INDIA COUNTRY BRIEF 100309

Basic Political Developments

The Rajya Sabha (upper house) Tuesday passed the historic women's quota bill promising 33 percent reservation to women in parliament and state legislatures by a voice vote.

Media reports today said Janata Dal (United) faces the danger of a split in its ranks as its MPs are divided over the Women’s Reservation Bill. The party has traditionally opposed the bill. The situation within the party, however, changed dramatically last week following Bihar Chief Minister Nitish Kumar’s statement in favour of the bill.

UPA ally Trinamool Congress on Tuesday said its members will not participate in the voting of the Women’s Reservation Bill as it was not intimated about it. The party accused the government of trying to bulldoze the Women’s Reservation Bill in the Rajya Sabha, lower house of Indian Parliament.

Opposition leader in the Kerala Assembly, Oommen Chandy today alleged in the House that the five-day sit-in launched by CPI-M yesterday in front of Central Government offices against the UPA Government's policies was causing hardship to common people.

Media reports said defying the action by Rajya Sabha, its seven members who were today suspended for their unruly behaviour yesterday over the Women's Bill refused to leave the House and remained squatted in the well for over two hours.

Samajbadi Party (SP) chief Mulayam Singh Yadav today accused the Union Government of resorting to "dictatorship" over the issue of Women's Reservation Bill and said the move will prove "catastrophic" for it. Yadav said the meeting of Prime Minister Manmohan Singh with the opponents of the bill failed to yield any result.

Media reports said noisy scenes and vociferous protests in the Lok Sabha, upper house of Indian parliament, by opponents of the Women's Reservation Bill led to two adjournments during the Question Hour today.

National Economic Trends

The Reserve Bank of India (RBI) and finance ministry officials will meet in end-March to decide on the government's borrowing plan for the fiscal year 2010/11, a senior official said on Tuesday.

The central disinvestment department said it is gearing up to raise Rs 40,000 crore from the divestment process during 2010-11 and expressed the hope that the target set by the Finance Minister will be met. Presenting budget 2011, finance minister Pranab Mukherjee upped the revenue target from sale of government equity in CPSUs to Rs 40,000 crore in 2010-11 from the targeted Rs 25,000 crore for the current fiscal.

Cane Commissioner Sudhir M Bobade today said after falling short of the target last crushing season, Uttar Pradesh is likely to produce more than 45 lakh million tonne (MT) sugar by the end of the current season. As compared to 40.64 lakh MT sugar produced in the last season, the state has this year produced 41.84 lakh MT sugar by March 7 and this is expected to reach 45.28 lakh MT by the end of the crushing season".

Business, Energy or Environmental regulations or discussions

Union government is betting that a deep discount for this week's $2.6 billion share sale in NMDC, India's largest iron ore miner, revives interest in a divestment programme that has thus far generated uneven interest. The government has pencilled in revenue of $8.6 billion from sales of stakes in state companies in the recent budget for the fiscal year that starts on April 1.

Union Environment and Forests Minister Jairam Ramesh told parliament on Tuesday that India has agreed to be listed in the introductory remarks of the Copenhagen Accord. Ramesh said: "Listing in chapeau of the accord implies that we participated in the negotiations on Copenhagen Accord and that we stand by the accord."

IBM today said it has partnered with the National Institute of Design and the University of Tokyo to research on making mobile devices more accessible for elderly people in the developing countries.

BSNL sources said the company is working on a new GSM tender for 40-50-million cellular lines. Last week, the BSNL board had decided to cancel its $10-billion tender for 93-million GSM lines, the largest ever telecom equipment contract globally.

Media reports today said with buoyancy back in the market and cement prices looking up India Cements ( ICL) is in a fund raising mode. Sticking to its capex

of over Rs 1100 crore, the company said it will require funds for expansion and to set up captive power plants.

L&T Power Development Company plans to install power plants of 5,000 megawatt capacities by 2015 to cater to the growing demand for electricity. The company expects its first power plant in Punjab to be commissioned by January 2014.

The European Investment Bank said on Tuesday it had agreed a 340 million pound ($510 million) loan to the Jaguar and Land Rover brands of Tata Motors.

Activity in the Oil and Gas sector (including regulatory)

Union Environment Ministry’s Expert Appraisal Committee (EAC) recommended ONGC’s proposal to set up a Special Economic Zone for petro-chemical units in Gujarat. Once developed to its full capacity, it is expected to attract an investment of Rs. 50,000 crore to Rs. 60,000 crore. The total cost of the project is estimated at Rs. 295 crore.

Militant Activity/Terrorism (Particularly in Bangalore, Mumbai, Noida, Chennai, Coimbatore)

Home Ministry has issued an alert for metros, particularly Mumbai, Kolkata and Bangalore on Monday, saying terrorists could target the three major cities. The alert was based on the interrogation of suspected Indian Mujahideen terrorist Salman Ahmed.

Union Home Secretary G K Pillai on Tuesday asked non government organisations (NGO) that whether they are afraid of condemning the ongoing Maoists violence in various parts of the country. Pillai said "I haven't seen any NGO coming out and condemning the kidnapping of the school teacher".

Opening its final arguments in the case, Special Public Prosecutor Ujjwal Nikam today said Ajmal Kasab, the lone surviving terrorist, and his nine slain accomplices had undergone military and intelligence training at the hands of terror outfit Lashkar-e-Taiba (LeT) which was supervised by certain officers of the Pakistan Army.

Labor/Social Unrest

Police said desperate over the delay in formation of a Telangana state, another student of the Osmania University committed suicide Tuesday. A suicide note

purported to have been written by him said he was taking the extreme step as he was upset over the delay.

Fourteen children were rescued from a bindi-making sweatshop in the capital Tuesday.According to a member of the Bachpan Bachao Andolan (BBA), a child rights NGO that helped the labour department carry out the rescue operation, the boys were trafficked from Bihar to Delhi to work here as bonded labourers.

Full Text

Basic Political DevelopmentsRajya Sabha passes Women's Reservation Bill

9 Mar 2010, 1845 hrs IST, AGENCIEShttp://economictimes.indiatimes.com/news/politics/nation/Rajya-Sabha-passes-Womens-Reservation-Bill/articleshow/5664003.cms NEW DELHI: The controversial yet historic Women's Reservation Bill, ensuring 33% reservation to women in Parliament and state legislative bodies, was passed in the Rajya Sabha on Tuesday.

After frenzied opposition and repeated disruptions, the Rajya Sabha on Tuesday evening finally debated the historic women's reservation bill in the run up to a vote on the legislation.

Amongst those who spoke were Bharatiya Janata Party's (BJP) Arun Jaitley, Communist Party of India-Marxist's (CPI-M) Brinda Karat, Bahujan Samaj Party's (BSP) Satish Mishra and Jayanthi Natarajan of Congress.

Opening the debate was Jaitley, who said his party "unequivocally" supported the women's bill but added that the privilege of supporting it had been diluted by "some of the most shameful incidents in India's parliamentary history".

The leader of the opposition in the Rajya Sabha, who spoke after the constitution amendment bill was put to vote by Chairman Hamid Ansari, said he had a feeling of being a party to history in the making when he came to the house.

Karat, a vocal supporter of the bill, said women's reservation in parliament and state legislatures would change the "culture of the country because women today are still caught in a culture prison. In the name of tradition, stereotypes are imposed and we have to fight these every day".

These stereotypes will also be broken by the bill, said Karat, who believes the entry of a larger number of women in legislatures would make for "more sensitive politics".

"The women's reservation bill will ensure that women of Scheduled Caste, Scheduled Tribe, Other Backward Classes, poor women and Muslim women would benefit from it," Karat said, addressing concerns that the bill would benefit only some sections.

Congress leader and spokesperson Jayanti Natarajan also refuted critics demanding a special quota for Dalit women, saying Dalits and tribals would continue to get reservation under the bill.

A triumphant Natarajan said no other party "had the courage to deliver the promise (of reservation for women) to the people of India". She said Congress president Sonia Gandhi and Prime Minister Manmohan Singh had not lagged behind in supporting measures for women's empowerment.

However, Bahujan Samaj Party's Satish Mishra said his party would not be able to support the proposed legislation in the current form. He wanted the prime minister to reserve 50 percent of all seats in legislatures for women in line with their population ratio.

Shivanand Tiwari of the Janata Dal-United (JD-U) created a minor stir in the house by speaking in favour of the bill, which has been opposed vocally by a section of his colleagues led by party president Sharad Yadav.

The AIADMK's V. Maitreyan pointed out that the bill was a great tribute to the Indian housewife who he said had proved to be better financial managers of the household "than all the finance ministers of India".

Earlier, cracking the whip on disruptive MPs, Chairman of the Rajya Sabha, Hamid Ansari, suspended the seven MPs for the remaining part of the Budget session for their unruly behaviour in the House over the Bill.

The suspended members are Subhash Yadav (RJD), Sabir Ali (LJP), Veerpal Singh Yadav, Nand Kishore Yadav, Amir Alam Khan and Kamal Akhtar (all SP), and Ejaz Ali (unattached), who had yesterday tried to attack the Chairman and created unprecedented pandemonium in the Upper House.

They had indulged in unruly scenes as soon as Law Minister Veerappa Moily moved the Constitution (108th Amendment) Bill that provides for 33 per cent reservation for women in the Lok Sabha and State Assemblies.

JD(U) faces danger of split within ranks on Women’s Billhttp://beta.thehindu.com/news/national/article223198.eceEven as discussion on the Women’s Reservation Bill began in Rajya Sabha on Tuesday, JD(U) faces the danger of witnessing a split in its ranks as its MPs are divided over the issue.

The party has traditionally opposed the bill, with its chief Sharad Yadav having always said that he is in favour of a quota within quota for Dalit, backward and Muslim women.

The situation within the party, however, changed dramatically last week following Bihar Chief Minister Nitish Kumar’s statement in favour of the bill.

With several party MPs owing allegiance to both Sharad and Nitish sending out mixed signals, the party stares at the possibility of a vertical split within its ranks.

The divide within JD(U) seemed apparent when party’s chief whip in Lok Sabha Mangani Lal Mandal (considered a Sharad loyalist) issued a statement signed by 17 of its total 20 LS MPs, which said that Yadav has been urged to speak to Kumar and then get a whip issued on the bill.

However, Yadav on Tuesday said that he is yet to speak with Kumar on the issue.

“I am yet to speak to Nitish Kumar. I could not do so as the last 48 hours have been very hectic. I just spoke to him a couple of days back and will speak to him again,” he said.

Yadav also said the party’s parliamentary party meeting scheduled for Tuesday has been deferred indefinitely “due to lack of time”. He, however, nodded in affirmative when asked whether he continues to oppose the bill.

Trinamool not to vote on Women’s Billhttp://beta.thehindu.com/news/national/article223240.eceAccusing the government of trying to bulldoze the Women’s Reservation Bill in the Rajya Sabha, UPA ally Trinamool Congress on Tuesday said its members will not participate in the voting as it was not intimated about it.

Union Minister of State for Health Dinesh Trivedi and Trinamool’s chief whip in the Lok Sabha Sudip Bandopadhyay told reporters outside Parliament that the two members from their party were not present in the Rajya Sabha as they had no idea that the Bill would come up for voting on Tuesday.

“The way the Women’s Reservation Bill was brought up for voting in the Rajya Sabha on Tuesday, we are shocked to see the procedure adopted on the floor of the House,” Bandopadhyay said here.

“We don’t want to see that the parliamentary democracy is being more or less bulldozed. We are opposed to the manner in which the Bill was taken up for voting. Any forcible attempt to get the Bill pass cannot be supported. Today, we are not going to take part (in the voting) in the Rajya Sabha,” he said referring to the use of marshals to evict members opposed to the Bill in its present form.

Making it clear that Trinamool Congress, the second largest party in UPA, was not opposed to the bill, Trivedi said the party had conveyed to the government that it was

“opposed to any kind of force” because in democracy “consensus and discussion” were important.

“Our party members in the Rajya Sabha were not intimated about the voting. No discussion took place with Trinamool Congress about voting,” he added.

Trivedi said Trinamool wanted the government to consider the issues concerning the Dalits, OBCs and Muslims that were raised by members in the Rajya Sabha, noting that his party chief Mamata Banerjee too had written to the government on these concerns.

“Our party chief wanted the views of the Dalits, OBCs and Muslims to be taken on board. But unfortunately that did not happen. Trinamool Congress is for debate and discussion,” he said.

However, he said his party condemned the behaviour of members from the SP, RJD, SJP and others (who were suspended today due to unruly behaviour in the Rajya Sabha yesterday (Monday) and that it was not in favour of any “indiscipline” in the House.

The two Trinamool Congress leaders also slammed the Congress for “heeding to the machinations of the Left and the BJP” on the Women’s Reservation Bill and said they would “not support” such a development.

“The BJP and Left parties are hobnobbing now. A section of the government is dancing to their tunes. The government should talk to its allies and not keep them in the dark. There should be no communication gap,” they added.

'CPI-M agitation against Centre causing hardships'http://www.ptinews.com/news/555003_-CPI-M-agitation-against-Centre-causing-hardships-Thiruvananthapuram, Mar 9 (PTI) Opposition leader in the Kerala Assembly, Oommen Chandy today alleged in the House that the five-day sit-in launched by CPI-M yesterday in front of Central Government offices against the UPA Government's policies was causing hardship to common people.

"Agitation against price rise of essential commodities has actually become a stir against people of the state.

Protestors were not allowing anybody to go inside Post Offices. In many places, roads have been blocked causing problems to people," he said taking up the issue as a submission.

Police personnel posted near the venue of agitations were helping the protesters instead of common people who came to Central Government offices for various purposes, he said.

Replying to the submission, State Home Minister Kodiyeri Balakrishnan said instructions have been given to police to see that office work was not disrupted by protesters.

Seven suspended RS members refuse to leave Househttp://www.ptinews.com/news/555090_Seven-suspended-RS-members-refuse-to-leave-HouseNew Delhi, Mar 9 (PTI) Defying the action by Rajya Sabha, its seven members who were today suspended for their unruly behaviour yesterday over the Women's Bill refused to leave the House and remained squatted in the well for over two hours.

The members who were suspended for the entire Budget session at 12 noon, virtually staged a dharna in the well even after the House was adjourned. They continued to stay put even when the House reassembled at 2 PM forcing another adjournment till 3 PM.

Though Rajniti Prasad (RJD) was not named by Chairman Hamid Ansari, he too joined the suspended members and sat along with them, leaving the security staff in a dilemma on how to handle the situation.

The frequent adjournments left members of the BJP, which is supporting the Women's Bill, irritated.

'Cong resorting to dictatorship on women's bill'http://www.ptinews.com/news/555273_-Cong-resorting-to-dictatorship-on-women-s-bill-New Delhi, Mar 9 (PTI) SP chief Mulayam Singh Yadav today accused the Government of resorting to "dictatorship" over the issue of Women's Reservation Bill and said the move will prove "catastrophic" for it.

Yadav said the meeting of Prime Minister Manmohan Singh with the opponents of the bill failed to yield any result.

"No result came out" was his response when asked what has been the outcome of the meeting of Singh with him, RJD chief Lalu Prasad and JD-U chief Sharad Yadav, the key opponents of the women's bill in its present form.

Asked what has been the result of his talks with Congress President Sonia Gandhi on the floor of the House, Yadav said, "Who is ready to listen. Nobody is willing to listen."

He said if the government agrees to give reservation to Muslim women separately in the bill, his party will support it.

Lok Sabha adjourns thrice on Women's Bill issuehttp://www.ptinews.com/news/554834_Lok-Sabha-adjourns-thrice-on-Women-s-Bill-issue

New Delhi, Mar 9 (PTI) Noisy scenes and vociferous protests in the Lok Sabha by opponents of the Women's Reservation Bill led to two adjournments during the Question Hour today.

No sooner the House assembled for Question Hour than SP, RJD and JD(U) members trooped into the Well protesting against the government's move to take up the bill for consideration in the Rajya Sabha.

Speaker Meira Kumar continued with the Question Hour amid sloganeering by members of these parties who were demanding that provisions of the bill should also have quotas for Dalits, OBCs and Muslims.

As protests grew louder following SP chief Mulayam Singh, RJD supremo Lalu Prasad and JD(U) President Sharad Yadav's presence in the Well, two Marshals took positions on either side of the Speaker's table to prevent any unruly incident.

Mulayam Singh Yadav was seen having a word with Congress President Sonia Gandhi.

National Economic Trends

Finmin, RBI to meet end March on FY11 borrowing

9 Mar 2010, 1555 hrs IST, REUTERShttp://economictimes.indiatimes.com/news/economy/finance/Finmin-RBI-to-meet-end-March-on-FY11-borrowing/articleshow/5663223.cms NEW DELHI: The Reserve Bank of India (RBI) and finance ministry officials will meet in end-March to decide on the government's borrowing plan for the fiscal year 2010/11, a senior official said on Tuesday. "The borrowing meeting with the RBI is scheduled for end-March, Finance Secretary Ashok Chawla told reporters. India is set to borrow 4.57 trillion rupees ($100 billion) in the fiscal year starting April 1, higher than the current year's 4.51 trillion rupees.

Disinvestment department hopeful of meeting Rs 40,000-cr targethttp://beta.thehindu.com/business/Economy/article223181.eceThe disinvestment department said it is gearing up to raise Rs 40,000 crore from the divestment process during 2010-11 and expressed the hope that the target set by the Finance Minister will be met.

“Those Rs 40,000 crore are estimates and we will certainly meet them,” disinvestment secretary Sumit Bose told reporters when asked whether the government will be able to mop up the amount as proposed by the finance minister in budget 2011.

Presenting budget 2011, finance minister Pranab Mukherjee upped the revenue target from sale of government equity in CPSUs to Rs 40,000 crore in 2010-11 from the targeted Rs 25,000 crore for the current fiscal.

Bose said the department is reviewing the situation and divestment proposals will be taken on a case-by-case basis.

“Can we have a roadmap for the entire year? No. And why should the government comment about something 12 months ahead?,” he said when asked about the disinvestment roadmap for the next fiscal.

This fiscal, disinvestment has been made in Oil India, NHPC in the middle of last year, and NTPC and Rural Electrification Corporation in February, while NMDC follow-on issue is opening tomorrow.

Satluj Jal Vidyut Nigam, earlier scheduled for the current fiscal, will now hit the street in the next fiscal.

Besides, the Cabinet has given its nod for further stake sale in Engineers India.

As per the Cabinet decision, all listed profitable PSUs should have a public holding of at least 10 per cent and all profitable unlisted CPSUs should be listed over the next few years. And according to this criteria, as many as 60 state-run companies are eligible for disinvestment.

Earlier, revenue secretary Sunil Mitra, who was the past disinvestment secretary, had said the department expected some of the big CPSUs like Coal India, BSNL and SAIL to be divested in the next fiscal.

UP likely to produce over 45 lakh MT sugar this seasonhttp://www.ptinews.com/news/554853_UP-likely-to-produce-over-45-lakh-MT-sugar-this-seasonLucknow, Mar 9 (PTI) After falling short of the target last crushing season, Uttar Pradesh is likely to produce more than 45 lakh million tonne (MT) sugar by the end of the current season.

"As compared to 40.64 lakh MT sugar produced in the last season, the state has this year produced 41.84 lakh MT sugar by March 7 and this is expected to reach 45.28 lakh MT by the end of the crushing season," Cane Commissioner Sudhir M Bobade said.

He said that as compared to the last year sugar production is estimated to increase by 12 per cent in UP.

At the start of the crushing season, UP projected only 39.6 lakh MT sugar output, less than around 41 lakh MT produced in the last crushing season.

Business, Energy or Environmental regulations or discussions

Govt gives discount of 13-25% on NMDC FPOhttp://economictimes.indiatimes.com/markets/ipos/Govt-gives-discount-of-13-25-on-NMDC-FPO/articleshow/5663488.cms9 Mar 2010, 1631 hrs IST, MUMBAI: The government is betting that a deep discount for this week's $2.6 billion share sale in NMDC, India's largest iron ore miner, revives interest in a divestment programme that has thus far generated uneven interest.

The government has pencilled in revenue of $8.6 billion from sales of stakes in state companies in the recent budget for the fiscal year that starts on April 1, part of plans to offload holdings in 60 state firms in coming years to raise funds for welfare programmes and narrow a fiscal shortfall.

"For any follow on offer, interest is based in relation to the market price. There is a steep discount now and the issue should get a good response from both retail and institutions," said Ambareesh Baliga, vice president at Karvy Stock Broking.

A government panel late on Monday set a price band of Rs 300 to Rs 350 for the follow-on public offer in NMDC, a discount of 13-25 percent to Monday's closing price, sources told Reuters.

Retail investors and staff will get a further 5 percent discount on the final price. Previous share sales in state firms this year had discounts of between 5 and 8 percent.

While NMDC has been listed for decades, its float is tiny, with just 1.6 percent in the public domain. Coverage by analysts is limited, even though its market cap of $35 billion puts it among the top three listed Indian companies by market value.

India hopes investors treat the sale of 332.24 million shares, or 8.4 percent of NMDC's equity, essentially as an IPO.

NMDC shares slid 6.8 percent to 373.50 rupees on Tuesday, their lowest level in four months.

Much is riding on the NMDC offering, which at the top of its price range would be the third-largest ever share sale by an Indian company.

"The success of the government's plan will depend on this issue. If this fails, the government will have a hard time selling its pipeline," said Deven Choksey, chief executive at K R Choksey Shares, which manages about $125 million for Indian clients, and holds a small portion of this in NMDC shares.

Other deals in the pipeline include a planned IPO by hydropower firm SJVN Ltd to raise $225 million, and a follow-on offering by Steel Authority of India Ltd to raise roughly $2 billion.

India agrees to be listed in Copenhagen accordhttp://www.newkerala.com/news/fullnews-66997.htmlNew Delhi, March 9 : India has agreed to be listed in the introductory remarks of the Copenhagen Accord, Environment and Forests Minister Jairam Ramesh told parliament Tuesday.

Stating that India has agreed to such a listing after careful consideration, Ramesh said: "Listing in chapeau of the accord implies that we participated in the negotiations on Copenhagen Accord and that we stand by the accord."

Ramesh said that India last month received a letter from United Nations Framework Convention on Climate Change (UNFCCC) asking if the country wishes to be listed in chapeau of the accord.

He said India has communicated its decision to the UNFCCC Secretariat with three conditions.

"First, the accord is a political document and is not legally binding. It is not a template for outcomes. Second, the Copenhagen Accord is not a separate, third track of negotiations outside the UNFCCC. Third, the purpose of the Copenhagen Accord is to bring about a consensus in the existing and on-going, two-track multilateral negotiations process under the UNFCCC," he told the Lok Sabha.

Citing that listing in chapeau of the accord will strengthen the country's negotiating position on climate change, Ramesh said: "We believe that our decision to be listed reflects the role India played in giving shape to the Copenhagen Accord."

"The accord could have value if the areas of convergence reflected in the accord are used to help the parties reach agreed outcomes under the UN multilateral negotiations in the two tracks," he said.

In the BASIC (Brazil, South Africa, India and China) group, Brazil and South Africa have already communicated their association. Simultaneously, the two countries have elaborated the circumstances under which they have associated themselves with the accord.

"China has expressed support to the accord in their communication addressed to UN secretary general. Many other countries from G77 have also associated themselves with the accord," he added.

IBM, NID to collaborate on mobile technology

http://www.ptinews.com/news/555103_IBM--NID-to-collaborate-on-mobile-technologyNew Delhi, Mar 9 (PTI) Technology giant IBM today said it has partnered with the National Institute of Design and the University of Tokyo to research on making mobile devices more accessible for elderly people in the developing countries.

The collaboration, among IBM, NID and Research Center for Advanced Science and Technology (University of Tokyo) is aimed at exploring user interface platform for mobile devices, IBM said in a statement.

This is to make mobile devices easier to use for the elderly and illiterate or semi-illiterate population, it added.

"This collaborative research programme will result in critical insights to the accessibility requirements of the elderly people with little or no education in developing nations," IBM India/South Asia Director (IBM Research ? India) and Chief Technologist Manish Gupta said.

BSNL plans fresh tender for 50-m cellular lineshttp://economictimes.indiatimes.com/news/news-by-industry/telecom/BSNL-plans-fresh-tender-for-50-m-cellular-lines/articleshow/5661079.cms9 Mar 2010, 0311 hrs IST, NEW DELHI: State-owned BSNL is working on a new GSM tender for 40-50-million cellular lines, the company executives with direct knowledge of the developments told ET . Last week, following a string of controversies, the BSNL board had decided to cancel its $10-billion tender for 93-million GSM lines, the largest ever telecom equipment contract globally.

This 93-million lines tender was issued in 2008, but a combination of factors ranging from controversies, court cases, the government intervention and probe by vigilance authorities, all ensured that BSNL had to cancel the tender thereby seriously impacting its expansion plans. The BSNL board is slated to meet this week, maybe as early as March 10, to discuss the proposal to float a new tender, added the company executives.

This time around, BSNL aims to complete the new procurement process within a 60-day period from the date of issuing the tender, and plans to do away with several controversial clauses that plagued its earlier tenders. For instance, BSNL is likely to do away the standard clause in all PSU tenders, which state that the contract must be divided between the two lowest bidders — L1 and L2 — and may award the entire deal to a single firm, the company executives added. Additionally, BSNL may also include a clause, where it can place additional orders of up to 100% of the tender size with successful bidders.

A contract for 40-50 million lines will serve the telco for the next 24 months. On Monday, junior minister for communications and IT Gurudas Kamat told the Lok Sabha that BSNL planned to provide 20 million GSM lines in 2010-11. With BSNL looking at similar growth rates for the next few years, the provision for placing additional orders

with the winner will enable the telco to address its capacity requirements for the next four years.

But, a member of the BSNL’s board told ET that a ‘new tender was not necessary since BSNL could give additional contracts to existing vendors, who had won the Phase-V of the company’s 2006 tender’.

“There is no capacity constraints in the south and west regions. For the north and east zones, the telco can look at continuing with the Phase-V of its 2006 tender. Here, BSNL has placed orders for only 13 million lines, while the tender was for 23-million GSM lines. This contract also had a clause that BSNL could place additional orders of 50% of this tender.

This adds an additional 12-million lines. So in total, BSNL can place orders of 22-million GSM lines under the earlier tender,” added the BSNL board member. This tender stipulated that BSNL split the contract the two lowest bidders — Ericsson and Nokia Siemens Networks (NSN) — in the 60:40 ratio. It also added that L2 match the price of lowest bidder.

But, Nokia Siemens Networks walked away from the deal, as it did not want to match the price at which BSNL had awarded the contract to Ericsson. As per the tender conditions, NSN was to have supplied 9.63-million lines for $954 million.

Another top BSNL executive, however, said that the telco did not want to place additional orders under the Phase V of the 2006 tender, especially with ‘a network vendor that failed to supply equipment and walked away from the deal’.

India Cements in fund raising mode to fund expansion, power plantshttp://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/cement/India-Cements-in-fund-raising-mode-to-fund-expansion-power-plants/articleshow/5660051.cms9 Mar 2010, 0119 hrs IST, ET BureauCHENNAI: With buoyancy back in the market and cement prices looking up, South India’s largest cement player, India Cements ( ICL) is in a fund raising mode. Sticking to its capex of over Rs 1100 crore, the company said it will require funds for expansion and to set up captive power plants.

To start with, Indo-Zinc (IZL), which was recently acquired by ICL has tied up a Rs 300 crore credit from Yes bank at an interest rate of 10%, for which ICL has provided corporate guarantee.

This will be used to part fund IZL’s 1.5 Million tonne greenfield plant being set up at Banswara in Rajasthan, at an investment of Rs 600 crore. The balance Rs 300 crore will come from ICL by way of equity and sub-ordinated debt. This project also includes a 20 mw captive power plant.

ICL had acquired IZL to hasten the process of setting up its first plant in the North. IZL also has mining lease for limestone deposits in Rajasthan. Once the plant goes on stream in the midde of 2010, it will serve the markets of Rajasthan, Madhya Pradesh and Gujarat.

Company offcials also said ICL is looking at raising Rs 300 crore to part finance the Rs 500 crore capex required for setting up two captive power plants of 50 mw each.

It has awarded EPC to Thyssen Krupp for the plant in Tamil Nadu while it is in the process of selecting a contractor for the other project in AP. Once they are implemented, it will increase its captive power capacity to 200 mw.

They said the company will also require additional resources to retire the Rs 380 crore FCCB which is due for redemption in 2011. Depending on cash flow and stock market conditions, it has the option of raising fresh equity.

Last year, ICL got the approval of shareholders for raising upto $ 100 million including premium through the issue of equity\equity linked instruments like GDS, GDR, ADR or FCCB. It was to part fund capex plus retire debts.

It has over Rs 2000 crore debt carrying an average interest of 11%.

Asked about the acquistion of coal concession ( mining leasing) in Indonesia, they said it is expected to be concluded soon. It will cost $ 20 Million and can be met from internal generation following the improved cash flow this year.

Meanwhile, ICL Vice Chairman and MD, N Srinivasan told ET, " Market is buoyant. We have seen good growth in demand. In January this year, all India demand grew by 16% and the growth upto January 2010 is 13.5%.The latest Union Budget will spur demand with investment in infrastructure".

He said the company sold 9.8 Million tonnes during April-February 2009-10, up by 20% over 8.2 Million tonnes in the same period last year. "We hope to sell over one Million tonne in March and close the year with 11 million tonnes against 9.11 million tonnes in 2008-09," he said.

Stating the Budget led to a cost increase of Rs three to five per bag, he said it has been passed to consumers. " Actually, there is a correction in price taking place in the south after the steep fall in November-December 2009. In Chennai, price per bag ( 50 kg) has increased by Rs 25 to Rs 250 to Rs 255. In AP and Karnataka, there is an increase of Rs 10 per bag".

He added, " But, we won’t yet be at the margins that we had last year when the prices in Chennai were Rs 270 to Rs 280 per bag. One can be optimistic about the sustainaibility of the price going forward. Need to see it quarter by quarter but this will sustain for the first two quarters".

L&T Power to step up capacity, in race to acquire coal blockshttp://economictimes.indiatimes.com/news/news-by-industry/energy/power/LT-Power-to-step-up-capacity-in-race-to-acquire-coal-blocks/articleshow/5659374.cms9 Mar 2010, 0329 hrs IST, ET BureauMUMBAI: L&T Power Development Company, a unit of India’s largest engineering and construction firm L&T, plans to install power plants of 5,000 megawatt capacities by 2015 to cater to the growing demand for electricity. The company expects its first power plant in Punjab to be commissioned by January 2014, senior executive vice-president AK Chaatwani told reporters on Monday.

Referring to L&T’s ambitious plans in power generation, Mr Chaatwani said that the company requires Rs 30,000 crore as total investment in power generation. The company will also start working on two other power generation projects, including one in Chhattisgarh, with the aim to reach a total generating capacity of 10,000 mw by 2019, he added.

L&T is also in race to acquire coal blocks to integrate its power business and to also lower the cost of generating power.

“We are planning to acquire coal mining blocks in Australia and Indonesia as we want to build coal linkages for our power plants,” said Mr Chaatwani. Currently, it requires around 7 MT of coal to generate 1,000 MW of power. Mr Chaatwani also said that his company will participate in auctions and long-term contracts with domestic and overseas firms as well for the coal requirements of the company.

L&T Power is planning to generate 5,000 mw of power and has tied up funds for another 5,000 mw of projects by 2015 in Rajpura, Chattisgarh and Orissa. “Along with the Rajpura project, we have plans to set up one plant in Chattisgarh and another one in Orissa,” Mr Chhatwani said. Apart from these three projects, L&T Power Development Company also has plans to set up plants in Gujarat, Maharashtra and one in the South. The Rajpura project will be funded with a debt-equity ratio of 80: 20.

The total requirement for the company to generate 5,000 mw of power would be around Rs 30,000 crore. L&T plans to set up a special purpose vehicle to undertake all its future projects, said senior executive VP R Shankar Raman.

Tata's Jaguar Land Rover gets 340 ml pound EU loan

9 Mar 2010, 1737 hrs IST, REUTERShttp://economictimes.indiatimes.com/articleshow/5663689.cms BRUSSELS: The European Investment Bank said on Tuesday it had agreed a 340 million pound ($510 million) loan to the Jaguar and Land Rover brands of Tata Motors.

The bank, the European Union's financing arm, said the loan would be used partly for work on hybrid vehicles, as well as research into reducing vehicle weight to improve energy efficiency.

Activity in the Oil and Gas sector (including regulatory)

ONGC’s proposed SEZ in Gujarat gets green signalhttp://beta.thehindu.com/business/article223255.eceONGC’s proposal to set up a Special Economic Zone for petro-chemical units in Gujarat has got the green signal from an Environment Ministry panel.

In a recent meeting, Environment Ministry’s Expert Appraisal Committee (EAC) recommended the ONGC’s proposed Dahej SEZ in Bharuch in Gujarat for environment clearance.

To be developed by Dahez SEZ Ltd (a special purpose vehicle of Gujarat Industrial Development Corporation and ONGC), the proposed complex will be spread over an estimated area of 1,500 hectares and host various petrochemical units.

Once developed to its full capacity, it is expected to attract an investment of Rs. 50,000 crore to Rs. 60,000 crore.

The total cost of the project is estimated at Rs. 295 crore.

However, another Special Economic Zone (PhaEZ Park) proposed in Ahmedabad in Gujarat by private pharmaceutical firm CPL Infrastructure Pvt Ltd failed to get approval.

“The committee has sought additional information from the project proponent such as details of quality of waste water before giving it approval,” a committee member said.

The project proponent has also been asked to submit a disaster management plan and emergency evacuation plan for natural and man-made disasters off site and on site.

Militant Activity/Terrorism (Particularly in Bangalore, Mumbai, Noida, Chennai, Coimbatore)

Home ministry issues alert http://in.news.yahoo.com/32/20100309/1053/tnl-home-ministry-issues-alert.htmlTue, Mar 9 04:30 PMNew Delhi, March 9 -- The Home Ministry has issued an alert for metros, particularly Mumbai, Kolkata and Bangalore on Monday, saying terrorists could target the three major cities. The alert was based on the interrogation of suspected Indian Mujahideen terrorist Salman Ahmed.

An MHA official said governments of Maharashtra, West Bengal and Karnataka have been asked to take all possible steps to foil any terror bid to strike their cities. Other metros such as Delhi have also been sounded out.

Ahmed, alleged to have been involved in serial blasts in Ahmedabad, Varanasi and Gorakhpur, is believed to have told interrogators that the Indian Mujahideen had set up bases in Karachi, Kathmandu, Dubai and a few places in Middle East under the so-called "Karachi Project".

Pillai asks NGOs, if they are afraid to condemn Maoists violencehttp://in.news.yahoo.com/139/20100309/808/tnl-pillai-asks-ngos-if-they-are-afraid.htmlTue, Mar 9 05:45 PMNew Delhi, Mar 9 (ANI): Union Home Secretary G K Pillai on Tuesday asked non government organisations (NGO) that whether they are afraid of condemning the ongoing Maoists violence in various parts of the country.

Participating in a panel discussion on "Policing Thoughts or Fighting Terror" organised by Foundation for Media Professionals, Pillai said no single NGO has come forward till date to condemn the kidnapping of a school teacher in West Bengal.

"I haven't seen any NGO coming out and condemning the kidnapping of the school teacher," Pillai said.

"Whether kidnapping by Maoists is allowed? Is that permitted? Or are you scared to condemn the violence as the Maoists might not allow you to travel in Chattisgarh and other areas," he asked.

He further said if government does any thing wrong on its part, it is ready to accept it and also to correct those mistakes.

"If we (government) have committed any mistakes we are ready to face criticism from civil society, we are ready to take corrective measures, we are even ready to owe responsibility," Pillai said.

"But to whom the Maoists are accountable?" he asked.

He also questioned when the Maoists killed over 150 people in a single district in a year, why can't it be called a genocide.

" The Maoists killed 159 people in West Bengal's West Midnapore District last year alone, over 800 people were killed in different parts of the country by the Maoists, why it can't be called a genocide," Pilliai said.

He said if the Maoists are murdering people then they are murders, and there should be no is hesitation to call them as murderers.

Pillai said that the government in any way is not policing thoughts, it is Maoists who are policing thoughts.

"During an investigation a Maoist revealed that he only know about, Mao, Lenin and Stalin and not any thing about Gandhi, Nehru and other freedom fighters," he said. By Shreeraj Gudi ANI)

Pak Army involved in 26/11 terror attacks: Nikamhttp://www.ptinews.com/news/555438_Pak-Army-involved-in-26-11-terror-attacks--NikamMumbai, Mar 9 (PTI) Pakistan Army was involved in the 26/11 Mumbai terror attacks and a serving Major General had supervised their training across the border at LeT camps, the prosecution told a Special Court here.

Opening its final arguments in the case, Special Public Prosecutor Ujjwal Nikam said Ajmal Kasab, the lone surviving terrorist, and his nine slain accomplices had undergone military and intelligence training at the hands of terror outfit Lashkar-e-Taiba (LeT) which was supervised by certain officers of the Pakistan Army.

"The conspiracy of the 26/11 attack was hatched on Pakistan soil and inevitable inference can be drawn that the attack was State-sponsored," he said.

"Kasab in his confession has said one Major General was present during their training and had supervised them. The name of the Major General was deliberately not revealed to the attackers as he occupies a senior position in the army," Nikam said.

Labor/Social Unrest

Osmania student commits suicide for Telangana http://in.news.yahoo.com/43/20100309/818/tnl-osmania-student-commits-suicide-for.htmlTue, Mar 9 03:12 PMHyderabad, March 9 (IANS) Desperate over the delay in formation of a Telangana state, another student of the Osmania University committed suicide Tuesday.

Sai Kumar, a second year B. Tech student, ended his life by hanging in his hostel room in the campus. A suicide note purported to have been written by him said he was taking the extreme step as he was upset over the delay.

Police said some hostel inmates saw Sai Kumar hanging from the ceiling fan. Kumar, who hailed from Nalgonda district, was taken to a hospital where he was declared dead.

The incident triggered fresh tension in the university, the nerve centre of the Telangana agitation. Students gathered in large numbers and raised slogans of 'Jai Telangana'.

In view of the tense situation, the university authorities have postponed the exams scheduled for Tuesday and Wednesday.

This is the latest in a series of suicides by Telangana students in support of the demand for separate statehood to the backward region, which comprises Hyderabad and nine other districts.

A student of Class 12 had immolated himself Feb 20 at the main entrance of Osmania University to protest the delay in formation of Telangana state. He resorted to the extreme step in full public view during a protest by university students.

A MCA student self-immolated on Osmania University campus and his body was found on the campus Jan 19.

Parties fighting for separate Telangana state claim that more than 300 students and youth have committed suicide in the region since protests began in November. There is no independent confirmation of this number.

14 child labourers rescued from Delhi http://in.news.yahoo.com/43/20100309/812/tnl-14-child-labourers-rescued-from-delh.htmlTue, Mar 9 06:09 PMNew Delhi, March 9 (IANS) Fourteen children were rescued from a bindi-making sweatshop in the capital Tuesday.

According to a member of the Bachpan Bachao Andolan (BBA), a child rights NGO that helped the labour department carry out the rescue operation, the boys were trafficked from Bihar to Delhi to work here as bonded labourers.

Akbar, one of the freed children, said: 'I came to Delhi seven months back along with six other children. The man who brought me here on the pretext of sending me to school, then put me in a bindi-making unit. All we got in return was a meal twice a day.'

'We used to sleep in the factory itself. Once when I asked for money, I was told that I am in the learning phase and that I should be the one who should pay my employer for providing the training,' he said.

The bindi-making unit was in northeast Delhi in Seelampur.

All the rescued children will be given release certificates under the Bonded Labour Act, which will entitle them for a compensation of Rs.20,000.