to tax reforms within the country, Mukherjee said India has been pursuing them in a gradual manner.

The tax reforms, he added, are aimed at rationalisation of tax rates, broadening of the tax base, special focus on sunrise areas like transfer pricing and international taxation, and strengthening of the tax information exchange network.

The government, he added, was also focusing on providing better taxpayer services, a reduction in the cost of compliance and focused enforcement in the case of high net worth individuals.

The progressive personal income tax policy, Mukherjee said, has resulted in a ten-fold increase in revenue collections, which went up from USD 8.62 billion in 1996-97 to USD 87 billion in 2010-11.

"More importantly, the composition of our tax revenues has altered significantly in favour of direct taxes, which now account for nearly 60 per cent of our tax revenues," he added.

Government's decision to suspend plans to open its $470 billion retail sector to foreign supermarket chains has only served to deepen the impression of a government in permanent drift, analysts say.

In a humiliating climbdown on Wednesday, the government capitulated in the face of pressure from opposition MPs and trade unions and shelved the major retail reform which it had announced with great fanfare only two weeks before.

It was another personal setback for Prime MinisterManmohan Singh, 79, whose credibility has been battered by a series of high-profile corruption scandals and who is increasingly seen as ineffectual and out-of-touch.

"It shows you that this government is not strong and is not capable of implementing a policy... there is a total absence of statesmanship," George Mathew, chairman of the Delhi-based Institute of Social Sciences told AFP.

A thumping re-election victory by Singh's Congress party-led coalition in 2009 was seen as a powerful mandate for economic reform, especially as his government was no longer reliant on communist support to remain in power.

But the promised reform wave was restricted to a ripple, as a re-galvanised opposition used a series of graft scandals and other populist protests to hammer the government, paralyse parliament and stall key legislation.

Political analyst Parsa Venkateshwar Rao said the latest U-turn over opening the retail sector was forced, in part, by poor strategy.

Singh's cabinet failed to consult properly with its own allies before announcing what was always going to be a contentious reform, Rao said, thus alienating key coalition partners and even sections of the Congress Party.

"They wanted to take the political initiative... and catch the opposition by surprise, but they didn't anticipate this reaction from their own allies," he said.

Rao also suggested that Singh was increasingly isolated in his commitment to liberalise the economy, with many Congress MPs wary of pushing through tough reforms ahead of state polls next year and a general election in 2014.

"Some Congress partymen are already afraid of the anti-incumbency vote in 2014 and they see Singh as a lame-duck PM," he said.

A poll released in August by a New Delhi-based research institute showed that Indians' top choice for prime minister was Rahul Gandhi, scion of the Nehru-Gandhi political dynasty.

Some 34 percent of the more than 20,000 people polled said Gandhi, 43, should replace Singh immediately aspremier, compared to just 22 percent who wanted Singh to stay on.

The suspended retail reform would have allowed foreign firms to hold a majority stake in "multi-brand" chains, posing the threat of sharp competition to traditional family-run shops which dominate the market and employ millions.

Announcing the rollback in parliament, Finance Minister Pranab Mukherjee insisted that the policy was only being "suspended" until a political consensus was achieved.

But most observers saw that as a disingenuous statement from a government outmanoeuvred by an opposition that had effectively held it to ransom by shutting down the parliamentary process.

"It's worrying to hear the government say they won't go ahead without a full political consensus," Rao said.

"No policy will have a full consensus. It's as though they have submitted to political blackmail by the opposition."

The Federation of Indian Chambers of Commerce and Industry (FICCI), the country's leading business body, described the government's reversal as a "highly regressive move" amid slowing economic growth.

Data released last week showed second-quarter growth skidding to a two-year low of 6.9 percent, hobbled by a string of interest rate hikes that have failed to rein in inflation, still close to 10 percent.

The Indian rupee, the worst performing of Asia's 10 most-traded currencies has slid to record lows against the dollar, as foreign investors abandon Indian and other emerging market currencies in search of safe havens.

Gautam Duggad, retail analyst with Mumbai-based Prabhudas Lilladher, said he feared the current climate meant the retail reform was gone for good.

"We don't expect the government to revive this legislation anytime soon, given the lack of numbers and the impending state government elections.

"We expect the proposal to remain in cold storage and meet the same fate which several other government proposals have met," Duggad said.

Shares of various companies from the two Ambani groups on Thursday fell sharply on the bourses in a weak market, and stocks like Reliance Industriesand RCOM recorded losses higher than the market benchmark.

8 DEC, 2011, 06.22PM IST, PTI

Reliance stocks plunge in weak market; RIL, RCOM top losers

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Centre to notify 100% FDI in single-brand retail with riders

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The HinduA retail outlet in Khari Baoli market, New Delhi. Photo: V.V. Krishnan

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Does India really need this?

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FDI will await consensus Does India really need this?Bihar MPs forced to miss Parliament proceedings Two Bills introduced in Lok Sabha Only rollback acceptable: Karat The retail counter-revolution FDI in multi-brand retail: States could be the deciding factor DMK too opposes FDI in retail trade FDI decision aimed at distracting Parliament: NDA

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The Press Note indicating the change in the FDI limit is likely to be out by next week but could contain a few riders along with stringent conditions for granting approvals to such set ups.

The Centre is gearing up to notify 100 per cent foreign direct investment (FDI) in single-brand retail, putting behind the embarrassing saga of FDI in multi-brand retail.

The government is ready to come out with the requisite Press Note and guidelines for 100 per cent FDI in single-brand retail with some riders. The Union Cabinet had on November 24 approved the enhanced limit of single-brand retail to 100 per cent from 51 per cent, clearing the decks for brands like Marks & Spencer, Zara, Ikea, Gap and Armani to open and own showrooms in the country.

It is expected that the Press Note indicating the change in the FDI limit will be out by next week but could contain a few riders along with stringent conditions for granting approvals to such set ups. Foreign investors are already required to own the brand they intend to retail, the brand must be present in other countries and the retailer must source 30 per cent of the products to be retailed from small industries. The guidelines could make it clear that such a condition will not apply to high tech goods that small and medium scale industries cannot manufacture. However, officials said the 30 per cent limit in this case could be hiked to protect the interests of local small units.

The 51 per cent FDI in the single-brand retail sector had not been able to attract many big names as official records point that in the last three and half years only Rs.196-crore FDI had come in through this route. "We are now hopeful that the enhancement of 100 per cent limit will ensure that big names in single-brand will now seek to penetrate the huge potential of the Indian markets in various brands and segments, which will ensure a good flow of FDI into the country,'' a senior Commerce Ministry official said.

According to Minister of State for Commerce and Industry Jyotiraditya Scindia, more than half of the Rs.196 crore came in 2010-11.

The government has already put on hold the decision to allow 26 per cent FDI in the aviation sector. The issue of enhancing the limit in insurance and defence sectors from 26 per cent to 49 per cent is also hanging fire due to objections from various sections of the government.

Keywords: FDI in retail, foreign investment, retail sector, Indian economy

http://www.thehindu.com/news/national/article2698388.ece?homepage=true

India no longer a preferred destination for MNCs, we have lots of issues: Microsoft

Global software major Microsoft on Thursday said that for MNCs, India is no longer a preferred destination.

PTI | Dec 8, 2011, 07.37PM IST
KOLKATA: Global software major Microsoft on Thursday said that for MNCs, India is no longer a preferred destination.

"It doesn't make sense any more. For MNCs India is no longer a preferred destination. We have lots of issues concerning our operation here," Microsoft India chairman Bhaskar Pramaniksaid when asked if the company is considering any R&D centre for West Bengal as it seeks to work closely with the state government.

He was speaking to reporters on the sidelines of Infocom 2011 conference.

Pramanik later clarified that he was speaking about technology and IT companies.

"I think a lot of that need to be resolved. We have to be cautious about any new investment in the state," he said.

Asked what the issues were, he declined to list the challenges or issues the technology MNCs were facing.

"I think you had better talk to Nasscom. It is the voice of the industry," he said. Nasscomregional (east) head Suparno Moitra declined to comment.

Asked to throw more light on 'preferred destination', Pramanik said, "I think we look at everywhere in the world. I think choices are many," he said.

Meanwhile, reacting to the Centre's decision to suspend FDI in multi-brand retail till a consensus is evolved, Pramanik said he felt disappointed with the government's decision. "FDI in all form is good - be it in retail or aviation," he said.

"We have a strong corporate sector, central and state governments. Checks and controls could be put in place to ensure net gain for the country in terms of employment, growth and earning rather than being negative," he said.

Two Bills introduced in Lok Sabha

AARTI DHAR
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A Bill seeking to give Scheduled Tribe status to Inpui, Rongmei, Liangmai, Zeme, Thangal and Mate communities of Manipur and substitute Galong with Galo - the right name of the tribe - in the list of Arunachal Pradesh was introduced in the Lok Sabha on Wednesday.
The Bill to amend the original the Constitution (Scheduled Tribes) Order, 1950 was introduced by the Minister of Tribal Affairs V. Kishore Chandra Deo
At present there are 33 communities appearing in the list of the Schedule Tribe in Manipur and the amendment will meet a long standing demand for considering grant of ST status to these communities.
In the Arunachal Pradesh list, Galong community was mentioned. The State government has been recommending for long that the name Galo be substituted in place of Galong.
"Galong is a distorted version of the original world Galo. A change is, therefore, required in the list of ST in Arunachal Pradesh," the Constitution (Scheduled Tribes) Order (Amendment) Bill, 2011 said.
Another bill to bifurcate the joint cadre of IAS, IPS and Forest Service for the states of Tripura and Manipur was also introduced in the Lok Sabha.
The North-Eastern Areas (Reorganisation) Amendment Bill, 2011, was introduced by Minister of State for Home M Ramachandran to amend the original Act of 1971.
One the new law comes into force, Tripura and Manipur will have a separate cadre of the IAS, a separate cadre of IPS and a separate cadre of Indian Forest Service, he said.
Presently there is a joint cadre of these services for the two States.
Keywords: Lok Sabha, tribal welfare
http://www.thehindu.com/news/national/article2695340.ece

Krishna denies issuing mining licence as Karnataka CM

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PTIExternal Affairs Minister S.M. Krishna at a press conference. File photo

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Krishna, 2 ex-CMs booked over illegal mining charges Court orders FIRs against three ex-Karnataka CMs

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External Affairs Minister S.M. Krishna on Sunday denied issuing any licence for mining in forest area when he was Karnataka Chief Minister. He also shot down accusations that the State had suffered losses or that he had gained wrongfully.

Mr. Krishna sought to clarify his position through two statements in the wake of a complaint filed against him and the State Lokayukta Justice N.K.Sudhindra Rao ordering a probe against him and two other former Chief Ministers, N. Dharam Singh and H.D. Kumarswamy, and seeking a report by January 6.

The Union Minister underlined need to clarify matters, saying that "silence on my part would give rise to speculations." He pointed out that the then Lokayukta, Justice Santosh Hegde, had conducted a detailed enquiry into the mining issue from 1999 to 2010 — covering his tenure from 1999 to 2004 as well. He said he was not indicted in the report and that the latter too had gone on record in public confirming this.

Mr. Krishna denied any kind of de-reservation of forests, saying that in 2003 the Cabinet approved de-reserving mineral wealth for mining under the Minerals Concession Rules 1960 and, pursuant to that, a gazette notification was issued under which a "no objection certificate" had to be obtained from the Forest Department for mining leases.

He said he had never held the portfolio of Mines and Geology. "To the best of my knowledge, no mining licence was issued during my tenure. Had it been done, it would have had been by the competent authorities." In such a situation, "there is no loss to the government. Consequently there is no wrongful gain."

Keywords: Illegal minings probe, External Affairs S.M. Krishna, Karnataka Lokayukta

http://www.thehindu.com/news/national/article2686751.ece

Chidambaram guiltier than Raja, says Swamy

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Janata Party president Subramanian Swamy alleged that Union Minister P. Chidambaram was "more guilty" than the former Communications Minister, A. Raja, in the 2G spectrum allotment scam.
Releases document
Addressing a press conference here on Tuesday, he released a document dated July 4, 2008 from the Department of Economic affairs, Ministry of Finance, which, he said, would "demolish the Congress claim that Mr. Raja alone fixed the price and Mr. Chidambaram had no role."
According to the document, "meetings took place between Finance Minister and Minister of Telecommunication on May 29, 2008, and June 12, 2008, to resolve outstanding issues relating to allocation and pricing of 2G and 2G spectrum bands." Then "it has been agreed that the 'base price' shall be determined by taking the entry fee of Rs. 1,650 crore (determined in 2003-04) for pan-India operation of UASL licencees as the price of spectrum for 6.2 MHz of bandwidth for GSM operators."
"Far lower"
Hence, Dr. Swamy contended that they acted together and fixed a price which was nothing but that fixed by the National Democratic Alliance Government in 2001. Thus the final price was far lower than what it would have fetched had it been auctioned.
Dr. Swamy also released a letter from Mr. Chidambaram to Mr. Raja on April 21, 2008, suggesting that they could "meet and discuss and reach some conclusions. These conclusions could then be presented to the Hon'ble Prime Minister."
The letter says based on Mr. Raja's "non-paper" on spectrum charges, the Finance Secretary had held discussions with the Secretary, Ministry of Communications and Information Technology.
Based on those discussions, Mr. Chidambaram enclosed a non-paper "containing our views relating to 2G spectrum and issues relating to 3G/WiMax spectrum" and suggested that after Mr. Raja examined it they could meet and discuss the issue.
"Equity dilution"
Dr. Swamy said Mr. Chidambaram allowed some companies to opt for "equity dilution" which was not permitted for three years. This had allowed some companies to get licences through a circuitous route. "What you are not permitted to do directly, you cannot do indirectly as well," he asserted.
Also, even without telling Mr. Raja, two "blacklisted" companies were allowed to get licences by Mr. Chidambaram, Dr. Swamy added.
Keywords: 2G spectrum scam, 2G pricing, P. Chidambaram, A. Raja, Subramanian Swamy, Finance Ministry note
http://www.thehindu.com/news/national/article2651015.ece

The cost of open skies

C. P. CHANDRASEKHAR
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India's aviation industry has been lobbying for a government bailout. With Kingfisher Airlines on the verge of bankruptcy, there are a number of ideas on how the bailout can be delivered: getting oil companies to lower aviation fuel prices, reducing taxes on fuel, persuading banks to restructure debt and offer new credit on easier terms, and changing the rules to allow foreign airlines to bring in capital in return for equity.
According to reports, promoters and top executives of leading private sector airlines met the Prime Minister late November to make their case. Their arguments went along expected lines: aviation fuel costs amount to as much as 40 per cent of operating costs; fuel prices have risen sharply; government taxes tend to push up prices even more; and aviation fuel prices in India are as much as 70 per cent higher than elsewhere in Asia. The net result according to them is a substantial loss that is challenging their viability. So the state must step in to rescue the airlines.
The sense is that the Prime Minister is inclined to intervene in their favour, though matters like FDI in retail have postponed the decision. Under other circumstances the PM's stance may have appeared normal. The airline industry is an important part of the country's infrastructure and the fuel price hike is an external shock threatening the survival of leading players. But fuel prices affect not only the airlines. Directly and indirectly they affect every segment of the population, including the poor and the middle classes. Yet the government in recent times has been clear that it will not go back on its decision to reduce fuel subsidies by doing away with the administered pricing mechanism and will stick with its policy of adjusting domestic prices when international prices change. Nor will it forego revenues by cutting duties on fuel any further. Money, the Prime Minister is reported to have said, does not grow on trees.
This difference in approach when it comes to preventing the erosion of the real incomes of ordinary citizens and to protecting the profits of the airlines is a striking anomaly. It is explained by the fact that part of the mess in aviation today is because of the government's open skies policy. That policy was influenced by the view that opening up the airline industry to new and multiple private operators would enhance competition, reduce prices and improve the quality of customer service.
One danger, however, is that "competitive markets" often result in failure. Wrong decisions leading to excess capacities, price wars that reduce margins and just plain bad management can lead to losses and the bankruptcy of one or more players in the market. According to the votaries of the market mechanism this is inevitable. So when losses occur for these reasons, governments should not intervene but should let markets work. If some firms go bankrupt, so be it. It is merely the way in which the market imposes its discipline, penalising wrong decisions or poor management, and delivering a meaner, leaner and more efficient industrial landscape.
However, despite having opened up the airline sector on grounds such as these, the government has been reluctant to stick by these principles. In the Kingfisher case, it now transpires that the ailing airline has been on life support from three sources among others: huge volumes of credit from the banking sector, including public sector banks; a conversion of part of the loans provided by banks into equity such that the banks hold 23 per cent of the shares in the airline; and short term credit from the oil distribution companies on the aviation fuel being consumed by the airline. It has been known for some time now that the company had accumulated losses that exceeded its equity and reserves. But it was when the airline could not meet its bills for aviation fuel and the oil companies stopped supply on credit that the cancellations and the crisis began.
The story of how we got here is linked to the government's liberalisation drive since the 1990s. The justification for that drive was that long years of monopoly ownership of the public sector in the airlines business had resulted in inefficiency and high costs and low profits or losses in Air India and Indian Airlines. Nobody would defend these public sector firms as being the paragons of efficiency. But the fact of the matter is that a whole host of "extraneous" factors affected the profits of Air India and Indian Airlines.
To start with, the functioning of these public sector entities was driven by objectives other than sheer profit. For example, they were required to fly on a number of unprofitable routes to ensure connectivity in a geographically large nation, including on routes to remote locations with relatively sparse traffic. Internationally, Air India was the nation's carrier ensuring connectivity not just for commercial profit but for reasons related to diplomacy.
In sum, the profit criterion was for long subordinate to other objectives for the national carriers. This, however, did result in the misuse of the "freedom", leading to unwarranted costs and losses that were ignored. To boot, with the ministry of civil aviation combining in itself the role of policy maker, investment decision maker and day-to-day monitor of the airlines operations, the companies were subject to excess intervention, were made the victims of wrong investment decisions and were forced to engage in activities that may not have been commercially or socially appropriate. Even now, for example, there is a controversy surrounding decisions with regard to aircraft purchases made before Air India and Indian Airlines were merged. Those acquisitions, which would require Air India to pay out huge sums when it has accumulated losses are seen as inappropriate in terms of route management and on financial grounds.
Given this evidence, what was required in the airline industry was an all out effort to revamp Indian Airlines and Air India. The revamp should have sought to ensure greater autonomy in functioning, institutional change to ensure transparency in investment and operational decision-making, and appropriate governance and monitoring mechanisms. Rather than focus on such changes, the government sought to induct private initiative into the airline industry on the grounds that the competition will improve overall efficiency.
As a result of that indiscriminate opening up, over the years the business has seen the entry of a large number of private players. Knowingly or unknowingly these investors had bought the argument that the only reason for the poor profit performance of the public sector airlines was their incompetence. Any number of efficient operators that could keep costs down and offer better services at a cheaper price would be able to quickly turn a profit. The net result was irrational investment, excess capacity on many routes and severe price competition on some. The government's view was that this was merely a temporary process of adjustment. Wrong decisions by private operators would lead to a "shake out" and some airlines would close down and others would survive, resulting in a fitter, leaner and more customer-friendly industry.
Initially it appeared that this was indeed occurring. Small airlines like NEPC and bigger and stronger ones like ModiLuft and Air Deccan had to close or sell out. But, over time, for each airline that was shrinking or closing there appeared to be more than one emerging. And most were expanding their fleet and routes quite significantly. The irrationality of private decision-making under the market mechanism was more than visible.
Kingfisher was a relatively late entrant into the business with a business model the matched its promoter's flamboyance. It would cater to the upper end of the market where the distinction between economy class and business class ended. And when Air Deccan ran into financial difficulties, promoter Mallya decided to acquire that company and combine his "luxury", full-service airline (Kingfisher) with a no-frills twin, Kingfisher Red. All this was occurring at a time when the market was already showing signs of saturation, fuel prices were volatile, and cost consciousness was the prerequisite for survival. And decisions to expand that were not grounded on a viable business plan were a way of courting disaster. In the event, when rising fuel prices put pressure on costs, the Kingfisher myth was shown to be what it was: more a show than a business.
However, the problem with Kingfisher did not catch public attention for two reasons. First, it managed to fund much of the business with outside money, especially money in the form of credit from the banks. Second, it managed to reduce the cost of this capital by getting the banks to convert a part of this debt to equity. Interest on debt has to be paid even when a company makes losses. But dividends on equity need to be distributed only if profits are made.
These sources of support did not, however, save the business from losses that have created a gaping financial hole that needs to be filled. But here the airline and its promoter are exploiting the fact that it has grown rapidly to emerge as one of the larger carriers in the business in terms of market share. Like the American banks during the crisis, Kingfisher is being presented as "too big to fail". The failure of the airline would lead to a sudden disruption of air traffic, it is said. It would result in a loss of access of finance to other airlines, which could trigger more bankruptcies in the business. It could badly damage the banks that are heavily exposed to the airline, which could have repercussions elsewhere in the economy. But most important for the government is that it would give liberalisation a bad name.
It is this which explains why both the Prime Minister, Manmohan Singh, and the Civil Aviation Minister, Vayalar Ravi, were quick to declare that Kingfisher needs to be "saved". Though they have subsequently turned silent or retracted their statements, the effort to "bail-out" Kingfisher is on. The bailout strategy seems to be one in which the oil companies, the banks and the government (read the tax payer) would share the cost of rescuing the company suffering because of the wrong decisions of its original promoters.
Keywords: aviation, Air India, Kingfisher Airlines, debt crisis, bailout, brankruptcy
http://www.thehindu.com/opinion/columns/Chandrasekhar/article2683552.ece

Indian Army blinded by controversial equipment

VINAYA DESHPANDE
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The HinduThe Indian Army is now firming up plans to purchase another Rs.165 crore worth of equipment from Rolta. MI17 sources said no fresh procurement procedure will have to be carried out because the vendor continues to be Rolta. File photo

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Military Intelligence paid hundreds of crores of rupees for outdated software, documents obtained by "The Hindu" show

The Indian Army's imagery interpretation capabilities, critical to providing information on the locations of enemy troops and their military assets, have been compromised by flawed contracts placed with a company that has failed to provide critical software upgrades, an investigation by The Hindu has found.

Documents obtained by The Hindu from the Ministry of Defence show that the firm responsible for supplying and integrating software used in critical image intelligence analysis was relieved of its responsibility to provide free upgrades in 2008 — and is now on the verge of receiving a Rs.165-crore contract for the supply of software it may no longer have licensing rights for.

MI17 — the super-secret military intelligence department that analyses data provided by India's spy satellites — relies on software provided by global software giants Intergraph, Oracle, and Bentley.

Rolta, an Indian company, supplied photogrammetry and geographical information system software licensed from these firms to the Army in 1996, integrating them into a single package to meet MI17's specific needs. From then to 2008, things went well — when a new contract for 14 photogrammetry and geographical information system packages came up to be signed.

The earlier contract bound Rolta to provide software "updates and upgrades" free of cost, as part of a maintenance contract. In 2008, though, the phrasing was changed to just "updates"— freeing Rolta of the obligation to provide the most recent software released by the original equipment manufacturer.

Rolta was paid Rs.506.45 crore for equipment purchased between 1998 and 2008. In addition, it received annual maintenance contracts for equipment purchased during this period; as of December 2008, their cumulative value was Rs. 40.66 crore per annum.

But by early this year, highly-placed military sources said, MI17's image-processing speeds had fallen to just a seventh of those being obtained by the National Technical Research Organisation, which also analyses the same data using similar software with the latest upgrades, Intergraph-Erdas.

Dubious negotiations

The records of the contract negotiation committee, or CNC, show a series of questionable decisions led to this outcome. In the fourth meeting of the CNC, one member noted that an odd change had been made to the name of the software being supplied to MI17: "the vendor," he observed, "had added [the] company name 'Rolta' in all the software being provided by him." The change of name implied that the equipment being supplied was not the same as was purchased in 1996, which would have necessitated fresh acquisition procedures to be initiated.

Atul Tayal, Rolta's representative, responded in the fifth meeting of the CNC that only the brand name was changing — not the equipment itself. During Rolta's "association with the Indian Armed Forces over more than one decade," he said, "the company had developed a number of customised modules specifically designed to address the needs of the Military Intelligence Directorate."

"These customised modules," he wrote, "are integrated with the basic equipment and supplied to the user. Due to this the company has decided to supply these equipments [sic.] under the brand name of Rolta India Limited after the necessary approval of M/S Intergraph, USA, and other parties."

The CNC guarded its flanks, the minutes of its fourth meeting show, with its chairman insisting that "a certificate from the vendor be obtained certifying that software offered in the present and previous contract are the same." It was further directed, the minutes record, "that adequate provisions will be made in the contract to confirm the fact at PDI [pre-delivery inspection] and ATP [acceptance test procedures] stage."

In a September 2010 letter, Rolta certified it would "have full guarantee and warranty from Intergraph Corporation with respect to the goods sourced from them for IIT [imagery interpretation team] equipment under replacement." The certificate was signed by Brigadier Anjum Shahab, the Regional Director of Defence Sales for Rolta – and the same individual who, as Deputy Director General of Military Intelligence in 2008, served on the controversial CNC.

The actual "full guarantee and warranty" from Intergraph was never provided, for the simple reason that the 2008 contract did not call on Rolta to hand it over. From other documents, however, it seems apparent that no such guarantee actually exists. In a letter to the Defence Secretary, written on July 8, 2011, Intergraph said it had "reliably learnt from a number of Ministry of Defence officers that the Indian Army may have been supplied Intergraph GIS software under a different name."

It asserted that Intergraph had at no point authorised anyone "to customise any of the products and/or to sell the Products under the name and/or branding of the Distributor or any other company." Put simply, that meant Rolta had no rights to license Intergraph software to the Army — and that Intergraph would not, therefore, supply the periodic upgrades that came with the package.

Nonetheless, the Indian Army is now firming up plans to purchase another Rs.165 crore worth of equipment from Rolta. MI17 sources said no fresh procurement procedure will have to be carried out because the vendor continues to be Rolta — even though its elements are likely to be assembled from modules supplied by a Canada-based software company, PCI Geomatics.

More than half the cost of the new order, sources said, is made up of software giving capabilities that MI17 would have had anyway, if upgrades had been obtained since 2008. Documents available with The Hindu also reveal that the Planning Officer of the Directorate of Planning and Coordination, Department of Defence Procurement, had written a letter on November 17, 2009, recommending that fresh "equipment may be procured through competitive bidding."

Indian Army officials declined to discuss the contract on record, or to discuss specifics. However, a high military official who briefed The Hindu on condition of anonymity said that while he was aware of complaints about Rolta, they were "being made to malign the operational efficiency of the Army." He noted that Rolta was not obligated to give upgrades, but did not explain why the 2008 contract, and subsequent ones, had relieved it of its earlier obligation to provide them. For its part, Rolta also pointed out that it had met its contractual obligations. In an e-mail to The Hindu, Rolta said it had "provided all deliverables it has been contracted to under various agreements with MoD." In response to a question on whether they had permission to supply Intergraph software, Rolta said the equipment it had supplied was delivered "in line with their respective end-user licences." Mr. Atul Tayal told The Hindu that the allegations "are absolutely baseless and seem to have been made with mala fideand motivated".

Keywords: Indian Army, controversial equipment, MI17, critical software upgrades, Intergraph, Oracle, Bentley, spy satellites, Ministry of Defence, National Technical Research Organisation, contract negotiation committee

http://www.thehindu.com/news/national/article2696004.ece?homepage=true

Microsoft upset over suspension of FDI in retail

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The HInduA file photo of Bhaskar Pramanik, chairman of Microsoft India.

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The Centre's decision to suspend FDI in multi-brand retail till a consensus is evolved has not only upset the domestic and international retail chain majors but also software major Microsoft.

"Yes, I am very disappointed with the government's decision to put FDI on hold. FDI in all form is good be it in retail or aviation," Microsoft India chairman Bhaskar Pramanik said in Kolkata on Thursday.

"We have a strong corporate sector, central and State governments. Checks and controls could be put in place to ensure net gain for the country in terms of employment, growth and earning rather being negative," he said.

Interestingly, Microsoft has products for retail billing, retail management and solutions for aviation sector.

Indian government is yet to take a call on allowing FDI in domestic aviation sector despite there was demand from a section, including Kingfisher.

Mr. Pramanik also said India was no more a preferred destination for technology and IT MNCs on account of number of issues, but did not give details.

Keywords: FDI in retail, Microsoft

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Palash Biswas
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