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
January 1,2020

New Delhi, Jan 1: Union Minister Prakash Javadekar launched a scathing attack on the Aam Aadmi Party and the Congress for allegedly inciting violence in Delhi against the Citizenship (Amendment) Act. Mr Javadekar said the violence over the amended citizenship law that broke out in areas like Jamia Nagar, Seelampur and Jama Masjid "cannot be forgiven".

"In Jamia, the Congress' Asib Khan and AAP's Amanatullah Khan delivered inciting speeches. They spread disinformation. The law is to give citizenship to people and not take citizenship away," Mr Javadekar told reporters.

He said the people of India understand the plans of the Congress and the AAP and both parties should apologise.

"We will bring out the truth. The fight is between anarchists and those who oppose them. Our agenda would be wholesome development of Delhi. The AAP strangulated municipal corporations' attempt on development. Rs 900 crore was not given. Today, the people of Delhi are surprised that the AAP slept through all these 4.5 years and in the remaining six months they have launched schemes," Mr Javadekar said.

"The work is done by someone else and the credit is taken by a different individual," the Union Minister said, referring to allegations that the government led by Chief Minister Arvind Kejriwal took credit for work done by BJP-ruled municipal agencies.

"Who did fogging in dengue season? Our corporations organised an awareness drive against water accumulation and dengue cases went down. During corporation polls, Kejriwal said don't choose BJP as dengue will claim lives. Now he is also claiming credit for decrease in dengue cases because of the work done by these corporations," Mr Javadekar said.

"I am an environment minister. We worked on pollution control. There is no limit to their (AAP's) lies. About unauthorised colonies, the AAP says we have not regularised it. We made a law signed by the President, yet they spread lies," Mr Javadekar said.

The election in Delhi will be held before the end of February.

Comments

Angry Indian
 - 
Wednesday, 1 Jan 2020

Wash you face with cow urine !!!

sorry sorry with DOG URINE...

you will be enlightened...

 

get lost moron...from wher u came....rat hole or A@@ hole

Fairman
 - 
Wednesday, 1 Jan 2020

Don’t pollute Delhi. Leave them alone.

Every citizen including your own BJP minded people all are very happy with Kerjrival and Aam Admi Party.

 

Every citizen in Delhi are very very happy.

For God sake leave alone, don’t disturb them as spoiled in other parts of the country.

 

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News Network
January 18,2020

Kanpur, Jan 18: Kanpur has witnessed an Unnao-like incident as the out on bail accused in rape case attack the family members of the victim. The mother of the victim, who later died in the hospital, was brutally attacked by the accused. The accused reportedly attacked the victim's mother and her aunt on January 8.

The actual rape case goes back to 2018 when a group of men abducted a minor girl from her own society. The accused had reportedly raped her and also beaten up her mother.

A video of mother being beaten up reportedly went viral soon after.

The mother of the victim had reportedly filed a complaint against one of the accused for abducting and molesting her daughter two years ago at a tannery falling under jurisdiction of Chakeri police station. The main accused along with five others was booked under section 354 of the IPC (sexual assault of children) and sent to jail. Around two weeks ago, the accused got bail and on January 9 they attacked the deceased and her sister.

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Agencies
February 7,2020

Thiruvananthapuram, Feb 7: Kerala Finance Minister T M Thomas Isaac on Friday began presenting the fifth budget of the CPI(M)-led LDF government for the 2020-21 fiscal by making remarks against the Citizenship Amendment Act and the unanimous resolution passed by the state assembly against it.

Stating the amended act was posing a threat to the basic credentials of the Constitution, he said the country was witnessing the biggest protests ever in the post-Independence era.

Students and women are at the forefront of the anti- CAA agitations and the hope of the country lies in the youth who hit the streets vowing they would not let the country down, he said.

Coming down heavily on the BJP-led NDA government at the Centre, Isaac said a communalised government machinery, leaders who talk only about "disgust and hatred" and their party workers who consider violence as their duty was the current reality in the country.

"Generally speaking, it is the present India...The concerns triggered by Citizenship Amendment Act (CAA) and the National Register of Citizens (NRC) are beyond words. The fear of detention centres are hanging above the head of over 19 lakh people of Assam who have lived as Indians till yesterday," he said.

Quoting from a poem 'Fear' by a 15-year old boy from Wayanad Dhruvath Gautham who wrote 'fear is country and silence is an ornament!,' Isaac said "even the imagination of our children is now filled with fear".

Referring to the stringent opposition raised by the Left government in the state against the CAA and NRC, the finance minister lavished praise on the joint protests led by the ruling LDF and opposition UDF against the central act.

Setting aside political differences, the rival fronts in the state had joined hands to protest when the country had faced existential threat which had become a model for other states, he said.

When Chief Minister Pinarayi Vijayan and Leader of the Opposition Ramesh Chennithala jointly protested at the same venue against CAA, Kerala became a model to other states, the senior leader added.

The state showcased the same unity while passing a resolution requesting the centre to repeal the CAA and filing a suit in the apex court against this under the Article 130, he said.

"The country's economy is heading towards a severe economic crisis like that witnessed in 2009," he said.

Earlier, the references to anti-CAA protests had found a place in the Pinarayi Vijayan government's policy address also.

While presenting the policy address in the House, Governor Arif Mohammed Khan had read out references to anti- CAA resolution passed by the house, despite disagreeing with it.

Reading out the the anti-CAA stand of the state government, the Governor said "our citizenship can never be on the basis of religion as this goes against the grain of secularism which is part of the basic structure of our constitution.

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