Economic reform agenda runs into political hurdle

April 29, 2013

Economic_agendaNew Delhi, Apr 29: A parliament deadlocked yet again over corruption scandals threatens Finance Minister P. Chidambaram's ambitious reform agenda, dealing a harsh dose of political reality on the heels of his North American roadshow to sell the India story.

Two long-stalled reforms - one to lift the foreign ownership cap in insurers to 49 percent from 26 percent and another that would simplify land acquisition for factories - were due to be introduced in the legislature during the past week ended up being side-tracked by the political ruckus.

With opposition parties disrupting parliamentary proceedings, questioning investigations into multi-billion-dollar scandals related to allocations of telecoms airwaves and coal mines, there is no guarantee the bills will be passed during this parliamentary session, which ends on May 10.

Chidambaram promised investors during his roadshow in Boston, New York, Ottawa and Toronto to get the bills on insurance and land reform passed in the current session, hoping their passage will boost investment from eight-year low growth and help spark an economy growing at its slowest in a decade.

"If we can pass the land bill, if we can pass the insurance bill and if we can pass the Goods and Services Tax bill, that will be an accomplishment of this parliament," Chidambaram said last week, appealing for bipartisanship on economic issues.

Chidambaram is increasingly spoken of as a future prime minister if the Congress party retains power, although he denies any such ambition.

While the main opposition Bharatiya Janata Party (BJP) has agreed in principle on land reform, it has refused to back the insurance bill, and with national elections due by May 2014, it is not in a mood to compromise.

"Chidambaram is misleading. The government is in its last days of office. They cannot bring the economy back to health," BJP spokesman Prakash Javadekar told Reuters.

New Delhi's poor record of delivering on promises, coupled with myriad regulatory hurdles - including high-profile tax battles with foreign companies such as Vodafone and Royal Dutch Shell has driven investors away.

Foreign direct investment into the country fell 38 percent in the 11 months through February. The Center for Monitoring Indian Economy, a think tank, reckons new capital investment announcements in the March quarter dropped 75 percent from the same period last year.

Meanwhile, Indian companies are looking for greener pastures. A government body expects outbound corporate investment to rise about 45 percent in the fiscal year that started this month.

DON'T WRITE ME OFF

Chidambaram warns sceptics against underestimating his ability to deliver, pointing to his success in reining in a bloated fiscal deficit and carrying out fuel, retail and aviation industry reforms.

No one had thought fractious coalition politics would let him drive through those reforms, but the benefits are already evident.

Abu Dhabi-based Etihad Airways last week made a $379 million investment in India's Jet Airways (JET.NS), a deal that was made possible by the rule change and was helped along by the government. Swedish retail chain Hennes & Mauritz (HMb.ST) said it will spend about $130 million to open an initial 50 stores in India.

The cabinet committee on investment, which Chidambaram had pushed to speed clearances for big infrastructure projects, has approved $27 billion worth since January.

His success in controlling the fiscal deficit has also pulled the country back from the brink of a ratings downgrade.

Luck also seems to be favouring Chidambaram, with India getting a boost from the correction in global oil and gold prices, easing its import bill and current account deficit.

But with the election fast approaching, the din in parliament is getting shriller by the day, making it difficult to carry out meaningful legislative business. Even colleagues within Prime Minister Manmohan Singh's cabinet oppose some of the reforms Chidambaram wants to make.

His plan to set up a coal regulator to decide the allocation of coal mines and pricing of the fuel has run into trouble as the coal ministry is not willing to cede its power.

Providing fuel supply linkages to utilities has become a victim of a feud between the coal and power ministries. Plans to free up prices of oil and gas drilled locally have been put on the back-burner following a disagreement among ministries.

Similar opposition from his cabinet colleagues forced the finance minister to boost public spending for welfare programmes in this year's budget and accept a watered-down version of a plan to fast-track major infrastructure projects.

Chidambaram, who has also courted investors on visits to Asia and Europe, is planning to take his roadshows to Australia and Qatar next month.

A failure to honour his commitments could not only dent hopes for India's economic revival ahead of next year's election, but could also take the shine off the Harvard-trained Chidambaram's reputation as an investor-friendly "doer".

"The issue is that the roadshows have to be followed by actions," said Sandeep Aneja, managing director at Kaizen Private Equity. "Unless we show consistent reforms, we will not see significant investment coming in."

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News Network
May 18,2020

May 18: The Central Board of Secondary Education (CBSE) on Monday announced the date sheet for the pending class 10 and 12 board exams, which will now be held from July 1 to 15.

The exams were postponed due to the nationwide lockdown imposed on March 25 to contain the spread of COVID-19.

The Class 10 board exams are pending only in the North East Delhi.

"The Class 10 exams will be staggered on four dates, starting July 1. The first paper will be Social Science, while the next day students will be required to appear for the Science exam,” said Sanyam Bhardwaj, the Controller of Examination, CBSE.

“On July 10, exams will be conducted for both courses of Hindi and on July 15 for both courses of English," he said.

On health guidelines for students, Bhardwaj said that they will be required to carry their own sanitiser bottles and wear masks to examination centres.

"Parents will have to ensure that their ward is not sick and candidates will have to strictly follow physical-distancing norms," he said.

For Class 12, the Home Science exam will be held on July 1, followed by both courses of Hindi the next day.

The Class 12 Business Studies exam has been scheduled for July 9, followed by Biotechnology on July 10 and Geography on July 11.

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News Network
March 3,2020

Wayanad, Mar 3: Anguished over the alleged delay in receiving flood relief from the Kerala government, a 42-year-old man committed suicide in Wayanad district, police said on Tuesday. Sanal Kumar, a native of Thrikaipatta in Meppadi near here was found hanging inside the temporary shelter built by his friends and local people on Monday. He was among the hundreds who had lost their homes in the August 2019 floods.

His home, built on a three cent plot, had been damaged partially in 2018 floods and completely in the 2019 deluge. Family members of the deceased alleged that it was due undue delay on the part of the authorities in allotting funds for rebuilding his house that drove Kumar to take the extreme step. Kumar was hoping to get a house under the Life Mission project, sources said.

A relative said Kumar had only 3 cent of land and had lot of debts. Even the Rs 10,000 assistance promised by the state government for the flood affected, had not reached him. Since the past two years he had filed several applications for assistance and apporached many revenue authroties for the promised government assistance, but it never came, the locals alleged.

According to K K Sahad, president of Meppadi Panchayat the deceased had some other financial issues and it was not the delay in rehabilitation that made him commit suicide. "It is true that he was not included in the first list of beneficiaries under the LIFE project as he had to have "pattayam" (land records) for his land.

However, he was included in the second list, thanks to the dilution in the norms that possession was enough for those who had no 'pattayam' for their property. The amount of Rs 4 lakhs was sanctioned for him, but was delayed a bit due to some technical issues."

Wayanad MLA C K Saseendran described it as an "extremely sad" development. As Kumar had some difficulties in producing the land recrods, the authroties had been unable to include his name in the LIFE housing scheme in the first phase.

The matter has been brought before the notice of the revenue authorities, he said. Vythiri Tahsildar, Abdul Hameed, visited Kumar's relatives this morning as the family members of the deceased wanted his presence before the body was taken for post-mortem.

"There was some technical issues with regard to the land as it falls within the adhivasi reserve. But they were occupying it for long. However, the issue has been sorted out and that his family members would be getting the eligibility amount of four lakhs," Hameed said.

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Agencies
January 12,2020

Lucknow, Jan 12: The controversy over renowned Pakistani poet Faiz Ahmad Faiz's iconic poem 'Hum dekhenge' may have caused an upheaval in the literary world but it has also helped in resurrecting the famous poet for the young generations.

Students and young professionals are making a beeline for books on Faiz, his biography and his poems and book sellers are ordering supplies of Faiz books.

"Earlier, we sold hardly one book in a month or on Faiz but after the controversy, people are curious to know more about the poet and his poems. We have placed orders for the entire literary range on Faiz Ahmad Faiz," said a leading book seller in Hazratganj in Lucknow.

The bookseller said that the highest demand was for books written in Devnagri script.

"Not many in the young generation can read or write Urdu so they prefer Devnagri," the book seller said.

In Kanpur, most of the leading bookshops have already run out of stocks and book stalls in the ongoing Handloom Expo are drawing huge crowds for Faiz books.

Suchita Srivastava, B.Ed student in Kanpur said, "I have never been fond of Urdu poetry because I do not understand much of the language but after the controversy, I want to read poems of Faiz to understand what he wanted to say. I am taking help of Google to understand difficult words in Urdu."

Krishna Rao, another student at the Chandra Shekhar Azad University of Agriculture and Technology, said that since books on Faiz had been sold out, he had ordered a Kindle edition and was reading them.

"Reading his poems actually widens one's perspective of things and becomes even more precious if you take into account the time and context in which they were written," he said.

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