India hit by Corruption Bombs

October 10, 2012, 9:45 a.m. ET
India Plans Changes in Anti-Corruption Law By ROMIT GUHA
NEW DELHI--India's government is planning to amend the country's anti-corruption law to plug its loopholes as well as to add provisions to book corporates that fail to prevent bribery and protect honest officials, the prime minister said Wednesday.
The reforms initiated in the early 1990s did reduce many corrupt practices, but the subsequent, faster economic growth led to newer opportunities for corruption, Dr. Manmohan Singh said in a speech to the federal agencies that investigate corruption cases.
While the corrupt should be "relentlessly pursued," the innocent shouldn't be harassed, he said.
Dr. Singh's speech comes in the backdrop of a slew of corruption allegations faced by the Congress party-led coalition government on issues ranging from allocation of radio bandwidth to the grant of coal blocks and the organization of the Commonwealth Games in 2010. The most recent issue involves allegations of corruption against the relative of a top ruling-party leader.
The government has denied any wrongdoing in all these cases. These allegations have left the government scrambling to contain the damage to its image rather than work on its legislative agenda. Many say officials were wary of taking decisions fearing they may come under the scanner at a later date or get pulled up by courts.
The government has promised not to protect those involved in wrongdoing. Several senior government officials and lawmakers, including a former telecoms minister in Dr. Singh's Cabinet, are facing criminal charges of conspiracy. They have all denied the charges.
"Experience has also shown that big-ticket corruption is mostly related to operations by large commercial entities," Dr. Singh said. "It is therefore also proposed to include corporate failure to prevent bribery as a new offence."
He said the amendment will seek to tackle a loophole in the existing law which doesn't have any provisions to prosecute the bribe provider.
New Delhi is working on a system to transfer benefits under social-sector programs directly to the bank accounts of people, instead of distributing them through government agencies, he said. It also plans to pay cash to consumers instead of some subsidies it currently gives to companies for selling their products at state-set prices. While reiterating the importance of fighting corruption, Dr. Singh said the "mindless atmosphere of negativity and pessimism" that is created over corruption can only damage the country's image and hit at the morale of the government.
India Plans Changes in Anti-Corruption Law

Dearness Allowance fails to keep pace with Galloping Inflation

Diesel dearer by Rs 5/litre, 6-refill cap on LPG subsidy
Swaraj Thapa : New Delhi, Fri Sep 14 2012, 01:43 hrs
Biting the fuel price hike bullet, the Manmohan Singh government today decided to increase diesel prices by Rs 5 per litre but left kerosene and petrol prices untouched. In a bid to partially plug the subsidy hole owing to cooking gas, the government also decided to limit the number of subsidised gas cylinders to six per household per year. The unsubsidised market rate will add up to Rs 746 per cylinder. These decisions were taken at a meeting of the Cabinet Committee on Political Affairs (CCPA) this evening. Both Trinamool Congress representative and Railway Minister Mukul Roy as well as DMK representative and Chemicals and Fertilisers Minister M K Alagiri skipped the meeting.
The decision to hike diesel prices came even as a Cabinet meeting tomorrow is set to give the long awaited push to the UPA’s reforms agenda by easing FDI norms in civil aviation, power and broadcasting sectors, besides moving proposals to divest equity in seven state-run companies.
Diesel, domestic LPG and PDS kerosene rates have not been changed since June 2011. While the Congress core group cleared the fuel price hike at its meeting last Tuesday, the party also seems to have succeeded in narrowing down differences with allies on its economic policies.
Even as the TMC and DMK skipped the CCPA meeting today, there were indications that the two allies may have agreed not to rock the boat although they would publicly oppose the fuel hike. To this extent, the scope of a partial reduction in diesel prices is not being ruled out.
The Centre is bracing for an attack from the Opposition BJP and Left parties as well as the SP and BSP.
But significantly, the government seems to be finally moving on the reforms and economy front, especially after the battering it has been facing on the coal block allocations controversy.
At the Cabinet meeting tomorrow, the government is set to take up crucial decisions aimed at increasing FDI inflows in civil aviation, power and broadcasting sectors. FDI in civil aviation, which has been opposed by the Trinamool Congress, will allow foreign airlines to pick up stake in Indian carriers, helping cash-strapped airlines like Kingfisher.
The government also proposes to hike the FDI limit in cable and DTH carriage services from the current 49 per cent to 74 per cent.
The third proposal is to allow FDI in running of electricity exchanges in the country. The Cabinet will also consider proposals for disinvestment in seven PSUs, including National Aluminium Limited Company (NALCO), RITES, Neyveli Lignite, Hindustan Copper, Steel Authority of India Limited (SAIL) and Mines and Minerals Trading Corporation (MMTC).
If the reforms are approved tomorrow, government managers hinted that the ambitious proposal to allow FDI in retail — another issue on which the Trinamool Congress does not see eye to eye with the Congress — may also be taken up in the coming weeks. Diesel dearer by Rs 5/litre, 6-refill cap on LPG subsidy

Massive power outage: Indians face reality- Powerless!

India Today Online New Delhi, July 31, 2012 | UPDATED 14:59 IST
Massive power outage in North, East India, passengers suffer as railway, Metro services halt
Lakhs of passengers were stuck as the Delhi Metro Rail and the railway services came to a sudden halt following power disruption in northern and eastern parts of the country on Tuesday afternoon.
Government sources said Delhi was one of the states that was worst affected by the second successive failure of the Northern Grid since Monday. Apart from Delhi, power supply was also disrupted in Punjab, Haryana, Uttar Pradesh, Jammu and Kashmir, Himachal Pradesh, Rajasthan and Uttarakhand.
Sources said that power supply of around 2 lakh megawatt had collapsed in the northern states.
Metro Rail officials said that some trains were stuck in tunnels, forcing them close all entry points to Metro stations. The Metro Rail officials used emergency services to rescue the passengers stranded in trains that were stuck in tunnels and took them to the nearest stations. Power ministry sources said the Northern Grid failed again around 1 pm. Hundreds of trains were held up in different parts of north India. Several trains were stuck at Mughalsarai and Allahabad railway divisions.
The Indian Railway has issued an advisory asking the passengers to enquire about the status of their trains before leaving for the stations. At least 300 trains were stranded in eastern and northern parts of the country.
Power outage also affected road traffic, already affected due to water-logged roads, in Delhi as traffic signals stopped working in the city. Various other essential services were also hit by power failure. Meanwhile, sources said that the Eastern Grid was also affected. As a result, there was no power supply in Bihar, West Bengal, Jharkhand and Odisha.
Train services were badly hit in these states, particularly the Howrah, Sealdah and Asansol divisions of Bengal following the Eastern Grid failure causing massive power cuts.
Union Power Minister Sushilkumar Shinde told Headlines Today that he has ordered a probe into the grid failures.
Around 2 pm, a Power Grid Corporation spokesperson said that all essential services would be restored in two hours. Power supply was disrupted in northern states following the failure of Northern Grid around 2.30 am on Monday. The power supply was restored after nearly six hours.
Read more at:
Massive power cuts across north, east India; reasons unknown

Rising Food, Fuel Prices Slow Indian Economy

November 04, 2011
Rising Food, Fuel Prices Slow Indian Economy
Anjana Pasricha | New Delhi

Photo: Reuters: A fruit seller arranges bananas at his stall along a road in Jammu, November 3, 2011.

In India, increasing food and fuel prices have raised worries that Asia's third largest economy may slow down more than expected. The numbers indicate the Indian government's efforts to tame inflation in the past year have not yet succeeded.
The commerce ministry says food inflation last week was over 12 percent - the highest level in the past nine months. This was largely due to rising prices of meat, milk and vegetables.
State-owned oil companies also increased gasoline prices by about 2.5 percent on Friday - the fourth increase this year. The rising food and fuel prices are slowing down the economy. An economist at the National Council of Applied Economic Research in New Delhi, Anushree Sinha, says the impact is already apparent.

"The industrial sector has already been clocking deceleration in their growth. Industry is definitely not seeing the growth it should. Our manufacturing sector is not doing well which is a cause of concern," said Sinha. The loss of economic momentum is primarily blamed on a series of interest rate hikes by the Reserve Bank in the past year. The hikes were meant to ease inflation by curbing consumer demand, but has had virtually no impact so far.

Several economists say the government is looking in the wrong direction. They say food prices are climbing due to changing patterns of consumption in a country where high growth has increased the numbers of affluent people, and raised demand for items like meat, milk and fruit. D.H. Pai Panandiker, who heads the economic think tank, RPG Goenka Foundation in New Delhi, says the government needs to focus on policies that will raise production of these items.

"The government should have intervened to see that the supply of these commodities increases, which it has not done. Milk and the dairies, the poultry farming and all kinds of things could have been given more facilities in order that they expand very fast. That would have been the principle solution to this problem and not really the interest hike," said Panandiker. The government says it is optimistic that the economy will grow at around 8 percent, but several economists are revising this figure downwards to around 7.5 percent.

Economist Sinha says this is not good for a country where high growth is needed to cut poverty. "The problem is, it’s going to impact hugely a large number of people…fewer jobs created, and also incomes being eroded," said Sinha. The rising fuel and food prices also pose political problems for the Congress Party-led government. Both allies and the opposition have attacked the government for failing to tame inflation. The higher prices are also fueling popular anger.
Rising Food, Fuel Prices Slow Indian Economy

India's Sanitation Lowers Development

India ranked 134th in terms of Human Development Index
Press Trust of India, Updated: November 02, 2011 18:45 IST
New Delhi: A United Nations study has ranked India at 134 out of 187 countries in terms of Human Development Index even as it has observed that life expectancy at birth in the country has increased by 10.1 per cent a year over the last two decades.

In the 2010 Human Development Report, prepared by UNDP, India had been ranked at 119 out of 169 countries. But the new report for 2011 says it is misleading to compare values and rankings with those of previously published reports, because the underlying data and methods have changed, as well as the number of countries included in the Human Development Index.

The report said India's Human Development Index (HDI) value for 2011 was 0.547 positioning the country in the 'medium human development category'. Neighbouring Pakistan was ranked at 145 (0.504) and Bangladesh at 146 (0.500) respectively in terms of HDI. It said between 1980 and 2011, India's HDI value increased from 0.344 to 0.547, an increase of 59 per cent or an average annual increase of about 1.5 per cent.

However, the report pointed that the country's HDI of 0.547 was below the average of 0.630 for countries in the medium human development group and below the average of 0.548 for countries in South Asia.

The HDI is a measure for assessing long-term progress in three basic dimensions of human development such as a long and healthy life, access to knowledge and a decent standard of living.

The report said the "mean" year of schooling for the country increased by 3.9 years between 1980 and 2011 and expected years of schooling increased by 3.9 years.

Rural Development Minister Jairam Ramesh, who was present at the report release function, however, sounded dismissive about the figures in the report.

He said a better way of analysing the progress made by countries including India is to measure comparative success they have achieved on this count in the last few years from their previous record rather than by the number of their positions in the international chart.

Ramesh said such presentation of human development indices is "grossly misleading" and the country's progress in this respect should be seen from a 20-year perspective.

He said India has made huge strides in the field of education and water supply system but admitted that the biggest block in the human development indices for India is in the field of sanitation where 58 per cent of open defecation in the world takes place in India.

He also rued that a mere expenditure of Rs. 2000 crore in the field of sanitation is being made while the budget for water supply was Rs. 20,000 crore.

Ramesh said that the answer to the problem of sanitation is massive public investment in the sector on the lines of what the Central Government has done in education sector.
Read more at: India ranked 134th in terms of Human Development Index

Veteran issues takes centerstage inspite of recession

US Budget Cuts and Veteran's Pensions/ B​enefits- commentry by Lt Gen Harhajan Signh
Friends,
I saw a 40 minutes TV program in USA about the US Budget cuts and Veteran's Pensions/benefits. In this program Pentagon correspondent of a newspaper was the expert and a number of veterans (mostly below officer rank) from US Army/Navy/Air Force/Marine Corps expressed their views and put up suggestions via telephone calls.
There is a debate going on in USA whether in view of the existing financial problems and likely Defence Budget cuts, so called high expenditure on Veteran's pensions/benefits should be reduced and how.
The following points got high lighted during the program-
1. The existing system is some what different in the four Defence Services.
2. The US Navy and the Air Force have requirement for more technical personnel and it is difficult to replace them. They need to be retained for longer periods and incentives for them to continue longer built in.
3. The System of Pensions in the Army and Marine Corps (probably) is that in case an officer/soldier serves for 20 years, he/she gets 50% of his basic salary at retirement as pension for life. If the service is 30 years or more the percentage of pension vis a vis
basic pay goes up to 75%.
4. For service less than 20 years there is no pension.
5. In addition the veterans get life long medical facilities.
6. All participants high lighted that the existing system has been in vogue for a number of years and it will be very difficult to change it, considering the sentiments of the veterans.
7. THE SERVICE CONDITIONS OF THE MILITARY JUST CANNOT BE COMPARED WITH THOSE IN CIVIL GOVERNMENT DEPARTMENTS OR IN BUSINESS.The harsh and dangerous service conditions of especially those in combat arms; the casualties suffered, injuries sustained and psychological trauma experienced require special consideration.

Dr Singh, how do you want to be remembered?

By Rakesh Khar/DNA-Daily News & Analysis, 16/08/2011
Dr Singh, how do you want to be remembered?

The basic challenge of our time is to ensure that wealth creation is not only tempered by equity and justice but is harnessed to the goal of removal of poverty and development for all,” declared Dr Manmohan Singh in his famous July 24, 1991 budget speech.

Twenty years have passed since Dr Singh came to be recognized as the architect of the economic reform story in India but the challenge of either the goal of removal of poverty or development for all is far from over. The challenge has actually become bigger, tougher, and more complex, with no easy solutions in hand.

Ironic as it is, nobody is celebrating the 20 years of reforms era including Dr Singh himself. This is because the ground reality today is that the reform story, despite its many successes, faces the biggest credibility test: the ever growing chasm between the haves and have-nots.

It is a throwback to either the regulatory powers reigning supreme or a total policy paralysis for fear of being caught in the twin spin of judicial and media activism, a space created due to the total governance failure in the second stint of Dr Singh at the top job.

Dr Singh's supporters are out to trot some numbers but the significance of these is lost on the fast gaining view that the poor became poorer and rich became richer during the last 20 years. This has pitch-forked Dr Singh and his reform policy as the villain.

Consider the following:
Estimates say between a low of 37% (Tendulkar Committee) and a high of 77% (Arjun Sen Gupta committee report) Indians live in poverty (these are figures drawn from government appointed committees). For company they have about 25 to 35 dollar billionaires (Credit Suisse Wealth Report 2010). The same report said there were 1,080 Ultra High Networth Individuals (HNIs) in the wealth strata of $50 million-$500 million and 7,800 HNIs in the wealth strata $10 million-$50 million.

Worse, India's performance in the UNDP Human Development Index (HDI), which is a comparative measure of life expectancy, literacy, education and standards of living for countries worldwide, has got worse in last two decades, receding from 95 in 1990 to 119 in 2010. Yes, there is a counter figure as well: 390 million Indians now belong to the middle class; one-third of them have emerged from poverty in the last 10 years. At the current rate of growth, a majority of Indians will be middle-class by 2025.

But the truth of the curse of poverty in the country is as cold as death. It is visible all over like a scar on our psychology. Blaming it purely on the reform programme is being as simplistic as it is a wishful thinking that more reforms would redeem India of all its problems.

Lack of nuance in our public debate as also Dr Singh's inexplicable silence in wake of falling credibility of his government due to a plethora of corruption scandals has only added to his woes. The PM has made it worse for himself and his paltry supporters by repeatedly saying "he has a job to do". The truth gaining ground is that he has merely a job to keep.

Management thinker Subroto Bagchi wrote in 'The Professional' that "if you qualify to be called a professional than you should be able to self certify completion of your work without supervision. And that is all about integrity. That is how only a true professional as opposed to a tactical climber can scale the summit of his profession and remain there."

Dr Singh, time you switched off for a while, to self-introspect. If not anything else, you might as well let us know how would you like to be remembered for posterity?
(The writer is Editor, Zee Research Group)
Copyright restricted. Under license from www.3dsyndication.com
Dr Singh, how do you want to be remembered?

Protest March from Jantar Mantar- Fight against Corruption

Protest March on 01 May 11 from Jantar Mantar to India Gate, FIGHT AGAINST CORRUPTION
Dear All,
Crusader Anna Hazare sat on fast unto death from 5 April to 10 April 2011 at Jantar Mantar and the Government had to accept all his demands to draft a strong and effective Jan Lok Pal Bill. IESM had strongly supported the movement and veterans under the banner of IESM were present in large numbers on all days at Jatar Mantar to show solidarity and support to the movement against corruption. But as is the wont of politicians they started putting road blocks even before first meeting of the drafting committee to ensure that the proposed bill does not see the day light. Some vested interest have started a maligning contest and are spreading canard of lies to discredit the drafting team picked by veteran Anna Hazare. India against corruption has decided to undertake a solidarity march from Jantar Mantar to India Gate on Sunday 1 May at 1700h to show solidarity and confidence in the drafting committee of the Jan Lok Pal Bill. More than 10000 citizens of Delhi have confirmed their participation in the proposed march. IESM has decided to lend its support to the march and will participate in the march with full force. All veterans will participate with their caps.

All veterans are requested to reach Jantar Mantar sharp at 5PM on 1 May 11 Sunday with their caps to patricipate peacefully in the march under the banner of IESM to show solidarity with the India Against Corruption team and support the Crusader Veteran Anna Hazare.
Regards
Gp Capt VK Gandhi VSM
Gen Sec IESM

PM assures industry of corruption-free environment

Friday 01 April 2011
Is PM Blinded by Corruption?
Amid corporate honchos being questioned in connection with 2G scam case by agencies, Prime Minister Manmohan Singh on Thursday assured a "nervous industry" that the government is committed to creating a corruption-free environment to ensure the industry moved ahead without fear.
"I am aware of the nervousness in some sections of the corporate sector arising out of some recent unfortunate developments. We stand committed to ensuring that our industry moves ahead with confidence and without fear or apprehensions," Dr. Singh said addressing a meeting of the Council on Industry and Trade.
The government is mulling all measures, administrative and legislative, to tackle corruption and better transparency, he said at the meeting which was attended by Ratan Tata, Rahul Bajaj, Azim Premji, Sunil Bharti Mittal, Deepak Parekh, Swati Piramal and Kumarmangalam Birla, among others.
CBI has recently questioned various industry leaders in connection with the 2G spectrum allocation scam. The Public Accounts Committee of Parliament has also called them for questioning on the issue. In January this year, a group of prominent personalities, including industrialists Azim Premji, Keshub Mahindra and Deepak Parekh, had expressed concern over a series of scams leading to "governance deficit". They had asked the government to deal with burning issues like corruption immediately. In an 'open letter' addressed to the leaders, they had said: "We are alarmed at the widespread governance deficit almost in every sphere of national activity covering the government, the business and the institutions. Widespread discretionary decision-making have been routinely subjected to extraneous influences.
Singh also assured the industry on continuation of economic reforms." "Whenever I meet representatives from our industry and businesses, the question I am most often asked is whether economic reforms will continue."
"You should have no doubt on this score. The economic reforms of the past have brought us advantageous and I can assure you that we will continue traveling on this path. We might do it gradually and in a manner which builds a consensus for economic and social change", he said. (SP-31/03)
PM assures industry of corruption-free environment
Comment: An Absolutely Honest Dr Manmohan Singh is totally confused by corruption and economics. Blinded by Black Money, Hawala Transanctions, Money Launderers, Terror financing, Swiss Secret Accounts- Blinded can he perceive Transparency? Why is Jan Lok Pal Bill not being passed to put the criminals and corrupt behind bars and ensure accelerated GDP Growth- Is that not simple mathematics and economics?

Modi magic that makes Gujarat tick

The recently concluded fifth Vibrant Gujarat Global Investment Summit, the man, described as a "visionary" has roped in investments worth Rs 21 lakh crore, from 7,936 MoUs inked across diverse sectors in the two days. Dedicating the summit to the youth and women, he promised to create over 52 lakh livelihoods and job opportunities with the money. Behind his hardcore Hindutva image is a businessman with hardselling abilities.
India Inc leaders can't stop praising the man for his efforts to make Gujarat a civic and industrial example to follow.
"Gujarat is shining like a lamp of gold and the credit goes to the visionary, effective and passionate leadership provided by Narendra Modi. We have a leader here with vision and determination to translate this vision into reality," Reliance Industries Chairman and Managing Director Mukesh Ambani said.
Tata Group chief Ratan Tata said: "The leadership of Narendra Modi has proved that Gujarat is not only seeing industrial growth but is also witnessing rural development."
Anil Ambani exhorted other states to take a cue from Modi for development. "Gujarat is a role model for other states to learn from ... Narendra bhai has single handedly transformed the state into a power state," he said. Gujarat today is the power capital and power hub of the country and stands out in a sharp contrast to other states in the country, Ambani added.
Several others who have set up shop in recent times in the state vouch for the "corruption-free" and speedy processes. Little wonder, since Mr Modi believes in "minimum government and maximum governance."
Modi’s Gujarat – The dream destination
Comment: Gujarat is a Citizen Safe destination- free of corruption the state is taking gaint strides in all round progress- piped cooking gas to all rural homes and 24 hour electricity to all homes- extraordinary statistics.

Dearness Allowance from 01 Jan 2011

Thursday, March 10, 2011
Cabinet Committee likely to approve today 6% Dearness Allowance to CG Employees...
The Union Cabinet Committee likely to release of additional instalment of 6% Dearness Allowance to Central Government Employees and Dearness Relief to Central Government Pensioners due from 1.1.2011.
The hike in the Dearness Allowance has been done in accordance with the recommended formula in sixth Central Pay Commission. According to the calculation with last six months of All India Consumer Price Index Numbers(AICPIN) published by Labour Bureau Govt. of India, from July 2010 to December 2010, may be given 6% of additional Dearness Allowance from January 2011 to Central Government Employees and Pensioners.
The proposed DA hike, to be approved by the Central Government today, this enhancement is taking the Dearness Allowance from 45 to 51 per cent of the basic pay and also some allowances and advances rise in 25% from the existing rates as per the recommendations in Sixth CPC.
Only thing to cheer is the fixed allowances such as Children Education Allowance, Conveyance Allowance for serving personnel will be 25% more as the D.A. will certainly cross the 50% mark. It may be remembered that D.A. linked allwances such as Transport Allowances will be unchanged.
There is a respite in Onion prices which made everyone weep as prices peeked to Rs 95/ per Kilogram- this was almost a $1- beating the US rates of $0.45 per pound!
Govt approves 6 pc hike in DA

Onion prices soar as scamsters frolic

24/12/2010 The week that was
Week@glance was dominated by the whole country crying hoarse when prices of onions, tomatoes and garlic hit the roof. The government woke up late from its slumber and Pawar was caught on the wrong foot. This week was also dominated by CBI raids in the residences of A Raja, Suresh Kalmadi and Nira Radia — the scamsters of 2010. N D Tiwari has been asked to take a DNA test, while veteran Congress leader K Karunakaran passed away. All this and more...

When the govt was in a veg soup
Onions, tomatoes and garlic dominated the week that started on Dec 20. Onion prices touched a record Rs 90 (in contrast- price in USA- less than 90 Cents- Rs 45/- per Kg) in major markets, sending the government into a tizzy. Garlic and tomatoes followed the onion's race to pinch the pockets of the aam admi even as the opposition and the public hauled the government over the coals. The government stopped the exports, but the action came a bit too late. The government, however, remained clueless about surging trend in tomato given that the Agriculture Ministry has not received any reports of damages from any part of the country.
The week that was

Government and corrupt Politicians are the main culprits in depriving the poor of crucial resources

Nov 18, 2010 | AP
India has lost hundreds of billions of dollars over the past six decades as companies and the rich stashed cash overseas to avoid taxes and hide ill-gotten gains, widening inequality and depriving the poor of crucial resources, a new report shows.

The flood of illegal cash has swelled to ever greater heights since the early 1990s, and averaged $16 billion a year from 2002 to 2006, as India's opening of its economy created more wealth and opportunities to move it across borders, according to the study by Dev Kar, a former International Monetary Fund economist.

Kar, now senior economist at Global Financial Integrity, a Washington DC group that researches the flow of illicit money, said India's black money - at least $462 billion since the late 1940s - could have paid for its entire infrastructure needs and much more.

"We could have had better schools, better health programs, better nutrition programs for the poor. Children could have been vaccinated and given access to fresh drinking water. Many areas don't have electricity," he said.

"The high net worth individuals are the ones driving illicit flows," Kar said.

The ministry of finance and spokespeople for the ruling government did not respond to requests for comment on the report. Other analysts aren't taking issue with Kar's research methods but question whether the blame should be pinned on companies and privately wealthy individuals. They argue the government and corrupt politicians are the main culprits.

Kar used a World Bank model to measure the gap between the nation's recorded sources of funds, like borrowing and foreign direct investment, and its recorded use of funds, like financing the current account deficit and foreign currency reserves. Illicit outflows are considered to exist when a country's recorded source of funds exceeds its recorded use of funds.

Kar supplemented that by looking at differences between the value of what India says it exports and what other nations say they import from India. This captures practices such as understating the value of export contracts to hide money overseas.

Adjusted for inflation, that all added up to $213 billion missing since 1948. Using the short-term US Treasury bill rate to estimate a conservative investment return, Kar calculated that money would be worth, at minimum, $462 billion today.

The figure could be understated by half, Kar said, partly because it doesn't cover harder to track activities including smuggling and cash transfers outside of the financial system.
India's rich have been cheating country of billions, for six decades: click here to read the full account

On Diwali business, China beats India

03/11/2010
New Delhi: With the huge availability and growing demand of festive items made in China, local artisans are facing stiff competition to sell their products during this Diwali season. From fancy lights, lampshades, Ganesha and Laxmi idols to crackers and other such sundry items, the market is surging with Chinese products and consumers seem to be making a beeline to buy these attractive and cheap knick-knacks.

Conventional potters, who make products using a spinning wheel, seem to be worst-hit. Manohar Lal, a trader in South Delhi's Munirka area says he has seen the demand for his earthen diyas dipping year after year forcing him to create fancy and designer diyas for this Diwali to attract buyers.

"There was a time when my family used to start making Diwali products two to three months before the festival. People now are more interested in fancy and cheap lights from China," says Lal. According to traders, the popularity of China-made fancy lights is because of their cheap prices and the wide variety available.

A Chinese string of 100 tiny bulbs can be bought in the range of Rs 50 to Rs 70. Lights in the shape of pineapples, pomegranates, rice and net stars among others are seen to be popular among buyers.

Readymade rangolis that can be displayed on the floor or the wall are also available at affordable prices. Even though they are popular, not everybody is happy with the 'Made in China' products.

"The fancy lights from China have thin wires and they come out of holders easily. There are complaints of total failure of the product in some cases as well. So, I do not stock Chinese products at all," says Aman Khanna, a shop owner in Karol Bagh.

Shopkeepers say crackers from China produce more smoke and are also more dangerous for children. While the buyers are having a ball both in terms of cost and variety, the affected artisans are trying to devise ways to increase the sale of traditional goods.

"My business of fancy lights has been hit badly but I do not compromise on quality. Chinese lights are 'Rakhi Sawants' who will attract buyers only for some time. Once people know their truth, they will get back to us," says Rajender Kumar, a small businessman in the capital.

Experts say there is nothing much that can be done at the moment to help the small businessmen and the local artisans. "Chinese products are competing with domestic items in other countries also. A lot of artisans are suffering due to the competition. But, once you open up your economy, it's open to all. Artisans have to produce better goods than Chinese ones. Nothing else can be done," says Professor S K Jain who teaches at the Jawaharlal Nehru University.
Source: Agencies Images: AP/Reuters
On Diwali business, China beats India

Dr Manmohan Singh appreciates the Gallant Armed Forces

Extract of PM’s Valedictory Address at the Seminar on the Occasion of Golden Jubilee of National Defence College

The Prime Minister, Dr. Manmohan Singh delivering the valedictory address at the International Seminar on “Role of Force in Strategic Affairs”, at the Golden Jubilee celebrations of National Defence College, in New Delhi on October 22, 2010. King of Bhutan His Majesty Jigme Khesar Namgyel Wangchuck and the Defence Minister, Shri A. K. Antony are also seen. Photo no.CNR - 34194

The Defence Minister, Shri A. K. Antony addressing at the International Seminar on “Role of Force in Strategic Affairs”, at the Golden Jubilee celebrations of National Defence College, in New Delhi on October 22, 2010. Photo no.CNR - 34196

Our development ambitions need a favourable external environment. Global interdependence of nations is a growing economic and political reality. It is therefore essential for India to remain actively engaged with the rest of the world so that we can access capital, high technology, energy and knowledge to propel our growth process.

However, we have to be conscious that just as military power alone cannot assure national security, growth by itself is not the ultimate answer to the multiple challenges we face as a nation. Our ability to develop at the pace and in the direction that we wish to will depend on how well we are able to maintain the internal stability and cohesion of our country.

Naxalism and Left Wing Extremism today pose a great threat to our national security. We recognize that there is a development deficit in all parts of our country. But we should be equally clear that the Indian State cannot and will not allow its authority to be challenged.

Our country has been a victim of terrorism for the past more than two decades. Terrorism has been used as a means to destroy the values on which our nation is built. Terrorist groups enjoy patronage and sanctuaries and do not lack in resources. We therefore have to ensure that our capabilities to combat terrorism remain a step ahead of those of the terrorists. They should be left in no doubt whatsoever about our ability and resolve to defeat them.

We have to be prepared to deal with threats to our security from non-state actors and groups. The problem of piracy off the coast of Somalia in the Gulf of Aden is a case in point. Non-state actors are becoming increasingly fused and employing the best technologies to target open and democratic societies like ours. We have therefore to modernize our defence doctrines to respond to new and non-traditional threats to our national security.

Cyber warfare is an area of emerging concern. I am glad that our Armed Forces and our other agencies are paying increasing attention to building capabilities and expertise in this very essential area.

Assuring our energy security is another major challenge. We do not have the luxury of choosing between one source of energy and another. We must keep all options open, including that of the nuclear energy. Till such time as we are dependent on fossil fuels we must have the capability of safeguarding the security of the sea lanes of communication. The bulk of international oil cargoes pass through the Indian Ocean and this therefore happens to be a region of vital interest and concern to us.

The scale of social and economic transformation that we seek to achieve for our country is unprecedented. If we succeed in this ambitious enterprise within the framework of an open, democratic and pluralistic society we will I sincerely believe profoundly influence the history of nations in the 21st century. For this to happen, we need peace in our hinterland and in our neighbourhood. We need to strengthen our efforts to make the world a more level playing field. The reality of international relations is that power is unevenly distributed. We should not expect those who have power to willingly part with it. We have therefore to stand up on our own feet to defend the values that define us as a nation.

I would like to conclude by placing on record our country’s deep appreciation to our gallant Armed Forces for their professionalism, valour and contributions to processes of nation building. The military preparedness and modernization of our Forces are matters of the highest priority for Government.

I end by wishing the National Defence College even greater glory in the next half century.”
click here to read full address of PM at NDC

Tax Exemption Limit to go up to Rs 2 Lakhs

Outlook India New Delhi | Aug 26, 2010
In a move that could leave more money in the hands of people, the Government today proposed to raise exemption limit on income tax from the present Rs 1.6 lakh to Rs 2 lakh.

The Cabinet approved the much-awaited Direct Taxes Code (DTC) Bill, which is likely to be tabled in Parliament during the ongoing Monsoon session and thereafter it may be referred to a select committee of members of both houses of Parliament.

The bill also seeks to remove surcharge and cesses on corporate tax, which could provide relief to business houses.

When asked what will be the limit of exemptions for income tax, Finance Minister Pranab Mukherjee told reporters after the Cabinet meeting that it is proposed to be raised to Rs 2 lakh from the current Rs 1.6 lakh.

"The whole objective is that a plethora of exemptions will be limited. (Income) tax slabs will be three. Rate of taxes will be taken in the schedule so that they need not be changed every year," he said.

On the corporate tax, he said it is sought to be retained at the present level of 30 per cent, but there will not be any surcharge or cesses on it.

According to sources, the DTC bill is likely to be tabled in Parliament on Monday. Thereafter, it will be referred to the select committee, they added.

When asked what the new income tax slabs would be, Mukherjee said, "that will be discussed in Parliament."

Sources, however, said income between Rs 2-5 lakh is likely to attract a rate of 10 per cent, 20 per cent for Rs 5 -10 lakh bracket and 30 per cent above Rs 10 lakh.

For senior citizens and females, the tax slabs are likely to be relaxed further, they added

When contacted, senior officials in the Finance Ministry declined to comment on the slabs.

At present, income between Rs 1.65 lakh and Rs 5 lakh attracts 10 per cent tax, while the rate is 20 per cent for the Rs 5-8 lakh bracket and 30 per cent for income above Rs 8 lakh.

The first draft of the bill had suggested 10 per cent tax on income between Rs 1.60 lakh and Rs 10 lakh, 20 per cent on income between Rs 10 and Rs 25 lakh and 30 per cent beyond that.

However, finance ministry officials had later said those slabs were just illustrative.

The Bill, approved by Cabinet today, also seeks to impose minimum alternate tax (MAT) at 20 per cent of the book profit, compared to 18 per cent at present.

The first draft had proposed to impose MAT on assets, which drew strong criticism from the industry. The MAT on book profit has been maintained in the revised draft as well.

The first draft had also proposed to tax long-term savings like provident funds at the time of withdrawal. However, the revised draft exempted them, after the first draft drew flak.

"Concerns were expressed for shifting from EEE (exempt, exempt, exempt) to EET (exempt, exempt, tax)," the Finance Minister said.

This would also address the issue of taxing surplus funds of charitable institutions, he added.

When enacted, the DTC will replace the archaic Income Tax Act and simplify the direct tax regime in the country.

Finance Ministry officials exuded confidence that the Bill will come into force by the deadline of April 1, 2011.

The code aims at reducing tax rates, but expanding the tax base by minimising exemptions.

"DTC will help in streamlining various tax exemptions, deductions and thereby bring in moderate tax rates. DTC would address most of the issues raised by corporate India, like, not imposing tax on gross assets, clarifying EEE, introducing graded deduction for capital gains among others," Ernst & Young Tax Market Leader Sudhir Kapadia said.
Tax Exemption Limit to go up to Rs 2 Lakhs

Use of Special Forces to neutralise Naxal Leaders

USE SPECIAL FORCES TO NEUTRALISE NAXAL LEADERS: EXPERT By Abhijit C Chandra
Bhopal, Aug 18 (UNI) Special Forces can be used in conjunction with police intelligence to eliminate known naxal leaders and decimate the top rung, opines an Indian Army veteran who served in the Defence Ministry's Counter-Terrorism Division.
"The naxal problem is primarily a politico-economic-criminal problem and not really an insurgency. The Army has a duty to come to the aid of civil power when required but this has to be quick and short and only when an inescapable necessity," Lieutenant-Colonel Behram A Sahukar -- who retired in November 2003 as Additional Officer, Headquarters (HQ) Defence Intelligence Agency -- told UNI.

If really necessary, "we can have military advisors" with the police or paramilitary during operations as well as in the training schools, the expert -- who commanded a Special Forces Parachute Battalion -- said while emphasising that in such cases the Army officer must be given seniority over the police officer. Slowly but surely the police will come up to scratch after a few initial ''reverses'' that must be accepted.

"Police have adequate current resources to deal with the situation within own states. Take the case of Punjab and now Jammu and Kashmir. The Border Security Force and other paramilitary also have air resources, which can be augmented," said Lt-Col Sahukar who has been actively involved in the planning and execution of counter-terrorism operations at Divisional HQ in the insurgency-affected areas of Jammu and Kashmir and the Northeast.

It is about time the paramilitary and the reserve or armed police are used for the tasks they were raised for, he felt while adding that the local political agencies should pull their weight and do the work for which they have been elected.

"The Centre has been very very stingy with the Armed Forces and now there is a lot of discussion on the Armed Forces Special Powers Act. Many troops come from the affected areas and the Army has to use deadly force to achieve its objective," explained the combat veteran who first saw action during the 1971 India-Pakistan War, in the Western Theatre.

"No point in turning to the Army at the slightest pretext. Think of the Veerappan case during which the Army was not used," Lt-Col Sahukar reminisced.

Abolish IAS, says Infosys’ Murthy: Is GDP faked or a myth?

Published: Wednesday, Aug 11, 2010, 2:17 IST
By Sreejiraj Eluvangal | Place: New Delhi | Agency: DNA

For a country accustomed to gloating about GDP growth figures and taking these as a measure of achievement, here is sobering advice from NR Narayana Murthy, founder of Infosys Technologies, India’s second-largest infotech firm. Stop focusing exclusively on 8 or 8.5% growth, look at the sorry state of affairs on the governance front, he said at a function here.

Drawing a contrast between the success of the private sector and the decay and corruption in the government sector, he said: “In areas where public governance is involved, we have hardly made any progress.”

Murthy said the politicians and bureaucrats are trapped in a colonial mindset. “They feel they are the masters and there is no need to show fairness and transparency,” he said. Murthy, seen as an idealist by many, owns less than 5% of the total shares of Infosys. He will step down as chairman of the company in 10 days.

While admitting to some exceptions, he noted many of the leaders and bureaucrats were completely out of touch with the dynamics of the current world. “Once I was with a senior bureaucrat discussing how badly our high school students had performed in an international competition and he said, ‘we must stop participating in such competitions’,” he said.

The outdated mentality of the political class, he said, is accentuated by an equally apathetic population, which has almost accepted corruption and inefficiency. “For over 1,000 years, the government belonged to someone sitting either 2,000 miles or 4,000 miles away. There is no sense of societal ownership,” he said. “The penalty (for corruption) is minimal. As a result, there is no fear of repercussions and there is no accountability.”

Murthy’s cure, besides tougher punishment, is to abolish the system of generalised administrators under the Indian Administrative Service (IAS) and replace it with specialists under a new ‘Indian Management Service’.

The new breed of government servants would have specialised knowledge to manage projects. Their salaries must also be increased to ‘near private sector’ levels, while making 60% of their remuneration variable according to how well they are able to implement projects. “If we had kept track of the activities using a project management software, we would not be where we are,” he said, about the delays in setting up the Commonwealth Games infrastructure.

He, however, refused to encourage speculation that he would join public life. “I am too old. Besides there is already someone from Infosys,” he said, referring to former CEO Nandan Nilekani, currently heading the UID project.
http://www.dnaindia.com/india/report_abolish-ias-says-infosys-murthy_1421753
Abolish IAS, says Infosys’ Murthy

A suggestion not a day too late!
The Indian bureaucracy is the biggest stumbling block in the nation's development as they are the real executives. In a survey by NDTV 86.87 percent participants agreed that we have the most corrupt bureaucracy in the world. A survey of 12 Asian economies done last year by the Political and Economic Risk Consultancy based in Hong Kong blames India’s ‘suffocating bureaucracy’ for us falling behind countries like Vietnam, Bangladesh, Bhutan and Myanmar in providing our people with minimal standards of health care, sanitation and education. Tavleen Singh, writing in the Indian Express,said 'Every time I deal with Indian officials I become so depressed that I almost need therapy'.

One thing the Infosys mentor seems to have overlooked is the role of our judiciary. I can vouch for the fact that had the Indian judiciary been able to evoke even an iota of faith in the masses of getting justice in our courts there are enough pubic spirited persons who would have hauled all the corrupt politicians and bureaucrats over the coals. But the fact about our courts is what Arundhati Roy said: 'In India, everybody knows that as far as the legal system is concerned, the process is part of the punishment.'

When absurd and idiotic orders cannot be challenged for what they are, due to the Damocles' sword of contempt of court hanging over every body's head the quip 'power corrupts and absolute power corrupts absolutely' is applicable in letter and spirit to the judiciary than to any other institution of governance in this country.
regards n bw
ravi
(Maj PM Ravindran, an activist about Corruption in Judiciary and RTI – Chander Kamboj)

Dear All,
Please find link to 2 websites with details of Our Honorable MPs of Lok Sabha as well as Rajaya Sabha.Those looking for email ids of our elected leaders may find it useful.
LOK SABHA
RAJAYA SABHA
Regards,
Jaspal Bhinder

Galloping Poverty: Indian GDP Fake or a Myth?

The Hindu Thursday, Jul 15, 2010
Jason Burke

Madhya Pradesh, Democratic Republic of Congo show near identical poverty level

India ranks 63rd in the new poverty index, after Togo, before Haiti

Quarter of the world lives on $1.25 a day or less: World Bank estimate

New Delhi: New U.N. index builds up fuller picture of poor lives; Madhya Pradesh ‘comparable to Congo.' There are more poor people in eight states of India than in the 26 countries of sub-Saharan Africa, a study reveals today

More than 410 million people live in poverty in the Indian States, including Bihar, Uttar Pradesh and West Bengal, researchers at Oxford University, England, found. The “intensity” of the poverty in parts of India is equal to, if not worse than, that in Africa.

When the vast central Madhya Pradesh, which has a population of 70 million, was compared with the Democratic Republic of the Congo, the war-racked African state of 62 million inhabitants, the two were found to have near identical levels of poverty.

Multidimensional poverty index
The study is based on an innovatory “multidimensional poverty index”, or MPI, developed by specialists at Oxford. To be used for the first time in the authoritative and influential United Nations Human Development Report when it is published this autumn, it will replace a simpler method of calculating poverty introduced over a decade ago.

The index uses ten major variables including access to good cooking fuel, schooling, electricity, nutrition and sanitation. “[It] is like a high-resolution lens which reveals a vivid spectrum of challenges facing the poorest households,” said Dr. Sabina Alkire, Director of the Oxford Poverty and Human Development Initiative and a co-developer of the index. “Before, you might know a person was poor but did not know if their children went to school, if they had a floor or if they cooked on wood.” In Madhya Pradesh poverty levels were higher because of malnutrition. In Congo, access to schooling was a problem.

The study's conclusions will reinforce claims that distribution of the wealth generated by India's rapid economic growth — recently around 10 per cent year on year — is deeply unequal. Prime Minister Manmohan Singh has repeatedly said he wants to see “inclusive” development.

Difficult to define
Poverty has long proved difficult to define. The World Bank bases its definition on household income and estimates that a quarter of the developing world lives on $1.25 a day or less. However, relying simply on money “excludes everything that is outside the cash economy and doesn't look at issues such as housing [or] access to safe water” said William Orme, a spokesman for the United Nations Development Programme in New York.

To compile the index, researchers analysed data from 104 countries with a combined population of 5.2 billion, 78 per cent of the world total. About 1.7 billion — a third — live in multidimensional poverty, they found.

“Extreme” poverty
This is 400 million more than are estimated by the World Bank to be in “extreme” poverty. The new index is also designed to track variations within countries much better. So while the poverty rate is more than 80 per cent in the rural Bihar, it is about 16 per cent in Kerala.

Some countries have dropped steeply down the poverty rankings in the new list. Turkey, Egypt, Pakistan and Morocco were found to have much more poverty under the new index than when using simple household income.

Others, such as Tanzania, Nicaragua, Uzbekistan, Vietnam and China were found to have less. China was ranked 46 out of 104, three places behind Brazil. India came in 63rd, just after Togo, but ahead of Haiti.

“In many cases, it is probably linked to previously high levels of social investment,” Alkire said. “It shows that a low per capita GDP income doesn't necessarily mean high poverty.” — © Guardian Newspapers Limited, 2010
Poverty more in India than sub-Saharan Africa
Observations:
Rate of Indian Galloping Distress and Poverty (GDP) far exceeds the Gross Domestic Product (GDP). It seems the that Black Money, Money Laundering and Hawala Transanctions far transends the Indian economy.
Black money enters the system for a variety of reasons, of which corruption is not an insignificant part. However quite a bit a black money is pooled in due to evasion of taxes, levies, excises and duties on the part of major manufacturing, road transport and other companies. Cash transactions, which are again unaccounted for money, make up almost half of current financial dealings, especially in the real estate, electronic goods and transportation departments. The film industry is a regular boost to the parallel economy as are personal incomes and the various illegal industries. Even the recent elections greatly benefited the black economy, since each election produces about 10 billion dollars of black money, as shown by a study conducted by the CMIE (Centre for Monitoring Indian Economy) in 2006. In other words our Black economy is thriving.
The black face of Indian economy

Poverty in India is breeding Maoists and Naxals

782 million Indians Will be Living On Under $2 a Day by 2015
Lalit K Jha/ Washington | Apr 23, 2010
A whopping 782 million Indians will be living on less than two dollars (Rs 100) a day by 2015, a joint report by the World Bank and International Monetary Fund said here today.

The report titled 'Global monitoring report 2010: The MDGs after the crisis, however said the number of poor Indians living on less than two dollars would moderately decline to 686 million by 2020. But the report adds that by the turn of the next decade as many as 268 million Indians would be living on less than 1.25 dollars a day, while in 2015 the figure would be 295 million.

These figures, however, are almost double the revised number of the poor in the country which is pegged at around 400 million.

The report says China reduced its poverty rate from 60 per cent to 16 per cent, as the absolute number of extremely poor fell from 683 million to 208 million between 1990 and 2005.

On the other hand, "India reduced the share of its population living in poverty from 51 per cent to 42 per cent, but because of population growth, the number of poor people actually rose from 436 million to 456 million (between 1990 and 2005)," it said.
782 mn Indians Will be Living On Under $2 a Day by '15

Comment
One can define poverty as lack of marketable skills. There are so many jobs that require very low skills. But you still do not get people to do them. Even the beggars seem to make a cool return on their skills of 'acting'. Where have you seen really poor people? North India perhaps has more of the exploited than the South. But I think, as the Maoist/ Naxal movement shows, they are rising against poverty. One wonders if Maoists are fighting against poverty or for power. One expects the recent polarization of the world to be against exploitation. One perceives India will see a lot of blood shed in coming years. One wishes it is untrue or otherwise?