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INDIA COUNTRY BRIEF

110525

Basic Political Developments

• The Telangana political Joint Action Commitee (JAC) today appealed to the people not to cooperate with the Telugu Desam Party (TDP public meeting proposed at Karimnagar.

• Rahul Gandhi today asked the workers of Youth Congress and National Students' Union of India (NSUI) to work for strengthening the two organisations at the grassroot level.

• After the severe drubbing at the hustings in West Bengal, the CPI today said it would witness leadership change at the party Congress next year.

• After meeting his daughter and DMK MP Kanimozhi at the Tihar Jail on Monday, DMK chief M Karunanidhi has said that Kanimozhi is confident of handling things herself. The 87-year-old DMK chief, extremely upset, made his unhappiness clear and did not meet Congress leader Sonia Gandhi on a trip to Delhi for the first time since their parties became partners seven years ago. Speaking to reporters in Chennai today, Karunanidhi said he did not meet Sonia Gandhi as it would have been inapproporiate with his daughter in jail.

National Economic Trends

• The Sonia Gandhi-led National Advisory Council (NAC) has suggested the government to give a legal right to food to both priority and general categories of the population under the proposed National Food Security Act.

• The RBI has said efforts are needed to improve farm productivity, develop rural infrastructure and revamp PDS to address supply side issues and contain inflation.

Business, Energy or Environmental regulations or discussions

• Bharti Airtel will invest $1 billion (about Rs.4,500 crore) in Africa to expand its network throughout the 16 countries.

• Suzlon Energy said on Wednesday it signed a contract with African Clean Energy Developments for the supplying of up to 200 wind turbines.

• Ashok Leyland said on Wednesday it had won an order worth $23.3 million from Bangladesh Road Transport Corp.

• Land acquisition by the Orissa government for Posco steel project was progressing smoothly.

• GMR Group is in talks with multiple potential partners including Prathap Reddy's Apollo Hospitals Group and US-based healthcare provider Mayo Clinic to set up a large hospital project in Hyderabad.

Activity in the Oil and Gas sector (including regulatory)

• Cairn India Ltd (CIL) today reported a 10-fold jump in its quarterly net profit.

• Solicitor General Gopal Subramanium has reaffairmed that the government can impose preconditions like equitable sharing of royalty in the all-important Rajasthan block for clearing Vedanta Resources' takeover of Cairn India.

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

• Dima Halam Daoga(Jewel) today urged Chief Minister Tarun Gogoi to take immediate steps to ensure peace talks with it and the release of its jailed leaders.

• Defence Minister A. K. Antony today said the terror attack on Pakistan''s military base was a matter of concern, and added that India was closely monitoring the developments there.

• About 250 kg explosives, suspected to be smuggled to Naxals, were today recovered by BSF in a village in Orissa's Koraput district.

• A low-intensity bomb exploded on Wednesday outside the busy Delhi High Court triggering panic but no one was injured.

• A terrorist of the Lashkar-e-Taiba (LeT) group was killed by security forces in Doda district of Jammu and Kashmir on Wednesday morning.

• The CBI officials has started investigating the ‘encounter’ of CPI (Maoist) spokesperson Cherukuri Rajkumar alias Azad.

• Different Naxal organisations including outlawed CPI(Maoist) observed 45th Naxalbari Day on Wednesday commemorating the Naxalbari peasants uprise in 1967 in a small area of north Bengal.

• A day after nine Chhattisgarh policemen were killed by Naxalites near the Sunabeda wildlife sanctuary in Orissa’s, local authorities were grappling with several puzzling questions surrounding the incident.

• A Maoist zonal commander was arrested from a hideout in Bihar's Gaya district today.

Labor/Social Unrest

• The agitation by tribals in Goa for various demands turned violent today.

Full Text

Basic Political Developments

JAC: TDP should make their stand clear on Telangana



Hyderabad, May 25 (PTI) Demanding that the Telugu Desam Party (TDP) take a clear stand on the separate statehood issue, the Telangana political Joint Action Commitee (JAC) today appealed to the people not to cooperate with the party for a public meeting proposed at Karimnagar.

"Telugu Desam Party should take a clear stand on Telangana. Without taking a clear stand whatever they say in support of Telangana will not have credibility," JAC Convenor M Kodandaram told reporters here.

He appealed to the Telangana people and other supporters not to cooperate with the party over the public meeting proposed to be organised by TDP at Karimnagar today.

TDP leaders had submitted separate region-wise representation to the Sri Krishna Committee. The party did not submit a single stance on the Telangana issue to the committee which has been the object of sharp criticism from TRS and other pro-Telangana groups.

Rahul for strengthening of Youth Cong, NSUI



Rishikesh (Uttarakhand), May 25 (PTI) Congress general secretary Rahul Gandhi today asked the workers of Youth Congress and National Students' Union of India (NSUI) to work for strengthening the two organisations at the grassroot level.

Addressing a meeting of the two organisations here, Gandhi said the Assembly elections in Uttar Pradesh and Uttarakhand are due next year and the role of workers of Youth Congress and NSUI will be crucial in getting the party to power.

The organisations should be strengthened at the grassroot level and they should try to associate more youths especially students with the party, he said.

Earlier, Gandhi reached the holy town amid tight security where he was received by the office bearers of Youth Congress and NSUI.

Gandhi is also expected to travel to Mussoorie to take part in a programme at Lal Bahadur Shastri National Academy of Administration.

CPI to witness leadership change next year: AB Bardhan



Published: Wednesday, May 25, 2011, 17:02 IST

After the severe drubbing at the hustings in West Bengal, the CPI today said it would witness leadership change at the party Congress next year.

However, general secretary AB Bardhan said the proposed change in leadership had "nothing to do" with the recent debacle suffered by the Left, especially in the strongholds of West Bengal and Kerala.

"Our party constitution provides that no General Secretary can continue for more than three terms. All I can tell you is that there will be a change as far as the CPI is concerned. I have completed my term," the 86-year-old communist leader said in response to a question at a press conference here.

"We will have our 21st party Congress in Patna in March next year. That is where a new leadership is elected. But this change has nothing to do with the recent developments. We always take responsibility both at the collective and individual levels," Bardhan, who succeeded Indrajit Gupta as CPI General Secretary in 1996, said.

Briefing journalists on a two-day meeting of the party's National Executive here, he said the CPI and other parties would sit together and decide on launching nationwide agitations soon on the policies of the UPA government.

The issues to be raised during these protests would include price rise, food security, land acquisition and corruption.

Kanimozhi confident of handling things herself: Karunanidhi

NDTV Correspondent, Updated: May 25, 2011 18:03 IST



Chennai: After meeting his daughter and DMK MP Kanimozhi at the Tihar Jail on Monday, DMK chief M Karunanidhi has said that Kanimozhi is confident of handling things herself.

The 87-year-old DMK chief, extremely upset, made his unhappiness clear and did not meet Congress leader Sonia Gandhi on a trip to Delhi for the first time since their parties became partners seven years ago. Speaking to reporters in Chennai today, Karunanidhi said he did not meet Sonia Gandhi as it would have been inapproporiate with his daughter in jail.

"Kanimozhi is confident she can handle things. I didn't meet Sonia, it would not be appropriate when my daughter is in jail. The law will prevail," said Mr. Karunanidhi.

Karunanidhi, in frail health, was in the Capital to meet his daughter Kanimozhi at the Tihar Jail. Kanimozhi - a DMK Rajya Sabha MP who has been in jail since last Friday for her alleged role in the 2G case - described that meeting as "very emotional" and said both father and daughter had cried. The DMK chief extended his stay by a day, waiting for word on Kanimozhi's bail plea in the Delhi High Court. He finally left for Chennai on Tuesday evening.

Kanimozhi has been charged by the CBI with allegedly conspiring with former Telecom Minister A Raja and accepting a Rs. 214-crore bribe via Kalaignar TV, in which she owns 20 per cent stake. Raja, a DMK MP and a Dalit leader, has been in Tihar Jail since February for allegedly planning and executing the 2G scam when he was Telecom Minister in 2008. A company that he favoured allegedly sent him the massive bribe.

National Economic Trends

Govt may give both BPL & APL families legal right to food



New Delhi, May 25 (PTI) The government is likely to give a legal right to food to both priority and general categories of the population under the proposed National Food Security Act, as suggested by the Sonia Gandhi-led National Advisory Council (NAC).

There were differences between the NAC and the Rangarajan Committee on giving a legal right to food to general category, or above poverty line (APL) families.

While the NAC had suggested giving a legal cover to both the priority (below poverty line, or BPL) and general categories, the Rangarajan Committee was not in favour of giving such a right to the 'general' population due to supply constraints.

"There is no difference of opinion for priority category.

The differences are on general category. NAC is saying give legal entitlement, while the Rangarajan committee is saying no legal entitlement for the general category.

Addressing supply side issues must for taming inflation:RBI



Mumbai, May 25 (PTI) Seeking cooperation of states in containing price rise, the RBI has said efforts are needed to improve farm productivity, develop rural infrastructure and revamp PDS to address supply side issues and contain inflation.

"....They (states) could for instance, help better management of Public Distribution System (PDS) and improve productivity in agriculture and allied activities.

"There is also need for reform in the Agriculture Produce Marketing Committee (APMC) Acts among other measures ," RBI governor D. Subbarao said while speaking at 24th Conference of the State Financial Secretaries here.

The Government data released on May 17 showed a minor dip in headline inflation to 8.66 per cent in April, driven by a moderation in food and manufactured items prices.

Business, Energy or Environmental regulations or discussions

DLF to raise up to Rs 7,000 cr from sale of non-core assets



New Delhi, May 25 (PTI) DLF, the country's largest realty firm, plans to raise up to Rs 7,000 crore in the next 2-3 years from the sale of non-core assets to cut its net debt, which currently stands at a whopping Rs 21,424 crore.

In a presentation, DLF said it has raised the divestment target for non-core assets (including land parcels) to Rs 10,000 crore from Rs 4,500 crore earlier.

The company has already raised Rs 3,070 crore so far from divestment of non-core assets such as hotel plots and out of that, Rs 1,270 crore was garnered last fiscal.

"Non-core asset divestments to gain momentum... Rs 6,000- Rs 7,000 crore of asset divestments expected in next 2-3 years," the company said, adding that it is hoping for higher realisation on some assets planned for sale this fiscal.

RBI reference rates for U.S. dollar, euro



The Reserve Bank of India (RBI) on Wednesday fixed the reference rate for the U.S. dollar at Rs. 45.38 per dollar and the euro at Rs. 63.70 per euro, as against Rs. 45.25 per dollar and Rs. 63.58 per euro yesterday.

In a press release issued by the RBI, the exchange rates for the pound and yen against the rupee were quoted at Rs. 73.3137 per pound and Rs. 55.43 per 100 yen, based on reference rates for the US dollar and cross-currency quotes at noon.

The reference rate is based on the noon rates of select banks in Mumbai and the SDR-rupee rate would be based on this rate, the release added.

Bharti to invest $1 b in Africa: Mittal



Consolidating its operations in Africa, Bharti Airtel will invest $1 billion (about Rs.4,500 crore) in the continent to expand its network throughout the 16 countries.

“We have already invested $11 billion here and have committed nearly $1 billion investment for this year for expansion of our network,” Bharti group chief Sunil Mittal told PTI.

Asked whether the company was looking at more acquisitions in the region, he said, “At the moment we are focussing on our 16 countries and for any future expansion in Africa, we will see as the opportunities come, as there is nothing on the table at the moment.”

He, however, said that there were great opportunities in the region and recommended his fellow businessmen from India to explore investment options here.

“In my view, Africa offers a long-term opportunity for Indian businesses in manufacturing, agriculture, services and it is my desire and recommendation that more and more Indian businesses should participate in Africa,” Mr. Mittal said.

Last year, in the largest ever telecom takeover by an Indian firm, Bharti had acquired Kuwait-based Zain Telecom's African business for $10.70 billion (about Rs.48,000 crore).

The closure of the deal had implied that Bharti had received all the approvals from the governments and regulators of each of these 16 nations.

During 2010-11, Airtel's Africa operations reported a net loss of Rs.480 crore, while revenues stood at Rs.13,083 crore.

“Out of 16 countries many are profitable, most of them are profitable. As far as Africa is concerned, we have to grow in Nigeria, we have to grow in Ghana, Uganda, Kenya — these are few countries where we have to step up,” he said.

At the end of the fourth quarter, the company had 44.2 million GSM mobile customers on its network. During the quarter, the company added 2.1 million customers. The ARPU (average revenue per user) for the quarter was $7.2 a month. The blended monthly usage per customer, during the quarter was at 115 minutes. With the help of Africa operations, Bharti has become world's fifth largest mobile operator in terms of subscribers. Total user base of Bharti in 19 nations stands at over 185 million.

The company has also launched its brand Airtel in all 16 African countries.

PNB to acquire up to 33% in MetLife India; stock up



MUMBAI: Punjab National Bank is close to buying as much as 33% stake in MetLife India that will boost fee income for the state-run bank and provide the US insurer with the second-best financial distribution platform in the country.

"PNB is in talks to pick up to 33% stake in MetLife," said a person familiar with the negotiations. "The deal may be finalised in the next few days," he added.

Four more people familiar with the negotiations said the discussions on valuations are continuing. There is no certainty that the transaction will take place.

At 10:24 am, shares of Punjab National Bank were trading 0.08 per cent up at Rs 1050 on the Bombay Stock Exchange.a

The discussions between PNB and MetLife also involve Jammu & Kashmir Bank , which owns 13% of the insurer. The state-run lender may buy out other shareholders such as J&K Bank and Shapoorji Pallonji & Co. There's no decision on that yet, the people said.

MetLife Insurance managing director Rajesh Relan said the company would not comment on speculation. "We are one of the three short-listed companies by PNB as per their process and the discussions with the management are yet to begin," said Mr Relan.

PNB did not commit on the transaction either.

"It would be premature to say we have zeroed in on MetLife. The bank will take a final decision based on the financial valuation report," said PNB executive director MV Tanksale.

A senior bank executive in the know of the development said the deal is expected to be valued in the range of 12-13 per share. The bank in April had short-listed three insurance companies including MetLife, Aviva and Bharti Axa Life Insurance for the commercial bid. A banker involved in the deal said: "PNB wanted to invest in a insurance company which would offer it higher stake at an attractive price."

MetLife is a JV between Jammu & Kashmir Bank, Shapoorji Pallonji & Co, US-based MetLife International and private shareholders. PNB is likely to buy out the stakes of J&K Bank and other private investors. J&K Bank's stake has come down to 13% from 25% when the JV was started in 2001.

In 2010, MetLife had lost its bancassurance partner Axis Bank to Max New York Life. This resulted in a drop in their business. The new-business premium income fell by 34% in 2010-11 to 1,067 crore from 703.95 crore in 2009-10.

"All banks have aspirations to become universal banks and participate in various segments like broking, asset management and wealth advisory. Also, this is a good way to capture customer and cross sell. In India, the cost of distribution is very high so costs for insurers come down," said a partner with KPMG.

Suzlon Energy signs contract for supply of up to 200 turbines



MUMBAI: Indian wind turbine maker Suzlon Energy said on Wednesday it signed a contract with African Clean Energy Developments for the supplying of up to 200 wind turbines.

Installation is expected to commence in late 2011 or early 2012, the company said in a statement.

Ashok Leyland wins order worth $23 mn



MUMBAI: Ashok Leyland, India's second largest commercial vehicle maker, said on Wednesday it had won an order worth $23.3 million from Bangladesh Road Transport Corp.

The order was for 290 fully built double decker buses, the company said in a statement.

Land acquisition for Posco steel project progressing smoothly



BHUBANESWAR: Land acquisition by the Orissa government for the Rs 52,000 crore Posco steel project was progressing smoothly with 51 betel plantations being acquired in Jagatsinghpur district today.

The betel plantations were acquired at Bhuyanpala, Polanga, Bayanala and Noliasahi areas, Additional District Magistrate (Paradip) Sarojkant Choudhury said.

"Land acquisition is progressing at full steam with the cooperation of villagers," he said.

Over Rs 75 lakh was paid as compensation to the land losers and there was no opposition to the drive, he said.

After a two-day break on Saturday and Sunday, land acquisition began as members of the United Action Committee decided to cooperate with the administration following talks with senior officials on Monday.

GMR Group in JV talks with Apollo Hospitals & Mayo Clinic for $1 billion healthcare foray



Infrastructure conglomerate GMR Group is in talks with multiple potential partners including Prathap Reddy's Apollo Hospitals Group and US-based healthcare provider Mayo Clinic to set up a large hospital project in Hyderabad where it plans to invest close to $1 billion, two people said on condition of anonymity because the talks are private.

One of the people quoted above said that GMR plans to use the surplus land it owns around the Hyderabad airport to build what could be one of the largest hospitals in Asia and wants to rope in partners of international repute for the same.

The discussions between GMR, Apollo Hospitals and Mayo Clinic are at a preliminary stage and may not result in a deal, according to the person quoted above.

The three parties are in talks to form a joint venture company to execute the project.

A spokersperson for GMR said in response to queries from ET Now, "There is nothing definitive as yet. Yes, we are talking to at least a couple of leading hospitals for a possible tie-up for our Health Port in Hyderabad but no details are currently available for confirmation to you".

Suneeta Reddy, Executive Director, Finance, at Apollo Hospitals Enterprises Limited said in an emailed response to queries regarding the potential transaction, "At this time there are no facts to validate this information".

Mayo clinic did not respond to emailed queries.

Mayo Clinic is a not for profit organization that runs a number of clinics, hospitals and medical research facilities and schools in different parts of the USA. The group reported revenues of over $7.5 billion for the year 2009. Mayo Clinic reinvests all the profits it makes into the various medical facilities that it operates.

Large hospital chains such as Apollo Hospitals and Fortis Healthcare are looking at ways to tap the market for medical tourism in India, where world-class healthcare facilities and doctors are available at lower costs.

"GMR will also benefit from a project of this nature as it will complement its airports business if the hospital is able to attract a large number of overseas patients", one person familiar with the company's plans said

Vikram Oberoi revokes all pledged shares in EIH; shares fall



NEW DELHI: Hospitality chain EIH Ltd that operates Oberoi and Trident hotels and resorts across India today said the company's Chief Operating Officer and Joint Managing Director Vikram Singh Oberoi has revoked 9.5 lakh equity shares held by him in the company.

In a filing to the Bombay Stock Exchange, the company informed that Vikram Oberoi has revoked 9.5 lakh shares on May 16. Following the revocation, Vikram Oberoi does not have any shares pledged.

Vikram Oberoi, son of EIH Chairman PRS Oberoi, holds over 51 lakh shares in the company.

EIH Ltd'S scrips closed at Rs 80.40 per share, down 2.07 per cent on the Bombay Stock Exchange.

iPhone 4 to be launched in India on May 27



NEW DELHI: Telecom operators Bharti airtel and Aircel today said they will start selling Apple's iPhone 4 in India from May 27.

"With a robust roll out of Aircel's 3G services in 13 circles across India, the launch of iPhone 4 will allow our consumers to truly savour the 3G experience," Aircel Director Sandip Das said in a statement.

"With our incredible new price plans, we aim to make iPhone more affordable than ever," Das said.

Growing smartphones sales are expected to get a further fillip with the roll out of 3G services in the country. 3G services, which offer high-speed internet access, have already been rolled out by both Aircel and Bharti airtel.

About 12 million smartphones are expected to be sold in India during 2011, according to a CyberMedia Research study.

Aircel said it will offer customers a range of flexible service plans for both post-paid and pre-paid mobile customers.

Following an upfront payment of Rs 34,500 for the 16GB model and Rs 40,900 for the 32GB model, customers will have the opportunity to recover 100 per cent of their upfront iPhone cost in monthly credits on Aircel's service plan over a period of 24 months, it said.

A Bharti airtel spokesperson said the company would launch the iPhone 4 on the same day.

Bharti airtel is India's largest mobile phone operator (by subscriber-base) with more than 162 million subscribers, while Aircel has nearly 55 million users.

India is the world's second-largest market, after China, for telecom services with 811.59 million subscribers at the end of March, 2011.

US-based Apple Inc , the inventors of iPod, iPhones and iPads, launched the iPhone 4 in the US last year, with a starting price of USD 199.

The handset is equipped with a sharper screen and video-chat features and attempts to ward-off competition from devices running Google's Android software.

iPhone, the touch screen handset that acquired a cult status in the US and other western countries, was launched for the first time in India in 2008. Following the launch, the new upgrades have also been introduced in the Indian market.

The iPhone 4 will have a 3.5 inch display with 640 X 960 pixel resolution, two cameras and a 5-megapixel camera with built-in LED flash.

Activity in the Oil and Gas sector (including regulatory)

Cairn India net jumps 10-fold on higher oil price



New Delhi, Mar 25 (PTI) Cairn India Ltd (CIL) today reported a 10-fold jump in its quarterly net profit on back of higher crude oil price and consistent performance at the nation's biggest onshore oilfield in Rajasthan.

Consolidated net profit in the fourth quarter through March rose to Rs 2,457.79 crore from Rs 245.19 crore an year earlier, the Indian unit of Edinburgh-based Cairn Energy Plc said in a statement here.

While 2010-11 was the first full year of safe and consistent operations at Rajasthan oil fields, Cairn realised USD 94.2 per barrel for oil produced in January-March quarter as opposed to USD 71 per barrel the previous year.

Mangala, the biggest oilfield in the Rajasthan block, is currently producing 125,000 barrels per day but has potential to go up to 150,000 bpd without any new investment.

Govt can put preconditions on Cairn-Vedanta deal, reaffirms SGI



NEW DELHI: In a setback to the Cairn-Vedanta deal , Solicitor General Gopal Subramanium has reaffairmed that the government can impose preconditions like equitable sharing of royalty in the all-important Rajasthan block for clearing Vedanta Resources' takeover of Cairn India.

Contrary to media reports, the nation's second highest law officer has reiterated his earlier opinion that Cairn or its successor should share cess and royalty with state-owned Oil and Natural Gas Corp (ONGC) in the Rajasthan block.

In his second opinion, which was sought by Finance Minister and head of a ministerial panel vetting the USD 9.6 billion deal Pranab Mukherjee , the SGI said, "The government is not bound to grant consent ipso facto or mechanically."

The precondition that Cairn/Vedanta agree to cost-recovery of Rs 18,000 crore in royalty that ONGC has to pay on the Rajasthan block would be "defensible on parameters of public and national interest," the SGI said in the second opinion.

In his first opinion on March 24, the SGI had categorically stated that transfer of Cairn India shares to Vedanta should be allowed only if the latter agrees to treating royalty paid by ONGC as cost-recoverable from its revenues.

ONGC owns a 30 per cent stake in Cairn India's mainstay Rajasthan block, but is liable to pay royalty on the entire output from the field. Cairn is also contesting its liability to pay a Rs 2,500 per tonne cess on its 70 per cent share.

But unlike royalty, it is treating cess as a cost-recoverable item. All cost-recoverable items like capital and operating expenditure are first deducted from revenues earned from the sale of oil before profits are shared between stakeholders, including the government.

Cairn Energy, which is selling a 40 per cent stake in its Indian unit to Vedanta, and the London-listed mining group are opposed to making royalty cost-recoverable as it will lower the profitability of Cairn India.

"The purpose of consent is the provision of a power to regulate the performance of obligations which arise under a contract and not to defy them. Hence, a consent can be conditional," the SGI said in the second opinion on April 6.

The government "cannot deny consent except on logical grounds. Such conditions as preserve many different components of public interest can be validly imposed. The conditions must be borne out of fairness, vigilance and public interest," he said.

The Group of Ministers headed by Mukherjee is slated to meet on May 27 to discuss imposing preconditions on approving the deal. The GoM recommendation will go to the Cabinet Committee on Economic Affairs (CCEA), which had on April 6 asked the ministerial panel to vet the deal.

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

DHD(J) urges for government steps to ensure talks



Guwahati, May 25 (PTI) Dima Halam Daoga(Jewel) today urged Chief Minister Tarun Gogoi to take immediate steps to ensure peace talks with it and the release of its jailed leaders.

DHD(J) deputy chairman P Dimasa in a statement said the demands of the outfit were all within the limits of the Constitution and had nothing to do with sovereignty.

There was no sign of the issues being resolved though nearly one and half years had elapsed since the outfit surrendered arms in October 2009.

"We feel betrayed as ULFA has started peace talks with the government though it has not laid down a single arm even when they have been demanding sovereignty," Dimasa said.

Antony reviews naval security in wake of Karachi attack



New Delhi, May 25 : Defence Minister A. K. Antony today said the terror attack on Pakistan''s military base was a matter of concern, and added that India was closely monitoring the developments there.

"The development in Pakistan, particularly in Karachi, is a matter of serious concern. We are closely monitoring the situation 24X7 in Pakistan," Antony told reporters during a navy function here.

"We are taking precautions. We are always taking precautions. We have to be on vigil," he added.

The Defence Minister''s remarks came in the wake of the recent 17-hour siege of Karachi''s Mehran Naval Station by Pakistani Taliban militants, who entered PNS Mehran on Sunday night, destroying two US-supplied maritime surveillance aircraft and killing ten military personnel.

BSF seizes 250 kg explosives in Orissa



Bhubaneswar, May 25 (PTI) About 250 kg explosives, suspected to be smuggled to Naxals, were today recovered by BSF in a village in Orissa's Koraput district, officials said here.

Acting on a tip-off, a team of Special Operation Group of Border Security Force found the high-quality explosives packed in 40 packets from the village.

"The search operation is on and we are questioning people in this regard," a BSF official said.

Many districts of Orissa are affected by Naxalism and central para-military force personnel are carrying out anti-Maoists operations in the state.

Low-intensity explosion outside Delhi High Court



A low-intensity bomb exploded on Wednesday outside the busy Delhi High Court triggering panic but no one was injured.

The explosive, kept in a packet near a car belonging to a lawyer, went off at 1.15 p.m. causing panic, police said.

The car caught fire after the explosion. Personnel of the Delhi Police’s Special Cell, anti-terror unit and Bomb Detection and Disposal Unit were immediately rushed to the site along with Fire Brigade.

Delhi Police Special Commissioner (Law and Order) Dharmendra Kumar said the blast was caused by a low-intensity explosive in which no one was injured.

“It was not a life-threatening blast... It was a small blast... The explosion took place in a small plastic bag,” he said.

“The bag was kept outside the car, just near the bonnet,” Kumar said, adding even the car was not damaged by it.

He said the type of explosive is unknown and the samples have been sent for forensic examination.

Fierce gunbattle in Jammu and Kashmir



25 May 2011, 1426 hrs IST,

A top Lashkar-e-Toiba (LeT) militant was killed in an overnight encounter in Handwara area of north Kashmir's Kupwara district, officials said on Wednesday (May 25).

The encounter broke out in Laribal village of Zachaldara, 100 kms from here, in Kupwara district last night after security forces launched a cordon and search operation in the area, they said.

According to intelligence inputs, two militants were hiding in a house in the village. When the gunfight between the ultras and security personnel broke out, the house in which the militants were hiding caught fire, the officials said.

Although the identity of the slain ultra remains unknown as his body has been charred in the fire, the officials said he is believed to be Fahadullah, a top LeT militant hailing from

Pakistan.

"So far the body of a militant has been recovered while search of debris is going on for the other militant," they said.

An AK rifle, two magazines and some communication equipment have been recovered from the site of encounter, the officials said.

LeT terrorist killed in Kashmir, commander escapes



IANS | May 25, 2011, 10.34am IST

JAMMU: A terrorist of the Lashkar-e-Taiba (LeT) group was killed by security forces in Doda district of Jammu and Kashmir on Wednesday morning, but a top commander managed to escape, police said.

A joint party of the Jammu and Kashmir Police and the army raided a hideout of LeT commander Salman in Bharath area of the mountainous Doda district, about 200 km northeast of Jammu.

One militant was killed in the ensuing gunfight, a police officer told IANS over phone.

However, the commander managed to escape, he added.

CBI visits Azad killing site



HYDERABAD:The CBI officials who are investigating the ‘encounter’ killing of CPI (Maoist) spokesperson Cherukuri Rajkumar alias Azad and journalist Hemachandra Pandey in the Adilabad forests, on Tuesday enquired the Adilabad police about the circumstances of their death.

Led by CBI’s deputy inspector general V V Lakshminarayana, the team went to the encounter site in Narkepally forest area of Ramgiri mandal. The officials reportedly videographed the site.

According to sources, Mandamarri circle inspector, Raghunandan Rao, who was the CI of Asifabad when the encounter took place and Thandur sub-inspector of police K Ravinder were questioned about the encounter. “The policemen were asked about the position from where the Maoists opened fire and from where the police opened retaliatory fire,’’ CBI officials said.

The officials reconstructed the crime scene with the version of the policemen present on the spot when the encounter took place. The CBI would also record the their statements.

“This would not be our only visit to the forest area,’’ a CBI officer said. Sources said civil right activists were also present when the CBI team visited.

Maoists, Naxal outfits observe Naxalbari day



May 25, 2011, 03.14pm IST

KOLKATA: Different Naxal organisations including outlawed CPI(Maoist) observed 45th Naxalbari Day on Wednesday commemorating the Naxalbari peasants uprise in 1967 in a small area of north Bengal.

Intelligence officers fear that Maoist guerrillas may strike in different parts of their strong holds spread over central and eastern India to commemorate the 'martyrs' of Naxalbari.

In 1967, Naxalbari peasants uprising led by Charu Mazumdar gave birth to the Left wing extremism in India. After Mazumdar's death, his party CPI(ML) was divided into several factions. One among those splinter groups, Peoples War Group continued arms struggle against the state and converted their group into CPI(Maoist) after merger with the Maoist Communist Center. The outfit is now the most powerful leftist insurgent group in South Asia. It has killed 1532 police personnel in the last five years and looted more than 2500 shophisticated weapons from the state forces.

Among overground Naxal parties that participate in electoral politics - CPI(Ml) New Democracy, CPI(ML) Janashakti and five other groups- are observing the day at Naxalbari today. "Like previous years, we have gathered at Bengaijote village where peasants were gunned down in police firing in 1967. We will pay tribute to our martyrs and other slain leaders," said Nathuram Biswas, on behalf of the Sahid Smriti Committee at Naxalbari.

Maoists are observing the day in their different forest bases in Dandyakaranya, Jharkhand and Orissa. Security Forces have started special vigil at all Maoist hit areas to prevent any untoward incident.

Orissa Naxal attack: 9 bodies found, constable missing



May 25, 2011 at 0254 hrs IST

New Delhi, Bhubaneswar A day after nine Chhattisgarh policemen, including an Additional SP, were killed by Naxalites near the Sunabeda wildlife sanctuary in Orissa’s south-western Nuapara district, local authorities were grappling with several puzzling questions surrounding the incident.

Crucial to the investigation is the disappearance of constable Hola Ram Sahu, who was supposed to be part of the 10-member team led by ASP Rajesh Pawar which had gone to Orissa on the trail of a Naxal leader. The search teams that were sent this morning recovered nine bodies from the site while Hola Ram was missing.

“Our team searched the area thoroughly, but we could not find him,” Raipur Inspector General of Police Mukesh Gupta told The Indian Express.

The disappearance of the constable has led to speculation about whether he was a Naxal informer but Gupta quashed the reports. “All evidence points to a chance ambush. The police party was attacked only because their vehicle had broken down and it took time for them to arrange for a tractor. That, unfortunately, was long enough time for the Naxalites to launch the attack,” he said.

Crucially, even the tractor which is said to have been towing the police vehicle, a Tata Sumo, when the attack happened, has not been traced.

The nine bodies were airlifted to Raipur where a post-mortem was conducted. Police sources said the post-mortem report revealed gunshot wounds on the head and chest of the policemen. They denied reports that the bodies had been mutilated or dismembered.

It has also now emerged that the ill-fated team was not on an operation but on a “verification mission” following information that a prominent Naxal leader was camping around that area. The information had come from a Naxalite-turned police informer, Gaurav, who was part of the 10-member team and was killed. The team was to be received by Nuapara SP Rajesh Pandit before deciding on the next course of action.

Pandit, who went to the spot Tuesday morning, said that in all probability Maoists of Mainpur division were responsible. Over the last two years, this division has led several attacks inside the wildlife sanctuary, terrorising the forest staff and killing a forester in April last year.

Though all the cops were in civilian clothes, they were traveling in an easily identifiable police vehicle. All police vehicles in Chhattisgarh have the same series of registration numbers starting with ‘CH03’ and these are not used during anti-Naxal operations.

After killing the policemen, a group of Maoists apparently waited to attack the search teams. “When our team advanced into the forests, we came under fire,” said a senior Orissa official.

Between May 4 and 23, 29 policemen have been killed in four ambushes in Chhattisgarh, Jharkhand, Maharashtra and Orissa.

Hardcore Naxalite Arrested in Bihar



May 25, 2011

A CPI(Maoist) zonal commander was arrested from a hideout in Bihar's Gaya district today, a police official said.

Acting on a tip off, a police team raided the hide out and nabbed the Maoist , superintendent of police, city, Ratnamani Sanjeev said.

The arrested Maoist is wanted in connection with 24 cases in the district, he said adding the ultra was being interrogated.

Labor/Social Unrest

Tribals' agitation in Goa turns violent, traffic blocked



Panaji, May 25 (PTI) The agitation by tribals in Goa for various demands, including implementation of reservations in government jobs turned violent today, as mobs damaged police vehicles, railway signals and tracks at Balli village, 60 km south of Panaji.

Around 10,000 people, under the banner of United Tribals Associations Alliance (UTAA), have blocked the National Highway and railway tracks since morning, seeking that Chief Minister Digambar Kamat fulfill their demands immediately.

The protest, peaceful initially, became violent when authorities ordered people to clear the road.

Two buses carrying policemen from India Reserve Battalion (IRB) were stoned at Balli, police said. A police jeep heading for the site too was damaged.

Protesters smashed up railway traffic signal near Balli Railway station and also damaged the tracks, they said.

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