Normal life hit across India as millions join industrial strike

September 2, 2015

New Delhi, Sep 2: Normal life was hit in many states on Wednesday as millions of industrial and blue collar employees struck work in the first nationwide protest since Prime Minister Narendra Modi took power more than a year ago.

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Leaders of central trade unions which called the day-long strike claimed "unprecedented success" as banks, insurance companies and state-run as well as private factories shut across the country. Transport unions and traders too joined the protest in many places, leading to the closure of educational institutions and thin attendance in government offices.

"The response has been unprecedented," veteran union leader Gurudas Dasgupta from the All India Trade Union Congress said. "In Delhi we are seeing such an impact for the first time. We didn't expect this."

The strike is in support of 12 demands, including withdrawal of labour law amendments, a minimum wage of Rs.15,000 a month and against privatisation of public sector units. Unions said about 300 million workers were involved in the protest.

The strike was largely peaceful except in parts of West Bengal where clashes were reported in Murshidabad, Howrah and North 24 Parganas between Left activists and members of the ruling Trinamool Congress.

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Financial services were hit hard as lakhs of bank and insurance employees - including those from cooperative banks and regional rural banks - joined the strike, All India Bank Employees Association general secretary C.H. Venkatachalam told IANS in Chennai.

He said the strike was a success in major cities like Mumbai, the country's financial capital, as well as New Delhi, Chennai and Kolkata.

But unions in State Bank of India and Indian Overseas Bank did not take part. In Mumbai, union leader V. Utagi said: "The strike in the banking and financial services sector is near total. Work at Mumbai Port Trust is hit. And Maharashtra's 1.50 million government employees have joined us."

But public buses and Mumbai's suburban trains plied though their unions lent "moral support" to the strike. A section of cabs and auto-rickshaws in Mumbai also joined the strike, which Utagi said was "a major success".

In Delhi, banks, insurance companies and industrial areas observed a shutdown. Most auto-rickshaws, the poor man's taxi, went off the roads. But Delhi Metro reported normal operations.

The strike hit hard life in Kerala, a Left bastion. Most IT firms in Technopark and Infopark reported very thin attendance. Work at the Cochin Port was affected.

The shutdown evoked mixed response in Karnataka. Buses and autos didn't ply while factories, banks and shops were closed. Thousands of commuters were stranded in cities and towns across the state.

The strike hit transport and banking services in both Telangana and Andhra Pradesh too.

Buses of state-owned road transport corporations in both states went off the roads as did auto-rickshaws in Hyderabad and other towns. Truck owners and drivers also joined the strike in some places. Petrol bunks were shut in a few places.

In Bhopal, all state-run public buses remained off the roads. Shops and banks too were shut. The strike was particularly effective in major cities like Indore, Jabalpur and Ujjain.

Normal life was hit in Bihar as thousands of workers in the government and private sector joined the strike. In some places, strike supporters blocked roads and halted train services.

The strike was total in Left-ruled Tripura. All offices, shops, markets, banks and educational institutions were shut while vehicular traffic went off the roads. In Kolkata, while educational institutions and commercial establishments were largely closed, buses and the metro operated normally. But there were fewer commuters.

Train services on the Eastern Railway and South Eastern Railway were hit as strike supporters blocked the tracks in several areas.

The strike had the least effect in Tamil Nadu although life was hit in industrial areas besides banks and insurance companies.

The impact of the shutdown in Himachal Pradesh was seen in Shimla, Rampur, Theog, Solan, Mandi, Nahan, Una, Bilaspur, Hamirpur, Dharamsala, Palampur, Kangra, Kullu and Manali towns as bus operators joined the protest.

In Goa, markets and public transport were hit hard, union leaders said. Police arrested about 200 workers who had blocked National Highway 17 near the Verna Industrial estate, 25 km from Panaji.

Earlier Report

Normal life hit across India as 15 crore workers go on strike

New Delhi, Sep 2: Normal life was affected in various parts of the country, including in West Bengal and Kerala, as 10 central trade unions today went on a day-long nationwide strike to protest against changes in labour laws and privatisation of PSUs.

BJP-backed BMS and NFITU however stayed away from the strike.

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Trade union leaders claimed that around 15 crore formal sector workers are on strike in support of their 12-point charter of demands.

The day long strike was seen affecting transport and banking operations among other services.

In Kolkata, partial impact was seen on suburban trains while shops, markets and business establishments in most areas remained closed.

State administration was plying a large fleet of public buses while partial impact was seen on operations of private buses and taxis.

In the National Capital, commuters faced problems as a large number of autos and taxis remained off the roads.

In Kerala, public and private bus services, taxis and autorickshaws were off the roads. Only few private cars and two wheelers were seen on the roads.

Shops, hotels and even small tea stalls were closed in the state.

The government had yesterday appealed trade unions call off the agitation in the interest of workers and nation.

The unions however decided to go ahead with strike as their talks with a ministerial panel headed by Finance Minister Arun Jaitley last month did not make any headway on their 12-point charter of demands.

Trade unions' 12-point charter of demands includes urgent measures to contain price rise, contain unemployment, strict enforcement of basic labour laws, universal social security cover for all workers and minimum wage of Rs 15,000 per month.

They are also demanding enhanced pension for workers, stoppage of disinvestment in PSUs, stoppage of contractorisation, removal of ceiling on bonus and provident fund, compulsory registration of trade unions within 45 days, no amendment to labour laws unilaterally, stopping of FDI in Railways, Defence etc.

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Earlier Report

Banking, transportation hit as 15 crore workers go on strike

New Delhi, Sep 2: Essential services like banking and public transport may be impacted today with ten central trade unions going ahead with their one-day nationwide strike, even as the government appealed to them for calling off the agitation, which BJP-backed Bharatiya Mazdoor Sangh (BMS) and National Front of Trade Unions (NFITU) decided to boycott.

While these ten unions claim to have a combined membership of 15 crore workers in public and private sector, including banks and insurance companies, several outfits representing informal sector workers also today announced their support to the strike.

Labour Minister Bandaru Dattatreya, however, said he expects the impact to be minimal.

"I don't think essential services will be affected by the strike. I feel that the impact will not be much. I appeal them to call off strike in the interest of workers and nation," Mr Dattatreya told reporters here.

The union leaders, however, said the strike will affect the functioning of essential services like banking, transport and supply of power, gas and oil.

Countering this claim, BMS said that power, oil and gas supplies will not be affected as a large number of public sector workers in these areas would not participate in the industrial action.

As many as 12 central trade unions had given this strike call over a 12-points charter of demands, including withdrawal of the proposed changes in the labour laws and stopping the disinvestment and privatisation of PSUs.

While as many as ten central unions have decided to go ahead with the strike after their talks with a group of senior ministers last week failed to yield desired results, the BMS pulled out saying the government needed to be given time to fulfill its promises on the basic demands. NFITU will also stay out.

The government also indicated that the talks with trade unions will continue even if they go on the strike tomorrow.

On impact of the strike, Mr Dattatreya said, "The BMS and NFITU are not in the strike. Besides there are 2-4 organisations (unions) which are neutral." He did not reveal the names of the 'neutral' trade unions.

He further said, "We don't want any confrontation with trade unions. The workers' rights and interests are supreme to us. We will continue talks with trade unions even after tomorrow's strike."

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News Network
June 30,2020

Mumbai, Jun 30: Senior Congress leader and former Union minister Prithviraj Chavan on Tuesday demanded a ban on NaMo app alleging that it was violating privacy of Indians.

The former Maharashtra chief minister also alleged that the NaMo app, the official mobile phone application of Prime Minister Narendra Modi, surreptitiously changes the privacy settings and sends data to third party companies in the US.

"Its good that Modi government is protecting privacy of 130 crore Indians by banning 59 Chinese apps. The NaMo app also violates privacy of Indians by accessing 22 data points, surreptitiously changing the privacy settings and sending data to third party companies in the US," Chavan tweeted.

India on Monday banned 59 apps with Chinese links, including hugely popular TikTok and UC Browser, saying they were prejudicial to sovereignty, integrity and security of the country.

The move came against the backdrop of the border stand-off with China and recent clash in Galwan Valley in which 20 Indian soldiers were killed.

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News Network
March 6,2020

New Delhi, Mar 6: Shares of YES Bank and State Bank of India came under huge selling pressure on Friday as developments unfolded regarding SBI picking stake in the private lender. Shares of the lender hit record low of Rs 5.55, plunging 85 per cent, and were trading below its previous low of Rs 8.16 hit on March 9, 2009.

SBI, on the other hand, slumped 11 per cent to Rs 257.35 on the BSE. The benchmark S&P BSE Sensex was trading with a cut of over 3 per cent at 37,251.37 level.

In the past three months, share price of the private lender has plunged 41 per cent, while the state-owned lender has slipped 14 per cent. In comparison, the S&P BSE Sensex has dipped 5.6 per cent till Thursday.

On Thursday, the Reserve Bank of India superseded the board of troubled private sector lender YES Bank and imposed a 30-day moratorium on it “in the absence of a credible revival plan” amid a “serious deterioration” in its financial health.

During the moratorium, which came into effect from 6 pm on Thursday, YES Bank will not be allowed to grant or renew any loans, and “incur any liability”, except for payment towards employees’ salaries, rent, taxes and legal expenses, among others.

This is the first time that a bank of this size will be put under a moratorium by the RBI.

“The financial position of YES Bank had undergone a steady decline “largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits,” RBI said in a statement.

“After the moratorium, the next step will be to infuse to money and keep the bank afloat. So from shareholders’ point of view, the future is certainly hazy as the capital requirement is huge. The good part, however, is that the RBI has stepped in and depositors don't have to worry,” says Siddharth Purohit, a research analyst at SMC Securities.

Meanwhile, analysts at Nomura believe that placing the Bank under moratorium implies that equity value in the bank would be negligible, and that the chances of private capital participating in future capital raising plan are near zero.

"Any resolution for Yes Bank is more proposed from the perspective of deposit holders and systemic stability, and not from the perspective of Yes Bank equity investors or even perpetual bond holders," they wrote in a note dated March 6.

In another development, SBI’s Board Thursday gave in-principle approval to consider an “investment opportunity” in YES Bank, even as it said “no decision had yet been taken to pick up stake in the bank”.

According to a  report, highly-placed sources indicated a rescue plan involving SBI and Life Insurance Corporation of India (LIC) was being discussed and an announcement in this regard might be made soon.

“While the finer details of the deal are being worked out, it is anticipated that both SBI and LIC together will take a 51 per cent stake in the bank, with a one-year lock-in period,” the report said.

Most analysts believe it is a positive step for the Indian financial sector as the government has tried to avoid a repeat of IL&FS-like crisis.

“The move is a positive step for the financial sector as a whole. By this, the government has tried to avoid a repeat of IL&FS-like crisis and has saved the depositors,” said AK Prabhakar, Head of Research at IDBI Capital. While we know that YES Bank has a huge pile of bad loans, SBI is the only bank that has the capacity to absorb it, he added.

However, the valuation at which YES bank would be taken over remains a cause of concern.

Global brokerage firm JP Morgan Thursday cut its target price for YES Bank on Thursday to Rs 1 per share, taking into account the potential fall in the lender’s net worth due to stressed assets.

“We believe forced bailout investors will likely want the bank to be acquired at near-zero value to account for risks associated with the stress book and likely loss of deposits. We think the bank will need to be recapitalised at nominal equity value and could test dilution of additional tier 1 (AT1) capital. We remain underweight and cut our target price to Rs 1 as we believe net worth is largely impaired,” JP Morgan said in a note.

Global brokerage firm Nomura estimates a need of Rs 25,000-44,000 crore and adjusted for Rs 7,400 crore of current coverage, if the current stress of Rs 65,000-70,000 crore faces 70 per cent loss given default (LGD).

"It implies Rs 18,000-37,000 crore needed for provisioning against the current net worth of Rs 25,700 crore Also, to run as going concern, the bank would require over Rs 20,000 crore of CET-1 capital as well," the note said.

YES Bank has registered slippages of Rs 12,000 crore so far in FY20, while it has placed Rs 30,000 crore of loan assets under the watch list. Its deposits stood at Rs 2.09 trillion on September 30, 2019, while its advances totalled Rs 2.24 trillion. The bank has delayed publishing its December quarter results by a month to March 14.

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News Network
July 18,2020

Washington, Jul 18: The Foreign Direct Investment (FDI) from the US to India has crossed the $40 billion mark so far this year, reflecting the growing confidence of American companies in the country, the head of an India-centric business advocacy group has said.

The American companies, during the Covid-19 pandemic, which has battered the world economy, have shown great confidence in India and its leadership, said Mukesh Aghi, president of the US-India Strategic and Partnership Forum (USISPF), which keeps a track of the major US FDIs in India.

“Year to date investment from the US, including the recent ones, is over $40 billion,” Aghi said.

In recent weeks alone, the announcement of the FDI into India has been over $20 billion, he said, referring to the announcements made by some of the top companies like Google, Facebook and Walmart.

“Investors’ confidence in India is high. India still remains a very promising market for global investors. If you look at the $20 billion… not just the US, but (investment) has also come from other geographies such as the Middle East and the Far East.

“So, India still remains a very, very bullish market for the investor community,” Aghi said in response to a question.

The USISPF has been working with New Delhi to bring in FDI into India… playing a key role in encouraging American companies planning to move their bases out of China, he said, adding that the move was going on in the last three years of the Trump administration, but gained momentum during the coronavirus pandemic.

“We feel that Prime Minister (Narendra Modi’s) intention is very high. The challenges lie on the execution side. Efforts are being made to encourage manufacturing… I've never seen it so better. The policy framework is moving in the right direction,” he said.

Early this week, Larry Kudlow, the White House Economic Advisor, told reporters that the US tech giants like Google and Facebook announcing big investments in India shows that people are losing trust in China and India is emerging as a big competitor.

At the same time, he rued that India continues to be a protectionist country.

“The question is how do you define protectionism... the administration here is saying America first and India is saying vocal for local…,” Aghi added.

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