UPA rushes through big-ticket deals

May 14, 2014

New Delhi, May 14: The last “working” Cabinet meeting of the outgoing UPA government on Tuesday saw several big-ticket decisions—ranging from FDI in the pharma sector to appointment of the new Army chief and approval to sell 4.66 per cent stake in the state-owned Bharat Heavy Electricals Ltd through a block deal.

Big-ticket_dealsOvercoming his initial hesitation over mega decisions at the fag end of his term, Prime Minister Manmohan Singh got the Cabinet to approve a $400-million proposal by global equity major KKR to acquire stake in two Indian pharma firms in a deal touted as the largest private equity in India’s health sector. This is among the deals fiercely opposed by the BJP on the ground that the outgoing government should not take any crucial decision when its tenure ends in two days.

As cleared by the Cabinet Committee on Economic Affairs (CCEA), KKR will buy a 38 per cent stake in Hyderabad-based Gland Pharma, which develops and manufactures generic injectables, primarily in the cardiovascular and orthopaedic segment. In the second transaction, KKR will buy 29.4 per cent share in Gland Celsus Bio Chemicals from an existing investor.

Currently, the government allows 100 per cent FDI in both greenfield and brownfield drug manufacturing companies. Investments in greenfield are allowed through automatic route and those in brownfield or existing facilities require approval of the Foreign Investment Promotion Board (FIPB).

Originally cleared by the Competition Commission of India in January, the KKR deal was stuck because of differences between the Finance and Commerce ministries. The Department of Policy and Promotion under the Commerce Ministry raised objections to the proposal as it believed several clauses of the deal did not adhere to the FDI policy on brownfield projects.

That also saw the Health Ministry joining the Commerce Ministry in advocating a lower cap on investment in the existing drug making units along with various safeguards for acquisition of domestic critical care pharma companies by multinational firms.

But the Finance Ministry and the Planning Commission wanted faster clearance to keep investors’ sentiments intact in the Indian market. The Prime Minister, however, was against the deal being cleared by the outgoing government. In the last Cabinet meeting on May 8, it was not given a nod even though Finance Minister P Chidambaram pitched for it.

On Tuesday, the CCEA also gave post-facto approval to sale of 4.66 per cent stake in state-owned Bharat Heavy Electricals Ltd through a block deal, Heavy Industries Minister Praful Patel said after the Cabinet meeting. “It is post-facto, the Cabinet has cleared it,” he told reporters when asked about the decision on the BHEL stake sale.

The government had divested 4.66 per cent in the heavy engineering major through a block deal on March 3. As the original approval by the Cabinet was for divestment through a follow-on public offer, the department of disinvestment had sought a post-facto approval for the block deal. The government currently holds 63.06 per cent stake in BHEL.

Meanwhile, official corridors were abuzz with talk of Chidambaram not approving a proposal from the Prime Minister’s Office to appoint Indu Shekhar Chaturvedi, a 1987 IAS Jharkhand cadre officer, as executive assistant in the World Bank in Washington.

Apparently, Singh spoke to the finance minister to clear it. In turn, Chidambaram got his personal assistant M A Siddique, a Tamil Nadu IAS cadre officer, also cleared by the Appointments Committee of the Cabinet, for placement with the World Bank.

The appointment of Muralidharan Nair as secretary to the outgoing prime minister was cleared on Tuesday.

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News Network
January 1,2020

New Delhi, Jan 1: The new Army chief Lieutenant General MM Naravane on Wednesday said that India needs to pay more attention to its border along China and asserted that the force is capable of dealing with any security challenge.

"We have been giving attention to our western front in the past. The northern front now also requires an equal amount of attention... The Army is capable of tackling any dangers to the country," General Naravane told reporters after receiving the first Guard of Honour as the Army chief.

"In that context, we are now going in for capability development and enhancement of our capacities even in our northern borders which includes the northeastern part of our country," he said.

On the border dispute with China, the Army chief said that continuing peace along the border will pave the way for a solution.

He said: "We have been able to maintain peace and tranquility along borders and I'm sure that situation will prevail. By maintaining this, we will be able to set the stage for the eventual solution."

General Naravane said that operational readiness and modernisation will be among the top priorities of the Army under his leadership.

"Our priority will be to be ready to meet any challenge and to be operationally prepared at all times. This will happen as a result of modernisation. We will continue to build our capability especially in the North and Northeast region of our country," he said.

He said that the Indian Army will pay special attention to respect human rights. "We will also pay special emphasis on raising security awareness among ranks and file and pay special attention to respect human rights," the Army chief said.

Assuring the country on security, he said, "All three services — the Army, the Navy and the Air Force — are ready to defend the country."

He extended wishes to people in the new year and hoped that the country will make huge progress in this decade.

General Naravane took over as the 28th Chief of the Army Staff (COAS) on Tuesday, succeeding General Bipin Rawat who has become India's first Chief of Defence Staff (CDS).

General Naravane was previously the Vice Chief of Army Staff.

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News Network
May 29,2020

New Delhi, May 29: Union Home Minister Amit Shah on Friday met Prime Minister Narendra Modi and informed him about the views of all chief ministers on the extension of the ongoing nationwide lockdown beyond May 31, officials said.

During the meeting, Shah briefed Modi about the suggestions and the feedback he received from the chief ministers during his telephonic conversations on Thursday, a government official said.

The nationwide curbs were first announced by Prime Minister Narendra Modi on March 24 for 21 days in a bid to contain the spread of novel coronavirus. It was first extended till May 3 and then again till May 17. The lockdown was further extended till May 31.

The home minister's telephonic conversations with the chief ministers came just three days before the end of the fourth phase of the lockdown.

During his talks with the chief ministers, Shah sought to know the areas of concern of the states and the sectors they want to open up further from June 1, the official said.

Interestingly, till now, it was Modi who had interacted with all chief ministers through video conference before the extension of each phase of the coronavirus-induced lockdown and sought their views.

This was for the first time that the home minister spoke to the chief ministers individually before the end of another phase of the lockdown.

Shah was present in all the conferences of chief ministers along with the prime minister. It is understood that the majority of the chief ministers wanted the lockdown to continue in some form but also favoured opening up of the economic activities and gradual return of the normal life, another official said.

The central government is expected to announce its decision on the lockdown within the next two days.

The number of COVID-19 cases in India has climbed to 1,65,799 on Friday, making it the world's ninth worst-hit country by the coronavirus pandemic.

The Health Ministry said the death toll due to COVID-19 rose to 4,706 in the country. While extending the fourth phase of the lockdown till May 31, the central government had announced the continuation of the prohibition on the opening of schools, colleges and malls but allowed the opening of shops and markets.

It said hotels, restaurants, cinema halls, malls, swimming pools, gyms will remain shut even as all social, political, religious functions, and places of worship will remain closed till May 31.

The government, however, allowed limited operations of the train and domestic flights. The Indian Railways is also running special trains since May 1 for transportation of migrant workers from different parts of the country to their native states.

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Agencies
February 11,2020

New Delhi, Feb 11: Senior Delhi Congress leader and national spokesperson of the party Sharmishtha Mukherjee alleged delay in decision making and lack of strategy and unity at the state level for the party's humiliating performance reflected in the Assembly poll results on Tuesday.

Mukherjee, president of Delhi Mahila Congress, stated that it was high time that the party takes some action. She added that she too was responsible for the Congress' poor show.

The Congress is on the verge of drawing blank again in the Assembly polls as all its candidates were way far behind their AAP and BJP opponents on all the 70 seats. In the 2015 Assembly elections too, Congress failed to win any seat.

"We r again decimated in Delhi. Enuf of introspection, time 4 action now. Inordinate delay in decision making at the top, lack of strategy & unity at state level, demotivated workers, no grassroots connect-all r factors. Being part of d system, I too take my share of responsibility (sic)," Mukherjee tweeted as the results came out.

She also accused the BJP of playing divisive politics while crediting Delhi Chief Minister Arvind Kejriwal for playing "smart politics" as the results showed a clean sweep by the AAP to return to power.

"BJP playing divisive politics, Kejriwal playing ‘smart politics’ & what r we doing? Can we honestly say that we’ve done all 2 put our house in order? We r busy capturing Congress whereas other parties are capturing India. If we r 2 survive, time 2 come out of exalted echo chambers! (sic)," she said in another tweet.

The Congress contested the Delhi polls in alliance with the Rashtriya Janta Dal (RJD), fielding candidates on 66 seats and leaving four to its partner.

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