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FDI will benefit economy, country: Chidambaram

NEW DELHI: Cautioning that absence of economic reforms will slow down growth, Finance Minister P. Chidambaram on Monday said political parties may oppose but should not obstruct decision-making.

“Every government is entitled to lay down policies. Opposition to policies is legitimate, obstructionism is not,” Chidambaram said while addressing the annual Economic Editors’ Conference.

“The government of the day must be allowed to lay down policies, pass legislations wherever necessary, and get on with the job of implementing those policies,” he added.

Noting that these were challenging times, the minister said, “Without reforms, we risk a sharp and continuing slowdown of the economy, which we cannot afford given the imperative need to generate jobs and incomes for a large population, most of whom are young.” 

India’s economic growth during 2011-12 slipped to nine-year low of 6.5 per cent and during the first quarter of the current fiscal it was 5.5 per cent.

Expressing confidence that with requisite savings and investments India’s economic growth rate will recover to 8 per cent and more, and perhaps touch 9 per cent, Chidambaram said, “We should keep that rate of growth as our objective and progress towards achieving that objective.” 

“Long standing structural reforms required to achieve high investment and high growth rates have been held back because of many reasons.

“Among them are the needs to forge a consensus on reforms, the practical necessity to garner support across the political spectrum to pass legislation... Nevertheless we are now addressing the difficult areas of reforms”, he added. 

Referring to the government decision to allow FDI in multi-brand retail, Chidambaram said, “We must not fear foreign investments in India. We have the sovereign right to decide where and how foreign investments would be allowed into India.” 

The decisions to allow foreign investment should not be tested on the basis of undefined ideology or theory, but on a clear-headed assessment of the advantages that would accrue to India, he said.

“I have no doubt...FDI in retail, aviation and FM radio broadcasting is decisions that will benefit the economy and the country,” he added.

Chidambaram also underlined the need for containing inflation and said that appreciating value of the rupee would help in brining down the cost of imported crude, petroleum products and fertilisers.

“The value of rupee is an important factor that affects the value of imports. A depreciating rupee will also impact trade and investment. Hence, the need to stabilise the exchange rate. I believe that we have met with moderate success,” the Minister said.

The other important task before the government was to contain fiscal deficit, he said, adding, “No one will have confidence in the Indian economy if there is uncertainty about the fiscal stability of the country.” — PTI

Cauvery: PM meets Karnataka Congress leaders

NEW DELHI: Prime Minister Manmohan Singh on Monday held consultations with Congress leaders from Karnataka on sharing of Cauvery waters with Tamil Nadu during which they told him about the “grim” situation in Karnataka.

External Affairs Minister S.M. Krishna, Labour Minister Mallikarjun Kharge, Minister of State for Railways K.H. Munniyappa along with Water Resources Minister Pawan Kumar Bansal met the Prime Minister at his South Block office in Delhi.

“We requested him to resolve the problem at the earliest...based on the report of the expert committee...He has to take a considered decision...The situation is very grim. That is why we have asked the Prime Minister to resolve the situation,” Mr. Kharge told reporters after the meeting.

He said the party leaders also explained to Dr. Singh the drinking water situation, particularly in Bangalore, Mandya, Hassan and Mysore as well as the standing crops, which are facing water scarcity.

Asked about the interests of Tamil Nadu being taken into account, he said the Prime Minister will look into the interests of “everybody.” 

“Rainy season is over in Cauvery basin in Karnataka. Monsoon will begin in Tamil Nadu. The priority has to be drinking water, whichever is the State. The Cauvery Monitoring Committee (CMC) has to place the factual situation. Based on that the Prime Minister will take a decision,” Mr. Muniyappa said.

The Cauvery River Authority, chaired by the Prime Minister, had recently directed Karnataka to release 9000 cusecs of water to Tamil Nadu between September 20 and October 15 on a daily basis. The future flow will be decided by CMC. — PTI

Asha Bhosle’s daughter commits suicide

MUMBAI: Varsha Bhosle, daughter of veteran Bollywood singer Asha Bhosle, on Monday committed suicide by shooting herself with a revolver at her home in south Mumbai, police said.

Varsha, a singer and columnist, who was in her mid 50s, had attempted suicide earlier on at least two occasions, they said.

She was rushed to a nearby hospital where she was declared dead, they said.

The body would be taken to JJ Hospital for post mortem, the sources said.

Varsha had worked as a playback singer in some Hindi and Marathi movies and appeared in concerts with her mother. — PTI

Protesters lay siege to TN N-plant

Madurai: Stepping up their protest against the Kudankulam Nuclear Power Plant, People's Movement Against Nuclear Energy (PMANE), spearheading the stir, laid siege to the sea at about 500 meters away from the KNPP on Monday. 

Fishermen, farmers, traders and volunteers of various political parties from Kanyakumari, Tirunelveli and Thoothukudi districts are participating in the protest, a PMANE source said today. 

Heavy police force has been deployed at various places to prevent any untoward situation, police said. 

The anti-nuclear protesters onboard around 500 boats had on September 22 laid siege to the Tuticorin port against loading of uranium in the atomic power plant. 

The protesters along with fisherfolk also staged a 'Jal Satyagraha' in the sea at Koothakuzhi, 10 km from Kudankulam, by forming a human chain. 

The first unit was scheduled to be commissioned in December last year but had been delayed due to protests by locals on safety concerns.

GoM meet on Land Acquisition Bill inconclusive

NEW DELHI: Union minister Sharad Pawar on Monday said that the GoM meet on the Land Acquisition Bill was inconclusive and two-three more meetings would be needed. The 14-member GoM, headed by Agriculture Minister Sharad Pawar, was formed last month after some ministers had voiced reservations against certain provisions of the Bill.

At the last GoM meeting held on September 27, discussions were held among members over the contentious issues in the Bill.

Sources said a strong view on having a window of retrospectivity had cropped up during the last meeting with members feeling that the Bill should apply prospectively only.

Considering the protests, the Rural Development Ministry has said it has made changes in the controversial clause which had said that the Bill would apply retrospectively.

According to this clause, the Bill would be applicable to all cases of land acquisition before the date of commencement of the Act if the award under the 1894 Act has not been made.

The ministry had made changes in this clause, which said that the "Bill shall apply prospectively only, i.e., for new acquisition only, and not retrospectively". — PTI

Plea in NHRC against Mallaya

NEW DELHI: The National Human Rights Commission on Monday admitted a plea against Vijay Mallya to initiate a case against him. This follows the death of the wife of a Kingfisher airlines staff member.

The wife of an employee of crisis-ridden Kingfisher airlines on Thursday allegedly committed suicide, apparently depressed over financial stress due to non-payment of salary to her husband. Susmita Chakarvarti (45), the wife of Manas Chakarvarti who is a ground staff in Kingfisher Airlines, was found hanging from the ceiling in her DDA flat in south-west Delhi's Manglapuri at around 1:30 pm. She was rushed to a nearby hospital where she was declared brought dead.

A suicide note purportedly written by her was recovered from the spot in which she spoke of being under financial stress due to non-payment of salary to her husband.