'Naxalism remains biggest internal security challenge'
The scribes seemed to be more interested to Push the Economic ethnic cleansing in the most forgetable National Press Conference!
Troubled galaxy Destroyed Dreams,Chapter 482
Palash Biswas
http://indianholocaustmyfatherslifeandtime.blogspot.com/
Pranab loads growth gun for rebel battle and Win-win deal for Ambanis!
On the other hand, Describing Naxalism as the biggest internal security challenge of the country, Indian Prime Minister Manmohan Singh said the Central government must help the states to deal with the menace.The scribes seemed to be more interested to Push the Economic ethnic cleansing in the most forgetable National Press Conference!
"This is a problem which has acquired (such a) magnitude that cooperation between the Centre and states is absolutely necessary and the Central government must help states in every possible way," Singh said at a national press conference here.He, however, said law and order was primarily the state government's responsibility.
"As far as I am concerned, I do recognise that law and order is primarily a state responsibility," he said.
Asked about Home Minister P Chidambaram's statement that he had a limited mandate in tackling the Maoists, Singh said the minister had already explained what he had meant by his statement on the issue.
| Monday May 24, 11:26 AM | Source: Indian Express Finance |
Sensex rises 1.5 pct; Ambanis' cos rally
By AgenciesThe private actions of one of India's top business families has moved public markets upwards. Indian shares rose 1.5 percent early on Monday, with Reliance Industries (RELIANCE.NS : 1022.65 +27.1
) leading the rise after the Ambani brothers made a reconciliation move over the weekend.
Both groups said they aim to reach a conclusion soon for a gas supply agreement between Reliance Industries and Reliance Natural Resources that had been at the heart of their dispute.
At 9:01 a.m. (0331 GMT), the 30-share BSE (^BSESN : 16469.55 +23.94) index was up 1.5 percent at 16,685.33 points, with 25 components advancing.
Shares in energy major Reliance Industries, controlled by Mukesh Ambani, rallied more than 5 percent.
Telecoms firm Reliance Communications (RCOM.NS : 147.9 +14.65), controlled by Anil Ambani, gained 6 percent, while financial services firm Reliance Capital added 7 percent.
Reliance Natural Resources, also controlled by Anil Ambani, jumped 20 percent.
The 50-share NSE (^NSEI : 4943.95 +12.8) index was up 1.4 percent at 5,000.90.
| Monday May 24, 05:22 PM |  |
Ministerial meeting on fuel prices on June 7-TV
 |
NEW DELHI (Reuters) - The government will consider raising fuel prices at a ministerial meeting on June 7, the ET NOW television channel reported on Monday, citing Oil Minister Murli Deora.
It did not provide further details.
The government sets the prices of petrol, diesel, cooking gas below market rates to protect citizens from higher prices and manage inflation, a subsidy that adds to New Delhi's fiscal burden.
(Reporting by Ruchira Singh; editing by Malini Menon)
(For more business news on Reuters Money visit http://www.reutersmoney.in)
Maoists must be stopped at the border, Buddhadeb bhattacharya , the Chief Minister of West Bengal Brahmin Front Government suggests!With Prime Minister Manmohan Singh identifying Maoists as the biggest internal security threat, West Bengal Chief Minister Buddhadeb Bhattacherjee today said they must be stopped at the state borders.
"This menace has to be stopped at the border itself," Bhattacherjee, who is the CPI(M) Politburo member, told a May 30 civic election meeting In Kolkata in which Mamata Matua is Indulged.
He alleged that when the Prime Minister was calling the Maoists the biggest internal threat, the Trinamool Congress which was a UPA ally, was helping the ultras in West Bengal. Without naming Trinamool Congress chief Mamata Banerjee, he said "She is denying that Maoists don''t exist in West Bengal.
She is also opposing anti-Maoist operations in Lalgarh. Why is she saying so? Does she want to shield the Maoists?" Bhattacherjee who also took a swipe at Banerjee''s performance as Railway minister claiming that rail services were deteriorating with lack of safety and security, while poor quality food was being served to passengers.
On the Prime Minister expressing confidence of bringing inflation down to 5-6 per cent by December, Bhattahcejree said he did not mention a word about food inflation which was now at 16.5 percent.
Ruling out retirement, Prime Minister Manmohan Singh Monday forecast an economic growth rate of 10 percent in mid-term and underlined his resolve to improve relations with Pakistan, saying better ties with neighbours were necessary to realise India's development potential.
Six years into the top job, the 77-year-old economist-prime minister said he was ready to make way for younger people like Rahul Gandhi, the Congress general secretary who is widely considered to be a prime minister-in-waiting, but added that the ruling United Progressive Alliance (UPA) coalition remained a work in progress and could do much better in the coming years.
Confident of achieving medium-term target of 10 percent economic growth per annum, Manmohan Singh stressed on social inclusion as the core of his government agenda.
Meanwhile,Billionaire Indian brothers Mukesh and Anil Ambani know how to spring a surprise -- from squabbling over their sprawling business interests to launching audacious takeover bids. Shares of Mukesh Ambani-led Reliance Industries (RELIANCE.NS : 1022.65 +27.1) today jumped 5 per cent and ADAG firm RNRL (RNRL.NS : 54.6 +10.1) climbed nearly 27 per cent on the BSE (^BSESN : 16469.55 +23.94) following efforts to settle the differences between the two Groups.
Reuters Reports:And they've done it again -- by choosing a quiet Sunday afternoon to announce they were patching up their differences and ending a non-compete agreement, moving towards reconciliation in their long-running feud and giving a timely boost to the local stock market.
Under the non-compete deal, neither brother was free to do what he wanted. Ending that agreement normalises the way they can do business. They can now compete on each other's turf, with the exception of gas-fired power plants, removing a source of friction between Mukesh's Reliance Industries (RELIANCE.NS : 1022.65 +27.1) and the Anil Dhirubhai Ambani Group.
The two business empires spoke of creating an environment of "harmony" and "collaboration", just a fortnight after a bitter price dispute over gas went to the Supreme Court.
Mukesh and Anil, with an estimated joint worth of $43 billion, both ive in Mumbai, but had not been on speaking terms during their protracted dispute.
They split a business empire inherited from their father Dhirubhai Ambani in a 2005 deal brokered by their mother, Kokilaben, and some of India's top bankers.
The brothers' feud and their grip on corporate India has been a hot topic for years among the country's executives, politicians and the wealthy Gujarati community to which they belong.
Mukesh, 53, owns a cricket franchise in India, and spearheaded textile major Reliance Industries' foray into petrochemicals, refining, and oil and gas exploration and production.
A chemical engineer by training, Mukesh dropped out of an MBA programme at Stanford University where he was a classmate of Microsoft CEO Steve Ballmer, and joined Reliance in 1981.
The rift between the two brothers broke into the open soon after Dhirubhai, a schoolteacher's son, died in July 2002. Since then, they have fought over business interests from energy and retail to telecoms, financial services and infrastructure.
The two were seen together at their mother's birthday last year, raising hopes of a reconciliation. A brief handshake at an awards function sparked a media frenzy.
BOLLYWOOD, MARATHONS
This weekend's agreement is the first time the brothers, who reportedly met Prime Minister Manmohan Singh separately earlier this month amid talk of political pressure to patch up, have talked about "eliminating any room for further disputes".
Talks between Anil's Reliance Communications (RCOM.NS : 147.9 +14.65) and South Africa's MTN Group more than two years ago to create a top-10 global telecoms firm were scuppered by Mukesh's right of first refusal on shares of the Indian mobile firm.
Anil, 50, was a regular on the Bollywood party circuit with his wife, a former actress. At conferences before the brothers split, it was Anil who made presentations and took questions from reporters, whose names he made a point of remembering.
Mukesh, who said last year he would take a two-thirds pay cut after the prime minister criticised "vulgar salaries", nonetheless gave his wife a private jet on her birthday and is spending $1 billion on a new 27-storey home. For years he has shared a home with his brother and mother.
Anil, who has a business degree from the University of Pennsylvania's Wharton School, controls interests in power, financial services, infrastructure and entertainment.
Ranked 36th on the Forbes rich-list, the teetotal Anil is a self-confessed fitness fanatic dubbed "Marathon Man" by the media. He runs every morning and is a regular in the annual Mumbai Run.
Reuters
RIL shares, after opening firm on the Bombay Stock Exchange, jumped 5.34 per cent to touch a high of Rs 1,049, from its previous close.
Likewise, shares of Anil Ambani Group firm Reliance Natural Resources Ltd jumped to a high of Rs 56.35, up 26.62 per cent on the BSE.
Yesterday, in a major development, the two Ambani brothers--Mukesh and Anil-- decided to bury their differences and create an environment of harmony, co-operation and collaboration between their Groups, saying this would eliminate any room for further disputes.
"Investors have welcomed the move between the two corporate behemoth of India to resolve their lingering family dispute. This is not only a positive thing for the investors of both the Groups, but also for the economy of the country as they are India's big business groups," SMC Capital vice-president Rajesh Jain said.
Meanwhile, among other ADAG firm Reliance Infrastructure shot up 8.55 per cent, Rcom (RCOM.NS : 147.9 +14.65) by 4.57 per cent, and Rpower gained 11.54 per cent.
The gain in heavyweight RIL boosted investor sentiment and the benchmark Sensex soared 1.69 per cent, or 279.3 points, at 16,724.91 points at 0928 hrs.
The step toward a peace deal between the two brothers comes within days of the Supreme Court declining to give any relief to younger brother in the gas dispute.
On May 7, the Supreme Court in a judgement rejected RNRL's plea for cheap gas from Mukesh Ambani-led RIL.
The Court had directed RIL to initiate negotiations with RNRL within six weeks to arrive at a sale agreement within the framework of the government policy.
Prioritising improving relations with Pakistan as his foreign policy priority in his second term, Manmohan Singh said: 'Pakistan is our neighbour. It is our obligation to make every efforts to normalise relations with India's neighbours. That's essential to realise our full developmental potential.'
'Trust deficit is the biggest problem. Unless we tackle that, we can't make progress. It has been my effort to reduce the gap,' Manmohan Singh, who last met his Pakistani counterpart Yousuf Raza Gilani three weeks ago in his continuing effort to improve ties, said at a press conference to mark the first year of the second tenure of the UPA government.
'We are willing to discuss with Pakistan all outstanding issues. Pakistani territory should not be used to spread terror in India or against India,' he said.
When asked a question on the unfinished business of the India-US nuclear deal, the defining foreign policy initiative of his first term, Manmohan Singh asked all political parties to support the contentious civil nuclear liability bill for the sake of India's emergence as a major nuclear energy power.
Addressing about 500 journalists for over an hour at the Vigyan Bhavan convention centre on a range of issues, ranging from Maoist violence and Jammu and Kashmir to his equation with Congress president Sonia Gandhi and the future of Rahul Gandhi, Manmohan Singh was categorical that he was not going anywhere just yet.
'I have been given a work and it is incomplete yet; and till I complete it, there is no question of my retirement,' he said, putting to rest speculation that he may not be entirely in control.
However, Manmohan Singh also said in response to a question on Rahul Gandhi and son of Congress chief and UPA chaiperson Sonia Gandhi: 'Well, I sometimes feel that young people should take over (as prime minister)... I would be very happy to make place for anybody.'
Rahul Gandhi, he said, would be a 'very appropriate addition' to the cabinet 'as and when he is ready'.
Answering a question on his own performance, a confident Manmohan Singh, who answered questions in his sedate professorial manner, said he was 'satisfied' with his performance in the last six years but felt he 'could do better'.
Sceptics had their answer when he declared that his government would complete its five-year term, but declined to do any crystal ball gazing for the next election.
'I have every reason to believe that we will complete our term... Although we are a coalition government, we have given our country a government which works, which has delivered high rates of growth, which has accelerated the process to inclusive growth.'
The prime minister, who gave short, succinct, answers to most questions, denied that the government had underestimated the Maoist insurgency, which he again described as the 'biggest' security challenge the country faces.
'If you remember I have always been saying that Naxalism is the biggest security challenge. So it is not correct to say that we have underestimated the magnitude of the problem'.
On Jammu and Kashmir, he said he was ready for dialogue if separatists shed violence and reiterated that his government followed a 'zero tolerance' policy against human rights violations.
Trying to downplay the controversies over Environment Minister Jairam Ramesh's utterances or by former junior foreign minister Shashi Thaoroor, who quit in the wake of the Kochi-IPL controversy, Manmohan Singh said although he welcomed dialogue between ministers, such differences should not be aired in public.
On the much discussed equation with Congress president and UPA chairperson Sonia Gandhi, he said 'there was no question of any gap between me and her'.
'Any elements of distrust or mistrust are not there between her and me,' he added.
There were some difficult questions to which Manmohan Singh could only give partial answers.
On the telecom scandal, Manmohan Singh gave a clean chit to his Communications Minister A. Raja pending conclusion of investigation and asserted that the process followed on auction of airwaves to telecom companies was above board.
He was responding to a question on charges that precious airwaves for 2G were sold to telecom firms at throwaway prices, resulting in losses worth billions of dollars, seen in the light of $15 billion the government will get from 3G spectrum auction.
Injecting perhaps the only note of humour in the nearly 80-minute press conference, he also took on a question of whose advice he valued the most - his wife or Sonia Gandhi.
'I am privileged to have advice of Shrimati Sonia Gandhiji and my wife,' the phlegmatic prime minister replied.
'Both deal with different subjects and I welcome both their advice,' he said, prompting laughter in the packed hall. The prime minister allowed himself a smile too.
Manmohan Singh, the only Indian prime minister to be re-elected after a full five-year term after Jawaharlal Nehru, however, deftly skirted a question on his legacy. 'I am not bothered about legacy issues. It's for the historians to pronounce judgments,' he said.
Prime Minister Manmohan Singh answered questions on a range of issues -- from Maoist violence and Jammu and Kashmir to his equation with Congress president Sonia Gandhi and the future of Rahul Gandhi -- during his press conference Monday to mark first year of United Progressive Alliance government's second term.
Here are some of his quotes:
On Maoist violence: 'If you remember I have always been saying that Naxalism is the biggest internal security challenge. So it is not correct to say that we have underestimated the magnitude of the problem... Naxalite forces get money with which they purchase weapons. Nobody can deny.'
On Rahul Gandhi: 'Rahul is very qualified to hold a cabinet post. I have discussed it with him on a number of occasions. He has always been reluctant to give a positive answer. He says he has duties to perform in reviving the Congress party. He is doing a good job. As and when (he is) ready, he will be a very appropriate addition to the cabinet... I sometimes feel that young people should take over. When Congress party makes that judgement, I will be very happy.'
On Pakistan: 'Pakistan is our neighbour. It is our obligation to make every effort to normalise relations with India's neighbours. That's essential to realise our full developmental potential... Trust deficit is the biggest problem. Unless we tackle that, we can't make progress. It has been my effort to reduce the gap... We agreed that trust deficit is a major problem blocking progress in the direction of going forward and that it should be our common endeavour to reduce the trust deficit. That's why we agreed that the foreign ministers should meet.... I am hopeful that this process can move forward. At least, that is the message that I got from talking to the Pakistan prime minister...We are willing to discuss all outstanding issues.'
On Headley: 'We have been assured at the highest level of access'.
On his term: 'I have been given a work and it is incomplete yet; and till I complete it, there is no question of my retirement...Could do better than I have done but (I am) reasonably satisfied with the pace I have been working (at)...not really bothered about legacy issues. I have a task to accomplish, (I am) doing it to the best of my ability. It is for historians to pronounce judgement on legacy....I am only working to an agenda which serves India to the best of my ability.'
On Sonia Gandhi: 'Not an iota of truth that (there is) distrust between me and and Congress president. Sonia Gandhi is the chairperson of the UPA (United Progressive Alliance), she is the president of Congress and I am a Congressman so there is no question of any gap between me and the Congress president... There is no dearth of effective coordination. Invariably we meet every week to discuss issues that need to be discussed. There is no reason to believe that there is no effective coordination between the Congress party and the government.'
Ambani brothers make their investors richer by Rs 18k cr
24 May 2010, 2030 hrs IST,PTIThe market capitalisation of Reliance Industries, the country's most valued firm, soared by Rs 8,405 crore to Rs 3,34,060 crore at the end of the trade on Monday up from Rs 3,25,655 crore on Friday.
Shares of RIL surged 2.58 per cent to settle at Rs 1,021.45 on the Bombay Stock Exchange. During the trade the stock jumped 5.34 per cent to touch an intra-day high of Rs 1,049.
Meanwhile, the shares of ADA Group companies made their investors richer by Rs 9,552.09 crore with their combined m-cap soaring to Rs 1,18,525.98 crore today.
RNRL's market valuation rose by Rs 1,641.29 crore to Rs 8,908.72 crore, with the scrip surging as much as 22.58 per cent on the BSE.
The market valuation of other ADAG stocks also saw considerable growth today with RCom and Reliance Power adding the most. M-cap of RCom rose by Rs 2,992.75 crore to Rs 30,526.86 crore, while RelPower saw a growth of Rs 2,612.51 crore with its m-cap settling at Rs 35,844.14 crore.
In a surprise move yesterday, the Ambani brothers decided to bury their differences by terminating the 'non-compete clause' from their July 2005 family MoU -- which bifurcated the Reliance empire between the brothers --to create an environment of harmony, co-operation and collaboration between their groups, saying this would eliminate any room for further disputes.
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Duration: 03:39
Posted: 24 May, 2010, 0050 hrs IST
No mistrust between I and Sonia: PM
Prime Minister Manmohan Singh today strongly dismissed suggestions of 'mistrust' between him and Congress President Sonia Gandhi, saying he receives constant advice and guidance from her.
Singh, who addressed his first press conference here in four years, said there is not an 'iota of mistrust or distrust between me and the Congress President.'
"(There is) no question of gap in thinking between me and the Congress President...She is the leader of the UPA and she is the President of the Congress party and I am a Congressman," Singh said when asked about reported differences between the government and the party on a host of issues.
He said he meets Gandhi once in a week to discuss the political developments as well as issues related to governance.
"Invariably we (Sonia Gandhi and me) meet every week to discuss major issues. There is no basis to believe that there is no effective mechanism to deal with issues between Congress and the government," the Prime Minister said.
"(There is) not an iota of truth in (suggestions) that there is any mistrust or distrust between me and the Congress president," he said.
"(There is) no question of gap in thinking between me and the Congress President...She is the leader of the UPA and she is the President of the Congress party and I am a Congressman," Singh said.
Govt pushing for reservation in pvt sector
Prime Minister Manmohan Singh said the government is working towards creating an atmosphere where trade and industry come forward to reserve jobs for the socially underprivileged - a practice in vogue in the public sector.Reserving jobs in private sector or affirmative action was part of the national Common Minimum Programme of UPA-I and it had initiated a national dialogue with political parties and industry to see how this can be implemented.
"To take forward the affirmative action, we need to create an atmosphere so that trade and industry participants help us on this issue. We are working hard towards that and we acknowledge it needs to be taken forward fast," he said replying to a question on progress on affirmative action.
The UPA-I had said in May 2004 that it "is very sensitive to the issue of affirmative action, including reservations, in the private sector.
"It will immediately initiate a national dialogue with all political parties, industry and other organizations to see how best the private sector can fulfil the aspirations of scheduled caste and scheduled tribe youth."
At present, the law provides for reservation for Scheduled Castes and Scheduled Tribes, among others, in public sector jobs, besides quota in education.
Inflation to ease to 5-6% by Dec: PM
Prime Minister Manmohan Singh said the government was confident of bringing down inflation to 5-6 per cent by December, while blaming high prices on the global developments such as the financial crisis.
"Prices continue to be a matter of concern ... it is affecting the country's masses ... but I believe by December we can bring it down to 5 to 6 per cent," he said at his national press conference here to mark the completion of one year UPA-II in office.
Singh said the government has been monitoring inflation and has been taking measures to check the rising prices, particularly food products hit by poor monsoons last year.
"But for this (high inflation), international financial crisis and high prices of petroleum prices in global markets are to blame. Besides, droughts and floods in some parts of the country last year also affected our economy as whole," Singh said.
Monsoon accounts for a bulk of rains India receives and nearly 66 per cent of the country's agriculture sector depends on rains for cultivation.
High food and fuel prices fuelled overall inflation to over 10 per cent in February and provisional numbers for April put it at 9.59 per cent.
"As a result of steps we have taken, there are signs of prices showing a moderating trend," Singh said.
"We are closely monitoring the situation and together with state governments take all steps to bring down prices and protect the vulnerable section of our society from the impact of high prices," Singh added.
Food inflation, which had shot above 20 per cent in December has since moderated but is still above 16 per cent.
PM sees 8.5 pct growth 2010/11
India's inflation is showing signs of moderating and the government expects to achieve a medium term target of 10 percent growth annually, according to a draft speech by Prime Minister Manmohan Singh on Monday.
Singh said in the draft speech that he will take more steps to battle inflation which is currently nearly 10 percent, along with the help of state governments.
Our medium term target is to achieve a growth rate of 10 percent per annum. I am convinced that given our savings and investment rates, this is an achievable target, the speech draft said. However, its achievement will require determined efforts to increase investment in social and economic infrastructure, enhance productivity in agriculture and give a fresh impetus to the manufacturing sector.
The draft speech comes before a news conference in New Delhi to mark the first year since the Congress-led coalition government was reelected to a second term. It is only one of a handful of press conferences he has given since first coming to power in 2004.
Despite inflation, Singh sees growth in 2010/11 rising to 8.5 percent.
Singh, 77, has disappointed many investors with a slow pace of reforms that investors say are needed to ensure India can sustain fast economic growth and compete with the likes of China.
Despite being freed from the shackles of communist party support in the second term, his government has floundered on inflation, struggled against a Maoist insurgency, and managed its political allies so badly its substantial parliamentary majority dwindled. But the government has also won praise for a sound fiscal policy that has helped protect India from the worst of the global credit crisis. Growth is still one of the fastest in the world and there have been some tentative steps to reforms.
Many investors remain optimistic India eventually will take steps to open the insurance, banking and retail sectors to overseas players, and India still attracts many foreign firms.
'Ambani bros' burying hatchet a good sign'
Chennai Petroleum Minister Murli Deora asserted that the dispute between Ambani brothers did not really matter, but welcomed their move to bury their differences, saying it is a 'good sign'."I must tell you that there are other serious problems in the country and the fight of these two brothers does not really matter. I would take it in this way that it is a good sign and we welcome it (burying differences)," Deora said.
The Ambani brothers, Mukesh and Anil, yesterday dumped the contentious non-compete agreements signed in 2006 as part of the division of Reliance empire, saying this would eliminate any room for "disputes".
Speaking to reporters after presiding over the Parliamentary Consultative Committee Meeting, Deora said the government had no role in the Ambani brothers' dispute.
"The government has no role in that. In this case, history has said and the government has said that the gas belongs to the people of India. We are grateful to the Supreme Court and it has clearly said that the gas belongs to the people of India," Deora said.
UPA report card far from reality : Mayawati
Lucknow, May 22 (PTI) Uttar Pradesh Chief Minister Mayawati today said UPA-II''s report card presented by Prime Minister Manmohan Singh has nothing to do with ground realities and the first year of the alliance''s second stint in office has been disappointing for the people of the state. "If tested on the basis of ground realities, the report card on UPA''s one year in the office presented by the PM through press conference is frivolous," Mayawati said during a meeting of praty MLAs, MPs, ministers and zonal coordinators.
"There is nothing wrong in saying that one year of the UPA regime was disappointing for the people of the state on all fronts," she added. Congratulating party leaders and workers for the success of their statewide agitation on May 22 against price-rise and the Centre''s apathy towards UP, the BSP supremo asked them to intesnify it.
India can't raise return of PoK yet: PM
Prime Minister Manmohan Singh on Monday said that bilateral relations with Pakistan have not reached a level where India could raise the issue of taking back the areas of Pakistan-occupied Kashmir (PoK).
"There are many issues that we are discussing with Pakistan. Talks could not reach that level to find solutions to the question asked by you," Singh said when asked about the efforts made by the government to get back Indian territories under Pakistani occupation.
Parliament has already passed a resolution describing entire Jammu and Kashmir, including PoK, as part of India.
Six Naxals arrested for Dantewada killings
Dantewada In a major breakthrough, Chhattisgarh Police has arrested six persons, including self-styled Naxal commander Barsa Lakhma, who were allegedly involved in the gunning down of 76 security personnel here last month."We have arrested six people in two different incidents including Lakhma last night from Morpali, four kms from Chintalnar," Superintendent of Police Amresh Mishra said.
The six were allegedly involved in the killing of 75 CRPF personnel and one state police constable on April six, the biggest attack on security personnel in post-Independence era.
The arrested Naxals have told the officials during interrogation that the CRPF personnel had become sitting ducks after they lost the wireless set of the killed Deputy Commandant of the 62nd CRPF Battalion.
Lakhma told them that the Naxals were keeping a close tab on the movement of the para-military force personnel with the help of the wireless set.
The others arrested included Oyam Hidma, Podiyami Hidma, Kawasi Budra, Oya Ganga, Dura Joga. They were arrested from Minapa village, five kms from Tarmetla, the SP said.
They also told the police that they were keeping a close watch on CRPF personnel including the "picnic" they had on April five during which the Deputy Commandant of CRPF lost his wireless set.
After the incident, these six people had given a detailed de-briefing to Naxal top brass Ramanna and Paparao during which the "complacency" of CRPF was also discussed, they told the interrogators.
According to arrested Naxalites, the CRPF company was was selected as a target because they had stayed put in one place for an entire day and their movements were under a constant watch by Naxalites, Mishra said.
The final kill was decided by Naxalites after the wireless set started buzzing on April six at 0300 hours asking the men to get back to the ground and start searching for the lost wireless set of the deputy commandant, the arrested Naxals said.
The arrest of the Naxals comes close on the heels of Centre's move to shunt out three officers of CRPF including its Deputy Inspector General Nalin Prabhat, Commandant of 62 battalion and a Inspector.
Mishra and Inspector General T J Long Kumeer of Chhattisgarh Police have been also been recommended to be transferred in the wake of the E R Rammohan report which had allegedly blamed them for not properly planning the area domination exercise.
However, there was no mention of DIG Kallauri who was present at all operational meetings.
According to the probe, the 81-member CRPF team along with a head-constable of Chattisgarh police did not leave for its mission on April four at the time--1900 hours—mentioned in the log book. The personnel comprising companies of the CRPF's 62nd battalion in fact started moving into jungle areas only at 0500 hours the next day despite instructions not to venture into forests during early morning hours, official sources said.
The CRPF company had spent its entire day in the same ground where they fell to the bullets of the Naxalites in the wee hours of April six. Senior personnel in the CRPF team had even summoned some people including the head of the nearby village--Mukram-- and asked for large utensils for preparing the meals for the entire group.
As per the operational drill, the CRPF and the police personnel have been strictly asked not to take any help from the villagers or locals and maintain as much as secrecy as possible while moving out.
The element of secrecy was missing in the operation as the CRPF company after spending the entire day in the ground shifted to a nearby "ashram", a hostel, besides ordering the villagers to bring cots and other material, the sources said.
The CRPF battalion was scheduled to position themselves atop a small hillock near the ground by dusk time, which was important for tactical reasons including area domination.
The Centre had ordered an enquiry by Rammohan, who submitted his report on April 26 in which he talked about lack of coordination between the Chattisgarh Police and the CRPF.
Pranab loads growth gun for rebel battle | ||
| JAYANTA ROY CHOWDHURY | ||
New Delhi, May 23: The government will push ahead with development work in the Maoist-affected regions of eastern and central India to try and "end tribal alienation". Finance minister Pranab Mukherjee told The Telegraph in an interview on the occasion of the first anniversary of the UPA government: "We have to step up development projects in Naxal-affected tribal areas…." "To an extent policy makers are to blame for not being able to address the issue of tribal alienation," he added. Mukherjee's statement stressing the need for development and addressing tribal alienation puts in focus the thinking in the government that the Maoist insurgency can be fought only if the food bowl accompanies the fire. Within the government and the ruling Congress a debate has been raging, often in public, over which should take primacy: a military or a development strategy. The finance minister's statement seems to indicate that development work cannot stop for counter-insurgency operations. That is not to say that Mukherjee believes in going soft on firepower. He has himself spoken of giving more powers to the home minister, if required, to tackle insurgency. The Naxalite-affected districts of Bengal, Jharkhand, Chhattisgarh, Andhra Pradesh and Bihar are among the poorest in the country, reporting the lowest literacy rates and the highest incidence of under-nourishment. Studies show that 85 of the country's 100 poorest districts are in the so-called Red Belt. "We should not take it for granted that tribals are only concerned with ethnic exclusivity; they too have to gain from the fruits of the economic growth which India has been experiencing…. We cannot have a dichotomy in our approach to various parts of India," Mukherjee said. Through their violent methods, the Maoists have grabbed national attention for a region where a third of the population lives below the poverty line. "Roads, schooling, jobs, healthcare, sanitation programmes have to be brought to these districts… even though bringing them in an atmosphere of militancy will be costlier and difficult," said the minister, who runs virtually every cabinet sub-committee. "The delivery mechanism and monitoring of development work has to be improved… people in poorer areas cannot be made to wait… development there is a must." Although the minister did not spell out how much funds would be set apart to woo the tribals back into the mainstream, officials in his ministry said enough money was available under central schemes. "But these could be enhanced and more money granted as these are difficult areas," they said. The Maoists, who started out as Naxalites in Bengal in the 1960s, saw a huge resurgence from 2002 when the forested tribal areas witnessed a surge in mining. The rebel menace increased alongside the "jobless" mining boom of 2002-06, when employment in the mining industry dropped by 30 per cent. This was accompanied by allegations of low compensation for land and use of strong-arm tactics to get tribals to vacate mineral-rich areas. Mukherjee said: "For people to believe in the Indian state we have to increase the feeling of oneness." Although the insurgency-ridden areas produce minerals worth over Rs 99,000 crore a year, the areas suffer from what economists call a "resource curse" — rich in resources but poor in social indicators and income levels. | ||
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http://www.telegraphindia.com/1100524/jsp/frontpage/story_12481390.jsp
Win-win deal for Ambanis | |
| PIYA SINGH | |
Mumbai, May 23: The decision to call off the non-compete agreement inked between the country's richest siblings in January 2006 will throw open several new investment opportunities for the Ambani brothers. Elder brother Mukesh, however, seems better placed to take advantage of the move to dismantle this agreement that so far barred him from venturing into areas such as telecommunications, power, financial services, and media and entertainment. Many of these areas need large capital outlays. That is exactly what his Reliance Industries Ltd is looking for — business opportunities of a scale that can absorb its $4.9-billion cash pile. The group can raise additional resources from the sale of treasury stock and the massive cash flows that it is expected to generate from its gas business that was commissioned a year ago in the KG-D6 basin. By cancelling the non-compete agreement, Mukesh can start bidding for coal-based mega power projects and plunge into the telecom business that he had to cede to brother Anil. He can also foray into the financial services businesses by buying up a mutual fund or a financial services business that has synergies with his retail operations, said industry sources who declined to be named. Banking is also turning out to be an area of interest for a number of industrial groups after the government announced in this year's budget that the RBI would soon hand out more banking licences. Under the old arrangement, banking had been earmarked as a preserve of Anil "from the date on which the RBI initiates regulatory changes allowing industrial houses to establish banks". "Mukesh Ambani will soon have even more cash at his disposal. Besides the $5 billion cash on its books, the group will have an annual cash flow of $5 billion and can sell more treasury stock worth $7-$8 billion. So in one sense, it is a compulsion for RIL to look for mega projects and diversify its risks by venturing out of oil and gas, and petrochemicals," said Mumbai-based analyst S.P. Tulsian, who tracks the businesses of the brothers. "The scrapping of the non-compete agreement is significant as it will enable Mukesh to get into new areas quickly," said another industry source. Target telecom Market speculation suggests that one of the new areas that the Mukesh Ambani group can immediately target will be telecom. Reports in the media have suggested that the Mukesh Ambani group and its associates have a 13.5 per cent indirect stake in Venugopal Dhoot-owned Datacom Solutions through an elaborate layered structure. RIL has denied this development so far. The decision to scrap the pact will obviate the need for elaborate subterfuge and shadowy arrangements. "Mukesh Ambani will also be ideally poised to bid for the government's mega power projects. Anil Ambani has so far got three and cannot bid for another till one of the three is up and running," Tulsian said. The government has awarded four mega power projects so far. While the Mundra project has gone to Tata Power, Anil Ambani-controlled Reliance Power has bagged the Sasan, Krishnapatnam and Tilaiya projects. While power projects may be a window available to Mukesh, the capital-intensive nature of power generation may appeal to the group that has been scouting for acquisitions overseas. Recently, RIL through its subsidiary Reliance Marcellus got into a joint venture with US-based Atlas Energy to develop shale gas acreage in a transaction estimated at $1.7 billion. The deal followed a failed attempt to acquire bankrupt Dutch petrochemicals company Lyondell Basell despite upping its bid. At one stage, RIL was ready to pay $14.5 billion for Lyondell Basell. Anil benefits too For the Anil Ambani group, the decision to call off the non-compete arrangement, except in the case of gas-based power generation, highlights the younger Ambani's intentions to develop this business. The statement released by both groups said, "RIL has agreed not to enter into gas-based power generation business for the period up to March 31, 2022." "Anil Ambani has a one-point programme: he now has a bankable agreement to set up 10,000MW of gas-based power generation," said Tulsian. The scrapping of the non-compete agreement will also offer a major relief to Anil's Reliance Communications (R-Com). The right of first refusal that was held by the Mukesh Ambani group as far as divesting a stake in R-Com will no longer be valid. This will allow R-Com to bring on board a foreign investor, a transaction that has been attempted in the past with South Africa's MTN. The deal fell through as the Mukesh Ambani group was willing to exercise its claim on the right of first refusal in the telecom company. "That the telecom business is in a turmoil overseas and competitive pressures are damaging the bottlomlines of telecom companies in India is well known. R-Com is the only large company in its sector that does not have an overseas partner," said a Mumbai-based analyst. Last week, Vodafone had announced a $3.3-billion impairment charge on the valuation of its Indian operations that it had acquired for $11 billion in 2006. R-Com recently bid Rs 8,585 crore for 3G spectrum in 13 circles. The 3G rollout programme will entail heavy capital expenditure in the initial years. | |
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An American dilemma - Indo-Pak relations continue to frustrate the US agenda in Afghanistan | ||
| Ashok Mitra | ||
The unimportance of Hamid Karzai is a fact of life. Civilities still need to be maintained. India's prime minister, therefore, politely accepts the Afghan head of State's assurance that fullest security would be provided to Indian citizens temporarily resident in the Taliban-infested country. Karzai is in no position to ensure even his own security or that of his regime. For both, he has to depend upon American grace. Afghanistan, for all purposes, has been reduced to a colony of the United States of America, just as Iraq has been. Unfortunately, for the Americans, again, as in the case of Iraq, the newly acquired property too has a fragile quality about it. The writ of the administration presided over by Karzai and shored up by US military prowess runs only in Kabul; its hold on the rest of the country is tenuous, the Taliban are swarming practically all over the rocky hills and valleys; it is a vast stretch of no man's land. In Kabul, too, the Islamic fundamentalists have their underground cells and often launch sniper attacks, targeting foreign embassies and government buildings. So, apropos of the concern expressed by New Delhi, all that President Karzai is capable of doing is pass it on to the top brass of the US joint special operations command in Kabul for whatever action or non-action is deemed fit. Indians generally love the colour of money; whatever the shade of that colour. Americans are making huge outlays in Afghanistan aimed at setting up a solid defence infrastructure against the Taliban. They are building airstrips, helipads and army barracks, widening highways and laying new ones and installing sophisticated communications networks, apart from constructing structures for hospitals and schools. Technologists and technicians of diverse backgrounds, civil and mechanical engineers as well as skilled and unskilled workers from India have crowded in Kabul and sometimes fanned out from there, under military protection, to the outlying provinces to participate in such works in progress. When the Taliban strike, they have no particular programme to spare Indians; it would not be logistically possible to do so either. There is, of course, also the theory that whoever supports the heathen Americans deserve to perish along with the Americans. Casualties are therefore mounting among Indians, a development New Delhi cannot afford to ignore. India's prime minister communicated his government's sense of disquiet over the matter to the Afghan president, who in turn will, it is expected, convey the substance of it to the American authorities. The Americans will be full of sympathy, but will also be ready with a riposte. Yes, adequate security must be provided to the Indian personnel who are, in their own manner, offering ground support in the war against global terror in Afghanistan soil. To attain full success in that war, it is however necessary to induct troops and more troops. The bulk of the forces fighting the Taliban are Americans. The US administration is also contributing enormous funds and rendering strategic advice. Certain collateral issues nonetheless deserve consideration. A pre-election half-pledge apart, President Barack Obama is currently under intense domestic pressure to bring the boys back home from the minefields of West Asia, including from Afghanistan. The Indian government should appreciate the predicament the US is in and kindly do a bit more to assist in the fight against their common enemy. In addition to sending workers, technicians, doctors and scientists to Afghanistan, could not India despatch some troops too? India's armed forces could then directly assume responsibility for the security of Indian citizens at work there. The Americans, in fact, have been at it for several months, but without success. New Delhi has continued to be evasive on the proposal to deploy army units against the Taliban. Indian public opinion is not yet broad-minded enough. In its reckoning, armed infiltrators in Kashmir from Pakistan across the line of control are the principal, if not the only, terrorists who are candidates for confrontation and liquidation. The jingo fringe in the country would love the idea of teaching Pakistan a proper lesson by ordering troops to cross the LoC and chase would-be infiltrators all the way to Islamabad. Enthusiasm is pronouncedly much less when US diplomats suggest deployment of Indian army contingents in the rocky wilderness of Afghanistan. The mismatch between Indian and American concepts of the war on terrorism fails to dissolve. The Americans, besides, have to negotiate another awkward roadblock. The Pakistani establishment are already most unhappy with the large Indian presence in Afghanistan. They would, of course, love to see the total extermination of the Taliban. But if the price to be paid for that were arrival of Indian troops in large numbers, they would have intense second thoughts. This, then, is the great American dilemma. Foggy Bottom's several initiatives have paid off, India has abandoned its pretensions about non-alignment and is now as loyal a camp-follower of the US as Pakistan has always been. The common ground of fealty to the US cause notwithstanding, the animosity between these two major south Asian nations refuses to wither away, thereby thwarting the dream of a combined US-India-Pakistan offensive against the Taliban. The India-Pakistan imbroglio has a number of other dimensions as well impinging on US policy planning. For one, the American administration would dearly love the Pakistan army to move the bulk of its forces, currently posted along the long stretch of the Indian border, to the Afghan front. As long as the Kashmir issue keeps boiling, Pakistan would flatly refuse to comply with this request. American diplomacy is at the moment focused on persuading Islamabad and New Delhi to be 'practical' and agree to a permanent solution of the seemingly intractable Kashmir problem. The formula the Americans have in mind is for both sides to accept the LoC as the permanent border, shake hands and devote their energy and resources to other issues of equally grave, or even graver, import, specifically, the war on global terror. Pakistan, weighed down by many other troubles, will conceivably not be averse to a compromise along these lines. India, however, will have problems; decision-makers in New Delhi will have to worry about adverse domestic reaction, given the fact that for more than half a century, the country's politicians have been claiming Kashmir, the whole of it, to be an inalienable part of India. There is also very much the crucial reality: militants in the valley will hardly endorse an India-Pakistan entente that leaves them in the lurch. They will stay adamant in their demand for Azad Kashmir; turbulence in the valley may actually intensify. And the furore in the valley could rekindle dormant pro-Kashmir emotions in Pakistan too. Quiet American intermediation will be infructuous, internal developments in both India and Pakistan will frustrate the vision of a grand South Asia concordat against the abominable Taliban. The disappointed Americans will go back to the drawing board and attempt to develop a fresh road map to induce the two crony countries to see reason. While they keep trying, India and Pakistan will go on with their little games, either to embarrass each other or to gloat at each other's misfortunes. The fact that one party has discovered a mole within its own precincts — and a woman at that — will cause much jubilation to the other party. Ajmal Kasab's being sentenced to death by a court of law will evoke frenzied satisfaction in the Indian media. Proceedings of this kind will not prevent a Pakistani sports personality from picking a bride from India or a scholarly journal in India according pride of place to contributions by Pakistani social scientists. Civil liberty and women's lib groups from the two countries will visit each other and exchange earnest notes. Musicians from Lahore will cast a spell on an audience in Lucknow; film stars from Mumbai will be mobbed in Karachi. Sensible things will keep happening on the individual plane, decisions at the national level are an altogether different matter. Americans, stymied in their attempt to implement their agenda, will lament at their failure to unravel the mystery of the India-Pakistan thesis-antithesis phenomenon which appears to approach a synthesis and yet does not. | ||
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Behold Indian banking's new avatar!
24 May 2010, 0802 hrs IST,T V Mohandas Pai, |
The process started in 1999-2000 when a couple of banks signed their first core banking transformation deal with Infosys. By 2009, about 50 banks with around 55,000 branches had completed the journey, offering their customers anywhere, anytime banking across various channels. The current computerisation of regional rural banks is expected to add another 15,000 branches to this number by the year-end . Today, a consumer can go to an ATM across 44,000 locations, operate the bank account through the web, call a customer service centre for queries and never visit the branch for banking transactions.
For the banks too, the journey has been fruitful . They have scaled up, reduced the drudgery of work for their staff, despite the golden handshake and voluntary retirement schemes, increased internal efficiency and become more competitive . At the systemic level, risks have reduced since information is real time and on line, reconciliation is instant, enterprise views are available and all information is available on a single database for decision-makers . This journey has been completed at an incredibly low cost. RBI, in a recent report, said that the total cost of computerisation has been around Rs 17,900 crore (for PSU banks), or less than $4 billion, an amount a global tier-I bank spends annually.
The accompanying graphic gives a snapshot of what has been achieved in the last decade and as well as a projection for the next decade.
The banking industry has grown at a compounded annual growth rate (CAGR) of 20% over the last decade. It has grown by a factor of five times. Total deposits have grown by 4.8 times, assets by 6.6 times, interest income by 9.5 times and net worth by 4.5 times. Employee strength has grown by only 5%! This is an incredible transformation of an industry with no parallel in the country.
During 2000-09 , our gross domestic product (GDP) nearly trebled from Rs 19,25,000 crore to Rs 54,75,000 crore, return on assets (RoA), which varies between 0.25% and 1.5% worldwide , has risen from 0.87% in 2000 to 1.0% in 2009, in the country. At 1.4%, the net non-performing assets (NPA) ratio is a far cry from the 6% level 10 years ago.
In contrast to most countries, in India, retail deposits form a sizeable chunk of gross domestic savings, creating a large potential for investment .
The ratio of total deposits-to-GDP , which stood at 44% in 2000, has now climbed to 74%. However, the credit-to-GDP ratio presents an opposite picture, and India, at 55%, lags many countries whose banks lend more than the size of their economies. We also have to catch up with the world's best-run banks in the area of cost management — at anywhere between 37% and 66%, our cost-income ratio is no match for international benchmarks of 30-35 %.
This transformation has been enabled by Indian technology, and domestic IT companies deserve all the credit for creating a world-leading banking industry.
Looking forward, the journey becomes even more remarkable, possibly only because of the technology transformation that the banking sector has undergone.
The accompanying graphic provides our projection of how these indicators will progress over the next 10 years. We expect the banking industry to continue its growth, even if it grows at a CAGR of 16% over the next decade, total deposits are expected to grow by about 5.2 times, assets by 6.2 times, interest income by 7.3 times and net worth by 5 times. Considering the continuous investments in improving efficiency and productivity , the staff strength could grow by 25%.
The projected growth in GDP at, say, 8% per year with an inflation of 5%, making a nominal growth of 13%, is expected to have a positive impact on the banking growth. Both the core businesses of lending and deposit-taking will continue to run strong, and potentially exceed the country's GDP.
Profitability can go up substantially to 1.5% RoA provided our banks work their capital and assets more efficiently by attracting low interestbearing deposits, lending at attractive rates to creditworthy customers and generating higher fee income through services.
Obviously, a jump of 50 basis points on RoA can only come through substantial improvement in operating efficiency, capital deployment and cost management. The good news, if you can call it that, is that our high cost-income ratios provide much scope for improvement.
Although impressive, these numbers pale when compared to the projected growth in the customer base. As per our estimates, Indian banks will add another 400 million customer accounts in the next decade. The focus on financial inclusion will deepen with the government and the industry working together. This has enormous implications for the industry, which must scale up systems, processes and infrastructure as well as boost employee productivity to manage such growth. Likewise, the industry must change its mindset and innovate all-round to cater to the unique needs of the next-generation consumer . As per demographic projections, in 2019, 450 million Indians will be below the age of 20.
On the flip side, the growth in lending driven by this exploding customer base will come at a greater risk, since no amount of stringent regulation and due diligence can totally filter out subprime customers. The march towards higher RoA will face resistance in the form of greater loan delinquency. But even as we project a better NPA ratio of 1% in 2019, we believe that robust risk-mitigation technology can prevent most undesirable occurrences and tilt the risk-reward equation in favour of the latter. Looking ahead: The silent banking revolution of the past has set the stage for exciting times, filled with challenges and opportunities. The next decade promises much for those that adapt well to the changing market dynamics wrought by a young, tech-savvy and demanding generation.
Indian banks will have to reconcile the seemingly-opposite goals of aggressive and prudent business growth. While the former will bring more business and profitability, we anticipate that it will be accompanied by a somewhat-higher loan delinquency. The importance of sound risk-mitigation practices cannot be overstated.
The rise of ubiquitous and mass-market retail banking and entry of non-traditional players will improve consumer's access to financial services . Both banking organisations and consumers will collaborate more. And banking will wear a totally new look as urban consumers use their hand-held devices in lieu of cash, and their rural counterparts discover the benefits of smart cards and other plastic technologies.
(T V Mohandas Pai is a member of the board at Infosys Technologies. Co-authored with Rajashekara V Maiya, lead product manager for product strategy, Finacle, at Infosys)
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| Editorial Let the sun in...India The solar energy sector is in a mess and therefore the government should urgently spell out its policies on tariff, regulatory agencies and incentives. Pharma on a highShall MNCs buy away all Indian pharma successes? Colours of terrorism: Hindu, Muslim Indian society must now accept the fact that 'Hindu' terrorism is as real as the 'Islamic' one. | |||
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Fed up, BJP decides it has had enough | ||
| SUMAN K. SHRIVASTAVA AND SHASHANK SHEKHAR | ||
Ranchi/Bokaro, May 23: After days of political drama, a cornered BJP today finally decided to withdraw support to the Shibu Soren government, two days ahead of a parliamentary board meeting of the party. In a late evening development, BJP sought appointment with Governor M..H. Farook at 11.30am tomorrow to submit the letter of withdrawal. Raj Bhavan sources said former Rajya Sabha MP Ajay Maroo contacted them over telephone for an appointment. "However, we told him to request in writing tomorrow," said a Raj Bhavan official. On April 29, the Raj Bhavan was kept waiting by the BJP on the same issue. The move comes as a setback for BJP national general secretary Arjun Munda who had wanted to "complete the mission" he had been entrusted with after Soren had assured that he would quit. It is, however, a victory of sorts for deputy chief mister Raghubar Das, who does not exactly see eye to eye with Munda. BJP state spokesman Sanjay Seth confirmed the development, and according to party sources, the decision was taken by Rajnath Singh following discussions with party chief Nitin Gadkari, who is holidaying abroad. Singh is said to have spoken to BJP Jharkhand in-charge Karuna Shukla and Munda before directing Das to hand over the withdrawal letter to the governor. The BJP leadership's decision to withdraw support ahead of tomorrow's deadline, however, surprised many within the party. "It is again a hasty decision. The leadership should have waited till 4pm tomorrow to see if Soren handed over the reins or not," said a senior BJP leader requesting anonymity. Earlier in the day, the JMM called a meeting of party MLAs tomorrow to take a final decision, a day ahead of a deadline set for Soren to step down. JMM legislature party leader Hemant Soren told The Telegraph that Guruji had summoned all party MLAs to take the "final decision" on government formation. The chief minister, who had been camping in Bokaro since May 20, returned to the state capital late this evening. Denying that the JMM was in talks with the Congress for government formation, Hemant said that everything would be clear tomorrow. Soren senior said he had already taken all his MLAs into confidence for the final decision, ruling out the possibility of revolt within the party irrespective of who he tied up with. Meanwhile, four party MLAs — Simon Marandi, Teklal Mahto, Lobin Hembrom and Nalin Soren — who were camping in Delhi, were returning tomorrow after Congress leaders refused to talk to them. Simon confirmed that they had failed to get an appointment with any Congress leader. Seraikela MLA Champai Soren, who too was planning to move to the national capital along with a few party MLAs, said they would let Guruji know about their stand tomorrow. According to sources, the JMM had expected Babulal Marandi to dissociate himself from the Congress at the party conclave, which he did not do, forcing a rethink in the JMM. State Congress chief spokesman Radha Krishna Kishore also said the Congress would embark on the exercise of forming the government with JMM only after it snapped ties with BJP. "We have not worked out any formula. It will be decided only after Soren comes out of the NDA," he maintained. Speaking to The Telegraph before leaving Bokaro for Ranchi, Soren said leaders of a few political parties probably thought he was a spent force and would not be able to carry on as chief minister after May 25. "They should note that I have been offered a Union cabinet berth two days ago. But as my party MLAs want me to continue as chief minister, I am discussing the issue within the party and not getting carried away," Soren said. While leader of the Opposition Rajendra Singh met Soren at his Bokaro residence, the chief minister was aware that even a single wrong move would jeopardise his chances of remaining the number one politician in the state. Soren made it clear that no government could be formed in the state without JMM support and hence the party wanted to be in the driver's seat. "I know what is wrong and right for the state. I am fully aware how this political crisis was created, giving the BJP a chance to raise fingers at me and who was responsible for this misdeed. But now I am thinking twice before taking any step," Soren said. "I have worked for the betterment of Jharkhand and know my position in the party and also what the other leaders are up to. I came to Bokaro to think what was the right path for the party to take," said Guruji and blamed the media for creating confusion and blowing the episode out of proportion. While Hemant could not be contacted for his comments after BJP announced it was withdrawing support, JMM organisational secretary Supriyo Bhattacharya said the decision was not unexpected. |
Ambanis to compete & let live - Brothers agree to bury hatchet in the name of the father | |
| OUR SPECIAL CORRESPONDENT | |
Mumbai, May 23: The scrapping Ambani brothers have called a truce, agreeing to abandon a set of non-competition arrangements that were reached in January 2006. After the New Deal between the brothers, the exclusive domains of operation earmarked under the contours of a settlement drawn up by mother Kokilaben carving up Dhirubhai's empire stand abolished. This means they are free to compete — or fight in the marketplace — in all areas except gas-based power generation that has been demarcated as an exclusive preserve for the Anil camp until March 31, 2022, respecting the 17-year exclusivity period set out under the old arrangement. In identical press releases, the two sides said they had entered into a "simpler, non-compete agreement with respect to only gas-based power generation", vowing to fulfil the vision of their father, Dhirubhai. The agreements have been reached between the operating companies: Reliance Industries in the Mukesh camp, and four Anil Dhirubhai Ambani group companies — Reliance Communications, Reliance Infrastructure Ltd, Reliance Natural Resources Ltd, and Reliance Capital. All these companies were signatories to the earlier arrangement as well. The Anil group, however, had contested several provisions of the old agreement because the non-compete pact had been signed when all the companies were still nominally under the control of Reliance Industries (RIL). The "rapprochement" comes a fortnight after a Supreme Court verdict that upheld the government's ownership of the gas pumped out of the Krishna-Godavari basin and its right to decide who could receive it and at what price. Sunday's arrangement will allow RIL to dip into its nearly $5-billion cash chest and invest it in areas from which the Mukesh camp was barred till 2016. "The decision to scrap the non-compete agreement between the two brothers will remove several problems of interpretation over this agreement that impacted the business decisions of both the groups. For instance, Reliance Industries will now be able to sell telecom products along with grocery items through its retail outlets," analyst S.P. Tulsian said. The press releases said RIL and Reliance Natural Resources Ltd (RNRL) "will expeditiously negotiate gas supply arrangement in accordance with the orders of the Supreme Court…. We hope to conclude these negotiations very soon." The two sides hoped that the steps taken would "eliminate any room for further disputes between the two groups". The fight had gone out of Anil after the verdict. The Mukesh camp had also sent out clear signals that it wished to settle the dispute once for all. Both brothers had met Prime Minister Manmohan Singh and initiated peace talks. The non-compete arrangement had marked out telecom, power generation and distribution, financial services including banking and insurance, media and entertainment, city gas distribution in Mumbai and Delhi and airport infrastructure for the younger Anil. It had earmarked oil and gas exploration, petroleum refining, petrochemicals and textiles exclusively for the Mukesh camp. | |
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Bangalore, May 24 -- The indigenously built light combat helicopter (LCH) debuted in the skies on Sunday. But the Mangalore crash cast its shadow on its maiden flight as defence minister AK Antony and his junior colleague MM Pallam Raju called off their visit to Bangalore.
Hindustan Aeronautics Limited (HAL) began work on the LCH in 2006. It will be ready for induction in the army and air force by 2014-15, said R Srinivasan, who heads HAL's Helicopter Complex.
The heavily armoured helicopter is a bit obese. The 5.8-tonne helicopter has turned out to be 300 kg heavier than planned. HAL's designers are now figuring out ways to cut down its weight so it can carry a higher weapons payload.
"We have been able to reduce the LCH's weight by 180 kg. The second prototype, to be flown in August, will be 90 kg lighter. The third will have no extra weight when it flies in December," Srinivasan said.
With the LCH, India joins a league of countries - the US, Russia, China, Italy and South Africa - that have built attack helicopters.
| Monday May 24, 03:00 PM | |
PM defends against leadership criticisms
By Paul de Bendern and Krittivas Mukherjee
NEW DELHI (Reuters) - Prime Minister Manmohan Singh said on Monday he failed to do enough in his first year, but defended himself against criticisms of weak leadership and said progress would soon be made on concerns like high inflation.
Inflation would moderate to around 5 to 6 percent in December, he said. Inflation is running at nearly 10 percent and is a major worry for the government as it has raised prices of basic foods and increased the chance of interest rate hikes.
Singh, who is 77 and underwent heart surgery last year, spent much of a rare 90 minute news conference fending off questions over his leadership after a series of crises ate into his parliamentary majority and stalled many reform bills.
Often seen as the "reluctant" prime minister appointed by Congress party head Sonia Gandhi in 2004, Singh said he was not thinking of retirement. But he hinted he could eventually make way for family scion Rahul Gandhi.
Despite being freed from the shackles of needing communist support in the second term, his government has floundered on inflation, struggled against a Maoist insurgency, and managed its political allies so badly its substantial parliamentary majority dwindled.
"I would be the first person to admit that we could have done more," Singh said in a statement given during a rare news conference in New Delhi to mark the first year since the Congress-led coalition government was reelected to a second term.
"The work is incomplete right now," Singh said later at the news conference and with that the case "there is no question of retirement."
Singh has disappointed many investors with a slow pace of reforms that investors say are needed to ensure India can sustain fast economic growth and compete with the likes of China.
The press conference was one of only a handful he has given since first coming to power in 2004. It appeared an attempt to show he was pushing policies rather than reacting to problems ranging from the global credit crunch to a cricket corruption scandal.
Singh touched upon issues varying from economic growth to Pakistan diplomacy and the question of his succession.
But he gave nothing new away, in line with his image of a reticent politician who is uncomfortable both with 21st century PR techniques and calls for faster action on policies.
"I sometimes feel younger people should take over ... I would be very happy to make place for anybody the Congress party chooses," he said, responding to a question on whether he was willing to make way for Rahul Gandhi.
"Rahul is very qualified to hold a Cabinet post," Singh said. The prime minister added he had asked Gandhi several times to join the government cabinet, but he had so far refused.
The share and bond markets showed little reaction to the conference and the benchmark 10-year bond yield was unchanged at 7.42 percent
TRYING TO SET AGENDA?
Outlining government policy, Singh said India was willing to discuss all "outstanding issues" with nuclear foe Pakistan, implicitly suggesting the government would talk to Islamabad about the dispute over Kashmir critical to the countries' relations.
It was another sign of New Delhi softening its approach to Islamabad after the 2008 Mumbai attacks when Pakistan-based militants killed 166 people.
"India cannot realise its full development potential unless we have the best possible relations with our neighbours, and Pakistan happens to be the largest neighbour of ours," he said. "The trust gap is biggest problem."
Singh said he had been assured India would get access to David Headley, a Chicago man who pleaded guilty of working with the Pakistan-based Lashkar-e-Taiba to plan the strike. New Delhi says it could get more information on militant networks targeting India if it was allowed to interrogate Headley.
Singh said he hoped political parties would pass a delayed nuclear liability bill needed to allow entry of U.S. atomic energy firms into India.
He said the central government along with state governments would take more steps to battle inflation, and that he sees growth in 2010/11 rising to 8.5 percent.
Despite investor criticism, the government has won praise for a sound fiscal policy that has helped protect India from the worst of the global credit crisis. Growth is one of the fastest in the world and there have been some tentative steps to reforms.
Many investors remain optimistic India eventually will take steps to open the insurance, banking and retail sectors to overseas players, and India still attracts many foreign firms.
(Added reporting by Nigam Prusty; Writing by Alistair Scrutton; Editing by Jerry Norton)
(For more business news on Reuters Money visit http://www.reutersmoney.in)
| Monday May 24, 12:40 PM | |
India PC sales rise 33 pct in Jan-March - IDC
 |
MUMBAI (Reuters) - Sales of personal computers (PCs) in India rose 33 percent during the first three months of this year from a year ago, spurred by consumer confidence and a revival in IT spends, research firm IDC said on Monday.
Sales of desktop computers, which accounted for about two-thirds of the total PC sales of 2.2 million units in the quarter, rose 18 percent to 1.4 million units.
Notebook computer sales surged 72 percent 803,000 units.
"This performance underscores a more broad-based recovery in the India PC market," Anirban Banerjee, associate vice president, research, at IDC India said in a note.
The consumer segment saw PC sales jump 42 percent in the quarter, while shipments to the commercial segment rose 28 percent, IDC said.
For the fiscal year ended March, computer sales revived to record a 7.6 percent rise, from a 8.1 percent decline a year earlier, IDC added.
Hewlett-Packard held on to its top slot in the overall PC market with a market share of 16.5 percent, followed by Dell Inc and Acer with 13.6 percent and 13 percent market share respectively.
(Reporting by Bharghavi Nagaraju; Editing by Harish Nambiar)
(For more business news on Reuters Money visit http://www.reutersmoney.in)
| Monday May 24, 12:50 PM | |
HIGHLIGHTS - PM's news conference
 |
NEW DELHI (Reuters) - Prime Minister Manmohan Singh gave his rare news conference on Monday to mark the ruling coalition's first year in office.
Following are the highlights of Prime Minister Manmohan Singh's news conference:
ECONOMY
* Containing inflation is the government's top priority and it will take more steps together with state governments to tame prices
* Although high prices are a matter of concern, they are showing signs of moderation
* Expects inflation to moderate to 5-6 percent by December 2010 from near 10 percent currently
* Government expects the economy to grow 8.5 percent in the current fiscal year that started on April 1, after growing at an expected 7.2 percent in 2009/10
* Annual economic growth of 10 percent needed in the medium term to address problems of poverty and malnutrition in the country
DIPLOMACY
* India is willing to discuss all outstanding issues with Pakistan, a clear sign of the government softening its stance since it paused a "peace process" after the 2008 Mumbai attacks
* Says India will move forward on the 2008 landmark civilian nuclear agreement with the United States, which ended the country's nuclear isolation
* Prime Minister Singh hopes all political parties will support on nuclear liability bill, which will ease entry of U.S. firms into the country's $150-billion nuclear market
POLITICS
* Despite criticism from opposition parties and speculation about his retirement, Prime Minister Singh said there was no question of him retiring before completing the task given to him by his party
* The Prime Minister said all reports of government misusing the federal police agency to attack political rivals and to win over key allies, who have corruption cases pending against them, are untrue
SECURITY
* United States has assured India access to David Headley soon, arrested in the U.S. in March for scouting targets in Mumbai, ahead of the November 2008 terror attacks
(Compiled by Bappa Majumdar, Rajesh Kumar Singh and Abhijit Neogy; editing by Malini Menon)
(For more business news on Reuters Money visit http://www.reutersmoney.in)
| Monday May 24, 01:20 PM | |
China avoids commitment to U.S. on currency
 |
By Arshad Mohammed and Glenn Somerville
BEIJING (Reuters) - China struck a conciliatory note at the opening of talks with the United States on Monday by vowing to spur domestic demand and keeping a guarded opening to exchange rate reform, which the Obama administration says is needed to rebalance the global economy.
The United States treaded softly on the subject and welcomed Beijing's long-standing pledge to reform the yuan as the two sides held their second Strategic and Economic Dialogue.
The one slight point of discord were U.S. calls for a tougher line against North Korea over an alleged sinking of a South Korean warship, contrasting with China's appeals for restraint.
The world's biggest and third-biggest economies are seeking to steady relations after a burst of tensions early this year. While Chinese President Hu Jintao broke no new ground on the currency dispute that has divided them, he set an amicable tone for the two days of talks.
"China will continue to steadily advance reform of the renminbi exchange rate formation mechanism following the principles of being independent, controllable and gradual," he said. The renminbi is another name for the yuan.
Hu said his government wanted to expand domestic demand to create more balanced growth, something that Washington -- worried about its yawning trade deficit with China -- has also advocated.
Yuan special coverage, click http://china.thomsonreuters.com/yuan/
At the meeting, U.S. Treasury Secretary Timothy Geithner appealed to Beijing to work together to reduce trade barriers and develop a more balanced global economy.
On the yuan, which has been effectively pegged to the dollar since the global financial crisis worsened in mid-2008, Geithner said the Chinese government was moving in the right direction.
"We welcome the fact that China's leaders have recognized that reform of the exchange rate is an important part of their broader reform agenda," he said.
Trying to press the case that yuan appreciation would be in China's own interest, Geithner said that a more market-driven exchange rate would help suppress inflation while also driving private firms to move up the value chain.
PRESSING NORTH KOREA
The vows of closer economic coordination were partly offset by U.S. Secretary of State Hillary Clinton's effort to coax China into joining international pressure on North Korea after South Korea found it responsible for torpedoing its warship in late March, killing 46 sailors.
China is the sole major backer of North Korea, and has not publicly criticised Pyongyang over the alleged sinking, instead issuing broad calls for restraint. Earlier this month, China hosted the North's leader, Kim Jong-il, on a visit.
"We must work together to address this challenge and advance our shared objectives for peace and stability on the Korean peninsula," Clinton told the meeting.
Tensions flared between Beijing and Washington in the first months of 2010, when China denounced U.S. criticism of its Internet censorship, Washington's arms sales to Taiwan, and President Barack Obama's meeting with the Dalai Lama, Tibet's exiled leader.
Beijing considers Taiwan a part of its territory, and Hu said on Monday that it was important for countries to respect one another's sovereignty.
Beijing officials have said they want only "quiet discussion" of U.S. complaints that the Chinese currency is held too low in value, giving Chinese manufacturers an unfair advantage.
The Obama administration so far appears willing to go along in the hope that a quieter approach will give Beijing more political space to let its currency appreciate.
Zhang Xiaoqiang, vice chairman of the National Development and Reform Commission, told a news conference that the euro, not the yuan, had come up for discussion in the opening session of the dialogue.
"With uncertainties over the impact of the European sovereign debt crisis, we believe that we must be cautious about the choice of timing of exit strategies," he told a news briefing.
The annual U.S. trade deficit with China fell to $226.8 billion in 2009 from a record $268.0 billion in 2008. But the Obama administration is keen to lift exports, and the deficit remains a point of friction with Beijing.
U.S. officials have sought to concentrate attention on policies they claim may unfairly impede U.S. companies hunting for customers in China.
(Additional reporting by Chris Buckley; Editing by Nick Macfie and Ken Wills)
| Monday May 24, 12:10 PM | |
INSTANT VIEW - Taming prices a priority - PM
 |
MUMBAI (Reuters) - The government attaches the highest priority on containing inflation, according to Prime Minister Manmohan Singh's draft speech on Monday.
Singh was speaking at a rare news conference in New Delhi marking the first year since the Congress-led coalition government was reelected to a second term.
It is only one of a handful of full press conferences he has given since first coming to power in 2004.
COMMENTARY:
ARUN KEJRIWAL, DIRECTOR OF RESEARCH FIRM KRIS IN MUMBAI
"What they are expecting and what the reality is ...are two different things. It does not look like inflation will come down to 5-6 percent by December."
SUJAN HAJRA, CHIEF ECONOMIST, ANAND RATHI FIN SERVICES, MUMBAI:
"My estimate is 5 to 6 percent by December and 4 to 5 percent by March 2011. If you look at food prices, the inflation was 22 percent in November, which has come down to 14-15 percent now."
"Going forward, we see it coming down further. This inflation will come off very significantly. Food, both manufacturing and primary, has a 26 percent weightage which is close to 6 percentage points for food."
ANJALI VERMA, ECONOMIST, MF GLOBAL, MUMBAI:
"Inflation at 6 percent by December is possible as food inflation should fall assuming that the monsoon is going to be normal as per the forecast. Also assuming that global economy does not recover substantially, commodity prices will remain muted and keep manufactured commodity prices contained."
RUPA REGE NITSURE, CHIEF ECONOMIST, BANK OF BARODA, MUMBAI:
"Going by the current trends in non-food price inflation and uncertainty about fuel prices, it looks difficult for India to see inflation coming down to 5 percent by December."
MARKET REACTION:
The yield on the benchmark 10-year 7.80 percent 2020 bond was steady at 7.43 percent from before the prime minister's comment on inflation, growth. The 2020 bond had ended at 7.38 percent on Friday. The partially convertible rupee was steady at 46.65/66 per dollar from beforehand. It had ended at 46.95/96 on Friday.
The benchmark five-year overnight indexed swap was at 6.40/44 percent. It had ended at 6.36/38 percent on Friday.
The benchmark BSE (^BSESN : 16469.55 +23.94) share index was at 16,655.69 points, up/down 1.2 percent from Friday.
BACKGROUND:
- India's food price index rose 16.49 percent in the year to May 8, while the fuel price index rose 12.33 percent. Food prices inched up compared with the previous week's annual rise of 16.44 percent, while fuel prices held steady.
- Wholesale prices, the most closely watched inflation gauge in India, eased in line with expectations to 9.59 percent in April from a year earlier.
- Industrial output in March grew in double digits for the sixth straight month, rising an annual 13.5 percent, providing further evidence of a strong rebound in the economy.
- A robust economic growth has raised the prospects of capacity constraints, which are seen aggravating price pressures.
- The central bank has described the inflationary situation as "worrisome" with asset prices and demand pressures picking up.
- The Reserve Bank of India (RBI) has raised key rates by a total of 50 basis points since mid-March, and analysts expect a 25 basis points rise on July 27 when it reviews policy.
- Subir Gokarn, a deputy governor at the RBI, has said manufacturing inflation would determine the central bank's future policy moves.
- The RBI expects inflation to ease around mid-2010 on a normal monsoon and moderation in food prices and has forecast the March 2011 WPI inflation at 5.5 percent.
- The economy is expected to expand 8.5 percent in the current fiscal year that started on April 1, after an estimated growth of 7.2 percent in the previous year.
(Reporting by India Treasury Team; Editing by Ramya Venugopal)
(For more business news on Reuters Money visit http://www.reutersmoney.in)
| Monday May 24, 01:35 AM | Source: Indian Express Finance |
Settlement a boon for economy, capital mkts
By Nistula HebbarAt the Express Group's Idea Exchange programme in August 2009, finance minister Pranab Mukherjee had urged the Ambani brothers to settle their dispute soon in the larger interest of the nation and the capital markets.
"That is why the Prime Minister himself has said that both of them should try to sort out their issues."
On Sunday as the two brothers found their way to a rapprochement, this was the dominant theme in Delhi's political circles. The settlement will help the economy and capital markets, ministers said. Besides, the fight had divided parties and government, with several government ministers taking sides. "All that hopefully will end now," said a relieved senior minister in the government. But none of them were willing to come on quote, preferring to wait for the government or the parties to react.
Prime Minister Manmohan Singh will address a national press conference on Monday, the first after assuming office in his second term and it is expected the developments could figure among the topics.
Sources close to the developments say that the agreement was in the works a week after the Supreme Court judgement on the RIL (RELIANCE.NS : 1022.65 +27.1)-RNRL (RNRL.NS : 54.6 +10.1) gas pricing issue. "After an initial booster even RIL shares started feeling the heat," said a senior minister.
Within a week of the judgement, Anil Ambani, chairman of his eponymous group made a visit to Prime Minister Manmohan Singh's office. His visit was followed within a week by elder brother Mukesh Ambani, too.
While PMO sources confirm that these meetings took place, they added that the Prime Minister had kept himself aloof from India's top corporate battle.
Not so much his council of ministers who felt increasingly uncomfortable with it.
"During the court case, while everyone knew that the government's stand was strong, the impression that the government appeared to be batting for one brother against the other was upsetting to many," said a source. Petroleum minister Murli Deora, who in his previous avatar as president of the Mumbai Congress Committee had good relations with the late Dhirubhai Ambani was attacked in Parliament for partisan behavior in the matter.
"This was as bad as the rumoured fight between two Bollywood superstars, which divided the place into camps," said an opposition MP.
"After the climax of the court verdict both brothers discovered that they had to get across each other on the negotiating table, and this is where the talk of a rapproachment began," said the minister.
It is no secret that many Congress and even BJP leaders are close to the two brothers and may have conveyed some of these sentiments.
"But ultimately it was business sense that drove this, which will be borne out when the market opens tomorrow morning," said another party source.
The last word on this was put succinctly by a senior Rajya Sabha MP from the opposition ranks. "I have some ADAG shares which tanked in the last two weeks, hopefully I will be able to recover my money," he said. That is the bottomline.
| Wednesday May 19, 09:11 PM | |
RBI head says inflation is worrisome
 |
By Suvashree Dey Choudhury
THIRUVANANTHAPURAM, India (Reuters) - Reserve Bank of India's chief on Wednesday said inflation is worrisome, as asset prices and demand side pressures build and rural incomes pick up in an improving economy.
The RBI raised key interest rates by 25 basis points in March and again in April, and is expected to tighten monetary policy further at its next quarterly review in July.
"Generally there is a resurgence in positive sentiment. The big worry though is inflation. Demand side pressures are building up, supply side pressures have yielded to demand side pressures. Asset prices are picking up rapidly," he said.
Wholesale prices in April rose 9.59 percent from a year earlier, data showed last week, easing slightly from 9.9 percent in March.
"There is talk about structural inflation because income levels are rising in rural areas," RBI Governor Duvvuri Subbarao said in a speech to bankers in Thiruvananthapuram.
At the RBI's policy review last month, Subbarao also expressed worry about inflation.
Subbarao said the final wholesale inflation rate for March could hit double digits after an official revision. Revised inflation for February exceeded 10 percent.
"The final inflation rate for March, if revised, may touch double digits," he said.
February's inflation was the highest since October 2008. The central bank hopes inflation eases to 5.5 percent by the end of the fiscal year in March 2011.
While food and fuel inflation remain in double digits, manufacturing inflation, which the central bank has said would determine its policy response, fell in April to 6.70 percent from 7.13 percent in March.
Subbarao said economic growth is consolidating and is broad-based in India, with improving conditions for funding industrial demand.
"As we enter 2010/11, we see growth drivers are diversifying and growth is coming from sectors outside the stimulus," he said.
(Writing by Anurag Joshi; Editing by Tony Munroe and Surojit Gupta)
(For more business news on Reuters Money visit http://www.reutersmoney.in)
| Tuesday May 18, 05:08 PM | Source: Indian Express Finance |
'Non-financial services net may rise 22%'
By AgenciesOn the back of the global economic and an expected quantum jump in the sales of the shipping, software and hotel industry, non-financial services are likely to clock an around 22 per cent growth in their net profits, an economic think-tank said.
Alongside, PAT margins are also expected to surge by 0.50 per cent, it said.
"We expect the growth in net profits of the non-financial services sector to accelerate to 21.9 per cent in 2010-11 from the 8.7 per cent estimated in 2009-10," the Centre for Monitoring Indian Economy (CMIE) said in its recent forecast on the domestic economy.
The growth would be driven by a 16.5 per cent rise in sales, it said, adding the PAT margins too would expand by 0.50 per cent.
CMIE said that shipping, software and hotel industries would benefit from the improvement in the global economy and this would lead to these sectors posting a robust growth of 18 per cent, 39.6 per cent and 30.8 per cent in sales, respectively.
| Monday May 24, 09:30 PM | |
Oil rises above $70, pessimism lingers
 |
By Alex Lawler
LONDON (Reuters) - U.S. crude rose above $70 a barrel on Monday, recouping some of last week's losses, but analysts said sentiment remained fragile and prices could again be hit by macroeconomic pessimism.
The euro fell broadly on Monday, pulling back from gains last week, after the Spanish central bank's takeover of a savings bank added to jitters about debt problems in some of the weaker euro zone economies.
U.S. crude rose 23 cents to $70.27 a barrel by 1342 GMT. Brent crude was down 20 cents at $71.48.
Oil in New York has fallen steeply from a 2010 high of $87.15 reached in early May. It touched a low of $64.24 on May 20 -- the weakest for a nearby contract since July 2009.
"We've made a long correction already, and one should expect to see a little bit of congestion around current levels while we wait to see what direction the global markets take," said Olivier Jakob, oil analyst at Petromatrix.
The euro was on the back foot after the Bank of Spain said on Saturday it had taken control of CajaSur following the failure of its planned merger with another regional lender.
The move highlighted the weakness of the banking sectors of some euro zone members, which are already suffering from fiscal problems and struggling to bring down their budget deficits.
Oil markets remain well supplied with the Organization of the Petroleum Exporting Countries pumping about 2 million barrels per day (bpd) above agreed output targets.
"The fundamentals of oil haven't suddenly changed. There's still plenty of oil about," said Rob Montefusco, a commodity broker at Sucden Financial.
Crude stocks at the delivery hub for U.S. futures contracts in Cushing, Oklahoma are at a record high.
While oil is just below the $70-$80 range many in OPEC have said they prefer, OPEC officials have stopped short of calling for any steps to prop up prices and the group is not scheduled to meet until October.
Some in the oil market expect prices to recover given the demand coming from emerging economies.
World oil demand is expected to rise by 1.62 million barrels per day (bpd) in 2010, led by emerging economies such as China, according to the International Energy Agency. Global consumption declined in 2009.
"I think the weakness last week was a bit overdone when you look at the incredibly strong demand data from China," said Christopher Bellew, a broker at Bache Commodities. "It probably won't stay down here too long."
(Reporting by Alex Lawler and Fayen Wong in Perth; Editing by Amanda Cooper)
Business
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Nissan Micra production kickstarts in India Business Standard Press Trust of India - iCars Singapore - just-auto.com (subscription) Email this storyDirect Taxes Code revised draft in JuneHindu Business Line - - 27 minutes ago The Centre will come out with a draft revised version of the Direct Taxes Code (DTC) for public consultation by the first week of June, according to the Secretary, Department of Revenue, Union Ministry of Finance, Mr Sunil Mitra. Revised DTC draft in first week of June: Mitra Press Trust of India One charger for all mobile phones soon to hit the marketEconomic Times - 6 hours ago HYDERABAD: An energy efficient standard charger for all mobile phones will soon be introduced in the global market, said International Telecommunication Union (ITU), a leading United Nations agency for Information and Communication Technologies (ICT) ... 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