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INDIA COUNTRY BRIEF

110802

Basic Political Developments

• The B S Yeddyurappa camp appears headed for a major showdown with the rival side at the BJP legislature party meeting tomorrow for the Chief Minister's post.

• Aggressive opposition postures over the 2G spectrum scam, price rise and land acquisition bill disrupted the proceeding of the House on the second day of Monsoon session forcing its adjournment for the day.

• Tamil Nadu Chief Minister Jayalalithaa on Tuesday announced a monthly old-age dole of Rs. 1000 to 5,544 Lankan Tamils living in refugee camps in the state.

• Union Home Minister P Chidambaram's comments seeking the Andhra Pradesh Assembly to reiterate its previous resolution on Hyderabad free zone issue is "senseless".

• Rayalaseema's elected representatives will demand creation of a Rayala Telangana state comprising the Rayalaseema and Telangana regions in case of state's bifurcation.

• Both Houses of Parliament were adjourned till 2 pm, on the second day of the monsoon session on Tuesday, following protests by opposition MPs over the price rise issue and Suresh Kalmadi issue.

• Parliament was informed today that the government has received information about Indians having accounts in Swiss banks and is taking appropriate action to bring back funds stashed abroad.

National Economic Trends

• India on Tuesday sought parliamentary approval for a net 90.16 billion rupees ($2.04 billion) extra spend in the current fiscal year ending March.

Business, Energy or Environmental regulations or discussions

• The United Forum of Bank Unions (UFBU) has called for a nationwide strike on August 5, for demands relating to the banking industry.

• Monnet Ispat & Energy is carrying out due diligience on a coal asset each in Mozambique and South Africa.

• Ranbaxy Laboratories on Tuesday said the company and parent firm Daiichi Sankyo are expanding their business in Mexico.

• As a direct fall-out of the iron ore mining scam in Karnataka, Tata Metaliks Limited might have to close down its Goa plant in a week.

• The Orissa State Government on Monday moved the Supreme Court against withdrawal of environmental clearance to Vedanta group company Sterlite’s bauxite mining project by the Centre in an “arbitrary manner”.

• Steel Authority of India's (SAIL) much awaited follow-on public offer was deferred on account of stock market volatility, the Parliament was informed today.

Activity in the Oil and Gas sector (including regulatory)

Militant Activity/Terrorism (Particularly in Bangalore, Mumbai, Noida, Chennai, Coimbatore)

• The Lok Sabha was informed today that the Government has confiscated over Rs 5.6 crore in cases linked to funding of terrorist activities since 2006.

• Maoists shot dead two persons in Dabua jungle in Bihar's Banka district.

• Two CRPF jawans were injured today in an encounter with Maoist cadre at Thalkobad in Naxal-hit West Singhbhum district of Jharkhand.

• The Current year (up to 26th July 2011) witnessed 999 incidents of naxal violence leading to 333 deaths (241 civilians and 92 security forces).

• Bihar Deputy Chief Minister Sushil Kumar Modi admits Maosits are collecting money to let the projects continue.

Labor/Social Unrest

• TRS students wing TRSV organised road block in all the 10 districts in the region including the state capital.

Full Text

Basic Political Developments

BSY Camp Appears Headed for Showdown With Rivals



The B S Yeddyurappa camp appears headed for a major showdown with the rival side at the BJP legislature party meeting here tomorrow, with the race for the Chief Minister's post narrowing down to D V Sadananda Gowda and Jagadish Shettar.

Yeddyurappa, who quit as Chief Minister following the political upheaval over the Lokayukta report indicting him on illegal mining, has publicly announced that his choice is Gowda, a former state unit party president.

But the rival camp spearheaded by Yeddyurappa's bitter rival BJP National General Secretary H N Ananth Kumar, today made it known they have decided on the candidature of Shettar.

"I, Shettar and (State unit President K S) Eshwarappa were in the contest for Chief Minister's post. After that, we sat together and held discussions. (senior BJP leader H N) Ananth Kumar has also joined us. After discussions, we have felt Shettar may become Chief Minister," Home and Transport Minister R Ashoka told reporters here.

Yeddyurappa has made it known to the party high command that Shettar's candidature would not be acceptable to him. Shettar, a former state unit president, comes from the dominant Lingayat community, to which Yeddyurappa also belongs.

Speaking to reporters in the district headquarters town of Tumkur today, Yeddyurappa, who tendered his resignation on Sunday, said, "Central leaders (Arun Jaitley and Rajnath Singh) are coming (to Bangalore) tonight. I am confident that the next Chief Minister will be by consensus".

Yeddyurappa had also said yesterday that he was confident that national leaders would solve the leadership issue in Karnataka amicably which will be "just and proper".

Jaitley indicated in New Delhi yesterday that choosing a new Chief Minister is being done through a "political process" which may happen by consensus or secret voting.

But Ashoka said today, "as far as I know, it will be by consensus. I don't feel it will go to that level (secret voting)."

On the anti-Sadananda Gowda camp plumping for Shettar, he said: "Eventually, our opinion is not important. Opinion of (all the) legislators and the central leaders is final".

He indicated that the selection process could throw up surprises, saying in the consensus process it can't be said the name being projected as the next Chief Minister would in fact get elected. "When the selection happens through consensus, it could change, anybody can become leader".

Lok Sabha adjourned for day as opposition disrupts proceedings



New Delhi, Aug 2 : Aggressive opposition postures over the 2G spectrum scam, price rise and land acquisition bill disrupted the proceeding of the House on the second day of Monsoon session forcing its adjournment for the day.

As the House assembled in the morning at 1100 hrs and Speaker Meira Kumar called for Questions to be taken up, BSP, SP, BJD, JD(U), CPI(M) and CPI members were on their feet demanding early introduction of the Land Acquisition Bill in Parliament.

The agitating members, carrying placards, trooped into the Well of the House and started shouting slogans, demanding the dismissal of the UPA Government.

They were demanding that the Government bring the Bill to Parliament without any delay.

Ms Kumar tried to pacify them but in vain. Finally she announced adjournment of the House till noon.

When the House reassembeld at noon, the Opposition led by NDA along with BSP members raised slogans on a number of issues including the allocation of 2G spectrum, land acquisition bill and price rise.

The Speaker requested the members to allow the House to function normally but her efforts to calm them bore no fruit.

Finding it impossible to carry on with the business, she adjourned the proceedings again till 1400 hrs.

The Lok Sabha was finally adjourned for the day at 1405 hours within five minutes after resumption in the post launch session as the Opposition were in mood to relent.

The BSP members stormed into the well of the House demanding immediate introduction of the Land Acquisition Bill.

The SP members also rushed to the well, but on a different demand -- removal of the Mayawati Government in Uttar Pradesh for its alleged role in the Greater Noida land scam.

The Shiv Sena MPs also joined the sloganeering members, but they were demanding the hanging of 26/11 culprit Ajmal Kasab without further delay.

Jayalalithaa announces monthly dole for Sri Lankan Tamil refugees



Tamil Nadu Chief Minister Jayalalithaa on Tuesday announced a monthly old-age dole of Rs. 1000 to 5,544 Lankan Tamils living in refugee camps in the state.

An order to this effect has been issued by the Chief Minister, an official press release here said.

“The Chief Minister is concerned about the welfare of the Sri Lankan Tamils staying in refugee camps in the state and, therefore, in the Governor’s address had also announced that various welfare measures will be extended to the Tamils,” it said.

Ms. Jayalalithaa had taken up the plight of Sri Lankan Tamils lodged in camps in the island nation with the US Secretary of State Hillary Clinton when she met her last month, the release said.

After the AIADMK came to power, the Tamil Nadu Assembly also adopted a resolution demanding economic sanctions to “rein in” Colombo on the Sri Lankan Tamils issue.

Ms. Jayalalithaa’s action to provide relief to the Tamils comes a day after her party MPS in the Lok Sabha sought to embarrass a visiting Lankan Parliamentary delegation led by Sri Lankan Parliament Speaker Chamal Rajapaksa.

AIADMK members led by M. Thambidurai were on their feet raising slogans on the Tamils issue as Lok Sabha Speaker Meira Kumar introduced the visitors led by the Sri Lankan Parliament Speaker.

Chidambaram's statement on Hyderabad free zone senseless: TRS



Union Home Minister P Chidambaram's comments seeking the Andhra Pradesh Assembly to reiterate its previous resolution on Hyderabad free zone issue is "senseless", the Telangana Rashtra Samithi alleged in Hyderabad on Tuesday.

"Chidambaram should stop making such senseless statements. The state assembly has already passed a resolution seeking deletion of Clause 14 (F) of the Presidential Order of 1975. The 14 (F) makes Hyderabad a free zone for employment," said TRS floor leader in the assembly E Rajender.

"All the people of Telangana want it to be deleted as it is against the interests of the region. Even the assembly has also passed a resolution. Why reiteration again," he said.

"The CCPA has taken a decision and it was communicated to the Government of Andhra Pradesh that we will recommend to the President to delete clause (f) of Para-14 once we received a resolution from the Andhra Pradesh Assembly reiterating the resolution passed in January 2010," Home Minister P Chidambaram had said in Delhi on Monday.

He also said the resolution in the Andhra Pradesh assembly was passed in January 2010 and therefore the Centre wanted to be absolutely sure that there is a consensus on the demand that the clause F of paragraph 14 should be deleted.

Meanwhile, Rajender appealed the Congress members of Parliament, members of Legislative Assembly and ministers from Telangana "to not abide by the orders of the party high command when the Central leadership discriminated against the region, without respecting the sentiments and aspirations of the Telangana people and leaders".

Diwakar demands Rayala Telangana



HYDERABAD: Rayalaseema's elected representatives will demand creation of a Rayala Telangana state comprising the Rayalaseema and Telangana regions in case of state's bifurcation, state senior Congress leader and former minister JC Diwakar Reddy has said.

Speaking to reporters at the Congress Legislative Party office here on Monday, he hoped that the central government would consider their demand and take an appropriate decision on state's bifurcation issue.

He said Telangana and Seemandhra leaders need not go to Delhi on the bifurcation issue because all the leaders had submitted enough number of representations to the party high command. ``The party leadership will take a final decision after considering all the demands including for Greater Rayalaseema and Rayala Telangana. The Rayalaseema region will get natural justice only in a Rayala Telangana state,'' the Rayalaseema leader said.

Replying to a question he said there was no need for TRS chief K Chandrasekhar Rao to die for Telangana since death would not clinch the issue. Resignations or political threats too would not lead to a solution, he asserted.

Reddy said there was no political uncertainty in the state and the� troubles the state was facing were only created by political parties. The chief minister had the capacity to set right the situation and he� had enough powers to take any decision on any issue. "Telangana ministers are discharging their duties by clearing files from their residences," he said.

Diwakar Reddy demanded that the government take action against TJAC chairman M Kodandaram for demanding resignations of MPs and MLAs, and recalled that in 1969 the then government took action against Samikyandhra NGO union leader Sriramulu and Telangana NGO leader KR Amos.

``The tenure of MP or MLA is not permanent but a government employee remains on permanent payroll to for 33 to 35 years. TJAC chairman is a government employee and has no right to ask elected representatives to resign. Political leaders like TRS chief K Chandrasekhar Rao can demand the resignations of elected representatives but not Kodandaram. The chief minister should take action against Kodandaram. I do not know why he is hesitating.''

Uproar in Parliament over price rise and Suresh Kalmadi issue; Lok Sabh and Rajya Sabha adjourned till 2 pm



NEW DELHI: Both Houses of Parliament were adjourned till 2 pm, on the second day of the monsoon session on Tuesday, following protests by opposition MPs over the price rise issue and Suresh Kalmadi issue.

As soon as both House met, Opposition members rose from their seats, demanding that the question hour be suspended so that debates on price rise and corruption could be held.

Chairman Hamid Ansari immediately adjourned the Rajya Sabha.

In the Lok Sabha, Speaker Meira Kumar made obituary references to pay tributes to two former MPs who died during the inter-session period.

However, when she called for questions to be laid, opposition MPs were on their feet, demanding that discussions on graft and inflation be held first.

The NDA wants a voting debate on price rise. The UPA agreed to a discussion but adamantly refused any voting on price rise.

The NDA also wants to raise the 2G scam afresh after former telecom minister A Raja tried to drag in the Prime Minister's Office (PMO) and the then Finance Minister P Chidambaram.

The session, which started yesterday, is also crucial as nearly 80 bills are to be introduced for discussions. But the government's emphasis is on anti-corruption bills like the Lokpal Bill.

The judicial accountability Bill is also in the pipeline for which the government has kept the judiciary out of Lokpal Bill.

The Opposition also wants to debate the black money issue, price rise, unrest over demand for Telangana statehood, farmers' protest over land acquisition, Maoist violence, rail accidents and the mismanagement of Air India.

Issues like FDI in retail and farmers' agitation on land acquisition could see the Left and the Right making a common cause in Parliament.

The ruling party is expected to counter the BJP on the issue of corruption by pointing fingers at the illegal mining scam in Karnataka.

The Monsoon session is scheduled for five weeks.

Black money: Govt received info on Swiss bank accounts,taking action, says FM Pranab Mukherjee



NEW DELHI: The government has received information about Indians having accounts in Swiss banks and is taking appropriate action to bring back funds stashed abroad, Parliament was informed today.

"We have received some information with regard to some deposits in Swiss Bank", Finance Minister Pranab Mukherjee told the Rajya Sabha.

"Whenever information about money deposited in any foreign bank account is obtained the same is first verified and then action is taken in accordance with law to bring the undisclosed amount to taxation", he said in a written reply.

The Minister, however, did not disclose the names of accounts holders saying that "information received under the Double Taxation Avoidance Agreement (DTAA) is covered by the confidentiality provision of the DTAA".

He was replying to a query on whether the government has received some information regarding black money deposited in Swiss banks.

Mukherjee further said the government has formulated a five pronged strategy in this regard.

This comprised joining the global crusade against 'black money', creating an appropriate legislative framework and setting up institutions for dealing with illicit funds, developing systems for implementation and imparting skills to the manpower for effective action.

Further, in absence of any credible information regarding the quantum of black money, the government has roped in three leading think-tanks NCAER, NIFM and NIPFP to conduct a study on unaccounted income generated inside and outside the country.

National Economic Trends

Extra spending won't impact fiscal gap target: Mukherjee



NEW DELHI: India on Tuesday sought parliamentary approval for a net 90.16 billion rupees ($2.04 billion) extra spend in the current fiscal year ending March and said the additional expenses will not impact its fiscal deficit and borrowing targets.

The government, which plans to spend an additional gross 347.24 billion rupees, will fund the bulk of the extra spending from its internal savings and the remainder through its cash balance, documents presented by the finance minister in parliament showed.

"It (additional spending) will not affect (fiscal deficit) that way if revenue buoyancy is there," Pranab Mukherjee told reporters after seeking parliamentary approval for the higher spending.

"I will keep the borrowing within my limit."

In February, the government had budgeted a total spending of$284 billion for 2011/12, projecting a fiscal deficit target of 4.6 percent of the gross domestic product (GDP).

New Delhi plans to borrow a gross 4.17 trillion rupees ($94.7 billion) in 2011/12, with 60 percent of the target to be completed by the end of September.

With high global commodity prices, particularly oil prices threatening to inflate India's subsidy bill, debt market participants are bracing themselves for a higher fiscal deficit and higher borrowing this year.

Most market participants believe the government will increase its market borrowing by 300 billion to 700 billion rupees, depending on its fiscal performance.

The government has budgeted to spend about $30 billion on major subsidies in 2011/12.

The fuel subsidy bill was budgeted at around $5 billion, assuming global oil prices at below $100 a barrel. Brent crude currently trade above $116 a barrel.

Mukherjee on Tuesday did not provide any additional spending for oil subsidies nor did he specify when he intends to provide for higher spending on oil subsidies.

However, he said the government will again seek parliament's approval for additional spending in November-December.

In June, after dragging its feet for long, the government had raised state-controlled prices of diesel, kerosene and cooking gas to rein in its mounting subsidy bill.

The increase was the first in a year and would pare revenue losses for state-run oil companies by 50 billion rupees to about 1.2 trillion rupees in this financial year.

State-run refiners such as Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum that buy oil at global prices are partially reimbursed for selling fuel at low prices through a complex cross subsidy scheme.

Business, Energy or Environmental regulations or discussions

All India bank strike on August 5



The United Forum of Bank Unions (UFBU), the umbrella organisation of nine trade unions, has called for a nationwide strike on August 5, for demands relating to the banking industry.

UFBU convenor Shyamal Karmakar said their demands include non-privatisation of nationalised banks, no reduction of government stake in public sector banks and no merger of banks, among others.

The unions have been in continuous dialogue on these issues, but there has been no response from the management or the Indian Bank Association, he told reporters in Kolkata on Tuesday.

If the government persists with this attitude, then the agitation would be intensified, he added.

Monnet Ispat doing due diligence on 2 Africa coal assets



NEW DELHI: India's steel and power producer Monnet Ispat & Energy is carrying out due diligience on a coal asset each in Mozambique and South Africa and expects to close a deal in six months, its managing director said on Tuesday.

The company plans to spend about $50-60 million on the coal asset purchase, Sandeep Jajodia told Reuters over the telephone.

Monnet Ispat on Tuesday reported a flat quarterly profit on lower steel volumes and falling power tariff.

Ranbaxy, Daiichi Sankyo to expand business in Mexico



NEW DELHI: Drug-maker Ranbaxy Laboratories on Tuesday said the company and parent firm Daiichi Sankyo are expanding their business in Mexico.

As part of the plan, the two companies will launch Daiichi Sankyo's Olmesartan Medoxomil, used to treat high blood pressure, in Mexico before the end of 2011.

"Daiichi Sankyo and Ranbaxy have agreed to expand the group's business in Mexico with the launch of Olmesartan Medoxomil," the two companies said in a joint statement.

Commenting on the step, Ranbaxy Managing Director Arun Sawhney said: "Mexico is an important emerging market for us and Ranbaxy and Daiichi Sankyo will work together in providing innovative options and solutions to customers through a Hybrid Business Model."

Earlier, in 2009, both firms had announced that the portfolio of Daiichi Sankyo would be commercialised in Mexico through a marketing division within Ranbaxy Mexico SA de CV (RMEX), a subsidiary of Ranbaxy.

Daiichi Sankyo Mexico SA de CV (DSMX), a newly established subsidiary of Daiichi Sankyo, and RMEX will leverage the group's hybrid business model in Mexico.

Ranbaxy's know-how and cost advantages, offering both innovative and affordable, high quality generic medicines, would be utilised by the group's Mexican arms, it added.

Daiichi Sankyo President and CEO Joji Nakayama said: "We are determined to work with Ranbaxy to further serve diversifying medical needs in this strongly emerging market."

Ranbaxy became a part of the Daiichi Sankyo Group in 2008 after Japan's third largest drug-maker bought a majority stake for Rs 22,000 crore.

With an estimated population of 107 million people, Mexico is the 14th largest pharmaceutical market in the world and is the second largest in Latin America. In 2010, the Mexico pharma market size was nearly USD 11.4 billion.

"Daiichi Sankyo and Ranbaxy will continue to reinforce their respective and consolidated business platforms over the longer term by further accelerating their global business coordination," the company said.

Under the hybrid business model adopted by the two firms, Ranbaxy primarily focuses on generic medicine research both for itself and its parent firm, while the new drug discovery programme will be taken up by Daiichi Sankyo.

Shares of Ranbaxy Laboratories were trading at Rs 565 on the Bombay Stock Exchange in the late afternoon today, up 0.62 per cent from their previous close.

Mining scam: Tata Metaliks may close Goa plant



KOLKATA: As a direct fall-out of the iron ore mining scam in Karnataka, pig iron manufacturer Tata Metaliks Limited might have to close down its Goa plant in a week, a top company official said today.

"The iron ore supplies to the Goa plant is halted due to the Supreme Court ban on mining in Karnataka. We may have to close down the plant in a week," Managing Director of Tata Metaliks, a subsidiary of Tata Steel, Harsh Jha said here.

"Closure of the Goa plant will entail a huge revenue loss for the company," he said.

The Goa plant has a capacity of 2 lakh tonne per annum. Jha said the Goa plant depended on iron ore supplies from the Bellary-Hospet belt in Karnataka.

The Supreme Court had ordered a complete ban on mining in Karnataka citing that the forest cover would be totally destroyed because of unlawful operations by mining barons in the region.

He said the Goa plant was contributing Rs 500 crore out of Tata Metaliks' annual revenue of around Rs 1,300 crore. The company was also in the process of acquiring 1,900 acre in Karnataka for its 3-million tonne steel plant.

Jha said the company was in the process of obtaining consent of the people for acquiring 75 per cent and the balance would be acquired by the Karnataka government.

Going by the thumb rule, investment required would be Rs 1,500 crore. The company had also shelved the expansion project at Kharagpur in West Bengal because of delay in acquisition of land by the former Left Front government.

Tata Metaliks had sought 500 acre for expansion at Kharagpur.

Asked whether it was feasible for companies to directly purchase land from the farmers which was the present state government's policy, Jha said "theoretically it is, yes. But practically it is impossible".

SC moved against withdrawal of nod to Vedanta



BHUBANESWAR/NEW DELHI: The State Government on Monday moved the Supreme Court against withdrawal of environmental clearance to Vedanta group company Sterlite’s bauxite mining project by the Centre in an “arbitrary manner”.

�Senior advocate K K Venugopal, appearing for Orissa Mining Corporation (OMC), which is in agreement with Sterlite for bauxite mining at Niyamgiri hills, said former environment minister Jairam Ramesh had passed an order withdrawing the environmental clearance just a day before demitting office.

The order “has been passed in a wholly arbitrary manner” and “it was difficult to understand the need and urgency for issuing the present order of July 11 to withdraw the environmental clearance itself,” the OMC application said.

The Ministry of Environment and Forests (MoEF) withdrew the clearance a day before the Cabinet reshuffle, which saw Ramesh moving to the Rural Development Ministry.� “OMC was surprised to find a day prior to the reshuffle of the Union Cabinet on July 11, the MoEF, after setting aside the recommendations of the sub-group, accepted by the EAC (Environment Appraisal Committee), suddenly stated exactly opposite to what it should have said,” the petition said.

Venugopal submitted that no mandatory notice was given for the withdrawal of the environment clearance granted on August 30, 2010. OMC had approached the apex court three months ago when MoEF had revoked its forest clearance.

A bench of Justices R V Raveendran and Gyan Sudha Misra on Monday issued notice to the MoEF and directed it to file its reply within a week. The matter will come up for hearing after two weeks. The court, meanwhile, also allowed Prafful Samanta, on whose plea the MoEF had taken the action, to file an application to be a party in the matter.� Earlier, on April 21, the apex court, which was acting on an OMC plea, had issued notices to the Orissa Government, the Environment Ministry and Sterlite Industries challenging the cancellation of forest clearance for the Niyamgiri bauxite mining project in the State.

OMC had said that as per the agreement, Sterlite had to pay `55 crore in the wildlife fund and `10 crore annually, or 5 per cent of its annual profits, whichever was higher, for development of the area.

SAIL FPO deferred due to market volatility: Government



NEW DELHI: State-run Steel Authority of India's (SAIL) much awaited follow-on public offer,tentatively scheduled for June this year, was deferred on account of stock market volatility, the Parliament was informed today.

"The transaction for the first tranche, which was tentatively scheduled to open for public subscription in June 2011, has been deferred due to volatility in the share market, coupled with low market price of SAIL scrip," Minister of State for Finance S S Palanimanickam said in a written reply to the Rajya Sabha.

The Minister added that the timeline for opening the issue would be decided in due course based on improvement in market conditions.

The government had approved disinvestment of 10 per cent paid up equity capital in SAIL in April last year, along with the issue of fresh equity of 10 per cent of paid up equity capital by the company, in two discrete tranches of 5 per cent disinvestment and 5 per cent issue of fresh equity each.

Government holds 85.82 per cent stake in the steel maker. This would come down to 76.97 per cent after the first tranche and further to 68.93 per cent after the second tranche.

"Retail individual investors and eligible employees under the employees' reservation portion would be entitled to five per cent price concession," Palanimanickam said.

Activity in the Oil and Gas sector (including regulatory)

Militant Activity/Terrorism (Particularly in Bangalore, Mumbai, Noida, Chennai, Coimbatore)

Govt seizes more than Rs 5.6 cr in terror funds in last 5 years



New Delhi, Aug 2 (UNI) The Government has confiscated over Rs 5.6 crore in cases linked to funding of terrorist activities since 2006, the Lok Sabha was informed today.

"Since 2006 and as on March 31, 2011, 148 FIRs have been registered and in 56 cases charge sheets have been filed. Five persons have been convicted by the competent courts. As on March 31, 2011, cumulatively Rs 5,61,10,492 has been seized/attached/frozen," Minister of State for Home Jitendra Singh said in a written reply.

Mr Singh was replying to a question whether there were inputs regarding instances of terror funding in the country and what action was taken by the government in this regard.

To deal with such cases, the government has constituted a separate cell -- Cell for Combating of Funding of Terrorism -- in the Ministry of Home Affairs, he said.

Mr Singh informed that the Ministry of Home Affairs also constituted a Terror Funding and Fake Currency Cell in the National Investigation Agency last year to focus on terror funding and fake currency cases.

Replying to another question, Mr Singh said a multi-disciplinary school of economic intelligence will be set up to develop various faculties in economic intelligence.

"A decision has been taken at the Economic Intelligence Council meeting held on January 18, 2010 under the chairmanship of Finance Minister to set up multi-disciplinary school of economic intelligence to develop capacity building in the area of economic intelligence," he said.

Maoists kill two persons in Bihar



BANKA (( Bihar)): ( Maoist)s shot dead two persons in Dabua jungle in Bihar's Banka district, police said today.

The Maoists captured Lekhu Yadav and his nephew Manoj in the jungle last night and killed both of them, DGP Neelmani said.

Lekhu Yadav was earlier an activist of the banned CPI(Maoist), he said.

Joint operations have been launched by district armed police personnel in Jamui and Banka districts to nab the ultras.

Two CRPF jawans injured in Maoist encounter



Chaibasa (Jharkhand), Aug 2 (PTI) Two CRPF jawans were injured today in an encounter with Maoist cadre at Thalkobad in Naxal-hit West Singhbhum district.The encounter took place during regular patrolling in the Naxal-hit areas of the district.Superintendent of Police A K Singh said the encounter lasted for about one-and-a-half hours in which two CRPF jawans sustained injuries.Both the jawans were airlifted to a private hospital in Ranchi, he said.Singh claimed that some Maoists also sustained injuries in the encounter.

999 Incidents of Naxal Violence this Year



The Current year (up to 26th July 2011) witnessed 999 incidents of naxal violence leading to 333 deaths (241 civilians and 92 security forces). Central Government under the Security Related Expenditure Scheme grants ex-gratia payment of Rs. 1 lakh to the family of civilian killed and Rs. 3 lakhs to the family of Security personnel killed due to naxal attacks. Besides this, States Governments have their own policy for payment of ex-gratia to the families of civilians and security personnel killed in naxal attacks. State wise and district wise details are not centrally maintained.

The Central Government has adopted an integrated two-pronged approach to deal with left Wing extremism. The first prong is development. The Integrated Action Plan with an outlay of Rs. 1500 crores in 2010-11 and Rs. 1800 crores in 2011-12 is an example of the many development plans that are being implemented in the affected districts. The second prong is maintenance of law and order, and State Governments have taken calibrated police action to apprehend extremists.

This was stated by Shri Jitendra Singh, Minister of State in the Ministry of Home Affairs in written reply to a question in the Lok Sabha today.

Naxals put price tag on road projects in Bihar



Jehanabad, Arwal V N Mishra says he cannot remember how many threat calls he has received since he joined as a project manager on M/s MBL Infrastructure Ltd’s road project in Aurangabad.

Officers at work on projects in Bihar’s Naxal belt have come to expect these calls, as well as demands by Maoists to pay up a levy — one of the worst-kept secrets of the upcoming construction projects here.

Bihar Deputy Chief Minister Sushil Kumar Modi admits Naxals are collecting money to let the projects continue. “The government does not deny levy collection but construction companies have to tell us so we can provide them security cover. We have already given security guards at some places,” he says.

Several area commanders arrested in Aurangabad and Gaya have admitted to charging levy up to 7-10 per cent of the project cost. “If the quality of work is poor (correspondingly the profit margin of company will be higher), Maoists even bargain for up to 20 per cent levy of the project cost,” said a police officer in Aurangabad.

When the project gets delayed, more money comes in, and consequently, flows into Naxal pockets. One estimate for rise in project costs is an average of at least 20 per cent.

A CPI (Maoist) politburo member arrested recently in Gaya, Jagdish Yadav, reportedly told police he had collected at least Rs 5 crore as levy in the Aurangabad and Gaya jungles.

Forty Central government road projects are under way in areas hit by Left Wing Extremism (LWE) in Bihar — 15 in Gaya, 14 in Jamui, six in Aurangabad and five in Jehanabad — all started under the Nitish Kumar regime, the earliest in 2009. The cumulative project cost works out to Rs 497.94 crore, to build 468 km of roads. Till May 27, work was finished on 220.4 km. The Asian Development Bank (ADB) is funding state highways worth nearly Rs 700 crore in Gaya, Aurangabad and Jehanabad.

Incidentally, Chief Minister Nitish Kumar has been accused of taking a “soft line” on Naxals, in opposing Operation Green Hunt and inviting them to contest elections.

It was in 2009 end that work started on the 78-km Shivganj-Rafiganj-Goh-Uphara-Devkund-Baidarabad road stretch, where Mishra is posted. It is running behind its February 2012 deadline, with Kolkata-based M/s MBL Infrastructure Ltd having completed work only on a 15-km stretch. However, even if they want to step up the pace of work, they can’t continue beyond 6 pm; there is no guarantee of police help as dusk sets in.

The company did try to offer some resistance initially, but paid the price — four dumpers were torched in November 2010 and two JCB machines and two tractors burnt last May.

MBL Infrastucture Ltd’s administration manager H Mishra admits he got an anonymous call to deposit Rs 25 lakh the day after he had joined. All private guards of the company are deliberately kept unarmed to prevent any weapon loot by ultras. Government officials themselves do their best not to stand out in the Red belt. Many park their vehicles at Aurangabad and move around on motorcycles to pass off as locals. V N Mishra says he can’t imagine bringing his family where he works.

Villagers openly talk of Bihar Jharkhand Special Area Committee (BJSAC) members Bhupendra Baitha and Shivshankar Baitha alias Tyagiji being in charge of levy collection in their area. Lower-level functionaries are sent with the demand, before the “deal” is struck.

Take the case of another major project supported by the ADB — construction and repair of the Dumaria-Imamganj-Sherghati, Guraru-Tekari-Ranitalab road stretch of 153 km. The construction company is M/s Gammon India Ltd, Mumbai. The stretch crosses the Naxal belt of Gaya. Though company officials have not lodged a complaint, they have been apprising police of “disturbances”. Special area committee member Sandeep is in-charge of this area. Gammon India is also way behind its deadline of December 2012.

Says Magadh range Deputy IGP Umesh Kumar: “We cannot deny levy collection from construction companies but none of them is coming forward with complaints.” He says at least some construction companies deliberately delay work, which allows them to extend their contracts. If firms give him a fixed duration for security needed, it can be provided, he adds.

Says the 131 CRPF battalion Commander, B C Patra: “We have nabbed 25 hardcore Naxals in the past three years. All of them have given district police details on how they collect levy. Jay Paswan and Pintu Yadav, now in jail, had told us about 10-20 per cent levy collection.” Three CRPF companies are stationed in Jamui alone to assist state police in fighting Naxals.

When the police have intervened on the basis of a complaint by a company, the price has been heavy. Last September, eight policemen were killed and three taken hostage after they ventured into Maoist hideouts following complaints by some road construction companies of heavy collection.

Since then, no road company has faced any “problems” in the Banka-Jamui-Munger zone, suggesting money has changed hands smoothly and quietly.

Labor/Social Unrest

Rasta Roko across Telangana peaceful



Express News Service , The New Indian Express

HYDERABAD: As part of TRS' fresh agitation demanding deletion of Clause 14 (f) from the presidential order which makes Hyderabad a free zone in the matter of employment, its students wing TRSV organised rasta roko in all the 10 districts in the region including the state capital.� TRS clamed that the rasta roko was the precursor to TJAC-proposed Sakala Janula Samme from August 17.� Traffic was disrupted on several roads including national highways and police arrested TRSV activists for causing obstruction but released them later.� In the state capital rasta roko was organised at Amberpet, Nizam College centre and Secunderabad. Students staged a big rally in Kukatpally. In Rangareddy district traffic was affected at Vikarabad, Tandur, Pargi and Maheswaram. In Medak district rasta roko was held at Sanganreddy, Medak and Siddipet, and national highways 7 and 9 were blocked at several places.

The TRS and TRSV jointly organised the protest in Nizamabad district at Nizamabad, Armoor and Kamareddy. In Adilabad district also TRS and TRSV jointly organised the programme at Mancherial, Nirmal and Adilabad. TRS district president Sri Hari Rao also took part in the programme.� The rasta roko programme caused mild tension in Mahaboobnagar town.

A large number of students took part in the programme in Warangal district. Kakatiya University Joint Action committee leaders led the protest which was held for about an hour.� In Nalgonda district the programme was held at Nalgonda, Narketpally, Nakrekal and some other places. Traffic on the Hyderabad-Buvanagiri state highway was affected for some time, according to TRS district president Bandari Narendar Reddy. Rasat Roko was also held in Khammam, Palvancha, Kothagudam several other places in the district.

TRSV president B Suman told Express that they would intensify the movement in the coming days.

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