Search and rescue teams were heading to the area just south of the capital, said Bambang Ervan, a spokesman for the Ministry of Transportation. Bad weather, however, forced at least two helicopters to turn back.

The Sukhoi Superjet-100 took off from Jakarta’sHalim Perdanakusuma Airport at 2:21 p.m.

It dropped off the radar 21 minutes later near the Salak mountain range, after the crew asked air traffic control for permission to descend from 10,000 feet to 6,000 feet (3,000 meters to 1,800 meters).

No explanation was given for the sudden change of course. Though drizzling at the time, it was not stormy.

“I saw a big plane passing just over my house,” Juanda, a villager who lives near the 7,200-foot- (2,200-meter)- mountain, told the local station TVOne.

“It was veering a bit to one side, the engine roaring,” she said. “It seemed to be heading toward Salak, but I didn’t hear an explosion or anything.”

Rear Marshal Daryatmo, chief of the national search and rescue agency, said several diplomats from the Russian Embassy, potential buyers from major Indonesian airlines and journalists were on board what was supposed to be a 50-minute demonstration flight, the second of the day.

Together with the Russian crew, the plane was carrying 50 people, said Sunaryo, from PT Trimarga Rekatama, the company that was responsible for the guest list. Like many Indonesians, both Sunaryo and Daryatmo use only one name.

Though the air search was called off by early evening, soldiers, police and members of the air force had joined the land-based rescue efforts. They were expected to continue through the night, but the terrain was rough and difficult to navigate after darkness fell.

“Hopefully they’ll be able to reach the location tonight,” Daryatmo said.

Developed by the Russian aerospace company Sukhoi in co-operation with Western partners, the plane is the first completely new airliner designed by Russia since the Soviet collapse.

Russia has hoped that the short- to mid-range jet, which made its maiden run in 2008, would help it break into international markets dominated by Boeing and Airbus.

It was on the fourth stop of a six-nation “Welcome Asia!” road show after having already been to Myanmar, Pakistan and Kazakhstan. It was supposed to head next to Laos and Vietnam.

The complete text of the Introductory Remarks made by the Finance Minister Shri Mukherjee is given below:

I would like to start this Press conference giving a brief preview of the Indian Economy. The unfolding of the euro zone has impacted the Indian economy through lower growth, falling business sentiments, declining capital inflows and exchange rate and stock market volatility with attendant implication for investor confidence. Despite these challenges, India has continued to be a front runner in terms of economic growth in the region, which underlines the resilience of the Indian economy. We have managed to maintain a growth rate of 6.9 per cent in 2011-12 with continued emphasis on inclusive growth. Steps are being taken to meet the fiscal deficit. In Union Budget 2012-13, we have focussed on strengthening domestic growth drivers, encouraging private investments to regain its pre-2008 crisis growth momentum and addressing supply constraints in infrastructure and agriculture sector.

The monetary authority in India has on 17th April 2012 reversed the policy rates for the first time, after a gap of nearly three years. I hope this will help in investment revival and contribute to strengthening of business sentiments. On the fiscal front, we are committed to bring down the subsidy bill below 2% of GDP in 2012-13 and to 1.75% of GDP in next three years.

We have taken several steps to shore up the short and medium term growth prospects which include gradual liberalization of capital market and encouraging capital inflows including through FIIs, FDI and in the area of External Commercial Borrowings, especially for infrastructure financing. The Indian economy is more resilient than many other nations to withstand this fresh round of global economic turmoil, as the bulk of India’s GDP is domestic demand driven. India’s External Commercial Borrowings Policy has been successful in maintaining external debt at sustainable levels. India’s banking sector is robust and our regulatory architecture is mostly in place. I am confident that the strong fundamentals of our economy will help us return to a sustained growth path of pre 2008 crisis level in the coming years.

India is a Founder Member of the ADB and our association with the institution dates back to 1966. The 45th Annual Meeting of Board of Governors of ADB here in Manila provided opportunity for meeting intellectuals and policy makers from across Asia and the world. In my intervention at the First Business Session of the Board of Governors yesterday, I highlighted that infrastructure development, dealing with the challenge of urbanization, managing food security, raising agricultural productivity, promoting efficient renewable sources of energy, improving livelihoods through inclusive growth and advancing regional cooperation are some of the key areas which need to be addressed with seriousness for sustaining the growth of Asian region. ADB is uniquely placed to assist in realizing the full potential of the region.

During my stay in Manila, I held bilateral meetings with the Finance Ministers of Bhutan, Bangladesh and the President of ADB. The new President of Japan International Cooperation Agency (JICA) also called on me. Issues of mutual interest were discussed. I would also be meeting Secretary of Finance, Republic of Philippines during my stay.

India is honoured to be the host of 46th Annual Meeting of the Board of Governors of the ADB that is scheduled to be held on May 2-5, 2013 in Delhi. We have chosen as theme for the event “Development through Empowerment” . This theme reflects the development strategy of India namely, empowerment backed by legal entitlement and encompasses issues that are critical for sustaining high and inclusive growth in Asia.

I am extremely happy that a Website to publicize the event was formally launched by the President of ADB and myself just now. This website will provide information about the Delhi Annual Meeting and act as a link between the host country and prospective delegates. We hope the Annual Meeting of 2013 will help bring countries of Asia closer to each other and also facilitate the formulation of policies that can lead us towards greater prosperity and well being. I welcome all colleagues from the media to visit India in May, 2013 and make this event a big success.

The breakup of current gas production in above block is as under:

D1 and D3 fields        :           28.93   MMSCMD

MA field                     :             6.64   MMSCMD

Total                           :           35.57   MMSCMD

The Minister also stated that the issue of falling gas production in KG-D6 block has been deliberated in various Technical Committee Meetings held between Contractor(s) and DGH including the field visit by DGH technical team to ascertain the reasons for less gas production. The Management Committee (comprising of representatives of GoI/DGH and Contractor (s)) has also examined the issue from time to time. The major reasons for fall in gas production are as under:

·         6 out of total 18 gas producers put on production in D1 and D3 fields have ceased to flow due to water loading/and ingress in the wells.

·         1 oil/gas producer in MA field out of 6 oil/gas producers has ceased to flow due to water loading in well.

·         Non-drilling of gas producers in D1 & D3 by the Contractor(s) in line with the approved AIDP. So far, 18 producers have been drilled, completed and connected as against 31 producers by 31.03.2012 as per approved AIDP.

He further said that in order to increase the gas production from KG-D6 block, the Contractor has been advised to drill more gas producers in D1 & D3 gas fields as well as adopt appropriate remedial measures such as wells intervention in D1 & D3 and MA fields to revive the sick wells in order to achieve the gas production in line with approved FDP. The Contractor has drilled 4 more wells in D1 & D3 which are yet to be completed or connected. Further, the Optimized Field Development Plan for 4 other gas discoveries (D-2,6,19 &22) in this block has been approved by the MC in January, 2012.

The data on fish production given below shows a rising trend in seafood production:

(Production in ‘tonnes)

(Source: NFDB)

The assistance released as grant-in aid for development for fish processing under the Scheme for TechnologyUpgradation/Modernization/ Establishment of Food Processing Industries in last three years is as under :

2008-09 – Rs.407.00 lakh

2009-10 – Rs. 396.00 lakh

2010-11 – Rs. 342.00 lakh

2011-12 – Rs.575.75 lakh (as on 23.03.2012)

This information was given by Dr. Charan Das Mahant, Minister of State for Agriculture and Food Processing Industries in written reply to a question in the Lok Sabha

Food Safety and Standard Authority of India (FSSAI) has been set up to lay down science based standards for articles of food and also regulate, inter-alia, its manufactures. The Authority is also mandated to promote consistency between International technical standards and domestic food standards while ensuring that the level of protection adopted in the country is not reduced. Moreover, to ensure compliance of the laid down standards by the food processing companies, inspection of such units at regular interval is done by the enforcement agencies. In case of any violations, penal/legal actions are taken against the defaulters as per relevant provisions of the Food Safety and Standards (FSS) Act, 2006.

This information was given by Dr. Charan Das Mahant, Minister of State for Agriculture and Food Processing Industries in written reply to a question in the Lok Sabha

Mittal, 61, and his family’s worth came down by 4,814 million pounds, but they were still the richest in Britain with a net worth of 12.7 billion pounds, according to the Sunday Times Rich List, which annually releases the worth of Britain’s wealthiest individuals.

Mittal is marginally ahead with the Russian iron ore magnate, Alisher Usmanov, who takes the second place with an estimated worth of 12.3 billion pounds.

Indian-origin industrialist brothers, Sri and Gopichand Hinduja were the fourth richest in the list with a net worth of 8.6 billion pounds, ‘The Sunday Times’ said in an advance release on Saturday.

The newspaper’s research reveals that the rich got richer over the last year, despite a global recession the combined worth of the country’s 1,000 wealthiest people was 414 billion pounds, which is an increase from last year of 4.7 per cent.

Rich List compiler Philip Beresford told Sky News: “Obviously it’s very difficult in this age of austerity…and the rich seem to be getting richer and richer. However, I would caution against bashing the rich because a lot of the people on this rich list are based here, they’re investing in companies here, and if they get richer hopefully the rest of us will get a bit more prosperous on the rising tide of wealth.”

The number of billionaires in the list is 77, with individuals needing to have at least 72 million pounds to make the top 1,000 individuals.

After Mittal and Usmanov, third on the list is Chelsea owner and oil baron Roman Abramovich, with a net worth of 9.5 billion pounds. The richest woman is former Miss UK Kirsty Bertarelli, with 7.4 billion pounds, while the Duke of Westminster’s property portfolio is worth 7.3 billion pounds.

Harry Potter creator JK Rowling’s worth has risen by 30 million pounds in the last year to 560 million pounds, putting her 148th on the rich list.

The top ten richest individuals in Britain are (in pounds): 1 – Lakshmi Mittal and family – 12.7 billion. 2 – Alisher Usmanov – 12.3 billion. 3 – Roman Abramovich – 9.5 billion. 4 – Sri and Gopi Hinduja – 8.6 billion. 5 – Leonard Blavatnik – 7.58 billion. 6 – Ernesto and Kirsty Bertarelli – 7.4 billion. 7 – The Duke of Westminster – 7.35 billion 8 – David and Simon Reuben – 7.08 billion. 9 – John Fredriksen and family – 6.6 billion. 10 – Galen and George Weston and family – 5.9 billion.

Singh instantly logged on to their website (www.milaap.org). She not only understood their work and the loan management and repayment plan but also saw the kind of women, children and unemployed youth she would be reaching out to if she decided to lend money. Then, as she turned a year older, Singh marked the occasion by extending a loan, which she was sure would help someone, somewhere lead a better life.

Says Singh, “I had never imagined that becoming a lender would be such a joyful experience. It was the best birthday gift I could give myself. While I had been donating money and materials off-and-on, helping people who are helping themselves by giving them a loan has been satisfying.”

Of course, it is precisely to tap this vast resource pool of socially conscious individuals keen to give back to society that Anoj Vishwanathan, Mayukh Choudhury and Sourabh Sharma got together and set up Milaap in 2010. While Vishwanathan was well versed with micro-financing, having worked with SKS Microfinance, Choudhury had an understanding of the rural poor, as he was engaged in rural electrification programmes in Uttar Pradesh and Sharma, a Computer Science graduate, brought his considerable business development and IT marketing skills to the group.

When Vishwanathan was attached with SKS Microfinance he got to see first-hand the kind of difference something as fundamental as solar lighting could make to impoverished households in Odisha. Unfortunately, the solar lanterns were out of their reach as there were no affordable loans available for such products. At the same time, he also observed that there were numerous well-to-do individuals in big cities acrossIndia, looking for avenues to make a difference. “There was a need to connect them to those in need and that’s what we do,” says Vishwanathan.

Expanding on the Milaap philosophy, Sharma adds, “We believe that everyone, irrespective of gender, should have access to credit that can contribute to an improved standard of living. Therefore, we make it our business to provide small loans to a borrower screened by our partner organisations.”

Within a span of nearly two years, over 4,000 lives have been transformed and close to 130 unemployed youths have managed to secure white/blue collar jobs, with the over US$215,000 raised in loan amounts till date.

With the Milaap loans, several families across Maharashtra, West Bengal, Tamil Nadu and Karnataka – where the organisation has been working with its field partners, including local NGOs and civil society organisations – have gained access to potable water, have built toilets at home, are now the proud owners of solar lanterns, and have been able to enrol their young children into vocational courses.

This has not only enabled girls and women in rural and peri-urban areas to devote lesser time to the back-breaking activity of water collection, it has also created a safer environment for them – they are no longer forced to defecate in the open, especially at night. In addition, several youngsters have gained employable skills. Easy availability of working capital has also translated into a 20 to 30 per cent rise in income for artisans and craftsmen, while the work of struggling entrepreneurs has taken off.

Sridevi is one such entrepreneur. With a loan of Rs two lakh secured through Milaap, this creative woman set up her own handicraft unit, Prateik Creations, in Chamrajpet,Bangalore. A Science graduate, she and her husband had been facing tough times after they lost everything due to some family problems. Almost on the streets with their small daughter, the duo approached Milaap for a loan. Says Sridevi, “Now I employ 13 women and men, some of them physically-challenged, for a monthly salary ranging from Rs 3,500 to Rs 5,000. We make eco-friendly corporate gift items, jewellery and stuffed toys. Of the Rs two lakh loan, I have paid back Rs 1.2 lakh.” Sridevi is also planning to expand her operations to Kolar, a city 72 kilometres fromBangalore, where she wants to create employment opportunities for the economically backward.

Today, Milaap can boast of backing many successful women like Sridevi, but initially, they had their share of start-up problems, especially when it came to handling government regulations regarding money transfers from overseas. Says Shubhashree Sangameswaran, Communications Manager at Milaap, “Getting the regulatory authorities to enable us to accept loans from foreign lenders is probably the biggest hurdle we’ve faced so far. It took a year and multiple phone calls, email conversations and trips to Mumbai before things were finally worked out. We managed to get the approval in August 2011 and this makes us the first and currently the only organisation in the world that supports foreign micro-lending intoIndia. Of course, our other big challenge has been reaching out to those who can give loans. While most people are used to traditional forms of charity, this is still a relatively new concept.”

Here’s how Milaap’s credit system works. Lenders can go to the website and register themselves. The next step is to choose a cause; the organisation focuses on six critical issues – education, energy, water, health and sanitation, enterprise and sustainable farming. Payment options include online through PayPal and offline through cheques or electronic fund transfers. A short cycle of 12-24 months (until full repayment) with monthly installments, and the loan is repaid. There’s also the option of re-cycling the credit so that the same amount can benefit multiple borrowers.

Priya Singh, who lent money last year, says, “So far, loan repayments have been as per schedule, which is very encouraging. I also feel happy that Milaap encourages women borrowers. Moreover, their focus on solar power is timely.”

According to Sangameswaran, “Till now, we’ve been fortunate to have had a repayment rate of 100 per cent. We take measures to mitigate the risks involved. Despite this, in the off-chance that there are defaults, our field partners offer a 20 per cent first-loss guarantee.”

Apart from water, sanitation and electricity projects, Milaap’s support to entrepreneurs focusing on creating awareness on higher tertiary education as well as the promotion of vocational training and skill development needed in the hospitality, retail, BPO, security and healthcare sectors, has worked wonders. Several youngsters have secured jobs are their training, conducted with the help of partner agencies. Take Heena, a young girl from Hubli in Karnataka, who couldn’t pursue her college education for lack of funds. Enter Milaap and she could do a vocational training that has enabled her to secure a job with a popular coffee shop chain. Now, she manages to support her mother, sister and is hoping that after repaying her loan she would be able to save enough to fund her college education.

If a Heena or a Sreedevi can afford to live the life of their dreams, it’s because someone, somewhere decided to log on to Milaap and make a contribution. These high-tech loans are certainly turning out to be timely stepping stones.

(© Women’s Feature Service)

The consumer electronics and durables industry is currently poised at about Rs 34,000 crore according to a study titled ‘Emerging trends in Consumer Electronics and Durables Industry,’ released by The Associated Chamber of Commerce and Industry of India (ASSOCHAM).

While, global consumer electronics and durables industry is growing at about 10 per cent CAGR and is currently estimated at about Rs 16 lakh crore and is likely to cross Rs 21 lakh crore mark by 2015, according to the ASSOCHAM study.

“Demand for consumer electronics and durables is driven by a young demographic population, coupled with rising disposable incomes amid skilled and highly educated workforce,” said Mr D.S. Rawat, secretary general, ASSOCHAM while releasing the findings of the study.

“Besides, low penetration levels, easy availability of finance options, growing prominence of consumer electronics’ retail stores, online retail industry and a robust 400 million plus Indian middle class with a comprehensive rise in level of affluence is also fuelling the demand in this industry,” said Mr Rawat.

Multi-national companies (MNCs) with superior technology and better quality control account for a market share about 70 per cent of the overall consumer electronics and durables market in India and maintain a strong hold on the urban middle class segement growing at about 12 to 15 per cent, according to the ASSOCHAM study.

The consumer durables and electronics market in rural and semi-urban areas account for about 40 per cent of the overall market and is growing at about 30 per cent CAGR.

Consumer electronics and durables market in India is divided into three segements namely – white goods, brown goods and consumer electronics.

Air-conditioners, refrigerators, washing machines and other domestic appliances fall in the white goods’ category, while microwaves, chimneys, fans, irons, juicers, mixers and grinders fall in the category of brown goods. Television sets, audio and video players, personal computers, laptops, cell phones, digital cameras, camcorders and other electronic accessories fall in the category of consumer electronics.

Rising technological innovations and the decrease in import duty on flat panel LCDs/LEDs television sets in the budget is also likely to fuel demand in the industry.

Generally people consider buying gold, automobile and other commodities on the day considering it auspicious. Cashing in on this belief, jewellery outlets and automobile dealers announced many offers, but their tactics seem to have failed in influencing many people.

The price of 24-carat gold in the city market fluctuated around Rs. 29,300 per 10 grams on Tuesday. Compared to last year, sales are down by at least 15 per cent. Gold price is shooting up every year and it is slowly inching away from the reach of the middle and low income groups, said V. Ravichandran, Manager of GRT Jewellers.

FOR MORE READING. . .

The repo rate (the rate at which banks borrow money from the RBI) has moved up to 8.5 per cent as against 6.75 per cent in March last year. Nearly 68 per cent of respondents said the RBI should cut repo rate by at least 100 basis points.

At the same time, 55 per cent of respondents called for statutory liquid ratio (the portion of deposits banks keep in government securities) to be cut by 100 basis points. About 45 per cent of them were for cutting cash reserve ratio (deposits and borrowings that a bank is required to keep with the RBI) by at least 50 basis points.

The survey with top executives of 69 public and private companies with turnover of more than Rs 10 crore was conducted between March 20 and April 8 in Mumbai, Jaipur, Delhi, Gandhinagar, Faridabad, Pathankot, Kolkata, Noida, Coimbatore, Hyderabad, Jammu, Bangalore and Mangalore.

“The industry – particularly manufacturing – has been affected by slowdown in demand coupled with upward swing in input and capital costs,” said Mr Rajkumar Dhoot, president of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Nearly 95 per cent of the respondents said increase in various tax slabs like excise and service tax announced in the Budget for 2012-13 will add inflationary pressures and adversely impact the economic growth. So the cost of borrowing must be reduced to improve supply-side response to inflation.

And 90 per cent of them said economic growth will be adversely affected and the government should speed up implementation of infrastructure projects, encourage foreign investments and introduce more transparency in the system.

Government data shows agriculture performance has been unimpressive in the past one year while mining and quarrying activities got mired in legal tangles. The index of industrial production expanded by a sluggish 4.1 per cent in February 2012 relative to the 6.7 per cent growth in the same month of last year.

A total of 37 per cent respondents said the government should provide incentives for fresh investments to spur economic activity. Nearly 16 per cent of them said the government should cut excise duty and service tax rates to improve the industry’s sentiment.

GDP growth during fiscal year ending March 31 is expected to be 6.9 per cent against the budgetary target of nine per cent while the fiscal deficit is projected to end up at 5.9 per cent of the GDP against the target of 4.6 per cent.

The Government has also framed a comprehensive five-pronged strategy in order to bring back the country’s money illegally stashed abroad.  The strategy comprises of:

(i)     Joining the global crusade against ‘black money’;

(ii)   Creating an appropriate legislative framework;

(iii) Setting up institutions for dealing with Illicit Funds;

(iv) Developing systems for implementation; and

(v)   Imparting skills to the manpower for effective action.

This information was given by the Minister of State for Finance, Shri S.S. Palanimanickam in written reply to a question in the Rajya  Sabha

The Base Rate is aimed at enhancing transparency in lending rates of banks and enabling better assessment of transmission of monetary policy.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Rajya Sabha

Source: World Economic Outlook, database IMF.

As per news release dated 26^th December, 2011 of Centre for Economics and Business Research Ltd. London, United Kingdom, India will move from being the 9^th largest economy in 2010 to become the 5^th largest economy by 2020.

The Approach Paper to the Twelfth Five Year Plan (2012-17) proposes a faster, more inclusive and sustainable growth with a target of 9 per cent increase in GDP.  The key requirements for achieving the goal are better performance in agriculture (at least 4 per cent growth), faster creation of jobs in manufacturing, development of appropriate infrastructural facilities, strong efforts at health, education and skill development, improving the implementation of flagship programmes and focus on backward region and vulnerable groups.  In this connection, certain specific measures taken by government interalia, include enhancing higher level of investment for agriculture sector including irrigation projects, promoting Micro Small & Medium Enterprises (MSME) sector by way of higher allocation of funds, enhancing investment in the infrastructure sector focusing on Public Private Partnership and a number of legislative measures to develop the financial sector etc.

This information was given by the Minister of State for Finance, Shri   Namo Narain   Meena in written reply to a question in Rajya  Sabha

Shri Sachin Pilot, Minister of State for Communications & Information Technology informed the Rajya Sabha yesterday that the following issues have adversely impacted outsourcing from India:

(i)              Steep Hike in Visa fees under (Public Law) PL 111-230( August 2010) ;

(ii)            Extension of applicability of PL 111-230 under the James Zadroga Act (Dec. 2010);

(iii)          Ohio State’s executive order banning offshore outsourcing (August 2010);

(iv)          US Government decision to centralize Blanket L visa at Chennai Consulate (Nov 2011);

(v)            Sharp jump in Visa rejection rates.

In a written reply, the Minister pointed out that as per the Department of Commerce (DoC), Ministry of Commerce & Industry, these issues have been raised regularly at most forums/meetings with US side. Concerns of Indian IT industry were also raised by NASSCOM and DoC in the INDIA-US ICT Working Group Meeting held in December, 2011 at New Delhi.

The Supreme Court in the order mentioned that “time is a very material factor in the effective execution of the Interlinking of Rivers project. As pointed out in the Report by NCAER and by the Standing Committee, the delay has adversely affected the financial benefits that could have accrued to the concerned parties and the people at large and is in fact now putting a financial strain on all concerned”

The Certified copy of the Supreme Court order dated 27.2.2012, received in the Ministry on 20.3.2012, is under examination for appropriate action.

The initial cost of the Inter Linking projects assessed at prefeasibility stage was Rs.5.60 Lakh crore at 2002 Price Level. The Cost of individual project including the cost of land required to be acquired for project can be finalised only after completion of Detailed Project Report.

This information was given by the Minister of State for Water Resources & Minority Affairs Shri Vincent H. Pala in a written reply to a question in Rajya Sabha

. The details of export of marine products between April, 2011 and    January 2012 and the details of foreign exchange earned from the exports are as follows :

(Q: Quantity in Tons, V: Value in Rs. Crore, $: USD Million)

MPEDA is implementing various subsidy schemes for Modernization of Processing Facilities and Development of Infrastructure Facilities, Aquaculture Subsidy Assistance Schemes and Promotional Activities etc. The details are given at annexure –1,  annexure -2 and annexure-3

Annex – 1

SUBSIDY SCHEMES OF MPEDA FOR MODERNIZATION OF PROCESSING FACILITIES AND DEVELOPMENT OF INFRASTRUCTURE FACILITIES.

This information was given by Shri Jyotiradiya M. Scindia,  Minister of State for Commerce & Industry   in written reply to a question in  Lok    Sabha

a) different classification principles for taxation of vehicles in different States;

b) variations in the application of ‘lifetime’ and annual tax rates to vehicle categories;

c) use of specific and ad valorem rates;

d) multiplicity of rates.

Two-Wheelers: Most of the States have switched over to Life Time Tax (LTT) except for a few States/UTs. In some States, tax slabs for LTT for two-wheelers are based on engine capacity; in some it is the unladen weight. Most of the States follow life time tax based on percentage of the value/cost/sales price of the vehicle or a one-time fixed rate or a fixed amount every year.

Cars: Prior to the introduction of LTT, motor cars and jeeps were differentiated either on unladen weight or on engine capacity basis. However, most of the States now follow life time tax based on percentage of the value/cost/sale price of the vehicle. Some States have introduced progressivity in Motor Vehicle Tax (MVT) of cars with higher value cars bearing a higher incidence in terms of higher percentage of Cost of Vehicle (COV).

Passenger Vehicles: In the case of passenger transport vehicles like stage or contract carriages, the seating capacity forms the basis for levying tax. MVT of passenger buses is mainly on the basis of an upper seating capacity limit (per seat per quarter/annum) and treated differently from motor cars and jeeps. In many States, differentiation in tax treatment of passenger buses is also accorded on the basis of type of service (Ordinary/Luxury/Express, etc.). Some States also include the distance that the vehicle is permitted to ply as an additional element for determining the quantum of tax. In some States, routes are divided into different categories in terms of region with a different rate of tax for each. The period of payment also varies from State to State. Some States charge the tax quarterly, while others charge it annually.

Goods Vehicle: Goods vehicles are usually taxed on the basis of the Registered Laden Weight (RLW), as Gross Vehicle Weight (GVW) or Un Laden Weight (ULW).

The total cost of the project is estimated as Rs. 25793 lakhs at 2008-09 price level. The Benefits-cost ratio is estimated to be 1.21. Irrigation being a state subject planning, execution and operation & maintenance of water resources projects are carried out by the state government as per their requirement and priorities of works. This information was given by the Minister of State for Water Resources & Minority Affairs Shri Vincent H. Pala in a written reply to a question in Lok Sabha

As per the revised estimate, the demand of coal in the Country in the terminal year(TY) of XI plan will be around 650 million tonnes against which indigenous availability would be around 545 million tonnes, leaving a gap of 105 million tonnes to be met through import. The demand is projected to increase to 980.5 million tonnes in the TY of XII Plan against which indigenous availability is projected to be 715 million tonne. The availability may increase to 795 million tonnes at the maximum, subject to availability of requisite land for coal mining and all clearances in time. Therefore, the gap between the demand and indigenous availability is projected to be in the range of 185.5 million tonnes in the minimum to 265.5 million tonnes in the maximum. This gap is to be bridged by import of coal.

This information was given by the Minister of State of Coal, Shri Pratik Prakashbapu Patil in written reply to a question in Lok Sabha

In the last six years, the salary of common man has gone up by 30% but on the other side the spending has increased by 65%. The survey further highlighted that the per capita income of an average Indian estimated about Rs.54,000/- per annum in FY 2010-11 went up by about Rs. 7,000/- in 2011-12, amounting to Rs. 61,000/- per annum.

The Associated Chamber of Commerce and Industry of India (ASSOCHAM) interacted with about 500 employees from different sectors in cities of Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Pune, Chandigarh and Dehradun.

About half of the respondents were in the age bracket of 25-29 years, followed by 30-39 years (25 per cent), 40-49 years (15 per cent), 50-59 years (10 per cent).

Over 72% of the respondent said that the board increase in excise duty from 10 per cent to 12 per cent is set to increase the price of household items ranging from processed foods, beauty products and kitchen appliances.

The survey was able to target employees from 18 broad sectors, with maximum share contributed by employees from IT/ITes sector (17 per cent). After IT/ITeS sector, contribution of the survey respondents from financial services is 11 per cent. Employees working in engineering and telecom sector contributed 9 per cent and 8 per cent respectively in the questionnaire.

The majority of the women said that due to the higher service tax rate, there will be higher service fee on phone connections at home, and eating out will be more costly. The cost of holidaying with family may also increase if packaged tours are opted, adds the survey.

Nearly 72% of the women said that due to hike in import duty, the price of jewellery is set to rise (with import duty on gold being increased to 4 per cent) and also studded jewellery will cost more as import duty on polished gem stones has also increased. Also, if the purchase value exceeds Rs. 2 lakh and payment by cash will face an immediate tax of 1 per cent.

Releasing the ASSOCHAM survey, High Income Group in urban and other part of the country remained totally immune with rising cost of economy as their income levels hardly got severed with rising cost of inputs.

ASSOCHAM nationwide survey revealed that Middle Income Group, uncomfortable with the hike in service tax and are changing their overall spending habits including dining out, clothing, vacations, electronics, automobiles and real estate.

Consumers’ growing unease is reflected in their saving and spending habits, with many middle and lower income groups indicating that they are finding ways to cut back spending now or indicating they will do so in the future, added Mr. D S Rawat, Secretary General ASSOCHAM.

Over 65% students who are planning to write the GMAT or GRE will to shell out more from April as fees on coaching classes are set to rise with the increase in service tax rate.

Majority of the students said that the peak rate of service tax has been increased from 10 per cent to 12 per cent. On a fee of Rs. 50,000 service tax is currently 5,000 (education cess additional), from April this will increase to Rs. 6,000.

The students who train at a dance or sports academy may also have to pay a higher fee. Accommodation and canteen service charges at PG hostels may also go up.

Service charges paid to the stock broker or any other investment agent may increase now. The service tax on mortality charge of the life insurance policies too will rise. In case of ULIPs (unit linked investment plan) the tax outgo will increase further given that in the first year of the premium will be taxed at 3 percent now (1.5 per cent earlier).

The survey highlights that
•   72 percent of respondent have decreased spending on eating out.
•   65 percent reported decrease in the amount they spend on clothing.
•   59 percent indicated fall in the amount they spend on vacations.
•   49 percent plan have decreased the amount they spend on home appliances; 45 percent for home and personal electronics; 38 percent for automobiles; and 32 percent for real estate.

• About 200 clusters will be covered under the scheme.
• To bring the MSME sector and design expertise into a common platform.
• To provide expert advice and solutions to design problems, resulting in continuous improvement and value addition for existing products.

Objectives

Activities

• Setting up of Design Clinics Centre along with four regional centres for intervention on the design needs of the MSME Sector.
• A Project Monitoring and Advisory Committee (PMAC) under the chairmanship of AS & DC (MSME) will be responsible for approving proposals for setting up of design center in Delhi and regional centers, approving proposals for seminar and panel of designers/design consultants/design institutions, sanctioning of design projects for individual MSMEs/group of MSMEs/students, etc.
• National Institute of Design (NID), Ahmedabad has been designated as the Nodal agency for the scheme.

Design Awareness – Seminar and Workshop

• The Government contribution, not exceeding Rs.60,000 (Rs Sixty Thousand only), will be admissible for the conduct of each seminar.
• For the conduct of a workshop (including preparation of the Design Need Assessment Survey report), Government assistance will be to the extent of 75% of the admissible cost, restricted to Rs.4,00,000 (Rs Four Lakh only), The remaining amount will be contributed by the participating MSMEs.

Design Projects

• The funding support will be given by way of a grant up to a maximum of 60% of the total approved project cost or Rs.9.0 lakh, whichever is less, in case of a individual MSME or a group of not more than three MSME applicants.
• The support will be up to a maximum of 60% of the total approved project cost or Rs.15lakh, whichever is less, in case of a group of four or more MSME applicants.
• Under the scheme, Government assistance upto 75% (subject to maximum of Rs.1.5 lakh) of the expenses incurred in respect of approved final year student projects done for theMSMEs.

*****

It is barely 10 days since the Budget was presented and two significant announcements have already been made. The first was by the Petroleum Minister, Mr Jaipal Reddy, who ruled out any possibilities of diesel price deregulation. The second was by Maruti Suzuki, traditionally a petrol maker, which made known its intent to invest Rs 1,700 crore in a diesel engine plant.

What does this add up to? The queue for diesel cars is just going to get longer so long as petrol continues to be dearer. The price difference between the two fuels is already Rs 25/litre, which will only increase to Rs 30 once petrol prices are hiked in the coming days. Demand for petrol cars is already on the wane and this will be down to a trickle eventually.

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The field work for the SECC is being conducted by the respective State/UT Governments. The financial and technical support for this exercise is being provided by the Government of India. The Nodal Ministries in the Government of India are the Ministry of Rural Development and the Ministry of Housing and Urban Poverty Alleviation. Technical support is being provided by the Ministry of Home Affairs (Office of Registrar General and Census Commissioner, India).

The field data-collection in each Enumeration Block is being conducted by a team of 2 persons, an enumerator who is appointed by the State/UT Government and a Data Entry Operator who is handling the Tablet PC for data entry operation. The tasks related to hardware and software development and field data entry operations has been entrusted to a consortium of three Central Public Sector Undertakings, namely, the Bharat Electronics Limited (BEL), the Electronics Corporation of India Limited (ECIL) and the Indian Telephone Industries (ITI) Limited.

This was stated by Shri Jitendra Singh, Minister of State of Home Affairs in written reply to a question in the Lok Sabha

The Eleventh Five Year Plan envisaged increasing total health expenditure at the Centre and the States to at least 2 per cent of GDP by the end of the Five Year Plan period.

During the 11^th Plan (2007-08 to 2011-12), Central Plan allocation to health sector has been Rs. 99,491 crore as against actual expenditure of Rs. 36,079 crore during the 10^th Five Year Plan. The Central Government has taken several steps to increase public health expenditure, which inter-alia, include:

• Launching of National Rural Health Mission with a view to provide accessible, affordable, accountable, effective and quality healthcare services, especially to the poor and vulnerable sections of the population.
• Implementation of programmes for control of communicable and non-communicable diseases.
• Mainstreaming of Indian Systems of Medicine and Homeopathy.
• Setting up of the Centres of excellence on the pattern of AIIMS, alongwith upgradation of government medical colleges through PMSSY
• Strengthening human resources in the health sector, with focus on Medical education, Para-medical education and Nursing and Pharmacy education.

The above information was given by the Union Minister for Health & Family Welfare Shri Ghulam Nabi Azad  in theRajya  Sabha

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Rajya Sabha today.

The Minister of State Shri Meena further informed that number of Agents is related to the business potential in the insurance market. Commission to agents are paid as per Section 40(A) (1) of the Insurance Act, 1938. Further, the commission rates for any new products are also approved by Insurance Regulatory and Development Authority. The Life Insurance Corporation of India (LIC) has reported that there is no instance of quitting of agents in lakhs in LIC due to reduced commission or strict guidelines to agents set for them by LIC.

The total number of LIC agents during the year 2010-2011 was 13,37,064 and as on 31.01.2012 it was 13,05,430.

2.         Accordingly, implicit price indices (Fisher Price Index) have been computed from the 66^th Round NSS (2009-10) data on Household Consumer Expenditure Survey. As per Tendulkar Committee recommendations, the state wise urban poverty lines of 2004-05 are updated for 2009-10 based on price rise during this period using Fisher price indices. The state wise rural-urban price differential in 2009-10 has been applied on state specific urban poverty lines to get state specific rural poverty lines.

3.         The head count ratio (HCR) is obtained using urban and rural poverty lines which are applied on the MPCE distribution of the states. The aggregated BPL population of the states is used to obtain the final all-India HCR and poverty lines in rural and urban areas. Some of the key results are:

o       The all-India HCR has declined by 7.3 percentage points from 37.2% in 2004-05 to 29.8% in 2009-10, with rural poverty declining by 8.0 percentage points from 41.8% to 33.8% and urban poverty declining by 4.8 percentage points from 25.7% to 20.9%.

o       Poverty ratio in Himachal Pradesh, Madhya Pradesh, Maharashtra, Orissa, Sikkim, Tamil Nadu, Karnataka and Uttarakhand has declined by about 10 percentage points and more.

o       In Assam, Meghalaya, Manipur, Mizoram and Nagaland, poverty in 2009-10 has increased.

o       Some of the bigger states such as Bihar, Chhattisgarh and Uttar Pradesh have shown only marginal decline in poverty ratio, particularly in rural areas.

• Poverty ratio for Social Groups:

o       In rural areas, Scheduled Tribes exhibit the highest level of poverty (47.4%), followed by Scheduled Castes (SCs), (42.3%), and Other Backward Castes (OBC), (31.9%), against 33.8% for all classes.

o       In urban areas, SCs have HCR of 34.1% followed by STs (30.4%) and OBC (24.3%) against 20.9% for all classes.

o       In rural Bihar and Chhattisgarh, nearly two-third of SCs and STs are poor, whereas in states such as Manipur, Orissa and Uttar Pradesh the poverty ratio for these groups is more than half.

• Among religious groups:

o       Sikhs have lowest HCR in rural areas (11.9%) whereas in urban areas, Christians have the lowest proportion (12.9%) of poor.

o       In rural areas, the HCR for Muslims is very high in states such as Assam (53.6%), Uttar Pradesh (44.4%), West Bengal (34.4%) and Gujarat (31.4%).

o       In urban areas poverty ratio at all India level is highest for Muslims (33.9%). Similarly, for urban areas the poverty ratio is high for Muslims in states such as Rajasthan (29.5%), Uttar Pradesh (49.5%), Gujarat (42.4%), Bihar (56.5%) and West Bengal (34.9%).

• For occupational categories:

o       Nearly 50% of agricultural labourers and 40% of other labourers are below the poverty line in rural areas, whereas in urban areas, the poverty ratio for casual labourers is 47.1%.

o       As expected, those in regular wage/ salaried employment have the lowest proportion of poor. In the agriculturally prosperous state of Haryana, 55.9% agricultural labourers are poor, whereas in Punjab it is 35.6%.

o       The HCR of casual laborers in urban areas is very high in Bihar (86%), Assam (89%), Orissa (58.8%), Punjab (56.3%), Uttar Pradesh (67.6%) and West Bengal (53.7%).

• Based on the Education level of head of the household:

o       In rural areas, as expected, households with ‘primary level and lower’ education have the highest poverty ratio, whereas the reverse is true for households with ‘secondary and higher’ education. Nearly two third households with ‘primary level & lower’ education in rural areas of Bihar and Chhattisgarh are poor, whereas it is 46.8% for UP and 47.5% for Orissa.

o       The trend is similar in urban areas.

• For categories by age and sex of head of the household:

o       In rural areas, it is seen that households headed by minors have poverty ratio of 16.7% and households headed by female and senior citizen have poverty ratio of 29.4% and 30.3% respectively.

o       In urban areas, households headed by minors have poverty ratio of 15.7% and households headed by female and senior citizen have poverty ratio of 22.1% and 20.0% respectively against overall poverty ratio of 20.9%.

4.                  State wise details of poverty lines for 2009-10, poverty ratios for 2009-10 and poverty ratios for 2004-05 are given in Table 1, Table 2 and Table 3 respectively.

For More Information click here. . .(pdf) 

Additional Information. .  

Click here to see Tables

In the above accidents 26 defence personnel including 13 pilots have lost their lives. In addition 06 civilians have also lost their lives.

Majority of the above accidents were on account of Human Error (HE) and Technical Defect (TD). Every IAF aircraft accident is thoroughly investigated by a Court of Inquiry (Col) to ascertain the cause of accident. Remedial measures are taken accordingly to check their recurrence in future.

However, improvement of skills of pilots is a continuous process. Several steps have been taken by the Government in this regard. These include increased use of simulators to practice procedures and emergency actions, focused and realistic training with additional emphasis on the critical aspects of mission, introduction of Crew Resource Management and Operational Risk Management to enable safe mission launches, Aviation Psychology courses and introduction of Aerospace Safety capsules in the ab-initio training of aircrew.

Decision to phase out aircrafts are taken based on various factors including residual life of the aircraft and operational considerations and is reviewed by the Government from time to time. This is a continuous process.

This information was given by Minister of Defence Shri AK Antony in a written reply to Shri Sugumar K and others in Lok Sabha

An amount of Rs 20,000 was eligible to be reduced from taxable income of an individual. In its pre-Budget representation to the government, The Associated Chambers of Commerce and Industry of India (ASSOCHAM) had suggested enhancement of this limit to at least Rs 50,000 per year to encourage and mobilise large investments in the infrastructure sector.

“It is paradoxical that despite a need to expand availability of such long-term funds, the scheme has been withdrawn abruptly,” said secretary general D.S. Rawat. “We request the government to immediately review this investment benefit provision and take a pro-active restoration which is need of the hour.”

The deduction was introduced two years ago to encourage investors to put money into infrastructure bonds. The tax benefit depended upon the slab in which an individual belonged. This was an additional benefit as compared to Rs one lakh investment limit under section 80C of the Income Tax Act.

But the section was applicable for just one financial year (2010-11) and later extended for one more financial year (2011-12). Now there is no mention in the Union Budget for 2012-13. This means that the term of this section has not been extended and will end by this month-end.

“This will be a huge blow to individual investors as it will actually push up their tax burden which will eat into the savings that they could have made due to the rise in basic exemption limit,” said Mr Rawat.

Take the case of a person with an annual income of Rs six lakh. The saving one would have got earlier was Rs 2,000 on account of rise in basic exemption limit to Rs two lakh. A higher tax of Rs 4,000 due to this benefit ending means that the individual will actually get a negative impact to the tune of Rs 2,000.

For those who are in a higher tax bracket, the net impact will still be positive. The change in tax slab means that there is an additional benefit that is available which is quite extensive. So for an individual with a taxable annual income of Rs 12 lakh, net savings will be Rs 16,000.

Investors should not confuse the increase in permission given to institutions to raise additional amounts of tax free bonds with this particular benefit. Those are tax free bonds where interest earned is not taxed while these are bonds that allow for deduction based on the amount of investment in bonds and interest income earned here is taxable.

It has been stated in the budget speech that in 2011-12 National Skill Development Corporation (NSDC) approved 26 new projects, thereby doubling the number of projects sanctioned since 2009 to 52, with a total funding commitment of ` 1,205 crore. At the end of 10 years, these projects are expected to train 6.2 crore persons and augment vocational training capacity by 1.25 crore per year in the private sector.

The NSDC partners have opened 496 permanent and 2429 mobile centres in 220 districts across 24 states. More than 89,500 persons have been trained and almost 80 per cent employed. Under NSDC, 10 Sector Skill Councils have been sanctioned. Of these, 3 Skill Councils for Automobile, Security and Retail sectors have become operational

After 31 years of existence and an extended presence in a lot of countries, Satter, the Founding Director of the Feature Film programme at the Sundance Institute, is in India for the first time.

But why this delay?

“We have finally found partners with whom we can associate for a long time. This is just the beginning of a process where we believe that if you support the next generation of artists, the world audiences would be enriched by that,” Satter told IANS.

She helped Tarantino hone his creativity even before he made “Reservoir Dog” and Aronofsky before he earned accolades for his film “Pi”.

She has partnered with Mumbai Mantra Sundance Institute Screenwriters Lab 2012 to groom, nurture and guide eight scripts.

Michelle has always been enthralled by the vibrancy of Indian cinema and the many voices that exist here. She plans to make the Sundance association with India long term.

“We support our artists the year round as the lab only becomes the beginning of the relationship. In India, we hope to continue supporting these artists and their projects on an ongoing basis,” she said.

She agrees that not all films tutored under the lab in India would be made.

“What is more important is that we will change the craft of the artists and we’d have helped them find their own individual voices. And if not this film, then the effect will be seen in the next. It’s an ongoing process,” she said.

She is upbeat about Indian scripts. She is particularly enthused about Shonali Bose’s screenplay “Margarita. With a Straw”.

“Shonali is bold and has great courage. ‘Margarita…’ is a beautiful screenplay, very moving and comes from a very personal space,” she said.

Asked if she believes it has the potential to become the next “My Left Foot” in terms of scope, she says, “Yes, it could.”

She says, “I love the creative process. It is extraordinary to be working with artists at a time when you can have the greatest impact on their stories, to engage with them in dialogues where voices have been strengthened and where there often has been confusion but where wonderful directors have emerged.

“At Sundance our job has been to support the vision of the artists and to help them connect with their audience.”

But how does a writer in a remote corner of the world create cinema that touches the world? Michelle said, “I strongly feel that stories that are specifically set in time and place and in characters, with details that are authentic, such stories have universal appeal.”

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The incentives include deduction of up to Rs 5,000 in direct tax for preventive health check-up, indirect and service tax concession to several essential healthcare products, and a multi-sectoral nutrition augmentation programme. All these measures would strengthen secondary and primary healthcare services, respectively.

FLAGSHIP PROGRAMMES

The RSBY has immensely benefited in this Budget, with an allocation of Rs 1096.7 crore. The RSBY is a health insurance scheme for secondary-level care services for the BPL and disadvantaged sections of the society, which has been functioning under the Ministry of Labour and Employment since 2006. The RSBY scheme is expected to cover the entire BPL population, (which accounts for 37.2 per cent of the Indian population as per the Tendulkar committee estimate of BPL) in every year on a rolling basis, but could enrol only around 10 per cent of the Indian population by March 31, 2011.

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 Although we have all read about such incidents and the plight of victims has been reported widely, it is the Pakistani-Canadian filmmaker, Sharmeen Obaid Chinoy, who has taken their stories of sadness, survival and succour to international audiences. In the process, she and her co-director, American documentarian Daniel Junge, have won this year’s biggest film award – the Oscar for the Best Short Documentary Film.

 The protagonists of ‘Saving Face’, a 40-minute documentary, are the acid attack victims from her home country,Pakistan, and the film not only highlights the victims’ lives after the attacks but also shows resilient survivors and their fight for justice. Through the work of acclaimed British Pakistani plastic surgeon, Dr Mohammad Jawad, who travels toPakistanto perform reconstructive surgery on survivors, audiences worldwide get to see their side of the story.

 ”The idea behind ‘Saving Face’ was conceived by my co-director, Daniel Junge. He had heard of Dr Jawad, featured in ‘Saving Face’, on the radio and contacted him with regard to his work inPakistan. Then Daniel got in touch with me and the subject matter appealed to me immediately. Throughout my career, I have focused on topics that are not addressed by the mainstream media in order to raise awareness and promote critical dialogues around such issues, and I made ‘Saving Face’ with similar intentions,” explains Chinoy.

 Just like the support group, Campaign and Struggle Against Acid Attacks on Women (CSAAAW) in India, Pakistan’s Acid Survivors Foundation (ASF) has been working painstakingly with the acid victims, offering them medical assistance as well as opportunities for rehabilitation.

 After meeting Dr Jawad and interacting with him, the director duo, which was not very familiar with the Saraiki region, got in touch with the ASF. Recalls Chinoy, “My team and I spent months with the acid attack survivors profiled in our film, and had the privilege of getting to know them and their circumstances very well. During this time we were able to make our subjects comfortable with being on camera, and they were happy to guide us through their lives. Zakia and Rukhsana, the main characters in the narrative, were very forthcoming with their stories and were eager to make their experiences available to a larger audience.”

 InPakistan, it has been observed that most acid attacks occur in the Saraiki region ofPunjabprovince. This economically backward region – where unemployment is high and illiteracy is widespread – witnesses several barbaric acts by men, especially frustrated husbands, and the victims are usually hapless, uneducated, economically-dependent women.

 Why are acid attacks common in these regions? Mainly because acid is widely available because it is used as a cleaning agent in cotton production. Moreover, as a cleaning agent, it is commonly found in most homes, too. So it becomes an easy weapon, one that can cause permanent and mammoth damage to victims.

 While making ‘Saving Face’, Chinoy also found that most accounts of acid violence were linked to the concept of shame: some perpetrators use it as a way to punish their wives whilst others throw acid on women who refuse their proposals of marriage. “Although the reasons vary, they all boil down to an extreme form of punishment that is intended to permanently dishonour and humiliate the victim,” she observes.

 Naturally, most women hesitate to admit the reasons for their plight and also identify the perpetrator. Chinoy reveals, “In terms of identifying the perpetrator, the responses tended to vary. Some women are unable to leave their husbands as they depend on them financially; others make their cases public. It depends on their circumstances and the options available to them.”

 Chinoy is perhaps the best person to have shown the world the acid attack story. No stranger to painful subjects or heart wrenching tales, this 30-plus director is a master of the documentary medium. She has several films to her credit, including ‘Women of the Holy Kingdom’, ‘Afghanistan Unveiled/Lifting the Veil’ and ‘Transgender: Pakistan’s Open Secret’, which have gone on to win many awards like the Emmy, Alfred I Dupont and the Association for International Broadcasting Awards. In fact, she is the first non-American to be awarded the Livingston Award for best international reporting.

 Talking about her other works, especially those shot inAfghanistanandSaudi Arabia, Chinoy says, “Each film comes with its own set of challenges. ‘Women of theHolyKingdom’ was difficult because women are severely restricted inSaudi Arabiaand are not able to move through the country freely. We were stopped by the moral police multiple times, had our tapes confiscated and were often monitored by Saudi intelligence.”

 Filming in conflict zones had its own tests. “Shooting for ‘Iraq: The Lost Generation’, I was struck by how Pakistan and Iraq shared many commonalities, and that we ran the risk of one day confronting similar realities,” she says, adding, “But as a documentary filmmaker, it is imperative that one maintains objectivity and not become emotionally involved with the subject. I admit this difficult, but over the years I have become better equipped to cover difficult subject matters.”

 A mother of a baby girl, and married to an investment banker, Chinoy knows that documentary films still do not have the mass appeal that popular cinema enjoys. “Unfortunately, there is no real history of documentary filmmaking inSouth Asia, and so television channels are less likely to invest in this medium. However, I do see a shift inPakistan, with the rise of non-fiction story-telling productions that have been very well received by local audiences,” she says.

 For budding filmmakers, she urges them “to put their work online so that they can reach larger audiences and receive feedback. Many Pakistani musicians, visual artists and writers got their big break after making their work public and sharing it on social media sites. Filmmakers should also look into local film festivals and college film competitions.”

 Having won the Oscar she now wants to concentrate on educating people against the acid attacks. She is also busy planning for the next phase of her career. “I am currently working on two television series that are geared for Pakistani audiences. I am also simultaneously working on my next film. I would love for it to be a feature, let’s see what the future brings.”

 So, watch out for Chinoy’s next cinematic tell-all!

 (© Women’s Feature Service)

]]> http://indiacurrentaffairs.org/global-its-an-oscar-honour-for-sharmeen-and-for-acid-attack-victims-surekha-kadapa-bose/feed/ 0 http://indiacurrentaffairs.org/tourism-an-export-growth-engine-and-employment-generator-says-economic-survey-2011-12/ http://indiacurrentaffairs.org/tourism-an-export-growth-engine-and-employment-generator-says-economic-survey-2011-12/#comments Sat, 17 Mar 2012 05:45:49 +0000 India Current Affairs http://indiacurrentaffairs.org/?p=112736 Tourism is not only a growth engine but also an export growth engine and employment generator. According to the Economic Survey 2011-12 presented in Lok Sabha today, the sector has capacity to create large-scale employment both direct and indirect, for diverse sections in society, from the most specialized to unskilled workforce. It provides 6-7 per cent of the world’s total jobs directly and millions more indirectly through the multiplier effect as per the UN’s World Tourism Organization. Since tourism does not fall under a single heading in India’s National Accounts Statistics, its contribution has to be estimated. Its contribution to GDP and employment in 2007-08 was 5.92 per cent respectively as per Tourist Satellite Account Data.

In India, the tourism sector has witnessed significant growth in recent years. During the period 2006 to 2011, the CAGRs of foreign tourist arrivals (FTA) and foreign exchange earnings (FEE) from tourism (in rupee terms) were 7.2 per cent and 14.7 per cent respectively. FTAs in India during 2010 were 5.78 million compared to 5.17 million during 2009, posting a growth of 11.8 per cent, much higher than the growth of 6.5 per cent for the world in 2010. FEEs from tourism in rupee terms during 2010 were Rs. 64,889 crore compared to Rs. 54,960 crore during 2009 with a growth rate of 18.1 per cent. Despite the slowdown and recessionary trends in the economies of Europe and America, FTAs during 2011 were 6.29 million with a growth of 8.9 per cent over 2010 and FEEs in 2011 were Rs. 77,591 crore with a growth of 19.6 per cent. In the cae of outbound tourism, the number of Indian nationals’ departures fromIndia during 2010 was 12.99 million with a growth of 17.4 per cent for the year. Domestic tourism has also emerged as an important contributor to the sector providing much needed resilience. Domestic tourist visits during 2010 are estimated at 740.2 million, with a growth of 10.7 per cent.

Hotels and restaurants is an important component of the tourism sector. As on 31 December 2011, there were 2,895 classified hotel having a capacity of 1,29,606 rooms in the country. Availability of good quality and affordable hotel rooms play an important role in boosting the growth of tourism in the country. The share of the hotel and restaurant sector in overall economy increased from 1.46 per cent in 2004-05 to 1.53 per cent in 2008-09 and then decreased to 1.46 per cent in 2010-11. However, if the contribution of this sector only in the service sector is considered, its share decreased from 2.75 per cent in 2004-05 to 2.64 per cent in 2010-11 as other service sectors grew faster than this sector. It CAGR was 8.44 per cent during 2004-05 to 2009-10 and the growth rate in 2010-11 was 7.7 per cent. Health tourism, the new entrant in the sector is a niche area where India has good potential.

As is natural, with the growth of this sector, components like air travel and hotel stay have been included under service tax. The Economic Survey 2010-11 has listed the major policy decisions taken in recent years. However, a lot more needs to be done to make India a major tourist destination. Some of the problem areas in this sector include the following. States impose luxury tax ranging from 5 per cent to 12.5 per cent. In some cases, the luxury tax is applicable on printed room rates whereas actual hotel rates offered to guests are much lower. With a view to rationalizing luxury tax on hotels, the Government of India has requested the states to work towards rationality and uniformity of taxes so as to make their destinations more competitive. They have been also requested to exempt room tariff below Rs. 2500 from luxury tax and charge luxury tax at a uniform rate of 4 per cent on actual tariff. Construction of hotels is primarily a private sector activity which is capital intensive and has a long gestation period. A major constraint being faced by the hotel industry in addition to the high cost and limited availability of land is the procurement or multiple clearances/approvals required from Central and State Government agencies for hotel projects. Varying from state to state, in some cases as many as 65 clearances/approvals are required for hotel projects.

A Hospitality Development and Promotion Board has been set up at central level. The main function of the Board will be to monitor and facilitate clearances/approvals for hotel projects both at central and state government levels. The Board will be a single window for receiving applications for various clearances, approving/clearing hotel projects in a time bound manner, and reviewing hotel project policies to encourage the growth of hotel/hospitality infrastructure in the country. State Governments have also been requested to set up similar boards under the Chairmanship of their Chief Secretaries. So far Mizoram, Manipur, and Maharashtra have set such boards. Other measures in this sector could include rationalizing the fees for entry to monuments and using the fees for their maintenance; focusing on safety of tourists; and promoting wellness tourism.

1. Pune-Mumbai-Ahmedabad – The prefeasibility study has been completed

2. Delhi-Chandigarh-Amritsar – The technical evaluation of the offers has been completed and financial bid is under finalization.

3. Delhi-Agra-Lucknow-Varanasi-Patna – The study is in progress. Consultant has submitted Inception Report, Interim Report No. I and II and Draft Final Report to the Ministry.

4. Howrah-Haldia – The study is in progress. Consultant has submitted Inception Report, Interim Report No. I & II and Draft Final Report to Ministry.

5. Hyderabad-Dornakal-Vijaywada-Chennai – Consultant has been engaged and study is in progress.

6. Chennai-Bangalore-Coimbatore-Ernakulam-Thiruvananthapuram – Technical bids have been evaluated and financial bids are under evaluation. India will need technical and financial cooperation from countries which are already operating High Speed systems, including Japan.

The draft bill for the formation of National High Speed Rail Authority (NHSRA) has already been moved for approval of the Government.

National High Speed Rail Authority will initiate steps for pre-construction activities. No time-frame has been set for it.

This information was given by the Minister of State for Railways Shri K. H. Muniyappa in written reply to a question in Lok Sabha

Out of the total earnings of Rs. 5832.69 crore from commodity-wise freight traffic during the month of February 2012, Rs. 2505.58 crore came from transportation of 40.22 million tonnes of coal, followed by Rs. 418.72 crore from 8.11 million tonnes of iron ore for exports, steel plants and for other domestic user, Rs. 587.40 crore from 9.29 million tonnes of cement, Rs. 451.06 crore from 4.26 million tonnes of foodgrains, Rs. 304.78 crore from 3.29 million tonnes of petroleum oil and lubricant (POL), Rs. 350.94 crore from 2.94 million tonnes of Pig iron and finished steel from steel plants and other points, Rs. 382.84 crore from 4.74 million tonnes of fertilizers, Rs. 94.54 crore from 1.21 million tonnes of raw material for steel plants except iron ore, Rs. 291.18 crore from 3.26 million tonnes by container service and Rs. 445.65 crore from 6.44 million tonnes of other goods.

Shri Singh further stated that the peak of crude oil production have been estimated and reported differently over the time. He also said that International Energy Agency in World Energy Outlook, 2011says that “Proven reserves of oil increased to 1.47 trillion barrels at the end of 2010 according to the Oil and Gas Journal or 48 years production at existing level. Remaining recoverable resources are estimated to be much larger and could reach nearly 5.5 trillion barrels.”

The Minister stressed that in order to provide momentum to exploration and  production in the country, Government has adopted multi-prong strategy which inter-alia includes: (i) increasing hydrocarbon exploration and production in the country, (ii) Development of unconventional sources of hydrocarbon and (iii) Acquisition of overseas oil and gas assets by Indian companies.

He also informed that the Government is setting up the underground strategic storage in the form of rock cavern with total storage capacity of 5.33 MMT at 3 locations viz., Vishakhapatnam in Andhra Pradesh and one each in Mangalore & Padur in Karnataka. The projects are expected to be commissioned in a phased manner from April, 2013 onwards. The break-up of strategic oil reserves capacity is as under:

“ In addition, feasibility study for about 12.5 MMT strategic oil reserves is in progress in the states of Karnataka, Gujarat, Rajasthan and Odisha,” he added.

The exports of non-traditional coir products have increased over the last 5 years, while the exports of traditional products have gone down.

This information was given by the Union Cabinet Minister for Micro, Small and Medium Enterprises, Shri Virbhadra Singh in a written reply to a question in the Lok Sabha

In a written reply in Rajya Sabha today he said, in order to mobilize financial resources for speedy implementation of the Shukla Commission recommendations relating to Basic Minimum Services (BMS) and infrastructure development of North east, a policy decision was taken to earmark at least 10% of the Plan Budget(s) of the Central Ministries/Departments for development of the North Eastern States.  Government of India also created a Non-Lapsable Central Pool of Resources (NLCPR) consisting of unspent balance of mandatory 10% of the budgetary allocation for NER. The Ministry of Development of North Eastern Region is the nodal Ministry for administration and management of NLCPR and also for matters relating to the planning, execution and monitoring of development schemes and projects of NER.

He said, as a result of the above policy initiatives, large amount of funds have been invested for the development of infrastructure in the NER (road, rail, power, power etc.), health, education & culture, employment generation, women & child development, backward area development etc. by the respective ministries. The year wise allocation / expenditure under earmarked funds for NER by non-exempted Ministries during the 11^th Plan -2007-08, 2008-09, 2009-10, 2010-11 and 2011-12 is summarized in the table below:

The Minister said, under the NLCPR Scheme infrastructure projects for development of socio-economic sectors are being sanctioned. Since 1998-99 to 2011-12 (upto 12.03.2012), an amount of Rs. 7973.64 crore has been released under the NLCPR Scheme to the North Eastern States including Sikkim for development of infrastructure. Year-wise release of funds under the NLCPR Scheme is given at Anexure-I.

Initiatives by the North Eastern Council

Shri Ghatowar said, the North Eastern Council (NEC) has been instrumental in setting in motion a new economic endeavour aimed at removing the basic handicaps that stood in the way of development of the region. The NEC Act was amended in 2002. The amended NEC Act provides that NEC will function as the Regional Planning Body for the North East and will formulate specific projects and schemes, which will benefit two or more States. NEC was instrumental in the preparation of North Eastern Region Vision 2020, which provides the road-map, outlines the goals, identifies the challenges and suggests implementation strategies for various sectors for peace, prosperity and development of the North Eastern Region. It helps in formulation of an integrated plan for the development of the North Eastern Region.

Annexure-I

Year-wise budget allocation and expenditure of Ministry of Development of North Eastern Region under NLCPR Scheme

(Rs in Crore)

*Expenditure up to 12.03.2012

In a written reply in Rajya Sabha today he said, out of the remaining ongoing projects, in 425 projects completion has not been achieved on the target date. A State-wise list of these projects is enclosed at Annexure-I. These projects are at various stages of implementation. For the timely completion of these projects their progress is reviewed with the State Governments from time to time. To encourage the State Government for their expeditious completion, an incentive in terms of additional retention of Rs. 20.00 crore projects as per State choice, for the best performing State in terms of completion of projects have been introduced. A State-wise list of projects sanctioned by the North Eastern Council, Shillong, whose completion have been delayed beyond their target dates, is enclosed at Annexure-II. Annexures I and II have been put on the website of the Ministry i.e. www.mdoner.gov.in

It has been stated in the budget speech that in 2011-12 National Skill Development Corporation (NSDC) approved 26 new projects, thereby doubling the number of projects sanctioned since 2009 to 52, with a total funding commitment of ` 1,205 crore. At the end of 10 years, these projects are expected to train 6.2 crore persons and augment vocational training capacity by 1.25 crore per year in the private sector.

The NSDC partners have opened 496 permanent and 2429 mobile centres in 220 districts across 24 states. More than 89,500 persons have been trained and almost 80 per cent employed. Under NSDC, 10 Sector Skill Councils have been sanctioned. Of these, 3 Skill Councils for Automobile, Security and Retail sectors have become operational.

Key to Budget Documents 

Budget Highlights (Key Features) 

Budget Speech

Budget at a Glance

Annual Financial Statement

Finance Bill

Memorandum

Receipt Budget

Expenditure Budget

Customs & Central Excise

The Macro Economic Framework Statement 

The Medium Term Fiscal Policy Statement 

The Fiscal Policy Strategy Statement 

Statement of Revenue Foregone 

Implementation of Budget Announcements 

The economy has emerged with remarkable rapidity from the slowdown caused by the global crisis, with growth of 8.6 percent (advance estimate) in 2010-11 and an expected 9 percent next year. This growth is also broader: agriculture is rebounding, manufacturing continues its momentum, and private services is picking up. Fundamentals are also stronger: savings and investment are up, exports are rising rapidly, and inflation is falling, after a prolonged hiatus.

Inflation, especially of food was very high in February 2010 (at 20.22 percent), declined steadily, with a small spurt in November and December and now stands at 9.3 per cent. This is a vast improvement but still a matter of concern.

A shift in the stance in macroeconomic management is underway. Now that growth is firmly in place, fiscal consolidation is progressing rapidly, and monetary policy has reverted to a stronger focus on moderating inflationary pressures, while ensuring adequate liquidity and credit growth.

With stronger growth, a widening of the current account deficit over several quarters became a concern; however, developments in the last two quarters show a falling current account deficit as a result of fast-rising exports, higher net services, and moderating imports.

Considering the critical role of agriculture, there is need to invest much more in agriculture, stepping up to a second green revolution to address the yield gaps.

State of the Economy and Prospects  

Micro-Foundations of Macroeconomic Developement 

Fiscal Developments and Public Finance  

Prices and Monetary Management  

Financial Intermediation and Markets 

Balance of Payments  

International Trade  

Agriculture and Food Management  

Industry  

Services Sector 

Energy, Infrastructure and Communications  

Human Development, Equity and Environment 

Statistical Tables 

Economic Survey (All Chapters)

The finance minister has cut subsidies on fuel to as much as 25,000 crore rupees. This would inevitably lead to further hikes in fuel prices. The cut in subsidies to fertilizers by 6000 crore rupees will also lead to further price rise of fertilizers which have already imposed unbearable burdens on farmers.

The Governments concerns about cutting subsidies in the name of controlling the fiscal deficit are hypocritical to say the least. There is a huge amount of 5.3 lakh crores revenue foregone in 2011-2012, out of which over rupees fifty thousand crores were tax concessions to corporates. There has been a shortfall of Rs. 30,000 crore in gross tax revenue because vis a vis the budget estimates mainly on account of slack collection from corporates.

At the same time the budget gives a slew of concessions to investments in the stock markets. At a time when globally Governments are trying to control the volatility in stock markets by a tax regime against speculation, the budget cuts the STT (security transactions tax) by 25 per cent and a new tax exemption has been announced to encourage retail stock market investors. This has come at a time when the EPF interest rate has been slashed from 9.5% to 8.25%. The requirement for a capital gains tax to prevent speculation has again been ignored by the Government.

As far as the people are concerned, the claims of added allocations ring hollow because of the dismal record of actual expenditures. The Government may give any figure as the budget estimate but how much does it actually spend of that estimate. In the last year in most Ministries there has been a shameful shortfall in actual expenditures. Crucial programmes like MNREGA have seen a huge shortfall of over 9000 crores in the last year, the gap between the budget estimate and the revised estimate. Similarly the gender budget saw a shortfall of 1200 crores in actual expenditures. This is also an undeclared method of controlling the deficit.

Given the inflation factor the allocations for most programmes are in any case inadequate. For example the record as far as allocations for Scheduled caste Sub Component Plan and Scheduled tribe sub-plan though increased are still far below the required amount of 16.5 per cent and 8.2 per cent of the Plan expenditure and in fact is even lower last year. It is only 7 per cent and 4 per cent respectively.

This budget fails to adequately step up public expenditure to reverse the growth slow down. The sharp cuts in fuel and fertiliser subsidy and across the board hikes in indirect tax rates will also fuel inflation further.

Reacting to the union budget presented by Finance Minister Pranab Mukherjee in parliament, Jayalalithaa in a statement issued here said: “The Budget does not provide any tangible solutions to the problems crippling the Indian economy. The Indian economy is at the cross-roads facing insurmountable problems of growth slow down, dwindling investment activity, high inflation, fiscal stress, and the weakening Indian rupee.”

She said the budget “demonstrates the continued policy paralysis gripping the union government”.

According to her, the central budget has “turned out to be ‘Business-as-usual’ with some tinkering here and there with excise and customs duty, income tax, etc.”

Referring to the income tax concessions announced by Mukherjee, the Tamil Nadu chief minister said the relief hardly compensates for the runaway inflation witnessed during the last few years.

“It has been acknowledged worldwide, including by the United States of America, that the rich need to be taxed more since they have the capacity to pay,” Jayalalithaa said.

“Bringing in a number of items under the services tax fold by broad basing it and enhancing it to 12 percent will only stoke inflation. Increased services tax will also affect the progressive state governments which implement schemes such as Health Insurance Scheme,” she added.

She said the centre could have created a financial instrument for raising debt funds to provide support to state government projects similar to the infrastructure debt fund to finance central projects.

“This Budget is an exercise in futility, ‘an ill-wind that blows nobody any good’, and to top it all, anti-people,” she said.

“We are marketing the film in various ways. It is expensive and a completely different area of production. It is something you have to take very seriously nowadays,” Saif, who has been in the movie business for about two decades, told IANS in an interview here.

“If we look at the US, it’s amazing to see how they market their movies through merchandise and all kinds other of things. The Indian marketing business is growing tremendously with each film and the more you spend on marketing, more good it is. It has become a very important part of filmmaking,” he added.

Saif is not only producing “Agent Vinod”, but also playing a spy in the thriller directed by Sriram Raghavan. Releasing March 23, it will also feature Kareena Kapoor and yesteryear villain Prem Chopra in the cast.

In the last few years, the economics of filmmaking have undergone tremendous change. As a result, the box-office business has virtually become a matter of the first three days of collection.

“The numbers are so big and people are busy today. In those days there was not much for entertainment, apart from just watching films. You would see any film five to six times and learn all the dialogues and that was the only excitement. Today, there are so many other things to do, so it is a big thing that the first weekend goes houseful.”

Summarising the current business strategy, the 41-year-old said: “On the first three days, a film takes an opening because of the hype around it, which is, ‘Does it give you a feeling to go and watch the film?’ Then Monday is the test day of a film to find out what kind of film it is – whether it will pull off? If the next weekend is also strong, then it’s a super hit. That’s the business.”

Saif, however, is confident about his product’s long term run and said: “We are looking at two weeks already.”

What about word of mouth?

“It is generally for small films that hope to grow over a period of time. Today we need multiple prints and instant impact of the release,” he said.

Censor board has awarded U-A certificate to “Agent Vinod” and the actor is happy as he feels the it will help in getting more eyeballs.

The 41-year-old also feels “it is first film to have the potential of running into single screens as well as multiplexes.”

The 1992 movie “Parampara” marked Saif’s entry into filmdom and he gave powerful performances in “Omkara”, “Being Cyrus” and “Ek Hasina Thi”. But the actor says his role in “Agent Vinod” has been most demanding so far.

“‘Agent Vinod’ has been the most demanding role so far, but it was fun. I think if you want good result, you have to work hard. There has to be either physical bumps and bruises or mental bumps and bruises.”

He doesn’t rule out the possibility of “Agent Vinod” franchise.

“Let us take one step at a time. If the audience likes the film, may be we could then think of making a sequel. I feel the film is perfect to be a franchise. If it works and it becomes a franchise, then it can be a dream come true,” he said.

Asked to explain his strategy as an actor, he said: “The whole idea is to work with different and interesting people, to keep trying and improve the quality. I hope to make some very good films as a producer and do roles that not only surprise me but also challenge me, and take me out of the comfort zone.”

This amounts to an increase of Rs.2,555.97 crore (around $500 million) over the previous financial year.

The revised expenditure for 2011-12 has been estimated at Rs.7,836 crore ($1.56 billion).

The outlay for ‘embassies and missions’ has been hiked from Rs.1,364.08 crore ($261 million) to Rs.1,526.23 crore ($305 million). This means more money would be made available for opening of new missions as well as for better staffing of existing missions.

The ministry has been complaining of being severely understaffed in key missions with many missions in Africa and Latin America working with skeletal staff.

In Africa, India has missions in a little over 30 countries, with an Indian ambassador often accredited to more than two-three countries at times. Compared to that, China has around 50 missions in African countries.

The total number of functioning Indian missions and posts abroad is estimated at 176.

The manpower crunch – less than 700 diplomats spread across the headquarters in New Delhi, 119 resident missions and 49 consulates – has hobbled the ministry for a long time. Four years ago, the cabinet had approved 30 new posts in the IFS each year over the next decade.

In an article entitled “Developing India’s Foreign Policy Software”, Daniel Markey, an American expert, has said that the Indian Foreign Service is a right fit for a country like Malaysia, but surely not for a rising power. Even a country like Brazil has 1,197 diplomats. The US, the world’s sole superpower after the Cold War, tops the list with 19,667 diplomats. Germany has 3,250 and the UK has 3,600 diplomats, Markey noted

The expenditure for upgrading passport and emigration infrastructure has been increased from Rs.402.60 crore ($80 billion approx) to Rs.583.73 crore ($116 billion approx).

In view of India’s growing stakes in neighbouring countries, the government has hiked aid to Afghanistan from Rs.290 crore ($58 million) to Rs.707 crore ($141 million). India has pledged $2 billion for a slew of reconstruction activities in Afghanistan.

Aid for Nepal has gone up from Rs.150 crore ($30 million) to Rs.270 crore ($54 million). For Myanmar, there is a substantial increase from Rs.190 crore ($38 million) billion to Rs.302.21 ($60 million) crore.

Aid to African countries has nearly doubled from Rs 150 crore ($30 million) to Rs 250 crore ($50 million).

In his seventh national budget presented in the Lok Sabha Friday, Mukherjee raised the income tax exemption limit for individuals to Rs.2,00,000 from Rs.1,80,000 and revised the tax slabs to bring relief to some 35 million people in the country.

But by bringing virtually all services under the tax net and by hiking the rate from 10 percent to 12 percent — as also by raising the standard excise rate to 12 percent from 10 percent — he also ensured you pay more indirect taxes than before.

This is why the net impact of his proposals is such that while direct tax measures will result in a net revenue loss of Rs.4,500 crore ($900 million), the indirect tax changes will fetch a net revenue gain of Rs.45,940 crore ($9.1 billion) — over 10 times more.

You may have to pay more for dining out, gold jewellery, luxury cars and smoking, even as you get relief while watching a movie in cinema halls, investing in equities, going for a preventive health check or paying for your child’s education.

On income tax front, the finance minister proposed new tax slabs in which income up to Rs.2,00,000 will be totally exempt, levy 10 percent on Rs.2,00,000 to Rs.5,00,000, then 20 percent on Rs.5,00,000 to Rs.10,00,000 and 30 percent on income above Rs.10,00,000.

“This will provide tax relief of Rs.2,000 to every tax payer,” the finance minister said, adding: “My proposal on direct taxes will result in a revenue loss of Rs.4,500 crore.”

Overall, in the Rs.14,90,925 crore ($300 billion) budget, the fiscal deficit — which is the total projected expenditure less tax and non-tax revenue, as also loan recoveries — is pegged at 5.1 percent of GDP, which is lower than 5.9 percent for the current fiscal.

He said with the economy getting back on rails, it was time for some tough measures — a statement endorsed by Prime Minister Manmohan Singh who said it was necessary to “bite the bullet”, especially on issues such as subsidies.

“When the time comes for taking tough decisions, we hope we will be able to take all our allies on board,” the prime minister said, giving his reactions to the budget when asked specifically as to how he hoped to carry the coalition partners along.

Even Mukherjee said it was more important to address the challenges than earn brownie points. “Whether or not today’s announcements make tomorrow’s headlines matters little, as long as they help in shaping the headlines that describe India a decade from now.

For the corporate sector, the finance minister, said, while the tax rates will remain unchanged, he assured cheaper access to funds for expansion, even as he tinkered with the excise rates and customs duties for specific items.

Mukherjee said he also proposed to tax every service, but for 17 items specified in what he termed as a negative list, and enhanced the rate of such levy to 12 percent from 10 percent.

This is projected to fetch Rs.1,24,000 crore ($24.8 billion) against revised estimate of Rs.95,000 crore ($19 billion) for 2011-12 .

Assuring further liberalisation of capital markets, he announced a new equity savings scheme to extend income tax deduction of 50 percent to those who invest up to Rs.50,000 in equities and whose annual income is less than Rs.10 lakh.

Mukherjee spelt out some far-reaching reforms in the budget, notably on the subsidy front, which he promised to cut to 2 percent of India’s gross domestic product (GDP).

“Such a step is needed to improve the quality of public spending,” he said, adding the effort now will be to directly transfer subsidies on fertiliser, food and fuels to to the intended beneficiaries.

He hoped for an early implementation of the direct tax code and a pan-India goods and services tax to unify federal and state taxes, even as he promised incentives to attract capital for infrastructure development.

He also said the government will make an all-out effort to curb outflow of black money and bring back such ill-gotten funds stashed away in tax havens abroad.

Mukherjee began his speech touching on the cascading ill-effects of the global slowdown on the Indian economy, but assured people there were clear signs of recovery that should see the country grow at 7.6 percent in 2012-12, against 6.9 percent this fiscal.

“The global crisis has affected us. India’s gross domestic product (GDP) is expected to grow at 6.9 percent in 2011-12, after having grown at 8.4 percent in each of the two preceding years,” he said.

“Though we have been able to limit the adverse impact of the slowdown in our economy, this year’s performance has been disappointing. But it is also a fact that in any cross-country comparison, India still remains among the front-runners in economic growth.”

At the same time, Mukherjee also said the Indian economy was at the “cusp of a revival”, as agriculture and services have continued to grow at a decent pace. It was industrial performance that was acting as a drag.

“While we do not have the aggregate figures for the last quarter of 2011-12, numerous indicators pertaining to this period suggest that the economy is now turning around. There are signs of recovery in coal, fertiliser, cement and electricity sectors.”

The minister proposed to tax all services except those in the negative list which comprises 17 heads drawn up keeping in view the “federal nature of our polity, the best international practices and our socio-economic requirements”.

Tax experts and industrialists welcomed Mukherjee’s approach to the service tax and the exemptions given on the basis of a negative list, but opined the widening of the base would lead to all round price escalation.

“Looking at our vast commitments and to maintain a healthy fiscal situation, I propose to raise the service tax rate from 10 percent to 12 percent, with consequential changes in rates for services that have individual tax rates,” Mukherjee said in his budget speech for 2012-13 fiscal.

“My proposals from service tax are expected to yield an additional revenue of Rs.18,660 crore. Keeping in mind that the share of services in GDP is 59 percent, you would agree that the proposed increase is not too harsh,” Mukherjee told Lok Sabha members.

He emphasised on the need to widen its base as its share in taxes was far below its potential. Also, service tax and central excise have to be brought as close as possible to reach the eventual goal of transition to Goods and Services Tax.

In this respect, Mukherjee pointed out that the government has received “overwhelming support” on the desirability of moving towards taxation of services based on a negative list.

“It has been perceived both as sound economics and prudent fiscal management.”

He proposed to raise the exemption for the monthly charges payable by a member to a housing society from Rs.3,000 to Rs.5,000.

As 2012 marks the beginning of the centenary of Indian cinema, Mukherjee proposed to exempt the industry from service tax on copyrights relating to recording of cinematographic films.

The finance minister proposed to set up a study team to examine the possibility of a common tax code for service tax and central excise which could be adopted to harmonise the two legislations.

He also announced a new scheme that would simplify refunds without resorting to voluminous documentation or verification. As an added incentive, such refunds will also be admissible for taxes on taxable services that have been exempted.

He said rules pertaining to the point of taxation were also being rationalised, providing greater clarity and removing the irritants, while Cenvat credits in a number of areas are being restored.

Sanjiv Goenka, Chairman of the RP-Sanjiv Goenka Group described as a “rational approach” the widening of the service tax base with a negative list of 17 socially desirable services but said it will lead to price escalation.

“The increase in service tax, along with the increase in excise duty, from 10 to 12 percent will, however, raise prices correspondingly all round. However, this measure is a better alternative to a higher budget deficit which in spite of the additional revenue of Rs.41,000 crores, will leave a deficit of 5.1 percent in 2012-13,” he said.

Former Chief Commissioner of Customs, Central Excise and Service Tax Biswajit Datta said: “Till now the share of service tax in the total tax kitty was disproportionately low considering the sector’s contribution to the country’s GDP. The finance minister has made an attempt to increase the share.

“This year he brought a major change in the service tax arena by stating that the tax will be levied in general for all services excluding the negative list,” he said.

Mukherjee, in his budget proposals for 2012-13, also proposed to increase excise duty on ‘demerit’ goods such as certain cigarettes, bidis, pan masala, gutka, chewing tobacco, unmanufactured tobacco and zarda scented tobacco.

Presenting the budget in parliament, at the juncture of economic and political crossroads, the finance minister also proposed to enhance cess on crude petroleum oil produced in the country to Rs.4,500 per tonne from Rs.2,500 per tonne under the COIL Industries Development Act.

In order to garner additional resources from indirect taxes, Mukherjee has proposed to enhance basic duties on completely built units of large cars.

“Large cars currently attract excise duty depending on their engine capacity and length. In keeping with the increase proposed in the standard rate, I propose to enhance the duty from 22 percent to 24 percent,” he said.

BNK Capital managing director Ajit Khandelwal said the excise duty hike of two percent was nothing unexpected.

“This was expected. The excise duty was 12 percent before the crisis period during 2008-09. Now the Indian economy is stabilising, the finance minister today brings it to that level. The market was expecting it,” Khandelwal said.

“He has to garner more revenue now to tame the rising fiscal deficit,” he added.

Biswajit Datta, former chief commissioner of customs, Central Excise and Service Tax, agreed.

“It was expected. As there was no provision for the finance minister to garner more revenue from direct taxes, he resorted to a hike in excise duty. With this hike about Rs.45,000 crore more revenue is expected in the next fiscal,” he told IANS.

On whether the hike in duty would adversely affect the industry, which already shows signs of slowing down, Datta said: “I do not think manufacturing sector will be affected as the hike in taxes would ultimately be passed to end customers.”

“This budget is not for the aam aadmi… there is no big picture… it pays lip service to vital sectors like infrastructure and power,” Sinha told reporters after Finance Minister Pranab Mukherjee presented the union budget for 2012-13 in the Lok Sabha.

According to Sinha, it failed to address major challenges like providing better quality of life for the people, controlling inflation, bringing down high interests rates and ensuring high economic growth.

He also said Mukherjee’s budget does not indicate how the government will bring down the fiscal deficit projected at 5.1 percent next year, as it will have a cascading effect on the Indian economy.

He said the budget’s target of Rs.5,14,000 crore market borrowings will affect private sector investment and in turn slow down industrial production.

“The Rs.45,949 crore gain projected from indirect taxes is unprecedented as it would affect the economic growth in the long run,” said Sinha, adding that “the impact of the global financial crisis on Indian economy is marginal”.

• The Micro Finance Institutions (Development and Regulation) Bill, 2012.

• The National Housing Bank (Amendment) Bill, 2012.

• The small Industries Development Bank of India (Amendment) Bill, 2012.

• National Bank for Agriculture and Rural Development (Amendment) Bill, 2012.

• Regional Rural Banks (Amendment) Bill, 2012.

• Indian Stamp (Amendment) Bill, 2012.

• Public Debt Management Agency of India Bill, 2012.

The Finance Minister Shri Mukherjee announced that the Central Plan Scheme Monitoring System would be expanded for better tracking and utilisationof funds.

Earlier, the Union Finance Minister ShriPranab Mukherjee, in his Budget speech pointed towards deterioration of fiscal balance in 2011-12 due to slippage in direct tax revenue collection and increased subsidies.  He said profit margins came under strain due to higher interest rates and material costs, impacting growth in corporate taxes. Fearing the average price of crude oil to exceed US $ 115 per barrel, ShriMukherjee said this has necessitated higher outlay on subsidies than earlier projected.  He said the continuing uncertainty in the global environment has made it necessary to strike a balance between fiscal consolidation and bolstering macro economic fundamentals to help absorb future shocks.

Presenting the General Budget 2012-13 in the LokSabha here , the Finance Minister said efforts would be made to keep Central subsidies under 2 per cent of GDP, and that over the next three years it would be further brought down to 1.75 per cent of GDP. He said the focus would now be on better targetting and leakage-proof delivery of subsidies.Shri Mukherjee said, based on recommendation of task force headed by ShriNandanNilekani regarding direct transfer of subsidy, a mobile-based Fertilizer Management System has been designed to provide end-to-end information on movement of fertilizers and subsidies. This system would have anation-wide roll outthis year.Direct transfer of subsidy to the retailer, and eventually to the farmer, will be implemented in subsequent phases. He also announced an escalation in efforts to roll out Aadhaar- enabled payments for various Government schemes in at least 50 district within the next six months.

The Finance Minister Shri Mukherjee informed that the Public Sector Oil Marketing Companies have launched LPG transparency portals to improve customer service and reduce leakage. A pilot project for selling LPG at market price and reimbursement of subsidy directly into the beneficiary’s bank account is being conducted in Mysore. A similar pilot project on direct transfer of subsidy for kerosene into the bank accounts of beneficiaries has been initiated in Alwar district of Rajasthan. The Aadhaar platform has also been successfully used to validate PDS ration cards in Jharkhand.

Similarly, Shri Mukherjee said that the Constitution Amendment Bill, a preparatory step in the implementation of Goods and Services Tax (GST) was introduced in Parliament last March 2011 and is before the Parliamentary Standing Committee. He said till the recommendations of the Committee were received, drafting of model legislation for Centre and State GST in consultation with different States was going on.

The Finance MinisterShri Mukherjee said that the structure of GST Network (GSTN) has been approved by the Empowered Committee of State Finance Ministers, GSTN will be set up as a National Information Utility and will become operational by August 2012. The GSTN will implement common PAN-based registration, returns filing and payments processing for all States on a shared platform. The use of PAN as a common identifier in both direct and indirect taxes, will enhance transparency and check tax evasion.

The Finance Minister said, in 2011-12, as against a target of Rs 40,000 crore, the Government will raise about Rs 14,000 crore from disinvestment while for 2012-13, Rs 30,000 crorewould be raised through disinvestment. He reiterated that while the Government is committed to enhancing people’s ownership of CPSEs, at least 51 per cent ownership and management control will remainwith it.

The exemption limit for the general category of individual taxpayers has been enhanced to Rs. 2,00,000 from Rs. 1,80,000 in the General Budget 2012-13, presented by the Union Finance Minister Shri Pranab Mukherjee in the LokSabhahere today. This measure will provide tax relief uptoRs. 2,000 to every taxpayer in this category.

The Finance Minister, Shri Mukherjee introduced the DTC (Direct Taxes Code) rates for personal income tax, marking progress in the direction of movement towards DTC and GST (Goods and Services Tax).

It has also been proposed to raise the upper limit of 20 per cent tax slab from Rs. 8 lakh to Rs. 10 lakh. The proposed personal income tax slabs are:

In another relief to the individual taxpayers, a deduction of uptoRs. 10,000has been proposed for interest from savings bank accounts. This would help a large number of small taxpayers with salary incomes uptoRs. 5 lakh and interest from savings bank accounts uptoRs. 10,000 as they would not be required to file income tax returns.

It has also been proposed to allow deduction of Rs. 5,000 for preventive health check up.

For senior citizens not having income from business, it has been proposed to exempt them from payment of advance tax.

In the General Budget 2012-13 presented by the Union Finance Minister Shri Pranab Mukherjee in the LokSabha here today, a slew of measures have been introduced to allow corporates to access low cost funds and also to promote higher level of investments in several sectors.

To provide low cost funds to stressed infrastructure sectors, the rate of withholding tax on interest payments on external commercial borrowings (ECBs) has been proposed to be reduced from 20 per cent to 5 per cent for three years. These sectors are power, airlines, roads and bridges, ports and shipyards, affordable housing, fertilizer and dams.

To promote higher level of investments, the restriction on Venture Capital Funds (VCFs) to invest only in nine specified sectors has been proposed to be removed. It has further been proposed to remove the cascading effect of Dividend Distribution Tax (DDT) in a multi-tier corporate structure.

The Finance Minister, Shri Mukherjee also proposed to continue to allow repatriation of dividends from foreign subsidiaries of Indian companies to India at a lower tax rate of 15 per cent as against the tax rate of 30 per cent for one more year i.e. upto March 31, 2013.

Further, the Finance Minister has proposed to provide, investment linked deduction of capital expenditure incurred in the businesses of cold chain facility, warehouses for storage of food grains, hospitals, fertilizers and affordable housing at the enhanced rate of 150 per cent, as against the current of 100 per cent.

Also new sectors have been proposed to be added for the purposes of investment linked deduction which include bee keeping and production of honey and beeswax, container freight station and inland container depots and warehousing for storage of sugar.

• Introduction of compulsory reporting requirement in case of assets held abroad.
• Allowing for reopening of assessment upto 16 years in relation to assets held abroad.
• Tax collection at source on purchase, in cash, of bullion or jewellery in excess of Rs. 2 lakh.
• Tax deduction at source on transfer of immovable property (other than agricultural land) above a specified threshold.
• Tax collection at source on trading in coal, lignite and iron ore.
• Increasing the onus of proof on closely held companies for funds received from shareholders as well as taxing share premium in excess of fair market value.
• Taxation of unexplained money, credits, investments, expenditures etc., at the highest rate of 30 per cent irrespective of the slab of income.

To promote investment in research and development (R&D), the Finance Minister, Shri Pranab Mukherjee said that it has been proposed to extend the weighted deduction of 200 per cent for R&D expenditure in an in-house facility beyond March 31, 2012 for a further period of five years.

It has also been proposed to provide weighted deduction of 150 per cent on expenditure incurred for agri-extension services in order to facilitate growth in the agriculture sector.

For the power sector, besides measures for accessing low cost funds, the Finance Minister Shri Mukherjee has proposed extension of the sunset date by one year for power sector undertakings so that they can be setup on or before March 31, 2013 for claiming 100 per cent deduction of profits for ten years. Additional depreciation of 20 per cent in the initial year is proposed to be extended to new assets acquired by power generation companies.

In order to moderate the outgo on profit linked deductions, it has been proposed to extend the levy of Alternate Minimum Tax (AMT) on all persons other than companies, claiming profit linked deduction.

The Finance Minister, Shri Mukherjee has also proposed to introduce a General Anti Avoidance Rule (GAAR) in order to counter aggressive tax avoidance schemes, while ensuring that it is used only in appropriate cases, by enabling a review by a GAAR panel.

The Survey says that the major drivers of food inflation during the current financial year were milk, eggs/meat/fish, gram and edible oils. WPI food inflation (weight 24.31 percent) has significantly dropped from 20.2 percent in February 2010 to 1.6 percent in January 2012 mainly on the back of seasonal fall in fruits & vegetables prices and good harvest leading to lower inflation in cereals

The Survey comments that the objective of monetary policy during 2011-12 has been to rein in inflation and contain inflationary expectations. With supply side factors feeding into food inflation and an uncertain economic scenario in advanced countries, the task of monetary policy calibration has been particularly challenging.

Liquidity conditions have generally remained in deficit during 2011-12. However, the RBI has addressed liquidity concerns via the use of its standard tools. The monetary market has, in general, remained orderly during 2011-12 with the rates in collateralised segments moving in tandem with the call rate, but generally remaining below it.

The Survey suggests that there is a need to examine the linkages and trade-offs between policy rate changes and inflation in the Indian context, for better calibration of monetary policy. There is also scope to further sharpen monetary policy and macro prudential tools to deal with asset price bubbles in the real estate and stock markets and the risks associated with these, which carry implications for the real economy.

Commenting on the outlook in the area of price management the Survey says that Monetary policy remained focussed on controlling inflation and anchoring inflationary expectations, which has slowed growth. These effects, coupled with a favourable base effect in prices and continued global slowdown, are expected to moderate inflation to around 6.5 to 7.0 percent by March and further moderate in the months ahead, barring unexpected shocks, such as oil prices in international markets.

The Survey observes “Looking at, vigilance is called for in getting back to a low inflation/sustained high growth path in India, by renewed focus on supply side measures and include fiscal consolidation, including stepped up regular adjustments in domestic energy prices.” It says that high level of food stocks and producers responses to higher protein and other food prices should help to maintain overall price stability in the country.

The successive high production levels boosted the stock position of foodgrains in the central pool and as on February 1, 2012 it was 55.2 million tonnes comprising 31.8 million tonnes of rice and 23.4 million tonnes of wheat. This is adequate for meeting the requirements under the targeted public distribution system (TPSD) and welfare schemes during the current financial year. The Survey says that as per the Second Advance Estimates, production of foodgrains during 2011-12 has been estimated at 250.42 million tonnes.

Expressing concern over decline in the area under food grains cultivation the Survey calls for speedy improvement in yield through adequate investment in research and development. Pooling of many land holdings may yield better results for which land laws for leasing with sufficient safeguards in place should be considered. Addressing infrastructure requirements in the agriculture sector, especially storage, communication, roads and market should be priority.

According to the Survey, the outlook for the next fiscal remains bright but given the rapidly rising levels of demand for food there is a need to consider some policy options to ensure brighter medium term outlook. These options could, inter alia, be regular imports of agricultural commodities in relatively smaller quantities with an upper ceiling on quantity should to be decided annually, relatively well in advance, after assessing the likely domestic situation in terms of production and consumption requirements. According to Survey, “improving mandi governance, promoting inter-state trade by eliminating multiple levies, taking perishables out of the ambit of the APMC Act, developing a ‘farm-to-fork’ retail supply system, and addressing the investment gaps related to post harvest infrastructure for agricultural produce including through FDI in multi-brand retail” may help in improving agriculture commodities management in the country.

The Survey observes that, as per the IMF, at a growth rate of 7 per cent, India is projected to be the second fastest growing major economy after China. The share of India in global merchandise exports has increased from about 0.5 per cent in 1990 to 1.5 per cent in 2010. Moreover, the extent of financial integration, measured by flows of capital as a share of GDP has also increased dramatically and the role of India in the World Economy has commensurately expanded along with the other major members of emerging markets, which as a whole now account for one-half of world output.

The Economic Survey states that after the opening of the economy in the early 1990s, India has begun to appear as a player of significance in the global economy. The country’s exports have begun to climb, its foreign exchange reserves, which for decades had hovered around 5 billion dollars, have gone up exponentially after the economic reforms and in little more than a decade have risen to 300 billion dollars. Indian corporations that rarely ventured out of India are suddenly investing all over the world and some even in the industrialized countries.

Given its size and its profile in the global economy, India will inevitably need to play an active role at global level, not just in the efforts towards resolving the current crisis but also in influencing the goals for the global economy on overarching macroeconomic issues such as trade, capital flows, financial regulation, climate change and governance of global financial institutions. India, the Survey points out, is already too much a part of global economy and polity and the developments in the world will affect India deeply and what India does will affect the world. Therefore, the Survey advises, there is a need for India to engage with the world in terms of action and ideas.

Reflecting upon the state of global economy, the Economy Survey states that there is an apprehension that the process of global economic recovery that began after the financial crisis of 2008 is beginning to stall and the sovereign debt crisis in the Euro zone area may persist for a while. The lower global growth forecast by the IMF for most countries in 2012 reflects the repeated bouts of uncertainty. In the medium term, challenges for the global economy continue to emanate from the way the Euro zone crisis is addressed. The high deficits and debts in Japan and the US and slow growth in high income countries in general, have not been resolved. The looming risk to the global outlook is also on account of the geo-political tensions centered on Iran that could disrupt oil supply and result in a sharp increase in oil prices and even disrupt supply routes.

Volatility in capital flows resulting from the spillover affects of monetary policy choices and other uncertainties in the advanced financial markets further impacted exchange rates and made the task of macro-economic management difficult in many emerging economies. This has brought out a new dimension of globalization in the post-financial crisis world, where easy monetary policy in one set of countries may result in inflation elsewhere due to cross-border capital flows.

The changes in composition of the global economy suggest a perceptible shift in the global balance of output of goods, especially manufacturing. While services, in particular financial services, continue to be largely concentrated in advanced economies, a large share in world population, coupled with higher growth, implies that the EMEs (Emerging Market Economies) and developing countries will increasingly account for incremental growth in the global market for goods and services. Even if the emerging economies, including India, witnessed a slow growth in 2011, growth prospects of most of these economies remain robust in the medium to long run due to various factors such as demographics and size of the domestic market, apart from high rates of investment and savings.

While stating that India has begun to be a more open economy over the years and has moved up the ranks, the Economic Survey observes that it is still poorest among the G-20. While the country has an advantageous demographic dividend, its low spend on Research and Development and innovation, low energy intensity of GDP, 80 per cent dependence on imports for petroleum products, dependence on global markets for food security and a need for sustained investment are some of the areas which will have to be addressed for the country to emerge as a Strong Global Player.

During April- Dec 2011, the export sectors that have done well were petroleum and oil products registering a growth of 55 per cent; gems and jewellery 38.5 per cent; engineering 21.6 per cent; cotton fabrics made ups etc. 13 per cent; electronics 21.1 per cent; readymade garments 23.7 per cent and drugs 21.5 per cent.

The Economic Survey observes that the great changes in the sectoral composition of the country’s export basket seen in the 2000’s decade have accelerated in the beginning of this decade. While the share of petroleum crude and products increased by 11.8 percentage points during the ten-year period from 2000 – 01 to 2009 -10, it further increased by 4.8 percentage points from 2009-10 to the first half of 2011-12. The share of the other two sectors, i.e. manufactures and primary products fell almost proportionately by 11.6 and 1.1 percentage points respectively during the first decade.

Imports during April – Jan 2011-12 were valued at US $ 391.5 billion, which was 29.4 per cent higher than the level of US $ 302.5 billion during the same period last year. During this period, POL (petroleum, oil and lubricant) imports at US $ 118 billion grew by 38.8 per cent while non-POL imports at US $ 273.5 billion grew by 25.7 per cent. Gold and silver imports of US $ 50 billion grew by 46.2 per cent. Trade deficit during April-Jan 2011-12 was US $ 148.7 billion as against US $ 105.9 billion during the same period in the last fiscal.

In the case of imports, there are no major compositional changes other than the sudden rise in share of gold and silver imports from 9.3 per cent in 2000-01 to 13.3 per cent in the first half of 2011-12. However, a fall in the share of pearls, precious and semi-precious stones has been observed during this period.

As regards the country’s direction of trade, the Economic Survey observes that India is a success story in terms of diversification of export and import markets. The share of Asia and ASEAN in the total trade increased from 33.3 per cent in 2000-01 to 57.3 per cent in the first half of 2011-12, while that of Europe and America fell from 42.5 per cent to 30.8 per cent. This has helped India weather the global crisis emanating from Europe and America. An interesting development in the direction of India’s trade is that USA, which was in the first position in 2007-08 has been relegated to the third spot in the following years, with the UAE becoming India’s largest trading partner, followed by China.

India’s services exports, which had recorded a contraction of 9.4 per cent in 2009-10 due to the global financial crisis bounced back to grow by 38.4 per cent to US $ 132.9 billion in 2010-11. However, growth in export of services moderated during the first half of 2011-12 to 17.1 per cent compared to 32.7 per cent during the first half of 2010-11.

Giving an outlook of the prospects for India’s trade sector which has had to bear the brunt of deepening Euro zone crisis during the second half of the current fiscal, the Survey observes that while India has successfully diversified its markets with reduced dependence on the EU and the US, Europe still has a 19.5 per cent share in India’s exports. Besides, some of India’s trading partners are dependent on Europe, thus affecting the country’s trade indirectly. The software exports too may show some sluggishness as the Euro zone accounts for 30 per cent of the total tourist arrivals in India. Travel exports may also suffer, says the Economic Survey.

The Economic Survey points out that while some of the challenges for India on the trade front are due to the current emerging global situation, the others are systemic and long-term in nature. If the global situation worsens, the pressure for stimulus measures could again resurface and protectionist measures from trading partners could increase. The Survey advises that a lot more needs to be done on diversification of India’s export basket as its export presence is limited in the top items of world trade.

It also points out that greater trade facilitation by removing the delays and high costs due to procedural and documentation factors, besides infrastructural bottlenecks is another major challenge. The Economic Survey also observes that India’s push towards regional and bi-lateral agreements should result in meaningful and result-oriented Free Trade Agreements (FTAs) and Comprehensive Economic Cooperation Agreements (CECAs). The challenges for India on the trade front are daunting but need to be addressed with speed and dexterity as the opportunities are equally great and untapped.

As regards the Special Economic Zones (SEZs), the Economic Survey states that as on 31 Dec 2011 i.e. during the first three quarters of the current financial year, the total physical exports have been to the tune of Rs. 2,60,972.90 crore, registering a growth of 14.5 per cent over the exports of corresponding period of the previous year. The total investment in SEZs till 31 Dec 2011 is Rs. 2,49,630.80 crore, including Rs. 2,31,160 crore in the newly notified zones. In a short span of about five years since the SEZs Act and Rules were notified in Feb 2006, formal approvals have been granted for setting up of 583 SEZs out of which 380 have been notified. Out of the total employment provided to 8,15,308 persons in SEZs as a whole, incremental employment generated after Feb 2006 i.e. when the SEZ Act came into force is 6,80,609 persons.

In the current fiscal 2011-12, on month-to-month basis the rupee depreciated by 12.4 per cent from 44.97 per US dollar in March 2011 to 51.34 per US dollar in January 2012. Rupee reached a peak of 43.94 on July 27, 2011, and lowest at 54.23 per US dollar on December 15, 2011 indicating a depreciation of 19 per cent.

During fiscal 2011-12, forex reserves reached all time high level of US $ 322.2 billion at end August 2011. However, it declined to US $ 292.8 billion at end January 2012 indicating a fall of US $ 12.0 billion from US $ 304.8 billion at end-March,2011. The decline in reserves is partly due to intervention by the Reserve Bank of India to stem the slide of Rupee against US dollar.

India’s external debt stock increased by US $ 20.2 billion (6.6 per cent) to US $ 326.6 billion at end-September 2011 vis-à-vis US $ 306.4 billion at end-March 2011, primarily on account of higher commercial borrowings and short-term debt. The long-term external debt at US $ 255.1 billion accounted for 78.1 per cent of the total external debt while the short-term debt was at 21.9 per cent. Government (sovereign) external debt stood at US $ 79.3 billion, while non-Government debt amounted to US $ 247.3 billion at end-September 2011.

The current account deficit was US $ 32.8 billion (3.6 per cent of GDP) in H1 of 2011-12, as compared to US $ 29.6 billion (k3.8 per cent of GDP) during the corresponding period of 2010-11. This was mainly on account of the trade deficit of US $ 85.8 billion (9.4 per cent of GDP) due mainly to increase in international prices of imported commodities viz oil and gold and silver. As per the latest data, export growth has slowed down in recent months while imports remained at elevated level, resulting in higher trade deficit.

The momentum gained in exports and imports during 2010-11 continued during the first half (H1-April-September 2011) of the current fiscal with exports recording 40.6 per cent and imports 34.3 per cent increase during H1 of 2011-12 over the corresponding period last year. Supportive government policy, diversification in terms of higher value-added products in engineering and petroleum sectors and destinations across developing economies were responsible for resilient export performance.

Net capital flows at US $ 41.1 billion (4.5 per cent of GDP) in the first half of 2011-12 remained higher as compared with US $ 38.9 billion (5 per cent of GDP) in the first half of 2010-11. FDI (US $ 12.3 billion) and external commercial borrowing (US $ 10.6 billion) have shown increasing trend during H1 of 2011-12 over the corresponding period of 2010-11. Portfolio investment, however, witnessed large decrease in inflow to US $ 1.3 billion in H1 of 2011-12 vis-a-vis US $ 23.8 billion in H1 of 2010-11.

According to the Economic Survey, a trade deficit of more than 8 per cent of GDP and current account deficit of more than 3 per cent is a sign of growing imbalance in the country’s BOP. High share of volatile FFI flows is an added external shock. The rupee’s high volatility impairs investor confidence, necessitating a more aggressive stand to check its volatility.

While pointing out that sovereign risk concerns, particularly in the Euro countries, have affected financial markets for the greater part of the year, the Survey points at Greece’s sovereign debt problem spreading to India and other economies by way of higher- than- normal levels of volatility. Emphasising that in a financial system which is bank dominated, the ability of this institution to withstand stress is critical to overall financial stability, the Survey says that Indian banks however remained robust and the financial infrastructure continues to function without any major disruption. However, the Survey cautions that with further globalization, consolidations, deregulation and diversification of the financial system, the banking business may become more complex and riskier. Issues like risk and liquidity management coupled with skill enhancement, therefore, assumes greater significance.

An important reason India emerged largely unscathed from the global crisis of 2008 is the strict external commercial borrowings (ECB) policy that places all-in-cost, end-use and maturity restrictions on foreign borrowings by the corporate. The corporate, were therefore not exposed to balance sheet recession that could have happened due to excessive foreign borrowings. The liberalization of ECB policy, however has to keep in view the need to maintain sustainable levels of external debt. Other challenges include: innovative steps to bring corporate bond market at the centre stage of infrastructure financing and to meet financing requirements, particularly of the unorganized sector/self-employed in the micro/small business sector.

Capital is a key measure of bank’s capacity for generating loan assets and is essential for balance sheet expansion. The Economic Survey says Rs 12,000 crore has been provided in the Revised Estimates 2011-12, under Plan, for capital infusion in Public Sector Banks (PSBs) to enable them to maintain a minimum Tier 1 CRAR at 8 per cent on 31st March 2012, and also to increase shareholding of the Government of India in the PSBs to 58 per cent. During Financial Year 2011-12 growth in bank credit extended by Scheduled Commercial Banks (SCBs) stood at 8.2 per cent as on 16 December 2011, with year-on-year growth at 17.1 per cent. The outstanding priority sector advances of PSBs rose by almost 19 per cent between March 2010 to March 2011. The increase was from Rs 8,63,777 crore to Rs 10,28,614 crore. The advances of Private Sector Banks showed a growth of 15.9 per cent during the same period.

The Economic Survey 2011-12 underlines the fact that flow of agricultural credit has been impressive. The Indian banking system disbursed credit of Rs 4,46,779 crore to the agricultural sector as against a target of Rs 3,75,000 crore in-2010-11, thereby exceeding the target by around 19 per cent. The extension of credit has taken the total number of new farmers brought under the banking system to 127.26 lakhs.

The Self Help Group-bank linkage programme is being implemented by Commercial Banks, Regional Rural Banks (RRBs) and Cooperative Banks. Under this, as on 31 March 2011, over 74 lakh SHGs held bank accounts with total savings of nearly Rs.7,000 crores as against 69.5 lakh SHGs with savings of Rs 6,200 crores as on 31 March 2010.

Thanks to computerization and adoption of core banking solutions, 98 per cent of Public Sector Bank branches are today fully computerized. In 2010-11, the number of ATMs witnessed a growth of 24 per cent over the previous year.

¬ According to the Survey, to facilitate flow of funds into infrastructure projects, broad guidelines were issued on September 23, 2011 for setting up of Infrastructure Debt Funds. Further, guidelines on credit default swaps for corporate bonds were also issued on May 23, 2011. The agenda of Financial Inclusion has been actively pursued by the Government. Detailed strategy and guidelines on Financial Inclusion have been issued on 21 October 2011. The Survey notes that resource mobilization through the primary market witnessed a sharp decline over the year 2010-11, with equity public issue mobilization standing at Rs 9,683 crore as compared to Rs 48,654 crore. Upto 31 December 2011, 30 new companies (IPOs) were listed at the National Stock Exchange and Bombay Stock Exchange.

The development of the financial sector is critically dependent on financial inclusion, which is seen as an important determinant of economic growth. Banks need to take into account various behavioural and motivational attributes of potential consumers for a financial inclusion strategy to succeed. Besides, access to financial products is constrained by lack of awareness, unaffordable products, high transaction costs, and products which are not customized and are of low quality. A major challenge in the times ahead would be to meet financing requirements, particularly of the unorganized sector and the self-employed in the micro and small business sector.

The Survey clearly says that the economy has successfully navigated the turbulent years of the recent global economic crisis because of the vitality of this Sector in the domestic economy and its prominent role in India’s external economic interactions. The Survey reveals that the share of services in India’s GDP at factor cost (at current prices) increased from 33.5 per cent in 1950-1 to 55.1 per cent in 2010-11 and to 56.3 per cent in 2011-12 as per Advance Estimates (AE). If construction is also included, the Service Sector’s share increased to 63.3 per cent in 2010-11 and 64.4 per cent in 2011-12. Projecting the employment figures the Survey says that while agriculture continues to be the primary employment-providing sector, the Services Sector (including construction) is in second place. As per the National Sample Survey Organisation’s (NSSO) report on Employment and Unemployment Situation in India 2009-10, on the basis of usually working persons in the principal status and subsidiary status, for every 1000 people employed in rural and urban India, 679 and 75 people are employed in the agriculture sector, 241 and 683 in services sector (including construction) and 80 and 242 in the industrial sector, respectively.

The combined FDI share of financial and non-financial services, computer hardware and software, telecommunications and housing and real estate is 41.9 per cent of the cumulative FDI equity inflows during the period April 2000-December 2011. With the inclusion of the construction sector (6.5 per cent), the share of services in FDI inflows increases to 48.4 per cent. Following the general trend in FDI inflows, FDI inflows to the Services Sector (top five sectors including construction) have also slowed down in 2009-10 and 2010-11, with negative growths of -7.5 per cent and -42.5 per cent respectively in rupee terms. In 2011-12 (April to December), again following the trend of overall FDI inflows, which increased by 50.8 per cent to reach US$ 24.19 billion, FDI inflows to the top five Service Sectors (including construction) also increased by 36.8 per cent to US$ 9.3 billion to the Services Sector in 2011-12 (April-December).

Analysing the States’ performance in the Service Sector the Economic Survey 2011-12 notes that the highest growth rates of the Services Sector are in the north-eastern States of Arunachal Pradesh (34.9 per cent) and Sikkim (30.1 per cent). Among the other States, Goa with 20.1 per cent and Bihar with 16.6 per cent growth top the list. This is over and above their very high growth rates in 2008-09. Other States with higher than national average growth in the sector are Kerala, Tamil Nadu, Maharashtra and Mizoram.

The Survey, while outlining the performance of major services like Tourism including hotels and restaurants, Shipping, IT and ITeS and Construction Services expresses no cause for worry despite a slight moderation in services growth to 9.4 per cent (as also in 2010-11). It says this moderation is due to the steep fall in growth of public administration and defence services reflecting fiscal consolidation. In fact growth in trade, hotels and restaurants is more robust at 11.2 per cent and retail-sector growth is expected to be more robust in 2012-13. With hardening of interest rates, the real worry would be with the real estate ownership of dwellings and business services segment, the growth of which has started decelerating and construction services with growth falling by nearly half. The outlook of the Services Sector in the domestic economy is linked to the prospects of the sector externally. While software service exports have continued to be steady, the unfolding events in the euro area could lead to some sluggishness in this sector. The fair-weather business services exports which have already shown signs of declaration may not get better, observes the Economic Survey.

ASSOCHAM president Rajkumar Dhoot however appreciated measures relating to raising resources for meeting high safety and hygiene standards. The modest rise in fares is inevitable due to high crude oil prices internationally and prevailing inflationary pressures, he said.

“The goal of Vision 2020 Document could be a reality if public private partnership is seriously taken up for monetising huge chunks of land and properties in metros and elsewhere.”

Mr Dhoot appreciated setting up of a railway safety authority, a tariff authority and a station development authority for providing clean, safe and affordable journey to passengers. The Railways is passing through difficult financial patch for which resources need to be mobilised – more from internal generations rather than looking for large budgetary support – as the central government is already passing through a phase of fiscal consolidation, he said.

ASSOCHAM senior vice-president Rana Kapoor also said the Railways should accelerate the PPP model with different verticals for its expansion and modernisation. There is far more articulation warranted to monetise the assets by commercialising prime land and properties to raise resources.

Dr Kapoor also called for market-based pricing as the number of passengers has more than doubled in the past five years but the rail network has not expanded in proportion.

The detailed  position of indirect tax revenue collections for and up-to the month of February, 2012 is as follows:

` in crore

The overall growth in indirect tax revenue collection during the month of February, 2012 is around 9.6% which is 2.4% higher than last month position. Further, the progressive growth during April-February of current fiscal year has shown 14.6% over the corresponding period of last financial year.

In this regard the growth in Central Excise revenue for February, 2012 is 1.3% and the overall growth in Central Excise Revenue upto February, 2012 is 6.2% showing a positive trend.  The Service Tax revenue continues to be buoyant and has shown 37.3% growth during February, 2012. The Customs growth has been 5.9% during the month of February, 2012, though the growth upto February, 2012 has been 12.0%.

The department has been able to achieve nearly 88.7% of Budget Estimate up-to the month of February, 2012 in the current fiscal year

During April-February 2012, the following sectors have done well with regard to exports- engineering, (US $ 54.5 billion) which registered the growth of 20.9%; petroleum & oil products, 46% (US $ 53 billion); Gems & Jewellery registered the growth of 28.8% (US $ 40.6 billion); Drugs and pharmaceuticals 11.4% (US $ 11.4 billion );leather 20.4% (US $ 4.1 billion) Cotton yarn and fabric made-up 18.5% (US $ 6.1 billion) ; electronics, 3.5% (US $ 8 billion); Readymade garments, 19% ( US $ 12.1 billion).

As regards to imports during April-February 2012, the growth estimates on the following sectors are: POL, 41% (US $ 132.6 billion); Gold and silver 38.5% (US$ 54.5 billion); machinery, 27% (US $ 32.2 billion), electronics, 21.8% (US $ 30.1 billion), and coal 72% (US $ 15.5 billion US $).

The Commerce Secretary clarified that the figures are only the rough estimates and the final figure is subject to change.

The total goods earnings have gone up from Rs. 56394.23 crore during 1st April 2010 – 28th February, 2011 to Rs. 62171.49 crore during 1st April 2011 – 29th February, 2012, showing an increase of 10.24 per cent.

The total passenger revenue earnings during the first eleven months of the financial year 2011-12 were Rs. 25858.14 crore compared to Rs. 23600.35 crore during the same period last fiscal, registering an increase of 9.57 per cent.

The revenue earnings from other coaching amounted to Rs. 2580.32 crore during April 2011- February 2012 compared to Rs. 2294.71 crore during the same period last financial year, showing an increase of 12.45 per cent.

The total approximate number of passengers booked during April 2011-February 2012 was 7586.82 million compared to 7210.94 million during the same period last financial year, showing an increase of 5.21 per cent. In the suburban and non-suburban sectors, the number of passengers booked during April 2011-February 2012 was 4007.72 million and 3579.10 million compared to 3864.61 million and 2996.96 million during the same period last financial year, showing an increase of 3.70 per cent and 6.96 per cent respectively.

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It is in this situation, the latest report of ILO on `Global employment trends 2012 has been released. It is titled `Preventing a deeper jobs crisis’. That is accepting that there is a job crisis and trying to prevent a deeper one!

ILO on 31st October, 2011 had released a World of Work Report 2011, with the title `making markets work for jobs’. The latest report confirms the apprehensions of the earlier year in all the aspects of job creation.

Deterioration

The Global Trends for 2012, says that “after 3 years of continuous crisis conditions in global labour markets and against the prospect of a further deterioration of economic activity, there is a backlog of global unemployment of 200 million- an increase of 27 million since the start of the crisis.”

The report also notes that “more than 400 million new jobs will be needed over the next decade to avoid a further increase in unemployment”.

What will happen to this expectation is also put in black and white in the report. It says – “the outlook for global job creation has been worsening.

The baseline projection shows no change in the global unemployment rate between now and 2016 remaining at 6 per cent of global labour force. This would lead to an additional 3 million unemployed in 2012 or a total of 200 million rising to 206 million in 2016”.

The report further warns that if global growth falls to below 2 per cent global unemployment will rise more rapidly to 204 million in 2012 and to 209 million in 2013.

On the other hand, if the most unexpected happens, that is if there is a quick resolution of Euro debt crisis, global unemployment would be around 1 million less than the projected 200 million; in 2012. But the report itself says, that this would not be sufficient to significantly alter the trajectory of global unemploym

Addressing a press conference at the Chinnaswamy Stadium here where he was first spotted by Keki Tarapore, an emotional Dravid, 39, bid farewell to the longer format of the game in which he is the second highest run scorer (13,288) after teammate Sachin Tendulkar. Dravid has 36 Test centuries from 164 matches and scored at an average of 52.31.

“I announce my retirement from all forms of international and domestic cricket. I had to make place for the next generation of cricketers,” Dravid said.

Dravid had retired from ODIs in England last year after he was surprisingly picked for the team. His decision comes as a slap on the face of the national selectors, who had ignored him for the last two years. Dravid has 10,889 runs at an average of 39.16 with 12 centuries from 344 ODIs.

The Samajwadi Party emerged victorious and is expected to stake claim to form government.

The Congress suffered humiliating defeats in Uttar Pradesh, Punjab and Goa, but held on to Manipur and barely scraped through in Uttarakhand.

Two ruling parties ousted, two holding on to power despite the odds and neck-and-neck in a fifth state – the electoral pastiche following the February-March polls in Punjab, Uttar Pradesh, Uttarakhand, Manipur and Goa proved that the voter, weary of corruption and inflation, refused to be dazzled by either promises or star value and used only hard pragmatism in exercising choice.

The biggest popularity test since the 2009 general elections had also seen record turnouts.

India’s most populous state Uttar Pradesh voted out Mayawati’s Bahujan Samaj Party (BSP), which won just 80 seats, down by 126 seats since 2007.

It voted in Mulayam Singh Yadav and his SP for a fourth term in office with a triumphant mandate of 224 seats in the 403-member house.

The Congress, which tied up with the Rashtriya Lok Dal (RLD), trailed a sorry fourth with a combined tally of 37 seats. The BJP came up third with an estimated 47 seats.

Punjab went back to the Shiromani Akali Dal-Bharatiya Janata Party combine, the first time in more than 40 years that a party got a second consecutive term, with 68 seats against the Congress’ 46 in the 117-member house.

In Manipur, it was the Congress which overcame anti-incumbency to sweep the polls with a two-thirds majority in the 60-member assembly.

However, the Congress government in Goa made way for BJP rule. The Congress was decimated in the coastal state and managed to win just nine seats, while the BJP bagged 21 on its own and was ready to stake a claim along with ally Maharashtrawadi Gomantak Party that got three seats.

It was a fight to the finish in Uttarakhand with the Congress barely managing to stay on top with 32 seats in a house of 70 and the BJP close behind at 31. With the indecisive mandate, the BSP with three seats, smaller parties and independents with four seats may emerge as the king makers.

Both Congress and BJP have announced they would stake a claim in the Himalayan state.

As pundits and voters alike tried to make sense of the scenario, all agreed that this electoral battle had left the Congress badly bruised and the famed Gandhi charisma in serious question. Questions were also raised on the credibility of the Manmohan Singh led government.

The only silver lining for the party was Manipur, where Chief Minister O. Ibobi Singh held on to power for a third time.

Attention swivelled to Congress general secretary Rahul Gandhi, son of party president Sonia Gandhi, who had addressed over 200 rallies in Uttar Pradesh. Notwithstanding the star attraction or the crowds, the Congress won barely 27 of 403 seats — marginally more than the 22 in 2007.

Prince Charming’s charm failed, said a sceptic, pointing to the Congress rout in Rae Bareli, represented by Sonia Gandhi in the Lok Sabha, where it lost all five assembly seats. Sister Priyanka Gandhi, her husband and even her children had campaigned in what is known as the pocket borough of the Gandhis.

The party sprung to chief campaigner Rahul’s defence but the man himself accepted responsibility for the debacle.

“I fought, so it is my responsibility,” he said. “Organisationally we are not where we should be… The Congress fundamentals were weak. Until we set that right, that weakness will not go away.”
Other party leaders admitted they were stunned.

“The UP results are deeply disappointing,” said Law Minister Salman Khurshid, whose wife Louise was defeated in Farrukhabad.

The BJP put up a brave face.

“It’s a mixed bag for BJP,” its leader Sushma Swaraj said, adding that the party had won Punjab, Goa and expected to bag Uttarakhand too.

But there was more to it. The win in Punjab was attributed to the Akali Dal, which increased its score from 49 to 56 while the BJP’s share went down from 19 to a low 12. In Uttarakhand, it was chief minister B.C. Khanduri was defeated in his own seat.

The mood was not very different in the Akali Dal and SP camps.

Wild celebrations broke out at Badal village as 85-year-old Parkash Singh Badal steered the Akali Dal-BJP combine to another victory.

Ditto at the SP headquarters in Lucknow where Mulayam Singh Yadav came back as chief minister for a fourth term.
“I would like to congratulate the people of Uttar Pradesh who have brought Samajwadi Party back,” a jubilant Mulayam Yadav said.

Winning 224 seats, the Mulayam Singh Yadav-led party is set to form the government in the state with a comfortable majority in the 403-member assembly. Its performance comes as quantum jump to 2007 when it was voted out of power and got just 97 seats.

The BSP has been literally wiped out, securing 80 wins now against its unprecedented 206 seats in 2007.

Meanwhile, the Bhartiya Janata Party (BJP) with 47 seats has slipped from its earlier standing of 51 seats in 2007 but then it was in alliance with the Apna Dal.

The real loser is the Congress.

Though the party fared slightly better from its 22 seat tally of 2007 by getting 28 wins, the party faced humiliation with a complete rout in Amethi and Rae Bareilly – bastions of the Gandhi family, seats which are held in the Lok Sabha by general secretary Rahul Gandhi and party chief Sonia Gandhi respectively.

With heavy gains for the SP in the two Gandhi citadels, questions are being raised on the Gandhi charisma as not only Rahul and Sonia, even Priyanka Gandhi with her two children had camped here and canvassed for Congress candidates.

The shock for the Congress did not end here as despite the Muslim sub-quota promise and other promises to the minority community, the party fared badly in almost all Muslim dominated constituencies.

In Azamgarh, where the party invoked the Batla House gunfight of Delhi, the party failed to get even one seat out of five, and was either at the third or fifth position.

In Aligarh, the seat of the prestigious Aligarh Muslim University (AMU), the SP won the city seat while the Congress was pushed to the fourth position. In Deoband, another important Muslim centre, the Congress was at the third position and saw the seat going to the Samajwadi Party.

Union Law Minister Salman Khursheed who had raised the hackles of the Election Commission (EC) by promising 18 percent sub-quota for Muslims in jobs and colleges, if the party was voted to power, even “if he was hung by the poll panel” failed to get his wife and sitting legislator Louise Khursheed win the Farrukhabad seat.

Even the BJP despite its slightly better performance this time saw its strongholds crumble in face of the SP wave.

Lucknow, always held by the BJPm saw just one seat out of the nine come to it with party veteran Kalraj Mishra winning Lucknow East. This was the first time that the BJP went to polls without the charismatic former prime minister Atal Behari Vajpayee and the losses are for all to see. The BJP could not even hold to Faizabad and Ayodhya – where the Ram Janmabhoomi movement was born and picked up pace.

Independents and other small parties who won 16 seats in the 2007 state assembly polls have managed 14 seats this time.

Beating the traditional anti-incumbency factor, the combine bagged a comfortable majority with 68 seats in the 117-member Punjab assembly as results were declared. It is for the first time in over four decades that a government has been able to come back to power for a consecutive term in Punjab.

Surprisingly, the combine managed to bag the same number of seats it had got in the 2007 assembly polls – 68.

The positives from the results were more for the Akali Dal as it increased its score from 49 seats in 2007 to 56 this time. However, alliance partner BJP’s tally came down – from 19 seats to just 12 this time.

The Congress, which was very hopeful of coming back to power this time, was “surprised” by the results and ended with 46 seats. In 2007, the party had bagged 44 seats.

While the Akali Dal with 34.75 percent, and BJP with 7.13 percent, got 41.88 percent vote share, the Congress had 40.11 percent votes and 6.76 percent votes went to independents.

“I want to thank the people of Punjab for the faith reposed in us again. I don’t have the words to express my gratitude to them. They have given us such a big victory,” a visibly happy Chief Minister Parkash Singh Badal, 84, told the media at his palatial residence in Badal village, 270 km from here.

With his son, Akali Dal president Sukhbir Singh Badal – who is also the deputy chief minister – by his side, Badal senior said: “There are two reasons for our victory. We went to the people with the agenda of peace and development in the state. I am happy that we have been able to live up to their expectations.”

With victory in their bag, the question being asked now is which of the Badals – the father or the son – will be the next chief minister of Punjab.

“It is for the party leadership to decide on who will be the chief minister,” Badal senior, clearly trying to evade the question, said.

Sukhbir, who is being credited by Akali Dal leaders for the party’s remarkable victory, was more clear on the issue. He himself returned with the highest victory margin, 50,246, among all 117 winning candidates.

Badal junior, 49, said: “We will consult the party but Parkash Singh Badal will be the candidate (for being CM).”

Dropping hints about Sukhbir’s elevation, the chief minister said: “It is the victory of the people of Punjab. But I must appreciate Sukhbir Badal as he worked very hard with the party organisation. He had a big role as party president. He played the role effectively. I am fully satisfied.”

Sukhbir led the Akali Dal campaign from the front and was the most visible face of the party compared to his ageing father. During the campaign, Sukhbir had openly said that the Akalis would govern Punjab for 25 years.

Badal senior also announced that he and his entire family will pay obeisance at the holiest of Sikh shrines, Harmandar Sahib, (popularly called Golden Temple) in Amritsar Wednesday.

“We will work harder in the new government,” Badal announced.

The Akali Dal and BJP are likely to hold a meeting here Thursday before the next government is sworn-in.

The Congress, which was very hopeful of returning to power this time, accepted defeat in the election.

“We accept our defeat. We will analyze where things went wrong. We could not win, we will do introspection for our defeat,” Punjab Congress president Amarinder Singh told the media at his residence in Chandigarh.

“I take full responsibility for the defeat. This result is very surprising,” Amarinder Singh, a former chief minister, said.

“I wish the government well. I hope they will perform well for Punjab. It needs good governance,” he added.

Congress dissidents, nearly two dozen of them, did affect the party’s official candidates on some seats.

Former finance minister and People’s Party of Punjab (PPP) president Manpreet Badal lost from two seats, Maur and Gidderbaha, while his party failed to open its account. Manpreet remained inaccessible to the media till Tuesday evening. He issued a statement in the evening saying that the PPP may not have won but has made its presence felt.

The PPP got 5.71 percent of the 78.6 percent record votes polled from Punjab’s over 1.76 crore eligible electorate in the elections held Jan 30.

Manpreet’s father, Gurdas Badal, who contested against his elder brother Parkash Singh Badal from the Lambi assembly seat, even lost his security deposit in the election.

“India claims that this trade ban is aimed at preventing avian influenza, but it has not provided scientific evidence in line with international standards on avian-influenza control,” United States Trade Representative (USTR) Ron Kirk said Tuesday.

Consultations are the first step in the WTO dispute settlement process and parties are encouraged to agree to a solution at this stage, he said and “If the matter is not resolved through consultations, the US may request the establishment of a WTO dispute settlement panel.”

“India’s ban on US poultry is clearly a case of disguising trade restrictions by invoking unjustified animal health concerns,” he said asserting that “The United States is the world’s leader in agricultural safety and we are confident that the WTO will confirm that India’s ban is unjustified.”

“Opening India’s market to American farmers will promote jobs here at home, while also providing Indian consumers with access to high quality, safe US products,” Kirk said.

Since at least February 2007, India has formally banned imports of various agricultural products from the US, supposedly to prevent outbreaks of avian influenza in India, USTR said.

Over the last few years, the US has repeatedly asked India to justify its claim that a ban on products from the United States is necessary, he said. “To date, India has not provided valid, scientifically-based justification for the import restrictions.”

While the WTO explicitly recognizes member right to adopt regulations to protect human, animal, or plant life or health, it also requires them to take certain steps to ensure that such regulations are not merely a cover for protectionism, USTR said.

“India appears to have acted inconsistently with its WTO obligations in this case,” he said claiming, “In particular, India’s ban does not appear to be supported by scientific evidence or a valid risk assessment.”

“I am not in the race for the chief minister’s post. The party feels that the responsibility should go to Netaji,” he said, referring to party leader and former chief minister Mulayam Singh Yadav.

Thanking the people for voting in the party’s favour, Akhilesh said: “People voted for us, rising above caste and religion. I assure them that party’s election manifesto will be implemented and corruption will be curtailed.”

He also declined to take credit for the victory, saying the entire party structure worked to rebuild the Samajwadi Party after its disastrous showing in 2007 when it won only 97 of the assembly’s 403 seats.

Yadav junior declined to say anything about Congress general secretary Rahul Gandhi but was critical of outgoing Chief Minister Mayawati, saying she had squandered away the huge mandate she got five years ago.

“If only she had spent all the money she spent on erecting statues on the state’s development, it would have been good,” he said.

He said the parliamentary board would meet Wednesday and will stake claim for forming the government in the state.

Replying to a question if the party would remove Mayawati’s statues in state, Akhilesh said: “No statues will be removed and Netaji has said there is lot of place and it can be used for running some organisations.” The reference was to the huge complexes within which the statues have been erected in different parts of the state.

“The Congress failed in assembly elections as it could not bring back black money stashed in foreign banks. It was also the issue of illegal mining in Goa which brought the party down,” said Ramdev, addressing a press conference in the capital.

Ramdev also gave credit to voters in the states for the debacle of the Congress.

“The Congress party has broken down and the credit goes to people, who voted against them,” he said.

“It was also our team work with Team Anna… we worked hard to spread awareness among the general public to cast vote for the right party,” said Ramdev.

Ramdev also advised Congress general secretary Rahul Gandhi to take lessons from the election results and congratulated Samajwadi Party’s Akhilesh Yadav for his success in Uttar Pradesh polls.

Asserting his commitment to fight against corruption, he said: “We will continue our fight against corruption and black money throughout the country and will bring out rallies.”

Uttar Pradesh

Winners:

Rita Bahuguna Joshi, Lucknow Cantt, Congress

Kalraj Mishra, Lucknow East, Bharatiya Janata Party

Abhishek Misra (ex-professor at IIM Ahmedabad), Lucknow West, Samajwadi Party

Jayant Chaudhary, (son of Rashtriya Lok Dal chief Ajit Singh), Mant, RLD

Losers:

Nakul Dubey (Close Mayawati aide and minister), Bakshi ka Talaab, Bahujan Samaj Party

Keshari Nath Tripathi (former assembly speaker), Allahabad South, BJP

Atiq Ahmad (mafia don-turned-politician), Allahabad West, Apna Dal

Ameeta Singh (Gandhi family confidante and former national badminton player), Amethi, Congress

Rajveer Singh (former chief minister Kalyan Singh’s son), Dibai, Jan Kranti Party

Uttarakhand

Winners:

Ramesh Pokhriyal (former chief minister), Doiwala, BJP

Yashpal Arya (Congress state unit chief), Baajpur, Congress

Bishan Singh Chufal (BJP state president), Didihaat, BJP

Losers:

B.C. Khanduri, Kotdwar, BJP

Punjab

Winners:

Parkash Singh Badal, Lambi, Akali Dal

Sukhbir Singh Badal, Jalalabad, Akali Dal

Amarinder Singh, Patiala Urban, Congress

Jagir Kaur (former Shiromani Gurdwara Parbandhak Committee president), Bholath, Akali Dal

Rajinder Kaur Bhattal (former chief minister), Lehra, Congress

Losers:

Raninder Singh (Amarinder Singh’s son), Samana, Congress

Tikshan Sud (outgoing minister), Hoshiarpur, BJP

Upinderjit Kaur (finance minister), Sultanpur Lodhi, Akali Dal

D.S. Guru (ex-principal secretary to chief minister), Bhadaur, Akali Dal

P.S. Gill (ex-director general of police), Moga, Akali Dal

Goa

Winners:

Chief Minister Digambar Kamat, Margao, Congress

Pratapsing Rane, (speaker), Poriem, Congress

Manohar Parrikar, Panaji, Bharatiya Janata Party

Vishwajit Rane (health minister), Valpoi, Congress

Atanasio Monserrate (education minister), St Cruz, Congress

Losers:

Ravi Naik (home minister), Ponda, Congress

Churchill Alemao (public works department minister), Navelim, Congress

Arjun Salgaonkar (scion of mining baron Anil Salgaonkar), Independent, Sanvordem

Sameer Salgaonkar (scion of mining baron Anil Salgaonkar), Trinamool Congress, Mandrem

Manipur

Winners:

Okram Ibobi Singh, Thoubal, Congress

N. Biren Singh (minister and government spokesman), Heingang, Congress

Landhoni Devi (chief minister’s wife), Khangabok, Congress

Debendra Sing (revenue minister), Jiribam, Congress

Gaikhangam (state Congress chief), Nungba, Congress

Losers:

Radhabinod Koijam (former chief minister), Tipaimukh, Nationalist Congress Party,

O. Joy Singh (Manipur Peoples Party chief), Langthabal, MPP

Th. Chaoba Singh (former union minister), Nambol, MPP

Nimaichand Luwang (convener of 11-member non-Congress front Peoples’ Democratic Alliance), Wangkhem, NCP

The three young leaders have a lot in common. They are inheritors of political legacies and are MPs from Uttar Pradesh. But while Gandhi and Chaudhary fought as allies, Akhilesh’s party contested the 403 seats on its own.

Akhilesh, 38, who despite his father’s antipathy to English was educated to Australia, reached out to people at the grassroots through road shows across the state and sought to convey a message of being accessibile and reachable.

Party leaders said Akhilesh reshaped SP’s thinking by going beyond caste mobilisation and sought to connect its campaign to the aspirations of the youth in the country’s most populous state, which lags behind in human development parameters.

They said Akhilesh prevailed upon the leadership to shed its image as a party opposed to computers and English language. The party has promised laptops to students who clear Class 12 from government schools.

Son of SP supremo Mulayam Singh Yadav, Akhilesh attempted to wash off the taint of his party’s association with criminal elements during its rule in the state. He vetoed induction of don-politician D.P. Yadav.

As trends showed the party was coming up trumps, Akhilesh said he was not in the race for chief minister’s post.

“The party feels that the responsibility should go to Netaji,” he said, referring to party leader and former chief minister Mulayam Singh Yadav.

The SP had advantage over the Congress as it was the main opposition in the state, having secured around 25 percent votes in the 2007 polls. It also had a clear chief ministerial candidate in Mulayam Singh Yadav. The party won 224 seats to get full majority in the 403-member Uttar Pradesh assembly.

Though Gandhi, 41, sought to neutralise the weaknesses of his party with a high-pitched campaign, the results for the party were far below its expectations.

Gandhi, MP from Amethi, addressed over 200 rallies in the campaign and traversed nearly 3,500 km during his five Jan Sampark Yatras (public contact programmes) that started last November. He held road shows in cities and covered about 10,700 km between Jan 28 and Feb 29.

Gandhi whose father, grandmother and great grandfather were prime ministers of the country, told the voters that his mission was not restricted to elections but was about changing Uttar Pradesh and bringing the party back to power, where it last ruled 22 years ago.

The Congress had a paltry vote share of about eight percent in 2007 polls and had won just 22 seats in the assembly.

The party has lost all the seats in Rae Bareli, the Lok Sabha constituency of party chief and Rahul’s mother Sonia Gandhi, while in Rahul’s own Amethi Lok Sabha constituency, the Congress won two of five seats.

The Congress saw only a marginal improvement in its previous tally of 22 seats.

After the verdict, Rahul said he accepts responsibility for the party’s poor showing. “The Congress’ fundamentals were weak and organisationally we were not where we should be and the general mood was for the Samajwadi Party.”

Unlike Gandhi and Akhilesh Yadav, Jayant Chaudhary, 33, contested the assembly polls as a party nominee.

Chaudhary, whose father is a union minister and grandfather Charan Singh was a former prime minister, raised issues of land acquisition, corruption and injustice to farmers during his campaign.

The RLD got nine seats, one seat less than its tally of 10 in 2007 polls.

According to a government statement, Jayalalithaa spoke to Badal over telephone and congratulated him.

She also called Samajwadi Party president Mulayam Singh Yadav over phone and congratulated him on his vicory in the Uttar Pradesh assembly elections.

The Bahujan Samaj Party (BSP), which was routed in the neighbouring Uttar Pradesh, holds the key to the government formation in the hill state where it bagged three seats.

The BJP got 31 while others, including independents, together got four seats whose support along with the BSP will decide who will lead the next government in the state.

The Congress, which failed to grab power in Punjab, was humiliated in Uttar Pradesh and ousted in Goa, bettered its performance in Uttarakhand from its 2007 tally of 21.

The BJP was three down from its 34 members in the outgoing assembly while the BSP was a clear loser, given its seven seats in 2007.

BJP’s Arun Jaitley said the BSP’s vote share going down has benefited the Congress, as he dismissed any anti-incumbency factor played against his party.

The major setback for the ruling BJP was the loss of Chief Minister B.C. Khanduri, who had led the poll campaign with a slogan of “Khanduri hain zaroori”.

He was defeated by Congress’ S.S. Negi in Kotdwar constituency by over 4,500 votes.

A retired army officer, Khanduri was re-appointed chief minister of Uttarakhand last September following corruption charges against his predecessor Ramesh Pokhriyal.

The BJP had Khanduri back at a time when the party was preparing for the assembly polls hoping to tame the anti-corruption tide in the state. But the plan failed to deliver the desired result.

Pokhriyal, a known Khanduri bete noire, however, won from the Doiwala constituency defeating Congress’ Heera Singh Bisht by 1,272 votes.

BJP state president Bishan Singh Chufal won from Didihaat defeating his closest rival Rewati Joshi of the Congress by over 10,600 votes

Uttarakhand Congress chief Yashpal Arya also won from Baajpur seat defeating Rajkumar of the BJP by 15,075 votes.

All eyes would be now on the BSP, other smaller parties and independents for the next government.

Both the Congress and the BJP expressed confidence they would form the new government.

“Certainly, ambition of any party who fights election is to form the government… We have an edge,” Congress spokesperson Abhishek Manu Singhvi said.

Asked if the Congress would stake claim to form the government, Singhvi said: “Absolutely… I see no reason (not to stake the claim).”

The Congress leader said “there are some undecided people”, indicating that his party would be talking to smaller parties to seek their support.

Ravi Shankar Prasad of the BJP said his party would also try to form the government in the state but feared that “the Congress may misuse the institution of governor”.

Winning 224 seats, the Mulayam Singh Yadav-led party is set to form the government in the state with a comfortable majority in the 403-member assembly. Its performance comes as quantum jump to 2007 when it was voted out of power and got just 97 seats.

The BSP has been literally wiped out, securing 80 wins now against its unprecedented 206 seats in 2007.

Meanwhile, the Bhartiya Janata Party (BJP) with 47 seats has slipped from its earlier standing of 51 seats in 2007 but then it was in alliance with the Apna Dal.

The real loser is the Congress.

Though the party fared slightly better from its 22 seat tally of 2007 by getting 28 wins, the party faced humiliation with a complete rout in Amethi and Rae Bareilly – bastions of the Gandhi family, seats which are held in the Lok Sabha by general secretary Rahul Gandhi and party chief Sonia Gandhi respectively.

With heavy gains for the SP in the two Gandhi citadels, questions are being raised on the Gandhi charisma as not only Rahul and Sonia, even Priyanka Gandhi with her two children had camped here and canvassed for Congress candidates.

The shock for the Congress did not end here as despite the Muslim sub-quota promise and other promises to the minority community, the party fared badly in almost all Muslim dominated constituencies.

In Azamgarh, where the party invoked the Batla House gunfight of Delhi, the party failed to get even one seat out of five, and was either at the third or fifth position.

In Aligarh, the seat of the prestigious Aligarh Muslim University (AMU), the SP won the city seat while the Congress was pushed to the fourth position. In Deoband, another important Muslim centre, the Congress was at the third position and saw the seat going to the Samajwadi Party.

Union Law Minister Salman Khursheed who had raised the hackles of the Election Commission (EC) by promising 18 percent sub-quota for Muslims in jobs and colleges, if the party was voted to power, even “if he was hung by the poll panel” failed to get his wife and sitting legislator Louise Khursheed win the Farrukhabad seat.

Even the BJP despite its slightly better performance this time saw its strongholds crumble in face of the SP wave.

Lucknow, always held by the BJPm saw just one seat out of the nine come to it with party veteran Kalraj Mishra winning Lucknow East. This was the first time that the BJP went to polls without the charismatic former prime minister Atal Behari Vajpayee and the losses are for all to see. The BJP could not even hold to Faizabad and Ayodhya – where the Ram Janmabhoomi movement was born and picked up pace.

Independents and other small parties who won 16 seats in the 2007 state assembly polls have managed 14 seats this time.

The Bahujan Samaj Party (BSP), which was routed in the neighbouring Uttar Pradesh, holds the key to the government formation in the hill state where it bagged three seats.

The BJP got 31 while others, including independents, together got four seats whose support along with the BSP will decide who will lead the next government in the state.

The Congress, which failed to grab power in Punjab, was humiliated in Uttar Pradesh and ousted in Goa, bettered its performance in Uttarakhand from its 2007 tally of 21.

The BJP was three down from its 34 members in the outgoing assembly while the BSP was a clear loser, given its seven seats in 2007.

BJP’s Arun Jaitley said the BSP’s vote share going down has benefited the Congress, as he dismissed any anti-incumbency factor played against his party.

The major setback for the ruling BJP was the loss of Chief Minister B.C. Khanduri, who had led the poll campaign with a slogan of “Khanduri hain zaroori”.

He was defeated by Congress’ S.S. Negi in Kotdwar constituency by over 4,500 votes.

A retired army officer, Khanduri was re-appointed chief minister of Uttarakhand last September following corruption charges against his predecessor Ramesh Pokhriyal.

The BJP had Khanduri back at a time when the party was preparing for the assembly polls hoping to tame the anti-corruption tide in the state. But the plan failed to deliver the desired result.

Pokhriyal, a known Khanduri bete noire, however, won from the Doiwala constituency defeating Congress’ Heera Singh Bisht by 1,272 votes.

BJP state president Bishan Singh Chufal won from Didihaat defeating his closest rival Rewati Joshi of the Congress by over 10,600 votes

Uttarakhand Congress chief Yashpal Arya also won from Baajpur seat defeating Rajkumar of the BJP by 15,075 votes.

All eyes would be now on the BSP, other smaller parties and independents for the next government.

Both the Congress and the BJP expressed confidence they would form the new government.

“Certainly, ambition of any party who fights election is to form the government… We have an edge,” Congress spokesperson Abhishek Manu Singhvi said.

Asked if the Congress would stake claim to form the government, Singhvi said: “Absolutely… I see no reason (not to stake the claim).”

The Congress leader said “there are some undecided people”, indicating that his party would be talking to smaller parties to seek their support.

Ravi Shankar Prasad of the BJP said his party would also try to form the government in the state but feared that “the Congress may misuse the institution of governor”.

As his Samajwadi Party triumphed in Uttar Pradesh against all odds, it was clear the man’s favourite wrestling lock, dhobhi patak, remains intact.

Set to be coronated chief minister of India’s most populous state for a fourth term, there was a time when Mulayam borrowed a cycle to travel in the countryside where he was born and bred.

Influenced by the teachings of veteran socialist Ram Manohar Lohia, Mulayam took to politics as a teenager. His indomitable energy and ability to mix with ordinary folks quickly won him numerous admirers.

He first took to teaching. But it is politics that made him what he is today — a dogged fighter with the sobriquet ‘Netaji’.

He was first elected, on a socialist party ticket, to the Uttar Pradesh assembly in 1967, when the Congress suffered major reverses in north India at the hands of an aggressive opposition.

A postgraduate in political science, he was elected to the house eight times.

As opposition politics underwent convulsions, Mulayam gravitated from one party to another until founding the Samajwadi Party in 1992.

He became chief minister of Uttar Pradesh in 1989 but it was all over in two years. This was when he ordered security forces to fire at a mob which tried to bring down the Babri mosque, forever earning the gratitude of the Muslim community. Hindutva forces quickly dubbed him “Mulla Mulayam”.

After the Babri mosque was razed in December 1992, he teamed up with the Bahujan Samaj Party (BSP) to be chief minister again. The Samajwadi tie-up with BSP was a disaster, and both soon became sworn enemies.

In 1996, Mulayam became India’s defence minister after getting elected to the Lok Sabha.

He again took charge of Uttar Pradesh from 2003. His party was routed four years later.

Decades of political work made him a pragmatist, one who shed many of his old socialist slogans to easily merge with India’s top industrialists and the glitterati.

As he dug deeper into national politics, Amar Singh emerged as his most trusted lieutenant. It was a relationship that caused much envy among many of his colleagues who deserted Mulayam.

The relationship finally soured in 2009 when his son Akhilesh Yadav, now seen as a hero of the Samajwadi sweep in Uttar Pradesh, blamed Amar Singh for his wife’s defeat in the Lok Sabha election.

Aides recount tales of Mulayam stopping by roadside eateries to chat with commoners.

“He has no airs, he is very down to earth but does not believe in hyping it like others,” a security officer who has known him for years told IANS.

Now a member of the Lok Sabha, elected for the fifth time in 2009, Mulayam draws support dominantly from his own Yadav clan and Muslims.

His political hub is the backward belt of Mainpuri and Etawah, the former home to a thriving industry in locally-made guns called ‘katta’.

Loyalty means a lot to him.

He has retained his Personal Security Officer Shiv Kumar, his personal secretary Jagjivan and telephone operator-cum-attendant Tara Chand for the last three decades.

While he largely remains a socialist at heart, his lifestyle changed midway. For one who used to sip butter milk bottled in a thermos flask during flights, he now prefers ginger ale

The Akali Dal sought votes from the electorate in the name of four-time chief minister Parkash Singh Badal. But it was the political management of his son and Akali Dal president, Sukhbir Singh Badal, who is also the Punjab deputy chief minister, which led the party to create history by coming back to power for a second consecutive term.

The question on “who is the next CM” was popped to Badal Senior Tuesday after the Akali Dal-Bharatiya Janata Party (BJP) romped home with 68 seats in the 117 member assembly.

“It is for the party leadership to decide on who will be the chief minister,” Badal, clearly trying to evade the question, said.

Badal Senior, 84, during his campaigning, used to openly tell voters that this would be his last election. Having joined politics in 1947 and being elected to the assembly for the first time in 1957, Badal is a veteran in Indian politics.

He became chief minister for the first time in 1970. Subsequently, he remained chief minister from 1977-80, 1997-2002 and 2007-2012. He had been a union minister too.

Sukhbir, who is being credited by Akali Dal leaders for the party’s remarkable victory, was more clear on the issue.

Badal Junior, 49, said: “We will consult the party but Parkash Singh Badal will be the candidate (for being CM).”

He also said the party would govern for 25 years.

Dropping hints about Sukhbir’s elevation, the chief minister said: “It is the victory of the people of Punjab. But I must appreciate Sukhbir Badal as he worked very hard with the party organisation. He had a big role as party president. He played the role effectively. I am fully satisfied.”

Sukhbir led the Akali Dal campaign from the front and was the most visible face of the party compared to his ageing father.

Given the fact that Sukhbir’s uncle Gurdas Badal was contesting against Parkash Singh Badal from the Lambi assembly seat this time, the chief minister was forced to spend a lot of time in his own constituency.

With the Akali Dal being a regional party, Sukhbir took up the challenge of the campaign as the Congress brought in central leaders like Prime Minister Manmohan Singh, Congress president Sonia Gandhi and Congress general secretary Rahul Gandhi to campaign for the party candidates.

In the outgoing government (2007-2012), it was Sukhbir, who was first elevated as Akali Dal president and subsequently made deputy chief minister (in 2009), who called the shots in his father’s government.

In the assembly election results declared Tuesday, Darbara Singh Guru, a senior IAS officer and former principal secretary to Chief Minister Parkash Singh Badal, who quit his job to contest the Bhadaur (Reserved) seat as an Akali Dal candidate lost to singer Mohammed Sadique. Guru had nursed the constituency in his capacity as the most powerful bureaucrat in the Badal government but that did not pay off.

Former Punjab police chief Paramdeep Singh Gill, who had quit his job as special adviser (Security) to the state home minister to contest the elections as an Akali Dal candidate from Moga, also lost.

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Dissident brothers win

Two brothers, Simranjit Singh Bains and Balwinder Singh Bains, are among the three Independent legislators elected this time. Both of them were Akali Dal dissidents and beat the official candidates convincingly – by margins of over 28,500 votes and 32,200 votes – from the Atam Nagar and Ludhiana south seats.

Balwinder Bains was previously the official Akali Dal candidate but was removed as his brother revolted against the ruling party. Simarjit Bains defeated sitting Akali minister Hira Singh Gabria from Atam Nagar.

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Congress Young Turks lose

Two prominent Congress legislators in the outgoing Punjab assembly, Sukhpal Singh Khaira and Jasbir Singh Khangura (Jassi Khangura), who were part of the party’s active young brigade, have been defeated in the election. Khaira lost the Bholath seat to former SGPC president Jagir Kaur while Khangura lost from the new seat of Dakha.

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An Olympian and a legislator

Former Indian hockey captain and Olympian Pargat Singh won the Jalandhar Cantt seat as an Akali Dal candidate. A reluctant Pargat Singh, who was Punjab’s Director of Sports till early January, was picked up by Akali Dal president Sukhbir Badal to fight as a party candidate. He won the seat by nearly 6,700 votes.

The soft-spoken Pargat, who excelled as a player and later as sports director, will now have a new field – politics – to play on.

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Small victory for Badal’s son-in-law

Punjab minister and Chief Mminister Parkash Singh Badal’s son-in-law Adesh Pratap Singh Kairon may be linked to two prominent political families of the state – the Kairons and the Badals, but he just managed to scrape through on Tuesday. Adesh won by only 59 votes from the border area seat of Patti. Badal may find it difficult to adjust a candidate with such a small victory margin in his ministry.

The children were admitted to Jawaharlal Institute of Postgraduate Medical Education and Research (JIPMER) in a serious condition in February and died without responding to medication.

Unlike in the first hour of vote counting when the Bharatiya Janata Party (BJP) seemed to be racing ahead of the BSP, later trends showed that Chief Minister Mayawati’s party would finish as the second largest group despite plunging from its 2007 tally of 206 seats.

Election Commission sources said the Samajwadi Party, whose performance mirrored exit poll predictions, was leading in 183 of the 384 seats where counting trends were available.

Having won only 97 seats five years ago, the Samajwadi Party made gains all across the sprawling state.

Party leader Shahid Siddiqui said he expected Governor B.L. Joshi to call Mulayam Singh Yadav to form the next government and that the party would be able to secure enough support from smaller groups.

BJP leaders admitted they were disappointed by the less than impressive showing in Uttar Pradesh where the party may end up falling to the fourth slot — marginally below an equally disappointed Congress.

The Congress was stunned, with many of its leaders openly admitting their disappointment — their woes only added by defeats the party faced both in Punjab and Goa. In Uttarakhand, the Congress was in neck and neck race with the BJP.

“We are surprised and shocked,” Congress leader and Minister of State for Science and Technology Ashwani Kumar said.

In an unprecedented development, Congress candidates trailed behind their rivals in all five seats in Rae Bareli, represented in the Lok Sabha by party president Sonia Gandhi.

It was the same story in Jagdishpur in Amethi, which elected Rahul Gandhi to parliament in 2009. Jagdishpur has been a Congress fortress for years.

Law Minister Salman Khurshid’s wife Louise Khurshid faced a miserable defeat in Farrukhabad.

Political pundits said the Samajwadi Party was expected to finish with 175-180 seats, short of the 202 needed to form a government.

The BSP could end up with around 100 seats, and the BJP and Congress in the 50-60 seat region.

The BJP quickly made it clear it would not back any coalition government in the state.

BJP general secretary Mukhtar Abbas Naqvi said the party realised that its decision to prop Mayawati thrice in the past was “a big mistake”.

Celebrations erupted outside the Samajwadi Party office in Lucknow, with hundreds of men and women, many donning red caps, dancing to drum beats.

Among the major players leading in Uttar Pradesh were Shivpal Singh Yadav (Samajwadi Party), Congress state president Rita Bahuguna Joshi, Swami Prasad Maurya (BSP) and Kalraj Mishra (BJP).

The Congress was followed by the Trinamool Congress with three seats. Smaller parties were ahead in the remaining eight seats.

In Manipur, the main battle is between the Congress and an alliance of 11 opposition parties.

Theatre personalities and others in the creative fraternity feel the demonstrations only show India in poor light.

Vishwa Hindu Parishad (VHP) and Shiv Sena supporters shouted anti-Pakistan and anti-Osama slogans at the film shoot here last week.

They objected to the film unit using Pakistani flags, Urdu sign boards and other things to recreate Pakistani’s Abbottabad city, where US special forces shot dead the elusive Al Qaeda chief last year.

“They are creating an issue out of nothing. Creativity should be left alone by these elements,” Kuldeep Sharma, director of Tagore Theatre, the city’s only theatre for arts and cultural activities, told IANS.

“If people have come to our country to shoot, they should be left to do it peacefully. If not here, they will pick some other city.

“The protesters should focus on other social issues instead of gaining mileage from such issues,” Sharma said.

Others were equally upset.

“Just because the director is showing ‘Pakistani streets’ is not a fair reason to protest. I don’t know what ideology these people have,” said Zulfiqar Khan, a leading theatre director and actor.

“Whatever Kathryn is shooting will obviously be according to the script. Until the movie is released and we see it, what is the point of creating a fuss about the shooting?” Khan asked.

The Hollywood film crew, which has been in the city since last week, had ironically conducted Hindu prayers before starting work here.

Sudesh Sharma, director of Theatre for Theatre, was equally dismissive of the VHP and Shiv Sena.

“They need to bring some change in their thinking. I suppose only God can do that! Until a movie is ready, how can they question it?”

Satirist-actor Jaspal Bhatti is also upset.

“Creating a scene of Pakistan is part of the script. When ‘Gadar’ was shot, no one created a fuss on its shooting.

“The Pakistan shown in that movie was also made somewhere in India. It is the most illogical thing I have heard. It is an infringement of artistic activities,” Bhatti told IANS.

Educationist and author Neel Kamal Puri agreed: “People need to be more open minded. I do not really see a reason to protest about. Kathryn is just doing her job.”

The administration and police have defended the film unit, saying they have all the permission.

Police officer Rajesh Shukla told IANS: “When the government of India and Chandigarh administration have given the crew permission to shoot, how can we stop them?”

Local traders had also protested against the shooting in the Mani Majra suburb last week saying their business was being hit. The film unit reportedly paid Rs.700,000 to compensate the loss of trade.

Shukla said: “The market welfare association was aware of the shooting.”

As votes were counted for the staggered elections, the high profile Louise Khurshid, a legislator in the outgoing assembly, was behind Urmila Rajput of the Samajwadi Party, Mohammed Umar Khan of the Bahujan Samaj Party (BSP), Vijay Singh, an independent, Major Sunil Dutt Dwivedi of the Bharatiya Janata Party (BJP) and Mohan Agarwal of the Jan Kranti Party (Rashtrawadi Party).

At 10.30 a.m., Louise Khurshid had managed 2,826 votes, far behind the SP’s Urmila Rajput at 7,359 votes.

Her defeat would be a major blow for the Congress. It was in Farrukhabad that Salman Khurshid had thrown a gauntlet at the Election Commission of India, saying that he would ensure 18 percent sub-quota for Muslims.

Initial trends had suggested a close call between the two parties with the BJP overtaking the Congress midway.

The Bahujan Samaj Party (BSP) was third with seven seats followed by the Samajwadi Party (SP) with one.